31 minute read
Manufacturing
TFG plans to double manufacturing output.
TFG, whose South African brands include TotalSports, Markhams and Foschini, has a five-year plan to double its manufacturing capacity.
Having purchased Prestige Clothing Maitland and Prestige Clothing Caledon in 2012 and spent R75-million on expanding the factory in Caledon in 2017, TFG now plans to significantly increase the percentage of locally-made clothing items from the current level of 35% to 55%. This expansion should lead to more jobs within the group, which expanded in 2020 with the purchase of Jet from Edcon.
The Foschini Group is one of several South African retailers which have their head offices in Cape Town. Others include Woolworths, Truworths and Cape Union Mart.
The Manufacturing and Competitiveness Enhancement Programme (MCEP) of the Department of Trade, Industry and Competition (the dtic) has disbursed grants which have resulted in 230 000 jobs being sustained. Because of the Clothing and Textile Competitiveness Programme, that sector currently now employs around 95 000 workers, contributing 8% to manufacturing GDP and 2.9% to overall GDP. In the leather sector 22 new factories have been opened, supporting 2 200 jobs.
In the Western Cape, this revival is reflected in member companies of the Cape Clothing and Textile Cluster hiring 35% more staff in four years. About 23 600 people are employed in the province and exports from the Cape amounted in 2017 to R4.4-billion with sales up by 34% above inflation.
The K-Way brand of Cape Union Market has successfully weathered several storms. The Ottery factory, which houses more than 250 employees, has produced more than 311 000 K-Way Felixx Softshell Jackets since 2012.
The textiles sector makes up about 7% of manufacturing economic activity, about the same as furniture. A diverse manufacturing sector contributes 15% to the Western Cape’s GDP with the two biggest contributors within that being fuel, petroleum, chemicals and rubber products (26%) and food, beverages and tobacco (25%). Wood and wood products (11%) and metal products, machinery and household appliances (10%) are the next two biggest subsectors (Wesgro).
The Atlantis Special Economic Zone, which is specialising in green tech, has already attracted nearly R700-million in privatesector investment. Goals for the green sector include the creation of 1 200 direct jobs in a 20-year period. About 70% of South Africa’s manufacturing in renewables is happening in the Western Cape.
The decision in 2019 of ArcelorMittal to close its Saldanha Bay steel mill is a big blow to the manufacturing capacity of the province. With iron ore delivered from the Northern Cape Province, the mill was producing as much as 1.2-million tons of steel per year. About 900 workers have lost their jobs.
Invest Cape Town reports that the city’s boatbuilding industry is the second-largest producer of recreational catamarans in the world, after France. The city’s companies export 80% of the products that they produce and attract a positive trade balance of approximately $73-million annually. Boatbuilding exports have grown by 20.5% annually year-on-year since 2014 in Cape Town (Quantec, 2019).
Robertson & Caine’s facility in Woodstock produces three boats a week for the international market. With a staff complement of 1 350, the company is a leader in power catamarans and sailing catamarans.
SECTOR INSIGHT The closure of the Saldanha Bay steel mill is a blow to the sector.
Prestige Clothing factory. Image: TFG
Nautic Africa makes larger vessels, including patrol, defence, oil and gas platform and commercial vessels. Damen Shipyards Cape Town delivers vessels to public entities such as the Robben Island Museum and the South African Navy and private companies such as Smit Amandla Marine and De Beers Marine. The Whisper Boat Building Academy is located at the False Bay TVET College.
A new investor has breathed new life into the manufacturing business of Hayden Cobra. The maker of replica cars is operating out of Montague Gardens and building for the local and export markets, primarily the US and the Middle East. Three models are manufactured: the Classic 427, the Evo and a Cobra with an electric drive which promises “instantaneous torque”.
Food and beverages
The combination of excellent and plentiful agricultural produce, good manufacturing capacity and a skilled workforce give the Western Cape a competitive advantage in the food and beverages sector.
The wheat-growing areas of the Swartland hosts several mills such as Sasko’s facility in Malmesbury. Bokomo has several manufacturing facilities in Atlantis, Epping, Ndabeni near Pinelands, Worcester and Bonnievale. Safari Vinegar is based in the Strand and there are two Heinz manufacturing plants at Wellington and Atlantis. Lamberts Bay Food sources potatoes from all over South Africa, but its proximity to the potato-growing Sandveld region is helpful.
Two of the biggest chicken-processing facilities are located on the N7 highway (Tydstroom) and on the N1 (Rainbow Chickens). The Western Cape has about 16 000 commercial pork sows and produces a quarter of South Africa’s milk.
Willards has a factory in Goodwood, in nearby Parow there is a Simba factory and local chip and snack manufacturer Messaris, which has been in operation since 1898, has a facility in Elsies River. Nestlé produces condensed milk and milk powder in Mossel Bay and canned pet food in Cape Town. Tiger Brands makes mayonnaise in Bellville and has also invested heavily in its prepared meals plant in Cape Town.
SABMiller’s Newlands brewery is one of the busiest in the country. Coca-Cola bottler and distributor Peninsula Beverage has three plants – at Parow, Athlone and Vredendal on the West Coast, and employs 1 300 people. ■
ONLINE RESOURCES
Cape Clothing and Textile Cluster: www.capeclothingcluster.org.za Invest Cape Town: www.investcapetown.com Wesgro: www.wesgro.co.za Whisper Boat Building Academy: www.falsebaycollege.co.za
Construction and property
The eastern edge of the Cape Town CBD is to be transformed.
SECTOR INSIGHT Building at Conradie Park has begun.
Artist’s impression, Conradie Park. Image: Concor
Plans for a large development on the corners of Heerengracht Road and Christiaan Barnard Street are going ahead, despite the general economic slowdown due to Covid-19. The mixeduse Harbour Arch project stands on the eastern entrance to
Cape Town’s CBD on a 5.8ha site which has been underutilised and unattractive for decades.
The Amdec Group’s R15-billion development means to change that with housing, hotels, offices and restaurants which will densify the city and provide the CBD with an eastern gateway. The development could spark further work on the Culemborg site, which has often been mentioned in plans, as an Olympic and soccer World Cup site, for example.
The Provincial Government of the Western Cape’s “Better Living
Model” aims to deliver 3 602 residential units in an affordable, mixeduse and residential-led development on the site of the old Conradie
Hospital on the edge of Pinelands. The integrated, mixed-income housing development (pictured) aims to reverse the spatial planning that was put in place under apartheid. With the state putting in the bulk infrastructure, costs for developers are significantly reduced. The quid pro quo is that the developer must set aside a certain number of housing units (49%) to grant-funded housing.
The Belhar CBD is the site of 4 188 assorted residential units, including student accommodation, social housing units and military veterans’ units. Between June and December 2019, the provincial government handed over 1 144 title deeds to beneficiaries in the province.
An article in Visi in 2020 heralded the arrival of Art Deco accommodation in central Cape Town at the opposite end of the affordability scale. Described as a “striking new vessel” that has “dropped anchor among the venerable advocates’ chambers that line Cape Town’s Keerom Street”, Tuynhus houses 43 small apartments and four mini-penthouse suites. It is designed by Robert Silke, of Robert Silke & Partners.
FNB, which publishes a regular property barometer, has done an in-depth analysis of previous crises to understand the post-Covid property market. According to John Loos, a property strategist at FNB Commercial Property Finance, the most vulnerable sector is likely to be Retail Property. Smaller neighbourhood shopping centres, with more essential items and greater convenience, will be less vulnerable.
The lockdown accelerated the trend for people to work from home, and so the Office Property sector will come under pressure. Many companies will be reducing office space, but this is merely a speeding up of an existing trend. ■
ONLINE RESOURCES
Cape Town Transport and Urban Development Authority: www.tda.gov.za Construction Industry Development Board: www.cidb.org.za SA Institute of Architects: www.saia.org.za
Tourism and events
Operators are hoping the Lions will roar.
Ashade under one-million passengers passed through Cape Town International Airport in 2019, a 2% increase over the previous year, which had grown by 0.8% from the year before.
In 2019, Cape Town Tourism projected that the value to the Western Cape of the cruise-ship industry between 2017 and 2027 would be about R220-billion. And then Covid-19 hit.
Major investments have been made in the Cruise Ship Terminal, near the Cape Town International Convention Centre (CTICC), and the Cape Town Air Access programme. Air Access created more than 750 000 new inbound seats between its inception in 2015 and 2020, adding something like R6-billion to the provincial economy. In 2019/20 the CTICC secured 52 conferences with an estimated economic impact of R2.3-billion.
Unfortunately, the conferences and events sector is likely to be hit as badly as the cruise-ship industry.
Many tourism operators in the Western Cape are pinning their hopes on the incoming rugby tour in the winter of 2021 by the British and Irish Lions, if Covid-19 allows. The South African Rugby Union expects 37 000 fans to follow the team from Britain, more than 13 000 jobs to be created and a tax benefit to South Africa to accrue of about R450-million.
Following the major drought experienced by the Western Cape, the Westin Cape Town has taken steps to reduce its dependence on the municipality for water. The hotel’s position on reclaimed land in the CTICC precinct of the Foreshore means that about 1.2-million litres of seawater have to be taken out of the basement every day. This water is converted into 441 000 litres of clean water by reverse osmosis which saves more than 100-million litres of municipal water annually. The Westin has also created an organic roof garden, from which it supplies its restaurants with vegetables.
The Western Cape Provincial Government wants to promote education in the arts. Based on research which found that 6% of employment in South Africa is in the cultural sector, the Western Cape will expand the traditional STEM emphasis to include two additional A’s: Arts and Agriculture. There are 60 000 people employed in the culture sector in the province.
The opening of the R500million Zeitz Museum of Contemporary Art in the Victoria & Alfred Waterfront in Cape Town has made a big impact. With a footfall of 24-million visitors going through the Waterfront every year, the Zeitz is well located to attract good crowds. The conversion of the old grain silos, which created 6 000m² of gallery space, was paid for by the owners of the Waterfront, Growthpoint Properties and the Public Investment Corporation. ■
ONLINE RESOURCES
Cape Nature: www.capenature.co.za Cape Town Tourism: www.capetown.travel Garden Route and Klein Karoo: www.visitgardenrouteandkleinkaroo.com George Tourism: www.georgetourism.org.za Plettenberg Bay: www.plett-tourism.co.za SECTOR INSIGHT Income from air travellers and cruise ships disappeared in 2020.
The Westin Cape Town’s organic rooftop garden.
Education and training
Tertiary campuses in Mitchells Plain and Khayelitsha are growing.
AR386-million campus is to be built in Mitchells Plain to serve that suburb, Strandfontein and surrounding areas. False Bay TVET College has been offering classes in part of a primary school for some time but the transfer of land by the City of Cape Town in June 2020 allows the college to start the design phase for the new campus in the heart of Mitchells Plain. It will eventually cater for more than 5 000 students.
The new Mitchells Plain Campus will complement the College’s existing campus presence in Khayelitsha, Fish Hoek, Westlake and Muizenberg. Programmes will be offered in tourism, creative media, business BPO, wholesale and retail and the services sectors. Bridging classes will also be presented for young people who do not meet entry requirements.
At the same time, work is underway on the upgrade and expansion of the Swartklip Campus, pictured, which lies on the border of Mitchells Plain and Khayelitsha. Funding for the new campus, which will have an engineering focus, came from the National Skills Fund. The plan is to accommodate 3 000 students which would contribute to the National Development Plan’s goal of producing 30 000 skilled artisans per year. The College has a lease agreement with Airports Company South Africa to use the existing buildings at the old Denel Site.
Building has also been happening in the school sector: three new schools were built in 2019/20 and two replacement schools were opened in Crestway and Phillipi. The Provincial Government’s Department of Transport and Public Works started work on 76 new Grade R and Expansion classrooms at 22 schools, catering for about 2 800 pupils. A further 197 mobile classrooms were delivered.
The province’s I-CAN centres allow for public access to digital skills programmes, WiFi and business services. The centres are divided into zones (including Create, Study and Learn) and printing, graphic design and laminating services are available.
Online learning is one of the world’s fastest-growing sectors and the investment of $3-million by Construct in a new Cape Town office is evidence that the trend has come to the Western Cape. The Construct Learning Lab supports universities in Boston, Doha and Oxford as well as companies and government bodies. The company expects to increase its staff complement by 150 over three years.
Two Western Cape research institutions have made large investments in research infrastructure. A Biomedical Research Institute is being built by Stellenbosch University at a cost of R1-billion and the University of Cape Town plans to move its Neuroscience Institute, which it runs in partnership with Groote Schuur Hospital, into a new building. An innovation laboratory, clinical and training spaces and an innovation space where researchers can interact are part of the plans for the new facility.
The University of Cape Town has more than 21 500 students, 720 permanent staff and 39 A-rated researchers (40% of South Africa’s total). Stellenbosch University is linked to Stellenbosch’s growing reputation as a technology hub. The University of the Western Cape is home to several national research bodies.
These institutions, plus the Cape Peninsula University of Technology, produce approximately 12 000 science, technology, engineering and mathematics graduates every year and host 11 000 students from other African countries.
SECTOR INSIGHT A Centres of Specialisation Programme is targeting priority skills.
University education is available in George through the Nelson Mandela University (NMU): Saasveld is home to the School of Natural Resource Management and the York Street Campus delivers courses in business and social science, accounting and business management.
SARETEC offers industryspecific training in a new economic sector. The South African Renewable Energy Technology Centre is managed by the Cape Peninsula University of Technology (Bellville campus) but it collaborates with several other institutions and private companies.
Unisa, the country’s biggest distance learning institution, has a campus in Cape Town and a service centre in George.
Airports Company SA (ACSA), the City of Cape Town and the False Bay TVET College in Westlake have combined to offer residents of Blikkiesdorp a chance to learn skills in brick-laying, house-building, scaffolding and health and education. ACSA is investing R5-million in the 12-month certification project and the Construction Education and Training Authority (CETA) will channel funds to False Bay College for training.
Centres of Specialisation Programme
A Centres of Specialisation Programme has been introduced by the Department of Higher Education and Training to tackle priority skills.
The Swartklip campus mentioned above will focus on training riggers and mechanical fitters. With the oil and gas sector expected to grow rapidly in the near future, trained artisans can expect to find employment quickly. The College of Cape TVET is concentrating on plumbing and automotive motor mechanics.
The College of Cape Town has seven campuses from the city centre to Guguletu and Wynberg. A new welding academy in Thornton was opened with support from the merSETA (Manufacturing, Engineering and Related Services SETA). Northlink College is in the northern suburbs of Cape Town.
Outside of the Cape metropole, Boland College looks after Stellenbosch, Worcester, Paarl and Caledon, while the Southern Cape College covers a wide area, from George to Beaufort West. The West Coast College also has a big catchment area. Boland College participates in an Expanded Public Works Programme (EPWP) run by the South African Chefs’ Association. ■
ONLINE RESOURCES
Apprenticeship Game Changer: www.westerncape.gov.za Centres of Specialisation: www.dhet.gov.za SA Renewable Energy Technology Centre: www.saretec.org.za TVET colleges: www.tvetcolleges.co.za
New BPO Academy Launched by the College of Cape Town
The College of Cape Town’s Gardens Campus has launched Sub-Saharan Africa’s first Business Process Outsourcing (BPO) Academy. The suburb of Gardens is a hub for the Cape Town creative industry, with e.tv’s studios nearby.
All of the eight campuses of the College of Cape Town are situated in the central area of the Peninsula and serve the greater Cape Town area, including a large percentage of traditionally disadvantaged areas and townships. The Gardens Campus formally housed the Early Childhood Development (ECD) Department and a Day Care Centre which has now been relocated to the redeveloped Crawford Campus. The Gardens has been revamped and transformed into a BPO Academy and is well set to support the BPO sector with the skills it requires.
The College of Cape Town has entered into an agreement with Business Process Enabling South Africa (BPeSA) to develop and operate the BPO Academy. At the launch of the Academy, Western Cape Economic Opportunities MEC, David Maynier, reported that the BPO was one of only two sectors that created jobs in April and September, adding 5 160 jobs to the economy in that time. Training people for sectors where they will gain employment goes to the heart of the mission of colleges.
Background
Four former technical colleges, Athlone College, Cape College, Sivuyile College and Western Province Technical College, were officially merged on 1 February 2002 to become the College of Cape Town.
The College of Cape Town for TVET is a public TVET College which falls under the auspices of the Department of Higher Education and Training. The College mandate is to provide inclusive quality Technical and Vocational Education and Training responsive to the labour market. All campuses are accessible by public transport. Although the majority of students are from the greater Cape Town metropolitan region, students from other regions of South Africa, Namibia and other African countries and countries abroad are accepted.
Courses offered lead to recognised, accredited qualifications that are in high demand by commerce and industry. The College offers an extensive range of programmes, including National Certificate Vocational (NCV) on Levels 2 to 4, NATED Report 191 on N1 to N6, National N Diploma, Occupational Qualifications on Level 1 to 5, Short Skills and other Skills Programmes, Learnerships, Artisan Related Learning Programmes (ARLP) and Trade Testing. The
The BPO Academy was launched in November 2020.
College also offers Higher Education programmes in partnership with University of South Africa (UNISA), the Cape Peninsula University of Technology (CPUT) and the University of Cape Town (UCT).
Delivery sites and facilities
All campuses have well-equipped workshops, lecture rooms, computer rooms, studios for practical work and media centres.
The eight campuses are: Athlone Campus: The campus has four fullyequipped Automotive and Skills workshops and is accredited in Automotive Motor Mechanics Training as well as Trade Testing. Athlone campus was awarded the Centre of Specialisation for Automotive Motor Mechanics in 2018. City Campus: Located in the heart of Cape Town, it is accessible to all amenities such as food chain stores, businesses, retail stores and public transport. The campus was formerly Cape College. Crawford Campus: Formerly known as Hewat Teachers Training College, it is one of the college’s biggest campuses. The campus offers Business Studies, Information Communication and Technology, Early Childhood Development Education and Training, Primary Health and Occupational Programmes. The campus also has partnerships with the University of South Africa (Bachelor Degree in Foundation Phase), the Cape Peninsula University of Technology (Level 5 Higher Certificate in ICT Service Management) and the University of Cape Town (development and design of a Level 5 Higher Certificate in Early Childhood Development).
Crawford Campus has a well-equipped daycare centre. Visitors from daycare centres are accommodated through short courses and workshops on best practice.
When students enter the campus using the gate located next to the Trojan Horse Massacre Memorial Wall, they are constantly reminded of the youth whose lives were tragically lost in the apartheid era. Gardens Campus: The campus has a rich history with its building being more than 100 years old. Its age makes in a heritage site in the greater city bowl. Guguletu Campus: Situated in the Guguletu township 15km from central Cape Town, its name is derived from the contraction of “Igugu lethu”, which is IsiXhosa for “Our Pride”. The Guguletu Campus was established to service the broader Guguletu area and the Cape Flats and offers Business Studies and Electrical Engineering. Pinelands Campus: The College’s hub for Electrical Engineering studies has 22 workshops and laboratories for a growing number of students. The campus is also an accredited Refrigeration and Electrical Trade Test Centre. Thornton Campus: Engineering is the focus at Thornton, which offers the following fields: Building and Civil Engineering and Mechanical Engineering. The campus has seven fully-equipped Building and Civil Engineering and Skills workshops and a Welding Academy offering international welding qualifications. Thornton Campus was also awarded the Centre of Specialisation for Plumbing. Wynberg Campus: Wynberg is an Occupational Training campus servicing the broader communities in and around the Wynberg as well as Mitchells Plain, Mannenberg, Hanover Park, Strandfontein, Bishop Lavis, the southern and northern suburbs as well as areas outside Cape Town’s borders.
The Central Office is located in Salt River and hosts Finances, Human Resources, Corporate Communication and Marketing, Physical Resources, OHS, Quality Management, Management Information Systems, and the Linkages and Partnership Units.
The College of Cape Town also has three residences, namely City Residence, Crawford Residence and Thornton Residence. The City Residence is for ladies only. ■
A Welding Academy has been established on the Thornton Campus of the College of Cape Town.
Banking and financial services
The Western Cape has the digital edge.
The potential for disruption in the banking and financial services sector is almost limitless. The Western Cape’s evolution into a technology hub helps to explain why banks, insurance providers, asset managers and venture capitalists are increasingly choosing to make their headquarters there.
There are more than 40 000 jobs in the technology sector (more than double the total of Nairobi and Lagos combined, Wesgro) and formal employment in the financial sector exceeds 50 000.
Together with business services, the financial sector comprises the biggest contributor to the provincial economy. According to Wesgro, 75% of the venture capital deals that happen in South Africa originate in the Western Cape. Most financial firms based in Cape Town have a long history, some going back as far as 1845 when Old Mutual started.
One of the most successful disruptors in recent times has been Stellenbosch-based Capitec Bank, which is steadily increasing its customer base by providing banking for business and individual customers in what it describes as a simple manner. In May 2020, investment holding company PSG announced that it would reduce its holding in Capitec Bank from 32% to 4%, earning about R4-billion by selling those shares.
Another banking newcomer, Tyme, reported in October 2020 that it had 2.4-million customers, up from 1.4-million at the end of March. A 400% increase in the use of services such as airtime and electricity purchases was also noted.
Discovery Bank officially launched in March 2019 and is experiencing rapid growth with deposits of R3.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour.
The African Institute of Financial Markets and Risk Management (AIFMRM) aims is to meet the demands for skills by developing local talent. It is supported by the Western Cape Provincial Government, the University of Cape Town, Barclays Africa Group, FirstRand and Liberty.
The head offices of financial firms are dotted all over Cape Town. These include Old Mutual and Foord (Pinelands), Futuregrowth and Coronation (Newlands), Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns. Insurers such as Santam and Metropolitan Life are based in Bellville. A newcomer to the Cape financial services sector is Nomura, a Japanese financial holding company.
The green bond issued by the City of Cape Town is a sign of the climate change times. South Africa’s third-ever green bond attracted bids over R4-billion on an initial offering on projects worth R1-billion. The lead arranger for the bond was Rand Merchant Bank. ■
ONLINE RESOURCES
Banking Association South Africa: www.banking.org.za Financial Sector Conduct Authority: www.fsca.co.za Insurance Institute of South Africa: www.iisa.co.za South African Institute of Chartered Accountants: www.saica.co.za SECTOR INSIGHT PSG is reducing its stake in Capitec.
Development finance and SMME support
Entrepreneurs are saving the environment.
Small businesses in the Breede River and Riviersonderend catchment areas are making money from clearing invasive species. Avocado Vision has developed a “Green Business Value Chain” in partnership with the Department of Environment, Forestry and Fisheries, environmental organisations and corporates.
By turning the unwanted species into sought-after products, a sustainable business is created while simultaneously replenishing water-table levels and restoring grasslands. About 200 species are regarded as invasive and work is being done with 120 SMMEs across South Africa to identify opportunities.
The Western Cape Government runs a Premier’s Advancement of Youth Internship Programme which in 2019 had 1 118 participants. There are several Youth Cafes in different parts of the province, where unemployed young people can get advice and training and have access to computers and WiFi.
Many startups find the cost of finding and hiring premises prohibitive. Flexible working spaces such as those offered by Workshop17 offer a solution. The company has sites in Paarl, the Gardens and at the Watershed at the V&A Waterfront.
The Watershed itself is a popular venue for designers and crafters to display their wares. More than 90% of stock sold out of the Watershed is made locally and some design companies, such as leather product maker Wolf and Maiden, have moved into more exclusive retail space elsewhere in the Waterfront. A study has shown that revenue earned by small enterprises at the V&A Waterfront in 2018 was R329-million, up from R78-million in 2007.
Two of the Western Cape’s universities, Stellenbosch and Cape Town, are the first collaborators with the University Technology Fund which aims to commercialise innovations and inventions coming out of tertiary institutions. The UTF will have considerable financial clout as it is a part of the South African SME Fund, an offshoot of the CEO Initiative which brought together 50 major corporations, the Public Investment Corporation, the Unemployment Insurance Fund and the Compensation Commission.
Among the businesses receiving support from the SA SME Fund are Masisizane which helps black entrepreneurs buy petrol stations and Hyrax, a company which emerged from research done at the University of the Western Cape into which HIV-positive people were resistant to certain drugs.
The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and cooperatives. The Small Enterprise Development Agency is an agency of the DSBD and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans.
Seda has established a Rapid Incubator in partnership with the Centre for Entrepreneurship (CFE) at False Bay TVET College, Westlake Campus.■
ONLINE RESOURCES
SA SME Fund: sasmefund.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za SECTOR INSIGHT Workshop17 has three flexible working spaces in the Western Cape.
Business Process Outsourcing
South Africa was “Offshoring Destination of the Year” in 2018.
Significantly lower costs than European competitors and growth rates in the Business Process Outsourcing (BPO) sector that outstrip the global rate make the Western Cape an extremely competitive destination.
According to the Everest Group Study (2018), Cape Town’s costs for contact centre work are between 20% and 30% lower than the costs in Eastern and Central Europe. In the same year, 6 172 new jobs were created in the province as a result of an 11% growth rate in the sector. South Africa’s BPO industry is growing twice as fast as the world’s and three times faster than India and the Philippines (Invest Cape Town).
BPO involves any internal businesses that a company chooses to outsource to a specialist in that field, for example accounting or customer service centres. UK shop Asda and online retailer Amazon have large customer service centres in Cape Town. Other big brands include British Gas, IBM, KLM, Lufthansa, Mastercard and Microsoft.
Global and local BPO investors with operations in Cape Town include TutorABC, CSC, Collinsons Group, Bloomberg, Shell, AskOsca, JTC Group, Wonga, SimplyTalk, Ambition 24 Hour Group and Buongiorno.
Inbound customer service (55%), inbound sales (15%) and debt collection (13%) comprise the biggest subsectors of the BPO sector in the Cape (Wesgro).
The fact that greater Cape Town is home to three universities, a university of technology and two technical colleges is a major advantage in attracting companies with sophisticated operations. Other factors in favour of the Cape Town area and surrounds are the relatively neutral accents, good infrastructure (financial and telecommunications) and the time zone being the same or close to Europe’s.
Sixty-three percent of the offshore market is in the Western Cape where the provincial government has identified BPO as one of the six key sectors that can create jobs quickly. The City of Cape Town, the provincial Department of Economic Development, Agriculture and Tourism (DEDAT) and IT service management company EOH jointly sponsor the training and 12-month learnerships of 175 unemployed work-seekers in BPO. The municipality also trains 20 potential team leaders to build management skills within the sector.
The Department of Trade, Industry and Competition (dtic) offers incentives to BPO investors. A base incentive is calculated on projected offshore jobs to be created and is awarded on actual offshore jobs created. The incentive has a two-tier structure for noncomplex and complex jobs and is paid over a five-year period.
A war room to unblock red tape in important job-creating sectors such as BPO has been set up by the Western Cape Provincial Government with financial support from Harvard University. ■
ONLINE RESOURCES
Business Process enabling South Africa (BPeSA): www.bpesa.org.za Contact Centre Management Group: www.ccmg.org.za National Department of Trade, Industry and Competition: www.dtic.gov.za SECTOR INSIGHT Growth of 11% created 6 172 new jobs in the Western Cape.
LISTING LISTINGS
Department of Social Development Tel: +27 21 483 4813 MEC: Ms Sharna Fernandez Fax: +27 21 483 5068 Western Cape Union House, 14 Queen Victoria Street, Cape Town 8001 Tel: +27 21 483 5045 | Fax: +27 21 483 4783 Web: www.westerncape.gov.za/dept/tpw Provincial Government Web: www.westerncape.gov.za/dept/ social-development Provincial Treasury MEC: Mr David Maynier An overview of the Western Cape’s provincial government departments. Department of Transport and Public Works 3rd Floor, 7 Wale Street, Cape Town 8000 Tel: +27 21 483 4237 | Fax: +27 21 483 3855 www.westerncape.gov.za MEC: Mr Bonginkosi Madikazela Web: www.westerncape.gov.za/dept/treasury Office of the Premier 8th Floor, 9 Dorp Street, Cape Town 8000 Department of Environmental Affairs Premier: Mr Alan Winde and Development Planning Provincial Legislature Building, MEC: Mr Anton Bredell 1st Floor, 7 Wale Street, Cape Town 8000 Tel: 0860 142 142 8th Floor, 1 Dorp Street, Cape Town 8000 Tel: +27 21 483 4091 Western Cape Local Government Email: service@westerncape.gov.za Department of Health A guide to the metropolitan, district and local municipalities in the Western Cape. Department of Agriculture MEC: Dr Nomafrench Mbombo MEC: Dr Ivan Meyer 21st Floor, 4 Dorp Street, Cape Town 8000 Admin Building, Muldersvlei Road, CITY OF CAPE TOWN Tel: +27 21 483 3245/5417 Witzenberg Local Municipality Elsenburg 7607 Tel: +27 21 808 5111 METROPOLITAN MUNICIPALITY Address: Civic Centre, Podium Block, 6th Floor, 12 Hertzog Boulevard, Cape Town 8000 Department of Human Settlements MEC: Mr Tertius Simmers Tel: +27 23 316 1854 | Fax: +27 23 316 1877 Website: www.witzenberg.gov.za Department of Community Safety Tel: +27 21 400 1111 | +27 21 400 1313 27 Wale Street, Cape Town 8001 CENTRAL KAROO DISTRICT MUNICIPALITY MEC: Mr Albert Fritz Fax: 0860 103 090 Tel: +27 21 483 6488 Address: 63 Donkin Street, Beaufort West 6970 35 Wale Street, Cape Town 8000 Website: www.capetown.gov.za Department of Local Government Tel: +27 23 449 1000 | Fax: +27 23 415 1253 Tel: +27 21 483 6949/8588 CAPE WINELANDS DISTRICT MUNICIPALITY MEC: Mr Anton Bredell Website: www.skdm.co.za Department of Cultural Affairs and Sport MEC: Ms Anroux Marais Protea House Building, 7th Floor, Address: 46 Alexander Street, Stellenbosch 7599 Tel: 086 126 5263 | Fax: +27 21 888 5100 Website: www.capewinelands.gov.za 8th Floor, Waldorf Building, 80 St George’s Mall, Cape Town 8001 Tel: +27 21 483 4049/4997 Beaufort West Local Municipality Tel: +27 23 414 8149 | Fax: +27 23 414 8105 Website: www.beaufortwestmun.co.za Greenmarket Square, Cape Town 8000 Tel: +27 21 483 9503 Breede Valley Local Municipality Department of Social Development Laingsburg Local Municipality Tel: +27 23 348 2600 | Fax: +27 21 883 8871 MEC: Ms Sharna Fernandez Tel: +27 23 551 1019 | Fax: +27 23 551 1019 Department of Economic Development Website: www.bvm.gov.za Union House, 14 Queen Victoria Street, Cape Town 8001 Website: www.laingsburg.gov.za and Tourism MEC: MrDavid Maynier Drakenstein Local Municipality Tel: +27 21 483 5045 Prince Albert Local Municipality 11th Floor, NBS Waldorf Building, 80 St George’s Mall, Cape Town 8001 Tel: +27 21 807 4500 | Fax: +27 21 872 8054 Website: www.drakenstein.gov.za Department of Transport and Public Works MEC: Mr Bonginkosi Madikazela Tel: +27 23 541 1320 | Fax: +27 23 541 1321 Website: www.pamun.com Tel: +27 21 483 5065 Western Cape Education Department Langeberg Local Municipality Tel: +27 23 615 8000 | Fax: +27 23 615 1563 Tel: +27 21 483 9226 8th Floor, 9 Dorp Street, Cape Town 8000 Tel: +27 21 483 4813 GARDEN ROUTE DISTRICT MUNICIPALITY Address: 54 York Street, George 6530 MEC: Ms Debbie Schäfer Grand Central Towers, Lower Parliament Street, Cape Town 8001 Tel: +27 21 467 2000 Website: www.langeberg.gov.za Stellenbosch Local Municipality Tel: +27 21 808 8111 | Fax: +27 21 808 8003 Website: www.stellenbosch.gov.za Provincial Treasury MEC: Mr David Maynier 3rd Floor, 7 Wale Street, Cape Town 8000 Tel: +27 21 483 4237 Tel: +27 44 803 1300 Fax: 086 555 6303 Website: www.gardenroute.co.za
INDEX
Absa ..................................................................................................................................................................................IFC
Vinpro.................................................................................................................................................................................15
Western Cape Business Opportunities Forum (WECBOF).................................................................13
The Voice of Business for 217 years
The Cape Chamber of Commerce and Industry brings people and businesses together.
Executive Director Sid Peimer
After more than two centuries of service to business, two industrial revolutions and another one upon us, the Cape Chamber of Commerce and Industry knows one thing has not changed – business is still driven by people who are smart, dynamic and innovative.
Businessmen and women have a need to talk to others, meet people to work with, to earn from and generate the excitement of a shared vision. The Chamber offers this and much more – it is literally Where Opportunity Meets™.
The business community also needs a voice. Since 1804 we have provided it and our voice matters. We lobby with integrity. We are independent. We are not affiliated to any political party nor any organisation. We monitor legislation that could affect business interests and submit evidence to Parliamentary standing committees or other authorities.
The Chamber leverages media releases, radio interviews and letters to newspapers to alert the public to the likely undesired consequences of legislation and official policies.
Sharing Information
Bringing people together is a core function of the Chamber. We hold seminars and workshops to share information and where experts can provide a deeper understanding of issues that affect businesses. In addition, we host conferences, exhibitions, coffee club mornings and landmark events like International Women’s Day and the Disability Summit.
Our international trade desk is often the first stop for visiting trade missions and delegations. To support local industry we run seminars to facilitate international trade and arrange for foreign delegations to meet our members.
We also issue certificates of origin for exporters and host a Port Liaison Forum where problems with sea freight are discussed and are often solved. Our portfolio committees are specialist forums for numerous sectors, including commerce, industry and agriculture where we invite experts to give members the latest information on developments to enhance their business operations.
Staying connected
It is apparent that we have never been as technologically connected as we are today, yet we have never been as socially disconnected. The Chamber is the glue that binds us together. ■
At Airlink, we’ve been enabling freedom for 28 years, and we want to do the same for you. Go places. Experience things. And make memories. Because we have the freedom to o er things other airlines can’t. The widest network of routes in southern Africa, business-class fl ights to selected destinations, complimentary on-board catering, checked-in baggage and sporting equipment allowance at no extra charge.*
The new look of our planes is the fi rst step on our new journey with you.
fl yairlink.com @fl y_airlink Fly Airlink
