24 minute read
The Eastern Cape sends citrus and cars to the world
Lemons to China and bakkie-making kits to Kenya are new items in the export basket.
The first consignment of Eastern Cape lemons is given a last inspection at the Maydon Wharf Fruit Terminal in Durban. Credit: Citrus Growers’ Association of Southern Africa
Thursday 17 February 2022 was a red letter day for farmers in the Sundays River Valley and for South Africa’s citrus industry. On that day, a first shipment of lemons was loaded onto ships from the fruit terminal in Durban harbour en route to China.
The long and complicated procedure of becoming compliant with health and import procedures started with work done by Citrus Research International (CRI) scientists in 2013. CRI and the National Department Agriculture, Land Reform and Rural Development hosted scientists from China in 2015 and negotiations have continued ever since.
South African citrus growers spend R150-million annually on research which is then used by the DALRRD in their international negotiations. In this case, it paid off with a R325-million deal which has the potential to grow exponentially. South Africa hopes to eclipse Argentina and Chile as suppliers of lemons to China, targeting 25 000 tons of lemons to that country by 2024.
Exports of grapefruit, oranges and soft citrus to China totalled 130 000 tons in 2020. More good news from South-East Asia came in the form of a first consignment of citrus fruit being accepted into the Philippines.
The citrus industry has been identified in the National Development Plan as a priority sector because it employs many people and it can improve the country’s balance of payments.
According to the Sundays River Valley Citrus Producers Forum, black citrus farmers have increased the volumes of their exports by 40%, with a total of 1.6-million cartons exported in 2020.
However, exporting fruit of the Eastern Cape is not as straightforward as it might seem. All of South Africa’s ports have been struggling in recent times to keep up with demand. The province’s three ports are no exception, with some of the citrus fruit originating in the Eastern Cape having to be trucked to Durban or Cape Town, adding costs to the operation.
The industry also battles with a shortage of shipping containers and high demand for cold-storage facilities. In April 2021, an MSC vessel was diverted to Gqeberha to offload 1 995 refrigerated containers just in time for the citrus-picking season. There is a global shortage of these specialised containers.
Investors are investing and exports are growing
The Trade, Investment and Innovation Unit of the ECDC is committed to promoting trade with and investments into the Eastern Cape.
Entrepreneurs graduating from the Exporter Development Programme run by the ECDC in partnership with the Nelson Mandela Bay Business Chamber.
The Trade, Investment and Innovation Unit markets the Eastern Cape to investors, supports existing investors, promotes exports and the ECDC as an implementing agent for development initiatives.
Trade Promotion The Trade Promotion Unit provides opportunities to export-ready local businesses to penetrate local and foreign markets by means of non-financial support. Major export markets are Germany, Hong Kong, the US, China, Netherlands, Namibia and India.
Once a company has been assessed as “exportready”, the unit facilitates annual trade missions, exhibitions and thematic workshops to offer networking platforms, trade/export knowledge and access to prospective clients in targeted countries.
Investment The Investment Promotion Unit is the official investment promotion agency of the Eastern Cape Province. The unit actively markets the province and facilitates foreign and local direct investment. Services include lobbying for conducive policy, aftercare investor services, assistance to investors to access incentive schemes and local business networks, providing market information and facilitating access to greenfield and brownfield sites.
Investors will find four universities and a number of TVET colleges which offer high-impact tertiary education. Set-up costs for new business are extremely competitive in terms of land and rental prices, construction costs and overall input costs. The Eastern Cape has three ports, four airports and good road and rail links and offers easy access to domestic, SADC and global markets.
Local, provincial and national government have a range of investment incentives available for new and existing operations. These incentives range from manufacturing rebates to preferential production factor costs.
Innovation The Innovation sub-unit facilitates strategic domestic and international investment into sectordriven, catalytic innovation projects. The sub-unit facilitates investment and growth into new industry sectors introduced by the global shift to the Fourth Industrial Revolution.
This is achieved through: support for catalytic and high-impact projects that can unlock economic activity and promote local beneficiation and diversification; promotion of new products that encourage import substitution; growth of a pipeline that creates viable opportunities for the Development Finance and Properties Development units and for government and entrepreneurs. ■
ECDC contact details Address: 1 Moore Street, Quigney, East London Tel: +27 43 704 5604 Email: info@ecdc.co.za Website: www.ecdc.co.za
The Eastern Cape is the second-largest citrusproducing province with the Sundays River Valley being the country’s single biggest production area. South Africa is the world’s second-largest exporter of citrus fruit. A national export record was achieved in 2020, with 146-million cartons of fresh citrus being exported (second only to Spain). Citrus yielded R3.4-billion in exports for the Eastern Cape.
National citrus exports have grown by more than 40% in the past decade to about R20-billion per year. The Citrus Growers’ Association of Southern Africa forecasts an increase from the current 150-million 15kg cartons to 200-million in the next five years, and this is projected to grow still further to 255-million by 2030.
Automotive strength The list of winners at the annual awards function for Exporters Eastern Cape Exporter of the Year gives a good indication of the strength of the province’s automotive and automotive supply sectors.
Exporters Eastern Cape is a non-profit organisation comprised of members from export companies, freight forwarders, financial institutions and shipping lines.
The Nelson Mandela Bay Business Chamber’s Enterprise Development Programme has several parts: the Export Development Programme is the latest initiative.
The Eastern Cape Development Corporation offers extensive support to exporters through its Trade Promotion Unit which facilitates annual trade missions, exhibitions and workshops to offer networking platforms, share knowledge and gain access to prospective clients.
Acoustex Group, a Gqeberha-based automotive component manufacturer, won Exporter of the Year 2021, in addition to the prize for best exporter in the medium enterprise category. The company created a new product line by acquiring a company and increased direct and indirect export turnover to 12 countries by 24%.
Among the products produced by Acoustex are sound deadeners, moulded insulation parts, carpets, parcel trays, tailgate covers and back-panel components. Other companies in the group make vehicle protection kits, vehicle protection seat covers and technical laminated fabrics for medical and domestic use. An interesting category prioritised environmental accreditation and environmental management. Merit awards were given in the SJM Flex Environmental Award to the Coega Development Corporation, Purem, Isuzu and Volkswagen Group South Africa.
Volkswagen also won Best Exporter Original Equipment Manufacturer (OEM) with Isuzu being recognised for skills development and transformation initiatives.
In recent years, each of the province’s OEMs has been steadily increasing export volumes, often breaking new records in successive years.
In 2016 Mercedes-Benz recorded a new high for the month of April of 10 674 vehicles exported through the Port of East London. Over seven years to 2021, 650 000 C-Class models were built, of which more than 90% were exported. Volkswagen has sent 326 000 Polos into the global market since 2018.
An interesting addition to the export basket of Isuzu Motors is pick-up kits in knocked down (KD) format which are being sent to Isuzu East Africa, an affiliate in Kenya.
Ford makes engines at its plant in Struandale, Gqeberha. The company wants to persuade national government to upgrade the railway line between Gauteng (where it makes its vehicles) and Gqeberha so that it can send parts up the line to Tshwane and export its vehicles out of the port. Fully 75% of the company’s product is exported to more than 100 markets around the world. In September 2020, Ford led automotive exports with 6 995 vehicles. ■
The Acoustex Group was Exporter of the Year in 2021. Credit: Acoustex Group
Property and infrastructure projects are promoting growth
The Property Management and Infrastructure Unit of the ECDC provides the framework for businesses to operate.
Credit: AIDCEC
The ECDC manages a substantial property portfolio which enables it to rent out industrial and commercial premises at affordable rates or sell property to appropriate investors. The ECDC also functions as the manager of large infrastructure projects for the Eastern Cape Provincial Government.
Property Management The Property Management Unit offers small-tomedium enterprises suitable premises at affordable rates through its diverse property portfolio. When it is in the interests of the corporation, the ECDC will consider selling its property to the investor.
The ECDC is one of the biggest property owners in the province with residential, commercial, manufacturing and warehousing space. Large areas of vacant land zoned for residential and commercial purposes are also available.
The following suite of services is offered: facilitate commercial and industrial activity; assist new investors to find properties; facilitate SMME development, particularly in underdeveloped areas.
The unit also facilitates strategic alliances regarding multi-tenanted residential complexes so as to maximise revenue and minimise costs.
Infrastructure (Strategic Projects) The ECDC has been entrusted by the Eastern Cape government to manage some of its special functions and projects such as the integrated infrastructure programme and a number of large-scale development projects.
This unit provides the following services: • Planning and monitoring • Facilities and property management • Industrial Parks Revitalisation Programme
The primary objectives of this programme are to stimulate economic growth through supporting of SMMEs; to build SMME zones to accommodate SMME start-ups; make the parks an investment destination of choice; devise and introduce incentive schemes for potential investors, to allocate properties to sustainable businesses showing growth and intending to employing local labour.
The parks in the programme are Dimbaza Industrial Park, Butterworth Industrial Park, Vulindlela Heights Industrial Park, Queendustria Park, Fort Jackson Park, Buffalo City Automotive Aftermarket Incubator (shown in the photograph).
• Socio-economic and enterprise development
This area of the unit’s work will be achieved through setting up and managing an SMME database, training and mentoring of SMMEs, placement and recruitment of local labour management, technical and nonaccredited training and intern placement and training. ■
ECDC contact details Address: 1 Moore Street, Quigney, East London Tel: +27 43 704 5604 Email: info@ecdc.co.za Website: www.ecdc.co.za
The Chamber has built a relationship with the metro to ensure we create an enabling environment within which businesses thrive. To this end, the Chamber has created initiatives to actively attract investment into our city.
Port expansion remains one of Chamber’s main focus areas, with Transnet still the main stakeholder keeping the future of our region and investors’ interests alive. Present lobby refers to the expansion of the Container Terminal, the widening and deepening of the Port itself. As simple as it is, those three activities will in fact make Buffalo City a more desirable location.
Widening the net also remains one of our guiding principles, and engaging with as many stakeholders as possible toward economic growth sits at the top of our agenda.
As we engage we focus on the collaboration rather than the exception and recently a number of MOUs have been agreed in structuring those engagements. The Chamber’s own projects succeed because we invite participation, and the Call-2-Action with related waste recycling has introduced a new way of approaching the everlasting challenge of littering and waste collection.
On the record, the Border-Kei Chamber of Business has and will continue to support the development of the N2 Wild Coast road development, with the strong belief that the new highway will usher in a new corridor of/for development - a feature this region is sorely lacking. Bathandwa Njobe | communications@bkcob.co.za
executive@bkcob.co.za
Lizelle Maurice
Lizelle Maurice is a child of the Eastern Cape Soil. She did everal tertiary courses through Coronation nursing College, Unisa, Damelin & UCT. She owns Park Place Boutique Guest
House, which has won her National Tourism Department’s Lilizela Awards in the Emerging Tourism Entrepreneur of the Year category. She was appointed as the BKCOB’s Executive Director in 2021.
PROFILE PROFILE The Nelson Mandela Bay PROFILE The Nelson Mandela Bay The Nelson Mandela Bay Business Chamber Nelson Mandela Bay The Nelson Mandela Bay Business Chamber Business Chamber A catalyst for economic growth in the region. Business Chamber Business Chamber A catalyst for economic growth in the region.
The Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay.
It is one of the largest business associations in the Eastern Cape, with a membership of more than 700 businesses employing over 100 000 people in a diverse array of sectors.
The Nelson Mandela Bay Business Chamber is a leading catalyst for economic development, through its strategic Triple Helix model of collaboration between industry, academia and government, which serves as the foundation of creating a competitive Nelson Mandela Bay. The Business Chamber has been the heartbeat of business success in the region for over 150 years.
The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The organisation also builds international relations to form a vital link between business owners and international markets. Vision To be a leading catalyst for economic development throughout Nelson Mandela Bay. Mission By influencing the factors and key stakeholders that create a competitive enabling business environment. Task teams The Nelson Mandela Bay Business Chamber has established a structure of three task teams divided into sub-groups, to facilitate the ease of doing business. The task teams are: • Infrastructure Task Team - Roads and Stormwater Sub-group - Water Sub-group - Electricity Sub-group • SMME Task Team • Special Projects Task Team Enterprise Development and Exporter Development The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that EASTERN CAPE BUSINESS 2020 22
A catalyst for economic growth in the region.T he Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay. It is one of the largest business associations in the Eastern Cape, with a membership of more than 700 businesses employing over 100 000 people in a diverse array of sectors.
The Nelson Mandela Bay Business Chamber is a leading catalyst for economic development, through its strategic Triple Helix model of collaboration between industry, academia and government, which serves as the foundation of creating a competitive Nelson Mandela Bay.
The Business Chamber has been the heartbeat of business success in the region for over 150 years. The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The organisation also builds international relations to form a vital link between business Nomkhita Mona, Chief owners and international markets. Executive Officer. Vision enhance and grow small businesses. In 2018 the Business To be a leading catalyst for economic development in Nelson Mandela Bay. Chamber successfully hosted the fifth phase of the Enterprise Mission Development Programme, from which SMEs graduated in By influencing the factors and key stakeholders that create a competitive March 2019. enabling business environment. Over 120 entrepreneurs have benefited from this programme. Meanwhile, the pilot phase of Task Teams the Business Chamber’s Exporter The Nelson Mandela Bay Business Chamber has established a structure of seven task teams to facilitate the ease of doing business. The task teams are: • Water Task Team • Roads and Storm Water Task Team • SME Task Team Development Programme for 2018/2019 had 10 participants. That figure has grown for the 2019/2020 intake with 19 participants registered. The programme is aimed at empowering SMEs to position themselves • Electricity and Energy Task Team as emerging exporters. • Transport and Logistics Task Team • Metro Collaboration Task Team Events • Trade and Investment Task Team Events at the Nelson Mandela Bay Business Chamber keep business EASTERN CAPE BUSINESS 2019 12 owners up to date and informed
The heartbeat of business success in the region. An eighth task team, called Industry 4.0, begins its work in 2019 to prepare local businesses for the digital shift. W ith over 150 years of rich heritage, as the Nelson Mandela Bay Business Chamber we remain one of the most trusted, respected and authoritative voices on matters relating to local business and the economy. The environment we operate in is changing dramatically and Enterprise Development and Exporter Development demands of us to adapt to the ever-changing landscape, and become an agile organisation that responds robustly to issues that impact upon the sustainability of local businesses, the functionality of the operating The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to environment and also leveraging economic growth opportunities. develop the skills that enhance and
For this reason, we have taken a bold step as this Chamber to grow small businesses. In 2018 the develop a new strategic plan, which requires that we are a much Business Chamber successfully hostmore activist and action-orientated Chamber. Through our lobbying, ed the fifth phase of the Enterprise advocacy and influencing strategies, we are driving for an enabling environment in which business can operate to help create a conducive environment for businesses and attract investments. Development Programme, with SMEs set to graduate in March 2019. Over 120 entrepreneurs have benefited from this programme. Denise van Huyssteen, Chief Executive Officer Meanwhile, the pilot phase of Vision the Business Chamber’s Exporter Be a leading catalyst for Nelson Mandela Bay to retain and attract business. Development Programme concluded at the end of 2018, with 10 comMission panies finishing this programme in its first year. The programme is aimed at Collaborate with key stakeholders to develop solutions which foster an empowering SMEs to position themenabling environment and promote sustainable economic developments. selves as emerging exporters. Task Teams Events The Nelson Mandela Bay Business Chamber has established a structure of task teams to facilitate the ease of doing business. The task teams are: Events at the Nelson Mandela Bay Business Chamber keep business • Water and Electricity owners up to date and informed • Transport and Logistics on a wide variety of topics affecting • Safety and Security business in Nelson Mandela Bay. Regular networking functions offer Enterprise Development Programme The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that enhance and grow small businesses.
Now in its eighth phase, the programme is funded by the Eastern Cape Development Corporation (ECDC) and is geared towards developing sustainable SMEs through an enabling and creative enterprise development programme, and also to facilitate the effective combination of skills development, coaching and mentoring using lessons learnt from previous phases.
The Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay.
It is one of the largest business associations in the Eastern Cape, with a membership of more than 700 businesses employing over 100 000 people in a diverse array of sectors.
The Nelson Mandela Bay Business Chamber is a leading catalyst for economic development, through its strategic Triple Helix model of collaboration between industry, academia and government, which serves as the foundation of creating a competitive Nelson Mandela Bay. The Business Chamber has been the heartbeat of business success in the region for over 150 years.
The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The organisation also builds international relations to form a vital link between business owners and international markets. Since its inception in 2014, Vision To be a leading catalyst for economic development throughout Nelson Mandela Bay. the programme has benefitted 186 businesses who have been empowered with skills to run financially sustainable enterprises to Mission By influencing the factors and key stakeholders that create a competitive enabling business environment. unlock socio-economic development through structured multi-level training, mentoring and linkage support. The programme runs over nine months Task teams The Nelson Mandela Bay Business Chamber has established a structure of three task teams divided into sub-groups, to facilitate the ease of doing business. The task teams are: • Infrastructure Task Team - Roads and Stormwater Sub-group - Water Sub-group - Electricity Sub-group • SMME Task Team • Special Projects Task Team and is facilitated by the Nelson Mandela University Business School and the eWatchdog. With an unemployment rate of 40.7%, this augurs well for Nelson Mandela Bay as small businesses and entrepreneurship are seen as vehicles to drive job creation. One of the graduates, Yolanda Bukani, the Managing Director of Black Excellence, said the Enterprise Development and Exporter Development The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that programme empowered her as an entrepreneur with many critical skills to successfully run her business.
A catalyst for economic growth in the region.T he Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay. It is one of the largest business associations in the Eastern Cape, with a membership of more than 700 businesses employing over 100 000 people in a diverse array of sectors.
The Business Chamber has been the heartbeat of business success in the region for over 150 years. The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The organisation also builds international relations to form a vital link between business Nomkhita Mona, Chief owners and international markets. Executive Officer. Vision enhance and grow small businesses. In 2018 the Business To be a leading catalyst for economic development in Nelson Mandela Bay. Chamber successfully hosted the fifth phase of the Enterprise Mission Development Programme, from which SMEs graduated in By influencing the factors and key stakeholders that create a competitive March 2019. enabling business environment. Over 120 entrepreneurs have benefited from this programme. Meanwhile, the pilot phase of Task Teams the Business Chamber’s Exporter The Nelson Mandela Bay Business Chamber has established a structure of seven task teams to facilitate the ease of doing business. The task teams are: • Water Task Team • Roads and Storm Water Task Team • SME Task Team Development Programme for 2018/2019 had 10 participants. That figure has grown for the 2019/2020 intake with 19 participants registered. The programme is aimed at empowering SMEs to position themselves • Electricity and Energy Task Team as emerging exporters. • Transport and Logistics Task Team • Metro Collaboration Task Team Events • Trade and Investment Task Team Events at the Nelson Mandela Bay Business Chamber keep business EASTERN CAPE BUSINESS 2019 12 owners up to date and informed
An eighth task team, called Industry 4.0, begins its work in 2019 to prepare local businesses for the digital shift. Enterprise Development and Exporter Development The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that enhance and grow small businesses. In 2018 the Business Chamber successfully hosted the fifth phase of the Enterprise Development Programme, with SMEs set to graduate in March 2019. Over 120 entrepreneurs have benefited from this programme.
Meanwhile, the pilot phase of the Business Chamber’s Exporter Development Programme concluded at the end of 2018, with 10 companies finishing this programme in its first year. The programme is aimed at empowering SMEs to position themselves as emerging exporters. Events Events at the Nelson Mandela Bay Business Chamber keep business owners up to date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. Regular networking functions offer
“Entrepreneurship is a lonely journey and without the necessary support, it’s easy to give up. But through this programme, I had the privilege of networking with other entrepreneurs and we shared each other’s journeys and, in the process, created a solid networking platform.
“The mentorship was the greatest source of inspiration because it has helped us to traverse the challenges of running a business and how to overcome them. From here onwards, I foresee exponential growth in my business and hopefully I will be able to create more employment for the Bay’s youth because currently, opportunities are quite few,” Bukani said.
Events Events at the Nelson Mandela Bay Business Chamber keep business owners up to date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. Regular networking functions offer business owners the chance to make new professional contacts. The Business Chamber’s flagship events – the Annual Business Chamber Golf Day, the Annual Ladies’ Breakfast and the Annual Banquet – are highlights on the Bay’s business and social calendar.
Publications and marketing As another value-added service to members, the Nelson Mandela Bay Business Chamber provides members with a variety of publications across print and electronic platforms, including our quarterly printed member magazine, Infocom, and the printed annual Business Guide.
Help desk In line with its vision of providing an enabling environment for business, the Business Chamber set up an Ease of Doing Business help desk in 2018. The help desk assists members through reducing red tape and engaging with the Nelson Mandela Bay Metro regarding these members’ obstacles in conducting business. The Business Chamber also engaged with the city’s leadership in 2018 towards the goal of establishing a One Stop Shop for existing and potential investors and will continue these engagements in this year (2022).
Business Intelligence Desk The Chamber has an business intelligence desk which is aimed at providing business intelligence to different stakeholders. It helps with: • Access to business intelligence to support longer-term decisionmaking • Access to immediate intelligence to make day-to-day decisions • Dedicated research to develop and grow priority sectors • Project management
The Feather Market Centre has been repurposed as a modern conference centre in the heart of Gqeberha. Credit: Nelson Mandela Bay Tourism
Certificates of Origin A Certificate of Origin is a document which states the origin of goods being exported and this “origin” is a key requirement for applying tariffs and other important criteria. As an accredited provider of this service, the Nelson Mandela Bay Business Chamber signs Certificates of Origin and offers exporters the opportunity to certify electronically through the ECOO system.
Corporate Social Investment Because the majority of our membership’s workforce is based in the city, the region of Nelson Mandela Bay is the direct beneficiary of their Corporate Social Investment programmes – including skills development initiatives, bursaries and scholarships. Many of our member companies significantly contribute to alleviating poverty and specifically unemployment in the region of Nelson Mandela Bay through various initiatives purposed to grow the local economy. ■
CONTACT DETAILS
Address: 200 Norvic Drive, Greenacres 6045 | Tel: +27 (0) 41 373 1122 | Fax: +27 (0) 41 373 1142 Email: info@nmbbusinesschamber.co.za | Website: www.nmbbusinesschamber.co.za
KEY SECTORS
Overviews of the main economic sectors of the Eastern Cape
Agriculture and agro-processing 24 Renewable energy 28 Oceans economy 30 Tourism and film 31 Manufacturing general 32 Manufacturing automotive 33 Education 34 Banking 35 Development finance and SMME support 36
