Western Cape Business 2023

A unique guide to business and investment in the Western Cape, the 2023 edition of Western Cape Business is the 16th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature focuses on how the province’s Special Economic Zones have the potential to shift the energy debate in the Western Cape. The Atlantic Special Economic Zone is positioning itself as a greentech hub and wants to attract manufacturers in the renewable energy sector and automobile component manufacturers for the electronic era. It is encouraging tenants to reduce carbon emissions and use renewable energy. Up the coast at the Saldanha Bay Industrial Development Zone, the provincial government has not given up hopes of persuading national government to site a gas plant there, but in the meantime the race for green hydrogen might have supplanted the original wish. An expert from the Council for Scientific and Industrial Research (CSIR) provides insights into green hydrogen in a two-page article.

A unique guide to business and investment in the Western Cape, the 2023 edition of Western Cape Business is the 16th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape.

The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature focuses on how the province’s Special Economic Zones have the potential to shift the energy debate in the Western
Cape. The Atlantic Special Economic Zone is positioning itself as a greentech hub and wants to attract manufacturers in the renewable energy sector and automobile component manufacturers for the electronic era. It is encouraging tenants to reduce carbon emissions and use renewable energy.

Up the coast at the Saldanha Bay Industrial Development Zone, the provincial government has not given up hopes of persuading national government to site a gas plant there, but in the meantime the race for green hydrogen might have supplanted the original wish. An expert from the Council for Scientific and Industrial Research (CSIR) provides insights into green hydrogen in a two-page article.


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<strong>2023</strong> EDITION<br />



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<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> <strong>2023</strong> Edition<br />

Introduction<br />

Foreword 3<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is a unique guide to business, investment<br />

and tourism in the <strong>Western</strong> <strong>Cape</strong>.<br />

Special features<br />

A regional overview of the <strong>Western</strong> <strong>Cape</strong> 4<br />

Ashton in the <strong>Cape</strong> Winelands made big headlines in 2022. A new<br />

bridge and an old canning factory were the focus of local and<br />

national interest. Investment in infrastructure will be a big theme<br />

in <strong>2023</strong> for the <strong>Western</strong> <strong>Cape</strong> Provincial Government.<br />

Special Economic Zones could lead<br />

the energy transition 14<br />

Gas, green hydrogen, renewable-energy and electrical-vehiclecomponent<br />

manufacturing are all in the mix as Atlantis SEZ<br />

and Saldanha IDZ gear up to attract investors.<br />

Economic sectors<br />

Agriculture 22<br />

Farmers are trying to save a canning factory.<br />

Grapes and wine 24<br />

Logistics are testing farmers’ ingenuity.<br />

Oil and gas 28<br />

The Astron refinery is set to reopen.<br />

Energy 32<br />

Batteries could make a difference.<br />

Manufacturing 34<br />

Local clothes makers are expanding.<br />

Construction and property 35<br />

Social housing projects are accelerating in <strong>Cape</strong> Town.<br />

Transport 36<br />

The upgrades to the N7 are moving ahead.<br />

Tourism 38<br />

Air Belgium has started flying to <strong>Cape</strong> Town.<br />

Education 40<br />

Digital skills are in demand.<br />

SMME and development finance 44<br />

Digital access is available for entrepreneurs.<br />

<strong>Business</strong> Process Outsourcing 45<br />

International brands are choosing <strong>Cape</strong> Town.<br />

Banking and financial services 46<br />

Infrastructure funds are attracting investors.<br />

References<br />

Key sector contents 20<br />

Overviews of the main economic<br />

sectors of the <strong>Western</strong> <strong>Cape</strong>.<br />

Index 48<br />




<strong>2023</strong> EDITION<br />



Main image: top right, then<br />

clockwise to centre; wind power,<br />

Perdekraal East Wind Farm; fruit<br />

packaging, RFG; wine bottles, <strong>Cape</strong><br />

Winemakers Guild; new Ashton<br />

Bridge, AECOM; a direct flight<br />

between Washington Dulles Airport<br />

and <strong>Cape</strong> Town International Airport<br />

has been introduced, United Airlines;<br />

wind-turbine manufacturing factory<br />

within the Atlantis Special Economic<br />

Zone, Gestamp Renewable<br />

Industries; the <strong>Cape</strong> Peninsula from<br />

above, TNPA.

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

A unique guide to business and investment in the <strong>Western</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: Yonella Ngaba<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Shiko Diala<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2023</strong> edition of <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is the 16th issue of this highly<br />

successful publication that, since its launch in 2005, has established itself<br />

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

The <strong>Western</strong> <strong>Cape</strong> has several investment and business opportunities.<br />

In addition to the regular articles providing insight into each of the key economic<br />

sectors of the province, a special feature focuses on how the province’s Special<br />

Economic Zones have the potential to shift the energy debate in the <strong>Western</strong><br />

<strong>Cape</strong>. The Atlantic Special Economic Zone is positioning itself as a greentech<br />

hub and wants to attract manufacturers in the renewable energy sector and<br />

automobile component manufacturers for the electronic era. It is encouraging<br />

tenants to reduce carbon emissions and use renewable energy.<br />

Up the coast at the Saldanha Bay Industrial Development Zone, the<br />

provincial government has not given up hopes of persuading national<br />

government to site a gas plant there, but in the meantime the race for green<br />

hydrogen might have supplanted the original wish. An expert from the<br />

Council for Scientific and Industrial Research (CSIR) provides insights into green<br />

hydrogen in a two-page article.<br />

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

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

westerncapebusiness.co.za. Updated information on the <strong>Western</strong> <strong>Cape</strong> is also<br />

available through our monthly e-newsletter, which you can subscribe to online<br />

at www.gan.co.za, in addition to our complementary business-to-business titles<br />

that cover all nine provinces as well as our flagship South African <strong>Business</strong> title<br />

and the new addition to our list of publications, Journal of African <strong>Business</strong>, which<br />

was launched in 2020. ■<br />

Chris Whales<br />

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



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

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

agencies; to foreign offices in South Africa’s main trading<br />

partners around the world; at top national and international<br />

events; through the offices of foreign representatives in<br />

South Africa; as well as nationally and regionally via chambers<br />

of commerce, tourism offices, airport lounges, provincial<br />

government departments, municipalities and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

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

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

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

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

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

PHOTO CREDITS | AECOM; Air Belgium; APPA; Astron Energy;<br />

Atlantic SEZ; <strong>Cape</strong> Town Central City Improvement District (CCID);<br />

<strong>Cape</strong> Winemakers Guild; CHIETA; College of <strong>Cape</strong> Town; Conradie<br />

Park; K-Way; Langeberg & Ashton Foods; New Southern Energy; Nick<br />

Fordyce/Green<strong>Cape</strong>; Perdekraal East Wind Farm; Philippi Village; RFG;<br />


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ISSN 1816 370X<br />

Saldanha Bay IDZ; SANRAL; Suiderland Plase; Sun International; South<br />

African Table Grape Industry (SATI); TotalEnergies; Transnet National<br />

Ports Authority (TNPA); United Airlines; Versofy Solar; Water Research<br />

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

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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<br />

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

3 WESTERN CAPE BUSINESS <strong>2023</strong>



Ashton in the <strong>Cape</strong> Winelands made big headlines in 2022. A new bridge and an<br />

old canning factory were the focus of local and national interest. Investment in<br />

infrastructure is a big theme for <strong>2023</strong>, with the <strong>Western</strong> <strong>Cape</strong> Provincial Government<br />

restructuring its departments to prioritise spending on roads, buildings, digital networks<br />

and other elements that will boost investment and economic growth.<br />

By John Young<br />

Ashton is a small town in the Robertson<br />

Valley, once best-known for being home<br />

to two canning factories.<br />

Two became one when the factories were<br />

merged some years ago and in <strong>2023</strong>, after 70 years<br />

of operation, it is possible that the town will have no<br />

canning factory. Tiger Brands intended closing the<br />

Langeberg and Ashton Foods factory in 2022 but has<br />

agreed to complete one more season of canning. If<br />

the closure goes ahead, South Africa will have just one<br />

fruit-canning factory, the RFG facility in Tulbagh.<br />

Tiger Brands cited significant trade barriers in<br />

export destinations and the volatility of exchange rates<br />

and crop production volumes, deciding instead to<br />

focus on basic foods. Local and provincial government<br />

are working with farmers and agricultural bodies to see<br />

what can be done to maintain the factory, which is a<br />

significant part of the local economy.<br />

The other reason Ashton made headlines in 2022<br />

was because of the completion of a replacement<br />

bridge over the Cogmanskloof River. Ashton is located<br />

at the western end of the R62, an important route<br />

for tourism and the transport of agricultural produce.<br />

Some 4 000 vehicles travel through the town towards<br />

Montagu on a daily basis.<br />

This was no ordinary bridge. The building of the<br />

New Ashton Arch Bridge in the centre of town, one<br />

of three built over the flood-prone river in terms<br />

of this provincial government project, was the first<br />

application of the transverse-launching method for<br />

construction of a concrete tied-arch road bridge in<br />

South Africa.<br />

The new bridge was used as a detour while the<br />

old bridge was demolished and then more than 8 000<br />

tons of concrete and steel was moved over 24m in less<br />

than 24 hours.<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



roads. A Department of Mobility will also be established<br />

to work on coordinating transport systems and trying to<br />

revive the passenger rail network, among other things.<br />

In his 2022 State of the Province Address, Premier Alan<br />

Winde claimed that <strong>Cape</strong> Town is:<br />

• Africa’s greentech hub<br />

• Africa’s BPO capital<br />

• Africa’s tech capital<br />

Credit: AECOM<br />

The 22-metre bridge won the 2022 Fulton Award<br />

in the Infrastructure Greater Than R100-million Project<br />

Value category and received a commendation in the<br />

Innovation and Invention in Concrete category.<br />

AECOM SA was the project manager and structural<br />

designer, the client was the <strong>Western</strong> <strong>Cape</strong> Department<br />

of Transport and Public Works, and the main contractor<br />

was Haw & Inglis Civil Engineering. Over the five-year<br />

duration of the project, 42% of the contract value was<br />

allocated to opportunities for locals.<br />

Infrastructural priorities<br />

The <strong>Western</strong> <strong>Cape</strong> Ministry of Finance and Economic<br />

Opportunities announced in early 2022 a focus on<br />

the construction and maintenance of roads and<br />

education, health and general building facilities. This<br />

is based on the belief that infrastructure investment is<br />

one of the most significant contributors to provincial<br />

economic growth.<br />

An additional R2.6-billion was pledged to<br />

infrastructure, as part of a R30.3-billion medium-term<br />

package. Spending on infrastructure assets is intended<br />

to increase by 6.1% every year, and by 54.2% on new<br />

infrastructure assets.<br />

A new Department of Infrastructure will be created<br />

through the merger of the Human Settlements<br />

Department with the parts of the Transport and Public<br />

Works Department which deal with property and<br />

In addition, he quoted the Global Startup Ecosystem<br />

Report 2021, where <strong>Cape</strong> Town is listed as the number<br />

one performer in Africa for technology ecosystems and is<br />

home to almost two-thirds of all start-ups in South Africa.<br />

There are 22 active incubators and accelerators in<br />

the region which provide networking and marketing<br />

opportunities and links to funders and markets.<br />

Information and communications infrastructure is no<br />

less important than physical bridges and it is because the<br />

<strong>Western</strong> <strong>Cape</strong> has been investing in digital infrastructure<br />

that the Premier can persuasively make these claims.<br />

The provincial government’s broadband roll-out<br />

project is in Phase 2 and all 1 910 sites are expected to<br />

be upgraded to a minimum of 100/Mbps in 2022 with<br />

Phase 3 taking minimum speeds to 1Gbps.<br />

The <strong>Western</strong> <strong>Cape</strong> Department of Health was the<br />

first in the country to go digital, including 265 primary<br />

healthcare centres and 181 mobile posts.<br />

The Premier will be pleased to know that Youth<br />

Media Movement hosted a first SA Drone Soccer Day in<br />

Mitchell’s Plain in 2022 to encourage young people to<br />

take up and apply technology.<br />

As a way for the <strong>Western</strong> <strong>Cape</strong> to show off its<br />

growing reputation as a tech-friendly destination, the<br />

launch of the <strong>Cape</strong> Town Stock Exchange in August<br />

2021 was an ideal event. When several new bourses<br />

launched in 2017 most of them put an X in their names<br />

and all of them based themselves in Johannesburg. In<br />

2021, 4AX made the move south and rebranded as the<br />

<strong>Cape</strong> Town Stock Exchange.<br />

<strong>Cape</strong> Town also, according to the Global Financial<br />

Centres Index (GFCI), ranked second in Africa in 2020<br />

(behind Mauritius) in competitiveness as a financial<br />

centre. Neighbouring Stellenbosch is advancing its<br />

reputation for technological innovation and the output of<br />

the region’s four universities and six TVET colleges ensures<br />

that the tech sector has the necessary human capital.<br />

<strong>Cape</strong> Town’s share of national employment in the<br />

financial sector is about 20% and the contribution to<br />

gross value-added (GVA) is 15%.<br />

5 WESTERN CAPE BUSINESS <strong>2023</strong>


Air Belgium has added <strong>Cape</strong> Town to its destination list. In the first six months of 2022, 8 300 passengers and<br />

500 tons of air cargo were flown between the two destinations. A direct flight will follow as passenger and cargo<br />

volumes grow. Credit: Air Belgium<br />

Investment<br />

The province has a dedicated investment agency,<br />

Wesgro, which also works to promote the region’s<br />

tourism. The Investment Promotion Unit of Wesgro is<br />

working with various regions within the <strong>Western</strong> <strong>Cape</strong><br />

to attract investment and accelerate exports.<br />

In recent years, the biggest investments have<br />

been in renewable energy and manufacturing. Other<br />

important sectors are agro-processing, aviation,<br />

business services, education and training, financial<br />

services, real estate, ICT, light manufacturing, oil and gas,<br />

timber, tourism, waste beneficiation and clean energy.<br />

Another vehicle for attracting investment are Special<br />

Economic Zones (SEZ) and Industrial Development<br />

Zones (IDZ). Zones at Atlantis and Saldanha aim to<br />

tap into growing markets – maritime, oil and gas and<br />

renewable technologies. Large industrial operations<br />

already exist at Saldanha and the Port of Saldanha Bay<br />

is the portal for the export of South Africa’s iron ore. The<br />

Saldanha Bay Industrial Development Zone (SBIDZ) is<br />

becoming a hub for a range of maritime repair activities<br />

and oil rig maintenance and repair.<br />

The Atlantis Special Economic Zone (ASEZ) is<br />

attracting investors in the greentech market. An early<br />

investor in the zone was GRI Towers South Africa, a wind<br />

turbine tower manufacturer. With new renewable energy<br />

projects such as solar parks and wind farms being rolled<br />

out every month, this sector is on a steep growth path.<br />

Economy<br />

Finance, business services and real estate<br />

combined contribute 28% to the gross domestic<br />

product (GDP) of the <strong>Western</strong> <strong>Cape</strong>. The financial<br />

services and insurance sector are key components<br />

of the economy.<br />

Although agriculture accounts for just 4.3%<br />

of GDP on its own, the sector is responsible for<br />

the fruit and vegetables that contribute to agroprocessing<br />

which accounts for nearly 40% of<br />

the province’s export basket. (Agro-processing<br />

accounts for 8.1% of GDP.) Citrus, wine, apples and<br />

pears, grapes, fruit juice, fruit and nuts and tobacco<br />

all appear in the top 10 of the province’s exports.<br />

Seventy percent of South Africa’s beverage exports<br />

come from the <strong>Western</strong> <strong>Cape</strong>. Grapes and wine<br />

sales to Europe remain strong, but the Chinese<br />

market is becoming increasingly important.<br />

The province has a diverse manufacturing<br />

sector ranging from textiles, clothing, footwear,<br />

boatbuilding and furniture to coke and refined<br />

petroleum products. Excluding agro-processing,<br />

other manufacturing makes up 6.9% of GDP.<br />

A R2-billion facility is under construction by the<br />

Biovac Institute in response to securing contracts<br />

with Pfizer and BioNTech to produce vaccines for<br />

distribution in Africa. Biovac is a private company<br />

in which the state has a 47.5% stake. ■<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



How South African companies can create employable graduates.<br />

WHAT WE DO:<br />

The Shaping Futures Foundation undertakes to address the<br />

challenge of tertiary education funding in South Africa:<br />

• match corporate skills development contributions to<br />

deserving students<br />

• ensure this spend is allocated efficiently and in accordance<br />

with the country’s demographic profile<br />

• assist companies to maximise their BEE obligations<br />

• liaise with tertiary institutions.<br />

Corporate South Africa has a chance to put<br />

a deserving student in a lecture hall at a<br />

tertiary institution.<br />


• Corporate donors can play a meaningful part in improving<br />

the lives of all South Africans.<br />

• Donations to the Shaping Futures Foundation qualify as<br />

skills development expenditure.<br />

• Any spend that the corporate has already incurred is<br />

taken into account.<br />

• An 18(A) certificate can ensure tax efficiency.<br />

• Supporting a graduate could lead to hiring opportunities<br />

for the donor companies which will further enhance<br />

their demographic profile and improve their employment<br />

equity score.<br />

The Shaping Futures Foundation is a non-profit<br />

organisation that has been matching donors with<br />

students with ability but limited funds since 2017.<br />



Despite having the academic ability to pass, many<br />

students can’t afford the fees and so they are denied<br />

graduation. Many of these students are the first in their<br />

families to attend universities. With government battling<br />

to narrow this funding shortfall, it is a national imperative<br />

for these students to graduate and join the workforce.<br />

Corporates can assist in narrowing this divide and at<br />

the same time gain recognition on their BEE scorecard.<br />

The ability for the graduating student to find meaningful<br />

employment improves not just their life but potentially<br />

those of their family as well.<br />

Revised BEE Codes focus heavily on the human resource<br />

elements within the scorecard and have made skills<br />

development a priority element.<br />

As a priority element, large companies that fail to<br />

achieve at least 40% of the skills development points<br />

on offer will automatically be downgraded a level.<br />

Qualifying small enterprises (QSE) will also benefit by<br />

contributing to skills development.<br />



• Individual South African students<br />

• South African families<br />

• Your company.<br />

The Shaping Futures Foundation also currently administers<br />

a school feeding scheme providing daily meals to 2 800<br />

underprivileged learners.<br />

<br />

LEARN MORE AT: www.shapingfutures.org.za<br />

SEND AN EMAIL TO: chloe@shapingfutures.org.za


Charting the pathway to<br />

economic growth<br />

Mireille Wenger, Minister of Finance and Economic Opportunities, explains<br />

how the <strong>Western</strong> <strong>Cape</strong> Provincial Government intends to achieve<br />

maximum impact while prioritising jobs, safety and wellbeing.<br />

Mireille Wenger, Minister<br />

of Finance and Economic<br />

Opportunities<br />


Mireille has a Master of Arts in International<br />

Relations from the University of<br />

Stellenbosch and a Master of Philosophy<br />

in Criminology, Law and Society<br />

from UCT. She has also completed the<br />

Programme in Political Science and<br />

Sociology at Sciences Po in France.<br />

She has served as the Chief Whip in<br />

the <strong>Western</strong> <strong>Cape</strong> Provincial Parliament,<br />

chaired the Ad Hoc Committee<br />

on Covid-19 and the Parliamentary<br />

Oversight Committee and also previously<br />

served as the Chairperson for the<br />

Community Safety Committee.<br />

You described your Medium-Term Budget Policy Statement<br />

(MTBPS) as a “framework of hope”. Please expand.<br />

We face significant challenges as a nation, including sluggish<br />

economic growth, high levels of unemployment and poverty,<br />

significant debt-service costs, a rising cost-of-living and a<br />

debilitating energy crisis.<br />

In the face of these challenges, there are promising<br />

opportunities that present a clear pathway from recovery to<br />

growth in the <strong>Western</strong> <strong>Cape</strong>. Guided by our “north star” priorities<br />

of jobs, safety and wellbeing, and underpinned by our budget<br />

principles of protecting our core mandates, focussing on<br />

programmes that maximise impact, doing more with less to<br />

deliver value for money projects, while acting to protect the<br />

long-term fiscal sustainability of the province, the Medium-<br />

Term Budget Policy Statement and Adjustment Budget set out<br />

a “framework for hope” by detailing the funding allocations that<br />

will deliver hope to the citizens of the <strong>Western</strong> <strong>Cape</strong> by setting<br />

us on a course towards a better, more prosperous future.<br />

What are the key priorities for your department?<br />

In all that we do, we are guided by our priorities of jobs, safety<br />

and wellbeing, which we believe are vital components for real<br />

change and our reason to hope. Which is why over the term<br />

of the 2022/23 Adjustment Budget, to keep us on course from<br />

recovery to growth, and to give full effect to our framework for<br />

hope, we will have allocated:<br />

• R54.75-billion to our wellbeing priority<br />

• R15.87-billion to our growth for jobs priority<br />

• R2.65-billion to our safety priority.<br />

Over the longer term, it remains critical that we unlock much<br />

higher levels of economic growth in the <strong>Western</strong> <strong>Cape</strong>, so that<br />

we can create opportunity.<br />

We are currently formulating a new Growth for Jobs Strategy<br />

for the province.<br />

At the core of this strategy is the understanding that the<br />

private sector drives economic growth and job creation and<br />

the government’s job is to enable this, firstly by providing<br />

the foundations for growth, such as infrastructure, energy<br />

WESTERN CAPE BUSINESS <strong>2023</strong> 8

and water, by unlocking housing opportunities<br />

and building reliable, safe roadways, as well<br />

as delivering skills for the economy. Secondly,<br />

government must create an enabling<br />

environment for entrepreneurs, businesspeople<br />

and citizens and make it easier for businesses, big<br />

and small, to trade in the <strong>Western</strong> <strong>Cape</strong>.<br />

What is the provincial government doing<br />

about the risk posed by Eskom?<br />

The <strong>Western</strong> <strong>Cape</strong> has made it a strategic priority<br />

to become energy resilient and to be the first<br />

province to beat loadshedding. Premier Alan<br />

Winde’s cabinet-level Energy Council brings<br />

together government, citizens, businesses and civil<br />

society to coordinate immediate action.<br />

This coordination, with interventions over the<br />

short term, will be key, while we continue to lay<br />

the foundations, over the medium term, for an<br />

energy-resilient future through our Municipal<br />

Energy Resilience (MER) Initiative.<br />

This programme is making important strides<br />

in unlocking energy opportunities by enabling<br />

municipalities, businesses and households to<br />

generate, procure and sell power. To enable<br />

the private sector, we are mapping out large<br />

private-sector energy users’ current energy useand-demand<br />

growth projections as well as their<br />

alternative-energy-supply interventions and plans.<br />

The intention is to map this information against<br />

municipal grid capacity to enable the fast-tracking<br />

of private-sector implementation of small-scale<br />

embedded generation and electricity-wheeling<br />

solutions where possible.<br />

To support municipal readiness, the <strong>Western</strong><br />

<strong>Cape</strong> Government has provided funding to 10<br />

municipalities for 16 foundational energy studies<br />

including the development and updating of<br />

electricity master plans and cost-of-supply studies.<br />

We are in the process of having standardised legal<br />

agreements drafted for the use of municipal grids<br />

in wheeling transactions.<br />

Our goal is to generate an additional 500MW of<br />

power for the <strong>Western</strong> <strong>Cape</strong> by 2025, and we are<br />

constantly looking at ways to focus, innovate and<br />

scale up so that we move towards our goal as fast<br />

as possible.<br />

An efficiently functioning Port of <strong>Cape</strong> Town has the<br />

capacity to add R6-billion in exports, 20 000 jobs and<br />

more than R1.6-billion in additional taxes. Credit: TNPA<br />

What was behind the somewhat improved<br />

statistics for unemployment in Q3?<br />

It was welcome news that, according to the<br />

Quarterly Labour Force Survey, just over 85 000<br />

jobs were created in the <strong>Western</strong> <strong>Cape</strong> in Quarter<br />

3, and that over 203 000 jobs were created in the<br />

<strong>Western</strong> <strong>Cape</strong> year-on-year. While the <strong>Western</strong><br />

<strong>Cape</strong>’s expanded unemployment rate also<br />

decreased by 1.8 percentage points quarter-onquarter<br />

and by 0.8 percentage points year-onyear,<br />

the fact is that we need to achieve much<br />

higher and sustained economic growth if we<br />

want to employment to increase.<br />

Has progress been made in terms of the<br />

functioning of the Port of <strong>Cape</strong> Town?<br />

Ensuring that the Port of <strong>Cape</strong> Town (PCT) reaches<br />

its full potential is a priority for the <strong>Western</strong> <strong>Cape</strong><br />

Government because we believe that logistics,<br />

mobility and export facilitation are critical pieces<br />

of the puzzle of break-out economic growth that<br />

gets us on new trajectory of prosperity and hope.<br />

According to a high-growth scenario<br />

contained in a research report by Impact<br />

Economix, an efficient PCT with sufficient capacity<br />

and investment in key infrastructure has the<br />

potential to contribute an additional R6-billion in<br />

exports, roughly 20 000 direct and indirect jobs,<br />

over R1.6-billion in additional taxes by 2026, and<br />

an additional 0.7% contribution to the <strong>Western</strong><br />

<strong>Cape</strong> Gross Domestic Product.<br />

To achieve this high-growth scenario, the<br />

<strong>Western</strong> <strong>Cape</strong> Government is committed to<br />

working together with all levels of government<br />

and the private sector to unlock the port’s full<br />

potential. We believe that enabling private sector<br />

participation at the Port of <strong>Cape</strong> Town, as is<br />

currently the case for Durban and Ngqura, will be<br />

key to this. ■<br />

9<br />

WESTERN CAPE BUSINESS <strong>2023</strong>


How SA can power green<br />

investments and end loadshedding<br />

With SA’s energy crisis showing no sign of slowing down, the need to<br />

accelerate green investments is now more urgent than ever.<br />

By Wesgro CEO Wrenelle Stander<br />

While South Africa is considered the best area for<br />

investment in Africa by investors from various countries<br />

around the world – topping the list of foreign direct<br />

investment with 31 projects in 2020 according to the<br />

Attractiveness Report Africa by global professional<br />

services firm Ernst & Young (EY) – the country hasn’t<br />

done enough to build on this advantage and scale up<br />

renewable energy investments.<br />

Wrenelle Stander<br />

Understandably, many bemoan<br />

loadshedding as it continues to be a<br />

massive drag on productivity and output<br />

in key sectors of the economy. But there<br />

is a silver lining; loadshedding presents the most<br />

opportune moment for South Africa to speed up the<br />

transition to renewables and decarbonise by creating<br />

an environment conducive for green investments.<br />

With its abundant sun and wind, South Africa<br />

has the basic resources to attract investments in<br />

that space. But we should be doing more to lure<br />

green investors.<br />

Ramping up targeted incentives to companies<br />

operating in the renewable energy space could<br />

be one of the most effective ways to spur green<br />

investments into the country, and thus keep<br />

the lights on – which is necessary to fire up the<br />

economy and to make a meaningful dent in<br />

unemployment, poverty and inequality.<br />

What should South Africa do?<br />

So, what should South Africa be doing to establish<br />

itself as a green investment hub?<br />

Huge tax benefits, which could effectively<br />

address green economy challenges and changes in<br />

consumer behaviour, are one of the most important<br />

factors influencing green investment decisions<br />

today. This can be seen in countries that top EY’s<br />

investment attractiveness index, including the<br />

US, the UK and Germany. Examples of sustainable<br />

activities that receive substantial tax credits in<br />

those countries are in energy-efficient renovations<br />

especially in residential buildings. There are also<br />

credits for companies that invest in solar panels,<br />

wind and solar energy equipment. Companies that<br />

send waste from landfills for recycling or reuse also<br />

qualify for tax benefits.<br />

A recent study conducted by global research<br />

firm Kantar on behalf of Wesgro, the official tourism,<br />

trade and investment promotion agency for <strong>Cape</strong><br />

Town and the <strong>Western</strong> <strong>Cape</strong>, shows that there is a<br />

growing appetite to invest in the green economy<br />

globally and many governments are putting in<br />

place clear and targeted measures to make it easier<br />

and more incentivised for players in that market.<br />

The US, for example, recently promulgated the<br />

Inflation Reduction Act of 2022 which includes<br />

almost $400-billion in clean energy and climaterelated<br />

spending. The law partly puts an emphasis<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


The <strong>Western</strong> <strong>Cape</strong> has excellent potential as a site for both solar and wind power plants. Marlenique Estate,<br />

Stellenbosch. Credit: New Southern Energy<br />

on subsidies and tax credits to stimulate investment<br />

in clean-energy technologies rather than on a<br />

carbon price or penalties. In broad terms, it aims to<br />

ramp up investments in domestic manufacturing<br />

capacity, encourage domestic procurement and<br />

the diversification of supply chains, and incentivise<br />

research and development and commercialisation<br />

of clean technologies like carbon capture, storage<br />

and clean hydrogen.<br />

A major portion of the funding under the new<br />

law is directed towards clean energy through a mix<br />

of tax incentives, grants and loan guarantees, with<br />

the ultimate goal of drastically lowering US carbon<br />

emissions. The largest amount of funding will<br />

support clean energy and transmission, followed by<br />

clean transportation, including a switch to electric<br />

vehicles (EVs).<br />

Similarly, the UK provides generous tax breaks<br />

for companies that operate in a sustainable manner.<br />

A Climate Change Levy (CCL) is paid by businesses<br />

in key sectors, including industrial, commercial and<br />

agricultural or public services for electricity, gas and<br />

solid fuels.<br />

But if the firm uses small amounts of energy (for<br />

example, when energy is not used as fuel), or uses<br />

domestic energy, it doesn’t need to pay the main<br />

rate of CCL on certain supplies. A company can also<br />

claim “enhanced capital allowances” when buying<br />

energy-efficient, low or zero-emission technologies,<br />

such as electric vehicles or zero-emission trucks. This<br />

reduces the amount of tax to pay. A company can<br />

also obtain tax breaks if it sends waste from landfills<br />

to be recycled, incinerated or reused.<br />

The European Green Deal<br />

Meanwhile, in 2019 a law on climate protection was<br />

introduced in Germany. The law includes, among<br />

other measures, tax incentives for energy-efficient<br />

renovation measures in residential buildings or<br />

a mobility bonus for people who commute to<br />

work. The “European Green Deal” – with the aim<br />

of achieving climate-neutral business activity by<br />

2050 – also gives the tax policy a decisive role in the<br />

transition to greener and more sustainable growth.<br />

By 2030 Germany plans to produce at least 65%<br />

of all its electricity from renewable sources, and<br />

all electricity generated in the country should be<br />

greenhouse-gas neutral before 2050.<br />

To secure the green transition, the German<br />

government plans to invest €1.5-billion in green<br />

hydrogen to help decarbonise the economy. Such<br />

measures send a clear message to investors that<br />

renewables will be supported and builds confidence.<br />

Meticulously prepared top-down plans of a<br />

country on sustainable development give potential<br />

investors a defined road map and show investment<br />

opportunities in a clear way.<br />

In South Africa, incentives to fast-track the<br />

transition to a green economy have hardly moved<br />

the needle, amid lack of clarity on key government<br />

policies. The political will is there, for the most part.<br />

What is needed is urgent and decisive action.<br />

Collaboration in the <strong>Western</strong> <strong>Cape</strong><br />

The energy crisis will not be fixed by any one<br />

stakeholder and the collaboration of the public and<br />

private sectors will be the catalyst for getting this<br />

11 WESTERN CAPE BUSINESS <strong>2023</strong>

Following the announcement by the City of <strong>Cape</strong> Town that residents could get cash for power, national<br />

company Versofy Solar received 1 500 enquiries in the month of January. Credit: Versofy Solar<br />

right. The <strong>Western</strong> <strong>Cape</strong> is taking the lead on that<br />

front with Premier Alan Winde recently stating that<br />

the province is looking into ways in which private<br />

businesses can be provided with the necessary<br />

support to ramp up more investment into<br />

alternatives. The province has always emphasised<br />

the importance of intensifying and expanding the<br />

green energy drive by boosting relations with local<br />

and international partners.<br />

South Africa has the potential to attract more<br />

green investments by implementing policies and<br />

initiatives that promote the use of clean energy and<br />

sustainable development. This could include setting<br />

clear renewable energy targets, providing lucrative<br />

financial incentives for clean energy development<br />

and creating a predictable regulatory environment.<br />

By implementing policies and initiatives<br />

that promote clean energy and sustainable<br />

development, South Africa can accelerate the<br />

massive rollout of renewable energy, crucial to<br />

end the crippling loadshedding crisis. But this will<br />

require a comprehensive and coordinated approach<br />

that involves the government, private sector<br />

and civil society. Only then can SA build a much<br />

more attractive environment for green investors,<br />

accelerate the drive to a low-carbon economy, and<br />

end loadshedding which has become the biggest<br />

handbrake on the economy. ■<br />

From 2024 Golden Arrow will add 60 e-buses<br />

to its fleet every year. Credit: Nick Fordyce/<br />

Green<strong>Cape</strong>.<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


WECBOF<br />

makes it happen!<br />

The <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong><br />

Opportunities Forum (WECBOF)<br />

provides a platform for businesses<br />

to establish and maintain contact with<br />

fellow entrepreneurs; to have access to<br />

opportunities, information and training;<br />

and to have representation on a number<br />

of relevant forums of government and<br />

other associations focussed on growing<br />

and enhancing the commercial sector,<br />

with a specific focus on small-, medium-,<br />

and micro enterprises (SMMEs).<br />

WECBOF is widely recognised and<br />

respected as a powerful voice for<br />

business in the <strong>Western</strong> <strong>Cape</strong>; we are a<br />

provincial service organisation with our<br />

focus and attention firmly on the national<br />

and international business pulse.<br />


+27 21 946 2519<br />

office@wecbof.co.za www.wecbof.co.za<br />

www.facebook.com/wecbof/<br />

@wecbof<br />

A powerful voice for business.<br />

Where entrepreneurs excel.


Special Economic Zones could<br />

lead the energy transition<br />

Gas, green hydrogen, renewable energy and electrical vehicle component<br />

manufacturing are all in the mix as Atlantis SEZ and<br />

Saldanha IDZ gear up to attract investors<br />

The Saldanha Bay Industrial Development Zone could become a green hydrogen hub. Credit: SBIDZ<br />

Both of the <strong>Western</strong> <strong>Cape</strong>’s Special<br />

Economic Zones (SEZs) have a role to play<br />

in the changes that are coming in the field<br />

of energy.<br />

The Atlantis Special Economic Zone and the<br />

Saldanha Bay Industrial Development Zone each<br />

has its own focus but both are based on attracting<br />

the private sector to invest by creating well-serviced<br />

land with good infrastructure. Both projects form<br />

a vital part of the <strong>Western</strong> <strong>Cape</strong> Government<br />

Economic Recovery Plan.<br />

Saldanha Bay Industrial Development Zone<br />

The Saldanha Bay IDZ helped create 2 000 jobs in<br />

the 2021/22 financial year. The IDZ is based on the<br />

existing industrial and port activities of Saldanha<br />

and the Port of Saldanha Bay, which is the main<br />

portal for the export of South Africa’s iron ore. The<br />

Saldanha Bay Industrial Development Zone (SBIDZ)<br />

is becoming a hub for a range of maritime repair<br />

activities and oil rig maintenance and repair.<br />

The <strong>Western</strong> <strong>Cape</strong> has been lobbying hard for<br />

Saldanha Bay to be a site for a gas-to-power plant<br />

for some years. If a gas plant were to be built at<br />

Saldanha, then it could be a catalyst for the use of<br />

gas in many other sectors such as manufacturing<br />

and residential.<br />

However, it could be that another energy<br />

source is going to take the place of gas for the<br />

SBIDZ. Experts have reported that the Saldanha<br />

Bay region has excellent solar and wind resources<br />

which could produce large amounts of renewable<br />

energy electricity at competitive costs.<br />

Two industrial giants agreed in 2022 to<br />

cooperate to find ways to produce sustainable<br />

chemicals and fuels, together with “green steel”. A<br />

key element for both Sasol and ArcelorMittal SA<br />

will the production of so-called “green hydrogen”,<br />

namely hydrogen generated via renewable<br />

energy sources.<br />

The cooperation of Sasol and ArcelorMittal SA<br />

could have massive implications for the Saldanha<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



region, with Sasol following up its agreement<br />

with the steel manufacturing with the signing, in<br />

the same week in October, of a Memorandum of<br />

Understanding with the SBIDZ to work together to<br />

establish a green hydrogen hub.<br />

The National Department of Trade, Industry and<br />

Competition (dtic) and the provincial government<br />

have collectively invested R500-million in core<br />

infrastructure, a lease agreement has been signed<br />

with Transnet National Ports Authority (TNPA), and<br />

a phased approach to development has begun.<br />

The concept of the SBIDZ works well within two<br />

broader projects: Operation Phakisa and Project<br />

Khulisa, the targeted growth strategy of the <strong>Western</strong><br />

<strong>Cape</strong> Provincial Government which includes<br />

servicing and repairing of oil rigs as a priority.<br />

Atlantis Special Economic Zone<br />

The scheduling of the Atlantis Special Economic<br />

Zone (SEZ) State Owned Company (SOC) Limited<br />

as a provincial business enterprise was approved by<br />

National Treasury on 15 December 2021.<br />

The ASEZCo is driving sustainable development<br />

and job creation by harnessing the opportunities in<br />

the growing green economy. The ASEZ Greentech<br />

theme aims to attract manufacturers wanting to<br />

supply their technologies to independent power<br />

producers bidding on the national renewable<br />

energy programme, the Renewable Energy<br />

Independent Power Producer Procurement<br />

Programme (REIPPPP).<br />

One of the first investors in the ASEZ was GRI<br />

Towers South Africa, a manufacturer of windturbine<br />

towers, a perfect fit for the intention to<br />

promote renewable energy and green technology<br />

manufacturing sectors.<br />

By early 2022, the zone had attracted more<br />

than R790-million in investment, with two<br />

investors expanding in the previous 12 months,<br />

creating over 400 jobs in the process. Treasury’s<br />

approval should spark more activity and the SEZ<br />

plans to add an additional three investors in the<br />

2022/23 financial year.<br />

As global demand for electric vehicles increases,<br />

so South African manufacturers will start having<br />

to import or make compatible components. The<br />

ASEZ is positioning itself to be the preferred site for<br />

electrical vehicle component manufacturing.<br />

Another element that is being encouraged at<br />

ASEZ is resource-efficient cleaner production. The<br />

zone subscribes to UNIDO’s Eco-Industrial Park (EIP)<br />

principles and four green utility infrastructure goals<br />

underpin the management plan: reducing carbon<br />

emissions while providing energy security; longterm<br />

water security and efficient water use; reduce<br />

waste to landfill; working with nature through an<br />

indigenous landscaping plan.<br />

Energy policies<br />

The province and the City of <strong>Cape</strong> Town are<br />

lobbying national government for a greater role for<br />

municipalities in the generation and distribution of<br />

energy. The potential of renewable energy is being<br />

realised through the national independent power<br />

producer programme.<br />

Investing in resilience<br />

A market intelligence report covering energy,<br />

renewable energy, water and waste was created<br />

by Green<strong>Cape</strong> to map the assets and challenges in<br />

these areas.<br />

In addition to trying to attract green investment<br />

into the province, the province is working for<br />

improved regulations related to small-scale<br />

embedded generation (SSEG). <strong>Cape</strong> Town also wants<br />

to be able to rent out its infrastructure to a power<br />

producer who can supply a user via that infrastructure.<br />

Much of this work is done by a unit called the<br />

Sustainability Energy Markets within the Energy<br />

Directorate. Another area of focus for this group is to<br />

investigate energy use by low-income households.<br />

The <strong>Cape</strong> Peninsula University of Technology’s<br />

Energy Institute is a leader in research in the<br />

field of electricity. The South African Renewable<br />

Technology Centre (SARETEC) on the Bellville<br />

campus of CPUT offers courses such as Wind<br />

Turbine Service Technician and Solar Photovoltaic<br />

Service Technician and various short courses such<br />

as Bolting Joint Technology.<br />

The Centre for Renewable and Sustainable<br />

Energy Studies is at the University of Stellenbosch<br />

where a new School for Climate Studies has been<br />

launched. The University of <strong>Cape</strong> Town has the<br />

Energy Research Centre and the University of the<br />

<strong>Western</strong> <strong>Cape</strong> is doing research on the possibilities<br />

of hydrogen as an energy source. ■<br />

15 WESTERN CAPE BUSINESS <strong>2023</strong>

FOCUS<br />

South Africa is on the path to<br />

green hydrogen exports<br />

Thomas Roos, Principal Research Engineer at the Council for Scientific and<br />

Industrial Research (CSIR), reports on cooperation with three German ministries.<br />

Thomas Roos, Principal Research Engineer, CSIR<br />

Under the Just Energy Transition Partnership<br />

announced at COP26 in Glasgow, the governments<br />

of UK, France, Germany, the USA<br />

and the EU have agreed to provide $8.5-billion<br />

in financing in the form of grants and soft loans,<br />

to assist South Africa to decarbonise the electricity<br />

sector by early retirement of coal-fired power plants<br />

and expansion of renewables, to accelerate the introduction<br />

of electric vehicles and to facilitate the adoption<br />

of green hydrogen. In February, the Department<br />

of Science and Innovation released the Hydrogen<br />

Society Roadmap. In November at the South African<br />

Green Hydrogen Summit, President Ramaphosa announced<br />

that the Just Energy Transition Investment<br />

Plan, recently released for public comment, has identified<br />

green hydrogen as one of the four “big frontiers”<br />

of a just energy transition, indicating that it has huge<br />

growth and investment potential.<br />

CSIR research is showing ways that South Africa<br />

can become a significant exporter of green hydrogen<br />

and the body is already involved in projects with<br />

several German ministries.<br />

It may therefore legitimately be asked: “What<br />

is green hydrogen, and why is it important?” While<br />

the term green hydrogen is often used to describe<br />

hydrogen produced from any non-fossil-fuel-based<br />

source (such as biogenic or nuclear), in this context<br />

it is more strictly defined as hydrogen produced by<br />

splitting water by electrolysis into hydrogen and<br />

oxygen, using electricity from renewable sources.<br />

Green hydrogen may therefore be regarded as<br />

renewable electricity stored in chemical form.<br />

Green hydrogen is important for the<br />

decarbonisation required by the Paris Agreement<br />

(signed and ratified by 193 countries) and the<br />

European Green Deal (which commits the EU to<br />

be carbon-free by 2050). The most efficient and<br />

generally lowest-cost decarbonisation approach<br />

is to convert current fossil-driven processes<br />

to instead be directly driven by renewable<br />

electricity. There are two scenarios, however,<br />

where this direct renewable electrification is not<br />

always possible or feasible.<br />

Geography dictates<br />

The first scenario involves geographic locations<br />

where energy demand exceeds feasible renewableelectricity<br />

supply. This is the case for Japan, the<br />

world’s third-largest economy and a signatory to<br />

both the Kyoto Protocol and the Paris Agreement. It<br />

is also in the top four importers globally of the three<br />

major chemical energy vectors (coal, oil and natural<br />

gas). Its decarbonisation options are constrained: it<br />

has very limited natural energy resources and the<br />

Fukushima disaster significantly dampened public<br />

appetite for nuclear power. As a result, Japan plans<br />

to move its economy towards hydrogen – mobility<br />

by fuel cell electric vehicles, homes powered by<br />

fuel cells (with the waste heat produced providing<br />

domestic water heating) and central power<br />

generation from combined-cycle power stations,<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


FOCUS<br />

Credit: Shutterstock<br />

fired by green ammonia. To allow this, from 2030<br />

Japan will import about 300 000 tons of hydrogen<br />

per year (at a target price of $3 per kilogram), rising<br />

to between five-million and 10-million tons of<br />

hydrogen per year by 2050.<br />

This presents an opportunity for South Africa:<br />

CSIR modelling has shown that the combination<br />

of South Africa’s excellent solar and wind resources<br />

and the expected cost reductions over time in solar<br />

PV, wind and electrolyser equipment allow green<br />

ammonia produced in South Africa to be delivered<br />

to Japan in 2030, meeting the Japanese cost target.<br />

Difficult sectors<br />

The second scenario involves two broad categories<br />

of hard-to-abate economic sectors. The first category<br />

is heavy-duty, long-range transport where the use<br />

of batteries is ruled out by range, power density or<br />

charging time limitations, such as commercial aviation,<br />

maritime shipping and long-distance trucking.<br />

The second category is a subset of carbonintensive<br />

industrial processes, such as iron and<br />

steelmaking, cement manufacture, ammonia<br />

production and the manufacture of plastics.<br />

Green hydrogen, together with its derivatives<br />

such as green ammonia, green methanol and<br />

sustainable aviation fuel, provides a pathway to<br />

decarbonise these sectors.<br />

For Germany to meet its decarbonisation<br />

targets, the National Hydrogen Strategy of<br />

the German Government states that between<br />

2.7-million and 3.3-million tons per year (90-110<br />

TWh/year) of green hydrogen will be required by<br />

2030, but that only a maximum of 420 000 tons per<br />

year (14 TWh/year) can be generated in-country<br />

(14% of this amount). By far the bulk of the green<br />

hydrogen will have to be imported, some from<br />

elsewhere in the EU such as Portugal, Spain and<br />

the Ukraine; and the remainder from renewablerich<br />

countries in a development relationship with<br />

Germany, such as South Africa.<br />

Three separate German federal ministries are<br />

funding projects to develop the green hydrogen<br />

economy in South Africa: BMWK (Ministry for<br />

Economic Affairs and Climate Action), BMZ<br />

(Economic Cooperation and Development) and<br />

BMBF (Research and Education), and CSIR is<br />

involved in each of these. In a project funded<br />

by BMWK, CSIR and Meridian Economics were<br />

contracted by KfW Development Bank to solicit,<br />

evaluate and rank applications from hydrogen<br />

developers for 200-million euros in concessional<br />

financing to fund green hydrogen projects in<br />

South Africa. From 55 initial applications, a longlist<br />

of 20 projects passed the initial filtration<br />

process, leading to a shortlist of between seven<br />

and 12 projects, depending on the breakdown<br />

of grant versus concessional-loan financing.<br />

The oversubscription of the funding shows<br />

significant market appetite.<br />

CSIR is well positioned to support the energy<br />

transition in this way, as the development and<br />

implementation of green hydrogen will draw on<br />

many of CSIR’s capabilities. ■<br />

17 WESTERN CAPE BUSINESS <strong>2023</strong>

Improving the business environment<br />

and supporting members<br />

The <strong>Cape</strong> Chamber of Commerce and Industry is working with<br />

members to promote growth and build a smarter economy.<br />

Image: Shawn Harrison on Unsplash<br />

The <strong>Cape</strong> Chamber of Commerce and<br />

Industry, Africa’s oldest member-based<br />

business chamber, was established in 1804,<br />

firmly cementing our place as a catalyst<br />

for economic growth for over two centuries. We<br />

pride ourselves on being an instrumental player<br />

in establishing our region as one of sub-Saharan<br />

Africa’s major centres of trade, industry and<br />

innovation – a legacy that continues to this day.<br />

As a dynamic organisation in a fast-changing<br />

world, our focus is on remaining relevant to<br />

the current challenges affecting business. Our<br />

key mandate is to improve the overall business<br />

environment, promoting growth and sustainability,<br />

and supporting our members’ interests. Our<br />

strategic interventions include lobbying key<br />

government departments and institutions,<br />

creating public-private dialogue through task<br />

teams and spearheading discussion forums to<br />

address system blockages. Through dialogue we<br />

strive to facilitate consensus around critical issues,<br />

and through targeted action we effect meaningful<br />

change. Strengthening public-private dialogue in<br />

turn strengthens business competitiveness and<br />

steers us towards a smarter network economy.<br />

We mobilise all economic stakeholders –<br />

private sector, business organisations, local<br />

government and national government – to<br />

collectively address sector-specific, industryidentified<br />

constraints and bottlenecks. This<br />

entails setting up task teams to identify needs<br />

and effect legislative and regulatory change<br />

on key issues, a process galvanised by the<br />

post-pandemic economic milieu. Encouraging<br />

businesses to join hands with us and strengthen<br />

the dialogue through collective action makes all<br />

stakeholders more globally competitive.<br />

In line with our collaborative approach, and<br />

as part of our service offering, we provide a<br />

digital platform where members interact and<br />

share skills and services. Our website forums<br />

and data portals function as a much-needed<br />

digital library and notice board aimed at keeping<br />

our members informed. Skills development,<br />

enterprise development, knowledge-sharing and<br />

partnership through topical webinars, seminars,<br />

workshops and business networking events form<br />

part of our offerings.<br />

The Chamber’s professional team assists with a<br />

wide range of business enquiries, from local issues<br />

to international trade and investment. Our advice<br />

and information is current, timeous and relevant.<br />

Information is sourced on a continuous basis<br />

from a broad network of local and international<br />

partners. Our International Trade desk is the first<br />

point of contact for international business and<br />

we arrange opportunities for collaboration and<br />

networking, giving our members visibility and<br />

access to global markets.<br />

Together we can actively shape our future success.<br />


www.capechamber.co.za<br />

We are immensely proud of our 218 year history as the voice of organised business in the<br />

<strong>Western</strong> <strong>Cape</strong>. The <strong>Cape</strong> Chamber of Commerce and Industry continues to have relevance to<br />

the needs of business today - with a fi nger on the pulse and our eyes fi rmly to the future, we are<br />

a driving force of change and progress towards sustainable economic development.<br />

We facilitate connection in exports, targeted imports and investments, unlocking new<br />

opportunities for our members, locally and internationally. Through our vast network of dynamic<br />

partnerships, we give our members, both large and small, visibility and traction.<br />

In achieving our aim of growing the <strong>Western</strong> <strong>Cape</strong> economy sustainably, we know that creating<br />

an enabling environment for business to thrive is the key to economic prosperity.<br />

We have a targeted focus on:<br />

• enterprise development and capacity building<br />

• clustering and sectoral development<br />

• precinct development and geographic spread<br />

• competitiveness and value chains<br />

• advocacy to advance the needs of our members<br />

We have initiated partnerships with like-minded organisations, spearheaded public-private<br />

dialogue processes, and identifi ed pain points in the enabling environment. We are mobilising<br />

all stakeholders on behalf of our members to steer the <strong>Western</strong> <strong>Cape</strong> towards a smarter network<br />

economy.<br />

Join us to shape a better future.<br />



Overviews of the main economic<br />

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

Agriculture 22<br />

Wine and grapes 24<br />

Oil and gas 28<br />

Energy 32<br />

Manufacturing 34<br />

Construction and property 35<br />

Transport and logistics 36<br />

Tourism 38<br />

Education and training 40<br />

Development finance and SMME 44<br />

<strong>Business</strong> Process Outsourcing 45<br />

Banking and financial services 46<br />

An R80-million investment from the Bertha Foundation and the Jobs Fund enabled the construction of a business hub,<br />

Philippi Village, which includes 54 spaces available for affordable rental while the Container Walk provides 6m and 12m converted<br />

containers for communal workspaces, offices or storage space. A process of community engagement resulted in the addition of<br />

community facilities including a library, basketball court, amphitheatre and health services. Credit: Philippi Village


Agriculture<br />

Farmers are trying to save a canning factory.<br />

Tiger Brands announced in 2020 that it intended focussing<br />

on what it called “everyday branded food and beverages”.<br />

The result of that focus is that the company’s food-canning<br />

business is to be put up for sale.<br />

Fears were raised in the town of Ashton that up to 4 000 jobs<br />

would be lost and 300 farmers in the district would be wiped out<br />

if Langeberg & Ashton Foods canning facility were to close. Ashton<br />

is in the Langeberg Local Municipality within the <strong>Cape</strong> Winelands<br />

District Municipality. The company is a subsidiary of Tiger Brands, the<br />

country’s biggest producer of food.<br />

A local consortium of 160 fruit farmers was considering trying<br />

to buy the facility. Agri SA estimated they would need an amount<br />

approaching R300-million. This was proving difficult to raise but<br />

in July 2022, Tiger said it would keep the operation going for one<br />

more season.<br />

Suiderland Plase managed to build and start operating a new<br />

citrus packhouse despite the disruptions of Covid-19 and tough<br />

market conditions. Named Bergpak, the packhouse, pictured, is<br />

designed to pack 120 000 bins of fruit per year from year three, and<br />

the volume could grow as high as 280 000 bins in a season.<br />

The facility is in the vicinity of Piketberg and is the company’s<br />

third packhouse. It will house a variety of citrus cultivars which<br />

will run on two six-lane sorters. At Wespak, near Clanwilliam, and<br />

Suiderpak (Swellendam), the packhouses deal with 70 000 and<br />

60 000 bins respectively.<br />

The company grows, packs and markets fruit and recently has<br />

been expanding its plantings in soft citrus, lemons and table grapes.<br />

A fairly new growth area in agriculture is the production of<br />

liquid kelp products. Farmed kelp in Gansbaai is processed to create<br />

products that assist with root growth in crops. Afrikelp is a company<br />

that exports to more than 50 countries and claims that its products<br />

improve water and nutrient-use efficiency, together with equipping<br />

plants to better handle droughts.<br />

The South African Rooibos Council announced in 2022 that it<br />

would start paying a levy on the product to trusts for Khoi and San<br />

people. A payment of R12.2-million was paid in July and the future<br />

levy would amount to 1.5% of the farm gate price.<br />

This followed news that the long battle for protected status for<br />

rooibos in the EU finally reached an end. The best-known products<br />

that are forever linked to their home regions are champagne and<br />


Liquid kelp products are<br />

doing well.<br />

port, and France and Portugal<br />

have fought hard for those<br />

rights. Now the <strong>Western</strong> <strong>Cape</strong>’s<br />

herbal tea product enjoys<br />

the same privileges, which is<br />

great news for the roughly 450<br />

farmers working with rooibos<br />

(350 commercial plus 100<br />

small-scale farmers). The sector<br />

produces about 20 000 tons of<br />

rooibos every year, about half of<br />

which is exported.<br />

Credit: Langeberg & Ashton Foods<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



Economic impact<br />

Agribusiness and agro-processing are vital parts of the provincial<br />

economy with about 45% of South Africa’s agricultural exports moving<br />

through the province. The value-add in the sector amounts to more than<br />

R14-billion per annum (Invest <strong>Cape</strong> Town).<br />

Seven of the top 10 exports from the province are agricultural<br />

or agro-processed products. As Wesgro notes, the <strong>Western</strong> <strong>Cape</strong> is<br />

responsible for<br />

• Almost half of South Africa’s agribusiness exports<br />

• About 70% of South Africa’s beverages exports<br />

• About 85% of South Africa’s fisheries exports<br />

Agricultural products as a sector leads regional exports, second<br />

only to the petroleum sector.<br />

In addition, the region exports 70% of all South African beverages<br />

and spirits and 96% of its wine. The region produces 11 different<br />

commodities. Fruit, poultry, eggs, winter grains, viticulture and<br />

vegetables comprise more than 75% of total output.<br />

Exporters were introduced to some digital innovation in 2020 in the<br />

form of the <strong>Cape</strong> Export Network. CEN, a joint initiative of the <strong>Western</strong><br />


Aquaculture Association of Southern Africa: www.aasa-aqua.co.za<br />

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

Fresh Produce Exporters Forum: www.fpef.co.za<br />

South African Rooibos Council: www.sarooibos.co.za<br />

<strong>Western</strong> <strong>Cape</strong> Department of Agriculture: www.elsenburg.com<br />

Credit: Suiderland Plase<br />

<strong>Cape</strong> Provincial Government,<br />

Wesgro and Wines of South<br />

Africa (WoSA), is a platform that<br />

connects wine producers, buyers<br />

and importers.<br />

Assessed independently<br />

from the country, the <strong>Western</strong><br />

<strong>Cape</strong> is the world’s fifth-largest<br />

exporter of citrus fruits. Oranges<br />

are the province’s number one<br />

citrus export and soft citrus is<br />

growing. Europe remains the<br />

most important market but the<br />

Asia and Oceana markets are<br />

growing. The top five countries<br />

are the Netherlands, UK, Russia,<br />

UAE and China.<br />

Berries are a growing<br />

subsector and two-thirds of<br />

production occurs in the <strong>Western</strong><br />

<strong>Cape</strong>. More than 70% of the<br />

crop is exported and the major<br />

production companies are<br />

Berryworld South Africa, United<br />

Exports and Haygrove SA. Berries<br />

thrive between George and<br />

Swellendam and sales of chippers<br />

have grown because blueberries<br />

have to be vigorously pruned.<br />

There is plenty of scope for<br />

exports to grow. Current annual<br />

exports are 13 500t compared<br />

to over 200 000t for table grapes<br />

and about 300 000t for apples<br />

(South African Berry Producers’<br />

Association). Once producers<br />

pass muster with Chinese import<br />

authorities, volumes can be<br />

expected to grow. ■<br />

23<br />

WESTERN CAPE BUSINESS <strong>2023</strong>


Grapes and wine<br />

Logistics are testing farmers’ ingenuity.<br />


White wines fetched<br />

top prices at the<br />

2022 Nedbank <strong>Cape</strong><br />

Winemakers Guild Auction.<br />

Grape farmers, wine producers and exporters have had their<br />

hands full coping with a series of challenges that go beyond<br />

the normal worries about weather, unpredictable customer<br />

preferences, global competition and variable pricing.<br />

Logjams at the Port of <strong>Cape</strong> Town create headaches for exporters<br />

of time-dependent fruit and just as Covid-19 restrictions were<br />

coming to an end, Russia invaded Ukraine, putting some of the<br />

income derived from exports in jeopardy.<br />

Nearly 2% of South African wine is exported to Russia. In 2021<br />

the volume increased to nearly seven-million litres. With payment<br />

normally made through SWIFT, Russia’s expulsion from that system<br />

made transactions impossible.<br />

Despite these headwinds, the volumes of grapes inspected for<br />

export in the 2022/23 season were expected to decrease by only<br />

8% in comparison to 2021/22 season figures. This estimate was<br />

released by the South African Table Grape Industry Association (SATI),<br />

headquartered in Paarl, South Africa, which estimated a crop total of<br />

approximately 71.7-million cartons (4.5kg equivalent).<br />

SATI noted how farmers have focussed on crop-load management<br />

and quality to overcome logistical issues. Some regions are growing<br />

more white seedless grapes and producers are paying attention to the<br />

quality of grapes, both on-farm and during the cold-chain process.<br />

Exports of South African grapes and wine to China are on<br />

an upward trend. The imposition in 2020 of prohibitive tariffs on<br />

Australian imports by China helped to boost that trend.<br />

Credit: CWG<br />

Both wine and grape<br />

production are supported by<br />

the <strong>Western</strong> <strong>Cape</strong> Department<br />

of Agriculture which offers<br />

technology, research and<br />

development, agricultural<br />

training and analytical services at<br />

plant pathology and water and<br />

soil laboratories.<br />

Wine<br />

The wine and brandy industry<br />

has set about creating a new<br />

strategic framework in response<br />

to the various economic and<br />

geopolitical shocks. With wine<br />

tourism disappearing during<br />

Covid-19 lockdowns and input<br />

costs rising, the industry has<br />

chosen to strategise for a more<br />

sustainable future.<br />

Led by Vinpro, the wine<br />

industry organisation which<br />

represents South African wine<br />

grape producers, wineries and<br />

wine-related businesses, a new<br />

strategic framework, the Wine<br />

Industry Strategic Exercise<br />

(WISE2025), and the Agricultural<br />

and the Agro-Processing Master<br />

Plan (AAMP) have been created.<br />

For some time, South African<br />

winemakers have been aiming<br />

for better quality instead of<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


Avant-Garde SA_0218633165<br />

FROM<br />


TO YOURS<br />






Assisting producers to retain, grow and<br />

optimise markets is the most important<br />

function of the South African Table<br />

Grape Industry (SATI), an enabling grower<br />

association. SATI represents growers on<br />

key government and industry initiatives<br />

aimed at creating more opportunities from<br />

ownership to accessing new markets in a<br />

sustainable way.<br />

SATI assists growers with industry<br />

information, transformation, research,<br />

technology and technical transfer, as<br />

well as training and education with the<br />

objective to establish South Africa as the<br />

Preferred Country of Origin for the world’s<br />

best tasting grapes.<br />


63 Main Road, Paarl | P.O Box 2932, Paarl 7620<br />

+27 21 863 0366 info@satgi.co.za | satgi.co.za<br />

linkedin.com/company/satgi @sati_sa


greater volumes. Which is not to say that volume is being ignored.<br />

Wesgro and WOSA (Wines of South Africa) are cooperating on<br />

expanding the Chinese market.<br />

The SADC Economic Partnership Agreement gives produce from<br />

the region full or partial exemption from duties on exports into the<br />

EU. The three biggest markets by value and volume are the UK,<br />

Germany and the Netherlands.<br />

There are over 3 500 wine producers in South Africa, with the<br />

large majority located in the <strong>Western</strong> <strong>Cape</strong>. Wine is produced by<br />

estates, independent cellars and producer cellars or co-operatives.<br />

The Distell group runs five distilleries and seven wineries in the<br />

<strong>Western</strong> <strong>Cape</strong> and produces about a third of the country’s natural<br />

and sparkling wine.<br />

South Africa is the eighth-biggest wine producer globally and<br />

produces about 4% of the world’s wine.<br />

Membership of the <strong>Cape</strong> Winemakers Guild (CWG) is by invitation<br />

and includes some of the best winemakers in the country. Members<br />

get together to taste wines from around the world and share their<br />

knowledge and ideas.<br />


<strong>Cape</strong> Winemakers Guild: www.capewinemakersguild.com<br />

SA Wine Industry Information & Systems: www.sawis.co.za<br />

South African Table Grape Industry: www.satgi.co.za<br />

Vinpro: www.vinpro.co.za<br />

The Nedbank <strong>Cape</strong> Winemakers<br />

Guild Auction is one of the great<br />

events in the wine calendar. In<br />

2022, two of the top four wines<br />

were white wines and both were<br />

produced by female winemakers –<br />

Samantha O’Keefe of Lismore Estate<br />

Vineyards and Andrea Mullineux<br />

(Mullineux & Leeu).<br />

The Lismore Valkyrie<br />

Chardonnay 2021 from Greyton<br />

was knocked down for an average<br />

of R1 743 per bottle while the<br />

Mullineux Trifecta Chenin Blanc<br />

2020 from the Swartland sold at<br />

R1 633.<br />

The highest average price<br />

realised was R2 457 per bottle for<br />

the Kanonkop CWG Paul Sauer<br />

2019. Auction prices were 30%<br />

higher than in 2021, as 30% of<br />

the lots were sold to international<br />

bidders. Strauss & Co auctioned<br />

513 lots at a hammer price just<br />

shy of R14-million, resulting in an<br />

average bottle price of R1 227. ■<br />

Grower association is creating opportunities<br />

The South African Table Grape Industry<br />

(SATI) represents growers on key<br />

government and industry initiatives<br />

aimed at creating more opportunities<br />

in the sector, from ownership to accessing<br />

new markets in a sustainable way.<br />

SATI assists growers with crucial industry<br />

information, transformation, statistics, research,<br />

technology and technical transfer as well as<br />

training and education with the aim of establishing<br />

South Africa as the Preferred Country of Origin for<br />

the world’s best-tasting grapes.<br />

South Africa boasts five major table grapegrowing<br />

regions in South Africa. Their differences<br />

in soil and climate enable growers to supply the<br />

markets from November to May. The early season is<br />

dominated by varieties from the Northern Provinces<br />

and the valleys of the Orange and Olifants rivers.<br />

This is followed by later-season varieties grown<br />

in the Berg River and Hex River Regions. Both of<br />

these regions are situated in the <strong>Western</strong> <strong>Cape</strong>,<br />

positioning the province as a large contributor to<br />

South Africa’s table grape industry.<br />

The Berg River Region comprises 4 674<br />

hectares of vines planted and is well-known for red<br />

seedless varieties. The region contributes to direct<br />

employment by supporting approximately 3 772<br />

permanent and 19 521 seasonal jobs.<br />

The Hex River Region, also well-known for<br />

red seedless varieties, comprises 6 394 hectares<br />

of vines planted. The region contributes to direct<br />

employment by supporting approximately 4 791<br />

permanent and 13 885 seasonal jobs.<br />

Collectively, the two regions exported a total<br />

of 44 409 320 4.5kg equivalent cartons of table<br />

grapes in the 2021/22 season.

Shaping a sustainable wine future<br />

Five areas are to be targeted to reach strategic goals.<br />

By Rico Basson, Vinpro MD<br />

The South African wine industry is a unique<br />

asset to the country. It is the eighth-largest<br />

wine producer in the world and lures thousands<br />

of local and international visitors to<br />

the <strong>Cape</strong> Winelands, generating significant revenue<br />

for the economy and helping to build and maintain<br />

a strong brand reputation for the country.<br />

The South African wine and brandy industry<br />

contributes R55-billion to GDP and R17.9-billion to<br />

tax every year. The industry employs 269 096 workers<br />

with a total household income of R19.1-billion. It is<br />

the second-largest agri-exporter in the country to<br />

the value of R10.2-billion and wine tourism employs<br />

12 878 employees, contributing R7.2-billion to GDP.<br />

During the Covid-19 pandemic, the wine<br />

industry lost nearly a quarter of its sales due to the<br />

alcohol bans while tourism stopped. Rising input<br />

costs together with downward pressure on prices<br />

put further pressure on an already fragile industry.<br />

This prompted the wine industry to establish<br />

a new strategic framework, the Wine Industry<br />

Strategic Exercise (WISE2025) and the Agricultural<br />

and Agro Processing Master Plan (AAMP). Recent<br />

shocks have set back the industry’s turnaround<br />

strategy and required a supportive policy<br />

environment to help stabilise the industry and<br />

place it on a sustainable footing.<br />

Five areas have been identified to reach the<br />

new strategic goals for the wine industry. These<br />

include rebalancing the local market-pricing<br />

mix towards higher-value cultivars, capturing<br />

more growth at higher price points, growing<br />

higher-priced exports in key markets enabled<br />

by improved access, more than doubling wine<br />

tourism from the 2015 baseline by 2025, as well as<br />

accelerating black ownership.<br />

WISE2025 has the vision to create a robust,<br />

adaptable and competitive wine and brandy<br />

industry. For this we must optimise our diverse<br />

resources to deliver sustainable value. Our new<br />

strategy has four very important strategic outcomes:<br />

a transformed and responsible value chain, a loyal<br />

and growing local market base, an established<br />

and enviable position in the global market and<br />

sustainability must be at the core of all we do.<br />

Wine industry priorities included in the<br />

AAMP include market expansion, improving<br />

market access and trade facilitation, resolving<br />

policy ambiguities and creating an investmentfriendly<br />

climate. ■<br />

About Vinpro<br />

Vinpro is a non-profit company which represents<br />

close to 2 600 South African wine producers,<br />

cellars and industry stakeholders. It keeps its<br />

members and the broader industry informed<br />

of industry trends and technical expertise and<br />

renders specialised services ranging from soil<br />

science to viticulture, agricultural economics and<br />

transformation and development.<br />


Telephone: +27 21 276 0429<br />

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

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

27<br />

WESTERN CAPE BUSINESS <strong>2023</strong>

Oil and gas<br />

The Astron refinery is set to reopen.<br />

Credit: Astron Energy<br />

Astron Energy announced that it intended reopening its<br />

<strong>Cape</strong> Town refinery before the end of 2022, having closed<br />

the facility for repairs in 2020 after a fire.<br />

Astron’s statement had added significance in the context<br />

of the closure of Durban’s two refineries in 2020 and 2021, which<br />

left the Sasol/Total inland Sapref refinery as the country’s only<br />

functioning facility. When that refinery temporarily shut down in July<br />

2022 because of delays in the supply of crude oil, more concern was<br />

raised about the country’s refining capacity.<br />

Astron refinery had been producing about 100 000 barrels per day<br />

using feedstock from West Africa, a source which will be reinstated.<br />

<strong>Cape</strong> Town’s oil refinery was previously named Chevron, but with the<br />

$973-million purchase of Chevron’s downstream assets in South Africa<br />

by Off The Shelf Investments (OTS), it was rebranded as Astron. The<br />

Caltex service-station brand was retained. OTS is the Black Economic<br />

Empowerment (BEE) partner of mining giant Glencore, who financed<br />

the deal. The refinery in Milnerton produces petrol, diesel, jet fuel and<br />

liquefied gas for the <strong>Western</strong> <strong>Cape</strong> and for export to other African<br />

countries. The <strong>Western</strong> <strong>Cape</strong> spends R76- billion annually on crude oil<br />

imports and exports refined petroleum to the value of R13.2-billion.<br />

Exploration<br />

Important public meetings relating to environmental concerns were<br />

set to take place in late 2022 and January <strong>2023</strong>. Recent court cases<br />

relating to seismic activity off South Africa’s Wild Coast has shone<br />

the spotlight on the public participation process when it comes to<br />

offshore exploration for gas and oil.<br />

WSP Group Africa has been appointed by the consortium which<br />

has discovered gas reserves off the coast of Mossel Bay to run the<br />


TotalEnergies and its<br />

partners have submitted a<br />

request to produce.<br />

environmental and social impact<br />

assessment (ESIA) for their<br />

proposed offshore production.<br />

Having notified Petroleum Agency<br />

South Africa of their intention to<br />

produce, TotalEnergies EP South<br />

Africa (TEEPSA), together with its<br />

joint venture partners, QatarEnergy,<br />

CNR International (South Africa)<br />

Limited and a South African<br />

consortium, MainStreet 1549, are<br />

obliged to run a public process,<br />

having successfully explored the<br />

area allocated to them off the<br />

south-east coast of South Africa.<br />

The same companies and<br />

others are also applying for<br />

environmental authorisation to<br />

undertake exploration activities in<br />

Block 5/6/7 between <strong>Cape</strong> Town<br />

and <strong>Cape</strong> Agulhas, approximately<br />

60km from the coast at its closest<br />

point and 170km at its furthest, in<br />

water depths between 700m and<br />

3 200m.<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



Furthermore, potentially important finds were found off the coast<br />

of Namibia early in 2022. Shell announced that it had made significant<br />

oil and gas discoveries in the southernmost sector of its Orange Basin<br />

offshore Namibia but the area is in the same sedimentary basin as South<br />

African offshore territory. The geological sedimentary basin extends to<br />

offshore <strong>Cape</strong> Town and out to sea, stretching over 160 000km². The<br />

rights to the South African southern section of the basin are held by Shell<br />

and its partners TotalEnergies and PetroSA.<br />

Petroleum Agency South Africa (PASA), which encourages<br />

exploration and regulates the oil and gas industry, has noted the<br />

significance of international oil companies committing to exploration<br />

off South Africa’s coast.<br />

Oil and gas infrastructure<br />

The Saldanha Bay Industrial Development Zone Licensing Company<br />

(SBIDZ-LC) has announced the start of phase one of the development<br />

of the main infrastructure of the IDZ. Located within the southern<br />

hemisphere’s deepest and biggest natural port, the company will<br />

spend R3.5-billion on developing 356ha of space to enable the port<br />

to offer a wider variety of services. A floating dock, ship-lift facilities<br />

and marine service jetties will be among the new services created.<br />

Ultimately, the seven-part development plan will see the SBIDZ<br />

become a South African Freeport, a Special Economic Zone and<br />

customs-controlled area within a port, dedicated to the oil, gas and<br />

marine sector. The three main exploration and production customer<br />

groups being targeted are:<br />

• Drilling companies: Office space, warehousing, logistical facilities<br />

and support services.<br />

• Petroleum companies: Office and warehousing space for an<br />

operational base close to active fields.<br />

• Oilfield service companies: 24-hour operational nodes along the<br />

coast, in the form of office spaces and warehousing bases. In sites<br />

such as Offshore Supply Bases [OSSBs] and/or quaysides for supply<br />

and refuelling purpose.<br />

The SBIDZ-LC has established the Saldanha Bay Innovation Campus<br />

which aims to promote collaboration between academic institutions,<br />

industry, government and the local community specific to marine and<br />


Petroleum Agency South Africa: www.petroleumagencysa.com<br />

Saldanha Bay Industrial Development Zone: www.sbidz.co.za<br />

South African Oil and Gas Alliance: www.saoga.org.za<br />

<strong>Western</strong> <strong>Cape</strong> Maritime Cluster: wcmc.org.za<br />

Block 5/6/7 exploration location.<br />

Credit: TotalEnergies<br />

energy research, development<br />

and innovation. It also intends<br />

supporting entrepreneurs<br />

and new ventures through<br />

incubation and acceleration<br />

programmes.<br />

The <strong>Western</strong> <strong>Cape</strong>’s status<br />

as an oil and gas hub has been<br />

enhanced with the opening<br />

of an open-access liquefied<br />

petroleum gas (LPG) import and<br />

storage terminal at Saldanha Bay.<br />

The Bergun terminal,<br />

comprising 12 tanks located<br />

on the Eastern Mole of the Port<br />

of <strong>Cape</strong> Town, is connected by<br />

pipeline to the Astron refinery.<br />

Large quantities of oil are<br />

transported around the <strong>Cape</strong><br />

of Good Hope every year: 32.2%<br />

of West Africa’s oil and 23.7% of<br />

oil emanating from the Middle<br />

East. Problems in the container<br />

ship market have caused<br />

some stress in the local sector<br />

but the long-term prospects<br />

for shipping and oil and gas<br />

are still strong enough for<br />

national government to pursue<br />

Operation Phakisa (which<br />

includes a strong maritime<br />

economy push) and for Transnet<br />

National Ports Authority to<br />

spend heavily on upgrading the<br />

nation’s ports. ■<br />

29 WESTERN CAPE BUSINESS <strong>2023</strong>

FOCUS<br />

Gas could bolster the<br />

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

Applications to Petroleum Agency South Africa for production rights hold<br />

enormous potential for a wide-ranging economic stimulus.<br />

The revival of the Mossgas gas-to-liquid refinery outside Mossel Bay could spark a gas-market boom.<br />

In September 2022 TotalEnergies and its partners<br />

submitted an application for a production right<br />

to Petroleum Agency South Africa (PASA) for its<br />

recent discoveries in Block 11B/12B off the coast<br />

of Mossel Bay.<br />

This is an event that is even more exciting than<br />

the initial finds of significant resources in the blocks<br />

because if production happens, then the gas-toliquid<br />

(GTL) refinery at Mossel Bay that has run out<br />

of feedstock could live again. This would have a<br />

significant economic impact, not only on the town,<br />

region and province, but on the national economy.<br />

The project is not quite “shovel ready” as the<br />

company and its associates are still to go through<br />

what is known as a “Gas Market Development<br />

Period”. This is essentially a feasibility study.<br />

Block 11B/12B is in the Outeniqua Basin<br />

approximately 175 kilometres off the southern<br />

coast of South Africa, with the coastal town of<br />

Mossel Bay being the closest settlement. The block<br />

contains the Brulpadda and Luiperd discoveries<br />

which were made in 2019 and 2020. Both wells<br />

were drilled by Odfjell Drilling’s Deepsea Stavanger<br />

semi-submersible rig.<br />

Although the consortium is giving up the rights<br />

to a certain part of the original block, TotalEnergies’<br />

selected block will still cover about 12 000km2.<br />

Economic benefits<br />

An oil-discharge terminal was created in the sea<br />

off Mossel Bay in 1960 but it was not until the<br />

commissioning of the GTL refinery in 1992 that<br />

the town experienced a boom related to these<br />

gas facilities.<br />

After many years of production, the Mossgas<br />

project ran out of feedstock. In 2019 President Cyril<br />

Ramaphosa announced in parliament that the<br />

facility would close down. Some estimates put the<br />

number of potential job losses at 1 200.<br />

However, if the above-mentioned feasibility<br />

returns a positive answer, the GTL refinery could be<br />

restored to full production and profitability, saving<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


those jobs. A complete shutdown<br />

and abandonment of this refinery<br />

would not only lead to job losses at<br />

the refinery, but the effects would<br />

reverberate throughout the town of<br />

Mossel Bay and the Southern <strong>Cape</strong><br />

region since the refinery contributes<br />

about R2-billion a year, or 26% of<br />

the Mossel Bay economy, and 6% to<br />

the Southern <strong>Cape</strong> economy when<br />

producing at full capacity.<br />

If this gas were to be piped to Mossgas,<br />

then instead of spending about R12-billion on<br />

decommissioning the plant, the facility could<br />

instead start generating R22-billion in taxes<br />

and royalties and save South African taxpayers<br />

R26.5-billion through not having to import oil<br />

and refined products.<br />

PASA estimates that the gas found in these<br />

blocks could produce 560-million cubic feet per<br />

day of gas for more than 15 years. TotalEnergies’<br />

expenditure on stream phase one could amount<br />

to $3-billion in 2027 and create 1 500 direct jobs,<br />

5 000 indirect jobs and increase the country’s gross<br />

domestic production by R22-billion.<br />

The plan is to run the gas via a pipeline to a<br />

new fixed-steel platform, and from there to use<br />

the existing pipeline to get the gas to Mossgas.<br />

Up to 18 000 barrels per day of condensate<br />

and 210-million cubic feet per day (MMcfd)<br />

are expected to be pumped to the facility. Gas<br />

condensate is a hydrocarbon liquid stream<br />

separated from natural gas and is used for making<br />

petrol, diesel and heating oil.<br />

Furthermore, gas from the discovered blocks<br />

has the potential to replace more than 2 300MW<br />

of diesel-fired electricity generation in Gourikwa,<br />

Dedisa and Ankerlig, thereby reducing the carbon<br />

emissions from these plants by more than 50%<br />

while eliminating sulphur oxide and nitrogen<br />

oxide emissions, which are also harmful to the<br />

environment. In this way, gas can be seen as a<br />

bridge to a lower-carbon future in South Africa.<br />

PASA’s role<br />

At the same time as TotalEnergies was applying to<br />

start producing, commercial operations of Tetra4’s<br />

natural gas project in the north-eastern Free<br />

State came on stream. These two events prove<br />

that investors continue to see the value of South<br />

African resources.<br />

Both of these projects came about through<br />

the licensing authority of Petroleum Agency South<br />

Africa (PASA), reporting to the Minister of Mineral<br />

Resources and Energy (DMRE). PASA regulates and<br />

monitors exploration and production activities and<br />

is the custodian of the national exploration and<br />

production database for petroleum.<br />

In terms of strategy, the agency actively<br />

seeks out technically competent and financially<br />

sound clients to whom it markets acreage,<br />

while ensuring that all prospecting and mining<br />

leases are for the long-term economic benefit<br />

of South Africa. As custodian, PASA ensures that<br />

companies applying for gas rights are vetted<br />

to make sure they are financially qualified and<br />

technically capable, as well having a good track<br />

record in terms of environmental responsibility.<br />

Oil and gas exploration requires enormous<br />

capital outlay and can represent a risk to workers,<br />

communities and the environment. Applicants<br />

are therefore required to prove their capabilities<br />

and safety record and must carry insurance for<br />

environmental rehabilitation.<br />

Environmental issues are increasingly playing<br />

a big part in discussions about how best to utilise<br />

South Africa’s natural resources. As part of an<br />

attempt to engage in a broader discussion on<br />

policy issues, a joint colloquium was held in 2022<br />

on the subject of how to balance South Africa’s<br />

energy needs with the country’s climate change<br />

commitments. The colloquium, and several<br />

online events which prepared for and anticipated<br />

the main event, was jointly hosted by the DMRE,<br />

the Department of Forestry, Fisheries and the<br />

Environment (DFFE) and PASA. ■<br />

Credit: Shutterstock<br />

31 WESTERN CAPE BUSINESS <strong>2023</strong>

Energy<br />

Batteries could make a difference.<br />

Credit: APPA<br />

Battery energy storage systems (BESS) may become part<br />

of the arsenal of the City of <strong>Cape</strong> Town in its battle against<br />

loadshedding. Although BESS only makes up a small part of<br />

the national energy plan (Integrated Resource Plan 2019), if<br />

combined with renewables, it could prove a useful complement to<br />

the city’s other plans.<br />

At the launch of the 2022 Solar Power Africa Conference, <strong>Cape</strong><br />

Town Mayor Geordin Hill-Lewis unveiled plans for the city to procure<br />

300MW of power from independent power producers. The city – and<br />

the province – intend to be the first entities to be freed from the<br />

stresses and strains that come with loadshedding. It was estimated in<br />

2021 that loadshedding cost the <strong>Western</strong> <strong>Cape</strong> economy R75-million<br />

per stage, per day.<br />

Tenders for the city have been opened and at provincial level,<br />

24 municipalities have now been given the legal go-ahead to allow<br />

for private generation of solar PV energy. In addition, 19 of those<br />

municipalities allow private generators to be compensated for<br />

feeding back into the grid, a major breakthrough for the potential<br />

take-up by the public.<br />

A Request for Information for the Municipal Energy Resilience<br />

(MER) initiative has been issued, which has generated interest from<br />

more than 100 potential energy generation projects. MER has been<br />

rolled out in six municipalities, Drakenstein, Mossel Bay, Overstrand,<br />

Saldanha Bay, Stellenbosch and Swartland. The Green Economy<br />

Unit in the <strong>Western</strong> <strong>Cape</strong> Department of Economic Development<br />

and Tourism is leading the project.<br />


The provincial government<br />

has a Green Economy Unit.<br />

The Green Economy Unit is<br />

not the <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government’s only investment<br />

in resilience. A market<br />

intelligence report covering<br />

energy, renewable energy,<br />

water and waste was created by<br />

Green<strong>Cape</strong> to map the assets<br />

and challenges in these areas.<br />

In addition to trying to<br />

attract green investment into<br />

the province, the <strong>Western</strong><br />

<strong>Cape</strong> is working for improved<br />

regulations related to smallscale<br />

embedded generation<br />

(SSEG). The City of <strong>Cape</strong> Town<br />

also wants to be able to rent<br />

out its infrastructure to a power<br />

producer who can supply a<br />

user via that infrastructure. This<br />

is known as “wheeling”. A start<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



was made with the Darling wind farm, but more work needs to be<br />

done on the legislative framework.<br />

New gas sources<br />

The <strong>Western</strong> <strong>Cape</strong> is lobbying hard for the national Department of<br />

Energy to allow Saldanha Bay to be a site for a gas-to-power plant. If a<br />

gas plant is built at Saldanha, then it could be a catalyst for the use of gas<br />

in many other sectors such as manufacturing and residential.<br />

Recent gas finds by TotalEnergies off the coast of Mossel Bay and<br />

off the west coast will accelerate the drive to switch to gas.<br />

The idea of home-owners being able to sell surplus electricity<br />

from rooftop solar systems was previously restricted to the <strong>Cape</strong><br />

metropolitan area. The application of the provincial government’s<br />

Energy Security Game Changer has expanded this provision (via<br />

bylaws) to the whole province.<br />

The City of <strong>Cape</strong> Town has signed an agreement with the United<br />

States Agency for International Development and the Southern<br />

Africa Energy Programme to look for ways to make solar PV more<br />

accessible. High costs of installation often preclude residents from<br />

taking the solar PV option for their homes.<br />

The <strong>Western</strong> <strong>Cape</strong> is positioning itself as a green business hub and<br />

is working to find energy alternatives for households and businesses.<br />

Greater <strong>Cape</strong> Town is home to 70% of South Africa’s manufacturers of<br />

renewable components.<br />

Green<strong>Cape</strong> is an agency that does research and runs projects<br />

in areas such as energy efficiency, waste, water and sustainable<br />

agriculture. It is a joint initiative of the City of <strong>Cape</strong> Town, Wesgro and<br />

the Provincial Government of the <strong>Western</strong> <strong>Cape</strong>.<br />

Green<strong>Cape</strong> states that nearly R700-million in green technology<br />

investments has already been attracted to the Atlantis Special<br />

Economic Zone, creating 300 jobs. A further R3.7-billion is anticipated<br />

by 2030, which will add more than 3 000 new jobs. Spanish wind<br />

tower manufacturer Gestamp Renewable Industries was an early<br />

investor in the zone.<br />

The Koeberg nuclear power station 30km north of <strong>Cape</strong><br />

Town is South Africa’s, and Africa’s, only nuclear power station.<br />

The 1 840MW plant is due to have its steam generators replaced<br />


Atlantis Special Economic Zone: www.atlantissez.com<br />

Green<strong>Cape</strong>: www.greencape.co.za<br />

South African Renewable Energy Technology Centre: www.saretec.org.za<br />

South African Wind Energy Association: www.sawea.org.za<br />

in 2022, a necessary condition<br />

for having its licence<br />

extended beyond 2024. It was<br />

commissioned in 1985.<br />

The early rounds of the<br />

Renewable Energy Independent<br />

Power Producer Procurement<br />

Programme (REIPPPP) continue<br />

to produce regular dividends.<br />

The Paardekraal East Wind<br />

Farm, which is located about<br />

80km north-east of Ceres,<br />

is in the Witzenberg Local<br />

Municipality. The 110MW<br />

project was constructed<br />

by the Concor and Conco<br />

Consortium, Siemens Gamesa<br />

Renewable Energy supplied<br />

and installed the wind turbines,<br />

the towers were built by GRI in<br />

Atlantis and Mainstream Asset<br />

Management South Africa will<br />

manage the operations.<br />

The support of two of South<br />

Africa’s biggest institutional<br />

investors, the Industrial<br />

Development Corporation<br />

(IDC) and the Public Investment<br />

Corporation (PIC), has been crucial<br />

in getting the renewable energy<br />

sector off the ground. They have<br />

also helped communities fund<br />

their participation in community<br />

trusts. Typically, a community trust<br />

is established to represent the<br />

interests of the local community.<br />

Investments made by<br />

African people into the<br />

renewable energy programme<br />

are not limited to community<br />

trusts. Pele Green Energy is<br />

engaged with a photovoltaic<br />

plant at Touwsrivier in the<br />

<strong>Western</strong> <strong>Cape</strong> as a shareholder<br />

and as a provider of construction<br />

management services. ■<br />

33<br />

WESTERN CAPE BUSINESS <strong>2023</strong>


Manufacturing<br />

Local clothes makers are expanding.<br />

TFG, which includes Foschini, TotalSports and Markhams<br />

among its brands, has been buying up clothing factories for<br />

nearly a decade, giving it the ability to respond more quickly<br />

to fashion trends.<br />

Among TFG’s acquisitions were Prestige Clothing Maitland and<br />

Prestige Clothing Caledon. The group then spent R75-million on<br />

expanding the factory in Caledon. TFG is ramping up production of<br />

clothing and expects to increase staff from just over 3 000 to more<br />

than 5 000 in <strong>2023</strong>. <strong>Cape</strong> Union Mart, a well-established brand with<br />

a speciality in camping, hiking and other outdoor gear, is the largest<br />

unlisted clothing retailer in South Africa. What is less well known<br />

is that the company’s subsidiary, K-Way, makes its own products.<br />

About 200 staff members at a factory in the <strong>Cape</strong> Town suburb of<br />

Ottery produces 40 000 garments every month.<br />

Electricity usage at the factory has been cut by up to 35% annually<br />

by the installation of solar panels. The company is working with UNEP,<br />

the United Nations Environmental Programme, to assess its carbon<br />

footprint per garment. Waste is reduced by using second-hand boxes<br />

to deliver all repairs. Member companies of the <strong>Cape</strong> Clothing and<br />

Textile Cluster have reported hiring 35% more staff in four years.<br />

Altogether, about 23 600 people are employed in the province.<br />

In October 2022, Damen Shipyards <strong>Cape</strong> Town delivered a second<br />

sophisticated patrol vessel to the South African Navy. The company is<br />

a subsidiary of Damen International Shipyards Group, which recently<br />


<strong>Cape</strong> Clothing and Textile Cluster: www.capeclothingcluster.org.za<br />

Invest <strong>Cape</strong> Town: www.investcapetown.com<br />

<strong>Western</strong> <strong>Cape</strong> Maritime Cluster: www.wcmc.org.za<br />

Credit: K-Way<br />


Damen Shipyards has delivered<br />

a second patrol vessel.<br />

signed an agreement to<br />

manufacture hydrogen-powered<br />

Commissioning Service Operation<br />

Vessels (CSOVs) with two<br />

international partners. Given that<br />

South Africa is making plans to<br />

develop a hydrogen industry and<br />

become an exporter of “green<br />

hydrogen”, this innovation could<br />

lead to a new subsector.<br />

Bloomberg reported in<br />

2021 that Paramount Maritime<br />

Holdings, a subsidiary of the<br />

Paramount Group, was building<br />

26 boats for a combined value of<br />

$60-million. This is in response to<br />

piracy in the Gulf of Guinea.<br />

Invest <strong>Cape</strong> Town reports that<br />

the city’s boatbuilding industry<br />

is the second-largest producer<br />

of recreational catamarans in<br />

the world, after France. The city’s<br />

companies export 80% of the<br />

products that they produce and<br />

attract a positive trade balance of<br />

approximately $73-million annually.<br />

Robertson & Caine’s facility in<br />

Woodstock produces three boats<br />

a week for the international market.<br />

With a staff complement of 1 350,<br />

the company is a leader in power<br />

catamarans and sailing catamarans.<br />

Nautic Africa makes larger<br />

vessels, including patrol,<br />

defence, oil and gas platform<br />

and commercial vessels while<br />

companies such as Smit Amandla<br />

Marine and De Beers Marine offer a<br />

wide range of services. ■<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


Construction and property<br />

Social housing projects are accelerating in <strong>Cape</strong> Town.<br />


February 2022 marked a milestone for the R3-billion Conradie<br />

Park mixed-income housing project when the first 66<br />

residents received their keys.<br />

Conradie Park (pictured) is a joint venture between the<br />

City of <strong>Cape</strong> Town, the Provincial Government of the <strong>Western</strong> <strong>Cape</strong><br />

and the non-profit company associated with Concor Developments,<br />

Own Haven Housing Association. Located on the site of the old<br />

hospital, the project is well-served by transport lines and lies at<br />

the intersection of Pinelands and Thornton. There are 3 600 flats<br />

available for various income categories.<br />

Across the city, more than 6 500 social-housing units are planned<br />

or in development on 50 sites identified by the municipality. These<br />

include parts of the CBD, along the Voortrekker Road corridor and at Salt<br />

River, where a 1 800-unit project will deliver 600 social-housing units. In<br />

Woodstock, social housing company Sohco has put the 243-flat project<br />

out to tender and occupation should take place in early 2024.<br />

The Provincial Government of the <strong>Western</strong> <strong>Cape</strong> is in<br />

partnership with the University of the <strong>Western</strong> <strong>Cape</strong> to deliver more<br />

than 2 500 beds for student accommodation. Public comment has<br />

been made on a proposed new Inclusionary Housing Framework,<br />

which according to the State of the Province Address, “leverages<br />

our development planning powers” and aims to increase the<br />

number of mixed-use developments in the future.<br />

FNB, which publishes a regular property barometer, has done an<br />

in-depth analysis of previous crises to understand the post-Covid<br />

property market. According to John Loos, a property strategist at<br />

FNB Commercial Property Finance, the most vulnerable sector<br />

is likely to be Retail Property. Smaller neighbourhood shopping<br />

centres, with more essential items and greater convenience, will be<br />

less vulnerable.<br />

The lockdown accelerated the trend for people to work from<br />

home, and so the Office Property sector will come under pressure.<br />

Many companies will be reducing office space, but this is in fact a<br />

speeding up of an existing trend.<br />

At the Victoria & Alfred Waterfront, recovery from the Covid<br />

pandemic seems to be progressing well. Having given rental<br />

relief to various tenants of more than R350-million, the owners of<br />


Construction Industry Development Board: www.cidb.org.za<br />

SA Institute of Architects: www.saia.org.za<br />

<strong>Western</strong> <strong>Cape</strong> Property Developers Forum: www.wcpdf.org.za<br />


New headquarters have been<br />

built in the Waterfront.<br />

the Waterfront, Growthpoint<br />

Properties and the Public<br />

Investment Corporation,<br />

continued to spend on new<br />

developments, including a home<br />

for South African cuisine at the<br />

newly-created Makers Landing,<br />

which is located next to the cruise<br />

terminal. The project had support<br />

from the Jobs Fund.<br />

Plans are being rolled out to<br />

add 80 000m² to the available<br />

space within the Waterfront’s<br />

precincts. Asset manager Ninety<br />

One has a new headquarters in<br />

the Waterfront and Deloitte has<br />

built a 9 000m² office block. ■<br />

Credit: Conradie Park<br />

35 WESTERN CAPE BUSINESS <strong>2023</strong>


Transport and logistics<br />

The upgrades to the N7 are moving ahead.<br />


A feasibility study has been<br />

done on <strong>Cape</strong> Town taking<br />

over rail services.<br />

The Hopefield interhange links the R45 to the N7. Credit: SANRAL<br />

The ongoing upgrades to the N7 highway which runs up<br />

the west coast are bringing economic benefits to the<br />

Swartland region. Martin & East were awarded the contract<br />

to widen a 25km section of the road near Moorreesburg<br />

and subcontracted 30% of the work to small businesses, in line with<br />

South African Road Agency’s transformation policies.<br />

SANRAL started the upgrade of the N7 with the Melkbosstrand<br />

interchange in 2012 and has subsequently completed the<br />

Hopefield interchange. Altogether eight interchanges have been<br />

constructed and 46 major concrete structures built and upgraded.<br />

To the end of 2021, R333-million had been spent on “targeted<br />

labour” which includes black-owned entities, women-owned<br />

businesses, youth-owned businesses and persons with disabilities.<br />

A total of R529-million had been spent on SMMEs.<br />

The City of <strong>Cape</strong> Town conducted a feasibility study in the<br />

course of 2022 on taking over the management of passenger rail<br />

services from PRASA. The city wants to have a fully-integrated<br />

system, which would include rail.<br />

In 2022 the city’s Urban Mobility Directorate published an<br />

updated Comprehensive Integrated Transport Plan (CITP), outlining<br />

the strategies and plans for improving the transport environment<br />

in the metropole for five years to 2028.<br />

A range of new factors were considered in drafting the plan, such<br />

as the virtual disappearance of passenger rail as an option, the impact<br />

of the Covid-19 pandemic and the new trend towards remote working.<br />


Airports Company South Africa: www.airports.co.za<br />

Passenger Rail Agency of South Africa: www.prasa.com<br />

South African National Roads Agency: www.sanral.co.za<br />

Transport and Urban Development Authority: www.tct.gov.za<br />

According to the document, 58%<br />

of commuters use private vehicles<br />

to get to their destinations; 22% use<br />

minibus-taxis; 9% use bus services<br />

such as the MyCiTi and GABS; 2% use<br />

rail (a decline of 95% for the period<br />

2012 – 2022); and about 10% walk.<br />

The Transport and Urban<br />

Development Authority (TDA), located<br />

within the municipality, is responsible<br />

for planning, costing, contracting,<br />

regulating, monitoring, evaluating,<br />

communicating, managing and<br />

maintaining the City of <strong>Cape</strong> Town’s<br />

transport infrastructure, systems,<br />

operations, facilities and network.<br />

The provincial government is in the<br />

process of following the city’s lead<br />

with the establishment of a Mobility<br />

Department which will monitor the<br />

province’s transport programmes,<br />

such as financial support to bus and<br />

taxi services, the transport regulation<br />

mandate and extensive traffic<br />

management operations.<br />

<strong>Cape</strong> Town International<br />

Airport regularly wins awards and<br />

is routinely named Africa’s Leading<br />

Airport. George Airport now<br />

welcomes over 800 000 passengers<br />

each year and also serves as a<br />

national distribution hub for cargo<br />

such as flowers, fish, oysters, herbs<br />

and ferns. George Airport is Africa’s<br />

first airport to be solar powered.<br />

Plettenberg Bay Aerodrome<br />

hosts CemAir which flies to and from<br />

Johannesburg and <strong>Cape</strong> Town. ■<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



Where service is paramount<br />

Universal Link Group, established in 1999, is a market<br />

leader in the logistics and distribution services<br />

sector. We are fast becoming one of South Africa’s<br />

leading e-commerce warehousing, order fulfillment<br />

solutions driven companies with a BBBEE Level 1<br />

accreditation. We offer access to a comprehensive<br />

logistical supply chain service. Our extensive<br />

knowledge assures our clients of a smooth process<br />

flow and desired outcome.<br />


We provide strategic solutions for all your<br />

procurement, courier, e-commerce fulfillment<br />

and warehousing, import and export distribution<br />

systems designed to meet your requirements. We<br />

are an accomplished procurement office, taking the<br />

pressure out of your business of finding the best<br />

solutions, equipment and assistance to obtaining,<br />

locating and implementing your requirements, giving<br />

you a competitive advantage and leading edge.<br />

PLEDGE<br />

We are a team dedicated to service excellence<br />

through the process of simplicity and transparency,<br />

making your experience seamless and stress free. We<br />

are committed to explore and adapt innovative ideas,<br />

that achieve maximum supply chain efficiencies.<br />


• Distribution and Warehousing<br />

• Domestic and International Courier<br />

• e-Commerce Order-Fulfillment<br />

• Inventory Management System<br />

• Pick and Pack Services<br />

• Storage (long-term and short-term)<br />

• Mailing and Distribution Services<br />

• Packaging Solutions<br />

• Pharmaceutical Distribution<br />

• Wine Storage and Distribution<br />


• <strong>Cape</strong> Town: 1 170m²<br />

• Johannesburg: 350m²<br />

• Flexible storage options, including heavy-duty racking,<br />

a high-value goods area and freeflow areas.<br />

• Storage methodology eliminates errors by not shelving<br />

like products together, making picking easier.<br />

Contact details<br />

Unit 22, 31 Junction Road, Tygerberg Junction, Parow Industria 7493<br />

Tel: 021 951 4200 | Cell: 063 575 3447 | Email: info@ulgroup.co.za | Website: www.ulgroup.co.za


Tourism<br />

Air Belgium has started flying to <strong>Cape</strong> Town.<br />

The Table Bay Hotel. Credit: Sun International<br />

Grand Parade Investments (GPI), which has sold some of its<br />

non-core assets such as Burger King, will delist from the<br />

JSE. The company intends to exit the gaming business<br />

where it has a minority share in Sun Slots, which operates<br />

limited payout machines (LPM). GPI is a shareholder in companies<br />

that operate casinos in the <strong>Western</strong> <strong>Cape</strong> and, with a 15% stake in<br />

SunWest International, GPI is connected to the Table Bay Hotel and<br />

the <strong>Cape</strong> Town International Convention Centre.<br />

The landing of an Air Belgium jet at <strong>Cape</strong> Town International<br />

Airport in September 2022 was significant in several ways. The Airbus<br />

on the runway signalled that the Access <strong>Cape</strong> Town campaign, an<br />

initiative to entice airlines to <strong>Cape</strong> Town, was back on track and it<br />

opened up the possibility of increased numbers of tourists and<br />

goods moving between the city and Belgium.<br />

Air Access created more than 750 000 new inbound seats between<br />

its inception in 2015 and 2020, adding something like R6-billion to the<br />

provincial economy.<br />

Belgium is the <strong>Western</strong> <strong>Cape</strong>’s seventh-largest European export<br />

market, with R2.61-billion in goods exported in 2021, up 81.5%<br />

from 2020. The first flights of Air Belgium will not be direct to <strong>Cape</strong><br />

Town, but as volumes increase it is expected that <strong>Cape</strong> Town will<br />

get its own direct flight. Two-way passenger traffic showed a 50%<br />

recovery for the first six months of 2022, with 8 300 passengers<br />


<strong>Cape</strong> Nature: www.capenature.co.za<br />

Garden Route and Klein Karoo: www.visitgardenrouteandkleinkaroo.com<br />

George Tourism: www.georgetourism.org.za<br />


The region wants to build on<br />

its reputation as a remote<br />

working destination.<br />

flying between Brussels and<br />

<strong>Cape</strong> Town and for the first six<br />

months of 2022, 500 tons of air<br />

cargo were flown between the<br />

two destinations.<br />

While the air travel news<br />

showed that Covid is starting<br />

to recede as a factor, the<br />

<strong>Western</strong> <strong>Cape</strong> wants to build<br />

on the reputation it built<br />

up during the pandemic<br />

as a good destination for<br />

remote working. This is<br />

another motivation behind<br />

the provincial government’s<br />

support of digital connectivity.<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government wants to promote<br />

education in the arts. Based<br />

on research which found that<br />

6% of employment in South<br />

Africa is in the cultural sector,<br />

the <strong>Western</strong> <strong>Cape</strong> will expand<br />

the traditional STEM emphasis<br />

to include two additional As:<br />

Arts and Agriculture. There are<br />

60 000 people employed in the<br />

culture sector in the province.<br />

A landmark on the Sea<br />

Point boulevard, the Winchester<br />

Hotel, reopened in 2021 after<br />

new owners Newmark spent<br />

R90-million on a major revamp.<br />

Having been built to house<br />

residential apartments, what<br />

became Winchester Gardens was<br />

famous for its jazz and Sunday<br />

teas. The 76-room hotel is now a<br />

luxury boutique hotel. ■<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


House of Kreationz – Your Solution for Stylish Events<br />

House of Kreationz is a leading events décor<br />

styling company, with branches in the <strong>Western</strong><br />

<strong>Cape</strong> and Gauteng. Our extensive client-base<br />

of brands and companies includes trendsetters<br />

and leaders in their respective fields.<br />

Through the collective team we possess a<br />

wealth of experience that spans over 20 years.<br />

The company focuses on high-end event styling,<br />

conceptualising and curating each event<br />

into a unique experience. No job is too big or<br />

small for our team of creative event planners,<br />

meticulous coordinators, resourceful project<br />

managers and problem-solving thinkers,<br />

Started shortly after the devastating global<br />

pandemic, the birth of House of Kreationz<br />

was a huge leap of faith. Kreationz, as we are<br />

commonly known, wasted no time in filling a<br />

vacuum in the events industry. The events<br />

market needed an injection of innovative<br />

ideas, fresh creativity and a spiced-up services<br />

offering that would leave clients with an event<br />

experience that will be talked about long after<br />

the last chair is packed away and every power<br />

cord is rolled up.<br />

The Kreationz offering is more than just contemporary<br />

event styling – the company’s alliances<br />

and contacts ensure a seamless turnkey<br />

project management solution.<br />

Our overall offering includes, but is not limited<br />

to, event conceptualization and styling curation,<br />

management, co-ordination, production<br />

and planning.<br />

Kreationz boasts a clientele that includes<br />

major clients like the CSIR, Big Concerts, ZA<br />

Fanzone, GPA Group, Mushroom Productions,<br />

Black Creatives, NCPC-SA and Travel with<br />

Flair to name but a few.<br />

BBBEE Level: 1<br />

Key contact people:<br />

1. Franco Beginsel Position: General Manager<br />

2. Rufus McCarthy Position: Operations Manager<br />

3. Natalie Koopman Position: Director<br />

Physical address: 10 Banchory Road, Blue Valley Golf Estate,<br />

Kosmosdal, Centurion<br />

Tel: 010 157 3266 Cell no: 072 858 7870<br />

Email: franco@kreationz.co.za / ops@kreationz.co.za<br />

Postal address: 10 Banchory Road, Blue Valley Golf Estate,<br />

Kosmosdal, Centurion<br />

Website: www.kreationz.co.za


Education<br />

Digital skills are in demand.<br />


More than 1 000 new teachers<br />

have been hired.<br />

The Minister of Higher Education, Dr Blade Nzimande, was on<br />

hand in October 2022 to officially open the CHIETA SMART<br />

Skills Centre in Saldanha Bay (pictured). The Chemical<br />

Industries Education and Training Authority, which reports<br />

to the minister, aims for the R3-million facility to help citizens learn<br />

digital skills.<br />

The Provincial Government of the <strong>Western</strong> <strong>Cape</strong> has invested<br />

more than R1.6-billion in e-learning over the last five years in response<br />

to Covid and the demands of remote learning. A total of 1 290 schools<br />

within the province now have broadband connectivity and there are<br />

1 316 with computer labs and 9 992 smart classrooms (SOPA).<br />

Ten new schools were successfully completed in 2020/21,<br />

which has led to about 1 100 new teachers being employed.<br />

The province’s I-CAN centres allow for public access to digital<br />

skills programmes, WiFi and business services. The centres are<br />

divided into zones (including Create, Study and Learn) and printing,<br />

graphic design and laminating services are available.<br />

The University of <strong>Cape</strong> Town joined the trend with the<br />

creation of an online high school. The school hopes to close the<br />

opportunity gap for poor students in under-resourced areas.<br />

The University of <strong>Cape</strong> Town has more than 21 500 students,<br />

720 permanent staff and 39 A-rated researchers (40% of South<br />

Africa’s total). Stellenbosch University is linked to Stellenbosch’s<br />

growing reputation as a technology hub. The University of the<br />

<strong>Western</strong> <strong>Cape</strong> is home to several national research bodies.<br />

These three institutions, plus the <strong>Cape</strong> Peninsula University of<br />

Technology, produce approximately 12 000 science, technology,<br />

engineering and mathematics graduates every year and host 11 000<br />

students from other African<br />

countries. University education is<br />

available in George through the<br />

Nelson Mandela University (NMU):<br />

Saasveld is home to the School of<br />

Natural Resource Management<br />

and the York Street Campus<br />

delivers courses in business and<br />

social science, accounting and<br />

business management.<br />

SARETEC offers industryspecific<br />

training in a new economic<br />

sector. The South African<br />

Renewable Energy Technology<br />

Centre is managed by the <strong>Cape</strong><br />

Peninsula University of Technology<br />

(Bellville campus) but it collaborates<br />

with several other institutions and<br />

private companies.<br />

Unisa, the country’s biggest<br />

distance learning institution, has<br />

a campus in <strong>Cape</strong> Town and a<br />

service centre in George.<br />

Airports Company SA (ACSA),<br />

the City of <strong>Cape</strong> Town and<br />

the False Bay TVET College in<br />

Westlake have combined to offer<br />

residents of Blikkiesdorp a chance<br />

to learn skills in brick-laying,<br />

house-building, scaffolding and<br />

health and education. ACSA<br />

is investing R5-million in the<br />

12-month certification project<br />

and the Construction Education<br />

and Training Authority (CETA)<br />

will channel funds to False Bay<br />

College for training.<br />

In 2022 the College of <strong>Cape</strong><br />

Town Hospitality Department<br />

was invited by the Kofler Group<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />



New business schools<br />

Staff and students celebrate the news that four students from the<br />

College of <strong>Cape</strong> Town’s Hospitality Department were selected to<br />

attend and work at the 2022 FIFA World Cup.<br />

Middle East LLC to select four N6 Hospitality and Catering Services<br />

students to apply for an opportunity to work as Front of House<br />

Facing Commis Chefs at the 2022 FIFA World Cup. All of the students<br />

were from the City Campus and spent all of November and half of<br />

December in Doha.<br />

Specialisation Programme<br />

A Centres of Specialisation Programme has been introduced by<br />

the Department of Higher Education and Training to tackle priority<br />

skills. The College of <strong>Cape</strong> Town TVET concentrates on plumbing<br />

and automotive motor mechanics. A welding academy in Thornton<br />

has been opened with support from the merSETA (Manufacturing,<br />

Engineering and Related Services SETA).<br />

Outside of the <strong>Cape</strong> metropole, Boland College looks after Stellenbosch,<br />

Worcester, Paarl and Caledon, while the Southern <strong>Cape</strong> College covers a wide<br />

area, from George to Beaufort West. The West Coast College also has a big<br />

catchment area.<br />

The <strong>Western</strong> <strong>Cape</strong> Department of Infrastructure is rolling out a skills<br />

programme for young people in prison. The focus is on technical skills in<br />

the built environment.<br />


Apprenticeship Game Changer: www.westerncape.gov.za<br />

Centres of Specialisation: www.dhet.gov.za<br />

SA Renewable Energy Technology Centre: www.saretec.org.za<br />

TVET colleges: www.tvetcolleges.co.za<br />

Woodstock and Salt River are<br />

increasingly trendy destinations,<br />

something that is encouraged by tax<br />

rebates and other incentives to new<br />

businesses willing to open in that<br />

part of <strong>Cape</strong> Town that used to be<br />

an industrial and transport hub. Two<br />

savvy business organisations that have<br />

taken up new premises in the area are<br />

the Henley <strong>Business</strong> School and the<br />

Regent <strong>Business</strong> School.<br />

Henley <strong>Business</strong> School will offer<br />

four of its accredited qualifications,<br />

three at undergraduate level, and<br />

its honours-level Postgraduate<br />

Diploma in Management Practice,<br />

from its new Brickfield campus in<br />

Woodstock. The new campus will<br />

also host the school’s executive<br />

education and customised<br />

programmes for its <strong>Cape</strong> Townbased<br />

corporate clients.<br />

Support will be offered to <strong>Cape</strong><br />

Town students studying for the<br />

Henley MBA programme, but they<br />

will continue to be registered with<br />

the Johannesburg campus and any<br />

physical sessions related to the course<br />

will still be held in Gauteng. Most of<br />

the MBA work is done remotely.<br />

Regent <strong>Business</strong> School<br />

opened its new <strong>Cape</strong> Town<br />

campus in The Boulevard Office<br />

Park, Woodstock, in January<br />

<strong>2023</strong>. In addition to the courses<br />

offered by the school, students are<br />

promised full access to the iLead<br />

lab and Black Umbrellas business<br />

incubation hub, entrepreneurial<br />

skills and assisting with funding<br />

and opening a small business.<br />

The Mayor of <strong>Cape</strong> Town Mayor<br />

Geordin Hill-Lewis spoke on the<br />

occasion of the launch on the<br />

topic, “New age teaching for the<br />

leaders of tomorrow”. ■<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


Shaping futures one<br />

education at a time<br />

The Shaping Futures Foundation matches corporate donations<br />

to tertiary institutions to assist worthy students.<br />

<br />

FOCUS<br />

Since its founding in August 2017, the Shaping<br />

Futures Foundation has raised in excess of<br />

R11.5-million and provided financial assistance<br />

to more than 150 students in tertiary education.<br />

It also currently administers a school<br />

feeding scheme providing daily meals to 2 800<br />

underprivileged learners. The Shaping Futures<br />

Foundation has assisted students in KwaZulu-Natal,<br />

Gauteng and the <strong>Western</strong> <strong>Cape</strong>.<br />

With a background in finance, John de Groot<br />

spotted a mismatch in March 2017 between talented<br />

students either not graduating or not progressing<br />

in their studies because of a lack of funds on the<br />

one hand, and companies with money to spend<br />

in terms of BBBEE legislation but without the time<br />

or resources to find the deserving students who<br />

needed funds.<br />

The Shaping Futures Foundation was created to<br />

match these parties and its success over the years<br />

has proved the truth of John’s observation.<br />

Although his involvement in the foundation is<br />

now as a non-executive director, John still derives<br />

enormous joy from the knowledge that the<br />

foundation is making a meaningful impact in the<br />

lives of students in need. Letters of appreciation<br />

are regularly received from students outlining the<br />

significant impact the Shaping Futures Foundation<br />

has had on their lives.<br />


<br />

<br />

<br />

Kayne, CPUT: I just wanted to thank you<br />

<br />

wholeheartedly for extending a helping hand<br />

when I needed it the most. I am studying<br />

<br />

Information Technology at the <strong>Cape</strong> Peninsula<br />

<br />

University of Technology.<br />

Zainub, UCT: I am truly honoured to be one of<br />

<br />

the recipients of the Shaping Future Foundation<br />

<br />

bursary. Thanks to your support I will be the<br />

first in my family to possibly acquire a tertiary<br />

<br />

education. Thank you for investing in my dream<br />

of achieving a <br />

degree in computer science and<br />

computer engineering.<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Says John, “There <br />

have been occasions where<br />

we have managed Chloe Arkcoll to completely settle students<br />

tertiary education Chairperson debt, allowing them to start<br />

their post-graduate lives without the hinderance<br />

of student debt.”<br />

Win win<br />

Donations to the Shaping Futures Foundation<br />

qualify as skills development expenditure and an<br />

18 (A) tax certificate can be issued. The latest BEE<br />

codes encourage expenditure of between 3% and<br />

6% of a company’s payroll for companies with<br />

turnovers between R10-million and R50-million<br />

per annum. The Shaping Futures Foundation<br />

ensures this spend is allocated efficiently and<br />

to the correct demographic profile. Established<br />

relationships with tertiary institutions make for<br />

synergies and could lead to hiring opportunities,<br />

which in turn attract more points for companies.<br />

The Shaping Futures Foundation Board<br />

Members are all Chartered Accountants: John de<br />

Groot; Chloe Arkcoll; Mzi Nkonyeni. ■<br />

Address: 5 Cornwall Place, Wynberg, <strong>Cape</strong> Town, 7800<br />

Mobile: +27 82 776 5907 | Email: chloe@shapingfutures.org.za | Website: www.shapingfutures.org.za<br />



Development finance<br />

and SMME support<br />

Digital access is available for entrepreneurs.<br />

The <strong>Business</strong> Hub is a City of <strong>Cape</strong> Town initiative that gives<br />

advice to entrepreneurs. In the first six months of 2022, 973<br />

entrepreneurs participated in skills training offered by the<br />

Hub. The Hub partners with Productivity SA and the South<br />

African Renewable Energy Incubator in promoting SMMEs.<br />

Access to the Hub is free via Smart <strong>Cape</strong> Services at libraries in<br />

the city or where free Wi-Fi is provided in all city-run buildings.<br />

Another initiative to help entrepreneurs engage with the digital<br />

world was launched in 2022 by Silicon <strong>Cape</strong> and Huawei Cloud.<br />

Silicon <strong>Cape</strong> is a non-profit initiative that supports the creation of<br />

a sustainable tech and entrepreneurial ecosystem. Huawei Cloud<br />

showed 20 entrepreneurs how to accelerate the growth of their<br />

companies through cloud adoption.<br />

Philippi Village (pictured), an integrated, mixed-used<br />

development, is proving a successful host to a number of dynamic<br />

small enterprises. Established by the Bertha Foundation and The<br />

<strong>Business</strong> Place Philippi and with seed funding from the Jobs Fund,<br />

it is currently home to more than 80 tenants providing products,<br />

services and training opportunities as well as job opportunities to<br />

the local community. The sports facilities and other amenities ensure<br />

that there is constant activity and a buzz within the development<br />

with locals feeling a sense of ownership.<br />

In his 2022 State of the Province address, Premier Alan Winde<br />

quoted from the Global Startup Ecosystem Report 2021, which<br />

stated that <strong>Cape</strong> Town is the number one performer in Africa for<br />

technology ecosystems and is home to almost two-thirds of all<br />

start-ups in South Africa. Winde announced the creation of an SMME<br />

Booster Fund which will support organisations that provide business<br />

development support.<br />

Two of the <strong>Western</strong> <strong>Cape</strong>’s universities, Stellenbosch and <strong>Cape</strong><br />

Town, are among the first collaborators with the University Technology<br />

Fund which aims to commercialise innovations and inventions coming<br />

out of tertiary institutions. The UTF has financial clout as it is a part of the<br />

South African SME Fund, an offshoot of the CEO Initiative which brought<br />


Invest <strong>Cape</strong> Town: www.investcapetown.com<br />

SA SME Fund: sasmefund.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

Small Enterprise Finance Agency: www.sefa.org.za<br />


Philippi Village is a vibrant<br />

small business hub.<br />

together 50 major corporations, the<br />

Public Investment Corporation, the<br />

Unemployment Insurance Fund and<br />

the Compensation Fund. Among the<br />

businesses receiving support from<br />

the SA SME Fund is Hyrax, a company<br />

which emerged from research done<br />

at the University of the <strong>Western</strong> <strong>Cape</strong><br />

into which HIV-positive people were<br />

resistant to certain drugs.<br />

The National Department of Small<br />

<strong>Business</strong> Development (DSBD) has<br />

several programmes to assist SMMEs<br />

and co-operatives. The Small Enterprise<br />

Development Agency is an agency<br />

of the DSBD and gives non-financial<br />

support to entrepreneurs through<br />

training, assistance with filling in forms,<br />

marketing and creating business plans. ■<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


<strong>Business</strong> Process Outsourcing<br />

International brands are choosing <strong>Cape</strong> Town.<br />

“We are Africa’s BPO Capital,” says provincial Premier<br />

Alan Winde of the <strong>Western</strong> <strong>Cape</strong>.<br />

Rob Kane, chairman of the <strong>Cape</strong> Town<br />

Central City Improvement District (CCID), a<br />

public-private partnership and non-profit organisation that is<br />

mandated to manage and promote <strong>Cape</strong> Town’s central business<br />

district (CBD), is even more specific: “Downtown <strong>Cape</strong> Town<br />

is a recognised technology, BPO and e-commerce hub, with<br />

reliable infrastructure, fast Internet speeds and a commitment to<br />

supporting a young workforce. The city is home to the most tech<br />

start-ups on the African continent, and the BPO sector supports<br />

call centres for global companies and online retailers with a steady<br />

pipeline of call-centre employees.”<br />

Ian Ohlson, a director at Lufthansa InTouch <strong>Cape</strong> Town, which<br />

has been in the inner city since 1999 and has a staff complement<br />

of 573, says, “We chose the CBD due to the various options<br />

available for transport, the close proximity to shops, banks and<br />

lifestyle options.”<br />

Many BPO businesses are part of the CBD’s night-time economy,<br />

which includes a vibrant First Thursday night when art galleries and<br />

museums open their doors and the town comes alive.<br />

<strong>Cape</strong> Town hosts 60% of the country’s BPO centres, employing<br />

more than 50 000 workers. In 2022 it was also rated the most<br />

sustainable city in Africa in the Corporate Knights Sustainability<br />

Cities Index 2022 report, noted for its efforts in terms of air quality,<br />

emissions, solid waste generation and sustainable policies, among<br />

others. Currently there are 69 information and communication tech<br />

companies in the <strong>Cape</strong> Town central business district (CBD) alone, of<br />

which 25 are call centres. Included in this number are international<br />

brands like e-commerce giant Amazon, Lufthansa inTouch and<br />

Global Load Control.<br />

Significantly lower costs than European competitors and growth<br />

rates in the <strong>Business</strong> Process Outsourcing (BPO) sector that outstrip<br />

the global rate make the <strong>Western</strong> <strong>Cape</strong> an extremely competitive<br />

destination. According to the Everest Group Study (2018), <strong>Cape</strong><br />

Town’s costs for contact centre work are between 20% and 30%<br />

lower than the costs in Eastern and Central Europe.<br />


<strong>Business</strong> Process enabling South Africa (BPeSA): www.bpesa.org.za<br />

Contact Centre Management Group: www.ccmg.org.za<br />

National Department of Trade, Industry and Competition:<br />

www.dtic.gov.za<br />



The CBD’s night economy is<br />

boosted by the BPO sector.<br />

South Africa’s BPO industry<br />

is growing twice as fast as the<br />

world’s and three times faster<br />

than India and the Philippines<br />

(Invest <strong>Cape</strong> Town).<br />

Inbound customer service<br />

(55%), inbound sales (15%) and<br />

debt collection (13%) comprise<br />

the biggest subsectors of the<br />

BPO sector in the <strong>Cape</strong> (Wesgro).<br />

Greater <strong>Cape</strong> Town is home<br />

to three universities, a university of<br />

technology and several technical<br />

colleges. Other factors in favour of<br />

the area are the relatively neutral<br />

accents, good financial and<br />

telecommunications infrastructure<br />

and the time zone being the same<br />

or close to Europe’s. ■<br />

Central City Improvement District<br />

45<br />

WESTERN CAPE BUSINESS <strong>2023</strong>


Banking and financial services<br />

Infrastructure funds are attracting investors.<br />


The <strong>Cape</strong> Town Stock<br />

Exchange is in Woodstock.<br />

Big infrastructure projects like the Berg River Dam need financing.<br />

Credit: WRC<br />

Sanlam, established in 1918 as a life insurer, is now a financial<br />

services company with five main divisions, including Corporate,<br />

Personal Finance and Emerging Markets. Santam focusses on<br />

short-term insurance. With its headquarters in Bellville, Sanlam<br />

is Africa’s largest insurance company.<br />

Sanlam Investments has launched a Sustainable Infrastructure<br />

Fund which primarily invests in senior or subordinated debt across a<br />

wide range of South African infrastructure assets, with the ability to<br />

invest up to 10% in equity.<br />

The South African state has promised a huge infrastructure drive<br />

but in the context of climate change, the investment community is<br />

increasingly putting emphasis on sustainability. Sanlam Group will<br />

invest R6-billion in the fund and aims to attract a further R5-billion<br />

from institutional investors. Investments will be made in housing,<br />

transport, health, water, waste, communication, conventional energy<br />

and renewable energy, a fast-growing sector with enormous potential.<br />

The <strong>Western</strong> <strong>Cape</strong>’s evolution into a technology hub is one of the<br />

reasons why one of South Africa’s newest stock exchanges chose to<br />

move to the <strong>Cape</strong> and rebrand as <strong>Cape</strong> Town Stock Exchange.<br />

This trend is also persuading banks, insurance providers, asset<br />

managers and venture capitalists to choose to relocate. There are more<br />

than 40 000 jobs in the technology sector (more than double the total<br />

of Nairobi and Lagos combined, Wesgro) and formal employment in<br />

the financial sector exceeds 50 000.<br />

Together with business services, the financial sector comprises the<br />


Financial Sector Conduct Authority: www.fsca.co.za<br />

Insurance Institute of South Africa: www.iisa.co.za<br />

South African Institute of Chartered Accountants: www.saica.co.za<br />

biggest contributor to the<br />

provincial economy. According<br />

to Wesgro, 75% of the venture<br />

capital deals that happen in South<br />

Africa originate in the <strong>Western</strong><br />

<strong>Cape</strong>. Most financial firms based<br />

in <strong>Cape</strong> Town have a long history,<br />

some going back as far as 1845<br />

when Old Mutual started. One<br />

of the most successful disruptors<br />

in recent times has been<br />

Stellenbosch-based Capitec Bank.<br />

The African Institute of<br />

Financial Markets and Risk<br />

Management (AIFMRM) aims is<br />

to meet the demands for skills<br />

by developing local talent. It<br />

is supported by the <strong>Western</strong><br />

<strong>Cape</strong> Provincial Government,<br />

the University of <strong>Cape</strong> Town,<br />

Barclays Africa Group, FirstRand<br />

and Liberty.<br />

The head offices of financial<br />

firms are dotted all over <strong>Cape</strong><br />

Town. These include Old<br />

Mutual and Foord (Pinelands),<br />

Futuregrowth and Coronation<br />

(Newlands), Prudential<br />

(Claremont), Sygnia (Green<br />

Point), Sanlam (Bellville) and<br />

Allan Gray (Waterfront). PSG has<br />

its headquarters in Stellenbosch<br />

and is well represented in rural<br />

towns. Insurers such as Santam<br />

and Metropolitan Life are based<br />

in Bellville. Nomura, a Japanese<br />

financial holding company, has<br />

a presence in the <strong>Cape</strong> through<br />

Nomura South Africa which offers<br />

investment banking services. ■<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />


The Evolution of loveLife 1999-2021<br />

- 22 years of promoting Youth Health<br />

1999:<br />

Getting SA talking<br />

Frequently controversial,<br />

and always on the side<br />

of young people, loveLife<br />

captured the imagination<br />

of a generation growing<br />

up in the thick of the<br />

largest HIV epidemic on<br />

earth by making public<br />

one of the most taboo<br />

topics: sex.<br />

2000 to 2003: Building<br />

cutting-edge programmes<br />

loveLife combined a celebrated and controversial<br />

multimedia campaign with in-school programmes led<br />

by dynamic young leaders – better known as loveLife<br />

groundBREAKERs.The loveLife Games School Sports<br />

programme brought excitement to every corner of the<br />

country, specific programmes for parents, an exceptionally<br />

busy Contact Centre, and a host of community based<br />

activities including support of other non governmental<br />

organizations. In 2003, loveLife’s “Everyone he’s slept with,<br />

is sleeping with you” billboard became its most popular.<br />

2004 to 2007:<br />

Growing our reach<br />

Research conducted by the<br />

Reproductive Health and Research<br />

Unit showed interaction with loveLife<br />

lowered odds of HIV infection,<br />

resulting in an intensive roll-out of the<br />

groundBREAKER programme. This<br />

painted an optimistic picture for SA<br />

youth and messaging steered toward<br />

achieving this brighter future a reality<br />

with “love to be there” campaign.<br />

2008 to 2011: A brave new world<br />

By 2008, new infections among young people aged between 15 to 24 had been<br />

halved – but trends in HIV infection showed a need for targeted campaigns<br />

toward marginalised youth most affected by the ailing economy. Through<br />

innovative interventions like Foxy Chix and MYMsta, the “NAKANJANI”<br />

campaign promoted a spirit of resilience among youth.<br />

2015: Powering the FUTURE<br />

loveLife’s new focus is unlocking<br />

the power of youth leadership<br />

for HIV prevention. loveLife has<br />

focused on unlocking the power of<br />

youth leadership for Youth Health<br />

throughout its existence. The next<br />

phase development is all about using<br />

that youth leadership as the dynamo<br />

future growth and sustainability. The<br />

loveLife vision moving forward is “A<br />

better future powered by the energy<br />

and idealism of young people’. This<br />

means that we are building on insights<br />

of our evaluation (published 2013) by<br />

the Human Sciences Research Council<br />

(HSRC). This study showed that while<br />

loveLife programmes have an impact,<br />

young people concerns are broad and<br />

serious. Many young people internalise<br />

their failure when they struggle to<br />

access opportunities after school. This<br />

situation could be reversed, as young<br />

people have the ability to substantially<br />

change the environment in which<br />

they find themselves. Our response<br />

is to create bridges of opportunity for<br />

all young people. The infrastructure<br />

of loveLife programmes has been<br />

revamped to deliver a new proposition<br />

to young people: a proposition that we<br />

spell out as POWERING THE FUTURE.<br />

2012 to 2014:<br />

Focusing on our<br />

strengths<br />

By 2012, loveLife was the<br />

largest schools-based<br />

social change programme<br />

in the country! loveLife<br />

used this opportunity to<br />

reposition itself so that it<br />

remained relevant to SA<br />

youth.<br />

2017: lovelife’s Vision<br />

Positioning itself as a leader<br />

in Youth Health Promotion,<br />

lovelife envisaged to<br />

promote social activism for<br />

Healthy & Active Lifestyle<br />

and HIV consciousness<br />

amongst youth.<br />

2018: loveLife launches<br />

the BoyChild initiative,<br />

boys with a total sense of<br />

physical, mental and social<br />

well-being are key to safe<br />

communities.<br />

2019: loveLife turns 20 years,<br />

a milestone achievement as it<br />

celebrates two decades of being an<br />

important contributor to empowering<br />

the lives of South African youth.<br />

2020: lovelife carves<br />

a niche for in Digital<br />

Media by providing<br />

programme content<br />

in the midst of the<br />

COVID19 pandemic.<br />

1999<br />

2000<br />

2001<br />

2002<br />

2003<br />

2004<br />

2005<br />

2006<br />

2007<br />

2008<br />

2009<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

2017<br />

2018<br />

2019<br />

2020<br />


INDEX<br />

INDEX<br />

<strong>Cape</strong> Chamber of Commerce & Industry............................................................................................. 18-19<br />

College of <strong>Cape</strong> Town .............................................................................................................................................41<br />

Council for Scientific and Industrial Research (CSIR)..................................................................... 16-17<br />

House of Kreationz.....................................................................................................................................................39<br />

loveLife.....................................................................................................................................................................47, IBC<br />

Momentum Financial Planning .................................................................................................................... OBC<br />

Petroleum Agency South Africa................................................................................................................. 30-31<br />

South African Table Grape Industry (SATI)...................................................................................................25<br />

Telkom <strong>Business</strong> ........................................................................................................................................................IFC<br />

The Shaping Futures Foundation ................................................................................................................7, 43<br />

Universal Link Group ................................................................................................................................................37<br />

Vinpro.................................................................................................................................................................................27<br />

Wesgro....................................................................................................................................................................... 10-12<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> Opportunities Forum (WECBOF)..................................................................13<br />

<strong>Western</strong> <strong>Cape</strong> Department of Economic Development and Tourism.....................................8-9<br />

WESTERN CAPE BUSINESS <strong>2023</strong><br />






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