Eastern Cape Business 2020

2020 EDITION

EASTERN CAPE BUSINESS EASTERN CAPE BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN THE EASTERN CAPE PROVINCE

THE GUIDE TO BUSINESS AND INVESTMENT IN THE EASTERN CAPE PROVINCE

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EASTERN CAPE BUSINESS 2020

CONTENTS

CONTENTS Eastern Cape Business 2020 Edition

Introduction Foreword

5

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

Special features Regional overview of the Eastern Cape

While long-standing stalwarts like the mohair sector and the automotive industry continue to thrive, the province’s two Special Economic Zones hold the key to expanding and diversifying the Eastern Cape’s economy.

6

Popular events are driving the tourism sector 10 The adventure province is attracting many local thrill-seekers.

The diamond fibre glistens for mohair farmers and producers

The Eastern Cape is the world leader in mohair production.

16

Economic sectors Agriculture and agri-processing

30

Special Economic Zones and ports

32

A Wild Coast Special Economic Zone is planned.

The gas and the maritime sectors are gaining momentum.

EASTERN CAPE BUSINESS 2020

2

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W

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ABC is one of the best go-to wood chipper equipment sales and service agents.

Africa. Now fitted on SABS-approved trailers.

ABC understands wood recycling

With an intimate understanding of the operational challenges of wood recycling in South Africa, ABC established state-of-the-art facilities to service, repair and rebuild wood chipper equipment of any make Wood chipper services and size.

• Agricultural: orchard / vineyard recycling and ABC’s facility is manned by a remarkable team of very(from experienced and75XP suitably qualified engineers, mulch spreading A small selection of Bandit wood chippers left to right): Model Engine; Model 65XP PTO and the Intimidator™ 12XPC. technicians and artisans. An equally remarkable • Biomass for heat or electricity Company generation Slogan team of field-service technicians delivers repairs, • Site clearing and preparation maintenance and parts to clients’ sites to optimise • River rehabilitation in riparian zones Become an owner of a Bandit chipper Africa Biomass Company is the authorised dealer uptime and efficiency.

• Workshop, field services, parts and spares for Bandit Industries in Southern Africa.

All existing and new customers are welcome • Operator training services: SETA-certified ABC has built up a substantial fleet of Bandit to contact us if they want to become the wood chippers for use by the company as part The biggest biomass producer in Africa owner of the top-class range of Bandit • Manufacturing workshop of our wood recycling services, but ABC also

Company Slogan

equipment. Bandit Industries have delivered

offers a whole range of Bandit wood chippers successful recycling solutions tobybasically Dimensional wood chips are produced the The X-factor in wood chippers to clients who want to invest in the Bandit range. every corner of the planet.

removal of alien invasive trees in riparian zones.

Bandit chippers are designed with quality, production and longevity Hand-fed impossible, Previously ABC now has the Bandit combines first-world technology and in mind.

A commitment to support chippers are mounted on custom-built, SABStechnology to get the job equipped done. experience with third-world functionality.

This makes knowledge andAfrica Biomass Company is fully approved trailers. Owning a Bandit wood and stocked to service anyused Bandit These wood chipsand arerepair then chipper will always put you in the front seat of machine anywhere in South Africa. We own reliable wood chipping operations. in agri-industrial applications a fully-equipped parts warehouse (650m²), In many cases, the Bandit wood chipper sets as a greener alternative to as coal manufacturing department as well field the benchmark for other brands in the wood services to ensureheat that parts always readily for either or areelectricity chipping industry. We are ready to supply the available and our own, as well as our clients’ right Bandit wood chipping solution with advice production.

Bandit wood chippers are not out of commission and aftercare to your doorstep. All existing and new customers are welcome to contact us to become the owner of Bandit equipment.

longer than they have to be.

Geographical footprint www.abc.co.za 9

WESTERN BUSINESS 2020 ABC is located in CAPE Worcester (Western Cape), Kirkwood (Eastern Cape), Nelspruit (Mpumalanga) and Upington (Northern Cape).

We operate in all nine provinces in South Africa and also across the border into Sub-Saharan Africa including Namibia, Botswana, Mozambique, Tanzania, Kenya and Nigeria. ■

www.abc.co.za

CONTENTS

Energy

34

Construction and property

36

Offshore gas finds could be transformative.

Student accommodation is a growing subsector.

Manufacturing 38 Mercedes-Benz and Volkswagen are breaking records.

Education and training

39

A new medical school is to be established.

Government Eastern Cape Provincial Government

40

An overview of the Eastern Cape provincial government departments.

Reference Maps

Eastern Cape provincial map

9

ABOUT THE COVER: Photo: Kierran Allen Photography/Nelson Mandela Bay Stadium. Built for the 2010 FIFA World Cup, the Nelson Mandela Bay Stadium celebrates its 10th anniversary this year. The stadium overlooks North End Lake and is close to Algoa Bay. The design of the stadium allows for excellent views from all seats and an intimate experience.

EASTERN CAPE BUSINESS 2020

4

FOREWORD

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

Credits Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Managing director: Clive During Online editor: Christoff Scholtz Art director: Brent Meder Designer: Simon Lewis Production: Lizel Olivier Ad sales: Gavin van der Merwe, Sam Oliver, Jeremy Petersen Gabriel Venter, Vanessa Wallace, Themba Khumalo, Shiko Diala and Sandile Koni.

Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

T

he 2020 edition of Eastern Cape Business is the 13th edition of this highly 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’s investment and business opportunities are highlighted in this publication. One of the province’s unique economic assets, the mohair industry, is highlighted in a special feature while the occasion of the 10th birthday of the Nelson Mandela Bay Stadium is celebrated in an article on tourism and events.

Overviews are provided on the key economic sectors of the province, including the increasingly important Special Economic Zones and energy, where the Eastern Cape is leading the nation in attracting investment in wind power. The major business chambers in the province have made contributions to 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 African Business was published. ■

Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

DISTRIBUTION

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.

PUBLISHED BY Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za

Member of the Audit Bureau of Circulations 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 | Pictures supplied by Africa Biomass Company; Bandit Industries; Coega Development Corporation Eberspächer South Africa, Eastern Cape Parks and Tourism Agency; iStock; Jendamark; Keith Arkins; Mandela Bay Development Agency; Maritz Electrical; Mohair SA; Nelson

ISSN 1995-1310 Mandela Bay Stadium; Rhodes University; SAMIL; STAG; Transnet National Ports Authority; Wikipedia 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.

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EASTERN CAPE BUSINESS 2020

SPECIAL FEATURE

Image: Coega Development Corporation

A regional overview of the Eastern Cape

By John Young

While long-standing stalwarts like the mohair sector and the automotive industry continue to thrive, the province’s two Special Economic Zones hold the key to expanding and diversifying the Eastern Cape’s economy.

A

with ever ything from tyres, windshields and batteries to catalytic converters being manufactured and exported.

Eberspächer South Africa, an exhaust systems manufacturer, won the 2019 Factory of the Year competition, which is run by management consultants AT Kearney. Quinton Uren won the Industrialist award for the work of his company, Jendamark Automation.

The manufacturing assembly solutions that the company creates in Port Elizabeth are exported to 18 countries. International orders make up 90% of the company’s business.

The kind of technical excellence represented by the two award winners is something of a signal of a way forward for the regional economy – investment in high-value manufacturing and

national competition found a Port Elizabeth automotive components company to be the country’s “Factory of the Year” in 2019. This follows the award of “Africa’s Industrialist of the Year” to a Port Elizabeth entrepreneur whose automation company exports to 18 countries.

It comes as no surprise that the automotive sector in the Eastern Cape produces excellence and innovation. The long-term presence of Mercedes-Benz South Africa, Volkswagen South Africa, Isuzu and Ford has now been bolstered by a multi-phase R11-billion investment by Beijing Automotive Group South Africa at the Coega Special Economic Zone (SEZ). The automotive components and service industry from which the two award-winners sprung is similarly diverse,

EASTERN CAPE BUSINESS 2020

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SPECIAL FEATURE attractive to investors. The facility in East London is in the process of changing its official status from Industrial Development Zone (IDZ) to SEZ but it remains a kind of SEZ. In the period March 2019 to January 2020, the Coega SEZ (shown in the main picture) signed four new lease agreements with organisations that will collectively invest more than R100-million. This comes after a most productive 2018/19 period when R2.6-billion was invested by 18 entities. The variety of investments received by the two SEZs is detailed further in a separate article elsewhere in this journal.

services to stimulate growth and job creation.

The investment pathway presented by the Eastern Cape Development Corporation (ECDC) in preparation for the 2019 Eastern Cape Investment Conference specified nine sectors within manufacturing where the province wants to attract investment: • Maritime • Pharmaceuticals • Green/renewables • Agri-processing • Materials • Light manufacturing • Automotive • Petrochemicals • Capital goods.

The ECDC, the official investment promotion agency of the Eastern Cape, further outlined the factors that make the province an attractive investment destination: transport infrastructure, land, labour, government incentives and raw materials. Sectors with high potential in the province include agriculture, mining and energy, manufacturing, tourism, construction and knowledge-based services.

Eastern Cape Premier Oscar Mabuyane reported in 2019 that several large investment commitments have been made in the province.

At the time of the conference he was MEC for Economic Development, Environmental Affairs and Tourism. He cited: • SAB, R438-million plant upgrade • Mercedes-Benz SA, R10-billion • Aspen Pharmacare, R3.4-billion • Nestlé, R663-million • Yekani Technologies, R1-billion at Coega SEZ • MultiChoice, R900-million at ELIDZ • Volkswagen SA, R6.1-billion • BAIC, R11-billion at Coega SEZ. Since that conference, mining company Bushveld Minerals has announced that it will spend about R150-million on a vanadium electrolyte plant in East London. The product will be used in vanadium redox flow batteries by Bushveld and by international customers. East London is home to First National Battery, a subsidiary of Metair.

The presence of two Special Economic Zones (SEZs) in the province helps make the Eastern Cape

A work bench in the country’s top factory.

Image: Eberspächer South Africa Perhaps the most consequential investments into the SEZs are in the automotive and energy sectors. Although the automotive investments are not game-changers in the sense that a new sector is being introduced, the scale of the investments is impressive. With two new Chinese car-makers (FAW and BAIC) in the Coega SEZ, increased production volumes will ensure that jobs are created. The sector already accounts for more than 400 000 jobs in the province.

In support of tourist initiatives in the eastern parts of the province and to bolster the economy of rural areas, the South African National Roads Agency is working on projects valued at nearly R7-billion, while the project pipeline for to 2021/22 is budgeted at more than R5-billion.

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EASTERN CAPE BUSINESS 2020

SPECIAL FEATURE

Oil and gas

Geography

The oil and gas sector could ignite a whole new type of economy, and kickstart the Oceans Economy.

National government has named the Coega SEZ as the potential site for a 1 000MW Liquefied Natural Gas (LNG) plant. The value to the regional economy of the project is estimated at R25-billion. A gas-fired power plant (Dedisa) is operating at Coega and there are plans to expand this sector.

Since the company Aegean Bunkering Marine Services was licensed in 2016 by the South African Maritime Safety Authority (SAMSA) and Transnet to supply bunker fuel to ships passing through Algoa Bay, many additional ships have used these services, adding more than R70-million to the local economy. If the drive to convert to oil and gas is successful (and the hope is that feedstock will come from offshore gasfields once they are developed) then a string of downstream benefits could accrue.

Provincial authorities are working with SAMSA to ensure that the province’s ports play a role in bunkering and supplies to the oil and gas sector.

The Provincial Government of the Eastern Cape is developing an Oceans Economy Master Plan which will include provisions to support smallscale fishers and to develop the small harbours at Port St Johns, Cape St Francis and Port Alfred. Other areas for strategic development include Coffee Bay, Mdumbi and Port Grosvenor on the Wild Coast.

Port Elizabeth is gearing up to embrace the Oceans Economy. A new national headquarters of the South African International Maritime Institute opened in the city, and the Oceans Campus of Nelson Mandela University will devote its resources to researching how best the province and country can exploit the maritime sector.

These institutions will support an existing provincial maritime economy which is underpinned by three major ports: Port Elizabeth, East London and Ngqura. Port Elizabeth’s major cargoes are manganese and vehicles while both East London and Ngqura support Special Economic Zones (SEZs). There are plans to move manganese stockpiles to Ngqura which will free up space for a waterfront development in the Port Elizabeth harbour.

The Eastern Cape extends over 169 580 square kilometres, representing 13.9% of South Africa’s land mass. The dry western interior is one of the country’s premier sheep-rearing destinations and it is the home of the mohair industry.

The mountainous regions of the north and east of the province support timber plantations while the coastal belt in the south-west is well-watered and is good for dairy farming. The province has spectacular beaches stretching from the surfer’s paradise at Jeffreys Bay all the way to the famed Wild Coast. Two major airports at Port Elizabeth and East London provide good air links and smaller towns such as Mthatha and Bhisho have airports.

Mthatha is served by SA Express.

EASTERN CAPE BUSINESS 2020

Municipalities The Eastern Cape has six district municipalities and two metropolitan municipalities.

Buffalo City Metropolitan Municipality

Towns: East London, King Williams Town The Port of East London is South Africa’s only river port. The airport, rail links and the East London IDZ contribute to making this an important regional centre. Buffalo City hosts a variety of manufacturers from vehicles to batteries and cotton textiles and is responsible for 19.6% of provincial GDP. There are many opportunities for agriprocessing because of the fertile hinterland and as part of the Sunshine Coast, tourism is an important contributor to the local economy.

Nelson Mandela Bay Metropolitan Municipality

Towns: Port Elizabeth, Uitenhage, Despatch With two ports, a large airport and a concentration of manufacturing concerns, the Nelson Mandela Bay metropole is one of the province’s key economic drivers. It contributes 38.7% to provincial GDP. Volkswagen, General Motors and Ford are all located within the municipality, as are several automotive supplier companies. Aspen, a pharmaceutical company, and South African Breweries are examples of other large concerns.

8

SPECIAL FEATURE Nelson Mandela Bay has a population of 1.1-million and many educational institutions.

The Nelson Mandela Bay Stadium and St George’s Park cricket ground host provincial and international sports matches. Superb beaches and plentiful outdoor options make the area a popular tourist stop. The Addo Elephant National Park is less than an hour’s drive from the Port Elizabeth city centre.

Cattle and sheep farming make up 80% of land use, while commercial forestry is a big contributor to employment. There are large forestry plantations at Ugie and Mount Fletcher.

Maize is grown along the Orange River and wheat in the foothills of the Drakensberg mountains. Tiffindell has been revived as a ski resort. The village of Rhodes hosts a “Stoepsit” festival in February.

Alfred Nzo District Municipality

OR Tambo District Municipality

Towns: Matatiele, Mount Frere, Mount Ayliff The smallest district is in the mountainous northeast, with hiking trails for tourists. There is scope for expansion of tourist activities, and a transfrontier park between South Africa and Lesotho could boost the area’s economy. Subsistence agriculture and forestry are the major economic activities.

Towns: Mthatha, Coffee Bay, Port St Johns, Qumbu, Bizana, Flagstaff OR Tambo District Municipality encompasses some of the province’s least-developed areas and contains one of South Africa’s most important ecological areas, the Pondoland Centre of Plant Endemism. There is mining in some areas but plans for titanium mining on seaside dunes are being contested. A Wild Coast Spatial Development Initiative exists to plot further development.

Forestry is a big employer.

Amathole District Municipality

Towns: Cathcart, Stutterheim, Morgan’s Bay, Willowvale, Butterworth, Alice, Bedford The rural Amathole District surrounds the metropolitan area of Buffalo City. Pineapple and forestry are two of the most important agricultural activities. Popular resorts on the Wild Coast attract many tourists to the area. Hogsback and other towns near the Amatole Mountains offer beautiful scenery and popular beaches. Alice hosts the main campus of the University of Fort Hare.

special feature Sarah Baartman District Municipality

Towns: Graaff-Reinet, Humansdorp, Jeffreys Bay, Makhanda (Grahamstown) The western part of the province contains the biggest municipality geographically. Large commercial farms in the Karoo produce highGauteng North West quality meat, wool and mohair, while the coastal belt has dairy farming and some Free Stateforestry.

The Kouga Valley is a big deciduous fruit Northern Cape producer, while the Kirkwood/Addo area is known for its citrus. Sarah Baartman has three of the Eastern Cape region’s national parks and several private game farms. Makhanda hosts the National Arts Festival, Rhodes University and several fine schools. ■ ZIMBABWE

MOZAMBIQUE

BOTSWANA

Limpopo

NAMIBIA

Mpumalanga

SWAZILAND

KwaZuluNatal

Chris Hani District Municipality

LESOTHO

Towns: Middelburg, Molteno, Dordrecht, Cradock, Queenstown, Lady Frere, Elliot Sheep farming is an important part of the economy. Some coal is found in the north and tourist activities include fly-fishing. The Foodcorp factory in Molteno manufactures Ouma rusks.

Queenstown is a centre for cattle farming and has some manufacturing activities.

The Mountain Zebra National Park is near Cradock. The Grootfontein Agricultural College and Research Station is in Middelburg, and the Marlow Agricultural College is near Cradock.

Western Cape

Free State

EASTERN CAPE PROVINCE Britstown N12

Northern Cape

Colesburg

Victoria West

Aliwal North

Oviston

N10

N1

Lady Grey

N6

R56

Molteno

Maclear

Lusikisiki

Elliot

Indwe

Mthatha

Three Sisters

Beaufort West

R61

Rietbron

Joe Gqabi District Municipality

Pearston East

Klipplaat

N10

Steytlerville

Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie

Uniondale

Joubertina

N9

Knysna

N2

Kareedouw Plettenberg Bay

Adelaide

Cookhouse

Willowmore

Kirkwood

Paterson

Jeffreys Bay

15

9

Komga Bhisho N2

EAST LONDON

Port Alfred

PORT ELIZABETH

Humansdorp

N Butterworth

Stutterheim

Hamburg

N2

Port St Johns

Coffee Bay

Cathcart Fort Beaufort

King William's Town Grahamstown

R72

Uitenhage

Tsomo

Sada

Somerset

R63

Aberdeen

N9

Queenstown

Tarkastad

Cradock

Graaff-Reinet

R61

Mount Kokstad Ayliff Port Edward Mount Frere R61

N2

Dordrecht

Hofmeyr

Western Cape

Ixopo

R56

Fletcher

Barkly East

Jamestown

Steynsburg

Middelburg

Matatiele Mount

R58

Burgersdorp

Hanover

KwaZuluNatal

LESOTHO Zastron

Rouxville Bethulie

De Aar

INDIAN OCEAN Motorway Main Road Railway

eaStern cape buSIneSS 2013

EASTERN CAPE BUSINESS 2020

SPECIAL FEATURE

Tourism and events The adventure province is attracting many local thrill-seekers.

Image: Nelson Mandela Bay Stadium

I

n June 2010 the world came to the Eastern Cape.

Greece, South Korea, Germany, Uruguay, the Netherlands and Brazil and several other soccer teams from all over the world descended on Port Elizabeth. What made it possible for Port Elizabeth to host eight matches during the 2010 FIFA World Cup was the building of the Nelson Mandela Bay Stadium (pictured).

In the decade that has passed since then, rugby test matches and international rugby tournaments have been played there and the stadium and stadium precinct have become popular as sites for events, music concerts and product launches.

Built on the site of the Prince Alfred Park, the 42 000-seater stadium is quite rare in being between two bodies of water, the North End Lake and the Indian Ocean. Prince Alfred Park was one of three large city parks built in the second half of the 19th century.

St George’s Park, in the centre of town, is famous for hosting South Africa’s first cricket test match in 1889. In 2017 the ground was again

EASTERN CAPE BUSINESS 2020

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THE EASTERN CAPE’S UNIQUE SELLING PROPOSITION · Birth and burial place of Nelson Mandela · 800km of pristine coastline · Home of the Big 7 · H ighest commercial bungy jump in the world · H ome to four national parks · H ome to the Baviaanskloof World Heritage Site · Offers five of SA’s seven biomes · Home of authentic Xhosa culture

YOURS TO

EXPLORE

Images: ECPTA

The Eastern Cape uniquely caters to the whims of sun worshippers looking to bask in the regular sunshine, adventure-seekers looking for a thrill, nature-lovers looking to discover numerous wildlife, birdlife and plant species, as well as a solace for those looking to shut out the hassles of everyday life. Everyone is able to find something that suits their needs here, from rugged beauty, a pristine coastline, premier surfing, virgin bush and subtropical forests that exist as though untouched by time, this province is truly every explorer’s dream.

a boundary-breaker when South Africa hosted Zimbabwe for the first-ever day-night test match.

The innovative lighting system deployed for the match will also allow for greater flexibility in lighting music concerts with lighting programmes that can be tuned to musicians’ needs.

The FIFA World Cup created a surge in the number of foreign visitors to the country. The Eastern Cape hosted 260 000 foreign visitors in that year. However, studies show that the province is not attracting as many foreign tourists as rival provinces.

This is somewhat offset by findings that when foreign tourists do visit the Eastern Cape, they tend to stay for longer than they do when visiting most other provinces. An SA Tourism fact sheet in 2018 gave a figure of 16 nights as an average stay.

With regard to domestic tourism, the Eastern Cape’s 12.1% share of the pie is fairly close to the leader (17.2%) and it’s easy to see why. Unmatched beaches, the pristine Wild Coast and a wide variety of national parks and private game reserves make for a superb natural offering. Branding the province as the “Adventure Province” has helped in attracting bungy-jumpers, divers, abseilers and rock climbers.

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ICONIC EASTERN CAPE DESTINATIONS AND LOCATIONS · Valley of Desolation · Qunu: Birth and burial place of Nelson Mandela · Jeffreys Bay Supertubes: World-renowned surfing hotspot · Addo Elephant National Park: Home to the Big 7 · Bloukrans Bridge: Highest commercial bungy jump in the world · Hole in the Wall, Coffee Bay, Wild Coast · Baviaanskloof World Heritage Site · Garden Route, Camdeboo, Mountain Zebra and Addo National Parks · Campanile in Port Elizabeth · Donkin Reserve · Naude’s Neck Pass · Waterfall Bluff, Wild Coast · Big Pineapple: Bathurst · Owl House: Nieu Bethesda · S teve Biko Museum, King Williams Town · N elson Mandela Museum, Mthatha · Adam’s Krantz viewpoint, Great Fish River Nature Reserve · Shark Rock Pier, Hobie Beach, Port Elizabeth · Tsitsikamma Adventure Region · Wild Coast · The Karoo Heartland

EASTERN CAPE BUSINESS 2020

SPECIAL FEATURE

EXCITING Eastern Cape experiences THE PROVINCE HAS A PHENOMENAL ARRAY OF ADVENTURE AND CULTURAL EXPERIENCES · E xperience numerous world-class Blue Flag beaches · Visit the Baviaanskloof World Heritage Site · Big 7 game-viewing · N elson Mandela Museum · S ardine run – annual marine spectacle · E xperience authentic Xhosa culture · O cean safaris – Nelson Mandela Bay is the bottlenose dolphin capital of the world · Bloukrans Bridge: Bungy jump the world’s highest commercial bungy · Segway through the Tsitsikamma Forest · Zipline and treetop canopy tours

St George’s Park Stadium. Image: Maritz Electrical The province’s growing events calendar is creating opportunities in the sector. Makhanda (formerly Grahamstown) hosts the National Arts Festival every year. It is an 11-day extravaganza of art, music, film, lectures, craft fairs and workshops. More than 200 000 people attend the event to watch 2 000 performances in 90 venues. A study five years ago found the economic impact of the festival to be R349.9-million.

Hobie Beach in Port Elizabeth is the main venue of the Standard Bank IRONMAN African Championship.

Enthusiastic crowds line the route and the event boosts the local economy. The 2018 winner, Great Britain’s Lucy Charles-Barclay, defended her title in 2019 and earned a cheque for $30 000. Other popular events in Port Elizabeth include the Herald Cycle Tour and the Ocean Racing Series (a world championship).

Hotels, lodges and casinos

· · · · · · · · · · ·

A new luxury hotel is being built in St Francis Bay. The 60room St Francis Links Hotel by Mantis overlooks the dam on the golf course’s final hole and has views of the Indian Ocean and Kouga Mountains. The existing clubhouse of the St Francis Links Estate will provide facilities such as reception, restaurants and conferencing. St Francis Links EASTERN CAPE BUSINESS 2020

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· · · · ·

Whale-watching Township tours Urban experiences Karoo food Route 67, Nelson Mandela Bay 15 provincial nature reserves Various beach and bush experiences Cross the Storms River suspension bridge Hike the Otter Trail E xplore the Wild Coast and visit the iconic Hole in the Wall in Coffee Bay Watersport Mecca – home to world-renowned surfing spots City tours Slackpacking paradise Nature and wildlife River cruises Historical and cultural tours

RICH HERITAGE

is a regular award winner as a wedding venue and for its Jack Nicklaus-designed golf course.

The interior of the Eastern Cape is home to several high-end private game reserves such as Mount Camdeboo, Kariega Game Reserve and Shamwari, which recently announced a R370million refurbishment programme.

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. Luxury brands sometimes create a chain for their customers, so visitors might stay at the boutique Summerstand hotel in Port Elizabeth, No5 By Mantis, on their way to another Mantis property, the Oceana Beach and Wildlife Reserve.

South Africa’s large branded hotel groups have a strong presence in the Eastern Cape but there are also regionally focussed groups together with independent hotels and resorts such as East London’s Blue Lagoon Hotel and Conference Centre, located in a prime spot at the mouth of the Nahoon River.

Kat Leisure Group’s offering extends from the Kennaway Hotelon East London’s beachfront to the Queens Casino and Hotel in Queenstown and properties in the mountainous interior of Katberg and Hogsback.

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

The Radisson Blu in Port Elizabeth offers five-star luxury overlooking Pollock Beach.

Tsogo Sun has five Eastern Cape properties.

In East London the four-star Southern Sun Hemingways is next to the Hemingways Casino complex and the city has one Garden Court, as does Mthatha. Port Elizabeth has a Garden Court and a SUN1, both near Humewood Beach.

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.

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

and culture

The Eastern Cape offers a unique cultural and heritage experience and is home to authentic Xhosa culture.

The Eastern Cape is positioned as the Adventure Province and offers a wide range of adventure activities, ranging from mild to wild. The province is also home to the highest commercial bungy jump in the world, the Bloukrans Bridge. It is Africa’s biggest bridge and stands proudly 216m above the Bloukrans River.

The Eastern Cape has over 800km of pristine coastline and is home to numerous Blue Flag beaches. The province is popular with international surfers and watersport enthusiasts and offers some of the best surfing spots in the world.

The Wild Coast is a rustic, rugged and untouched stretch of coastline boasting amazing hiking trails, village experiences, cliffs and waterfalls.

The Eastern Cape is home to the Big 7 which comprises rhino, leopard, lion, buffalo, elephant, southern right whale and great white shark. The Eastern Cape offers you four national parks: Mount Camdeboo, Zebra National Park, Garden Route National Park and Addo Elephant National Park. The province is also home to various world-class private nature reserves offering unique beach and bush experiences.

The Eastern Cape is the birth and the burial place of Nobel award-winning and father of the nation, Nelson Mandela, and boasts the world-class Mandela Museum in Mthatha.

The Eastern Cape is home to the Baviaanskloof Nature Reserve. The nature reserve has been declared a World Heritage Site by UNESCO. The Baviaanskloof is just under 200km in length and is bounded by two mountain ranges.

ACCESS · 3 airports (Port Elizabeth, East London, Mthatha) · 2 ports (Port Elizabeth and East London) · Road access – national roads (N2 and N6)

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EASTERN CAPE BUSINESS 2020

SPECIAL FEATURE

The diamond fibre glistens for mohair farmers and producers The Eastern Cape is the world leader in mohair production.

Images: SAMIL

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hen farmers in the Cape Colony wanted better returns for their hard work, they introduced sheep which produced a better quality of wool. That tactic was so successful that the value of wool exports increased exponentially in the four decades after 1820.

However, when Angora goats were introduced, the value of exports of mohair shot up in just five years from £15 000 to £107 000.

South Africa had found its “diamond fibre” before the first real diamond was discovered in a field near Kimberley which would launch South Africa’s mineral revolution.

The other high-value livestock idea introduced was ostrich farming and that went very well, until the market crashed around the time of the outbreak of World War I. Mohair continues to shine.

The first Angora goats came to the Cape in 1838 but it took some time for commercial operations to take hold. By 1860, bales of wool and mohair were responsible for the port at Port Elizabeth handling more cargo than Cape Town.

Mohair is a white, lustrous fibre (thus the “diamond fibre”) that is strong and elastic, and it forms a fabric that is easily dyed. Also sometimes called the “noble fibre”, mohair is lightweight, durable, breathes well and is crease-resistant.

The great fashion houses of the world create garments from mohair which is also used to create scarves, socks, blankets, ponchos and throws.

EASTERN CAPE BUSINESS 2020

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China and Italy are the two main export destinations of South African production, fully 95% of which is exported.

South Africa now produces about 54% of the world’s mohair and Port Elizabeth is the mohair capital of the world in the sense that its port handles the bulk of South African exports, many companies have their headquarters there and the sector association, Mohair South Africa, is based there.

As the industry’s representative, Mohair South Africa develops international partnerships and promotes the marketing of mohair products. The body’s stated aim is to “create sustainable demand and profitability for all role-players from producer to processor, and from buyer to manufacturer”.

SPECIAL FEATURE Mohair South Africa is involved in several fashion shows around the world (and other events, such as a series of Vogue magazine knitting events in the USA), which, together with engagements with international brands and textile organisations and attendance at international trade shows, help to keep mohair in the global public eye.

The Empowerment Trust is a Mohair South Africa initiative that helps small-scale farmers towards becoming commercial mohair producers. It also has programmes that train and develop individuals throughout the mohair value chain.

These include farmworkers, shearers, manufacturers and entrepreneurs. If a candidate can show that he or she has the land and a good business plan, interest-free loans (in the form of goats) are paid out, repayable after five years from the profits that come from shearing, which happens twice every year.

Farms around the small towns that dot the open plains south of Graaff-Reinet, Aberdeen, Somerset East, Jansenville and Willowmore routinely produce nearly half of South Africa’s production.

The office of the South African Mohair Growers Association (SAMGA) is in Jansenville. SAMGA negotiates with government and non-governmental organisations on issues to do with mohair production.

When the International Mohair Summit was jointly hosted by Jansenville and GraaffReinet, a Mohair Museum was created 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 located in Middelburg, north of Graaff-Reinet.

Processing of mohair takes place in Uitenhage, Port Elizabeth and Berlin outside East London. The mohair value chain includes brokers, buyers, processors, spinners, manufacturers and retailers.

SAMIL Natural Fibres has divisions all along the value chain. This covers farming, combing, trading, spinning and dyeing. The Angora Genetics Laboratory (ANGELA) was established in 2013 to improve yields. The Stucken group controls Mohair Spinners South Africa, Hinterveld (a mill) and a processing company called Gubb & Inggs in Uitenhage.

Several agricultural companies have mohair divisions. OVK has a 100% shareholding the Cape Mohair Wool (CMW), a mohair brokerage.

BKB has a mohair division that includes auctions and brokering. The company markets about 35% of mohair produced and runs biweekly sales in Port Elizabeth. ■

Mohair auction facts • CMW, a part of the OVK Group, recorded a turnover of R41-million at a sale in 2018.

• In the same year a pair of farmers achieved a price of R1 256.10/ kg at another CMW auction. That worked out to more than R100 000 for a single bale.

• At the third sale of 2019, an average price was achieved of R289.66/kg. The highest price paid was R613/kg, for a 23-micron kid mohair clip. By the final sale of the year, the average was R218.97/kg (Mohair SA).

• A ram sold at an auction organised by the Angora Ram Breeders’ Society in 2018/19 fetched R86 000.

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EASTERN CAPE BUSINESS 2020

INTERVIEW

A wide variety of mohair yarns are finding markets Improved quality and new kinds of yarn are among the spinoffs from increased investment by leading mohair company, SAMIL. CEO Michael Brosnahan expands.

Michael Brosnahan, CEO

Will Brexit have an impact on the mohair sector?

Brexit will have limited to no impact on the mohair sector in South Africa as very little mohair is traded via the United Kingdom. Our major trading partners are China and Italy, though Japan, Taiwan and South Korea are also important markets.

Do you export to Scandinavia?

SAMIL exports exquisite Hand Knitting yarns to Scandinavia. We have created bespoke yarns for these markets, incorporating Scandinavian influences in both style and colours.

Biography Michael emigrated from the UK to KwaZulu-Natal in South Africa in 1981 in order to take up the position of Quality Assurance Manager with the Frame Group. A chartered member of the Textile Institute in South Africa, he has managed several large textile companies since then. Mooi River Textiles was awarded Cotton Spinner of the Year for three consecutive years under his leadership.

He was appointed CEO of SAMIL Natural Fibres in Port Elizabeth in 2016.

EASTERN CAPE BUSINESS 2020

Do you support small-scale farmers?

We formed SAMIL Farming in 2011 to increase mohair availability through joint ventures with commercial and emerging farmers.

An assistant farming manager has been appointed to focus solely on increasing our emerging farmer partnerships. Among the success stories are Ms Sarah Louw of Jansenville and Ms Ntombomzi Qeqe-Lwana of Kommadagga.

Are your investments in combing and spinning paying off?

The investments have not only led to the upliftment of the quality of the products but created the opportunity to produce yarn types that we were previously unable to. We see the investments as the opportunity to secure employment for our employees into the future through enabling us to increase our market share.

What sort of variety do you offer in terms of types of yarns?

SAMIL Spinning produces a wide range of yarns focussing mainly on mohair yarns or mohair blended with other noble fibres such as alpaca and wool as well as all-natural yarns which includes blends with silk and bamboo. We produce yarns of natural fibres blended with man-made fibres such as polyamide, polyester or acrylic fibres, as requested by our customers. Yarn styles range from flat worsted yarns for items such as socks and jerseys, to black headband ties used by Arab sheiks in the Middle East and fancy loop and brushed yarns used by Europe’s top fashion houses. ■18

Sharing Africa’s beauty with the world SAMIL produces and processes mohair, the noble fibre.

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AMIL is a dynamic organisation with more than 30 years’ experience in the South African mohair and textile industry. SAMIL specialises in mohair and mohair-related products and has a fully integrated value chain including farming, processing, trading, yarn spinning and dyeing.

SAMIL has a global customer base and has the unique ability to offer its customers a range of natural fibre products that are traceable back to their origin. Our range of services enables us to meet all of our clients’ yarn and natural fibre needs.

Mohair, the fleece of the Angora goat, is: • Called the noble fibre, and sometimes the diamond fibre.

• L ustrous, resilient and offers exceptional colour reflection. It is a symbol of luxury and exclusivity.

• One of the world’s most beautiful sustainable natural fibres.

African Expressions Our local brand African Expressions was born of the desire to share Africa’s natural beauty with the rest of the world. Through our unique range of yarns, we express the essence of that which makes Africa magical. Our yarns are naturally soft to the touch, easy to knit and luxuriously versatile.

SAMIL divisions

Farming: SAMIL Farming’s objective is to stabilise and increase mohair supply to processors. The division includes strategic kapater partnerships, Woodlands Angora Stud and emerging farmer assistance.

Combing: SAMIL Combing, located near East

London, has become one of the world’s leading processors. With a capacity in excess of 40 tons of top and noil per week, SAMIL Combing is committed to processing only mohair and can accommodate small, exclusive lots.

Trading: All greasy bales are evaluated carefully before processing commences. A strong support base of affiliated companies, partners and agents has been established for the purchase and sale of raw materials and finished goods. SAMIL plays an important role in setting the global standard for mohair tops.

Spinning and dyeing: SAMIL Spinning produces a wide and exclusive range of mohair and mohairblended fancy and fine-spun yarns in both finecount and coarser varieties. We cater for the hand knitting, machine knitting, weaving, hosiery and decor markets. Yarns produced are both mohair blends with other natural and man-made fibres as well as other noble fibre yarn blends. Yarns can be custom dyed to any shade.

Genetic research: The objective of the Angora Genetics Laboratory (ANGELA) is the enhancement of Angora goats, from increasing kidding rates to the improvement of the hair qualities and the overall quantity of hair per goat. Results are available to all in the mohair farming community.

There is valued collaboration with the Grootfontein Agricultural Development Institute (GADI).

Social responsibility: Our duty to the community is to help provide employment. We are involved in projects in previously disadvantaged communities and assist through financial contributions, job creation, mentorship, skills development and husbandry support.

Contact details Tel: +27 41 486 2430 EASTERN CAPE BUSINESS 2020 19 Email: yarns@samil.co.za Website: www.samil.co.za

KEY BKCOB CONTACTS

Chamber Focus PROMOTING BUSINESS IN THE REGION

Les Holbrook, Executive Director of the Border-Kei Chamber of Business (BKCOB), highlights the reasons investors should look no further than Eastern Cape.

Moreflights �ightsand andgreater greaterflexibility �exibilityhave havecreated created More greater opportunities opportunities for forBuffalo BuffaloCity Cityand andthe the greater attractiveness of the region for visitors. attractiveness of the region for visitors.

Undoubtedly the connectedness of a destination

Undoubtedly the connectedness of a destination determines its potential to grow - and prices determines itsan potential grow – and coupled with increase to in operators andprices �ights coupled with an the increase andWhereas flights have changed face in of operators Buffalo City. have changed the the facecore of Buffalo City. Whereas business remains of travellers, more and business remains theare core of travellers, more andall more cruise liners bringing visitors from more cruise liners are bringing visitors from all over the globe. over the globe. Port expansion remains one of Port expansion one with of Chamber’s main Chamber’s main remains focus areas, Transnet still focus with keeping Transnet theof main the mainareas, stakeholder thestill future our stakeholder keepinginterests the future of Present our region and region and investors’ alive. lobby investors’ alive.

Present lobby refers to refers to theinterests expansion of the Container Terminal, thewidening expansion the Container Terminal, the the andof deepening of the Port itself. As widening deepening of the Port simple as itand is, those three activities will itself. in factAs simple as it is, those three activities will in fact make Buffalo City a more desirable location.

T: +27 43 743 8438 F: +27 43 748 1507 www.bkcob.co.za Chamber House, The Hub, Bonza Bay Road, Beacon Bay, East London EXECUTIVE DIRECTOR Les Holbrook | info@bkcob.co.za HEAD OF COMMUNICATIONS / Hi-LITE EDITOR Candi Ferreira | communications@bkcob.co.za INVEST BUFFALO CITY Drayton Brown | ibc@bkcob.co.za www.investbuffalocity.co.za

make Buffalo City a more desirable location.

Widening the net also remain one of our Widening the net also remain one of our guiding guiding p r i n c i pprinciples, l e s, a n d and e n gengaging a gi n g wwith i t h as a s many m a ny stakeholders as possible towardtoward economic growth stakeholders as possible economic sits at the top growth sits atof theour topagenda. of our agenda.

As As we weengage engagewe wefocus focusononthe thecollaboration collaboration rather ratherthan thanthe theexception exceptionand andrecently recentlya anumber number ofMOUs MOUshave havebeen beenagreed agreedininstructuring structuringthose those of engagements.The TheChamber’s Chambersown ownprojects projects engagements. succeed because because we and the succeed we invite inviteparticipation, participation, and Call-2-Action with related waste recycling has the Call-2-Action with related waste recycling introduced a anew approachingthe the has introduced newway way of of approaching everlasting challenge of littering and waste everlasting challenge of littering and waste collection. collection.

On the record, the Border-Kei Chamber of

On the record, the Border-Kei Chamber of Business Business has and will continue to support the has and will continue support the development development of to the N2 Wild Coast road of the N2 Wild Coast roadstrong development, with development, with the belief that thethe new strong belief that the new will usherof/for in a highway will usher in highway a new corridor new corridor of/for – a feature this development – a development feature this Region is sorely region is sorely lacking. lacking.

LES HOLBROOK

Biography Les Holbrook has a National Technical Certi�cate as well as a Certi�cate in Management from Rhodes University. Prior to his appointment as the Executive Director of the Border-Kei Chamber of Business, he was the Deputy General Manager of Beier Industries of Transkei and Executive Director of the Transkei Chamber of Industries.

PROFILE

The Nelson Mandela Bay Business Chamber The Nelson Mandela Bay PROFILE

Business Chamber

A catalyst for economic growth in the region.

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A catalyst for economic growth in the region.

he Nelson Mandela Bay Business Chamber is a not-for-profit An eighth task team, called Industry organisation representative of a broad spectrum of businesses 4.0, begins its work in 2019 to prepare he Nelson Mandela Bay Business Chamber is a not-for-profit in Nelson Mandela Bay. It is one of the largest business local businesses for the digital shift. organisation representative of a broad spectrum of businesses associations in the Eastern Cape, with a membership of more in Nelson Mandela Bay. than 700 businesses employing over 100 000 people in a diverse array It is one of the largest business associations in the Eastern of sectors.

Cape, with a membership of more than 700 businesses employing The Mandela Chamber is a leading catalyst overNelson 100 000 people Bay in a Business diverse array of sectors. for economic development, its strategic Helix model The Nelson Mandela through Bay Business ChamberTriple is a leading catalyst of collaboration between industry, academia and government, which for economic development, through its strategic Triple Helix model serves the foundation of creating a competitive Nelson Mandela Bay. of as collaboration between industry, academia and government, which The Business hasof been the heartbeat of business serves as theChamber foundation creating a competitive Nelsonsuccess Mandela The Nelson Mandela Bay Business in the region over 150 years. The Chamber is driven by a Chamber Enterprise Development Bay. Thefor Business Chamber hasBusiness been the heartbeat of business teamsuccess of dedicated andforvolunteers, lobbying on issues affecting the Programme was launched in 2014, to in the staff region over 150 years. ease of doing businessChamber and companies’ organisation The Business is drivensustainability. by a team of The dedicated staff and develop the skills that enhance and businesses.

In Chief 2018 the also builds international to form a vital link between business volunteers, lobbyingrelations on issues affecting the ease of doing business grow small Nomkhita Mona, successfully owners international markets. The organisation also builds interna- Business Chamber andand companies’ sustainability.

Executive Officer. hosttional relations to form a vital link between business owners and ed the fifth phase of the Enterprise international markets. enhance and grow small Development Programme, with In 2018 Business SMEsbusinesses. set to graduate in the March 2019. successfully hosted To beVision a leading catalyst for economic development in Nelson Mandela Bay. OverChamber 120 entrepreneurs have benthe fifththis phase of the Enterprise To be a leading catalyst for economic development throughout efited from programme.

Development Programme, Nelson Mandela Bay. Meanwhile, the pilot phase of which SMEs graduated in the from Business Chamber’s Exporter March 2019.

Mission By influencing the factors and key stakeholders that create a competitive Development Programme concludBy influencing the factors and key stakeholders that create a competitive ed at theOver entrepreneurs have enabling business environment. end120 of 2018, with 10 comenabling business environment. benefited this programme. panies finishingfrom this programme in its Meanwhile, the pilotisphase first year.

The programme aimed of at the Business Chamber’s Exporter Task teams empowering SMEs to position themDevelopment Programme for The Nelson Mandela Bay Business Chamber has established a structure The Nelson Mandela Bay Business Chamber has established a structure selves as emerging exporters.

2018/2019 had 10 participants. of three task teams divided into sub-groups, to facilitate the ease of of seven task teams to facilitate the ease of doing business.

That figure has grown for the doing business. The task teams are: The task teams are: 2019/2020 intake with 19 • Infrastructure Task Team • Water Task Team participants registered. The - Roads and Stormwater Sub-group Events at the Nelson Mandela Bay • Roads and Storm Water Task Team programme is aimed at empow - Water Sub-group • Task Team Business Chamber keepthemselves business ering SMEs to position SME - Electricity Sub-group • andTeam Energy Task Team owners up to date and informed as emerging exporters.

• Electricity SMME Task • and Logistics Task Team on a wide variety of topics affecting • Transport Special Projects Task Team • Metro Collaboration Task Team business in Nelson Mandela Bay. Events • Trade and Investment Task Team Regular networking functions Enterprise Development and Exporter Development Events at the Nelson Mandelaoffer Bay Business Chamber keep business The Nelson Mandela Bay Business Chamber Enterprise Developowners up to date and informed mentCAPE Programme was launched in 2014, to develop the skills that EASTERN BUSINESS 2019 12

Enterprise Development and Exporter Development

Vision

Mission

Task Teams

Events

EASTERN CAPE BUSINESS 2020

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PROFILE on a wide variety of topics affecting business in Nelson Mandela Bay. Regular networking functions offer business owners the chance to make new professional contacts. The Business Chamber’s flagship events – the Annual Business Chamber Golf Day, the Annual Ladies’ Breakfast and the Annual Banquet – are highlights on the Bay’s business and social calendar. The Events Department hosted a total of 61 events in 2018.

Other services

Publications and marketing As another value-added service to members, the Nelson Mandela Bay Business Chamber provides members with a variety of publications across print and electronic platforms, including the member magazine Infocom (distributed three times a year) and the annual Business Guide.

Help desk In line with its vision of providing an enabling environment for business, the Business Chamber set up an Ease of Doing Business help desk in 2018. The help desk assists members through reducing red tape and engaging with the Nelson Mandela Bay Metro regarding these members’ obstacles in conducting business.

The Business Chamber also engaged with the city’s leadership in 2018 towards the goal of establishing a One Stop Shop for existing and potential investors and will continue these engagements in this year (2020).

Corporate Social Investment Because the majority of our membership’s workforce is based in the city, the region of Nelson Mandela Bay is the direct beneficiary of their Corporate Social Investment programmes – including skills development initiatives, bursaries and scholarships. Many of our member companies significantly contribute to alleviating poverty and specifically unemployment in the region of Nelson Mandela Bay through various initiatives purposed to grow the local economy.

Research unit The Business Chamber established an in-house cluster research unit in 2018. Its aim is to identify several catalytic projects that can be marketed to investors and contribute to the development of key sectors. The unit provides a library of business intelligence and insights for the development of essential clusters.

Certificates of Origin A Certificate of Origin is a document which states the origin of goods being exported and this “origin” is a key requirement for applying tariffs and other important criteria. As an accredited provider of this service, the Nelson Mandela Bay Business Chamber signs Certificates of Origin and offers exporters the opportunity to certify electronically through the ECOO system.

Contact Details Address: 200 Norvic Drive, Greenacres 6045 Enquiries: Nomkhita Mona Tel: +27 41 373 1122 • Fax: +27 41 373 1142 Email: info@nmbbusinesschamber.co.za Website: www.nmbbusinesschamber.co.za 23

In 2019, the Business Chamber adopted Masinyusane Development Organisation, an NPO that creates opportunities for impoverished South African communities, particularly the youth, to get quality education and to develop their talents in order to realise their full potential.

The Business Chamber also partnered with Khipu Networks who donated painting material for the painting of two classrooms at Walmer High School. ■ EASTERN CAPE BUSINESS 2020

ADVERTORIAL

see money differently

NEDBANK BUSINESS BANKING AIMS TO SUPPORT ALL EASTERN CAPE SECTORS PJ Bouwer, Nedbank’s Provincial Business Banking Manager for the Eastern Cape, says there is good news for Eastern Cape business owners and entrepreneurs.

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edbank Business Banking has 15 business managers in the province who are specialists in commercial industries, agriculture and the public sector.

‘At Nedbank Business Banking, we believe that you need a flexible, resilient financial partner who not only understands your circumstances and aspirations, but who also provides you with relevant solutions and a banking experience that is hasslefree, allowing you to concentrate on what’s most important to you – running your business,’ says Bouwer.

Our bigger-picture banking approach enables us not only to provide you with the solutions you need, but also to give you a bigger-picture view of how our products are connected to create a framework that yields maximum impact across every facet of your business and beyond.

We know that success in business is about partnerships, and that is why we put the building of deep, lasting, value-adding relationships at the centre of everything we do. This means your goals are our goals, your vision is our vision, and your success is our success – while you rely on

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We know that success in business is about partnerships, and that is why we put the building of deep, lasting, value-adding relationships at the centre of everything we do.

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our additional support that is most needed in times of change and uncertainty.

Nedbank has a dedicated public sector team to provide financial solutions that enable the broader mandate of service delivery. ‘We understand that the various spheres of government and their agencies face unique challenges, and are ready and able to draw on the bank’s innovative, seamless and hassle-free products to help build a greater nation,’ says Bouwer.

If you are interested in taking your business to the next level, please contact PJ Bouwer on +27 (0)66 265 4390, or PJB@nedbank.co.za or visit www.nedbank.co.za/business.

ADVERTORIAL

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RELATIONSHIPS AND UNDERSTANDING CLIENT NEEDS ARE KEY, SAYS EXPERT Jordaan Roelofse, Nedbank’s Regional Manager of Retail and Business Banking for Port Elizabeth and Surrounds, explains how new brand values built on the bank’s expertise can benefit Nedbank clients.

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oelofse’s team operates from its offices in Port Elizabeth and is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. In addition, his team is supported by skilled agricultural specialists, who provide specialised advisory services.

Roelofse, as a skilled banker, has been with Nedbank for 23 years and has worked in several roles in the bank. He heads a team of retail and business banking experts with the aim of providing clients with unique business and financial solutions.

‘At Nedbank Retail and Business Banking, we believe you need a financial partner who has a deeper understanding of your business – someone who offers innovative, relevant solutions and who gives you a banking experience that is hassle-free. As money experts, we are committed to doing good, so you can concentrate on what’s most important to you – running your business,’ says Roelofse.

Nedbank has seamless offerings for you, your employees and your household.

Nedbank provides several communities,

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As money experts, we are committed to doing good, so you can concentrate on what’s most important to you – running your business.

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including individual and business clients, with access to products and services through its Workplace Banking offering, which means that both your business and your personal financial needs are managed in one place.

‘We encourage you to see money differently with the bigger-picture approach offered by Nedbank Business Banking, and to take advantage of our one-stop banking service in Port Elizabeth and beyond,’ he says.

To take your business to the next level or for more information about Nedbank’s specialised service offering, call Jordaan Roelofse on +27 (0)83 627 2210, send an email to JordaanR@nedbank.co.za or visit www.nedbank.co.za/business.

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SEE MONEY DIFFERENTLY WITH BIGGER-PICTURE BUSINESS BANKING Sandy Pelser, Nedbank’s Regional Manager of Retail and Business Banking for East London and Surrounds, explains how Nedbank works with communities to deliver banking solutions.

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edbank continues to build on its client-centred strategy aimed at delivering distinctive experiences for businesses in the region.

Innovation and technological advancements, as well as training and development of staff, have been key pillars in achieving the bank’s objectives. At the core of Nedbank’s offering in the Eastern Cape is a relationship-based model, with a business manager dedicated to your business as the key entry point into the bank.

Having worked for the bank for 34 years in various leadership roles, Pelser received the Regional Business Woman of the Year award in the Corporate Category in 2018, in recognition of her contribution to commerce in the Eastern Cape. Operating from offices in Cedar Square, Pelser is supported by six skilled business managers ready to take your business to the next level.

Pelser says the bank encourages its clients to see money differently with the biggerpicture approach that Business Banking offers. ‘This is an additional benefit of banking with Nedbank Business Banking

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… an additional benefit of banking with Nedbank Business Banking means that your business and your personal financial needs are managed in one place through its Workplace Banking offering.

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means that your business and your personal financial needs are managed in one place through its Workplace Banking offering. Because business owners and their businesses are very often financially dependent on each other, our client service teams now also offer individual banking solutions to them and their staff, because we already know and understand their needs,’ she says.

To take your business to the next level or for more information about Nedbank’s specialised service offering, call Sandy Pelser on +27 (0)83 628 9897, send an email to SandyP@nedbank.co.za or visit www.nedbank.co.za/business.

ADVERTORIAL

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USING OUR MONEY EXPERTISE TO HELP CLIENTS Sylvester Funani, Nedbank’s Regional Manager of Retail and Business Banking in Mthatha, explains how new brand values built on the bank’s expertise can benefit Nedbank clients.

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ell-known music personality Funani has been with Nedbank for 15 years and has worked in several roles.

Operating from offices at Nedbank Mthatha Plaza Branch, Funani says the team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. His team is also supported by skilled agricultural specialists, who provide specialised advisory services to clients.

Nedbank’s goal to have all service offerings and business and consumer products managed under one regional structure makes it easier to deliver on its new brand proposition of helping its clients see money differently.

‘We look forward to continuing our relationships with our valued existing clients, and to offering our value proposition to new clients as well. At the core of our offering in Business Banking is a relationshipbased model, with a business manager dedicated to your business as your key entry point to the bank,’ says Funani.

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At the core of our offering in Business Banking is a relationship-based model, with a business manager dedicated to your business as your key entry point to the bank.

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‘It forms part of our purpose at Nedbank to use our financial expertise to do good for individuals, families, businesses and society,’ he says.

To take your business to the next level or for more information about Nedbank’s specialised service offering, call Sylvester Funani on +27 (0)83 569 2326, send an email to SylvesterF@nedbank.co.za or visit www.nedbank.co.za/business.

ADVERTORIAL

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MONEY EXPERTS BRINGING 21ST-CENTURY BANKING TO THE EASTERN CAPE COMMUNITY Emile Bester, Nedbank’s Provincial Sales Manager for the Eastern Cape, says that a deep connection with the community is what underlies the Eastern Cape team's personal and professional values.

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ased in each community, our teams have a thorough understanding of the local economy and a genuine interest in the success of each client. We believe that our role goes beyond providing banking solutions and we play an active role in empowering the communities in which we operate.’

Bester says that, as money experts who do good, Nedbank strives to empower the people who drive the Eastern Cape economy by saving them time and money, as well as helping them manage their money better through the bank’s Workplace Banking solution. 'We help them save time by providing onsite assistance from our dedicated teams, and we help them save money through our preferential banking packages and our award-winning Financial Fitness and Consumer Education programmes. These help them manage

their money better by providing budgeting and money management training, equipping their staff to deal with everyday money management challenges better.'

And the innovative banking journey continues, ensuring greater value for clients. Our market-leading Money app

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Nedbank strives to empower the people who drive the Eastern Cape economy by saving them time and money, as well as helping them manage their money better …

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allows clients to manage accounts and investments, make payments and set savings goals and budgets from their smartphone. The Money app also allows clients to make instant payments to anyone on their smartphone’s contact list, even if the recipient is not a Nedbank client.

Bester adds that working with communities is entrenched in the bank’s values through community development, skills development, education and job creation, as well as environmental conservation.

If you are interested in taking your business to the next level and would like more information about Nedbank’s specialised service offering, please call Emile Bester on +27 (0)10 235 7784, send an email to EmileBe@nedbank.co.za or visit www.nedbank.co.za.

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SOLUTIONS FOR SMALL BUSINESS AIMED AT CREATING JOBS AND GROWING THE ECONOMY Nedbank’s Provincial Manager of Small Business Services, Andisa Sikwebu, explains how Nedbank is committed to partnering with businesses for growth.

Nedbank has built a solid reputation as a bank for small businesses through initiatives such as SimplyBiz.co.za, The Essential Guide for Small-business Owners, business registration services and free small-business seminars – all geared to

support small and medium enterprises.

SimplyBiz.co.za is a free-to-join networking portal designed especially for small businesses. It helps them improve their business administration skills, keep up with the latest trends, network with other small businesses and share ideas. The Essential Guide helps entrepreneurs to be better prepared for engagements with the bank to avoid common mistakes and be set up for success from the start, while our business registration services allow you to

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SimplyBiz.co.za is a free-to-join networking portal designed especially for small businesses.

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register your business online through SwiftReg and open a business account online in one seamlesst process.

‘Our experts are available to provide all the support you need when starting off.

Nedbank offers simple, affordable banking solutions and value-added services to get you and your business going,’ he says.

If you want to tap into our small-business expertise to reach your business goals, get in touch with Nedbank’s Small Business Services. Call Andisa Sikwebu on +27 (0)72 984 9645, send an email to AndisaS@nedbank.co.za or visit www.nedbank.co.za/business.

Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

SPO5985

‘S

mall businesses are the mainstay of the economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the small-business sector. Over and above our Small Business Services solutions, we provide small-business owners with support that goes beyond banking – freeing up their time to truly focus on running their businesses,’ says Sikwebu.

OVERVIEW

Agriculture and agri-processing A Wild Coast Special Economic Zone is planned.

Spekboom. Image: Wikipedia

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etting small-scale farmers connected to agri-processing value chains is a major goal for agricultural policy-makers in the Eastern Cape.

The creation of a Special Economic Zone (SEZ) on the Wild Coast with a focus on agri-processing is part of a plan to achieve this. If farmers have access to the processing and production of products from meat, milk, wool and leather, greater value will be created and more jobs will become available.

Agri-parks situated strategically around the province support the addition of value: these have been developed at Lambasi, Ncorha, Sundays River Valley, Butterworth, Matatiele and Sterkspruit-Senqu.

The Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) has several programmes to support small-scale farmers.

Sixteen feedlots have been established for livestock farmers. Berlin Beef, a joint government and private-sector export-oriented venture, aims to support transformation by supporting 200 black livestock farmers to participate in the business.

Rural Enterprise Development (RED) hubs are a key plank in the strategy of the DRDAR to promote food security and employment creation. Small-scale farmers are supplied with equipment, infrastructure and training to help them engage with the mainstream economy.

A farming incubator supported by the Thrive Fund of South African Breweries uses its R190-million loan book to support small-scale farmers in seven provinces. FarmSol provides loans and technical support helps farmers get access to value chains. SAB gets its ingredients for beer (barley, hops and maize) from FarmSol beneficiaries.

The Eastern Cape Development Corporation (ECDC) supports agri-processing through loans and equity arrangements: projects that have received financial support include aquaculture, the production EASTERN CAPE BUSINESS 2020

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Sector Insight Spekboom and cannabis hold great potential. of dietary fibre from pineapples and bamboo products. 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.

Addo Elephant National Park is home to a great concentration of “spekboom”, the world’s most efficient converter of carbon dioxide. Elephants love to eat it, but it also has become the plant of choice in carbon swops.

An international airline will enter a partnership with a game reserve, for example, whereby the game reserve will plant several thousand stems. In return, the airline gets carbon credits.

The National Woolgrowers Association of SA (NWGA), the country’s main producer organisation, is based in Port

OVERVIEW BANDIT – EXPERIENCE THE BEST OF BOTH WORLDS First-world technology and quality combined SABS-approved roadworthy trailers built at Africa with African simplicity. The main woodchipper Biomass Company in Worcester, South Africa. unit is manufactured by Bandit Industries, Inc. Engine-powered woodchippers are fitted with 35-plus years’ experience with Tier 3, South African standard, diesel or in innovation and international petrol engines, depending on the woodchippers’ research. These units specification or client’s preference. Electric and are shipped to PTO options are also available in various Bandit South Africa models. The add-ons are specifically handpicked w h e r e t h e y to give you the best setup and will provide you with are fitted on a well-balanced woodchipper that will outperform most other chippers in Africa.

www.abc.co.za Elizabeth, as is Cape Wool SA, which used to be known as the South African Wool Board.

The NWGA has a simple motto: “more sheep: more wool” which it tries to achieve through its Production Technology Services which is offered to a membership base of 4 500 commercial and 20 000 communal members.

Cape Wools SA is the industry representative of the broader industry including processors, brokers, producers and traders.

Rich in assets 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 of the Eastern Cape. The bigger dairies include Coega Dairy which was founded in 2011 and is situated in the Coega SEZ. It produces the brand Coastal, sells milk to all parts of South Africa and manages the Famous Brands Cheese Company.

Small-scale dairy farming presents an opportunity to

develop the industry in the former homeland areas, especially in products such as milk powder, speciality cheeses and long-life milk.

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

The Eastern Cape is the country’s second-largest producer of citrus fruit. Oranges make up the vast majority of citrus products. 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 maca-damia nut sector is growing. The Eastern Cape Rural Devel-opment Agency (ECRDA) has partnered with a community to plant the popular nut at Ncera in the Tyume Valley north of Alice.

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

Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major beverage manufactur-ers in Port Elizabeth and Distell has a bottling plant in the city. Sovereign Foods in Uitenhage is the country’s fourthbiggest producer of poultry. ■

Online Resources Eastern Cape Rural Development Agency (ECRDA): www.ecrda.co.za FarmSol: www.farmsol.co.za Milk Producers Organisation: www.mpo.co.za Mohair South Africa: www.mohair.co.za

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EASTERN CAPE BUSINESS 2020

OVERVIEW

Special Economic Zones and ports The gas and the maritime sectors are gaining momentum.

MV TITUS on her maiden voyage heads into the Port of East London. Image: Transnet National Ports Authority

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he Eastern Cape’s two Special Economic Zones play an important role in attracting investors to the province. Located in East London near the port and at the deepwater port of Ngqura 20km north of Port Elizabeth, the East London Industrial Development Zone (ELIDZ) and the Coega SEZ provide the infrastructure that will allow the region to expand and diversify its economy.

As of 2019, the Coega SEZ has 45 operational investors who have collectively invested more than R9.9-billion. This includes the first phase of one of the most consequential investments, that of Chinese automotive manufacturer Beijing International Automotive Corporation (BAIC). The total investment by BAIC will total R11-billion and significantly add to the province’s already strong reputation for excellence in the automotive sector. Both SEZs have areas dedicated to automotive and automotive components manufacture.

The Ngqura port was built to handle containers, both from within South Africa and as a transhipment base for international containers, to handle bulk commodities and to act as a port to serve the Coega SEZ. In July 2019 the Coega Development Corporation (CDC), operator of the Coega SEZ, announced that 18 new investors had invested R2.6billion in the zone during the 2018/19 financial year. For the 2019/20 period, the CDC created 15 934 jobs. Since 1999 that figure is 120 990.

Sectors in which investment was received include: EASTERN CAPE BUSINESS 2020

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Sector Insight Coega SEZ received 18 new investments in 2019.

• Aquaculture • Renewable energy • Copper smelting and steel rail wheel manufacture • Agri-processing • Automotive (commuter bus assembly) • Chemical engineering • Pharmaceutical.

Logistics, fibre-optic cabling, PVC compound manufacture and tyre recycling were other confirmed ventures. At the ELIDZ, recent investments include a diamond cutting and polishing company and a condom manufacturer.

OVERVIEW While the variety of investors at both SEZs continues to grow (Coega has 14 distinct business zones), developments in the Oceans Economy and the oil and gas sector are showing the greatest promise.

An established market for Liquefied Natural Gas (LNG) exists within the Coega SEZ and now that national government has stated that the SEZ could be the site of an LNG plant, the CDC and the Eastern Cape Provincial Government are preparing a Gas Market Analysis to enhance Coega’s readiness for an expected increase in gas use.

The existing 342MW Dedisa Power Peaking Plant at Coega already has environmental authorisation for a 400kV transmission line between the plant site and the Dedisa substation which reduces costs for future investors.

In 2019 a draft scoping report was prepared for an integrated LNG terminal and gas-topower plant.

Imported LNG would be used as feedstock initially, while exploring local sources. Drilling off the southern coast has revealed vast resources in the Brulpadda field in the Southern Outeniqua basin. If some of this gas could be recovered, the two SEZs on the Eastern Cape coast would become critical to its utilisation.

Activity in the oil and gas sector would in turn stimulate the maritime sector. The potential of the Oceans Economy is already receiving a lot of attention in South Africa, and Nelson

Port news in the Eastern Cape • L egacy Marine, a Port Elizabeth boatbuilder, has successfully used the Port of Ngqura to launch a number of new vessels.

The company is now able to tackle bigger boats because there is no height restriction at the port.

• The Port of East London has set a new record with the docking of Chinese vessel Zhen Hua 8, at 42.3m the widest boat ever to dock at the harbour.

• Transnet National Ports Authority (TNPA) will spend R57.5million refurbishing the Port of East London’s Princess Elizabeth Dry Dock.

• Building is underway at the Port of Ngqura for a liquid bulk tank farm. Oiltanking Grindrod Calulo (OTGC) has the contract to build, own, maintain and operate the facility.

• A fgri, South Africa’s largest agricultural company, has signed a 15-year agreement to upgrade and run the grain facilities at the Port of East London.

Mandela University’s Ocean Campus is one of the leaders. The South African International Maritime Institute (SAIMI) has new headquarters in Port Elizabeth.

Key goals behind the establishment of SEZs are: • to encourage industries to develop in clusters, leading to economies of scale, skills-sharing and easier access for suppliers • to create industrial infrastructure to promote investment • to promote cooperation between the public and private sectors • to use the zones as a launching pad for other developments.

Special Economic Zones are created in terms of the Special Economic Zones Act of 2014 (Act 16 of 2014). The act defines a SEZ as “geographically designated areas of the country that are set aside for specifically targeted economic activities and supported through special arrangements and systems that are often different from those that apply to the rest of the country.”

Incentives include tax breaks from the South African Revenue Service, subsidised interest rates from the Industrial Development Corporation, subsidies for employees earning below a certain level and for training, incentives and grants from the Department of Trade, Industry and Competition (dtic) and from national electricity utility Eskom. The SEZ is also a customs-controlled area. ■

Online Resources Coega Special Economic Zone: www.coega.co.za East London Industrial Development Zone: www.elidz.co.za National Department of Trade, Industry and Competition: www.thedti.gov.za Transnet National Ports Authority: www.transnet.net

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EASTERN CAPE BUSINESS 2020

OVERVIEW

Energy Offshore gas finds could be transformative.

Wind tower blades arriving at the Port of Ngqura.

Image: Keith Arkins.

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lthough the Eastern Cape is making a name for itself as the home of wind power, solar energy and related manufacturing are making a bid for a place in the sun. Scatec Solar has commissioned a plant in Burgersdorp. The 75MW plant has panels mounted on single axes, enabling them to track the sun and optimise electricity generation by a further 20%.

A solar tracking system manufacturer based in Port Elizabeth has achieved a rare level of certification at its purpose-built climate test chamber. PiA Solar has won several contracts for large solar farms in the national Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The East London Industrial Development Zone (ELIDZ) is home to renewable energy manufacturing facilities such as the ILB Helios Solar Panel Assembly.

If recent offshore gas finds in the Southern Outeniqua Basin (Brulpadda) prove as rich as first indications suggest, and if companies can find the money to extract it, the potential to transform the

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Sector Insight Eight renewable energy manufacturers have invested more than R1-billion.

Eastern Cape is enormous. Both the Coega SEZ and the East London IDZ are geared for maritime services and the value chain of the oil and gas sector is complicated and long.

Another possible gamechanger is the decision by national government to name the Coega SEZ as the potential site for a 1 000MW Liquefied Natural Gas (LNG) plant.

OVERVIEW The value to the regional economy of the project is estimated at R25-billion. A 342MW gas-fired power plant (Dedisa) has started operating at Coega, and there are plans to expand this sector.

The Eastern Cape is now home to 15 wind farms. More than half the wind farm projects so far approved in the REIPPPP have been allocated to the province. The Kouga area west of Jeffreys Bay and the Cookhouse/Bedford area about 95km north-west of Makhanda (Grahamstown) represent two wind power hubs, with a collective capacity of 1 185MW. South Africa’s National Development Plan (NDP) requires 20 000MW of renewable energy by 2030 and wind power technology, together with solar photovoltaic, are the two primary methods of reaching that target.

One of the unfortunate side effects of the refusal by national utility Eskom to buy renewable power for two years was the closing down and auctioning off of a wind tower manufacturing plant in the Eastern Cape. DCD Wind Towers was a joint venture between the DCD Group and the Industrial Development Corporation (IDC) at Coega.

The South African Wind Energy Association (SAWEA) has issued a Commitment Statement which noted that the REIPPPP has a “built-in demand for local procurement”, not only offering business opportunities to local companies, but also incentivising the industry to identify and support emerging entrepreneurs.

The rollout of renewable energy has met some resistance in South Africa from constituencies as diverse as coal-truck drivers and advocates of nuclear power. In response, renewable energy advocates cite not just investment figures, but they note how much good work has been done in communities.

Figures released by SAWEA showed shareholding for local communities reached an estimated net income of R29.2-billion over the lifespan of the projects. Some 14 000 new jobs are expected to be created, mostly in rural areas, and more than R30-billion has already been spent on Black Economic Empowerment (BEE) in the construction phase.

Part of the SAWEA Commitment Statement reads, “Our aim over time is to transform and indigenise leadership at all levels in the South African Renewable Energy sector.”

The average lead time in the projects that have so far been approved in the province is two years, with local content averaging out at about 47%. When the projects are complete, R142.9-billion will have been spent on procurement, R65.7-billion of which will be local.

Online Resources IPP projects: www.ipp-projects.co.za National Energy Regulator of South Africa: www.nersa.org.za South African Renewable Energy Council: www.sarec.org.za South African Wind Energy Association: www.sawea.org.za

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Wind projects in the province include Globeleq’s 138MW Jeffreys Bay facility, the 140MW Cookhouse project (African Clean Energy Developments) and two run by Cennergi at Tsitsikamma (94MW) and Bedford (134MW). Resources company Exxaro recently bought out the Indian partner with which it initially partnered to create Cennergi, Tata Power. There are several other projects with capacities ranging from 20MW to 97MW. POWERX has signed up with AKM Foods to supply power to all the KFC outlets in Nelson Mandela Bay. POWERX trades in renewable energy through licences granted to it by the national energy regulatory authority, NERSA. By aggregating power purchases, the company is able to mitigate risk in a way that an individual purchaser may not be able to. POWERX now supplies over 40 national and local customers in Nelson Mandela Bay and its aim is to expand the customer base.

The support of two of South Africa’s biggest institutional investors, the Industrial Development Corporation (IDC) and the Public Investment Corporation (PIC), has been crucial in getting the renewable energy sector off the ground. They have also played a role in helping communities fund their participation in community trusts. According to Business Day, the PIC has so far invested in 16 unlisted projects and its total investment stands at R11-billion. The IDC’s 24 projects are valued at R14-billion and will contribute 1 100MW to the national power grid. ■ EASTERN CAPE BUSINESS 2020

OVERVIEW

Construction and property Student accommodation is a growing subsector.

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he University of Fort Hare is the site of a huge student housing project (above). The second phase of the student village will cost R400-million and is expected to be completed in the course of 2020.

Student accommodation specialists STAG African will create a student centre and postgraduate options, having delivered 610 beds in the first phase. When the project is complete, the university will have the highest ratio of beds to students in South Africa, with a total of 2 047 beds. The project is jointly funded by the European Union, the National Department of Higher Education and Training and the Development Bank of Southern Africa.

STAG African is responding to a national (and continental) trend because one of the fastest-growing segments of the property market is student accommodation. Ambitions to keep making tertiary education more accessible to a broader range of students has been successful since South Africa became a democracy in 1994 and this has created a need for accommodation. The Department of Higher Education and Training estimates that there is a need across South Africa for 250 000 beds for university students.

These factors apply to the province’s other universities such as Nelson Mandela (Port Elizabeth and George), Rhodes (Grahamstown) and Walter Sisulu (four campuses including Mthatha and East London), together with all the TVET colleges.

Fort Hare University recently completed a library building in East London that also serves the students of Walter Sisulu University and EASTERN CAPE BUSINESS 2020

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Sector Insight Social housing is on offer at the Steve Biko Precinct.

UNISA. Construction company GVK-Siya Zama faced some challenges on a constricted site, but delivered basement parking and four levels of offices, boardrooms, study areas and a canteen. The library is on three levels.

The same company was active on the project to rebuild Woodridge College after that institution was devastated by fire in 2016. Another project that required the demolition of buildings was at David Livingstone High School in Port Elizabeth. This R64-million project created a new doublestory classroom block, kitchen and dining hall.

OVERVIEW

Housing Coastal properties almost always attract a premium but a new trend towards “semigration” is further boosting prices.

Semigration refers to families who live in towns like Knysna or George but the bread-winner commutes to Johannesburg.

Towns such as St Francis Bay, Jeffreys Bay and Port Alfred are now becoming the site of primary residences, instead of being exclusively holiday destinations.

A major stimulant in the housing sector is government. In 2019 the Eastern Cape Provincial Government claimed to have built 500 000 houses in the term of office of the administration that started in 2014.

A new housing development in the rural area of Keisk ammahoek attracted funding of R25-million from the Eastern Cape Provincial Department of Human Settlements. Aimed at destitute families, the first phase was conducted in the settlement of Masincedane, and the project will ultimately cater to 1 255 beneficiaries.

Large-scale housing projects often demand unique lighting requirements. The Buffalo City Metropolitan Municipality called in large-area lighting specialists Maritz Electrical for the lighting of its informal settlements. The introduction of LED lighting on 20m masts will provide a measure of security and maximise energy efficiency.

A remarkable transformation has taken place in downtown

Port Elizabeth. The old “Sanlam” building, which used to house one of the country’s most notorious security branch torturers, has been converted into social housing. Together with two other buildings (Mumford House and the Old Mill Building) the area has been named the Steve Biko precinct in honour of the Black Consciousness leader and will offer a heritage aspect in the form of a museum. The room in which Biko was tortured has been preserved as a historical site.

The Qhama Social Housing Institute offers accommodation from R1 200 per month and is targeted at the “missing middle”, people who can’t afford a bond and who don’t qualify for an RDP house. These people are entitled to a housing subsidy.

One of the largest malls to be constructed in South Africa in the new century has made a big impact on the western edge of Port Elizabeth.

With 250 shops, an ice rink and cinemas, the R2-billion Baywest Mall is the first part of what will become the 320ha Baywest City Precinct on the N2. The giant development spurred a R300-million upgrade at Greenacres, the city’s first big mall development which attracted shoppers away from the central business district (CBD) in 1981.

The Mandela Bay Development Agency (MBDA) has transformed the Old Tramway building (below) at the entrance to the Baakens Valley. The MBDA not only moved into new offices in the renovated building but is letting it out as an events venue. Other retail property developments have happened in the valley (including a popular brewery), drawing attention to the potential of Port Elizabeth’s green lung to be even more useful in future. The Baakens River Valley is one of Port Elizabeth’s hidden gems and the MBDA has commissioned studies on how the valley might best be utilised for leisure and new housing without compromising its unique natural features.

A scheme to restructure the yacht basin in the harbour is planned.

A key blockage is the location of manganese storage dumps on the edge of King’s Beach. When those are moved to the Port of Ngqura then the marina development can go ahead. ■

Online Resources Construction Industry Development Board: www.cidb.org.za Mandela Bay Development Agency: www.mbda.co.za Qhama Social Housing Institute: www.qhama.co.za Social Housing Regulatory Authority. www.shra.org.za South African Property Owners Association: www.sapoa.org.za

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EASTERN CAPE BUSINESS 2020

OVERVIEW

Manufacturing Mercedes-Benz and Volkswagen are breaking records.

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n 2019 the Uitenhage plant of Volkswagen Group South Africa created a new production record of 161 954 vehicles, with 108 422 destined for the export market. Sales for the group were also good, with 29 619 new Polo Vivos purchased in the year.

Mercedes-Benz consistently breaks records for the number of cars it exports through the Port of East London via Transnet Port Terminals.

The company is spending about R10-billion to prepare its plant to manufacture the new C-Class. The plant will also become an IT Hub with a focus on data analytics, software development and business analysis. About 90 new jobs will be created.

Home-grown manufacturer of powertrain and catalytic converter assembly systems, Jendamark, pictured, continues to expand. With operations in Germany and India, the company exports to 18 countries.

Continental Tyre South Africa is producing a 19-inch tyre for the first time at its New Brighton facility in Port Elizabeth. The growing sport utility vehicle sector is increasing demand for these tyres, which previously had to be imported. Isuzu SA has completed its consolidation project, with truck and bakkie manufacturing now taking place at its new headquarters in Struandale, Port Elizabeth.

Phase 1 in the construction process of the vehicle assembly plant of Beijing Automotive Group South Africa (BAIC SA) is complete. The total project involves an investment of R11-billion. BAIC expects to be building 50 000 vehicles per year at its site at Coega SEZ by 2022.

The provincial government aims for more diversification in manufacturing and is targeting sectors where the province already has a competitive advantage (such as wool and mohair), is labour intensive,

Online Resources Automotive Industry Development Centre: www.aidc.co.za Coega Development Corporation: www.coega.co.za Eastern Cape Development Corporation: www.ecdc.co.za East London Industrial Development Zone: www.elidz.co.za

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Sector Insight Assembly systems manufacturer Jendamark has expanded to India and Germany. will have a broad impact and has low barriers for SMME entry.

Sectors targeted include: agriprocessing and food; timber; tourism; construction; chemicals; energy and mariculture.

First National Battery, a Metair Group company, has one factory at Fort Jackson (plastic components) and two factories in East London, one for automotive batteries, the other for industrial batteries.

Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Party in Port Elizabeth and Gately Township, East London. The company recently spent R150million on doubling capacity at the Port Elizabeth plant.

Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Por t Elizabeth. East London hosts Johnson & Johnson’s finance, operations and research and development divisions.

A s p e n P h a r m a c a r e ’s R1-billion specialised product facility at Port Elizabeth will add 500 jobs to the existing staff of 2 000. The new plant will make products for chronic conditions.

Annual production of about 3.6-billion tablets is planned. ■

OVERVIEW

Education and training A new medical school is to be established.

T

he Eastern Cape Provincial Government has announced that a medical school has been allocated to the province.

Nelson Mandela University (NMU) will start offering classes in 2021. The Missionvale campus, near to the Dora Nginza Provincial Hospital, will be the site for the school. A school for vets is being considered for Fort Hare University.

At the other end of the age scale, early childhood development (ECD) is to become part of the standard basic education system. It is believed that this will help to improve results of school pupils.

Among the important work being done at Rhodes University’s new Biotechnology Innovation Centre (pictured) is research on the basic and applied sides of stem cell biology. Helping pregnant women in rural areas is another focus: a cellphone app will send colour pictures of test strips to diagnostic centres, saving the patient a long and difficult journey to hospital.

The University of Fort Hare is leading three innovative studies into biogas including a project investigating compressed biogas for public transport. The South African National Energy Development Institute (SANEDI) is working with Fort Hare on a pilot scheme of biodigesters for households.

Walter Sisulu University (WSU) and the University of South Africa (UNISA) offer vocational training (diplomas) and academic programmes (degrees).

There are several examples in the Eastern Cape of collaboration between the manufacturing sector and educational institutions.

General Motors SA has assigned R3.6-million to a Chair in Mechatronics at NMU, which offers a Bachelor of Engineering in Mechatronics, covering electronics, mechanical engineering and computer-aided design. Volkswagen supports the International Chair in Automotive Engineering at NMU. Rhodes University’s Centre for Environmental Water Quality, within the Institute for Water Research, is sponsored by Unilever. The NMU Institute of Chemical Technology commercialises research through a body called InnoVenton and has several clients in the private sector.

Another NMU body, eNtsa, supports the manufacturing sector through research in areas such as automotive, power generation

Online Resources Eastern Cape Department of Education: www.ecdoe.gov.za Rhodes University Biotechnology Innovation Centre: www.ru.ac.za/biotech/ Technology Innovation Agency: www.tia.org.za

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Sector Insight Early childhood development will soon be offered to all pupils. and petrochemicals. eNtsa is supported by the Technology Innovation Agency.

The Provincial Government of the Easter n Cape is supporting skills training in the maritime sector through the Maritime Youth Development Programme.

Image: Rhodes University The Eastern Cape has eight Technical and Vocational Education Training ( T VET ) 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. ■ EASTERN CAPE BUSINESS 2020

LISTING

LISTING

Eastern Cape Provincial Eastern Cape Government Provincial Government

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

Office of the Premier of the Premier Premier:Office Oscar Mabuyane PhumuloBuilding, Masualle Office ofPremier: the Premier State House,Avenue, IndependentBhisho Avenue, 5605 Independence 56056644 | Fax: +27 86 681 9493 Tel: +27 Bhisho 40 609 +27 40 609 6626 Website:Tel:www.ecprov.gov.za

Department of Public Works Department of Human Settlements MEC: Babalo Madikizela MEC: Helen Sauls-August 5 Qasana Bldg, Independence Avenue, Bhisho 5605 Phillip Frame Waverly Park, Chiselhurst, East London Tel:31-33 0800 864 951.Road, Website: www.ecdpw.gov.za Tel: +27 43 711 9777

Department of Rural Development Fax: +27 43 711 9785 and Agrarian Reform Website: www.ecdhs.gov.za MEC: Nomakhosazana Meth Department of Roads and Public Works Dukumbane Bldg, Independence Ave, Bhisho 5606 MEC: Thandiswa Marawu Tel: +27 40 602 5006 | Fax: +27 40 635 0604 5 Qasana Building, Independence Avenue, Bhisho 5605 Website: www.drdar.gov.za Tel: +27 40 609 4648

Fax: +27 40 639 1419

Website: www.ecprov.gov.za Department of Cooperative Governance and Traditional Affairs Department of Cooperative Governance MEC: Xolile Nqata and Traditional Affairs Tyamzashe Room 2124, 2nd Flr, Bhisho 5605 MEC: Bldg, Fikile Xasa Tel: + 27Tyamzashe 40 609Building, 5656/8Room | Fax: 2163 2124,+27 2nd 40 Floor,639 Bhisho 5605 Website:Tel:www.eccogta.gov.za +27 40 609 5788/5789

Fax: 086 298 5598of (SA)Safety and Liaison Department Website: www.ecdpw.gov.za MEC: Weziwe Tikana Arches Building of 7, Taylor King Williams Town 5601 Department Rural St, Development Reform Tel:and +27Agrarian 43 605 6800 | Fax: 086 558 0224 MEC: Mlibo Qoboshiyane Website: www.ecprov.gov.za

Fax: +27 40 639 2135 Department of Economic Development, Website: www.eclgta.ecprov.gov.za Environmental Affairs and Tourism MEC: Mlungisi Mvoko of Economic Development, Department Environmental Affairs and Tourism 2nd Flr, Beacon Hill, Hockley Cl, King Williams Town 5600 MEC: Sakhumzi Somyo Hockley Close, Williams Tel: + 272nd 43Floor, 605Beacon 7000Hill,| Fax: +27 43King 605 7303Town 5600 +27 43 605 7006/7216 Website:Tel:www.dedea.gov.za

Dukumbane Building , Independence Avenue, Bhisho 5606

Department of Social Development Tel: +27 40 609 3472 MEC: Fax:Siphokazi +27 40 636Lusithi 3462 Website: www.drdar.gov.za Phalo Ave, 5th Flr, Dukumbana Building, Bisho 5605 Tel: +27 43 605 5419 | Fax: +27 43 605 5000 Department of Safety and Liaison Website: www.ecdsd.gov.za

Fax: +27 43 605 7306

Department of Education Website: www.dedea.gov.za MEC: Fundile Gade Department of Education Steve Tshwete Education Bldg, Zwelitsha Zone 6, MEC: Mandla Makupula Zwelitsha 5608 Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha Tel: +27 40 608 4200 | Fax: +27 40 608 4040 Tel: +27 40 608 4202 Website: www.ecdoe.gov.za

MEC: Weziwe Tikana

Department Sports, Recreation, Stellenbosch Park, of Flemming St, Schornville, Kingand William’s Town 5601 Arts Culture Tel:Fezeka +27 43 604 7414 MEC: Nkomonye-Bayeni Fax: 086 298 5598 5 Eales St, King Williams Town 5600 Website: www.ecprov.gov.za Tel: +27 43 604 4101 | Website: www.ecsrac.gov.za

Fax: +27 40 608 4247

Website: www.ecdoe.gov.za Department of Health MEC: Sindiswa Gomba Department of Health Dukumbane Ave, Bhisho 5605 MEC: DrBldg, PumzaIndependence Dyantyi Tel: +27 Dukumbane 40 608 1117 | Fax: +27 40 Avenue, 608 1118 Building, Independence Bhisho 5605 Website:Tel:www.echealth.gov.za +27 40 608 1114

Department of Social Development

Department of Transport MEC: Nancy Sihlwayi MEC: Weziwe Tikana Cnr Hockley and Hargreaves Streets, Beacon Hill, Flemming St,Town Schornville, King Williams Town 5601 King William’s 5600 Tel:Tel: +27 7400 | Fax: 086 298 5598 +2743 43 604 605 5210 Website: Fax: +27 www.ectransport.gov.za 43 605 5472

Fax: +27 40 608 1118

Department of Human Settlements Website: www.echealth.gov.za MEC: Nonkqubela Pieters 31-33 Phillip Frame Rd, Waverly Park, Chiselhurst, EASTERN CAPE BUSINESS 2018 East London 5247 Tel: + 27 43 711 9901/2/3 | Fax: +27 43 711 9797 Website: www.ecdhs.gov.za EASTERN CAPE BUSINESS 2020

Website: www.ecdsd.gov.za

Provincial Treasury MEC: Mlungisi Mvoko 60 Provincial Treasury, Tyamzashe Bldg, Bhisho 5605 Tel: +27 40 353 9944 | Fax: +27 40 101 0731 Website: www.ectreasury.gov.za

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