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Eastern Cape Business 2023-24

The 2023/24 edition of Eastern Cape Business is the 16th edition of this successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape Development Corporation (ECDC) is supporting this issue of the journal, both in providing up-to-date information for editorial use and in sharing information about its activities. It will also distribute the journal through its regular channels. The Eastern Cape’s multi-faceted approach to the challenges and opportunities of sustainability are explored in a special feature. From caring for agricultural land through partnerships between farmers, wool brokers and fashion houses, to solar panels and improved lighting and water systems, companies are finding ways to incorporate sensible and profitable solutions into their business models. The Nelson Mandela Bay Development Agency celebrates a significant milestone this year, it being 20 years since it began operations.

The 2023/24 edition of Eastern Cape Business is the 16th edition of this successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape Development Corporation (ECDC) is supporting this issue
of the journal, both in providing up-to-date information for editorial use and in sharing information about its activities. It will also distribute the journal through its regular channels.

The Eastern Cape’s multi-faceted approach to the challenges and opportunities of sustainability are explored in a special feature. From caring for agricultural land through partnerships between farmers, wool brokers and fashion houses, to solar panels and improved lighting and water systems, companies are finding ways to incorporate sensible and profitable solutions into their business models. The Nelson Mandela Bay Development Agency celebrates a significant milestone this year, it being 20 years since it began operations.

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

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

and the Nelson Mandela Bay metro.<br />

Magwa Tea Estate is being restored and its products are appearing<br />

on shelves. The Premier of the <strong>Eastern</strong> <strong>Cape</strong> says he drinks no other<br />

tea. The provincial government has committed to buying Magwa and<br />

Majola tea, it can be bought at more than 100 retail outlets and the<br />

Premier Hotel Group is a purchaser. More than 1 500 jobs were saved<br />

when the provincial government intervened but other commercial<br />

partnerships, such as with timber company Sappi, will give Magwa a<br />

more diverse income stream.<br />

Agro-processing<br />

Getting small-scale farmers connected to agro-processing value chains<br />

is a major goal for agricultural policy-makers. This lies behind the<br />

creation of the Wild Coast Special Economic Zone (SEZ) near Mthatha.<br />

The 5 000ha Ncora Irrigation Scheme is seen as a model for the SEZ,<br />

which has attracted interest from AngloGold Ashanti and Exxaro.<br />

The DRDAR has several programmes to support small-scale<br />

farmers. The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation (ECDC) supports<br />

agro-processing through loans and equity arrangements: projects that<br />

have received financial support include aquaculture, the production of<br />

dietary fibre from pineapples and bamboo products.<br />

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

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

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

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

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

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

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

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

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

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

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

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

takes place in Kariega, Gqeberha and Ntabozuko (Berlin) outside East<br />

London. The mohair value chain includes brokers,buyers, processors,<br />

spinners, manufacturers and retailers.<br />

Simpiwe Somdyala, CEO of<br />

Amadlelo Agri<br />

The SAMIL company has<br />

divisions all along the value<br />

chain. The Stucken group<br />

controls Mohair Spinners South<br />

Africa, Hinterveld (a mill) and the<br />

processing company Gubb &<br />

Inggs in Kariega.<br />

Ouma Rusks are still made<br />

in Molteno where they were<br />

invented. Cadbury Chocolates<br />

operates a big site across the<br />

lake from the Nelson Mandela<br />

Stadium in Gqeberha and Nestlé<br />

makes 11 kinds of chocolate at<br />

its factory in East London. The<br />

Sasko mill in Gqeberha is the<br />

province’s only big milling plant.<br />

Coca-Cola Sabco and<br />

SAB’s Ibhayi brewery are the<br />

major beverage manufacturers<br />

in Gqeberha and Distell has<br />

a bottling plant in the city.<br />

Sovereign Foods in Kariega is<br />

the country’s fourth-biggest<br />

producer of poultry. ■<br />

ONLINE RESOURCES<br />

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

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

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

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

27 EASTERN CAPE BUSINESS <strong>2023</strong>/<strong>24</strong>

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