1996 - 2011 OCTOBER 2011 • NO. 2
Helping shape a prosperous economic future for the Eastern Cape
Cover photo: Umsobomvu Development Cooperative, Middleburg
ii
ECDC V I S I ON An innovative leader for
p r o m o t i n g s u s t a i n a b l e econo m i c g ro w t h & d e v e l o p m ent for the Eastern Cape
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ECDC M I SS I ON P R O M OT E S U S TA I N A B L E
d e v e l o p m ent
f o r t h e E a s t e r n C a p e B Y:
* Providing innovative development finance solutions * Leveraging resources, strategic alliances, investment and partnerships
PAGE 01
HISTORICAL
01
OV E R V I E W
KEY
PAGE 05
LEGISLATIVE/ POLITICAL
FRAMEWORK
06
IMPACT AREAS PAGE 27
PAGE 77
SUCCESS
10
STORIES IN 2010/11
02
07
STRATEGIC
FOCUS PAGE 33
PAGE 99
MEDIA POLICY PAGE 101
SPOKESPERSON
POLICY
11
12
PAGE 09
KEY ROLE
03 OF ECDC
08 ECDC NOTABLE ACCOMPLISHMENTS PAGE 39
PAGE 15
LEADERSHIP 04 ABOUT THE
EASTERN CAPE PAGE 21
PAGE 53
ECDC’S ROLE IN CATALYTIC
PROJECTS
09
14 13 PAGE 105
05
PAGE 111
M E D I A
RESOURCES
MEDIA TEAM PAGE 109
15
C O N TA C T S PAGE 113
Abbreviations
EASTERN CAPE DEVELOPMENT CORPORATION:
HISTORICAL OV E R V I E W
HISTORICAL OVERVIEW
01
01 The Eastern Cape Development Corporation is the premier economic development and investment promotion agency for the Eastern Cape province of South Africa.
CPDB, CSBC, TDC & CIMEC amalgamation ECDC was formed out of various development entities: Ciskei Peoples Development Corporation (CPDB), Ciskei Small Business Corporation (CSMC), Transkei Development Corporation (TDC) and the Centre for Investment and Marketing in the Eastern Cape (CIMEC). ECDC established in 1996 Since it was formed in 1996 by an Act of the Eastern Cape Legislature, ECDC has played an important role in the economic development of the province and as a key partner to business and entrepreneurs. ECDC has a long history of promoting economic enterprise, activity and development in the province. It has achieved this by financing public investments with the view that improved economic activity leads to reduced unemployment and poverty levels for the most marginalised people of the Eastern Cape.
ECDC’s footprint ECDC’s head office is in East London, which is centrally situated in the province. ECDC reaches the Eastern Cape via a network of regional offices in Port Elizabeth, King William’s Town, Queenstown, Butterworth and Mthatha.
zimbabwe botswana
Namibia
mozambique
Two more offices In 2010, ECDC opened two offices, in Aliwal North and in Mount Ayliff, in the Joe Gqabi District and Alfred Nzo District municipalities respectively. This has assisted ECDC to respond faster to customers in these areas.
Johannesburg
DURBAN eastern cape
CAPE TOWN
EAST LONDON
PORT ELIZABETH
south africa
03
HISTORICAL OVERVIEW
The Eastern Cape, a province of vast potential and world-class industrial sectors, is working steadily to overcome the severe underdevelopment it inherited from apartheid, particularly in its large rural areas.
Alfred Nzo District
Joe Gqabi District
Aliwal North
Mthatha
N10
Graaff-Reinet
Queenstown
Chris Hani District
Cradock
Cacadu District
Willowmore
N2
Port St Johns
Butterworth
Amathole Bhisho District
Aberdeen
N9
Mount Ayliff
OR Tambo District Lusikisiki
Middelburg
N9
Mount Frere
N9
King William’s Town N10
East London
Grahamstown
Uitenhage N2
Humansdorp
Jeffreys Bay
Nelson Mandela Metropole
Port Alfred
Nelson Mandela Bay
KEY
Port Elizabeth
Major economic city Secondary economic city Airport ECDC office ECDC satellite office
LEGISLATIVE/POLITICAL
FRAMEWORK
LEGISLATIVE/POLITICAL FRAMEWORK
05
02 As an entity that is fully-owned by the provincial Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), ECDC draws its mandate from the Eastern Cape Development Corporation Act 2 of 1997.
Corporate governance ECDC activities are overseen by a board of directors, which represents government, business and labour. The board is appointed by the MEC for Economic Development, Environmental Affairs and Tourism. PGDP informs developmental priorities The financier is driven by the economic development priorities of the provincial government as laid out in its official roadmap, the Provincial Growth and Development Plan (PGDP). Its strategic direction is also influenced by the policy and budget speech of DEDEA. Informed by national, local policy ECDC’s activities are closely aligned with the strategic intent of the PGDP as well as broader national and local policy interventions designed to deliver growth, employment and reduce the levels of poverty in the country. Better coordination In time, ECDC envisages better coordination between its objectives and the provincial government’s plans each year. As a repository of critical knowledge and economic intelligence, ECDC should respond faster and more efficiently to emerging challenges and difficulties.
LEGISLATIVE/POLITICAL FRAMEWORK
07
ECDC has carved out a niche as a premier development finance institution (DFI) that delivers on government’s objectives. Consequently, ECDC has been resolute in its commitment to carry out a mandate to plan, finance, coordinate, promote and implement development in the province.
KEY ROLE OF ECDC
KEY ROLE OF ECDC
03
09
Key role of ECDC
1
Stimulate economic activity
through focused investment IN VITAL SECTORS
of the Eastern Cape economy 2
INVEST IN INTELLECTUAL LEADERSHIP
KEY ROLE OF ECDC
3
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Optimise all resources
so as to maximise investment returns and attain financial sustainability
4
Build a strong brand for the corporation
5
Establish integrated partnerships with stakeholders TO ENSURE MAXIMUM LEVERAGE OF RESOURCES & DEVELOPMENT OUTCOMES
Jeffrey’s Bay -
A surfing paradise and home to the best right-hand point break wave in the world. Fondly known as J’Bay it hosts the annual Billabong Pro surf contest which sees international surfers make the waves work with them for this prestigious title.
www.ecdc.co.za/fromabove
LEADERSHIP
04
LEADERSHIP
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Leadership
ADVOCATE Oyama MabANDLA Chairman
Sitembele Mase Chief executive officer
With a Jurisprudence doctorate from the Columbia University School of Law, Oyama is a seasoned scholar and corporate figure who brings invaluable experience in areas such as corporate law, securities and capital markets, mergers and acquisitions, and international trade and investment. He is a member of the advisory board for financial services company JP Morgan, chairs the Langa Group, a holding company with petroleum and pharmaceuticals investments, former group chairman of Vodacom, board member of Consol Glass and construction company, Group Five.
A Master of Business Leadership graduate from the University of South Africa, Sitembele is experienced in investment, change management and services marketing. Before joining ECDC, Sitembele was chief executive officer of the South African Micro-Finance Apex Fund. He worked for ECDC’s predecessor, the Transkei Development Corporation (TDC) initially as a business analyst, and later as senior manager responsible for Queenstown, Cradock and Aliwal North.
LEADERSHIP
Msulwa Daca Chief financial officer A chartered accountant by profession, Msulwa brings a wealth of experience after successful years at leading professional services firm KPMG and the South Africa Revenue Services (SARS). Before joining ECDC, he was chief director of accounting support services at the National Treasury in Pretoria.
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Noludwe Ncokazi Executive manager: development services Noludwe graduated with a Bachelor of Commerce from the University of the Western Cape in 1994. Since then, she has completed an honours degree in economics and is currently working on a masters degree. Her roles have spanned four of South Africa’s nine provinces as educator, financial manager, chief executive officer, executive consultant and general manager in the public and private sectors. Before joining ECDC, Noludwe was general manager for economic development, tourism and rural development at Buffalo City Municipality (BCM).
Luyanda Tsipa Executive manager: development properties
Buhle Dlulane Executive manager: development investments
With 10 years experience in immovable asset management, Luyanda is a BJuris graduate of the University of the Transkei. Her experience includes a role at the Land Claims Commission and the National Department of Public Works. Her roles included deputy director of asset management and leaseholds, director of prestige property management and chief director at the Johannesburg regional office.
Buhle’s academic credentials include an UNISA masters degree, a honours degree from Fort Hare University, diplomas from Newport University in California as well as a number of post graduate courses in credit law, corporate banking, turnaround management, rural banking from various institutions in South Africa, United States of America and Europe. His previous roles include transitional CEO of the Eastern Cape Rural Finance Corporation (now Uvimba Finance) and deputy director general at the national department of agriculture where he developed and rolled out the R1,6 billion MAFISA development wholesale fund
LEADERSHIP
Management team Development Investments Manager: Alfred Mamafha Manager: Mninawe Nomnga Development Services Enterprise development services manager: Mpumi Fundam Investment and Trade Promotion Manager: Mlamli Nodada Development Projects Manager: Phakamisa George Development Properties Property development Manager: Alex Noholoza
Regional team Butterworth - Mkhuthazi Buhe King William’s Town - Ken Bern Mthatha - Jabulani Nkosi Port Elizabeth - Belinda Vabaza Queenstown - Lulama Moses
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ABOUT THE
EASTERN CAPE The Eastern Cape, on the southernmost coast of Africa, is the second largest of South Africa’s nine provinces, covering around 14% of the country’s land mass. About 60% of the province’s 6,9 million people live in rural areas. Most of the remaining population live and work in the province’s towns and cities, especially the main cities of Port Elizabeth and East London.
ABOUT THE EASTERN CAPE
05
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The Eastern Cape has vast natural resources which offer a kaleidescope of opportunities for investors such as grazing for livestock, forests, marine life, rich farming soils, water and wilderness.
province new sa’s premier livestock region The province is now South Africa’s premier livestock region which presents excellent opportunities for meat, leather and wool processing. Due to its climatic conditions, the province is also a major dairy producer. Similarly its manufacturing prowess has been built over more than a century and now is known as the “Little Detroit” of South Africa in the automotive sector. Its knowledge production is aided by numerous world-renowned educational institutions across the province spanning the complete spectrum of learning. This provided invaluable support to sectors such as manufacturing as well as agro-processing. The two Eastern Cape IDZs are purpose-built industrial estates, linked to an international port or airport which have been designated for new investment by export-oriented industries and related services. The national government has invested R3 billion into the Eastern Cape’s IDZs - Coega and East London IDZ. 10-year plan There is also continued investment into the province’s infrastructure which is being driven by a 10-year provincial growth and development plan (PGDP) which seeks to integrate the province’s sophisticated urban-based economy with the impoverished economy of the rural areas. It is the launch pad for the sub-Saharan market supported by multi-modal logistics – a national rail and road network, three airports and three ports.
ABOUT THE EASTERN CAPE
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MAJOR
CITIES East London / Port Elizabeth
CAPITAL
BHISHO - 70km from East London
P O P U L AT I O N
6,743,000 13,5%OF TOTAL SA POPULATION
AREA IN KM 2
169,580 14% OF TOTAL SA AREA
83,4% 9,3% 3,6%
isiXHOSA AFRIKAANS ENGLISH
BUSINESS LANGUAGE:
EN G L I SH
From here investors have duty-free access into the major world markets of the USA (through AGOA) and European Union (through the FTA). The Eastern Cape also has a suspension regime for duty and VAT in its two IDZs. COMPETITIVE, EMERGING COSTS VS DEVELOPED INFRASTRUCTURE Lastly, and possibly most importantly, the Eastern Cape has the advantage of competitive emerging market cost structures, while at the same time enjoying welldeveloped business infrastructure in the major centres. Two thirds of the population live in the ex-homeland or “Bantustan”, areas of the former Transkei and Ciskei. Historically, the Eastern Cape was a crucible of conflict. This was the eastern “border” where the early Cape colonial settlers clashed with the Xhosa, the Khoi and the San. This was the birthplace of apartheid resistance movements – the African National Congress, the Pan Africanist Congress, and the Black Consciousness Movement, with famous leaders from the province. Industrial parks such as the Eastern Cape’s IDZs are proof of the province’s solid industrial base, consolidating its strategic importance as an international investment, trade and logistics hub. pro w ess in b usiness , social , arts , academic , sport The Eastern Cape is also home to outstanding personalities who have provided leadership in all spheres of life in business, social, artistic, academic and sports circles.
South Africa is a land of great diversity, a world in one country. The Eastern Cape holds all that South Africa has to offer – all in one province. It contains all seven of South Africa’s biomes or ecological zones and offers an unrivalled range of climates, landscapes and cultures.
ABOUT THE EASTERN CAPE
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GROSS REGIONAL PRODUCT
R88 bn (2003)
4,4
%
8,1%
OF TOTAL SA GROSS GDP
PER ANNUM
QUARTER ON QUARTER
GDP GROWTH
F I RST Q UARTER 2 0 1 1
INFLATION 4,9% 4,1% 5,3%
PORT ELIZABETH
14
EAST LONDON
ALL URBAN AREAS
CONSUMER CONFIDENCE
INCREASED BY ONE POINT F I RST Q UARTER 2 0 1 1
GROSS DOMESTIC PRODUCT
R182,147 M 7,6 (2009)
%
OF TOTAL SA GDP
SECTORS CONTRIBUTED
TO THE EC ECONOMY
0% 1%% 2 2% 8% 9% 11% 11% 17% 19% 20%
Mining Electricity Construction Agriculture Transport Community Taxes-Subs Trade Manufacturing Government Finance
For more information about the Eastern Cape economy: www.ecsecc.org
KEY
IMPACT AREAS
KEY IMPACT AREAS
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ECDC operational and impact activities are organised through the following five business units: Development Investments - identifies business opportunities in key sectors, facilitates and finances joint ventures, accesses investment incentive schemes and local business services networks. Enterprise Development Services - provides nonfinancial services, as well as business linkages and networks that strengthen the SMME sector. Investment and Trade Promotion - assists investors and business people to harness the potential in the Eastern Cape province and grow successful commerce and industry Development Projects - helps businesses establish strategic pilot projects to generate economic activity. Development Properties - offers small to medium enterprises suitable premises at affordable rates.
PROVIDES
CHANNELS, PLATFORMS & RESOURCES to bring about a better QUANTITY & QUALITY OF
economic activity in the province ECDC head office is situated in East London, with regional offices in Port Elizabeth, Queenstown, Mthatha, Butterworth, King William’s Town, Mt Ayliff and Aliwal North. Through this advanced provincial network, ECDC provides a comprehensive package of products and services comprising development finance, enterprise support, development projects, and investment and trade promotion.
PRODUCTS & SERVICES GEARED TOWARDS LOCAL SMALL, MEDIUM & MICRO ENTERPRISES (SMMEs) ECDC offers a range of short and long term finance products and business advisory services which include emerging contractors and craft enterprise development programmes. ECDC finances and provides enterprise support services to SMMEs that demonstrate one or a combination of these qualities: • Value addition to the economy • Rural and township development • Increased export income • Job creation and job retention • New greenfield development • Expansion and rehabilitation
KEY IMPACT AREAS
29
EXPORT OPPORTUNITIES FOR LOCAL MANUFACTURERS ECDC trade and export promotion service focuses on the development of exports from Eastern Cape companies. This value is realised through: • Years of experience in trade finance that assists local enterprises to penetrate global markets • The trade linkages created between local enterprises and trade contacts in sub-Saharan Africa and the BRIC region (Brazil, Russia, India and China) • Partnerships with the European Union and United States that provide a platform of trade with developed markets
IMVABA Eastern Cape Cooperative Development Fund The Imvaba fund is structured as part-loan and part-grant. The grant component is regarded as developmental (start-up) capital offered as an investment to the development cooperative in the province. Imvaba is a unique finance product aimed at enhancing the competitiveness of primary cooperatives in the manufacturing and services sectors of the province. Funding can be made available to qualifying co-operatives that have potential for sustainable growth but need further support in terms of improved capacity and competitiveness in the following areas: • Business development services • Feasibility studies/market research • Production efficiency • Technological improvement projects • Plant and machinery • Start-up requirements to the discretion of the adjudication committee
PROMOTING INVESTMENT INTO THE EC ECDC promotes the investment potential of the province by supporting new and existing investors at no cost 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
DEVELOPMENT PROJECTS ECDC implements high impact development projects in partnership with Eastern Cape communities and municipalities in order to: • Unlock economic potential in low-income areas • Implement BBBEE participation through public-private partnerships • Create and save jobs in declining sectors and distressed enterprises
INDUSTRIAL & COMMERCIAL PROPERTIES As one of the largest property owners in the province, ECDC’s portfolio includes: • Industrial property in Butterworth, Mthatha, Dimbaza and Fort Jackson • Retail property in Mdantsane • Commercial property available within ECDC-owned properties in various areas of the province
KEY IMPACT AREAS
ECDC is responsible to rightly and effectively channel state-owned development assets in the province, and thus plan, finance, coordinate, market, promote and implement the development of the Eastern Cape in the fields of industry, commerce, agriculture, transport and finance.
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STRATEGIC
FOCUS
STRATEGIC FOCUS
07
33
In 2010, ECDC embarked on a process of developing a new strategic plan envisaged to enhance the effectiveness of the corporation.
The purpose of the current strategy, which spans 2011 2015, sets a new direction for the development finance institution (DFI). The strategy enables ECDC business units to prioritise the implementation of key strategic projects, become effective and efficient with adequate capacity and demonstrate alignment with its mandate and DFI objectives.
After an extensive strategic planning process which included various key stakeholders, there was consensus that the new strategic focus of ECDC should be to re-invent the corporation as a leading DFI in order to promote growth and economic development. ECDC’s new strategic direction and vision is for the corporation to be a development finance institution which promotes economic growth in the Eastern Cape. It carries this out by: • prioritising emerging and existing enterprises, • domestic and foreign investors and • acting as an implementing agent in key high impact and catalytic projects. ECDC underpins its daily work with critical values of integrity, PROFESsIONALISM, accountability and teamwork for communities that it serves. For more details, go to www.ecdc.co.za to access the various services which each unit offers or download ECDC’s product overview brochure.
STRATEGIC FOCUS
E C D C 1
services
FINANCE
2
PROVIDE RELEVANT MARKET INFORMATION
3
Implement key special projects
4
CONTRIBUTE TO RESEARCH & POLICY INNOVATION
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Mercedes-Benz South Africa -
Since the mid 1950s, Mercedes-Benz vehicles have been assembled in East London and in 1984 Mercedes-Benz South Africa established a manufacturing plant here. The company is the single biggest employer in the city. www.ecdc.co.za/fromabove
ECDC NOTABLE
ACCOMPLISHMENTS
08
ECDC NOTABLE ACCOMPLISHMENTS
39
Growing entrepreneurship As part of its revised mandate, ECDC continues to make headway in developing the Eastern Cape SMME sector through non-financial support and financing. • in 2010/11 ECDC disbursed R109 million to 451 enterprises.
In 2009/10, an additional 107 small, medium and micro enterprises (SMMEs) received
direct financial support.
• Rural business remains a focus. “ECDC is encouraged that it continues
to impact positively on its core business of providing finance to small businesses
despite the many challenges it faced during the year. 45% OF FUNDING WENT TO
RURAL ENTREPRENEURS IN 2010/11. • IN 2009/10, Women-owned businesses received 37% of the loan funding, while
85% of loans went to small businesses with a turnover of less than R500,000 a year.
IN 2010/11, 13% OF FINANCING WENT TO WOMEN-OWNED BUSINESSES.
• ECDC also recorded a 49 % increase in loans disbursed to youth
over the previous period. 345 of the 907 ventures financed in the 2009/10 period are
youth owned. 15% OF FUNDING WENT TO THE YOUTH IN 2010/11.
• In order to help SMMEs access state procurement, ECDC assisted more than 5,865
entities with their company registration. 205 COOPERATIVES ARE ALSO NOW
LEGALLY REGISTERED.
ECDC NOTABLE ACCOMPLISHMENTS
41
FRANCHISES ECDC is responsible for the financing of the ownership of popular franchises such as Sasol, Steers, Nandos, Debonairs, Caltex, Shell garages as well as Spar stores. During 2010, it funded over 30 franchises to the tune of R50 million. The bulk of these franchises are in the former Transkei because of increased economic activity in the region.
F I N A N C I N G T Y P I C A L LY R A N G E S F R O M
R500,000 - R5 M CREATING JOBS
IN THE LAST FIVE YEARS, ECDC HAS FACILITATED THE
CREATION OF OVER 25,000 JOBS through its special projects such as pineapple and berry projects as well as through SMME funding.
Integrated Emerging Contractors Development Model (IECDM) Developed by Dr Spencer Lazurus while in the employ of ECDC, the IECDM is widely recognised as a landmark mentorship programme, assisting emerging contractors throughout the province. The two-year programme has produced more than 200 NQF contractors to date. It has been ranked by the Construction Industry Development Board as an industry best practice.
L andmark f I N A N C I N G While SMME funding remains key, ECDC assists several larger businesses with funding such as Matla Solar Water which produces solar water heaters and is based in the East London Industrial Development Zone. ECDC helped fund the pineapple industry in its restructuring.
ECDC NOTABLE ACCOMPLISHMENTS
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C raft support IN THE pAST FIVE YEARS, ECDC HAS ESTABLISHED A
CRAFT HUB
which assists rural women to be absorbed into the rural economy.
Together with the Department of Trade and Industry, it has also profiled women crafters at national and international level to stimulate demand for their products. In relationship that goes back to 2007/8, ECDC recently invested MORE THAN R600,000 in the Sthembene Women’s Development Enterprise (SWEDE), a women’s development project in rural Transkei. The money supplements a grant of more than R4,72 million which SWDE received from the Thina Sinako Programme. ECDC’s funding provides the bridging finance for the project. SWDE now employees 300 people, a jump from the 14 when it initially started.
Zwelakhe Creams ECDC has supported the development of an innovative cream which helps those suffering from albinism. With the pilot study now complete, the project is now seeking a commercial partner.
THE PROJECT PRODUCES: COSMETIC CREAMS * SUNSCREENS * ANTI-WRINKLE CREAMS * MOISTURISERS
for sensitive skins for those living with albinism
Tests have already proven that the Zwelakhe creams are more effective than any similar product in the market. A business plan, feasibility study and trials have been completed in Port Elizabeth and Middledrift with excellent results. Formulation was achieved through natural plant materials and certification has been received from the Medical University of South Africa (Medunsa). The Eastern Cape Department of Economic Development and Environmental Affairs provided the initial funding of R700,000.
ECDC NOTABLE ACCOMPLISHMENTS
45
T ourism estate ECDC facilitated the establishment of the De la Vlei Wild Life Estate which is being touted for the western periphery of Port Elizabeth. ECDC lobbied for the passing of the Environmental Impact Assessment (EIA) which was crucial to unlocking the development. Already R415 million has been committed towards the first phase of the development which has already begun with the laying of building infrastructure. The estate will include three privately-owned properties spanning 878 hectares. These hectares include a private nature reserve, 400ha of forest, open grazing areas, and the biggest natural freshwater lake in Port Elizabeth.
TOTAL VALUE OF THE ESTATE:
R2 BILLION
P OT E N T I A L TO C R E AT E :
700 part-time & full-time jobs
UNQUALIFIED AUDITS ECDC’s commitment to accountability and the efficient use of public funds is demonstrated by its successive unqualified audit opinions since the 2006/2007 financial year. This means ECDC is able to account for its financial resources. It also means funds are being used where they are most needed.
SMME conference ECDC holds an SMME conference each year and celebrates SMME achievers within the province. This year it is to be held from 15 - 17 November 2011 in East London.
TOP WINNERS AWARDED
R10,000
(2010)
Others noted for their achievements were:
• Deidre Nxumalo-Freeman (East London) - DNS Waste and Environmental Services • Brenda Pierpoint (Port Elizabeth) and Sharon Marais - Brendiwe Landscaping Trust • Lindiwe Hlekani (East London) - Lindiwe Hlekani Construction • Nontando Gaba (Queenstown) - Mazima Consulting • Amelia van der Heever (East London) - Imbayeti Flags and Banners • Nobaxolisi Cutu (Johhanesburg) - Prescribed Music • Asanda Futshane (East London) - YivaOkuhle Creations • Singiswa Dikweni’s (Mthatha) - Out of the Blue Hospitality supplies B&B Smaller workshops are held during the year in the various cities and towns.
ECDC NOTABLE ACCOMPLISHMENTS
47
PROPERTY DEVELO PMENTS With a significant property holding, ECDC continues to make important investments in towns such as Mthatha. One of its most recent developments includes a residential development to meet the demand for quality residential accommodation for professionals.
ECDC MBA student thesis turns into book In 2009, Master of Business Administration graduate and ECDC procurement officer Nomhle Sinxoto impressed an international publishing house which turned her thesis (The role of the small medium and micro-sized enterprise in the socio-economic development of Buffalo City) into a book by the same title. The book is available through global online retailer, Amazon.
Aq u a c u l t u r e With one of the best marine coastal lines together with skills availability, local knowledge, favourable climate and a conducive business environment, ECDC has played a role in securing several investments in this sector. These include Espadon Marine, Pure Ocean and Irvin & Johnson.
2010 Marine Aquaculture Annual Farm Operation report:
THE EASTERN CAPE HAS THE
MOST MARINE AQUACULTURE ACTIVITIES E astern C ape I nformation T echnology I nitiative ( E C I T I ) The province’s second ICT incubator was set up in 2004 and headed by Patricia Dlamini. The first incubator was set up in Port Elizabeth at the Nelson Mandela Metropolitan University. ECITI supports 15 small ICT businesses - nine of which operate at the ECITI hub employing about 47 full-time staff. Current incubates include Ocean Media, InBusiness Magazine, Phila Development Agency, Webidentity, Cut & Splice, Virtual Africa, Zweni Technologies, Khula Holdings, Swayani Films, OCE IT, Afrocentric IP, Umzila Wabathwa, Pluto Productions, Leap Lyncroft and Creative Clan. For more information, go to www.eciti.co.za
ECDC NOTABLE ACCOMPLISHMENTS
49
E astern C ape C ommunity T V ( E C C T V ) P rovincial I nitiative S ECDC is playing a leadership role in the development of the Eastern Cape Community TV station. The community participation phase was completed in 2010.
Eastern Cape from Above The Eastern Cape From Above (ECFA) exhibition aims to promote the province as a tourist and business destination. The photographic exhibition features 40 images with stunning panoramic views of the land of contrast that is the Eastern Cape. From the Hole-in-the-Wall in Pondoland north-eastwards to the Valley of Desolation in the Karoo and wildlife, the pictures capture it all.
exhibited in THESE COUNTRIES since its launch in 2008: Portugal * Belgium * Sweden * France * Germany * SOUTH AFRICA UNITED KINGDOM (BRISTOL, GLASGOW & LONDON) To see all the locations profiled go to www.ecdc.co.za
Citrus farm near Fort Beaufort -
The Kat River Valley near Fort Beaufort is the centre of a prosperous citrus farming area. Surrounded by the majestic Katberg and Amatola mountain ranges, Fort Beaufort is home to the Martello tower, a national monument, that features a mounted cannon that pivots through 360째 and is considered one of only two in the world. www.ecdc.co.za/fromabove
ECDC’S ROLE IN CATALYTIC
PROJECTS
ECDC’S ROLE IN CATALYTIC PROJECTS
09
53
ECDC’S ROLE IN CATALYTIC PROJECTS
55
NAT U RAL FIB RE CL USTER ECDC, together with the provincial Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), the Council for Scientific and Industrial Research and Cacadu District Municipality, are part of the team leading fibre development initiatives in the province. The cluster includes cashmere, hemp, flax, agave Americana, wool and mohair.
ECDC’S ROLE IN CATALYTIC PROJECTS
E S S E N T I A L
57
O I L S
Together with other partners such as Aspire, the Amathole District Council’s development arm, ECDC is helping establish the essential oil industry within the province.
ECDC’S ROLE IN CATALYTIC PROJECTS
BERRY
59
INITIATIVE
Eastern Cape Development Corporation’s berry initiative aims to plant as many berry types - blueberries, strawberries, raspberries and other varieties - as climatically possible in the Eastern Cape. It focuses on East London, Dimbaza, Cathcart, Bedford, Hogsback, Molteno and Barkly East.
ECDC’S ROLE IN CATALYTIC PROJECTS
P G
61
B I S O N
One of the largest investments to be made in the former Transkei area of Ugie, ECDC was instrumental in presenting this project to the provincial government which required significant infrastructure development. It also played a project management role in making the investment come to fruition. R100 million was secured for infrastructure for this project.
ECDC’S ROLE IN CATALYTIC PROJECTS
H O R S E
63
R A C I N G
ECDC has funded a feasibility study which is assessing the horse racing sector as a growth industry. Horse racing is ideal from two perspectives: its extensive value chain and its job creation prospects. Some of the most experienced authorities in the world have contributed to the feasibility study. The group includes black former Eastern Cape thoroughbred horsebreeder Phindi Kema, former Qatar Racing Authority CEO Michael Felton and former racing director of the Macau Jockey Club, steward of the Hong Kong Jockey Club, the “architect” of the Middle East’s Emirates Racing Authority, Lord John Fitzgerald.
ECDC’S ROLE IN CATALYTIC PROJECTS
65
PORT OF EAST LONDON EXPANSION ECDC is part of the steering committee which is mobilising support for the expansion of the Port of East London. Further development of the port is seen as a catalyst for growing the region including stimulating further investment in the automotive and agro-processing sectors of the Border and former Transkei regions. Transnet has pledged to modernise the port and make it fully functional (August 2011).
ECDC’S ROLE IN CATALYTIC PROJECTS
67
J O U L E ECDC CEO Sitembele Mase sits on the Optimal Energy board which is expected to produce the first South African designed electric motor vehicle on a commercial scale. The East London IDZ is earmarked as the location for manufacturing operations. The manufacturer, which is also being funded by the Industrial Development Corporation, is in the process of securing funding for the project. ECDC and the East London IDZ have invested R100 million into this project on behalf of provincial government.
ECDC’S ROLE IN CATALYTIC PROJECTS
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BAMBOO ECDC is exploring bamboo opportunities which are expected to take Eastern Cape farming into new exciting territory with potential for downstream value adding industries. The development financier has identified bamboo as a possible vehicle for job creation and poverty alleviation in rural Eastern Cape. It has the potential to create value adding businesses to supply the building material, food, energy among other sectors. Trials are underway in Port Elizabeth, Stutterheim and Centane in the former Transkei.
GRAAFF-REINET AQUACULTURE The Camdeboo Satellite Aquaculture Project in GraaffReinet aims to become a leader in the breeding and supply of fish for the fresh and frozen markets, with up to 50 satellite farms involved. It is being launched with an initial budget of R750,000.
GRAAFF-REINET KHOISAN PROJECT The !xamdeboo KhoiSan project provides a globally unique facility of a KhoiSan visitor attraction, research facility and hospitality. It also acts as a catalyst to significantly increase the tourism economic sector within Graaff-Reinet and surrounding areas. The KhoiSan centre aims to increase the number of visitors to the area by 100,000.
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GRAAFF-REINET GIANT FLAG The giant flag in Graaff-Reinet, has been identified as a catalytic project that may facilitate the growth of tourism in the region. The project aims to “[grow] the world’s biggest, “living” flag and to grow skills, employment and tourism while enhancing growing awareness of global warming and the protection of the environment”.
Pineapple industry restructuring In order to revive this 100-year industry, ECDC worked with the pineapple industry to restructure it from a loss-making operation where farmers were reducing plantings into a profitable zero waste industry. Farmers have already started increasing the planting and employment is on the rise. In the first waste reduction stream, a dietary fibre business plan and pilot project has been successfully completed. Commercialisation of the project is expected by the end of the calendar year. In the second waste reduction stream, the Cacadu District Municipality is co-funding a micro-crystallisation cellulose project with the pineapple project.
Dimbaza revitalisation plan ECDC is working with the Industrial Development Corporation and Development Bank of South Africa to convert Dimbaza, an existing industrial area close to King William’s Town, where ECDC owns several properties into an agricultural service and processing hub.
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J ob stimulus fund
ECDC is to manage an Eastern Cape Industrial Job Stimulus Fund which is expected to drive job creation by incentivising businesses across targeted sectors to create new jobs. The fund aims to create 30,000 jobs during the next three years.
ECDC investment fund A R2 billion fund has been set aside for major investments in the Eastern Cape. ECDC is to manage the investment fund, which was announced early in 2011 by the Eastern Cape provincial government.
Imvaba Cooperative Fund
The Imvaba Fund, an initiative of DEDEAT which is implemented by ECDC, was launched in 2010.
For more information on these projects, contact ECDC’s Ikhona Mvaphantsi on (email) ikhona@ecdc.co.za or (telephone) 043 704 5739.
Bathurst -
This small farming community is synonymous with the world’s largest pineapple. This tourism attraction stands 16.7m high and has three floors. From the top observation deck, there are magnificent 360° views over rolling pineapple lands to the Indian Ocean. ECDC has also assisted the industry with its restructuring which has led to it being zero waste focused and profitable with employment on the increase. www.ecdc.co.za/fromabove
SUCCESS STORIES IN 2010/11
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SUCCESS STORIES IN 2010/11
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C A SSAVA ECDC is conducting five cassava crop trials in Bizana, Port St Johns and Ncera (East London). The aim of the trial is to grow and extract tubers, and establish starch processing operations for the manufacturing of chips. Cassava is a root plant of Amazon origin and belongs to the sweet potato family. It is a good source of starch and apart from being a good energy food source, can be processed into animal feed. The R770,000 project, launched in July 2010, entails the transfer of specialised skills and technology to participating communities. The first crops were planted before the holiday season in mid-December. The trial plot has since been harvested and replanted. It is estimated that the project will create and sustain approximately 50 jobs in the short to medium-term.
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ESPADON MARINE South Africa’s marine finfish farming industry leader, Espadon Marine, has committed a further R50 million to expand its facility in the East London Industrial Development Zone (IDZ). Its kabeljou (or kob) production will be significantly expanded to 600 tons. The operator’s initial R30 million investment in 2009 for the first phase of the development is bearing fruit as the operator geared up for its first commercial harvest during the period under review. Espadon’s kob harvest is the first commercial harvest in the Eastern Cape. The establishment of the facility, which was a result of ECDC’s lobbying, was further motivated by East London’s suitable temperature for finfish farming. The area’s annual average minimum of 18°C and maximum of 22°C is suited to temperate finfish species.
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HILLCOMBE RESIDENTIAL COMPLEX In order to maximise opportunities within the commercial property sector, ECDC has signed a long-term lease with KFC for use of its refurbished building which was once the Hillcombe Residential Complex. Hillcombe was previously an underperforming, dilapidated residential complex situated in the heart of the Mthatha Central Business District. Market intelligence was done to identify a tenant that would bring something new into the market being serviced by the adjacent Mthatha Plaza. Buy-in was obtained from the Zimbane community who are claimants on the land. The Hillcombe Development is now approaching its completion and KFC is busy with shop fittings and fixtures while the contractor is busy with final touch-ups such as paving, electrical and water connections.
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AN GE L F O O DS Port Elizabeth delicatessen Angel Foods, located in the Perridgevale Shopping Centre, received financing from ECDC for equipment, which has helped the small business expand its menu range. Having first specialised in Greek cuisine, the shop now services a broader market with muffins, preserves, pastries and lunches. Items can be bought freshly baked or frozen for an easy meal. The specialty food store also caters for events and corporate functions. Angel Foods began operations two years ago.
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N O N K Q U B E L A W E AV I N G Nonkqubela Weaving Primary Cooperative at Ilinge near Queenstown makes high quality hand woven laundry baskets and magazine racks using steel frames and sisan or bundle twine. The cooperative was formed in 1999 and is now made up of 15 members, three of whom are disabled and 12 are women. Over the years, ECDC has assisted the group with loan financing. ECDC continues to provide the cooperative with support through the crafts and creative sector support programme, which assists small enterprises to take their products to the market. Exhibitions such as Decorex and the Grahamstown National Arts Festival are crucial channels for these types of businesses. ECDC has helped them with a presence at these events. ECDC also facilitated training for the group which focused on product development, basic financial management, basic business skills and co-operative governance.
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MOUNT FRERE BAKERY ECDC’s R350,000 loan has helped a Mount Frere bakery upgrade its energy infrastructure and buy additional equipment. This has allowed Door 2 Door Bakery to meet increased demand for bread and baked goods in the town and surrounding area. The business, owned by Mabangula Langa, employs 15 residents and was started in 2009.
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GRANITE MINE The Eastern Cape Development Corporation has thrown its weight behind Bold Moves granite project in Butterworth, injecting more than R1,5 million into feasibility studies and trial mining. The mining company is owned by Monde Tabata who has made his mark in South Africa’s business landscape as director of Peermont Hotels, which he co-founded, and as managing director of Primedia’s sport division Megapro. Sample testing has been completed.
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MOMENTO’S OF AFRICA World-class producer of luxury mohair textiles and apparel, Momento’s of Africa, continues with its success following its humble beginnings in the 1980s when British expert weaver Lin Smith taught unemployed people to weave Xhosa tapestries as a means of making a living. The company, which started off as a curio shop at the Port Elizabeth airport, has taken advantage of the Eastern Cape’s leading position in mohair production and now boasts an expanded factory with average annual increases of 30% in employment, and a chain of outlets including most South African airports. South Africa, which currently produces more than 60% of the world’s mohair, gave the company a competitive advantage regarding the sourcing of mohair produced.
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F LY T I E R S Ten fly tiers from Centane and Willowvale in the former Transkei will soon boast the age-old art of fly tying as result of ECDC’s R500,000 investment. Fly tiers, who will be mentored by an appointed trainer who will also help them establish a business, will undergo training and mentoring as they learn the art of preparing hooks for anglers and fly fishermen who visit the areas. Other opportunities for the business include satellite fly tying, bait and tackle outlets, managing local fishing venues, and starting a training centre for future fly tiers and fishing guides.
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UMSOBOMVU Through ECDC’s craft and creative industry support programme, the Umsobomvu Development Cooperative has accessed markets as far and wide as Europe. In 2010, the cooperative exhibited its wares in Italy, Kenya and Portugal. These have also been a regular and popular feature at the Grahamstown National Arts Festival and Decorex Johannesburg. The co-operative was initiated in 2001 by a domestic worker and two former textile factory workers after the respective firms they worked for closed down. Today, the Umsobomvu Development Cooperative based in Middleburg is a beacon of hope for the community and has grown its membership to 18 women. ECDC also sent three of the cooperative members to Plettenberg Bay for product development training. The women produce blankets, flooring, table runners, scarves, wall hangings and throws from mohair.
MEDIA
POLICY
MEDIA POLICY
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ECDC realises the important role played by the media as a valued stakeholder. The image of ECDC is influenced by its media presence. Communication cultivates proactive relations with the media to promote stakeholder awareness and understanding of ECDC policies, programmes, services and initiatives aligned to the overall objectives of the Eastern Cape.
SPOKESPERSON
POLICY
SPOKESPERSON POLICY
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12 An official spokesperson is recognised as the voice of the organisation who ensures correct, strategically acceptable comment is released, particularly on sensitive sociopolitical issues.
The board and management spokespersons:
1
CHAIRPERSON
key spokesperson for all issues relating to policy & legislative framework
2
CHIEF EXECUTIVE
KEY SPOKESPERSON FOR STRATEGIC ISSUES
3
BUSINESS UNIT EXECUTIVE MANAGERS t h ro u g h c o m m u n i c a t i o n s & m a r k e t i n g d e p a r t m e n t
deal with operational matters relating to projects and areas of specialisation
4
communication manager
coordinates contact with media
& may act as spokesperson as and when delegated by the board or chief executive
SPOKESPERSON POLICY
Other media requests should be channeled through the communications department of ECDC or through its media relations agency.
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M E D I A
RESOURCES
MEDIA RESOURCES
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Most of the corporation’s information sources, contacts are available through the site - www.ecdc.co.za - the corporation’s online repository of ECDC information.
Media resources 1
MEDIA RELEASES
THE CORPORATION ACTIVELY SHARES INFORMATION
ON VARIOUS PROJECTS 2
NEWSLETTERS
provide journalists with updates of latest media activities,
c o m p r e h e n s iv e li s t o f pa s t r e l e a s e s from time to time - provides additional info on activities
3
annual reports
Most recent available to journalists
MEDIA RESOURCES
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ACCESS TO EXPERTS
JOURNALISTS ENCOURAGED TO USE ECDC’S RESOURCES: including sector specialists in mariculture, agriculture, manufacturing, automotive, ICT and film, trade and SMME development
5
relationship building FROM ME E T & GR EET S ES S IO NS TO O NE-O N-ONE I N T ERA CT I ONS REGULAR NETWORKING SESSIONS SO THAT JOURNALISTS BECOME FAMILIAR WITH PROJECTS, ACHIEVEMENTS & CHALLENGES
6
MEDIA BRIEFINGS
adhoc to brief on key ecdc projects Held for complex issues or highlights in order to offer an additional opportunity for interrogation
7
O N L I N E : w w w. e c d c. c o. z a holds a range of resources such as annual reports and useful documentation & information
Also see ECDC’s channel on YouTube, its Twitter Khula Nathi feed and the Eastern Cape business news site www.getnews.co.za
MEDIA TEAM
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MEDIA TEAM
ECDC senior manager: Communication, marketing and stakeholder relations: Nopasika Mxunyelwa Tel 043 704 5600 Cell 083 414 4411 nmxunyelwa@ecdc.co.za Ikhona Mvaphantsi Communication and stakeholder professional Tel 043 704 5739 Cell 083 451 1687 Agency assisting ECDC media relations: mediaEQ Tel 043 726 8833
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CONTACTS 15 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 KING WILLIAM’S TOWN 75 Alexander Road, PO Box 498, King William’s Town 5600 Tel:+27 (0) 43 604 8800 • Fax:+27 (0) 43 642 4199 BUTTERWORTH 24 High Street, PO Box 117, Butterworth 4960 Tel:+27 (0) 47 401 2700 • Fax:+27 (0) 47 491 0443 MTHATHA 7 Sisson Street, Fort Gale, Private Bag X5028, Mthatha 5099 Tel:+27 (0) 47 501 2200 • Fax:+27 (0) 47 532 3548 QUEENSTOWN 22 Cathcart Road, Private Bag X7180, Queenstown 5320 Tel:+27 (0) 45 838 1910 • Fax:+27 (0) 45 838 2176 PORT ELIZABETH 152 Cape Road, Mill Park, PO Box 1331, Port Elizabeth 6000 Tel:+27 (0) 41 373 8260 • Fax:+27 (0) 41 374 4447 MOUNT AYLIFF SEDA Building, Nolangeni Street, Mount Ayliff 4735 Tel:+27 (0) 39 254 0584 • Fax:+27 (0) 39 254 0584 ALIWAL NORTH 97 Somerset Street, P O Box 198, Aliwal North 9750 Tel:+27 (0) 51 633 3007
www.ecdc.co.za
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ABBREVIATIONS CC
Closed corporation
CIMEC
Centre for Investment and Marketing in the Eastern Cape
CPDB
Ciskei Peoples Development Bank
CSBC
Ciskei Small Business Corporation
CSIR
Council for Scientific and Industrial Research
DEDEA
Department of Economic Development and Environmental Affairs
DEDEAT
Department of Economic Development, Environmental Affairs and Tourism
ECDC
Eastern Cape Development Corporation
ECITI
Eastern Cape Information Technology Initiave
EC
Eastern Cape
ECCTV
Eastern Cape Community Television
ECSECC
Eastern Cape Socio-Economic Consultative Council
GDP
Gross domestic product
GRP
Gross regional product
ICT
Information, communication and technology
IECDM
Integrated emerging contractors development model
IDZ
Industrial development zone
MBA
Master of Business Administration
PGDP
Provincial growth and development plan
SMG
The Strategic Marketing Group Africa
SMME
Small, medium and micro enterprises
TDC
Transkei Development Corporation
ABBREVIATIONS
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www.ecdc.co.za