South African Business is an annual guide to business and investment in South Africa. Published by Global Africa Network Media in Cape Town, the 2016 edition is in its fourth year of publication.
The publication provides up-to-date information and analyses of the country's key economic sectors, as well as detailed economic overviews of each of the nine provinces in South Africa.
OVERVIEW Regional
OVERVIEW Regional overview: Eastern Cape The Eastern Cape, on the south-eastern coast of Africa, is fast coming to be seen as one of South Africa’s international assets. This status has been enhanced by the allocation of two of South Africa’s five industrial development zones (IDZs) to the province. The potential the province offers is significantly bolstered by the shipping traffic that operates between Europe and Asia and the Far East. Logistically, the Eastern Cape is well served, with two major airports in Port Elizabeth and East London, and several facilities serving smaller towns such as Mthatha and Bhisho. Many farms and private game reserves also have airstrips. Another key logistics factor is recent construction of the large new port at Ngqura, within the Coega IDZ, bringing to three the number of effective ports operating in the Eastern Cape. Key sectors Financial services, real estate and banking are the largest contributors to the province’s GDP. Absa, Nedbank, Standard Bank and Capitec Bank are among several big finance groups who have a strong presence in the Eastern Cape. Coega Industrial Development Zone (IDZ), an R86-million agro-processing multi-user facility, is booming. This facility is enabling small, micro and medium enterprises to expand their value addition activities in the Eastern Cape. Prospective investors involved in the processing of coffee, cereals, protein and energy supplements have shown a keen interest in the facility. The Eastern Cape Provincial government wants to ensure that that there is enhanced integration in the value chain and linkages to the deep-water container Port of Ngqurha for handling of global exports such as frozen pineapples from places like Ngqushwa that are destined for the Japanese market. In another groundbreaking development since the establishment of the Eastern Cape Rural Development Agency, the province has launched two rural enterprise development hubs at Mqanduli and Ncorha, to the tune R45- million each. The hubs already have 1 500 and 900 tons of mealies in storage respectively. In the 2015/16 financial year, two additional hubs will be established at Ludeke in Mbizana and at Mt. Arthur in Lady Frere. Tourism The Provincial government is working on a sustainable plan to revitalise Magwa and Majola tea estates, given the economic potential of the two entities. During the term it will also focus on diversifying the economic value add of the two estates through tourism promotion initiatives, among others. According to Premier SOUTH AFRICAN BUSINESS 2016 156
OVERVIEW GENERAL GOVERNMENT SERVICES 21.2% PERSONAL SERVICES 10.3% FINANCE, REAL ESTATE & BUSINESS SERVICES 22.4% TRANSPORT, STORAGE & COMMUNICATION 8.9% WHOLESALE, RETAIL, MOTOR TRADE, CATERING & ACCOMMODATION 13.8% CONSTRUCTION 2.6% ELECTRICITY, GAS & WATER 1.1% MANUFACTURING 17.5% MINING & QUARRYING 0.1% AGRICULTURE, FORESTRY & FISHING 2.1% Eastern Cape sector contribution. SOURCE: EASTERN CAPE ECONOMIC DEVELOPMENT, ENVIRONMENTAL AFFAIRS AND TOURISM Phumulo Masualle, the province also intends to target the improvement of roads to tourism establishments in the province, prioritising the roads to Baviaanskloof, Hole-inthe-Wall, Dwesa-Cwebe and Coffee Bay. “We are rising to the task of creating sustainable jobs for our people. A total of 24 737 jobs, against a target of 13 234, have been created through economic agencies such as the Eastern Cape Development Corporation, the East London IDZ, and the Coega Development Corporation. We are targeting 14 investments with the value of R2 237-billion in the two IDZs,” said Masualle. The following job creation targets were set for the 2015/16 financial year: Eastern Cape Development Corporation (ECDC) 7 000, Coega 8 797 and East London IDZ 5 500. In the coming year, jobs will be created in manufacturing, logistics, alternative energy, agro-processing and services. Economic future Renewable-energy projects are flourishing throughout South Africa, but the Eastern Cape has many big projects planned. The transport of wind turbines from the Port of Ngqura to the Jeffreys Bay wind farm began in July 2013, and this is becoming one of the largest wind farms in South Africa, with in excess of 60 turbines. Basil Read Matomo also began construction on a R550-million wind farm near Port Elizabeth in 2015, while the 27MW MetroWind Van Stadens wind farm transported their nine turbines from the Port of Ngqura to their facility that aims to provide 27MW. The implementation of the Strategic Integrated Projects in the province is progressing well. The upgrades of the Mthatha Airport runway and apron are complete, with work nearing completion on the Mthatha Airport terminal building. The Mzimvubu Multipurpose Development Project is another impressive development which is comprised of a multi-purpose dam to supply water for new irrigation development, hydropower generation and domestic water requirements in the Mzimvubu River Catchment. The proclamation of the Wild Coast Special Economic Zone (SEZ) has been identified as a key focus area in the coming financial year, with a pre-feasibility study for the Wild Coast SEZ being approved in 2015. EASTERN CAPE www.ecprov.gov.za Capital Population Area Premier Bisho 6 916 200 (2015) 168 966km 2 Phumulo Masualle (ANC) Languages Afrikaans, isiXhosa, English 157 SOUTH AFRICAN BUSINESS 2016
