EASTERN CAPE
Trade & Investment Mission Hannover Messe | Lower Saxony 4 - 8 April 2011
EASTERN CAPE DEVELOPMENT CORPORATION | 2011
Contents Overview of South Africa
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Overview of Eastern Cape
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Eastern Cape Growth Sectors
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EASTERN CAPE Mission Co-ordinators
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EASTERN CAPE Delegates
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– Department of Economic Development and Environmental Affairs – Eastern Cape Development Corporation – Nelson Mandela Bay Municipality – Buffalo City Municipality – East London Industrial Development Zone
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09 11 13 15
mozambique
zimbabwe botswana Limpopo Gauteng
Namibia
North West
Mpumalanga
JHB
Free State
KwaZuluNatal
BLOEMFONTEIN
Northern Cape
DURBAN
eastern cape BHISHO
EAST LONDON
Western Cape CAPE TOWN
PORT ELIZABETH
south africa
Aliwal North Mount Frere
Lusikisiki
Mthatha
Middelburg
Queenstown
Graaff-Reinet
Cradock
Port St Johns
Butterworth
Aberdeen
BHISHO King Williams Town
Willowmore
Grahamstown
Uitenhage
EAST LONDON
Port Alfred
Humansdorp
Nelson Mandela Bay Port Elizabeth Jeffreys Bay
Eastern cape
EASTERN CAPE DEVELOPMENT CORPORATION | 2011
SOUTH AFRICA Situated at the southern most tip of Africa, South Africa is a vibrant country alive with possibility and opportunities. South Africa, a popular and heavily sought after tourist destination, received 9.9 million visitors in 2009. South Africa is positioned for prime access to the 14 countries comprising the Southern African Development Community (SADC) – a combined market of over 250 million people – as well as the islands off Africa’s east coast and even the Gulf States and India. Having recently played host to the highly successful 2010 FIFA World Cup, South Africa excelled at being the first African country to host this event. Eager to take stock of what this opportunity has meant for the country in tourism and economic growth, South Africa has created a better life for many of its people.
EASTERN CAPE Discover a land of opportunity, where a highly developed first world economy meets the huge potential of an emerging economy which creates a dynamic investment environment. Home to approximately 6.9 million people, the province has the third largest population in South Africa. It has two major cities, Port Elizabeth and East London and vast natural resources which offer a kaleidescope of opportunities for investors such as grazing for livestock, forests, marine life, rich farming soils and wilderness. The Eastern Cape’s positioning affords it easy access to African and global markets through the sea, road, rail and air networks and has a world-class commercial and industrial infrastructure. Apart from these advantages, the Eastern Cape is fortunate to have more than 300 days of sunshine a year and unsurpassed quality of life.
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2011 | EASTERN CAPE DEVELOPMENT CORPORATION
EASTERN CAPE Growth sectors GENERAL MANUFACTURING The manufacturing sector is a key contributor towards the provincial economy. The dominant industries within manufacturing are three automotive manufacturing plants and automotive component manufacturers (see below), as well as pharmaceuticals (with Aspen as the largest producer of generic drugs in Africa located in Port Elizabeth). Dairy, food processing, wool and mohair are the three primary active agro-processing industries in the province. The plastics industry, albeit small, is highly diversified throughout the province where automotive, packaging, moulding and extrusion, household and construction industries are prominent. AUTOMOTIVE The Eastern Cape’s vehicle manufacturers are among the top companies in the automotive industry, with the focus mainly being on General Motors, Volkswagen, MercedesBenz and Ford automobiles. The province is also home to automotive component manufactures which have established themselves globally, with the European Union as the largest export destination for local components. AGRICULTURE & AGRO-PROCCESING The agriculture sector hosts a wide variety of commodities ranging from fruit production such as pineapples, citrus and tomatoes, livestock and ostrich farming to forestry as well as wool and mohair production. BUSINESS PROCESSING OUTSOURCING & OFFSHORING (BPO & O) With the main provincial economic hubs of Port Elizabeth and East London, this is a rapidly growing industry with the potential for development. At the centre of this anticipated growth are the Coega and East London Industrial Development Zones. FINFISH MARICULTURE Mariculture is a new industry that has developed in response to declining catches and increased fish prices. The Eastern Cape is the ideal setting for this venture due to warmer sea temperatures and Africa’s leading mariculture research institution situated at Rhodes University in Grahamstown. 04
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EASTERN CAPE DEVELOPMENT CORPORATION | 2011
EASTERN CAPE MISSION CO-ORDINATORS
PURPOSE OF THE TRADE MISSION The Eastern Cape trade mission is aimed at strengthening the economic relations between the Eastern Cape province and Lower Saxony, by exploring joint venture partnerships as well as promoting exports and investments. The Eastern Cape is geared towards taking advantage of the sales potential - in various industries - that makes the Hannover Messe the world’s premier technology event.
Bulumko Nelana mission LEADER
Tel: +27 43 605 7096 pendulwa.guma@deaet.ecape.gov.za
Chumile Ntuthu
mission co-ordinator
Tel: +27 041 373 8260 cntuthu@ecdc.co.za
Ikhona Mvaphantsi mission co-ordinator
Tel: +27 43 704 5739 Ikhona@ecdc.co.za HANNOVER, LOWER SAXONY MISSION
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Coega IDZ – deep water port outside Port Elizabeth
EASTERN CAPE DEVELOPMENT CORPORATION | 2011
DEPARTMENT OF ECONOMIC DEVELOPMENT & ENVIRONMENTAL AFFAIRS (DEDEA) DEDEA, the custodian of the provincial economic development agency Eastern Cape Development Corporation (ECDC), aims to create a province where all share in the benefits of environmental management, sustainable development and economic growth. DEDEA’s core business is that of spearheading growth and development of provincial economies, all the while committing to improving the lives of the Eastern Cape citizens.
Mcebisi Jonas
MEMBER OF THE EXECUTIVE COUNCIL: EASTERN CAPE DEPARTMENT OF ECONOMIC DEVELOPMENT AND ENVIRONMENTAL AFFAIRS
Tel: +27 43 605 7183 andiswa.kamba@deaet.ecape.gov.za www.dedea.gov.za
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EASTERN CAPE DEVELOPMENT CORPORATION (ECDC) ECDC provides a range of services aimed at achieving the socio-economic goals of the Eastern Cape through innovative private sector interventions. ECDC facilitates and supports sector development in the Eastern Cape through: • Supporting existing business • Creating opportunities for new business • Growing and sustaining existing markets and developing new markets • Improving access to enterprise finance • Ensuring that skills, infrastructure and policies support business development
ECDC – head office in East London
EASTERN CAPE DEVELOPMENT CORPORATION | 2011
EASTERN CAPE DEVELOPMENT CORPORATION (ECDC) INVESTMENT PROMOTION ECDC is the first point of call for local and foreign investment needs in the province, where at no cost the corporation assists potential investors with: • Identifying business opportunities in key sectors • Facilitating and financing joint ventures • Accessing investment incentive schemes and local business service networks • Creating access to a diverse portfolio of available land and buildings • Facilitating corporate relocations and aftercare services • Lobbying provincial and national government for relevant interventions TRADE & EXPORT PROMOTION ECDC’s focus on trade and export promotion is geared towards creating maximum exposure for Eastern Cape companies while increasing export sales. The corporation also encourages partnerships through joint ventures, agents or distributors and strengthening ties between exporters and importers. PROPERTIES ECDC has a substantial property portfolio comprising of industrial and commercial premises at affordable rates throughout the province. These include large industrial areas ranging from 400m² and 3,000m² and which are suitable for production and manufacturing of goods such as textile, plastics and electronics. This property portfolio makes ECDC one of the biggest property owners in the province. Sithembele Mase
Chief Executive Officer
Tel: +27 43 704 5611 smase@ecdc.co.za www.ecdc.co.za
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Port Elizabeth – the largest city in the Eastern Cape
EASTERN CAPE DEVELOPMENT CORPORATION | 2011
NELSON MANDELA BAY MUNICIPALITY (NMBM) NMBM is one of six metropolitan municipalities in South Africa. It is located on the shores of Algoa Bay in the Eastern Cape province and comprises of Port Elizabeth and nearby towns, Uitenhage and Despatch. The municipality, in partnership with key stakeholders, aims to build the competitiveness of the area and has prioritised key sectors for further growth and development: • Manufacturing - automotive, agro-processing, clothing and textiles, chemicals metals and minerals • Tourism • Services - Business Processing Outsourcing and Offshoring (BPO & O) and Information Communication Technology (ICT) • Creative industries - film Nelson Mandela Bay is a major exporter of a variety of commodities, the most well known being automotive manufacturing which is a rapidly expanding industry. Based in Uitenhage, Volkwagen SA is the biggest exporter of vehicles from the African continent as well as components to both domestic and world markets. Similarly, General Motors South Africa and Ford Motor Company are also highly competitive exporters in automotive manufacturing in Nelson Mandela Bay. The Port of Ngqura and the Coega Industrial Development Zone (IDZ), located outside Port Elizabeth, are well positioned as a world class infrastructure site. The 11,000 hectare Coega IDZ is designed to meet the needs of manufacturers in a global market-place. Zanoxolo Wayile Executive Mayor
Tel: +27 41 506 3267/8 lgrootboom@mandelametro.gov.za www.nelsonmandelabay.gov.za
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East London port – the only natural river port in Southern Africa
EASTERN CAPE DEVELOPMENT CORPORATION | 2011
BUFFALO CITY MUNICIPALITY (BCM)
Buffalo City Municipality is the local authority of East London and King William’s Town (50km West of East London). With East London as its centre, the area is an ideal location for import and export business to the rest of South Africa’s market centres such as Cape Town, Durban and Johannesburg as well as international markets. Low input costs and adequate infrastructure – rail, road, sea and air – are key to attracting investors into the area. Mercedes-Benz SA (one of South Africa’s largest foreign investors), Nestle (only chocolate manufacturer in South Africa), Johnson & Johnson (manufacturer and distributor of health care products) and Marley FloorworX (first and most successful process for tile-and-sheet floor covering production in South Africa) are some of the major companies in Buffalo City. The area is well suited to local tourism, ecotourism and is rich in heritage. Zukisa Faku
EXECUTIVE Mayor
Tel: +27 43 705 2000 lungig@buffalocity.gov.za www.buffalocity.gov.za
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East London IDZ – the automotive supplier park
EASTERN CAPE DEVELOPMENT CORPORATION | 2011
EAST LONDON INDUSTRIAL DEVELOPMENT ZONE (EL IDZ) The EL IDZ is promoting economic growth in the region by offering both foreign and local investors a globally competitive combination of infrastructure, services and labour. The EL IDZ is positioned only six kilometres from East London’s river port and two kilometres from the airport. 22 investors have been secured by the EL IDZ and already a total investment of R920 million has been injected in the Zone by the 17 businesses which are operational. With the concept of clustering industries to encourage efficiency and logistics savings, the EL IDZ launched the multi-original equipment manufacturing model which entails shared automotive component manufacturing facilities. This model has seen 10 component manufacturers investing in the Zone and this has proven to be a valueadd for Mercedes Benz SA. The EL IDZ is targeting key sectors for investment: • Automotive • Marine aquaculture • Agro-processing (bio-fuels, food and timber processing) • Pharmaceuticals • Information Communication Technology (ICT) and electronics • Business Process Outsourcing & Offshoring • Renewable energy and advanced manufacturing Simphiwe Kondlo
CHIEF EXECUTIVE OFFICER
Tel: +27 43 702 8200 simphiwe@elidz.co.za www.elidz.co.za
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Cultivating
BUSINESS
INNOVATION
IN THE EASTERN CAPE +27(0) 43 704 5606 | invest@ecdc.co.za | www.ecdc.co.za
SMGAFRICA_6090
For more information contact:
ECDC Export Promotion Tel: +27 43 704 5606 Email: export@ecdc.co.za ECDC Investment Promotion Tel: +27 43 704 5606 Email: invest@ecdc.co.za HEAD OFFICE ECDC House, Ocean Terrace Park Moore Street, Quigney, East London PO Box 11197, Southernwood 5213 Tel: +27 (0) 43 704 5600 Fax: +27 (0) 43 704 5700
www.ecdc.co.za