Eastern Cape Business 2022-23

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THE GUIDE TO BUSINESS AND INVESTMENT IN
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than 5 600 flights per month across our network, comprising of more
55 routes
than
in southern Africa and St Helena island, with an on-time performance
55 routes in southern Africa and St Helena island, with an on-time
consistently
performance
at 95%.
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consistently at 95%.
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CONTENTS
Eastern Cape Business 2022/23 edition
Introduction
Foreword 3
A unique guide to business and investment in the Eastern Cape.
Special features
Regional overview of the Eastern Cape 8
A new national park could further
boost Eastern Cape tourism.
The Eastern Cape sends citrus and
cars to the world 14
Lemons to China and bakkie-making kits to Kenya are new
items in the export basket.
Economic sectors
Agriculture and agro-processing 24
Managing water supplies is crucial for citrus growers.
Renewable energy 28
Investment in solar and wind projects is ramping up.
Oceans Economy 30
The Eastern Cape’s long coastline has enormous potential.
Tourism and film 31
The Covid-19 fourth wave badly dented hospitality’s recovery.
Manufacturing general 32
Aspen is making vaccines for Africa.
Manufacturing automotive 33
Volkswagen has celebrated 70 years of making cars in South Africa.
Education and training 34
Nelson Mandela University has a new Medical School.
Banking and financial services 35
Digital services are expanding
and improving.
Development finance
and SMME support 36
Wild Coast farmers are supplying new markets.
ABOUT THE COVER:
From top left. Nxuba Wind Farm (Enel); Transnet National Ports Authority, Coega SEZ (TNPA); The Magwa
and Majola Tea Estates are being revitalised and crops are again being sold after a dormant period. Magwa
Enterprise Tea (MET) is wholly owned by the Eastern Cape Provincial Government and managed by the
Eastern Cape Rural Development Agency (ECRDA). Located in Lusikisiki, 45km from Port St Johns, there are
plans to upgrade the tourism facilities to include conference facilities, an 18-hole golf course and a hotel
(MET); Nelson Mandela Bay Stadium (Kierran Allen Photography/NMBS); Wild Coast waterfall (ECDC).
EASTERN CAPE
BUSINESS
EASTERN CAPE CAPE
BUSINESS
2021/22 EDITION
2022/23 2023 EDITION
2021/22 EDITION

Eastern Cape Business
A unique guide to business and investment in the Eastern Cape.
FOREWORD
Credits
Publishing director:
Chris Whales
Editor: John Young
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Tyra Martin
Production: Aneeqah Solomon
Ad sales:
Gavin van der Merwe
Sam Oliver
Tahlia Wyngaard
Tennyson Naidoo
Gabriel Venter
Vanessa Wallace
Shiko Diala
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
Eastern 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.
The 2022/23 edition of Eastern Cape Business is the 15th edition of this
successful publication that, since its launch in 2006, has established itself
as the premier business and investment guide for the Eastern Cape.
The Eastern Cape’s strengths in the citrus and automotive
manufacturing are noted in a special feature on provincial exports in this edition.
Citrus is cultivated in several areas of the province, but most notably in the
Sundays River Valley, the country’s single biggest supplier of citrus from one
distinct area.
Three towns and two Special Economic Zones host original equipment
manufacturers (OEMs) and automotive component companies. Volkswagen has
been making cars in Kariega for 71 years, Mercedes-Benz in East London has
gone past its 60th anniversary and Ford (engines) and Isuzu are staples of the
Gqeberha economy.
The regional economy notes developments in the film and tourism sectors,
with the exciting prospect of a new national park being proclaimed in the
province. Overviews are provided on the key economic sectors of the province
and the potential of the Oceans Economy and the prospects of oil and gas for
this coastal province are examined. The major business chambers in the province
have made contributions to the journal.
To complement the extensive local, national and international distribution of the
print edition, the full content can also be viewed online at www.easterncapebusiness.
co.za. Updated information on the Eastern Cape is also available through our monthly
e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our
complementary business-to-business titles that cover all nine provinces as well as our
flagship South African Business title. In 2020 the inaugural edition of African Business
was published. ■
Chris Whales
Publisher, Global Africa Network | 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
Member of the Audit Bureau
of Circulations ISSN 1995-1310
COPYRIGHT | Eastern Cape Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to the
publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Acoustex Group; Angus Burns/WWF South Africa;
BAIC Group; BTE Renewables; Citrus Growers’ Association of Southern
Africa; Coega Development Corporation (CDC); Sandy Coffey; Enel
Green Power; Ford Motor Company South Africa; Lona Group; Montego
Pet Nutrition; Nelson Mandela University; SOLA; Sundays River Citrus
Company; Walmer Park Shopping Centre; Wild Coast Sun.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information
contained in Eastern Cape Business is accurate and up-to-date, the
publishers make no representations as to the accuracy, quality,
timeliness, or completeness of the information. Global Africa Network
will not accept responsibility for any loss or damage suffered as a result
of the use of or any reliance placed on such information.
5
EASTERN CAPE BUSINESS 2022/23

MESSAGE
Welcome to the Eastern Cape,
the Home of Legends!
A newly-minted One Stop Shop for investors and three well-provisioned
Special Economic Zones are among the benefits on offer for investors into
the Eastern Cape, as outlined by Ayanda Wakaba, CEO of the Eastern Cape
Development Corporation.
Ayanda Wakaba, CEO of the Eastern Cape Development Corporation
The Eastern Cape is a vibrant province
of unmatched beauty with a wealth
of natural resources and a worldclass
manufacturing industry which
includes South Africa’s leading automotive
manufacturing industry.
Often referred to as a “world in one province”,
the Eastern Cape boasts the most successful
Industrial Development Zones in South Africa, the
East London Industrial Development Zone, and
Coega Industrial Development Zone, with the
newly-established Wild Coast Special Economic
Zone all ideally situated for easy access to world
markets.
Responsible for the facilitation of investment
and trade in the province, the Eastern Cape
EASTERN CAPE BUSINESS 2022/23
6

MESSAGE
Development Corporation (ECDC) has been
repositioned as a central economic development
agency for the province. The ECDC’s strategic
thrust fosters advocacy work which promotes
provincial economic transformation, inclusive
growth and competitiveness, investor-focussed
solutions, pioneering innovation in key growth
sectors, operational efficiency and financial
sustainability.
At the ECDC, we place emphasis on the
implementation of trade and investment
programmes which intend to leverage on the
inherent economic potential of the province.
These activities encourage trade and investment
in the priority sectors of the Eastern Cape
economy which have a high potential for job
creation, beneficiation and opportunities for the
development of a competitive local SMME sector.
For the ease and convenience of doing
business in the Eastern Cape, the InvestSA One
Stop Shop Eastern Cape, which is a South African
presidential investment facilitation initiative
implemented in partnership with the Department
of Trade, Industry and Competition, serves as a
vehicle to reduce the administrative burden often
experienced by investors. The InvestSA One Stop
Shop Eastern Cape facility thus acts as a single
point of contact for investor interface, queries
and aftercare. Matters relating to regulatory
compliance, licensing and permits, interface with
local authorities and communities are among the
services the InvestSA One Stop Shop Eastern Cape
prides itself on.
The ECDC welcomes you to the unmatched
potential of the Eastern Cape Province.
Realise the Eastern Cape, it’s Yours to Explore. ■
7 EASTERN CAPE BUSINESS 2022/23

FOCUS
Eastern Cape
Development Corporation
Key priority sectors.
The Oceans Economy holds great promise for the
Eastern Cape. ECDC Board Chairperson Vuyani
Jarana and the Chief Executive Officer Ayanda
Wakaba visited four businesses taking advantage
of the province’s vast coastline in August 2021.
The Eastern Cape Development Corporation
(ECDC) focuses on seven growth sectors
which are all aligned to the Provincial
Economic Development Strategy and
Provincial Development Plan.
These sectors are:
• Agriculture and agro-processing
• Sustainable energy, generation and component
manufacture
• Oceans Economy
• Automotive
• Light manufacturing
• Tourism, infrastructure and product
• Film
The Eastern Cape has experienced sizeable local
and international investment in key sectors such as
automotive, renewable energy and forestry.
The film and tourism sectors received a boost
with the filming of Survivor South Africa: Immunity
Island on the Wild Coast, which not only boosted the
regional economy by R10-million and created more
than 100 jobs but will sell the province to a large
television audience.
All of the province’s original equipment
manufacturers (OEMs) have made commitments to
expand or upgrade their production lines in recent
months: Mercedes-Benz South Africa (East London);
Volkswagen SA (Kariega); BAIC (Coega SEZ); Ford Motor
Company and Isuzu (Gqeberha).
As recently as March 2022, the Africa Auto Group
committed to an investment of R550-million to enter the
injection moulding industry in Nelson Mandela Bay.
With more than half of the wind power projects in the
national government’s renewable energy plan allocated
to the Eastern Province, the region can truly be called the
Wind Power Province. A green hydrogen project has been
announced which holds enormous potential for opening
up a completely new sector.
Manufacturing for the renewable energy sector is
another potential area of growth, and the province’s
Special Economic Zones are uniquely positioned to host
such activity.
One of the competitive advantages of investing in the
Eastern Cape lies in the two Special Economic Zones in
East London and at Coega, which hosts a deepwater port.
Both SEZs are strategically situated on major transport and
shipping routes and provide purpose-built infrastructure
for investors wishing to produce and manufacture for
the Southern African Development Community and
world markets. An
integrated database
system has been
developed and
maintained by the
SEZs. Through this
portal, potential
investors have ready
access to skilled,
semi-skilled and
unskilled labour
resources. ■
EASTERN CAPE BUSINESS 2022/23
8
The shooting of the latest version
of the Survivor TV series will further
boost the popularity of the spectacular
Wild Coast. Credit: ECDC

Fast-tracking projects
and lowering the cost
of doing business
EASTERN CAPE
The Eastern Cape Development Corporation
(ECDC) is the host of the Eastern Cape
Investor One Stop Shop.
The Investor One Stop Shop initiative is
geared towards providing investors with services
to fast-track projects and reduce government red
tape when establishing a business. It is part of the
government’s drive to become investor friendly by
improving the business environment by lowering
the cost of doing business as well as making the
process easier.
One Stop Shops house government entities
such as the South African Revenue Service (to help
with customs and tax), Home Affairs, Environmental
Affairs, Eskom and the Companies and Intellectual
Properties Commission under one roof.
An investor can make an appointment, meet a
government representative and be guided by the
representative through the process of setting up a
business. The One Stop Shops simplify administrative
procedures for issuing business approvals, permits and
licences and thereby remove bottlenecks that investors
may face in establishing and running businesses.
The offering includes, but is not limited to:
• Providing an accessible entry point for investors
in need of regulatory compliance.
• Enhancing regulatory and legal processes.
• Improving approval turnaround timeframes.
• Providing information on incentives (tax, land,
training, free trade zones, etc).
• Providing pre-approval information (market
data, costs, incentives, project approval, local
partners, etc).
• Providing post-approval information (facilitation
of permit approvals, information relating to
import of equipment and raw materials, central
bank profit repatriation, etc) to investors.
Participating national government entities
• InvestSA is a division of the South African
Department of Trade, Industry and Competition
(the dtic)
• Business registry: Companies and Intellectual
Property Commission (CIPC)
• Tax authority: South African Revenue Service (SARS)
• International Trade Administration Commission
(ITAC)
• National Regulator for Compulsory Specifications
(NRCS)
• Public electricity utility: Eskom
• Municipal Infrastructure Support Agent (MISA)
Visa facilitation
Visa and permit applications can be made at Visa
and Permit Facilitation Centres. Applications are
then assessed by the Department of Home Affairs in
Pretoria. Non-South Africans with a legal residency
permit in South Africa can apply for a visa or permit
at these centres.
There are centres in every province. In the Eastern
Cape there is an office in East London. The South
African government is reviewing its critical skills list as
well as taking steps to make it easier for people who
qualify to apply.
The Eastern Cape invitation
The Eastern Cape InvestSA One Stop Shop and ECDC
team can advise you on investment opportunities
and assist investment and trade opportunities from
the same offices. The Eastern Cape team is committed
and qualified to assist and guide you from concept to
investment phase.
We look forward to hearing from you and partnering
with you to make your investment a success! ■
Contact details
Address: 12 Esplanade, Quigney, East London
Tel: +27 87 131 1450
Email: info@investeasterncape.co.za
Website: www.ecdc.co.za

A REGIONAL OVERVIEW OF
EASTERN CAPE
PROVINCE
A new national park could further boost Eastern Cape tourism
By John Young
Tourism is one of the sectors that was
hit hardest by Covid-19. Many events
were cancelled, foreign visitors were
absent from attractions such as the Addo
Elephant National Park and the Baviaanskloof
World Heritage Site and guest houses and hotels
struggled to make ends meet.
Although times were tough for the “Adventure
Province”, there was some good news out of a
sector that still retains enormous potential for
growth and has been identified by the Eastern Cape
Development Corporation (ECDC) as a priority sector.
The ECDC invested R2-million in attracting
the TV series Survivor South Africa: Immunity Island
and that will undoubtedly pay off when the
series is aired in great interest from domestic and
international travellers in the spectacular Wild Coast
region. The immediate economic impact of the
filming was estimated at R10-million with 103 jobs
created to support the project.
The north-eastern segment of the province
is the site of a possible future national park,
which would bring to five the number of
national parks in the province, joining the
Addo Elephant, Camdeboo, Garden Route and
Mountain Zebra National Parks. These parks not
only look after animals but also protect quite
distinct types of vegetation.
If the proposed Grassveld National Park is
established high in the mountains above the village
of Rhodes and near to the border with Lesotho, it
would be South Africa’s 20th. The conservation goal
behind the park is to preserve grasslands through
agreements with landowners and farmers who
would continue to farm the land responsibly. The
land of the Batlokoa community (pictured) is near
the famous Naude’s Neck Pass.
As a source of clean water, the area is a hugely
important resource and worth preserving for that
reason too. The falling water shown in the main
EASTERN CAPE BUSINESS 2022/23
10

SPECIAL FEATURE
Credit: Angus Burns/WWF South Africa
picture on this page is described by Andrew Weiss
of the WWF as “heading towards the Mzimvubu
River and the Indian Ocean” while another small
stream at the top of the mountain is destined
to join the Orange River in the west. Weiss also
described rock paintings of eland and reedbuck
“with the unusual addition of dogs and a fat-tailed
sheep”. The Grassveld National Park project of the
South African National Botanical Institute (SANBI)
has already recorded 1 131 species of plant life on
the iNaturalist app.
In addition to national parks, the Eastern
Cape has 15 provincial nature reserves and
a multitude of luxury private game reserves.
Shamwari Private Game Reserve reported that
its non-paying guests were thriving on all the
special attention they received during lockdown.
Shamwari’s Wildlife Rehabilitation Centre took in
Milly, an adult meerkat who had been not well
looked after as a pet. The centre’s staff kept her
mentally and physically stimulated and she has
learnt to crack her own raw eggs, to go with a
healthy number of blueberries which make up
her diet. The events sector was just about to
restart before the Omicron variant put a stop to
all travel. This is something the Eastern Cape does
well, with the National Arts Festival and a variety
of sporting events such as Iron Man being hosted
by the province. In the week before the Omicron
variant shocked some countries into banning
travel, St Francis Links successfully hosted the
South African PGA Championship and showed
how well multiple companies, guest houses and
sponsors can work together to create something
of international quality. The tournament also
brought employment opportunities to the region.
Other than tourism and film, the following
sectors have been identified by the ECDC as
priority sectors: agriculture and agro-processing,
sustainable energy, the Oceans Economy,
automotive, light manufacturing. Each of these
categories is the subject of an updated economic
overview in this journal.
The ECDC’s mandate is to plan, finance,
coordinate, market, promote and implement the
development of the Eastern Cape in industry,
commerce, agriculture, transport and finance, which
it does through three core units.
Diversification is an important part of provincial
plans. An example of this is the Business Process
Outsourcing (BPO) sector. BPO has received a boost
with the establishment of an ICT Academy in Mthatha.
Enrolment in 2022 increased to 100. The centre is a
partnership between the provincial government and
Liquid Intelligent Technologies South Africa.
In 2021, more than 7 520 young people
benefitted from the R363-million which various
Sector Education and Training Authorities (SETAs)
put into training programmes in the following
sectors in the province: manufacturing, engineering
and related services, public sector, mining, banking,
chemical, local government, wholesale and retail,
education, training and development and insurance.
With three ports and two large airports, the
Eastern Cape is well suited to logistics activity. The
Cookhouse-Blaney rail branch line is now working.
Having this connection operational and linked
to the Agriport Terminal at the East London port
reduces the costs of logistics and fits into a major
national and provincial goal of moving goods from
road to rail.
11
EASTERN CAPE BUSINESS 2022/23

The South African PGA golf tournament at St Francis Links showed how events can be linked to employment
opportunities. Here the expanded ground staff follow the last group of golfers in on the final
day – and earn some applause of their own for putting on a fine tournament. Credit: Sandy Coffey
Special Economic Zones
Transnet National Ports Authority (TNPA) has
established new national headquarters at the Port
of Ngqura within the Coega Special Economic Zone
(Coega SEZ).
The value proposition of the Port of Ngqura is
that as a deepwater port strategically positioned
within an SEZ, it can provide integrated, competitive
and efficient port services as a global transhipment
hub ideally positioned on the east coast of Africa.
Transnet has agreed that the tank farm and
manganese storage facility at the Port of Gqeberha
is to be moved to the Port of Ngqura. This will
open up prime waterfront space to tourism and
hospitality businesses.
The Eastern Cape’s two SEZs are key drivers in
the province’s strategy to attract investors. At the
Coega SEZ, major current investors include BAIC
SA (R11-billion), the Dedisa Power Peaking Plant
(R3.5-billion), FAW SA (R600-million) and CEMZA,
a cement company (R600-million). Even though
Covid-19 had an effect on activity in the SEZ,
construction continued during 2020. The following
facilities were built: two for logistics companies
(DHL Logistics and APLI), a multi-user facility and
the new Aquaculture Development Zone, which
is being developed at a cost of R259-million. This
aligns with the Oceans Economy master plan,
which aims to leverage the province’s coastal assets
in terms of fishing, bunkering, oil and gas industry
development, tourism and marine transport and
manufacturing.
The Coega Development Corporation (CDC),
which is assisting in the rollout of infrastructure
projects in different parts of South Africa, is
assisting Eastern Cape provincial departments,
public entities and municipalities to package
projects to attract funding.
The East London Industrial Development
Zone (ELIDZ) has a strong suit in automotive
suppliers, anchored around the proximity to
the Mercedes-Benz South Africa facility. The
ELIDZ has also received recent investments in
a diamond cutting and polishing and condom
manufacturing.
An established market for Liquefied Natural
Gas (LNG) exists within the Coega SEZ. The
existing 342MW Dedisa Power Peaking Plant at
Coega already has environmental authorisation
for a 400kV transmission line between the plant
site and the Dedisa substation which reduces
costs for future investors. A draft scoping report
has been prepared for an integrated LNG
terminal and gas-to-power plant.
National government has named the
Coega SEZ as the potential site for a 1 000MW
Liquefied Natural Gas (LNG) plant. The value to
the regional economy of the project is estimated
at R25-billion. Imported LNG would be used as
feedstock initially, while exploring local sources.
Drilling off the southern coast has revealed vast
resources in the Brulpadda field in the Southern
Outeniqua Basin. If some of this gas could be
recovered, the two SEZs on the Eastern Cape
coast would become critical to its utilisation.
Activity in the oil and gas sector would in
turn stimulate the maritime sector. The potential
of the Oceans Economy is receiving attention
EASTERN CAPE BUSINESS 2022/23
12

SPECIAL FEATURE
and Nelson Mandela University’s Ocean Campus
is one of the leaders in this new field. The South
African International Maritime Institute (SAIMI) has
new headquarters in Port Elizabeth.
Economic strengths
The Eastern Cape continues to punch above its
weight in terms of export volumes. A separate
article elsewhere in this journal digs down
into the details of this aspect of the provincial
economy, but a glance at the three winners in
a particular category in Exporter of the Year run
by Exporters Eastern Cape shines a light on the
province’s strengths.
Three companies were recognised in Best
Exporter, Corporate (export turnover greater than
R200-million): Purem Port Elizabeth (Eberspächer
SA, automotive) received a merit award for
improvement in profitability; San Miguel Fruits
South Africa won a merit award for increased
export turnover and profitability with the winner
being SMA Engineering South Africa (engines and
power transmissions).
These companies neatly represent the
automotive and fruit sectors, the two biggest
earners from exports. The biggest winner on the
night was Volkswagen South Africa, but each of the
province’s other OEMs are regularly “winners” in the
sense that Isuzu, Ford and Mercedes-Benz routinely
ship tens of thousands of vehicles and engines to
every part of the globe.
Isuzu recently launched the first locally
engineered and produced seventh-generation
D-MAX bakkie, using for the first time a new body
shop at the Struandale manufacturing plant and
a new chassis assembly line at the company’s
Kempston Road facility.
The initial R10-billion that Mercedes-Benz
invested in making its East London factory ready
for the production of the latest C-Class was
supplemented in 2021, when the first vehicles rolled
off the floor, by news that an additional R3-billion
was to go into building three new assembly lines, a
new body shop and more advanced robots.
Ford Motor Company’s Struandale engine plant
in Gqeberha will receive R600-million to prepare
the plant to make the 3.0L V6 turbodiesel engine for
the company’s Ford Ranger, which is put together
in Tshwane. This amount, which includes upgrades
to two existing engine lines, is over and above the
company’s national commitment of R15.8-billion
to be spent on the Silverton assembly plant and
various factories that supply the company.
By the start of 2018, Volkswagen South
Africa had spent more than R6.1-billion on its
plant in Kariega, an investment that enabled the
manufacture of more than 400 000 sixth-generation
Polos by 2021. More than 80% of these vehicles
were exported.
The investment by the joint venture
comprising BAIC, one of China’s biggest vehicle
manufacturers, and the Industrial Development
Corporation was launched in 2016. In September
2020, the first vehicles manufactured and
assembled at the Coega SEZ plant were delivered
to dealerships. The company claims that two of its
models (the D20 hatchback and sedan, and the
X25 SUV) have directly created 1 000 jobs and
indirectly created 5 000 jobs in South Africa. ■
Milly the meerkat. Credit: Shamwari Private
Game Reserve
13
EASTERN CAPE BUSINESS 2022/23

Northern Cape
2%
LESOTHO
Eastern Cape
SPECIAL FEATURE
8%
Western Cape
14%
omy at a glance
entage contribution South of each province to national African GDP. economy at a glance
CE: STATS SA WWW.STATSSA.GOV.ZA
ATURE
Insight into the South African ecomomy.
secured tens of thousands of new SPECIAL seats on FEATURE direct
ble: ds South African mining production
flights to and from the city).
ZIMBABWE
• Companies are successfully trading into Africa.
signs reased for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with
BOTSWANA
veral provincial governments and investment macadamia nuts being the Limpopo most successful.
7%
encies are establishing trade relations and Pecan nuts have done well and wine and grape
NAMIBIA
argest dy programmes contributors with BRICS countries. State % increase exports to China % contribution
are growing.
Gauteng
Mpumalanga
its to and from China immediately before and • Private education at school and
35%
7% tertiary level is
North West
ter a major BRICS summit in 2018 gave an ination
that Ramaphosa holds high hopes for • New banking licences have been issued and
growing
6%
as a sector.
SWAZI-
LAND
latinum Group Metals 276.1% 39.2%
reased trade with the biggest of the BRICS several more
Free
are
State
in the pipeline. KwaZulu-
5%
Natal
tions. Two-way trade between the countries in • New stock exchanges came on line in 2017 and
16%
17 was worth $39.1-billion. South Africa Northern wants Cape more are expected. LESOTHO
2%
grow oldtourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and
came the first country in the world to export railways) is strong. Nedbank’s report on capital
ef to China in 2017, to go with existing exports expenditure in South Africa stated that the
iron ore, platinum and fruit and wine.
29 large projects announced in the first half
MOZAMBIQUE
anganese ore 208.2%
Eastern Cape
14.2%
8%
urists are visiting South Africa in record numrs
(Cape Town’s Air Access programme 14%
Western Cape
has
on ore 149.1% 13.3%
urce: StatsSA.com
Percentage contribution of each province to national GDP.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA 17 SOUTH AFRICAN BUSINESS 2019
Gold 40.9% 6.5
NESS 2019
Source: Table: South world African exports.com mineral sales
Mineral sales increased by 152.7%
year-on-year in April 2021.
of 2018 were valued at R63.9-billion (Financial
Mail). The renewable energy programme
secured tens of thousands of new seats on direct
Trends Table: South African mining production
flights to and from the city).
s on direct
• Companies are successfully trading into Africa.
Good Increased signs for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with
• Several provincial governments and investment macadamia nuts being the most successful.
to Africa.
agencies are establishing trade relations and Pecan nuts have done well and wine and grape
ble: ing with South African mineral sales
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution
are growing.
uccessful. visits to and from China immediately before and • Private education at school and tertiary level is
ineral sales increased by 152.7%
and grape after a major BRICS summit in 2018 gave an indication
that Ramaphosa holds high hopes for • New banking licences have been issued and
growing as a sector.
ar-on-year Platinum April Group 2021. Metals 276.1% 39.2%
ary level is
increased trade with the biggest of the BRICS several more are in the pipeline.
nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and
2017 was worth $39.1-billion. South Africa wants more are expected.
ssued and to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and
Largest contributors became the first country in the % world increase to export railways) % contribution
is strong. Nedbank’s report on capital
2017 and beef to China in 2017, to go with existing exports expenditure in South Africa stated that the
of
Manganese
iron ore, platinum
ore
and fruit and wine.
208.2%
29 large projects
14.2%
announced in the first half
•
lly ICT and
Tourists are visiting South Africa in record numbers
(Cape Town’s Air Access programme 465.9% has Mail). 103 The renewable energy programme
of 2018 were valued at R63.9-billion (Financial
PGMs
on capital
that the Iron ore 149.1% 13.3%
e first half
Iron ore 17 SOUTH AFRICAN BUSINESS 2019
(Financial
115.6% 19.5
ogramme Source: StatsSA.com
MOZAMBIQUE
Source: world exports.com
Source: world exports.com
Mercedes-Benz SA
Largest contributors % increase % contribution
PGMs 465.9% 103
Iron ore 115.6% 19.5
Gold 40.9% 6.5
Credit: Unsplash

10 REASONS
WHY YOU SHOULD INVEST IN SOUTH AFRICA
01.
HOT EMERGING
MARKET
Growing middle class, affluent consumer
base, excellent returns on investment.
02.
MOST DIVERSIFIED
ECONOMY IN AFRICA
South Africa (SA) has the most industrialised economy in Africa.
It is the region’s principal manufacturing hub and a leading
services destination.
LARGEST PRESENCE OF MULTINATIONALS
ON THE AFRICAN CONTINENT
SA is the location of choice of multinationals in Africa.
03.
Global corporates reap the benefits of doing business in
SA, which has a supportive and growing ecosystem as a
hub for innovation, technology and fintech.
05.
FAVOURABLE ACCESS TO
GLOBAL MARKETS
ADVANCED FINANCIAL SERVICES
& BANKING SECTOR
SA has a sophisticated banking sector with a major
footprint in Africa. It is the continent’s financial hub,
with the JSE being Africa’s largest stock exchange by
market capitalisation.
The African Continental Free Trade Area will boost
intra-African trade and create a market of over one
billion people and a combined gross domestic product
(GDP) of USD2.2-trillion that will unlock industrial
development. SA has several trade agreements in
place as an export platform into global markets.
YOUNG, EAGER LABOUR FORCE
09.
SA has a number of world-class universities and colleges
producing a skilled, talented and capable workforce. It
boasts a diversified skills set, emerging talent, a large pool
of prospective workers and government support for training
and skills development.
07.
04.
06.
08.
PROGRESSIVE
CONSTITUTION
& INDEPENDENT
JUDICIARY
SA has a progressive Constitution and an independent judiciary. The
country has a mature and accessible legal system, providing certainty
and respect for the rule of law. It is ranked number one in Africa for the
protection of investments and minority investors.
ABUNDANT NATURAL
RESOURCES
SA is endowed with an abundance of natural resources. It is the leading producer
of platinum-group metals (PGMs) globally. Numerous listed mining companies
operate in SA, which also has world-renowned underground mining expertise.
WORLD-CLASS
INFRASTRUCTURE
AND LOGISTICS
A massive governmental investment programme in infrastructure development
has been under way for several years. SA has the largest air, ports and logistics
networks in Africa, and is ranked number one in Africa in the World Bank’s
Logistics Performance Index.
10.
SA offers a favourable cost of living, with a diversified cultural, cuisine and
sports offering all year round and a world-renowned hospitality sector.
EXCELLENT QUALITY
OF LIFE
Page | 2
19
SOUTH AFRICAN BUSINESS 2020

The Eastern Cape sends
citrus and cars to the world
Lemons to China and bakkie-making kits to Kenya
are new items in the export basket.
The first consignment of Eastern Cape lemons is given a last inspection at the Maydon Wharf Fruit Terminal in
Durban. Credit: Citrus Growers’ Association of Southern Africa
Thursday 17 February 2022 was a red letter
day for farmers in the Sundays River Valley
and for South Africa’s citrus industry. On
that day, a first shipment of lemons
was loaded onto ships from the fruit terminal in
Durban harbour en route to China.
The long and complicated procedure of becoming
compliant with health and import procedures started
with work done by Citrus Research International (CRI)
scientists in 2013. CRI and the National Department
Agriculture, Land Reform and Rural Development
hosted scientists from China in 2015 and negotiations
have continued ever since.
South African citrus growers spend R150-million
annually on research which is then used by the DALRRD
in their international negotiations. In this case, it paid off
with a R325-million deal which has the potential to grow
exponentially. South Africa hopes to eclipse Argentina and
Chile as suppliers of lemons to China, targeting 25 000
tons of lemons to that country by 2024.
Exports of grapefruit, oranges and soft citrus to China
totalled 130 000 tons in 2020. More good news from
South-East Asia came in the form of a first consignment
of citrus fruit being accepted into the Philippines.
The citrus industry has been identified in the
National Development Plan as a priority sector because it
employs many people and it can improve the country’s
balance of payments.
According to the Sundays River Valley Citrus
Producers Forum, black citrus farmers have increased
the volumes of their exports by 40%, with a total of
1.6-million cartons exported in 2020.
However, exporting fruit of the Eastern Cape is
not as straightforward as it might seem. All of South
Africa’s ports have been struggling in recent times
to keep up with demand. The province’s three
ports are no exception, with some of the citrus
fruit originating in the Eastern Cape having to be
trucked to Durban or Cape Town, adding costs to
the operation.
The industry also battles with a shortage of
shipping containers and high demand for cold-storage
facilities. In April 2021, an MSC vessel was diverted to
Gqeberha to offload 1 995 refrigerated containers just
in time for the citrus-picking season. There is a global
shortage of these specialised containers.
EASTERN CAPE BUSINESS 2022/23
16

FOCUS
Investors are investing and
exports are growing
The Trade, Investment and Innovation Unit of the ECDC is committed
to promoting trade with and investments into the Eastern Cape.
Entrepreneurs graduating from the Exporter
Development Programme run by the ECDC
in partnership with the Nelson Mandela Bay
Business Chamber.
The Trade, Investment and Innovation Unit
markets the Eastern Cape to investors,
supports existing investors, promotes
exports and the ECDC as an implementing
agent for development initiatives.
Trade Promotion
The Trade Promotion Unit provides opportunities to
export-ready local businesses to penetrate local and
foreign markets by means of non-financial support.
Major export markets are Germany, Hong Kong, the
US, China, Netherlands, Namibia and India.
Once a company has been assessed as “exportready”,
the unit facilitates annual trade missions,
exhibitions and thematic workshops to offer
networking platforms, trade/export knowledge and
access to prospective clients in targeted countries.
Investment
The Investment Promotion Unit is the official
investment promotion agency of the Eastern Cape
Province. The unit actively markets the province
ECDC contact details
Address: 1 Moore Street, Quigney, East London
Tel: +27 43 704 5604
Email: info@ecdc.co.za
Website: www.ecdc.co.za
and facilitates foreign and local direct investment.
Services include lobbying for conducive policy, aftercare
investor services, assistance to investors to access
incentive schemes and local business networks,
providing market information and facilitating access to
greenfield and brownfield sites.
Investors will find four universities and a number
of TVET colleges which offer high-impact tertiary
education. Set-up costs for new business are extremely
competitive in terms of land and rental prices,
construction costs and overall input costs. The Eastern
Cape has three ports, four airports and good road and
rail links and offers easy access to domestic, SADC and
global markets.
Local, provincial and national government have
a range of investment incentives available for new
and existing operations. These incentives range from
manufacturing rebates to preferential production
factor costs.
Innovation
The Innovation sub-unit facilitates strategic
domestic and international investment into sectordriven,
catalytic innovation projects. The sub-unit
facilitates investment and growth into new industry
sectors introduced by the global shift to the Fourth
Industrial Revolution.
This is achieved through: support for catalytic
and high-impact projects that can unlock eco nomic
activity and promote local beneficiation and diversification;
promotion of new products that encourage
import substitution; growth of a pipeline that creates
viable opportunities for the Development Finance and
Properties Development units and for government
and entrepreneurs. ■
EASTERN CAPE BUSINESS 2022/23

SPECIAL FEATURE
The Eastern Cape is the second-largest citrusproducing
province with the Sundays River Valley being
the country’s single biggest production area. South
Africa is the world’s second-largest exporter of citrus
fruit. A national export record was achieved in 2020,
with 146-million cartons of fresh citrus being exported
(second only to Spain). Citrus yielded R3.4-billion in
exports for the Eastern Cape.
National citrus exports have grown by more than
40% in the past decade to about R20-billion per year.
The Citrus Growers’ Association of Southern Africa
forecasts an increase from the current 150-million 15kg
cartons to 200-million in the next five years, and this is
projected to grow still further to 255-million by 2030.
Automotive strength
The list of winners at the annual awards function for
Exporters Eastern Cape Exporter of the Year gives
a good indication of the strength of the province’s
automotive and automotive supply sectors.
Exporters Eastern Cape is a non-profit organisation
comprised of members from export companies, freight
forwarders, financial institutions and shipping lines.
The Nelson Mandela Bay Business Chamber’s
Enterprise Development Programme has several
parts: the Export Development Programme is the
latest initiative.
The Eastern Cape Development Corporation
offers extensive support to exporters through its Trade
Promotion Unit which facilitates annual trade missions,
exhibitions and workshops to offer networking
platforms, share knowledge and gain access to
prospective clients.
Acoustex Group, a Gqeberha-based automotive
component manufacturer, won Exporter of the Year
2021, in addition to the prize for best exporter in the
medium enterprise category. The company created
a new product line by acquiring a company and
increased direct and indirect export turnover to 12
countries by 24%.
Among the products produced by Acoustex
are sound deadeners, moulded insulation parts,
carpets, parcel trays, tailgate covers and back-panel
components. Other companies in the group make
vehicle protection kits, vehicle protection seat covers
and technical laminated fabrics for medical and
domestic use. An interesting category prioritised
environmental accreditation and environmental
management. Merit awards were given in the SJM
Flex Environmental Award to the Coega Development
Corporation, Purem, Isuzu and Volkswagen Group
South Africa.
Volkswagen also won Best Exporter Original
Equipment Manufacturer (OEM) with Isuzu
being recognised for skills development and
transformation initiatives.
In recent years, each of the province’s OEMs has
been steadily increasing export volumes, often breaking
new records in successive years.
In 2016 Mercedes-Benz recorded a new high
for the month of April of 10 674 vehicles exported
through the Port of East London. Over seven years
to 2021, 650 000 C-Class models were built, of which
more than 90% were exported. Volkswagen has sent
326 000 Polos into the global market since 2018.
An interesting addition to the export basket of
Isuzu Motors is pick-up kits in knocked down (KD)
format which are being sent to Isuzu East Africa, an
affiliate in Kenya.
Ford makes engines at its plant in Struandale,
Gqeberha. The company wants to persuade national
government to upgrade the railway line between
Gauteng (where it makes its vehicles) and Gqeberha
so that it can send parts up the line to Tshwane and
export its vehicles out of the port. Fully 75% of the
company’s product is exported to more than 100
markets around the world. In September 2020, Ford
led automotive exports with 6 995 vehicles. ■
The Acoustex Group was Exporter of the Year in
2021. Credit: Acoustex Group
EASTERN CAPE BUSINESS 2022/23
18

FOCUS
Property and infrastructure
projects are promoting growth
The Property Management and Infrastructure Unit of the ECDC
provides the framework for businesses to operate.
development, particularly in underdeveloped areas.
The unit also facilitates strategic alliances regarding
multi-tenanted residential complexes so as to
maximise revenue and minimise costs.
Credit: AIDCEC
The ECDC manages a substantial property
portfolio which enables it to rent out
industrial and commercial premises
at affordable rates or sell property to
appropriate investors. The ECDC also functions as
the manager of large infrastructure projects for the
Eastern Cape Provincial Government.
Property Management
The Property Management Unit offers small-tomedium
enterprises suitable premises at affordable
rates through its diverse property portfolio. When it
is in the interests of the corporation, the ECDC will
consider selling its property to the investor.
The ECDC is one of the biggest property
owners in the province with residential, commercial,
manufacturing and warehousing space. Large areas
of vacant land zoned for residential and commercial
purposes are also available.
The following suite of services is offered:
facilitate commercial and industrial activity; assist
new investors to find properties; facilitate SMME
Infrastructure (Strategic Projects)
The ECDC has been entrusted by the Eastern Cape
government to manage some of its special functions and
projects such as the integrated infrastructure programme
and a number of large-scale development projects.
This unit provides the following services:
• Planning and monitoring
• Facilities and property management
• Industrial Parks Revitalisation Programme
The primary objectives of this programme are to
stimulate economic growth through supporting of
SMMEs; to build SMME zones to accommodate SMME
start-ups; make the parks an investment destination
of choice; devise and introduce incentive schemes
for potential investors, to allocate properties to
sustainable businesses showing growth and intending
to employing local labour.
The parks in the programme are Dimbaza Industrial
Park, Butterworth Industrial Park, Vulindlela Heights
Industrial Park, Queendustria Park, Fort Jackson Park,
Buffalo City Automotive Aftermarket Incubator (shown
in the photograph).
• Socio-economic and enterprise development
This area of the unit’s work will be achieved through
setting up and managing an SMME database, training
and mentoring of SMMEs, placement and recruitment
of local labour management, technical and nonaccredited
training and intern placement and training. ■
ECDC contact details
Address: 1 Moore Street, Quigney, East London
Tel: +27 43 704 5604
Email: info@ecdc.co.za
Website: www.ecdc.co.za
EASTERN CAPE BUSINESS 2022/23

The Chamber has built a relationship with
the metro to ensure we create an enabling
environment within which businesses
thrive. To this end, the Chamber has created
initiatives to actively attract investment into
our city.
Port expansion remains one of Chamber’s
main focus areas, with Transnet still the
main stakeholder keeping the future of
our region and investors’ interests alive.
Present lobby refers to the expansion of
the Container Terminal, the widening and
deepening of the Port itself. As simple as
it is, those three activities will in fact make
Buffalo City a more desirable location.
executive@bkcob.co.za
Bathandwa Njobe | communications@bkcob.co.za
http://www.investbuffalocity.com/
Widening the net also remains one of our
guiding principles, and engaging with as
many stakeholders as possible toward
economic growth sits at the top of our
agenda.
As we engage we focus on the collaboration
rather than the exception and recently
a number of MOUs have been agreed
in structuring those engagements. The
Chamber’s own projects succeed because
we invite participation, and the Call-2-Action
with related waste recycling has introduced
a new way of approaching the everlasting
challenge of littering and waste collection.
On the record, the Border-Kei Chamber of
Business has and will continue to support
the development of the N2 Wild Coast road
development, with the strong belief that the
new highway will usher in a new corridor
of/for development - a feature this region is
sorely lacking.
Lizelle Maurice
Lizelle Maurice is a child of the
Eastern Cape Soil. She did everal tertiary
courses through Coronation nursing
College, Unisa, Damelin & UCT.
She owns Park Place Boutique Guest
House, which has won her National Tourism
Department’s Lilizela Awards in the Emerging
Tourism Entrepreneur of the Year category.
She was appointed as the BKCOB’s
Executive Director in 2021.

PROFILE
PROFILE
PROFILE
The Nelson Mandela Bay
Business Nelson The Nelson Mandela Chamber Mandela Bay Bay
A catalyst Business for economic growth Chamber
in the region.
PROFILE
The Nelson Mandela Bay
Business The Nelson Chamber Mandela Bay
A catalyst Business for economic growth Chamber
in the region.
A catalyst for economic growth in the region.
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The A catalyst heartbeat for economic of
organisation
business growth
representative
success in the in
of a
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EASTERN CAPE
Programme
BUSINESS
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2019
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EASTERN CAPE BUSINESS 2020
22
One
SMEs
Chamber
of the
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themselves
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•
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on a wide variety of topics affecting
(ECDC) and is geared towards of Black Excellence, said the
• Metro Collaboration Task Team
business
developing sustainable SMEs through an enabling and creative enterprise programme
Events in Nelson Mandela Bay.
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programme, and
and Team
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EASTERN previous CAPE
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EASTERN CAPE BUSINESS 2020
EASTERN CAPE BUSINESS 2022/23
22
22

“Entrepreneurship is a lonely journey and without the necessary
support, it’s easy to give up. But through this programme, I had the
privilege of networking with other entrepreneurs and we shared each
other’s journeys and, in the process, created a solid networking platform.
“The mentorship was the greatest source of inspiration because
it has helped us to traverse the challenges of running a business and
how to overcome them. From here onwards, I foresee exponential
growth in my business and hopefully I will be able to create more
employment for the Bay’s youth because currently, opportunities are
quite few,” Bukani said.
Events
Events at the Nelson Mandela Bay Business Chamber keep business
owners up to date and informed on a wide variety of topics affecting
business in Nelson Mandela Bay. Regular networking functions offer
business owners the chance to make new professional contacts. The
Business Chamber’s flagship events – the Annual Business Chamber
Golf Day, the Annual Ladies’ Breakfast and the Annual Banquet – are
highlights on the Bay’s business and social calendar.
Publications and marketing
As another value-added service to members, the Nelson Mandela Bay
Business Chamber provides members with a variety of publications
across print and electronic platforms, including our quarterly printed
member magazine, Infocom, and the printed annual Business Guide.
Help desk
In line with its vision of providing an enabling environment for
business, the Business Chamber set up an Ease of Doing Business help
desk in 2018. The help desk assists members through reducing red tape
and engaging with the Nelson Mandela Bay Metro regarding these
members’ obstacles in conducting business. The Business Chamber
also engaged with the city’s leadership in 2018 towards the goal of
establishing a One Stop Shop for existing and potential investors and
will continue these engagements in this year (2022).
Business Intelligence Desk
The Chamber has an business intelligence desk which is aimed at
providing business intelligence to different stakeholders. It helps with:
• Access to business intelligence to support longer-term decisionmaking
• Access to immediate intelligence to make day-to-day decisions
• Dedicated research to develop and grow priority sectors
• Project management
The Feather Market Centre has been
repurposed as a modern conference
centre in the heart of Gqeberha.
Credit: Nelson Mandela Bay Tourism
Certificates of Origin
A Certificate of Origin is a
document which states the
origin of goods being exported
and this “origin” is a key
requirement for applying tariffs
and other important criteria. As
an accredited provider of this
service, the Nelson Mandela
Bay Business Chamber signs
Certificates of Origin and offers
exporters the opportunity to
certify electronically through the
ECOO system.
Corporate Social Investment
Because the majority of our
membership’s workforce is based
in the city, the region of Nelson
Mandela Bay is the direct beneficiary
of their Corporate Social Investment
programmes – including skills
development initiatives, bursaries
and scholarships. Many of our
member companies significantly
contribute to alleviating poverty
and specifically unemployment in
the region of Nelson Mandela Bay
through various initiatives purposed
to grow the local economy. ■
CONTACT DETAILS
Address: 200 Norvic Drive, Greenacres 6045 | Tel: +27 (0) 41 373 1122 | Fax: +27 (0) 41 373 1142
Email: info@nmbbusinesschamber.co.za | Website: www.nmbbusinesschamber.co.za
23 EASTERN CAPE BUSINESS 2022/23

KEY SECTORS
Overviews of the main economic
sectors of the Eastern Cape
Agriculture and agro-processing 24
Renewable energy 28
Oceans economy 30
Tourism and film 31
Manufacturing general 32
Manufacturing automotive 33
Education 34
Banking 35
Development finance and SMME support 36

The film industry is a huge potential growth area for the Eastern Cape. The ECDC invested to support the filming
of the popular TV series Survivor: Immunity Island, with the spectacular scenery of the Wild Coast as a backdrop.
Season 8 was filmed in 2020 and Season 9 returned to the province for filming in January and February of 2022.

OVERVIEW
Agriculture and agro-processing
Managing water supplies is crucial for citrus growers.
Citrus fruits have been cultivated in the Sundays River Valley for
decades. Credit: Sundays River Citrus Company
Looking for fruits and new cultivars that can stand up to
periods of dry weather is one of the ways that the Eastern
Cape’s citrus farmers are tackling climate change.
The Riverside Kat River Farm was purchased by the Lona
Group in 2012 and has recently started expanding production of Orri
mandarins, a fruit that was developed in Israel. The late-ripening tree is
hardy and resistant to several diseases. The Lona Group has a national
footprint and produces approximately 14 000 tons of citrus annually.
The Kat River is a tributary of the Great Fish River.
The Sundays River Valley is South Africa’s biggest citrus producer
from a defined area. The valley’s harvest in 2021 was 30.5-million
cartons and this is anticipated to increase to 40-million by 2026. The
province as a whole is the country’s second-largest cultivator of citrus.
The Sundays River Valley irrigation scheme was started in
1920s. Darlington Dam (also known as Lake Mentz) was built on
the river and a series of canals were constructed to supply water
to farms from Kirkwood at the upper end of the valley to Addo.
More than 4 000 people are employed in citrus in the Sundays
River area, with that figure more than doubling in the picking and
packing season.
Further west, there is about 6 600ha of land under citrus in the
Gamtoos Valley, which exports about nine-million cartons every year.
More than 100 farmers are dependent on the Kouga Dam for water in
this region, but the dam has recorded consistently low levels in recent
years and has to supply the towns of Hankey and Patensie and the
Nelson Mandela Bay metro.
SECTOR INSIGHT
African Port Logistics and
Infrastructure is investing
R300-million at the Coega SEZ.
The provincial government
put in place various relief
measures for farmers during
the Covid-19 outbreak. A sum
of R417-million was invested
in 107 agricultural initiatives in
various value chains, including
production in grain, red meat,
citrus fruit, macadamia, poultry
and cannabis. Small-scale farmers
received infrastructure support to
the value of R160.5-million.
Getting small-scale farmers
connected to agro-processing
value chains is a major goal for
agricultural policy-makers. This
lies behind the creation of the
Wild Coast Special Economic Zone
(SEZ) near Mthatha. The 5 000ha
Ncora Irrigation Scheme is seen
as a model for the SEZ, which has
attracted interest from AngloGold
Ashanti and Exxaro.
The Eastern Cape Department
of Rural Development and Agrarian
Reform (DRDAR) has several
programmes to support smallscale
farmers. The Eastern Cape
Development Corporation (ECDC)
supports agro-processing through
loans and equity arrangements:
projects that have received financial
support include aquaculture, the
production of dietary fibre from
pineapples and bamboo products.
The rich natural grasslands
of the Eastern Cape have the
EASTERN CAPE BUSINESS 2022/23
26

Coega Dairy is one of the Eastern Cape’s largest agro-processing facilities. Credit: Coega Development Corporation
potential to produce high-value organic meat, a product that is
increasingly popular in health-conscious international markets.
There are about 70 000 people employed on commercial farms
across the Eastern Cape, with a further 436 000 people dependent on
smaller farms, mostly in the east.
The Magwa-Majola Tea Estate is making some progress
towards rehabilitation, with the support of the provincial
government. Bulk sales for 2021 generated R18.5-million and
plans are underway to commercialise and diversify production
at the estate to improve sustainability.
The National Woolgrowers’ Association of SA (NWGA), with a
membership base of 4 500 commercial and 20 000 communal
members, is based in Gqeberha, as is Cape Wool SA.
The Eastern Cape provides approximately a quarter of
South Africa’s milk and the industry is further expanding as
producers are favouring high-rainfall coastal areas such as the
Tsitsikamma region.
South Africa produces about 54% of the world’s mohair and
Gqeberha is the mohair capital of the world. Farms around the small
towns that dot the open plains south of Graaff-Reinet, Aberdeen,
Somerset East, Jansenville and Willowmore, routinely produce
nearly half of South Africa’s production. The office of the South
African Mohair Growers Association (SAMGA) is in Jansenville.
Grootfontein College of Agriculture, the only tertiary educational
institute in the country to offer a programme aimed at Angora
goat farming and mohair production, is in Middelburg. Processing
of mohair takes place in Kariega, Gqeberha and Ntabozuko (Berlin)
outside East London. The mohair value chain includes brokers,
buyers, processors, spinners, manufacturers and retailers.
The SAMIL company has divisions all along the value chain. The
Stucken group controls Mohair Spinners South Africa, Hinterveld (a
mill) and the processing company Gubb & Inggs in Kariega.
Ouma Rusks are still made in Molteno where they were invented.
Cabdbury Chocolates operates
a big site across the lake from
the Nelson Mandela Stadium in
Gqeberha and Nestlé makes 11
kinds of chocolate at its factory
in East London. The Sasko mill in
Gqeberha is the province’s only
big milling plant.
Deciduous fruits such as
apples, pears and apricots
are grown primarily in the
Langkloof Valley. Another crop
in which the Eastern Cape
leads national production
is chicory. The province’s
pineapple crop is grown in
the same part of the Sunshine
Coast that produces chicory.
The Eastern Cape holds
21% of the country’s cattle
(about 3.2-million), 28% of
its sheep (seven-million) and
46% of its goats, making it the
largest livestock province by a
large margin.
Coca-Cola Sabco and
SAB’s Ibhayi brewery are the
major beverage manufacturers
in Gqeberha and Distell has
a bottling plant in the city.
Sovereign Foods in Kariega is
the country’s fourth-biggest
producer of poultry. ■
ONLINE RESOURCES
Citrus Growers’ Association of Southern Africa: www.cga.co.za
Eastern Cape Rural Development Agency (ECRDA): www.ecrda.co.za
Milk Producers Organisation: www.mpo.co.za
South African Mohair Growers Association (SAMGA): www.angoras.co.za
27 EASTERN CAPE BUSINESS 2022/23

FOCUS
The Responsible
Mohair Standard
has restored trust
South African mohair is once again
popular with global fashion brands.
The mohair industry has embraced the Responsible
Mohair Standard as we are all aware that the consumer
of today is rightfully far more conscious, not only of
the impact of their purchases on the environment, but
also the impact their purchases have on the people
producing the goods.
The Responsible Mohair Standard is all-inclusive and is very
specific as to its requirements in respect of the environment
and welfare of the animals and all individuals employed in the
production of mohair products.
There is no doubt that having Samil’s manufacturing operations
certified under the Responsible Mohair Standard has opened new
opportunities for trade throughout the world.
However, the dynamic team at Samil feels compelled to ensure
that not just the Samil manufacturing operations but all mohair
operations owned or run in partnership with Samil, must also be
RMS certified. Samil therefore embarked on a concerted drive to
have all the Angora goat farms which are either owned or run in
partnership with Samil Farming were also certified as RMS.
This was no mean task as there are more than 30 farming
operations in the Samil Farming portfolio in and around the Karoo
region. However, the Samil Farming Manager, Andries Coetsee, and
his very able assistant, Nienke Scholtz, embraced the challenge and
Samil is proud to announce that, as of the end of August 2021, all
Samil mohair operations are proudly RMS certified.
Products stored and handled
include fish, poultry, meat,
fruit, vegetables and dairy.
Through the determined efforts of Mohair South Africa, in
conjunction with The Textile Exchange, in ensuring the development
of the Responsible Mohair Standard, the mohair industry has been
able to regain the trust, not only of the big fashion brands, but also
6 Cold storage facilities
of the world.
This can in clearly SA & be Namibia
seen in the record mohair prices currently being
achieved as brands the world over are scrambling to reintroduce RMScertified
mohair articles into their product ranges.
The knock-on effect is that jobs that had previously been in jeopardy
are now secured and, due to the new-found appetite for mohair, more
jobs have been created.
the last 50 years we’ve become Africa’s leading cold and Namibia.
The benefits of RMS certification
operation by being just as committed to your product We have multiple quality accreditations and are containerfriendly
After the PETA exposé in 2018, the South African mohair industry
are.
became a pariah and many of the top fashion brands vowed to no
with de - stuffing and palletisation offerings. We also
y second longer of the use day. mohair Every in their day products. of the year. This With put nearly perfect 30 000 people provide bonded warehousing and blast freezing at selected
ance, accountability at risk of being unable and efficiency. to earn a living And and a cool feed attitude, their families. facilities as well as local container door-to-door transport and
se.
logistics solutions.
two quayside and four inland operations offer over Put your goods in our care: visit www.ccslogistics.co.za,
metric tons of multi-temperature warehousing in SA call +27 87 350 7350 or email customerservice@ccslogistics.co.za
68 SOUTH | www.opportunityonline.co.za
AFRICAN BUSINESS 2022
42
EASTERN CAPE BUSINESS 2022/23 28
S FA3.indd 1

2021/10/20 16:49:06
Sharing Africa’s beauty with the world
SAMIL produces and processes mohair, the noble fibre.
South African Mohair Industries Limited (SAMIL) is the link
between mohair producers, processors and consumers. Our
vision is to be an innovative South African company specialising
in the production and processing of natural fibres, as well as
speciality spun yarns.
Mohair, the fleece of the Angora goat, is:
• the noble fibre, known as the diamond fibre
• lustrous, resilient and offers exceptional colour reflection
• one of the world’s most beautiful sustainable natural fibres
• a symbol of luxury and exclusivity.
African Expressions
Our local brand African Expressions was born of the desire to share Africa’s
natural beauty with the rest of the world. Through our unique range of
yarns, we express the essence of that which makes Africa magical. Our
network of local farmers, who farm in optimal Angora goat conditions,
breed stock which bear excellent fibres. This ensures that our yarns are
naturally soft to the touch, easy to knit and luxuriously versatile.
SAMIL divisions
Farming: SAMIL Farming was established with the primary objective of
stabilising and possibly increasing mohair supply to the processors.
Combing: SAMIL Natural Fibres Combing is in Berlin, outside East London
in the Eastern Cape. As mohair processing has decreased in other parts
of the world, SAMIL Combing has become one of the world’s leading
processors. Unlike many processing plants SAMIL Combing focusses on
and is committed to processing only mohair.
Trading: Through a strong support base of affiliated companies, partners
and agents, SAMIL has established strong connections throughout the
world for the purchase and sale of raw materials and finished goods. South
Africa processes in excess of 80% of the world’s mohair production. The
advantage of having both top-making and spinning operations in South
Africa, as well as access to raw material produced within the company,
is that SAMIL is able to offer lots guaranteed from origin, a rare luxury in
today’s business environment.
Spinning and dyeing: SAMIL Spinning is a global manufacturer of
outstanding quality mohair yarns, producing a wide and exclusive range of
mohair and mohair blended fancy and fine-spun yarns in both fine-count
and coarser varieties. We are internationally renowned for our superior
product range and cater for the hand knitting, machine knitting, weaving,
hosiery and decor markets. Although we specialise in pure mohair, we also
blend mohair with a range of other natural and man-made fibres. Yarns
can be custom dyed to any shade at SAMIL’s state-of-the-art dye house.
Genetic research: The latest venture under the SAMIL umbrella is the
research project called ANGELA which aims to enhance Angora goats and
the mohair kidding rates to the improvement of the different hair qualities.
The project will make available its results to all in the mohair community.
Contact details
Tel: +27 41 486 2430 | Email: yarns@samil.co.za | Website: www.samil.co.za

OVERVIEW
Renewable energy
Investment in solar and wind projects is ramping up.
Credit: BTE Renewables
In addition to leading the way in attracting wind power projects,
the Eastern Cape is making good progress in trying to ensure that
the community trusts that arise from these and other renewable
energy projects actively benefit communities.
According to the South African Wind Energy Association (SAWEA),
16 wind projects were secured for the province in the course of the
first four windows of bidding of the Renewable Energy Independent
Power Producer Procurement Programme (REIPPPP). As of the middle
of 2020, the value of the projects was estimated at nearly R20-billion
with R4.6-billion committed to communities living and working near
wind projects.
From 2017, SAWEA started running workshops for community
trusts, municipal officials responsible for economic development, the
national IPP office and wind farm representatives. Of the R4.6-billion
mentioned above, some 42% was allocated to skills development and
educational programmes. Among the skills identified as needing to
be enhanced were governance, fiduciary oversight and the ability to
critically assess development projects.
As a coastal province, the Eastern Cape has obvious advantages,
but the availability of wind is not the only factor. As SAWEA notes,
“Wind farms are constructed according to the quality of the wind
resource and ease of connection to the national grid.”
Both Cookhouse and Stormberg have been listed as Energy
Development Zones which means that they are one of the planned
national transmission corridors, allowing for direct access to the grid
for wind farms in these areas.
South Africa’s National Development Plan (NDP) requires 20 000MW
of renewable energy by 2030 and wind power technology, together with
solar photovoltaic, are the two primary methods that are being deployed
in pursuit of that target.
More than half the wind farm projects so far approved have been
allocated to the province. The Kouga area west of Jeffreys Bay and
the Cookhouse/Bedford area about 95km north-west of Makhanda
(Grahamstown) represent two wind power hubs, with a collective
capacity of 1 185MW.
SECTOR INSIGHT
Zero-carbon methane is to be
made at Humansdorp.
In May 2021 it was announced
that the 123MW Golden Valley Wind
Energy Facility near Cookhouse
south of Cradock in the Sarah
Baartman District Municipality had
reached commercial operations.
This means that the energy
requirements of about 120 000
households will be met.
Just a few kilometres east of
Cookhouse there are a further
two wind farms, both awarded
to Enel Green Power (EGP) in the
fourth round of the REIPPPP. The
Nxuba and Nojoli wind farms will
respectively produce 140MW and
88MW and represent what might
be called Enel’s Eastern Cape
mountain area investment. On the
coast they have built wind farms at
Oyster Bay and Gibson Bay, west
of the 138MW Jeffreys Bay Wind
Farm, which is run by Globeleq
and was one of the country’s first
big wind energy facilities.
The Provincial Government of
the Eastern Cape is collaborating
with the National Department of
Employment and Labour to train
young people in digital technology
and solar energy. The Youth Digital
eXponential (YDx) Project is
funded by the Unemployment
Insurance Fund and is to be
implemented by the South African
Digital Content Organisation. As of
February 2022, 500 young people
were participating.
EASTERN CAPE BUSINESS 2022/23
30

OVERVIEW
Green power
Humansdorp could become the site of a plant that produces
e-methanol from green hydrogen and gas created from locallysourced
biomass.
Three companies have signed an agreement to do a feasibility
study: ENERTRAG South Africa, Earth & Wire and 24Solutions. The
abundant wind and solar resources of the area would create the
renewable energy to form the green hydrogen. Green hydrogen
qualifies as such if the process to make it used only renewables. All
of the electricity produced by renewable energy facilities would be
used by the electrolyser (for the green hydrogen), desalination and
e-methanol plants.
ENERTRAG’s German parent has considerable experience in
innovation and is working with Sasol on aviation fuel alternatives. In
2011 it opened the world’s first hybrid wind to hydrogen power plant.
Earth & Wire has signed agreements across South Africa with
landowners on 400 000ha of land which the company intends using
to build renewable energy facilities. The short-term focus is on wind
and solar projects close to completion in Mpumalanga, Gauteng and
the Eastern Cape.
Green hydrogen is very much the flavour of the month, in the
aftermath of the negotiations at the COP26 conference.
The Coega SEZ has been chosen by Hive Hydrogen SA as the
location of a Green Hydrogen project which will be fully operational
by 2026. The project will see a green ammonia plant constructed,
valued at approximately $4.6-billion. The main development
partners are BuiltAfrica and Hive Energy of the UK who have formed
Hive Hydrogen SA but various
other partners are involved.
Local salt manufacturer
Cerebos will supply desalinated
water to the project.
The hydrogen will be
separated from the oxygen by
an electrolyser, and hydrogen
and nitrogen will be combined
to form green ammonia
which will be stored in liquid
form at a tank at the Port of
Ngqura, from where it can be
exported around the world.
Gas company Afrox is another
partner, although there is no
intention currently to convert
the oxygen to pharmaceuticalgrade
product as that market is
currently well served. The plant
will have its own dedicated
power supply.
Another renewable energy
investor in the Coega SEZ is
Seraphim Solar Cell Manufacturing
that is investing R362-million to
increase the local content of its
solar value chain. ■
The SAB Ibhayi brewery in Gqeberha is getting power from the sun. Credit: SOLA

OVERVIEW
Oceans economy
The Eastern Cape’s long coastline has enormous potential.
The Coega Aquaculture Development Zone (ADZ) was
launched in 2020. It is intended to be a catalyst for unlocking
the Eastern Cape’s aquaculture value chain and is
expected to be an enabler for job creation.
The 100-hectare ADZ is located in Zone 10 of the Coega
Special Economic Zone (Coega SEZ) and the R206-million
first phase created 500 construction jobs. The Eastern Cape
Development Corporation (ECDC) expects it to create a further
5 600 operational jobs.
The Oceans Economy is seen as a previously untapped
resource where enormous progress can be made in areas such
as maritime repair and maintenance (via the province’s three
ports), support for oil and gas exploration and paying more
attention to fishing and aquaculture. An Oceans Economy
Master Plan has been created and so far, 73 co-operatives have
been awarded 15-year licences by the National Department of
Forestry, Fisheries and the Environment (DFFE).
Several cluster development programmes aim to develop
specific industries by bringing together expertise and logistical
support. Marine manufacturing is the focus of the Mandela Bay
Composites Cluster (MBCC). With funding from the Eastern Cape
Department of Economic Development, Environmental Affairs and
Tourism (DEDEAT) and the National Department of Trade, Industry and
Competition (dtic), the MBCC targets skills development, innovation in
the field of composites and improving the value chain.
Although both the Coega SEZ and the East London Industrial
Development Zone (ELIDZ) have programmes to attract companies
in a wide range of sectors (Coega has 14 distinct business zones),
developments in the Oceans Economy and the oil and gas sector are
showing the greatest promise.
Ports are vital to the functioning of the Oceans Economy. Transnet has
budgeted R1-billion to establish boat-building and ship-repair facilities at
the Port of East London as well as a Maritime Training College as part of
Operation Phakisa, the national programme to fast-track key projects.
Transnet has appointed the Coega Development Corporation (CDC)
as the implementing agent for the creation of a R3.4-billion manganese
ONLINE RESOURCES
Coega SEZ: www.coega.co.za
East London IDZ: www.elidz.co.za
Ocean Sciences Campus (NMU): www.oceansciences.mandela.ac.za
South African International Maritime Institute: www.saimi.co.za
SECTOR INSIGHT
The Ocean Sciences Campus
is Nelson Mandela
University’s newest.
The Coega Aquaculture Development
Zone. Credit: CDC
export terminal at the Port of Ngqura.
This follows a decision by Transnet to
move the fuel tanks and manganese
ore away from the Port of Gqeberha,
which could unlock enormous value
in terms of creating a waterfront
attractive to tourists. This area could
potentially link with the city’s major
greenbelt, otherwise known as the
Baakens River Valley.
The South Africa International
Maritime Institute (SAIMI) aims to
develop the contribution of the
maritime sector to the economy by
coordinating education, training and
research with partner institutions. The
Ocean Sciences Campus is Nelson
Mandela University’s newest campus
and is a hub for transdisciplinary,
post-graduate ocean sciences
research, teaching, innovation and
engagement. ■
EASTERN CAPE BUSINESS 2022/23
32

Tourism and film
The Covid-19 fourth wave badly dented hospitality’s recovery.
OVERVIEW
SECTOR INSIGHT
A major golf tournament
attracted a host of sponsors.
The final shot. Dean Burmester won the South African PGA
Championship at St Francis Links. Credit: Sandy Coffey
The exciting win by Dean Burmester in the South African
PGA Championship at St Francis Links should have been
a shot in the arm for Eastern Cape tourism leading into
the high summer of 2020.
Instead, it was shots in the arms for Covid patients as the fourth
wave descended on South Africa within days of the highly successful
event, condemning many tourist establishments to more months of
little or no income. Domestic tourism continued but the UK’s decision
to put South Africa on a “no-fly” list had drastic consequences.
Small crowds were allowed to watch the golf tournament, which
was presented by the PGA of South Africa in association with St Francis
Links and the Eastern Cape Parks and Tourism Agency (ECPTA). Other
sponsors and supporters included Dirk Ellis Motors, Cape St Francis
Resorts, the Sunshine Tour, Allesverloren Wines and SPAR. This indicated
how important golf tourism might be in the provincial mix.
Infrastructure upgrades are ongoing at several tourism sites run
by the ECPTA: the National Department of Tourism is funding the
Interpretation Centre at Bavianskloof (a World Heritage Site) in the
amount of R42-million; a further R9-million will be spent on a hiking
trail; the National Department of Forestry, Fisheries and the Environment
(DFFE) will spend R45-million on the chalets at Cape Morgan. Work
has been completed on the Silaka Nature reserve in Port St Johns at
a cost of R11-million, another DFFE project. The ECPTA is tracking and
profiling tourists’ needs and their perception about the province. The
ONLINE RESOURCES
Eastern Cape Parks and Tourism Agency: www.visiteasterncape.co.za
Mandela Bay Development Agency: www.mbda.co.za
film industry has great potential
for growth. The ECDC invested to
support the filming on the Wild
Coast of the popular TV series
Survivor: Immunity Island, which
brought excellent returns in terms
of finance and exposure.
The interior of the Eastern
Cape is home to several highend
private game reserves such
as Shamwari, Mount Camdeboo
and Kariega Game Reserve. Some
luxury game lodges are located
within national parks, such as
the Gorah Elephant Camp, which
is run by Hunter Hotels and
forms part of the Addo Elephant
National Park.
Premier Hotels has two
hotels in East London, the
Mpanga Private Game Reserve
and it manages the East London
International Convention
Centre. The Radisson Blu in Port
Elizabeth offers five-star luxury
overlooking Pollock Beach.
Tsogo Sun has five Eastern
Cape properties. The Courtyard
Hotel, City Lodge Hotel and
Road Lodge are close to one
another on Port Elizabeth’s
beachfront and allow the group
to cater to three distinct markets
with a total of 442 rooms. East
London has a Road Lodge. Sun
International runs the Wild Coast
Sun and the five-star Boardwalk
Casino and Entertainment World
in Port Elizabeth. ■
33
EASTERN CAPE BUSINESS 2022/23

OVERVIEW
Manufacturing general
Aspen is making vaccines for Africa.
SECTOR INSIGHT
Montego Pet Nutrition is
Graaff-Reinet’s biggest
employer.
The Aspen Pharmacare facility in Gqeberha will make
hundreds of millions of doses of the Johnson & Johnson
Covid-19 vaccine for South Africa and Africa.
A consortium of development finance organisations,
including the World Bank’s International Finance Corporation, made
€600-million in financing available to the South African company in the
course of 2021 to assist it in ramping up production of the vaccines. By
2022, the facility should be making about 500-million doses annually.
Aspen’s earlier investment of R3.3-billion to scale up production for
vaccines for Africa created 1 775 jobs, of which 52% went to women.
The provincial government aims for more diversification in
manufacturing and is targeting sectors where the province already has a
competitive advantage (such as wool and mohair), are labour intensive,
will have a broad impact and have low barriers for SMME entry.
A fibre-processing plant to spin wool and mohair fibre into yarn is
planned, as is a textile mill to focus on cotton, poly-cotton and acrylic
fabric. The latter is planned for the IDZ in East London, which is already
home to Da Gama Textiles, whose factory has the capacity to produce
45-million square metres of fabric per annum. Da Gama makes the popular
and distinctive shweshwe fabric, using its own unique printing process.
Several cluster development programmes aim to develop specific
industries by bringing together expertise and logistical support. A Non-
Automotive Manufacturing (NAM) Cluster concentrates on training, supplier
development, energy efficiencies and developing new markets. Swedish
concern Fagerhult Group has entered the South African market via an
acquisition of the factory of Port Elizabeth’s Lighting Innovations, and the
ONLINE RESOURCES
Coega Development Corporation: www.coega.co.za
East London Industrial Development Zone: www.elidz.co.za
Eastern Cape Development Corporation: www.ecdc.co.za
two subsidiary companies Arrow
Lighting and Beacon Lighting.
Montego Pet Nutrition,
Graaff-Reinet’s biggest private
employer, has recently installed
an impressive array of solar panels
on the roof of its facility (pictured).
More than 200 staff members
work in the Karoo town’s factory.
First National Battery, a Metair
Group company, has one factory
at Fort Jackson and two factories
in East London. Mpact runs two
corrugated packaging convertor
facilities in the Eastern Cape, at
Deal Party in Port Elizabeth and
Gately Township, East London.
Bodene, a subsidiary of Fresenius
Kabi, makes intravenous medicine
in Port Elizabeth. East London
hosts Johnson & Johnson’s
finance, operations and research
and development divisions.
The Eastern Cape’s two
Special Economic Zones play
an important role in attracting
investors to the province.
Located in East London near of
the port and at the deepwater
port of Ngqura 20km north of
Port Elizabeth, the East London
Industrial Development Zone
(ELIDZ) and the Coega SEZ
provide the infrastructure that
will allow the region to expand
and diversify its economy. ■
EASTERN CAPE BUSINESS 2022/23
34

Manufacturing automotive
Volkswagen has celebrated 70 years of making cars in South Africa.
OVERVIEW
SECTOR INSIGHT
A rail corridor to Gauteng
would boost the
automotive sector.
Volkswagen celebrated 70 years of making cars in South
Africa in 2021. In August of that year, the Kariega plant of
Volkswagen started exporting the newest version of the
Polo vehicle.
In 2019, a new production record was achieved when 161 954 vehicles
were made, contributing materially to the overall total of four-million that
was achieved for the brand towards the end of 2020. The 520 963m²
Kariega facility is one of four plants worldwide that makes right-hand drive
Polos but the only one in the world that makes the Polo GTI.
Ford Motor Company makes engines (pictured) for the Ford Ranger
pickup and Everest SUV at its Struandale plant and it has committed to
invest R600-million for modernising and growing its local operations.
This is a part of a bigger investment which includes the vehicle
assembly operations in Gauteng.
Ford has initiated discussions about the feasibility of developing a
sophisticated rail corridor between Gauteng and the Eastern Cape. The
company wants to send parts to Pretoria and export cars through the
Port of Gqeberha.
The Coega Special Economic Zone (SEZ) is host to the first phase
of a major investment by Chinese automotive manufacturer Beijing
International Automotive Corporation (BAIC). The total investment
by BAIC will total R11-billion and significantly add to the province’s
already strong reputation for excellence in the automotive sector. Both
ONLINE RESOURCES
Automotive Industry Development Centre: www.aidc.co.za
Coega Development Corporation: www.coega.co.za
Eastern Cape Development Corporation: www.ecdc.co.za
Coega SEZ and the East London
Industrial Development Zone
(ELIDZ) have areas dedicated
to automotive and automotive
components manufacture.
Mercedes-Benz South Africa’s
new C-Class project (W206) has
sparked several other related
investments, which collectively
will create 2 078 new jobs
over two years. Most of this is
happening in the ELIDZ, which
has made a commitment to
localising the 2nd- and 3rd-tier
automotive components that are
not currently in South Africa.
The production of the
C-Class vehicle is a technological
marvel and the plant regularly
wins international awards for
quality. The installation of a new
sequencing centre, to be installed
by Automotive Logistics Solutions
(an AHI company), will make the
assembly line even more efficient.
Home-grown manufacturer of
powertrain and catalytic converter
assembly systems, Jendamark,
exports to 18 countries.
Continental Tyre South Africa
is producing a 19-inch tyre for
the first time at its New Brighton
facility in Port Elizabeth. Isuzu SA
has completed its consolidation
project, with truck and bakkie
manufacturing now taking
place at its new headquarters in
Struandale, Port Elizabeth. ■
35 EASTERN CAPE BUSINESS 2022/23

OVERVIEW
Education and training
Nelson Mandela University has a new Medical School.
SECTOR INSIGHT
A science centre has been
built at Cofimvaba.
Nelson Mandela University’s Missionvale Campus is now
registered to offer the MBChB (Bachelor of Medicine
and Bachelor of Surgery) qualification.
This brings to 10 the number of medical schools in South
Africa and is the province’s second, with Walter Sisulu University being
the other academic medical facility in the province. The registration by
the South African Qualifications Authority (SAQA) was a lengthy process,
covering contracts and agreements with various other bodies, the
curriculum, infrastructure, equipment and staff requirements.
Two new cerebral palsy centres have been established, at the Nelson
Mandela Academic Hospital and the Cecilia Makiwane Hospital.
A R50-million science centre, named after Albertina Nontsikelelo Sisulu,
has been built in Cofimvaba. The centre will enhance the teaching of maths,
science and technology and further widen career choices of students.
The national Accelerated School Infrastructure Delivery Initiative
(ASIDI) allocated 298 schools to the province and, as of February 2022,
168 schools (56%) had been completed.
St George’s Preparatory School, founded in 1936 and located
opposite the famous cricket ground in Gqeberha, has become the latest
addition to the private Curro group of schools. The acquisition doubles
Curro’s presence in the province, with the centrally-based preparatory
school joining Westbrook Curro, which is located in the Westbrook Estate
off the old Cape Road in the city’s western suburbs.
The Eastern Cape has eight Technical and Vocational Education
Training (TVET) colleges, most of which have more than one campus:
Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata
Dalinyebo, Ikhala and Eastcape Midlands College. An amount of R569-
million will be spent on building four new TVET campuses to expand
ONLINE RESOURCES
Eastern Cape Department of Education: www.ecdoe.gov.za
Technology Innovation Agency: www.tia.org.za
the accessibility of these colleges.
These new facilities are two new
Ikhala TVET College campuses
(Sterkspruit and Maletswai), a
new Eastcape Midlands campus
in Graaff-Reinet and a new
Ingwe TVET college campus in
Ngqungqushe (Lusikisiki).
The National Department of
Higher Education and Training has
been investing heavily in student
accommodation in the province.
This programme has seen an
additional 2 000 beds added at
the Nelson Mandela University in
Gqeberha, 2 047 student beds at the
University of Fort Hare, 3 000 beds at
Walter Sisulu University and 1 000
beds at King Hintsa TVET College.
Rhodes University has a
strong reputation for research,
which has been enhanced by the
addition of the Biotechnology
Innovation Centre.
The University of Fort Hare is
leading three innovative studies
into biogas, including a project
investigating compressed
biogas for public transport. The
South African National Energy
Development Institute (SANEDI)
is working with Fort Hare on
biodigesters for households.
Walter Sisulu University (WSU)
and the University of South
Africa (Unisa) offer vocational
training (diplomas) and academic
programmes (degrees). ■
EASTERN CAPE BUSINESS 2022/23
36

Banking and financial services
Digital services are expanding and improving.
OVERVIEW
SECTOR INSIGHT
Two mutual banking
licences have been
approved.
Credit: Walmer Park Shopping Centre
The growing use of smartphones is creating new opportunities
for banks and other financial service providers to bring
banking services to a bigger proportion of the population.
A recent addition to the market is Standard Bank’s low-cost
MyMo account. With free electronic transactions, unlimited card swipes
and a low monthly fee, the MyMo account is ideal for low-income
earners, micro-entrepreneurs and the poor. Customers do not have to
visit branches to sign up for the account. They can take a selfie on the
mobile app.
Standard Bank, which is Africa’s biggest bank, made its start in
Gqeberha. Entrepreneur John Paterson launched Standard Bank in London
in 1862 and opened its first branch in what was then Port Elizabeth in 1863.
The initial spark was the discovery of diamonds in Kimberley but gold
prospectors soon needed financing too, so 1866 saw the opening of a
branch in Johannesburg. The bank continues to have a presence in Govan
Mbeki Avenue.
Two new licences for mutual banking have been approved
nationally, despite the collapse of VBS, a Limpopo-based mutual bank.
The nature of the South African market lends itself to mutual banking.
Both the Young Women in Business Network (YWBN) and Bank Zero will
use the mutual model. Naspers Foundry is one of several investment funds
looking for opportunities in the financial sector. Insurance technology is
of particular interest, together with credit services and payment systems.
ONLINE RESOURCES
Auditor-General of South Africa: www.agsa.co.za
Financial Sector Conduct Authority: www.fsca.co.za
South African Institute for Chartered Accountants: www.saica.co.za
Capital Appreciation, which is partowned
by the Public Investment
Corporation, is already invested in
a software developer, a credit card
payment terminal provider and has
R500-million available for further
investments.
African Rainbow Capital has a
stake in the investment company
and is the owner of TymeBank,
which received a banking licence
in 2017 and is expanding rapidly.
Discovery Bank officially launched
in March 2019 and is experiencing
rapid growth with deposits of
R3.7-billion. Discovery Bank is
applying the behavioural model
it uses in its health business to
reward good financial behaviour.
Another relatively new bank
is Capitec. Investment holding
company PSG has reduced its
holding in Capitec Bank from 32%
to 4%, earning about R4-billion by
selling those shares.
The financial and business
services sector is responsible of
19.2% of the Eastern Cape’s Gross
Domestic Product (StatsSA). The
sector provides employment
for 141 000 people. Agricultural
finance is an important factor in
the Eastern Cape. Production loans,
vehicle financing and revolving
credit plans all play an important
role in keeping farmers and agroprocessors
in business. ■
37
EASTERN CAPE BUSINESS 2022/23

OVERVIEW
Development finance and
SMME support
Wild Coast farmers are supplying new markets.
Queens Greens, a small farming company, has recently
expanded into new markets with the support of the
Wild Coast Sun.
A new borehole and irrigation system (pictured) has been
provided to Queens Greens, enabling them to go beyond being a supplier
to the resort and to start supplying local markets with fresh produce.
The Wild Coast Sun’s Enterprise Development Programme has
trained and supported seven local SMMEs, which employ a total of 42
people. The resort aims to achieve 90% procurement of all goods and
services from BBBEE level 1 suppliers within the next five years.
In early 2022, the Wild Coast Sun hosted a two-day SMME
Business and Networking Conference which was attended by 150
people. Among the bodies represented were the Small Enterprise
Development Agency (Seda), the Eastern Cape Department of
Economic Development, Environmental Affairs and Tourism
(DEDEAT), the Eastern Cape Gambling Board, the Winnie Madikizela-
Mandela Local Municipality and the Small Enterprise Finance Agency
(Sefa), as well as several SMME financing houses.
Work is underway to refurbish several state-owned industrial
parks. Not only will areas like the Dimbaza Industrial Park assist
SMMEs with affordable space, the programme has so far created
379 jobs and involved 71 local SMMEs. Provincial government
departments are encouraged to buy from SMMEs and the current
administration had spent by December 2021 58% of its procurement
budget (R24.3-billion) purchasing from local suppliers.
The National Department of Small Business Development (DSBD)
has a Shared Economic Infrastructure Facility, which is investing
R34.7-million in support of Eastern Cape projects: the KwaNtozonke
Product Market in King Sabata Dalindyebo Municipality and the
Chris Hani Co-operative Development Centre in Chris Hani District.
A further R1.9-million has been allocated to 141 informal and micro
businesses in the Amathole and Joe Gqabi district municipalities.
Volkswagen South Africa (VWSA) has a project called Ntinga (“to
soar” in Xhosa) whereby suppliers receive training and are mentored
for 18 months.
ONLINE RESOURCES
Eastern Cape Development Corporation: www.ecdc.co.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
SECTOR INSIGHT
The upgrade of industrial parks
is creating work.
Two of the Eastern Cape Development
Corporation’s seven business units are
devoted to small business: Development
Finance and Enterprise Development.
The ECDC has several financial products
tailored to SMMEs. The ECDC and the
Technology Innovation Agency (ITA) jointly
run the TIA-ECD Innovation Seed Fund
Programme, which aims to identify and cofund
earlier stage technology innovation
projects. Help Desks have been established
to support small business in Port Elizabeth
and East London.
The Small Enterprise Development
Agency is an agency of the DSBD
which gives non-financial support
to entrepreneurs through training,
marketing and assistance in the writing
of business plans. The Seda Technology
Programme (Stp) helps potential
businesses become trading entities. ■
EASTERN CAPE BUSINESS 2022/23
38

FOCUS
Supporting Eastern
Cape business
The Eastern Cape Development Corporation boosts the local
economy with targeted programmes.
Services include: business networks; advisory
support; business plan development; feasibility studies;
due diligence; mentorship and coaching; quality
management support; marketing support; intellectual
property registration support and management;
pre-commercialisation studies; skills development;
information workshops and seminars.
Participants in the Mdantsane Motor Mechanic
Enterprise Development Programme received
toolboxes to celebrate having their
businesses registered.
The Business Development Services
Unit of the Eastern Cape Development
Corporation (ECDC) forms the backbone
of the enterprise development ecosystems
which ensures the sustainability of business.
Business Support
The Business Support sub-unit provides non-financial
pre-investment and post-investment support,
ensuring that businesses are ready for finance, market
ready and poised for long-term growth.
Ongoing support is available through mentorships,
market access opportunities as well as business and
financial management advice. The unit offers both
strategic and operational services to equip small
businesses to perform to their full potential, with
increased profitability and improved management
processes that enhance their long-term viability.
The Business Support sub-unit promotes a
culture of entrepreneurship, improvement in business
competitiveness and facilitates access to market and
to education and training for SMMEs.
ECDC contact details
Address: 1 Moore Street, Quigney, East London
Tel: +27 43 704 5604
Email: info@ecdc.co.za
Website: www.ecdc.co.za
Development Finance
The Development Finance sub-unit manages the ECDC’s
business finance product offering and assists enterprises
gain access to finance.
Through both short-term and long-term products, the
ECDC has set itself apart as the financial service provider of
choice for initiatives that bring a meaningful development
impact. With an understanding of the historical lack of
access of small-to-medium enterprises to finance, the
ECDC uses adequate management capacity and business
viability as key lending criteria.
ECDC Access, the category name for short-term finance,
offers products geared towards facilitating efficient cash
flow management. “Access” denotes the values of flexibility,
convenience, efficiency and transparency. ECDC Future,
the category name for long-term finance, offers long-term
debt finance vehicles, one covering commercial property
and another dealing with equity finance.
The ECDC’s business finance products are best suited
to applications that facilitate job creation and/or retention,
economic empowerment, value addition, rural/township
development and increased export income. Any greenfield
initiative that leads to expansion and rehabilitation will be
eligible for application for finance.
The ECDC aims to provide efficient client service for
the entire duration of the contract term. Monthly account
management and quarterly report-back visits will gauge
the health of the business. ■
EASTERN CAPE BUSINESS 2022/23

LISTING
Eastern Cape
Provincial Government
A guide to the Eastern Cape’s provincial government departments. Visit www.ecprov.gov.za
Office of the Premier
Premier: Oscar Mabuyane
Office of the Premier Building,
Independence Avenue, Bhisho 5605
Tel: +27 40 609 6644 | Fax: +27 86 681 9493
Website: www.ecprov.gov.za
Department of Cooperative Governance
and Traditional Affairs
MEC: Xolile Nqata
Tyamzashe Bldg, Room 2124, 2nd Flr, Bhisho 5605
Tel: +27 40 609 5656/8 | Fax: +27 40 639 2163
Website: www.eccogta.gov.za
Department of Economic Development,
Environmental Affairs and Tourism
MEC: Mlungisi Mvoko
2nd Flr, Beacon Hill, Hockley Cl, King Williams Town
5600
Tel: +27 43 605 7000 | Fax: +27 43 605 7303
Website: www.dedea.gov.za
Department of Education
MEC: Fundile Gade
Steve Tshwete Education Bldg, Zwelitsha Zone 6,
Zwelitsha 5608
Tel: +27 40 608 4200 | Fax: +27 40 608 4040
Website: www.ecdoe.gov.za
Department of Health
MEC: Nomakhosazana Meth
Dukumbane Bldg, Independence Ave, Bhisho 5605
Tel: +27 40 608 1117 | Fax: +27 40 608 1118
Website: www.echealth.gov.za
Department of Human Settlements
MEC: Nonceba Kontsiwe
31-33 Phillip Frame Rd, Waverly Park, Chiselhurst,
East London 5247
Tel: +27 43 711 9901/2/3 | Fax: +27 43 711 9797
Website: www.ecdhs.gov.za
Department of Public Works and
Infrastructure
MEC: Babalo Madikizela
5 Qasana Bldg, Independence Avenue, Bhisho 5605
Tel: 0800 864 951 | Website: www.ecdpw.gov.za
Department of Rural Development
and Agrarian Reform
MEC: Nonkqubela Pieters
Dukumbane Bldg, Independence Ave, Bhisho 5606
Tel: +27 40 602 5006 | Fax: +27 40 635 0604
Website: www.drdar.gov.za
Department of Safety and Liaison
MEC: Weziwe Tikana Gxothiwe
Arches Building 7, Taylor St, King Williams Town 5601
Tel: +27 43 605 6800 | Fax: 086 558 0224
Website: www.ecprov.gov.za
Department of Social Development
MEC: Siphokazi Mani-Lusithi
Phalo Ave, 5th Flr, Dukumbana Building, Bisho 5605
Tel: +27 43 605 5419 | Fax: +27 43 605 5000
Website: www.ecdsd.gov.za
Department of Sports, Recreation,
Arts and Culture
MEC: Fezeka Nkomonye
5 Eales St, King Williams Town 5600
Tel: +27 43 604 4101 | Website: www.ecsrac.gov.za
Department of Transport
MEC: Weziwe Tikana Gxothiwe
Flemming St, Schornville, King Williams Town 5601
Tel: +27 43 604 7400 | Fax: 086 298 5598
Website: www.ectransport.gov.za
Provincial Treasury
MEC: Mlungisi Mvoko
Provincial Treasury, Tyamzashe Bldg, Bhisho 5605
Tel: +27 40 353 9944 | Fax: +27 40 101 0731
Website: www.ectreasury.gov.za
EASTERN CAPE BUSINESS 2022/23
40

Eastern Cape Local Government
A guide to the Eastern Cape’s metropolitan, district and local municipalities.
LISTING
ALFRED NZO DISTRICT MUNICIPALITY
Erf 1400, Ntsizwa Street, Mount Ayliff
Tel: +27 39 254 5000 | Fax: +27 39 254 0343
Email: info@andm.gov.za
Website: www.andm.gov.za
Matatiele Local Municipality
Tel: +27 39 737 8100
Fax: +27 39 737 3611
Website: www.matatiele.gov.za
Ntabankulu Local Municipality
Tel: +27 39 258 0056
Fax: +27 39 258 0173
Website: www.ntabankulu.gov.za
Umzimvubu Local Municipality
Tel: +27 39 255 8500
Fax: +27 39 255 0167
Website: www.umzimvubu.gov.za
Winnie Madikizela-Mandela Local Municipality
Tel: +27 39 251 0230
Fax: +27 39 251 0917
Website: www.mbizana.gov.za
AMATHOLE DISTRICT MUNICIPALITY
3-33 Phillip Frame Road, Chiselhurst,
Cambridge, East London
Tel: +27 43 701 4000 | Fax: +27 43 742 0337
Email: info@amathole.gov.za
Website: www.amathole.gov.za
Amahlathi Local Municipality
Tel: +27 43 683 5000 | Fax: +27 43 683 2970
Website: www.amahlathi.gov.za
Great Kei Local Municipality
Tel: +27 43 831 1028 | Fax: +27 43 831 1483
Website: www.greatkeilm.gov.za
Mbashe Local Municipality
Tel: +27 47 489 5800 | Fax: +27 47 489 5800
Website: www.mbhashemun.gov.za
Mnquma Local Municipality
Tel: +27 47 401 2400 | Fax: +27 47 491 0195
Website: www.mnquma.gov.za
Ngqushwa Local Municipality
Tel: +27 40 673 3095 | Fax: +27 40 673 3771
Website: www.ngqushwamun.gov.za
Raymond Mhlaba Local Municipality
Tel: +27 46 645 7400
Fax: +27 46 645 2562
Website: www.raymondmhlaba.gov.za
BUFFALO CITY METROPOLITAN
MUNICIPALITY
117 Oxford Street, Cnr North and Oxford Streets,
Trust Centre, East London
Tel: +27 43 705 2000 | Fax: +27 43 743 1688
Website: www.buffalocity.gov.za
CHRIS HANI DISTRICT MUNICIPALITY
15 Bells Road, Komani
Tel: +27 45 808 4600 | Fax: +27 45 838 1556
Website: www.chrishanidm.gov.za
Emalahleni Local Municipality
Tel: +27 47 878 0020 | Fax: +27 47 878 0112
Website: www.emalahleni.gov.za
Engcobo Local Municipality
Tel: +27 47 548 5600 | Fax: +27 47 548 1078
Website: www.engcobolm.gov.za
Enoch Mgijima Local Municipality
Tel: +27 45 807 2606
Fax: +27 45 807 2637
Website: www.enochmgijima.org.za
Intsika Yethu Local Municipality
Tel: +27 47 874 8700 | Fax: +27 47 874 0010
Website: www.intsikayethu.gov.za
41 EASTERN CAPE BUSINESS 2022/23

LISTING
Inxuba Yethemba Local Municipality
Tel: +27 48 801 5000
Fax: +27 48 881 1421
Website: www.iym.co.za
Sakhisizwe Local Municipality
Tel: +27 47 877 5200
Fax: +27 47 877 0000
Website: www.sakhisizwe.gov.za
JOE GQABI DISTRICT MUNICIPALITY
Cnr Cole and Graham Streets, Barkly East
Tel: +27 45 979 3000
Fax: +27 45 971 0251
Website: www.jgdm.gov.za
Elundini Local Municipality
Tel: +27 45 932 8100 | Fax: +27 45 932 1094
Website: www.elundini.org.za
Senqu Local Municipality
Tel: +27 51 603 1300 | Fax: +27 51 603 0445
Website: www.senqumunicipality.co.za
Walter Sisulu Local Municipality
Tel: +27 51 653 1777
Fax: +27 51 653 0056
Website: www.wslm.gov.za
NELSON MANDELA BAY METROPOLITAN
MUNICIPALITY
City Hall, Vuyisile Mini Square,
Govan Mbeki Avenue, Nelson Mandela Bay
Tel: +27 41 506 3208/9
Fax: +27 41 506 2422
Website: www.nelsonmandelabay.gov.za
OR TAMBO DISTRICT MUNICIPALITY
OR Tambo House, Nelson Mandela Drive,
Myezo Park, Mthatha
Tel: +27 47 501 6400
Fax: +27 47 532 6518
Website: www.ortambodm.gov.za
Ingquza Hill Local Municipality
Tel: +27 39 252 0131
Fax: +27 39 252 0699
Website: www.ihlm.gov.za
King Sabata Dalindyebo Local Municipality
Tel: +27 47 501 4000 | Fax: +27 47 531 3128
Website: www.ksd.gov.za
Mhlontlo Local Municipality
Tel: +27 47 553 7000 | Fax: +27 47 553 0189
Website: www.mhlontlolm.gov.za
Nyandeni Local Municipality
Tel: +27 47 555 5000 | Fax: +27 47 555 0202
Website: www.nyandenilm.gov.za
Port St Johns Local Municipality
Tel: +27 47 564 1207
Fax: +27 47 564 1206
Website: www.psjmunicipality.gov.za
SARAH BAARTMAN DISTRICT
MUNICIPALITY
32 Govan Mbeki Avenue, Port Elizabeth
Tel: +27 41 508 7111
Fax: +27 41 508 7000
Website: www.sarahbaartman.co.za
Blue Crane Route Local Municipality
Tel: +27 49 807 5700 | Fax: +27 49 892 4319
Website: www.bcrm.gov.za
Dr Beyers Naude Local Municipality
Tel: +27 49 807 5700 | Fax: +27 49 892 4319
Website: www.camdeboo.gov.za
Kouga Local Municipality
Tel: +27 42 200 2200 | Fax: +27 42 200 8606
Website: www.kouga.gov.za
Kou-Kamma Local Municipality
Tel: +27 42 288 7200 | Fax: +27 42 288 0797
Website: www.koukammamun.co.za
Makana Local Municipality
Tel: +27 46 603 6111
Fax: +27 46 622 9700
Website: www.makana.gov.za
Ndlambe Local Municipality
Tel: +27 46 624 1140
Fax: +27 46 624 2669
Website: www.ndlambe.gov.za
Sundays River Valley Local Municipality
Tel: +27 42 230 7700/0077
Fax: +27 42 230 1799
Website: www.srvm.gov.za

Coca-Cola Beverages South Africa is creating
employment and stimulating economic growth
Bizniz in a Box is building an ecosystem of viable micro-businesses.
A number of small business owners in Mdantsane in
the Eastern Cape are ready to take their ventures to
the next level after they were selected to be part of the
Bizniz in a Box (BiB) initiative which seeks to empower
township and rural entrepreneurs as part of building a
more inclusive economy.
Entrepreneurs in and around the Mdantsane
taxi rank have taken ownership of their containers
which have been fully customised and fitted out with
kitchens. The business owners also received tables,
coolers and start-up stock, as well as dust coats,
aprons and Covid-19 PPE.
Coca-Cola Beverages South Africa (CCBSA)
sees BiB as the ideal platform to support emerging
and small businesses, particularly those run by
young people and women. The BiB programme
further offers the opportunity to learn business skills.
Bizniz in a Box envisages an ecosystem of viable
micro-businesses offering complementary products
and services in township communities, alongside
the local spaza shop, covering a range of services,
from business centres providing Internet access, car
washes, fast-food shops or mini bakeries.
Critical to growth
Sakhumzi Ncapayi, the CCBSA District Manager, says,
“We understand how critical the SMME sector is to our
economic revival following the Covid-19 pandemic, and
the important role small businesses will play in the future
growth of South Africa and Africa.”
Bizniz in a Box was first piloted in 2015 in the
Free State. By the end of 2020, through Bizniz in a
Box, CCBSA and its partners had trained 749 young
entrepreneurs and helped 224 of them to take their
businesses to the next level, creating 185 additional jobs
by employing shop assistants.
Beneficiary Siyamthanda Soxusa, 26, says of her
fast foods take-away business, “Bizniz in a Box means
so much to me because before I was working in a small
container. I bought stock every day and ended with
minimal profit. With this initiative, everything is convenient
and I can see the growth in my business.”
Buffalo City Metro spokesperson Samkelo Ngwenya
said at the launch, “We are delighted that the Bizniz in a Box
programme has reached Mdantsane and we believe that
this empowerment initiative will lead to the transformation of
not only this area, but the lives of our people.”
Top left: Siyamthanda Soxusa is seeing growth in her
business. Bottom left: Anda Mabamba, 35, in front
of fast food outlet Zoe’s Kitchen, which is now run as
part of Bizniz in a Box. Right : Nolubabalo Katshwa,
50, is one of the beneficiaries of CCBSA’s Bizniz in a
Box programme.
EASTERN CAPE BUSINESS 2022/23
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