Eastern Cape Business 2013
The 2013 edition of Eastern Cape Business is the sixth edition of this highly successful publication that since its launch in 2008 has established itself as the premier business and investment guide to the Eastern Cape Province. Eastern Cape Business is unique as a business journal that focuses exclusively on the Eastern Cape and that also carries full Audit Bureau of Circulations (ABC) certification, meaning its print run and circulation of 15 000 copies is independently audited and verified.
EASTERN CAPE BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN THE EASTERN CAPE PROVINCE www.easterncapebusiness.co.za | www.frontiermarketnetwork.com 2013 EDITION contents contents EASTERN CAPE business 2013 edition Published by Global Africa Network (Pty) Ltd 9 12 18 27 121 37 Introduction Foreword9 Eastern Cape Business is a unique guide to business, investment and tourism in the province. Action and implementation the focus for leaders Premier Noxolo Kiviet is leading the provincial government of the Eastern Cape towards the realisation of eight major priorities. 10 Special features Regional overview of the Eastern Cape Province Infrastructure development is spurring increased investment in the Eastern Cape’s two well-located industrial development zones. 12 Cities of the Eastern Cape The province’s major urban areas are driving economic development. 18 22 Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. Rural development Helping emerging farmers gain access to markets is key to transforming the rural economy. 27 Training to bridge the skills gap Several Eastern Cape institutions are accelerating skills training in pursuit of the National Skills Development Strategy. 121 Destination Eastern Cape Tourism37 The Eastern Cape is growing its tourism events profile. EASTERN CAPE business 2013 2 contents Economic sectors 56 68 72 74 75 96 99 Agriculture and agri-processing Rain has fallen and prices have risen, therefore Eastern Cape agriculture is back on solid ground. 56 Mohair64 The Eastern Cape is a world leader in mohair. Forestry66 The Eastern Cape can help to alleviate the timber shortage that South Africa faces. Aquaculture and mariculture Farmed fish will provide protein for people’s diets. 68 Manufacturing72 An Indian steel manufacturer has started work on a plant in the Coega Industrial Development Zone. Food and beverages Excellent agricultural produce makes the Eastern Cape attractive for food and beverage manufacturers. 74 Automotive The automotive sector drives manufacturing in the Eastern Cape. 75 78 Automotive components The components sector is strong and diverse. Engineering80 Water-engineering skills are in demand in the Eastern Cape. Ports and industrial development zones Logistics and transshipment are driving huge investments in infrastructure. 92 Transport96 The Eastern Cape’s rail network is being revitalised. Construction and property Training in construction skills is taking centre stage in the Eastern Cape. 99 EASTERN CAPE business 2013 4 DEVELOPING INTERNATIONAL GATEWAYS Airports Company South Africa achieved global recognition for its ability to successfully provide and manage world-class facilities for the 2010 FIFA World Cup. As a result of this, the company has earned its credentials through a proven track record in operational efficiency, project planning and implementation expertise. The involvement in developing, operating and managing Chhatrapati Shivaji International Airport in Mumbai, India, for the past six years has seen the transformation of the airport and demonstrated impressive results. Infrastructural and operational Reg No. 1993/004149/30 improvements to the airport have vastly improved service offerings and the overall passenger experience. In partnership with the Brazilian company Invepar, winning the bid to develop, maintain and operate Guarulhos International Airport (the busiest in Latin America) in Sao Paolo, Brazil, for the next 20 years is yet another way in which Airports Company South Africa is leading the way in collaborating with international organisations to ensure world-class, secure infrastructure and service. A number of major world events will be hosted in Brazil in the next few years, including the 2013 FIFA Confederations Cup, the Pope’s visit for World Youth Day in 2013, the 2014 FIFA World Cup and the 2016 Olympic Games. Airports Company South Africa is well-positioned to share its skills and experience to ensure that passenger facilitation through Guarulhos International Airport is world-class. Airports Company South Africa will continue to leverage its large pool of experience and skills by identifying and securing partnerships to develop and operate airports around the world. www.airports.co.za contents 104 106 112 116 140 152 15 Free State Rouxville Bethulie Water104 Eastern Cape municipalities are improving their Blue Drop scores. Energy106 Large renewable energy projects have been launched in the Eastern Cape. Banking and financial services The Eastern Cape’s financial institutions support investment in economic growth. 112 Development finance and SMME support Entrepreneurs have many support options in the Eastern Cape. 116 140 Business support services The Eastern Cape’s diverse economy is supported by a lively services sector. Government South African National Government An overview of South Africa’s national government departments. 152 162 191 Eastern Cape Provincial Government A guide to the Eastern Cape’s provincial departments and their MECs. Eastern Cape Local Government A guide to metropolitan, district and local municipalities in the Eastern Cape Province. reference Sector contents Maps KwaZuluNatal Kokstad 54 Index204 Eastern Cape locator map Eastern Cape regional map Eastern Cape municipalities Ixopo VINCE LESOTHO Mount Zastron Matatiele R56 olesburg Oviston Aliwal North R58 Lady Grey Fletcher Burgersdorp Jamestown N6 10 Steynsburg R56 Barkly East Maclear Port Edward Mount Frere R61 Lusikisiki Mount Ayliﬀ Dordrecht Indwe N2 delburg Molteno Elliot 15 15 193 Hofmeyr Mthatha R61 Queenstown Port St Johns Cradock Tarkastad Tsomo Coﬀee Bay Sada Cathcart R63 Somerset Pearston East Adelaide Cookhouse N10 Fort Beaufort Stutterheim Butterworth Komga Bhisho N2 Kirkwood Paterson King William's Town Grahamstown N2 EAST LONDON Hamburg Uitenhage R72 Port Alfred mansdorp PORT ELIZABETH Jeﬀreys Bay EASTERN CAPE business 2013 6 credits eastern cape business 2013 www.easterncapebusiness.co.za Eastern Cape Business is published by Global Africa Network (Pty) Ltd Editorial & production Publisher Editor Research and writing Creative director DTP operator Assistant editor Production assistant Chris Whales Karen Kühlcke John Young Ian Jamieson Colin Carter Katie Reynolds Anjé Robberts ISSN 1995-1310 Advertising National sales manager Loudon Cito Regional sales manager Veronica Dean-Boschoff Advertising representatives Debbie Bender-Overmeyer, Jeremy Petersen, Nathalie Horswell, Rashaad Essop and Tim Harrison. Managing director Clive During Administration and accounts Charlene Steynberg, Natalie Koopman CRM Administrator Zenobie Knox Distribution Lizé Fourie Printing CTP Eastern Cape Business is distributed internationally on outgoing and incoming trade missions, to the Eastern Cape Development Corporation (ECDC), to 115 foreign offices in South Africa’s main trading partners around the world; at top international trade fairs; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, companies and businessclass lounges. Member of the Audit Bureau of Circulations Administration Distribution Published by Global Africa Network (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales and Richard Pembroke Physical address: 3rd Floor, Sunclare Building, 21 Dreyer Street, Claremont 7700, Cape Town, South Africa Postal address: PO Box 44573, Claremont 7735, South Africa Tel: +27 21 657 6200 • Fax: +27 21 674 6943 Email: email@example.com • Website: www.gan.co.za Copyright Eastern Cape Business is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd. Disclaimer While the publisher, Global Africa Network (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Eastern Cape Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information. Photo credits Photographs: Mediaclubsouthafrica.com, Flickr, Anglo American, Depositphotos, General Motors South Africa, Dreamstime, Rod Bally/ Panoramio, Eris Property Group, SABMiller, Logmax, Hemingways Mall, The Hope Factory, Stock.Xchng. Cover photographs: (ship) Transnet National Ports Authority, (golfer, wind turbines, chicory, angora wool) Veer, (dolphins) iStock Photo, (engineer) Transnet Rail Engineering/ Marcel Van Rensburg, (car) Volkswagen. EASTERN CAPE business 2013 8 foreword Eastern Cape Business A unique guide to business, investment and tourism in the Eastern Cape. he 2013 edition of Eastern Global Africa Network, the EASTERN CAPE Cape Business is the sixth publisher of Eastern Cape edition of this highly Business, specialises in businessBUSINESS to-business print and electronic successful publication that THE GUIDE TO BUSINESS AND INVESTMENT IN THE EASTERN CAPE PROVINCE publications, producing a series since its launch in 2008 has of region-specific, annual print established itself as the premier business and investment journals. Every province in guide to the Eastern Cape South Africa is now covered by Province. Eastern Cape Business this unique range of journals is unique as a business journal and websites: Northern Cape that focuses exclusively on Business, Free State Business, the Eastern Cape and that also Limpopo Business, KwaZulucarries full Audit Bureau of Natal Business, Gauteng Circulations (ABC) certification, Companies, Western Cape meaning its print run and circuBusiness, Mpumalanga Business lation of 15 000 copies is indeand North West Business. A pendently audited and verified. national business guidebook, Eastern Cape Business is complemented by a South African Business, was added in 2011. useful website, www.easterncapebusiness.co.za, In an exciting new development, Global which includes an online record of the content Africa Network has launched an online from the print journal. Eastern Cape Business platform called Frontier Market Network is also available in e-book format through a (www.frontiermarketnetwork.com). This is a hyperlink on the website’s home page. business network for fast-growing ‘frontier’ The 2013 edition of Eastern Cape Business markets, which builds on the offering of our includes an up-to-date economic overview of popular TradeInvest websites. The community the province (see p12), as well as overviews of comprises companies, organisations and indithe region’s major sectors (see sector index on viduals involved in doing business, investing, p54), while Destination Eastern Cape is a guide to promoting or supporting deal transactions in travel and business tourism in the province (p37). rapidly developing economies. The Premier of the Eastern Cape, Noxolo Global Africa Network thanks the dedicated Kiviet, provides the foreword to this edition sales team and the committed writers, editors and the Eastern Cape Provincial Government and designers who worked so hard to produce outlines the provincial priorities (p174) and this edition of Eastern Cape Business. We thank the role of each of the provincial government the Office of the Premier, the ECDC, municipalidepartments in fulfilling these priorities, from ties, companies, parastatals and other organisapages 165-190. tions that supported this undertaking. Other key themes covered in this edition are rural development, which is being driven by Chris Whales both the public and private sectors – see p27; Publisher, Global Africa Network and skills development and training designed Email: firstname.lastname@example.org to meet the needs of business in the province www.easterncapebusiness.co.za – see p121. www.frontiermarketnetwork.co.za www.easterncapebusiness.co.za | www.frontiermarketnetwork.com T 9 2013 EDITION eastern cape business 2013 message Action and implementation the focus for leaders Premier Noxolo Kiviet is leading the Provincial Government of the Eastern Cape towards the realisation of eight major priorities. to companies in distress, and implementation of a provincial jobs programme whose key elements are the Jobs Stimulus Fund and the provincial jobs strategy. These measures are intended to put job creation firmly at the centre of government’s agenda. Of course, all our job creation initiatives must be seen in the context of the overall performance of the economy. Despite the uncertain global economic outlook, we are happy to announce that our two industrial development zones (IDZs) are delivering the much needed investment for the province. The East London IDZ has secured private investors to the tune of R4-billion in the automotive, aquaculture, agri-processing, renewable energy and business process outsourcing sectors. Of this amount, R3.3-billion is for two renewable energy projects. It is clear that our focus on the green economy is starting to pay dividends. The Coega IDZ now has 21 operating investors, which represents R1.2-billion in private sector investments. To date, the Coega IDZ has created about 3 645 construction jobs, and 2 985 direct jobs. In addition, the Coega IDZ has a R7.6-billion pipeline of projects being implemented. The job creation initiatives of government are also pursued in the context of building social and economic infrastructure. These include a dam on the Umzimvubu River, seawater desalination plants in Port Elizabeth and Port Alfred (which is at feasibility stage), rehabilitation of former homeland irrigation schemes, and a dam in the upper Orange River, for which a site has been identified at the confluence of the Kraai and Orange rivers. We are talking with the Free State Government about sharing the water and developmental resources of the Gariep Dam. The Ngqura container port expansion will position the Port of Ngqura as a continental trans-shipment hub. Transnet has committed over R20-billion for basic port infrastructure, container terminals, cargo berths, a manganese export terminal, and liquid bulk terminals. The provision of quality houses and related services remains a critical element in building sustainable human settlements. In this regard, we are pleased to report that so far, a total of 8 303 houses have been completed, while a further 7 870 are currently at various advanced levels of construction. Noxolo Kiviet I am pleased to report that we are making progress with respect to the implementation of government priorities that we announced at the beginning of the term of office. Most of our plans and strategies are in place, and now our efforts and resources are focused on accelerating implementation and action. On the creation of decent work and growing the economy, a number of steps have been taken, including the expansion and diversification of manufacturing in the province, support EASTERN CAPE business 2013 10 message On the building of cohesive and sustainable communities, indeed the celebration of the ANC’s centenary provides us with an opportunity to focus on rebuilding our communities from the broken legacy of colonialism and apartheid. We must surely be informed by the need to lay the basis for a responsible citizenship that is intolerant of substance abuse and corruption, and the desire to build conscientious citizenry. We are reminded of and inspired by the words of the first President of the African National Congress, Reverend John Langalibalele Dube in his acceptance speech, when he said, ‘We have been distinguished by the world as a race of born gentlemen – a truly glorious title, ... and by the gentleness of our manners, and by the nobility of our character shall we break down the adamantine wall of colour prejudice and force even our enemies to be our admirers and our friend.’ It is this society that we seek to build – a society that does not take kindly to being witness to the condemnation of one other person into poverty and a society which is offended by the incidence of child-headed families. As part of promoting social cohesion, a number of heritage projects in the Eastern Cape will be undertaken. The Coega IDZ is a hub of development and investment. Furthermore, 2 397 units have been rectified as part of the national rectification pilot for the current financial year. In the area of rural development, land and agrarian reform and food security, we have made a commitment to reverse the legacy of endemic rural poverty and to improve the quality of life of people in rural areas. To this end, we made a specific undertaking that, guided by our Rural Development Strategy, we would establish a Rural Development Agency, as well as provide support to a range of agricultural initiatives. We proceed from an understanding that education is a tool for breaking the cycle of poverty and underdevelopment. The task of strengthening education and building a skills and human resources base remains one of our critical priorities. We will continue to improve our monitoring of the turnaround plan, while at the same time we will be consciously building a broad social partnership towards a common education agenda. We took the first steps towards this common education agenda in February 2012, when we signed an agreement with the Congress of South African Trade Unions (COSATU) and affiliated public sector unions. We are also focusing on improving the health profile of the people of the province. A turnaround plan in the Department of Health is principally focused on curbing fraud and corruption, improving the effectiveness of human resource systems and building management stability, reducing the budget deficit, and improving financial management in general. The recent audit report by the Auditor-General indicates that our efforts in turning around the healthcare situation are yielding the necessary results. We continue to work towards improving human resources management in the province. In this regard, we have recruited and deployed HR specialists in the Departments of Education and Health as part of our turnaround interventions. photo: Transnet national ports authority 11 EASTERN CAPE business 2013 Eastern cape province a regional overview of the Infrastructure development is spurring increased investment in the Eastern Cape’s two well-located industrial development zones. The automotive industry is investing heavily in increased capacity, and renewable energy is a growth sector. by John Young T he Eastern Cape’s strategic location on the south-eastern coast of Africa is a key factor in national government’s decision to spend significant amounts of money on building up the infrastructure of the area. This is part of a broader, national programme that will see rail and port facilities in the Eastern Cape become even better able to handle import and export commodities. The allocation of two of South Africa’s five industrial development zones (IDZs) to the province is confirmation of the potential that is offered by the shipping traffic that operates between Europe and Asia, including the Far East. The province is well served logistically, with two major airports in Port Elizabeth and East London, and several facilities serving smaller towns such as Mthatha and Bhisho. In addition, many farms and private game reserves have airstrips. The construction of the large new port at Ngqura, within the Coega IDZ, brings the number of effective ports operating in the Eastern Cape to three. The province’s road network is defined by the west-east axis of the coastal N2, with three other national routes (N9, N10 and N6) providing northsouth routes through the region. The reopening of the Mthatha-East London line in 2011 is a step along the path of revitalising the province’s rail network, a key part of any rural upliftment plan. special feature Forestry is a major contributor to provincial GDP, and there are plans to expand operations. The Eastern Cape MEC for Economic Development and Environmental Affairs Mcebisi Jonas describes the current situation in the Eastern Cape as being on an economic ‘turning point’. Transnet and Eskom are two of the biggest drivers of infrastructure spending in the country, and in the Eastern Cape. There are a number of major projects being planned or undertaken by national and provincial government, state-owned companies, agencies and municipalities. Among these are: • The building of a national road through the eastern parts of the province. This is a controversial plan, but government hopes it will unlock economic activity in poor rural areas. • Major upgrades to the Port of East London. • Ongoing expansion of both of the region’s industrial development zones, including the Port of Ngqura at Coega IDZ. • The relocation of the Port of Port Elizabeth’s manganese terminal to Ngqura, together with the existing liquid-bulk terminal. Large parts of the Port Elizabeth harbour will then be available for redevelopment for retail and leisure. This is part of a broader Eastern cape business 2013 plan to revitalise the harbour and neighbouring beachfront. • The building of a major dam at Umzimvubu, with the potential to supply irrigation to farms and hydroelectric power. • Plans for the creation of a gas-fired power plant at Coega. • Plans for a PetroSA oil refinery at Coega. • The Nelson Mandela Bay Metropolitan Municipality, through its Nelson Mandela Bay Development Agency (NMBDA), will spend R40-million on beachfront development. The NMBDA has spent R250-million on upgrading Govan Mbeki Avenue and other parts of the inner city. It has also supported 67 tourism projects. The private sector is also actively investing in the Eastern Cape: • The Coega IDZ has received R1.2-billion in private capital investment from 21 companies • The East London IDZ has 30 companies invested in it • Each of the province’s four big automotive manufacturers, Volkswagen, Mercedes-Benz, 14 photo: logmax special feature ZIMBABWE MOZAMBIQUE BOTSWANA Limpopo NAMIBIA Mpumalanga North West Gauteng SWAZILAND Free State Northern Cape LESOTHO KwaZuluNatal Eastern Cape Western Cape EASTERN CAPE PROVINCE Britstown Free State Rouxville Bethulie Oviston Burgersdorp Aliwal North R58 LESOTHO Zastron Matatiele Mount Fletcher Maclear N2 R56 KwaZuluNatal Ixopo Mount Ayliﬀ Kokstad Northern Cape Victoria West N12 De Aar Colesburg Lady Grey Barkly East Hanover N1 N10 Jamestown N6 Port Edward Mount Frere R61 Lusikisiki Steynsburg R56 Dordrecht Indwe Elliot Middelburg Three Sisters Molteno Hofmeyr Mthatha R61 Western Cape Beaufort West R61 N9 Queenstown Tsomo Cathcart Port St Johns Graaﬀ-Reinet Aberdeen R63 Cradock Somerset Pearston East Tarkastad Sada Adelaide Fort Beaufort Coﬀee Bay N Butterworth Stutterheim Rietbron Willowmore Klipplaat Kirkwood Cookhouse N10 Komga Bhisho N2 Steytlerville Uniondale N9 Paterson King William's Town Grahamstown N2 R72 EAST LONDON Hamburg INDIAN OCEAN Motorway Main Road Railway Joubertina N2 Uitenhage Humansdorp Jeﬀreys Bay Port Alfred Knysna Kareedouw Plettenberg Bay PORT ELIZABETH 15 Eastern cape business 2013 special feature General Motors and Ford are rolling out major expansion plans • The already influential automotive-supply sector continues to grow, with the IDZs in particular attracting firms from overseas • Several renewable-energy projects are underway, with Indian and German companies showing interest • The Sunningdale Dairy in the ELIDZ was constructed at a cost of R140-million • The construction of the SAS Radisson Port Elizabeth (Radisson Blu) • A new steel plant is under construction at Coega IDZ • A ferromanganese smelter is planned for Coega IDZ There are a number of Eastern Cape firms that routinely punch above their weight. The famous national brand, Ouma Rusks, for example, has its manufacturing plant in the small town of Molteno. ‘The Gem of the Karoo’, Graaff-Reinet, famous as a tourist destination of superbly preserved Victorian architecture and more than 200 heritage sites, is also the home of Montego Pet Nutrition, whose products can be found throughout South Africa. Advertising agency Boomtown Strategic Brand has shown that creative companies don’t have Addo Elephant Park attracts many visitors to the Eastern Cape. to be in Johannesburg or Cape Town to be successful. The Aggreko ‘Always On’ campaign won awards and acclaim for its creative team, who also struck gold with their First Choice custard strategy. The Humansdorp-based Woodlands Dairy product grew market share by 3% and a return-on-investment of 200%. Vovo Telo, a bakery-cum-coffee shop that started modestly in Richmond Hill in Port Elizabeth, is now a national franchise operation. Variety Varied topographical and climatic conditions contribute to a diverse agricultural offering that includes wool, mohair, dairy and forestry, and make for a superb tourist destination. The Eastern Cape is home to four of South Africa’s biggest automotive companies and several of the largest concerns in the automotive components and support sectors. The catalytic convertor industry is a world leader. Tourism is a major growth industry. Addo Elephant National Park is the largest of the province’s four national parks, and there are more than a dozen provincial parks and a growing number of private game farms, lodges and reserves. The province’s beaches and waves are popular, with adventure tourism luring in tourists wanting to go on 4x4 trails, jump off bridges or fly microlight aircraft. The Eastern Cape receives a lot of sunlight and it has areas along its coastline that can easily transfer wind into energy. These and other options in the Key facts The Eastern Cape extends over 169 580 square kilometres, representing 13.9% of South Africa’s land mass. The province has more livestock than any other province, with a fifth of the country’s cattle, a quarter of its sheep and nearly half its goats. Mohair is a speciality of the Karoo region. The province’s population of 6.9 million makes it the country’s third-most populous province, with about 15% of the national population. The overwhelming majority – more than 80% – of the population speak Xhosa, with Afrikaans, English and Sotho (near the Lesotho border) as the other major languages. The kings of the AmaThembu, the AmaXhosa and the AmaMpondo are recognised nationally. All of these groups are Xhosa-speaking. Eastern cape business 2013 16 photo: exfordy/flickr special feature alternative-energy field, including biofuels, are being actively investigated, with some sizable investments already having been made. The Eastern Cape has two metropolitan municipalities (covered separately in this publication), and six district municipalities, which are: Cacadu has three of the region’s national parks and several private game farms. Grahamstown hosts the National Arts Festival, Rhodes University and a number of fine schools. Chris Hani District Municipality Towns: Middelburg, Molteno, Dordrecht, Cradock, Queenstown, Lady Frere, Elliot Towns: Matatiele, Mount Frere, Mount Ayliff Sheep farming is an important part of the The smallest district is located in the moun- economy. Some coal is found in the north tainous north-east, with hiking trails being an and tourist activities include fly-fishing. The attraction for tourists. There is tremendous Foodcorp factory in Molteno manufactures scope for expansion of tourist activities, and Ouma rusks. Queenstown is a centre for cattle a transfrontier park between South Africa farming and has some manufacturing activiand Lesotho could boost the area’s economy. ties. The Mountain Zebra National Park is near Subsistence agriculture and forestry are the Cradock. The Grootfontein Agricultural College major economic activities. and Research Station is in Middelburg, and the Marlow Agricultural College is near Cradock. Alfred Nzo District Municipality Amathole District Municipality Towns: Cathcart, Stutterheim, Morgan’s Bay, Dutwa, Willowvale, Butterworth, Mazeppa Bay, Hamburg, Alice, Bedford, Adelaide The Amathole District is mainly rural in nature with a geographical area that 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. The main campus of the University of Fort Hare is located at Alice. OR Tambo District Municipality 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. Mining is already pursued in some areas, but plans to allow titanium mining on seaside dunes are being contested. . A Wild Coast Spatial Development Initiative exists to plot further development. Forestry concerns are among the biggest employers. Joe Gqabi District Municipality Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie Towns: Graaff-Reinet, Humansdorp, Cattle and sheep farming make up 80% of land Jeffreys Bay, Grahamstown use, while commercial forestry is a big contribThe western part of the province contains the utor to employment. There are large forestry biggest municipality and is one of the biggest plantations at Ugie and Mount Fletcher. Maize is contributors to provincial GDP. Large commer- grown along the Orange River and wheat in the cial farms in the Karoo produce high-quality foothills of the Drakensberg mountains. Skiing meat, wool and mohair, while the coastal belt at Tiffindell is a major tourist attraction, and has has dairy farming and some forestry. The Kouga been bought by a Johannesburg investor with Valley is a big deciduous fruit producer, while a view to restoring it. the Kirkwood/Addo area is known for its citrus. Cacadu District Municipality 17 Eastern cape business 2013 special feature Cities of the Eastern Cape The province’s major urban areas are driving economic development. Tourists flock to Port Elizabeth’s stunning beaches and lively promenade. port of Ngqura at the Coega IDZ is a major new development, having deep-water capacity. Port Elizabeth Airport connects the city to all regions Port Elizabeth, Uitenhage, Despatch in South Africa, and the city’s freeway system Port Elizabeth is the Eastern Cape’s largest is very good. economic centre, but Uitenhage is home to the Port Elizabeth’s tourism image was boosted Volkswagen Group, one of the biggest contribu- by the city’s successful hosting of 2010 Soccer tors to the regional economy and a leader in World Cup matches in the sparkling Nelson exports. Several tyre companies and the large Mandela Bay Stadium, and the city has since workshops of Transnet Rail Engineering are hosted the IRB Rugby Sevens tournament and two other features of the economic landscape of Springbok Test matches. Both East London and Uitenhage. Port Elizabeth will host T20 matches when New The major towns of Port Elizabeth, Uitenhage Zealand’s cricketers tour in 2012/13, and Port and Despatch are administered by the Nelson Elizabeth will also host a prestigious Test match. Mandela Bay Metropolitan Municipality. The With popular beaches along the vast Algoa Nelson Mandela Metro is the province’s largest Bay and excellent natural beauty within easy economic contributor. reach of the city – including Addo Elephant Between them, Uitenhage and Port Elizabeth National Park – Port Elizabeth has become a host many automotive manufacturers and related popular tourist destination at the start (or finish) industries; sectors that are further boosted by of the Garden Route. the growth of the Coega Industrial DevelopNelson Mandela Metropolitan University ment Zone (IDZ). Port Elizabeth has consider- (NMMU) has several sites in the city and offers able manufacturing capacity besides the motor a wide range of academic courses. Academics industry, specifically in pharmaceuticals, food at NMMU conduct research in areas relevant to the regional economy, for example, in biofuels, and beverages, and textiles and leather. The city is well served by transport links. The the automotive sector and forestry. Nelson Mandela Bay Metropolitan Municipality EASTERN CAPE business 2013 18 special feature East London and King William’s town supply most of the metropole’s manufacturing 2% manufacturing (13%) capacity. Parts of the area 23% electricity (1%) are good for cattle and sheep rearing, and some pineapple construction (2%) 13% production exists. Many farms trade (13%) have been converted to game transport (13%) farms or private game reserves. ﬁnance (23%) 23% 13% The 45 000-hectare Greater Fish community services (23%) River Conservancy Area is an example of an effort to preserve the natural environment. Nelson Mandela Bay Metropolitan Municipality economy Bhisho and King William’s by sector Town are very closely related, source: Ecsecc data, 2010 with many of the residents of www.nmbt.com the former shopping and doing their business www.nelsonmandelabay.gov.za in the latter. King William’s Town has a strong trading trawww.nmbda.co.za dition. The forested hills nearby provide timber and opportunities for recreation on trails and Buffalo City Metropolitan game farms. Several trout and bass fishing lodges Municipality are within easy reach. Bhisho, King William’s Town, East London East London is the biggest component of Buffalo City became South Africa’s sixth metro- Buffalo City and is South Africa’s only river port. politan municipality after the 2011 local govMercedes-Benz SA’s sophisticated manufacernment elections. turing plant produces C-Class vehicles for the US Bhisho is the provincial capital and is located market, commercial buses and Mitsubishi Fuso very close to King William’s Town, which is a trucks. A dedicated motor-vehicle terminal at regional service centre. East London is the metro- the Port of East London has a capacity to load pole’s most important economic hub. 100 000 vehicles per year. The Port of East London has recently been Other industries in East London include texupgraded, as has East London Airport. Transnet tiles, clothing, healthcare, packaging, pharmaPort Terminals has invested R20-million in the ceuticals, furniture and food-processing. Among port’s grain-handling facilities, and the East the agricultural products from the hinterland London Industrial Development Zone (ELIDZ) that are processed in East London are chicory is successfully attracting investors. and pineapples. Several financial institutions have their regional East London has a good network of roads head offices in East London, and the financial and is connected to other major centres via sector is the biggest contributor to the economy. the N2 (Port Elizabeth and Durban) and the N6 Mercedes-Benz is one of the most important (Bloemfontein). East London Airport hosts daily employers in the metropole, and has invested flights to all other major centres in South Africa. heavily in manufacturing capacity in recent times. As part of the Sunshine Coast, the city is well The gross value-add of Buffalo City known for its outstanding beaches. (R29.7-million in 2009), makes it the secondlargest economy of the province. www.buffalocity.co.za Buffalo City’s land area is approximately www.tourismbuffalocity.co.za 2 515 square kilometres, with 68km of coastline. www.amathole.gov.za 25% agriculture (0%) mining (0%) 1% 19 EASTERN CAPE business 2013 focus Significant inroads made into key sectors The Eastern Cape Development Corporation made great strides in the 2011/12 financial year. A s the economic development agency responsible for province-wide investment promotion, the Eastern Cape Development Corporation (ECDC) continues to vigorously pursue investment and trade in priority sectors of the economy despite a poor investment climate that caused significant delays in pinning down investment decisions. ECDC assists investors (at no cost) by identifying business opportunities in key sectors, facilitating and financing joint ventures, accessing investment incentive schemes and local business service networks, creating access to a diverse portfolio of available land and buildings, facilitating corporate relocations and aftercare services, and lobbying provincial and national government for relevant interventions. The corporation’s efforts in investment and trade cannot be overstated, as these provide ideal platforms for backward and forward linkages in key sectors, such as agriculture and agriprocessing. The attraction of large investments into the provincial economy invariably leads to supplier opportunities for small businesses, further downstream opportunities and access to international best practice. ECDC attracted R612.6-million through investment promotion during the 2011/12 financial year, which was less than the planned R750-million. However, significant inroads were made in key sectors, such as automotive, agri-processing, pharmaceuticals, aquaculture and renewable energy, which resulted in 2 027 jobs being saved and/ or created during the year. The province is also playing a pivotal role in the renewable energy space, particularly in wind and solar. There are sizeable prospects for hydropower and biomass going forward. Furthermore, ECDC has the responsibility to increase the value of trade and the number of exporters from the province by facilitating access for local entrepreneurs to new markets. As such, during the review period, ECDC began to explore opportunities made possible by various trade policies, specifically in broadening trade within Africa. The value of exports from the Eastern Cape grew from R900-million in 2010/11 to R1.7-billion in the 2011/12 financial year period. The automotive sector continues to boost exports, driven by international contracts for the resident original equipment manufacturers (OEMs). The value of referrals to the development finance division for funding consideration was R52-million due to expansions and new applications. The automotive sector is still responsible for the biggest share of goods exported from the province (40%), but there are encouraging exports for agri-processing (29%). Sectors sitting at the lower end of the export spectrum are clothing and textiles (9%), energy (9%), general manufacturing (6%), medical (3%) and security (1%). In future, ECDC will further strengthen its focus on attracting investment and trade opportunities in key economic sectors, and on championing the development of new industries. ECDC will continue to align its efforts with the Provincial Growth and Development Plan and the Provincial Industrial Development Strategy, as well as the Department of Trade and Industry’s macroeconomic strategy to increase developmental impact in the Eastern Cape, particularly as there have been improvements to enable increased localisation. www.ecdc.co.za eastern cape business 2013 20 THE PROVINCE IS RICH IN NATURAL RESOURCES, HAS CLOSE PROXIMITY TO INTERNATIONAL AND SUB-SAHARAN AFRICAN MARKETS AND HAS CUSTOM-BUILT INFRASTRUCTURE AT THE PROVINCE’S TWO INDUSTRIAL DEVELOPMENT ZONES. This, in addition to the area’s vibrant blend of tourism and adventure, make the province a promising offering to enterprises across various sectors. ECDC, the visionary steward of economic development in the Eastern Cape, is committed to providing channels, platforms and resources to ignite your business idea into a prosperous enterprise for local and export markets. South Africa has favourable trade agreements with the United States, European Union and the Southern African Development Community. Together with government’s investment incentives, your next trade or investment-related idea is set to reach its full potential. ECDC invites interested investors to call the agency’s Investment and Trade Promotion Unit on +27 (0) 43 704 5606 or email email@example.com SMGAFRICA_6641 special feature Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. South Africa fact file Capital: Pretoria Population: 50.59 million (July 2011 est – Census 2011 data due in September 2012) Area: 1 220 813km2 GDP: R2 964-billion (2011) GDP growth: 3.1% (2011) Income per capita: R58 549 (2011) CPI: 6.1% y/y (April 2012) PPI: 6.6% y/y (April 2012) Unemployment: 25.2% (Q1 2012) Gini Index: 57.8 (2009 UN Report) Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 6.2 4.1 6.2 6.5 2.9 -6.3 4.0 4.6 2.7 Q2 5.7 7.4 6.7 3.1 4.5 -2.8 2.8 1.0 Q3 6.7 5.6 4.8 5.0 1.8 1.8 3.1 1.7 Q4 4.3 2.7 6.4 6.0 -1.7 3.5 4.5 3.2 Annual 4.6 5.3 5.6 5.5 3.6 -1.5 2.9 3.1 Gross domestic product South Africa’s real gross domestic product (GDP) growth slowed to a 2.7% increase on a quarteron-quarter seasonally adjusted annualised (q/q saa) basis – 2.1% year-on-year (y/y) in the first quarter of 2012 from 3.2% q/q saa (2.9% y/y) – in the fourth quarter of 2011 (Table 1). The largest industries, as measured by their nominal value added in the first quarter 2012, were finance, real estate and business services, making up 19.3% of the economy, and general government services making up 14.6%. The q/q saa changes in value added by the primary, secondary and tertiary sectors were -11.2%, 6.4%, and 3.0% respectively, during the first quarter of 2012. What is noteworthy, however, is that the mining sector – the number-one export industry in the country – declined by 16.8% q/q saa in the first quarter, due in part to a six-week illegal strike at Impala Platinum, the world’s secondlargest platinum miner. Table 1: GDP growth per quarter, 2003–2012 Q1, constant prices, q/q seasonally adjusted annualised. Source: Statistics South Africa Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP (R-m) 1 020 007 1 168 699 1 260 693 1 415 273 1 571 082 1 767 422 2 016 185 2 262 502 2 398155 2 661 434 2 964 261 GDP per capita (R) 22 899 25 831 27 631 30 297 33 176 36 844 41 525 46 072 48 318 53 088 58 549 Table 2: GDP and GDP per capita at current prices. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA EASTERN CAPE business 2013 22 special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Construction (contractors) Wholesale and retail trade, catering and accommodation Transport, storage and communications Finance and insurance, real estate and business services Personal services General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices Source: Statistics South Africa Value in millions (R) 63 984 2 260 381 357 756 78 532 120 420 386 430 220 060 565 224 183 493 434 224 2 670 504 293 757 2 964 261 % Real change from 2010 -.04 0.2 2.4 1.3 0.8 4.4 3.3 3.5 2.4 3.9 3.0 4.4 3.1 % of GDP 2.2 8.8 12.1 2.6 4.1 13.0 7.4 19.1 6.2 14.6 90.1 9.9 100 Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. Trade: imports and exports April 2012, after a deficit of R5.5-billion in March, taking the cumulative trade deficit in April 2011 South Africa’s international trade has risen to R36.5-billion, compared with R7.5-billion in sharply over the last 10 years (Table 4). In the first four months of 2011. 2004, the value of imports rose above that of A record R17.4-billion deficit was set in January exports. Tables 5 and 6 show the largest import 2009, but as exports began to improve, so the and export sectors respectively, for April 2012. deficits narrowed in 2009 to become surpluses Important import sectors in April 2012 were in 2010. South Africa recorded its first annual machinery (R15.9-billion), mineral products – trade surplus in seven years in 2010 of R4.8chiefly crude oil (R13-billion), transport equip- billion, following a few stronger than expected ment (R10.9-billion) and chemicals (R5.4-billion). surpluses on the trade account during the year. On the export side, the most important sectors In 2012, however, the rise in the oil price in the were mineral products, chiefly coal and iron ore first few months, coupled with a sharp reduction (R14.8-billion), precious metals and diamonds in platinum exports, saw the non-SACU foreign (R10.2-billion), base metals (R7-billion) and trade balance firmly in the red. transport equipment (R4.6-billion). The old myth that a weaker rand leads to more Most of South Africa’s foreign trade takes place exports is once again disproved by the facts, as with Asia, the United States and Germany (Tables import growth was 23.5% in 2011, while export 7 and 8). In 2011, China, the United States and growth was 19.9% when the rand was weaker Japan were, in descending order, the country’s due to a R15-billion deficit. Prior to November top export markets, while top import-source 2011, when the rand had been stronger, export countries were China, Germany and the US. growth had exceeded import growth. In 2010, South Africa recorded a trade deficit of R9.9- when the rand was strong because export growth billion for its trade with non-Southern African of 14.9% exceeded import growth of 8.1%, there Customs Union (non-SACU) trading partners in was a R4.8-billion surplus, the first annual surplus 23 EASTERN CAPE business 2013 special feature Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Imports in R-m 147 356 187 608 216 033 275 427 258 839 306 927 351 665 465 040 561 194 727 632 541 173 585 219 722 637 Exports in R-m 165 555 210 373 251 330 314 102 275 581 296 246 331 405 396 529 491 253 663 099 513 864 590 207 707 511 Sector 1. Machinery, mechanical and electrical 2. Mineral products 3. Transport equipment 4. Chemical products 5. Base metals 6. Plastics, rubber 7. Textiles 8. Optical, medical, photographic 9. Foodstuffs, beverages 10. Vegetable products Total Value in R-m 15 903 12 991 10 880 5 420 3 190 2 591 1 726 1 579 1 433 1 045 62 028 Table 4: Annual value of South African non-SACU imports and exports, 1998–2011. Source: www.sars.gov.za. Table 5: South Africa’s top 10 import sectors, April 2012. Source: Source: www.sars.gov.za since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe , Ivory Coast , Kenya , Tanzania , Argentina  and India . Sector 1. Mineral products 2. Precious metals and diamonds 3. Base metals 4. Transport equipment 5. Machinery, mechanical, electrical 6. Chemicals 7. Vegetable products 8. Foodstuffs, beverages 9. Plastics, rubber products 10. Pulp and paper 11. Animals, animal products Total Value in R-m 14 841 10 239 6 968 4 613 4 460 3 350 1 738 1 497 1 126 779 378 52 154 Foreign direct investment and public investment South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRIC (Brazil, Russia, India and China) countries in the upcoming 12 months, according to Grant Thornton’s 2011 International Business Report (IBR) on M&A activity. SA was invited to join the BRIC grouping in 2011. South Africa also fared well in a number of other indices. It was ranked 45th out of 133 on the World Economic Forum’s Global Competitiveness EASTERN CAPE business 2013 Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za …Continued on pg 26 24 FREE MEMBERSHIP OF FRONTIER MARKET NETWORK The Frontier Market Network is the largest online business community focused on investment and business generation in fast-growing markets. GET CONNECTED. JOIN TODAY. Membership is FREE and beneﬁts include: • • access to a database of investment and business opportunities access to the latest market intelligence including market updates, country and regional proﬁles, news and analysis and research reports • connection to a network of over 120 000 people, companies and service providers operating in frontier markets access to a range of services required to complete transactions such as legal, research or due diligence services • Register at www.frontiermarketnetwork.com to begin your membership special feature Index for 2009/10, and improved to 54 out of 139 countries in 2010/11. It was 32nd out of 181 countries in the World Bank and International Finance Corporation’s Doing Business 2009 report, and 34 out of 183 in 2010. This study measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was at number 35 in 2008. Public-sector infrastructure investment, the expansion of electricity generation and distribution capacity by electricity supplier Eskom, upgrades to ports and railways by state-owned enterprise Transnet, and major road-construction projects remain the major challenges for the economy, but government continues to invest strongly in all areas. The ratio of fixed capital investment to GDP rose consistently over the five years to the end of 2008, to reach 24.6%, just below the government’s target of 25%. A cut-back in both government and private-sector fixed investment saw the ratio drop to 18.9% in the fourth quarter of 2010, before starting a slow recovery. General government fixed investment had the first quarterly increase in the second quarter of 2011 after nine quarters of decline. Total fixed investment has now increased for eight consecutive quarters and should continue to support growth going forward. Consumer spending has been robust, even Country 1. China 2. Germany 3. USA 4. Japan 5. Saudi Arabia 6. India 7. UK 8. Iran 9. Nigeria 10. Italy Value in R-m 103 174 77 396 56 944 34 377 32 294 29 220 28 965 27 121 22 655 19 574 as households repaired their balance sheets. The last time household expenditure growth exceeded income growth on a q/q saa basis was back in the fourth quarter of 2007. The result of this, as well as a marked reduction in interest rates, was that the household debt to income ratio fell to 74.6% in the fourth quarter of 2011 from 75.6% in the third quarter of 2011 and a peak of 82.7% in the first quarter of 2008. The debt service ratio eased to 6.7% in the fourth quarter from 6.8% in the third quarter, and is now at levels last reached in 2005. Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 15.70 16.00 16.50 17.70 19.70 21.05 23.20 20.30 18.80 Q2 16.00 16.20 16.00 18.60 21.20 22.44 22.40 19.88 19.00 Q3 15.90 16.20 17.00 18.90 20.40 24.02 21.20 19.40 18.90 Q4 16.00 16.20 17.10 19.70 20.20 24.64 20.30 18.90 18.90 Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za Country 1. China 2. United States 3. Japan 4. Germany 5. UK 6. India 7. Switzerland 8. Netherlands 9. Zimbabwe 10. Mozambique Value in R-m 90 210 61 044 55 635 42 684 29 001 22 224 22 902 22 902 17 776 17 680 Table 7: South Africa’s top 10 import source countries in 2011. Source: www.sars.gov.za Table 8: South Africa’s top 10 export markets, in 2011. Source: www.sars.gov.za EASTERN CAPE business 2013 26 RURAL development A guide to rural development in the eastern cape province Photo: anglo american special feature special feature Rural development Helping emerging farmers gain access to markets is key to transforming the rural economy. Strategies are assisting smallholder farmers to improve their knowledge and infrastructure. EASTERN CAPE business 2013 28 photo: Eastern Cape Development Agency, Clint Muller P overty and hunger are present in many rural parts of South Africa. The worst areas were homelands in apartheid South Africa; whole regions denied investment for decades. Rural development strategies are attempting to overcome these years of neglect and set the rural heartland on a path to recovery. Food security is central to the strategy, which is coordinated by the National Department of Agriculture, Forestry and Fisheries (DAFF). The entire value chain of agriculture is under scrutiny, with the aim of helping small-scale farmers by improving infrastructure, creating new markets and assisting them to gain access to the big buyers, such as supermarkets. In many areas, private companies such as South African Breweries, Woolworths and Pick n Pay are already on board. Massmart is committed to creating opportunities for emerging farmers through its Direct Farm Programme. DAFF aims to increase the number of smallholder producers in the country from 200 000 in 2014, and to have a total of 250 000 by the year 2020. As the DAFF strategic plan says, ‘there is a need to coordinate and integrate all the support provided to smallholder and subsistence producers’. special feature Provincial strategies An ambitious pilot programme located within the Eastern Cape Premier’s office has been testing a new approach. Run by Promoting Rural and Urban Livelihoods (RuLIV), an East London-based NGO, the Sustainable Rural Development in the Eastern Cape (SURUDEC) programme has focused on helping communities unlock hidden assets, including the knowledge within that community, and finding a way to best use financial grants. The R120-million project is funded by the European Union. The Provincial Department of Rural Development and Agrarian Reform (DRDAR) will establish a Rural Development Agency to support the provincial Rural Development Strategy. The most pressing needs of rural communities are: access to bulk water and good land, mechanisation, marketing and infrastructure. The DRDAR is supporting ‘climate-smart’ agriculture. Companies such as the Biomass Corporation are investigating bamboo-to-fuel projects, which can help reduce carbon emissions while giving rural communities added earning power. The Tsitsikamma wind project, in which Watt Energy has a significant stake, is similar in that the local community has an ownership stake in the project. The King Sandile Development Trust has established a tomato farm on the Fish River, and signed a partnership with Cape Concentrate to buy product to make into paste. The Social Change Assistance Trust (Scat) has made field workers available to assist in every local development office. The Kay Mason Foundation is working with NGO Seed to roll out training in ecologically sound agricultural practice in Mthwaku. Municipal initiatives The Amathole District Municipality (ADM), encompassing the rural areas inland from East London, has done a comprehensive survey of its agricultural sector. Tunnel or hydroponic production is identified as a possible growth sector, and there has been interest from foreign investors. The ADM has a number of vegetable and irrigated crop schemes that are currently underutilised. With the correct intervention (physical repairs, skills training, links with markets), these nine schemes could produce about R90-million in annual turnover and create many new jobs. There is great potential for schemes of the same type in the eastern parts of the ADM. A plan to inter-plant maize with pumpkins and beans is strongly supported by the compilers of the survey. A key component of any rural strategy is access to markets of all sorts. The Ntinga OR Tambo Development Agency runs the Kei Fresh Produce Market, a vital part of the food distribution cycle of Mthatha. As pointed out in a report for the NGO Afesis, ‘opportunities for the supply of small quantities of produce to a range of outlets do exist.’ Spar and Lombardi Foods, traders, restaurants, corner shops and hawkers are listed as possible buyers. For small-scale farmers to succeed, they have to become reliable producers of quality food, and useful interventions by government will support that goal. Thulasizwe Mkhabela, a senior researcher at the National Agricultural Marketing Council, has shown that certain key interventions can have positive spinoffs: • The provision of good auction pens • Linking bodies such as municipalities, provincial departments, veterinary bodies, private auctioneers and civil engineers • Establishing custom feeding-programme feedlots • Providing safe slaughter facilities • Improving transport and communication infrastructure At local level, the Matatiele Local Municipality has shown that targeted intervention can work. Practical steps to help local farmers in this agricultural area include: the building of a sheep-shearing shed, the creation of a broiler structure to hold 1 000 broiler chickens for the Malubalube Poultry Enterprise, and the supply of equipment to the Thembalihle Leather Crafters. 29 EASTERN CAPE business 2013 PROFILE Matatiele Local Municipality Where nature, agriculture and tourism are investments of choice. Matatiele Local Municipality (MLM) is located in the northern part of the Eastern Cape Province. Matatiele forms part of the four local municipalities located within Alfred Nzo District. It consists of 26 municipal wards, has a population of about 258 758 people, and accounts for 58% (4 352km2) of the district’s geographical area. Mission To create awareness of nature conservation, to promote and support agricultural activities, The Matatiele Town Hall. to promote and market local tourism organisations and small, medium and micro enter- cultures. Matatiele is also an investment destiprises, and to create an environment conducive nation of choice in areas such as livestock and for investment. crop farming. The good quality of Matatiele’s soil and favourable rainfall conditions suggest Business sectors that its agricultural sector has the potential The following sectors are the largest contribu- to be more productive, efficient and competitive. The area is also suited to dairy and tors to Matatiele’s economy: • Commerce and industry honey production, and is biophysically suitable • Community, social and other personal for commercial forestry. The manufacturing services sector offers services like agri-processing. • Wholesale and retail trade Quarrying takes place in Matatiele, and the • Catering and accommodation stone that is extracted has the potential to be • Finance and business services transported to various parts of the country for • Transport and communication building purposes. • Construction Key development objectives • Agricultural and agri-tourism and strategies • Manufacturing, mining and quarrying The goals and objectives for the development Attractions and main services of the economy of Matatiele are: The abundant natural beauty that Matatiele • To promote the development of agrioffers makes it an area of high tourism potenbusiness and optimal use of available agri-processing opportunities tial. Among its attractive features are its wide open spaces, mountainous terrain, rivers, • To promote the development of tourism scenic botanical features, flora and fauna, wetfacilities and other facilities to increase lands, picnic spots, birds and snowy winters. interest among potential tourists In addition, Matatiele is also home to diverse EASTERN CAPE business 2013 30 PROFILE • To promote training and capacity-building festivals, fruit festivals, flower festivals, birdin the construction, manufacturing, mining watching trips, hikes and wagon rides. • Bird-watching/avitourism: Since bird-watching and transport sectors • To promote community economic and social has become one of the fastest-growing recdevelopment through the provision of reational activities that attracts international tourists, it is used to boost the economic business-development-related capacityperformance of the municipality. One of building programmes, and to advance infrastructure development the conditions for the success of avitourism • To promote small, medium and micro enterin this municipality is that habitat protecprises (SMMEs), entrepreneurship and tion and environmental education are incorinformal sector participation porated into the strategic documents of • To promote rural community economic the municipality. development and empowerment • Eco and adventure tourism: The area will soon be dominating in ecotourism and a leading The five key strategic priorities for Matatiele adventure-travel tourist destination in the Local Municipality are: country. Existing activities include rafting, • Reduction of service-delivery backlogs hiking and 4x4 trips through the mountain • Local economic development and rural passes that form the border between the development municipality and the southern districts of • Employment creation through the Expanded Lesotho. Qacha’s Nek, Ramatseliso’s Pass Public Works Programme (EPWP) and and Ongeluksnek provide access to Lesotho. Community Work Programme (CWP) • Winter tourism: Since snow is often expe• Proper spatial-development planning rienced in winter, the municipality is conthrough the Spatial Development Framework sidering the possibile introduction of (SDF), and localised SDFs for the nodal areas skiing as one of the tourism activities in of Maluti, Cedarville and Matatiele the area. • Financial management Tourism The municipality is well-located in terms of accessibility, and boasts road transport to some of the major centres of South Africa, including Durban, Gauteng, Cape Town and roads that link to Lesotho. There is also a rail network and an airstrip. Contact details Key personnel: Cllr NS Nkopane, Mayor Dr DCT Nakin, Municipal Manager Key contact people: N Seshea, Manager: Communications, Intergovernmental Relations and Protocol L Walaza, Events and Marketing Coordinator Matatiele, as an investment and tourism destination of choice, boasts the following tourism attraction areas: Tel: +27 39 737 3135 • Nature-based tourism: The municipality boasts Fax: +27 39 737 3611 several unspoiled environments with an Email: firstname.lastname@example.org or abundance of naturally occurring attractions. email@example.com • Cultural tourism: There are opportunities for Physical address: 102 Main Street, showcasing the various cultures that exist in Matatiele 4730 the municipality. Postal address: PO Box 35, Matatiele 4730 • Agricultural tourism: A number of festivals, all Website: www.matatiele.gov.za of which are associated with farms and agriculture, have been held in the municipality. They include agricultural shows, pumpkin 31 EASTERN CAPE business 2013 interview Creating partnerships to boost growth Mayor of Matatiele Local Municipality Ntombovuyo Nkopane highlights key programmes that target rural development. What are the main priorities for Matatiele Local Municipality, particularly with regard to rural development? Matatiele Local Municipality is in the process of buying a milling facility for our local agricultural co-operatives and emerging farmers, as this will enable value addition for their grain products, for example, maize and sorghum. Furthermore, in partnership with the Eastern Cape Department of Rural Development and Agrarian Reform, we are resuscitating a programme of massive food production for our rural communities, and that, in turn, will support the milling facility with primary production that will be processed for value addition. Also, the municipality is promoting rural community economic development and empowerment by promoting investment in basic infrastructure and social welfare, promoting broadened access to productive resources and providing funding for local economic development and implementation in the rural areas. What are the main challenges that the Municipal Council faces in improving the prospects for the municipal area? The municipality is faced with challenges such as poor infrastructure, lack of infrastructure maintenance and lack of access to municipal services especially in the rural areas. Limited access to funding, and the lack of technical support and facilities for emerging farmers, entrepreneurs and local tourist attraction operators remain a challenge. The national challenge of skills shortages across economic sectors and limited scientific knowledge in the agricultural and forestry sectors is hitting the municipality badly. Labour-force migration, HIV and Aids and low school completion rates adversely affect labour-force participation rates in the municipality. Low skill-completion rates lead to a rise in unemployment and crime rates, which hamper development. Which challenge do you feel you are successfully addressing? The municipality and the Department of Education are still faced with a challenge of mud schools in Matatiele, but the problem is being addressed through the Mud Structure Eradication Programme. This programme aims to eradicate the 1 652 mud schools in the province and replace them with safe structures. Ntombovuyo Nkopane Ntombovuyo Nkopane has served for more than 11 years in local government. One of her goals is to empower women and improve accountability. She served as an Exco member and speaker at Umzimvubu Local Municipality until 2006. In 2006, she was elected as the speaker of council for Matatiele Local Municipality. She also served as the Mayoral Committee Member of Alfred Nzo District Municipality. In 2011, she was elected as mayor of Matatiele Local Municipality. eastern cape business 2013 32 PROFILE Watt Energy Watt Energy is an established alternative-energydevelopment company with strong links to communitylevel beneficiaries. Watt Energy is a specialist entrepreneurial company with a mission to alleviate poverty and empower local communities by establishing renewable-energy-generation projects that will develop rural areas and create quality jobs. Watt Energy identifies rural areas with available land and investigates renewable-energygeneration projects suitable for co-existing with current and future agricultural activities. The company then sets out to collaborate with relevant stakeholders to construct viable and sustainable projects capable of empowering rural communities. Target market Watt Energy focuses on partnering with private enterprises intending to invest in sustainableenergy generation, government agencies and once the project is operational (excludes other sustainable-energy enterprises looking to grow projects currently under development). the industry and communities. Watt Energy matches available resources with stakeholders BEE status who lack the expertise and financial backing to 70% Black ownership start energy projects. 70% Black directors 73% Black staff complement South Africa has abundant renewable energy resources, which are being harnesssed by Watt Energy. Key facts and figures Watt Energy was founded in 2008 by social entrepreneur Mcebisi Michael Msizi and is based in the small Langkloof town of Kareedouw in the Eastern Cape, with its corporate office in Port Elizabeth. Watt Energy’s first major project is Tsitsikamma Community Wind Farm (TCWF), which will have a generation capacity of 95MW. This project is a joint venture between Cennergi, Watt Energy and the Tsitsikamma Development Trust. Turnover is currently about R5-million, with the capacity to turn approximately R20-million Contact details Key contact person: Mcebisi Michael Msizi, Executive Chairman Mark Scheepers, Chief Executive Officer Elgee Davies, Marketing Coordinator Tel: +27 42 288 0204 Email: firstname.lastname@example.org Physical address: 3 Van Riebeek Street, Kareedouw 6400 Website: www.wattenergy.co.za Facebook: www.facebook.com/wattenergy.sa Twitter: www.twitter.com/wattenergy energy 33 EASTERN CAPE business 2013 focus Job creation through bamboo projects Initiatives by SAbamboo and the Biomass Corporation SA are drawing attention to this potentially lucrative industry in the Eastern Cape Province. Bamboo growing and value-adding Bamboo growing and value-adding activities provide an excellent entry point for government funding and other initiatives that are designed to drive local economic development and mass job creation, particularly in the Eastern Cape Province, where poverty is extreme and levels of unemployment remain high. The bamboo sector can be generally categorised into the following subsectors: Handicrafts: characterised by high levels of unskilled and semi-skilled manual labour for processing relatively small volumes of harvested bamboo. Bamboo shoots: a highly nutritious part of the bamboo plant. Bamboo has numerous uses, including Industrial processing: typically comprises food-production, furniture and flooring. mechanised production using comparatively large volumes of bamboo culms. The bamboo material is then used to make a variety of carbon and assistance in returning fallow land products such as BTL, laminated construction to a productive state. material, activated carbon, torrefied pellets, Furthermore, due to the existence of highly soil improving char, flooring or biocoal. sophisticated industrial development zones (IDZs), harbours and an international airport, there exists a high potential for facilitating value-added proBamboo in the Eastern Cape cessing in the province, through light and heavy Based on the discovery of well-adapted wild industrial manufacturing, to supply local marbamboo growing in the region, the Eastern kets and export engineered-bamboo products. Cape has been touted as one of the most Recent developments in the Eastern Cape have ideal locations for large-scale commercial proved that opportunities do exist for leveraging bamboo cultivation in South Africa. The aim bamboo as a basis for rural industrialisation and is to use degraded land in a manner that poverty eradication. For this reason, state-funded increases the livelihood of rural communi- agencies such as the Eastern Cape Developties by providing food, jobs, skills, furniture, ment Corporation (ECDC), the Department of building materials, biocoal, sequestration of Economic Development, Environmental Affairs eastern cape business 2013 34 photo: emrank/flickr focus and Tourism (DEDEAT) and the Department of Rural Development and Land Reform (DRDLR) have contributed grants of more than R6-million towards the support of bamboo growing and value-adding projects in Ndakana and Centane rural villages. SAbamboo believes that the correct implementation and management of bamboo projects in the Eastern Cape will capacitate rural residents, enabling them to secure ownership and control of strategic resources and the means of production. This might reduce poverty and enhance the creation of wealth for rural households and future generations. Furthermore, it has been established that bamboo growing will assist in mitigating the negative effects of climate change. At present, the extent of mature bamboo in the province is unknown, and it is doubtful that existing volumes are viable for industrial utilisation. Therefore, there is an urgent need for largescale bamboo production in the Eastern Cape to create employment. • 1ha for cash-crop (vegetables) cultivation (22 222 cash-crop seedlings) Fencing for the first three farms (33ha) has been completed and has provided jobs for a total of 30 residents. Cash-crop planting has commenced, performed mainly by members of NWP themselves as a cost-saving measure. Continuous cash-crop watering and weeding is expected to employ five residents per hectare, while bamboo watering and weeding will employ one person per hectare. The job-creation target of the bamboo project is 225, including temporary jobs. Final completion and handover of the 100ha bamboo project is scheduled for August 2013. Bamboo Farming Expansion Strategy SAbamboo intends to identify and recruit as many communities as possible to develop bamboo plantations through existing institutional structures and registered entities, including community trusts, co-operatives and special purpose vehicles (SPVs) that may be formed between the target communities and private investors. Current and future Contracts between SAbamboo and the entities bamboo production will be signed, which will mobilise and train target Ndakana Bamboo Farming Project (NBFP) communities in sustainable bamboo-growing In 2012, Ndakana Wood Products (NWP) practices through the established participatory received a R2-million grant to plant 40 000 rural development approaches to be implebamboo plantlets on 100 hectares of communal mented on prospective communal land totalling land in Ndakana. The grant was awarded by the 10 000ha or more, which has been identified Local and Regional Economic Development within the Amathole, Cacadu, Chris Hani and (LRED) Fund of the DEDEAT. OR Tambo districts of the Eastern Cape. The NBFP will use participatory planning, moniA key aspect of bamboo growing is to protoring and evaluation for a communal imple- mote sustainable land-use management pracmentation system. Altogether, there are nine tices involving transformation of degraded land villages participating in the project, whereby each and mitigation of greenhouse-gas emissions. village has been allocated 11ha of communal SAbamboo intends to build adaptive capacity land, with the possibility of future expansion in bamboo growers to be able to cope with the to reach a target of 300ha of bamboo farming impacts of climate change. Participating comin Ndakana. All labour is drawn locally from the munities will benefit from improved agricultural respective communities. systems, increased food security and access to The R2-million is being split equally between new markets for generating income. the nine separate communities. Each of the nine ￼ villages will develop an 11ha farm as follows: www.biomasscorp.com/southafrica • 10ha for bamboo growing (4 444 bamboo www.sabamboo.com plantlets) 35 eastern cape business 2013 focus Massive investments boost growth The East London Industrial Development Zone offers world-class facilities for world-class investors. T he East London Industrial Development Zone (ELIDZ) is laying the groundwork for increased automotive investments, with a multi-million-rand expansion due to be completed in the course of 2012. The automotive industry is one of the main arteries of local economic development in the Eastern Cape, and the ELIDZ has attracted major players in the industry. ‘Currently, Mercedes-Benz’s parent company, Daimler AG, is preparing to inject a further R2.5-billion into its East London manufacturing plant, following a decision to produce the next-generation C-Class (W205) model in South Africa; a move that will inject billions into the local economy through the direct investment and spin-offs,’ says ELIDZ chief executive Simphiwe Kondlo. While the first W205 is not due to roll off the assembly line until 2014, the ELIDZ is already hard at work preparing for the feeder ramifications of this new investment. The previous year’s impressive growth has attracted even more prosperity for the zone, with an investment of R80-million by Mercedes-Benz South Africa’s (MBSA’s) supplier, RG Brose. Add to this the ELIDZ’s plan to build a new R50-million metal surface treatment plant. The R180-million investment by Friedrich Boysen GmbH & Co KG will create 70 direct jobs by 2014. ‘We are very happy that we are opening our new facility in this area. We are also looking forward to working together with the ELIDZ and expect our first production by the middle of 2013,’ says Rolf Geisel, Friedrich Boysen president. The German company will be manufacturing complete exhaust systems for Mercedes-Benz South Africa for the new C-Class. The company is expected to produce 90 000 units per annum. eastern cape business 2013 The East London Industrial Development Zone includes a 15-hectare automotive supplier park. The announcement coincided with the extension of the ELIDZ’s 16ha Automotive Supplier Park (ASP), which is one of the original anchor facilities in the zone. The ASP was custom-designed to meet the specific production needs of its OEM supplier tenants, and has distinguished itself as a highly efficient, world-class facility. According to Kondlo, the ASP’s dedicated utilities and services, as well as its shared logistical and supply-chain solutions, drive productivity and cost-effectiveness, two cornerstones of sustainability that have proven particularly attractive to potential investors. Kondlo also pointed out that the IDZ’s ultimate focus for the sector in the short- to mediumterm is to deepen local content and to develop second- and third-tier suppliers, and that the most effective way to achieve this is to strengthen and further expand the zone’s basket of industryspecific benefits. All of these projects underline the ELIDZ’s commitment to strengthening foreign investment and job creation in the country. www.elidz.co.za 36 photo: east london idz destination eastern cape A guide to Business and leisure travel services, conferencing and accommodation in the eastern cape special feature destination overview Tourism The Eastern Cape is growing its tourism events profile. Sector Highlights The Plantation was the national winner in the 2011 Welcome Awards for meeting venues. • Buffalo City hosted the International Joint Research Conference in 2011. • Two successful Springbok Rugby Test Matches have been held at the Nelson Mandela Bay Stadium. • Sun International is spending R400-million on the Wild Coast Sun. • Tiffendell Ski Resort was bought on auction for R5.5-million. major companies • SANParks • Radisson Blu • Premier Hotels and • Shamwari • Relais & Châteaux • Protea Hotels • Tsogo Sun where great white sharks and whales can be sighted. The Camdeboo and Zebra National Parks, near to GraaffReinet and Cradock, are quite far away from Addo, but this has not stopped the visionaries from planning to one day link them all up. The Garden Route Park, a marine reserve, Resorts Donkin Lighthouse and memorial in Port Elizabeth. T he Eastern Cape has a unique set of natural assets that stretch from the wondrous Wild Coast to the forests of the Tsitsikamma and the vast open spaces of the Karoo. The combined area of the parks and reserves of the Eastern Cape cover a larger land mass than that of the Kruger National Park. The Addo Elephant National Park (Addo) is the jewel in Eastern Cape’s tourism crown. A 164 000-hectare facility that attracts more visitors than East Africa’s Serengeti National Park, Addo uniquely offers the Big Seven: with more than 450 elephants and the rest of the Big Five, the park also includes a marine section DESTINATION EASTERN CAPE 2013 38 destination overview is the other national park in the province. The Eastern Cape is home to seven different biomes (communities of plants and animals coexisting in a particular place), of which the grassland, Nama Karoo, thicket and savanna biomes are the most extensive. The Eastern Cape Provincial Government is responsible for 21 nature reserves covering 438 000 hectares, and is planning to commercialise the administration of many of these facilities, by getting dedicated businesses whose core business is tourism and conservation to take over the running of some of the reserves. Three coastal regions offer distinctly different experiences. The Wild Coast is just that, and includes towns such as Mazeppa Bay and Port St John’s. The Sunshine Coast has hotel and conference centres such as the Blue Lagoon Hotel and Conference Centre (on the Nahoon River in East London) and the Mpekweni Beach Resort (east of Port Alfred), both of which offer function venues in relaxing surroundings. Lastly, the western coast is famous for its golden beaches. These include the surfers’ paradise, Jeffreys Bay, and St Francis Bay, which is also home to the St Francis Links golf course. The golf course won the Five Star Experience Award from Compleat Golfer magazine for the fifth year in a row in 2011. There was good news for the province’s far-north, when a Johannesburg entrepreneur A spectacular hole on the St Francis Links golf course. Sun International’s Boardwalk property is being upgraded. paid R5.5-million for the Tiffendell Ski Resort near Rhodes. The new owner plans to revive South Africa’s only ski resort, which has experienced problems over the last few years. photo: (Boardwalk) jikatu/flickr, (golf course ) st francis links golf course Sports, events and festivals Eastern Cape tourism authorities are increasingly looking to the sports, events and festivals aspects of tourism as the way to increase the number of visitors to the province and to increase access to the sector for previously marginalised communities. The winner of the Eastern Cape Emerging Tourism Entrepreneur of the Year Award (ETEYA) in 2012 was Vivien Boboyi of Maidenhead Country Lodge in Queenstown. A loan from Absa Bank that enabled her to build three rooms back in 2008 was the spur to Vivien’s future success. With further support from the Industrial Development Corporation, she has man- 39 DESTINATION EASTERN CAPE 2013 destination overview aged to grow her business to an 18-room accommodation and conference venue. The National Tourism Expo, held at the East London ICC (September 2012) provided a great opportunity for young people to see what sort of career options the tourism sector offers. The CathSETA (Culture, Arts, Tourism and Heritage) jointly hosted the Expo with the national and provincial departments of tourism. Port Elizabeth is the new home of the South African leg of the IRB Sevens. The event, sponsored by Emirates Airline, is part of an international roster of competitions that sees the top teams in the world compete against one another from Edinburgh to Hong Kong via Las Vegas. The city expects the rugby tournament to generate about R80-million in spending by visitors and has budgeted R10.5-million to support the event. The province proved its hosting abilities in 2010 with a seamless hosting of the Soccer World Cup games played at the Nelson Mandela Bay stadium. The stadium drew praise from every quarter during the World Cup, and has found a regular user in the provincial rugby team, EP Kings, which will participate in the international club rugby competition, the Castle Rugby Championship, for the first time in 2013. The splendidly modern stadium provided an ideal backdrop when global superstar Neil Diamond came to visit the city in 2011. The singer attracted an audience of 22 000. The Springboks also beat the All Blacks at the venue prior to leaving for the Rugby World Cup, and played to an exciting draw against England in 2012. The Nelson Mandela Bay Development Agency has plans to develop the stadium precinct to include an eightstorey office block that will include space for the Southern Kings, Eastern Province Rugby, South African Football Association and other sports and marketing bodies. A highperformance centre is among the other ideas being put forward for the stadium. The location of the stadium on the edge of North End Lake lends itself to restaurants and a hotel. The economic impact of the SA Ironman competition, held every year in Port Elizabeth in April, is said to be more than R40-million. The Africa Open is proving a successful tournament for the Eastern Cape. East London Golf Club has seen highprofile winners every year since the event was first held at the club in 2009. According to europeantour.com, the global gross international media value of the 2010 event was calculated at about R80-million. The Ocean Racing Series presents competitions for swimmers and paddlers, while the Redhouse River Mile is a popular event for open-water swimmers. Hobie Beach is a well-known venue for yacht racing and Ironman competitions. The Herald Cycle Tour is an established event and the city has two horseracing venues: Arlington and Fairview. The Eastern Cape is also one of two province’s bid- Annual events February: Buffalo Regatta, Buffalo River; Redhouse River Mile. April: Bathurst Agricultural Show, Bathurst; Nelson Mandela Bay Splash Festival, Port Elizabeth. May: Addo Elephant Trail Run. June: Kirkwood Wildlife Festival and auction; National Arts Festival, Grahamstown. July: Billabong Pro international surfing competition, Jeffreys Bay; The Washie 100-mile race, East London to Port Alfred; Biltong Festival, Somerset East; Wild Coast Wet ‘n Wild Festival, Cintsa. August: Citrus Carnival, Addo. September: Loerie Naartjie Festival. October: Wild Coast Cultural Festival; Addo MTB Challenge cycle races, Addo Park; Fugard Festival, Nieu-Bethesda; Bedford Garden Festival; Fish River Canoe Marathon. November: Harbour Festival, East London. December: Homecoming Jazz Festival, East London. DESTINATION EASTERN CAPE 2013 40 C O N V E N T I O N C E N T R E - H OT E L - S PA N OW YO U C A N M I X B U S I N E S S ~ with~ L E I S U R E At last – a full spectrum conference solution in the heart of Port Elizabeth! Open in December 2012, The Boardwalk Convention Centre features: - A 2000m² Ballroom seating 1800 cocktail format, 2200 cinema format, 1400 banquet layout. - Four fully equipped breakaway rooms. - Five Star accommodation at The Boardwalk Hotel and Spa. - Full access to The Boardwalk’s wide range of exciting bars, restaurants and onsite entertainment facilities and much more! WHERE CUTTING EDGE CONFERENCING M E E T S E X C E P T I O N A L E N T E R TA I N M E N T F O R M O R E I N F O R M AT I O N , G O T O W W W. S U N I N T E R N AT I O N A L . C O M OR CONTACT THE BOARDWALK CONVENTION CENTRE ON 041 507 7777 OGILVY CAPE TOWN 51627/E destination overview ding for a new addition to the European Tour that will be staged in South Africa in December – the Nelson Mandela Championship. The Billabong MSF Pro Surfing competition is held every July at Jeffreys Bay, which is internationally renowned for its perfectly breaking waves. International points are awarded. The National Arts Fes tival is South Africa’s premier arts festival. Drawing up to 50 000 visitors every year to the educational centre of Grahamstown, the National Arts Festival is an institu tion, attracting aspiring and established local and international artists. A study by the Department of Economics and Economic History at Rhodes University has shown that about R33-million is brought into the area during the time of the festival. The Valley of Desolation in the Camdeboo National Park. a little more than half-a-million rand into an ethnic jewellery project in the Baviaanskloof. The project aims to take the work of 47 crafters working with renewable materials and help them convert it into marketable products. Beneficiaries have also been enrolled on a one-year training programme. A growing trend in the tourism sector is responsible tourism. The Calabash Trust (and associated Calabash Tours) is an example of this. Not only does the tour company aim to conduct tours in a way that involves local communities, but the Trust also helps to set up volunteer opportunities for overseas visitors. In 2010, a group of schoolchildren from the LVS School Heritage in Berkshire, UK, helped build a sports field for Vusumzi Primary The heritage and crafts sub- School near Addo. sectors are other avenues for helping emerging tourism Hotels operators to get involved in the mainstream. The opening All of the major hotel groups have properties in the Eastern of the Mandela Legacy Bridge Cape, and new additions were made to the province’s bed near Mthatha in July 2012 capacity in the period leading up to the Soccer World Cup. This was a case in point. In this came in the form of a R320-million investment in a five-star case, national government has hotel in Summerstrand near Pollock Beach, which is managed by provided the infrastructure, Radisson Blu. City Lodge also added two new lodges (and 293 including a new tar road, to rooms) to their Port Elizabeth portfolio, bringing their properties enable visitors to get to Nelson in the city to five, and their total beds to 623. Mandela’s birth village, Mvezo. Premier Hotels and Resorts has three hotels in East London The Eastern Cape Depart- and runs the Mpanga Private Game Reserve on the outskirts of ment of Economic Devel - the city. The 260-room Premier Hotel EL ICC offers views over opment and Environmental the Indian Ocean and is located right next to the International Affairs (DEDEA) has injected Conference Centre. DESTINATION EASTERN CAPE 2013 42 photo: michael clarke stuff/flickr destination overview Tsogo Sun has two hotels in East London and one each in Port The Plantation in Port ElizaElizabeth and Mthatha. Three of the hotels are Garden Courts, beth was the national winner while the Southern Sun Hemingways in East London is currently of the FNB-sponsored 2011 being revamped. A new restaurant, 41 new rooms and a pavilion Welcome Awards for best are being added. meetings venue. Sun International runs two of the best-known resorts on the The Feather Market ConWild Coast, the Fish River Hotel and Resort and the Wild Coast vention Centre in Port Sun. The latter is at the start of the third and final phase of a Elizabeth is a successful adapR400-million upgrading project which will see 293 rooms, the tation of a Victorian building kitchens and convention centre refurbished, and the construc- for modern use. It is used to host gala dinners, exhibition of a waterpark. Having been granted a 15-year extension on its gaming tions, product launches and licence, Southern Sun will spend R867-million on building a concerts. new five-star hotel and conference centre at its Boardwalk The new convention centre property in Port Elizabeth. The old hotel will become a casino. going up at the Boardwalk Protea Hotels has hotels in Port Elizabeth, Tsitsikamma and in Port Elizabeth will be a St Francis Bay, together with an African Pride game reserve. major attraction for future Relais & Châteaux, one of the world’s top luxury brands, is conferences and exhibitions. the concessionaire of the Gorah Elephant Camp within Addo. Business tourism Investment opportunities Walter Sisulu University (WSU) hosted the International Joint The Eastern Cape DevelopResearch Conference in 2011 at the East London International ment Corporation (ECDC) has identified some key investConference Centre, Buffalo City’s largest conference venue. WSU partnered with the African Health Sciences Congress and ment opportunities: two other bodies in welcoming more than 350 delegates from • Concessions at provincial game reserves and nature all over the world. WSU has a Chair of Indigenous Knowledge. Nelson Mandela Bay Municipality has a number of good facilireserves such as Fish ties for hosting conferences and events. The municipality has River, Baviaans, Karoo and established a conference bureau to assist in conference booking Pondoland and planning. • The planned Madiba Bay Leisure Park • Upgrading of the East Online resources London beachfront Buffalo City Tourism: www.tourismbuffalocity.co.za • New resorts along the Wild Coast Calabash Trust: www.calabashtrust.co.za • Developments in Port St Dikeni Crafts: www.dikeniartsandcrafts.co.za John’s, including a cable Due-South Craft Route: www.duesouthcraftroute.co.za car project Eastern Cape golf courses: www.golfoncourse.co.za Eastern Cape Parks and Tourism Agency: www.ectourism.co.za • Community tourism initiaFeather Market Convention Centre: www.feathermarket.co.za tives that will develop trails Karoo Development Foundation: www.aridareas.co.za and campsites on the Wild Coast Kirkwood Wildlife Festival: www.wildsfees.co.za • The development of resorts National Arts Festival: www.nafest.co.za associated with the planned Nelson Mandela Bay Tourism: www.nmbt.co.za Maluti/Drakensberg transSouth African Tourism: www.southafrica.net frontier park Tourism Enterprise Partnership: www.tep.co.za DESTINATION EASTERN CAPE 2013 44 EscapE to tHE EastERN capE These stylish Tsogo Sun hotels are perfectly situated for easy access to the Eastern Cape areas of great natural beauty. Ideal for business travel and family holidays, they are large enough to offer all the amenities of a city, yet small enough to be genuinely welcoming and friendly. Each hotel offers superb accommodation outstanding service and a tailor-made experience. tsogosun.com WHERE to staY IN tHE EastERN capE Inspired by greatness, Southern Sun Hemingways (previously known as Hemingways Hotel) takes design, decor and architectural cues from the “Key West” home of Nobel Prize Winner and Author, Ernest Hemingway. The hotel offers a sub-tropical ambiance of a relaxed, yet sophisticated island lifestyle. Based in East London and only a few minutes from the Hemingways Casino and shopping mall, this hotel embraces the rich diversity this region has to offer, including spectacular beaches, entertainment and exquisite dining. SOUTHERN SUN HEMINGWAYS Cnr. Western Bypass and Two Rivers Drive | East London T: +27 (0)43 707 8000 E: email@example.com The hotel offers guests an opportunity to unwind at the swimming pool or stay active in the ﬁtness centre. Rooms are distinctly charming with all the modern facilities and comforts you require to feel at home. With spectacular views over Algoa Bay, holidaymakers at Garden Court Kings Beach can revel in the scenic beauty of Port Elizabeth and its unspoilt beaches. The hotel’s proximity to the airport, harbour and national highway assure convenience for the business traveller. This hotel has just undergone a major revamp, and guests will enjoy thoroughly modern and contemporary interiors, with the same warm and friendly service. Comfortably appointed rooms offer spacious living, private bathrooms and amenities that appeal to the business and leisure traveller alike, while conference facilities on the premises cater for business meetings of up to 100 persons. GARDEN COURT KINGS BEACH La Roche Drive | Port Elizabeth T: +27 (0)41 582 3720 E: firstname.lastname@example.org tsogosun.com tsoGo sUN Has tHE BEst EastERN capE HotELs aND oUR accoMMoDatIoN EstaBLIsHMENts staND oUt as BEacoNs oF GooD HospItaLItY. The sound of the sea will welcome your new day. Enjoy the region’s natural beauty from the comfort of your spacious room at Garden Court East London. Superbly located on the city’s Eastern Beach Promenade, this hotel is ideal for business and leisure travellers. A popular location for business meetings and conferences, the Garden Court East London offers several board rooms for smaller, intimate business meetings as well as larger gatherings. Comfort and our renowned service will meet the needs of every guest, and our supremely good breakfast, and quality accommodation will ensure your stay is truly memorable. GARDEN COURT EAST LONDON Cnr. John Baillie & Moore Streets | East London T: +27 (0)43 722 7260 E: email@example.com Idyllic scenery and breathtaking views surround the Garden Court Mthatha, set in the wilderness area of the Eastern Cape. Only 17km from the airport and within close proximity to the Mthatha city centre, this hotel serves as the perfect destination for business and leisure travellers. Efﬁcient and warm hospitality compliment the simplistic-yet-comfortable design of the hotel and rooms. A rejuvenating and refreshing experience awaits you at Garden Court Mthatha, which also caters to business needs with self service work stations and conference venues available for business meetings. GARDEN COURT MTHATHA Nelson Mandela Drive | Mthatha T: +27 (0)47 505 3500 E: firstname.lastname@example.org interview A cut above the rest Premier Hotels and Resorts spokesperson Eugene Oelofse explains the factors that give Premier properties the leading edge in the industry. Please tell us a little about the Premier Hotel properties in the Eastern Cape. Premier Hotels and Resorts has five properties in the Eastern Cape, namely, the Premier Hotel King David, Premier Hotel Regent, the East London International Convention Centre (EL ICC), Premier Hotel EL ICC, and Mpongo Private Game Reserve. These properties range from three to five star, all have conferencing facilities and are geared to provide our clientele with the ultimate in luxury and comfort. The EL ICC, the largest venue in the Eastern Cape, provides an allinclusive package by offering accommodation for over 450 guests or conference delegates on-site, and is able to host any type of conference/convention, including exhibitions, by offering not only conferencing venues but shell schemes for exhibitions, as well as the most technologically advanced services in the area. Is there sufficient conference business in the Eastern Cape to ensure that the East London International Convention Centre has been a successful addition to the group? Yes, the East London International Convention Centre has been a successful addition to the Premier Hotels and Resorts portfolio. There is more than enough conferencing business in the Eastern Cape, and because of the prestigious facilities of the Convention Centre, national and international business has also been attracted to this venue. There is specific growth to be noted in the associations sector, where corporate and private businesses form the bulk of the membership. We continue to enjoy support from local and national government departments, and we have seen an improvement in conferencing support in this area, with the provision of world-class facilities. What is the expected outlook for the year ahead in terms of visitor numbers/occupancy levels? Through numerous marketing efforts and a well-respected reputation as a leader in the industry, Premier Hotels and Resorts has managed to keep a high level of occupancy throughout the past year (with an average of over 70% occupancy noted by the third quarter of 2012). Numerous conferences, exhibitions and events have already been booked for 2013, and the group will continue efforts to grow both leisure and business accommodation bookings at Eastern Cape venues. Eugene Oelofse Eugene Oelofse is the marketing manager of the Premier Hotels and Resorts group. Prior to joining the company, he spent over eight years working as a creative director and brand manager, managing the production of marketing materials and successfully launching a diverse range of brands. He now focuses his strategic creative thinking skills on interpreting potential markets from within South Africa and abroad to attract and retain customers in the hospitality industry. destination eastern cape 2013 48 The award-winning EAST LONDON INTERNATIONAL CONVENTION CENTRE (ELICC), equipped with state of the art technology, hosts events with meticulous attention to detail from national and international conventions to virtually every imaginable event in between … cocktail parties, banquets, exhibitions, sporting events and weddings. Set in the beautiful Eastern Cape province - The ELICC offers refined elegance, a dynamic beachfront location and impeccable service. Complex facilities include: • 650-seater spacious Auditorium. • 17 Multi-functional conference rooms with capacities of 850 ballroom style seating up to 2150 cinema style seating. • Executive Boardrooms, Press/Media Room and Exhibition Hall, offering on-site shell schemes. BUSINESS • 4 Restaurants, 2 Bars and a Coffee Bar offering outstanding cuisine in a relaxed yet D E S T I N AT I O N S sophisticated environment. TRAVEL • 450 luxury hotel rooms overlooking the magnificent Indian ocean. AWARDS 2011 • 15 km from the airport for convenient and easy access. The fourth annual Phone +27 (0)43 709 5200/5202 | Email: email@example.com | www.elicc.co.za interview Links to success CEO and director of golf at St Francis Links Jeff Clause talks about the top-ranked links golf course and residential estate in the Eastern Cape village of St Francis Bay. Did St Francis Links have a successful holiday season? We enjoyed a massive holiday season with more than 13 000 guests through our gates! We catered for 3 000 rounds of golf and dealt with more then 45 000 food and beverage items. How did your move to St Francis come about? I was asked to come to see this wonderful piece of land in the Eastern Cape. I came here to St Francis to look at it and fell in love with it. I flew to Johannesburg where I met the chairman of WBHO, Mike Wylie. The role that I played at that stage was to tell them that this was the home of one great golf course; it is going to be a golf course that attracts people from all over the world, which it has. I was later employed by the development company as golf director and CEO. How did the first sales phase go? We sold 490 of 540 stands, the pre-sale had just been explosive. Certainly there was speculation, because that was the property market of the time. It was ‘done and dusted’ before any recession winds were blowing. And your income stream? Our subs and our levies are tied together because every owner is a member. So effectively, we are collecting all our estate costs. Even though we have rock-solid developers behind us in WBHO, we are not reliant on them. We are standing on our own two feet. The recession must have had an effect on operations? The number of people who were in a distressed situation, those people who purely bought to sell for a profit and got stuck, has dropped considerably. Last year, 24 of those stands moved on to somebody who wants to build. Even though my whole philosophy is quality and service, we took as much out of the cost side of the budget as we could without compromise to the experience. And it worked. So where we haven’t met revenue targets, we made up for it in cost saving. And St Francis Links is not wholly reliant on home owners, is it? There are two clear sides: one is the estate, which is the property and the home owners. This includes the home owners’ services, which Jeff Clause Jeff Clause is a master professional of the PGA of South Africa and a former PGA of Europe Professional of the Year. He was the first director of golf at Fancourt, a position he held from 1991 to 1997. Jeff is now the CEO and director of golf at St Francis Links. The course won Best New Course in South Africa in 2007 and is currently rated by Golf Digest in the national top 10. destination eastern cape 2013 50 interview The spectacular 18th hole at St Francis Links. are the golf course and the new Leisure Centre. The second side is the club and all the amenities. This is the food and beverage operation and the clubhouse operation (which attracts business, conferences, weddings, etc). Because we pulled things back the right way, the developers recognised that the only thing missing was the attraction for the non-golfer, so we had the trails, walks, biking, hiking and birding incorporated. But what about the non-golfer who wants to stay fit? For them, we built a 20-metre pool that is heated and covered, and a gym. What makes St Francis Links a unique golf course? Jack Nicklaus loved the land. The land lent itself to 18 unique golf holes, individual holes, in which most of the time, you don’t even know there is another hole out there. Secondly, because of the movement of the land, you have a lot of different types of shots. And multiple tees allow you to play off tees that suit your game. The thing that makes this place so special is that it is just so natural; there is nothing contrived here. You are really playing between man and nature. Finally, the course never plays the same way twice. Mother Nature is always part of it. It can be intimidating. But the more you play it, the more you like it. What is your view on the state of the golf estate industry in South Africa? I think established first-home golf estates that have become communities (Erinvale, Steenberg), have learned to manage themselves. I think that going forward, golf estates that don’t control their costs will not be attractive. A good estate must be self-sufficient. Security and stability are the foundation to a successful estate. Yet, the overall cost to the home owner must be attractive – with funds for major repairs and replacements to avoid special levies or shortfalls. I think one of the reasons we have succeeded is that we have been able to keep our costs relatively low. And we don’t foresee any kind of increases other than those that are inflation related. What percentage of your homes are lived in by permanent residents? As in most estates, the figure is about 45% – with some long-term rentals in the mix. We have to give a lot of credit to St Francis Bay itself, people have been coming here for years and years. It is a beautiful destination by itself and it’s not going to go away. St Francis Links offers stability, security and lifestyle options, and that defines our success! 51 destination eastern cape 2013 interview Refurbished venue has much to offer General manager of the Blue Lagoon Hotel and Conference Centre, Peter Gregersen, highlights some of the features of this accommodation and conference venue. What distinguishes your hotel from other venues in the area, specifically with regards to your business tourism offerings? We have the luxury of being in the city and yet offering the sense that our hotel is in the country and we offer suites and standard rooms, which meet the needs of business travellers. In addition to being a four-star hotel, we also offer five conference venues that have been refurbished to the standards required by business tourists. Another difference when comparing the Blue Lagoon Hotel to other venues is the sense of space and water, as the venue is situated on the coast, at the mouth of the Nahoon River. What is your ratio of business to leisure travellers? Has this pattern changed in recent years? The ratio of business to leisure guests is in the region of 80/20. In recent years, the length of holiday stays has shortened and the start of the Christmas season seems to be later and later. After having graduated from ML Sultan Technikon in 1991, Peter Gregersen started his career with Sun International as a night manager at the Amatola Sun in Bhisho. Peter was then promoted to various general manager positions at Sun International. In 2003, he joined the Blue Lagoon Hotel in East London as general manager. He has completed a Diploma in Management of Technology and Innovation in the domain of labour law at the Da Vinci Institute (through Global Business Solutions). You completed extensions and renovations in 2009 – what impact have the changes made? In 2009, we added an additional 27 rooms and upgraded some of our public areas. This increased our inventory to 103 rooms, which has enabled us to accommodate larger groups than before and maximise on our occupancy without over-extending ourselves. Our product offering now has 67 standard rooms and 36 suites. We recently underwent regrading under the new criteria for grading and again achieved four-star status. In the construction of the new block of 27 rooms, a concerted effort was made to be eco-friendly – we use solar heating for hot water, we use low-energy lights and we collect rainwater to use in the cisterns. What is your outlook for the year ahead? In reality, a slow recovery from the recession is being seen; however, this recovery has been offset by higher municipal rates and very high electricity costs. This has had a direct impact on consumer spending power, which will force the tourism sector to be more innovative and resourceful in achieving any growth. Tourism needs to be made a priority of both local and provincial government in promoting the province as, without tourism, the economy will seriously slow down. Peter Gregersen destination eastern cape 2013 52 The luxurious Blue Lagoon Hotel on the banks of the Nahoon River in Beacon Bay, East London, has transformed from a 3-star to a 4-star hotel with some major refurbishments having taken place. According to Hotel General Manager Peter Gregersen, the project has been taking place for the past four years — starting with a major upgrade of all hotel rooms and culminating in the launching of 27 additional rooms. The conference rooms and the public area have also been upgraded to a high standard. One of the new features we put in was a ladies-only secure floor for ladies travelling alone. We felt that for too long, security with regards to specific needs, has been largely ignored in the hospitality industry. Going green was another important aspect that we considered, with a large portion of the lights being energy-saving and using solar energy for hot water, as well as a complex system of using rain water for flushing. This is definitely a long-term strategy that the hotel has in place. Tel: +27 43 748 4821 • Fax: +27 43 748 2037• Email: firstname.lastname@example.org www.bluelagoonhotel.co.za Blue Bend Place, Beacon Bay, East London (overlooking Nahoon River) 38 56 66 68 72 96 99 key sectors Overview of the main economic sectors of the Eastern Cape Province Tourism���������������������������������������������������������������������������� 38 Agriculture and agri-processing�������������������������� 56 Mohair������������������������������������������������������������������������������ 64 Forestry���������������������������������������������������������������������������� 66 Aquaculture and mariculture������������������������������� 68 Manufacturing�������������������������������������������������������������� 72 Food and beverages������������������������������������������������� 74 Automotive�������������������������������������������������������������������� 75 Automotive components���������������������������������������� 78 Engineering������������������������������������������������������������������� 80 Ports and industrial development zones������� 92 Transport������������������������������������������������������������������������� 96 Construction and property������������������������������������ 99 Water����������������������������������������������������������������������������� 104 Energy���������������������������������������������������������������������������� 106 Banking and financial services������������������������� 112 Development finance and SMME support����������������������������������������������������������� 116 Education��������������������������������������������������������������������� 121 Business support services���������������������������������� 140 South African National Government������������� 152 Eastern Cape Provincial Government����������� 162 Eastern Cape Local Government��������������������� 191 eastern cape business 2013 OVERVIEW Agriculture and agri-processing Rain has fallen and prices have risen, therefore Eastern Cape agriculture is back on solid ground. Sector Highlights A piggery project at the University of Fort Hare will train emerging farmers. • The LandMark agricultural retail franchise is expanding in the province. • An auction house sold livestock worth R10-million in three days in 2011. major companies The Eastern Cape has about 28% of the country’s sheep. T he agricultural sector plays an important role in the lives of many Eastern Cape citizens. There are about 70 000 people employed on commercial farms, with a further 436 000 Land-usage patterns are dependent on smaller farms, mostly in the parts of the province changing. Parts of the Amatthat used to be called the Ciskei and the Transkei. Improving hole and Cacadu districts that the agricultural yield of the eastern part of the province is seen used to be sheep or pineapple as a necessity for improving food security and getting many farms are now stocked with thousands of people out of poverty. game and geared towards the The Eastern Cape has more livestock than any other South hunting and tourist markets. African province, and produces a quarter of the nation’s milk. South Africa’s hunting The wool-producing merino sheep and mohair-producing industry is worth R7.6-billion angora goats thrive in the interior, and have been a vital part annually, according to the Proof the national economy for more than a century. Mohair is fessional Hunters’ Association covered in a separate article. of South Africa. An Eastern Deciduous fruit (Langkloof), citrus fruit (Addo/Kirkwood) and Cape hunting operation chicory (Alexandria) are important parts of the province’s agri- offers gemsbuck for R12 000, cultural mix, but a feature of recent years has been the move red lechwe for R24 000 and mountain zebras for R32 000. to diversification. EASTERN CAPE business 2013 • • • • • • Klein Karoo Ltd OVK BKB Clover Hobson & Co Chicory SA 56 photo: wikipedia OVERVIEW The Eastern Cape provides approximately a quarter of South Africa’s milk, and the industry is expanding as producers favour high-rainfall coastal areas such as the Eastern Cape. The province’s farmers sell raw milk to major processors such as Clover and Dairybelle. Clover’s Port Elizabeth manufacturing facility has expanded UHT milk capacity. Parmalat’s two Port Elizabeth A food-processing company based in the Coega Industrial plants produce long-life milk, Development Zone. UHT custard, yoghurt, flavoured milk and butter. New dairies have recently Steytlerville and in the Sneeuberg, north of Graaff-Reinet. Top been established in the East prices in the year included R80 000 for a Frontier Bonsmara bull London Industrial Develop- and R15 500 for a Dorper ram. In 2011, Hobson & Co sold cattle worth R56-million to national ment Zone (ELIDZ) and the Coega Industrial Development beef supplier Karan Beef. Zone (CIDZ). In another livestock development, Standard Bank has made R10-million available to a piggery project at the University of Fort Hare. The loan will be used to buy 1 000 sows, and the project is Livestock intended to grow the provincial herd, provide an additional source Livestock farming is the of protein and act as a training ground for agricultural managers largest agricultural subsector and emerging farmers. in South Africa. The Eastern The rich natural grasslands of the Eastern Cape have the potenCape has 21% of the coun- tial to produce high-value organic meat, a product that is proving try’s cattle (about 3.2 million), increasingly popular in health-conscious international markets. 28% of its sheep (seven mil- These niche meat products are leaner, healthier and often tastier lion) and 46% of its goats, than mass-produced alternatives. High-value meat cuts such as making it the largest livestock these will drastically increase exports out of the Eastern Cape. province by some way. Hobson & Co, one of the Crops province’s biggest auctioneers, reported that cattle prices in The Eastern Cape is South Africa’s second-largest producer 2011 were up 36% on the of citrus fruit. Oranges make up the vast majority (80%) of previous year, and up 57% citrus products, but the province is also well regarded for its on 2009 prices. In a three- production of ‘easy-peelers’ such as clementine and satsuma day period in November 2011, tangerines, as well as navel oranges. Citrus farming is one the firm sold livestock worth of the province’s priority subsectors for agri-processing and R10-million. The Charlgrove value-adding. Deciduous fruits such as apples, pears and apri(Grahamstown) cattle auc- cots are grown extensively in the province, primarily in the tion alone had a turnover of Langkloof Valley. R5.3-million. The firm’s Karoo South Africa is the second-largest producer of chicory in the branch is expanding, with world, after France. Chicory is grown primarily in the coastal new auctions being held in areas around Alexandria, between Port Elizabeth and Port Alfred. photo: mediaclubsouthafrica 57 EASTERN CAPE business 2013 OVERVIEW The head office of OVK is in Ladybrand in the eastern Free State, but the company’s 34% shareholding in Cape Mohair and Wool ensures that it has a strong Eastern Cape presence. OVK’s turnover rose to R2.9-billion for the year ended February 2012, up from R2.4-billion in the previous year. Three bamboo-farming projects are being piloted. OVK has 43 trade branches, several vehicle dealerships Bamboo farming has been mooted as a possibility for the (New Holland, Case and future. Three pilot projects have been put in place by the Toyota), a finance division, Eastern Cape Development Corporation and the Industrial manufacturing facilities for Development Corporation. maize meal and wheat meal, an abattoir and six fuel depots. The turnover of Port ElizCompanies abeth-based BKB rose 36% Many of the country’s former agricultural co-operatives have to R2.7-billion in the year to transformed themselves into companies. The three major June 2011, with an after-tax companies active in the Eastern Cape are BKB, OVK and Klein profit of R70-million. BKB has Karoo Ltd. While each company offers a range of services, each 26 trading stores in the Eastern tends to focus on one or two major products. Although each Cape, 13 in the Free State company tends to be strongest in a particular province, none is and a further eight in various constrained by provincial boundaries. locations in the Western and Klein Karoo Ltd has a division that handles auctions, another Northern Cape. that looks after seed and seed marketing, and it is in the proBKB is best known for its cess of expanding its retail presence through the LandMark wool and mohair (through BKB franchise. But the main focus of the group is ostriches, as one Fibre Trading), but its 19 000 would expect of a company with its headquarters in Oudt- primary producers can also shoorn. Group turnover in 2011 was R1.2-billion. gain access to the services of LandMark is the franchise property of Agrinet, a national BKB Properties, BKB Agrifin, supplier of agricultural equipment and supplies. BKB Livestock and Auctioneering and BKB Technical and Shearing. Online resources Tuinroete Agri (Garden Agricultural Research Council: www.arc.agric.za Route Agri) is a smaller comChicory SA: www.chicory.co.za pany operating mostly in the Citrus Growers Association: www.cga.co.za Western Cape, but it has operDeciduous Fruit Producers Trust: www.dfpt.co.za ations as far east as Jeffreys Eastern Cape Department of Rural Development and Agrarian Bay. Altogether it has 19 outReform: www.agr.ecprov.gov.za lets, including depots, three Frontier Bonsmaras: www.frontierbonsmaras.co.za grain silos and eight retail Linkd Environmental Services: www.8linkd.com outlets. There are shops in the National Department of Agriculture, Forestry and Fisheries: Eastern Cape towns of Jeffreys www.daff.gov.za Bay, Joubertina, Uniondale Perishable Products Export Control Board: www.ppecb.com and Aberdeen. EASTERN CAPE business 2013 58 photo: Moyan Brenn/flickr PROFILE Kei Fresh Produce Market The fresh produce market in Mthatha offers commercial and small-scale farmers easy access to the market and is convenient for local hawkers of fruit and vegetables. Description of business The Kei Fresh Produce Market provides a hub for trading and market access for fresh produce from commercial and small-scale farmers – through its market agents operating on the sales floor. Description of services The market has appointed agents who operate from the sales floor and are instrumental in the sale of produce on behalf of the farmers. They earn 7.5% commission and the market earns 5% commission for this service. Agents work on the sales floor and assist in selling produce at the market. The market, through its farmer-support unit, Key facts and figures provides logistical support (production plans, Year established: 2004 transport and packaging) to emerging small- No of staff: 25 scale farmers by bringing their fresh produce Major clients: retailers and hawkers to the market. The market also provides trans- Turnover: R28-million portation support to hawkers (ie from the BEE status market to their stalls). % black ownership: Section 21 entity The market further provides support to agri- % black directors: 100% (seven directors) cultural co-operatives through training and % black staff: 100% transportation of products and the development of business plans. In addition, the market Contact details also provides promotion of these agricultural co-operatives in the region. Key contact people: RN Ngqeleni, Senior Manager Target markets M Mngadi, Acting Market Master The target markets are : • Hawkers Tel: +27 87 310 3340 • Retailers Fax: +27 87 310 3341 • Consumer groups Email: email@example.com • Hospitality sector Physical address: 32 Errol Spring Avenue, • Government sector Vulindlela Heights, Mthatha • Individual consumers Postal address: PO Box 52452, Mthatha 5099 59 EASTERN CAPE business 2013 focus Awareness is key to growth The Kei Fresh Produce Market has embarked on an awareness campaign that aims to advance market access and create employment opportunities. It is essential for emerging farmers to gain access to new and existing markets. T he Kei Fresh Produce Market (KFPM) pro- • To develop the KFPM to its full potential, as a profitable and self-sustaining entity that vides a valuable networking point, is a key serves the local community and beyond component in the value chain for trading, and provides access to the fresh produce grown • To create further employment and to improve by commercial and small-scale farmers. the livelihoods of the surrounding communities, especially in view of the rural development drive of the South African government Objectives • Encourage and support local production of fresh and other agricultural produce to generate and secure a consistent supply of these The KFPM provides infrastructure to advance commodities market access and employment opportunities • Provide assistance by facilitating collection on the entire value chain within its catchment and distribution of fresh produce for hawkers area, which has an estimated total consumer and emerging farmers market size of R1.2-billion. eastern cape business 2013 Know Your Market Campaign 60 focus Market research conducted in 2009 showed that the majority of respondents were not aware of the market’s existence, and felt that more should be done to create awareness of KFPM. In light of this, Kei Fresh Produce Market embarked on its ‘Know Your Market Campaign’, an awareness programme aimed at the local communities and key stakeholders. This included an ‘Open Market Day’, the objectives of which were as follows: • To increase awareness of Kei Fresh Produce Market • To implement optimum uti- KFPM provides a trading point for local farmers. lisation of KFPM’s trading floor University (School of Rural Development), • To provide and market the distribution net- and a number of local farmers. A number of work for the farmers’ produce, and support entities were invited to contribute and parhawkers ticipate, namely Vodacom, OR Tambo District The beneficiaries of the Open Market Day were: Municipality and Kynoch Fertilisers. • Local emerging farmers Local retailers and hawkers were part of the • Hawkers day’s activities, as were representatives from local • Consumers government, industry players and local farmers. • Sponsors A great deal of knowledge was imparted to local • Market agents and retail outlets farmers about how to deal and be competitive The budget for the event is broken down into in a market environment. The second Open Market Day was held on six categories: • Media campaign (print media and radio) 3 October 2012. • Programme speakers • Hawkers’ promotion Outcome • Farmers support-unit demonstration and presentations The local supply of vegetable produce from • Local farmers’ product promotions emerging farmers to KFPM increased from 3% • Branding (banners, flyers, etc) in 2009 to 6.7% in 2011, due to development support provided by KFPM. It is hoped that the economic benefits Previous success that flow from this awareness campaign will On 1 October 2010, Kei Fresh Produce Market impact positively on the regional economy and successfully launched the first annual Open food security. Market Day marketing campaign. The event was a resounding success, with speakers from as far For more information, contact Raymond as the Punjab Agricultural University, as well as Ngqeleni on +27 87 310 3340 or raymond@ the Johannesburg Fresh Produce Market, the ntinga.org.za Rural Development Agency, the Agricultural Produce Agents Council (APAC), Walter Sisulu 61 eastern cape business 2013 message Improving food security is a priority Minister for Agriculture, Forestry and Fisheries Tina Joemat-Pettersson highlights the priorities of the department in improving the lives of ordinary South Africans. The ‘right to food’ as enshrined in our Constitution and the Freedom Charter, demands a rethinking of our past approaches to food security. We can produce enough food, but whether the poor can afford the food on the shelves largely determines South Africa’s food-security status as a country. High food prices and food-price volatility will be one of the greatest challenges to our nation over the next few years. This will further be exacerbated by high fuel and high energy prices. To curb these challenges, smallholder farmers will be assisted with the provision of livestock, tractors, implements, seeds and fertilisers. ‘One family, one vegetable garden’ should be the mantra of each and every family in South Africa. Agro-processing Tina Joemat-Pettersson We will increase agro-processing investments as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, and forestry. R50-million will be allocated for the promotion of local agroprocessing businesses. An equitable-food-security economy will improve access to markets for especially smallholder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. The entire value chain of biofuels will also be a priority. A s the Department of Agriculture, Forestry and Fisheries (DAFF), we believe that the goal of a developmental state can only be reached when our people gain access to food within an economy that promotes sustainable livelihoods. For this reason, our draft food security policy and zero hunger strategy promotes equity and prioritises the eradication of poverty and reduction of inequality among our people. Employment Food processing and agro-industries have provided jobs, demonstrating growth of over 25 000 agricultural jobs in the sector for the third quarter of 2011. A further 6 000 agriculture-related jobs were created in the fourth quarter of 2011, which is a yearon-year growth of 3%. This has brought the total employment in the sector to 630 000. International trade South Africa’s trade of both primary and processed agricultural products has grown from R10-billion worth of exports in 1996, EASTERN CAPE business 2013 62 message to about R48-billion in 2011. Our wine exports are soaring, notwithstanding the recent global economic slowdown. We are now exporting three times more wine than we did a decade ago. Exports of fish and fish products have rapidly expanded in China and Cameroon. Timber and forestry products are gaining ground in China and Indonesia. We are exporting more and more maize to Zimbabwe. Despite our success story as a country that is a net exporter of food, international trade has yet to include more black farmers in the equation. As a department we are committed to changing this. Our department is positioning itself to participate in a meaningful way in BRICS. The department will open offices in Russia, India and Brazil, in addition to the one which is already operating in China. upgrading of agricultural colleges • Various projects such as grain storage facilities and rehabilitated irrigation schemes in the former homelands, fencing including border fences and animal quarantine facilities at our borders To support these initiatives the Comprehensive Agricultural Support Programme (CASP) is allocated R1.5-billion, of which Funding allocation over R52.5-million will be The department is the custodian of South Africa’s forest used for infrastructure at the resources, which cover over 40 million hectares of the coun- agricultural colleges, R322try’s land surface area. The forest sector employs about 201 025 million for the extension workers and provides approximately 77 000 direct jobs and recovery plan, R762-million 30 000 indirect jobs. The Forestry and Natural Resources for infrastructure (mostly onManagement branch will get R1.2-billion during this financial farm), and R398-million for year to manage our forests and natural resources. flood-damaged infrastructure Our country has been plagued by natural disasters and animal in disaster areas. diseases. Between December 2010 and January 2011, we had In addition, the Land Care devastating floods in a number of provinces. We have begun allocation for the coming year the process of implementing the Flood Assistance Scheme, with is R115-million, while the Ilima/ its emphasis on infrastructure repairs. An amount of more than Letsema programme gets a R990-million has been made available through the MTEF period total of R415-million. until 2014/15 as part of the scheme. I appeal to all members of Animal disease outbreaks have presented serious challenges the department and readers of to our industry. Our department will have to improve on its this publication to look deep capacity to deal with such disasters, as they impact adversely into your work and your hearts and ask what more you can do on the rural economy. R954-million is allocated for plant and animal production, to contribute to making South including inspection and laboratory services, and R935-million Africa a better country. Together, for agricultural research, which represents a substantial increase we can work towards food over the previous year’s allocation. Furthermore, R868-million is security for all. allocated to food security initiatives and R349-million for extension support services, including new-farmer development support. Our ‘Strategic Integrated Project 11’ on agro-logistics and rural infrastructure (part of the integrated infrastructure plan approved by the Cabinet and the Presidential Infrastructure Coordinating Commission) includes plans for the following: • Fresh-produce marketing depots for smallholder farmers • Production infrastructure for crops and animals • The revitalisation of various irrigation schemes, including the Vaalharts-Taung irrigation scheme • The refurbishment and 63 EASTERN CAPE business 2013 OVERVIEW Mohair The Eastern Cape is a world leader in mohair. M ohair is a high-quality speciality fibre. The Angora goat is shorn twice a year and the national herd comprises about 650 000 goats. South Africa produces about 50% of the world’s mohair, most of which comes from the Eastern Cape. South Africa’s production declined to 2.3 million kilograms in 2010 (off a high of 3.6 million in 2005), but stabilised in 2011 on the back of good rain and improved production conditions. Mohair’s contribution to South Africa’s export basket is in the region of R700-million annually. The Eastern Cape is definitely the ‘Mohair Capital of the World’, with 80% of the world’s mohair (much of it imported) being worked on in processing plants and mohair yarn-spinning factories in Uitenhage, Port Elizabeth and Berlin, outside East London. Mohair South Africa is an industry body that promotes the industry in a variety of ways. Together with the Eastern Cape Department of Rural Development and Agrarian Reform and Sector Highlights other organisations, Mohair South Africa organised the first Production is stabilising International Mohair Summit. This event was held in Graaffafter a tough period. Reinet in the Cacadu District in 2009, and was attended by more than 1 000 people. Jansenville will host the next summit in major companies October 2013. Mohair South Africa’s website lists companies in the six parts • Samil of the mohair chain: brokers, buyers, processors, spinners, man- • Stucken ufacturers and retailers. This list gives a good indication of the tremendous amount of downstream value that mohair creates. Wool (CMW). BKB (whose Only two South African groups have companies in every headquarters are in Port Elizaspect of the value chain, Samil and Stucken. Samil’s compa- abeth) has a mohair division nies include Border Combing, Cape Mohair Spinners and Ingubo that includes auctions and Weavers, while Stucken’s interests include Mohair Spinners brokering among its services. South Africa, Hinterveld (a mill) and processing company Gubb The skill of working with & Inggs in Uitenhage. merino wool and mohair fibres A number of agricultural companies that used to be co-oper- have been handed down from atives have interests in the mohair industry. Ladybrand-based generation to generation, and OVK has a 34% shareholding in mohair-brokerage Cape Mohair this is where the farmers and farmworkers in the Eastern Cape have a major advantage. Online resources In 2011/12, a veld ram sold Eastern Cape Department of Rural Development and Agrarian for R55 000 at Graaff-Reinet, Reform: www.agri.ecprov.gov.za with one set of brothers in the well-known Hobson clan Mohair SA: www.mohair.co.za selling to another set. EASTERN CAPE business 2013 64 photo: billyvan/stockxchng 2303 OVERVIEW Forestry The Eastern Cape can help to alleviate the timber shortage that South Africa faces. S outh Africa is facing a dearth of timber. By 2037, the supply of timber might be short by as much as seven million tons. This is according to Crickmay & Associates, a supply-chain management company. Asgisa-EC has identified a total of 100 000 hectares of land suitable for forestry in the Eastern Cape, and will invest R700-million in the sector over the next 15 years. To develop the full potential will take about R4-billion. If the project reaches fulfilment, there will be: • 1.8 million cubic metres of new timber • 80% more wood for processing • 40 jobs for every 25 hectares planted Downstream opportunities created by new plantations include a planned treated-pole plant in Butterworth and a paper and pulp mill in Mthatha, which has also been selected as a future furniture-sector incubator. One of eight community projects being run by Asgisa-EC is the Sinawo Project in the far north-eastern corner of the province. Made up of about 10 000 hectares, the idea is to train the local community in forestry principles. About 770 500 cubic metres of timber is processed in the Eastern Cape annually, producing some 328 700 cubic metres of sawn board, mostly for the construction sector. Rance Timber’s Kubusi Sawmill, near Stutterheim, produces 45 000 cubic metres of sawn board annually. There are 46 sawmills in the province, 10 pole-treatment plants, two chipboard operations and a veneer plant. There are also six small manufacturing plants producing charcoal from gum and wattle. In 2008, PG Bison spent R1.5-billion on a new chipboard plant in Ugie, creating about 2 000 direct and indirect jobs. The plant also makes melamine-faced board. PG Bison is a subsidiary of Steinhoff International. Mondi has plantations in this area. Langeni Forest is one of the biggest employers Sector Highlights Community projects are planting thousands of hectares. • The Eastern Cape processes 770 500 cubic metres of timber every year. major companies • Rance Timber • PG Bison in the OR Tambo District Municipality. In 2011, Sappi closed down its fine paper Adamas Mill in Port Elizabeth. The School of Natural Resource Management at the Nelson Mandela Metropolitan University offers accredited short courses and diploma and degree courses in forestry. The main campus for forestry is in George. Forestry South Africa: www.forestry.co.za Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za National Department of Agriculture, Forestry and Fisheries: www.nda.agric.za South African Institute for Forestry: www.saif.org.za EASTERN CAPE business 2013 66 photo: Tambako the Jaguar/flickr Online resources focus Combating global warming The Biomass Corporation is implementing a biocoal plan that will reduce South Africa’s dependence on natural coal. S outh Africa releases in excess of two billion tons of harmful emissions into the air every year. The country’s almost total dependence on natural coal is responsible for this. The effect of global warming is being felt, and is being reported by the international media almost daily. South Africa’s dependence on hydrocarbon-based fuel will have to end, and with this the dominance and economic control over the global economy by multinational energy companies. Bamboo biomass can be converted to torrefied pellets. One of the alternatives to hydrocarbon energy is the use of fast-growing bamboo as a renewable energy the processing facility of just below R300-million. provider. Bamboo needs neither first-grade farm- The communities involved will own the biomass land nor excessive quantities of fertiliser or water production, and the overall job creation is proto grow (within 48 months) to useable biomass. jected at 1 000 for each combination of biomass Bamboo biomass can be converted to tor- production and processing; this first project of its refied or carbonised pellets or briquettes, or kind is to be implemented in the Eastern Cape. supplied as granulate as a direct coal replaceFinally, a viable carbon credit market offers ment. It must be kept in mind that every ton of bamboo farmers additional income from CO2 steel produced with natural coal results in a sequestration, starting with year two of the plantotal CO2 emission of over two tons. Biocoal is tation’s life cycle. A conservative estimate will CO2 neutral and will allow end users the option allow for an annual carbon sink of 20 to 40 to claim carbon credits. tons per hectare annually, taking into considThe Biomass Corporation South Africa has eration that partial harvesting will commence completed research into coal-replacing, sustain- after year four. able biocoal. The product is CO2 neutral, has a low ash content and a calorific value of 32.16MJ/ www.biomasscorp.com/southafrica kg. A project has been launched to process up to 80 000 tons per annum of biomass within an overall investment in the agricultural sector and 67 eastern cape business 2013 OVERVIEW Aquaculture and mariculture Farmed fish will provide protein for people’s diets. Sector Highlights The Cacadu District Municipality is a leader in aquaculture. • Fish farmed in the Eastern Cape reach market size quickly. • A Marine Aquaculture and Biotechnology Business Incubator is proposed for the ELIDZ. major companies • Seatek • Camdeboo Satellite • Espadon Marine • Pure Ocean Aquaculture • Irvin & Johnson Pure Ocean is a two-year pilot project that kicked off in 2010 for the production of dusky kob. A sum of R45million is being invested in pursuit of a target of an annual harvest of 200 tons. The intention is for the first fingerlings to be in the water in December 2012. One of the first projects to come on stream at the ELIDZ was the R22-million venture being operated by Espadon Marine. The aim is to reach a production level of about 350 tons of fish per year. A proposal has been made from within the ELIDZ to create a Marine Aquaculture Aquaculture Project Trout is one of the most popular aquaculture species. EASTERN CAPE business 2013 68 photo: USFWS Mountain Prairie/flickr T he Coega Industrial Development Zone (CIDZ) and the East London Industrial Development Zone (ELIDZ) have both attracted investment in the field of aquaculture, which describes land-based farming of fish. Mariculture refers to the cultivation of fish in sea water. A total of 32 hectares has been set aside for aquaculture within the ELIDZ. More than 60% of the 32 hectares originally set aside at the ELIDZ for aquaculture has been taken up by investors, but the zone’s administrators are ready to designate more land should more investors come on board. OVERVIEW There are three oyster farms in Port Elizabeth and one each in Hamburg and Port Alfred. About 42.6 million South Africans eat pilchards (89% of the population). This is according to the Cacadu District Municipality, which is a leader in promoting investment in the aquaculture sector. Aquaculture farms in Cacadu are located near Grahamstown, Port Alfred and Graaff-Reinet. It is near the latter of these towns, in the Karoo, that the Camdeboo Satellite Aquaculture Project (CSAP) intends using South Africans’ love of pilchards to create a sustainable business model that it hopes to duplicate in other parts of South Africa and Africa. The CSAP has already completed the design and markettesting phases of the project, and has received funds from the Industrial Development Corporation (IDC) and the Development Bank of Southern Africa. The product successfully tested was freshwater fish in tomato sauce. Mariculture refers to fish The most popular aquaculture species are tilapia, trout and cultivated in sea water. ornamental fish, and the freshwater favourites for cultivation are oysters, abalone, saltwater fish and mussels. and Biotechnology Business The Eastern Cape enjoys several competitive advantages in Incubator that would: both subsectors. It is home to the renowned Rhodes University • Provide a defined invest- Department of Ichthyology and Fisheries Science and the South ment pipeline African Institute of Aquatic Biodiversity (SAIAB). Production costs • Reduce the likelihood of the in the province are low, with the price of suitable land being failure of enterprises very competitive. • Contribute skilled personnel The Eastern Cape’s relatively warm sea temperatures allow fish to the sector to reach market size in three and a half years, much faster than Part of the rationale behind the in colder water further west. incubator lies in the medicinal The National Department of Science and Technology (DST) qualities of the Eastern Cape’s is funding several grow-out pilot schemes across South Africa, marine fauna and flora, which, in association with the Department of Agriculture, Forestry and it is argued, could be deployed Fisheries. The project is stocking cages in dams and lakes with to develop pharmaceutical tilapia, barbell and trout. compounds. Compounds idenThe DST partners with Irvin & Johnson in running a Marine tified by a pharmacist associ- Finfish Grow-Out Pilot in the waters of Algoa Bay. Studies are ated with Rhodes University being conducted on the progress of yellowtail, silver and dusky have been shown to play a role kob in four cages. in neutralising breast cancer. The 2010 Marine AquaculOnline resources ture Annual Farm Operation Aquaculture Association of South Africa: www.aasa-aqua.co.za Report lists 14 aquaculture Aquaculture Innovations: www.aquaafrica.co.za and mariculture farms in the Aquaculture Institute of South Africa: www.ai-sa.org.za Eastern Cape, with abalone, dusky kob, silver kob, yellowNational Department of Agriculture, Forestry and Fisheries: tail, oyster and prawns being www.nda.agric.za cultivated. The Eastern Cape National Department of Science and Technology: www.dst.gov.za produced a total of 223 tons South African Institute of Aquatic Biodiversity: www.saiab.ac.za of fish products from these Water Research Commission: www.wrc.org.za enterprises in 2009. photo: eutrophication&hypoxia/flickr 69 EASTERN CAPE business 2013 focus Aquaculture gives back to communities The Fisheries Branch of the Department of Agriculture, Forestry and Fisheries is engaged in a plethora of groundbreaking initiatives. sector grows seaweed mainly as food for abalone farming, while prawns have not been cultivated since 2004. The aquaculture of marine finfish, at best, is only on the brink of starting commercial production. The marine aquaculture sector contributes approximately 4% to the value of production in the fishing industry. This is very low in terms of the international standards, but the sector is still in a developing phase. It must also be pointed out that the rugged South African coastline and the lack of sheltered bays are not ideal for aquaculture activities. The South African aquaculture sector generates direct permanent employment and mainly benefits poor coastal communities. The employment opportunities therefore assist in alleviating poverty in disadvantaged areas. The sector also indirectly creates employment by supporting interlinked businesses through infrastructure development and the manufacturing of equipment. The Fisheries Branch of the Department of Agriculture, Forestry and Fisheries (DAFF) is engaged in a national programme to revitalise the sector, therefore a number of research and development activities are ongoing. Seaweed is mainly grown as food for abalone farming. A quaculture is the farming of aquatic organ- Research and development isms such as fish, crustaceans, molluscs and aquatic plants. It involves cultivating Marine aquaculture is a technology-driven freshwater and saltwater populations under industry that relies heavily on research to controlled conditions, and can be contrasted develop new species and the appropriate techwith commercial fishing, which is the harvesting nology for commercial production. At present, of wild fish. marine aquaculture in South Africa is domiThe current marine aquaculture industry nated by molluscan shellfish farming (abaconcentrates mainly on three species, namely lone, mussels and oysters), and exciting new abalone, oysters and mussels. In addition, the industry initiatives are presently underway eastern cape business 2013 70 focus that are exploring the culture of indigenous marine finfish. However, despite these enterprises, there is considerable scope for the sector to diversify further. In fact, expanding the species base can be regarded as a prerequisite for the development of a globally competitive industry as well as for bringing appropriate technology to small-scale, communitybased operations. The Fisheries Branch of DAFF, together with local industries and universities, plays a significant role in this regard, and is presently involved with a number of research projects that are investigating the feasibility of various candidate species for aquaculture, promoting environmentally sustainable aquaculture practices, and improving the biosecurity of aquaculture activities in South Africa. The research activities of the Fisheries branch are divided into five key areas: associated with marine aquaculture candidate species is important in sustaining the marine aquaculture sector. Some of the key areas of research include morphological and molecular diagnosis, integrated pest management strategies, treatment trials and impacts and epidemiology of pathogens on farmed and wild-caught animals. Environmental impacts Marine aquaculture practices, particularly intensive feed-supplemented systems, have the potential to cause serious negative environmental impacts, affecting not only the sustainability of farm operations themselves, but also other users of the coastal resource. The initial expansion of the global prawn and finfish farming sectors provides numerous examples of poor planning and implementation, and to a large extent provides the basis for the current negative perception of aquaculture. Marine finfish research Competitive pressures, technology developSupport is required for the development and/ ment and more efficient regulation are directing or adaptation of marine culture technologies aquaculture towards best management and susto establish reliable breeding and rearing tech- tainable practices. Marine aquaculture in South niques for a number of marine finfish species. Africa is poised for a rapid expansion phase There is a need to focus on a limited number as farming practices diversify and extend into of species, while maintaining the flexibility new realms. to act on viable emerging projects. Present research addresses the culture of economi- Harmful algal bloom research cally important species, such as the dusky Harmful algal blooms (HABs) cause harm by kob (Argyrosomus japonicus), white stump- producing toxins that accumulate in shellfish nose (Rhabdosargus globiceps) and Cape hake or fish, or through the accumulation of biomass that may impact marine life, food webs and the (Merluccius capensis). environment in negative ways. Marine invertebrate research The number of harmful blooms, the economic Research and development of culture tech- losses that result, the resources affected, and the nologies for marine invertebrates is presently number of toxins and toxic species are all confocused on two economically important spe- sidered to have increased dramatically in recent cies, the South African scallop (Pectin sulcicos- years. HABs have particularly adverse effects on tatus) and sea urchin (Tripneustes gratilla). Key aquaculture, ranging from reduced growth and areas of research include brood-stock condi- reproduction to mass mortalities, which lead to tioning and spawning, gonad enhancement, significant losses in harvestable resources, and larval rearing, grow-out, nutritional studies to spoiled or contaminated products. and growth trials. www.daff.gov.za Marine aquaculture disease research Research involving the diagnosis, biology and containment of pathogenic organisms 71 eastern cape business 2013 OVERVIEW Manufacturing An Indian steel manufacturer has started work on a plant in the Coega Industrial Development Zone. T he automotive and automotive-supply sectors anchor manufacturing capacity in the Eastern Cape. These sectors are dealt with in separate sections of this publication. The provincial government’s diversification strategy is targeting sectors that are labour-intensive, have a broad impact, have low barriers for SMME entry, and where there is already a competitive advantage (as with wool and mohair). Sectors include: agriprocessing and food, timber, tourism, construction, chemicals, energy and mariculture. The other branch of the manufacturing strategy revolves around the industrial development zones (IDZs) of East London and Coega. If the ferromanganese smelter that is planned for Coega gets off the ground, the spinoffs will be enormous, sparking downstream manufacturing activity. A high-profile investment in the Coega IDZ by a consortium that includes Indian secondary-steel manufacturer AGNI Steel (with the Industrial Development Corporation, a workers’ trust and a local BEE group) broke ground in 2012 on a R400-million steel plant. Scrap metal will provide the feed for the plant, which will make steel billets for export to India and other African countries. The first phase is likely to need 9 000 tons of scrap metal per EASTERN CAPE business 2013 Sector Highlights A Graaff-Reinet pet-food maker distributes across South Africa. • Lighting Innovations is building a R60-million factory in Port Elizabeth. • East London has two First National Battery plants. major companies • AGNI Steel • Aberdare Cables • Da Gama Textiles • First National Battery • Aspen Pharmacare • Bodene • Johnson & Johnson • Montego Pet Nutrition 72 OVERVIEW month, with this figure rising to 18 000 tons per month in the second phase. About 800 jobs will be created when the plant is at full capacity. The potential for growth is strong in the machine tools sector, the development of electronics (consumer electronics and for automotive applications) and in plastics. The plastics industry is a key supporter of the automotive industry, but is also active in the moulding, packaging and construction industries. Aberdare Cables and Eveready Batteries are examples of companies in the medium-to-heavier industry sector in Port Elizabeth. East London has two First National Battery (FNB) manufacturing sites. Battery Centre is the main retail outlet for FNB, which makes 8 000 automotive batteries every day, seven days a week at its Settlers Way plant. The smaller plant in the city makes industrial batteries. Aspen Pharmacare, Africa’s biggest manufacturer of generic drugs, has three facilities in Port Elizabeth: oral solid dose (tablets and capsules), a general facility (tablets, creams, ointments, suppositories, powders) and a sterile facility. East London has a multi-purpose facility and an oral-contraceptives plant. Bodene, a subsidiary of large European company Fresenius Kabi, employs 450 staff at its Port Elizabeth plant, manufacturing medicines that are administered intravenously. East London is host to Johnson & Johnson’s finance, operations and research and development divisions. German group Schwabe Pharmaceuticals has signed an agreement with the Rharhabe kingdom to share the benefits of a pelargonium root that is to be used as a cough remedy. Light-fittings manufacturer Lighting Innovations announced in 2012 that it will invest R60-million in building a new factory in Port Elizabeth. The 8 000m2 facility will manufacture fluorescent lights in the first phase and employ about 90 people. This factory will replace the company’s existing plant in Gauteng. Montego Pet Nutrition is Graaff-Reinet’s biggest private employer, with more than 200 staff members working in the Karoo town’s factory. Established in 2000, the company now supplies more than 1 000 retail outlets around South Africa with its pet-food products. Leather and textiles Great potential exists to create more value from the Eastern Cape’s excellent wool, leather and mohair. A fibre-processing plant to spin wool and mohair fibre into yarn is planned for the province, as is a textile mill to focus on cotton, poly-cotton and acrylic fabric. The latter will be located in the IDZ in East London, where the Da Gama Textiles factory has the capacity to produce 45 million square metres of fabric per annum. Fort Jackson, an industrial zone just north of Mdantsane outside East London, has been identified as a potential site of a textile cluster. The Greater Uitenhage Sewing Co-operative (Gusco) has secured a contract with Woolworths to supply reusable shopping bags. Operating from premises originally lent to them by Volkswagen South Africa, the group of women make 7 600 bags every week. Online resources Border-Kei Chamber of Commerce: www.bkcob.co.za Coega Development Corporation: www.coega.co.za Eastern Cape Department of Economic Development and Environmental Affairs: www.dedea.gov.za Eastern Cape Development Corporation: www.ecdc.co.za East London Industrial Development Zone: www.elidz.co.za National Association of Pharmaceutical Manufacturers: www.napm.co.za Nelson Mandela Bay Business Chamber: www.nmbbusinesschamber.co.za Pharmacy Industry Association of South Africa: www.piasa.co.za 73 EASTERN CAPE business 2013 OVERVIEW Food and beverages Excellent agricultural produce makes the Eastern Cape attractive for food and beverage manufacturers. T he Eastern Cape produces close to a quarter of South Africa’s milk, and big national producers such as Clover are active in the province. Clover is expanding its UHT/fresh milk capacity in Port Elizabeth. Dairybelle has cheese factories in Cookhouse and Aliwal North, near the Orange River. Dairies have opened in the industrial development zones (IDZs) at East London (Sunningdale) and Coega (Coega Dairy). The latter has signed a joint venture with Famous Brands to supply its restaurants, such as Wimpy and Steers, with all their cheese requirements. The IDZs have also attracted Cape Concentrates, Dynamic Commodities, Espadon Marine and Pure Ocean Aquaculture. Sector Highlights Sovereign Foods in Uitenhage is the country’s fourth-biggest A public-private partnership producer of poultry. The poultry sector makes up a quarter of has saved manufacturing national agricultural GDP. jobs in rural Molteno. Ouma Rusks is spending R46-million on expanding produc• Vovo Telo is the latest tion in Molteno. The rusk was invented in the small rural town, Eastern Cape restaurant but Foodcorp was thinking of moving production to Gauteng. An brand to go national. agreement by government bodies to invest in water infrastructure, and Eskom’s promise to deliver power directly to the plant, major companies has resulted in Foodcorp committing to expanding production to 23 tons a day (a 23% increase), thus keeping 250 jobs in the town. • Sovereign Foods Vovo Telo started as a bakery in 2007, about a kilometre • Clover away from the premises in Port Elizabeth that launched Dulcé • Cadbury Café as a national brand 23 years ago. The sale of a 51% share • Ouma Rusks to Famous Brands is allowing for the first franchised Vovo Telo • South African Breweries bakeries/restaurants to open in Johannesburg. Varied and abundant agricultural production means that there are employed. Eleven producare many opportunities for investors in the Eastern Cape. tion lines make chocolate at Port Elizabeth has several large enterprises, with Cadbury Nestlé’s East London facility. Chocolates’ North End site being one of the biggest. It is the comCoca-Cola Sabco and SAB pany’s main chocolate manufacturing site, where 1 250 people Limited’s Ibhayi brewery are major beverage manufacturers in Port Elizabeth, and Distell Online resources has a bottling plant in the city. Coega Development Corporation: www.coega.co.za Steps are being taken to revive the pineapple industry, East London Industrial Development Zone: www.elidz.co.za with juice currently the major Food Advisory Consumer Services: www.foodfacts.co.za product. The Sasko mill in Port National Agricultural Marketing Council: www.namc.co.za Elizabeth is the only big milling South African Bureau of Standards: www.sabs.ca.za plant in the province. EASTERN CAPE business 2013 74 photo: sabmiller OVERVIEW Automotive The automotive sector drives manufacturing in the Eastern Cape. Sector Highlights General Motors is making passenger cars in Port Elizabeth again. • FAW of China is to assemble trucks at the Coega IDZ. • Volkswagen’s new press shop is its greenest building yet. major companies General Motors makes a number of Chevrolet models at its Struandale assembly line in Port Elizabeth. • Volkswagen • Mercedes-Benz • General Motors • Ford T he Eastern Cape is home to the automotive Big Four: the rest of Africa. A passengerVolkswagen South Africa has a plant in Uitenhage, Ford vehicle assembly line will start and General Motors SA have plants in Port Elizabeth, and in 2015. Mercedes-Benz is based in East London. All of these companies General Motors South Afriare investing in increased capacity. ca’s (GMSA) first passenger In the Eastern Cape, the automotive industry provides 30% vehicle to be locally produced of the jobs in the province’s manufacturing sector and accounts for 21 years was unveiled for 32% of gross added value. Half of South Africa’s passenger when Chevrolet’s first Spark vehicles are made in the Eastern Cape and 51% of the country’s drove onto the tarmac in motor exports originate there. March 2012. Other big news for GMSA As the province’s MEC for Economic Development and Environmental Affairs Mcebisi Jonas says, ‘The automotive industry was the opening up of exports is central to our industrialisation efforts, because it provides a to Kenya, with the Isuzu KB basis from which to broaden our manufacturing industry into bakkie leading the way. Other other complex manufacturing assembly subsectors, such as right-hand-drive markets aerospace and ship components.’ include Zimbabwe, Zambia Hopes that an electric car project would be ramped up to and Malawi. production stage at an Eastern Cape venue came to nothing Volkswagen’s investment when the project was ended in 2012. of R500-million in a new press First Automobile Works (FAW) will invest a total of shop forms part of a fiveR600-million in a truck assembly plant at the Coega Industrial year R5-billion investment Development Zone. The company hopes to use the plant, on programme that the Uitenwhich construction has begun, as a springboard for sales into hage-based manufacturer photo: general motors south africa 75 EASTERN CAPE business 2013 OVERVIEW has embarked on. Fifty new construction jobs will be created by the press shop project, which promises to be the company’s greenest-ever building. Electricity use at the Uitenhage plant was reduced by 42% between 2009 and 2010, with a further reduction of 13% in the next year. Water usage at the factory was also drastically reduced as part of the company’s Blue Factory drive. With rising fuel prices and a carbon-emissions tax introduced in South Africa from September 2010, all manufacturers are again looking to making smaller models at their manufacturing plants. • Assembles Isuzu and Corsa pick-up trucks for the • Assembles large Isuzu trucks from semi-knocked-down packs • Employs 1 900 people • Has two assembly plants in Port Elizabeth: at Kemptson Road • Exports catalytic converters, stainless-steel exhaust components, car jacks and door locks and Struandale local market Ford • Is spending R3-billion expanding its two South African facilities, an assembly plant in Pretoria and an engine factory at Struandale in Port Elizabeth • Will make the major components of 220 000 Puma engines annually; 145 000 engines will be for export to other Ford facilities internationally. Mercedes-Benz Exports have been going so well for Mercedes-Benz that the Port of East London has been setting container-handling records. The East London car terminal has 2 800 undercover parking bays and 1 000 open bays. Mercedes-Benz has: • Spent about R2-billion on upgrading its manufacturing plant in East London, and now produces both right- and left-handdrive vehicles for domestic sale and export • The East London plant won the 2010 Initial Quality Study Platinum Award, for producing vehicles with the fewest defects for the US market • Manufactures the Mercedes-Benz C-Class (W204), the only plant outside Germany to do so • Manufactures the Mitsubishi Triton LV bakkie, Freightliner and FUSO trucks and Mercedes-Benz trucks and bus chassis • Has set a target of producing 65 000 new C-Class sedans annually Volkswagen Volkswagen won the Eastern Cape’s Exporter of the Year Award in 2011. In 2010, the company created 1 000 jobs, and a further 600 were created by its supplier partners. The company: • Manufactures right-handdrive Polos for the international market (a R30-billion contract valid for six years), CrossPolo and Polo Vivo (for the domestic market) • Has spent R100-million on training in the last three years • Made 119 614 vehicles in 2010, of which 76 931 were exported • Employs 6 500 people Online resources Automotive Industry Export Council: www.aiec.co.za Coega Industrial Development Zone: www.coega.co.za East London Industrial Development Zone: www.elidz.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za National Association of Automobile Manufacturers of South Africa: www.naamsa.co.za Uitenhage Despatch Development Initiative: www.uddi.co.za General Motors • Makes the Chevrolet Spark EASTERN CAPE business 2013 76 OVERVIEW Automotive components The components sector is strong and diverse. T he majority of parts and components made for the automobile industry are for export, and are valued at about R30-billion in export value. The Industrial Development Corporation (IDC) has identified the automotive-parts subsector as a specialist field in which South Africa, specifically the Eastern Cape, has a competitive advantage. According to I-Net Bridge, there are 80 major automotive component companies in the Eastern Cape, with more than 1 000 smaller companies. Sectors include leather works, batteries, automotive tooling, catalytic converters, glass, lamps, radiators and alloy wheels. Other key products include engines, silencers, exhausts, car radios and axles. Metair has a number of companies in the value chain and has bought a large lead-acid Romanian battery manufacturer. Subsidiary First National Battery, with a plant in East London, has signed a major contract to supply a specialised battery for the hybrid BMW 3 Series. Lumotech in Uitenhage, a maker of car lights, has recently diversified into eco-friendly street lights. Shatterprufe makes rear lights, door glass and laminated windscreens at its two Port Elizabeth plants. The province’s Industrial Development Zones (IDZs) at East London and Coega have been successful in attracting companies in this sector. Polymer manufacturers REHAU built a factory in 2009 to cater to Volkswagen at Coega, and other recent investments have come from Benteler Automotive, Grupo Antolin and Faurecia Interior Systems. The East London IDZ has Fletex Automotive Trim, TI Fuel Systems and Feltex Fehrer among others. Firestone was the first tyre company to be established in Port Elizabeth. It was soon followed by Goodyear (in Uitenhage) and General Tyre (now Continental Tyre SA). Continental has about 1 600 employees and sells tyres domestically and internationally. Bridgestone has production facilities in Port Elizabeth and Brits. Sector Highlight Metair has bought a large Romanian battery manufacturer. major companies • Lumotech • First National Battery • Peugot • Firestone • Goodyear • Continental • REHAU • Shatterprufe Catalytic converters need three platinum group metals, all of which are available in South Africa. From a start-up industry in the mid-1990s, the sector now supplies 14% of the world market and is worth at least R18-billion. Some of the major companies based in Port Elizabeth are Peugot, which makes three million converters per year and employs 350 people, Ford, which makes 1.8 million, and General Motors South Africa. US company Corning makes substrate in Port Elizabeth. BASF Catalysts and Umicore Autocat SA are other companies in this very technical field. Catalytic converters account for almost half of all component exports. Online resources Eastern Cape Development Corporation: www.ecdc.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za EASTERN CAPE business 2013 78 PROFILE Lumotech (Pty) Ltd Lumotech is an industry leader in products relating to automotive lighting and plastics, as well as commercial lighting. History Lumotech (Pty) Ltd commenced operations in South Africa in 1957 under the name of Derek Riley & Co (Pty) Ltd. In 1967 the factory moved to Uitenhage, and the company’s name was changed to Hella South Africa (Pty) Ltd. In 1989, Hella Germany sold 40% of its shareholding to Metair Investments Limited. In 1993, Metair acquired the balance of the shareholding. In March 2009, the company’s name changed to Lumotech (Pty) Ltd. Lumotech has access to a multitude of facilities and technical resources, through technical aid agreements with Hella Germany, Automotive Lighting and Koito in Japan. ultrasonic welding equipment is available, and many components are assembled daily using these techniques. Decorating of plastic parts by direct vacuum metalising allows for many variations of the final product, with processes to suit each specific requirement. Most recently, programmes have been implemented to further streamline production and optimise factory utilisation, as the company prepares to become an increasingly competitive supplier to domestic and export markets. Customer market The Lumotech customer base includes the majority of the vehicle manufacturers or original equipment manufacturers and their dealer netProducts and services works for replacement parts. The aftermarket is The name Lumotech is synonymous with quality mainly serviced through Hella Automotive South and reliability, and the manufactured products Africa who, in turn, supports organisations such cover the original equipment market, replace- as Parts Incorporated Africa, Super Group Auto ment market as well as the aftermarket seg- Parts, Imperial Auto Parts and Diesel-Electric. ments. The Lumotech product range consists of the automotive range (headlights, tail lights, Values spotlights, signal-lights and specialised plastic- The Lumotech core values centre on customer injection mouldings) and the commercial range orientation, employee participation, hon(energy-efficient streetlights and warehouse esty, integrity and reliability, as well as nonlights) marketed under the Envirolight brand. discrimination, and a healthy and safe working environment. Lumotech, through its traditional range of products, has developed high-level skills in Contact details the injection-moulding field, and also applies these skills to a wide range of other specialised Key contact person: injection-moulded products and markets. Norbert Wegner, Sales Manager Email: firstname.lastname@example.org or A broad range of engineering and commodity email@example.com thermoplastic and thermosetting raw materials, Tel: +27 41 995 3002 or +27 41 995 3111 both imported and locally sourced, are used Fax: +27 41 995 3001 in the moulding process, giving Lumotech the Physical address: Fitzpatrick Street, Niven know-how to manufacture components for all Industrial, Uitenhage spheres of industry. Hot plate, vibration and Website: www.lumotech.co.za 79 EASTERN CAPE business 2013 OVERVIEW Engineering Water-engineering skills are in demand in the Eastern Cape. Sector Highlights Several engineering firms are building Volkswagen’s new press shop in Uitenhage. • The automotive industry supports engineering studies at the province’s universities. • Transnet’s School of Engineering is training artisans. major companies • Transnet Rail • BKS Consulting • Group Five Coastal • Aurecon • Afri-Coast Engineers • Onvlee Engineering • Basil Read Municipality in the light of the increased demands for water from the Coega Industrial Development Zone (CIDZ). The automotive and the automotive-supply industries are naturally the focus of much of the energy of the engineering sector, as they are the biggest drivers of the Eastern Cape’s economy. A strategic partnership between General Motors South Africa and the Nelson Mandela Metropolitan University (NMMU) has resulted in a Chair of Mechatronics being created in the university’s School of Engineering. Engineering Volkswagen’s expansion plans included a new press shop. A major water project in the mountains of the easterly region of the Eastern Cape has been identified as a priority by national government. As a result, the proposed Umzimvubu water project is likely to go ahead once a detailed feasibility study has been completed. A steady supply of water to rural areas and the town of Mthatha has the potential to promote economic growth in the area. Early plans are for a dam and hydroelectric power station to be built on a tributary of the Umzimvubu River. There are several other water-engineering projects underway in the province, including the construction of the R70-million Mndwaka Dam near Elliotdale. ARQ Consulting Engineers is engaged on this project. Amatole Water’s capital expenditure budget of nearly R100-million in the 2010/11 financial year created a lot of work for engineers. Water specialists Aurecon, together with Afri-Coast, PDG, Scherman & Colloty and Groundwater Africa, were responsible for developing the Algoa Reconciliation Strategy, an analysis of how to provide sufficient water to the Nelson Mandela Bay EASTERN CAPE business 2013 80 photo: Volkswagen Group South Africa OVERVIEW NMMU’s eNtsa unit (which focuses on automotive components) won a Technology Innovation Agency award in 2011 for its WeldCoreTM process. Port Elizabeth-based Ford Motor Company of Southern Africa helped establish the Ford Engine Research Unit in the university’s Department of Mechanical Engineering in 2011. The focus of the fiveyear partnership will be on new technologies in engine research and development. Volkswagen supports the VWGSA International Chair in Automotive Engineering at NMMU, and has five SETAaccredited learning academies on its site in Uitenhage. The Automotive Chair runs an exchange programme with Germany for engineering students, and supports research in the field. Volkswagen’s expansion plans have also created work for engineers. Construction of the company’s new press shop involved BKS Consulting, Group Five Coastal, Esorfranki and Scott Steel, among others. Transnet Rail Engineering is another of the big engineering concerns that operates in Uitenhage, and hosts the satellite campus of the national Transnet School of Engineering (SOE). With 220 artisans training at all times, bursary schemes for parttime and full-time students, and the capacity to offer work experience for engineers in training, SOE is is one of the most important training institutions in the province. Volkswagen and SOE cooperate in training programmes, with heat work, for example, being studied at the Transnet facility. The Uitenhage campus of the Eastcape Midlands FET College is called the Charles Goodyear Campus. The Goodyear tyre company has recently reopened its own technical training school. Mercedes-Benz South Africa (MBSA) has two large training facilities in East London: the MBSA Technical Training Centre and a new R3-million Trade Test Centre for millwrights and electrical artisans. In the Border-Kei region, a partnership is devoted to training more welders: the Master Artisan Academy of SA, ESAB and Industrial Welding Supplies have signed an agreement whereby they will train more qualified welders. Companies such as Onvlee Engineering have specialised in servicing the automotive industry for many years. Other major areas where engineering expertise has been required include: • Urban renewal schemes in Uitenhage and Port Elizabeth • Building infrastructure for investors in the industrial development zones of Coega and East London. WBHO Construction will employ 1 000 people at Coega in carrying out a plantbuilding contract for Chinese vehicle assembler, FAW • The ongoing development of the Ngqura port, Basil Read’s R200-million contract to build bridges over the Coega River • The renewable energy sector, in which Afri-Coast Engineers constructed the first Wind Tower Generator in the CIDZ The same company was involved, with Randcivils, in upgrading Govan Mbeki Avenue in downtown Port Elizabeth. Several areas were pedestrianised and street furniture and kiosks for traders were erected. The Nelson Mandela Bay Development Agency drove this project, while the city also has an ambitious R100million Vision 2020 Beachfront Development plan. Randcivils delivered the R44-million project to rejuvenate the Donkin Reserve, which included the erection of a 45m flagpole made in Dubai. Several large public art works have been erected on the reserve. Online resources Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za School of Engineering, NMMU: www.nmmu.ac.za South African Federation of Civil Engineering Contractors: www.safcec.org.za South African Institute of Electrical Engineers: www.saiee.org.za Southern African Institute for Industrial Engineering: www.saiie.co.za 81 EASTERN CAPE business 2013 focus Rail wagons old and new The manufacture of new rail wagons and refurbishment of old wagons is the main work of Transnet Rail Engineering Uitenhage. L ined up at the southern end of Transnet Rail Engineering’s (TRE’s) workshops in Uitenhage are hundreds of decrepit and shapeless wagons. Box wagons with doors falling off, coal wagons that can carry no load, others no more than bare platforms on wheels. Some wagons hardly fit the description of ‘wagon’ any more. There The old wagons are lined up waiting to be transformed. are hundreds of them, trailing off on tracks towards the small town of Despatch, past several huge stacks of scrap metal, and on around the bend towards the massive buildings that house the workshops of Volkswagen South Africa. It is the scrap metal that provides the clue to what is going on here: nothing less than the Refurbished wagons are assembled from their derelict complete transformation of predecessors. TRE Uitenhage will refurbish 1 648 wagons almost useless machinery into in 2012. shiny, ‘as-new’ rail wagons that will go back into the national fleet, ready to transport tons of freight over in the massive national infrastructure drive by thousands of kilometres of railway line. delivering new wagons to a variety of clients. With Transnet and all its subsidiaries ramping The main client, as with many TRE businesses, up capacity at a rapid rate, TRE Uitenhage’s wagon is Transnet Freight Rail (TFR), but new wagons business has had to step up. In 2011, the divi- have also been made for Rio Tinto’s coal operasion refurbished 723 coal wagons. In 2012, it tions in Mozambique and for the Botswana govwill more than double that output and remake ernment. The latest contract will see 160 salt a total of 1 648 wagons. wagons delivered to Botswana. The new-build section of the plant, which TFR has ordered 350 new-generation automoonly started operating in 2009, is playing its part tive wagons as part of its drive to get freight off eastern cape business 2013 82 focus the road and onto rail. With each double-decker SLC18-wagon costing R1.6-million, this is a significant investment in the Transnet group’s strategy. The auto-wagon has a hydraulic middle section, and can be configured to carry most vehicles. It is also fully sealed for safety. When the assembly line is working at full capacity, three or four wagons can be produced in a day, although in the case of the more complicated auto-wagon, this will probably be oneper-day (once the prototype is complete). The Rio Tinto contract for 200 wagons was completed in three production months. A depot at New Brighton does wagon maintenance, but major repairs are done in Uitenhage. Wagon facts • The Uitenhage plant’s Fabrication section is the only one in South Africa that makes its own materials. • TRE Uitenhage’s R4.1-million plasma cutter is the very latest in new technology. Lasers are used to cut steel very fast to computer-programmable settings. • The average wagon refurbishment percentage (the amount of fixing-up required) is 82%. • Wagon refurbishment can cost anything between R50 000 and R600 000. Working hard and doing it right Wagons business unit manager Thembeni Nofemele has reason to be proud of the work that he and his staff are doing. On a tour of the four large workshops where wagons are made from scratch and remade from nearscrap, it was easy to Thembeni Nofemele imagine how proud Thembeni’s father, a retired Transnet welder from De Aar, must be of his son. Growing up in a town that is an important rail junction inspired a love of travel in the young Thembeni. After matriculating in De Aar in 1998 and gaining diesel electrical qualifications, Thembeni earned an NQF5 in Operational Management. He moved to Uitenhage just as the new-build programme began in 2009. Writer for Eastern Cape Business John Young visited TRE Uitenhage’s plant to see firsthand the work that the organisation is doing. ‘Our tour showed small teams of workers concentrating hard on the task at hand. Overhead cranes dragged big components from one part of the high-ceilinged workshops to another, intensely hot furnaces hissed urgently, and the evidence of welding seemed to be sparking everywhere we looked. ‘Just as the photographer and I commented to Thembeni on how impressed we were by the cleanliness of every work space that we had seen, we came across two tiny pieces of litter. We thought it was quite funny but surely not serious, given that this was an industrial site. Thembeni’s tone of voice told us otherwise, and the litter was gone before we had a chance to register what it was. ‘The secret behind the neatness evidently lies in an incentive scheme that rewards teams every month with tickets to the football (TRE Uitenhage has a box at the Nelson Mandela Bay Stadium) or braai packs. Training in other areas also seems to be working. At one point the photographer took his earphones off but a section supervisor quickly stepped up and insisted, “In the workshop, earphones in,” Thembeni smiled.’ 83 eastern cape business 2013 interview Recognising and rewarding good work Transnet Rail Engineering Uitenhage’s centre manager Aaron Paul highlights the factors that led to the company’s success. Aaron Paul Aaron Paul is centre manager of Transnet Freight Engineering in Uitenhage, and national manager of the Rolling Stock Equipment (RSE) division of Transnet. He obtained a National Diploma of Mechanical Engineering at what is now the Cape Peninsula University of Technology before working at Sasol 1 for two years as a trainee. Aaron started working for TRE in 1994 in Germiston. He worked in various sections before being asked to run the Tarpaulin division. Aaron moved to Bloemfontein in 1997 as manager of Fabrication. Wagons was later added to his plant responsibilities. He was appointed centre manager of Uitenhage in 2009 and was given national responsibility for RSE in 2012. eastern cape business 2013 You are in charge of Transnet Rail Engineering’s division known as Rolling Stock Equipment (RSE). RSE is represented at most Transnet workshops around the country, including Uitenhage. What does RSE do, and how do you measure your success? Rolling Stock Equipment gives the different business divisions (locomotives, coaches and wagons) the components so that they can get the job done. RSE gets measured on availability and reliability. We engage with Transnet Freight Rail, and we say, you have so many wagons, there is an A fleet and a B fleet. We will make sure so many wagons are available at any given time. In terms of reliability, we guarantee the wagons will be in good running condition for a certain time period after a service. What is your task as centre manager at Uitenhage? My job here is to see that the various units are being supported. Those are Wagons, Wheels, Rolling Stock Equipment, Locomotives (Swartkops and Cambridge) and the Wagon depot at New Brighton. We must give them the service that allows them to run the operational business. We provide services such as procurement, ICT, human capital, risk and finance. Until three years ago Uitenhage only refurbished wagons. Since then, the plant has been building new wagons. How is this programme progressing? We recently built 200 wagons for Rio Tinto’s operations in Mozambique. Two shipments were sent. The Botswana government was here recently, and we are building new salt wagons for them. We have upgraded soda-ash wagons and high-side wagons for them in the past. We have refurbished wagons for Kei Rail that transport ballast, and refurbished coaches for their lines. Please give an overview of Transnet’s Market Demand Strategy. Transnet’s Market Demand Strategy aims to increase capacity to meet market demand. A R300-billion capital expenditure programme will expand port, rail and pipeline infrastructure, with the goal of shifting freight from road to rail and boosting economic development. 84 interview Transnet Rail Engineering Uitenhage has invested in the very latest technologies. Is Transnet’s Market Demand Strategy having an impact on your work here in Uitenhage? It is having a huge impact. The quantities we are achieving this year are double the quantities of last year. If it impacts the wagons division, then there is an impact on the wheels division, and on RSE, and so on all the way down the line. It is about building the economy and creating jobs. I know that Bloemfontein’s wagon numbers are doubling. Your career path saw you rise quite rapidly to a managerial position. How did that happen? You have to prove yourself. Slowly but surely you work your way up. Every year in November we have TRE awards when they give recognition. I have won various prizes over the years. Is recognition a strong factor in Transnet? Part of our culture at Transnet is to reward people for good work. We have many success stories of people working their way up from the floor. When I started at Germiston, the current chief executive Richard Vallihu was an IT manager. Our current second-in-charge started as a millwright. Peter Cona, who is in charge of the R8-billion wagons business, also worked his way up from the floor. Do you think this helps make Transnet strong? They know what they are talking about! I think it really is a strength of our business. TRE Uitenhage in numbers Recent orders: Rio Tinto coal wagons, 200; Botswana government, 160 salt wagons; Transnet Freight Rail, 350 new-generation automotive wagons. Employment: January 2011: 1 326 Projected November 2012: 1 688 Capital expenditure (capex) ramp-up: By September, Uitenhage TRE has normally spent one-quarter of its capex budget. In 2012, 50% of the budget was spent at that time. New equipment: • R8-million new metrology laboratory, a device to measure components in 3D • R4.1-million new plasma steel cutter eastern cape business 2013 85 focus Education is the top priority Transnet Rail Engineering Uitenhage has solid corporate social investment programmes and projects. F loradale Farm School in Nompumelelo, Beacon Bay, was transformed in May 2012, when Transnet Rail Engineering (TRE) Uitenhage donated two classrooms. Education is the chief focus of the Transnet Group’s corporate social investment strategy. TRE Uitenhage is supporting a number of projects in that field, and in child welfare. Proposals for the 2012/13 Handover ceremony at Floradale Primary in Nompumelelo financial year include worktownship in East London. shops and equipment for a ‘TRE Uitenhage won the national Transnet technical school, support for an orphanage and a home for the aged, and a CSI Award this year. cricket programme that will fill a gap in the junior ‘The school behind the success was the years in KwaNobuhle. Stephen Nkomo Primary School in KwaNobuhle Communications specialist Mmamapele Lesoro township. We started off planting trees, and expands on how TRE Uitenhage prioritises its started building a relationship with the residents. social spending. ‘The main objective in the CSI The following year we gave them 20 computers. field for TRE Uitenhage is our schools programme. Then we gave them a properly equipped kitchen We go into the community and we see which to run the school nutrition scheme. schools need facilities: do they need libraries ‘The school now maintains itself so well. or computer rooms? Many of the schools have They love it, they value it, and they don’t take halls that we can turn into a computer room and anything for granted. then we supply them with computers. ‘We had a beautiful 67-Minutes-for-Madiba this ‘In May 2012, we donated two container year. We painted a school as a united Transnet classrooms to a school where there was bad staff, with people from the floor, people from overcrowding. There were 60 kids in one room management. Over that weekend there was at Floradale near East London. There is a high heavy rain which led to a flood disaster. On that Monday, we got together again to help the rate of unemployment in that area. ‘I always look at the primary schools first. It people whose houses were flooded. So we went is my belief that we can help provide a foun- out and gave blankets and soup to people who dation. We want to take them upwards so that were affected.’ when they get to high schools, they know how to use a computer. www.transnetfoundation.co.za eastern cape business 2013 86 focus A structured learning path Transnet Rail Engineering Uitenhage provides a measured and systematic personal learning path for each employee. T he Uitenhage campus of the Transnet School of Engineering (SOE) offers employees a graded and structured learning path into one of several careers. As capacity-building manager Donald Tuck explains, the developDonald Tuck ment of an employee does not always mean a direct move straight up into management, although there are a number of senior staff at Transnet Rail Engineering Uitenhage (and across the Transnet group) who have indeed graduated ‘from the floor’. Says Donald, ‘A manager needs to be able to say that an artisan working in his or her section has the skills required for an artisan, but perhaps there is potential for something else.’ Donald interestingly uses the concept of ‘circles’ to explain the next step, rather than a hierarchy. He continues, ‘Now you start looking at the next circle, it could be supervisory, it could be quality control, or production planning and logistics. We look at three areas. Where can we develop that person? If they go to the quality division, then they must get programmes to develop in that field.’ Uitenhage School of Engineering does the engineering-related training for all of the Transnet business units in the province, including Transnet National Ports Authority and Transnet Pipelines. Most courses are run at the School of Engineering campus itself, but if there is sufficient demand for a course at a site, then trainers are sent there. For instance, the depots and workshops at New Brighton, Swartkops and Cambridge might need flame-cutting training (a component of welding). The main technical training (trades), functional training (safety, health, environment) and liftingmachine-operators’ training is done in-house. Every employee has to sit down once a year and fill in an Individual Learning Plan (ILP). Donald explains what happens next. ‘The ILP is integrated into an annual training plan called the Workplace Skills Plan (WSP), and this is signed off by the business committee. We then monitor that WSP as the year progresses. All department and site plans are integrated into a provincial plan.’ Uitenhage SOE administers a part-time bursary scheme up to graduate level. There are currently 32 employees attending either the Nelson Mandela Metropolitan University (NMMU) or the Eastcape Midlands FET College. Supervisors typically go to NMMU Business School. Courses offered by SOE support the formal university degree or diploma course. The SOE has 220 artisans on its books at any one time, and supports full-time bursary holders with work experience as well. Donald elaborates, ‘We have the technician-in-training programme. We take full-time Transnet bursary holders from FETs in electrical-, industrial and mechanical engineering and we put them in an 18 to 24-month programme internally. These are skills that the country badly needs.’ www.transnet.net 87 eastern cape business 2013 focus Women in engineering Women are forging ahead at Transnet Rail Engineering’s Uitenhage plant. F rom the front office to the factory floor, women are playing key roles in this manufacturing and industrial enterprise. Many employers talk about improving the status of women in the workplace, but the Uitenhage branch of Transnet Rail Engineering (TRE) is doing much more than talk – women are working successfully in every sphere of this complex business. There are female welders, wagon-fitters and executives, and women who answer phones and organise meetings. Like every TRE employee, every woman has a training path that is reassessed once a year, and plans are put in place to take courses or diplomas that will help the employee advance. Managers are tasked with looking out for staff with talent and potential. Employees then attend courses in their chosen field. A fine example of how well this system can work is the case of customer service manager Le-Rita Barnardo. This interview illustrates what exciting results can be achieved when a wellstructured training programme meets an ambitious and hardworking employee. Women are employed in all areas of the business. Promising employees attend courses in their chosen field. eastern cape business 2013 88 focus From wagon-fitter to manager What does a customer service manager do? We are responsible for liaising with the customer internally or externally. I understand what the customer wants. With my technical background, I am in the position to advise the customer on what they might need. What career did you think you would follow when you were young? I was a fashion designer from the time I was in school, and then after school I worked at several shops and boutiques. I used to make my own clothes, then I started designing clothes for models and brides and bridesmaids. Is that what you did after school? An opportunity came up in a competition run by the Lotto. I was selected as one of the candidates with the best business plan (for a clothing design business). But, if I wanted to take up the Lotto offer, then I had to relocate to Johannesburg at the age of 18. My parents were very reluctant, so I had to drop it. It was disappointing as that was my passion. How did you deal with the disappointment of not opening a business in Johannesburg? I enrolled at Eastcape Midlands FET College where I studied engineering. My parents thought this would be demand in the near future, especially for females. How did the engineering studies go? I found it a great challenge; every day was challenging. The class was mostly male. As the class progressed, I achieved several distinctions. I applied as a student at TRE Uitenhage while I doing level three. Was this something you now thought of as a possible career? I didn’t have a passion for it. I thought, ‘This is the railways!’ Everyone had this perspective about working with wagons and railways, while my passion was for fashion design. But you applied anyway? I decided to take up the challenge and apply. There was a post for wagon-fitting and I wasn’t scared of a challenge. I was well prepared for the interview. I told them I thought I Le-Rita Barnardo was robust enough. I believe in myself and that nothing in life is impossible. When were you offered a position by TRE? In 2006, I came in while finishing off my N3. I qualified as an artisan in Germiston and won an award as ‘Best Student’. Did you continue your studies? I worked as a wagon-fitter for six years, and I enrolled at Nelson Mandela Metropolitan University studying Operations Management. I did courses such as Finance and Logistics and earned some distinctions along the way. I then did a Women in Leadership course, also at NMMU, and TRE supported me all the way. In what way? They offered me various appointments in a part-time capacity for me to gain exposure. I worked for three months in the Quality division, and again as a supervisor for six months. Then it was back to the floor, but I worked in different artisan positions as well. What was your first formal appointment to management? In 2010, I became the TRE Uitenhage Customer Officer, the assistant to the manager. I received additional exposure through the ‘cadet programme’ and when the manager moved on in July 2012, I was appointed as customer service manager. 89 eastern cape business 2013 PROFILE Afri-Coast Engineers SA The company strives to be among the world’s leading companies in providing sustainable consulting engineering and project management solutions. Afri-Coast Engineers is a leading independent engineering consultancy offering a variety of services including renewable energy projects. With its head offices in Port Elizabeth in the Eastern Cape, Afri-Coast’s multi-disciplinary team has extensive sustainable energy experience. To date, the company has assessed renewable energy developments of various sizes. Currently, feasibility studies are in progress for various sites for hydro-energy projects. The company also offers services in all aspects of solar-power projects. Afri-Coast’s clients include financiers, developers, public sector organisations and private sector organisations. • Turbine-selection support • Wind turbine and other technology • Grid connection, electrical and communica• Transport assessments and civil infrastructure • Tender-assessment support • Safety management • Power-performance assessment • Technical audits • Developing a portfolio of large-scale wind• Entire project process, from scoping through energy projects in the Eastern Cape to permitting and operation of the wind farm, including development activities, land acquisition, site engineering, project finance, stakeholder engagement and overseeing plant construction and operation • Site selection using wind maps, environmental and civil aviation restrictions specification tions infrastructure specification assessments Key services • Renewable energy (wind, solar, hydro, landfill • Transportation and road engineering • Water and waste-water engineering • Bridge engineering • Building/structural design and structural • Asset management • Project management • Geographic Information Systems (GIS) • Environmental services • Coastal engineering • Electrical engineering and energy efficiency Wind-energy services • Data collection (wind-monitoring masts up • • • • rehabilitation gas and wood waste) Contact details Key personnel: Venance da Silva, Director Ignatius Du Preez Van Renen, Director Key contact person: Elsabé Koen Tel: +27 41 505 8000 Fax: 086 295 7815 (SA only) Email: firstname.lastname@example.org Physical address: cnr Rose and Havelock streets, Port Elizabeth Website: www.africoast.com to 70m) Field-data services and site selection Field-data management Preliminary wind/energy assessments Preliminary layouts/net energy calculations EASTERN CAPE business 2013 90 interview Renewable energy a reality Executive director of Afri-Coast Engineers Venance da Silva highlights the benefits that will result from innovative renewable energy projects in the Eastern Cape Province. This Wind Tower Generator (WTG) at Coega is the first independent power producer (IPP) wind-energy source in South Africa and subSaharan Africa. What effect has this had on the renewable energy sector in the province? The first commercially owned WTG in South Africa was a milestone for the country’s renewable energy roll-out programme, and that created an awareness that large-scale renewable energy was about to become a reality. This project also demonstrated that wind energy is economically viable. In the near future, the Eastern Cape will be a major wind-energy hub of development and this will boost the local economy, with the added benefit of providing energy security. Venance da Silva Funds have been invested in the Vision 2020 Gateways and Beautification Project. How is this money being spent, and how is the project progressing? The first project to be implemented was the beautification of Alister Venance da Silva gradu- Millar Drive, with the palm-tree planting project and gardens alongated from the University side the road. This was followed by a further beautification project of Natal in 1981 with a in Mel Brookes Drive, Uitenhage. Other works along the N2 included BSc degree in civil engi- the construction of palisade fencing and indigenous tree planting. neering. Venance established Silva McGillivray What is the company’s approach to skills training? Inc consulting engineers We have a policy for attracting employees with talent and potential, in 1997. In 2000, the com- with qualifications and experience not being the necessary attribpany changed it name to utes in developing personnel to perform at the required level in our Afri-Coast Engineers and industry. We encourage our personnel to continuously improve and Venance remained as an learn to adapt their skills in an ever-changing environment. executive director. Venance is responsible for the The company’s vision is to be among the world’s leading companies strategic direction of the in providing sustainable consulting engineering and project manboard of Afri-Coast and agement solutions. What is your plan going forward to ensure that for numerous engineering this vision is realised? infrastructure projects. Afri-Coast has always embraced the philosophy of doing things in Venance is also on the an innovative way, developing new ideas, looking at new technoloboards of MetroWind gies and concepts, and applying these ideas in a practical manner. Afri-Cap, Af-Rom Energy Engineering is about developing a concept, designing and impleand PIA Solar. menting it in a sustainable manner. 91 eastern cape business 2013 OVERVIEW Ports and industrial development zones Logistics and transshipment are driving huge investments in infrastructure. N ational expenditure on infrastructure is having a positive spin-off for the economy of the Eastern Cape. With three important ports and two of the country’s industrial development zones (IDZs), the province is well placed to grow in pace with the growth of infrastructure. East London harbour is to be widened and deepened as part of a R2.3-billion upgrade. The Buffalo River Bridge will be reopened and the existing grain elevator brought back to full service. The Port of Ngqura (in the Coega IDZ) achieved record volumes in 2012, and Transnet intends to invest heavily in the facility over the next 10 years. The goal is for Ngqura eventually to handle two million twenty-foot-equivalent container units (TEUs) per year. East London Shipyard is owned by DCD, and is located in the Port of East London. It provides a full spectrum of services and is equpped to cater for a vast array of vessels types. Transnet’s plans to increase manganese rail freight volumes to the Eastern Cape will help the Coega IDZ expand, but the IDZ is proving popular anyway, having attracted more than R1-billion in investment. Sector Highlights East London harbour will receive upgrades worth R2.3-billion. • The Port of Ngqura has grown export volumes by 165%. • FAW trucks has opened a truck assembly plant at the Coega IDZ. major companies • Coega Industrial • East London Industrial • Transnet Port Terminals • Transnet National Ports Authority Development Zone Development Zone ‘waterfront’. There is already a yacht basin in operation, and Transnet Port Terminals will spend R33-billion across South this could be linked to King’s Africa between 2012 and 2019, with improvements being Beach and developed into a implemented in the container and bulk sectors at all of South site for retail and leisure. The Port of East London is Africa’s major ports. The new Port of Ngqura is the most modern deep-water har- South Africa’s only river port. It bour in the southern hemisphere, and the centrepiece of the handles 150 000 tons of cargo Coega IDZ. With deep-water capacity, the harbour can serve on a monthly basis. Major the large ship market plying its trade on the busy route to and commodities handled include motor vehicles, vehicle comfrom China. Volumes have risen by 165% since the port opened. The ponents, maize products, container terminal has a staff complement of 376. machinery, chemicals, sugar, Most of the cargo flowing through the Port of Port Elizabeth timber, textiles and steel. comprises agricultural products, timber and automotive products. The port has a recently With the planned relocation to Ngqura of manganese- upgraded car terminal, a conexporting facilities and the liquid-bulk terminal, space will open tainer terminal, dry- and breakup for the long-awaited development of Port Elizabeth’s own bulk berths, a liquid-bulk Ports EASTERN CAPE business 2013 92 OVERVIEW Port East London Primary role News Service ELIDZ. Export of cars, Car terminal recently upgraded. Record 3 280 Mercedes-Benz. C-Class Mercedes-Benz exported on one day in 2010. R2.3-billion upgrade planned. Service Coega IDZ. In July 2012, Ngqura used six massive cranes First stage: capacity of 800 000 to shift 5 408 containers from the MSC Sola, a TEUs. Final stage: two million 364-metre-long vessel. A record speed of 153 TEUs. ship-working-hours was achieved. Export channel for manganese, about 4.6 million tons per year. Export of cars, Volkswagen and automotive parts, catalytic convertors. Agricultural products, especially wool and mohair. Fifth-largest port in terms of national tonnage, but the third-largest in terms of revenue. Liquid bulk terminal and manganese storage may be moved to Ngqura. Ngqura Port Elizabeth Eastern Cape ports. area has been substantial. The zone lends itself to investment in the automotive-supply sector, but it has attracted investments in renewable energy, manufacturing and agri-processing. FAW motor manufacturers of China will spend R200-million on building its truck assembly plant and a further R400-million on running it, with production due to come on line at the end of 2013. Other prominent investors include Kuehne & Nagel, Cape Concentrates, Discovery (national call centre), Benteler and Electrawinds. Industrial The East London IDZ had 30 investors as of May 2012. development zones The main sectors being targeted are automotive and compoSouth Africa has three opera- nents, aquaculture, agri-processing, pharmaceuticals and ICT tional industrial development and electronics. Companies include Sunningdale Dairy, Matla zones (IDZs). The Eastern Solar Heaters, Feltex Automotive Trim, Mediterranean Shipping Cape’s two zones offer inves- Company and Espadon Marine. tors existing infrastructure, access to excellent port facilities, dedicated customs support services, duty-free importation concessions for raw materials, zero-VAT rating for locally sourced materials Online resources and various tax and incentive Coega Industrial Development Zone: www.coega.co.za schemes. Twenty-one private invesEast London Industrial Development Zone: www.elidz.co.za tors have collectively invested Transnet National Ports Authority: R1.2-billion in the Coega IDZ, www.transnetnationalportsauthority.net just outside Port Elizabeth. Transnet Port Terminals: www.transnetportterminals.net Public investment into the facility and a dry-dock for ship repairs. Port-handling figures have been steadily improving, with Mercedes-Benz loading everincreasing numbers of vehicles on to ships destined for the US. 93 EASTERN CAPE business 2013 OVERVIEW Transport The Eastern Cape’s rail network is being revitalised. The province is spending millions of rands on upgrading and expanding its airports. I nvestment in transport infrastructure by state agencies is helping the Eastern Cape revitalise its transport network. With three ports (covered in a separate article), two major regional airports at East London and Port Elizabeth, a combination of national and regional roads and a rail network that is being revitalised, the Eastern Cape is well equipped to move goods and people from one place to another. Mthatha Airport was handed over to the South African National Defence Force in 2012. Plans for the airport form part of the King Sabata Revitalisation Project for the region, and include using the airport as a pilot school. East London Airport’s runways are being overhauled in a R185-million operation led by GIBB engineers, and Bhisho Airport will receive new accommodation for aviation students at a cost of R3.5-million. The Passenger Rail Agency of South Africa (Prasa) is to spend money on improving the rail corridor between East London and Mdantsane, and will invest in a new link between Motherwell and the Coega Industrial Development Zone (IDZ). If plans for a ferromanganese smelter at the Coega IDZ come to fruition, then Transnet will spend many millions on upgrading the rail-freight line to the interior, further boosting the province’s logistics capacity. Sector Highlights The runways of East London Airport are being upgraded. • Transnet’s second healthcare train was launched in the Eastern Cape in 2012. • The SA Defence Force has taken over Mthatha Airport. major companies • Transnet Freight Rail • Metrorail • Algoa Bus Company • Passenger Rail Agency • Airports Company South • South African National Roads Agency Limited …Continued on pg 98 Africa of South Africa EASTERN CAPE business 2013 96 focus Business excellence at Airports Company South Africa Airports Company South Africa has received a number of accolades for its operational and financial performance. Airports Company South Africa (ACSA) is focused on delivering core services cost-effectively and more efficiently through: • Delivering efficient capacity expansion in order to match forecast passenger growth and meet the traffic requirements for the future • Developing process excellence and continuous improvement • Constantly re-engineering processes to manage costs and increase revenues • Ensuring the delivery of the regulatory commitments by spending capital sums approved by the Regulator in the permission document and maintaining appropriate infrastructure to deliver optimal customer service experience for all airport users. In the 2011 ASQ results, we improved in courteousness, helpfulness and efficiency of all staff, with good ratings in the security and airline check-in staff. This contributed tremendously to our airport winning the ACI “Most Improved” award in Staff Service Excellence,’ says Michael Kernekamp, airport manager at East London Airport. Cape Town International Airport (CTIA) has once again been awarded the ‘Best Airport in Africa’ and the ‘Best Airport in Africa for Staff Service Excellence’ at the SKYTRAX World Airport Awards. Its sister airport, King Shaka International Airport, also received the ‘Best Regional Airport’ SKYTRAX award. CTIA is Africa’s most award-winning airport, having scooped the ACI ‘Best Airport in Africa’ award, the ‘Best Improved Airport’ as well as the internationally recognised SKYTRAX Award for ‘Best Airport for Staff Service Excellence’ the previous year. ‘The consistency with which the airport achieves these awards confirms our commitment to continuous improvement, and demonstrates that the airports achievements are not once-off,’ says Deidre Davids, communications manager at Cape Town International Airport. Other airports in the ACSA stable that won awards include King Shaka International Airport as ‘3rd-Best Airport in Africa’ and Upington International Airport for ‘Best Regional Airport’. Since its commencement in 2006, the ASQ Awards have become the world’s leading airport passenger-satisfaction benchmark with over 200 airports participating in more than 50 countries. www.airports.co.za eastern cape business 2013 Awards ACSA has received numerous accolades and awards for its operational and financial performance, including the prestigious ‘Nonlisted Company of the Year’ award. ACSA has twice been runner-up in the Deloitte Corporate Governance Awards for listed and non-listed companies. East London Airport was awarded the ‘Most Improved for Staff Service Excellence’ by the Airports Council International (ACI) in the Airport Service Quality (ASQ) global awards. East London won the award for the ‘Best Improvement by Region’ for Africa. The airport currently facilitates just under 700 000 passengers per annum. ‘The award is a testimony to the commitment and hard work of all the airport staff who will continue to do their utmost to deliver a great passenger 97 OVERVIEW Rail Transnet has adopted a Market Demand Strategy (MDS) to achieve its goals, aiming to bolster South Africa’s position with regard to the delivery of minerals to ports for export, and as a regional logistics and container hub. Rail projects include an upgrade of the operations at the Port of Ngqura/Coega IDZ to the value of R18-billion. Transnet Freight Rail (TFR) has been reporting everincreasing volumes of container traffic in recent years, with a 23.5% improvement in market share in the year to October 2011. General freight grew by more than 6% in the same period. TFR has also been transporting record volumes of iron-ore to Saldanha and coal to Richards Bay. Mdantsane was the site in 2012 of the launch of Transnet’s newest healthcare train, Phelophepha II. This train will allow health services to reach about 370 000 people every year. The commuter rail link between East London and Mthatha was restored in June 2011 after a six-month gap. It is run by Kei Rail. A 10-year plan has been established for the province’s rail network that will include better utilisation of the construction loops near the Coega IDZ. A study is looking into reopening the line between Queenstown and Maclear. This would allow timber to be transported by rail. The national headquarters of Sheltam is in Port EASTERN CAPE business 2013 Elizabeth. Sheltam maintains and leases locomotives, and runs an entire system of railways for the mining industry in some northern provinces. Roads The province’s road network is defined by the west-east axis of the coastal N2, with three other national routes (N9, N10 and N6) providing north-south routes through the area. A new 560km highway connecting East London and Durban has been approved in principle by national government. Parts of the project will widen existing roads, but large sections will be new, and nine bridges will span the huge ravines of the area. Government hopes that the road will boost rural development. The road will be tolled. Air Sixty-eight million rand was spent on Port Elizabeth Airport and R98-million was spent in East London in preparation for the 2010 World Cup. Port Elizabeth Airport has full international status, but the runways are 1 980m and 1 860m in length, and so it receives almost no international flights. There are plans to expand the runways. The airport receives about one million passengers per year and handles 820 000kg of cargo every month. East London Airport has experienced double-digit passengertraffic growth since the introduction of budget airlines. Passengers-per-year is projected to reach 1.4 million in 2015. The latest upgrade includes an apron reconfiguration, a new car rental building and an improved security system. Bhisho Airport’s R76-million upgrade was completed in 2009. Mthatha Airport was taken over by the South African National Defence Force (SANDF) in 2012. The SANDF hopes to develop the airport and use it for strategic defence purposes. Online resources Airports Company South Africa: www.airports.co.za Air Traffic and Navigation Services: www.atns.co.za Eastern Cape Department of Transport: www.ectransport.gov.za Metrorail: www.metrorail.co.za Passenger Rail Agency of South Africa: www.prasa.com Railroad Association of South Africa: www.rra.co.za South African Maritime Safety Authority: www.samsa.org.za South African National Roads Agency Limited: www.sanral.co.za Transnet Freight Rail: www.transnet.net 98 OVERVIEW Construction and property development Training in construction skills is taking centre stage in the Eastern Cape. Sector Highlights Finance is available for contractors in the low-cost housing market. • Rebosis Property Fund is the first black-owned property fund on the JSE. • New Creation Contractors won the provincial 2012 Govan Mbeki Housing Award for Best Performing Contractor. Hemingways Mall in East London is one of the country’s largest shopping centres. major companies T he Eastern Cape Department of Human Settlements is encouraging higher standards in the construction industry. At the Govan Mbeki Provincial Housing Awards ceremony for 2012, New Creation Contractors won the top award for the quality of its buildings, good control of cash flow and its understanding of the needs of the community for which it builds houses. The best youth contractor of the year was LG Construction. Several students are studying construction-related courses (Civil Engineering, Architectural Studies and Construction Management) at tertiary institutions in the province, with the support of the provincial department. The 2011 signing of a memorandum of understanding between the Nelson Mandela Metropolitan University (NMMU) and the Construction Industry Development Board (CIDB) also served to bolster skills training in the construction sector. NMMU’s Built Environment Research Centre will be the host of a CIDB Centre of Excellence and will receive R1-million per year for three years for post-graduate bursaries and research. Social housing initiatives in the Eastern Cape such as Reservoir Mews and Emerald Skies have attracted national attention, and • • • • Rebosis Property Fund Eris Property Group RE/MAX Construction Industry Development Board the rolling out of a new kind of project, the enhanced People’s Housing Process (ePHP), is being piloted in Elliotdale. The Eastern Cape Human Settlements budget for 2012/13 is R2.5-billion. Priorities include the upgrading of informal settlements, completing more than 50 000 housing units, improving metropolitan bulk infrastructure and implementing the ePHP in several rural areas. A Rural Development Housing Project has been introduced in three local municipalities. EASTERN CAPE business 2013 photo: Hemingways Mall 99 OVERVIEW Rebosis Property Fund made history in 2011 when it became the first black-owned and managed property fund to list on the JSE. The listing raised R1.6-billion in capital for the company, which has offices in Gauteng and retail malls in Gauteng and the Eastern Cape. The building of a new regional office for FNB at Greenacres in Port Elizabeth was a big event for the construction sector. Completed in 2012, FNB Newton Place houses all of the business units of the FirstRand Group, such as FNB Private Clients, FNB Commercial and Rand Merchant Bank. Property FNB Newton Place in Port Elizabeth. The National Department of Women, Children and People with Disabilities, working together with municipalities and other government departments, is supporting a Women’s Construction Flagship Project in Caguba, Port St John’s. The aim is to equip rural women with the skills to construct buildings that can help the community and generate income. The Investor Monthly (Financial Mail) reported in March 2012 that housing companies in the low-income market have been doing well on South Africa’s stock exchange, the JSE. Calgro M3 enjoyed a fivefold share-price rise in a six-month period, and RBA Holdings delivered its first profit. Calgro has a project pipeline worth R8-billion. In the Eastern Cape, NURCHA provides finance options for contractors in the affordable housing market, and also gives programme management support and services to municipalities tasked with rolling out housing projects. EASTERN CAPE business 2013 An unusual property development has been launched on the edge of the spectacular Van Stadens River gorge near the N2 highway, close to Port Elizabeth. The Crossways Farm Village is being styled as South Africa’s first ‘farm-village lifestyle project’ and is projected to have a value of R4.3-billion. The Billion Group’s development of the 73 000m2 Hemingways Mall in East London, a super-regional shopping centre, cost more than R1.5-billion. Another regional mall is planned for the town of Queenstown. This project by Eris Property Group (whose shareholders include Rand Merchant Bank and Royal Bafokeng Holdings) will accommodate more than 100 shops across 33 000m². RE/MAX real estate agency reports that the Port Elizabeth property market is in recovery after a period of being ‘almost static’. The PayProp Rental Index for the first quarter of 2012 showed Port Elizabeth rentals (two-and-a-half bedroom house or flat) somewhat below the national average of R5 000, at R4 500. But the national average is distorted by the extreme shortage of rental stock in the popular mining belts of Mpumalanga and Limpopo. The region’s game farms in the interior are popular with investors. Stock and game farms are popular and Pam Golding Properties was offering a game farm in 2012 at a price of R7 000 per hectare. Online resources Buffalo City Development Agency: www.bcda.co.za Construction Industry Development Board: www.cidb.org.za Eastern Cape Development Corporation: www.ecdc.co.za Nelson Mandela Bay Business Chamber: www.nmbbusinesschamber.co.za South African Property Owners’ Association: www.sapoa.org.za Uitenhage Despatch Development Initiative: www.uddi.co.za 100 photo: Eris property group focus Meeting new challenges NURCHA, an innovative development finance institution, is increasing its involvement in the delivery of sustainable human settlements by providing finance solutions to contractors and developers. E ighteen years since NURCHA’s inception, the South African construction industry has faced considerable challenges very different from those it was initially established to surmount. In the worst cases, these issues can result in a housing projects being abandoned before completion, or contractors becoming insolvent as a result of implementation failures. Added to this, some municipalities and government departments have not managed their budget expenditure well, a factor that affects V Gqwetha, Acting N Cleaver, General the construction industry and by extension the Managing Director Manager, Lending economy, negatively. at NURCHA Portfolio Another dynamic that adds to these pressures is an increase in participation of new contractors of risk and returns on and developers, which poses new challenges in their investment. Furmanaging financial and construction risks in the thermore, NURCHA is sector (while nonetheless offering opportuni- now supporting varties for contractor and enterprise development). ious municipalities and This has been especially evident for skills sets provincial government including financial planning and management departments to roll out project- and proand project management. gramme-management A new portfolio and a new approach frameworks. NURCHA has also T Mosiea, The new challenges brought about by the recently changed General Manager, changing market and business environment its lending model. It Programme conditions call for innovative solutions. In line lends directly to conManagement with these challenges, NURCHA has reposi- tractors and no longer Portfolio tioned its financing strategy to include in-house uses intermediaries to capacity-building services targeted at providing support contractors. support services to departments and municiNURCHA’s lending portfolio caters to palities throughout the project and programme two sectors: life cycles, in order to mitigate financing and • Affordable housing lending risks in the environment. These services • Bridging finance to contractors include Programme Management, Fund Management and Contractor Development. For more information visit www.nurcha.co.za, Through these interventions, municipalities and email email@example.com, departments are assured of successful management or call +27 11 214 8700 101 eastern cape business 2013 PROFILE RE/MAX Independent Port Elizabeth RE/MAX Independent Properties Port Elizabeth is an award-winning property broker and estate agency operating in the greater Port Elizabeth area. Property is our game months to stimulate the economic growth and RE/MAX Independent Properties Port Elizabeth development of the Eastern Cape Province. targets all income groups in the property market. We have property consultants that spe- Key facts and figures sialise in particular areas where they become Year established: June 2003 (Walmer 2007) the specialist, with a wealth of knowledge. No of staff: 41 agents Turnover: R236-million Description of services RE/MAX assists buyers and sellers with one of Contact details the biggest decisions in life – buying and selling property. RE/MAX prides itself on excellent ser- Key contact people: vice delivery. Satisfied RE/MAX clients are vital Kobie Potgieter, Owner to the business as they cement the foundation Xhanti Mtongana, Co-owner (BEE company) for future business by making personal refer- Christo Slabbert, Broker/Principal rals. The rental division handles the everyday affairs associated with the leasing of property, Tel: +27 41 368 1100 or +27 82 771 2578 be it in the residential, commercial or industrial Fax: +27 41 368 1128 field, on behalf of investors or clients. The com- Email: firstname.lastname@example.org mercial and industrial property division handles Physical address: 2 Centenary Road, Lorraine, property that ranges from major shopping cen- Port Elizabeth 6070 tres to the proverbial ‘corner café’. Website: www.remaxind.co.za Recent accolades RE/MAX Independent is the largest RE/MAX office in the Eastern Cape, and its achievements include: Top Single Office for the past eight years and Top Multiple Offices for the past six years. RE/MAX Eastern Cape has also received the Betterbond Regional Award for being the top office for the last six years. In June 2012, the company won 1st overall position in the ‘PMR Diamond Arrow 2012’ award. This was awarded for doing the most in the sector over the past 12 EASTERN CAPE business 2013 102 interview A leader in the industry Co-owner Kobie Potgieter talks about RE/MAX Independent Properties’ recent achievements and accolades, and offers advice for potential property investors. Kobie Potgieter Please highlight some recent successes within RE/MAX Independent Properties. In the 2011 Greyvensteins Property Achiever Awards, nine of our agents featured in the top 20 finalists. I won first place, and we also produced Rookie of the Year – Talana Foot. In the period January 2011 to November 2011, we recorded 702 sales to the value of R338-million. We achieved a record month in June 2012, with 70 confirmed sales to the value of R67-million. What advice would you give to people who are looking to invest in property, taking into account the current economic climate? Ensure that you do your homework with regards to affordability for the long term. Investing in property should never be viewed as short term (this is termed speculation). Always remember the old adage ‘the worst house in the best area and not the best house in the worst area’. What is the potential for new developments in Port Elizabeth? For the first time since 2008, developers are purchasing land for residential development. This can be seen by the Anathi Ridge Estate/ South Pier and Stanbury Park Retirement Village developments in South End in Port Elizabeth, which RE/MAX Independent is marketing. The success of these developments will be largely due to the fact that they have an excellent location, good-quality design and finishes, and offer security and lifestyle options. These are important factors in a successful development, as was seen in both Al di La and St Martins, which despite the recession, were completely sold out. How do you ensure that RE/MAX is always the first choice for buyers and sellers? We deliver exceptional service and our agents focus on building relationships with clients, as we understand that they are the cornerstones of our business. We also make the marketing of our brand a priority. www.remaxind.co.za In 2003, Kobie Potgieter acquired the RE/MAX Independent franchise, which consisted of one office with five agents. This has now grown to two offices with 41 agents. In 2008, Kobie was named as one of the top-five most influential SA businesswomen of the year. In 2010, she was among RE/MAX International’s top-10 commissionearning agents worldwide. In 2009/10, she won Top Agent in Eastern Cape for both units and value. In 2011, she placed first in the Greyvensteins Property Achievers Awards. In 2011, she placed third for individual commission earned in RE/MAX International. Kobie achieved the SA Hall of Fame Lifetime award in both 2011 and 2012. 103 eastern cape business 2013 OVERVIEW Water Eastern Cape municipalities are improving their Blue Drop scores. Sector Highlights A major new dam is planned at Umzimvubu. • Four Buffalo City entities earned Blue Drops in 2012. • Amatole Water manages the country’s biggest reverse-osmosis desalination plant. major companies • Amatola Water • Nelson Mandela Bay Metro Water reverse-osmosis plant. Amatole Water will be able to deliver 1 800 cubic metres of water The Eastern Cape will soon boast South Africa’s largest every day to the Ndlambe reverse-osmosis desalination plant. Municipality. Water services are prodetailed feasibility study on a major dam project got vided to the citizens of the underway in January 2012. The eastern parts of the Eastern Eastern Cape by 17 water serCape are well-watered and fertile, but there are relatively vice authorities that oversee few dams or irrigation schemes, both vital components of 163 drinking-water supply commercial agriculture. systems. Muncipalities and the The proposed Umzimvubu Dam and associated irrigation Amatola Water Board are the and hydroelectric power projects would cost about R20-billion primary providers of services. to bring to fruition, and create about 2 000 jobs. The dam is The Department of Water expected to yield about 180 million cubic metres of water every Affairs 2012 Blue Drop survey year, with a storage capacity of 600 million cubic metres. awarded Blue Drop status to The provincial government has established a Provincial Water Buffalo City entities for the Forum to deal with matters relating to drought management, third year in succession: water supply and sanitation. Pilot projects are to be run in the Buffalo City Metro and Amalocal municipalities of Ndlambe and Kouga and the OR Tambo tola Water, Umzonyana Water Treatment Works (supplies District Municipality. Eastern Cape planners need to be innovative in their search for East London, Mdantsane and new water sources. When renovations are complete, the desalina- Duncan Village), King Wil tion plant at Bushman’s River Mouth will be South Africa’s biggest liam’s Town Treatment Works, A EASTERN CAPE business 2013 104 photo: lance cheung/flickr OVERVIEW Sector Agriculture Domestic, urban Domestic, rural Mining Industry SOURCE: DEPARTMENT OF WATER AFFAIRS % 62 23 4 2.5 10 Dam Umtata Dam Lubisi Dam Ncora Dam Kouga Dam Xonxa Dam River Mtata River Indwe River Tsomo River Kouga River White Kei River Full storage capacity in million cubic metres 248.4 180.9 158.1 147.3 126.0 115.9 Darlington Dam Sundays River Water use in South Africa. Laing and Nahoon Treatment Works. The overall metro scores saw Buffalo City placed first in the province with 92.5%, and Nelson Mandela Bay Metropolitan Municipality second with 90.4%. Both metros received scores in the ‘excellent’ category. The Amatola Water Board, responsible for the greater East London area and beyond, is making plans to ensure water supplies for the next 25 years. Dams and reservoirs are going up and a management plan put in place to warn of potential crises and to reduce leakages. Amatola Water supplies water to an area of nearly 50 000 square kilometres, encompassing the district municipalities of Chris Hani and Amathole, together with portions of other municipal areas. Backlogs in rural areas and smaller municipalities are still prevalent, and the water authority is playing a key role in reducing and eradicating these inequalities. Local government officials are considering building a desalination plant in Port Elizabeth to cope with Selected Eastern Cape dams. SOURCE: DEPARTMENT OF WATER AFFAIRS future stressful times, and to cater for a growing city and its demands. The Nelson Mandela Bay metropole currently gets its water from 10 dams, six of which are owned by the municipality. The Churchill and Impofu dams supply half the total supply, with the latter dam having a full storage capacity of 105 million cubic metres. The municipality maintains about 3 000km of reticulation water mains and about 650km of bulk-water pipelines. Nelson Mandela Bay Municipality operates six wastewater-treatment works. The company Hydro-Comp Enterprises is engaged in creating a water-infrastructure management system for the Nelson Mandela Bay metropole. This includes the installation of bulk meters, but mostly involves data capturing and analysis. With sophisticated data analysis, the distribution of water can proceed more efficiently. The complexity of waste management has led the metropolitan authorities to seek practical advice from international partners, such as authorities in the Swedish city of Gothenberg. A new bulk-water pipeline is to be laid between Motherwell and Perseverance to service new townships. Nelson Mandela Bay Metropolitan Municipality’s water in numbers: • 300 000km reticulation sewers • 50 000 manholes • 69 pump stations • 286 000-million-litre dam capacity • Approximately 650km of bulk-water pipelines Online resources Blue Drop Awards: www.bluedropawards.org National Department of Water Affairs: www.dwa.gov.za Water Institute of South Africa: www.wisa.org.za Water Research Commission: www.wrc.org.za 105 EASTERN CAPE business 2013 OVERVIEW Energy Large renewable energy projects have been launched in the Eastern Cape. Sector Highlights The Eastern Cape’s industrial development zones aim to become centres of renewable-energy manufacturing. • Metair’s energyefficient street lights are working well in Nelson Mandela Bay. • Watt Energy and Cennergi are working together on a wind farm. major companies Canola seed oil is used to produce biodiesel. E skom is South Africa’s national electricity utility, generating more than 95% of the country’s electricity supply. It supplies 1 400 megawatts of electricity to the Eastern Cape. Estimates are that with developments at the Coega and East London industrial development zones (IDZs), this figure will have to rise to closer to 5 000 megawatts. This increase can only be catered for through increased supply via power lines from Mpumalanga and increasing local generation. If the Umzimvubu Dam is built, then the province will gain a considerable amount of energy from the associated hydroelectric plant. The Eastern Cape has five power stations, but none of them are major power generators. The Port Rex power station in East London is a peak-demand facility that can generate 171MW. The largest of the province’s four hydropower stations, Colley Wobbles in the Mbashe catchment area, has a maximum capacity of 42MW, but it has been ineffective due to rising silt levels. Lumotech, the Uitenhage-based lighting company in the Metair Group, is successfully testing energy-efficient street lighting in the Nelson Mandela Bay metropole. EASTERN CAPE business 2013 • Eskom • Suzlon Energy • Watt Energy • Cennergi • Electrawinds • Ikhwezi Solar • Central Energy Fund • Industrial Development Corporation Renewable energy National government’s renewable energy programme is gaining momentum with the recent announcement of preferred bidders to supply power to the national grid. The amount of money that will be invested in the Eastern Cape from this programme is R8.6-billion. The coastal province has a number of natural advantages: a long coastline with strong wave power, lots …Continued on pg 108 106 photo: matt lavin/flickr The IDC is the biggest supporter of tenders awarded in the Department of Energy’s Renewable Energy Independent Power Producers (REIPP) programme. Over the next five years, the IDC will make available R25 billion to fund projects related to green industries. The IDC is identifying and providing funding for many projects In the first round of REIPP tenders, the IDC participated in twelve successful bids, and seven more in the second round. The green energy bids include wind power, concentrated solar power, photovoltaic and small hydro projects. that will contribute to building South Africa’s industrial capacity and creating jobs. Visit www.idc.co.za to find out more. The power behind renewable energy Chillibush8053IDC Telephone: 086 069 3888 Email: email@example.com To apply online for funding of R1 million or more go to www.idc.co.za OVERVIEW of sunlight and consistent winds off the sea. Among the targets for the province is establishing the region’s two industrial development zones at East London and Coega as centres of manufacturing for the sector. The investment of R33-million into Matla Solar (waterheater manufacturers) at the East London Industrial Development Zone (ELIDZ) is an example of this. In 2011, Ikhwezi Solar opened its R10-million facility for making thermal flat-plates in East London. The company also wants to open a photovoltaic park in the ELIDZ, in partnership with German company Gehrlicher. Local firm Black Lite Energy is proposing to team up with another German concern, Manz AG, to build CIGS thinfilm solar panels in the ELIDZ. The proposal is backed by the Industrial Develop ment Corporation (IDC) and the National Empowerment Fund (NEF). The Advanced Mechatronic Technology Centre (AMTC) works together with the Volkswagen Group/DAAD International Chair in the School of Engineering at Nelson Mandela Metropolitan University. The Nelson Mandela Bay Metro intends installing 100 000 solar water heaters in houses by 2015. The programme will take advantage of the Eskom subsidy system and is being run in partnership with the Central Energy Fund (CEF). Wind In June 2010, the R1.2-billion Coega wind farm was officially launched. Twenty-five turbines erected by Belgian company Electrawinds will each produce 2.3 megawatts. The formation of a new company in March 2012 could mark a turning point in the history of renewable energy in South Africa, in that both companies are leaders in their sectors. Cennergi is a partnership between resources company Exxaro and Tata Power, and has identified wind and solar projects at four sites in South Africa. Its stated goal is to be the number-one ‘cleaner energy’ independent power producer in Southern Africa. In the Eastern Cape, Cennergi has interest in two winds farms, one of which is east of Somerset East in the interior and the other at Tsitsikamma on the coast. The latter project is run in partnership with Port Elizabeth-based company Watt Energy. Other shareholders are the Tsitsikamma Development Trust, the Danish Industrialisation Fund for Developing Countries and Danish power company European Energy. Watt Energy also runs a Centre of Excellence in Energy at the site. Plans to build biomass and solar demonstration plants are being developed. Indian company Suzlon Energy has signed an agreement with African Clean Energy Developments to develop a wind farm in Cookhouse, just north of Port Elizabeth. Bioethanol The National Department of Trade and Industry (dti) wants 5 000 hectares of land in the eastern part of the province to be planted with canola in anticipation of the building of a 400 000-ton biodiesel refinery. The hope is that exports to Europe will earn R3.5-billion annually. The CEF, the IDC and Sugar Beet SA are collaborating on a big project in the Cradock area to produce fuel-grade ethanol. PGBI Engineers and Constructors were involved in the feasibility study for this project, which is still in early stages of development. Online resources African Biofuels: www.africanbiofuels.co.za Eskom: www.eskom.co.za InnoVenton: www.nmmu.ac.za National Department of Energy: www.energy.gov.za Southern African Biofuels Association: www.saba.za.org EASTERN CAPE business 2013 108 focus Community wind farm provides power for the future The Tsitsikamma Community Wind Farm is uplifting its surrounding communities using the Eastern Cape’s vast wind resource to develop alternative energy. I n May 2012, the South African government announced the project companies that were selected as preferred bidders during the second bidding window for the Department of Energy’s Renewable Energy Independent Power Producer Programme (REIPPP). Cennergi, the South African cleaner energy company launched in 2012 by Exxaro and Tata Power, received preferred-bidder status for its Tsitsikamma Community Wind Farm – one of only 19 projects that got the nod. The Tsitsikamma Community Wind Farm Project is a 95MW wind farm consisting of 31x3MW turbines on the AmaMfengu community land in the Eastern Cape. The project has 56% South African participation and 29% black shareholding. The project company comprises Cennergi, Watt Energy, a Port Elizabeth-based majority black-owned renewable energy developer, and the Tsitsikamma Development Trust. The Tsitsikamma Development Trust was established in the early 1990s to manage the return of the land that was forcibly removed from the Mfengu community in 1977. The Wittekleibosch area, which forms the boundary of the wind farm, is one of the areas in the Tsitsikamma region that belongs to the Mfengu community. Cennergi and Watt Energy set out to develop a project that was community-focused so as to establish the potential of independent power producers in community development. The company used relevant European references through its relationship with the Danish government and it has been involved in the early industry forums that led to the formation of the current South African regulatory regime and the Department of Energy’s procurement programme. eastern cape business 2013 Cennergi and Watt Energy have committed to spending 1.5% of the project’s revenue on socioeconomic development and 0.6% on enterprise development. The proposed economic development initiatives are not random, but are the Thomas Garner, result of the feedback CEO of Cennergi that came from a socioeconomic study of the area conducted in 2011. This study included discussions with local community leaders, municipal councillors, educators, local residents and private enterprises in the area. The community-focused initiatives of the project have placed a strong emphasis on education and capacity-building within the community. The following is a list of the some of the initiatives that have been implemeted by either the developers or their partners: • Installation of electricity to the AmaMfengu Primary School in Clarkson • Donation of R90 000 for the building of ablution facilities at the Clarkson Primary School • Sponsoring of a bus to Clarkson and AmaMfengu • Sponsoring of a road-maintenance programme • Sponsoring the paramedic training courses • Sponsoring the building of community hall in Wittekleibosch www.cennergi.com 110 OVERVIEW Banking and financial services The Eastern Cape’s financial institutions support investment in economic growth. T he Eastern Cape is well served by financial institutions, as all the major banks and insurers have a strong presence in the province. The four biggest banks are facing strong competition from African Bank Investment Limited (Abil) and Capitec Bank. Abil reported that its lending to households earning less than R15 000 per month increased in the fourth quarter of 2011 by 89%. Half-year revenue increased by nearly R2-billion over the previous year to R9.3-billion. In the context of the closure of several of the bigger banks’ rural branches, it is significant that Capitec Bank has a presence in small towns. The bank opened its 500th branch in the country in January 2012. This is still some way short of giants such as Absa, which has about 800 branches, but the bank plans to open a further 55 new branches in the 2012/13 period. Capitec Bank’s client base reached 3.7 million by the end of February 2012, with 877 000 customers having joined the bank in the preceding financial year. The bank told Bloomberg in December 2011 that it was employing about 200 employees every month to service demand. Sector Highlights Absa and BKB have joined forces to provide new financial products to farmers. • The new Postbank will have a wide reach into rural areas. • FNB has opened a R30million regional office. major companies photo: Philippe Put/flickr • Absa • Nedbank • Standard Bank • FNB • Capitec Bank • African Bank EASTERN CAPE business 2013 112 OVERVIEW Absa Business Bank (ABB) signed an innovative agreement with agricultural company BKB in 2011, whereby farmers will be able to borrow money against their produce. With ABB’s experience in the agricultural field, and BKB’s access to 19 000 primary producers, the agreement is likely to unlock a considerable amount of investment in the agricultural and agri-processing sector. BKB has a national presence, but its headquarters are in Port Elizabeth. It is active in many spheres and has a strong wool and mohair profile. Absa has a strong focus on small business development. Absa Business Banking has developed a database where potential service or good suppliers can be identified and verified. The Procurement Portal will include details about black empowerment status and tax clearance. Absa also supplies short-term financing to SMME vendors. Nedbank has entered into a partnership with the Passenger Rail Agency of South Africa (Prasa) to open banks on railway stations. These branches will offer funeral cover, personal loans, M-Pesa (for money transfers) and the Ke Yona transactional account. The Nedbank Business Banking division is part of a decentralised system that aims to gain insight into local conditions. The Small Business and Corporate Banking units focus on specific business types, while the Nedbank Business Banking division deals with mediumsized businesses. FNB’s new regional office, FNB Newton Place in Port Elizabeth, houses all of the FirstRand group’s offices, such as Rand Merchant Bank, FNB Private Clients and FNB Online. The bank’s total investment in the region is about R160-million. The bank intends putting about R2-billion into its operations country-wide in the 2012/13 period. All of the country’s major financial consulting firms can be found in the province’s cities but PG Konsult is also present in regional centres such as Middelburg and Aliwal North. From the Karoo Midlands towns of Graaff-Reinet, Cradock, Adelaide and Somerset East, the firm of Gerber, Botha & Gowar dispenses financial advice across large parts of central South Africa. New banks The Dedicated Banks Bill has been under discussion since 2004, and is intended to loosen entry requirements for new entrants into the banking sector. A special task team was appointed in mid-2011 to fast-track the process to get Postbank up to the requirements for a full banking licence. By the middle of 2012, national government was indicating that the licence would probably become a reality in 2013. Postbank, with 1.4 million existing clients, already has a huge footprint because of the large number of Post Office branches. This is relevant in a province like the Eastern Cape, where many citizens live in rural areas a long way away from big centres. As of 2012, South Africa had only two registered co-operative banks in terms of the new Co-operative Banks Act: Ditsobotla and OSK Co-operative Bank. There are 15 other banks that have the necessary R1-million in capital and 200 members to qualify, so several new banks may be launched soon. However, the country’s Deputy Finance Minister Nhlanhla Nene wants fewer, but bigger, co-operative banks. The Treasury is offering co-operative institutions a special financial co-operative retail savings bond. Online resources Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Insurance South Africa: www.insurance.za.org Office of the Ombudsman for Banking Services: www.obssa.co.za Public Investment Corporation: www.pic.gov.za South African Institute for Chartered Accountants: www.saica.co.za South African Reserve Bank: www.resbank.co.za 113 EASTERN CAPE business 2013 Absa Business Bank understands business in the Eastern and Southern Cape Supporting development in KZN Absa Bank Ltd. Reg No Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP The Absa Group (“Absa”) is listed on the JSE Limited and is one of South Africa’s largest financial services groups, offering a complete range of banking, bancassurance and wealth management products and services. Absa’s business is conducted primarily in South Africa and on the African continent, where it has equity holdings in banks in Mozambique and Tanzania. Absa is a member of Barclays Bank PLC, which holds a stake of 56,6% in the Group. Barclays is an international financial services group, engaged in retail and commercial banking, credit card issuing, investment banking, wealth management and investment management services. Absa Business Bank The South African economy and the sustained prosperity of its people depend on the creation of new wealth and the growth of sustainable businesses in the commercial sector. Absa Business Bank is well positioned to deliver superior products and services to this important sector of the market. The combined strengths of Absa and Barclays allow Absa Business Bank to offer depth of expertise and skills as well as bestof-breed products and global solutions required to meet our clients’ specific business needs. In addition to providing industry-specific banking solutions, Absa Business Bank has a range of specialised financial products such as working capital solutions and sector-specific privateequity funding products designed around the needs of business clients, looking to expand their businesses. The Bank has an extensive regional network, servicing clients through a Relationship Executive, supported by a team of Industry Specialists, Operational Bankers and Client Service Consultants. Absa Business Bank believes in being more than just a financial partner. Being a true partner is about adding value, it is about industry support by providing a collaborative platform for networking and growth across all sectors and industries in the South African economy. Absa is not only ideally positioned as a financial partner in the corporate and business space, but actively supports industry events and initiatives. A wealth of opportunities exists for the creation and development of businesses and Absa Business Bank has been involved in a range of regional initiatives. Absa has long-standing relationships with the public and private sector in the Eastern and Southern Cape. Given our skills and expertise, we are able customise financial solutions to meet specific requirements, be it local business banking or specialised financial requirements across the African continent or with the rest of the world. In addition to supporting existing and established businesses, Absa also partners with the Nelson Mandela Bay Business Chamber in major projects like the annual banquet , task teams focusing on various strategic areas as well as relationship building and networking opportunities where business leader engage with other business partners. The Regional Community Investment consultant is the Chairperson of the CSI task team for the Business Chamber. In addition to efforts undertaken to promote entrepreneurship and assist businesses of all types, the Group also has an extensive social investment programme focusing primarily on job creation for marginalised communities, primary and secondary school education and initiatives around HIV/AIDS. Some of the projects as follow: Triple Trust Organization in association with Department of Social Development. They encourage the unemployed to recycle and make profit out of the material sourced. The profit made from the sales of the recycled items helps restore dignity for the families involved. Employees also get involved with community projects through volunteering and contributing towards these projects. The aim is to encourage people to make a positive impact on their local community. Absa employees collected approximately 1000 food tins to be distributed to people in need. The third perspective is a portfolio of products aimed at providing very specific financial solutions. These products could range from standard transactional products, to payroll solutions to highly specialised products designed for a specific sector or business need, like cash management solutions in the Franchising sector. Interaction with customers happens through business centres which are geographically located in the Regional Centre for Absa Business Bank. Absa Business Bank and Enterprise Banking Eastern and Southern Cape; Mid-Corporate and Commercial divisions Corporate Place, 72 Ring Road, Greenacres, 6045 Tel 041 396 5500 OVERVIEW Development finance and SMME support Entrepreneurs have many support options in the Eastern Cape. Sector Highlights The National Empowerment Fund has opened an office in East London. • Two units of the Eastern Cape Development Corporation promote small business. • Seda runs an ICT incubator in the province. major companies A number of agencies in the province offer development finance to promising small, medium and micro enterprises. Fund • Industrial Development he opening of a new East London office of the National Corporation Empowerment Fund (NEF) in January 2012 was a significant • Eastern Cape event in the development finance and small, medium and Development micro enterprise (SMME) environment of the Eastern Cape. Corporation The promotion of SMMEs is a local, provincial and national priority, and several agencies exist to support small businesses and entrepreneurs who want to start a new venture. • Nkonkobe Development The NEF provides financial support to ventures over a broad Agency: the revival of the range (R250 000 to R75-million) and across many sectors. In Kat River Citrus Project the Eastern Cape, it is supporting companies in solar energy, Other support initiatives in restaurant franchises and transport, and played a role in the the Eastern Cape include: success of Just On Cosmetics, a local brand that has gone • Vektronix, East London television manufacturer: national. An amount of R44-million has been allocated to R64-million loan for Velevutha Agricultural Consultancy to supply chickens to a subsidiary of Sovereign Foods. expansion The Industrial Development Corporation (IDC) is very active in • Auspex Properties, Port the Eastern Cape. Several development agencies receive support: Elizabeth: R160-million • Nelson Mandela Bay Development Agency: strategic spatial loan for black-owned 170room hotel, operated by implementation framework • Blue Crane Development Agency: new airport at Somerset Radisson Blu East and an ultra-light aircraft project • Hope Factory • Seda NMB ICT Incubator • National Empowerment T EASTERN CAPE business 2013 116 photo: the hope factory/chris kirchoff OVERVIEW • Bio-ethanol plant, Cradock: pre-implementation phase • Blueberry farm, Stutterheim, R45-million investment At national level, the IDC has teamed up with MercedesBenz Financial Services to facilitate better access to finance facilities for black SMMEs in the transport business. Nearly R100-million in loans was made available to SMMEs in the 2010/11 financial year by the Eastern Cape Development Corporation (ECDC). A further sum of R8.2-million was made available to co-operatives. Two of the ECDC’s seven business units are devoted to small business: Development Finance and Enterprise Development. The ECDC has several financial products tailored to meet the various needs of business, entrepreneurs and investors, ranging from shortterm to long-term finance and small and micro loans. Imvaba Eastern Cape Provincial Co-operative Development Fund (Imvaba ECPCDF) supports the establishment and growth of co-operatives. Sectors such as manufac turing and services are targeted as those showing the greatest potential for growth and for job creation. A low uptake from this fund has led to a decision to devote some funding to training of cooperative members in how to apply for funding. The Eastern Cape Rural Finance Corporation (ECRFC) has a dual mandate: to financially support agricultural enterprises and to encourage private sector investment in rural areas. A newsletter supporting emerging businesses, Khula Nathi, is a joint venture between the ECDC and Avusa’s Eastern Cape newspapers, The Herald and The Daily Dispatch. The Small Enterprise Development Agency (Seda) is an agency of the National Department of Trade and Industry, and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It often helps small businesses draft applications for loan finance. Seda’s main provincial office is East London, with nine other offices located throughout the province. Several of Seda’s technology incubators are in the Eastern Cape. Port Elizabeth is the head office of the Chemin incubator, which supports SMMEs in the downstream chemical sector. Furntech (furniture incubator) has a branch in Mthatha and there are construction incubators in Mthatha and Port Elizabeth. The Seda Nelson Mandela Bay ICT Incubator promotes entrepreneurship in the ICT sector. It is supporting several small companies in subsectors such as hardware, software, graphics and web and systems analysis. The Nelson Mandela Bay Business Chamber has a section devoted to SME support on its website, and offers mentorships to start-up business people. The Border-Kei Business Chamber is similarly supportive. The Hope Factory is an initiative of the South African Institute of Chartered Accountants (SAICA), which gives support to small business. More than 250 companies contribute to the programme that has supported more than 1 000 people over 11 years. In 2012, a Hope Hub was launched in Port Elizabeth, which will allow start-up businesses access to office space and computers. Online resources Border-Kei Business Chamber: www.bkcob.co.za Business Partners Limited: www.businesspartners.co.za Development Bank of Southern Africa: www.dbsa.org Eastern Cape Development Corporation: www.ecdc.co.za Hope Factory: www.thehopefactory.co.za Industrial Development Corporation: www.idc.co.za National Empowerment Fund: www.nefcorp.co.za Nelson Mandela Bay Business Chamber: www.nmbbusinesschamber.co.za Seda NMB ICT Incubator: www.snmbicti.co.za Small Enterprise Development Agency: www.seda.org.za 117 EASTERN CAPE business 2013 focus Funding products and services As the home of hope for black entrepreneurs, the National Empowerment Fund (NEF) has approved over R3.7-billion (March 2012), a milestone which has supported more than 29 000 jobs countrywide. Its non-financial support services include an online business-planning solution and dedicated mentorship support. regulations Established by the National Empowerment • return on investment Fund Act No 105 of 1998, the NEF is a • the possibility of co-funding with another driver and a thought-leader in promoting and public- or private-sector institution facilitating black economic participation through the provision of financial and non- Contact details for the NEF financial support to black-empowered businesses as well as by promoting a culture of Head Office savings and investment among black people. Gauteng Province Physical address: West Block, 187 Rivonia Road, Morningside 2057 Funding from Postal address: PO Box 31, Melrose Arch, R250 000 to R75-million Melrose North 2076 The NEF is an agency of the dti mandated to Tel: +27 11 305 8000 Fax: +27 11 305 8001 promote black economic participation. Its Call centre: 086 184 3633 / 0861 (THE NEF) funding mandate is guided by the Codes of Email: firstname.lastname@example.org (Funding), Good Practice on Broad-Based Black Economic email@example.com (General Enquiries) Empowerment, as well as by the Industrial Policy Action Plan. The NEF provides business loans Eastern Cape Province from R250 000 to R75-million across a range Physical address: 7b Derby Road, of sectors, for start-up, expansion and equity Berea, East London 5241 acquisition purposes. A key requirement for Tel: 0861 NEF ECP (0861 633 327) NEF funding is for the investees to be directly Fax: 0861 ECP NEF (0861 327 633) involved in the operations of their businesses. Email: firstname.lastname@example.org Mandate • compliance with all the relevant laws and Funding criteria Each application for funding is assessed in terms of the following criteria: • minimum percentage of black ownership or interest • black women empowerment • black managerial and operational involvement • commercial viability of the business • specific product criteria • job creation • geographic location of the business (rural/ urban/disadvantaged areas) • community involvement eastern cape business 2013 Free State Province Physical address: 34 Fountain Towers, Corner Zastron and Markgraaf Street, Westdene, Bloemfontein Tel: 0861 NEF FSP (0861 633 377) Fax: 0861 FSP NEF (0861 377 633) Email: email@example.com KwaZulu-Natal Province Physical address: Smart X-Change Building, 5 Walnut Road, Durban 4001 Tel: 0861 NEF KZN (0861 633 596) Fax: 0861 KZN NEF (0861 596 633) Email: firstname.lastname@example.org 118 focus Limpopo Province Physical address: Suite 8, Biccard Park, 43 Biccard Street, Polokwane 0699 Tel: 0861 NEF LIM (0861 633 546) Fax: 0861 LIM NEF (0861 546 633) Email: email@example.com Mpumalanga Province Physical address: Trust Building, 16 Brander Street, Nelspruit 1200 Tel: 0861 NEF MPU (0861 633 678) Product/Fund Entrepreneurship Finance Procurement Finance Franchise Finance Acquisition Finance Expansion Capital *Project Finance New Venture Finance Description For starting a new business For tenders and contracts For pre-approved franchise licenses For black investors to acquire a stake in medium to large companies For growing an existing business Participation in greenfield projects Listing on the JSE or its junior Altx markets Fax: 0861 MPU NEF (0861 678 633) Email: firstname.lastname@example.org Western Cape Province Physical address: Suite 2818, 28th Floor, Absa Centre, 2 Riebeek Street, Cape Town 8001 Tel: 0861 NEF WCP (0861 633 927) Fax: 0861 WCP NEF (0861 927 633) Email: email@example.com Funding amounts R250 000 – R10-million R250 000 – R10-million R250 000 – R10-million R2-million – R75-million R250 000 – R75-million R5-million – R75-million R2-million – R75-million The NEF has BEE Facilitator status**, which can help black shareholders Liquidity and Warehousing and companies wishing to sell a stake while keeping the shareholding black *Rural and Community Development Fund For agri-processing, tourism, mining and beneficiation, manufacturing, etc Venture-capital fund investing in early stage projects for the purpose of developing strategic industrial capacity in poverty nodes, in renewable energy, outsourcing, tourism, manufacturing, mining business process and mineral beneficiation, etc R2-million – R75-million R1-million – R50-million *Strategic Projects Fund R1-million – R75-million On average, the NEF’s business loans are repayable over four to seven years, and up to 10 years where marked with an asterisk (*). **In 2008 the NEF was awarded BEE Facilitator status by the dti in terms of the provisions of statement 100 of the Codes of Good Practice on B-BBEE. The NEF’s BEE Facilitator status means that equity investments held by the NEF in any company are automatically regarded as 100% black-owned, including 40% owned by women and 10% by black designated groups. The equity stakes would also be regarded as unencumbered, resulting in the company receiving a perfect ownership score in respect of the stakes held by the NEF. 119 eastern cape business 2013 PROFILE Seda Nelson Mandela Bay ICT Incubator The Seda Nelson Mandela Bay ICT incubator is the ‘go-to’ organisation for IT entrepreneurs and SMMEs in need of assistance and support. The Seda Nelson Mandela Bay ICT Incubator is an independent, non-profit company, promoting the development of the knowledge economy in the Eastern Cape. • Access to markets and marketing networks • Research and development • Facilitate access to funding • Human resources • Project management • Legal services • Quality management Key facts and figures Sipelo Lupondwana, Centre Manager Year established: 2007 Affiliated institutions: Seda and Nelson Mandela Metropolitan Municipality Turnover and/or budget: R3.5-million Mission • To establish, sup- port and grow small business in the BEE status ICT sector • To provide for effective and efficient value- % black directors: 100% adding services % black staff: 100% • To create an environment where highly motivated and innovative individuals thrive Description of activities • Assistance to SMMEs with business support • Office support services to assist entrepreneurs with daily operations, including admin and clerical services • Facilities and business infrastructure designed to address entrepreneurial needs to build their business acumen Contact details The Seda NMB ICT Incubator offers: Key contact people: Ellen Fischat, Enterprise Development Manager Nosipho Mkosana, Business Development Officer Sipelo Lupondwana, Centre Manager Tel: +27 41 409 8600 Fax: +27 41 484 3726 Email: firstname.lastname@example.org Physical address: 3rd Floor, 790 Govan Mbeki Avenue, Port Elizabeth 6000 Postal address: PO Box 3104, North End, Port Elizabeth 3104 Website: www.snii.co.za Main services, programmes, projects and initiatives • Mentorship and coaching • Financial systems management • Workshops and training EASTERN CAPE business 2013 120 special feature Training to bridge the skills gap Several Eastern Cape institutions are accelerating skills training in pursuit of the National Skills Development Strategy. A total of 81.6% of the province’s learners attend ‘no-fee’ schools. T he Eastern Cape has a wide range of educa- has satellite facilities at a few locations in tional institutions, but the strategic focus of the province. the public and private sector is increasingly Three of the province’s universities are commoving towards skills training that is relevant prehensive universities. The Southern African Regional Universities Association defines to the needs of the economy. Among the goals of the National Skills Develop- comprehensive universities as being ‘midway ment Strategy are to train 10 000 artisans per year between a traditional university, offering and upgrade the National Certificate (Vocational) formative degrees, and a university of techto the extent that it comes to be accepted by all nology, which is more focused on vocational employers as a valued and accepted certificate. and technical programmes’. Nelson Mandela Sector Education and Training Authorities Metropolitan University (NMMU), Walter Sisulu (SETAs) form an important part of South Africa’s University (WSU) and Unisa all offer diplomas masterplan to tackle skills development. These and degrees with a mix of vocational and bodies collect levies from businesses within a academic programmes. certain sector and use those monies to organise NMMU has six campuses (including one in and regulate relevant training. Each SETA is George) and seven faculties. Its broad mix of responsible for a Sector Skills Plan. qualifications is well illustrated in the faculThe Eastern Cape is home to four universi- ties of Engineering, the Built Environment and ties, and the University of South Africa (Unisa) Information Technology. photo: anglo american 121 EASTERN CAPE business 2013 special feature WSU has four faculties: • Education • Health Sciences • Business, Management Sciences and Law • Science, Engineering and Technology Fort Hare University has five faculties, 10 schools and, at its East London campus, the Fort Hare Institute of Social and Economic Research (FHISER). Rhodes University in Grahamstown has only 6 000 students, the majority of whom live in residences, but its academic and research staff of 320 has more than 265 masters and doctoral degrees between them. About 25% of the students are post-graduates. There are more than 30 institutes and units at Rhodes, including the Institute for Environmental Biotechnology and the Institute for Social and Economic Research (ISER). The university’s journalism school is a leader in its field. Many university research programmes are designed to solve the problems of the province. Land restitution is the subject of the work of the Land, Livelihoods and Rural Development Programme of the FHISER, for example. Lovedale Public FET College in Alice. The agricultural school in Cradock, Marlow, not only has a deservedly high reputation for farm education, but consistently turns out one of the country’s best schoolboy rugby teams, Schools despite being a relatively small school. A rare Olympic gold medal for rowing for South The Fort Beaufort school that helped nurAfrica in 2012 cast some reflected glory on St ture John Tengo Jabavu, Nelson Mandela and Andrew’s College in Grahamstown in 2012. Robert Sobukwe was the happy recipient of a This private school of about 450 learners has a R3-million cheque in 2011 from PetroSA. Healdstrong rowing programme, and helped develop town Comprehensive, like many centres of black the skills of Andrew Thompson, one of the four educational excellence, suffered severely during South Africans who brought home gold in the the apartheid era. London Olympics. Institutions like Lovedale Public FET College Although St Andrew’s is a boys’ school, aca- and St John’s College in Mthatha also set high demic classes in the senior grades are shared with standards for their learners. These schools are the girls from the Diocesan School for Girls (DSG). focus of the Historic Schools Restoration Project. Grahamstown is something of an educational One of the targeted schools – St Matthew’s in centre, with Kingswood College, Graeme Col- Keiskammahoek – achieved a 96% matriculation lege and Rhodes University all located in ‘The pass rate in 2007, with five A-symbols recorded City of Saints’, a reference to the large number for mathematics. Steel manufacturer ArcelorMittal is a partner of churches. The province is home to a number of tradi- in the construction of a new primary school in tional boys’ schools, including Queen’s College Mthatha. The R47-million Mandela Park Primary (Queenstown), Dale College (King William’s Town), School will be built using alternative building Muir College (Uitenhage) and Grey High School methods, thereby reducing costs and reducing (Port Elizabeth). environmental impact. EASTERN CAPE business 2013 122 photo: Rod bally/panoramio special feature The backlogs facing authorities in the Eastern Cape are massive, but progress is being made. One indicator can be found in the statistic that 119 new schools were completed in 2010 as part of multi-year projects. These new schools replaced mud schools. Another 49 schools were handed over to building contractors in January 2012. A total of 81.6% of the province’s school pupils attend no-fee schools, which helps to spread educational opportunity but places a burden on public finances. The province’s school-nutrition programme feeds 1.6 million children, and the transport programme delivers approximately 56 461 children to 614 schools. Colleges The Eastern Cape has eight further education and training (FET) colleges: Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College, most of which have more than one campus. As the leading college in the important centre of Mthatha, the King Sabata Dalinyebo FET College offers business and engineering studies among its formal programmes, and shorter courses in bricklaying and computer studies. The Eastcape Midlands FET College has five sites: in Graaff-Reinet and Grahamstown and three in Uitenhage. In Uitenhage, students can study Business Studies, Electrical Engineering, ICT and Computer Science and Mechanical Engineering. The other campuses specialise in Business Studies. Lovedale Public FET College serves the community through three campuses at King William’s Town, Alice (120km from East London) and Zwelitsha, near King William’s Town. The programmes at each campus reflect the economic priorities of that region. In Alice, the focus is on agriculture, King William’s Town offers business diplomas, while engineering is available to students at the Zwelitsha facility. Buffalo City FET College, with two large campuses in East London and Mdantsane, specialises in Business and Engineering for full-time study, Artisan training is on offer to bridge the skills gap in the province. but offers a wide range of part-time courses as well. The college’s School of Occupational Training is located at St Marks Road. There are 20 000 students enrolled at this level in the province. FET colleges provide skills training to equip students for the workplace. Courses offered range from engineering, business and marketing studies to haircare, bricklaying and welding. The provincial government has committed a sum of R1.5-billion over five years to aligning FET colleges more closely with the needs of the local economy, using the institution of ‘learnerships’ to bridge the divide between education and employment. The Eastern Cape has 295 centres for adult basic education and training (Abet), at which approximately 43 724 adult students attend classes. photo: F0t0Synth/flickr SETAs The Premier of the Eastern Cape oversees the Eastern Cape Provincial Skills Development Forum. Memorandums of understanding (MoU) EASTERN CAPE business 2013 123 special feature Mercedes-Benz artisan training equips students with relevant automotive knowledge. have been signed with several SETAs to promote skills development in the province. A R20-million MoU with the MerSETA (Manufacturing, Engineering and Related Services) will see learnerships and apprenticeships introduced throughout the province. MerSETA has a big role to play in the Eastern Cape, home to so many of South Africa’s automotive and automotive parts companies. The authority is involved in the National Tooling Initiative and artisan training, especially with regard to creating a skilled workforce for the Coega Industrial Development Zone. MerSETA helped establish the Centre of Excellence for Welding at the Eastcape Midlands FET College in Uitenhage. In the Border-Kei region, another partnership is working on training more welders. The Master Artisan Academy of SA, ESAB, and Industrial Welding Supplies have signed an agreement whereby they will train more qualified welders. A national programme of the Local Government SETA (LGSETA) offers learnerships in auditing to municipal employees. In the OR Tambo District, the LGSETA catered, in 2011/12, for 15 water and waste learnerships, 15 municipal finance certificates and 38 municipal leadership development programmes. Other SETAs active in OR Tambo were the Services SETA (55 ICT certificates, EASTERN CAPE business 2013 74 Office Administration certificates) and the CathsSETA (Culture, Art, Tourism, Hospitality and Sport). CathsSETA has placed students in Bidvest and Tourvest subsidiary companies and sent eight unemployed young people to Johannesburg to attend a Level 5 General Travel course. A Career Expo has been held in conjunction with the KSD FET College and the Masumpa Heritage Hub. Courses with direct relevance to the Eastern Cape such as ‘hunting, trapping and related services’ are offered, as are more widely applicable hospitality courses like Event and Conference Management. Campaigns such as the Shoprite Special Project are able to target particular groups in need of skills development, in this case 1 000 unemployed people. The Wholesale and Retail SETA (W&RSETA) regularly offers courses to levy-paying organisations in company business operations and skills development, and has completed several learnerships for unemployed people, for example, in butchery. ‘Dealing with customers in a retail environment’ is another typical course. Company training With the automotive sector playing such a pivotal role in the provincial economy, it is 124 photo: marcedes-benz special feature no surprise that the leading companies are actively involved in training. Volkswagen has a multi-faceted approach to training, ranging from support for the VWGSA International Chair in Automotive Engineering at the NMMU to a ‘Future Skills Project’, which aims to develop skills in the automotive sector, in partnership with the National Department of Labour, MerSETA, FET colleges and Volkswagen dealerships. The Automotive Chair provides support for the research projects of engineering students, and includes an exchange programme with Germany. A large part of Volkswagen’s training efforts is focused on its five learning academies in Uitenhage. Open to employees and to suppliers, the academies’ programmes are SETA-accredited. Each academy offers a range of courses that can be taken through workshops, exercises, e-learning or on-the-job-training. About 30% of the Volkswagen Community Trust’s annual budget for education is spent on children in the early childhood development stage, through these programmes: • Edu-Peg, Primary School Maths Programme • Maths and Science Programme with NMMU • Innovative Youth Programme with the Eastcape Midlands College • Rally to Read • Computer labs at schools in the Nelson Mandela Metro • Career guidance for matric pupils, with KwaNobuhle Library Career Exhibition • School garden projects • Pre-school education Tyre manufacturer Goodyear has an engineering training facility in Uitenhage, with a focus on the training of instrument technicians. The Border-Kei region receives 45% of the corporate social investment budget of the East London-based Mercedes-Benz South Africa (MBSA). The MBSA Technical Training Centre has been operating in East London since 1981. The Mercedes Trade Test Centre, launched in East London in 2012, will supplement the Technical Training Centre. The R3-million facility is accredited by MerSETA and will cater, in the first phase of its development, for millwrights and electrical trades. Several companies within the tourism sector play a role in training the next generation of chefs and hotel managers. Premier Hotels does this through its Academic College SA. Professional Cookery and Beverage Management are among the diplomas on offer. The resuscitation of the railway line between East London and Mthatha (Transnet’s Kei Rail project) has resulted in a need for qualified rail personnel, and the Centre for Rail Studies at Walter Sisulu University is offering courses in track mastery, train management and train driving. The Provincial Department of Transport has committed to a ‘skills revolution’ and in 2011, it supported 700 pupils in mathematics and science classes, and a further 83 with bursaries to pursue transport-related courses at tertiary level. In 2010, two bursary-holders qualified as commercial helicopter pilots. Another qualified as a pilot out of 43 Air School, Port Alfred, in 2011. The provincial government is also giving bursaries for training in Air Traffic Navigation Services. Boeing Commercial Aviation has signed a pilot training agreement with 43 Air School. With the Eastern Cape offering ‘clear skies’ and African air travel on the increase, the school aims to qualify 300 pilots a year from its three campuses at Port Alfred, Bhisho and Lanseria in Gauteng. When South Sudan celebrated its independence in 2011, the four helicopter pilots who flew the new national flag above the celebrating crowds were pilots who had done their training at 43 Air School. The Air School had been contracted to provide pilot training for the South Sudan People’s Liberation Army. The South African Maritime Safety Authority (SAMSA) is investigating the feasibility of establishing specialist maritime schools in South Africa’s coastal provinces, including the Eastern Cape. 125 EASTERN CAPE business 2013 PROFILE Lovedale Public FET College Lovedale Public Further Education and Training (FET) College consists of three different campuses located in Alice, Zwelitsha and King William’s Town. The College offers a wide range of vocational education programmes. ° Farm Management ° Civil (water and sanitation, upholstery and plumbing) ° Electrical (housewiring) ° Mechanical (motor and motor body repair/ panelbeating) ° Arts and Crafts (specialising in ceramics) ° Household Management and Crafts (needlework) ° Performing and Fine Arts Description of organisation ° Learnerships and Training Lovedale Public FET College is a public institu- • International Computer Driver’s Licence Programme (ICDL) tion of learning. It offers vocational education programmes that are responsive to the needs of the community. Campuses are located in Contact details Alice, King William’s Town and Zwelitsha. Key contact people: Qualifications offered Nceba Stofile, Chief Executive Officer • National Certificate (Vocational) Geonella Jacobsz, Deputy Director: Planning, Research and Institutional ° Finance, Economics and Accounting ° Information Technology and Computer Development Science Juanita Verster, Deputy Director: Education Services ° Management Jose Daniel, Deputy Director: Administration ° Office Administration Services ° Primary Agriculture ° Civil Engineering and Building Tel: +27 43 604 0700 Construction Fax: +27 43 642 1388 Email: email@example.com or ° Electrical Infrastructure firstname.lastname@example.org ° Engineering and Related Design • National N4 – N6 Certificate (Nated/Report Physical address: Corner Amatola Row and 191) Alexandra Road, King William’s Town 5600 Postal address: Private Bag 7403, ° Introductory N4 Certificate King William’s Town 5600 ° Business Management Website: www.lovedalecollege.co.za ° Financial Management ° Human Resources Management ° Management Assistant EASTERN CAPE business 2013 • Skills Programmes 126 interview Providing muchneeded skills CEO and principal of Lovedale Public FET College Samuel Nceba Stofile explains how the college is meeting the needs of business in the Eastern Cape. How do you analyse the specific needs and skills shortages of these businesses and industries? We analyse trends for specific needs in the region mainly by keeping up to date with socioeconomic indicators, provincial economic development plans, and news in the various media as well as by listening to the needs of partner organisations, government, community members and potential students (our customers). Once we have determined the needs, we try to implement the programmes and/or courses that will address these. For example, we are aware of a local need for people trained in secretarial work, people with financial knowledge and people with farming knowledge in the region. Over the past two years, we have introduced the following Report 191 (NATED) programmes: Management Assistant N4-N6 (secretarial), Financial Management N4-N6 and Farming Management N4-N6. How do you match learners to potential employers? While it is a struggle to find suitable employment for students for their experiential training, we like to set the example by employing a number of these students ourselves, in fields such as finance, human resources, marketing and as secretaries. Furthermore, our student support services will be assisting in seeking potential employment, and SETAs are keen to come on board to help us to find places in the retail businesses in the area. Samuel Nceba Stofile is a Explain your role and involvement working with the district municqualified teacher and has ipalities on various programmes, and your working relationships a Master’s degree in Social with other FETs and universities. Science (Development We have recently assisted in the running of a learnership with Studies) from the Univer- another FET college, and we are in the process of completing an sity of Fort Hare in Alice. He important research project with the University of the Free State. joined Lovedale College as This research project aims to develop a bridging programme for a lecturer in 1994, working NC(V) learners. his way up to his current We are also in the process of establishing a satellite campus in position as chief execu- the Blue Crane region of the Eastern Cape (Somerset East), having tive officer and principal, been requested by the community and the Blue Crane Local which he has held since Municipality to assist them in this manner. February 2003. Samuel Nceba Stofile 127 eastern cape business 2013 PROFILE Buffalo City Public FET College Buffalo City Public FET College offers relevant vocational education for a changing world. Multi-campus college Buffalo City Public FET College (BCC), based in East London, is a multi-campus college that comprises: East London Campus, John Knox Bokwe Campus and St Marks Campus, as well as the King Street Site and an Administration Centre. limited number of colleges in the country. The college also offers Nated programmes in Business Studies and Engineering Studies. BCC’s fundamental The Further Education and Training Colleges strategy is to deliver Act 16 of 2006 provides for the regulation of high-quality, affordfurther education and training college govern- able, accessible and D Singh, Principal ance, funding, and the promotion of quality in market-driven vocational programmes, while focusing on being lecfurther education and training. turer- and student-centric. The college ensures College target market employability of its graduates and ongoing stuThe programmes offered are structured to dent and lecturer development programmes. A accommodate learners who have been suc- number of learnerships are offered in conjunccessful at Grade 9, 10, 11 and 12, school tion with the relevant SETAs, and various skills leavers, out-of-school youth, unemployed programmes and short courses are available. matriculants and public- and private-sector employees, who may be up to 65 years of age. East London Campus: Educational offerings The National Certificate Vocational (NCV) courses are now BCC’s core business. These courses respond more adequately to market and client needs by providing appropriate vocational training and, in addition, allow for a practical component of study to be offered in a real workplace environment or in a simulated workplace environment. Furthermore, the Department of Education offers bursaries to facilitate access for less-fortunate students to these vocational training programmes. School of Business • Finance, economics and accounting • Information technology and computer science • Mechatronics • Office administration • Tourism • Education and development Nated programmes: Business Studies N4-N6 part-time Business management Financial management Human resources management Management assistant Public management National certificate vocational in: Level 2-4 • • • BCC has two niche-market NCV qualifications in • the fields of Mechatronics and Safety in Society. • These courses are the key differentiating and • flagship programmes and are being offered by a EASTERN CAPE business 2013 128 PROFILE King Street Site: • Practical and skills training • Workshops and seminar venues • Hobby courses • Formal and informal courses Residences BCC has three residences: Gloucester House, McJanet House and Belgravia House, which accommodate a total of 250 female and male students. The college prides itself on its studentsupport-services facilities, which include, among others, healthcentre facilities and resource centres at both East London and John Knox Bokwe campuses. Buffalo City Public FET College’s courses allow for a practical component of study. Contact details Key contact people: Kenneth Fassi, Deputy Director: education and training services Tel: +27 43 704 9259 Thami Ngaso, Deputy Director: planning, research and institutional development Tel: +27 43 704 9208 Busi Nongauza, Marketing Manager Tel: +27 43 704 9250 Physical address: Cnr Lukin Road and King Street, Selborne, East London 5200 Postal address: Private Bag 9016, East London 5200 East London Campus Email: email@example.com Tel: +27 43 722 5453 Fax: +27 43 743 0116 John Knox Bokwe Campus Email: firstname.lastname@example.org Tel: +27 43 761 1792 Fax: +27 43 761 1792 St Marks Campus Email: email@example.com Tel: +27 43 743 6554 Fax: +27 43 743 9650 Administration Centre Email: firstname.lastname@example.org Tel: +27 43 704 9289 Fax: +27 43 743 4254 Website: www.bccollege.co.za Simulated work environments are created. John Knox Bokwe Campus: School of Engineering • Civil engineering and building construction • Engineering and related design • Electrical infrastructure construction • Safety in society St Marks Campus: • • • • • • • • • • Nated programmes: Business Studies N4-N6: full-time Business management Financial management Human resources management Management assistant Educare N4-N6: full-time and part-time Electrical engineering Mechanical engineering Civil engineering National certificate vocational in: Level 2-4 Nated programmes: Engineering Studies 129 EASTERN CAPE business 2013 PROFILE Eastcape Midlands FET College The Eastcape Midlands FET College is committed to achieving a pass rate of 100%. The quality of education at Eastcape Midlands College (EMC) is growing. Over the past three years, the pass rate has increased by 9%. The purpose statement of EMC is to equip individual students with knowledge and skills to address the demands of the economy and the needs of the community. assistance to learners by exposure to driving simulators, to assist them to obtain their learner’s and driver’s licences. As a college, EMC is servicing both the rural and urban areas. Along with its urban-based skills development that strengthens the automotive industry, EMC has also acquired a training farm in Uitenhage. The college will be launching this farm early in 2013. Programmes on offer at this farm will help students to become commercial farmers. This will occur over the next 10 years. EMC is committed to a 100% pass rate, by seeing to it that all the students that register, pass. This is achieved by paying attention to quality teaching, learning and assessment. Through quality teaching, the lecturers that are employed need to have knowledge, skills Campuses and attitudes for good teaching. Only qualified EMC has five campuses: lecturers are employed, and those lecturers • Uitenhage: have to go through a strict screening process °° High Street Campus in order to work at EMC. °° Park Avenue Campus °° Charles Goodyear Campus Ultra-modern facilities • Graaff-Reinet Campus EMC is in the final phase of erecting its ultra- • Grahamstown Campus modern state-of-the-art Brickfields Road • EMC Head Office (situated in Uitenhage) Campus in Uitenhage, which will be launched • Brickfields Road Campus, which will be early in 2013. EMC has secured initial funding of launched early in 2013 R25-million from the Eastern Cape Department of Education, and the college has committed Educational offerings R15-million for this project. As a college, EMC All programmes offered have been developed will be opening its doors to the many young to cater for the needs of local commerce and people who have not had an opportunity to industry, and provide opportunities for resistudy. For this, it has received over R100-million dents of the local communities. The college has to equip the youth with much-needed skills. The achieved this in conjunction with the departfacilities include a Career Development Centre ments of Education and Labour. where prospective and current students will receive free career guidance by fully accred- Courses offered ited career-guidance practitioners. Graduate • Business placement in industry is a further service that • Engineering will be offered, and EMC will be going the extra • Art and Social Sciences mile by offering job-readiness workshops and • Occupational Training EASTERN CAPE business 2013 130 PROFILE Programmes offered National Certificate Vocational (NCV) Student support The following support is provided to students: Office Administration, Finance, Economics and Accounting, Tourism, Safety in Society, Pre-entry: Primary Health, Information Technology and • Selection and placement into appropriate Computer Science, Electrical Infrastructure programmes Construction, Engineering and Related Design • Contracting and code of conduct (Fitting and Turning/Automotive Repair • Induction and orientation and Maintenance) Report 191 (N1-N6) National Certificate Orientation, Civil Engineering, Motor Electrical, Motor Mechanic and Diesel Mechanic, Fitting and Machining, Electrical Trade, Welding Trade, Management Assistant, Financial Management, Business Management, Human Resource Management, Mechanical Engineering, Electrical/Electronic Engineering • Academic support: tutorial systems, libraries, performance monitoring and feedback, job readiness programmes, links with industry • Personal support • Life skills, counselling, health and wellness On-course: NSF programmes Junior/Senior Bookkeeping, Junior/Senior Office Administrator, Certified Office Manager, Certified Small Business Financial Manager, Mechatronics, Autotronics, Welding, Automotive Component Manufacturing and Assembly, ICDL, End-user Computing, Early Childhood Development, New Venture Creation, Apprenticeships • Self-employment • Employment • Work placement and tracking Contact details Key contact people: JJ Mbana, Chief Executive Officer R Abdullah, Chief Financial Officer D Kilian, Vice Principal: Planning, Research and Institutional Development N Chagi, Vice Principal: Educational and Training Services Head Office Tel: +27 41 995 2000 Fax: +27 41 995 2008 Email: email@example.com Physical address: cnr Cuyler and Durban streets, Uitenhage Postal address: Private Bag X35, Uitenhage 6230 Graaff-Reinet Campus Tel: +27 49 891 0201 Fax: +27 49 891 0181 Grahamstown Campus Tel: +27 46 636 1575 Fax: +27 46 636 1823 Website: www.emcol.co.za Exit: Financial support for students The Department of Higher Education and Training makes provision for a bursary fund per FET college for each academic year. This financial allocation is based on the final student numbers for the particular academic year. The Department of Higher Education and Training has appointed the National Student Financial Aid Scheme (NSFAS) to administer the process. Eastcape Midlands College provides financial support to students who qualify based on three criteria, namely: financial neediness, academic performance and adherence to 80% class attendance. EMC has been awarded a certificate by NSFAS for the category best-performing college in South Africa for financial aid. 131 EASTERN CAPE business 2013 interview Providing the best for students Sandy Raubenheimer, vice principal in charge of Planning, Research and Institutional Development at Port Elizabeth College, explains the structure of the programmes offered, and highlights the support services that are available to students. Sandy Raubenheimer PE College offers Business, Engineering, and Hospitality and Tourism Studies primarily. Do you feel that this adequately addresses the skills gap in the province? Our courses are designed to address the skills gap. The main responsibility of the FET sector is to equip highly skilled individuals to meet the requirements for sustainable economic growth and development nationally. How do you structure your courses so that both theoretical and practical components are addressed? What facilities do you have to cater for this? The NCV programme is designed to provide integrated practical and theoretical learning in a particular vocational field. The practical component of the study may be offered in the workplace or in a simulated workplace environment. The curriculum framework is 60% practical and 40% theory. In terms of our facilities, Business Studies students use comSandy Raubenheimer puter labs and simulated enterprise workshops for programmes like has 22 years experience Finance, Economics and Accounting, Office Administration, IT and in the FET sector, and Computer Science. qualified as an educator In our Hospitality and Tourism department, we have a travel agency at the University of Fort office (mentored by 1Time Airlines), a commercial kitchen and a small Hare. She was an inte- restaurant that provides students with real working-world experience. gral part of what is now We offer state-of-the-art engineering workshops for relevant engiBuffalo City FET College. neering fields. These workshops also accommodate learners who want She was promoted to head to obtain practical skills like welding, basic hand skills, etc. of department of Business Studies, and specialised in How do you assist students to find employment with local curriculum management businesses once they have completed their studies? and administration. Sandy The college has a website where our graduates can electronically became academic registrar submit their CV. Potential employers are linked to this website in in 2009, and moved to Port order to access students CVs. Another programme is workplaceElizabeth College in 2011 based exposure (WBE), which is workplace experience that takes as vice-principal: Planning, place before a qualification is completed. Research and Institutional Development. www.pecollege.edu.za eastern cape business 2013 132 PROFILE King Sabata Dalindyebo FET College A college that proactively provides students with relevant and much-needed qualifications in order to overcome the adversity they face in their rural environments. King Sabata Dalindyebo FET College is a leading and dynamic further education and training (FET) college that provides programmes and services of high quality and international standards, relevant to the socioeconomic challenges of the region. NCV programmes The National Certificate (Vocational) (NCV) is a new curriculum introduced in 2007 and designed to directly respond to the priority skills demands of the modern economy. The NCV is offered at levels two, three and four of the National Qualifications Framework (NQF). The qualification is designed to provide both the theory and practical experience in a particular vocational field. Nated programmes The college offers a variety of Nated programmes in the Business and Engineering departments, from N4 to N6 (engineering starts at N2). Minimum entry requirements A Matric/NSC/N3 is required for entry into the N4 level. For engineering studies, a student must have passed mathematics as a subject in Matric. An N4 certificate is required for entrance to the N5 Level. A student must pass the compulsory subjects in order to proceed to the next level. Subjects In order to obtain a National Certificate (Vocational), a student is required to take a total of seven subjects. These include the three fundamental subjects and four vocational subjects, of which three are compulsory and one is optional. The college also offers learnerships in partnership with different SETAs and private companies. Compulsory fundamental subjects for all programmes: • English first additional language • Mathematics (engineering studies)/ Mathematical literacy (business and arts and social sciences) • Life orientation • Engineering courses are trimester-based • Business courses are semester-based (six months) (three months) Duration Examinations Engineering studies students write their Contact details examinations at the end of each trimester. Business studies students write their exami- Key contact person: nations at the end of each semester, in June Mdabula Bukiwe, Communications Officer and November. The pass mark for all four sub- Email: firstname.lastname@example.org jects at each level is 40%. In order to attain a Tel: +27 47 505 1000 Fax: +27 47 536 0932 certificate a student must pass all four subjects. Email: email@example.com EASTERN CAPE business 2013 134 Located in East London, the Academic College - South Africa offers business training solutions for office professionals as well as customized skills programs. At the Academic College - South Africa, we believe in empowering people for success through value-based skills training. Our approach is fresh, we understand your business is unique and that you may need training that is tailor-made for your business. All our Skills programs can be modified to your specific needs. Personal Growth Skills Programs include: • Business Writing Skills • Dealing with Conflict • Negotiating for Results • Powerful Presentations • Stress Management • and more Corporate Training Skills Programs include: • Conducting Effective Meetings • Effective Interviewing Skills • Managing Diversity • Managing Performance • Managing Workplace Discipline • and more The Office Professional Skills Programs include: • Executive Assistant • Frontline Skills • Telephone Skills • Office Professional • Minute taking • and more The Academic College - South Africa is Cathsseta accredited and offers Customer Service (NQF4 and NQF5) as well as Certificates and Diplomas in the Hospitality Industry. Cathsseta 613/P/000059/2006 Contact us for a quotation - we will empower you for success. Tel 043 743 8401/2 Email firstname.lastname@example.org PROFILE Grahamstown family of schools St Andrew’s College, The Diocesan School for Girls and St Andrew’s Preparatory School provide quality education and impart crucial skills to enable learners to excel. This family of three schools provides an excellent independent education for pupils from all over Southern Africa, Central Africa and other parts of the world. There are extremely close links between the schools, and strategic faciliPaul Edey, ties are shared. The Headmaster of St Andrew’s College unique co-instruction model implemented in the senior schools provides exceptional learning and social opportunities. A wide choice of academic subjects and extra-mural activities are offered. Shelley Frayne, Headmistress of The Diocesan School for Girls Gareth Allman, Headmaster of St Andrew’s Prep to create a happy and fulfilled boarding experience. Staff reward effort and participation, and promote success and excellence. ‘An education at St Andrew’s College is a transforming experience. I believe that there can be few better places in South Africa for young men to discover a life of purpose and significance. The school aims to produce confident, wellrounded and determined young men, capable of coping with the challenges of growing up in a competitive world in which they can make a difference.’ – Paul Edey Vision and mission St Andrew’s College Building on strong traditions since its founding in 1855, St Andrew’s College keeps pace with progressive educational methods and innovations. Through the motto Nec Aspera Terrent (Difficulties do not dismay us), the school aims to empower pupils to be leaders and clearthinking decision-makers, to retain their individuality and yet to understand the dynamics of working in a team, to make use of the opportunities available to them and to create opportunities for others. The following values and attributes are found at the core of the school’s mission: honesty, confidence, independence, service, hard work, tenacity, humility, friendship and an attitude of ‘doing the best you can’. The school seeks to live out a Christian ethos within a multi-cultural society. It strives EASTERN CAPE business 2013 The Diocesan School for Girls (DSG) Founded in 1874, the DSG is situated adjacent to St Andrew’s College. Individuality and independent thought are encouraged, and the school offers an exceptionally wide choice of subjects and extra-mural activities. Education in the acquisition of life skills is emphasised. Qualities such as respect, responsibility, selfdiscipline and tolerance are encouraged. We are committed to promoting a spirit of love, 136 PROFILE fairness, honesty and loyalty in a happy, facilities from Grade 4 and all lessons from family atmosphere. DSG girls are encouraged Grade 10. to develop a sense of ownership and pride in • First-class sports coaches, world-class facilities and a huge selection of sport is on offer. their school community, to develop self-discipline and to mutually respect members of their • Full boarding, and the option of weekly school and the wider community. boarding at junior school level is offered, with modern facilities and nurturing staff. ‘Women in the 21st century have choices and • IEB Matric examinations are written and a options available to them that no other genera100% pass rate was achieved in 2011. tion has had. Many of the traditional stereotypes have disappeared and women are taking their Description and location of facilities place in all spheres. At the DSG, we acknowledge The three schools are situated in the historical, these changes and recognise that the modern educational and cultural hub of Grahamstown school needs to prepare girls for a rapidly in the Eastern Cape. The extensive and beautichanging society.’ – Shelley Frayne ful campuses are located adjacent to Rhodes University and are close to the centre of the city. St Andrew’s Preparatory School Information Technology, Physical and Life Sciences • Commercial Sciences: Accounting and Business Studies • Humanities: Classical Civilisations, History, Geography, Life Orientation and Languages (Mandarin, isiXhosa, Afrikaans, English, French and German) • The Arts: Visual Arts, Drama, Dance and Music • The Design and Technology Centre offers Architecture, Fashion and Product Design ‘St Andrew’s Prep is a nurturing school that pro- • Exceptional sporting facilities and worldvides an all-round education, characterised by class coaches excellence in each sphere, and is facilitated by committed and caring teachers. St Andrew’s Prep Contact details is a school where children can be happy children, who are confident and equipped to face St Andrew’s College the challenges of further education and the con- Tel: +27 46 603 2300 temporary world with courage and sensitivity.’ Email: email@example.com – Gareth Allman Website: www.sacschool.com St Andrew’s Preparatory School, founded in 1885, is a nurturing family school where children are educated in a caring environment so that each child can develop his or her potential to the full. St Andrew’s Prep is proud of the rich heritage formed by both teachers and pupils alike. We seek to live out a Christian ethos with an Anglican foundation in a multi-cultural society. The school’s success is measured in terms of confident, happy boys and girls who are equipped to face the challenges of the contemporary world with courage and sensitivity. • Sciences: Advanced Mathematics Programme, Faculties and courses offered: Educational offerings • The senior schools offer a wide range of subject choices including French, Mandarin, Cambridge A Level courses in Thinking Skills, Advanced Programme Mathematics, Design and Technology, Music and Dance. • Boys and girls at St Andrew’s College, St Andrew’s Prep and DSG share strategic The Diocesan School for Girls Tel: +27 46 603 4300 Email: firstname.lastname@example.org Website: www.dsgschool.com St Andrew’s Preparatory School Tel: +27 46 603 2400 Email: email@example.com Website: www.saprepschool.com EASTERN CAPE business 2013 137 Do qualify for a Bursary You Engineering Eskom University bursaries are offered to South African citizens for fulltime undergraduate studies at any South African residential University. Requirements: Grade 12 English = Level 4 Grade 12 Maths = Level 5 Grade 12 Physical Science = Level 5 Eskom University bursaries are awarded in accordance with Eskom’s requirements for a specific year. Disciplines: Electrical Engineering Heavy Current Bcom Accounting Closing Date: 31 July Technician Eskom Technikon bursaries are offered to South African citizens for fulltime studies at any South African residential Technikon. Requirements: Grade 12 English = Level 4 Grade 12 Maths = Level 4 Grade 12 Physical Science = Level 4 Eskom Technikon bursaries are awarded in accordance with Eskom’s requirements for a specific year. Disciplines: Electrical Engineering heavy current Closing Date: 31 July Apprentice Eskom Technical College bursaries are offered to South African citizens for fulltime studies at any South African Technical College. Requirements: Grade 12; Minimum N3/Technical Matric; Driver’s Licence Apprentices are appointed in accordance with Eskom’s requirements for a specific year. Disciplines: Electricians, Fitters & Turners Closing Date: 31 July For more information, please contact: Cindy Mhlwatika 043 704 1041 OVERVIEW Business support services The Eastern Cape’s diverse economy is supported by a lively services sector. B usiness support services operate in specialist areas, freeing up the companies that buy the service to focus on their core business. Such services can include security, catering, cleaning, accounting, legal services, furniture and stationery supply, software and hardware management, recruitment, consulting, call centres, customer care and other key services. A complex operation such as an airport requires the coordination of a large number of services, and for it to work well, each sector must deliver its services professionally. The awarding in 2012 of a global Airport Service Quality award to East London Airport was a major feather in the cap for this recently upgraded ACSA facility. The Airports Council International (ACI) awarded East London the ‘Most Improved for Staff Service Excellence’ at its Singapore meeting. The awards’ Sector Highlights authority tracks passenger satisfaction. A key determinant in traveller happiness is cleanliness, and East London Airport has at East London airport, it is Adventure Industrial Cleaning (AIC) won an international award that has the contract to keep the airport spotless. AIC is part of for service. the Venture Group. Many companies seek assistance from specialists when it major companies comes to legal or societal issues affecting the business environ• Adventure Industrial ment. This can be related to general issues such as health law Cleaning and on-site health and safety matters, or it can relate to factors • Nelson Mandela Bay that are specific to the South African context. Some consulting Business Chamber concerns include in their services advice on how to apply Black • Border-Kei Chamber of Economic Empowerment principles as a business strategy. Business Business in the Eastern Cape is supported by chambers of commerce and business. These chambers are a first point of contact for anyone wanting to do business, and provide support in the Uitenhage-Despatch for members in terms of networking and advice. The Nelson area. The Border-Kei Chamber Mandela Bay Business Chamber (NMBBC) has about 1 000 mem- of Business has more than bers, and incorporates the old Midland chamber and enterprises 700 members. These chambers provide their members with services such as business Online resources listings, sector and business Association of Personnel Service Organisations: www.apso.co.za news, BEE updates, lobbying Border-Kei Chamber of Business: www.bkcob.co.za of local and provincial govNational Contract Cleaners Association: www.ncca.co.za ernment, regular events, networking seminars, internaNelson Mandela Bay Business Chamber: tional trade opportunities and www.nmbbusinesschamber.co.za enquiries through inward and Services SETA: www.serviceseta.org.za outward trade missions. EASTERN CAPE business 2013 140 photo: phillip mostert interview An unblemished reputation Managing director of Adventure Industrial Cleaning Garth Crisswell highlights the benefits of the recently awarded cleaning contract for East London Airport. Tell us about the origins of your company. Adventure Industrial Cleaning (AIC) has been part of the Venture Group since 2002, and started operating independently in mid2007. Having originally focused primarily on the industrial sector, we started expanding into other sectors such as the commercial and retail sectors, where we have experienced great success. We are proud to be providing cleaning services to Spicer Axle, ACSA, Dulux, Burmeisters, Spar, Accucap Investments, Old Mutual, Lafarge and many other valued clients. What are some of the specialised cleaning services that you offer? We offer a wide range of cleaning solutions, from contract cleaning, pre- and post-occupational cleaning, pest-control services, hygiene services, vehicle cleaning, machine cleaning and even paint-booth cleaning. We opened up a pest-control division in mid-2012 and merged it with our hygiene division to give us a more focused approach to increase our market share in this field. Our dedicated management team is on call 24/7. We take time to invest in our staff and have partnered with a Services Sector Education and Training Authority (SSETA)-accredited training provider to train our staff not only in cleaning, but also in social aspects and basic business management. Not only are we fortunate to be part of a global player in Venture, but we are also fortunate to be able to draw on engineering and construction expertise through ISG, a part-owner of Adventure Industrial Cleaning. How long have you been cleaning East London Airport and what is the scope of your work there? We were very excited to be awarded the cleaning contract for the East London Airport and commenced our service on 1 August 2012. We believe that we can add value to the airport by ensuring that the first impression arriving passengers have of East London is a good one. For more information, please contact: www.aiclean.co.za, www.isgeng.co.za or www.ventureglobal.biz Garth Crisswell Garth Crisswell has been in the contract-cleaning business since 1997. He is supported by a dedicated management team with nearly 100 years of joint cleaning and management experience, working together to provide clients with the best cleaning solutions. Garth has been managing director of AIC since May 2007. 141 eastern cape business 2013 PROFILE Nelson Mandela Bay Business Chamber The Business Chamber is a non-profit business association, representative of a broad spectrum of businesses in Nelson Mandela Bay. About the Chamber The Nelson Mandela Bay Business Chamber is the largest business association in the Eastern Cape, with a membership of over 800 businesses. The Chamber is fully representative of the demographics of the business sector. It is leading business transformation by example, in its staff, board and membership equity spread. The aim of the Chamber is to connect business, and to stimulate economic progress in Nelson Mandela Bay. It provides services to businesses in the form of information, communication, seminars, task teams, networking functions and a strong international trade focus. Lobbying, representation and strategic interventions are also key focus areas, as these facilitate an enabling environment for business. Business Chamber CEO Kevin Hustler with the Chamber’s President Mandla Madwara and Deputy President Neil Hart. (now Nelson Mandela Bay). These functions had previously been provided by the Port Elizabeth Chamber of Commerce (established in 1864) and the Midland Chamber of Industry (established in 1927). The amalgamation of these two chambers has significantly strengthened the voice of organised business in the city. Objectives It is the vision of the Nelson Mandela Bay Business Chamber to be a leading and dynamic business chamber that contributes effectively to the economic growth of Nelson Mandela Bay. The Chamber works effectively through targeted task teams and key strategic projects that act as catalysts for economic development to create an enabling environment for business in the area. Services Events Events at the Nelson Mandela Bay Business Chamber keep business owners up-to-date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. Contact Buyiswa Yaya on events@ nmbbusinesschamber.co.za. History The Nelson Mandela Bay Business Chamber was established as the Port Elizabeth Regional Chamber of Commerce and Industry in 1994, with a view to fostering, encouraging, pro- Networking moting, protecting, developing and establishing Regular networking functions give business commercial and industrial enterprises within owners the chance to make new profesthe Port Elizabeth and Uitenhage Metropole sional contacts. There are also a variety of EASTERN CAPE business 2013 144 PROFILE promotional opportunities available to member companies. Contact Lesley Domingo on firstname.lastname@example.org. creating an enabling environment for business in Nelson Mandela Bay. SME hub Health and wellness The Chamber’s health and wellness task team The Standard Bank-supported SME hub at the is the front runner in total employee wellness Nelson Mandela Bay Business Chamber provides in the metro. This task team instituted the assistance to small businesses, including infor- country’s first and only Health and Wellness mation and referral services, access to finance, Awards that aim to highlight best practice, business skills training, library and computer and increase awareness of the benefits of a facilities and a business-mentorship programme. holistic approach to health and wellness for The mentorship programme, through which workers in the metro. Open quarterly meetmembers have access to the experience of the ings encourage interaction and discussion Chamber’s panel of volunteer business mentors, with all stakeholders around pertinent issues is offered to SMEs. Contact Fezeka Matshoba on affecting employee health and wellness. email@example.com. Services to traders Trade Point SA Nelson Mandela Bay is housed within the Business Chamber’s offices, and offers support and assistance to SMEs in the development of their international trading capability and efficiency. The Business Chamber also offers a certificates of origin service. Contact David Hamer on tradepoint@ nmbbusinesschamber.co.za. SME development Publications The Chamber provides members with a variety of relevant, quality publications, including quarterly member magazine Infocom, and an annual business guide. Contact Neil Terblanche on firstname.lastname@example.org. The SME development task team recognises the need to develop and support SMEs as the lifeblood of the economy in the Eastern Cape. This dynamic group of SME owners and entrepreneurs aim, through the task team, to create not only networking opportunities for those in the SME category, but an enabling educational environment for SME growth through a targeted mentorship and capacity-building programme. The task team endeavours to assist SMEs wherever possible, helping them to overcome the challenges associated with running a small business. Strategic resources The focus of the strategic resources task team is tackling issues surrounding water and electricity supply, and is key to business operations in the Nelson Mandela Bay Metro. The overarching aim of this task team is to secure the quality and supply of water and electricity to the region, and the maintenance of both. The team has been instrumental in sharing best practices in the industrial use of strategic resources. Top 40 Under 40 This year sees the Nelson Mandela Bay Business Chamber run its second annual Top 40 Under 40. The initiative showcases the dynamic new faces of business in Nelson Mandela Bay, as voted for by the Chamber’s members and stakeholders. Contact Nicole Klokow on email@example.com. Task teams: a platform for action Working effectively through targeted task teams, and putting its weight behind key strategic projects, the Business Chamber supports projects that act as catalysts for economic development, and works towards Transport The goals of the chamber’s transport task team include the development of a maritime industry, the improvement of existing infrastructure, and the optimisation of logistics corridors that are already in place. The task EASTERN CAPE business 2013 145 PROFILE Kevin Hustler, Chief Executive Officer Samantha Venter, Operations Director Neil Terblanche, Advertising and Membership David Hamer, Trade Point SA Nelson Mandela Bay Buyiswa Yaya, Events Consultant Melanie Dolan, Information Coordinator Nicole Klokow, Communication Specialist Fezeka Matshoba, SME Helpdesk Coordinator team advocates the improvement of transport team is responsible for rewriting the Business modalities and infrastructure by increasing effi- Chamber’s environmental charter, and the ciency and effectiveness, thereby contributing review of environmental practices within to the economic growth and social develop- member companies. The team is focused on ment of the region. Their current focus includes developing a good relationship with the envithe extension of the Port of Ngqura’s Container ronmental directorate at the municipality, and Terminal in order to facilitate growth, and the has engaged with civil society on behalf of the Business Chamber. optimisation of the region’s rail corridor. Corporate social investment Renewable energy The corporate social investment task team aims The renewable energy task team supports to enhance the effectiveness of CSI activities the positioning of Nelson Mandela Bay as a through collaboration and the sharing of best hub for the manufacture of renewable energy, practice. The group will act as an advisory body and as a centre of excellence of renewable and information hub, with a view to harmo- energy manufacturing, implementation and nising and aligning development activity, prac- planning. Their aim is to establish an efficient tices, innovations and investment for increased mechanism to share information, best pracsocial impact. tice and new trends with business on renewable energy solutions and benefits. The team Environment and greening business will provide technical expertise and guidance The environment and greening business task in the formulation of the renewable energy EASTERN CAPE business 2013 146 PROFILE manufacturing ‘pillar’ of the city’s industrial development strategy. at all times. We do this by sharing best practice freely among our members, stating clearly business’ position on key inhibiting or enabling factors affecting our sustainability, smoothing the way for catalytic socioeconomic projects and engaging with diverse, key role-players on a regular basis,’ he concluded. PMR.africa conducts an annual survey of the Eastern Cape to determine perceptions of the region as a potential investment area, to measure the contributions of individuals, companies, institutions and government entities to the economic growth and development of the province, as well as brand awareness and levels of innovation in the region. The ratings are based on the perception of the respondents to the survey, and the survey strives to recognise the teams and individuals behind successful institutions. Outstanding achievement For the second year in a row, the CEO of the Nelson Mandela Bay Business Chamber, Kevin Hustler, walked away with a singular honour from PMR.africa at the Leaders and Achievers Awards Breakfast in July 2012. Hustler received a rating of ‘Excellent’, and was the recipient of a Golden Arrow Award for outstanding service and contribution to the economic growth and development of the Eastern Cape Province by business persons. Hustler was the only individual named among companies receiving awards at the event, which honours business leaders and achievers in the province, and rates them on their contribution to the economic growth and development of the Eastern Cape. His achievement is as a result of a survey of 155 MDs, CEOs, business owners, company directors, senior employees and senior local and provincial government officials. In 2011, Hustler was honoured as an individual with a Diamond Arrow award, the highest award of the annual event. Contact details Key contact people: Kevin Hustler, Chief Executive Officer Samantha Venter, Operations Director David Hamer, Trade Point SA Nelson Mandela Bay Fezeka Matshoba, SME Helpdesk Coordinator Nicole Klokow, Communication Specialist Buyiswa Yaya, Events Consultant Melanie Dolan, Information Coordinator Neil Terblanche, Advertising and Membership Consultant ‘I am honoured and humbled to be recognised once again,’ says Hustler, who believes this second award further cements the Nelson Mandela Bay Business Chamber’s standing as a credible and effective business organisation. ‘The Chamber team work tirelessly to deliver to the organisational vision, mission and values. The strategic leadership of our board, the strength of our management team, Tel: +27 41 373 1122 and the solid competence of our staff, mean Fax: +27 41 373 1142 the Business Chamber is well-equipped to Email: firstname.lastname@example.org or meet the demands of our mandate to serve email@example.com the needs of business in Nelson Mandela Bay, Physical address: 200 Norvic Drive, KPMG and to act as a catalyst for change, develop- House, Greenacres, Port Elizabeth 6057 ment and economic growth in the whole of Website: www.nmbbusinesschamber.co.za the Eastern Cape Province. My team and I are guided in everything we do by the Business Chamber’s maxim: Connecting Business, Stimulating Progress. We take ownership of this credo, and strive to facilitate economic growth and development, and represent the interests of business in Nelson Mandela Bay 147 EASTERN CAPE business 2013 PROFILE Border-Kei Chamber of Business Border-Kei Chamber of Business provides key services to over 750 member organisations, and aims to be the ‘voice of business’ in the area. Value proposition to all members, and keeps them in touch To be the ‘voice of business’ promoting an with chamber activities and developments in the area. environment for growth and sustainability through maintaining strong, proactive relations • Business Bytes – The monthly electronic with both internal and external stakeholders, newsletter gives a snapshot of activities and including provincial and local government, upcoming events. member companies, other business organisa- • Website – Members who have websites are tions and organised labour. entitled to a link from the chamber’s website. • Committees – The chamber has a robust and Geographic areas of operation effective committee system to facilitate memBorder-Kei Chamber of Business (BKCOB) has bers’ participation, and to enable the chamber to fulfill its role as the ‘voice of business’. offices in East London and Queenstown which serve the greater Border-Kei region. Services and benefits to members BKCOB offers the following key services to member companies: • Member listing – After joining, members receive the member listing as part of their package. • Border-Kei Chamber of Business Membership Certificate – Members receive a personalised membership certificate at a new members’ induction and networking event. • New members’ induction and networking functions – The chamber holds six new members’ induction and networking functions annually, and these provide a valuable informal but structured opportunity to meet a broad range of businesspeople. • Letters of support – The chamber gladly provides letters of support to members trying to access government tenders, and letters of introduction to chambers in other centres for members attempting to expand their business footprint, whether provincially, nationally or globally. • Business Hi-Lite Magazine – This glossy B2B magazine is distributed monthly free-of-charge EASTERN CAPE business 2013 Turnover BKCOB represents over 750 member organisations that generate an estimated annual turnover of R69-billion, and that employ some 52 000 people who earn an estimated annual income of R18-billion in total. Contact details Key contact people Les Holbrook, Executive Director Tish Holbrook, Head: Trade and Information Darryn Allan, Communications Officer Tel: +27 43 743 8438 Fax: +27 43 743 2249 Email: firstname.lastname@example.org or email@example.com Physical address: 10 St Georges Road, Southernwood 5201 Postal address: PO Box 11179, Southernwood 5213 Website: www.bkcob.co.za Contact our member consultant Marchel Brown du Toit on +27 43 743 8438 or firstname.lastname@example.org to join. 148 interview Promoting business in the region Les Holbrook, executive director of the Border-Kei Chamber of Business (BKCOB), highlights the reasons that investors should look no further than the Eastern Cape. Les Holbrook What are some of the Chamber’s highlights for the past year? We keep the priorities on the agenda – and key issues such as the port expansion, revitalisation of Latimer’s Landing and refurbishment of the old Buffalo Bridge are just a few. Some more important issues are pressing local authorities to step up programmes for key infrastructure and maintenance. We have initiated a working group for education – focusing on teacher support and technical subjects. Undertaking a pilot project with Merrifield School has been hugely exciting and has been attracting interest from a range of stakeholders. Lastly, a focus area for the chamber recently has been on corporate social responsibility and investment, and how serious contributors can not only make a difference but how they can benefit best from their own contribution. In your view, what are the most compelling reasons for an international businessperson to invest in the Eastern Cape? We still have a superb quality of life. Lifestyle amounts to a very important factor. Great schools and medical facilities rank very high in choosing an investment destination. We still claim to be the 10-minute city, and despite lots of contrary claims, our lower crime rate, our labour force and our business environment is the best in the country. We also have the East London Industrial Development Zone with a world-class Science and Technology Park. What do you regard as the biggest obstacle or challenge that regional businesses face at present? Every single citizen agrees we need a vibrant and strong economy with growth of 4% at least. Although we still have a great business environment – the ability of both the public sector and civil society to embrace business and understand and accept how important business is remains a challenge. Political instability continues to plague most sectors of our society, and one wishes that we could leave politics to the politicians. Also, if society would be more focused on their responsibilities, we would have a more accountable society. Les Holbrook has a National Technical Certificate as well as a Certificate 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. 149 eastern cape business 2013 focus Green energy consumption The Border-Kei Chamber of Business offers a service that allows companies to purchase a Renewable Energy Certificate, and thus reduce their carbon emissions and contribute to a green economy. D o you want to reduce your company’s carbon emissions, but don’t know where The Certificate System to start? Are your customers asking what your carbon footprint is and how much green National energy has gone into your product? Are you an Grid exporter to markets which need you to verify your energy sources in order to avoid harsh Coal duties? Do you have a link to a multinational Consumer Generator which is insisting you start addressing energy sustainability and going green? There is a simple way to achieve this! The Border-Kei Chamber of Business has set up RE Genertor BKCOB a Green Desk, where companies are able to Greendesk purchase certified green energy through the Renewable Energy Certificate (REC) system. This reduces your carbon footprint and gives Certificate you access to renewable energy, therefore supplementing and replacing the existing fossil fuel-based electricity supply. An REC is an Issuing Body environmental commodity that represents the added value, environmental benefits and cost of renewable energy above conventional adapted from greenxenergy methods of producing electricity The REC system has been endorsed and supported by the National Department of you certainty with energy prices going forward. Energy and enables you to purchase green zaRECs (Pty) Ltd administers the South African energy, and legitimately claim that you are voluntary REC market along the lines of the Eurousing certified renewable energy or electricity. pean specifications on behalf of members. This possibility also allows companies to not Commit to a more robust electricity supply only derive marketing/advertising options, system and use green energy certificates! but it allows them to meet certain green and environmental targets. You will now be able For more information, please contact to produce goods and services with a lower the Border-Kei Chamber of Business on carbon footprint, utilising a blend of different email@example.com, call +27 43 743 energy suppliers. The beauty of the system 8438 or visit www.zarecs.co.za will also allow you to lock your energy costs for the RECs for a fixed period, which can give eastern cape business 2013 150 focus Just a click away The Invest Buffalo City (IBC) pilot project aims to position the city as an online one-stop-shop for potential investors and enterprise. W ith the advent of the digital economy, information has become the driver of value and wealth creation, and therefore information technology is considered the key to success in a growing number of industries. In 1994, three million people, most of them in the US, used the Internet. In 1998, 100 million people around the world used the Internet. By 2011, this figure had risen to about three billion people. Worldwide, investors require a range of information about a potential investment destination, including the investment climate, quality of life, as well as business opportunities. The real need for any potential investor is to have quick, easy access to consolidated information regarding the attractiveness and competitive advantages of their investment destination. Unctad, in Attracting Investors: a need for transparency, further strengthens the motivation for having such a web portal by stating that ‘making administrative procedures transparent, swift and efficient is essential to establish an enabling environment for private-sector development. Investors usually have several options, but need to know the rules of the game in the countries they are considering, before deciding on the best location. Countries that can offer online practical and detailed information on their investment climate, rules, laws and investment opportunities are at an advantage. Foreign investors will naturally consider them as their first option’. The Invest Buffalo City (IBC) pilot project contributes to local economic development infrastructure by combining the efforts of business associates and public-sector partners in launching a unique ‘one-stop-shop’ investorand enterprise-friendly web platform, which will serve to position Buffalo City as a city that is only ‘a click away’ from being the business destination of choice. The establishment of the web-based portal www.investbuffalocity.com enables Buffalo City to utilise information technology to market itself, and enables the partners and associates to engage with potential investors and local enterprises in a proactive and streamlined way. This not only improves the city’s attractiveness as an investment destination, but it assists local enterprises to get assistance and market their own products or businesses on the worldwide web – therefore leading to increased investor awareness and economic contribution to the district as a whole. Although IBC will focus on attracting investment to the region as opposed to attracting investment in one specific sector, this initiative stipulates concrete measures that can be applied to priority sectors – these include tourism, agriprocessing, forestry and timber, all of which are already focus areas for growth, as identified by associates and partners in the project. With the successful launch of the IBC pilot project in August 2011, the future of this project looks promising. www.investbuffalocity.com 151 eastern cape business 2013 listings South African National Government An overview of South Africa’s national government departments. S outh Africa is a constitutional democracy with a three-tier system of government and an independent judiciary. The three tiers of government – national, provincial and local – all have legislative and executive authority in their own spheres, and are defined in the Constitution as ‘distinctive, interdependent and interrelated’. Legislative authority is vested in parliament, which is situated in Cape Town and consists of two houses, the National Assembly and the National Council of Provinces. Parliament is bound by the Constitution and must act within its limits. The president, elected by the National Assembly from among its members, is the executive head of state and leads the cabinet. The president may not serve more than two five-year terms in office. The cabinet consists of the president, the deputy president and ministers. State institutions created to support constitutional democracy are the Public Protector; the Human Rights Commission; the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities; the Commission for Gender Equality; the Auditor-General and the Electoral Commission. Performance, Monitoring and Evaluation in the Presidency Minister: Collins Chabane Physical address: Room 116, 2nd Floor, West Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5331/4 Fax: +27 12 321 8870 Email: firstname.lastname@example.org Website: www.thepresidency.gov.za The Presidency President: Jacob Gedleyihlekisa Zuma Deputy President: Kgalema Motlanthe Departments in the Presidency National Planning Commission Minister: Trevor Andrew Manuel Physical address: Room 242, 2nd Floor, East Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 300 5795 Email: email@example.com Website: www.thepresidency.gov.za eastern cape business 2013 National Government Departments Dept of Agriculture, Forestry and Fisheries Minister: Tina Joemat-Pettersson Physical address: 1st Floor, Block DA, 20 Agriculture Place, cnr Steve Biko Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria 0001 Tel: +27 12 319 7319 Fax: +27 12 321 8558 Email: firstname.lastname@example.org Website: www.daff.gov.za 152 listings Department of Arts and Culture Minister: Paul Mashatile Physical address: 10th Floor, Kingsley Centre, 481 Church street, cnr Steve Biko and Pretorius streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3006 Fax: +27 12 440 4485 Email: email@example.com Website: www.dac.gov.za Department of Basic Education Minister: Matsie Angelina Motshekga Physical address: Sol Plaatjie House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X895, Pretoria 0001 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Email: firstname.lastname@example.org Website: www.education.gov.za Department of Communications Minister: Dina Pule Physical address: Block 3, Nkululeko House, 33 Iparioli Office Park, 399 Duncan Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8292 Fax: +27 12 362 6915 Email: email@example.com Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs Minister: Richard Masenyani Baloyi Physical address: 87 cnr Hamilton and Proes streets, Arcadia, Pretoria 0001 Postal address: Private Bag X804, Pretoria 0001 Tel: +27 12 334 0705 Fax: +27 12 326 4478 Email: firstname.lastname@example.org Website: www.cogta.gov.za Department of Correctional Services Minister: Sibusiso Ndebele Physical address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Email: email@example.com Website: www.dcs.gov.za Department of Defence and Military Veterans Minister: Nosiviwe Mapisa-Nqakula Physical address: 4th Floor, Block 5, Armscor Building, cnr Delmas Avenue and Nossob Street, Erasmuskloof, Pretoria Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 Fax: +27 12 347 0118 Email: firstname.lastname@example.org Website: www.dod.mil.za Economic Development Department Minister: Ebrahim Patel Physical address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Email: email@example.com Website: www.economic.gov.za Department of Energy Minister: Elizabeth Dipuo Peters Physical address: Travenna Office Campus, 75 Meintjies and Schoeman streets, Pretoria Postal address: Private Bag X646, Pretoria 0001 Tel: +27 12 444 4265 Fax: +27 12 444 4505 Email: firstname.lastname@example.org Website: www.energy.gov.za eastern cape business 2013 153 listings Department of Environmental Affairs Minister: Edna Molewa Physical address: North Tower, Fedsure Forum Building, cnr Pretorius and Lilian Ngonyi streets, Pretoria Postal address: Private Bag X447, Pretoria 001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.environment.gov.za Department of Health Minister: Aaron Motsoaledi Physical address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8085/81 Fax: +27 12 395 9165 Email: firstname.lastname@example.org Website: www.doh.gov.za Department of Higher Education and Training Minister: Blade Nzimande Physical address: Sol Plaatje House, 123 Schoeman Street, Pretoria Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 Fax: +27 12 323 5618 Email: email@example.com Website: www.dhet.gov.za Department of Home Affairs Minister: Nkosazana Clarice Dlamini Zuma Physical address: FSI Building, 909 Arcadia Street, Hatfield, 0083 Postal address: Private Bag X741, Pretoria 0001 Tel: +27 12 432 6622 Fax: +27 12 432 6637 Email: firstname.lastname@example.org Website: www.home-affairs.gov.za eastern cape business 2013 Department of Human Settlements Minister: Tokyo Sexwale Physical address: Govan Mbeki House, 240 Walker Street, Sunnyside, Pretoria Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Email: email@example.com Website: www.dhs.gov.za Department of International Relations and Cooperation Minister: Maite Nkoane Mashabane Physical address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 0431 Fax: +27 12 323 1502 Email: firstname.lastname@example.org Website: www.dirco.gov.za Department of Justice and Constitutional Development Minister: Jeffrey Thamsanqa Radebe Physical address: Salu Building, 28th Floor, cnr Thabo Sehume and Francis Board streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 Fax: +27 12 315 1749 Email: email@example.com Website: www.justice.gov.za Department of Labour Minister: Mildred Oliphant Physical address: 215 Laboria House, cnr Schoeman and Paul Kruger streets, Pretoria Postal address: Private Bag X117, Pretoria 0001 Tel: +27 12 392 9620 Fax: +27 12 320 1942 Email: firstname.lastname@example.org Website: www.labour.gov.za 154 listings Department of Mineral Resources Minister: Susan Shabangu Physical address: 4th Floor, Block 2C, Trevenna Campus, Cnr Meintjies and Schoeman streets, Sunnyside Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3999 Fax: +27 12 444 3145 Email: email@example.com Website: www.dmr.gov.za Department of Police Minister: Nathi Mthethwa Physical address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2819 Email: firstname.lastname@example.org Website: www.saps.gov.za Department of Public Enterprises Minister: Malusi Gigaba Physical address: Suite 401, 1090 Infotech Building, Arcadia Street, Hatfield, Pretoria Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1098 Fax: +27 12 431 1039 Email: email@example.com Website: www.dpe.gov.za Department of Public Service and Administration Minister: Lindiwe Sisulu Physical address: Batho Pele House, 116 Proes Street, Pretoria Postal address: Private Bag X916, Pretoria 0001 Tel: +27 12 336 1063 Fax: +27 12 326 7802 Email: firstname.lastname@example.org Website: www.dpsa.gov.za Department of Public Works Minister: Thembelani (Thulas) Nxesi Physical address: 6th Floor, AVN Building, cnr Skinner and Andries streets, Pretoria Postal address: Private Bag X229, Pretoria 0001 Tel: +27 12 406 1967 Fax: +27 12 310 5182 Email: email@example.com Website: www.publicworks.gov.za Department of Rural Development and Land Reform Minister: Gugile Nkwinti Physical address: 3rd Floor, Old Building, 184 Jacob Mare and Paul Kruger streets, Pretoria Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 8911 Fax: +27 12 323 3306 Email: firstname.lastname@example.org Website: www.ruraldevelopment.gov.za Department of Science and Technology Minister: Derek Hanekom Physical address: 3rd Floor, Building No 53, CSIR Campus, Meiring Naude Road, Brummeria, Pretoria Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6798 Fax: +27 12 349 1041/8 Email: email@example.com Website: www.dst.gov.za Department of Social Development Minister: Bathabile Olive Dlamini Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria Postal address: Private Bag X901, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 12 321 2502 Website: www.dsd.gov.za 155 eastern cape business 2013 listings Department of State Security Minister: Siyabonga Cyprian Cwele Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700/57/91 Fax: +27 12 367 0749 Website: www.nia.dov.za Department of Sport and Recreation South Africa Minister: Fikile Mbalula Physical address: Regent Building, cnr Queen and Vermeulen streets, Pretoria Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 0795 Website: www.srsa.gov.za Department of Tourism Minister: Marthinus van Schalkwyk Physical address: 10th Floor, North Tower, Fedsure Forum Building, cnr Pretorius and Van Der Walt streets, Pretoria Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 310 3611 Fax: +27 12 322 0082 Email: firstname.lastname@example.org Website: www.tourism.gov.za Department of Trade and Industry Minister: Rob Davies Physical address: Block A, 3rd Floor, the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 Fax: +27 12 394 0337 Email: email@example.com Website: www.thedti.gov.za eastern cape business 2013 Department of Transport Minister: Benedict Martins Physical address: Room 4111, Forum Building, cnr Struben and Bosman streets, Pretoria Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3860 Fax: +27 12 328 3194 Email: firstname.lastname@example.org Website: www.transport.gov.za Department of Water Affairs Minister: Edna Molewa Physical address: 1035 Sedibeng Building, 185 Schoeman street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.dwa.gov.za Department of Women, Youth, Children and People with Disabilities Minister: Lulu Xingwana Physical address: 36 Hamilton street, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 359 0011 Fax: 086 676 3390 (SA only) Email: firstname.lastname@example.org Website: thepresidency.gov.za Government Communication and Information System (GCIS) Physical address: 356 Midtown Building, cnr Sisulu and Madiba streets, Pretoria Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 314 2127 Fax: +27 12 325 2030 Email: email@example.com Website: www.gcis.gov.za Independent Complaints Directorate (ICD) Physical address: CT Forum Building, 114 Vermeulen Street, Pretoria 156 listings Postal address: Private Bag X941, Pretoria 0001 Tel: +27 12 399 0000 Fax: +27 12 399 0204 Email: firstname.lastname@example.org Website: www.icd.gov.za National Treasury Minister: Pravin Jamnadas Gordhan Physical address: 40 Church Square, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 315 5372 Fax: +27 12 323 3262 Email: email@example.com Website: www.treasury.gov.za Public Service Commission Physical address: Commission House, cnr Hamilton and Ziervogel streets, Arcadia, Pretoria Postal address: Private Bag X121, Pretoria 0001 Tel: +27 12 352 1000 Fax: +27 12 325 8382 Email: firstname.lastname@example.org Website: www.psc.gov.za Police Civilian Secretariat Physical address: 217 Pretorius Street, Vanerkom Building, Pretoria Postal address: Private Bag X922, Pretoria 0001 Tel: +27 12 393 2520 Fax: +27 12 393 2538 Email: email@example.com or firstname.lastname@example.org Website: www.nationalsecretariat.gov.za South African Revenue Service Physical address: Lehae la Sars Building, 299 Bronkhorst Street, New Muckleneuk, Pretoria Postal address: Private Bag X923, Pretoria 0001 Tel: +27 12 317 2000 Fax: +27 10 208 5005 Website: www.sars.gov.za Statistics South Africa Physical address: The De Bruyn Park, 170 Andries Street, Pretoria Postal address: Private Bag X44, Pretoria 0001 Tel: +27 12 310 8911 Fax: +27 12 310 8500 Email: email@example.com Website: www.statssa.gov.za National coat of arms The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance. Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth. 157 eastern cape business 2013 PROFILE Department of Labour’s Compensation Fund The Department of Labour’s Compensation Fund is a reputable provider of compensation for occupational injuries and diseases. Constitutional mandate The mandate of the Compensation Fund is derived from Section 27(1)(c) of the Constitution of the Republic of South Africa. In terms of this act, all South Africans have a right Shadrack Mkhonto, Compensation Fund to social security. The Commissioner Compensation Fund is then mandated to provide social security to all injured and diseased employees. Vision To be an employer of choice and an internationally reputable provider of compensation for occupational injuries and diseases, rehabilitation and reintegration services. Mission • To utilise and leverage automated solutions Legislative mandate The Compensation Fund is a public entity of the Department of Labour. The Fund administers the Compensation for Occupational Injuries and Diseases Act (130/1993 as amended by the COIDA 61/1997). The main objective of the act is to provide compensation for disablement caused by occupational injuries, or diseases sustained or contracted by employees, or for death resulting from such injuries or diseases, and to provide for matters connected therewith. to provide efficient, quality, client-centric and accessible Compensation Fund services • To ensure effective rehabilitation and reintegration services, through reputable programmes • To ensure financial viability through efficient collections and prudent investments • To promote job-creation initiatives through socially responsible investments • To develop and retain a competent and content workforce Values • Treating employees with care, dignity and • Respecting and promoting client-centred respect services, accountability, integrity and ethical behaviour • Learning and development • The Batho Pele principles • The principles of the department’s service charter The department inculcates these values through its performance management system. The Fund generates its revenue from levies paid by employers, which consist mainly of annual assessments paid by registered employers on a basis of a percentage or fixed rate of the annual earnings of their employees. The Compensation Description of main services for Occupational Injuries and Diseases Act, • Payment of reasonable medical expenses to the injured employees however, makes provision for a minimum assessment to ensure that the assessment is • Payment of Temporary Total Disablement not less than the administration costs incurred. (TTD) for loss of earnings when the employee EASTERN CAPE business 2013 158 PROFILE was not working due to injury sustained on duty • Payment of Permanent Disablement (PD) who sustained up to 30% PD • Payment of monthly pension to the employee more than 30% PD • Payment of monthly pension to widow/ widower and children up to 18 years of age Compensation for Occupational Injuries and Diseases Act To provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases, and to provide for matters connected therewith. Department of Labour staff with a recipient of the Compensation Fund. Application The Compensation for Occupational Injuries and Diseases Act applies to all employers and their casual and full-time workers who, as a result of a workplace accident or workrelated disease: • Are injured, disabled or killed • Become ill This excludes: • Workers who are totally or partially disabled for less than three days • Domestic workers • Anyone receiving military training • Members of: °° The South African National Defence Force °° The South African Police Service °° Any worker guilty of willful misconduct, unless they are seriously disabled or killed °° Anyone employed outside of South Africa for 12 or more continuous months °° Workers working mainly outside of South Africa and only temporarily employed in the country The full act can be read online at: https://www.labour.gov.za All forms required when registering with the fund, and when applying for compensation, can be found online at: https://www.labour.gov.za Programmes/projects/initiatives The department is embarking on the following projects in order to increase the efficiency of its services: • Decentralisation of services aimed at ensuring that the fund’s services are easily accessible to clients and stakeholders • Restructuring of the fund to ensure that service delivery is improved • Development of the Rehabilitation, Re-integration and Return-to-work Policy for employees who sustained occupational injuries and/or contracted diseases • Proposal to amend the Compensation for Occupational Injuries and Diseases Act (COIDA) Benefits of registration Employers Employers are protected against civil claims if employees get injured on duty or contract occupational diseases. Employees Employees who are injured on duty or who contracted occupational diseases can claim compensation for temporary or permanent disablement according to the degree of disablement and death. Reasonable medical aid expenses arising out of an injury on duty are payable for a period EASTERN CAPE business 2013 159 PROFILE of two years, or longer if further medical treat- from their employer and take it to the doctor ment is needed, and if it will reduce the extent when they go for a visit. After the doctor has of the disability. filled in the form, workers must take it back to their employer. Workers must take any other Assessments forms the doctor gives them to their employer. An assessment is the annual payment which is paid by the employers to the Compensation Step 3: Keep in touch with the employer Fund to cover employees who are injured Workers must let their employers know when at work. their address changes and keep in touch with • The revenue of the fund consists mainly them. Workers’ compensation will be sent to of annual assessments paid by registered their employer’s address, so it is important that employers on the basis of a percentage of their employer can find them. If employers do the annual earnings of their employees. The not send in the forms or the claims are taking rate is fixed per industry subclass. an inordinate time to be processed, workers must contact the nearest labour centre and Entities liable for registration report it. • All employers who employ one or more parttime or full-time employees must register Contact details with the Compensation Fund. • A separate registration is necessary for each Key personnel: separate branch of a business, unless an Shadrack Mkhonto, Compensation Fund arrangement for combined registration has Commissioner been made. • An employer should register with the Key contact people: Compensation Fund within seven days after Dikentsho Seabo, Deputy Director: the first employee was employed. Communication Themba Mdluli, Assistant Director: Claiming compensation – workers Communication When workers want to claim they must use the Philly Molonyama, Communications Officer following steps: Tel: +27 12 319 9443/112/123 Step 1: Fill in the form Email: firstname.lastname@example.org Workers must report their injury or disease to Email: email@example.com their supervisor or employer immediately. Their Physical address: cnr Hamilton Street and employer must report it to the Compensation Soutpansberg Road, Arcadia, Pretoria Fund and send in the necessary forms. Postal address: PO Box 955, Compensation House, Pretoria 0001 Step 2: Get forms from the doctor Website: www.labour.gov.za Workers must get the W.Cl.2 or W.Cl.1 form EASTERN CAPE business 2013 160 listings Department of Labour – Compensation Fund A guide to the key provincial contact people in the Department of Labour’s Compensation Fund, which is related to the Compensation for Occupational Injuries and Diseases Act (COIDA). Eastern Cape Tamsanqa Mgudane Assistant Director: COIDA Tel: +27 43 702 7525 Cell: +27 82 383 8111 Limpopo Jacob Mpulwane Assistant Director: COIDA Tel: +27 15 290 1699 Cell: +27 82 886 6396 Free State Anne-Marie Marais Assistant Director: COIDA Tel: +27 51 505 6248 Cell: +27 82 902 6910 Mpumalanga Lerato Ramashobane Assistant Director: COIDA Tel: +27 13 655 8725 Cell: +27 82 908 2740 Gauteng: Johannesburg Patricia Mafata Assistant Director: COIDA Tel: +27 11 853 0478 Northern Cape Carol-Anne Dipico Assistant Director: COIDA Tel: +27 21 441 8054 Cell: +27 82 743 0848 Gauteng: Pretoria Boipelo Derane Assistant Director: COIDA Tel: +27 12 309 5062 Cell: +27 78 801 1151 North-West Tsholo Esiang Assistant Director: COIDA Tel: +27 18 387 8143 Cell: +27 82 908 1943 KwaZulu-Natal Nomfi Cweba Assistant Director: COIDA Tel: +27 31 366 2033 Cell: +27 82 887 3154 Western Cape Thozama Ngonyama Deputy Director: Business Services – Compensation Commissioner Tel: +27 21 441 8054 Cell: +27 82 438 6975 161 eastern cape business 2013 listings Eastern Cape Provincial Government A guide to the Eastern Cape’s provincial departments and their MECs. Visit www.ecprov.gov.za Office of the Premier Premier: Noxolo Kiviet Physical address: State House, Independence Avenue, Bhisho 5605 Postal address: Private Bag X0045, Bhisho 5605 Tel: +27 40 609 6626 Fax: +27 40 639 1419 Email: firstname.lastname@example.org Website: www.ecprov.gov.za Provincial Planning and Finance MEC: Phumulo Masualle Physical address: Provincial Treasury, Tyamzashe Building, Bhisho 5605 Postal address: Private Bag X0029, Bhisho 5605 Tel: +27 40 609 5755/5014 Fax: +27 40 639 1030 email@example.com Website: www.ectreasury.gov.za Economic Development and Environmental Affairs MEC: Mcebisi Jonas Physical address: 2nd Floor, Beacon Hill, Hockley Close, King Williams Town 5600 Postal address: Private Bag X0054, Bhisho 5605 Tel: +27 43 605 7183 Fax: +27 43 605 7306 Email: firstname.lastname@example.org Website: www.dedea.gov.za Health MEC: Sicelo Gqobana Physical address: Dukumbana Building, Independence Avenue, Bhisho 5605 Postal address: Private Bag X0038, Bhisho 5605 Tel: +27 40 608 1114 Fax: +27 40 608 1118 email@example.com Website: www.ecdoh.gov.za Education MEC: Mandla Makupula Physical address: Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha Postal address: Private Bag X0032, Bhisho 5605 Tel: +27 40 608 4202 Fax: +27 40 608 4247 Email: firstname.lastname@example.org Website: www.ecdoe.gov.za EASTERN CAPE business 2013 Human Settlements MEC: Helen Sauls-August Physical address: 31-33 Phillip Frame Road, Waverley Park, Chiselhurst, East London Postal address: Private Bag X31008, Cambridge, East London 5206 Tel: +27 43 711 9777 Fax: +27 43 711 9785 email@example.comfirstname.lastname@example.org Website: http://echousing.ecprov.gov.za 162 listings Local Government and Traditional Affairs MEC: Mlibo Qoboshiyane Physical address: Tyamzashe Building, Room 2124, Second Floor, Bhisho 5605 Postal address: Private Bag X0035, Bhisho 5605 Tel: +27 40 609 5231 Fax: +27 40 639 2135 Email: email@example.com Website: www.ecprov.gov.za Private Bag X0057, Bhisho 5605 Tel: +27 43 711 9777 Fax: +27 43 711 9785 Email: firstname.lastname@example.org Website: www.safety.ecprov.gov.za Social Development and Special Programmes MEC: Pemmy Majodina Physical address: cnr Hockley and Hargreaves streets, Beacon Hill, King Williams Town 5600 Postal address: Private Bag X0039, Bhisho 5605 Tel: +27 43 605 5010 Fax: +27 43 605 5472 email@example.com Website: www.socdev.ecprov.gov.za Public Works and Roads MEC: Thandiswa Lynette Marawu Physical address: No 5 Qasana Building, Independence Avenue, Bhisho 5605 Postal address: Private Bag X0022, Bhisho 5605 Tel: +27 40 609 4648 Fax: 086 298 5598 (SA) Email: firstname.lastname@example.org Website: www.dpw.ecprov.gov.za Sport, Recreation, Arts and Culture MEC: Xoliswa Tom Physical address: Wilton Zimasile Mkwayi Building, 5 Eales Street, King Williams Town 5600 Postal address: Private Bag X0020, Bhisho 5605 Tel: +27 43 604 4101 Fax: +27 43 642 6759 Email: email@example.com Website: www.ecprov.gov.za Rural Development and Agrarian Reform MEC: Zoleka Capa Physical address: Dukumbana Building, Independence Avenue, Bhisho 5605 Postal address: Private Bag X0040, Bhisho 5605 Tel: +27 40 609 3472 Fax: +27 40 636 3462 firstname.lastname@example.org Website: www.agr.ecprov.gov.za Transport MEC: Thandiswa Lynette Marawu Physical address: Stellenbosch Park, Flemming St, Schornville, King Williams Town 5601 Postal address: Private Bag X0023, Bhisho 5605 Tel: +27 43 604 7414 Fax: 086 298 5598 (SA only) Email: email@example.com Website: www.ectransport.gov.za Safety and Liaison MEC: Helen Sauls-August Physical address: Old Commissioner Building, Independence Avenue, Bhisho 5605 Postal address: 163 Eastern Cape business 2013 focus A better Eastern Cape for all The Eastern Cape Provincial Government has set itself eight main priorities to guide it in its work. T he following pages go into great detail regarding the plans and strategies that have been put into place to overcome challenges and achieve the provincial government’s eight priorities. These priorities are in line with the national priorities, but specifically focused on the Eastern Cape environment. Priorities of the provincial government 1. Speeding-up growth and transforming the economy to create decent work and sustainable livelihoods 2. Building social and economic infrastructure 3. Rural development, agrarian reform and infrastructure 4. Strengthening education and building a skills and human-resources base 5. Improving the health profile of the province 6. Intensifying the fight against crime and corruption 7. Building a developmental state, improving the public services and strengthening the democratic institutions 8. Building cohesive, caring and sustainable communities The Office of the Premier plays a key role in coordinating strategy. The office has initiated policies that will assist in the implementation of the Provincial Strategic Framework. These policy imperatives include the following: • The establishment of the Provincial Planning Commission • Continuous updating of the Provincial Strategic Framework • Updating of the Provincial Growth and Development Plan • Finalisation of the re-engineering process of the Office of the Premier Livelihoods depend on job-creation. Building caring communities is key. • Strengthening of the implementation • • • • • www.ecprov.gov.za eastern cape business 2013 164 photos: phillip mostert (children) and Charlie fawell (workmen) of the Performance Management and Developmental System The Attraction and Retention Strategy Provincial Human Resources Development Strategy and the Human Resources Development Model Coordination and monitoring implementation of the new Rural Development Framework Overseeing accelerated implementation of the Provincial Inter-Governmental Relations Strategy Leading the development of and coordinating implementation of a Provincial Stakeholder Engagement Framework. message Creating sustainable livelihoods through policy changes The MEC for Economic Development and Environmental Affairs Mcebisi Jonas has implemented policy changes to combat the ‘triple crisis’ regarding energy, the economy and the environment. for a long time to come. They also pose the most compelling opportunities available to our province since the advent of democracy. Economic crisis The global financial crisis of 2008 precipitated a full-blown global economic crisis from which the world economy is struggling to recover. Towards the end of 2011, Oliver Blanchard, chief economist at the International Monetary Fund (IMF), issued a gloomy outlook statement, noting that economic recovery in advanced economies is at a standstill. He suggested that prospects for 2012 may be even worse than 2008. The need for developed European economies to be ‘bailed out’ is an indication of the severity of the ongoing crisis. While the consensus is that South Africa’s sound macro-economic policies shielded us from the brunt of the initial crisis, we are finding it difficult to manage the sustained onslaught of the crisis. Signs of the growing negative impact of sluggish economic recovery on the country can be seen in growing inequality, deindustrialisation, and mass unemployment. Each of these is amplified at the provincial level. It is these manifestations of the economic crisis that this policy seeks to address. Mcebisi Jonas W e must acknowledge that the impetus for the department’s plans lies in the existence of the ‘triple crisis’, a term which describes the global coincidence of the financial or economic crisis, the climate change or environmental crisis, and fuel or energy crisis. Together, these three crises conspire to undermine our efforts to eliminate poverty and increase general prosperity, not just now, but Environmental crisis The second crisis is precipitated by the effects of human activity, resulting in pollution and increased greenhouse-gas emissions, generally referred to as climate change. We regard climate change as one of the greatest threats to sustainable development, with the potential to undermine many of the positive advances made in meeting our development goals. The population of the Eastern Cape, as a microcosm of South Africa, is exceptionally vulnerable to climate change because so many of our citizens already live in poverty, carry a high disease 165 EASTERN CAPE business 2013 message From an economic perspective, the provincial government’s role must be enhanced and carefully tempered to ensure both progress and sustainability. We will continue to direct public infrastructure investment, which creates substantial short-term construction jobs, provides a basis for the retention of existing industrial jobs, and attracts new investment, which creates new susEnergy crisis tainable jobs in the future. Closely linked to the first two crises is the energy crisis. Con- We believe that our focus on tinued dependence on energy supplies such as cheap oil, coal economic infrastructure will and wood, is unsustainable. Not only are resources finite, but reverse the current disadvantheir associated emissions contribute directly to climate change. tages to productive enterprise posed by outdated, inefficient and inadequate transport, logistics, energy supply and In exploring the implications of the ‘triple crisis’ for our communications networks. province, we must keep in mind that, ultimately, we The automotive industry is are charged with leading the Eastern Cape along a central to our industrialisation path to sustainable development. efforts because it provides a basis from which to broaden — Mcebisi Jonas our manufacturing industry into other complex manufacturing assembly subsectors, The dilemma for developing economies is that industrial growth such as aerospace and ship is traditionally powered by fossil fuels. Alternative, more efficient components. We are therefore and renewable sources of energy are relatively more expensive, delighted by recent announceas technologies are new and more difficult to access, posing a ments regarding major new capital investments by the industry. potential obstacle to economic development. Responding to companies To meet the demand of a growing economy while reducing greenhouse gas emissions, we must fundamentally transform impacted by the economic the way we power our economy. This transformation will require crisis remains a key aspect sustained, society-wide, concerted effort. of our work. In 2009, Nedlac drafted a ‘Framework for SA’s Response to the International The way forward Economic Crisis’, providing a In 1987, the World Commission on Environment and Develop- platform from which we conment defined sustainable development as ‘development that tinue to support a number of dismeets the needs of the present without compromising the tressed companies to access the ability of future generations to meet their own needs’. Development Bank of Southern In exploring the implications of the ‘triple crisis’ for our prov- Africa’s (DBSA’s) Jobs Fund or ince, we must keep in mind that, ultimately, we are charged with our own Provincial Job Stimulus leading the Eastern Cape along a path to sustainable development. Programme, and assisting others EASTERN CAPE business 2013 burden and are subjected to inadequate housing infrastructure in climate-vulnerable locations. This is worsened by already low and variable rainfall, which affects agricultural outputs related to food security and local livelihoods. Over and above climate change, the depletion of plant and animal species due to changes in land-use patterns is a growing problem. If we continue to encroach on natural habitats to extract fuel and building materials, or allow illegal trade in protected species to go unchecked, the consequences for future generations will be dire. It is clear that our policy must be decisive in addressing climate change and in protecting the biodiversity of the province. 166 message with a range of structural and relational improvements. In addition to saving more than 2 000 jobs under this initiative, we have learned many useful lessons, two of which are particularly encouraging. Firstly, the cluster approach adopted for the auto industry emerged from these efforts, and is a model we plan to adopt for supporting the agri-processing industry in the future. Secondly, we will develop a replicable support model to rescue, stabilise and grow companies. The blueprint for the model is the successful consolidation work done with Foodcorp in Molteno, where 300 jobs have been saved and the potential for 100 new jobs created; Foodcorp has committed R50-million to a new plant, converting the old plant into a national distribution centre. The department is facilitating water treatment and electricity upgrades from the relevant utility providers; and the Industrial Development Corporation (IDC) and the Department of Trade and Industry (dti) are working on incentive support packages. An industrial jobs incentive scheme has been successfully piloted. Just over R12-million has been disbursed to 19 qualifying companies. A little more than 1 200 jobs were thus created, mainly in agriculture and business process outsourcing. • A rural agri-industrialisation project worth R140-million • An agri-logistics project, involving cold storage facilities, with • A new forestry and rehabilitation project, together with Sappi, and trade skills for major infrastructure projects across the province and costing R100-million • An automotive incubator programme We believe that the establishment of an integrated steel plant in the Eastern Cape would dramatically change the economic landscape and job creation possibilities of our province. In the coming year, this project will be subjected to detailed viability and planning processes, hopefully drawing in the IDC and other agencies. Since 2010, the department has been leading the province’s special focus on major infrastructure projects. The department and Transnet have signed a collaboration agreement. This lays the foundation for joint planning of priority projects, which is already yielding positive results. Since opening the two-berth Ngqura Container Terminal in 2009, Transnet has successfully grown container import, export and transshipment volumes. There is now significant interest by shipping lines to use the port as a container transshipment hub, infrastructure will be expanded and additional rail capacity is to be provided on the Gauteng corridor. Second, a decision has been made to proceed with the manganese export corridor from the Northern Cape to Ngqura, and this provides a basis for major investments at Coega in minerals processing. The total project cost is R18-billion. Third, the East London harbour is being upgraded at a cost of R2.3-billion to improve the auto-logistics platform, expand container handling and provide for coal exports. Fourth, SANRAL are busy with major upgrades on our national roads, notably the N2 and N6. The upgrade of Mthatha as a logistics hub is well underway. Fifth, Elitheni Coal has commenced mining near Indwe, approximately 240km from the port of East London. It is estimated that for every million tons of export-coal produced per annum, 500 direct jobs are created. Sixth, we are encouraged by Eskom’s commitment to invest R2.5-billion worth of transmission and distribution infrastructure in our province in 2012-13. Finally, we welcome the decision of the Presidential Infrastructure Co-ordinating Commission to prioritise the development of the Mzimvubu water resources. The total project cost is R20-billion. an estimated cost of R200-million • A skills development project at Coega to provide artisan Hans Merensky and PG Bison costing R230-million Strategic projects We are pleased to announce that the DBSA has approved in principle five major projects in the Eastern Cape: www.dedea.gov.za 167 EASTERN CAPE business 2013 message Fostering a healthy learning environment MEC for Education Mandla Makupula is focused on the Provincial Government’s key priorities of strengthening education, and building a skilled resource base. our unwavering commitment to rid the education system of these challenges. As a result of this awareness, we instituted a turnaround plan for education as far back as 2010, which has now been augmented by the implementation of an intervention in terms of section 100(1)(b) of the Constitution. As part of this intervention, a joint committee of Ministers and MECs is currently overseeing the implementation of identified priority areas. We will continue to improve our monitoring of the turnaround plan, while at the same time we will be consciously building a broad social partnership towards a common education agenda. We took the first steps towards this common education agenda in February 2012, when we signed an agreement with the Congress of South African Trade Unions (COSATU) affiliated public sector unions. Among other things, this agreement says: ‘The parties recMandla Makupula ognise that the unions have a critical role to play in solving these challenges. The trade union movement commits to help improve the quality of service to our people. Accordingly, the unions have made a commitment to cultivate a new spirit among trade unions and workers in general. A new ethos based on the principles of Batho Pele is desperately needed in the province, in order to change the ethos inherited from our painful past. e proceed from an In this regard, the unions embrace the quality of learning and understanding that teaching campaign and basic education accord.’ The agreement also responds to our concern for the 0.2% education is a tool for breaking the cycle of decline recorded in the matric pass rate for 2011. However, we poverty and underdevelop- have noted with appreciation the improvement in the Eastern ment. To this end, the task of Cape’s Grade 3 performance in literacy and numeracy, recorded strengthening education and in the Annual National Assessment 2011, as compared to the building a skills and human 2007 evaluation. We will intensify the programme to improve resources base remain our literacy and numeracy in primary education. critical priorities. We are also Notwithstanding the challenges we have referred to, a number of acutely aware of the constant service delivery areas in education are showing signs of improvechallenges that are faced by ment. We have stabilised key education support areas such education in the province. as scholar transport and school nutrition. Stationery was also However, I would like to assure delivered timeously to all schools for the 2012 academic year. the citizens of this province, By the end of January 2012, all schools had been provided and the country at large, of with textbooks and workbooks. W EASTERN CAPE business 2013 168 message The School Nutrition Programme has benefitted 1.6 milllion learners thus far. We improved the functioning of scholar transport by transferring the function from the Department of Education to the Department of Transport ,with effect from July 2011. For the current financial year, 56 461 learners are being transported to 614 schools throughout the province. The school nutrition programme was decentralised to schools, and as a result, parents are now playing a more active role in the provision of school nutrition in schools. This has seen more than 1.6 million learners in quintiles 1, 2 and 3 in 5 132 schools benefiting from the programme in the current financial year. With respect to post provisioning, 64 752 posts were timeously declared by the MEC at the end of September 2011. To address the immediate need in the classroom, a total of 305 educators were appointed and deployed to various critical school subject posts in Grades 10-12 between August and December 2011. The process of identifying and placing educators that are additional to their school post establishments has started. On the implementation of the Learner Attainment Improvement Strategy, we resolved to pay particular attention to poor performing schools and districts from the 2012 school year onwards. To this end, we are focusing on strengthening the management and administrative capacity and systems at schools and in the districts, as well as building adequate levels of monitoring and support. We remain equally committed to improving the state of education infrastructure. Therefore, in partnership with National Department of Basic Education, we are targeting unsafe schools through the Accelerated Schools Infrastructure Delivery Initiative programme. To this end, 49 schools have been handed over to contractors, and construction began in January 2012. In terms of the budget, the Department of Education was allocated R26.2-billion in 2012/13, totaling R83.1-billion over the Medium Term Expenditure Framework, to continue with the rollout of: • The School Nutrition Programme, which is benefiting 1.6 million children in quintiles 1, 2 and 3 • The funding of schools to assist them in achieving ‘norms and standards’ photo:anglo american 169 EASTERN CAPE business 2013 message Numeracy and literacy among Grade 3s has improved in the province. • The funding of ‘no-fee’ schools, which is currently at 80%, far above the national target of 60% • Learner and teacher support material (with the proviso that textbooks and support materials must reach the classroom on time and cost-effectively) • Implementation of the 2012 post provisioning, which allocates 35% of the educators of funded posts in remote and rural areas • R1-billion for building and renovating schools for the year 2012/13 SETAs (Sector, Education and Training Authorities), the private sector and local universities to develop the strategic skills required by the Eastern Cape economy. Furthermore, departments in the province are providing specific bursaries with regard to their mandate and provision of scarce skills in their line function areas. In response to the challenges Skills and training experienced at Walter Sisulu The province will implement support programmes targeting University, we are improving our unemployed youth so that they can gain skills in order to sup- support, and a team of five MECs port our objective of growing the economy. This will include the is working with the leadership Strategic Skills Project where unemployed youth are enrolled in of that institution to resolve learnership and apprenticeship programmes. We are pleased to these challenges. We are also report that provincial government has signed a Memorandum supporting the intended investof Understanding worth R20-million with the Manufacturing, ment by the National DepartEngineering and Related Services Sector Education and Training ment of Health in improving Authority (merSETA) to implement learnerships and apprentice- the quality of and expanding ships in various centres of the province. the School of Medicine at the The province has also entered into partnerships with some Walter Sisulu University. EASTERN CAPE business 2013 170 photo:anglo american message Strategic interventions to change face of Eastern Cape The Eastern Cape Provincial Treasury is prioritising the speeding up of economic growth and the transformation of the economy to create decent work and sustainable livelihoods, as MEC Phumulo Masualle explains. We have done a thorough diagnosis of our infrastructure delivery model, and are putting new systems in place to streamline operations. Key to this is the establishment of a Centralised Project Management Unit (CPMU) in the Department of Roads and Public Works. This will be complemented by the accelerated development of infrastructure skills as per the national Infrastructure Delivery Improvement Plan (IDIP). Treasury is also increasing its oversight and monitoring capacity to address bottlenecks. The Executive Council has also established a Provincial Planning Commission to provide the provincial administration with a policy map that will maximise the developmental potential of the Eastern Cape. The Provincial Government is committed to working together with the private sector and other partners to create jobs in six priority areas: infrastructure development, agri-processing, metals Phumulo Masualle beneficiation, manufacturing, the green economy and tourism. Over the Medium Term Expenditure Framework, the Treasury will be focusing its efforts on the following priorities: • The Treasury has been enforcing compliance with the accountability model to ensure that appropriate and corrective action is taken by departments against officials that are non-compliant. • The focus is on the identification of resources that can be s a province, we have better utilised for improved service delivery in the province. recovered well from a Departments need to reprioritise their expenditure in order negative 4.2% in the to find savings and ‘excess’ money that can be redirected to second quarter of 2009, to posservice delivery. itive 3% growth in the fourth • The Treasury will implement a targeted, streamlined and dediquarter of 2011. Our economic cated hands-on support programme at district municipal level growth is forecast to rise to improve financial management and service delivery. to 3.8% in 2013, 4.1% in • The Treasury will implement the centralisation of creditor pay2014 and 4.4% in 2015. By ments through Basic Accounting Systems (BAS) and daily and 2016, we expect growth rates monthly reporting of the outcome of cash-management pracupward of 5%, as the bentices of departments with a view to maintaining fiscal discipline. efits of our massive capital • Public entities play an essential role in the delivery of services injection in ports, rail, road and and therefore it is important that their priorities are aligned to energy infrastructure begin to the Provincial Government, and operate under good corporate governance arrangements. yield returns. A 171 EASTERN CAPE business 2013 message Increased spending on staff and infrastructure Health MEC Sicelo Gqobana gives details of his department’s progress in realising the provincial government’s priorities, in particular with regard to improving the health of Eastern Cape citizens. T than R750-million – despite our budget having a negative growth over the past two years. This is a sign that demonstrates our commitment to improving financial management in the department. The government declared 2012 the ‘Year of Action’, and we have taken decisive actions in some areas. We have acted against those managers who demonstrated a laissez faire approach to management and put our people at risk. We have also engaged some medically-trained managers to take up their clinical duties in the health facilities. I have travelled the length and breadth of this province visiting patients in our hospitals to determine for myself the patients’ levels of satisfaction with our service. We moved from a position of despair to one where our people have accepted our honest intentions and begun to recognise the work we are doing. Our government has prioritised health and education as Sicelo Gqobana critical social services, the latter for its role in the liberation of the masses of this country from poverty. The department remains, despite its fiscal constraints, committed to the education and training of health professionals. In the healthcare sector, we believe that education is for the liberation of our people from the non-provision of quality healthcare. Our focus he Eastern Cape Depart- is on preventive healthcare. ment of Health has made The department has increased its investment in education progress with the recent and training. There were 304 bursary graduates in 2011 in the achievement of a qualified medical field and other health professions. A total of 1 352 audit opinion in the Auditor candidates were financially assisted by the department during General’s report. It is a wel- the 2011 academic year. The department has a R450-million come improvement from the budget dedicated to health training and education. perennial disclaimer reports The 2012 academic year’s number of existing bursary holders we have had in the past, and is 1 528. Our current medical student population studying in we are planning to improve Cuba stands at 112. and get unqualified opinions. Our own Lilitha College of Education is the second-largest We have reduced the budget nurses’ training college in South Africa, and will be the largest deficit from R2.8-billion to less if the new campuses are approved by the South African Nursing EASTERN CAPE business 2013 172 message directed at the communities, both receivers and coproducers of the health system, through their shaping of the outcomes of our system. Through the social compact model, we continue to engage our communities, assigning specific roles they need to play in shaping our PHC. The other area of our focus relates to the building of specialist teams – for instance, ward-based PHC teams. In the new year, 26 additional PHC teams will be established and 7 500 households will be visited and registered. School health teams will be established to visit identified schools and focus on eye and hearing care, immunisation, contraceptives and reproductive health. District specialist teams will be formed per district and their focus will be on the improvement of maternal and child health services. We have set aside R60.8-million for the district specialist teams. The department has allocated R450-million of its budget to healthcare training and education. Council (SANC). We had 1 175 graduates at the end of 2011, and the student population in the five campuses throughout the province now stands at 3 671. Twenty professional nurses have been recruited from the clinical facilities across the province and put on a one-year nursing education programme. Our focus is on expanded training of nursing programmes through the reopening of Fort Beaufort, Elizabeth Donkin and Cecelia Makiwane satellite centres. We will also reopen the following satellite venues to offer sub-professional, bridging and one-year midwifery programmes: Andries Vosloo, Midlands, Settlers, Holy Cross, Cala and Bhisho. An amount of R14.6-million has been set aside for the upgrade Effective hospital services and maintenance of nursing colleges. Our contribution to creating decent work, in line with govern- One of the challenge areas ment’s focus on growing the economy, is demonstrated through has been poorly functioning the employment of 5 269 clinical staff, as well as administrative hospitals. The Hospital staff. We have achieved a net gain of 1 014 medical officers Management Policy has and 143 specialists. provided guidelines on the The Emergency Medical Services employed 288 interns, who strengthening of hospital serwere placed in maternal obstetric units to reduce the number of vices, focusing mainly on the maternal and infant mortalities. The department also employed type of management that will 64 call-centre interns and 22 people with disabilities to man lead these facilities. the Provincial Disaster Management and Emergency Services Revenue generation and call-centre. differentiated amenities This is a prerequisite for Strengthening our health system National Health Insurance Primary Health Care (PHC) system (NHI) and Exco has approved The sound foundation of any health system will always this. Treasury now needs be based on a strong PHC system. Our investment is also to come up with a vehicle 173 EASTERN CAPE business 2013 message to financially manage this intervention. Quality health service and the core standards There is a concerted effort to improve the quality of hospital services through the national norms and standards, and this is also in line with preparing these institutions for NHI readiness. Emergency medical services The department has dedicated obstetric ambulances to be stationed in our midwifery obstetric units to ensure quick responses to emergencies. Already, we have 36 ambulances stationed in these hospitals, and our target is for all hospitals that do caesarean sections to have an obstetric ambulance. Infrastructure programme For the first time in 17 years, all the infrastructure money has been fully committed to major infrastructure projects. The haematology project in Port Elizabeth Hospital is progressing well. This project will make the Eastern Cape Province the third stem-cell-transplantation unit in the country. Similarly, both oncology services in Frere and Livingstone hospitals are on track. Over the 2012 Medium Term Expenditure Framework (MTEF) period, the department will spend R3.6-billion on its health infrastructure programme. Of this amount, R1.3-billion will go towards hospitals under the hospital revitalisation programme, to fund the major infrastruc. tural upgrades of the following health facilities: • Cecelia Makiwane Hospital • St Patricks Hospital • Frontier Hospital • St Elizabeth Hospital • Madwaleni Hospital The year 2012 was earmarked to be a starting period for the piloting of the National Health Insurance (NHI). To this extent, OR Tambo has been earmarked for this pilot and the infrastructure programme is putting aside a minimum of R29-million as a top-up to the general maintenance and refurbishment and upgrade infrastructural work to be conducted in the affected facilities. Water treatment remains one of challenges facing health facilities, especially in rural areas. We have set aside an amount of R96-million that will be spent on water and sanitation projects at various levels of service within the health sector. Tuberculosis (TB) still remains a threat to people’s healthy life styles. It is for this reason that the infrastructure programme will invest no less than R50-million in TB facilities. In line with our conscious decision to ensure functional hospital services, more than R200-million was set aside to deal with all the infrastructural requirements of the affected facilities in our Rationalised Service Delivery Platform. Eight facilities have received refurbishment or upgrades and a further 15 clinics will be refurbished in the coming financial year. In line with the HIV and Aids policy and the President’s announcement in December 2009, national government has set targets for the HIV Counselling and Testing Campaign. Of the two million set by the Minister, our current number achieved is close to 1.3 million. The department has planned to initiate an additional 82 000 people for antiretroviral (ART) services, and ensure 250 000 beneficiaries of home-based care services are reached. The number of nurses initiated on the management of ART has risen to 1 800. The number of fixed public facilities providing ART in the province has risen from 490 to 784, and the number of patients on ART is 179 000. Over R1-billion has been set aside for the HIV and Aids and TB Programme. On the TB front, we will roll-out the Community-based TB Model, a project that was pioneered with KwaZulu-Natal. As part of this project, the department is focused on increasing the TB cure rate and the stabilising the HIV infection rate. As part of the roll-out, six facilities will be renovated to ensure multidrug-resistant (MDR) TB patients are initiated within 48 hours and follow-up reviews take place at the facilities. EASTERN CAPE business 2013 174 message Great strides in housing provision MEC for Human Settlements Helen Sauls-August aims to build cohesive, caring and sustainable communities through targeted programmes. has been the adoption of the Freedom Charter in 1955, which has reached its 57th anniversary. We approach this historic occasion understanding that the Charter remains relevant to our vision of providing integrated and sustainable settlements. Its housing clause states without any equivocation: ‘There shall be houses, security and comfort for all... All people shall have the right to live where they choose, to be decently housed, and to bring up their families in comfort and security. Slums shall be demolished and new suburbs built, where all shall have transport, roads, lighting, playing fields, crèches and social centres’. Therein lies the founding philosophy, strategy, vision and practicality of Human Settlements. Helen Sauls-August Achievements The provision of quality houses and related services remains a critical element in building sustainable human settlements. In this regard, we are please to report that, so far, a total of 8 303 houses have been completed, while a further 7 870 are currently at various advanced levels of construction. Furthermore, 2 397 units have been rectified as part of the national rectification pilot for the current financial year. Going forward, we will strengthen coordination within the housing sector, respond to housing needs of military veterans and improve the coordination of sanitation provision in the province. We appreciate the fact that our social housing initiatives such as the Emerald Skies and Reservoir Mews continue to attract national attention as demonstrated in the many delegations that visit the province in order to learn about the projects. The Department of Human Settlements has been allocated R2.5-billion for 2012/13, totaling R8.2-billion over the Medium Term Expenditure Framework (MTEF). It shall be disbursed as follows: • Focused spending on informal-settlement upgrading, rural development (Integrated Rural Housing Programme), A s the people of the Eastern Cape, the heartland of the ANC, celebrated the centenary in 2012 in various forms, so the department we will join them – profiling and celebrating the work of the department, defining our small steps and also displaying our commitment to improve, with the ultimate goal of nurturing a caring government. Among the many achievements of the ANC – one that stands out as relevant to our human settlements environment 175 EASTERN CAPE business 2013 message In September 2012, 200 Elliotdale residents received new homes as part of the multi-million rand integrated human settlements programme. affordable rental and social housing, and the supply of affordable housing finance • A large portion of the Human Settlements Grant will be spent on the completion of over 50 000 housing units • The Urban Settlements Development Infrastructure grant will target improving bulk infrastructure in our metros, namely Buffalo City Metro and Nelson Mandela Bay Metro • Projects in Ezibeleni, Cradock and Middelburg commenced in 2012 • The Mount Ayliff Urban Regeneration Project, which will be completed in December 2012 The eradication of informal settlements in the province continues to be our priority programme. The Duncan Village Redevelopment Initiative (DVRI) has been escalated into a Presidential Project and is a multi-year project. In addition, a multi-purpose community centre will be constructed in the DVRI in the 2012/13 financial year. More than 30% of engineering services have been completed in Siyanda under Mnquma Municipality, while approval for the construction of top structures has been granted. The King Sabata Dalindyebo Presidential Project is progressing well and planning processes for 6 600 housing units have been completed through funding made available by the department. Two multi-purpose community centres are also planned for the 2012/13 financial year. At Thornhill (Ndlambe), 509 housing units for the Breaking New Ground (BNG) programme have been completed and handed EASTERN CAPE business 2013 over to beneficiaries, but this project cannot proceed to the next phase due to bulk challenges which we are addressing. In this project, one multi-purpose community centre will also be implemented in the 2013/13 financial year. In Elliotdale, most of the implementation challenges have been overcome and the project is now progressing fairly smoothly, with 65 housing units completed under the first phase of the project against a target of 200, utilising the ePHP (Enhanced People Housing Process) approach. The second phase of the project, comprising 800 units, will be constructed in 2012/13, utilising an established contractor managed by the Development Bank of Southern Africa, as well as one multi-purpose community centre. 176 photo: anglo american message The Zanemvula housing project continues to take the lead in our BNG projects, with 4 695 housing units completed and handed-over to beneficiaries. In addition, within the Zanemvula project we constructed a multi-purpose community centre. This centre is the first to be completed in the country, and serves as a benchmark for other municipalities and provinces. In the coming financial year another multi-purpose community centre will also be constructed in the Chetty area. Currently, a temporary school is in operation (built by the Department of Education). There is also a plan to build a clinic by the Nelson Mandela Metropolitan Municipality. Despite the challenges we are experiencing in our BNG projects, including lack of integration with other social ammenities, bulk infrastructure, land disputes and difficult terrain; these BNG projects are nevertheless progressing well. In line with the key elements of integrated human settlements, the department is embarking on a drive to provide other amenities and services to our projects. We have already provided greening (tree planting and grass planting), landscaping, rain water tanks, vegetable gardening and beautification of public spaces to five projects, and this drive will continue in earnest in the 2012/13 financial year, where 15 projects will be targeted. In terms of meeting our objective of more efficient land utilisation for human settlements development, the department had, in the 2011/12 financial year, surpassed its target of acquiring five land parcels, by securing seven land parcels yielding almost four million hectares. These land parcels are located at: • The remainder of farm 862 in East London (to build houses for people of Orange Grove and Needs Camp) • Erf 39541 in East London (to build houses for military veterans) • Erven 2686, 2687, 2688 and 2689 in Parsons Vlei in Port Elizabeth (social housing) • The remainder of farm 960 in East London (for middle-income housing) In terms of meeting the objective of access to basic services, a total number of 866 partial (rural) and 4 245 urban services have been delivered within the Integrated Residential Development Programme and Informal Settlements Upgrading projects in preparation for future projects. Rural settlement development We are also making a difference in rural settlement development. Preparatory work and planning for piloting the ePHP programme has been initiated in the following municipalities: Amathole (302 units), Alfred Nzo (200 units in Nqalweni/ Matyeni) and Chris Hani (1000 units in Intsika Yethu). A total of 8 303 houses have been completed, while a further 7 870 are currently at various advanced levels of construction — Helen Sauls-August In addition to this positive work, the department initiated a Rural Development Housing Project to address the housing need in the identified municipalities; namely: Umzimvubu in Alfred Nzo, Mhlontlo in OR Tambo as well as Intsika Yethu in Chris Hani. This is an initiative that seeks to enhance housing choices for rural inhabitants without compromising on quality. The positive response of the Nqalweni/Matyeni community in Umzimvubu in March 2012, when the project was launched, confirmed that indeed our department is in line with the aspirations of our people. Many of our people continue to be victims of disasters. In line with our Emergency Housing Policy, the department provided temporary relief to victims of disasters by providing them with temporary shelters in Buffalo City Metro, Nelson Mandela Metro, Cacadu, OR Tambo, Chris Hani, Joe Gqabi, Alfred Nzo and Amathole district municipalities – to this end, 1 772 temporary shelters were provided to victims of disasters. 177 EASTERN CAPE business 2013 message Building a province with traditional values MEC for Local Government and Traditional Affairs Mlibo Qoboshiyane is committed to building a developmental state, improving the public services and strengthening the democratic institutions, as prioritised by the Eastern Cape Provincial Government. Traditional Affairs The five-year term of the current members of the Eastern Cape House of Traditional Leaders (ECHTL) came to an end in 2012, and plans for the election of the new members are complete. Traditional leaders have a vital role to play in the march to build a national democratic society. Ties will be cemented between traditional leaders and various partners to advance the following programmes: • The moral regeneration movement to heal the divisions of the past and build a caring society • The HIV and Aids partnership with sector departments and non-governmental organisations • Citizen mobilisation behind the massive infrastructure and development initiatives • Commemoration of frontier wars and the liberation heritage • The responsibilities bestowed on the citizens in relation to energy efficiency, the green revolution and basic human rights • Giving impetus to the fight against fraud and corruption where social grants are concerned • Improved service delivery to rural communities The delivery imperatives for Traditional Affairs are as follows: • R9.3-million has been set aside for the House of Traditional Leaders to perform its duties as prescribed by law. • Members of the Committee on Traditional Disputes and Claims have been allocated an amount of R1.5-million for the operations of the Committee. • R7-million has been set aside for the construction and renovation of Traditional Councils. • R15-million has been allocated to policy and legislative development, traditional leadership capacity programmes and rural development initiatives. We are aware of the challenges facing traditional affairs in our province, including lack of uniformity in policy and legislation that govern the affairs of traditional leaders. We commit Mlibo Qoboshiyane A llow me to preface this message by drawing from the wisdom of Chief Albert Luthuli, who once said ‘a chief is primarily a servant of his people. He is the voice of his people’. Traditional leaders are catalysts of development in their constituent communities and must be driven by the consciousness of the responsibilities that they have to their people. EASTERN CAPE business 2013 178 message to work with the national government to define the place and role of traditional leadership within the new system of democratic governance. On the audit outcomes of provincial departments, for the 2010/11 financial year, one department received a clean audit, seven departments received unqualified audit opinions with other matters, five departments received qualified reports, and one department received a disclaimer of opinion. With respect to the overall fiscal environment in the province, we are concerned about continuing over-expenditure on the compensation of employees, especially in the departments of health and education. Local Government The department is ready to speed up implementation of the aforementioned plans. Regarding local government, we have spent R32.9-million in programmes to support various interventions, as part of the implementation of the Local Government Turnaround Strategy. In particular, since the previous term of local government, we initiated a number of interventions under Sections 139 and 154 of the Constitution in the following local municipalities: • Koukamma • Sundays River • Amahlati • Nxuba • Ngcobo • Buffalo City • Gariep • Great Kei • Inxuba Yethemba • Kouga, Mbashe • Ikhwezi • Mbizana • Alfred Nzo District Municipality As a result, a number of these municipalities have now stabilised and are functioning with minimal provincial support. Developmental state The department is committed to the task of building a developmental state. We place emphasis on implementation and action, because, without the culture of execution, our plans will remain hollow. In the quest to improve the discipline of getting things done in the public service, the province is intensifying its efforts to transform the culture of Traditional leaders have a vital role to play in the march to build entitlement to an output and a national democratic society people-oriented culture. We — Mlibo Qoboshiyane are making progress with respect to the provision of hands-on support to local As part of our quest to achieve clean audits for municipali- government. We continue to ties, financial-management support is being given to munici- support the process of filling palities through a partnership involving the Department of critical positions, such as Local Government and Traditional Affairs, Provincial Treasury, municipal managers and chief South African Local Government Association (SALGA), the Local financial officers. Government SETA and Public Administration Leadership and Management Academy (PALAMA). This partnership is focusing http://eclgta.ecprov.gov.za on providing training in respect of all capacity gaps identified as critical, including supply chain management. These interventions are yielding the desired results, as indicated by the gradual movement from adverse and disclaimer audit opinions to qualified and unqualified audit opinions. 179 EASTERN CAPE business 2013 message Big plans for social and economic infrastructure The Eastern Cape Department of Roads and Public Works has a vital role to play in achieving the provincial priority of building social and economic infrastructure. MEC Thandiswa Marawu outlines the steps the department is taking. link to global markets, which allows for cost-effective exporting. The department will therefore make its own contribution to the continued growth of this provincial economic powerhouse. In breathing life into the declaration by the State President and the Premier, a solid foundation for the establishment of a central platform for infrastructure coordination and delivery has now been firmly laid. A two-pronged approach has been adopted in pursuance of this critically important task. While continuing with gradually capacitating and positioning the Department of Roads and Public Works to take charge of this role, a Provincial Centralised Management Unit (PCMU) has also been established under the leadership and guidance of the Office of the Premier, with our department providing technical support. The purpose of this unit is to unlock infrastructure-delivery bottlenecks, monitor project performance and reporting, as well as future planning. To achieve high efficiency levels, the work of this committee has been structured into four work streams. Thandiswa Marawu Roads W We aim to consolidate our roads infrastructure strategy, the thrust of which is firstly to attend to the roads that require e welcomed our maintenance, and secondly to continue to support the Rural government’s pro- Development Strategy by ensuring that the inaccessible roads nouncement through and alternative-surfacing programmes are implemented. the State President in declaring We must however indicate that our roads infrastructure prothe year 2012 ‘the year of gramme continues to be constrained by underfunding, which infrastructure development’. inhibits us from addressing the four critical areas that define our This call resonates not only infrastructure delivery path. These include: huge infrastructure with our core mandate, but backlogs, maintenance of the existing assets, responding to also with the plans, systems incessant flood damage and meeting the demand for creating and strategies the department new roads. has adopted in the last two In order to adequately respond to the President’s call, we years. The location and infra- need to seriously apply our minds in allocating our meagre structure of Nelson Mandela budget. We need to systematically contain and ultimately Bay Metropolitan Municipality reduce spending on the compensation of employees in favour offers an important strategic of investing in infrastructure development. The current funding EASTERN CAPE business 2013 180 message general. The following major projects will be implemented in the 2012/13 financial year: • Mount Frere Social Cluster offices in Mount Frere • Heath Park College renovation in Cacadu • Branding of the Dukumbana building in Bhisho • Ex-CPA library in Aliwal North • Huis Beyers Naude in Graaff-Reinet Our work regarding the Small Town Revitalisation (STR) programme continues to inspire us. This programme has received the support of the executive council and is now a government programme and a provincial priority. Through the CommunityBased Public Works Programme, we will implement the following interventions in the 2012/13 financial year: 116 958 work opportunities will be created provincially, and 7 000 additional household contractors will be recruited as part of our contribution to the Provincial Roads Maintenance Programme (S’hamba Sonke). This will take the total number of household contractors engaged by the department to a staggering 37 000 by the end of 2012/13 financial year. In conclusion, we shall endeavour to grow the economy in order to create much-needed jobs, and fight poverty and inequality. Ongoing roadworks aim to keep citizens safe on the roads. levels suggest that we can only maintain the existing network, while spending on new major strategic infrastructure projects will be drastically reduced. It is within this context that priority has been given to roads that will enable communities and our people to access social service centres like schools, hospitals and other social amenities. It is also this situation that has informed the decision to strengthen our partnerships with municipalities to pull resources together in order to attend to critical roads, regardless of ownership of such roads. The state of affairs described above necessitated our agreement with the South African National Roads Agency Limited (SANRAL). Anyone who travels in the key provincial corridors in the province will attest to the frustration of ongoing roadworks which delay traffic. This is a positive frustration because it is an indication that our partnership with SANRAL is paying dividends, and that short-term inconvenience seeks to avoid potential longterm aggrievement. SANRAL spent R1.4-billion in the 2011/12 financial year, and is committed to spending R1.8-billion in the Eastern Cape in the upcoming year. We re-emphasise that the N2 Wild Coast Road is a provincial priority, and we will be working hard with SANRAL to realise the construction of the 100km new road through the Pondoland region, creating two of the biggest bridges in Southern Africa, stimulating the economy in the Wild Coast Corridor and creating jobs. photo: mediaclubsouthafrica.com Public Works projects The anchor for improved infrastructure delivery is heightened centralised coordination of key functions, including planning, monitoring of projects performance and expenditure. In this regard, we have established the Programme Management Unit which will exist and operate alongside the Provincial Centralised Management Unit, coordinated by the director 181 EASTERN CAPE business 2013 message Clear steps to achieving success MEC for Rural Development and Agrarian Reform Zoleka Capa outlines the steps the department is taking in developing rural communities and improving food security in the province. mechanisation and production inputs, marketing facilities, access to basic social services, electricity, roads, and railway network infrastructure. Our plans and programmes are specifically designed to respond to these challenges. To this end, guided by our Rural Development Strategy, we undertake to establish a Rural Development Agency to provide support to a range of agricultural initiatives. There have been delays in the progression of this agency, most of which were caused by requirements of the public participation process, but the rationalisation of rural development agencies is at an advanced stage. Successes of Outcome 7 We continue to contribute to the implementation of the 12 national priorities. Our department is championing the implementation of Outcome 7. To date, the following successes have been achieved: • 319km of fencing, 17 new and renovated dip tanks, six new irrigation projects, 800 hectares of land under irrigation, 18 stock water supply units, 16 animal production facilities, six livestock handling facilities and 10 shearing sheds were established. • Land care projects provided 1 594 green jobs, rural infrastructure provision contributed 38 full-time jobs, irrigation schemes 955 jobs, rollout sites 647 jobs, a field crops programme contributed 2 134 jobs, and 1 595 casual jobs were created through the Expanded Public Works Programme. • A total of 2 268 smallholder farmers benefited from the cultivation of field crops on 6 800 hectares, with yields of 23 400 tons. • An amount of R3.6-million was allocated to the Peddie Ostrich Project to improve production and management. • Cashmere embryos with high genetic potential were imported from Australia and transplanted in 82 ewes. Subsequently, 42 kids were produced, giving a success rate of more than 50%. • The outbreak of the disease Avian Influenza in Klipplaat, Jansenville was swiftly kept under control through the intervention of the veterinary services. Zoleka Capa I n the areas of rural development, land, agrarian reform and food security, we have made a commitment to reversing the legacy of the past, in order to improve the quality of life of people in rural areas through the implementation of the Rural Development Strategy. The common demands that are put forward by our communities for service delivery include: supply of bulk water for agriculture and domestic purposes, access to and ownership of land, agricultural EASTERN CAPE business 2013 182 message • 2 620 members of rural communities, including farmers, were well in excess of 6 800 direct jobs and open up the Wild Coast and other key towns for investment and economic development. However, in as much as government champions nature conservation, we Measurable progress have an obligation to balance The revitalisation of irrigation schemes in the province, in the protection of environmensupport of our agricultural objectives, is proceeding well. To tally sensitive areas with ecothis end, 978 hectares of land have been planted, 205 tem- nomic development and job porary and 75 permanent jobs have been created at Ncora, creation. Keiskammahoek and Shiloh Irrigation Schemes respectively. To realise our determination As part of providing high-value industry support, 1 500 jobs to alter the current tar-to-gravel were created following an investment of R30-million in the ratio of our provincial roads, pineapple industry. we have partnered with the Investment in agricultural infrastructure is expected to create National Department of Trans1 264 job opportunities in 2012/13, benefiting 8 592 subsistence, port and South African National smallholder and commercial farmers. Regarding food security, Roads Agency Limited (SANRAL) 6 800 hectares of land were ploughed this year, and the gross to ease the pressure with regard to maintenance of provincial retail value to food security is projected to be R41-million. It is also important that we recognise innovation and rural strategic roads. We also weldevelopment best practice that is happening in the Eastern Cape. come further improvements of In this regard, I wish to recognise the Three Crowns School in the national roads in the provEmalahleni that has won numerous international awards for ince, which includes the section sustainable food security and renewable energy. I also wish of the N2 road between King to recognise the University of Fort Hare Agri-Parks initiative in William’s Town and GrahamAlice and Butterworth. These projects are replicable and need stown, between Dutywa and Mthatha, as well as between to be put to scale in the province. We welcome the report from the Lands Claim Commission to Mount Ayliff and Kokstad. the effect that, out of the 17 814 claims lodged, 17 175 have to date been successfully settled, thus transferring more than New strategies R1.8-billion to claimants. I also wish to congratulate the communities of Balasi, Tyutyu The department will use a bulkand Sikhobeni for the successful resolution of their claims. These buying approach as a strategic claims covered a total of 750 households, translating to an esti- policy decision, to provide supmated number of 2 090 beneficiaries at a total cost of R66.9-million. port to the more needy rural communities, emphasising the use of Eastern Cape service KSD Presidential Revitalisation Project providers. A concept docuAs part of the KSD Presidential Revitalisation Project, designs ment on bulk-buying, underfor the Mthatha logistics infrastructure have been finalised, and pinned by public participation, in some cases, construction activity has already commenced. is being developed to guide These include the airport upgrade, widening of the N2 bridge this approach. and upgrading of roads in and around Mthatha. With respect The department will no to road infrastructure, the N2 Wild Coast, which will cost longer distribute tractors approximately R9-billion, was approved by national govern- and implements to farmers ment, and will commence as soon as all preparatory processes and communities, rather they have been finalised. It is expected that this project will create will be centrally located for trained in beef production, goat farming, sewing, baking, and fruit and vegetable production. Farm demonstrations were conducted with 570 farmers to improve their production capacity in different commodity groups. 183 EASTERN CAPE business 2013 message deployment to the districts. Communities together with traditional leaders, farmers’ unions, and other role-players will be central in guiding the activities pertaining to mechanisation. Municipalities are encouraged to budget for fuel costs for machinery operating in their jurisdictions. Climate-smart agriculture will be promoted, such as organic farming and green energy. The influence of unpredictable weather fluctuations induced by climate change phenomena forced the department to embark on research that will identify animals and crops which will respond well to these fluctuations. An amount of R10.8-million has been allocated for crop research and animal research projects. In Alfred Nzo, the Makhoba and Ongeluksnek farms will continue to be supported as high impact projects, which seek to increase crop production on a large scale. In OR Tambo, the Mthatha Airport Agricultural Services is intended to supplement the existing flow of produce to the Kei Fresh Produce Market through intensive farming systems. The department will also focus on high-value crops targeting fallow lands covering 8610 hectares. The Macadamia Nut Project, in Ncera, has been started in collaboration with the Department of Water Affairs. The construction on the main water-supply pipeline will commence this year with an amount of R24-milllion. The department will continue to support the Peddie pineapple EASTERN CAPE business 2013 industry in Ndlambe and Ngqushwa municipalities with the proceeds of the pineapple rescue plan. The areas under Mngazi, Ntafufu and Mngazana have been earmarked for enhancing subtropical fruit potential along the coastal area. In addition to this initiative, households are being provided with suitable cultivars for the area, coupled with training in all fruit production techniques. In Butterworth, a storage facility will be refurbished at a cost of R17.7-million to ensure that grain produced in the high-potential area is stored and sold at better prices, with the possibility of establishing a milling plant. Enhancing animal production The Eastern Cape is naturally endowed in livestock. In order to enhance livestock production to benefit rural communities, an integrated livestock development approach will be adopted by the department. The department will, in partnership with the University of Fort Hare and the Industrial Development Corporation (IDC), promote activities that will enhance animal production. For example: • The Nguni project will be upscaled from 15 to 30 heifers and one bull per community. The distribution process of livestock from Dohne Agriculture Development Institute will be reorganised to benefit the needy from the rural communities. The distribution criteria will be informed by suitability of the area for the breed. Disease-resistant breeds such as Nguni cattle will be distributed to the OR Tambo district and Bonsmara cattle predominantly to Chris Hani. The demand for Nguni skin in the auto industry has encouraged the department to step up its research, for the purpose of increasing production of Nguni cattle for the establishment of cottage industries in the rural areas for skin tanning. • Goat production in rural areas will also be promoted for commercial purposes. In this regard, mohair production is supported through dedicated research and institutional support in the Western and Alfred Nzo districts. • The Agricultural Development Institute (Dohne) will continue promoting animal-fibre production through breeding, artificial insemination and embryo transplant. • The development of an essential-oil production facility and livestock cattle feedlot at Phandulwazi Agricultural School is to serve as a development initiative, to improve the agriculture production and development opportunities in the Tyhume Valley. This initiative is done in cooperation with the traditional authorities and other government departments. www.agr.ecprov.gov.za 184 message Community celebrations help build social cohesion The 2012 Freedom Day celebrations organised by the Eastern Cape Department of Sport, Recreation, Arts and Culture illustrate how this department is setting about achieving the provincial priority of building cohesive, caring and sustainable communities. MEC Xoliswa Tom explains. Xoliswa Tom I n the Eastern Cape, we took a resolution to celebrate not just Freedom Day, but the whole month. This is because we believe we have a lot to celebrate and this cannot be done in one day. This year’s Freedom Day is celebrated in the context of the centenary celebrations of the oldest liberation movement in Africa, the African National Congress. We owe this freedom to the martyrs of this land, who sacrificed their lives to ensure that the bondages of oppression were ripped apart so that all the people of this land can enjoy a decent life. The following were the key elements of these celebrations: • Unveiling of the memorial stone in honour of the local heroes • Public lecture on the history of the struggle with a special focus of Bhaziya • Literature and heritage competition by local schools The day was preceded by a number of other important events: • Celebration of the World Book Day. A door-to-door campaign to promote reading was held. Homes and schools in Mqanduli received books. • Opening of a new library in Mqanduli • The provincial launch of Magnificent Wednesday, a project in promotion of school sport. This was held in Bhaziya. Currently, the Department of Roads and Public Works is busy with school refurbishment and regrading of access roads at Bhaziya. 175 homes received donations of heaters and blankets, so as to equip them for the winter season. In addition to that, the Department of Roads and Public Works conducted the registration of unemployed youth in the area so as to assist them with job opportunities. As is the government norm, services-on-wheels were on-site on the day of the event to assist the communities with their pressing needs from the government. Through this Freedom Day, we remembered and honoured those who have fallen on the way, fighting for our freedom. The community of Bhaziya has produced many unsung heroes and heroines, and it is in recognition of their contribution that we erected a memorial stone in Bhaziya. Twenty seven names, agreed upon by the community of the area, will be engraved on this memorial stone. We are currently conducting a social history research in Bhaziya through oral history, and the information that we are going to gather will be used by school education programmes. 185 EASTERN CAPE business 2013 message A caring and proactive public service The provincial priorities most relevant to the work of the Department of Social Development and Special Programmes are to build a developmental state, to improve public services and to strengthen democratic institutions. MEC Pemmy Majodina elaborates. democracy through mass participation. Our people are architects of their own future. Globally, the posture and performance of the public sector contribute substantially to how a government is perceived, as well as the pace of a country’s development. A friendly, facilitative, goal-oriented and proactive public service invariably enhances the image of government, and contributes towards accelerating any country’s development. To support this goal, a total of 950 computers and network equipment will be issued to the province and districts to improve efficiency of service. Furthermore, the depart ment is committed to improve working conditions in the delivery of quality services. An amount of R44.4-million has been set aside targeting the following infrastructural projects: Burgersdorp Place of Safety, Ngqamakwe Ser Pemmy Majodina vice Office, Libode Service Office, Dutywa Service Office, Willowvale Service Office and Bethelsdorp Service Office. During the financial year 2012/13, we have committed to review our internal business processes to align with our integrated service delivery model to effectively address social challenges. Our emphasis is therefore on repositioning the department towards e have committed a developmental approach, both in its strategic direction and its ourselves to a social operations. We are guided by our developmental trajectory, as contract of building we move away from measuring our success as outputs towards a developmental state that measuring success based on positive social changes. A demofocuses on eradication of cratic developmental state must ensure an integrated delivery of poverty. We will transform, services, which promotes collaboration and coordination across recreate, ‘re-image’ and the different spheres of government. redress to indeed give effect In partnership with South African Social Security Agency (SASSA), to our creed of ‘A better life we have committed to target 100 poor families from 10 villages in an effort to revive community-based cluster foster homes. We for all’. The announcement of the will also strengthen our relations with National African Chamber department’s policy was pre- of Commerce as one of the leaders in the business fraternity, ceded by a provincial stake- to assist in linking our infant projects with the open market for holders’ engagement wherein future sustainability. social partners contributed. In 2012/13, the department will continue to fund 23 resiThis was done to deepen our dential facilities for the disabled, 11 social service organisations, EASTERN CAPE business 2013 W 186 message 25 special daycare centres, 17 protective workshops and five community-based rehabilitation programmes. In an effort to uplift socioeconomic empowerment of people with disabilities and facilitate transformation, the department will partner with Disabled People South Africa (DPSA) and other disabled people’s organisations (DPOs) in implementing community-based rehabilitation programmes to people with disabilities. The integrated developmental approach regards economic development as a desirable and essential element in social welfare, and proposes that social programmes support macroeconomic policies that promote employment, raise income, etc This approach is aimed at ensuring that social programmes be investment-orientated by promoting economic participation and generating positive rates of return to the economy. While our programme of job creation through social cooperatives and community-based projects is making progress as a way of empowering local communities of the Eastern Cape to be self-sustaining and productive members of society, we believe that maximising our financial resources through inter-governmental and private sector collaboration will have far-reaching benefits. In this regard, we have already mobilised resources and social partners to pilot Legacy projects by using old factories in both Dimbaza and Butterworth, which will benefit a high number of unemployed people from these areas through the provision of sustainable jobs. We have already signed a memorandum of understanding with the Department of Economic Development and Environmental Affairs through the Eastern Cape Development Corporation to facilitate a number of these initiatives involving the creation of jobs in the above-mentioned factories. The following subprogrammes within community development have been specifically designed to address our objectives and expected outcomes. opportunities for women from disadvantaged backgrounds towards sustainability and self-reliance. Aftercare funding policy The department will finalise and implement a special policy aimed at providing support to project members who are facing challenges of hardship while their projects are not yet making a profit during the first six months. Institutional capacity building and support The aim of this subprogramme is to establish and capacitate new and existing communitybased organisations towards improved social services delivery. Population and research The aim of the subprogramme is to bring about changes in the determinants of population trends, so that these are consistent with the achievements of sustainable human development. The special programmes mandate is to lead, facilitate, Community impact coordinate, monitor and report Youth development on the effective implemenIn responding to challenges of unemployment, the department tation of the constitutional, is piloting the implementation of National Youth Service (NYS) in regional and international accordance to the National Youth Policy 2009-2014. mandates with regards to gender, disability, children and Sustainable livelihoods programme older persons. The vision and mission of the department compels us to target During the year 2012/13, the vast majority who are poor, marginalised and vulnerable, com- the Special Programmes Unit prising a category who are undernourished, either because they will be facilitating consultado not have the means to produce food or cannot afford to buy tion processes on the national strategy with provincial govsufficient food. ernment departments and Women development stakeholders on the needs of The aim of the subprogramme is to promote sustainable livelihood these groups. 187 EASTERN CAPE business 2013 message Confronting challenges head-on MEC for Transport, Roads and Public Works Thandiswa Marawu is tasked with building social and economic infrastructure, as mandated by the national government priorities. • Maximisation of mobility and accessibility through • Leading integrated traffic management • Creation of economic empowerment opportunities in the public transport Thandiswa Marawu he 2011/12 financial year was characterised by the intensification of efforts to deliver ‘quality transport systems for a better life for all’ and Departmental successes programmatic responses to the undertakings enshrined in the: Moreover, in its first audit since its establishment towards • ANC Manifesto of 2009 the end of the period under review, our newly established • New Growth Path Provincial Government Fleet Management Trading Entity also • Government’s 12 Outcomes obtained an unqualified audit report. Since its establishment, • P r o v i n c i a l S t r a t e g i c the trading entity has successfully purchased its fleet and Framework accounted for its operations. The strategic focus of the In an effort to improve the overall administration of the departdepartment for the period ment, we have approved nine policies, which are mainly related under review was anchored to human resource management. around the following strategic As part of our contribution to the transformation of the transport sector, we have awarded 29 bursaries to deserving youth performance areas: • Promotion of good govern- of the Eastern Cape in this academic year. These bursaries were ance and transportation awarded in the following fields of study: Aeronautical Engineering excellence (two), Civil Engineering (15), Mechanical Engineering (10) and EASTERN CAPE business 2013 T transportation sector and alleviation of poverty As an executing authority of this department, I can state without fear of contradiction that this department is turning the corner. This can be attributed to the calibre of leadership that we have assembled, and the commitment of all the departmental officials to ensure that we: • Deliver on our mandate • Sustain our good service delivery record and be a shining example to other government departments • Promote excellent performance • Fulfil our obligation of restoring the confidence of our people in their government and continue to work together with our people to build a province and a country that we can all look at with hope, pride and encouragement This has resulted in us receiving another unqualified audit report for the 2011/12 financial year for the third consecutive year since the 2009/10 financial year. The department is now determined to reduce the matters of emphasis that have been highlighted by the auditor-general, including non-financial performance information. 188 message Maritime Engineering (two). The value of the awarded bursaries The Scholar Transport Prototalled R65 000 per learner. gramme was successfully Our partnership with Air Traffic Navigation Services (ATNS) migrated from the Department has resulted in the selection of four Eastern Cape youth to be of Education to the Department trained as Air Traffic Services Assistants, following the recruit- of Transport. The total number ment of 110 young people from all districts in the last quarter of scholars transported during the year under review was of the period under review. During the year under review, we have been able to encourage 53 832, compared to the target black economic empowerment and saw a significant increase in of 42 000. the value of contracts awarded to BEE companies, from R25-million In addition to the dedicated in the 2010/11 financial year to R80-million. Scholar Transport Programme, we have learners who are transported to school as follows: Public transport for all • 24 000 make use of Algoa During the same period, the department continued to provide Bus Company public transport to the people of the province in line with our • 7 000 use AB350 mandate. To that end, Algoa Bus Company transported more • 2 000 use Mayibuye Transthan 15 million passengers, while Africa’s Best 350 Ltd (AB350) port Corporation transported more than five million passengers (mainly rural) We appreciate the response and Mayibuye Transport Corporation transported close to two of various stakeholders to our call for the establishment million passengers (mainly rural). Public transport funding has been a challenge since 1994, and of Community Road Safety my predecessors and I have made efforts to bring this matter to Councils in various districts. Through the massive involvethe attention of national government. This process will be complemented by a political process, where ment of our stakeholders, we Transport MECs led by the Minister will make certain political con- have been able to ensure that siderations in the allocation of resources in order to decisively the people of the Eastern deal with the imbalances of the past. Cape play an active role in In order to improve the administration and regulation of public the ‘Decade of Action for Road transport, the department established a Provincial Regulatory Safety Campaign 2011-2020’. Entity (PRE). Its role is to: The department has made its • Monitor and oversee public transport in the province own contribution to the devel• Receive and decide on applications relating to operating licences opment and improvement of It is gratifying to report that PRE has been able to deal with the lives of the people, especially backlog of more than 600 applications throughout the province. the rural poor, through our In an effort to contribute to rural development through improving Community-Based Transporaccess to public transport, we have successfully reintroduced the tation Programme, in line with Kei Rail Daily Passenger Services between Mondays and Fridays. the three priorities drawn from Furthermore, we have successfully got the Mthatha Airport the African National Congress’ Upgrade project back on track and it is expected to be completed Manifesto, namely: before the end of the current financial year. • Rural development We appreciate the support from national government through • Speeding up growth and the King Sabata Dalindyebo Municipality Presidential Interventransforming the economy tion Initiative, which has enabled the allocation of resources by to create decent work and national government in further developing the airport infrastructure. sustainable livelihoods In an effort to decisively deal with the apartheid public transport • Building cohesive, caring and provision arrangement in the Eastern Cape, the department initisustainable communities ated a process of developing a Provincial Integrated Public Transport Master Plan (PIPTMP). 189 EASTERN CAPE business 2013 message Striving towards safety for all The Eastern Cape Provincial Government is intensifying the fight against crime and corruption through the Safety and Liaison Department. MEC Helen Sauls-August clarifies the goals of the department. approach for accelerated delivery of police services in the form of the Triple C Approach: command and control within the police aligned to communication with communities. The launch of Operation Asiqhelwa showed that our government is serious about combatting crime. The department will continue to ensure that the police do a thorough job of enhanced investigations, which will enable loopholes to be closed and allow justice through prosecutors delivering cases. The department has fought crime through measures such as: • Unannounced visits to 48 police stations • The launch of district safety forums in two municipalities • Support for 45 safer-schools programmes • The training of 1 032 Community Policy Forum (CPF) members • Convening of 29 SA Police Services accountability meetings Priorities for the Department of Safety and Liaison include: Helen Sauls-August • Holding fraud and anti-corruption awareness campaigns • Establishing district and community safety forums • Conducting 140 station service-delivery evaluations • Intensifying the number of unannounced visits by the MEC • Hosting a Cross-Border Crime Indaba With regard to community policing, the department’s communie should never forget cation capacity is to be strengthened with the focus on three key the ordinary members messages: public education in which priority is given to awareof our communities ness of cyber crime, safer families and parenting awareness prowho dedicated their lives in grammes, and public education against anti-foreign sentiments. defence of democracy and The department has a role to play in monitoring the implefreedom for all citizens in a safe mentation of the SAPS Provincial Fraud and Corruption Strategy. and secure environment within Through the work of our tactical response teams’ no-nonour province. sense approach, we will reclaim our streets as we step up the Our department’s mandate is fight against gangsters in the northern areas of Port Elizabeth linked to two key strategic policy and in other pockets with the province. We will be equipping priorities: the need to intensify all our 1 528 CPF members throughout the 191 police stations the fight against crime and cor- with cellphones. ruption, and the outcome which We salute the women street patrollers who voluntarily patrol proposes that all people in the the streets of Helenvale night and day. They are a shining example province are and feel safe. and we will ensure that we roll out their programme throughout We support the national the province. W EASTERN CAPE business 2013 190 listings Eastern Cape Local Government A guide to metropolitan, district and local municipalities in the Eastern Cape Province. Alfred Nzo District Municipality Physical address: Erf 1400, Ntsizwa Street, Mount Ayliff 4735 Postal address: Private Bag X511, Mount Ayliff 4735 Tel: +27 39 254 5000/1 Fax: +27 39 254 0343 Email: firstname.lastname@example.org Website: www.andm.gov.za Local municipalities encompassed Matatiele Local Municipality Tel: +27 39 737 3135 Fax: +27 39 737 3611 Website: www.matatiele.gov.za Umzimvubu Local Municipality Tel: +27 39 255 0166/8500 Fax: +27 39 255 0167 Website: www.umzimvubu.gov.za Mnquma Local Municipality Tel: +27 47 401 2400 Fax: +27 47 491 0195 Website: www.mnquma.gov.za Ngqushwa Local Municipality Tel: +27 40 673 3095 Fax: +27 40 673 3771 Website: www.ngqushwamun.co.za Nkonkobe Local Municipality Tel: +27 46 645 7400 Fax: +27 46 645 1619 Website: www.nkonkobe.co.za Nxuba Local Municipality Tel: +27 46 684 0034 Fax: +27 46 684 1931 Website: www.nxuba.co.za Buffalo City Metropolitan Municipality Physical address: City Hall, Oxford Street, East London 5200 Postal address: PO Box 134, East London 5200 Tel: +27 43 705 2000 Fax: +27 43 743 1688 Email: email@example.com Website: www.buffalocity.gov.za Amathole District Municipality Physical address: 40 Cambridge Street, East London 5200 Postal address: PO Box 320, East London 5200 Tel: +27 43 701 4000 Fax: +27 43 742 0337 Email: firstname.lastname@example.org Website: www.amathole.gov.za Local municipalities encompassed Amahlathi Local Municipality Tel: +27 43 683 1100 Fax: +27 43 683 1127 Website: www.amahlathi.co.za Great Kei Local Municipality Tel: +27 43 831 1028 Fax: +27 43 831 1029 Website: www.greatkeilm.gov.za Mbhashe Local Municipality Tel: +27 47 489 5800 Fax: +27 47 489 1137 Website: www.mbhashemun.gov.za Cacadu District Municipality Physical address: 32 Govan Mbeki Avenue, Port Elizabeth 6000 Postal address: PO Box 318, Port Elizabeth 6000 Tel: +27 41 508 7111 Fax: +27 41 508 7000 Email: email@example.com Website: www.cacadu.co.za Local municipalities encompassed Baviaans Local Municipality Tel: +27 44 923 1004 Fax: +27 44 923 1122 Website: www.baviaans.gov.za Eastern Cape business 2013 191 listings Blue Crane Route Local Municipality Tel: +27 42 243 1333 Fax: +27 42 243 2250 Website: www.bluecraneroute.co.za Camdeboo Local Municipality Tel: +27 49 807 5700 Fax: +27 49 892 4319 Website: www.camdeboo.gov.za Ikwezi Local Municipality Tel: +27 49 836 0021 Fax: +27 49 836 0105 Website: www.ikwezimunicipality.co.za Kouga Local Municipality Tel: +27 42 200 2200 Fax: +27 42 293 1114 Website: www.kouga.gov.za Kou-Kamma Local Municipality Tel: +27 42 288 7200/0303 Fax: +27 42 288 0797 Website: www.koukammamunicipality.co.za Makana Local Municipality Tel: +27 46 603 6131 Fax: +27 46 622 9700 Website: www.makana.gov.za Ndlambe Local Municipality Tel: +27 46 603 6111 Fax: +27 46 622 9700 Website: www.ndlambe.co.za Sundays River Valley Local Municipality Tel: +27 42 230 7700 Fax: +27 42 230 0069 Website: www.srvm.gov.za Inkwanca Local Municipality Tel: +27 45 967 0021/1125 Fax: +27 45 967 0467 Website: www.inkwanca.gov.za Intsika Yethu Local Municipality Tel: +27 47 874 8700 Fax: +27 47 874 0010 Website: www.intsikayethu.gov.za Inxuba Yethemba Local Municipality Tel: +27 48 801 5000 Fax: +27 48 881 1421 Website: www.iym.co.za Sakhisizwe Local Municipality Tel: +27 47 877 0167 Fax: +27 47 877 0000 Website: www.sakhisizwe.gov.za Tsolwana Local Municipality Tel: +27 45 846 0033 Fax: +27 45 846 0025 Website: www.tsolwana.co.za Joe Gqabi District Municipality Physical address: cnr Cole and Graham streets, Barkly East 9786 Postal address: Private Bag X102, Barkly East 9786 Tel: +27 45 979 3007 Fax: +27 45 971 0251 Email: firstname.lastname@example.org Website: www.joegqabi.co.za Local municipalities encompassed Elundini Local Municipality Tel: +27 45 932 8100 Fax: +27 45 932 1777 Website: www.elundini.org.za Gariep Local Municipality Tel: +27 51 653 1777 Fax: +27 51 653 0056 Website: www.gariep.gov.za Maletswai Local Municipality Tel: +27 51 633 2441 Fax: +27 51 634 1307 Website: www.maletswai.gov.za Senqu Local Municipality Tel: +27 51 603 0019 Fax: +27 51 603 0445 Website: www.senqumunicipality.co.za Chris Hani District Municipality Physical address: 15 Bells Road, Queenstown 5320 Postal address: Private Bag X7121, Queenstown 5320 Tel: +27 45 808 4600 Fax: +27 45 808 4629 Email: email@example.com Website: www.chrishanidm.gov.za Local municipalities encompassed Engcobo Local Municipality Tel: +27 47 548 1221 Fax: +27 47 548 1078 EASTERN CAPE business 2013 192 listings Nelson Mandela Bay Metropolitan Municipality Physical address: City Hall, 1st Floor, Market Square, Govan Mbeki Avenue, Port Elizabeth 6000 or 196 Govan Mbeki Avenue, Port Elizabeth 6000 Postal address: PO Box 116, Port Elizabeth 6000 Tel: +27 41 506 5555 Fax: +27 41 506 3431 Email: firstname.lastname@example.org Website: www.nelsonmandelabay.gov.za King Sabata Dalindyebo Local Municipality Tel: +27 47 501 4000 Fax: +27 47 532 5198 Website: www.ksd.gov.za Mbizana Local Municipality Tel: +27 39 251 0230 Fax: +27 39 251 0917 Website: www.mbizana.gov.za Mhlontlo Local Municipality Tel: +27 47 553 7000 Fax: +27 47 553 0452 Website: www.mhlontlomun.co.za Ntabankulu Local Municipality Tel: +27 39 258 0056 Fax: +27 39 258 0173 Website: www.ntabankulu.gov.za Nyandeni Local Municipality Tel: +27 47 555 5000 Fax: +27 47 555 0202 Website: www.nyandenilm.gov.za Port St Johns Local Municipality Tel: +27 47 564 1207/8 Fax: +27 47 564 1206 Website: www.psjmunicipality.co.za LESOTHO OR Tambo District Municipality Physical address: OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthatha 5099 Postal address: Private Bag X6043, Mthatha 5099 Tel: +27 47 501 6400 Fax: +27 47 531 1764 Email: email@example.com Website: www.ortambodm.org.za Local municipalities encompassed Ingquza Hill Local Municipality Tel: +27 39 253 1568/1096 Fax: +27 39 253 1234 Website: www.ihlm.gov.za Municipalities in the Eastern Cape Free State Alfred Nzo Matatiele Umzimvubu KwaZuluNatal Northern Cape Maletswai Gariep Senqu Joe Gqabi Elundini Ntabankulu Mhlontlo Mbizana OR Tambo Qaukeni Port St Johns Inkwanca Tsolwana Sakhisizwe Emalahleni Nyandeni Engcobo Intsika Yethu King Sabata Dalindyebo Mbhashe Mnquma Western Cape Chris Hani Lukhanji Inxuba Yethemba Camdeboo Nxuba ECDMA10 Blue Crane Route Nkonkobe Amahlathi Amathole Great Kei Ikwezi Cacadu Baviaans ECDMA10 Koukamma Sundays River Valley Buﬀalo City Makana Ngqushwa INDIAN OCEAN Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality Local Municipality Ndlambe Kouga Nelson Mandela Bay Cacadu Nxuba 193 Eastern Cape business 2013 focus Local municipalities in the Amathole District The Amathole District, at the heart of the Eastern Cape, has eight local municipalities and is home to approximately 1.7 million people. Amahlathi The Amahlathi area, south of Chris Hani District Municipality, is a region with good agricultural potential, owing to its favourable climate and fertile soils. Tourism is also becoming an increasingly important contributor to the local economy. The major towns within the municipal district are Cathcart, Stutterheim, Keiskammahoek, Amabele and Kei Road. Key personnel: Cllr M Peter, Executive Mayor KP Socikwa, Municipal Manager Tel: +27 43 683 1100 Email: firstname.lastname@example.org Website: www.amahlathi.gov.za Mbhashe Mbashe Municipality hopes to attract more visitors to its tourism sites along the Wild Coast and further develop the agricultural potential of the area. Major towns in this municipality are Dutwa, Ebende, Taleni, Willowvale, Ciko, Nyokana, Qora Mouth, Nqabara, The Haven, Hobeni, Rothmere and Alderley. Key personnel: Cllr N Mfecane, Mayor M Somana, Municipal Manager Tel: +27 47 489 5800 Email: email@example.com Website: www.mbhashemun.gov.za Great Kei The Great Kei area used to be the centre of the South African pineapple industry and although there are still numerous pineapple farmers in the region, the agricultural sector has now diversified. Tourism is another growth sector in the area. The main towns in Great Kei are Komga, Chintsa East, Chintsa West, Haga Haga, Kei Mouth, Morgan’s Bay, Mpethu, Quko and Tainton. Key personnel: Cllr NW Tekile, Mayor C Mbekela, Municipal Manager Tel: +27 43 831 1028 Email: firstname.lastname@example.org Website: www.greatkeilm.gov.za eastern cape business 2013 Mnquma Mnquma is largely rural with few formal employment opportunities but fishing, agriculture and tourism have been identified as areas of potential economic growth. The main towns in this area include Butterworth, Centane, Manubi, Mazeppa Bay, Ngqamakwe, Qoboqobo, Qolara Mouth and Wavecrest. Key personnel: Cllr M Ganjana, Mayor N Pakade, Municipal Manager Tel: +27 47 401 2400 Email: email@example.com Website: www.mnquma.gov.za 194 LESOTHO Free State Alfred Nzo KwaZuluNatal focus Northern Cape Joe Gqabi AMATHOLE DISTRICT Chris Hani Mbhashe Mnquma Nxuba Nkonkobe Amahlathi OR Tambo Western Cape Amathole Great Kei Cacadu Ngqushwa Buﬀalo City INDIAN OCEAN Metropolitan/District Municipality Boundary Local Municipality Boundary Nelson Mandela Bay District Municipality Local Municipality Cacadu Nxuba Ngqushwa Ngqushwa is the southernmost municipality within the Amathole District and is primarily an agricultural region. The beaches and estuaries also make it an attractive location for tourists. The main towns in the area are Hamburg, Peddie, Bell, Breakfast Vlei, Fallodon, Sittingbourne, Wesley and Wooldridge. Key personnel: Cllr S Ndwayana, Mayor N Mjo, Acting Municipal Manager Tel: +27 40 673 3095 Email: firstname.lastname@example.org Website: www.ngqushwamun.gov.za towns in Nkonkobe are Alice, Fort Beaufort, Hogsback, Middledrift and Seymour. Key personnel: Cllr AW Ntsangani, Mayor KC Maneli, Municipal Manager Tel: +27 46 645 7400 Email: email@example.com Website: www.nkonkobe.gov.za Nxuba Located in the extreme west of the Amathole District, Nxuba offers opportunities in agriculture, trade, tourism and government services. The key towns in this area are Bedford and Adelaide. Key personnel: Cllr LL Bruintjies, Mayor S Caga, Municipal Manager Tel: +27 46 684 0034 Email: firstname.lastname@example.org Website: www.nxuba.co.za Nkonkobe Most of the residents of the Nkonkobe municipal area are reliant on the civil service, agriculture or forestry for employment. Tourist attractions in the surrounding area mean that growth in tourism is a viable option. The main 195 eastern cape business 2013 interview A vision of hope for the future Executive Mayor of the Amathole District Municipality Nomasikizi Konza outlines the challeges that face her district, and the key plans that seek to address these challenges. Nomasikizi Konza What are the major natural resources and competitive advantages of your district that make it an attractive investment destination? Amathole District Municipality (ADM) has fertile soil that enables it to produce green palatable vegetation. Thanks to this high-quality vegetation, we are regarded as the province with the highest number of livestock, a large percentage of which is in our municipality. ADM lies between the Sundays and Kei Rivers, and as a result we are able to harness good-quality water. Lastly, as far as crops are concerned, we can boast the production of citrus fruit and many types of vegetables. Nomasikizi Konza has been involved in local government matters for a number of years. Between 1995 and 2000, she was the deputy mayor of the Cathcart Transitional Local Council (TLC). From 2000 to 2006, she was deployed to the executive committee of Amahlathi Local Municipality, leading local economic development and tourism. After a break from public-sector work, she returned to local government affairs in 2010, when she was appointed as speaker in the Amahlathi Municipality. She is currently the executive mayor of the Amathole District Municipality. eastern cape business 2013 • Grant dependency due to insufficient revenue base and the • The ADM is dominated by indigents • Meter readers not adaptable to improved technology • Low project spending, excluding Municipal Infrastructure Grant (MIG) • Ageing infrastructure which impedes efforts to tackle water and • Lack of a fully fledged unit for integrated planning, monitoring • Insufficient performance of oversight role and monitoring in local municipalities. What it your vision for the economic future of the district? It is very important that there be a paradigm shift in how are communities are participating in the economy of our district. We cannot have a situation where agriculture contributes 3% to the Growth and Development Plan of the district, and as such, we need to ensure that both agriculture and tourism are the key drivers of our economy so as to enable people in the deep rural areas to not only make a meaningful contribution to the economy, but transform their socioeconomic status. Our doors remain open for potential investors and we are determined to create a conducive environment that enables guaranteed return for those that plough into our district. and evaluation sanitation backlogs low collection of rates and taxes What are some of the challenges that your municipality faces? 196 focus Grand plans for small rural towns Amathole District Municipality is implementing ambitious plans in small rural towns. T hanks to an ambitious economic infrastructural project by the Amathole District Municipality (ADM), small rural towns are becoming economically viable, while creating livelihoods for locals. Through its developmental agency Aspire, the Amathole District Municipality has injected millions of rands towards the development of these towns and the stimulation of the local economic environment. The initial funding for operations behind this idea was R5-million for three financial years, and escalated to R11.4-million in 2011/12, then increased further to R15-million for the 2012/13 financial year. The agency received a Neighbourhood Development Grant of R64-million from the National Treasury, as well as leverage funding of more than R300-million. In line with State President Jacob Zuma’s State of the Nation Address announcement of a massive cash injection on infrastructural projects, the ADM executive mayor Nomasikizi Konza also announced plans to undertake such projects. During the State of the District Address, which signals the new municipal financial year, Konza said ‘Unemployment and its accompanying poverty characteristics are dominant and unacceptably high, as almost 50% of the district population still in poverty. The government is the biggest employer, contributing to 42% of all jobs. There were a total of 94 808 people employed in ADM in this period. This represents about 10% of all the jobs in the Eastern Cape. Trade is the next best performing sector, creating 18% of jobs in the district. It is based on this that we have decided to take a bold political step to make economic development a key sector, by making available from the municipality reserves an amount not exceeding R30-million to fund agricultural and tourism projects.’ As part of the small-town-regeneration project, Konza announced and unpacked investment plans for a upgrade of the 12 towns in the district. These towns include Alice, Butterworth, Dutywa, Hamburg, Stutterheim, Cathcart, Peddie, Keiskammahoek and Fort Beaufort. She cited investment opportunities in these towns as dependent on the promotion of economic revenue. The town development is linked to national and provincial road corridors. Developments and successes • The upgrade of the Butterworth CBD reached • The Gcuwa Dam development is being • completion in November 2011 positioned as an entertainment and leisure development node In cooperation with the Eastern Cape Development Corporation, bamboo has been identified as an alternative crop for the N2 corridor area Plans are in development for upgrades to the Dutywa CBD and the development of a commercial and community-orientated precinct in Dutywa town The construction of the Cumakala Bridge and access road, including uniquely designed street lighting and a foot path to Mlungisi, has been completed The construction of the Mlungisi Community Commercial Park is well underway, and more than 100 temporary jobs were created during construction The construction of the Stutterheim Central Business District is nearing finalisation eastern cape business 2013 • • • • 197 focus Amathole District Municipality Council The Amathole District Municipality has 20 proportional representation councillors and 30 representatives from the local municipalities. Executive Mayor Cllr Nomasikizi Konza ANC Speaker Cllr Samkelo Janda ANC Chief Whip Cllr Sandla Mtintsilana ANC Portfolio Councillor for Budget and Treasury Cllr Lavern Jacobs ANC: PR Cllr Pendulwa Finca ANC: PR Portfolio Councillor for Land and Housing Cllr Boyce Melitafa ANC: PR Portfolio Councillor for Engineering Cllr Tembisa Kubukeli ANC: PR Portfolio Councillor for Community Liaison and Participation Cllr Siyabulela Genu ANC: PR Portfolio Councillor for Strategic Planning and IDP eastern cape business 2013 198 focus Portfolio Councillor for Community Safety Cllr Egnew Madikane ANC: PR Portfolio Councillor for Local Economic Development Cllr Mzwakhe Memani ANC: PR Portfolio Councillor for Water and Sanitation Cllr Mbulelo Bikitsha ANC: PR Cllr Pumzile Billie ANC: PR Portfolio Councillor for Health and Protection Cllr Mandisa Papu ANC: PR Portfolio Councillor for Corporate Services Cllr Edison Malgas Cope: PR Cllr William Duna Cope: PR Cllr Nondumiso Mgidlana ANC: PR Cllr William Ward DA: PR Cllr Victor Mkosana UDM: PR *Photographs of Cllr Zolani Kabane (ANC: PR) and Cllr Nozibele Nyalambisa (ANC: PR) were not available at the time of going to print. 199 eastern cape business 2013 focus Mnquma Cllr Manxila Tunyiswa ANC: Mnquma Rep Cllr Rowan Jikwana ANC: Mnquma Rep Cllr Gideon Ngqongolo ANC: Mnquma Rep Cllr Nomabhele Plaatjie ANC: Mnquma Rep Cllr Nomakorinte Tyala ANC: Mnquma Rep Mnquma Great Kei Cllr Zamindawo Solontsi Cope: Mnquma Rep Cllr Tembisile Dyani UDM: Mnquma Rep Cllr Qinsile Mpande ANC: Mnquma Rep Cllr Nomonde Dyani ANC: Great Kei Rep Cllr Lennox Bangani ANC: Great Kei Rep Nkonkobe Cllr Nanziwe Rulashe ANC: Nkonkobe Rep Cllr Mpumleli Rawana ANC: Nkonkobe Rep Cllr Lungelo Sinyongo ANC: Nkonkobe Rep Cllr Seysey Macakela ANC: Nkonkobe Rep Cllr Thembisa Dwanya ANC: Nkonkobe Rep eastern cape business 2013 200 focus Mbhashe Cllr Nonceba Mfecane ANC: Mbhashe Rep Cllr Xolelwa Baleni ANC: Mbhashe Rep Cllr Nomapha Benya ANC: Mbhashe Rep Cllr Bongeka Sigcawu ANC: Mbhashe Rep Cllr Nokhanyo Magatya ANC: Mbhashe Rep Mbhashe Ngqushwa Cllr Ntombentle Nonjaca Cope: Mbhashe Rep Cllr Mzimkhulu Tetyana UDM: Mbhashe Rep Cllr Nomandla Ndabazonke ANC: Ngqushwa Rep Cllr Sindile Jali ANC: Ngqushwa Rep Cllr Mnikelo Siwisa ANC: Ngqushwa Rep Nxuba Amahlathi Cllr Qondile Maloni ANC: Nxuba Rep Cllr Nondumiso Nkumkuma ANC: Amahlathi Rep Cllr Xolela Roji ANC: Amahlathi Rep Cllr Pateka Qaba ANC: Amahlathi Rep Cllr Nomawethu Mkonsana Cope: Amahlathi Rep 201 eastern cape business 2013 index INDEX Absa Business Bank������������������������������������������������114 Adventure Industrial Cleaning (AIC)���141, 142 Afri-Coast Engineering���������������������������������������������90 Airports Company South Africa (ACSA)����� 5, 97 Amathole District Municipality������������������������������������������194, 196, 198 Blue Lagoon Hotel and Conference Centre�������������������������������������������52 Border Kei Chamber of Business (BKCOB)�����������������������������������148, 150 Buffalo City Public FET College������������������������128 Buffalo City Metropolitan Municipality�����������������������������7, 202 Cennergi (Pty) Ltd����������������������������������������������������110 Eastcape Midlands FET College������������������������130 Eastern Cape Department of Economic Development and Environmental Affairs����165 Eastern Cape Department of Education������168 Eastern Cape Department of Health�������������172 Eastern Cape Department of Human Settlements������������������������������������������175 Eastern Cape Department of Local Government and Traditional Affairs��������������178 Eastern Cape Department of Roads and Public Works���������������������������������180 Eastern Cape Department of Rural Development and Agrarian Reform���������������182 Eastern Cape Department of Safety and Liaison���������������������������������������������190 Eastern Cape Department of Social Development and Special Programmes������186 Eastern Cape Department of Sport, Recreation, Arts and Culture����������������185 Eastern Cape Department of Transport�������188 Eastern Cape Development Corporation (ECDC)������������������������������20, IBC, OBC Eastern Cape Office of the Premier�������������������10 Eastern Cape Provincial Treasury��������������������171 East London Industrial Development Zone (ELIDZ)��������������������������IFC, 36 EASTERN CAPE business 2013 Eskom����������������������������������������������������������������������������138 Frontier Market Network.........................................25 Global Africa Network�������������������������������������������������9 Industrial Development Corporation (IDC)�������������������������������������������������������107 Kei Fresh Produce Market (KFPM)��������������59, 60 King Sabata Dalindyebo FET College������������134 Lovedale Public FET College�����������������������������126 Lumotech������������������������������������������������������������������������79 Matatiele Local Municipality������������������������30, 32 Mohair South Africa���������������������������������������������������65 Mpekweni Beach Resort�����������������������������������������43 National Department of Agriculture, Forestry and Fisheries������������62, 70 National Department of Labour – Compensation Fund���������������������������158 National Empowerment Fund (NEF)���������������118 Nelson Mandela Bay Business Chamber�����144 NURCHA������������������������������������������������������������������������101 Petroleum Agency South Africa�����������������������109 Port Elizabeth FET College����������������������������������132 Premier Hotels and Resorts������������������������48, 135 RE/MAX Independent Properties��������������������102 SAbamboo����������������������������������������������������������������������34 Seda Nelson Mandela Bay ICT Incubator����120 St Andrew’s College�����������������������������������������������136 St Andrew’s Prep������������������������������������������������������136 St Francis Links������������������������������������������������������������50 The Biomass Corporation SA������������������������34, 67 The Boardwalk Casino����������������������������������������������41 The Diocesan School for Girls���������������������������136 Transnet Port Terminals������������������������������������ 3, 94 Transnet Rail Engineering������������� 82, 84, 86, 88 Tsogo Sun���������������������������������������������������������������45, 46 Volkswagen SA�������������������������������������������������������������77 Watt Energy�������������������������������������������������������������������33 204 VISITORS TO THE PROVINCE SEE THE BIG OUTDOORS,CONSERVATION, GAME PARKS, ADVENTURE AND RICH HERITAGE. We see a treasure trove of opportunities for investors and local tourism operators. The Eastern Cape Development Corporation (ECDC) has helped several investors launch multi-million rand tourism developments such as golf courses, hotels and resorts. We also continue to partner with local tourism enterprises including travel agents, shuttle operators and arts and craft producers, to take advantage of opportunities in the tourism industry value chain. CONTACT RORY HASCHICK ON +27(0) 43 704 5710 or email email@example.com Hole-in-the wall in Coffee Bay located on the Wild Coast of the Eastern Cape. Picture by John Castello. THE EASTERN CAPE DEVELOPMENT CORPORATION (ECDC) EXISTS TO STIMULATE LASTING BUSINESS GROWTH IN THE EASTERN CAPE BY PARTNERING WITH INVESTORS AND ENTREPRENEURS TO STRENGTHEN AND SUSTAIN THEIR BUSINESS IN THE PROVINCE. WE ACHIEVE THIS BY PROVIDING: FINANCIAL SERVICES • Development Finance (loans, equity and risk capital) NON-FINANCIAL SERVICES • • • • • Investment Promotion Trade Promotion Enterprise support (Enterprise Development Services) Projects Development & Management Property Development & Investments TELL US HOW WE CAN HELP YOU GROW YOUR BUSINESS IN THE EASTERN CAPE by calling +27(0) 43 704 5600 or visit www.ecdc.co.za EAST LONDON • KING WILLIAM’S TOWN • BUTTERWORTH • MTHATHA QUEENSTOWN • PORT ELIZABETH • MOUNT AYLIFF • ALIWAL NORTH