Eastern Cape Business 2024 by Global Africa Network Media

Welcome to the Eastern Cape

Mr Ayanda Wakaba, Chief Executive Officer of the Eastern Cape Development Corporation (ECDC), extends a warm welcome to a land of infinite possibilities and investment opportunities that is open for business.

Accounting for nearly half of South African vehicle exports, the Eastern Cape is a proud host to three global automotive manufacturers, Isuzu, Mercedes-Benz and Volkswagen. The province is also home to a Ford engine manufacturing plant. With three sea ports and airports, we lay claim to competitive logistics for investors and easy access to regional and international markets. Two renowned Special Economic Zones (SEZs), the East London and Coega Industrial Development Zones (IDZs), and industrial parks infrastructure

throughout the province accentuate our attractive business sites with access to world-class logistics infrastructure and a significant crosssectoral investment potential.

We are preparing fertile ground for the development of sector-based capabilities. Apart from a world-class manufacturing sector, the province holds a significant investment potential in agriculture, with opportunities in agro-processing, light manufacturing, renewable energy, digital economy, tourism and the Oceans Economy. These sectors offer immense potential for investment and job creation and they serve as focal points for economic development initiatives.

The province is developing the requisite public infrastructure to support the attraction of private capital. The province is aware that public investment in economic infrastructure forms the bedrock of energised economic activity and investor-attraction activities. The province is investing in social and economic infrastructure which is designed to position the province as the ideal place to invest, work and play. We are building roads and improving ports and airports infrastructure. We are developing Special Economic Zones and industrial parks as platforms for foreign and local direct investment.

A conducive environment

These interventions are designed to create a conducive environment and a soft landing pad for private investment. In addition, the recently launched Provincial Investment Council (PIC) is intended as a publicprivate platform to find innovative means to remove red tape and regulatory hurdles to investor attraction.

Government is using its agencies such as the ECDC as vehicles to promote provincial economic transformation, inclusive growth, competitiveness, investor-focussed solutions, pioneering innovation in key growth sectors, operational efficiencies and financial sustainability.

At the centre of these efforts is the cultivation of strategic partnerships and public-private stakeholder engagements that respond to national and provincial economic development strategies while unlocking the potential of the Eastern Cape economy. These efforts are informed by the imperatives outlined in South Africa’s Country Investment Strategy (CIS) which outlines the path towards sustainable economic development.

Ayanda Wakaba, CEO of the Eastern Cape Development Corporation

Informed by the CIS framework, we are committed to exploiting investment opportunities in: Green hydrogen: Pioneering the global forefront of green energy:

The Eastern Cape is party to the Three Capes MoU between the Western Cape, Northern Cape and Eastern Cape, which allows for the establishment of a conducive institutional framework and interprovincial coordination to enhance localised renewable energy production. The MoU was signed at the South Africa Green Hydrogen Summit, pictured below.

Next-Generation digital industries and infrastructure:

The ECDC supports the promotion of innovation and the building of vital infrastructure in metros and rural areas through various infrastructure support programmes.

Special Economic Zones: Anchoring advanced manufacturing and logistics networks:

The Eastern Cape currently possesses two critical Special Economic Zones, the Coega Special Economic Zone and the East London Industrial Development Zone, enhancing industrialisation endeavours and enhancing the Eastern Cape’s investment attractiveness.

Industrial cannabis and agro-processing: Harnessing the potential of advanced agriculture:

• Spearheading the drive for industrial cannabis beneficiation, the province is poised for export growth in this globally competitive sector.

• Recent livestock exports show the Eastern Cape’s potential to drive increased agricultural exports.

Hyper-scaling impact investment: Driving social and green economy objectives:

The green and renewable energy sectors offer greenfield opportunities for investment in the province, while development of the Global Business Services sector, supported by the ECDC,

drives opportunities for SMME development and youth employment in the province.

Investment declarations from the Eastern Cape Investment Conferences in 2022 and 2023 demonstrate the province’s commitment to sustainable investment attraction. We are celebrating the successful implementation of key projects in manufacturing, media, construction and retail. Notable projects, such as BENTELER’s manufacturing venture, and Tshedza Picture’s media production initiative, underscore the potential and opportunities in the Eastern Cape.

The recently introduced Economic Development Fund (EDF) stands as a testament to our dedication to supporting entrepreneurship, stimulating economic growth and creating sustainable employment opportunities. A strategic allocation of resources and strategic partnerships are intended to unlock the full potential of our economy and to empower communities.

Looking ahead, we are excited about the opportunities presented by initiatives such as the African Continental Free Trade Area. We also remain focused on driving growth across all global markets.

We extend our heartfelt gratitude to our esteemed shareholders, stakeholders, partners, and collaborators for their unwavering support and commitment. Together, we will chart a course towards a brighter and more prosperous future for the Eastern Cape.

Join us in mapping an inclusive future for the Eastern Cape premised on shared growth and investment returns. ■

PHOTO: GCIS

Provincial Investment Outlook

At the 2023 Eastern Cape Investment Conference, R127-billion worth of investments were declared by 21 companies, providing a boost to economic growth across several sectors and multiple regions.

The province has attracted investments valued at R173-billion into the Eastern Cape economy since 2019. These investments reflect the province’s commitment to the attraction of sustainable foreign and local direct investment. These new investment commitments into the Eastern Cape represent a pivotal moment in the province’s economic trajectory.

The investments were announced by the province at the Eastern Cape Investment Conference hosted by the ECDC as a platform to attract investment and to showcase investor-attraction initiatives. The conference serves as a platform:

• to promote economic growth, attract investors and showcase the immense investment potential of the province

• to drive investor messaging and investor projects in a coordinated manner across the three spheres of government

• for government, business leaders, entrepreneurs and investors to collaborate, network and explore opportunities in various sectors

The province has hosted three successful investment conferences, in 2019, 2022 and 2023. The outbreak of the Covid-19 pandemic led to the postponement of the conferences in 2020 and 2021. The key objective of the investment conference is to showcase the strides the province has made with regards to investor coordination and facilitation across provincial, district and local spheres.

Priority is given to sectors and industries that are poised to transform the structure of the economy towards inclusive development, by:

• mobilising attraction efforts towards qualitative investment projects

• directing investment into strategic and labourintensive sectors to address under-investment

• developing new economic nodes and value chains

• positioning the Eastern Cape as a preferred investment destination

• promoting investment facilitation and aftercare services

At the 2022 Eastern Cape Investment Conference, 10 investor declarations worth R46-billion were announced. These investments were:

• Shoprite, retail and logistics sector. South Africa’s largest supermarket group by market capitalisation declared a R1.5-billion investment for the expansion of its distribution centre in Nelson Mandela Bay.

• BENTELER Automotive, automotive component manufacturer, declared a R168-million investment into an approximately 9 000m² extension of its Kariega plant and a new hot-forming line in Kariega in Nelson Mandela Bay.

• In the film sector, production company, Tshedza Pictures declared an R85-million investment for the production of the telenovela, Gqeberha: The Empire, which was produced in Nelson Mandela Bay.

• Leading supplier of material handling and industrial equipment, Toyota Material Handling, declared a R60-million investment for the operationalisation of its automotive material-handling project.

• In the construction sector, Nelson Mandela Bay’s Mhlobiso Concrete declared a R9.5-million investment into the establishment of a sustainable ready-mix concrete facility.

• In the public infrastructure investment sector,

national roads agency, Sanral declared a R7.2-billion investment into road facilities, improvements, maintenance and road network strengthening across the Eastern Cape.

• Integrated national freight and logistics giant, Transnet, declared a R1.59-billion investment into the Port of Ngqura.

• In the property development sector, Sanaha Property Development declared a R542million investment into retail property development projects, for lease and sale of land for the construction of 59 Boxer Stores.

At the 2023 Eastern Cape Investment Conference, R127-billion worth of investments were declared by 21 companies.

These investments will inject substantial capital into the provincial economy, leading to a cascade of positive effects that will benefit citizens, businesses and the overall economic landscape.

The investment declarations represent a diverse array of sectors and span a significant portion of the Eastern Cape’s districts, providing extensive economic development prospects.

• In the oil and gas sector, the TAMSA Holdings and Central Energy Joint Venture is investing R13.6-billion for the construction of an on-shore Liquified Natural Gas storage and regasification terminal in Nelson Mandela Bay.

• South African Breweries , a subsidiary of the world’s largest beer producer AB InBev, is investing R510-million in the manufacturing sector for the extension of its brewery in Nelson Mandela Bay.

• In the tourism sector, Mkambati Matters , located in Mkambati Game Reserve, is investing R250-million into an ecotourism lodge development in the OR Tambo District Municipality.

• Independent power producer, Parson Power Park , is investing R2.7-billion in the energy

Investors in the renewable energy sector in the Eastern Cape, particularly the wind power sector, have been building energy facilities in the province for more than a decade.

PHOTO: Cennergi Services

sector for the construction of a solar power plant in Nelson Mandela Bay.

• Ivili Loboya Wool Processing is investing R45million for the expansion of its existing woolprocessing factory to increase its processing capacity and for infrastructure investment at the Amathole District Municipality.

• In the Information Communication Technology sector, global technology company, Jendamark Automation, is investing R150-million in digital Fourth Industrialisation Revolution technologies in Nelson Mandela Bay.

• Property development firm, AJ Properties, is investing R100-million in the property sector for the establishment of a retail shopping centre in the OR Tambo District Municipality.

• In Nelson Mandela Bay, leader in the development, fabrication and supply of automotive metal formed components, Formex Industries, is investing R114-million in the manufacturing industry for the expansion of a new press plant to increase assembly capacity for Mercedes-Benz South Africa’s US variants.

• Global automaker and provider of innovative mobility solutions, Stellantis, is investing R3billion in the manufacturing sector to develop a new vehicle manufacturing facility in Nelson Mandela Bay.

• Specialising in the development of fuel stations and convenience shopping centres in the lower living standards measure (LSM) markets, Imperium Developments is investing R109million in the property sector for construction of shopping and convenience centres in Peddie, Sterkspruit, Bhisho and in the Berea Shopping Centre, located in the Buffalo City Metropolitan Municipality.

• Thezi-Langa Energy is investing R900-million in the energy sector into a 50-megawatt solar PV project at the East London Industrial Development Zone’s Ntabozuko Renewable Energy Park in the Buffalo City Metropolitan Municipality.

• Furthermore, Hive Hydrogen is investing R105-billion in the renewable energy sector for the construction of a green hydrogen/green ammonia production facility at the Coega Special Economic Zone in Nelson Mandela Bay.

• Bushveld Electrolyte Company is investing R330-million into a vanadium electrolyte production facility in the East London IDZ in the Buffalo City Metropolitan Municipality. It is the largest publicly announced plant outside China.

• Tshedza Pictures, is renewing its commitment to the film sector with an R80-million investment in Season 2 of Gqeberha: The Empire.

• Nexus Yachts is investing R181-million in the manufacturing sector for the expansion of its facility to build new balance catamarans in the Sarah Baartman District Municipality.

• In the information communication technology sector, the Universal Service and Access Agency of South Africa is investing R159million in broadband implementation projects across various regions in the Eastern Cape.

• In the healthcare sector, Medilinks is investing R100-million for diagnostic and primary healthcare centres. The company is scoping appropriate locations in various parts of the Eastern Cape.

Infrastructure is at the heart of improving the climate for inward investment. The Coega River Bridge is an impressive piece of engineering.

The plant in Nelson Mandela Bay where sophisticated automotive parts are produced by BENTELER has recently undergone a 9 000m² expansion.

PHOTO: ARQ Construction

PHOTO: BENTELER International AG

• Lastly, South Africa’s largest mobile communications company, Vodacom , is investing R500-million in the Information Communication Technology sector for expanding connectivity in rural areas and townships.

Establishment of the Provincial Investment Council (PIC)

The Provincial Investment Council (PIC) was launched in September 2023. It is a structure established by the Eastern Cape Premier and is constituted by investment promotion leaders, industrial champions of business, large companies and prominent industry bodies in the Eastern Cape across priority sectors. The PIC includes the leadership of investment promotion agencies, economic cluster departments and metros and district municipalities and other relevant publicsector and private-sector stakeholders with the aim of strengthening province-wide planning, reporting, operation and implementation of investment activities.

The objectives of the PIC are to:

• lead and coordinate the investment efforts in the Eastern Cape across the public and private sectors

• strengthen province-wide planning, reporting, operation and implementation of investment activities

• identify investment-stimulation measures, which include critical reform programmes

• unblock red tape by creating interventions to address any bureaucratic processes impacting industry development relevant to the provincial departments, provincial agencies and national government

• improve the interface and coordination between government and industry players on trade and investment matters

• create mechanisms where investor grievances will be addressed to prevent governmentinvestor disputes

• enhance and improve the regulatory environment for ease of doing business and to enhance inward investment attraction.

ELIDZ

The multi-product Sundale Dairy is just one of several businesses in many sectors which has been attracted to the space and services available in the East London Industrial Zone.

PHOTO:

Bushveld Electrolyte is investing R330-million into making vanadium electrolyte in the Eastern Cape.

All of the Eastern Cape OEMs regularly top up their investments in new production lines and models, making the automotive industry one of the most important sectors in the provincial economy. Here Mercedes-Benz vehicles await export from the Port of East London.

Regional overview of the Eastern Cape

In a year which celebrated a century of automotive investment in the province, new sectors such as renewable and alternative energy are growing, and large infrastructure projects are underway. The province’s ports and Special Economic Zones are receiving

and investments.

Eastern Cape is the site of several

and innovative projects.

Cape

and welcomed a new

an important milestone in

marque to its OEM stable.

A beacon of innovation and progress

Renewable energy investors can expect sustainable growth and profits in the ELIDZ.

In a world where sustainability is paramount, the East London Industrial Development Zone (ELIDZ) Renewable Energy Sector stands as a beacon of innovation and progress. Renowned for its commitment to green energy initiatives, the ELIDZ has emerged as a global leader in fostering a sustainable future.

Recently, the ELIDZ’s efforts were recognised on a global scale. The prestigious Global Africa Eco-Parks, under the auspices of the United Nations Industrial Development Organization (UNIDO), bestowed upon the ELIDZ the esteemed title of the leading Eco-Park in the world. The ELIDZ has been flagged as the lighthouse for Eco-Industrial Parks in South Africa. This not only reaffirms the ELIDZ commitment to environmental stewardship but also underscores its status as a global leader in sustainable development.

With the growing importance of green energy and sustainable development goals, the ELIDZ’s strategy in terms of renewable energy sector is two-pronged. The zone is targeting investors in renewable manufacturing as well as the production and transfer of green power.

The ELIDZ facilitates the location of renewable energy projects in suitable areas in the industrial park with favourable wind and solar characteristics, thereby supporting the ability of other tenants to get access to renewable energy.

Contact details

Attractive to investors

Key added-value features include the IDZ’s green credentials with good ICT connectivity and logistical infrastructure (port, airport, roads) supported by the availability of affordable labour and a strong manufacturing base. In addition, the ELIDZ offers:

• Access to secure and stable green energy

• Cost-effective, reliable, sustainable and high-quality water supply

• Supportive cluster to feed into business processes

• Strong green ambitions and a range of shared services are offered to investors (ICT, clinic, Science and Technology Park)

• A modern customised space in a technology-enabled zone ready for future smart requirements

• Fast connectivity

• Powered by renewable energy

The ELIDZ Renewable Energy Sector is a thriving ecosystem of innovation, collaboration and sustainability. Businesses have access to state-of-the-art infrastructure and cutting-edge technology, providing a conducive environment for renewable energy manufacturing and production. Additionally, the ELIDZ’s strategic location and access to key markets make it an attractive destination for investors seeking to capitalise on the growing demand for renewable energy solutions.

Central to the ELIDZ’s commitment to sustainability is its relentless pursuit of green hydrogen. The ELIDZ’s Renewable Energy Sector is spearheading efforts to harness the power of green hydrogen, driving innovation and progress in the field of renewable energy.

By choosing the ELIDZ as a potential partner in sustainability, your business is becoming part of a global movement towards a greener and more sustainable world. ■

Sector Manager, Renewable Energy & ICT: Dr Chris Ettmayr

Tel: +27 43 702 8214

Email: chris@elidz.co.za

Website: www.elidz.co.za/renewable-energy/

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:

Sharon Angus-Leppan

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

Distribution and circulation manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

The 2024 edition of Eastern Cape Business is the 17th 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.

While the Eastern Cape has deservedly earned the title of South Africa’s wind energy province, there are other developments taking place in East London, the Coega SEZ and near Humansdorp that promise to give new meaning to new energy. Vanadium batteries, green ammonia and green hydrogen are among the aspects that form part of the Special Feature on energy that appears in this journal.

The centenary of the massively important automotive industry is celebrated with reference to Ford Motor Company’s start in the “Auto City” of Port Elizabeth, as it was known, in 1924. The province’s two Special Economic Zones are attracting investors and exports are on an upward trajectory, which will be helped by upgrades of the Eastern Cape’s three ports.

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 newest chamber, the Maritime Business Chamber, which has its headquarters a short distance up the hill from the Port of Gqeberha, makes its second appearance in the journal.

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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Global Africa Network Media (Pty) Ltd

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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.

PHOTO CREDITS | Bushveld Minerals; Cheeba Training; michael clarke, Wikimedia Commons; FoodForward SA; Gamtoos Water; GIZ, MTN; Sibuya Rhino Foundation; Stellantis; Transnet National Ports Authority; Vysotsky, Wikimedia Commons.

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.

Your business-friendly investment destination of choice

The InvestSA One Stop Shop Eastern Cape serves as a focal point of contact for all investor inquiries in the Eastern Cape.

It provides a variety of support services to both existing and new investors through a streamlined service offering ranging from investment facilitation, investment unblocking and business regulatory applications.

To effectively deliver on its mandate, it has formed part nerships with regulatory bodies and other government departments. Some of the participating partners include the Companies and Intellectual Property Commission for company registrations, South African Revenue Service for customs, Department of Home Affairs for visa applications, Eskom for special power-grid applications, the National Regulator for Compulsory Specifications, Environmental Affairs Department for Environmental Impact Assessments and the ECDC for export and trade promotion and investment facilitation.

The One Stop Shop is committed to providing integrated investment promotion services to help investors throughout the investment value chain, and to make the process as seamless as possible. These key services include:

• Information services: Information and network opportunities on trade and investment in the Eastern Cape, South Africa and Africa.

• Intellectual property: Includes intellectual property protection, applications for national and local incentives, applications for work visas.

• Regulatory requirements: Temporary and permanent residence, registration for tax purposes, and any other requirements (licences, authorisations, registrations, etc) to do business in the Eastern Cape.

• Lead tracking: A lead-tracking system to ensure that prospective investors receive quality services until their respective projects reach the point of commercialisation.

• Pre-approval information: The provision of pre-approval information to investors (ie market data, costs, incentives, project approval, visits, local partners, etc).

• Facilitation services: The provision of facilitation services to investors (ie permits, approvals, import equipment and raw materials, work permits).

Enquiries can be directed to https://www.ecdc.co.za/investsa-ec-oss

A REGIONAL OVERVIEW OF

EASTERN CAPE PROVINCE

By John Young

Ford Motor Company started making cars in what was Port Elizabeth (now Gqeberha) in 1924. That company remains a pillar of the automotive sector in a province that exports more than half the cars that South Africa makes.

The other long-time original equipment manufacturers (OEMs) are Volkswagen South Africa, Mercedes-Benz South Africa and Isuzu, which started life as General Motors in 1926, becoming the city’s second auto manufacturer.

VWSA began as SAMAD in Kariega (Uitenhage) in 1949 and the first East London assembly undertaken by Mercedes-Benz South Africa started in 1954. These marques have recently been joined by Chinese OEM FAW and the Stellantis Group, which will start assembling the Peugeot Landtrek at the Coega SEZ in 2026.

The shift to renewable energy which is happening across the world can be seen very clearly on the hills of the Eastern Cape, which has rapidly earned itself the tile of the “Wind Province”.

Other forms of green power and battery storage are being actively explored, and this is the subject of a Special Feature elsewhere in this journal.

The many new wind-power plants that the province now hosts bring power, but they also bring employment and opportunities for local communities where the wind farms are sited.

The province’s most recent wind-power investment will see three 110MW facilities constructed in the Kouga Local Municipality. The Impofu wind farms will supply energy to Sasol and Air Liquide in Mpumalanga. Enel Green Power and Red Cap are building the R9-billion project after a lengthy environmental and public engagement process with

about 60 landowners, including the Reebok Rant Workers Trust, a dairy operation near Oyster Bay.

The automotive industry is also increasingly playing a role in the energy transition, both in terms of powering plants’ operations but also in producing electric vehicles. East London-based Mercedes-Benz South Africa (MBSA) is working to reduce its carbon footprint at its manufacturing plant. The second phase of the company’s solar PV plan will see 22 847 panels bringing the combined total up to 26 539, an array capable of providing 14.6MW. Over the course of a year, this installation should contribute about 20% of the plant’s consumption.

Volkswagen has installed 3 136 solar photovoltaic panels at its Kariega plant which 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 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%.

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.

The Impofu project sod-turning took place in March 2024.

PHOTO: Enel Green Power

The Eastern Cape’s strategic location makes it ideal for logistics. Rhenus Logistics has expanded its facilities in Port Elizabeth and built a new warehouse in East London, pictured.

Infrastructure

The province’s two Special Economic Zones (SEZs) have been the focus of investment to prepare them to host an array of enterprises. Dedicated sections of the SEZs provide for a cluster approach, something which automotive suppliers and logistics firms have taken advantage of.

In the SOPA, Premier Mabuyane reported that the East London Industrial Development Zone (ELIDZ) exported over R3-billion worth of products in a 12-month period. In the five years to 2024, the ELIDZ signed up 24 investors with an investment value of R5.7-billion, primarily in the automotive, agroprocessing and general manufacturing sectors, but he noted that renewable energy sector investment is rising fast.

Within the Coega SEZ, just north of the city of Gqeberha, the Port of Ngqura 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.

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.

In addition, Premier Mabuyane revealed in the

2024 SOPA what he expects will be the priorities of the next provincial administration, the seventh since democracy was ushered in in 1994. The Eastern Cape is one of the provinces in South Africa where the African National Congress (ANC) is most confident of returning as the governing party.

The Premier listed the priorities as follows: biofuels, cannabis, oceans economy, Bhisho precinct, Bulembu airport for cargo and liquified natural gas.

With three ports and two large airports, the Eastern Cape is well suited to logistics activity.

The massive Msikaba Bridge under construction in the OR Tambo District is on track for completion in 2025. This will transform travel in what used to be the Transkei and open up the Wild Coast for tourism. Work on the Mtentu Bridge in the Alfred Nzo District resumed in December 2023 and is scheduled for completion in 2027. Seven of the roads that lead to these bridges will be upgraded from gravel to tar as part of the broader project.

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 R71million 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

Helping companies export to new markets

The Trade Promotion Programme of the ECDC offers a wide range of support services to exporters.

The Eastern Cape Development Corporation (ECDC) Trade Promotion Programme is a comprehensive initiative that aims to enhance the export capabilities of firms in the province. The programme offers several key initiatives, including the Exporter Development Programme, Export Incentives Programme and Market Assistance Scheme. These initiatives provide exporters and potential exporters with knowledge and skills to take advantage of new and more complex export opportunities.

The Exporter Development Programme focuses on providing training and support to exporters. It covers topics such as export payment methods, export finance, insurance, export procedures, commercial terms, terms of international trade, transportation logistics, quality control measures, export packaging, pricing, business expansion and contract negotiation. Assistance with marketing and mentorship is also provided. Since its inception in 2017, the programme has helped 58 companies.

The Export Incentives Programme is specifically designed to support Micro Small and Medium Enterprises (MSMEs) by providing non-financial support to overcome cultural, regulatory, product safety and standards, intellectual property protection, logistical barriers and financial barriers to entry into new markets.

The Market Assistance Scheme is another initiative under the ECDC Trade Promotion Programme, which promotes new market access initiatives. In the 2023/24 financial year, the ECDC proudly supported 207 businesses to attend trade exhibitions across various countries. The ECDC is committed to providing effective and personalised assistance to businesses of all sizes.

The ECDC Trade Promotion Programme is helping to create a vibrant and competitive business environment that supports growth and innovation by providing various initiatives that equip firms with knowledge and skills to expand their market opportunities globally.

Enquiries can be directed to Ms Linda Lubengu at llubengu@ecdc.co.za

Symposium

The biennial Eastern Cape Export Symposium helps grow the province’s contribution to global markets, offering an excellent opportunity for industry roleplayers to come together, connect and achieve two primary objectives:

• promoting exports and supply networks by providing access to markets, resources and current research, and synergising resources and

• focusing on a wide range of export-related role-players that optimise export efficiency and economic growth.

The export symposium features an exhibition, a plenary, workshops, match-making and networking opportunities that help businesses achieve their export goals. Participants attend to showcase their products and services, engage with potential clients and partners, and gain valuable insights from industry experts.

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.

Tourism

Tourism is one of the sectors that was hit hardest by Covid-19.

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. Two big new golf events have put the spotlight on the province’s tourism offering, the SDC Championship at St Francis Links (jointly hosted by South Africa’s Sunshine Tour with the DP World Tour) and the Nelson Mandela Bay Championship, an official DP World Challenge Tour event. ■

Andreas Brand, CEO of Mercedes-Benz South Africa, inspects the company’s rooftop solar installation.

PHOTO: Mercedes-Benz

MESSAGE FR OM REGIONAL MANAGER

The Industrial Development Corporation’s (IDC) Eastern Cape office has a primary focus on supporting South Africa’s cornerstone sectors, having a strong focus on supporting local automotive operations, agro-processing including forestry, as well as the plastic and textiles manufacturing sectors within the province. The office has a presence across the vast province, having offices in Gqeberha and East London and forms part of the IDC's larger national footprint. The IDC contributed just under R1 billion in approvals in the Eastern Cape in the IDC’s last audited results.

Regional Drivers & Opportunities

The IDC has played the catalytic funder role in green energy, derisking the renewable energy space and funding some of the early wind farm projects in the country. This has resulted in significant investments by the IDC in the wind renewable space in the Eastern Cape, with the intent to take advantage of the abundant wind resources in the province to assist in addressing South Africa’s energy challenges by funding further green energy projects.

A fundamental strategy for our regional office is being a key role player within the automotive sector and its value chain, encouraging and developing localisation of automotive component manufacturing. IDC has supported catalytic projects in the automotive sector and through our support has developed Small and Medium Enterprises (SMEs) which has further embedded localisation in the automotive value chain.

The Eastern Cape has a diverse climate and landscape which ranges from deserts to lush forests of the Tsitsikamma and a sizable coastline. As a regional office, we have a vested interest in developing the agro-processing value chain and expanding existing forestry plantations and timber processing plants.

The Eastern Cape is the second largest producer of citrus fruit in the country. South Africa is known for contributing 50% of the world’s mohair, most of which is produced within our province. Key agricultural sector drivers for the region lie within deciduous fruits, pineapples, chicory, dairy, goats, and sheep.

Three harbours within the province give it an added economic advantage as they facilitate inbound and outbound logistics, enabling international trade. The further harbour developments within the industrial

East London

node of the Coega SEZ and East London SEZ are set to give this province an added advantage in the logistics and trading space.

Supporting Communities

The Eastern Cape office also played an instrumental role in assisting businesses that were impacted by the devastating floods that impacted the Eastern Cape and KwaZulu Natal Through the IDC’s special flood relief fund, IDC funded two businesses in the Port St Johns area, a river sand mining business and a 4 star resort Through partnering with us, both organisations were able to repair building structures and replace equipment and furniture damaged by the floods.

Our office is centred on growing our regional economy and financing entrepreneurs which reaches communities. At the heart of our operation is our commitment to assisting those in our communities who are marginalised and need a helping hand which includes both CSI initiatives and structuring communities into transactions. On the humanitarian front, we have teamed up with our Corporate Social Investment (CSI) unit in support of communities throughout the Eastern Cape which included relief funding for the damage from flooding.

We have partnered with Ikhala TVET College’s Queen Nonesi Campus, building a computer lab and with the Ingwe TVET College campus to construct a simulation room for the college’s Maluti campus, located in Matatiele.

These are just a few of our CSI projects in addition to several strategic partnerships with Non-Profit Organisations, with whom we have managed to build and upgrade schools and provide basic needs to name a few.

2nd Floor Block B, Chesswood Office Park, Winkley Street, Berea. Tel: 043 721 0733/4 Email: eceast@idc.co.za

Gqeberha

Southern Life Gardens, Block A ( Ground), 70 2nd Avenue

Newton Park. Tel: 041 363 1640 Email: ecwest@idc.co.za

https://www.idc.co.za/our-regions/eastern-cape/

Into the Future

Our focus as a regional office is to continue to develop and build based on diverse and economically viable opportunities within the Eastern Cape. We intend to fully support SMEs through the various tailored funding instruments at our disposal and contribute towards growing the Eastern Cape’s economy.

Businesses not only in our province but throughout the entire country, have suffered because of electricity supply constraints. One of our key offerings is being able to assist SMEs to alleviate the impact of load shedding through our competitive energy solution funds which will provide an alternative energy supply and ensure that their operations continue running with minimal impact on production.

We remain committed to building and investing in strategic business partnerships, forging innovative collaborations with our various stakeholders, and supporting the growth of the Eastern Cape province’s economy.

Case Study

Carbo Ferrum is a black-owned steel fabrication company based in East London, in the Mdantsane Industrial area. The company was established in 2017 and its primary business is the manufacturing of galvanized monopoles and steel poles, plasma and laser cutting, sub-station steelwork as well as general and structural steelwork with a focus on the electrical transmission sector.

Through partnering with the IDC and acquiring new machinery, Carbo Ferrum is now able to reduce its outsourced activities and increase its output capacity, growing it operation and creating jobs within the community of Mdantsane.

Kingsley De ll-Robertson Eastern Cape Regional Manager

The renewable energy landscape is expanding

The Eastern Cape is the site of several exciting and innovative projects such as the East London plant pictured here, which is producing vanadium battery electrolyte.

By John Young

The Humansdorp area supplies a significant portion of the dairy products that South Africa consumes. East London is known as the port that exports expensive German sedans. The mouth of the Coega River is where 60 000 tons of salt are produced every year.

In 2024 and beyond, all of these statements remain true but for each of these Eastern Cape locations there is now an additional economic bounty that is going to transform the energy landscape of the province and potentially, the country.

All of these sites are hosting exciting projects in the renewable energy field. The Eastern Cape has already established itself as the “Wind Power Province” but progress in manufacturing, green hydrogen and battery storage is opening new opportunities.

The greater Humansdorp Jeffreys Bay area hosts no fewer than 13 wind farms so the announcement in March 2024 that Nordex Energy South Africa is to start making concrete tower sections at a manufacturing facility in Humansdorp makes economic sense.

Up to 300 jobs will be created and work at the tower factory was expected to start in Q1 2024

with the first set of turbines due to be installed in the second half of the year. Having invested in the Eastern Cape since 2013, Nordex Energy South Africa boasts a significant footprint in the province, including a warehouse in Gqeberha and 573MW of installed capacity across five wind-power plants.

Promoting renewables

Both the Coega Special Economic Zone (SEZ), which is located at the Port of Ngqura just outside the city of Gqeberha, and the East London Industrial Development Zone (ELIDZ) have dedicated zones within their precincts for renewable energy projects.

The ELIDZ has been recognised by Global Africa Eco-Parks, a United Nations Industrial Development Organization (UNIDO) initiative, for its environmental stewardship. The ELIDZ is targeting investors both in renewable manufacturing as well as the production and transfer of green power.

The Coega Development Corporation (CDC) has published a Coega SEZ Energy Strategy that seeks to develop solar parks and other forms of alternative energy generation methods. It aims

to position itself as an ideal export destination for products such as green ammonia.

The Coega SEZ has been chosen by Hive Hydrogen SA as the location of a Green Hydrogen project which will be fully operational by 2026. The project will see a green ammonia plant constructed, valued at approximately $4.6-billion. The main development partners are BuiltAfrica and Hive Energy of the UK who have formed Hive Hydrogen SA but various other partners are involved.

Local salt manufacturer Cerebos, who own the famous salt works on the Coega River, will supply desalinated water to the project. The hydrogen 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.

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.

Batteries

Within national government’s Integrated Resource Plan (IRP) there is a stipulation for battery storage.

South Africa has so far issued a handful of utilityscale tenders which include battery storage. Ambri, a US company, has been contracted to supply a 300MW/1 200MWh battery system for a combined wind and solar facility in the Eastern Cape. The local company is Earth & Wire. The first batteries for this project are expected to be delivered in the first half of 2024 with the installation being completed in 2026. The energy-storage facility itself will have the potential to generate an estimated 700MW of wind and 600MW of solar power.

The first project to reach financial close under the Risk Mitigation Independent Power Producer Procurement Programme (RMI4P) was for a 540MW/1.1GWh project in the Northern Cape. Eskom has embarked on a 500MW Battery Energy Storage System (BESS) project and has begun to award tenders.

Through its partnership with the Master Artisans Academy of South Africa (MAASA), the ELIDZ hosts a Renewable Energy Centre of Excellence at its Science and Technology Park.

The Independent Power Producers Projects Office within the Department of Mineral Resources and Energy released a Request for Proposals (RFP) for energy storage whereby bidders had to submit their proposals by early June 2023. This was for 513MW in the first phase, and when complemented by wind and solar projects, will provide baseload energy.

Lithium and vanadium are two preferred solutions for new-generation batteries. Australia, Chile and China are the world’s top producers of lithium, with Argentina and Brazil making up the top five.

South Africa is in third place in terms of vanadium production, but China makes more than twice as much as South Africa and the second and fourthplaced Russia and Brazil combined.

Bushveld Minerals in Limpopo describes itself as being “one of only three operating primary vanadium producers” in the world. Glencore and Marula Mining are the other South African companies that mine vanadium.

But Bushveld Minerals has gone beyond mining. Its subsidiary, Bushveld Energy, is to produce vanadium battery electrolyte at its new Belco facility in East London. The aim is ultimately to produce battery systems. The plant was built with the support of the Industrial Development Corporation (IDC), which is well placed to assist in the creation of a value chain for vanadium batteries in South Africa. If Bushveld Energy reaches its target of eight-million litres, it will be the largest plant of its kind outside of China. ■

PHOTO: ELIDZ

A century of automotive manufacturing

The Eastern Cape celebrated an important milestone in 2024 and welcomed a new motor marque to its OEM stable. Investment is happening and employment numbers are good.

The Minister of Trade, Industry and Competition, Ebrahim Patel, and Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, have signed a Memorandum of Understanding.

The year 2024 marked a significant milestone for the Eastern Cape’s motor industry. Not only did the year signify a century since Ford Motor Company’s first model was produced, but the celebration followed closely on the 2023 announcement by Stellantis that it would be making a big investment into the province. Stellantis makes and distributes 14 automotive brands, from Alfa Romeo to Maserati.

Stellantis has confirmed its intention to develop a R3-billion greenfield manufacturing facility in the Coega SEZ with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic). This forms part of the company’s strategy for the Middle East, South Africa and Sub-Saharan Africa, where it plans to grow market share above 12% by 2030.

The first vehicles are expected to start rolling off the assembly line in early 2026 and the CEO of the Coega Development Corporation (CDC) has given the province’s newest original equipment manufacturer (OEM) a warm welcome. Khwezi Tiya went on to say that “an anticipated 1 800 jobs will be created in the metro and about 2 097 for the Eastern Cape Province”.

A century on, Ford continues to invest in its Eastern Cape facility. The company now makes engines at its Struandale plant in Gqeberha where R600-million is allocated to making the 3.0L V6 turbo-diesel engine for the Ford Ranger, which is assembled in Tshwane.

Ford has also 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 vehicles through the Port of Gqeberha.

In a five-year period, all of the OEMs with long histories in the province, MercedesBenz South Africa, Volkswagen Group Africa, Isuzu and Ford, collectively invested more than R22-billion in plant expansions and preparations for new models. Chinese group FAW is the other large OEM active in the province.

Major makers

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

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 two-million Polos and Polo Vivos. This milestone was achieved in December 2022 when a lefthand-drive Ascot Grey VW Polo, set to be shipped to Germany, rolled off the production line. More than 80% of the plant’s vehicles are exported.

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.

MBSA has also begun the rapid expansion of its electric vehicle (EV) charging station infrastructure. Phase 1, which is being rolled out by Chargify, will see R15-million invested in 67 stations in 2024 to be followed by a further R25-million set aside to increase the number of stations to 126 nationally.

The partnership with Chargify is part of MBSA’s expansion of its Enterprise and Supplier Development (ESD) programme. In 2021, MBSA announced a R13-billion investment to accommodate the production of the latest C-Class vehicle. This included three new assembly lines, a new body shop and more advanced robots.

Much of this is happening in the East London Industrial Development Zone (ELIDZ), which has made a commitment to localising the 2nd and 3rd-tier automotive components that are not currently in South Africa. Both the ELIDZ and the Coega Special Economic Zone have areas dedicated to automotive and automotive components manufacture.

Isuzu SA has completed its consolidation project, with truck and bakkie manufacturing now taking place at its new headquarters in Struandale, Gqeberha. Isuzu launched the seventh-generation D-MAX bakkie in 2022, 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.

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 at its New Brighton facility in Port Elizabeth.

An Aftermarket Programme to assist independent mechanics and panelbeaters to get better access to the budgets spent annually by the insurance industry, has identified 73 panel beaters in its first year of operation. The intention is to find up

to 300 such businesses to link them to the automotive value chain, which includes the insurance industry, estimated to be in the region of R40-billion, and the national government automotive fleet (R100million). The scheme is run by the Automotive Industry Development Centre – Eastern Cape (AIDC-EC) and offers a three-year programme for participants.

The Provincial Government of the Eastern Cape 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. The most recent announcement stated that 13 EV charging stations would be established in 2024. ■

The Kariega plant of Volkswagen Group Africa has gone past the two-million mark in Polo and Polo Vivo production.

The AIDC-EC story

The AIDC-EC is an Eastern Cape Provincial Government entity focused on assisting the automotive sector in the Eastern Cape to remain viable and competitive.

Engagements by key stakeholders in the automotive sector are paramount for the AIDC-EC towards achieving its mandate. The agency values partnerships, collaborations and coordination and strives for the consolidation of collective efforts for the growth of the automotive sector in the Eastern Cape.

Through its role as the Secretariat of the Provincial Automotive Advisory Council (PAAC) for the Eastern Cape, chaired by MEC for Economic Affairs, Honourable Mlungisi Mvoko, the AIDC-EC is at the pulse of facilitation and coordination of effective communication among council members. The council comprises several industry bodies, government representatives, original equipment manufacturers (OEMs) and suppliers.

Thabo Shenxane, Chief Executive Officer

PHOTO: Motus ISUZU

PHOTO: Mercedes-Benz South Africa

The automotive industry leads the Eastern Cape manufacturing sector. THE AIDC-EC OFFERS:

• Bursaries for engineering qualifications

• Support for the aftermarket sector

• Component supplier competitiveness

• Eastern Cape implementation of SAAM 2035

• Promotion of e-mobility (electric vehicles, EV)

150 of the 430 component suppliers

46.5% of South Africa’s light vehicle production

Source: NAACAM Automotive Export Manual 2023

53.5% of South Africa’s light vehicle exports

The Eastern Cape Province hosts three ports and two Special Economic Zones (SEZ)

2022/23 Auto Engagements –Outcomes

Auto Franchise Expo and Aftermarket Service

3-4 October 2022

Auto Sector Aftermarket Programme (R12-million over three years)

Automotive Supplier

B2B Indaba

17 October 2022

Component Development Supplier Fund

EV Roundtable Indaba

19 February 2023

Public electric vehicle charging stations (R7-million)

EV skills training with OEMs (R4-million)

Skills development efforts Auto Engineering Skills Indaba and Career Expo 2022

Objectives:

• Addressing SAAM 2035 Pillar 6: “Industry Technology and Associated Skills Development”

• Establishing a platform for discussions and solutions to enhance engineering skills in the Eastern Cape

• Fostering a productive partnership between industry and higher education institutions

Outcomes:

• Formulate a comprehensive, province-wide five-year master plan to foster engineering and automotive management skills across all tertiary institutions, aligned with SAAM 2035’s Pillar 6

• Generating enthusiasm for automotive engineering and entrepreneurship among young learners and professionals in the region

Performance highlights Successful

• Implementation of incubation of learners in e-mobility: 33

• Annual performance plan targets attained: 85%

• Quality certification retained: ISO9001

• Aftermarket SMMEs supported: 10

• Number of employees impacted via worldclass manufacturing cost improvements at contracted suppliers: 4 170

• Skilled employees trained towards worldclass manufacturing: 813

• Bursaries awarded for digital skills in engineering: 42

• Consecutive unqualified audit: 19

• Fraud and ethics issues reported: 0

PHOTO: Volkswagen Africa

eNtsa’s newly launched Engagement and Innovation facility

An Engagement and Innovation facility has been launched. The unit hosts advanced testing equipment.

The new facility is located at Mandela University’s Ocean Sciences Campus and the advanced testing equipment allows for environmental testing and includes corrosion testing chambers, a collaborative robot testbed, 3D scanning and the capacity to host new expansions to support future industry needs.

One special piece of equipment is the highvoltage training system, pictured below. This system emulates the operation of an electric vehicle, mirroring its functionality. It was acquired towards the end of 2023. It is the only machine of its kind in the Southern Africa region and was funded by the AIDC-EC.

The main reason for purchasing this machine is to align with the forthcoming electric vehicle transition in the province. The uYilo eMobility Programme located at Nelson Mandela University will use this system to deliver comprehensive training to various stakeholders in e-mobility.

These stakeholders encompass students, lecturers (both in tertiary institutions and TVET colleges) and industry professionals.

FUTURE AIDC-EC WORK

The AIDC-EC and the Eastern Cape Government, through the involvement of both the Premier and MEC Mvoko, has done a huge amount of lobbying with the relevant national departments in connection with the anticipated White Paper and provincial support for the automotive industry in the EV era.

The Eastern Cape’s most important issues relate to retaining existing investors such as OEMs and component suppliers during this transition phase and attracting new investors into the province.

AIDC-EC current projects:

• On behalf of the Provincial Government, investing in 13 EV charging stations around the province to augment industry efforts.

• In partnership with Mercedes-Benz SA Learning Academy, a project to train youth in high voltage/ battery safety: 48 apprentices.

• In partnership with the Nelson Mandela University uYilo programme, a project to enhance its EV capacity-building programmes.

Africa’s economic boom, automotive opportunity Africa is home to six of the world’s fastest-growing economies, with consumer spending rising by 10% annually and projected to have the largest global workforce by 2035.

The African Continental Free Trade Area (AfCFTA) will create a single integrated market encompassing a population of over 1.3-billion and a combined GDP of $3.4-trillion. Forecasts predict that new light vehicle sales in Africa will reach 1.8-million units in 2027, double the volume of 2019. By developing regional value chains, vehicle sales across Africa could reach five-million units annually. (Source: Afreximbank)

African vehicle production hubs are in Algeria, Morocco, Nigeria, Ghana, Kenya, Tunisia, Uganda and South Africa. African vehicle production increased by 13% in 2022, with South Africa as the leading vehicle producer with an increase of 11.8%, with 555 889 units, exceeding the global year-on-year increase in global vehicle production of 6.0%.

Africa’s automotive market (excluding South Africa) currently represents only 0.5% (561 100 units) of the global market. South Africa contributes 0.6% to global automotive production. Over the medium term, the African automotive market is expected to grow rapidly due to supportive government incentives and increasing urbanisation. Mordor Intelligence predicts that the African automotive market will grow from 1 325 890 units in 2023 to 1 777 690 by 2028, at a CAGR of 6.04%.

Mordor valued the industry at $30.4-billion in 2021 and projects it will reach $42-billion by 2027. ■

The high-voltage training system is an advanced piece of equipment PHOTO:

Nelson Mandela Bay Business Chamber

The Nelson Mandela Bay Business Chamber

A catalyst for economic growth in the region.

Nelson Mandela Bay Business Chamber

The Nelson Mandela Bay Business Chamber

catalyst for economic growth in the region.

A catalyst for economic growth in the region.

The heartbeat of business success in the region.

A catalyst for economic growth in the region.

TTTThe Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay. It is one of the largest business associations in the Eastern Cape, with a membership of more 700 businesses employing over 100 000 people in a diverse array sectors.

he Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay. It is one of the largest business

he Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses

An eighth task team, called Industry 4.0, begins its work in 2019 to prepare local businesses for the digital shift.

than 700 businesses employing over 100 000 people in a diverse array of sectors.

he Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay.

An eighth task team, called Industry 4.0, begins its work in 2019 to prepare local businesses for the digital shift.

It is one of the largest business associations in the Eastern Cape, with a membership of more than 700 businesses employing

The Nelson Mandela Bay Business Chamber is a leading catalyst for economic development, through its strategic Triple Helix model of collaboration between industry, academia and government, which serves as the foundation of creating a competitive Nelson Mandela Bay.

Cape, with a membership of more than 700 businesses employing over 100 000 people in a diverse array of sectors.

The Nelson Mandela Bay Business Chamber is a leading catalyst economic development, through its strategic Triple Helix model collaboration between industry, academia and government, which serves as the foundation of creating a competitive Nelson Mandela Bay. The Business Chamber has been the heartbeat of business success region for over 150 years. The Business Chamber is driven by a of dedicated staff and volunteers, lobbying on issues affecting the of doing business and companies’ sustainability. The organisation builds international relations to form a vital link between business owners and international markets.

The Business Chamber has been the heartbeat of business success in the region for over 150 years. The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The organisation also builds international relations to form a vital link between business owners and international markets.

The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The organisation also builds international relations to form a vital link between business owners and international markets.

Vision

• Geographical clusters

• Task teams

Enterprise Development and Exporter Development

• Innovative interventions to address specific issues relating to energy, water, etc

• Renewable energy cluster

• Entrepreneurship Desk and various MSME initiatives

Enterprise Development and Exporter Development

• Investors forum

• Trade and Investment Desk

Vision

Strategic priorities

Nomkhita Mona, Chief Executive Officer.

To be a leading catalyst for economic development in Nelson Mandela Bay.

Mission

WVision a leading catalyst for economic development in Nelson Mandela Bay.

Mission

To be a leading catalyst for economic development throughout Nelson Mandela Bay.

Mission

By influencing the factors and key stakeholders that create a competitive enabling business environment.

ith around 700 member businesses and over 155 years of rich heritage, the Nelson Mandela Bay Business Chamber remains one of the most trusted, respected and authoritative voices on matters relating to local business and the economy.

To be a leading catalyst for economic development throughout Nelson Mandela Bay.

By influencing the factors and key stakeholders that create a competitive enabling business environment.

Task Teams

Mission

Task teams

influencing the factors and key stakeholders that create a competitive enabling business environment.

The environment we operate in is changing at a rapid pace and requires ongoing agility to ensure that we robustly respond to issues that impact upon the sustainability of local businesses, the functionality of the operating environment, leverage economic growth opportunities, while simultaneously providing value-adding services to our members.

The Nelson Mandela Bay Business Chamber has established a structure of seven task teams to facilitate the ease of doing business. The task teams are:

By influencing the factors and key stakeholders that create a competitive enabling business environment.

The Nelson Mandela Bay Business Chamber has established a structure of three task teams divided into sub-groups, to facilitate the ease of doing business. The task teams are:

• Infrastructure Task Team

• Water Task Team

For this reason, we have adopted a more activist, collaborative and action-orientated approach in pursuing our vision of being the leading catalyst for Nelson Mandela Bay to retain and attract business.

Task Teams

Task teams

- Roads and Stormwater Sub-group

• Roads and Storm Water Task Team

Vision

- Water Sub-group

• SME Task Team

The Nelson Mandela Bay Business Chamber has established a structure of three task teams divided into sub-groups, to facilitate the ease of doing business. The task teams are:

- Electricity Sub-group

• Electricity and Energy Task Team

Nelson Mandela Bay Business Chamber has established a structure seven task teams to facilitate the ease of doing business. The task teams are:

Be a leading catalyst for Nelson Mandela Bay to retain and attract business.

• SMME Task Team

• Transport and Logistics Task Team

• Special Projects Task Team

Mission

Infrastructure Task Team

• Metro Collaboration Task Team

Water Task Team

• Trade and Investment Task Team

- Roads and Stormwater Sub-group

Enterprise Development and Exporter Development

Roads and Storm Water Task Team

- Water Sub-group

SME Task Team

- Electricity Sub-group

• Local Economy Reinvention Think Tank

Nomkhita Mona, Chief Executive Officer.

RESURGENCE: By getting the city working again through influencing the Municipality and other key stakeholders to take decisions which best serve the interests of Nelson Mandela Bay.

enhance and grow small businesses. In 2018 the Business Chamber successfully hosted the fifth phase of the Enterprise Development Programme, from which SMEs graduated in March 2019.

The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that enhance and grow small businesses. In 2018 the Business Chamber successfully hosted the fifth phase of the Enterprise Development Programme, with SMEs set to graduate in March 2019. Over 120 entrepreneurs have benefited from this programme. Meanwhile, the pilot phase of the Business Chamber’s Exporter Development Programme concluded at the end of 2018, with 10 companies finishing this programme in its first year. The programme is aimed at empowering SMEs to position themselves as emerging exporters.

LEAD: Through our Investors Forum, our Local Economy Reinvention Think Tank and Trade and Investment Desk we want to turn the Metro into a world-class Port City and investment destination.

enhance and grow small businesses. In 2018 the Business Chamber successfully hosted the fifth phase of the Enterprise Development Programme, from which SMEs graduated in March 2019.

Events

Collaborate with key stakeholders to develop solutions which foster an enabling environment and promote sustainable economic developments through various Chamber action arms such as but not limited to:

Electricity and Energy Task Team

SMME Task Team

Transport and Logistics Task Team

Special Projects Task Team

Metro Collaboration Task Team

Trade and Investment Task Team

Enterprise Development and Exporter Development

The Nelson Mandela Bay Business Chamber Enterprise Develop-

CONNECT: Our stakeholders and members through targeted highlevel linkages such as stakeholder engagements and flagship events.

GROW: Our membership engagement and value by creating a targeted value proposition for members.

Over 120 entrepreneurs have benefited from this programme. Meanwhile, the pilot phase of the Business Chamber’s Exporter Development Programme for 2018/2019 had 10 participants. That figure has grown for the 2019/2020 intake with 19 participants registered. The programme is aimed at empowering SMEs to position themselves as emerging exporters.

Events

Events at the Nelson Mandela Bay Business Chamber keep business owners up to date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. Regular networking functions offer

The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that

EMPOWER: Small businesses and entrepreneurs by providing strategic direction on the value proposition for the MSME sector.

SUSTAIN: Our environment through collaborating to promote environmental conservation.

Events at the Nelson Mandela Bay Business Chamber keep business owners up to date and informed

Events at the Nelson Mandela Bay Business Chamber keep business owners up to date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. Regular networking functions offer

Events

Events at the Nelson Mandela Bay Business Chamber keep business

Task teams

The Nelson Mandela Bay Business Chamber has task teams in place to facilitate the ease of doing business. The task teams are:

• Electricity

• Water and Sanitation

• Transport and Logistics

• Safety and Security

• Property

RESURGE

We have adopted a more activist, collaborative and action-orientated approach in pursuing our vision of being the leading catalyst for Nelson Mandela Bay to retain and attract business. We have strong partnerships with Naamsa, the Presidential Climate Commission, Nacaam and Gift of the Givers, and are currently expanding this to various other stakeholders.

We have formed part of the revitalisation of the Nelson Mandela Bay Civil Society Coalition to encourage all quarters of our community to get involved in driving for a better metro to live and work in.

The City Council approved our application for the Broad Framework MOU that allows member companies to adopt a variety of municipal infrastructure that needs fixing.

We concluded a groundbreaking initiative where we signed a Memorandum of Understanding with the Municipality which allows businesses to safeguard sub-station infrastructure within their area of operations, thus ensuring minimal interruptions to power supply and continuity of business operations. Twenty sub-stations have been adopted by 12 companies thus far.

We initiated the successful implementation of a more tenable and planned 24-hour voluntary stage 5+ loadshedding schedule for qualifying industry members. To date, 40 companies participate in the initiative.

As part of the plan to mitigate some of the risks associated with the water crisis facing our city, the Chamber established an Adopt-A-School initiative and member companies are assisting with fixing faulty or damaged plumbing systems at schools that have been flagged as high water consumers. Currently over 40% of the Metro’s water is lost due to leaks of which 10% of this happens at schools. Additionally, assistance has been provided to 30 schools and clinics for the establishment of water tanks to harvest rain, while six boreholes have been installed at six schools for use by the surrounding communities.

We have established geographic clusters which bring together businesses operating in the same area to collaborate in resolving enabling environment issues. These clusters include Deal Party, Perseverance, Struandale, North End, Kariega, Beachfront, Neave/ Korsten, Fairview and the Baakens Valley. Others are currently under development.

The Nelson Mandela Bay Business Chamber runs a successful Exporter Development Programme.

In total just under 1.7-million litres of water per day was saved through the targeted Adopt-ALeak intervention in the seven zones, with an average reduction of 23% in each zone.

In 2023, our Help Desk assisted businesses in unlocking 116 red-tape/bottlenecks issues.

We have focused our Task Teams to prioritise the most pressing issues of water and sanitation, electricity, roads and transport, safety and security and property.

We recently established a Property Task Team with a key focus on facilitating more efficient land planning and development processes between major stakeholders in the property sector and the Nelson Mandela Bay Municipality as part of resurging the city.

LEAD

We reimagined our approach to Trade and Investment by launching an Investors Forum, which is focused on the issues that affect the retention of investment in the Metro.

We successfully challenged Nersa’s municipal tariff methodology which would have been deployed to determine and approve electricity tariffs to be charged by municipalities for the

CONTACT DETAILS

next two years. The High Court ruled in our favour and we were able to contain tariff increases to 15.1% for municipalities across the country.

We have established a Local Economy Revival Think Tank which has seven workstreams, with a key focus on unlocking the potential of Nelson Mandela Bay to become a diverse manufacturing and export hub of Africa.

We have established the Local Economy Reinvention Think Tank which consists of several work streams, namely the Hive Project Downstream Industries / Hydrogen Hub; Electrolyser Manufacturing Study (address global storage); Altermotive Mobility; Green Energy Hub (Climate Change SEZ); Global Gaps (medical devices, wind turbine manufacturing, end of life engines, etc); Skills Development Hub (plus skills inventory); and Enterprise Development (value chain enhancement). The group comprises outof-the-box thinkers such as engineers and innovators from various NMB companies. Its objective is to unlock the city’s untapped potential such as engineering and technical capabilities by leveraging the strengths of its two ports and highly skilled individuals.

We have established the Trade and Investment Desk whose main objective is the marketing of Nelson Mandela Bay as a mecca for investments to potential investors and foreign-based companies. The Desk further conducts research dedicated to attracting investors to the Metro; hosts inward-buyer delegations; collaborates with stakeholders for outbound trade missions to support the market expansion of local businesses; and establishes partnerships, synergies, collaborative agreements and MOUs with international organisations and business Chambers to unlock international markets for NMB businesses.

EMPOWER

The Chamber’s Enterprise Development Programme, driven through a partnership with ECDC, has benefited 218 businesses in the Eastern Cape since inception in 2014. The figure includes 27 graduates who graduated from the programme in 2022. A further 54 are currently

benefiting during the 2023/24 period. The Chamber conducted an improvement survey wherein it was found that of the 218 businesses, 162 are still operational. ECDC and NMBBC further partnered to support these 162 businesses between 2023/24 and 2025/26 through extensive networking, access to market and organisational development.

The Entrepreneurship Desk hosted three business breakfasts dedicated to connecting our MSMEs with trade and funding opportunities available in the market, while they got the opportunity to network among each other.

The supported 15 emerging exporters in 2022/23 while 17 have been inducted for the 2023/2024 period. In total, the programme has supported 65 beneficiaries.

The Enterprise Development Programme has inducted 54 MSMEs from the services sector for the 2023/24 period. These MSMEs are being equipped with financial management

A Renewable Energy Cluster has been established by the Nelson Mandela Bay Business Chamber.

and controls; market penetration; and organisational development interventions.

The Mentorship Network has uplifted and supported 75 mentees through four phases of the programme, which commenced in 2022.

GROW

We published 10 editions of ResurgeLive (formerly InfocomLIVE). Editions of the SMME Newsletter and the Clusters Newsletter were also published.

We further produced the Annual Review, which showcases the Chamber’s financials and is printed and distributed to members during the Annual General Meeting. We have also grown our following on our social media platforms: Facebook 10 167, LinkedIn 3 622, X 3 771 and Instagram 2 066.

CONNECT

Events were back in full swing with 42 in 2022. In 2023 we successfully hosted 43 events. The Chamber’s Annual Banquet, which attracts over 800 attendees, remains one of the sought-after events in the Bay’s calendar as it brings together a spectrum of industry leaders across the Metro.

The Women Empowerment Network has hosted six workshops and networking events dedicated to supporting women in business and women professionals in Nelson Mandela Bay.

The Connect Network has hosted five Emerging Professionals Social Connect, dedicated to providing a platform to emerging professionals to meet like-minded people, connect and network among each other.

Through the Professionals Social Connect, we established five young professionals Think Tanks, namely water and electricity; tourism, arts and culture; infrastructure; and safety and security. These

Think Tanks met to discuss, research and innovatively formulate proposals to tackle challenges faced by the Metro.

Nelson Business

The Nelson Business

We launched an Empowerment Network, which consists of three subnetworks namely the Women Empowerment Network, the Connect Network and the Mentorship Network. Combined, the Empowerment Network hosted two Mentorship phases that supported 39 mentees, and hosted nine events that attracted over 100 attendees to each event in 2023.

SUSTAIN

A catalyst for economic

he Nelson Mandela organisation representative in Nelson Mandela associations in than 700 businesses employing of sectors.

The Nelson Mandela organisation in Nelson Mandela It is one Cape, with a membership over 100 000 people

The Nelson Mandela for economic development, of collaboration between serves as the foundation

The Nelson Mandela for economic development, of collaboration between serves as the foundation Bay. The Business success in the region

We successfully launched a Nelson Mandela Bay Climate Change Coalition to tackle climate change challenges in the Metro.

The Business Chamber in the region for over 150 team of dedicated staff and ease of doing business and also builds international owners and international

The Business Chamber volunteers, lobbying and companies’ sustainability. tional relations to international markets.

Vision

The Presidential Climate Change Commission has appointed a team to undertake a viability study for a potential climate change SEZ for NMB.

Vision

To be a leading catalyst for

To be a leading catalyst Nelson Mandela Bay.

Mission

We established the CSR Cluster whose objective is to pool resources, as a collective, to develop a sustainable project which will have high impact on the local economy.

Mission

By influencing the factors enabling business environment.

Task Teams

Task teams

We established the Renewable Energy Cluster which has ignited significant interest from some of the Metro’s largest energy users who have now joined forces to explore alternative energy solutions to help sustain their operations. This cluster represents 25% of the Metro’s current electricity usage and could potentially reduce the stages of loadshedding for the entire Metro. ■

The Nelson Mandela of three task teams doing business. The

The Nelson Mandela Bay of seven task teams to facilitate The task teams are:

• Infrastructure Task - Roads and Stormwater

• Water Task Team

• Roads and Storm

- Water Sub-group

• SME Task Team

- Electricity Sub-group

• SMME Task Team

• Electricity and Energy

• Transport and Logistics

• Metro Collaboration

• Trade and Investment

• Special Projects Enterprise Development

The Nelson Mandela ment Programme

EASTERN CAPE BUSINESS

Nelson Mandela Bay has much to offer investors, not least when it comes to tourism infrastructure and golden beaches.

PHOTO: Sharon Mugridge from Pixabay

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

VALUE PROPOSITION

To be the “voice of business” promoting an environment for growth and sustainability through maintaining strong, proactive relations with both internal and external stakeholders, including provincial and local government, member companies, other business organisations and organised labour.

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

SERVICES AND BENEFITS TO MEMBERS

BKCOB offers the following key services:

Member listing: After joining, members are added to the website directory and receive their proud member logo to add to their signature as part of their package. Membership certificate: New members’ induction and networking functions ‒ the Chamber holds six new members’ induction and networking functions annually, and these provide a valuable informal but structured opportunity to meet a broad range of businesspeople. Letters of support: The Chamber offers letters of support to members who are in good standing for their submissions for government tenders as well as letters of introduction to members who are looking to increase the scope of their businesses.

Business Hi-Lite magazine: This glossy B2B magazine is now in-house and produced quarterly, with set themes for each edition, adding relevant topics and information/news of what’s happening. It also features Chamber activities and developments in the area.

Trade and information: Aside from trade assistance and information, the Chamber is also certified to issue Certificates of Origin for exporting companies.

Invest Buffalo City: A collaborative initiative where members can find a variety of economic information on Buffalo City. It provides a platform to attract international investors, as well as exposure for local companies.

Committees: The Chamber has a robust and effective committee structure to facilitate members’ participation and to enable the Chamber to fulfil its role as the “voice of business”. Over 120 voluntary business professionals participate.

TURNOVER

BKCOB represents over 650 member organisations that generate an estimated annual turnover of R73-billion, and that employ some 58 000 people who earn an estimated annual income of R19-billion in total.

The Chamber has built a relationship with the metro to ensure we create an enabling environment within which businesses thrive. To this end, the Chamber has created initiatives to actively attract investment into our city.

Port expansion remains one of Chamber’s main focus areas, with Transnet still the main stakeholder keeping the future of our region and investors’ interests alive. Present lobby refers to the expansion of the Container Terminal, the widening and deepening of the Port itself. As simple as they are, those three activities will in fact make Buffalo City a more desirable location.

Widening the network remains one of our guiding principles, and engaging with as many stakeholders as possible towards economic growth sits at the top of our agenda.

As we engage we focus on the collaboration rather than the exception and recently a number of MOUs have been agreed in structuring those engagements. The Chamber’s own projects succeed because we invite participation, and the Call-2-Action with related waste recycling has introduced a new way of approaching the everlasting challenge of littering and waste collection.

The Border-Kei Chamber of Business is a business support organisation serving the Border-Kei Region since 1877. Through collaborations and communication with diverse stakeholders, we will keep working to serve the interests of business in the Border-Kei region.

Tel: +27 43 743 8438

Fax: +27 43 748 1507

Chamber House, The Hub, Bonza Bay Road, Beacon Bay, East London

EXECUTIVE DIRECTOR

executive@bkcob.co.za

MARKETING & COMMUNICATIONS

Amanda Bacela | communications@bkcob.co.za

INVEST BUFFALO CITY

Wela Brukwe | ibc@bkcob.co.za

Website: www.investbuffalocity.com

Lizelle Maurice is a child of the Eastern Cape soil. She did several tertiary courses through Coronation Nursing College, Unisa, Damelin and UCT.

She owns Park Place Boutique Guest House, which has won her National Tourism Department’s Lilizela Awards in the Emerging Tourism Entrepreneur of the Year category. She was appointed as the BKCOB’s Executive Director in 2021.

Agriculture and agro-processing

Sustainable agriculture is rewarding.

Nonopa Tenza, a Matatiele farmer, was the proud first winner of the SME JumpStarter campaign in December 2023. Launched by MTN Business at the MTN SME Day event in May, the initiative aims to empower and recognise the growth and success of small and medium enterprises.

The judges found the innovative approach to sustainable agriculture followed by Kevinot Farming to be worthy of a first prize of R100 000. Tenza, who trained as an accountant before turning her side hustle into her main business, will also receive an accounting software package for a year from Sage. Seasonal workers are encouraged to start micro-enterprises with seed allocations. Kevinot Farming also assists neighbouring farmers with access to markets, shares best practices and provides mechanisation services.

Agricultural exports from the Eastern Cape contribute greatly to South Africa’s balance of trade. Recent logistical problems at ports have threatened to reduce volumes but Mediterranean Shipping Company (MSC) provided some good news when they announced that an additional direct-export cargo service from the Port of Ngqura to northern Europe was to be launched.

The value of citrus exported from the Eastern Cape rose from R4.1-billion in 2021 to R4.7-billion in 2022.

Meat exports to other Africa countries, Asia and the Middle East grew to R317-million (4.5-million tons) in 2022. Investments in woolshearing sheds in areas such as Dutywa resulted in a doubling of wool production in communal areas, from two-million tons in 2004 to 5.5-million tons in 2021.

Countries such as Tunisia, Egypt and the UAE are being approached not only to receive imports from the province, but potentially also to attract new investors in the Eastern Cape.

SECTOR INSIGHT

A Hemp Education Initiative is showing how cannabis can be used.

Commercial wool and mohair operations in the province are mainstays of the agricultural economy. 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 GraaffReinet, 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.

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.

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.

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 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.

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 second-largest cultivator of citrus.

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.

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 Eastern Cape Department of Agrarian Reform (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.

Ouma Rusks are made in Molteno and Cadbury Chocolates operates a big site across the lake from the Nelson Mandela Stadium in Gqeberha while 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.

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

SAMIL: www.samil.co.za

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

A Hemp Education Initiative has been offered to 100 Eastern Cape farmers by Training Force and Cheeba Cannabis Training.

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.

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.

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. ■

PHOTO: Cheeba

Amadlelo Agri

About Amadlelo Agri, a short preview

Amadlelo Agri is a diverse majority black-owned agribusiness established in 2004 with the main objective of transforming dormant and under-utilised land into profitable and sustainable agribusinesses.

About us

For over a decade, the collaborative efforts of Amadlelo Agri have been at the forefront of transforming the agriculture industry and unlocking the land potential in communities in the Eastern Cape and KwaZulu-Natal.

The company’s four commercial farms are responsible for milk production from 4 500 milk cows, 1 000 hectares of irrigation land and about 176 staff members.

Since 2016, the five farms have earned R1.4-billion in revenue, created 150 jobs and paid out R101-million in wages. The projects have 3 000 direct beneficiaries and 10 000 indirect beneficiaries.

It has also pioneered other milestones which are indicative of the success that Amadlelo Agri has enjoyed in South Africa’s agricultural sector:

• Amadlelo Agri’s tried-and-tested model has been replicated and is being used in five dairy enterprises which are located in rural areas and on communal land.

• A testament to its healthy relationship-building and trust ethos, Amadlelo Agri continues to leverage successful rural community partnerships, inclusive of a dynamic network of successful commercial farmers.

Amadlelo is a 72% black-owned agribusiness with a broad representation.

The journey of Amadlelo is reflected in this timeline:

2004 Amadlelo Agri is established

2006 First dairy in partnership with University of Fort Hare Ncera macadamia nursery established

Workers and beneficiaries at Ncera nursery

2008 Middledrift Dairy established in partnership with National Empowerment Fund (NEF)

Government (through DRDAR/ECRDA) issues a call for proposals for Shiloh and Keiskammahoek

2009 First macadamia hectares are planted

2010 Shiloh and Keiskammahoek dairies receive infrastructure funding from government

2011 Ncora Dairy is established in partnership with provincial government

2012 Fort Hare Piggery business is established in partnership with university and No2 Piggeries

2017 Tulsacap buys equity in Amadlelo, making it a 72% majority-owned company

2019 A five-year strategy focussing on improving efficiencies and balance sheets and diversifying the business is adopted

2021 Ongoing transformation and growth journey

Simpiwe Somdyala

The dairy industry value chains in South Africa face challenges in terms of transformation, with a few large white-owned commercial dairies concentrated in the Western Cape, Eastern Cape and KwaZulu-Natal provinces dominating the sector. Ownership of productive assets (livestock, mechanisation, etc) as well as processing continue to be untransformed.

To contribute towards transformation a group of commercial dairies in KwaZulu-Natal and Eastern Cape, black professionals and social investors came together over the years to establish Amadlelo Agri (Pty) Ltd (Amadlelo is an Nguni word referring to grazing lands or pastures). Amadlelo aims to unlock the potential of dormant and underutilised land and agricultural assets to create commercially viable agribusinesses through partnerships with government, communities and other private-sector entities.

Amadlelo is a broad-based 72% majority black owned and operated agribusiness operating five different community dairy farms and with interests/investments in macadamia, piggery and dairy processing plant Coega Food Group through the Coega Project Trust (CPT).

VISION

Development of an inclusive, prosperous future through sustainable and profitable agribusiness.

OUR STRATEGY

Nurture black talent, strengthen Amadlelo’s balance sheet and ensure consistent positive cash-generating ability of operations by building on existing dairy capabilities, income diversification, strong community relations and strategic partnerships.

STRATEGY 2024-2030

STRATEGIC PRIORITIES

PRIORITY ONE

Defend and grow the dairy business.

• Improve farm performance

• Buy leased cows

• Invest in our own farm with secure tenure

• Facilitate infrastructure improvements

• Invest in renewable energy

• Scale up and expand farm operations

PRIORITY TWO

Develop staff and retain talent.

• Compelling employee value proposition

• Effective use of the Talent Grid geared for personal development, performance improvement and succession planning

PRIORITY THREE

• Invest in value-adding, processing

• Diversify investments and income streams

PRIORITY FOUR

Improved governance.

• Strengthen governance and community participation through committees at farm level

• Ongoing review of Sharemilk Agreements

• Improved stakeholder relations

PRIORITY FIVE

Thriving and sustainable communities.

Execute shared-value approach, focus on improving local and rural black small-scale farmer procurement

Beneficiaries and reach

• 2 200ha irrigated milking platform

• 1 600 direct beneficiaries represented through various Secondary Cooperatives and Trusts

• Partnership with University of Fort Hare with a focus on graduate placement, research, innovation and technology

• 10 000 indirect beneficiaries represented through Secondary Cooperatives or Community Trusts

The combined dairies and Amadlelo group employ about 200 people on a permanent basis and produce about 20-million litres of milk per annum with the potential to increase this to 32-million by 2028.

BENEFICIARIES

NCORA DAIRY TRUST

Beneficiaries: 1 268 people

Milking platform: 687ha

SEVEN STARS DAIRY TRUST

Beneficiaries: 35 households

Milking platform: 750ha

MIDDLEDRIFT DAIRY

Beneficiaries: 65 households

Milking platform: 164ha

SHILOH DAIRY TRUST

Beneficiaries: 300 households

Milking platform: 400ha

FORT HARE DAIRY TRUST

Beneficiary: University of Fort Hare

Milking platform: 210ha

The map below illustrates the location of the dairy farms in the province.

Making an impact

Amadlelo Agri is bringing hope, jobs and food security to rural communities.

Amadlelo Agri has prioritised the creation of thriving and sustainable communities as part of its Strategic Plan 2024-2030. The plan will nurture black talent, strengthen Amadlelo’s balance sheet, build on existing dairy capability, diversify income and further enhance strong community relations.

Amadlelo Agri has built a portfolio of sustainable businesses that tackle food security

FORT HARE DAIRY TRUST

Location: Alice, Eastern Cape, on land owned by the University of Fort Hare.

Now a thriving 216ha farm, this was the first Amadlelo agricultural project which was launched in 2007. Production: 700 milk cows produce 10 000 litres of milk per day.

Beneficiaries: Amathole farmers, students, farm managers

Impact: Amathole farmers supply the project with feed, 18 staff are employed, students gain from being exposed to a working farm for research and training, farm managers are given assistance to build up their own herds.

MIDDLEDRIFT (PTY) LTD

Location: Middledrift, Eastern Cape. In partnership with the National Empowerment Fund. The business model of this operation is under review.

Production: 383 milk cows on a 165ha farm.

Beneficiaries: The dairy operation is on previously unused land belonging to 65 Middledrift beneficiaries.

Impact: 18 community members have been employed as workers which brings the total impact to 108 people in the area. The impact has been calculated on a multiplier effect of six, that is, for every worker, six more people benefit.

and bring financial rewards to approximately 3 000 direct beneficiaries and 10 000 indirect beneficiaries. Milk is currently bought by 80 SMMEs but growing small-scale farmer procurement through the shared-value approach is a priority for the future.

All of the milk produced by Amadlelo Agri farms is delivered to the dairies of Danone and Sundale.

FORT HARE PIGGERY TRUST

Location: Alice, Eastern Cape. A partnership with the University of Fort Hare and Number Two Piggeries (N2P). Production: A 1 000-sow breeding unit and a fattening unit that produces 400-500 baconers every week

Beneficiaries: University of Fort Hare and university workers

Impact: The Pig Improvement Company (PIC) has ranked the Fort Hare Piggery Trust as the top piggery of its type in the country.

SEVEN STARS TRUST

Location: Keiskammahoek, Eastern Cape. In partnership with Seven Stars Primary Producers Cooperative, the Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR).

Production: 734 cows produce milk on 750ha. A cheese-processing facility will be revived.

Beneficiaries: 36 farmers

Impact: Employs 62 local people; total impact 372 people. Ms Lutho Makase, a general farm worker, tells her story: “I became part of the Seven Stars Dairy in September 2018, I am a milker. My journey so far has been the best. Management is very kind and I work with good people. My dream is to show the nation that women can do anything by themselves. It is only in ancient times that men were the only ones to milk and look after cows. It is not the case today.”

NCORA DAIRY TRUST

Location: Ncora, Eastern Cape.

Production: 2 056 milk cows produce 29 500 litres of milk per day on 664ha

Beneficiaries: More than 1 200 members of Ncora community in 10 villages, each of which runs a co-operative

Impact: Employs 86 people. In 2022 Danone Southern Africa signed a multimillion-rand agreement with the trust which is designed to boost the regenerative agricultural model.

SHILOH DAIRY TRUST

Location: Whittlesea, Eastern Cape. In partnership with the Mayime Co-operative and the DRDAR.

Production: 900 cows produce 13 000 litres of milk per day on 400ha

Beneficiaries: 300 members of the Mayime Co-operative

Impact: Employs 27 local people; total impact 162 people.

NCERA MACADAMIA PROJECT

Location: 35km from East London, Eastern Cape. Joint venture with the Ncera community, national Department of Agriculture, Land Reform and Rural Development (DALRRD),Kula Development Facilitators, TGK Farming.

Production: 180 hectares on the 300ha farm have been planted

Beneficiaries: 10 000 community members, including support for local schools

Impact: Employs 300 local people; total impact 1 800 people. ■

yarns@samil.co.za | sales@samil.co.za | www.samil.co.za

Mohair’s prospects are looking up

SAMIL CEO Michael Brosnahan discusses how sustainability is a core value for the mohair industry, and high standards are ensuring animal welfare.

What are the main planks of SAMIL’s sustainability policy?

Our core values are honesty and integrity which translate into looking after our small piece of the world and everything and everybody in it. To this end, everything we do is questioned as to whether it will have a detrimental effect on our environment or our people, whether it be how we farm our goats on the land or how we process the material in our factories. We only use chemicals that have been certified by OEKO-TEX or an equivalent certification proving that they cause no harm to humans or animals. We have created a work environment on our farms and in our factories and offices where all employees are viewed as assets and are treated as such.

How can more jobs be created in the mohair industry?

More jobs in the mohair industry can really only be created by creating awareness of this wonderful fibre around the world. The price of mohair limits

its general use so the main end uses are highfashion items with exclusive big-name brands.

Are your farmers working on projects to protect the land?

Our farmers are not working on “projects” to protect the land – this is a constant part of everyday life on the farms. The farmer needs to protect his livelihood, not just for himself but for his children and his children’s children. Many of our Angora farmers have been farming goats on the land for more than 100 years, some into the second and third generation.

What is the Responsible Mohair Standard? Has its introduction had the desired effect?

The Responsible Mohair Standard or RMS is an international voluntary standard that addresses animal welfare on goat farms as well as managing the “chain of custody” of mohair from the certified farms through to the final products purchased by the consumer. The key values of RMS are:

• protecting animal welfare

• regenerative agriculture

• social responsibility

• traceability

Its introduction has definitely had the desired effect – mohair is once again globally desired which helps to protect the more than 30 000 people employed in the industry in South Africa.

Do you see growth prospects for mohair globally?

There are no doubt growth prospects for mohair globally as it is such a versatile fibre. We have to strike a balance, though, between the price that the farmer needs to ensure his mohair clip is an economic product to farm and the price that the consumer is prepared to pay for mohair products in the marketplace. ■

yarns@samil.co.za | sales@samil.co.za | www.samil.co.za

Manufacturing: general

SEZs are the focus of manufacturing investment.

The East London Industrial Development Zone (ELIDZ) exported products worth more than R3-billion in 2023. In the same period, the Coega Special Economic Zone attracted a variety of investments from manufacturing.

At the Coega SEZ, MEC Commercial Trailers committed R370-million to a manufacturing facility for heavy-duty commercial trailers in Q1 2023 while Atlantic Glass, a fabricator of architectural aluminium products, spent R13-million. In logistics, a vital supporting component for all manufacturing sectors, Romark Logistics invested R2.2-million.

The province’s industrial parks are the focus of support programmes by the Provincial Government. Since 2019, some R495-million has been invested in infrastructure upgrades at Dimbaza, Fort Jackon, Vulindlela, Butterworth and Komani. More than 2 000 people are employed across the parks and investors such as the Chemin Chemical Technology Incubator, based in Fort Jackson, further support the development of entrepreneurs. The Butterworth park is focussed on after-market automotive initiatives and both King Hintsa and Lovedale TVET Colleges will use the industrial parks for training and development of practical skills for students.

Montego Pet Nutrition, Graaff-Reinet’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 Gqeberha and Gately Township, East London.

Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Gqeberha. East London hosts Johnson & Johnson’s finance, operations and research and development divisions. Aspen Pharmacare’s East London and Gqeberha manufacturing facilities make a wide variety of product types including steriles, oral solid dose, liquids, semi-solids and active pharmaceutical ingredients.

www.ecdc.co.za

www.elidz.co.za

SECTOR INSIGHT

Five industrial parks have been upgraded.

Investments into the Coega SEZ include:

Chemical sector: 12 investors,combined value of

R150-million

R631.2-million

R600-million

Automotive: 12 investors:

The Eastern Cape’s Provincial Investment Conference is proving an important event on the calendar. Many of the investors who were part of the pledge of a total of R46-billion at the 2022 conference were in the manufacturing sector.

The investment of Aqora Lithium Batteries points to a trend that will grow in the years to come. 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. ■

Source: Coega SEZ, 31 March 2023

b c d

Global Business Services

Employment is picking up as the sector grows.

The Coega Business Process Outsourcing (BPO) Park, located in Zone 4 of the Coega Special Economic Zone (SEZ), has so far created a total of 1 529 jobs. Uninterrupted power supply to the park is among the reasons that it has attracted a combined investment value of R18.1-million.

South Africa’s GBS sector, which includes BPO and Shared Services, 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, high-speed 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.

Better connectivity as promised by the landing of the EC Africa2Cable could be the platform for further investments and job opportunities.

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.

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.

The East London Industrial Development Zone (ELIDZ) has an ICT strategy that focusses on an ICT Hub which will include

Coega BPO Park employment 1 529 employees

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

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.

A Future Skills Platform programme passed on digital skills to about 1 000 people early in 2023, courtesy of the Eastern Cape branch of Business Processing enabling South Africa (BPESA), Evolution, Coega SEZ and Volkswagen SA. Absa sponsored a further 70 later in the year. The programme has been running since October 2022 under the auspices of the UNDP (United Nations Development Programme). ■

The EC Africa2Cable landed in 2023.

SECTOR INSIGHT

Education and training

Skills training is a priority.

Rhodes Business School announced in 2023 the addition of a Postgraduate Diploma in Advancement and Resource Mobilisation to its MBA programme. The aim is to equip NGOs, NPOs, charities and educational institutions with the skills necessary to advance themselves and mobilise resources in line with three of the Sustainable Development Goals, a factor underpinning many of the courses offered by the School.

Rhodes University, pictured, held year-long celebrations of its 120th anniversary in 2024, describing it as “a moment for critical reflection and strategic re-imagination for growth and sustainability”. Rhodes University has a strong reputation for research, which has been enhanced by the addition of the Biotechnology Innovation Centre.

The Eastern Cape Premier’s State of the Province Address in February 2024 provided an opportunity to reflect on the educational achievements of the administration of Premier Oscar Mabuyane and his team.

Infrastructure at school and tertiary level were priorities, with several TVET colleges benefitting from a national programme that focussed on student accommodation and lecture halls. In addition to reflecting on the past, the Premier announced the launch of the MerSETA Mega Skills Project which aims to provide skills training to more than 10 000 young people. The Premier’s Top Achievers Bursary Award has been renamed the Dr Soyisile Nuku Scholarship.

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.

ONLINE RESOURCES

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

MerSETA: www.merseta.org.za

Technology Innovation Agency: www.tia.org.za

SECTOR INSIGHT

MerSETA Mega Skills Project targets 10 000 young people.

Since 2019

• 29 000 young people trained in skills by 13 SETAs

• 100 schools built

• more than 5 000 tertiary bursaries

Source: 2024 SOPA

The Eastern Cape has three other universities aside from Rhodes University. The University of Fort Hare is leading three innovative studies into biogas, including a project investigating compressed biogas for public transport. 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.

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

PHOTO: Vysotsky, Wikimedia Commons

Water

The Mzimvubu Dam project is back on track.

SECTOR INSIGHT

Water’s area of operation now includes the whole province.

In November 2003, a website post recorded that the Kouga Dam was at 100.31% capacity with 4 090 litres per second flowing over the dam wall.

TVarious regional Bulk Water and Sanitation infrastructure projects have been undertaken by the Provincial Government. In the 2024 SOPA, the Premier announced that 68% of households in the Eastern Cape have access to piped water, a situation very different to the scenario before 1994, when the vast majority had no such access.

he National Department of Water and Sanitation has restarted the Mzimvubu Water Project, albeit on a less grand scale than was originally planned.

The estimated R8-billion that will now be spent, starting with the Ntabelanga Dam project, will create water infrastructure to serve more than 140 000 households in the district municipalities of Alfred Nzo, OR Tambo and Joe Gqabi, areas that are mostly rural and include the popular tourist section of the coast known as the Wild Coast.

The Mzimvubu River, regarded as the only major river in South Africa not to be treated as a resource, is intended to supply water to support poverty alleviation and development initiatives. Construction of the dam is expected to start in 2024 and most of the access road to the site has been completed.

The Nelson Mandela Bay metropole currently gets its water from 10 dams, six of which are owned by the municipality. Water services are provided to the citizens of the Eastern Cape by 17 water service authorities which oversee 163 drinking water supply systems. Municipalities and Amatola Water are the primary providers of services.

The Eastern Cape has been known to have very dry periods, with long droughts sometimes putting farmers and households under pressure. In May 2021, the Kouga Dam, pictured, which serves urban areas such as Gqeberha and citrus farmers in the Gamtoos Valley and beyond, reached a record level of 7%, the lowest recorded level since it was built. At that time, most municipalities introduced restrictions on usage with the Nelson Mandela Bay Municipality limiting residents to 50 litres per day.

Backlogs in rural areas and smaller municipalities are still prevalent, and Amatola Water is playing a key role in reducing and eradicating these inequalities. National government has issued a gazette announcing that Amatola Water will have its area of operation expanded to include the whole of the Eastern Cape. ■

In response to the dry times, the capacity of the Nooitgedacht treatment plant which serves the Nelson Mandela Bay Metro was increased by 70 megalitres per day and now it delivers 210 megalitres per day.

ONLINE RESOURCES

Institute for Water Research, Rhodes University: www.ru.ac.za/iwr National Department of Water and Sanitation: www.dws.gov.za Water Institute of South Africa: www.wisa.org.za

EASTERN CAPE BUSINESS 2024

SECTOR INSIGHT

Amatola Water’s area of operation now includes the whole province.

In November 2003, a website post recorded that the Kouga Dam was at 100.31% capacity with 4 090 litres per second flowing over the dam wall.

Various regional Bulk Water and Sanitation infrastructure projects have been undertaken by the Provincial Government. In the 2024 SOPA, the Premier announced that 68% of households in the Eastern Cape have access to piped water, a situation very different to the scenario before 1994, when the vast majority had no such access.

CAPE BUSINESS 2024

PHOTO: Gamtoos Water

Amatola

PHOTO: Gamtoos Water

EASTERN

Since inception, over 811 million litres have been replenished through the Coke Ville project in the Eastern Cape, Gauteng, Free State, KwaZuluNatal and Limpopo Provinces.

By the end of 2023, over 1.2 billion litres of water was replenished back to the environment and communities through both Coke Ville and Watershed Restoration Projects.

In 2023 alone, over 30 000 in 5 provinces

Three community gardens have been integrated to the Coke Ville systems providing local women with enterprise opportunities and contributing to food security and poverty alleviation.

improves livelihoods and wellbeing while protecting against waterrelated disasters.

We continue to replenish the water we use in our finished beverages to nature and communities. We have set three key goals designed to achieve our vision:

• Achieve 100% regenerative water use across our facilities in areas identified as facing high levels of water stress by 2030

• Improve the health of watersheds identified as most critical for our operations and agricultural supply chain by 2030

• Continue to return water to nature and communities. Ensuring the health of watersheds is a major part of this.

For example, as CCBSA we successfully implemented Project Lungisa in Grabouw in the Western Cape, where the municipality was losing a significant amount of its potable water due to leaks and failing infrastructure. Through this partnership, we trained young community members in plumbing to support the rehabilitation of water infrastructure, including fixing leaks in informal areas.

In response to a looming Day Zero in parts of the Eastern Cape, CCBSA launched an ambitious project to work with the local municipality and other key stakeholders to assist vulnerable and distressed communities.

Since 2020, CCBSA deployed off-grid, solar-powered groundwater harvesting and treatment initiative called Cokevilles. In the region, a total of nine systems, or boreholes, have been deployed in Gqeberha with a potential of replenishing a minimum of 90-million litres per annum at no cost to the beneficiaries.

Last year the company unveiled a R12-million groundwater harvesting Cokeville project, to supply the entire town of Graaff Reinet in the Eastern Cape with potable water. The Cokeville megaproject was installed to feed directly into the municipality’s infrastructure and is able to supply between 27-million and 30-million litres of water every month to the town and surrounding communities.

Since the inception of our borehole groundwater harvesting programme, we have managed to replenish hundreds of millions of litres of water in Limpopo, KwaZulu-Natal, Gauteng, Free State and the Eastern Cape provinces, benefitting thousands of households.

Building resilience through partnerships and innovation

We understand that no entity can solve the water challenges alone. We believe in collective action and partnership to tackle

development issues. It is important that all relevant stakeholders have a voice, an investment and a shared understanding of the outcomes to ensure we deal with the lack of access to safe water.

As CCBSA we believe in and are committed to solution-driven conversations for a better future for all. ■

Oceans economy

Infrastructure upgrades are underway at the Eastern Cape’s ports.

National utility Transnet has a seven-year plan to invest in infrastructure upgrades at the Port of Ngqura (which serves the Coega SEZ) and the ports of Port Elizabeth and East London.

The Port of East London, pictured, is best known as the conduit for the export of Mercedes-Benz vehicles and agricultural produce. It is set to become an alternate destination for manganese exports but the bulk of exports will go through a new dedicated manganese export facility with a capacity of 16-million tons to be built at Ngqura. This development will free up space within the Port of Port Elizabeth for leisure craft and ensure that Kings Beach will remain a sought-after holiday destination.

Another development within the Port of Ngqura will see the Mediterranean Shipping Company establish an additional exportcargo service for agricultural products such as the citrus from the Sundays River Valley.

Promoting the oceans economy is one of the priorities of the Eastern Cape Provincial Government. Beyond harbours and fishing, other potential sectors such as maritime repair and maintenance and oil and gas exploration have great potential. National government has named the Coega SEZ as the site of a potential liquified natural gas (LNG) plant. 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).

RESOURCES

Maritime Business Chamber: www.maritimechamber.co.za

SECTOR INSIGHT

The Port of East London has started exporting manganese.

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 440ha zone inside the Coega SEZ adjacent to the deepwater Port of Ngqura.

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

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

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. ■

Maritime Business Chamber

The MBC is the anchor and place of refuge for the Maritime Industry.

The Maritime Business Chamber (MBC) has positioned itself as the advocacy voice of the Maritime Industry by providing business support, promoting sustainable jobs and skills development and lobbying for business opportunities. MBC supports all maritime programmes that seek to promote sustainability (balance socioeconomic and environmental issues in the Maritime Industry).

Vision

To be a leading, inclusive, progressive and transformative chamber for developing competent and sustainable maritime enterprises.

Mission

To be a leading partner in offering maritime services that promote socio-economic growth and maritime industry capacity building.

The Maritime Business Chamber affirms its focus according to the following objectives:

• Round table and maritime think-tank discussions on Africa’s maritime regulations, policy/bills/legislations and marine environment

• Enterprise development that will address core competencies and capabilities, systems development and Maritime Leadership Development

• Facilitation of access to finance through fundraising

for the Maritime Industry and social causes, sponsorships and investments

• Stakeholder collaboration in the implementation of the African Continental Free Trade Area (ACfTA) and Revised Africa Maritime Transport Charter

• Encourage and promote synergies, collaboration, SMART and sustainable, innovative and efficient ways of doing business among all African Maritime Industry bodies or structures

• Global competitiveness by forging intra-regional African partnerships, promoting regional practice Internationally and benchmarking

• Advocate for efficient and competitive ports, shipping and maritime services in Africa

Sectors of focus

Our focus areas include:

• Shipping

• Ports

• Shipbuilding with the shipbuilding supply industry

• Marine engineering

• Offshore oil and gas

• Offshore wind energy

• Fisheries

• Aquaculture

• Maritime research and development.

Our core function is to focus on SMME development and to ensure MARITIME FOR US ALL!

Tel: +27 41 587 5855

Email: adminoffice@maritimechamber.co.za

Web: www.maritimechamber.co.za

Social networks: Facebook/Instagram/LinkedIn/ @MaritimeBusinessChamber CONTACT DETAILS

AAMA conference: Daniel Mwaza (Secretary General, Intergovernmental Standing Committee on Shipping), Nondumiso Mfenyana (MBC Executive Secretariat), Mwanaulu Issa Mwajita (Director, ISCOS Trade Facilitation and Policy Harmonisation) , Unathi Sonti (Executive Chairperson, MBC).

Unathi Sonti, Executive Chairperson, MBC

Film

Jobs are being created in the creative sector.

The oldest town outside the Western Cape was the scene of a very modern world film premiere when Wild is the Wind was shown for the first time in Graaff-Reinet in 2022.

Several films had previously been shot in the town – notably the political thriller Red Dust – but this was the first production to make extensive use of local residents as actors and the local economy benefitted from the production in many ways. The joint hosts of the premiere were Known Associates Entertainment (KAE), MYD88 Films, the Eastern Cape Development Corporation (ECDC), the Sarah Baartman District Municipality and the Dr Beyers Naude Local Municipality. Another big financial supporter of the film project was the National Empowerment Fund.

Since 2018, the Provincial Government, through the ECDC and various film funds, has invested R39-million in 25 film projects. This has attracted an investment revenue of R499-million, created employment for more than 8 400 people and boosted 690 small businesses. The film sector is seen as one of the best in terms of investment returns, especially in social terms such as employment and local economic development. 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 2023 the ECDC hosted the second instalment of the Eastern Cape Film Expo during the National Arts Festival. The Film Expo intends to position the Eastern Cape as a film and television destination of choice through engaging and attracting local and international film productions and investors.

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

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

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

R39-million has been invested in 25 projects.

The ECDC’s Eastern Cape Investment Film Fund is available to most production categories, from animation to feature films with TV series and telenovelas and documentaries in between and ranges from R1-million to R3-million. The funding is restricted to productions that plan to shoot their projects in the Eastern Cape.

Tourism, one of the best sectors for creating employment, will have been boosted by two series of the popular Survivor series. Survivor: Immunity Island, 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. Skills transfer to young people has also accelerated with the investments taking place in four of the province’s district or metropolitan municipalities. 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. ■

SECTOR INSIGHT

A preferred film and television destination of choice

The Eastern Cape Film Investment Fund is supporting the fast-growing film sector.

The Eastern Cape Development Corporation (ECDC) realises the investment promotion potential of promoting the Eastern Cape as a destination for hosting national and international film and television productions. The province has breath-taking film and television locations which position the Eastern Cape as a preferred film and television destination of choice. Since its inception in 2019, the province continues to realise a return of its investment in the Eastern Cape Film Investment Fund (ECFIF). The province has realised the following economic spin-offs:

• 25 productions have been funded • R39-million was invested by the ECDC • R499-million was attracted into the province • 8 400 temporary jobs were created • 690 SMMEs were contracted for support services during the production phases of the projects.

How to access the fund

The ECDC opens a funding call advertised on all ECDC social media platforms. These include on the ECDC website, Facebook and Instagram pages. Applicants are required to download and read the Eastern Cape Film Investment Fund (ECFIF) Guidelines before completing the application form available on the ECDC website. https://www.ecdc.co.za/ecinvestmentfilmfund

In partnership with provincial and national stakeholders, the ECDC hosts the Eastern Cape Film Expo for three days, every June in Makhanda, coinciding with the National Arts Festival (NAF). The main aim of the expo is to promote the Eastern cape as film destination of choice through its breathtaking film locations. The festival is the ideal platform for engaging with industry experts, offer masterclasses and screenings/ exhibitions of local and international content. The main objective is to attract more local and international production houses to film their projects in the Eastern Cape due to the untapped opportunities of our beautiful locations, while also exposing the diversity of the province.

ECDCfundedrecently productions

Development finance and SMME support

Recyling is bringing employment to Bedford.

The small Eastern Cape town of Bedford is the site of a remarkable collaboration between community organisations, a large telecommunications group and specialist e-waste recycling company.

The Thembani Eagle Hout Integrated Project recycles redundant optic cable, an activity that is both labour intensive and environmentally friendly. Thembani supplies material as a subcontractor to Gauteng-based Sindawonye Granulators under the auspices of Telkom. Long-lasting plastic droppers (or fence posts) were created from the stripped cable.

The e-waste project has led to another project in which sawdust created from the operations of furniture-makers Eagle Hout is used to make compost for organic vegetable gardening and a township garden route. The town is renowned for its annual Bedford Country Gardens Festival so there is a ready market for compost. The Thembani NGO was granted a waste management licence by the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism. Income from the recycling project supports the Thembani Special Needs Day Care Centre.

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,

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

Volkswagen South Africa trains and mentors suppliers.

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

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

As part of its Enterprise Development programme, the Wild Coast Sun runs an Academy where SMME business courses are offered. The resort aims to achieve 90% procurement of all goods and services from BBBEE level 1 suppliers within five years. ■

SECTOR INSIGHT

Banking and financial services

Banks are supporting sustainability.

Banks active in the Eastern Cape are participating in local economies beyond extending loans and taking deposits.

Nedbank’s provision of an R800-million borrowing base facility to the Humansdorp Cooperative, for example, reaches 1 300 farmers who produce more than 30% of South Africa’s dairy requirements. In addition, the WWF Nedbank Green Trust, funded by Nedbank, has been a strong supporter of FoodForward SA, the largest food redistribution non-profit organisation in the country, pictured. More than 600 farmers donate food which is distributed through 2 750 organisations that reach 985 000 beneficiaries.

Agricultural finance is an important factor in the Eastern Cape. Production loans, vehicle financing and revolving credit plans all play a big role in keeping farmers and agro-processors in business.

Nedbank’s coverage of the Eastern Cape is significantly enhanced by its partnership with Boxer, a supermarket chain that is part of the Pick n Pay group. There are more than 100 Nedbank kiosks in Boxer stores across South Africa, the result of a relationship that began in 2008.

A much newer entrant to the South African banking scene, TymeBank, has gone beyond the idea of locating kiosks in supermarkets with the signing of a deal with TFG, a retail group with 34 brands and 30-million customers. Brands operating in what used to be known as the Foschini Group include Markhams, Totalsports, Jet

SECTOR INSIGHT

Shoppers can bank at TFG stores.

and Dial a Bed, all of which are well represented in the Eastern Cape. In the short term, TymeBank will have access to 600 TFG kiosks, taking the bank’s total in South Africa to 1 450.

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.

African Bank, with an eye on listing on the JSE, completed its purchase of Ubank in 2022. 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. ■

Tourism

The World Bank is putting R65-million into conservation.

In November 2023, The Black Rhino Range Expansion Project (BRREP) translocated its 250th rhinoceros. The BRREP has been moving rhinos to protect them for 20 years and the latest batch of 20 were taken from a reserve managed by the Eastern Cape Parks and Tourism Agency (ECPTA). In six years to 2023, 40 rhinos have been moved from less safe areas into the custodianship of the ECPTA. This kind of effort has been recognised by the World Bank, which is putting R65-million from its Global Environment Facility (GEF) towards efforts in the province to protect biodiversity, in particular in the Addo Elephant National Park and the Great Fish Nature Reserve. This region is described by the World Bank as the Greater Addo to Amathole node.

Several private game reserves have gone to great lengths to protect their rhino populations. Sibuya Game Reserve on the Kariega River has established the Sibuya Rhino Foundation and funds its own armed anti-poaching unit, which leases a helicopter to help with daily patrols.

In March 2024 National Transport Minister Sindisiwe Chikunga announced that Airports Company South Africa (ACSA) will go ahead with a multi-year R21.7-billion capex plan. This will include upgrades and developments at Gqeberha’s Chief Dawid Stuurman International Airport and King Phalo Airport in East London.

Although the Bulembu Airport in Bhisho, which is run by the Eastern Cape Provincial Government, has been identified as a potential hub for cargo, it was used in 2023 as a tourist point of entry when United Arab Emirates President Sheik Mohamed bin Zayed al Nahyan brought a number of guests to visit his private game

The province’s airports are to be upgraded.

lodge which is apparently near Makhanda.

Updated figures for domestic trips into the Eastern Cape for 2022 showed that there were 5.8-million visits during that year, and the estimated economic impact was over R8-billion. 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 2023 and 2024. Gqeberha also hosted a new tournament, and in 2023 the metropolitan municipality put its weight behind the effort to market the city through the tournament. The Nelson Mandela Bay Championship was played for the first time in 2023, and

SECTOR INSIGHT

PHOTO: Sibuya Rhino Foundation

again in 2024 as part of the DP World Tour at Humewood Golf Club and attracted considerable media attention. Resorts and hotels Sun International runs the Wild Coast Sun and the five-star Boardwalk Casino and Entertainment World in Gqeberha, 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.

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

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 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. 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. ■

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