SPECIAL FEATURE Oil and
SPECIAL FEATURE Oil and gas The oil and gas sector could ignite a whole new type of economy, and kickstart the Oceans Economy. National government has named the Coega SEZ as the potential site for a 1 000MW Liquefied Natural Gas (LNG) plant. The value to the regional economy of the project is estimated at R25-billion. A gas-fired power plant (Dedisa) is operating at Coega and there are plans to expand this sector. Since the company Aegean Bunkering Marine Services was licensed in 2016 by the South African Maritime Safety Authority (SAMSA) and Transnet to supply bunker fuel to ships passing through Algoa Bay, many additional ships have used these services, adding more than R70-million to the local economy. If the drive to convert to oil and gas is successful (and the hope is that feedstock will come from offshore gasfields once they are developed) then a string of downstream benefits could accrue. Provincial authorities are working with SAMSA to ensure that the province’s ports play a role in bunkering and supplies to the oil and gas sector. The Provincial Government of the Eastern Cape is developing an Oceans Economy Master Plan which will include provisions to support smallscale fishers and to develop the small harbours at Port St Johns, Cape St Francis and Port Alfred. Other areas for strategic development include Coffee Bay, Mdumbi and Port Grosvenor on the Wild Coast. Port Elizabeth is gearing up to embrace the Oceans Economy. A new national headquarters of the South African International Maritime Institute opened in the city, and the Oceans Campus of Nelson Mandela University will devote its resources to researching how best the province and country can exploit the maritime sector. These institutions will support an existing provincial maritime economy which is underpinned by three major ports: Port Elizabeth, East London and Ngqura. Port Elizabeth’s major cargoes are manganese and vehicles while both East London and Ngqura support Special Economic Zones (SEZs). There are plans to move manganese stockpiles to Ngqura which will free up space for a waterfront development in the Port Elizabeth harbour. Geography The Eastern Cape extends over 169 580 square kilometres, representing 13.9% of South Africa’s land mass. The dry western interior is one of the country’s premier sheep-rearing destinations and it is the home of the mohair industry. The mountainous regions of the north and east of the province support timber plantations while the coastal belt in the south-west is well-watered and is good for dairy farming. The province has spectacular beaches stretching from the surfer’s paradise at Jeffreys Bay all the way to the famed Wild Coast. Two major airports at Port Elizabeth and East London provide good air links and smaller towns such as Mthatha and Bhisho have airports. Mthatha is served by SA Express. Municipalities The Eastern Cape has six district municipalities and two metropolitan municipalities. Buffalo City Metropolitan Municipality Towns: East London, King Williams Town The Port of East London is South Africa’s only river port. The airport, rail links and the East London IDZ contribute to making this an important regional centre. Buffalo City hosts a variety of manufacturers from vehicles to batteries and cotton textiles and is responsible for 19.6% of provincial GDP. There are many opportunities for agriprocessing because of the fertile hinterland and as part of the Sunshine Coast, tourism is an important contributor to the local economy. Nelson Mandela Bay Metropolitan Municipality Towns: Port Elizabeth, Uitenhage, Despatch With two ports, a large airport and a concentration of manufacturing concerns, the Nelson Mandela Bay metropole is one of the province’s key economic drivers. It contributes 38.7% to provincial GDP. Volkswagen, General Motors and Ford are all located within the municipality, as are several automotive supplier companies. Aspen, a pharmaceutical company, and South African Breweries are examples of other large concerns. EASTERN CAPE BUSINESS 2020 8
SPECIAL FEATURE Nelson Mandela Bay has a population of 1.1-million and many educational institutions. The Nelson Mandela Bay Stadium and St George’s Park cricket ground host provincial and international sports matches. Superb beaches and plentiful outdoor options make the area a popular tourist stop. The Addo Elephant National Park is less than an hour’s drive from the Port Elizabeth city centre. Alfred Nzo District Municipality Towns: Matatiele, Mount Frere, Mount Ayliff The smallest district is in the mountainous northeast, with hiking trails for tourists. There is scope for expansion of tourist activities, and a transfrontier park between South Africa and Lesotho could boost the area’s economy. Subsistence agriculture and forestry are the major economic activities. Amathole District Municipality Towns: Cathcart, Stutterheim, Morgan’s Bay, Willowvale, Butterworth, Alice, Bedford The rural Amathole District surrounds the metropolitan area of Buffalo City. Pineapple and forestry are two of the most important agricultural activities. Popular resorts on the Wild Coast attract many tourists to the area. Hogsback and other towns near the Amatole Mountains offer beautiful scenery and popular beaches. Alice hosts the main campus of the University of Fort Hare. Chris Hani District Municipality Towns: Middelburg, Molteno, Dordrecht, Cradock, Queenstown, Lady Frere, Elliot Sheep farming is an important part of the economy. Some coal is found in the north and tourist activities include fly-fishing. The Foodcorp factory in Molteno manufactures Ouma rusks. Queenstown is a centre for cattle farming and has some manufacturing activities. The Mountain Zebra National Park is near Cradock. The Grootfontein Agricultural College and Research Station is in Middelburg, and the Marlow Agricultural College is near Cradock. Joe Gqabi District Municipality Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie Cattle and sheep farming make up 80% of land use, while commercial forestry is a big contributor to employment. There are large forestry plantations at Ugie and Mount Fletcher. Maize is grown along the Orange River and wheat in the foothills of the Drakensberg mountains. Tiffindell has been revived as a ski resort. The village of Rhodes hosts a “Stoepsit” festival in February. OR Tambo District Municipality Towns: Mthatha, Coffee Bay, Port St Johns, Qumbu, Bizana, Flagstaff OR Tambo District Municipality encompasses some of the province’s least-developed areas and contains one of South Africa’s most important ecological areas, the Pondoland Centre of Plant Endemism. There is mining in some areas but plans for titanium mining on seaside dunes are being contested. A Wild Coast Spatial Development Initiative exists to plot further development. Forestry is a big employer. EASTERN CAPE PROVINCE Free State LESOTHO Rouxville Zastron Matatiele Britstown Bethulie Ixopo R56 N12 De Aar Mount Aliwal North Colesburg Oviston Lady Grey Mount Kokstad Northern Cape R58 Fletcher Ayliff Burgersdorp Port Edward Hanover Jamestown Barkly R61 N10 East Maclear Mount Frere N1 Steynsburg N6 Dordrecht N2 Victoria West R56 Middelburg Molteno Elliot Lusikisiki Indwe Hofmeyr Mthatha Three Sisters Queenstown Port St Johns R61 Western Cape Tsomo Tarkastad Coffee Bay Beaufort West Graaff-Reinet Cradock Sada Cathcart N R61 R63 Somerset Aberdeen Stutterheim Butterworth Pearston East Adelaide Fort Komga N9 Beaufort Cookhouse Bhisho N2 Klipplaat Rietbron N10 King William's Town EAST LONDON Willowmore Kirkwood Grahamstown Steytlerville Paterson N2 Hamburg INDIAN OCEAN Uniondale R72 Joubertina N9 Uitenhage Port Alfred Motorway Knysna N2 Humansdorp Main Road Kareedouw PORT ELIZABETH Railway Plettenberg Bay Jeffreys Bay MOZAMBIQUE Sarah Baartman District Municipality special feature Towns: Graaff-Reinet, Humansdorp, Jeffreys Bay, ZIMBABWE Makhanda (Grahamstown) BOTSWANA The western part of the province Limpopo contains the NAMIBIA biggest municipality geographically. Large Mpumalanga commercial farms in the Karoo Gauteng produce highquality meat, wool and mohair, while the coastal North West SWAZI- LAND belt has dairy farming and some Free Stateforestry. KwaZulu- Natal The Kouga Northern Valley Cape is a big deciduous fruit LESOTHO producer, while the Kirkwood/Addo area is known for its citrus. Sarah Baartman has three of the Eastern Cape region’s national parks and several private game Western Cape farms. Makhanda hosts the National Arts Festival, Rhodes University and several fine schools. ■ KwaZulu- Natal 15 eaStern cape buSIneSS 2013 9 EASTERN CAPE BUSINESS 2020
