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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


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. ■


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


(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


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


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


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


Northern Cape

2%

LESOTHO


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%


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.


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


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. ■


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.


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


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. ■



Tel: +27 43 704 5604




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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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


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


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


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.


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. ■


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


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. ■


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


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. ■


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). ■


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


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 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. ■


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.



Tel: +27 43 704 5604



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. ■


LISTING


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


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


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.


44

Eastern Cape Business 2022-23

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