Eastern Cape Business 2022-23

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<strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> <strong>2022</strong>/<strong>23</strong> edition<br />

Introduction<br />

Foreword 3<br />

A unique guide to business and investment in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

Special features<br />

Regional overview of the <strong>Eastern</strong> <strong>Cape</strong> 8<br />

A new national park could further<br />

boost <strong>Eastern</strong> <strong>Cape</strong> tourism.<br />

The <strong>Eastern</strong> <strong>Cape</strong> sends citrus and<br />

cars to the world 14<br />

Lemons to China and bakkie-making kits to Kenya are new<br />

items in the export basket.<br />

Economic sectors<br />

Agriculture and agro-processing 24<br />

Managing water supplies is crucial for citrus growers.<br />

Renewable energy 28<br />

Investment in solar and wind projects is ramping up.<br />

Oceans Economy 30<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s long coastline has enormous potential.<br />

Tourism and film 31<br />

The Covid-19 fourth wave badly dented hospitality’s recovery.<br />

Manufacturing general 32<br />

Aspen is making vaccines for Africa.<br />

Manufacturing automotive 33<br />

Volkswagen has celebrated 70 years of making cars in South Africa.<br />

Education and training 34<br />

Nelson Mandela University has a new Medical School.<br />

Banking and financial services 35<br />

Digital services are expanding<br />

and improving.<br />

Development finance<br />

and SMME support 36<br />

Wild Coast farmers are supplying new markets.<br />


From top left. Nxuba Wind Farm (Enel); Transnet National Ports Authority, Coega SEZ (TNPA); The Magwa<br />

and Majola Tea Estates are being revitalised and crops are again being sold after a dormant period. Magwa<br />

Enterprise Tea (MET) is wholly owned by the <strong>Eastern</strong> <strong>Cape</strong> Provincial Government and managed by the<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency (ECRDA). Located in Lusikisiki, 45km from Port St Johns, there are<br />

plans to upgrade the tourism facilities to include conference facilities, an 18-hole golf course and a hotel<br />

(MET); Nelson Mandela Bay Stadium (Kierran Allen Photography/NMBS); Wild Coast waterfall (ECDC).<br />





2021/22 EDITION<br />

<strong>2022</strong>/<strong>23</strong> 20<strong>23</strong> EDITION<br />

2021/22 EDITION

<strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong><br />

A unique guide to business and investment in the <strong>Eastern</strong> <strong>Cape</strong>.<br />


Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Tyra Martin<br />

Production: Aneeqah Solomon<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Tahlia Wyngaard<br />

Tennyson Naidoo<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Shiko Diala<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />


<strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is distributed internationally on outgoing and<br />

incoming trade missions, through trade and investment agencies;<br />

to foreign offices in South Africa’s main trading partners around the<br />

world; at top national and international events; through the offices<br />

of foreign representatives in South Africa; as well as nationally and<br />

regionally via chambers of commerce, tourism offices, airport lounges,<br />

provincial government departments, municipalities and companies.<br />

The <strong>2022</strong>/<strong>23</strong> edition of <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is the 15th edition of this<br />

successful publication that, since its launch in 2006, has established itself<br />

as the premier business and investment guide for the <strong>Eastern</strong> <strong>Cape</strong>.<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s strengths in the citrus and automotive<br />

manufacturing are noted in a special feature on provincial exports in this edition.<br />

Citrus is cultivated in several areas of the province, but most notably in the<br />

Sundays River Valley, the country’s single biggest supplier of citrus from one<br />

distinct area.<br />

Three towns and two Special Economic Zones host original equipment<br />

manufacturers (OEMs) and automotive component companies. Volkswagen has<br />

been making cars in Kariega for 71 years, Mercedes-Benz in East London has<br />

gone past its 60th anniversary and Ford (engines) and Isuzu are staples of the<br />

Gqeberha economy.<br />

The regional economy notes developments in the film and tourism sectors,<br />

with the exciting prospect of a new national park being proclaimed in the<br />

province. Overviews are provided on the key economic sectors of the province<br />

and the potential of the Oceans Economy and the prospects of oil and gas for<br />

this coastal province are examined. The major business chambers in the province<br />

have made contributions to the journal.<br />

To complement the extensive local, national and international distribution of the<br />

print edition, the full content can also be viewed online at www.easterncapebusiness.<br />

co.za. Updated information on the <strong>Eastern</strong> <strong>Cape</strong> is also available through our monthly<br />

e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our<br />

complementary business-to-business titles that cover all nine provinces as well as our<br />

flagship South African <strong>Business</strong> title. In 2020 the inaugural edition of African <strong>Business</strong><br />

was published. ■<br />

Chris Whales<br />

Publisher, Global Africa Network | Email: chris@gan.co.za<br />


Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

Member of the Audit Bureau<br />

of Circulations ISSN 1995-1310<br />

COPYRIGHT | <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to the<br />

publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Acoustex Group; Angus Burns/WWF South Africa;<br />

BAIC Group; BTE Renewables; Citrus Growers’ Association of Southern<br />

Africa; Coega Development Corporation (CDC); Sandy Coffey; Enel<br />

Green Power; Ford Motor Company South Africa; Lona Group; Montego<br />

Pet Nutrition; Nelson Mandela University; SOLA; Sundays River Citrus<br />

Company; Walmer Park Shopping Centre; Wild Coast Sun.<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information<br />

contained in <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is accurate and up-to-date, the<br />

publishers make no representations as to the accuracy, quality,<br />

timeliness, or completeness of the information. Global Africa Network<br />

will not accept responsibility for any loss or damage suffered as a result<br />

of the use of or any reliance placed on such information.<br />

5<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


Welcome to the <strong>Eastern</strong> <strong>Cape</strong>,<br />

the Home of Legends!<br />

A newly-minted One Stop Shop for investors and three well-provisioned<br />

Special Economic Zones are among the benefits on offer for investors into<br />

the <strong>Eastern</strong> <strong>Cape</strong>, as outlined by Ayanda Wakaba, CEO of the <strong>Eastern</strong> <strong>Cape</strong><br />

Development Corporation.<br />

Ayanda Wakaba, CEO of the <strong>Eastern</strong> <strong>Cape</strong> Development Corporation<br />

The <strong>Eastern</strong> <strong>Cape</strong> is a vibrant province<br />

of unmatched beauty with a wealth<br />

of natural resources and a worldclass<br />

manufacturing industry which<br />

includes South Africa’s leading automotive<br />

manufacturing industry.<br />

Often referred to as a “world in one province”,<br />

the <strong>Eastern</strong> <strong>Cape</strong> boasts the most successful<br />

Industrial Development Zones in South Africa, the<br />

East London Industrial Development Zone, and<br />

Coega Industrial Development Zone, with the<br />

newly-established Wild Coast Special Economic<br />

Zone all ideally situated for easy access to world<br />

markets.<br />

Responsible for the facilitation of investment<br />

and trade in the province, the <strong>Eastern</strong> <strong>Cape</strong><br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />



Development Corporation (ECDC) has been<br />

repositioned as a central economic development<br />

agency for the province. The ECDC’s strategic<br />

thrust fosters advocacy work which promotes<br />

provincial economic transformation, inclusive<br />

growth and competitiveness, investor-focussed<br />

solutions, pioneering innovation in key growth<br />

sectors, operational efficiency and financial<br />

sustainability.<br />

At the ECDC, we place emphasis on the<br />

implementation of trade and investment<br />

programmes which intend to leverage on the<br />

inherent economic potential of the province.<br />

These activities encourage trade and investment<br />

in the priority sectors of the <strong>Eastern</strong> <strong>Cape</strong><br />

economy which have a high potential for job<br />

creation, beneficiation and opportunities for the<br />

development of a competitive local SMME sector.<br />

For the ease and convenience of doing<br />

business in the <strong>Eastern</strong> <strong>Cape</strong>, the InvestSA One<br />

Stop Shop <strong>Eastern</strong> <strong>Cape</strong>, which is a South African<br />

presidential investment facilitation initiative<br />

implemented in partnership with the Department<br />

of Trade, Industry and Competition, serves as a<br />

vehicle to reduce the administrative burden often<br />

experienced by investors. The InvestSA One Stop<br />

Shop <strong>Eastern</strong> <strong>Cape</strong> facility thus acts as a single<br />

point of contact for investor interface, queries<br />

and aftercare. Matters relating to regulatory<br />

compliance, licensing and permits, interface with<br />

local authorities and communities are among the<br />

services the InvestSA One Stop Shop <strong>Eastern</strong> <strong>Cape</strong><br />

prides itself on.<br />

The ECDC welcomes you to the unmatched<br />

potential of the <strong>Eastern</strong> <strong>Cape</strong> Province.<br />

Realise the <strong>Eastern</strong> <strong>Cape</strong>, it’s Yours to Explore. ■<br />

7 EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>

FOCUS<br />

<strong>Eastern</strong> <strong>Cape</strong><br />

Development Corporation<br />

Key priority sectors.<br />

The Oceans Economy holds great promise for the<br />

<strong>Eastern</strong> <strong>Cape</strong>. ECDC Board Chairperson Vuyani<br />

Jarana and the Chief Executive Officer Ayanda<br />

Wakaba visited four businesses taking advantage<br />

of the province’s vast coastline in August 2021.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation<br />

(ECDC) focuses on seven growth sectors<br />

which are all aligned to the Provincial<br />

Economic Development Strategy and<br />

Provincial Development Plan.<br />

These sectors are:<br />

• Agriculture and agro-processing<br />

• Sustainable energy, generation and component<br />

manufacture<br />

• Oceans Economy<br />

• Automotive<br />

• Light manufacturing<br />

• Tourism, infrastructure and product<br />

• Film<br />

The <strong>Eastern</strong> <strong>Cape</strong> has experienced sizeable local<br />

and international investment in key sectors such as<br />

automotive, renewable energy and forestry.<br />

The film and tourism sectors received a boost<br />

with the filming of Survivor South Africa: Immunity<br />

Island on the Wild Coast, which not only boosted the<br />

regional economy by R10-million and created more<br />

than 100 jobs but will sell the province to a large<br />

television audience.<br />

All of the province’s original equipment<br />

manufacturers (OEMs) have made commitments to<br />

expand or upgrade their production lines in recent<br />

months: Mercedes-Benz South Africa (East London);<br />

Volkswagen SA (Kariega); BAIC (Coega SEZ); Ford Motor<br />

Company and Isuzu (Gqeberha).<br />

As recently as March <strong>2022</strong>, the Africa Auto Group<br />

committed to an investment of R550-million to enter the<br />

injection moulding industry in Nelson Mandela Bay.<br />

With more than half of the wind power projects in the<br />

national government’s renewable energy plan allocated<br />

to the <strong>Eastern</strong> Province, the region can truly be called the<br />

Wind Power Province. A green hydrogen project has been<br />

announced which holds enormous potential for opening<br />

up a completely new sector.<br />

Manufacturing for the renewable energy sector is<br />

another potential area of growth, and the province’s<br />

Special Economic Zones are uniquely positioned to host<br />

such activity.<br />

One of the competitive advantages of investing in the<br />

<strong>Eastern</strong> <strong>Cape</strong> lies in the two Special Economic Zones in<br />

East London and at Coega, which hosts a deepwater port.<br />

Both SEZs are strategically situated on major transport and<br />

shipping routes and provide purpose-built infrastructure<br />

for investors wishing to produce and manufacture for<br />

the Southern African Development Community and<br />

world markets. An<br />

integrated database<br />

system has been<br />

developed and<br />

maintained by the<br />

SEZs. Through this<br />

portal, potential<br />

investors have ready<br />

access to skilled,<br />

semi-skilled and<br />

unskilled labour<br />

resources. ■<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />

8<br />

The shooting of the latest version<br />

of the Survivor TV series will further<br />

boost the popularity of the spectacular<br />

Wild Coast. Credit: ECDC

Fast-tracking projects<br />

and lowering the cost<br />

of doing business<br />


The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation<br />

(ECDC) is the host of the <strong>Eastern</strong> <strong>Cape</strong><br />

Investor One Stop Shop.<br />

The Investor One Stop Shop initiative is<br />

geared towards providing investors with services<br />

to fast-track projects and reduce government red<br />

tape when establishing a business. It is part of the<br />

government’s drive to become investor friendly by<br />

improving the business environment by lowering<br />

the cost of doing business as well as making the<br />

process easier.<br />

One Stop Shops house government entities<br />

such as the South African Revenue Service (to help<br />

with customs and tax), Home Affairs, Environmental<br />

Affairs, Eskom and the Companies and Intellectual<br />

Properties Commission under one roof.<br />

An investor can make an appointment, meet a<br />

government representative and be guided by the<br />

representative through the process of setting up a<br />

business. The One Stop Shops simplify administrative<br />

procedures for issuing business approvals, permits and<br />

licences and thereby remove bottlenecks that investors<br />

may face in establishing and running businesses.<br />

The offering includes, but is not limited to:<br />

• Providing an accessible entry point for investors<br />

in need of regulatory compliance.<br />

• Enhancing regulatory and legal processes.<br />

• Improving approval turnaround timeframes.<br />

• Providing information on incentives (tax, land,<br />

training, free trade zones, etc).<br />

• Providing pre-approval information (market<br />

data, costs, incentives, project approval, local<br />

partners, etc).<br />

• Providing post-approval information (facilitation<br />

of permit approvals, information relating to<br />

import of equipment and raw materials, central<br />

bank profit repatriation, etc) to investors.<br />

Participating national government entities<br />

• InvestSA is a division of the South African<br />

Department of Trade, Industry and Competition<br />

(the dtic)<br />

• <strong>Business</strong> registry: Companies and Intellectual<br />

Property Commission (CIPC)<br />

• Tax authority: South African Revenue Service (SARS)<br />

• International Trade Administration Commission<br />

(ITAC)<br />

• National Regulator for Compulsory Specifications<br />

(NRCS)<br />

• Public electricity utility: Eskom<br />

• Municipal Infrastructure Support Agent (MISA)<br />

Visa facilitation<br />

Visa and permit applications can be made at Visa<br />

and Permit Facilitation Centres. Applications are<br />

then assessed by the Department of Home Affairs in<br />

Pretoria. Non-South Africans with a legal residency<br />

permit in South Africa can apply for a visa or permit<br />

at these centres.<br />

There are centres in every province. In the <strong>Eastern</strong><br />

<strong>Cape</strong> there is an office in East London. The South<br />

African government is reviewing its critical skills list as<br />

well as taking steps to make it easier for people who<br />

qualify to apply.<br />

The <strong>Eastern</strong> <strong>Cape</strong> invitation<br />

The <strong>Eastern</strong> <strong>Cape</strong> InvestSA One Stop Shop and ECDC<br />

team can advise you on investment opportunities<br />

and assist investment and trade opportunities from<br />

the same offices. The <strong>Eastern</strong> <strong>Cape</strong> team is committed<br />

and qualified to assist and guide you from concept to<br />

investment phase.<br />

We look forward to hearing from you and partnering<br />

with you to make your investment a success! ■<br />

Contact details<br />

Address: 12 Esplanade, Quigney, East London<br />

Tel: +27 87 131 1450<br />

Email: info@investeasterncape.co.za<br />

Website: www.ecdc.co.za




A new national park could further boost <strong>Eastern</strong> <strong>Cape</strong> tourism<br />

By John Young<br />

Tourism is one of the sectors that was<br />

hit hardest by Covid-19. Many events<br />

were cancelled, foreign visitors were<br />

absent from attractions such as the Addo<br />

Elephant National Park and the Baviaanskloof<br />

World Heritage Site and guest houses and hotels<br />

struggled to make ends meet.<br />

Although times were tough for the “Adventure<br />

Province”, there was some good news out of a<br />

sector that still retains enormous potential for<br />

growth and has been identified by the <strong>Eastern</strong> <strong>Cape</strong><br />

Development Corporation (ECDC) as a priority sector.<br />

The ECDC invested R2-million in attracting<br />

the TV series Survivor South Africa: Immunity Island<br />

and that will undoubtedly pay off when the<br />

series is aired in great interest from domestic and<br />

international travellers in the spectacular Wild Coast<br />

region. The immediate economic impact of the<br />

filming was estimated at R10-million with 103 jobs<br />

created to support the project.<br />

The north-eastern segment of the province<br />

is the site of a possible future national park,<br />

which would bring to five the number of<br />

national parks in the province, joining the<br />

Addo Elephant, Camdeboo, Garden Route and<br />

Mountain Zebra National Parks. These parks not<br />

only look after animals but also protect quite<br />

distinct types of vegetation.<br />

If the proposed Grassveld National Park is<br />

established high in the mountains above the village<br />

of Rhodes and near to the border with Lesotho, it<br />

would be South Africa’s 20th. The conservation goal<br />

behind the park is to preserve grasslands through<br />

agreements with landowners and farmers who<br />

would continue to farm the land responsibly. The<br />

land of the Batlokoa community (pictured) is near<br />

the famous Naude’s Neck Pass.<br />

As a source of clean water, the area is a hugely<br />

important resource and worth preserving for that<br />

reason too. The falling water shown in the main<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />



Credit: Angus Burns/WWF South Africa<br />

picture on this page is described by Andrew Weiss<br />

of the WWF as “heading towards the Mzimvubu<br />

River and the Indian Ocean” while another small<br />

stream at the top of the mountain is destined<br />

to join the Orange River in the west. Weiss also<br />

described rock paintings of eland and reedbuck<br />

“with the unusual addition of dogs and a fat-tailed<br />

sheep”. The Grassveld National Park project of the<br />

South African National Botanical Institute (SANBI)<br />

has already recorded 1 131 species of plant life on<br />

the iNaturalist app.<br />

In addition to national parks, the <strong>Eastern</strong><br />

<strong>Cape</strong> has 15 provincial nature reserves and<br />

a multitude of luxury private game reserves.<br />

Shamwari Private Game Reserve reported that<br />

its non-paying guests were thriving on all the<br />

special attention they received during lockdown.<br />

Shamwari’s Wildlife Rehabilitation Centre took in<br />

Milly, an adult meerkat who had been not well<br />

looked after as a pet. The centre’s staff kept her<br />

mentally and physically stimulated and she has<br />

learnt to crack her own raw eggs, to go with a<br />

healthy number of blueberries which make up<br />

her diet. The events sector was just about to<br />

restart before the Omicron variant put a stop to<br />

all travel. This is something the <strong>Eastern</strong> <strong>Cape</strong> does<br />

well, with the National Arts Festival and a variety<br />

of sporting events such as Iron Man being hosted<br />

by the province. In the week before the Omicron<br />

variant shocked some countries into banning<br />

travel, St Francis Links successfully hosted the<br />

South African PGA Championship and showed<br />

how well multiple companies, guest houses and<br />

sponsors can work together to create something<br />

of international quality. The tournament also<br />

brought employment opportunities to the region.<br />

Other than tourism and film, the following<br />

sectors have been identified by the ECDC as<br />

priority sectors: agriculture and agro-processing,<br />

sustainable energy, the Oceans Economy,<br />

automotive, light manufacturing. Each of these<br />

categories is the subject of an updated economic<br />

overview in this journal.<br />

The ECDC’s mandate is to plan, finance,<br />

coordinate, market, promote and implement the<br />

development of the <strong>Eastern</strong> <strong>Cape</strong> in industry,<br />

commerce, agriculture, transport and finance, which<br />

it does through three core units.<br />

Diversification is an important part of provincial<br />

plans. An example of this is the <strong>Business</strong> Process<br />

Outsourcing (BPO) sector. BPO has received a boost<br />

with the establishment of an ICT Academy in Mthatha.<br />

Enrolment in <strong>2022</strong> increased to 100. The centre is a<br />

partnership between the provincial government and<br />

Liquid Intelligent Technologies South Africa.<br />

In 2021, more than 7 520 young people<br />

benefitted from the R363-million which various<br />

Sector Education and Training Authorities (SETAs)<br />

put into training programmes in the following<br />

sectors in the province: manufacturing, engineering<br />

and related services, public sector, mining, banking,<br />

chemical, local government, wholesale and retail,<br />

education, training and development and insurance.<br />

With three ports and two large airports, the<br />

<strong>Eastern</strong> <strong>Cape</strong> is well suited to logistics activity. The<br />

Cookhouse-Blaney rail branch line is now working.<br />

Having this connection operational and linked<br />

to the Agriport Terminal at the East London port<br />

reduces the costs of logistics and fits into a major<br />

national and provincial goal of moving goods from<br />

road to rail.<br />

11<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>

The South African PGA golf tournament at St Francis Links showed how events can be linked to employment<br />

opportunities. Here the expanded ground staff follow the last group of golfers in on the final<br />

day – and earn some applause of their own for putting on a fine tournament. Credit: Sandy Coffey<br />

Special Economic Zones<br />

Transnet National Ports Authority (TNPA) has<br />

established new national headquarters at the Port<br />

of Ngqura within the Coega Special Economic Zone<br />

(Coega SEZ).<br />

The value proposition of the Port of Ngqura is<br />

that as a deepwater port strategically positioned<br />

within an SEZ, it can provide integrated, competitive<br />

and efficient port services as a global transhipment<br />

hub ideally positioned on the east coast of Africa.<br />

Transnet has agreed that the tank farm and<br />

manganese storage facility at the Port of Gqeberha<br />

is to be moved to the Port of Ngqura. This will<br />

open up prime waterfront space to tourism and<br />

hospitality businesses.<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s two SEZs are key drivers in<br />

the province’s strategy to attract investors. At the<br />

Coega SEZ, major current investors include BAIC<br />

SA (R11-billion), the Dedisa Power Peaking Plant<br />

(R3.5-billion), FAW SA (R600-million) and CEMZA,<br />

a cement company (R600-million). Even though<br />

Covid-19 had an effect on activity in the SEZ,<br />

construction continued during 2020. The following<br />

facilities were built: two for logistics companies<br />

(DHL Logistics and APLI), a multi-user facility and<br />

the new Aquaculture Development Zone, which<br />

is being developed at a cost of R259-million. This<br />

aligns with the Oceans Economy master plan,<br />

which aims to leverage the province’s coastal assets<br />

in terms of fishing, bunkering, oil and gas industry<br />

development, tourism and marine transport and<br />

manufacturing.<br />

The Coega Development Corporation (CDC),<br />

which is assisting in the rollout of infrastructure<br />

projects in different parts of South Africa, is<br />

assisting <strong>Eastern</strong> <strong>Cape</strong> provincial departments,<br />

public entities and municipalities to package<br />

projects to attract funding.<br />

The East London Industrial Development<br />

Zone (ELIDZ) has a strong suit in automotive<br />

suppliers, anchored around the proximity to<br />

the Mercedes-Benz South Africa facility. The<br />

ELIDZ has also received recent investments in<br />

a diamond cutting and polishing and condom<br />

manufacturing.<br />

An established market for Liquefied Natural<br />

Gas (LNG) exists within the Coega SEZ. The<br />

existing 342MW Dedisa Power Peaking Plant at<br />

Coega already has environmental authorisation<br />

for a 400kV transmission line between the plant<br />

site and the Dedisa substation which reduces<br />

costs for future investors. A draft scoping report<br />

has been prepared for an integrated LNG<br />

terminal and gas-to-power plant.<br />

National government has named the<br />

Coega SEZ as the potential site for a 1 000MW<br />

Liquefied Natural Gas (LNG) plant. The value to<br />

the regional economy of the project is estimated<br />

at R25-billion. Imported LNG would be used as<br />

feedstock initially, while exploring local sources.<br />

Drilling off the southern coast has revealed vast<br />

resources in the Brulpadda field in the Southern<br />

Outeniqua Basin. If some of this gas could be<br />

recovered, the two SEZs on the <strong>Eastern</strong> <strong>Cape</strong><br />

coast would become critical to its utilisation.<br />

Activity in the oil and gas sector would in<br />

turn stimulate the maritime sector. The potential<br />

of the Oceans Economy is receiving attention<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />



and Nelson Mandela University’s Ocean Campus<br />

is one of the leaders in this new field. The South<br />

African International Maritime Institute (SAIMI) has<br />

new headquarters in Port Elizabeth.<br />

Economic strengths<br />

The <strong>Eastern</strong> <strong>Cape</strong> continues to punch above its<br />

weight in terms of export volumes. A separate<br />

article elsewhere in this journal digs down<br />

into the details of this aspect of the provincial<br />

economy, but a glance at the three winners in<br />

a particular category in Exporter of the Year run<br />

by Exporters <strong>Eastern</strong> <strong>Cape</strong> shines a light on the<br />

province’s strengths.<br />

Three companies were recognised in Best<br />

Exporter, Corporate (export turnover greater than<br />

R200-million): Purem Port Elizabeth (Eberspächer<br />

SA, automotive) received a merit award for<br />

improvement in profitability; San Miguel Fruits<br />

South Africa won a merit award for increased<br />

export turnover and profitability with the winner<br />

being SMA Engineering South Africa (engines and<br />

power transmissions).<br />

These companies neatly represent the<br />

automotive and fruit sectors, the two biggest<br />

earners from exports. The biggest winner on the<br />

night was Volkswagen South Africa, but each of the<br />

province’s other OEMs are regularly “winners” in the<br />

sense that Isuzu, Ford and Mercedes-Benz routinely<br />

ship tens of thousands of vehicles and engines to<br />

every part of the globe.<br />

Isuzu recently launched the first locally<br />

engineered and produced seventh-generation<br />

D-MAX bakkie, using for the first time a new body<br />

shop at the Struandale manufacturing plant and<br />

a new chassis assembly line at the company’s<br />

Kempston Road facility.<br />

The initial R10-billion that Mercedes-Benz<br />

invested in making its East London factory ready<br />

for the production of the latest C-Class was<br />

supplemented in 2021, when the first vehicles rolled<br />

off the floor, by news that an additional R3-billion<br />

was to go into building three new assembly lines, a<br />

new body shop and more advanced robots.<br />

Ford Motor Company’s Struandale engine plant<br />

in Gqeberha will receive R600-million to prepare<br />

the plant to make the 3.0L V6 turbodiesel engine for<br />

the company’s Ford Ranger, which is put together<br />

in Tshwane. This amount, which includes upgrades<br />

to two existing engine lines, is over and above the<br />

company’s national commitment of R15.8-billion<br />

to be spent on the Silverton assembly plant and<br />

various factories that supply the company.<br />

By the start of 2018, Volkswagen South<br />

Africa had spent more than R6.1-billion on its<br />

plant in Kariega, an investment that enabled the<br />

manufacture of more than 400 000 sixth-generation<br />

Polos by 2021. More than 80% of these vehicles<br />

were exported.<br />

The investment by the joint venture<br />

comprising BAIC, one of China’s biggest vehicle<br />

manufacturers, and the Industrial Development<br />

Corporation was launched in 2016. In September<br />

2020, the first vehicles manufactured and<br />

assembled at the Coega SEZ plant were delivered<br />

to dealerships. The company claims that two of its<br />

models (the D20 hatchback and sedan, and the<br />

X25 SUV) have directly created 1 000 jobs and<br />

indirectly created 5 000 jobs in South Africa. ■<br />

Milly the meerkat. Credit: Shamwari Private<br />

Game Reserve<br />

13<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>

Northern <strong>Cape</strong><br />

2%<br />


<strong>Eastern</strong> <strong>Cape</strong><br />


8%<br />

Western <strong>Cape</strong><br />

14%<br />

omy at a glance<br />

entage contribution South of each province to national African GDP. economy at a glance<br />


ATURE<br />

Insight into the South African ecomomy.<br />

secured tens of thousands of new SPECIAL seats on FEATURE direct<br />

ble: ds South African mining production<br />

flights to and from the city).<br />


• Companies are successfully trading into Africa.<br />

signs reased for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with<br />


veral provincial governments and investment macadamia nuts being the Limpopo most successful.<br />

7%<br />

encies are establishing trade relations and Pecan nuts have done well and wine and grape<br />


argest dy programmes contributors with BRICS countries. State % increase exports to China % contribution<br />

are growing.<br />

Gauteng<br />

Mpumalanga<br />

its to and from China immediately before and • Private education at school and<br />

35%<br />

7% tertiary level is<br />

North West<br />

ter a major BRICS summit in 2018 gave an ination<br />

that Ramaphosa holds high hopes for • New banking licences have been issued and<br />

growing<br />

6%<br />

as a sector.<br />

SWAZI-<br />

LAND<br />

latinum Group Metals 276.1% 39.2%<br />

reased trade with the biggest of the BRICS several more<br />

Free<br />

are<br />

State<br />

in the pipeline. KwaZulu-<br />

5%<br />

Natal<br />

tions. Two-way trade between the countries in • New stock exchanges came on line in 2017 and<br />

16%<br />

17 was worth $39.1-billion. South Africa Northern wants <strong>Cape</strong> more are expected. LESOTHO<br />

2%<br />

grow oldtourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and<br />

came the first country in the world to export railways) is strong. Nedbank’s report on capital<br />

ef to China in 2017, to go with existing exports expenditure in South Africa stated that the<br />

iron ore, platinum and fruit and wine.<br />

29 large projects announced in the first half<br />


anganese ore 208.2%<br />

<strong>Eastern</strong> <strong>Cape</strong><br />

14.2%<br />

8%<br />

urists are visiting South Africa in record numrs<br />

(<strong>Cape</strong> Town’s Air Access programme 14%<br />

Western <strong>Cape</strong><br />

has<br />

on ore 149.1% 13.3%<br />

urce: StatsSA.com<br />

Percentage contribution of each province to national GDP.<br />


Gold 40.9% 6.5<br />

NESS 2019<br />

Source: Table: South world African exports.com mineral sales<br />

Mineral sales increased by 152.7%<br />

year-on-year in April 2021.<br />

of 2018 were valued at R63.9-billion (Financial<br />

Mail). The renewable energy programme<br />

secured tens of thousands of new seats on direct<br />

Trends Table: South African mining production<br />

flights to and from the city).<br />

s on direct<br />

• Companies are successfully trading into Africa.<br />

Good Increased signs for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with<br />

• Several provincial governments and investment macadamia nuts being the most successful.<br />

to Africa.<br />

agencies are establishing trade relations and Pecan nuts have done well and wine and grape<br />

ble: ing with South African mineral sales<br />

study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution<br />

are growing.<br />

uccessful. visits to and from China immediately before and • Private education at school and tertiary level is<br />

ineral sales increased by 152.7%<br />

and grape after a major BRICS summit in 2018 gave an indication<br />

that Ramaphosa holds high hopes for • New banking licences have been issued and<br />

growing as a sector.<br />

ar-on-year Platinum April Group 2021. Metals 276.1% 39.2%<br />

ary level is<br />

increased trade with the biggest of the BRICS several more are in the pipeline.<br />

nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and<br />

2017 was worth $39.1-billion. South Africa wants more are expected.<br />

ssued and to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and<br />

Largest contributors became the first country in the % world increase to export railways) % contribution<br />

is strong. Nedbank’s report on capital<br />

2017 and beef to China in 2017, to go with existing exports expenditure in South Africa stated that the<br />

of<br />

Manganese<br />

iron ore, platinum<br />

ore<br />

and fruit and wine.<br />

208.2%<br />

29 large projects<br />

14.2%<br />

announced in the first half<br />

•<br />

lly ICT and<br />

Tourists are visiting South Africa in record numbers<br />

(<strong>Cape</strong> Town’s Air Access programme 465.9% has Mail). 103 The renewable energy programme<br />

of 2018 were valued at R63.9-billion (Financial<br />

PGMs<br />

on capital<br />

that the Iron ore 149.1% 13.3%<br />

e first half<br />

Iron ore 17 SOUTH AFRICAN BUSINESS 2019<br />

(Financial<br />

115.6% 19.5<br />

ogramme Source: StatsSA.com<br />


Source: world exports.com<br />

Source: world exports.com<br />

Mercedes-Benz SA<br />

Largest contributors % increase % contribution<br />

PGMs 465.9% 103<br />

Iron ore 115.6% 19.5<br />

Gold 40.9% 6.5<br />

Credit: Unsplash

10 REASONS<br />


01.<br />


MARKET<br />

Growing middle class, affluent consumer<br />

base, excellent returns on investment.<br />

02.<br />



South Africa (SA) has the most industrialised economy in Africa.<br />

It is the region’s principal manufacturing hub and a leading<br />

services destination.<br />



SA is the location of choice of multinationals in Africa.<br />

03.<br />

Global corporates reap the benefits of doing business in<br />

SA, which has a supportive and growing ecosystem as a<br />

hub for innovation, technology and fintech.<br />

05.<br />





SA has a sophisticated banking sector with a major<br />

footprint in Africa. It is the continent’s financial hub,<br />

with the JSE being Africa’s largest stock exchange by<br />

market capitalisation.<br />

The African Continental Free Trade Area will boost<br />

intra-African trade and create a market of over one<br />

billion people and a combined gross domestic product<br />

(GDP) of USD2.2-trillion that will unlock industrial<br />

development. SA has several trade agreements in<br />

place as an export platform into global markets.<br />


09.<br />

SA has a number of world-class universities and colleges<br />

producing a skilled, talented and capable workforce. It<br />

boasts a diversified skills set, emerging talent, a large pool<br />

of prospective workers and government support for training<br />

and skills development.<br />

07.<br />

04.<br />

06.<br />

08.<br />





SA has a progressive Constitution and an independent judiciary. The<br />

country has a mature and accessible legal system, providing certainty<br />

and respect for the rule of law. It is ranked number one in Africa for the<br />

protection of investments and minority investors.<br />



SA is endowed with an abundance of natural resources. It is the leading producer<br />

of platinum-group metals (PGMs) globally. Numerous listed mining companies<br />

operate in SA, which also has world-renowned underground mining expertise.<br />




A massive governmental investment programme in infrastructure development<br />

has been under way for several years. SA has the largest air, ports and logistics<br />

networks in Africa, and is ranked number one in Africa in the World Bank’s<br />

Logistics Performance Index.<br />

10.<br />

SA offers a favourable cost of living, with a diversified cultural, cuisine and<br />

sports offering all year round and a world-renowned hospitality sector.<br />


OF LIFE<br />

Page | 2<br />

19<br />


The <strong>Eastern</strong> <strong>Cape</strong> sends<br />

citrus and cars to the world<br />

Lemons to China and bakkie-making kits to Kenya<br />

are new items in the export basket.<br />

The first consignment of <strong>Eastern</strong> <strong>Cape</strong> lemons is given a last inspection at the Maydon Wharf Fruit Terminal in<br />

Durban. Credit: Citrus Growers’ Association of Southern Africa<br />

Thursday 17 February <strong>2022</strong> was a red letter<br />

day for farmers in the Sundays River Valley<br />

and for South Africa’s citrus industry. On<br />

that day, a first shipment of lemons<br />

was loaded onto ships from the fruit terminal in<br />

Durban harbour en route to China.<br />

The long and complicated procedure of becoming<br />

compliant with health and import procedures started<br />

with work done by Citrus Research International (CRI)<br />

scientists in 2013. CRI and the National Department<br />

Agriculture, Land Reform and Rural Development<br />

hosted scientists from China in 2015 and negotiations<br />

have continued ever since.<br />

South African citrus growers spend R150-million<br />

annually on research which is then used by the DALRRD<br />

in their international negotiations. In this case, it paid off<br />

with a R325-million deal which has the potential to grow<br />

exponentially. South Africa hopes to eclipse Argentina and<br />

Chile as suppliers of lemons to China, targeting 25 000<br />

tons of lemons to that country by 2024.<br />

Exports of grapefruit, oranges and soft citrus to China<br />

totalled 130 000 tons in 2020. More good news from<br />

South-East Asia came in the form of a first consignment<br />

of citrus fruit being accepted into the Philippines.<br />

The citrus industry has been identified in the<br />

National Development Plan as a priority sector because it<br />

employs many people and it can improve the country’s<br />

balance of payments.<br />

According to the Sundays River Valley Citrus<br />

Producers Forum, black citrus farmers have increased<br />

the volumes of their exports by 40%, with a total of<br />

1.6-million cartons exported in 2020.<br />

However, exporting fruit of the <strong>Eastern</strong> <strong>Cape</strong> is<br />

not as straightforward as it might seem. All of South<br />

Africa’s ports have been struggling in recent times<br />

to keep up with demand. The province’s three<br />

ports are no exception, with some of the citrus<br />

fruit originating in the <strong>Eastern</strong> <strong>Cape</strong> having to be<br />

trucked to Durban or <strong>Cape</strong> Town, adding costs to<br />

the operation.<br />

The industry also battles with a shortage of<br />

shipping containers and high demand for cold-storage<br />

facilities. In April 2021, an MSC vessel was diverted to<br />

Gqeberha to offload 1 995 refrigerated containers just<br />

in time for the citrus-picking season. There is a global<br />

shortage of these specialised containers.<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


FOCUS<br />

Investors are investing and<br />

exports are growing<br />

The Trade, Investment and Innovation Unit of the ECDC is committed<br />

to promoting trade with and investments into the <strong>Eastern</strong> <strong>Cape</strong>.<br />

Entrepreneurs graduating from the Exporter<br />

Development Programme run by the ECDC<br />

in partnership with the Nelson Mandela Bay<br />

<strong>Business</strong> Chamber.<br />

The Trade, Investment and Innovation Unit<br />

markets the <strong>Eastern</strong> <strong>Cape</strong> to investors,<br />

supports existing investors, promotes<br />

exports and the ECDC as an implementing<br />

agent for development initiatives.<br />

Trade Promotion<br />

The Trade Promotion Unit provides opportunities to<br />

export-ready local businesses to penetrate local and<br />

foreign markets by means of non-financial support.<br />

Major export markets are Germany, Hong Kong, the<br />

US, China, Netherlands, Namibia and India.<br />

Once a company has been assessed as “exportready”,<br />

the unit facilitates annual trade missions,<br />

exhibitions and thematic workshops to offer<br />

networking platforms, trade/export knowledge and<br />

access to prospective clients in targeted countries.<br />

Investment<br />

The Investment Promotion Unit is the official<br />

investment promotion agency of the <strong>Eastern</strong> <strong>Cape</strong><br />

Province. The unit actively markets the province<br />

ECDC contact details<br />

Address: 1 Moore Street, Quigney, East London<br />

Tel: +27 43 704 5604<br />

Email: info@ecdc.co.za<br />

Website: www.ecdc.co.za<br />

and facilitates foreign and local direct investment.<br />

Services include lobbying for conducive policy, aftercare<br />

investor services, assistance to investors to access<br />

incentive schemes and local business networks,<br />

providing market information and facilitating access to<br />

greenfield and brownfield sites.<br />

Investors will find four universities and a number<br />

of TVET colleges which offer high-impact tertiary<br />

education. Set-up costs for new business are extremely<br />

competitive in terms of land and rental prices,<br />

construction costs and overall input costs. The <strong>Eastern</strong><br />

<strong>Cape</strong> has three ports, four airports and good road and<br />

rail links and offers easy access to domestic, SADC and<br />

global markets.<br />

Local, provincial and national government have<br />

a range of investment incentives available for new<br />

and existing operations. These incentives range from<br />

manufacturing rebates to preferential production<br />

factor costs.<br />

Innovation<br />

The Innovation sub-unit facilitates strategic<br />

domestic and international investment into sectordriven,<br />

catalytic innovation projects. The sub-unit<br />

facilitates investment and growth into new industry<br />

sectors introduced by the global shift to the Fourth<br />

Industrial Revolution.<br />

This is achieved through: support for catalytic<br />

and high-impact projects that can unlock eco nomic<br />

activity and promote local beneficiation and diversification;<br />

promotion of new products that encourage<br />

import substitution; growth of a pipeline that creates<br />

viable opportunities for the Development Finance and<br />

Properties Development units and for government<br />

and entrepreneurs. ■<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


The <strong>Eastern</strong> <strong>Cape</strong> is the second-largest citrusproducing<br />

province with the Sundays River Valley being<br />

the country’s single biggest production area. South<br />

Africa is the world’s second-largest exporter of citrus<br />

fruit. A national export record was achieved in 2020,<br />

with 146-million cartons of fresh citrus being exported<br />

(second only to Spain). Citrus yielded R3.4-billion in<br />

exports for the <strong>Eastern</strong> <strong>Cape</strong>.<br />

National citrus exports have grown by more than<br />

40% in the past decade to about R20-billion per year.<br />

The Citrus Growers’ Association of Southern Africa<br />

forecasts an increase from the current 150-million 15kg<br />

cartons to 200-million in the next five years, and this is<br />

projected to grow still further to 255-million by 2030.<br />

Automotive strength<br />

The list of winners at the annual awards function for<br />

Exporters <strong>Eastern</strong> <strong>Cape</strong> Exporter of the Year gives<br />

a good indication of the strength of the province’s<br />

automotive and automotive supply sectors.<br />

Exporters <strong>Eastern</strong> <strong>Cape</strong> is a non-profit organisation<br />

comprised of members from export companies, freight<br />

forwarders, financial institutions and shipping lines.<br />

The Nelson Mandela Bay <strong>Business</strong> Chamber’s<br />

Enterprise Development Programme has several<br />

parts: the Export Development Programme is the<br />

latest initiative.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation<br />

offers extensive support to exporters through its Trade<br />

Promotion Unit which facilitates annual trade missions,<br />

exhibitions and workshops to offer networking<br />

platforms, share knowledge and gain access to<br />

prospective clients.<br />

Acoustex Group, a Gqeberha-based automotive<br />

component manufacturer, won Exporter of the Year<br />

2021, in addition to the prize for best exporter in the<br />

medium enterprise category. The company created<br />

a new product line by acquiring a company and<br />

increased direct and indirect export turnover to 12<br />

countries by 24%.<br />

Among the products produced by Acoustex<br />

are sound deadeners, moulded insulation parts,<br />

carpets, parcel trays, tailgate covers and back-panel<br />

components. Other companies in the group make<br />

vehicle protection kits, vehicle protection seat covers<br />

and technical laminated fabrics for medical and<br />

domestic use. An interesting category prioritised<br />

environmental accreditation and environmental<br />

management. Merit awards were given in the SJM<br />

Flex Environmental Award to the Coega Development<br />

Corporation, Purem, Isuzu and Volkswagen Group<br />

South Africa.<br />

Volkswagen also won Best Exporter Original<br />

Equipment Manufacturer (OEM) with Isuzu<br />

being recognised for skills development and<br />

transformation initiatives.<br />

In recent years, each of the province’s OEMs has<br />

been steadily increasing export volumes, often breaking<br />

new records in successive years.<br />

In 2016 Mercedes-Benz recorded a new high<br />

for the month of April of 10 674 vehicles exported<br />

through the Port of East London. Over seven years<br />

to 2021, 650 000 C-Class models were built, of which<br />

more than 90% were exported. Volkswagen has sent<br />

326 000 Polos into the global market since 2018.<br />

An interesting addition to the export basket of<br />

Isuzu Motors is pick-up kits in knocked down (KD)<br />

format which are being sent to Isuzu East Africa, an<br />

affiliate in Kenya.<br />

Ford makes engines at its plant in Struandale,<br />

Gqeberha. The company wants to persuade national<br />

government to upgrade the railway line between<br />

Gauteng (where it makes its vehicles) and Gqeberha<br />

so that it can send parts up the line to Tshwane and<br />

export its vehicles out of the port. Fully 75% of the<br />

company’s product is exported to more than 100<br />

markets around the world. In September 2020, Ford<br />

led automotive exports with 6 995 vehicles. ■<br />

The Acoustex Group was Exporter of the Year in<br />

2021. Credit: Acoustex Group<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


FOCUS<br />

Property and infrastructure<br />

projects are promoting growth<br />

The Property Management and Infrastructure Unit of the ECDC<br />

provides the framework for businesses to operate.<br />

development, particularly in underdeveloped areas.<br />

The unit also facilitates strategic alliances regarding<br />

multi-tenanted residential complexes so as to<br />

maximise revenue and minimise costs.<br />

Credit: AIDCEC<br />

The ECDC manages a substantial property<br />

portfolio which enables it to rent out<br />

industrial and commercial premises<br />

at affordable rates or sell property to<br />

appropriate investors. The ECDC also functions as<br />

the manager of large infrastructure projects for the<br />

<strong>Eastern</strong> <strong>Cape</strong> Provincial Government.<br />

Property Management<br />

The Property Management Unit offers small-tomedium<br />

enterprises suitable premises at affordable<br />

rates through its diverse property portfolio. When it<br />

is in the interests of the corporation, the ECDC will<br />

consider selling its property to the investor.<br />

The ECDC is one of the biggest property<br />

owners in the province with residential, commercial,<br />

manufacturing and warehousing space. Large areas<br />

of vacant land zoned for residential and commercial<br />

purposes are also available.<br />

The following suite of services is offered:<br />

facilitate commercial and industrial activity; assist<br />

new investors to find properties; facilitate SMME<br />

Infrastructure (Strategic Projects)<br />

The ECDC has been entrusted by the <strong>Eastern</strong> <strong>Cape</strong><br />

government to manage some of its special functions and<br />

projects such as the integrated infrastructure programme<br />

and a number of large-scale development projects.<br />

This unit provides the following services:<br />

• Planning and monitoring<br />

• Facilities and property management<br />

• Industrial Parks Revitalisation Programme<br />

The primary objectives of this programme are to<br />

stimulate economic growth through supporting of<br />

SMMEs; to build SMME zones to accommodate SMME<br />

start-ups; make the parks an investment destination<br />

of choice; devise and introduce incentive schemes<br />

for potential investors, to allocate properties to<br />

sustainable businesses showing growth and intending<br />

to employing local labour.<br />

The parks in the programme are Dimbaza Industrial<br />

Park, Butterworth Industrial Park, Vulindlela Heights<br />

Industrial Park, Queendustria Park, Fort Jackson Park,<br />

Buffalo City Automotive Aftermarket Incubator (shown<br />

in the photograph).<br />

• Socio-economic and enterprise development<br />

This area of the unit’s work will be achieved through<br />

setting up and managing an SMME database, training<br />

and mentoring of SMMEs, placement and recruitment<br />

of local labour management, technical and nonaccredited<br />

training and intern placement and training. ■<br />

ECDC contact details<br />

Address: 1 Moore Street, Quigney, East London<br />

Tel: +27 43 704 5604<br />

Email: info@ecdc.co.za<br />

Website: www.ecdc.co.za<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>

The Chamber has built a relationship with<br />

the metro to ensure we create an enabling<br />

environment within which businesses<br />

thrive. To this end, the Chamber has created<br />

initiatives to actively attract investment into<br />

our city.<br />

Port expansion remains one of Chamber’s<br />

main focus areas, with Transnet still the<br />

main stakeholder keeping the future of<br />

our region and investors’ interests alive.<br />

Present lobby refers to the expansion of<br />

the Container Terminal, the widening and<br />

deepening of the Port itself. As simple as<br />

it is, those three activities will in fact make<br />

Buffalo City a more desirable location.<br />

executive@bkcob.co.za<br />

Bathandwa Njobe | communications@bkcob.co.za<br />

http://www.investbuffalocity.com/<br />

Widening the net also remains one of our<br />

guiding principles, and engaging with as<br />

many stakeholders as possible toward<br />

economic growth sits at the top of our<br />

agenda.<br />

As we engage we focus on the collaboration<br />

rather than the exception and recently<br />

a number of MOUs have been agreed<br />

in structuring those engagements. The<br />

Chamber’s own projects succeed because<br />

we invite participation, and the Call-2-Action<br />

with related waste recycling has introduced<br />

a new way of approaching the everlasting<br />

challenge of littering and waste collection.<br />

On the record, the Border-Kei Chamber of<br />

<strong>Business</strong> has and will continue to support<br />

the development of the N2 Wild Coast road<br />

development, with the strong belief that the<br />

new highway will usher in a new corridor<br />

of/for development - a feature this region is<br />

sorely lacking.<br />

Lizelle Maurice<br />

Lizelle Maurice is a child of the<br />

<strong>Eastern</strong> <strong>Cape</strong> Soil. She did everal tertiary<br />

courses through Coronation nursing<br />

College, Unisa, Damelin & UCT.<br />

She owns Park Place Boutique Guest<br />

House, which has won her National Tourism<br />

Department’s Lilizela Awards in the Emerging<br />

Tourism Entrepreneur of the Year category.<br />

She was appointed as the BKCOB’s<br />

Executive Director in 2021.




The Nelson Mandela Bay<br />

<strong>Business</strong> Nelson The Nelson Mandela Chamber Mandela Bay Bay<br />

A catalyst <strong>Business</strong> for economic growth Chamber<br />

in the region.<br />


The Nelson Mandela Bay<br />

<strong>Business</strong> The Nelson Chamber Mandela Bay<br />

A catalyst <strong>Business</strong> for economic growth Chamber<br />

in the region.<br />

A catalyst for economic growth in the region.<br />

The Nelson Mandela Bay <strong>Business</strong> Chamber is a not-for-profit An eighth task team, called Industry<br />

The A catalyst heartbeat for economic of<br />

organisation<br />

business growth<br />

representative<br />

success in the in<br />

of a<br />

the region.<br />

broad<br />

region. The Nelson Mandela Bay The Nelson <strong>Business</strong> Mandela Chamber Bay <strong>Business</strong> is a spectrum<br />

Chamber not-for-profit of businesses<br />

is a not-for-profit An eighth 4.0, begins task its team, work in called 2019 to Industry prepare<br />

organisation representative in Nelson Mandela<br />

organisation of representative a broad Bay. spectrum It is one of<br />

of a broad of the<br />

spectrum businesses largest business<br />

of businesses 4.0, begins local businesses its work for in the 2019 digital to prepare shift.<br />

With<br />

The Nelson<br />

over<br />

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Chamber<br />

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organisation than 700 businesses<br />

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of task teams to - Water Sub-group<br />

programme is aimed at empowering<br />

SMEs<br />

•<br />

facilitate SME<br />

- Electricity<br />

Task the Team ease of doing business. The task teams are: first and year.<br />

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to position<br />

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owners<br />

phase, the programme is funded by the <strong>Eastern</strong> Bukani,<br />

as emerging<br />

up to date<br />

the<br />

exporters.<br />

and informed<br />

•<br />

Managing Director<br />

<strong>Cape</strong><br />

• Transport Special<br />

Development<br />

Projects and Logistics Task<br />

Corporation<br />

Team Task Team<br />

on a wide variety of topics affecting<br />

(ECDC) and is geared towards of Black Excellence, said the<br />

• Metro Collaboration Task Team<br />

business<br />

developing sustainable SMEs through an enabling and creative enterprise programme<br />

Events in Nelson Mandela Bay.<br />

empowered her<br />

•<br />

development<br />

Enterprise Trade and Development Investment Task<br />

programme, and<br />

and Team<br />

also<br />

Exporter<br />

to facilitate<br />

Development Regular<br />

the effective combination as<br />

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at the Nelson functions Mandela offer<br />

with many<br />

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of<br />

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skills<br />

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development,<br />

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coaching<br />

Bay <strong>Business</strong><br />

and mentoring<br />

Chamber<br />

using<br />

Enterprise<br />

lessons learnt<br />

Development<br />

from critical<br />

<strong>Business</strong><br />

skills<br />

Chamber<br />

to successfully<br />

keep business<br />

run<br />

EASTERN previous CAPE<br />

Programme<br />

phases. BUSINESS<br />

was<br />

2019<br />

launched in 2014, to develop<br />

12<br />

the skills that<br />

her<br />

owners<br />

business.<br />

up to date and informed<br />


EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />

22<br />


“Entrepreneurship is a lonely journey and without the necessary<br />

support, it’s easy to give up. But through this programme, I had the<br />

privilege of networking with other entrepreneurs and we shared each<br />

other’s journeys and, in the process, created a solid networking platform.<br />

“The mentorship was the greatest source of inspiration because<br />

it has helped us to traverse the challenges of running a business and<br />

how to overcome them. From here onwards, I foresee exponential<br />

growth in my business and hopefully I will be able to create more<br />

employment for the Bay’s youth because currently, opportunities are<br />

quite few,” Bukani said.<br />

Events<br />

Events at the Nelson Mandela Bay <strong>Business</strong> Chamber keep business<br />

owners up to date and informed on a wide variety of topics affecting<br />

business in Nelson Mandela Bay. Regular networking functions offer<br />

business owners the chance to make new professional contacts. The<br />

<strong>Business</strong> Chamber’s flagship events – the Annual <strong>Business</strong> Chamber<br />

Golf Day, the Annual Ladies’ Breakfast and the Annual Banquet – are<br />

highlights on the Bay’s business and social calendar.<br />

Publications and marketing<br />

As another value-added service to members, the Nelson Mandela Bay<br />

<strong>Business</strong> Chamber provides members with a variety of publications<br />

across print and electronic platforms, including our quarterly printed<br />

member magazine, Infocom, and the printed annual <strong>Business</strong> Guide.<br />

Help desk<br />

In line with its vision of providing an enabling environment for<br />

business, the <strong>Business</strong> Chamber set up an Ease of Doing <strong>Business</strong> help<br />

desk in 2018. The help desk assists members through reducing red tape<br />

and engaging with the Nelson Mandela Bay Metro regarding these<br />

members’ obstacles in conducting business. The <strong>Business</strong> Chamber<br />

also engaged with the city’s leadership in 2018 towards the goal of<br />

establishing a One Stop Shop for existing and potential investors and<br />

will continue these engagements in this year (<strong>2022</strong>).<br />

<strong>Business</strong> Intelligence Desk<br />

The Chamber has an business intelligence desk which is aimed at<br />

providing business intelligence to different stakeholders. It helps with:<br />

• Access to business intelligence to support longer-term decisionmaking<br />

• Access to immediate intelligence to make day-to-day decisions<br />

• Dedicated research to develop and grow priority sectors<br />

• Project management<br />

The Feather Market Centre has been<br />

repurposed as a modern conference<br />

centre in the heart of Gqeberha.<br />

Credit: Nelson Mandela Bay Tourism<br />

Certificates of Origin<br />

A Certificate of Origin is a<br />

document which states the<br />

origin of goods being exported<br />

and this “origin” is a key<br />

requirement for applying tariffs<br />

and other important criteria. As<br />

an accredited provider of this<br />

service, the Nelson Mandela<br />

Bay <strong>Business</strong> Chamber signs<br />

Certificates of Origin and offers<br />

exporters the opportunity to<br />

certify electronically through the<br />

ECOO system.<br />

Corporate Social Investment<br />

Because the majority of our<br />

membership’s workforce is based<br />

in the city, the region of Nelson<br />

Mandela Bay is the direct beneficiary<br />

of their Corporate Social Investment<br />

programmes – including skills<br />

development initiatives, bursaries<br />

and scholarships. Many of our<br />

member companies significantly<br />

contribute to alleviating poverty<br />

and specifically unemployment in<br />

the region of Nelson Mandela Bay<br />

through various initiatives purposed<br />

to grow the local economy. ■<br />


Address: 200 Norvic Drive, Greenacres 6045 | Tel: +27 (0) 41 373 1122 | Fax: +27 (0) 41 373 1142<br />

Email: info@nmbbusinesschamber.co.za | Website: www.nmbbusinesschamber.co.za<br />

<strong>23</strong> EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


Overviews of the main economic<br />

sectors of the <strong>Eastern</strong> <strong>Cape</strong><br />

Agriculture and agro-processing 24<br />

Renewable energy 28<br />

Oceans economy 30<br />

Tourism and film 31<br />

Manufacturing general 32<br />

Manufacturing automotive 33<br />

Education 34<br />

Banking 35<br />

Development finance and SMME support 36

The film industry is a huge potential growth area for the <strong>Eastern</strong> <strong>Cape</strong>. The ECDC invested to support the filming<br />

of the popular TV series Survivor: Immunity Island, with the spectacular scenery of the Wild Coast as a backdrop.<br />

Season 8 was filmed in 2020 and Season 9 returned to the province for filming in January and February of <strong>2022</strong>.


Agriculture and agro-processing<br />

Managing water supplies is crucial for citrus growers.<br />

Citrus fruits have been cultivated in the Sundays River Valley for<br />

decades. Credit: Sundays River Citrus Company<br />

Looking for fruits and new cultivars that can stand up to<br />

periods of dry weather is one of the ways that the <strong>Eastern</strong><br />

<strong>Cape</strong>’s citrus farmers are tackling climate change.<br />

The Riverside Kat River Farm was purchased by the Lona<br />

Group in 2012 and has recently started expanding production of Orri<br />

mandarins, a fruit that was developed in Israel. The late-ripening tree is<br />

hardy and resistant to several diseases. The Lona Group has a national<br />

footprint and produces approximately 14 000 tons of citrus annually.<br />

The Kat River is a tributary of the Great Fish River.<br />

The Sundays River Valley is South Africa’s biggest citrus producer<br />

from a defined area. The valley’s harvest in 2021 was 30.5-million<br />

cartons and this is anticipated to increase to 40-million by 2026. The<br />

province as a whole is the country’s second-largest cultivator of citrus.<br />

The Sundays River Valley irrigation scheme was started in<br />

1920s. Darlington Dam (also known as Lake Mentz) was built on<br />

the river and a series of canals were constructed to supply water<br />

to farms from Kirkwood at the upper end of the valley to Addo.<br />

More than 4 000 people are employed in citrus in the Sundays<br />

River area, with that figure more than doubling in the picking and<br />

packing season.<br />

Further west, there is about 6 600ha of land under citrus in the<br />

Gamtoos Valley, which exports about nine-million cartons every year.<br />

More than 100 farmers are dependent on the Kouga Dam for water in<br />

this region, but the dam has recorded consistently low levels in recent<br />

years and has to supply the towns of Hankey and Patensie and the<br />

Nelson Mandela Bay metro.<br />


African Port Logistics and<br />

Infrastructure is investing<br />

R300-million at the Coega SEZ.<br />

The provincial government<br />

put in place various relief<br />

measures for farmers during<br />

the Covid-19 outbreak. A sum<br />

of R417-million was invested<br />

in 107 agricultural initiatives in<br />

various value chains, including<br />

production in grain, red meat,<br />

citrus fruit, macadamia, poultry<br />

and cannabis. Small-scale farmers<br />

received infrastructure support to<br />

the value of R160.5-million.<br />

Getting small-scale farmers<br />

connected to agro-processing<br />

value chains is a major goal for<br />

agricultural policy-makers. This<br />

lies behind the creation of the<br />

Wild Coast Special Economic Zone<br />

(SEZ) near Mthatha. The 5 000ha<br />

Ncora Irrigation Scheme is seen<br />

as a model for the SEZ, which has<br />

attracted interest from AngloGold<br />

Ashanti and Exxaro.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Department<br />

of Rural Development and Agrarian<br />

Reform (DRDAR) has several<br />

programmes to support smallscale<br />

farmers. The <strong>Eastern</strong> <strong>Cape</strong><br />

Development Corporation (ECDC)<br />

supports agro-processing through<br />

loans and equity arrangements:<br />

projects that have received financial<br />

support include aquaculture, the<br />

production of dietary fibre from<br />

pineapples and bamboo products.<br />

The rich natural grasslands<br />

of the <strong>Eastern</strong> <strong>Cape</strong> have the<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Coega Dairy is one of the <strong>Eastern</strong> <strong>Cape</strong>’s largest agro-processing facilities. Credit: Coega Development Corporation<br />

potential to produce high-value organic meat, a product that is<br />

increasingly popular in health-conscious international markets.<br />

There are about 70 000 people employed on commercial farms<br />

across the <strong>Eastern</strong> <strong>Cape</strong>, with a further 436 000 people dependent on<br />

smaller farms, mostly in the east.<br />

The Magwa-Majola Tea Estate is making some progress<br />

towards rehabilitation, with the support of the provincial<br />

government. Bulk sales for 2021 generated R18.5-million and<br />

plans are underway to commercialise and diversify production<br />

at the estate to improve sustainability.<br />

The National Woolgrowers’ Association of SA (NWGA), with a<br />

membership base of 4 500 commercial and 20 000 communal<br />

members, is based in Gqeberha, as is <strong>Cape</strong> Wool SA.<br />

The <strong>Eastern</strong> <strong>Cape</strong> provides approximately a quarter of<br />

South Africa’s milk and the industry is further expanding as<br />

producers are favouring high-rainfall coastal areas such as the<br />

Tsitsikamma region.<br />

South Africa produces about 54% of the world’s mohair and<br />

Gqeberha is the mohair capital of the world. Farms around the small<br />

towns that dot the open plains south of Graaff-Reinet, Aberdeen,<br />

Somerset East, Jansenville and Willowmore, routinely produce<br />

nearly half of South Africa’s production. The office of the South<br />

African Mohair Growers Association (SAMGA) is in Jansenville.<br />

Grootfontein College of Agriculture, the only tertiary educational<br />

institute in the country to offer a programme aimed at Angora<br />

goat farming and mohair production, is in Middelburg. Processing<br />

of mohair takes place in Kariega, Gqeberha and Ntabozuko (Berlin)<br />

outside East London. The mohair value chain includes brokers,<br />

buyers, processors, spinners, manufacturers and retailers.<br />

The SAMIL company has divisions all along the value chain. The<br />

Stucken group controls Mohair Spinners South Africa, Hinterveld (a<br />

mill) and the processing company Gubb & Inggs in Kariega.<br />

Ouma Rusks are still made in Molteno where they were invented.<br />

Cabdbury Chocolates operates<br />

a big site across the lake from<br />

the Nelson Mandela Stadium in<br />

Gqeberha and Nestlé makes 11<br />

kinds of chocolate at its factory<br />

in East London. The Sasko mill in<br />

Gqeberha is the province’s only<br />

big milling plant.<br />

Deciduous fruits such as<br />

apples, pears and apricots<br />

are grown primarily in the<br />

Langkloof Valley. Another crop<br />

in which the <strong>Eastern</strong> <strong>Cape</strong><br />

leads national production<br />

is chicory. The province’s<br />

pineapple crop is grown in<br />

the same part of the Sunshine<br />

Coast that produces chicory.<br />

The <strong>Eastern</strong> <strong>Cape</strong> holds<br />

21% of the country’s cattle<br />

(about 3.2-million), 28% of<br />

its sheep (seven-million) and<br />

46% of its goats, making it the<br />

largest livestock province by a<br />

large margin.<br />

Coca-Cola Sabco and<br />

SAB’s Ibhayi brewery are the<br />

major beverage manufacturers<br />

in Gqeberha and Distell has<br />

a bottling plant in the city.<br />

Sovereign Foods in Kariega is<br />

the country’s fourth-biggest<br />

producer of poultry. ■<br />


Citrus Growers’ Association of Southern Africa: www.cga.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency (ECRDA): www.ecrda.co.za<br />

Milk Producers Organisation: www.mpo.co.za<br />

South African Mohair Growers Association (SAMGA): www.angoras.co.za<br />

27 EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>

FOCUS<br />

The Responsible<br />

Mohair Standard<br />

has restored trust<br />

South African mohair is once again<br />

popular with global fashion brands.<br />

The mohair industry has embraced the Responsible<br />

Mohair Standard as we are all aware that the consumer<br />

of today is rightfully far more conscious, not only of<br />

the impact of their purchases on the environment, but<br />

also the impact their purchases have on the people<br />

producing the goods.<br />

The Responsible Mohair Standard is all-inclusive and is very<br />

specific as to its requirements in respect of the environment<br />

and welfare of the animals and all individuals employed in the<br />

production of mohair products.<br />

There is no doubt that having Samil’s manufacturing operations<br />

certified under the Responsible Mohair Standard has opened new<br />

opportunities for trade throughout the world.<br />

However, the dynamic team at Samil feels compelled to ensure<br />

that not just the Samil manufacturing operations but all mohair<br />

operations owned or run in partnership with Samil, must also be<br />

RMS certified. Samil therefore embarked on a concerted drive to<br />

have all the Angora goat farms which are either owned or run in<br />

partnership with Samil Farming were also certified as RMS.<br />

This was no mean task as there are more than 30 farming<br />

operations in the Samil Farming portfolio in and around the Karoo<br />

region. However, the Samil Farming Manager, Andries Coetsee, and<br />

his very able assistant, Nienke Scholtz, embraced the challenge and<br />

Samil is proud to announce that, as of the end of August 2021, all<br />

Samil mohair operations are proudly RMS certified.<br />

Products stored and handled<br />

include fish, poultry, meat,<br />

fruit, vegetables and dairy.<br />

Through the determined efforts of Mohair South Africa, in<br />

conjunction with The Textile Exchange, in ensuring the development<br />

of the Responsible Mohair Standard, the mohair industry has been<br />

able to regain the trust, not only of the big fashion brands, but also<br />

6 Cold storage facilities<br />

of the world.<br />

This can in clearly SA & be Namibia<br />

seen in the record mohair prices currently being<br />

achieved as brands the world over are scrambling to reintroduce RMScertified<br />

mohair articles into their product ranges.<br />

The knock-on effect is that jobs that had previously been in jeopardy<br />

are now secured and, due to the new-found appetite for mohair, more<br />

jobs have been created.<br />

the last 50 years we’ve become Africa’s leading cold and Namibia.<br />

The benefits of RMS certification<br />

operation by being just as committed to your product We have multiple quality accreditations and are containerfriendly<br />

After the PETA exposé in 2018, the South African mohair industry<br />

are.<br />

became a pariah and many of the top fashion brands vowed to no<br />

with de - stuffing and palletisation offerings. We also<br />

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<br />

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<br />

se.<br />

logistics solutions.<br />

two quayside and four inland operations offer over Put your goods in our care: visit www.ccslogistics.co.za,<br />

metric tons of multi-temperature warehousing in SA call +27 87 350 7350 or email customerservice@ccslogistics.co.za<br />

68 SOUTH | www.opportunityonline.co.za<br />

AFRICAN BUSINESS <strong>2022</strong><br />

42<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong> 28<br />

S FA3.indd 1

2021/10/20 16:49:06<br />

Sharing Africa’s beauty with the world<br />

SAMIL produces and processes mohair, the noble fibre.<br />

South African Mohair Industries Limited (SAMIL) is the link<br />

between mohair producers, processors and consumers. Our<br />

vision is to be an innovative South African company specialising<br />

in the production and processing of natural fibres, as well as<br />

speciality spun yarns.<br />

Mohair, the fleece of the Angora goat, is:<br />

• the noble fibre, known as the diamond fibre<br />

• lustrous, resilient and offers exceptional colour reflection<br />

• one of the world’s most beautiful sustainable natural fibres<br />

• a symbol of luxury and exclusivity.<br />

African Expressions<br />

Our local brand African Expressions was born of the desire to share Africa’s<br />

natural beauty with the rest of the world. Through our unique range of<br />

yarns, we express the essence of that which makes Africa magical. Our<br />

network of local farmers, who farm in optimal Angora goat conditions,<br />

breed stock which bear excellent fibres. This ensures that our yarns are<br />

naturally soft to the touch, easy to knit and luxuriously versatile.<br />

SAMIL divisions<br />

Farming: SAMIL Farming was established with the primary objective of<br />

stabilising and possibly increasing mohair supply to the processors.<br />

Combing: SAMIL Natural Fibres Combing is in Berlin, outside East London<br />

in the <strong>Eastern</strong> <strong>Cape</strong>. As mohair processing has decreased in other parts<br />

of the world, SAMIL Combing has become one of the world’s leading<br />

processors. Unlike many processing plants SAMIL Combing focusses on<br />

and is committed to processing only mohair.<br />

Trading: Through a strong support base of affiliated companies, partners<br />

and agents, SAMIL has established strong connections throughout the<br />

world for the purchase and sale of raw materials and finished goods. South<br />

Africa processes in excess of 80% of the world’s mohair production. The<br />

advantage of having both top-making and spinning operations in South<br />

Africa, as well as access to raw material produced within the company,<br />

is that SAMIL is able to offer lots guaranteed from origin, a rare luxury in<br />

today’s business environment.<br />

Spinning and dyeing: SAMIL Spinning is a global manufacturer of<br />

outstanding quality mohair yarns, producing a wide and exclusive range of<br />

mohair and mohair blended fancy and fine-spun yarns in both fine-count<br />

and coarser varieties. We are internationally renowned for our superior<br />

product range and cater for the hand knitting, machine knitting, weaving,<br />

hosiery and decor markets. Although we specialise in pure mohair, we also<br />

blend mohair with a range of other natural and man-made fibres. Yarns<br />

can be custom dyed to any shade at SAMIL’s state-of-the-art dye house.<br />

Genetic research: The latest venture under the SAMIL umbrella is the<br />

research project called ANGELA which aims to enhance Angora goats and<br />

the mohair kidding rates to the improvement of the different hair qualities.<br />

The project will make available its results to all in the mohair community.<br />

Contact details<br />

Tel: +27 41 486 2430 | Email: yarns@samil.co.za | Website: www.samil.co.za


Renewable energy<br />

Investment in solar and wind projects is ramping up.<br />

Credit: BTE Renewables<br />

In addition to leading the way in attracting wind power projects,<br />

the <strong>Eastern</strong> <strong>Cape</strong> is making good progress in trying to ensure that<br />

the community trusts that arise from these and other renewable<br />

energy projects actively benefit communities.<br />

According to the South African Wind Energy Association (SAWEA),<br />

16 wind projects were secured for the province in the course of the<br />

first four windows of bidding of the Renewable Energy Independent<br />

Power Producer Procurement Programme (REIPPPP). As of the middle<br />

of 2020, the value of the projects was estimated at nearly R20-billion<br />

with R4.6-billion committed to communities living and working near<br />

wind projects.<br />

From 2017, SAWEA started running workshops for community<br />

trusts, municipal officials responsible for economic development, the<br />

national IPP office and wind farm representatives. Of the R4.6-billion<br />

mentioned above, some 42% was allocated to skills development and<br />

educational programmes. Among the skills identified as needing to<br />

be enhanced were governance, fiduciary oversight and the ability to<br />

critically assess development projects.<br />

As a coastal province, the <strong>Eastern</strong> <strong>Cape</strong> has obvious advantages,<br />

but the availability of wind is not the only factor. As SAWEA notes,<br />

“Wind farms are constructed according to the quality of the wind<br />

resource and ease of connection to the national grid.”<br />

Both Cookhouse and Stormberg have been listed as Energy<br />

Development Zones which means that they are one of the planned<br />

national transmission corridors, allowing for direct access to the grid<br />

for wind farms in these areas.<br />

South Africa’s National Development Plan (NDP) requires 20 000MW<br />

of renewable energy by 2030 and wind power technology, together with<br />

solar photovoltaic, are the two primary methods that are being deployed<br />

in pursuit of that target.<br />

More than half the wind farm projects so far approved have been<br />

allocated to the province. The Kouga area west of Jeffreys Bay and<br />

the Cookhouse/Bedford area about 95km north-west of Makhanda<br />

(Grahamstown) represent two wind power hubs, with a collective<br />

capacity of 1 185MW.<br />


Zero-carbon methane is to be<br />

made at Humansdorp.<br />

In May 2021 it was announced<br />

that the 1<strong>23</strong>MW Golden Valley Wind<br />

Energy Facility near Cookhouse<br />

south of Cradock in the Sarah<br />

Baartman District Municipality had<br />

reached commercial operations.<br />

This means that the energy<br />

requirements of about 120 000<br />

households will be met.<br />

Just a few kilometres east of<br />

Cookhouse there are a further<br />

two wind farms, both awarded<br />

to Enel Green Power (EGP) in the<br />

fourth round of the REIPPPP. The<br />

Nxuba and Nojoli wind farms will<br />

respectively produce 140MW and<br />

88MW and represent what might<br />

be called Enel’s <strong>Eastern</strong> <strong>Cape</strong><br />

mountain area investment. On the<br />

coast they have built wind farms at<br />

Oyster Bay and Gibson Bay, west<br />

of the 138MW Jeffreys Bay Wind<br />

Farm, which is run by Globeleq<br />

and was one of the country’s first<br />

big wind energy facilities.<br />

The Provincial Government of<br />

the <strong>Eastern</strong> <strong>Cape</strong> is collaborating<br />

with the National Department of<br />

Employment and Labour to train<br />

young people in digital technology<br />

and solar energy. The Youth Digital<br />

eXponential (YDx) Project is<br />

funded by the Unemployment<br />

Insurance Fund and is to be<br />

implemented by the South African<br />

Digital Content Organisation. As of<br />

February <strong>2022</strong>, 500 young people<br />

were participating.<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />



Green power<br />

Humansdorp could become the site of a plant that produces<br />

e-methanol from green hydrogen and gas created from locallysourced<br />

biomass.<br />

Three companies have signed an agreement to do a feasibility<br />

study: ENERTRAG South Africa, Earth & Wire and 24Solutions. The<br />

abundant wind and solar resources of the area would create the<br />

renewable energy to form the green hydrogen. Green hydrogen<br />

qualifies as such if the process to make it used only renewables. All<br />

of the electricity produced by renewable energy facilities would be<br />

used by the electrolyser (for the green hydrogen), desalination and<br />

e-methanol plants.<br />

ENERTRAG’s German parent has considerable experience in<br />

innovation and is working with Sasol on aviation fuel alternatives. In<br />

2011 it opened the world’s first hybrid wind to hydrogen power plant.<br />

Earth & Wire has signed agreements across South Africa with<br />

landowners on 400 000ha of land which the company intends using<br />

to build renewable energy facilities. The short-term focus is on wind<br />

and solar projects close to completion in Mpumalanga, Gauteng and<br />

the <strong>Eastern</strong> <strong>Cape</strong>.<br />

Green hydrogen is very much the flavour of the month, in the<br />

aftermath of the negotiations at the COP26 conference.<br />

The Coega SEZ has been chosen by Hive Hydrogen SA as the<br />

location of a Green Hydrogen project which will be fully operational<br />

by 2026. The project will see a green ammonia plant constructed,<br />

valued at approximately $4.6-billion. The main development<br />

partners are BuiltAfrica and Hive Energy of the UK who have formed<br />

Hive Hydrogen SA but various<br />

other partners are involved.<br />

Local salt manufacturer<br />

Cerebos will supply desalinated<br />

water to the project.<br />

The hydrogen will be<br />

separated from the oxygen by<br />

an electrolyser, and hydrogen<br />

and nitrogen will be combined<br />

to form green ammonia<br />

which will be stored in liquid<br />

form at a tank at the Port of<br />

Ngqura, from where it can be<br />

exported around the world.<br />

Gas company Afrox is another<br />

partner, although there is no<br />

intention currently to convert<br />

the oxygen to pharmaceuticalgrade<br />

product as that market is<br />

currently well served. The plant<br />

will have its own dedicated<br />

power supply.<br />

Another renewable energy<br />

investor in the Coega SEZ is<br />

Seraphim Solar Cell Manufacturing<br />

that is investing R362-million to<br />

increase the local content of its<br />

solar value chain. ■<br />

The SAB Ibhayi brewery in Gqeberha is getting power from the sun. Credit: SOLA


Oceans economy<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s long coastline has enormous potential.<br />

The Coega Aquaculture Development Zone (ADZ) was<br />

launched in 2020. It is intended to be a catalyst for unlocking<br />

the <strong>Eastern</strong> <strong>Cape</strong>’s aquaculture value chain and is<br />

expected to be an enabler for job creation.<br />

The 100-hectare ADZ is located in Zone 10 of the Coega<br />

Special Economic Zone (Coega SEZ) and the R206-million<br />

first phase created 500 construction jobs. The <strong>Eastern</strong> <strong>Cape</strong><br />

Development Corporation (ECDC) expects it to create a further<br />

5 600 operational jobs.<br />

The Oceans Economy is seen as a previously untapped<br />

resource where enormous progress can be made in areas such<br />

as maritime repair and maintenance (via the province’s three<br />

ports), support for oil and gas exploration and paying more<br />

attention to fishing and aquaculture. An Oceans Economy<br />

Master Plan has been created and so far, 73 co-operatives have<br />

been awarded 15-year licences by the National Department of<br />

Forestry, Fisheries and the Environment (DFFE).<br />

Several cluster development programmes aim to develop<br />

specific industries by bringing together expertise and logistical<br />

support. Marine manufacturing is the focus of the Mandela Bay<br />

Composites Cluster (MBCC). With funding from the <strong>Eastern</strong> <strong>Cape</strong><br />

Department of Economic Development, Environmental Affairs and<br />

Tourism (DEDEAT) and the National Department of Trade, Industry and<br />

Competition (dtic), the MBCC targets skills development, innovation in<br />

the field of composites and improving the value chain.<br />

Although both the Coega SEZ and the East London Industrial<br />

Development Zone (ELIDZ) have programmes to attract companies<br />

in a wide range of sectors (Coega has 14 distinct business zones),<br />

developments in the Oceans Economy and the oil and gas sector are<br />

showing the greatest promise.<br />

Ports are vital to the functioning of the Oceans Economy. Transnet has<br />

budgeted R1-billion to establish boat-building and ship-repair facilities at<br />

the Port of East London as well as a Maritime Training College as part of<br />

Operation Phakisa, the national programme to fast-track key projects.<br />

Transnet has appointed the Coega Development Corporation (CDC)<br />

as the implementing agent for the creation of a R3.4-billion manganese<br />


Coega SEZ: www.coega.co.za<br />

East London IDZ: www.elidz.co.za<br />

Ocean Sciences Campus (NMU): www.oceansciences.mandela.ac.za<br />

South African International Maritime Institute: www.saimi.co.za<br />


The Ocean Sciences Campus<br />

is Nelson Mandela<br />

University’s newest.<br />

The Coega Aquaculture Development<br />

Zone. Credit: CDC<br />

export terminal at the Port of Ngqura.<br />

This follows a decision by Transnet to<br />

move the fuel tanks and manganese<br />

ore away from the Port of Gqeberha,<br />

which could unlock enormous value<br />

in terms of creating a waterfront<br />

attractive to tourists. This area could<br />

potentially link with the city’s major<br />

greenbelt, otherwise known as the<br />

Baakens River Valley.<br />

The South Africa International<br />

Maritime Institute (SAIMI) aims to<br />

develop the contribution of the<br />

maritime sector to the economy by<br />

coordinating education, training and<br />

research with partner institutions. The<br />

Ocean Sciences Campus is Nelson<br />

Mandela University’s newest campus<br />

and is a hub for transdisciplinary,<br />

post-graduate ocean sciences<br />

research, teaching, innovation and<br />

engagement. ■<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Tourism and film<br />

The Covid-19 fourth wave badly dented hospitality’s recovery.<br />



A major golf tournament<br />

attracted a host of sponsors.<br />

The final shot. Dean Burmester won the South African PGA<br />

Championship at St Francis Links. Credit: Sandy Coffey<br />

The exciting win by Dean Burmester in the South African<br />

PGA Championship at St Francis Links should have been<br />

a shot in the arm for <strong>Eastern</strong> <strong>Cape</strong> tourism leading into<br />

the high summer of 2020.<br />

Instead, it was shots in the arms for Covid patients as the fourth<br />

wave descended on South Africa within days of the highly successful<br />

event, condemning many tourist establishments to more months of<br />

little or no income. Domestic tourism continued but the UK’s decision<br />

to put South Africa on a “no-fly” list had drastic consequences.<br />

Small crowds were allowed to watch the golf tournament, which<br />

was presented by the PGA of South Africa in association with St Francis<br />

Links and the <strong>Eastern</strong> <strong>Cape</strong> Parks and Tourism Agency (ECPTA). Other<br />

sponsors and supporters included Dirk Ellis Motors, <strong>Cape</strong> St Francis<br />

Resorts, the Sunshine Tour, Allesverloren Wines and SPAR. This indicated<br />

how important golf tourism might be in the provincial mix.<br />

Infrastructure upgrades are ongoing at several tourism sites run<br />

by the ECPTA: the National Department of Tourism is funding the<br />

Interpretation Centre at Bavianskloof (a World Heritage Site) in the<br />

amount of R42-million; a further R9-million will be spent on a hiking<br />

trail; the National Department of Forestry, Fisheries and the Environment<br />

(DFFE) will spend R45-million on the chalets at <strong>Cape</strong> Morgan. Work<br />

has been completed on the Silaka Nature reserve in Port St Johns at<br />

a cost of R11-million, another DFFE project. The ECPTA is tracking and<br />

profiling tourists’ needs and their perception about the province. The<br />


<strong>Eastern</strong> <strong>Cape</strong> Parks and Tourism Agency: www.visiteasterncape.co.za<br />

Mandela Bay Development Agency: www.mbda.co.za<br />

film industry has great potential<br />

for growth. The ECDC invested to<br />

support the filming on the Wild<br />

Coast of the popular TV series<br />

Survivor: Immunity Island, which<br />

brought excellent returns in terms<br />

of finance and exposure.<br />

The interior of the <strong>Eastern</strong><br />

<strong>Cape</strong> is home to several highend<br />

private game reserves such<br />

as Shamwari, Mount Camdeboo<br />

and Kariega Game Reserve. Some<br />

luxury game lodges are located<br />

within national parks, such as<br />

the Gorah Elephant Camp, which<br />

is run by Hunter Hotels and<br />

forms part of the Addo Elephant<br />

National Park.<br />

Premier Hotels has two<br />

hotels in East London, the<br />

Mpanga Private Game Reserve<br />

and it manages the East London<br />

International Convention<br />

Centre. The Radisson Blu in Port<br />

Elizabeth offers five-star luxury<br />

overlooking Pollock Beach.<br />

Tsogo Sun has five <strong>Eastern</strong><br />

<strong>Cape</strong> properties. The Courtyard<br />

Hotel, City Lodge Hotel and<br />

Road Lodge are close to one<br />

another on Port Elizabeth’s<br />

beachfront and allow the group<br />

to cater to three distinct markets<br />

with a total of 442 rooms. East<br />

London has a Road Lodge. Sun<br />

International runs the Wild Coast<br />

Sun and the five-star Boardwalk<br />

Casino and Entertainment World<br />

in Port Elizabeth. ■<br />

33<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


Manufacturing general<br />

Aspen is making vaccines for Africa.<br />


Montego Pet Nutrition is<br />

Graaff-Reinet’s biggest<br />

employer.<br />

The Aspen Pharmacare facility in Gqeberha will make<br />

hundreds of millions of doses of the Johnson & Johnson<br />

Covid-19 vaccine for South Africa and Africa.<br />

A consortium of development finance organisations,<br />

including the World Bank’s International Finance Corporation, made<br />

€600-million in financing available to the South African company in the<br />

course of 2021 to assist it in ramping up production of the vaccines. By<br />

<strong>2022</strong>, the facility should be making about 500-million doses annually.<br />

Aspen’s earlier investment of R3.3-billion to scale up production for<br />

vaccines for Africa created 1 775 jobs, of which 52% went to women.<br />

The provincial government aims for more diversification in<br />

manufacturing and is targeting sectors where the province already has a<br />

competitive advantage (such as wool and mohair), are labour intensive,<br />

will have a broad impact and have low barriers for SMME entry.<br />

A fibre-processing plant to spin wool and mohair fibre into yarn is<br />

planned, as is a textile mill to focus on cotton, poly-cotton and acrylic<br />

fabric. The latter is planned for the IDZ in East London, which is already<br />

home to Da Gama Textiles, whose factory has the capacity to produce<br />

45-million square metres of fabric per annum. Da Gama makes the popular<br />

and distinctive shweshwe fabric, using its own unique printing process.<br />

Several cluster development programmes aim to develop specific<br />

industries by bringing together expertise and logistical support. A Non-<br />

Automotive Manufacturing (NAM) Cluster concentrates on training, supplier<br />

development, energy efficiencies and developing new markets. Swedish<br />

concern Fagerhult Group has entered the South African market via an<br />

acquisition of the factory of Port Elizabeth’s Lighting Innovations, and the<br />


Coega Development Corporation: www.coega.co.za<br />

East London Industrial Development Zone: www.elidz.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />

two subsidiary companies Arrow<br />

Lighting and Beacon Lighting.<br />

Montego Pet Nutrition,<br />

Graaff-Reinet’s biggest private<br />

employer, has recently installed<br />

an impressive array of solar panels<br />

on the roof of its facility (pictured).<br />

More than 200 staff members<br />

work in the Karoo town’s factory.<br />

First National Battery, a Metair<br />

Group company, has one factory<br />

at Fort Jackson and two factories<br />

in East London. Mpact runs two<br />

corrugated packaging convertor<br />

facilities in the <strong>Eastern</strong> <strong>Cape</strong>, at<br />

Deal Party in Port Elizabeth and<br />

Gately Township, East London.<br />

Bodene, a subsidiary of Fresenius<br />

Kabi, makes intravenous medicine<br />

in Port Elizabeth. East London<br />

hosts Johnson & Johnson’s<br />

finance, operations and research<br />

and development divisions.<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s two<br />

Special Economic Zones play<br />

an important role in attracting<br />

investors to the province.<br />

Located in East London near of<br />

the port and at the deepwater<br />

port of Ngqura 20km north of<br />

Port Elizabeth, the East London<br />

Industrial Development Zone<br />

(ELIDZ) and the Coega SEZ<br />

provide the infrastructure that<br />

will allow the region to expand<br />

and diversify its economy. ■<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Manufacturing automotive<br />

Volkswagen has celebrated 70 years of making cars in South Africa.<br />



A rail corridor to Gauteng<br />

would boost the<br />

automotive sector.<br />

Volkswagen celebrated 70 years of making cars in South<br />

Africa in 2021. In August of that year, the Kariega plant of<br />

Volkswagen started exporting the newest version of the<br />

Polo vehicle.<br />

In 2019, a new production record was achieved when 161 954 vehicles<br />

were made, contributing materially to the overall total of four-million that<br />

was achieved for the brand towards the end of 2020. The 520 963m²<br />

Kariega facility is one of four plants worldwide that makes right-hand drive<br />

Polos but the only one in the world that makes the Polo GTI.<br />

Ford Motor Company makes engines (pictured) for the Ford Ranger<br />

pickup and Everest SUV at its Struandale plant and it has committed to<br />

invest R600-million for modernising and growing its local operations.<br />

This is a part of a bigger investment which includes the vehicle<br />

assembly operations in Gauteng.<br />

Ford has initiated discussions about the feasibility of developing a<br />

sophisticated rail corridor between Gauteng and the <strong>Eastern</strong> <strong>Cape</strong>. The<br />

company wants to send parts to Pretoria and export cars through the<br />

Port of Gqeberha.<br />

The Coega Special Economic Zone (SEZ) is host to the first phase<br />

of a major investment by Chinese automotive manufacturer Beijing<br />

International Automotive Corporation (BAIC). The total investment<br />

by BAIC will total R11-billion and significantly add to the province’s<br />

already strong reputation for excellence in the automotive sector. Both<br />


Automotive Industry Development Centre: www.aidc.co.za<br />

Coega Development Corporation: www.coega.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />

Coega SEZ and the East London<br />

Industrial Development Zone<br />

(ELIDZ) have areas dedicated<br />

to automotive and automotive<br />

components manufacture.<br />

Mercedes-Benz South Africa’s<br />

new C-Class project (W206) has<br />

sparked several other related<br />

investments, which collectively<br />

will create 2 078 new jobs<br />

over two years. Most of this is<br />

happening in the ELIDZ, which<br />

has made a commitment to<br />

localising the 2nd- and 3rd-tier<br />

automotive components that are<br />

not currently in South Africa.<br />

The production of the<br />

C-Class vehicle is a technological<br />

marvel and the plant regularly<br />

wins international awards for<br />

quality. The installation of a new<br />

sequencing centre, to be installed<br />

by Automotive Logistics Solutions<br />

(an AHI company), will make the<br />

assembly line even more efficient.<br />

Home-grown manufacturer of<br />

powertrain and catalytic converter<br />

assembly systems, Jendamark,<br />

exports to 18 countries.<br />

Continental Tyre South Africa<br />

is producing a 19-inch tyre for<br />

the first time at its New Brighton<br />

facility in Port Elizabeth. Isuzu SA<br />

has completed its consolidation<br />

project, with truck and bakkie<br />

manufacturing now taking<br />

place at its new headquarters in<br />

Struandale, Port Elizabeth. ■<br />

35 EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


Education and training<br />

Nelson Mandela University has a new Medical School.<br />


A science centre has been<br />

built at Cofimvaba.<br />

Nelson Mandela University’s Missionvale Campus is now<br />

registered to offer the MBChB (Bachelor of Medicine<br />

and Bachelor of Surgery) qualification.<br />

This brings to 10 the number of medical schools in South<br />

Africa and is the province’s second, with Walter Sisulu University being<br />

the other academic medical facility in the province. The registration by<br />

the South African Qualifications Authority (SAQA) was a lengthy process,<br />

covering contracts and agreements with various other bodies, the<br />

curriculum, infrastructure, equipment and staff requirements.<br />

Two new cerebral palsy centres have been established, at the Nelson<br />

Mandela Academic Hospital and the Cecilia Makiwane Hospital.<br />

A R50-million science centre, named after Albertina Nontsikelelo Sisulu,<br />

has been built in Cofimvaba. The centre will enhance the teaching of maths,<br />

science and technology and further widen career choices of students.<br />

The national Accelerated School Infrastructure Delivery Initiative<br />

(ASIDI) allocated 298 schools to the province and, as of February <strong>2022</strong>,<br />

168 schools (56%) had been completed.<br />

St George’s Preparatory School, founded in 1936 and located<br />

opposite the famous cricket ground in Gqeberha, has become the latest<br />

addition to the private Curro group of schools. The acquisition doubles<br />

Curro’s presence in the province, with the centrally-based preparatory<br />

school joining Westbrook Curro, which is located in the Westbrook Estate<br />

off the old <strong>Cape</strong> Road in the city’s western suburbs.<br />

The <strong>Eastern</strong> <strong>Cape</strong> has eight Technical and Vocational Education<br />

Training (TVET) colleges, most of which have more than one campus:<br />

Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata<br />

Dalinyebo, Ikhala and Eastcape Midlands College. An amount of R569-<br />

million will be spent on building four new TVET campuses to expand<br />


<strong>Eastern</strong> <strong>Cape</strong> Department of Education: www.ecdoe.gov.za<br />

Technology Innovation Agency: www.tia.org.za<br />

the accessibility of these colleges.<br />

These new facilities are two new<br />

Ikhala TVET College campuses<br />

(Sterkspruit and Maletswai), a<br />

new Eastcape Midlands campus<br />

in Graaff-Reinet and a new<br />

Ingwe TVET college campus in<br />

Ngqungqushe (Lusikisiki).<br />

The National Department of<br />

Higher Education and Training has<br />

been investing heavily in student<br />

accommodation in the province.<br />

This programme has seen an<br />

additional 2 000 beds added at<br />

the Nelson Mandela University in<br />

Gqeberha, 2 047 student beds at the<br />

University of Fort Hare, 3 000 beds at<br />

Walter Sisulu University and 1 000<br />

beds at King Hintsa TVET College.<br />

Rhodes University has a<br />

strong reputation for research,<br />

which has been enhanced by the<br />

addition of the Biotechnology<br />

Innovation Centre.<br />

The University of Fort Hare is<br />

leading three innovative studies<br />

into biogas, including a project<br />

investigating compressed<br />

biogas for public transport. The<br />

South African National Energy<br />

Development Institute (SANEDI)<br />

is working with Fort Hare on<br />

biodigesters for households.<br />

Walter Sisulu University (WSU)<br />

and the University of South<br />

Africa (Unisa) offer vocational<br />

training (diplomas) and academic<br />

programmes (degrees). ■<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Banking and financial services<br />

Digital services are expanding and improving.<br />



Two mutual banking<br />

licences have been<br />

approved.<br />

Credit: Walmer Park Shopping Centre<br />

The growing use of smartphones is creating new opportunities<br />

for banks and other financial service providers to bring<br />

banking services to a bigger proportion of the population.<br />

A recent addition to the market is Standard Bank’s low-cost<br />

MyMo account. With free electronic transactions, unlimited card swipes<br />

and a low monthly fee, the MyMo account is ideal for low-income<br />

earners, micro-entrepreneurs and the poor. Customers do not have to<br />

visit branches to sign up for the account. They can take a selfie on the<br />

mobile app.<br />

Standard Bank, which is Africa’s biggest bank, made its start in<br />

Gqeberha. Entrepreneur John Paterson launched Standard Bank in London<br />

in 1862 and opened its first branch in what was then Port Elizabeth in 1863.<br />

The initial spark was the discovery of diamonds in Kimberley but gold<br />

prospectors soon needed financing too, so 1866 saw the opening of a<br />

branch in Johannesburg. The bank continues to have a presence in Govan<br />

Mbeki Avenue.<br />

Two new licences for mutual banking have been approved<br />

nationally, despite the collapse of VBS, a Limpopo-based mutual bank.<br />

The nature of the South African market lends itself to mutual banking.<br />

Both the Young Women in <strong>Business</strong> Network (YWBN) and Bank Zero will<br />

use the mutual model. Naspers Foundry is one of several investment funds<br />

looking for opportunities in the financial sector. Insurance technology is<br />

of particular interest, together with credit services and payment systems.<br />


Auditor-General of South Africa: www.agsa.co.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

South African Institute for Chartered Accountants: www.saica.co.za<br />

Capital Appreciation, which is partowned<br />

by the Public Investment<br />

Corporation, is already invested in<br />

a software developer, a credit card<br />

payment terminal provider and has<br />

R500-million available for further<br />

investments.<br />

African Rainbow Capital has a<br />

stake in the investment company<br />

and is the owner of TymeBank,<br />

which received a banking licence<br />

in 2017 and is expanding rapidly.<br />

Discovery Bank officially launched<br />

in March 2019 and is experiencing<br />

rapid growth with deposits of<br />

R3.7-billion. Discovery Bank is<br />

applying the behavioural model<br />

it uses in its health business to<br />

reward good financial behaviour.<br />

Another relatively new bank<br />

is Capitec. Investment holding<br />

company PSG has reduced its<br />

holding in Capitec Bank from 32%<br />

to 4%, earning about R4-billion by<br />

selling those shares.<br />

The financial and business<br />

services sector is responsible of<br />

19.2% of the <strong>Eastern</strong> <strong>Cape</strong>’s Gross<br />

Domestic Product (StatsSA). The<br />

sector provides employment<br />

for 141 000 people. Agricultural<br />

finance is an important factor in<br />

the <strong>Eastern</strong> <strong>Cape</strong>. Production loans,<br />

vehicle financing and revolving<br />

credit plans all play an important<br />

role in keeping farmers and agroprocessors<br />

in business. ■<br />

37<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


Development finance and<br />

SMME support<br />

Wild Coast farmers are supplying new markets.<br />

Queens Greens, a small farming company, has recently<br />

expanded into new markets with the support of the<br />

Wild Coast Sun.<br />

A new borehole and irrigation system (pictured) has been<br />

provided to Queens Greens, enabling them to go beyond being a supplier<br />

to the resort and to start supplying local markets with fresh produce.<br />

The Wild Coast Sun’s Enterprise Development Programme has<br />

trained and supported seven local SMMEs, which employ a total of 42<br />

people. The resort aims to achieve 90% procurement of all goods and<br />

services from BBBEE level 1 suppliers within the next five years.<br />

In early <strong>2022</strong>, the Wild Coast Sun hosted a two-day SMME<br />

<strong>Business</strong> and Networking Conference which was attended by 150<br />

people. Among the bodies represented were the Small Enterprise<br />

Development Agency (Seda), the <strong>Eastern</strong> <strong>Cape</strong> Department of<br />

Economic Development, Environmental Affairs and Tourism<br />

(DEDEAT), the <strong>Eastern</strong> <strong>Cape</strong> Gambling Board, the Winnie Madikizela-<br />

Mandela Local Municipality and the Small Enterprise Finance Agency<br />

(Sefa), as well as several SMME financing houses.<br />

Work is underway to refurbish several state-owned industrial<br />

parks. Not only will areas like the Dimbaza Industrial Park assist<br />

SMMEs with affordable space, the programme has so far created<br />

379 jobs and involved 71 local SMMEs. Provincial government<br />

departments are encouraged to buy from SMMEs and the current<br />

administration had spent by December 2021 58% of its procurement<br />

budget (R24.3-billion) purchasing from local suppliers.<br />

The National Department of Small <strong>Business</strong> Development (DSBD)<br />

has a Shared Economic Infrastructure Facility, which is investing<br />

R34.7-million in support of <strong>Eastern</strong> <strong>Cape</strong> projects: the KwaNtozonke<br />

Product Market in King Sabata Dalindyebo Municipality and the<br />

Chris Hani Co-operative Development Centre in Chris Hani District.<br />

A further R1.9-million has been allocated to 141 informal and micro<br />

businesses in the Amathole and Joe Gqabi district municipalities.<br />

Volkswagen South Africa (VWSA) has a project called Ntinga (“to<br />

soar” in Xhosa) whereby suppliers receive training and are mentored<br />

for 18 months.<br />


<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency: www.ecrda.co.za<br />


The upgrade of industrial parks<br />

is creating work.<br />

Two of the <strong>Eastern</strong> <strong>Cape</strong> Development<br />

Corporation’s seven business units are<br />

devoted to small business: Development<br />

Finance and Enterprise Development.<br />

The ECDC has several financial products<br />

tailored to SMMEs. The ECDC and the<br />

Technology Innovation Agency (ITA) jointly<br />

run the TIA-ECD Innovation Seed Fund<br />

Programme, which aims to identify and cofund<br />

earlier stage technology innovation<br />

projects. Help Desks have been established<br />

to support small business in Port Elizabeth<br />

and East London.<br />

The Small Enterprise Development<br />

Agency is an agency of the DSBD<br />

which gives non-financial support<br />

to entrepreneurs through training,<br />

marketing and assistance in the writing<br />

of business plans. The Seda Technology<br />

Programme (Stp) helps potential<br />

businesses become trading entities. ■<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


FOCUS<br />

Supporting <strong>Eastern</strong><br />

<strong>Cape</strong> business<br />

The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation boosts the local<br />

economy with targeted programmes.<br />

Services include: business networks; advisory<br />

support; business plan development; feasibility studies;<br />

due diligence; mentorship and coaching; quality<br />

management support; marketing support; intellectual<br />

property registration support and management;<br />

pre-commercialisation studies; skills development;<br />

information workshops and seminars.<br />

Participants in the Mdantsane Motor Mechanic<br />

Enterprise Development Programme received<br />

toolboxes to celebrate having their<br />

businesses registered.<br />

The <strong>Business</strong> Development Services<br />

Unit of the <strong>Eastern</strong> <strong>Cape</strong> Development<br />

Corporation (ECDC) forms the backbone<br />

of the enterprise development ecosystems<br />

which ensures the sustainability of business.<br />

<strong>Business</strong> Support<br />

The <strong>Business</strong> Support sub-unit provides non-financial<br />

pre-investment and post-investment support,<br />

ensuring that businesses are ready for finance, market<br />

ready and poised for long-term growth.<br />

Ongoing support is available through mentorships,<br />

market access opportunities as well as business and<br />

financial management advice. The unit offers both<br />

strategic and operational services to equip small<br />

businesses to perform to their full potential, with<br />

increased profitability and improved management<br />

processes that enhance their long-term viability.<br />

The <strong>Business</strong> Support sub-unit promotes a<br />

culture of entrepreneurship, improvement in business<br />

competitiveness and facilitates access to market and<br />

to education and training for SMMEs.<br />

ECDC contact details<br />

Address: 1 Moore Street, Quigney, East London<br />

Tel: +27 43 704 5604<br />

Email: info@ecdc.co.za<br />

Website: www.ecdc.co.za<br />

Development Finance<br />

The Development Finance sub-unit manages the ECDC’s<br />

business finance product offering and assists enterprises<br />

gain access to finance.<br />

Through both short-term and long-term products, the<br />

ECDC has set itself apart as the financial service provider of<br />

choice for initiatives that bring a meaningful development<br />

impact. With an understanding of the historical lack of<br />

access of small-to-medium enterprises to finance, the<br />

ECDC uses adequate management capacity and business<br />

viability as key lending criteria.<br />

ECDC Access, the category name for short-term finance,<br />

offers products geared towards facilitating efficient cash<br />

flow management. “Access” denotes the values of flexibility,<br />

convenience, efficiency and transparency. ECDC Future,<br />

the category name for long-term finance, offers long-term<br />

debt finance vehicles, one covering commercial property<br />

and another dealing with equity finance.<br />

The ECDC’s business finance products are best suited<br />

to applications that facilitate job creation and/or retention,<br />

economic empowerment, value addition, rural/township<br />

development and increased export income. Any greenfield<br />

initiative that leads to expansion and rehabilitation will be<br />

eligible for application for finance.<br />

The ECDC aims to provide efficient client service for<br />

the entire duration of the contract term. Monthly account<br />

management and quarterly report-back visits will gauge<br />

the health of the business. ■<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


<strong>Eastern</strong> <strong>Cape</strong><br />

Provincial Government<br />

A guide to the <strong>Eastern</strong> <strong>Cape</strong>’s provincial government departments. Visit www.ecprov.gov.za<br />

Office of the Premier<br />

Premier: Oscar Mabuyane<br />

Office of the Premier Building,<br />

Independence Avenue, Bhisho 5605<br />

Tel: +27 40 609 6644 | Fax: +27 86 681 9493<br />

Website: www.ecprov.gov.za<br />

Department of Cooperative Governance<br />

and Traditional Affairs<br />

MEC: Xolile Nqata<br />

Tyamzashe Bldg, Room 2124, 2nd Flr, Bhisho 5605<br />

Tel: +27 40 609 5656/8 | Fax: +27 40 639 2163<br />

Website: www.eccogta.gov.za<br />

Department of Economic Development,<br />

Environmental Affairs and Tourism<br />

MEC: Mlungisi Mvoko<br />

2nd Flr, Beacon Hill, Hockley Cl, King Williams Town<br />

5600<br />

Tel: +27 43 605 7000 | Fax: +27 43 605 7303<br />

Website: www.dedea.gov.za<br />

Department of Education<br />

MEC: Fundile Gade<br />

Steve Tshwete Education Bldg, Zwelitsha Zone 6,<br />

Zwelitsha 5608<br />

Tel: +27 40 608 4200 | Fax: +27 40 608 4040<br />

Website: www.ecdoe.gov.za<br />

Department of Health<br />

MEC: Nomakhosazana Meth<br />

Dukumbane Bldg, Independence Ave, Bhisho 5605<br />

Tel: +27 40 608 1117 | Fax: +27 40 608 1118<br />

Website: www.echealth.gov.za<br />

Department of Human Settlements<br />

MEC: Nonceba Kontsiwe<br />

31-33 Phillip Frame Rd, Waverly Park, Chiselhurst,<br />

East London 5247<br />

Tel: +27 43 711 9901/2/3 | Fax: +27 43 711 9797<br />

Website: www.ecdhs.gov.za<br />

Department of Public Works and<br />

Infrastructure<br />

MEC: Babalo Madikizela<br />

5 Qasana Bldg, Independence Avenue, Bhisho 5605<br />

Tel: 0800 864 951 | Website: www.ecdpw.gov.za<br />

Department of Rural Development<br />

and Agrarian Reform<br />

MEC: Nonkqubela Pieters<br />

Dukumbane Bldg, Independence Ave, Bhisho 5606<br />

Tel: +27 40 602 5006 | Fax: +27 40 635 0604<br />

Website: www.drdar.gov.za<br />

Department of Safety and Liaison<br />

MEC: Weziwe Tikana Gxothiwe<br />

Arches Building 7, Taylor St, King Williams Town 5601<br />

Tel: +27 43 605 6800 | Fax: 086 558 0224<br />

Website: www.ecprov.gov.za<br />

Department of Social Development<br />

MEC: Siphokazi Mani-Lusithi<br />

Phalo Ave, 5th Flr, Dukumbana Building, Bisho 5605<br />

Tel: +27 43 605 5419 | Fax: +27 43 605 5000<br />

Website: www.ecdsd.gov.za<br />

Department of Sports, Recreation,<br />

Arts and Culture<br />

MEC: Fezeka Nkomonye<br />

5 Eales St, King Williams Town 5600<br />

Tel: +27 43 604 4101 | Website: www.ecsrac.gov.za<br />

Department of Transport<br />

MEC: Weziwe Tikana Gxothiwe<br />

Flemming St, Schornville, King Williams Town 5601<br />

Tel: +27 43 604 7400 | Fax: 086 298 5598<br />

Website: www.ectransport.gov.za<br />

Provincial Treasury<br />

MEC: Mlungisi Mvoko<br />

Provincial Treasury, Tyamzashe Bldg, Bhisho 5605<br />

Tel: +27 40 353 9944 | Fax: +27 40 101 0731<br />

Website: www.ectreasury.gov.za<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


<strong>Eastern</strong> <strong>Cape</strong> Local Government<br />

A guide to the <strong>Eastern</strong> <strong>Cape</strong>’s metropolitan, district and local municipalities.<br />



Erf 1400, Ntsizwa Street, Mount Ayliff<br />

Tel: +27 39 254 5000 | Fax: +27 39 254 0343<br />

Email: info@andm.gov.za<br />

Website: www.andm.gov.za<br />

Matatiele Local Municipality<br />

Tel: +27 39 737 8100<br />

Fax: +27 39 737 3611<br />

Website: www.matatiele.gov.za<br />

Ntabankulu Local Municipality<br />

Tel: +27 39 258 0056<br />

Fax: +27 39 258 0173<br />

Website: www.ntabankulu.gov.za<br />

Umzimvubu Local Municipality<br />

Tel: +27 39 255 8500<br />

Fax: +27 39 255 0167<br />

Website: www.umzimvubu.gov.za<br />

Winnie Madikizela-Mandela Local Municipality<br />

Tel: +27 39 251 0<strong>23</strong>0<br />

Fax: +27 39 251 0917<br />

Website: www.mbizana.gov.za<br />


3-33 Phillip Frame Road, Chiselhurst,<br />

Cambridge, East London<br />

Tel: +27 43 701 4000 | Fax: +27 43 742 0337<br />

Email: info@amathole.gov.za<br />

Website: www.amathole.gov.za<br />

Amahlathi Local Municipality<br />

Tel: +27 43 683 5000 | Fax: +27 43 683 2970<br />

Website: www.amahlathi.gov.za<br />

Great Kei Local Municipality<br />

Tel: +27 43 831 1028 | Fax: +27 43 831 1483<br />

Website: www.greatkeilm.gov.za<br />

Mbashe Local Municipality<br />

Tel: +27 47 489 5800 | Fax: +27 47 489 5800<br />

Website: www.mbhashemun.gov.za<br />

Mnquma Local Municipality<br />

Tel: +27 47 401 2400 | Fax: +27 47 491 0195<br />

Website: www.mnquma.gov.za<br />

Ngqushwa Local Municipality<br />

Tel: +27 40 673 3095 | Fax: +27 40 673 3771<br />

Website: www.ngqushwamun.gov.za<br />

Raymond Mhlaba Local Municipality<br />

Tel: +27 46 645 7400<br />

Fax: +27 46 645 2562<br />

Website: www.raymondmhlaba.gov.za<br />



117 Oxford Street, Cnr North and Oxford Streets,<br />

Trust Centre, East London<br />

Tel: +27 43 705 2000 | Fax: +27 43 743 1688<br />

Website: www.buffalocity.gov.za<br />


15 Bells Road, Komani<br />

Tel: +27 45 808 4600 | Fax: +27 45 838 1556<br />

Website: www.chrishanidm.gov.za<br />

Emalahleni Local Municipality<br />

Tel: +27 47 878 0020 | Fax: +27 47 878 0112<br />

Website: www.emalahleni.gov.za<br />

Engcobo Local Municipality<br />

Tel: +27 47 548 5600 | Fax: +27 47 548 1078<br />

Website: www.engcobolm.gov.za<br />

Enoch Mgijima Local Municipality<br />

Tel: +27 45 807 2606<br />

Fax: +27 45 807 2637<br />

Website: www.enochmgijima.org.za<br />

Intsika Yethu Local Municipality<br />

Tel: +27 47 874 8700 | Fax: +27 47 874 0010<br />

Website: www.intsikayethu.gov.za<br />

41 EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong>


Inxuba Yethemba Local Municipality<br />

Tel: +27 48 801 5000<br />

Fax: +27 48 881 1421<br />

Website: www.iym.co.za<br />

Sakhisizwe Local Municipality<br />

Tel: +27 47 877 5200<br />

Fax: +27 47 877 0000<br />

Website: www.sakhisizwe.gov.za<br />


Cnr Cole and Graham Streets, Barkly East<br />

Tel: +27 45 979 3000<br />

Fax: +27 45 971 0251<br />

Website: www.jgdm.gov.za<br />

Elundini Local Municipality<br />

Tel: +27 45 932 8100 | Fax: +27 45 932 1094<br />

Website: www.elundini.org.za<br />

Senqu Local Municipality<br />

Tel: +27 51 603 1300 | Fax: +27 51 603 0445<br />

Website: www.senqumunicipality.co.za<br />

Walter Sisulu Local Municipality<br />

Tel: +27 51 653 1777<br />

Fax: +27 51 653 0056<br />

Website: www.wslm.gov.za<br />



City Hall, Vuyisile Mini Square,<br />

Govan Mbeki Avenue, Nelson Mandela Bay<br />

Tel: +27 41 506 3208/9<br />

Fax: +27 41 506 2422<br />

Website: www.nelsonmandelabay.gov.za<br />


OR Tambo House, Nelson Mandela Drive,<br />

Myezo Park, Mthatha<br />

Tel: +27 47 501 6400<br />

Fax: +27 47 532 6518<br />

Website: www.ortambodm.gov.za<br />

Ingquza Hill Local Municipality<br />

Tel: +27 39 252 0131<br />

Fax: +27 39 252 0699<br />

Website: www.ihlm.gov.za<br />

King Sabata Dalindyebo Local Municipality<br />

Tel: +27 47 501 4000 | Fax: +27 47 531 3128<br />

Website: www.ksd.gov.za<br />

Mhlontlo Local Municipality<br />

Tel: +27 47 553 7000 | Fax: +27 47 553 0189<br />

Website: www.mhlontlolm.gov.za<br />

Nyandeni Local Municipality<br />

Tel: +27 47 555 5000 | Fax: +27 47 555 0202<br />

Website: www.nyandenilm.gov.za<br />

Port St Johns Local Municipality<br />

Tel: +27 47 564 1207<br />

Fax: +27 47 564 1206<br />

Website: www.psjmunicipality.gov.za<br />



32 Govan Mbeki Avenue, Port Elizabeth<br />

Tel: +27 41 508 7111<br />

Fax: +27 41 508 7000<br />

Website: www.sarahbaartman.co.za<br />

Blue Crane Route Local Municipality<br />

Tel: +27 49 807 5700 | Fax: +27 49 892 4319<br />

Website: www.bcrm.gov.za<br />

Dr Beyers Naude Local Municipality<br />

Tel: +27 49 807 5700 | Fax: +27 49 892 4319<br />

Website: www.camdeboo.gov.za<br />

Kouga Local Municipality<br />

Tel: +27 42 200 2200 | Fax: +27 42 200 8606<br />

Website: www.kouga.gov.za<br />

Kou-Kamma Local Municipality<br />

Tel: +27 42 288 7200 | Fax: +27 42 288 0797<br />

Website: www.koukammamun.co.za<br />

Makana Local Municipality<br />

Tel: +27 46 603 6111<br />

Fax: +27 46 622 9700<br />

Website: www.makana.gov.za<br />

Ndlambe Local Municipality<br />

Tel: +27 46 624 1140<br />

Fax: +27 46 624 2669<br />

Website: www.ndlambe.gov.za<br />

Sundays River Valley Local Municipality<br />

Tel: +27 42 <strong>23</strong>0 7700/0077<br />

Fax: +27 42 <strong>23</strong>0 1799<br />

Website: www.srvm.gov.za

Coca-Cola Beverages South Africa is creating<br />

employment and stimulating economic growth<br />

Bizniz in a Box is building an ecosystem of viable micro-businesses.<br />

A number of small business owners in Mdantsane in<br />

the <strong>Eastern</strong> <strong>Cape</strong> are ready to take their ventures to<br />

the next level after they were selected to be part of the<br />

Bizniz in a Box (BiB) initiative which seeks to empower<br />

township and rural entrepreneurs as part of building a<br />

more inclusive economy.<br />

Entrepreneurs in and around the Mdantsane<br />

taxi rank have taken ownership of their containers<br />

which have been fully customised and fitted out with<br />

kitchens. The business owners also received tables,<br />

coolers and start-up stock, as well as dust coats,<br />

aprons and Covid-19 PPE.<br />

Coca-Cola Beverages South Africa (CCBSA)<br />

sees BiB as the ideal platform to support emerging<br />

and small businesses, particularly those run by<br />

young people and women. The BiB programme<br />

further offers the opportunity to learn business skills.<br />

Bizniz in a Box envisages an ecosystem of viable<br />

micro-businesses offering complementary products<br />

and services in township communities, alongside<br />

the local spaza shop, covering a range of services,<br />

from business centres providing Internet access, car<br />

washes, fast-food shops or mini bakeries.<br />

Critical to growth<br />

Sakhumzi Ncapayi, the CCBSA District Manager, says,<br />

“We understand how critical the SMME sector is to our<br />

economic revival following the Covid-19 pandemic, and<br />

the important role small businesses will play in the future<br />

growth of South Africa and Africa.”<br />

Bizniz in a Box was first piloted in 2015 in the<br />

Free State. By the end of 2020, through Bizniz in a<br />

Box, CCBSA and its partners had trained 749 young<br />

entrepreneurs and helped 224 of them to take their<br />

businesses to the next level, creating 185 additional jobs<br />

by employing shop assistants.<br />

Beneficiary Siyamthanda Soxusa, 26, says of her<br />

fast foods take-away business, “Bizniz in a Box means<br />

so much to me because before I was working in a small<br />

container. I bought stock every day and ended with<br />

minimal profit. With this initiative, everything is convenient<br />

and I can see the growth in my business.”<br />

Buffalo City Metro spokesperson Samkelo Ngwenya<br />

said at the launch, “We are delighted that the Bizniz in a Box<br />

programme has reached Mdantsane and we believe that<br />

this empowerment initiative will lead to the transformation of<br />

not only this area, but the lives of our people.”<br />

Top left: Siyamthanda Soxusa is seeing growth in her<br />

business. Bottom left: Anda Mabamba, 35, in front<br />

of fast food outlet Zoe’s Kitchen, which is now run as<br />

part of Bizniz in a Box. Right : Nolubabalo Katshwa,<br />

50, is one of the beneficiaries of CCBSA’s Bizniz in a<br />

Box programme.<br />

EASTERN CAPE BUSINESS <strong>2022</strong>/<strong>23</strong><br />


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