Eastern Cape Business 2023/24

Celebrating 20 years of urban regeneration and clean audits

The Mandela Bay Development Agency, a change agent of the Bay, plans long-term stadium development.

The Mandela Bay Development Agency, an entity of the Nelson Mandela Bay Municipality established in 2003 to reverse urban decay of the Port Elizabeth inner city through urban renewal, celebrates 20 years of its existence in 2023.

Some of the successes of the MBDA include pioneering the regeneration of urban nodes such as Kings Beach, Helenvale, the Kariega CBD and a significant part of the Gqeberha inner city. Other achievements include a R40-millon project in New Brighton which saw the transformation of Singaphi Street.

The MBDA has only ever received successive unqualified and clean audit outcomes from the Auditor General of South Africa.

In 2016, Council, on separate occasions resolved to hand over the management and operations of the Nelson Mandela Bay Science and Technology Centre to the MBDA and subsequently resolved to also hand over the management of the Nelson Mandela Bay Stadium to the MBDA effective 1 January 2017, initially for a period of three years, and this has subsequently been extended to July 2023.

Nelson Mandela Bay Stadium

The Nelson Mandela Bay Stadium promotes major sports, entertainment and recreational activities. The purpose of the Agency is also to stimulate social support to the communities and the province at large. The MBDA has done extremely well in achieving both focuses. This has created a heavy dent in the entity’s finances but the outlook is hopeful that it is just a matter of time before positive results are seen in bank statements.

The issue around the staff contracts is still one of the high risks faced by the business. However, this does not discourage the team from continuing with the promotion and marketing of the asset. The cost of sales is growing and it is affecting budgeting and the overall bottom line. Most of the hosted events and shows are funded mainly or partly by the Agency. The number of requests for funding by the communities has increased. The number of requests for the venue for free has increased, all of which impacts on the bottom line. Investments have continued in advancing the asset and transforming it from the old ways of doing things to the modern and digital ways of doing things. Digital transformation is going to be a key focus in operations and the amendment of the product mix. This also meant relooking at the strategy of the business for the future, policies and procedure. It is vital to remain relevant and challenge for new markets that were previously not appealed to. Work on this new approach began during the previous financial year.

NMB Stadium Museum launch

The NMB Stadium Museum launch was a one-and-a-half-year journey which started with collecting memorabilia, historic sporting infrastructure used throughout the existence of the stadium and video clips of great NMB Stadium sporting moments. Approximately R1.5-million was spent in conducting this project which is stadium-owned and managed. The launch day was a resounding success, being well attended by dignitaries and stadium representatives.

Furthermore, there was a big media build-up leading up to the actual launch day. Notable media houses like The Herald, radio stations like Algoa FM, SABC sports as well as social media platforms from the stadium were utilised to magnify the importance of this launch as a legacy project for the city and its citizens. The NMB Stadium Museum was officially opened to the public in 2021 and has created many opportunities for engagement, the exchange of ideas and the transfer of sporting knowledge and suggestions from the public. The NMB Stadium looks forward to the next phases of this project.

NMB Stadium e-gaming tournament

For the third year running, the NMB Stadium e-gaming tournament was attended by more 150 guests/ participants. Seasoned presenter and SuperSport anchor Kamza Mbatha held proceedings together throughout the event as the tournament was live-streamed. Participants in the tournament were geographically spread between Asia, Europe as well as Africa, giving the tournament an international feel and extra competitiveness. The e-gaming tournament was the first of its kind for the stadium but it’s something that the stadium definitely wants to be part of, generating more numbers both locally and abroad.

What the future holds for NMB Stadium

The NMB Stadium is deliberately and purposefully transforming the business of stadium/facility management in South Africa and Africa. We are pioneering a new way of conducting stadium business in an African context and remain resolute as we move towards our vision, one step at a time.

Here is what to expect in the next medium to long-term plans for the facility:

• Focus on the development of the stadium precinct (total precinct management).

• Completion of the Five-a-Side soccer courts and a hockey turf.

• Grow the relationship with AIDC to build a smart academy within the precinct.

• Intensify the purification of the lake water for water sports such as rowing, sailing and extreme sports.

• Digitise service offerings through the NMB Stadium app.

• Attracting major events for the facility including international rugby, drone racing, music concerts, motor shows and motorbike events.

• Hosting of the next World Football Summit.

• Collaborating with Nelson Mandela Foundation to emphasise the legacy of the late Madiba.

• Collaborate with global entities to enhance product offerings and diversify the product mix.

• Increase our revenue by almost 45% in five years’ time.

#ourstadium

#heresisto20yearsofdevelopmet #Manadelabaydevelopmentagency

Acting CEO says Agency has listened MBDA Acting CEO Mpho Mokonyama writes: Our assessment of what has gone wrong points to several factors that we intend addressing through the proposed new five-year plan for 2023-2028. Much of what we aim to focus on in the next five years is fewer new builds but smarter total precinct management and facilitation of key services with partners. We have listened to stakeholders, including business and citizens who feel more must be done to coordinate security, cleansing, bylaw enforcement and improved informal trading regulation. Greater attention will be placed on the bad-buildings regime. All these issues will be addressed through a series of stakeholder agreements and we are confident that if all role-players play their part, the Baakens/Central CBD, Kariega CBD and Nelson Mandela Bay Stadium precincts will all turn around into safe, clean and attractive areas for further investment.

Special features

Economic sectors

The Eastern Cape welcomes investors

The Eastern Cape Development Corporation is the first stop for potential investors in the coastal province of the Eastern Cape, whose dramatic landscapes are attracting film makers and whose talented workers are attracting call-centre investors. Ayanda Wakaba, CEO of the ECDC, extends a warm welcome.

The Eastern Cape is a vibrant province of unmatched beauty with a wealth of natural resources and a world-class manufacturing industry which includes South Africa’s leading automotive manufacturing industry.

Often referred to as a “world in one province”, the Eastern Cape boasts the most successful Industrial Development Zones in South Africa, the East London Industrial Development Zone, and Coega Industrial Development Zone, with the newly-established Wild Coast Special Economic Zone all ideally situated for easy access to world markets.

Responsible for the facilitation of investment and trade in the province, the Eastern Cape Development Corporation (ECDC) has been repositioned as a central economic development agency for the province. The ECDC’s strategic thrust fosters advocacy work which promotes provincial economic transformation, inclusive growth and competitiveness, investor-focussed solutions, pioneering innovation in key growth sectors, operational efficiency and financial sustainability.

At the ECDC, we place emphasis on the implementation of trade and investment programmes which intend to leverage on the inherent economic potential of the province. These activities encourage trade and investment in the priority sectors of the Eastern Cape economy which have a high potential for job creation, beneficiation and opportunities for the development of a competitive local SMME sector. For the ease and convenience of doing business in the Eastern Cape, the InvestSA One Stop Shop Eastern Cape, which is a South African presidential investment facilitation initiative implemented in partnership with the Department of Trade, Industry and Competition, serves as a vehicle to reduce the administrative burden often experienced by investors. The InvestSA One Stop Shop Eastern Cape facility thus acts as a single point of contact for investor interface, queries and aftercare. Matters relating to regulatory compliance, licensing and permits, interface with local authorities and communities are among the services the InvestSA One Stop Shop Eastern Cape prides itself on.

The ECDC welcomes you to the unmatched potential of the Eastern Cape Province. Realise the Eastern Cape, it’s Yours to Explore. ■

Ayanda Wakaba, CEO of the Eastern Cape Development Corporation

The ECDC has extended its reach into the Karoo, having launched a satellite office in Graaff-Reinet in the Dr Beyers Naude Municipality.

ABOUT THE COVER:

ABOUT

Main image: Wild Coast by Joshua Gaunt (Unsplash). Clockwise from top right: C-class models made in East London (Mercedes-Benz Group); Angora goats (SAMIL); wind turbine (BTE Renewables) oranges (Jen Gunter on Unsplash); Magwa Tea Estate (ECDC); port activity (Transnet Port Terminals); Nelson Mandela Bay Stadium (NMBDA).

Main image: Wild Coast by Joshua Gaunt (Unsplash). Clockwise from top right: C-class models made in East London (Mercedes-Benz Group); Angora goats (SAMIL); wind turbine (BTE Renewables) oranges (Jen Gunter on Unsplash); Magwa Tea Estate (ECDC); port activity (Transnet Port Terminals); Nelson Mandela Bay Stadium (NMBDA).

10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA

HOT EMERGING MARKET

Growing middle class, affluent consumer base, excellent returns on investment.

LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT

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FAVOURABLE ACCESS TO GLOBAL MARKETS

The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets.

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MOST DIVERSIFIED ECONOMY IN AFRICA

South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination.

ADVANCED FINANCIAL SERVICES & BANKING SECTOR

SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation.

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YOUNG, EAGER LABOUR FORCE

SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development.

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PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY

SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors.

ABUNDANT NATURAL RESOURCES

SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise.

WORLD-CLASS INFRASTRUCTURE AND LOGISTICS

A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index.

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EXCELLENT QUALITY OF LIFE

SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector.

Eastern Cape Business

A unique guide to business and investment in the Eastern Cape.

Credits

Publishing director:

Chris Whales

Editor: John Young

Managing director: Clive During

Online editor: Christoff Scholtz

Designer: Tyra Martin

Production: Yonella Ngaba

Ad sales:

Gavin van der Merwe

Sam Oliver

Tahlia Wyngaard

Tennyson Naidoo

Gabriel Venter

Vanessa Wallace

Shiko Diala

Graeme February

Administration & accounts:

Charlene Steynberg

Kathy Wootton

Sharon Angus-Leppan

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

The 2023/24 edition of Eastern Cape Business is the 16th edition of this successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape.

The Eastern Cape Development Corporation (ECDC) is supporting this issue of the journal, both in providing up-to-date information for editorial use and in sharing information about its activities. It will also distribute the journal through its regular channels.

The Eastern Cape’s multi-faceted approach to the challenges and opportunities of sustainability are explored in a special feature. From caring for agricultural land through partnerships between farmers, wool brokers and fashion houses, to solar panels and improved lighting and water systems, companies are finding ways to incorporate sensible and profitable solutions into their business models. The Nelson Mandela Bay Development Agency celebrates a significant milestone this year, it being 20 years since it began operations.

For the first time, a separate overview on the film sector is included, an indication of the growth and potential of this vibrant sector. Similarly, developments and the potential of the global business services (primarily call centres) is reviewed. Overviews are provided on the other key economic sectors of the province and the potential of the Oceans Economy and the prospects of oil and gas for this coastal province are examined. The major business chambers in the province have made contributions to the journal and the creation of a new chamber is acknowledged, the Maritime Business Chamber, which has its headquarters a short distance up the hill from the Port of Gqeberha.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www. easterncapebusiness.co.za. Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. In 2020 the inaugural edition of the Journal of African Business was published. ■

Chris Whales

Publisher, Global Africa Network | Email: chris@gan.co.za

Eastern Cape Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.

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COPYRIGHT | Eastern Cape Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd.

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University; Ncora Dairy; Transnet Port Terminals; Towfiqu Barbhuiya on Unsplash; Wild Coast Sun.

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Eastern Cape Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

PHOTO CREDITS | AET Africa; Callzilla; Bushveld Minerals; ECDC; Exxaro; Ford Motor Company; Khula!; Liessen Bitumen; Mark Sampson/H&M; Mercedes-Benz SA; Montego Pet Nutrition; Nelson Mandela Bay Development Agency; Nelson Mandela Bay Tourism; Nelson Mandela

An Investment Film Fund has been launched

The ECDC is targeting development in key sectors of the economy.

The film and tourism sectors received a boost with the filming of Survivor South Africa: Immunity Island on the Wild Coast, which not only boosted the regional economy by R10-million and created more than 100 jobs but will sell the province to a large television audience.

All of the province’s original equipment manufacturers (OEMs) have made commitments to expand or upgrade their production lines in recent months: Mercedes-Benz South Africa (East London), Volkswagen SA (Kariega), BAIC (Coega SEZ), Ford Motor Company and Isuzu (Gqeberha).

As recently as March 2022, the Africa Auto Group committed to an investment of R550-million to enter the injection moulding industry in Nelson Mandela Bay.

The Eastern Cape Development Corporation (ECDC) focuses on seven growth sectors which are all aligned to the Provincial Economic Development Strategy and Provincial Development Plan. These sectors are:

• Agriculture and agro-processing

• Sustainable energy, generation and component manufacture

• Oceans Economy

• Automotive

• Light manufacturing

• Tourism, infrastructure and product

• Film

The Eastern Cape has experienced sizeable local and international investment in key sectors such as automotive, renewable energy and forestry.

With more than half of the wind power projects in the national government’s renewable energy plan allocated to the Eastern Cape, the region can truly be called the Wind Power Province. A green hydrogen project has been announced which holds enormous potential for opening up a completely new sector. Manufacturing for the renewable energy sector is another potential area of growth, and the province’s Special Economic Zones are uniquely positioned to host such activity.

One of the competitive advantages of investing in the Eastern Cape lies in the two Special Economic Zones in East London and at Coega, which hosts a deepwater port. Both SEZs are strategically situated on major transport and shipping routes and provide purpose-built infrastructure for investors wishing to produce and manufacture for the Southern African Development Community and world markets. An integrated database system has been developed and maintained by the SEZs. Through this portal, potential investors have ready access to skilled, semi-skilled and unskilled labour resources. ■

The Survivor series is one of several film projects that has been attracted to the Eastern Cape. Credit: M-Net

A REGIONAL OVERVIEW OF EASTERN CAPE PROVINCE

Green ammonia, green hydrogen and battery storage are among the new sectors showing promise in the regional economy, along with the Oceans Economy.

By John Young

Everything about energy is trending in South Africa at the moment. The Eastern Cape has attracted a large percentage of the new investments made into wind farms in the years since the nation decided to encourage private investment in the power sector, but it is battery storage, green hydrogen and ammonia that are stirring interest – and attracting investment rands – most recently.

In East London, Bushveld Minerals has built a factory to make vanadium battery electrolyte. At the Coega Special Economic Zone (Coega SEZ) an amount of $4.6-billion has been pledged by a consortium led by Hive Energy to produce green ammonia and another group of companies, including ENERTRAG South Africa, is looking into the potential of a site near Humansdorp to produce green hydrogen. The German parent of ENERTRAG

has a lot of experience in hybrid wind to hydrogen power plants and is working with Sasol on aviation fuel alternatives.

Green ammonia and green hydrogen are both produced by electrolysis and the green element is supplied by that process being powered by clean or renewable energy. The difference is that green ammonia is a liquid while green hydrogen is a gas.

Various kinds of propulsion are obviously very important to the province’s big original equipment manufacturers (OEMs) such as Volkswagen South Africa, Mercedes-Benz South Africa, Ford Motor Company and Isuzu. These OEMs are keen to get certainly on what South Africa’s policy on electric vehicles is going to be. All of them have recently made large capital investments in new lines or expanded capacity.

Ford has started discussions about the creation of a new, high-speed rail link between Tshwane (where it makes Ford Rangers) and Gqeberha, the site of its engine plant. Such a link would enable it to send engines north and send completed SUVs south to one or both of the two ports that serve the city of Gqeberha.

Within the Coega SEZ, just north of the city, the Port of Ngqura, pictured, was primarily designed as a container terminal but additional capabilities are being added. The Coega Development Corporation (CDC) has been tasked with finding a developer for a new Liquid Bulk Terminal and for a new manganese terminal. Transnet has agreed that the tank farm and manganese storage facility at the Port of Gqeberha is to be moved to the Port of Ngqura. This will open up prime waterfront space to tourism and hospitality businesses.

The Newlyn Group has designed and submitted a proposal for a back-of-port manganese terminal for Ngqura which would result in almost no emissions and be highly efficient. Unloading of trains and the movement of manganese would all take place in a covered environment.

Infrastructure

The provincial government has identified six “mega” infrastructure projects on which to focus: N2 Wild Coast Highway, Mzimvubu Water Project, Eastern Cape Transnet initiatives, N2 Nodal Development, undersea cables and the Wild Coast SEZ.

With three ports and two large airports, the Eastern Cape is well suited to logistics activity. The Cookhouse Blaney rail branch line is now working and Transnet Freight Rail has pledged to open the line from Kroonstad to the Port of East London. A Slipway Project at Gqeberha is to be completed in the course of 2023 and the grain elevator at the Port of East London is operational again.

Having these rail connections operational and linked to the Agriport Terminal at the East London port reduces the costs of logistics and fits into a major national and provincial goal of moving goods from road to rail.

By the end of 2023, the 2Africa sea cable will be servicing the Eastern Cape’s communications networks. This will not only assist private enterprise but support the provincial government’s efforts to roll out broadband. So far, e-health and e-education platforms exist.

Both Vodacom and MTN are continuing to invest in telecommunications infrastructure. A project to connect 23 rural villages was completed by Vodacom at a cost of R34-million; a further R71-million will be spent on connecting another 86 villages. MTN allocated R600-million to protect its network and has rolled out an extensive programme of battery and generator support.

A Samsung Innovation Campus has been initiated at Walter Sisulu University. To be run by the Centre for Entrepreneurship Rapid Incubators (CFERI), the campus programme aims to transfer IT skills and help graduates start their own businesses. There will be courses on coding, programming, artificial intelligence and the Internet of Things.

The provincial government has increased funding available from its fund for young entrepreneurs, Isiqalo Youth Fund. As of December 2022, the province has spent R203-million supporting 3 900 youth-owned enterprises.

Credit: TPT

Tourism

Tourism is one of the sectors that was hit hardest by Covid-19. Many events were cancelled, foreign visitors were absent from attractions such as the Addo Elephant National Park and the Baviaanskloof World Heritage Site and guest houses and hotels struggled to make ends meet.

Although times were tough for the “Adventure Province”, there was some good news out of a sector that still retains enormous potential for growth and has been identified by the Eastern Cape Development Corporation (ECDC) as a priority sector.

The ECDC invested R2-million in attracting the TV series Survivor South Africa: Immunity Island and that investment has been shown to pay off both in monetary terms and in showcasing the spectacular Wild Coast to TV audiences. The immediate economic impact of the filming was estimated at R10-million.

The north-eastern segment of the province is the site of a possible future national park, which would bring to five the number of national parks in the province, joining the Addo Elephant, the Camdeboo, Garden Route and Mountain Zebra National Parks. These parks not only look after animals but also protect quite distinct types of vegetation.

If the proposed Grassveld National Park is established high in the mountains above the village of Rhodes and near to the border with Lesotho, it would be South Africa’s 20th. The conservation goal behind the park is to preserve grasslands through agreements with landowners and farmers who would continue to farm the land responsibly. The land of the Batlokoa community is near the famous Naude’s Neck Pass.

As a source of clean water, the area is a hugely important resource and worth preserving for that reason too. The water that falls away from the highest point of this proposed park is described by Andrew Weiss of the WWF as “heading towards the Mzimvubu River and the Indian Ocean” while another small stream at the top of the mountain is destined to join the Orange River in the west. Weiss also described rock paintings of eland and reedbuck “with the unusual addition of dogs and a fat-tailed sheep”. The Grassveld National Park project of the South African National Botanical Institute (SANBI) has recorded 1 131 species of plant life on the iNaturalist app.

In addition to national parks, the Eastern Cape has 15 provincial nature reserves and a multitude of luxury private game reserves.

The events sector was just about to restart before the Omicron variant put a stop to all travel. This is something the Eastern Cape does well, with the National Arts Festival and a variety of sporting events such as Iron Man being hosted by the province. In the week before the Omicron variant shocked some countries into banning travel, St Francis Links successfully hosted the South African PGA Championship and showed how well multiple companies, guest houses and sponsors can work together to create something of international quality. The tournament also brought employment opportunities to the region.

This format was repeated in 2022 with a much bigger live audience and the event will again be televised in late 2023. In addition, St Francis jointly hosted with the DP World Tour

Mercedes-Benz vehicles made in East London regularly win US awards for quality.

Credit: Mercedes-Benz South Africa

(and thus attracted a global TV audience) the SDC Championship in March 2023.

Gqeberha also got in on the act of hosting a new tournament, this time the Nelson Mandela Bay Championship. The significance of this tournament in viewership terms was that it was an official DP World Challenge Tour event, where golfers can qualify for the main tour if they do well.

Other than tourism and film, the following sectors have been identified by the ECDC as priority sectors: agriculture and agro-processing, sustainable energy, the Oceans Economy, automotive and light manufacturing. Each of these categories is the subject of an updated economic overview in this journal.

The ECDC’s mandate is to plan, finance, coordinate, market, promote and implement the development of the Eastern Cape in industry, commerce, agriculture, transport and finance, which it does through three core units.

Diversification is an important part of provincial plans. An example of this is the Global Business Services sector, previously BPO. GBS has received a boost with the establishment of an ICT Academy in Mthatha.

Enrolment in 2022 increased to 100. The centre is a partnership between the provincial government and Liquid Intelligent Technologies South Africa.

In 2021, more than 7 520 young people benefitted from the R363-million which various Sector Education and Training Authorities (SETAs) put into training programmes in the following sectors in the province: manufacturing, engineering and related services, public sector, mining, banking, chemical, local government, wholesale and retail, education, training and development and insurance.

Automotive power

As exporters, the Eastern Cape’s OEMs are among South Africa’s highest achievers. Volkswagen Isuzu, Ford and Mercedes-Benz routinely ship tens of thousands of vehicles and engines to every part of the globe. Quite often, the East London or Gqeberha factory will be mandated to fulfil a particular order for a left-handed model, for example, in a specific country.

Isuzu recently launched the first locallyengineered and produced seventh-generation D-MAX bakkie, using for the first time a new body

shop at the Struandale manufacturing plant and a new chassis assembly line at the company’s Kempston Road facility.

The initial R10-billion that Mercedes-Benz invested in making its East London factory ready for the production of the latest C-Class was supplemented in 2021, when the first vehicles rolled off the floor, by news that an additional R3-billion was to go into building three new assembly lines, a new body shop and more advanced robots.

Ford Motor Company’s Struandale engine plant in Gqeberha will receive R600-million to prepare the plant to make the 3.0L V6 turbodiesel engine for the company’s Ford Ranger, which is put together in Tshwane. This amount, which includes upgrades to two existing engine lines, is over and above the company’s national commitment of R15.8-billion to be spent on the Silverton assembly plant and various factories that supply the company.

By the start of 2018, Volkswagen South Africa had spent more than R6.1-billion on its plant in Kariega, an investment that enabled the manufacture of more than 400 000 sixthgeneration Polos by 2021. More than 80% of these vehicles were exported. ■

The Nelson Mandela Bay Museum records many years of big events and great excitement. Credit: NMBDA

Investment, a key lever for driving sustainable economic development

Investment as a key factor in encouraging sustainable economic development was the theme of the second annual Eastern Cape Investment Conference held at the International Conference Centre in East London in October 2022.

sectors. These included: manufacturing – Lisen Bitumen; primary agriculture – Al Mawashi; ICT and digital services – Google South Africa, Mercedes-Benz South Africa ICT Hub; automotive – Isuzu, MercedesBenz, Orion Engineered Carbon; renewable energy – SunFarming, Hive Energy, Seraphim, Bushveld Electrolyte; agro-processing – Twizza; film – Survivor; aquaculture – Zwembesi, KingFish Enterprise; economic infrastructure - Transnet, SANRAL.

The following new investments were unveiled:

• Shoprite distribution centre, R1.5-billion

• Tshedza Pictures, R85-million

• Transnet Port of Ngqura, R1.59-billion

• Benteler, R168-million

• SunFarming, R500-million

• Mhlobiso Concrete, R9.5-million

• Toyota Material Handling, R60-million

• Sanaha Property Developments, R542-million

• Sanral, R7.23-billion

• Aqora Lithium Battery, R34.4-billion

The conference was a resounding success with new investment projects amounting to R46.08billion being announced and recently-launched investment projects in the province profiled.

Speakers included Eastern Cape Premier Oscar Mabuyane and a number of investors who spoke about their experiences in investing in several transformative

The one-day event was presented in a hybrid format, offering in-person and virtual participation for private and public sector participants. Public sector infrastructure investment projects that further enable the Eastern Cape investment environment were also showcased.

The Conference prioritised sectors and industries that are poised to better transform the structure of the economy towards inclusive development. The Conference showcased the advances the province has made with regards to investor coordination and facilitation across provincial, district and local spheres.

Preparing the way for investment. A concerted infrastructure drive to improve connectivity in the Eastern Cape includes the N2 Wild Coast road and the Msikaba Bridge. Credit: SANRAL

Focusing on targeted sectors allows the province to demonstrate investment projects in the implementation and planning phase, detail the investment landscape for niche investment projects and encourage domestic and international investors to partner with the Eastern Cape province on investment projects.

Investment project showcasing was presented across the following sectors:

• Manufacturing

• Primary agriculture

• ICT and digital services

• Automotive

• Renewable energy

• Agro-processing

• Film

• Aquaculture

• Economic infrastructure

During the time in office of the current administration, the sixth administration, a cumulative investment total of R171.45-billion has been achieved. This has resulted in the creation of 21 664 direct jobs opportunities.

This cumulative investment total from 2019 to 2022 is derived from:

• Private sector investments: R7.51-billion

• Public sector investments: R22.8-billion

• Private sector investments (January to October 2022): R95.06-billion

• New investment announcements at conference: R46.08-billion

The objectives of hosting a Provincial Investment Conference are to:

• Position the Eastern Cape as an attractive investment destination.

• Attract quality greenfield and brownfield investment projects into the Eastern Cape.

• Coordinate investment attraction efforts across spheres of government in the province.

• Direct investment into strategic and labourintensive sectors to address under investment.

• Promote investment facilitation and aftercare services offered to investor community in the province.

• Strengthen the Eastern Cape investment project pipeline.

For additional information on the Provincial Investment Conference please refer to; https://easterncapepic.co.za/

Your conference is taking place at a time of unparalleled multidimensional crisis. The Eastern Cape is perfectly placed to attract new investment in old and news sectors of our economy. This province is the land of enormous opportunity.

It is the heartland of our country’s automotive industry, which is a major contributor to our nation’s exports and GDP.

The Eastern Cape has two Special Economic Zones at Coega and East London, which attract strategic investment into the province. This is supported by a concerted infrastructure drive in the province.

I have seen impressive progress with the N2 Wild Coast road and Msikaba Bridge. Upon completion, these projects will bring immense benefit to the provincial economy, and indeed will impact positively on the lives of the citizens of this province.

The province has been hard at work to improve efficiency at the ports. These are signs of the provincial government hard at work with Transnet to make the Eastern Cape an efficient and costeffective place to do business and to support manufacturers to get their goods to market.

The Eastern Cape has also shown potential as a destination for renewable energy. Earlier this year, Department of Mineral Resources and Energy announced a R3-billion investment in the Eastern Cape.

We trust that delegates to this conference will explore some of the abundant opportunities in agriculture and agriprocessing as well as in the expanding field of cannabis cultivation and the Oceans Economy.

The Eastern Cape is one of the country’s most biodiverse regions; places like the Wild Coast attract tourists from all over the world. It is hoped this conference will discuss ways to attract more investment in tourism services and infrastructure.

Given all this positive environment, our expectation for this investment conference is very high.

Let us come together to turn pledges into reality. I hope we can move from contact to contract.

From contacts to contracts: the Eastern Cape is perfectly placed Extract from a recorded message to the conference from President Cyril Ramaphosa.

President Cyril Ramaphosa. Credit: AfDB

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Sustainability in all things

From geyser socks to water saving and land revitalisation, Eastern Cape entities are innovating to thrive.

recycling of 97% of waste produced at the factory.

A R22-million investment in a solar energy plant is paying off for Montego Pet Nutrition in GraaffReinet. The company reported a 300-ton reduction in CO2 emissions in a single year, the equivalent of planting about 9 000 trees to offset emissions. The nine-month solar project happened soon after a R70-million expansion project which increased the factory’s overall production by 30%.

Entrepreneurs in Dimbaza, a small town near King Williams Town, are producing a device to retrofit on to geysers that they claim will save consumers more than 25% in electricity costs. AET Africa has 11 permanent employees and the glove-like device is selling well. The small business also manufactures reusable bags.

The province’s big automotive manufacturers are putting their sustainability into top gear. Mercedes-Benz South Africa has installed solar panels on its latest new facility and Volkswagen has done the same – 3 136 solar photovoltaic panels at its Kariega plant will produce an estimated 2 500MWh at full capacity. In addition, Volkswagen is building a wastewater recycling facility, replacing alien plants at its premises and planting a carbon bank of nearly 5 000 spekboom cuttings.

Ford’s Struandale Engine Plant has been a winner of the SJM Flex Environmental Award for excellence in environmental management with its improved production methods leading to reductions in water and electrical consumption. Other factors were rainwater harvesting and

Another of the Eastern Cape’s biggest brands is putting a great deal of time and effort into water conservation. When the dam levels feeding the Nelson Mandela Bay Metropolitan area reached critical levels, Coca-Cola Beverages South Africa (CCBSA) mobilised a comprehensive response. Working together with other entities, CCBSA delivered water, JoJo Tanks and water wheelers to communities suffering shortages but also offered a longer-term solution in the form of a groundwater harvesting and treatment system known as Coke Villes.

Globally, there is pressure on big brands in the fashion industry to produce sustainability dashboards. Issues such as emissions, plastic use and waste, water conservation, recycling and reselling are hot topics.

Another big issue is responsible sourcing. The South African mohair industry has signed up to the Responsible Mohair Standard and SAMIL CEO Michael Brosnahan says it has worked wonders in making “mohair once again globally desired”, an important factor in protecting more than 30 000 jobs. The RMS ensures that the source of mohair traded is acting ethically and responsibly.

Brosnahan says, “Our farmers are not working on ‘projects’ to protect the land – this is a constant part of everyday life on the farms.” Farmers are committed to sustainability because they have inherited family legacies and want it to continue.

Global fashion brand H&M is working on an ambitious initiative with wool producer BKB Ltd to regenerate rural land. The Biodiversity

A retrofitted geyser glove promises huge savings on electricity. Credit: AET Africa

Restoration and Regenerative Land Management plan currently involves about 80 farmers who have pledged to encourage biodiversity and assist farmers in regenerate the land in a sustainable way. The wool industry has its own Responsible Wool Standard and H&M sources its wool mostly from RWS-certified farms.

Sustainable energy

The town of Cookhouse is in the Blue Crane Route Local Municipality. Neighbouring town Bedford is the site of the 134MW Amakhala Emoyeni Wind Farm but all the power produced by that facility is sent to the national grid. However, the erection of solar street lights in Cookhouse represents not just a positive thing for the residents of that town, but also illustrates a sustainable solution.

The company that built the wind farm, Cennergi, together with the Amakhala Emoyeni Community Fund Trust, erected 30 battery-pack streetlights with the aim of preventing crime and promoting safety. The contractor who erected the lights, ZP Energy, hired 14 local people to assist with the project.

The Coega Development Corporation (CDC) is positioning the Coega Special Economic Zone (Coega SEZ) as a preferred location for energy projects. Coega has a mix of wind farm investment projects planned with an overall capacity of 183 MW, a 12MW photovoltaic (PV) solar farm, and possible bioenergy projects in the pipeline. The Coega Solar Rooftop Project aims to instal solar panels on the industrial buildings in the Coega SEZ and Nelson Mandela Bay Logistics Park.

The 57.5MW Coega Wind Farm, built by Electrawinds, was the first commercial wind farm built in South Africa. Having built that first wind farm, the Belgian company has become a tenant of the Coega SEZ, part of a group of other renewable energy sector companies such as Absolute Wind, a company which transports equipment on flatbed trucks, and HimoinSA, a Japanese firm.

Rhodes University has Africa’s first and only Chair of Environmental Education that is recognised as a United Nations Centre of Expertise in Education for Sustainable Development and Environmental Learning Research Centre. The university announced in 2023 a new partnership with UK firm ElimiNOX. A R300-million fund will invest in carbon-reducing projects to enable investors to claim tax allowances. Rhodes University and ElimiNOX will collaborate to assess projects for investment purposes and provide educational and practical support to emitters.

As part of the agreement, Rhodes University will use ElimiNOX environmental-fuel conditioner in its fleet of vehicles and generators as part of its contribution to reduce its carbon footprint. ■

A land regeneration project has been launched by a fashion house in collaboration with sheep farmers and wool suppliers. Credit: Mark Sampson

Solar street lights have been erected in Cookhouse because of the presence of a wind farm. Credit: Cennergi

CCBSA Water Case Study

CCBSA’s commitment to assist water-distressed communities in Nelson Mandela Bay.

In response to a looming Day Zero in parts of the Eastern Cape, Coca-Cola Beverages South Africa launched an ambitious project to work with the Nelson Mandela Bay Municipality and other key stakeholders, including Gift of the Givers, to assist vulnerable and distressed communities.

Coca-Cola Beverages South Africa (CCBSA) aims to be part of the solution to achieve positive change in the world and to build a more sustainable future for our planet.

In response to the dire situation in the Nelson Mandela Bay Metro, where dam levels reached a critically low level, CCBSA worked with the Nelson Mandela Bay Municipality and other stakeholders to ensure exposed communities continued to have access to water.

CCBSA realised that it could not undertake this challenge alone and set out as part of a strategic private-public partnership to work with local communities, the NMB Municipality, as well as the Gift of the Givers Foundation.

Nozicelo Ngcobo, Director of Public Affairs, Communication and Sustainability at CCBSA, said: “Water is important capital for the CocaCola company, as it is the main ingredient in our beverages. We need to ensure that everyone has access to clean running water, especially vulnerable communities hard hit by the water crisis.

“This is particularly so for the vulnerable girl child and women, as the primary drawers of water in rural areas. However, we can do that only if we all understand that water is a finite resource,” added Ngcobo. The beverages bottling company’s trucks were leveraged to support the Gift of the Givers with the distribution of water to struggling communities in the NMB area. The

first water delivery through this initiative was done on 23 June 2022.

The company further donated 20 x 5 000-litre JoJo tanks which were placed at identified water collection points around the city. In addition, 500 water wheelers were distributed to communities to aid with water collection and storage.

CCBSA further deployed three off-grid, solar-powered groundwater harvesting and treatment systems called Coke Villes in the region. The sites have a combined total of nine systems with a minimum annual potential of replenishing 90-million litres per annum at no cost to the beneficiaries.

To ensure security of water supply, the NMB Municipality concluded an emergency water supply continuity plan to ensure water supply to critical installations such as healthcare facilities, schools, police stations and some commercial and industrial users. In support of this municipal initiative, CCBSA implemented a six-point plan that is directed towards securing alternative water supply sources.

Since inception in 2020, the Coke Ville project has distributed over 200-million litres of water in Limpopo, Gauteng, the Eastern Cape and KwaZulu-Natal.

By working together, we will overcome this crisis and create a more sustainable future for all. ■

Border-Kei Chamber of Business provides key services to over 650 member organisations, and aims to be the “voice of business” in the region.

Border-Kei Chamber of Business (BKCOB) has offices in East London and Queenstown (Komani) which serve the greater Border-Kei region.

to explore alternative energy solutions. This cluster represents 20% of the Metro’s current electricity usage and has the participation of 34 companies. The Property Cluster is focussed on facilitating more efficient planning regarding land and development processes between major stakeholders and the municipality.

Climate change

We successfully launched an Eastern Cape Climate Change Coalition to help drive the development and implementation of a climate change strategy for Nelson Mandela Bay.

Help Desk

The Help Desk reduces red tape and engages with the Nelson Mandela Bay Municipality regarding obstacles that members experience when conducting business. In 2022, the Help Desk assisted in unlocking 78 issues.

Business Intelligence Desk

This desk helps with:

• Access to business intelligence for longer-term decision-making

• Access to immediate intelligence for day-to-day decisions

• Dedicated research to develop and grow priority sectors

• Project management

Entrepreneurship Desk

The Entrepreneurship Desk acts as a single contact for the growth and sustainability of SMMEs. The desk offers pro bono interventions that encompass digital advertising, business-to-business linkages, skills development and access to markets, opportunities and one-on-one advisory support. To date, 179 SMMEs have registered. These SMMEs employ 998 employees and have a combined turnover of R173-million. Through the collaboration with the Purem (YES programme) and Afrika Tikkun service, the Chamber has placed 51 interns with SMMEs.

Enterprise Development Programme

The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2015, to develop the skills that enhance and grow small businesses. Since its inception in 2015, the programme has benefitted 213 businesses, including 27 graduates in 2022. They have been empowered with skills to run financially-sustainable enterprises through structured multi-level training, mentoring and linkage support. The ECDC and the Chamber have further extended the rollout of the Enterprise Development Programme between 2023/24 and 2025/26 wherein past participants of the programme will be assisted.

Trade and investment

The Chamber has reimagined its approach to trade and investment. An Investors Forum is focused on attracting and retaining investment

in the Metro. The Chamber partners with the Eastern Cape Development Corporation (ECDC), the Department of Trade, Industry and Competition (dtic) and the Metro’s Department of Trade and Investment to facilitate for member companies to participate in trade missions.

Exporters Development Programme

The Eastern Cape Exporters Development Programme, which is a partnership between the Chamber and ECDC, has already attracted the participation of 58 emerging exporters. The programme has migrated smoothly from the initial pilot in 2022.

Certificates of Origin

As an accredited provider of this service, the Chamber signs Certificates of Origin and offers exporters the opportunity to certify electronically through the ECCO system.

Events

Regular networking functions offer business owners the chance to make new professional contracts. The Business Chamber’s flagship events are highlights on the Bay’s business and social calendar: the Annual Golf day, the Annual Ladies Breakfast and the Annual Banquet

Publications and marketing

As another value-added service to members, the Chamber provides members with a variety of digital publications such as the Business Guide, InfocomLIVE, Annual Review and Behind the Scenes. ■

CONTACT DETAILS

South Africa’s first indoor Skypark facility has opened at the Wild Coast Sun. The Magic Company, which operates the bowling alley, arcade games and rides, has invested R6.4-million in an indoor structure that is over 18m high, has 21 rope obstacles on a skytrail and a built-in zipline skyrail. The Wild Coast Sun opened two new franchised restaurants in 2022 and the Mangwanani Spa will be upgraded in the course of 2023.

Agriculture and agro-processing

A black-owned dairy has won a major contract.

SECTOR INSIGHT

crop is grown in the same part of the Sunshine Coast that produces chicory.

The Eastern Cape holds 21% of the country’s cattle (about 3.2-million), 28% of its sheep (seven-million) and 46% of its goats, making it the largest livestock province by some margin.

Danone has signed a R75-million agreement with Ncora Dairy in Keiskammahoek. The 600ha dairy is part of the Amadlelo Agri group, a majority black-owned producer of raw milk, and the investment will see 2 400 dairy cows producing 10.5-million litres of milk.

The farm employs 35 people and 1 200 people are beneficiaries of the dairy’s operations. The first milking on the farm began in 2012 after the irrigation, parlour, roads and fencing were funded by the Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR).

The CEO of Amadlelo Agri, Simpiwe Somdyala, sees other benefits accruing from the investment: “I look forward to this partnership and the value that this will bring in upskilling us to be a zero-carbonemission-generating farm.”

The Eastern Cape provides approximately a quarter of South Africa’s milk and the industry is further expanding as producers are favouring high-rainfall coastal areas such as the Tsitsikamma region.

The rich natural grasslands of the Eastern Cape have the potential to produce high-value organic meat, a product that is increasingly popular in health-conscious international markets.

There are about 70 000 people employed on commercial farms across the Eastern Cape, with a further 436 000 people dependent on smaller farms, mostly in the east.

Deciduous fruits such as apples, pears and apricots are grown primarily in the Langkloof Valley. Another crop in which the Eastern Cape leads national production is chicory. The province’s pineapple

The Sundays River Valley is South Africa’s biggest citrus producer from a defined area. The valley’s harvest in 2021 was 30.5-million cartons and this is anticipated to increase to 40-million by 2026. The province as a whole is the country’s secondlargest cultivator of citrus.

The Sundays River Valley irrigation scheme was started in 1920s. Darlington Dam (also known as Lake Mentz) was built on the river and a series of canals were constructed to supply water to farms from Kirkwood at the upper end of the valley to Addo.

More than 4 000 people are employed in citrus in the Sundays River area, with that figure more than doubling in the picking and packing season. Further west, there is about 6 600ha of land under citrus in the Gamtoos Valley, which exports about nine-million cartons every year.

More than 100 farmers are dependent on the Kouga Dam for

Magwa Tea Estate is functioning again.

water in this region, but the dam has recorded consistently low levels in recent years and has to supply the towns of Hankey and Patensie and the Nelson Mandela Bay metro.

Magwa Tea Estate is being restored and its products are appearing on shelves. The Premier of the Eastern Cape says he drinks no other tea. The provincial government has committed to buying Magwa and Majola tea, it can be bought at more than 100 retail outlets and the Premier Hotel Group is a purchaser. More than 1 500 jobs were saved when the provincial government intervened but other commercial partnerships, such as with timber company Sappi, will give Magwa a more diverse income stream.

Agro-processing

Getting small-scale farmers connected to agro-processing value chains is a major goal for agricultural policy-makers. This lies behind the creation of the Wild Coast Special Economic Zone (SEZ) near Mthatha. The 5 000ha Ncora Irrigation Scheme is seen as a model for the SEZ, which has attracted interest from AngloGold Ashanti and Exxaro.

The DRDAR has several programmes to support small-scale farmers. The Eastern Cape Development Corporation (ECDC) supports agro-processing through loans and equity arrangements: projects that have received financial support include aquaculture, the production of dietary fibre from pineapples and bamboo products.

The National Woolgrowers’ Association of SA (NWGA), with a membership base of 4 500 commercial and 20 000 communal members, is based in Gqeberha, as is Cape Wool SA.

South Africa produces about 54% of the world’s mohair and Gqeberha is the mohair capital of the world. Farms around the small towns that dot the open plains south of Graaff-Reinet, Aberdeen, Somerset East, Jansenville and Willowmore routinely produce nearly half of South Africa’s production. The office of the South African Mohair Growers Association (SAMGA) is in Jansenville.

Grootfontein College of Agriculture, the only tertiary educational institute in the country to offer a programme aimed at Angora goat farming and mohair production, is in Middelburg. Processing of mohair takes place in Kariega, Gqeberha and Ntabozuko (Berlin) outside East London. The mohair value chain includes brokers,buyers, processors, spinners, manufacturers and retailers.

ONLINE RESOURCES

Citrus Growers’ Association of Southern Africa: www.cga.co.za

Eastern Cape Rural Development Agency (ECRDA): www.ecrda.co.za

Milk Producers Organisation: www.mpo.co.za

South African Mohair Growers Association (SAMGA): www.angoras.co.za

The SAMIL company has divisions all along the value chain. The Stucken group controls Mohair Spinners South Africa, Hinterveld (a mill) and the processing company Gubb & Inggs in Kariega.

Ouma Rusks are still made in Molteno where they were invented. Cadbury Chocolates operates a big site across the lake from the Nelson Mandela Stadium in Gqeberha and Nestlé makes 11 kinds of chocolate at its factory in East London. The Sasko mill in Gqeberha is the province’s only big milling plant.

Coca-Cola Sabco and SAB’s Ibhayi brewery are the major beverage manufacturers in Gqeberha and Distell has a bottling plant in the city.

Sovereign Foods in Kariega is the country’s fourth-biggest producer of poultry. ■

Simpiwe Somdyala, CEO of Amadlelo Agri

Renewable energy

Green liquids and gases and battery storage are generating interest.

With the Eastern Cape firmly established as the leading wind power province, other innovative and important subsectors are making their presence felt in the energy landscape.

SECTOR INSIGHT

high grade reserves of vanadium in the world in the Bushveld Complex.

The decision by Bushveld Energy to start producing vanadium battery electrolyte at its new facility in East London is an important marker for that sector. The company intends eventually assembling battery systems locally.

Bushveld divisions align with market demand forecasts

In response to these assumptions and findings, it is Bushveld Minerals' intention to vertically grow the vanadium company through the supply of vanadium electrolyte for VRFBs for the energy storage sector in the medium-term and establish a regionally-oriented assembly and manufacturing capacity in the long-term: creating a global VRFB supply chain in South Africa with the added benefit of creating a captive market for Bushveld Minerals’ vanadium production.

The Coega SEZ has been chosen by Hive Hydrogen SA as the location of a green ammonia project which will be fully operational by 2026. The project investment amount is approximately $4.6-billion, principally focussed on the construction of a green ammonia plant. The main development partners are Built Africa and Hive Energy of the UK who have formed Hive Hydrogen SA but various other partners are involved. Local salt manufacturer Cerebos will supply desalinated water to the project. Solar and wind projects producing 4 000MW will need to be built to supply the project with renewable energy.

Bushveld Energy was accordingly established in 2016 to capture a share of this attractive market and is exclusively focused on developing and promoting the role of vanadium in the growing global energy storage market through the development of VRFB technology.

DID YOU KNOW?

VRFBs are ideally suited for largescale, long duration energy storage applications

The ammonia will be separated from the oxygen by an electrolyser, and hydrogen and nitrogen will be combined to form green ammonia which will be stored in liquid form at a tank at the Port of Ngqura, from where it can be exported around the world. It can be used in fertiliser and explosives.

In doing so, Bushveld Energy is bringing the energy storage value chain to South Africa as a means of leveraging South Africa-mined and beneficiated vanadium. Bushveld Minerals will actively support the beneficiation of minerals mined in South Africa into higher valueadded final products.

Gas company Afrox is another partner, although there is no intention currently to convert the oxygen to pharmaceutical-grade product as that market is currently well served.

Bringing the energy storage value chain to South Africa

Another renewable energy investor in the Coega SEZ is Seraphim Solar Cell Manufacturing that is investing R362-million to increase the local content of its solar value chain.

At the East London Industrial Development Zone (ELIDZ), several new renewable energy investors have signed up in recent months.

The first environmental authorisations, which cover Mossel Bay and Coega, have been gazetted and are the first steps towards the building of a 400km gas pipeline from the Mossel Bay to a planned 1000MW gas power station at Coega.

ONLINE RESOURCES

To realise the potential of VRFBs in energy storage, Bushveld Energy’s first job was to undertake a market study to identify VRFB demand in Africa, as well as global vanadium electrolyte demand. In partnership with the Industrial Development Corporation (IDC) of South Africa, the parties undertook a study in the second half of 2016. This concluded in August 2017 that favourable demand exists for VRFBs, particularly in the utility (including transmission and distribution networks)

Hydrogen South Africa: www.hysasystems.com

Independent Power Producer Projects: www.ipp-projects.co.za

South African Independent Power Producers Association: www.saippa.org.za

South African Wind Energy Association: www.sawea.org.za

off-grid – as well as minigrid – markets. Demand is expected to peak between 2025 and 2030.

The study also found that global electrolyte demand is likely to peak during the same timeframe and that Bushveld Minerals would be able to compete cost effectively for not just the electrolyte market in Africa but other regions, as well.

Aspen Pharmacare will take its operations off grid by 2024 by purchasing power from companies that generate electricity from waste plastic. The Aspen factory on the edge of North End Lake is one of the province’s biggest manufacturing concerns and currently gets 8% of its electricity from solar roof installations. A process called pyrolysis will convert plastic waste into a synthetic fuel.

Moreover, the study found that South Africa serves as the logical base for VRFB manufacturing. With the IDC as a partner, Bushveld Minerals will benefit from the IDC’s important stakeholder linkages with the South African government, regulators, utilities and other key players that are necessary to provide a catalytic stimulus for the energy storage industry – as they have for the renewable industry to date.

This study subsequently prompted Bushveld Energy’s first project: the deployment of a utility-scale VRFB, a project that was co-developed by Bushveld Energy and the IDC with the system manu-

factured by Bushveld Energy’s US-based technology partner, UniEnergy Technologies (UET) and deployed Eskom’s Research, Testing and Development (RT&D) Centre in Rosherville, South Africa. The VRFB, a peak of over 120 kWh, was commis sioned during the last quarter of will be tested for a period of 18 months.

In parallel to the market study, Bushveld Energy and the IDC undertook techno-economic study to evaluate merit of establishing a vanadium lyte production plant in South Africa. Study results have indicated that Bushveld Energy can manufacture dium electrolyte at globally competitive cost levels.

The study determined the viability establishing a scalable plant with production capacity of 200 MWh annum that could easily scale to more times that capacity, as demand grows.

The scope of the project will entail the construction of an electrolyte

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Humansdorp could become the site of a plant that produces e-methanol from green hydrogen and gas created from locallysourced biomass. Three companies have signed an agreement to do a feasibility study: ENERTRAG South Africa, Earth & Wire and 24Solutions. The abundant wind and solar resources of the area would create the renewable energy to form the green hydrogen. ■

Aspen is going off grid.

Bushveld Energy VRFB

Education and training

Vaccines are being developed at Walter Sisulu University.

Stage two of a vaccine-development programme has begun at Walter Sisulu University, the result of a funding initiative led by CHIETA, the chemical industries’ SETA.

In 2021, an amount of R3.5-million was allocated for research and skills development in the vaccine programme headed by Professor Markus Depfenhart and which also included North-West University. Yershen Pillay, CEO of CHIETA, acknowledges the significance of the vaccine development and the impact of the results of the first pre-clinical trial. “These results indicate that the collaborative initiative by WSU, NorthWest University and Prof Depfenhart is well-positioned to develop a novel, safe and effective DNA vaccine against respiratory diseases in South Africa, which forms the basis for the second pre-clinical trial.”

Walter Sisulu University has also been allocated R350-million for renovations by national government, including laboratories, residences and ICT equipment. WSU and the University of South Africa (Unisa) offer vocational training (diplomas) and academic programmes (degrees).

Nelson Mandela University’s Missionvale Campus now offers the MBChB (Bachelor of Medicine and Bachelor of Surgery) qualification. Walter Sisulu University is the other academic medical facility in the province. A R50-million science centre, named after Albertina Nontsikelelo Sisulu, has been built in Cofimvaba.

The Eastern Cape has eight Technical and Vocational Education Training (TVET) colleges, most of which have more than one campus: Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College.

The National Department of Higher Education has invested R2.8-billion to improve infrastructure at 16 TVET Colleges across the country. Upgrades at several campuses have been completed while the Ikhala College campus in Sterkspruit is under construction.

Rhodes University has a strong reputation for research, which has been enhanced by the addition of the Biotechnology Innovation Centre.

The University of Fort Hare is leading three innovative studies into biogas, including a project investigating compressed biogas for public transport. A new Investec Promaths Centre was opened in the Eastern Cape in 2022. Investec’s Corporate Social Investment Division (CSI), in partnership with Kutlwanong Centre for Maths, Science and

ONLINE RESOURCES

Eastern Cape Department of Education: www.ecdoe.gov.za

Promaths: www.investec.com/promaths

Technology Innovation Agency: www.tia.org.za

SECTOR INSIGHT

Technology, offers extra classes in mathematics, science and technology in grades 10 to 12.

The Eastern Cape achieved poor mathematics results in 2021, with just 16% of candidates obtaining 50% and above. The Promaths programme contributed 5% of South Africa’s distinctions in mathematics and science in 2021. There are 16 such centres in the country, 10 of which are supported by Investec.

Investec has also launched its Promaths Social Challenge where school pupils suggest projects to uplift communities in education, environmental conservation or youth unemployment. The top three prizes will benefit the winning teams’ schools in the amount of R500 000. ■

Investec and Kutlwanong have opened a Promaths Centre.

Towfiqu barbhuiya on Unsplash

OVERVIEW

Tourism

Domestic tourists chose the Eastern Cape in 2022.

SECTOR INSIGHT

Atotal of 5.7-million domestic tourists visited the Eastern Cape in 2022, 700 000 more than in the year before.

The provincial economy benefitted to the tune of R8.6billion and the Provincial Premier attributed this success to the province’s SMART marketing approach. This refers to a campaign that is specific, measurable, actionable, relevant and time-bound.

Part of the programme has been about getting the province on to film and television screens. The film strategy is covered elsewhere in this journal but the strategy of supporting the hosting of golf tournaments was another success. In addition to hosting the South African PGA for the third time in 2023 at St Francis Links, a new, DP World Tour-sanctioned event, the SDC Championship, was added to the calendar and played on the Jack Nicklaus-designed course in March 2023. Gqeberha also hosted a new tournament, and the metropolitan municipality put its weight behind the effort to market the city through the tournament. The Nelson Mandela Bay Championship was played as part of the DP World Tour at Humewood Golf Club and attracted considerable media attention.

Infrastructure improvements at facilities run by the Eastern Cape Parks and Tourism Agency (ECPTA) are continuing. Most recently, R7.5million was spent on erecting four new chalets and a viewing deck at Hluleka Nature Reserve in the OR Tambo District. To facilitate access to tourism destinations, a plan is in place to improve roads, such as the important roads for tourist access, such as those to Hluleka Nature Reserve and the newly-gazetted road from Viedgesville to Coffee Bay which are being prioritised.

In addition, the National Department of Tourism is funding the Interpretation Centre at Bavianskloof (a World Heritage Site) in the amount of R42-million; a further R9-million will be spent on a hiking trail; the National Department of Forestry, Fisheries and the Environment (DFFE) will spend R45-million on the chalets at Cape Morgan. Work has been completed on the Silaka Nature reserve in Port St Johns at a cost of R11-million, another DFFE project. The ECPTA is tracking and profiling tourists’ needs and their perceptions about the province.

Resorts and hotels

Sun International runs the Wild Coast Sun and the fivestar Boardwalk Casino and Entertainment World in Port Elizabeth, which includes conference and events facilities.

Since the Wild Coast Sun became a four-star resort in 2020, there has been continuing investment in new facilities and upgrades. In 2022, the breakfast and function rooms were treated to a new floor and bathroom area, two new franchise restaurants were opened and a new convenience shop was introduced.

The Wild Coast Sun continues to invest in upgrades and new facilities.

Dylan Mostert was a popular winner of the first Nelson Mandela Bay Championship. Credit: Sunshine Tour

The major change came with the introduction of South Africa’s first indoor Skypark by The Magic Company, which also operates the resort’s rides, bowling alley and arcade games. The Mangwanani Spa will be upgraded in 2023. The Wild Coast Sun was fully booked by October for the festive season, with a maximum capacity from 16 December 2022 to mid-January 2023.

The interior of the Eastern Cape is home to several high-end private game reserves such as Shamwari, Mount Camdeboo and Kariega Game Reserve. Some luxury game lodges are located within national parks, such as the Gorah Elephant Camp, which is run by Hunter Hotels and forms part of the Addo Elephant National Park.

Premier Hotels has two hotels in East London, the Mpanga Private Game Reserve and it manages the East London International Convention Centre.

The Radisson Blu in Port Elizabeth offers five-star luxury overlooking Pollock Beach. Tsogo Sun has five Eastern Cape properties.

ONLINE RESOURCES

Buffalo City Tourism: www.buffalocitytourism.co.za

Eastern Cape Parks and Tourism Agency: www.visiteasterncape.co.za

Nelson Mandela Bay Tourism: www.nmbt.co.za

The Courtyard Hotel, City Lodge Hotel and Road Lodge are close to one another on Port Elizabeth’s beachfront and allow the group to cater to three distinct markets with a total of 442 rooms. East London has a Road Lodge. ■

Addo National Elephant Park. Credit: NMB Tourism

Film

Investment in film is creating good returns.

SECTOR INSIGHT

Skills transfer to young people has also accelerated with the investments taking place in four of the province’s district or metropolitan municipalities. The six goals outlined by the ECDC as its goals in supporting the development of the film industry in the province are:

• attract major direct investments on a consistent basis

The Eastern Cape Provincial Government, through the Eastern Cape Development Corporation, invested R23-million over four years in the film industry.

The return on this investment was a highly-creditable R389-million with the creation of 6 900 jobs and 572 SMMEs benefitting during the production phases.

The Economic Impact Report of the National Film and Video Foundation in 2021 concluded that the film industry is one of the sectors with the greatest potential for growth in South Africa.

In addition to concrete financial benefits, the rewards to the province of having tens of thousands of TV series and film watchers soaking up the scenery of the province, while difficult to quantify, will be considerable. About 13 projects were supported, including one of the top ten most-watched television shows on Showmax in 2021, The Dam. Set in an Eastern Cape farming community, this psychological thriller was one of the most nominated series at the 2022 South African Film and Television Awards.

Tourism, one of the best sectors for creating employment, will have been boosted by two series of the popular Survivor series. Survivor: Immunity Island, pictured, which was aired in 2021, showed off the glories of the Wild Coast landscape, one of the jewels in the crown of the province’s tourism offering.

ONLINE RESOURCES

Department of Trade, Industry and Competition: www.thedtic.gov.za

Eastern Cape Development Corporation: www.ecdc.co.za

Film and Publication Board: www.fpb.org.za

National Film and Video Foundation: www.nfvf.co.za

• create a number of temporary and permanent jobs

• promote the province as a film tourism destination

• increase the participation by SMMEs during filming

• increase opportunities for skills enhancement for young people

• increase revenue through the contribution of film production companies to taxes

There is also potential for the growth and development of a thriving film industry to have a positive impact on other sectors such as communication, media and entertainment.

The industry, through its products, further promotes cultural knowledge and attracts international interest to the region. ■

The Dam drama series has attracted viewers and award nominations.

Global Business Services

The ECDC has a generous incentive scheme.

SECTOR INSIGHT

A UNDP programme is boosting digital skills.

Callzilla, a call centre servicing the US market, has chosen to locate its latest office in East London.

Citing reports that South Africa is ranked third in the world among English-speaking destinations, Callzilla notes that 90% of services delivered from South Africa are related to customer experience (CX) and contact centre services. The investment in East London has created happy customers in the US, according to Callzilla, and happy employees, pictured.

The GBS Incentive scheme of the Eastern Cape Development Corporation (ECDC) provides investment-funding support for financially viable propositions that create youth employment opportunities. There are three tiers of support available, depending on the size of the investment and how many jobs and opportunities for local SMMEs are created.

For a R50-million project over three years, a maximum sum of R400 000 is available while a contract between R201-million and R500-million might attract up to R1.2-million in support.

South Africa’s GBS sector, previously known as BPO, is growing twice as fast as the world’s and three times faster than India and the Philippines.

The Eastern Cape has four universities and eight TVET colleges, highspeed connectivity and an attractive lifestyle.

Other factors in favour of the area are the relatively neutral accents, good financial and telecommunications infrastructure and the time zone being the same or close to Europe’s.

The East London Industrial Development Zone (ELIDZ) has an

ONLINE RESOURCES

Business Process enabling South Africa (BPeSA): www.bpesa.org.za

Coega SEZ: www.coega.co.za

Eastern Cape Development Corporation: www.ecdc.co.za

East London Industrial Development Zone: www.elidz.co.za

ICT strategy that intends creating an ICT Hub which will include a dedicated GBS facility, a scalable data centre and a 1 000-seat-business continuity and ICT training facility. The ELIDZ currently operates two data centres with ISO27001 accreditation and has obtained approval for the concept development of an 800-seater GBS Park in conjunction with an interested party.

As of May 2023, a total of 1 529 jobs had been created in the Coega Business Process Outsourcing Park of the Coega SEZ. Discovery Health and Startek are the tenants of the park, with almost all of the employees being classified as permanent and 70% as youth.

The Coega BPO Park offers a customised space at competitive rates in addition to an uninterrupted power supply, in-house recruitment, training, a variety of incentives and the convenience of being accessible to all main transportation nodes.

A Future Skills Platform programme passed on digital skills to 959 people early in 2023, courtesy of the Eastern Cape branch of Business Processing enabling South Africa (BPESA), Evolution, Coega SEZ and Volkswagen SA. The programme has been running since October 2022 under the auspices of the UNDP (United Nations Development Programme). ■

Credit: Don’t Stare Pictures

Oceans economy

A Maritime Chamber of Commerce has been established.

Scientists at Nelson Mandela University are part of a project to create a digital twin of the ocean so that accurate predictions can be made about the future. Professor Mike Roberts and his team have deployed oceanographic instruments to collect data on the ocean dynamics of the Mozambique Channel. This includes collecting information on currents, temperature, ocean productivity, habitats, fish and human populations which will help to predict what the Western Indian Ocean (WIO) will look like from now until 2100.

Prof Roberts heads the UK-SA Bilateral Research Chair in Ocean Science and Marine Food Security. This is jointly hosted by Nelson Mandela University in South Africa and the University of Southampton in the United Kingdom.

Previous research found that regime shifts in the Agulhas Bank ecosystem, possibly as result of climate change, resulted in the squid fishery collapsing in the Eastern Cape in 2001 and 2013. Over 2 400 squid fishermen lost their livelihoods, with about 35 000 family dependants being affected. His team is developing a policy brief that they aim to put on the 2023 agenda of the United Nations World Food Security Committee. This is to raise the issue of marine food security.

The Maritime Business Chamber (MBC) has been established in the Eastern Cape, with its headquarters overlooking the Port Elizabeth harbour. It aims to address the imbalances in the maritime industry by representing the interests of all local businesses. It is aligned with strategic programmes such as Operation Phakisa and the Comprehensive Maritime Transport Policy (CMTP) and creates opportunities for SMMEs.

Eastern Cape economic planners are getting advice from Egypt on how to scale up aquaculture. The North African country, which is sharing technical and funding ideas with the Eastern Cape, produces 1.6-million tons of product in its aquaculture industry whereas South Africa’ s total is currently less than 10 000 tons.

The focus of an expanded aquaculture sector is at Mbashe, Coega Special Economic Zone and the East London IDZ.

The Coega Development Corporation (CDC) has set out a 440-ha zone inside the Coega SEZ adjacent to the deepwater Port of Ngqura.

ONLINE RESOURCES

Maritime Business Chamber: www.maritimechamber.co.za

Ocean Sciences Campus (NMU): https://oceansciences.mandela.ac.za

South African International Maritime Institute: www.saimi.co.za

SECTOR INSIGHT

The Coega SEZ is served by two ports, is on the N2 highway and close to the Chief Dawid Stuurman International Airport, an important consideration for the export of live products.

Other potential Oceans Economy sectors such as maritime repair and maintenance and oil and gas exploration have great potential. An Oceans Economy Master Plan has been created and so far, 73 co-operatives have been awarded 15-year licences by the National Department of Forestry, Fisheries and the Environment (DFFE). ■

Nelson Mandela University is mapping the ocean.

Professor Mike Roberts, NMU.

Maritime Business Chamber

South Africa’s first Maritime Business Chamber aims for inclusivity in the growing Oceans Economy.

The Maritime Business Chamber (MBC) is a registered Non-Profit Company (NPC) with the aim to address the imbalances and opportunities in the South African Maritime Industry representing the interests of all local businesses currently and wishing to participate in the sector.

The Chamber has positioned itself as the voice of the Maritime Industry by providing business support, promoting sustainable jobs, skills development and lobbying for business opportunities.

The Chamber is strategically aligned with the Operation Phakisa, Comprehensive Maritime Transport Policy (CMTP), South Africa’s Oceans Economy Master Plan and the IMO Maritime Policy for sustainable maritime. The MBC is determined to align itself with the Maritime global commitments for the development of competent and sustainable Maritime Enterprises.

Mission

To be a leading partner in offering Maritime services

CONTACT DETAILS

that promote socio-economic growth and Maritime industry capacity building.

Membership

Membership of the MBC is open to registered businesses or institutions willing to be part of an effort to grow participation in the Maritime Industry. Benefits include:

• Promote industry access & sustainable partnerships

• Provide industry research

• Advocates for all sectors of Maritime

• Information from industry advisory

• Provide expert advise & expertise

• Advance relations & align sustainable programmes with relevant stakeholders

The Chamber’s obligation to the membership remains at lobbying and committed to the sector and advocacy for a more inclusive and empowered Maritime Industry, ie

• Maritime Business Services

• Lobbying and advocate on behalf of its constituents.

Address: Maritime Chamber House 211, Walmer Boulevard, South End, Gqeberha 6001

Tel: +27 (0) 41 587 5855

Email: adminoffice@maritimechamber.co.za

Website: www.maritimechamber.co.za

From left to right: Lungisa January (Operations Executive), Unathi Sonti (Executive Chairperson), Nondumiso Mfenyana (Executive Secretary), Audrick Kramer (Deputy Executive Secretary), Xhanti Lamani (Deputy Executive Chairperson).

Manufacturing: general

Investment is accelerating.

The 2022 Provincial Investment Conference attracted the highest number of investors ever into the province, and the biggest monetary amount.

Many of the investors who were part of the pledge of a total of R46-billion were in the manufacturing sector, including the German roads surface and road maintenance company, Liesen Bitumen.

The investment of Aqora Lithium Batteries points to a trend that will grow in the years to come, with renewable energy taking an increasingly important position within investment baskets.

Bushveld Energy, a subsidiary of vanadium miner Bushveld Minerals, intends commissioning its Belco factory in East London in 2023. The company says that this will be the largest vanadium battery electrolyte plant in the world, excluding China. The company is targeting eightmillion litres per year within four years from the factory, that was built in partnership with the Industrial Development Corporation (IDC).

Among other manufacturers making investment pledges were Benteler, South African Breweries, Mhlobiso Concrete and Toyota Material Handling. SAB’s Ibhayi Brewery has allocated R510-million for plant expansion.

The provincial government aims for more diversification in manufacturing and is targeting sectors where the province already has a competitive advantage (such as wool and mohair), are labour intensive, will have a broad impact and have low barriers for SMME entry.

A fibre-processing plant to spin wool and mohair fibre into yarn is planned, as is a textile mill to focus on cotton, poly-cotton and acrylic fabric. The latter is planned for the IDZ in East London, which is already home to Da Gama Textiles, whose factory has the capacity to produce 45-million square metres of fabric per annum. Da Gama makes the popular and distinctive shweshwe fabric, using its own unique printing process.

Several cluster development programmes aim to develop specific industries by bringing together expertise and logistical support. A NonAutomotive Manufacturing (NAM) Cluster concentrates on training, supplier development, energy efficiencies and developing new markets. Swedish concern Fagerhult Group has entered the South African market via an acquisition of the factory of Port Elizabeth’s Lighting Innovations, and the two subsidiary companies Arrow Lighting and Beacon Lighting.

ONLINE RESOURCES

Coega Development Corporation: www.coega.co.za

Eastern Cape Development Corporation: www.ecdc.co.za

East London Industrial Development Zone: www.elidz.co.za

SECTOR INSIGHT

South African Breweries is spending R510-million on expansion.

Montego Pet Nutrition, GraaffReinet’s biggest private employer, has been investing in both expanded capacity and in power generation, with the installation of an array of solar panels. More than 200 staff members work in the Karoo town’s factory.

First National Battery, a Metair Group company, has one factory at Fort Jackson and two factories in East London. Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Party in Port Elizabeth and Gately Township, East London.

Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Port Elizabeth. East London hosts Johnson & Johnson’s finance, operations and research and development divisions. ■

Liesen Bitumen, Fort Jackson, Mdantsane.

Manufacturing: automotive

Panelbeaters and mechanics are to get better access to markets.

and growing its local operations, which employ about 850 people, pictured. This is a part of a bigger investment which includes the vehicle assembly operations in Gauteng.

An Aftermarket Programme has been introduced to assist independent mechanics and panelbeaters to get better access to the budgets spent annually by the insurance industry, estimated to be in the region of R40-billion, and the national government automotive fleet (R100-million).

The scheme, to be run by the Automotive Industry Development Centre – EC (AIDC-EC), will be offered to 300 operators in the province for a three-year period in which training and funding will be highlighted.

The Provincial Government of the Eastern Cape has announced that it intends partnering with the private sector to establish a Component Supplier Development Fund to expand access to finance for smaller enterprises.

Another task of the AIDC-EC is to prepare the province for the introduction of electric vehicles. This entails promoting renewable energy projects within the sector, rolling out skills programmes to assist with the transition to new technologies and installing electric-vehicle-charging stations on major routes.

Ford Motor Company has initiated discussions about the feasibility of developing a sophisticated rail corridor between Gauteng and the Eastern Cape. The company wants to send parts to Pretoria and export cars through the Port of Gqeberha.

Ford makes engines for the Ford Ranger pickup and Everest SUV at its Struandale plant and it has committed to invest R600-million for modernising

ONLINE RESOURCES

Automotive Business Council: www.naamsa.net

Automotive Industry Development Centre: www.aidc.co.za

Coega Development Corporation: www.coega.co.za

Eastern Cape Development Corporation: www.ecdc.co.za

National Association of Automotive Component and Allied Manufacturers: naacam.org.za

The 520 963m² Kariega facility of Volkswagen South Africa is one of four plants worldwide that makes right-handdrive Polos but the only one in the world that makes the Polo GTI.

Both the Coega Special Economic Zone and the East London Industrial Development Zone (ELIDZ) have areas dedicated to automotive and automotive components manufacture.

Mercedes-Benz South Africa’s new C-Class project (W206) has sparked several other related investments, which collectively will create 2 078 new jobs over two years.

The production of the C-Class vehicle is a technological marvel and the plant regularly wins international awards for quality. The installation of a new sequencing centre, installed by Automotive Logistics Solutions (an AHI company), has made the assembly line even more efficient.

Home-grown manufacturer of powertrain and catalytic converter assembly systems, Jendamark, exports to 18 countries. Continental Tyre South Africa is producing a 19-inch tyre for the first time at its New Brighton facility in Port Elizabeth. Isuzu SA has completed its consolidation project, with truck and bakkie manufacturing now taking place at its new headquarters in Struandale, Port Elizabeth. ■

Ford is pushing for a rail link to Tshwane.

SECTOR INSIGHT

Development finance and SMME support

Water contract flows from networking.

The Wild Coast Sun has a new water supplier. L’aQua Joyce, owned and run by Thumeka Mcobothi, pictured, from Bizana in the Amadiba A/A Marina Location, will provide water-cooler equipment and bottles as part of the resort’s Enterprise Development initiative.

The three-year contract follows Thumeka’s attendance of a two-day SMME Business and Networking Conference run by the resort to help educate and assist SMMEs with information related to procurement opportunities. She has also been selected to attend the Wild Coast Sun Academy to study an SMME business course. The resort aims to achieve 90% procurement of all goods and services from BBBEE level 1 suppliers within the next five years.

The Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) is working with the Eastern Cape Development Corporation (ECDC) to increase the support of SMMEs. This is done by helping SMMEs gain access to finance and markets, as well as ensuring that provincial government contracts are accessible to small businesses. Provincial government departments are encouraged to buy from SMMEs.

Three of the ECDC’s four business units are devoted to small business: Rural, Enterprise Finance and Business Support; Investment Management, Trade and Investment Promotion; and Economic Development Coordination and Sector Support.

The ECDC has several financial and non-financial products tailored to SMMEs through various programmes offered by these business units. Export Help Desks have been established to support small business in the Nelson Mandela Bay and Buffalo City Metropolitan Municipalities.

The Small Enterprise Development Agency is an agency of the National Department of Small Business Development (DSBD) which gives non-financial support to entrepreneurs through training, marketing and assistance in the writing of business plans. The Seda Technology Programme (Stp) helps potential businesses become trading entities. The Seda Incubation Unit supports 14 incubators in the province to the value of R29.8-million.

Work is underway to refurbish several state-owned industrial parks. Areas like the Dimbaza Industrial Park assist SMMEs with affordable space and the

ONLINE RESOURCES

Eastern Cape Development Corporation: www.ecdc.co.za

Eastern Cape Rural Development Agency: www.ecrda.co.za

programme has so far created 379 jobs and involved 71 local SMMEs.

The DSBD has a Shared Economic Infrastructure Facility, which is investing R34.7-million in support of Eastern Cape projects: the KwaNtozonke Product Market in King Sabata Dalindyebo Municipality and the Chris Hani Co-operative Development Centre in Chris Hani District. A further R1.9million has been allocated to 141 informal and microbusinesses in the Amathole and Joe Gqabi District Municipalities.

Volkswagen South Africa (VWSA) has a project called Ntinga (“to soar” in Xhosa) whereby suppliers receive training and are mentored for 18 months. ■

The Seda Technology Programme supports 14 incubators.

SECTOR INSIGHT

Helping entrepreneurs grow

The Eastern Cape Development Corporation has several programmes which support SMMEs.

Services include: business networks; advisory support; business plan development; feasibility studies; due diligence; mentorship and coaching; quality management support; marketing support; intellectual property registration support and management; pre-commercialisation studies; skills development; information workshops and seminars.

Development Finance

The Development Finance sub-unit manages the ECDC’s business finance product offering and assists enterprises gain access to finance.

The Business Development Services

Unit of the Eastern Cape Development Corporation (ECDC) forms the backbone of the enterprise development ecosystem which ensures the sustainability of businesses.

Business Support

The Business Support sub-unit provides non-financial pre-investment and post-investment support, ensuring that businesses are ready for finance, market ready and poised for long-term growth.

Ongoing support is available through mentorships, market access opportunities as well as business and financial management advice. The unit offers both strategic and operational services to equip small businesses to perform to their full potential, with increased profitability and improved management processes that enhance their long-term viability.

The Business Support sub-unit promotes a culture of entrepreneurship, improvement in business competitiveness and facilitates access to market and to education and training for SMMEs.

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

Through both short-term and long-term products, the ECDC has set itself apart as the financial service provider of choice for initiatives that bring a meaningful development impact. With an understanding of the historical lack of access of small-to-medium enterprises to finance, the ECDC uses adequate management capacity and business viability as key lending criteria.

ECDC Access, the category name for short-term finance, offers products geared towards facilitating efficient cash flow management. “Access” denotes the values of flexibility, convenience, efficiency and transparency. ECDC Future, the category name for long-term finance, offers long-term debt finance vehicles, one covering commercial property and another dealing with equity finance.

The ECDC’s business finance products are best suited to applications that facilitate job creation and/or retention, economic empowerment, value addition, rural/township development and increased export income. Any greenfield initiative that leads to expansion and rehabilitation will be eligible for application for finance.

The ECDC aims to provide efficient client service for the entire duration of the contract term. Monthly account management and quarterly report-back visits will gauge the health of the business. ■

The Informal Business Support Programme (IBSP), implemented through the ECDC, sees to it that small businesses have the tools and equipment they need to prosper and grow.

Banking and financial services

Agricultural app extends bank’s reach.

Absa Bank, which already has a strong presence in the agricultural market in South Africa, has bought shares in an e-trading platform. Khula! has three platforms that allow farmers and distributors to connect with exports and retail and wholesale buyers. More than 5 000 products are available on the Input Marketplace app.

Absa has previously supported Khula! through its Enterprise Development division and has worked with the app on standardising payment options. Abrie Rautenbach, Head of Absa AgriBusiness, says the acquisition will not only enhance Absa’s agriculture proposition for SMMEs, but allow Absa to further assist with the continued expansion of the Khula! proposition, potentially also into other African markets in which the bank operates.

African Bank, with an eye on listing on the JSE, completed its purchase of Ubank in 2022. When Ubank came out of curatorship in 2016, the SA Reserve Bank acquired its shares and invested R3-billion. The purchase will expand African Bank’s lending base by nearly five-million customers and comes on the back of the purchase of Grindrod Bank, which strengthened the bank’s business-lending operations.

Two new licences for mutual banking have been approved nationally, despite the collapse of VBS, a Limpopo-based mutual bank. The nature of the South African market lends itself to mutual banking. Both the Young Women in Business Network (YWBN) and Bank Zero will use the mutual model.

Discovery Bank officially launched in March 2019 and is experiencing rapid growth with deposits of R3.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour.

Another relatively new bank is Capitec. Investment holding company PSG has reduced its holding in Capitec Bank from 32% to 4%, earning about R4-billion by selling those shares.

TymeBank, one of the newer entrants onto the South African banking scene, is taking the concept of “retail banking” to another level. Having run banking kiosks within Pick n Pay and Boxer stores for several years, TymeBank has signed a deal with TFG, a group that has a big presence in the Eastern Cape.

ONLINE RESOURCES

Auditor-General of South Africa: www.agsa.co.za

Financial Sector Conduct Authority: www.fsca.co.za

South African Institute for Chartered Accountants: www.saica.co.za

SECTOR INSIGHT

What used to be known as the Foschini Group has 34 brands, including Markhams, Totalsports, Jet and Dial a Bed, and 30-million customers. In the short term, TymeBank will have access to 600 TFG kiosks, taking the bank’s total in South Africa to 1 450.

The financial and business services sector is responsible of 19.2% of the Eastern Cape’s Gross Domestic Product (StatsSA). The sector provides employment for 141 000 people. Agricultural finance is an important factor in the Eastern Cape. Production loans, vehicle financing and revolving credit plans all play an important role in keeping farmers and agro-processors in business. ■

African Bank has bought Ubank.

Khula! CEO Karidas Tshintsholo.

Eastern Cape Provincial Government

A guide to the Eastern Cape’s provincial government departments. Visit www.ecprov.gov.za

Office of the Premier

Premier: Oscar Mabuyane

Office of the Premier Building, Independence Avenue, Bhisho 5605

Tel: +27 40 609 6644 | Fax: +27 86 681 9493

Website: www.ecprov.gov.za

Department of Cooperative Governance and Traditional Affairs

MEC: Mr Zolile Williams

Tyamzashe Bldg, Room 2124, 2nd Flr, Bhisho 5605

Tel: +27 40 949 7191 | Fax: +27 40 639 2163

Website: www.eccogta.gov.za

Department of Economic Development, Environmental Affairs and Tourism

MEC: Mlungisi Mvoko

Block 16, Business Village, Bhisho 5605

Tel: +27 43 605 7004/7 | Fax: +27 43 605 7303

Website: www.dedea.gov.za

Department of Education

MEC: Mavhungu Leruli-Ramakhanya

Steve Tshwete Education Bldg, Zwelitsha Zone 6, Zwelitsha 5608

Tel: +27 40 608 4200 | Fax: +27 40 608 4040

Website: www.ecdoe.gov.za

Department of Health

MEC: Nomakhosazana Meth

Dukumbane Bldg, Independence Ave, Bhisho 5605

Tel: +27 40 608 1117 | Fax: +27 40 608 1118

Website: www.echealth.gov.za

Department of Human Settlements

MEC: Siphokazi Lusithi

31-33 Phillip Frame Rd, Waverly Park, Chiselhurst, East London 5247

Tel: 086 000 0039 | Fax: +27 43 711 9797

Website: www.ecdhs.gov.za

Department of Public Works and Infrastructure

MEC: Ntombovuyo Nkopane

5 Qasana Bldg, Independence Avenue, Bhisho 5605

Tel: 0800 864 951 | Website: www.ecdpw.gov.za

Department of Rural Development and Agrarian Reform

MEC: Nonkqubela Pieters

Dukumbane Bldg, Independence Ave, Bhisho 5606

Tel: +27 40 602 5006 | Fax: +27 40 635 0604

Website: www.drdar.gov.za

Department of Safety and Liaison

MEC: Xolile Nqatha

Cnr Independence Avenue and Circular Drive, Bisho

Tel: +27 43 605 6800 | Fax: 086 558 0224

Website: www.safetyec.gov.za

Department of Social Development

MEC: Bukiwe Fanta

Phalo Ave, 5th Flr, Dukumbana Building, Bisho 5605

Tel: +27 43 605 5000 | Fax: +27 43 605 5000

Website: www.ecdsd.gov.za

Department of Sports, Recreation, Arts and Culture

MEC: Nonceba Khontsiwe

5 Eales St, King Williams Town 5600

Tel: +27 43 604 4101 | Website: www.ecsrac.gov.za

Department of Transport

MEC: Xolile Nqatha

Flemming St, Schornville, King Williams Town 5601

Tel: +27 43 604 7400 | Fax: 086 298 5598

Website: www.ectransport.gov.za

Provincial Treasury

MEC: Mlungisi Mvoko

Provincial Treasury, Tyamzashe Bldg, Bhisho 5605

Tel: +27 40 353 9944 | Fax: +27 40 101 0731

Website: www.ectreasury.gov.za

Fast-tracking projects and lowering the cost of doing business

The Eastern Cape Development Corporation (ECDC) is the host of the Eastern Cape Investor One Stop Shop.

The Investor One Stop Shop initiative is geared towards providing investors with services to fasttrack projects and reduce government red tape when establishing a business. It is part of the government’s drive to become investor friendly by improving the business environment by lowering the cost of doing business as well as making the process easier.

One Stop Shops house government entities such as the South African Revenue Service (to help with customs and tax), Home Affairs, Environmental Affairs, Eskom and the Companies and Intellectual Properties Commission under one roof.

An investor can make an appointment, meet a government representative and be guided by the representative through the process of setting up a business. The One Stop Shops simplify administrative procedures for issuing business approvals, permits and licences and thereby remove bottlenecks that investors may face in establishing and running businesses.

The offering includes, but is not limited to:

• Providing an accessible entry point for investors in need of regulatory compliance.

• Enhancing regulatory and legal processes.

• Improving approval turnaround timeframes.

• Providing information on incentives (tax, land, training, free trade zones, etc).

• Providing pre-approval information (market data, costs, incentives, project approval, local partners, etc).

• Providing post-approval information (facilitation of permit approvals, information relating to import of equipment and raw materials, central bank profit repatriation, etc) to investors.

Contact details

Participating national government entities

• InvestSA is a division of the South African Department of Trade, Industry and Competition (the dtic)

• Business registry: Companies and Intellectual Property Commission (CIPC)

• Tax authority: South African Revenue Service (SARS)

• International Trade Administration Commission (ITAC)

• National Regulator for Compulsory Specifications (NRCS)

• Public electricity utility: Eskom

• Municipal Infrastructure Support Agent (MISA)

Visa facilitation

Visa and permit applications can be made at Visa and Permit Facilitation Centres. Applications are then assessed by the Department of Home Affairs in Pretoria. Non-South Africans with a legal residency permit in South Africa can apply for a visa or permit at these centres.

There are centres in every province. In the Eastern Cape there is an office in East London. The South African government is reviewing its critical skills list as well as taking steps to make it easier for people who qualify to apply.

The Eastern Cape invitation

The Eastern Cape InvestSA One Stop Shop and ECDC team can advise you on investment opportunities and assist investment and trade opportunities from the same offices. The Eastern Cape team is committed and qualified to assist and guide you from concept to investment phase.

During the last quarter of 2022/23, the EC OSS provided advisory and facilitation services to more than 17 prospective clients. ■

For investment advisory, information and facilitation services please visit the EC One Stop Shop Website: www.investeasterncape.co.za

Alternatively contact us on Email: info@investeasterncape.co.za

Call: +27(0) 87131 1450