Western Cape Business 2020 by Global Africa Network Media

2020 EDITION

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

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The Cape Winelands District charts the way to a prosperous future A new regional Socio-Economic Development Strategy has been developed.

he Cape Winelands District Municipality has recently adopted its new Socio-Economic Development Strategy. The objective is to identify key social and economic challenges of the Cape Winelands region and find ways to overcome those challenges while exploring new opportunities for growth. The strategy outlines how the Cape Winelands District Municipality will invest in its people and how it will create an enabling environment in which business can develop, grow and thrive by fostering greater investment that will increase job growth and alleviate poverty. The involvement of local stakeholders in the process of developing their own territory is a prerequisite for sustainable growth.

Strategic goals Five main goals have been identified.

Growing and thriving entrepreneurship and innovation Businesses create employment for local residents, provide families with livelihoods and ignite local economic development. A strong and diversified business sector can assist to mitigate the area’s dependence on the agricultural sector. The municipality will: • Continue to focus on supporting small business development. • Continue to support sector development in wine tourism. Wine tourism already contributes in excess of R6-billion to the GDP annually and with a national wine tourism strategy and a coordinated plan, the aim is to increase that to R16-billion by 2025. The CWDM will continue to support industry associations such as VINPRO and WOSA to grow the wine tourism industry. • Grow the creative economy. The Cape Winelands is home to many artists, writers, dancers, designers, musicians, chefs, and all sorts of talented and interesting people. The Cape Winelands will support this ecosystem through its partnership with the University of Stellenbosch. • Promote innovation and diversification. Successful businesses continually strive to improve on their products and services and search for new markets. The municipality undertakes WESTERN CAPE BUSINESS 2020

to give recognition to those innovative businesses.

Working towards building safe, healthy, active and productive communities together The role of the Municipality is one of support, facilitation and creating an enabling environment. Coordinating efforts and cooperation between all spheres of government and the various NPOs and NGOs can prevent duplication of programmes and enhance the impact of programmes. The Municipality should not attempt to replace or duplicate the work done by NPOs and NGOs but aim to maximise the benefits of these civil society and private sector initiatives.

Facilitating investment attraction, retention and opportunities In order to attract foreign i nv e s t m e n t , g o v e r n m e n t should establish suppor t infrastructure and be committed to a pro-business (private sector) attitude. The local workforce should be well-trained, basic infrastructure should be in place and international links should be fostered. Potential investors

are also attracted by good governance and capable market institutions. The Cape Winelands District investment attraction, retention and opportunities plan has within it Business Retention and Expansion (BR&E), Investment Opportunities and creating competitiveness as key focus areas. The CWDM will continue to implement co-funded tourism projects with the private sector. The programme has already seen a number of successful projects: • The Franschhoek Hospitality and Learning Academy trains about 20 students a year in hospitality and students do in-service training at restaurants. • Dine with a Local project has been so successful that one of the hostesses is booked out a year in advance. • The DansCape ballet dancing in Zolani has produced talents that are currently dancing all over the world. • Past projects include the development of an online Wine Tourism Industry Toolkit which is a comprehensive online resource for the wine industry. • Tourism mobile apps for the district’s 14 towns have also been developed.

Environmental protection that promotes sustainable development and economic growth The key driver is to uplift rural places, the rural economy and people. The District will facilitate

Early Child Development centre staff members with their First Aid certificates. Training was sponsored by the CWDM. continued support for projects and programmes that improve competitiveness, encourage diversification of the rural economy and that improve community resilience, improve the quality of life in rural areas and that protect and enhance the natural environment.

Culture, diversity and vibrant places The Cape Winelands District Municipality is the Regional Tourism Organisation (RTO) for the Cape Winelands Tourism Region. The CWDM provides regional leadership and coordination and works with industry partners, such as the Local Tourism Associations, to grow tourism through activities such as strategic planning, research, product development, training and marketing. It is the people of the Cape Winelands, their stories, their books, their poems, their paintings, their theatre performances, their vision for their tourism businesses, their story-telling, their music and songs, their culinary creations, their wine-making talents, their arts and crafts and their business innovation talents alike, that the District wants to share with visitors. The tourism industry has an important role to play in attaining the region’s goals for growth and job creation.

The way forward The Socio-Economic Development Strategy provides strategies that will help the District Municipality in collaboration with its partners and communities to build on our socio-economic development efforts. It is only through collaboration and a shared commitment between all stakeholders, that the Cape Winelands Regional SocioEconomic Development Strategy can be successfully implemented. The Cape Winelands Socio-Economic Development Strategy builds on previous programmes and identifies new ways in which the District Municipality can grow the economy and facilitate the creation of new jobs. The strategy will continue to evolve over time so that the District Municipality and its partners can seize new opportunities and respond to emerging challenges.

WESTERN CAPE BUSINESS 2020

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CONTENTS

CONTENTS Western Cape Business 2020 Edition

Introduction Foreword

Western Cape Business is a unique guide to business, tourism and investment and tourism in the Western Cape.

Special features Regional overview

Water solutions are available

The Western Capeâ&#x20AC;&#x2122;s exports are expanding while the regionâ&#x20AC;&#x2122;s reputation as a technology hub continues to grow.

The De Rust WaterWise Ways project is showing the way.

Economic sectors Agriculture

Wine and grapes

Fishing

Mining

Blueberries are good for job creation.

Wine exports to China are up 109%.

Ownership patterns in the fishing industry are changing.

A huge project to increase volumes at the Port of Saldanha is planned.

WESTERN CAPE BUSINESS 2020

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Company Slogan

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Africa Biomass Company is the authorised dealer for Bandit Industries in Southern Africa. ABC has built up a substantial fleet of Bandit wood chippers for use by the company as part of our wood recycling services, but ABC also offers a whole range of Bandit wood chippers to clients who want to invest in the Bandit range. Bandit chippers are designed with quality, production and longevity in mind. Hand-fed chippers are mounted on custom-built, SABSapproved trailers. Owning a Bandit wood chipper will always put you in the front seat of reliable wood chipping operations. In many cases, the Bandit wood chipper sets the benchmark for other brands in the wood chipping industry. We are ready to supply the right Bandit wood chipping solution with advice and aftercare to your doorstep. All existing and new customers are welcome to contact us to become the owner of Bandit equipment.

Become an owner of a Bandit chipper All existing and new customers are welcome to contact us if they want to become the owner of the top-class range of Bandit equipment. Bandit Industries have delivered successful recycling solutions to basically every corner of the planet.

A commitment to support Africa Biomass Company is fully equipped and stocked to service and repair any Bandit machine anywhere in South Africa. We own a fully-equipped parts warehouse (650m²), manufacturing department as well as field services to ensure that parts are always readily available and our own, as well as our clients’ Bandit wood chippers are not out of commission longer than they have to be.

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WESTERN CAPE BUSINESS 2020

CONTENTS

Oil and gas

Energy

Manufacturing

Maritime

Construction and property

Tourism and events

Banking and financial services

Development finance and SMME support

Education and training

Business Process Outsourcing

The Western Cape is turning to gas.

Green business is blooming in the Western Cape.

Boatbuilding exports have soared since 2014.

The Oceans Economy is creating new opportunities.

Student accommodation is on trend.

Arts and culture are front and centre in the Western Cape.

Cape Town is a fintech hub.

Sauce company finds the right funding recipe.

Skills training is a national priority.

A war room is removing red tape in BPO.

WESTERN CAPE BUSINESS 2020

GROW YOUR COMPANY WITH OCCUPATIONAL AND CENTRES OF SPECIALISATION PROGRAMMES their occupational programmes - the theoretical as well as the practical training - they are completely ready to work in their chosen occupation.

Industry Fields - We offer various types of occupational courses in the following elds: Art & Design Beauty Thearpy Building & Civil Engineering Business Studies Education and Training Educa Electrical Engineering Haircare Hospitality Information & Communication Technology CENTRE OF SPECIALISATION (CoS) is a national programme aimed at producing: workfo A skilled and capable workforce to support inclusive economic growth Increased availability of intermediatelevel technical skills Increased delivery of qualiied artisans in 13 priority trades Improved capacity of public TVET colleges to train in skills in demand by industry

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Change technical skills training in your company from a money-taker into a money-maker by getting these benefits through CoS: app During apprenticeships: - Productive value of apprentice’s work - SETA grant towards training costs Tax-break from SARS - BBBEE scorecard points for skills development - Opprtunity to shape college curriculum, thereby improving future supply of suitable workers After apprenticeships: - Skilled employees, trained to industry standards & acculturated to your company - immediately p productive - Lower-risk and lower cost of recruitment - Enhanced employee retention

WESTERN CAPE BUSINESS 2020

CONTENTS

Government Western Cape Provincial Government An overview of the Western Cape Provincial Government departments.

Reference Sector contents

Index

Maps

Western Cape municipal map

ABOUT THE COVER: Credit: subman/iStock by Getty Images. Cape Town routinely wins awards such as “Africa’s Leading Festival & Event Destination” 2018 and 2019 (World Travel Awards, 2018 and 2019). Surveys often find that tourists love the place, such as the Daily Telegraph’s readers who voted in the Telegraph Travel Awards for “Greatest City on Earth”. The city has 33 Blue Flag beaches, nine Blue Flag marinas and two UNESCO World Heritage Sites, Robben Island and the Cape Floral Kingdom. Beyond the Cape Peninsula, the Cape Winelands ranks among the must-sees, as does the Garden Route. WESTERN CAPE BUSINESS 2020

FOREWORD

Western Cape Business A unique guide to business, investment and tourism in the Western Cape.

Credits Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Managing director: Clive During Online editor: Christoff Scholtz Art director: Brent Meder Designer: Richard Smith Production: Lizel Olivier Ad sales: Gavin van der Merwe, Sam Oliver, Jeremy Petersen Gabriel Venter, Vanessa Wallace, Shiko Diala and Sandile Koni. Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

he 2020 edition of Western Cape Business is the 13th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape.

The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature examines the water sector in the light of the drought which led to many people rethinking their approach to this vital resource. The journal contains news and information from business and investment agencies and bodies such as the Cape Chamber of Commerce, the Western Cape Business Opportunities Forum and Wesgro, the Western Cape’s dedicated tourism, trade and investment agency for the Western Cape and the City of Cape Town. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.westerncapebusiness.co.za. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at www. globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. ■ Chris Whales Publisher, Global Africa Network Media • Email: chris@gan.co.za PUBLISHED BY

DISTRIBUTION

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

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

Member of the Audit Bureau of Circulations

ISSN 1816 370X

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

International, Pesto Princess, Dr Joseph Raimondo/UCT, Richard Smith, Southern Wind Shipyard, Transnet National Ports Authority, Chris Whales. DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Western 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 | Pictures supplied by subman/iStock by Getty Images (cover), Amdec Group, Gouritz Cluster Biosphere Reserve, iStock by Getty Images, Marriott

WESTERN CAPE BUSINESS 2020

SPECIAL FEATURE

A regional overview of the Western Cape By John Young

The Western Capeâ&#x20AC;&#x2122;s exports are expanding while the regionâ&#x20AC;&#x2122;s reputation as a technology hub continues to grow.

nvestment into the Western Cape is steadily growing in a wide range of sectors and from an increasingly diverse set of countries. These include a Japanese financial services company, several French outfits concerned with financial technology and Spanish and Danish firms in the renewable energy sector. Tech giants such as Amazon and Microsoft have recently made major investments. The City-region surrounding the provincial capital, Cape Town, has established itself as a technology hub with ICT a priority for city and provincial governments. In global survey done in 2017, Savills identified 22 cities that had the

WESTERN CAPE BUSINESS 2020

potential to be world leaders in technology and Cape Town was on that list. More than 80% of schools in the province now have access to the Internet and foreign companies are choosing the Cape. The French government has officially designated the city as one of six global French Tech Hubs. French Tech Labs is a fintech incubator, offering mentoring for innovators, connections to possible investors and a chance to travel to France. Barclays Bank has invested in a fintech incubator in Cape Town, Rise. There are six other Rise sites around the world, including New York and Mumbai.

SPECIAL FEATURE

Amazon Web Services (AWS) will set up a data centre in Cape Town in 2020 to serve Sub-Saharan Africa. Microsoft Azure data centres have been launched in Cape Town and Johannesburg. There are 2 000 ICT firms in the Western Cape, and they have 17 000 employees. Encouraging investment in Cape Town has been recognised as something that needs a fulltime office and a strategy. Invest Cape Town is an agency of the city that works to create the best possible conditions to attract investors. Areas of focus include broadband access, energy security, the reduction of red tape and improving air access to the city.

The province has a dedicated investment agency, Wesgro, which also serves the City of Cape Town. The Investment Promotion Unit of Wesgro has been working with various regions within the Western Cape to attract investment and accelerate exports. Seminars have been held in the Cape Winelands, the West Coast and the Garden Route. In the decade to 2015, the Garden Routeâ&#x20AC;&#x2122;s economy grew at an average rate of 4.8% and total exports (about R2-billion) expanded by 45% in the same period. Key sectors are agri-processing, aviation, business services, education and training, financial services, real estate, ICT, light manufacturing, oil

WESTERN CAPE BUSINESS 2020

SPECIAL FEATURE

Key export facts

and gas, timber, tourism, waste beneficiation and clean energy. Being perceived as business-friendly is clearly important to policy planners in the Western Cape. In his first State of the Province Address, new Premier Alan Winde said in 2019 that his administration’s priorities included removing and streamlining barriers for business, developing a provincial “Ease of Doing Business Index” in the Western Cape, supporting informal and township economies and providing incentive schemes for small businesses. Africa was the destination for the largest share of Western Cape exports ($3.3-billion) in 2017, with SACU and SADC being the second and third largest subregions for Western Cape exports after the European Union ($2.4-billion). The rest of Africa is also the largest destination for investment by Western Cape companies, accounting for 54% of outward FDI investment from 2008 to September 2018. An estimated 46% of international companies investing in the Western Cape indicated that they intended using the Western Cape as a springboard into Africa (Wesgro). One of the strongest growth areas for exports is in the halal market. The inaugural Africa Halal Week in 2018 had 25 international guests with 700 delegates. Agricultural and agri-processing products have done well in all markets. WESTERN CAPE BUSINESS 2020

By reporting time at the end of Quarter 3 of the 2018/19 financial year, Wesgro reported: • A total of 16 global export business agreements amounting to an estimated R338-million in export value in Quarter 3. • R4-billion in trade deals secured for Cape Town and the Western Cape to date. • Resulting in 783 jobs over the next five years. Speaking at a conference in 2019, Cape Town City Mayoral Committee Member for Economic Opportunities and Asset Management James Vos said, “Our main aim is to be the go-to city in Africa for business, investment, film, trade and tourism.” Vos outlined how the city was investing in IT infrastructure, with 848km of fibre-optic cable laid and a further R1.9-billion in the pipeline to be spent on fibre infrastructure. The successful Air Access programme has not only boosted tourist numbers to the Western Cape. The new United Airlines flight between Cape Town and New York will lead to an increase in direct and indirect imports into the province, with cargo capacity contributing approximately R94million in possible additional trade. It could also contribute R286-million to the Gross Geographic Product (GGP) and R144-million in direct Gross Value Add (GVA) to the local economy.

SPECIAL FEATURE

Economy

Regions

Finance, business services and real estate combined contribute 28% to the Gross Domestic Product (GDP) of the Western Cape. The financial services and insurance sectors are key components of the economy. Many of South Africa’s biggest companies have their headquarters in Cape Town. Asset management and venture capital companies have been growing steadily. Although agriculture only accounts for 4.3% of GDP on its own, the sector is responsible for the fruit and vegetables that contribute to agriprocessing which accounts for nearly 40% of the province’s export basket. (Agri-processing accounts for 8.1% of GDP.) Citrus, wine, apples and pears, grapes, fruit juice, fruit and nuts and tobacco all appear in the top 10 of the province’s exports. Seventy percent of South Africa’s beverage exports come from the Western Cape. Grapes and wine sales to Europe remain very strong but the Chinese market is becoming increasingly important. The province has a diverse manufacturing sector ranging from textiles, clothing, footwear and furniture to coke and refined petroleum products. Excluding agri-processing, other manufacturing makes up 6.9% of GDP.

The province is divided into one metropolitan municipality and five district municipalities:

Cape Town Metropolitan Municipality Cape Town is a culturally diverse and dynamic metropolis set among beautiful beaches and winelands with the spectacular Table Mountain as a backdrop. The city is the engine of the regional economy, with most of the Western Cape’s heavy and medium industry located within the metropolitan area of Cape Town. The largest sector in the city’s economy is the financial and business services industry. The opening of a branch of the JSE in the city is a sign that this sector continues to grow, as is the decision of more asset managers to move their headquarters to Cape Town. The tourism, retail, construction and property sectors have been doing well for many years. The city has a population of 3.2-million and contributes 76% of the Regional Gross Domestic Product. Cape Town is home to the nation’s parliament and is the site of two World Heritage Sites: the Cape Floral Region (including Table Mountain) and Robben Island. The Cape comprises only half a percent of the landmass of Africa yet the Cape Floral Region accounts for nearly 20% of the flora

WESTERN CAPE BUSINESS 2020

SPECIAL FEATURE

The property market in Plettenberg Bay reflects this Garden Route town’s popularity as a destination. of the continent. Robben Island was the site of the incarceration of the most prominent political prisoners during the apartheid era, including Nelson Mandela. Cape Town has been welcoming the world in increasing numbers since Mandela’s release in 1990, and it is now regarded as one of the world’s great tourist destinations. The Port of Cape Town is ideally situated at the crossroads of some of the world’s most important trade routes. The transport, maritime and logistics sector is consequently very important. Bunkering and ship repair are other vital port facilities, and the boat repair and boat building industries continue to grow. The port plays a major role in exporting the province’s excellent fruit, wine and other agricultural products to international markets. Cape Town has a diverse manufacturing sector, with petroleum products, food and beverages and metals and metal products being major sectors. Growth sectors include the film industry, ICT and other tech specialities such as fintech and medical diagnostics.

West Coast District Municipality

Towns: Saldanha Bay, Malmesbury, Clanwilliam, Vredenburg, Moorreesburg. The economy of this region ranges from manufacturing in Saldanha, Atlantis and Malmesbury to agriculture and forestry centred on inland towns like Moorreesburg (wheat), Cedarberg (forestry) and Citrusdal. Cement is made in Riebeeck West and Piketberg and fishing takes place all along the coast. Rooibos tea and WESTERN CAPE BUSINESS 2020

shoes are made in Clanwilliam. The remote mission station of Wupperthal, famous for its veldskoens, suffered a bad fire in 2018. The Port of Saldanha Bay is the principal port for the export of iron ore and with the impending declaration of the Saldanha Industrial Development Zone, is gearing up to service the continent’s oil and gas industry with oil rig maintenance among the services. Mineral sands are mined north of Saldanha.

Cape Winelands District Municipality

Towns: Stellenbosch, Paarl, Worcester, Robertson, Wellington, Franschhoek. Nearly 70% of South Africa’s wine comes from this area. Vineyards also attract many tourists but tourism in the Winelands includes wellness spas, adventure tourism and game farms. Manufacturing is concentrated on processing grapes and fruit into wine, juice, brandy, dried and tinned fruit products. Dairy manufacturer Parmalat has a large cheesemaking facility in Bonnievale. Robertson is known for roses and thoroughbred horses. Stellenbosch is home to its eponymous university which is becoming synonymous with tech start-ups and innovation. Several large companies, such as PSG Group, have their headquarters in the town.

Overberg District Municipality

Towns: Caledon, Bredasdorp, Hermanus, Swellendam, Cape Agulhas. The Overberg contains the southernmost tip of Africa (Cape Agulhas), the oldest mission station in South Africa (Genadendal), a large casino resort (in Caledon) and some of the

SPECIAL FEATURE best whale viewing in the world ( Whale Coast). Swellendam is a superb location for the cultivation of berries and horse breeding. The region hosts high-quality fruit farms in the Ceres Valley and rural villages that are very popular with tourists such as Barrydale and Greyton. Agriculture is the principal economic activity of the region and the services sector is strong.

plant while George is a node of manufacturing, trade and administration. The Klein Karoo has its own wine route and port, cheese and brandy are produced. Fruit, vegetables and ostriches are other main products.

Central Karoo District Municipality

Towns: Beaufort West, Laingsburg, Prince Albert. The largest district in the province has the smallest population, a reflection of the semi-desert conditions: 71 000 people live on 38 000kmÂ˛. Sheep farming predominates and there are plans to introduce agri-parks to towns in the region. Beaufort West is strategically positioned on the N1 highway which links Cape Town with the interior of South Africa but has been experiencing terrible drought conditions in recent years. The nearby Karoo National Park has acquired some lions and Prince Albert is a quaint town in the shadow of the Swartberg Mountains, close to the dramatic portals that link the Karoo to the Klein Karoo: Seweweekspoort, the Swartberg Pass and Meiringspoort. â&#x2013;

Garden Route District Municipality

Towns: George, Oudtshoorn, Calitzdorp, Knysna, Mossel Bay, Plettenberg Bay. The area has two important tourist names: the Cape Garden Route on the coast and the Klein Karoo between the mountain ranges. Route 62 is a popular route which ends (or starts) in Oudtshoorn, home of the Cango Caves. A report by the Bureau for Economic Research has found that the Garden Route DM is one of the best-performing regions because of tourism. The area is famous for fine golf courses and golf estates. Mossel Bay, where the slipway in the harbour has received a multimillion-rand upgrade, hosts a large gas-processing

Municipalities in the Western Cape

Metropolitan/District Municipality Boundary Local Municipality Boundary

WCDMA01

Garden Route

District Municipality

Oudtshoorn

Local Municipality

Northern Cape Matzikama

WCDMA05 Cederberg

Beaufort West

West Coast

Central Karoo

Bergrivier

WCDMA02

Saldanha Bay

Laingsburg

Swartland

Cape Winelands City of Cape Town Metropolitan Municipality

Kannaland

Oudtshoorn WCDMA04

Garden Route

Breede Valley Drakenstein Langeberg

Mossel Bay

Stellenbosch Theewaterskloof

Overberg Overstrand

George

Knysna

Bitou

Hessequa Swellendam

Cape Agulhas

ATLANTIC OCEAN

Eastern Cape

Prince Albert

Witzenberg

INDIAN OCEAN

WCDMA03

WESTERN CAPE BUSINESS 2020

Red Tape Reduction Unit Western Cape. The Unit follows a twopronged approach in tackling bottlenecks in the business environment: • reactive through its response to cases lodged to the unit; and The Red Tape Reduction Unit makes it easier for businesses • proactive, which seeks to identify legislation and to thrive in the Western Cape, by growing our economy and processes that represent barriers to business or creating more jobs. The amount of red tape and bureaucracy efficiency in government, and designing faced by businesses when dealing with government restricts interventions that cut across an entire industry sector in the Western Cape. The Unit follows a twopronged approach in tackling bottlenecks in the economic development and growth. Creating an enabling or several processes. business environment: The Red Tape Reduction Unit makes it easier • reactive through its response to cases businesses to thrive in the Western Cape, by environment for business is,for therefore, fundamental tojobs. creatinglodged to the unit; and growing our economy and creating more • proactive, which seeks to identify amount of red tape and bureaucracy faced legislationThe and processes that represent a competitive economy. The outcome of the interventions must impact on the cost by businesses when dealing with government barriers to business or efficiency in restricts economic development and growth. government, and designing interventions Creating an enabling environment for business Research shows that red tape costs South Africans R79 of doing business that cut across an entire industry sector or in terms of reducing either time, costs is, therefore, fundamental to creating a several processes. competitive economy. billion per year. This is equivalent to 6,5% of GDP, or 16,5%Theofoutcome oforthecomplexity. To date the unit has dealt with almost 8,000 interventions impact in the Western Cape. The Unitmust follows a twoResearch shows that red tape costs South on pronged the costapproach of doingin tackling businessbottlenecks terms of in therelated matters. It maintains a resolution Africans R79 billion per Project year. This is (SBP) equivalent the total wage bill in 2003 (Small Business 2005). business andinred tape reducing either time, costs or complexity. business environment: The Red Tape Unit makes easier to 6,5% of GDP, or Reduction 16,5% of the total wageit bill To date the unit has dealt with almost 8,000 • reactive through its response to cases for businesses to thrive in the(SBP) Western Cape, by in 2003 (Small Business Project 2005). inunit;excess of its 85% target. business lodged and rate red tape related matters. It to the and growing our economy and creating more jobs. maintains a resolutionwhich rate in excess • proactive, seeks oftoits 85% identify The amount of red tape and bureaucracy facedtarget. legislation processes representRegulatory Impact Assessments (RIAs) Red tape is defined as: andThe WCGthatmade tape is defined as: with government byRed businesses when dealing barriers to business or efficiency in • restricts non-essential procedures, forms, and licences, economic development growth.The WCG made andRegulatory Impact government, designing interventions and regulations that add to the cost Creating an enabling environment for business • non-essential procedures, forms, licences, and of Assessments standard practice forornew policy and legislation. Cabinet has (RIAs) standard practice forsector new that cut across an entire industry with government; or to creating a is,dealing therefore, fundamental policy and legislation. 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Department of Transport and Public Works that diminishes the competitiveness ofas:the partnered with sister departments to improve businessfacing RedRed tape interferes with: tape is defined (tourism signage and abnormal load permit • • the non-essential ability of businesses compete procedures,to forms, licences,applications) and Agriculture (export related The WCG made Regulatory Impact aand global marketplace as ato result of of regulations that economic add the cost province, which standsinunnecessary in the way of processes. This benefits business process improvement processes, permit applications auditing). Assessments (RIAs) standardand practice for new costs and/or delays; dealing with government; or Several BPI project possibilities policy and legislation. 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Tape Reduction Unit was established applications) andbusiness Agriculture (export related processes, permit facing processes. This benefits by DEDAT in 2011. Its main objective was to improvement projects, such as remove bureaucratic blockages to make it For process more information on the(BPI) Red Tape Reduction Department of Transport and Public Works Red tape interferes with:easier andRedmore applications and auditing). Several BPI project possibilities with cost-effective to do business Unitthe please visit https://www.westerncape.gov. tape interferes with: (tourism signage and abnormal load permit • the ability of businesses to competeza/red-tape-reduction/ applications) and Agriculture (export related in a global marketplace as a result of • the ability of businesses unnecessary to compete in a global processes, national departments permit applications and auditing).are being explored as well. costs and/or delays; Several BPI project possibilities with national • rate of establishment of new departments as well. for making it easier, cheaper and faster to marketplace as a result ofthe unnecessary costs are being Theexplored potential businesses; and The potential for making it easier, cheaper and • the sustainability and/or growth of existing faster to do business in the province is huge, and/or delays; do business in the province is huge, considering the many enterprises. considering the many approvals, licences and authorisations that businesses need to operate. The Red Tape Reduction Unit was established • the rate of establishment of new businesses; and approvals, licences and authorisations that businesses need by DEDAT in 2011. Its main objective was to remove bureaucratic blockages to make it For more information on the Red Tape Reduction • the sustainability and/or existingto enterprises. operate. easiergrowth and more of cost-effective do business Unit pleaseto visit https://www.westerncape.gov.

Red Tape Reduction Unit Red Tape Reduction Unit

za/red-tape-reduction/

For more information on the Red Tape Reduction Unit please visit https://www.westerncape.gov. za/red-tape-reduction/

The Red Tape Reduction Unit was established by DEDAT in 2011. Its main objective was to remove bureaucratic blockages to make it easier and more cost-effective to do business in the

WESTERN CAPE BUSINESS 2020

DEDAT expands Global Entrepreneurship Week to Western Cape Entrepreneurship Month

he future of youth entrepreneurship in the Western Cape is bright indeed. As part of Global Entrepreneurship Week, which hosts thousands of events caterering to millions of people, the Department of Economic Development and Tourism has held a series of workshops at Youth Cafés, which focused on ideation, fundraising, and social media optimisation. The aim was to encourage youths in smaller towns to start their own businesses and to promote entrepreneurship as a skill. The week was dedicated to targeting young start-ups in townships and rural areas. The initiative diverged from the usual practice of having “suits-and-ties” teaching business advice to a generic audience. Talks were conducted by experts and business owners who understand “millennial culture”. The power of the workshops rested on the use of minimal technical jargon, colourful, easy-to-follow presentations, and concrete, usable business tips. Participants received tangible help in creating their business plans, checking idea feasibility, and understanding the importance of digital skills and having an online presence in the modern age of business.

Long-term support A single visit is unlikely to make a lasting impact on the current youth situation, where work prospects are limited. After engaging with management at the Youth Cafés, the Department of Economic Development and Tourism is looking into options for longer-term support, whereby contact is maintained and visits occur more frequently. A key goal is to move rural economies into the mainstream economy through targeted government support and assistance which creates

an enabling environment for businesses to thrive. While such interventions only scratch the surface of the problem, they do provide an excellent basis for gauging the demands and challenges faced by the locals. Thus, November’s events involved a range of activities, from workshops with young start-ups, to recognising the cream of the entrepreneurial crop at the Western Cape Entrepreneurship Expo, Summit and Awards. Youth and start-ups are very much interlinked so more startups need to be equipped with the skills to build SMEs. These workshops include themes such as business ideation, to maximising “likes” through developing a social media plan. We would like you to join the conversation around entrepreneurship, tackling red tape, and supporting the growth of the Western Cape economy.

WESTERN CAPE BUSINESS 2020

Commercial saved by cutting star’s red tape Nigerian model Jemima is the star in a well-known soap brand’s commercial. The R2-million commercial and 75 jobs were on the line when she couldn’t get a visa for three weeks because the South African mission in Nigeria was having technical difficulties with essential equipment. Without a visa, it looked like South Africa and the Western Cape economy would lose the shoot to India. Through the interventions by the Red Tape Reduction Unit (RTRU), with assistance from Home Affairs, the unit convinced authorities to allow Jemima to fly to Ghana, to apply for a visa there, because the South African High Commission in Lagos was closed in the run-up to elections (which were postponed). The result was that the shoot and the 75 people who were working, could continue per schedule, by ensuring that the actress would be able to make it in time for the location shoot.

Karoo reality show saved, by “cutting” the wait In 2018, Getaway Productions, a local film company, managed the production of a UK film “Carnage”, shot on a private farm in the Western Cape Tankwa Karoo. The film was paid for from the UK – a cost of R74m. It emerged, contrary to expectations, that filming on private farms was governed by environmental legislation. This resulted in production delays. These delays were compounded when the Department of Environmental Affairs and Development Planning (DEADP) insisted on a permit. This is typically a 109-day process which put the production in jeopardy. The RTRU intervened and was able to arrange a meeting with the DEADP within a week. The legislative conditions were explained to the production team and a more suitable location on the farm was found. This new location complied with both the necessary legislative and production requirements. The location was set up and shooting was finished within the stipulated time schedules. The direct benefit was an injection of R74-million into the provincial economy, with extensive secondary economic benefits for local businesses providing catering, accommodation, fuel and other services, such as maintenance and security. This while securing the reputation of the Western Cape as an attractive proposition for international filming. WESTERN CAPE BUSINESS 2020

Municipal Economic Support eases building plan approvals for local businesses realise savings through reduced red tape costs as a result of reduction in timeframes of approvals, and the easing of unnecessary complexity in finalising building plan applications. More importantly, the portal will allow applicants to track their applications and establish where it is in the approval process at any given time. This portal has reduced the approval time for plans from 32 days to 15 days. The Department of Economic Development and Tourism has also rolled the portal out to municipalities along the West Coast including Matzikama, Saldanha Bay, Bergriver and Cedarberg. Lauren Waring, The Executive Director: Planning and Development at Drakenstein Municipality, indicated that the partnership with the Department of Economic Development and Tourism was a valuable one, and that the new system significantly boosted staff morale. â&#x20AC;&#x153;It was also interesting seeing the rise in the number of compliments by satisfied applicants that the unit started receiving,â&#x20AC;? said Lauren.

The Municipal Economic Support Unit, in partnership with the Drakenstein Municipality, implemented the Collaborator Extension Project which involved the design and development of a Building Control Portal that allows clients to submit building plan applications online. This, along with technical process enhancements to current municipal electronic systems, aims to efficiently support the building control function and streamline processes and approvals. A benefit of the project is that local businesses

Managing abattoir waste Abattoir waste has been identified through numerous reports and studies as being the most problematic foodwaste type to manage in the Western Cape due to its hazardous nature and its potential impacts on the environment and human health. The Guideline on the Management of Abattoir Waste in the Western Cape was developed as one of the recommendations stemming from the Status Quo study of Abattoir Waste conducted in 2015. The guideline provides various role-players in the abattoir sector with the necessary advice to ensure compliance with the legislation while also

providing the various options available for management that ensures the protection of the environment and human health. The guideline also explores the possibility of regional cooperation among ro l e - p l aye r s a s a n option in resolving some of the challenges experienced in the sector. The mini-guide is a collaboration between the Red Tape Reduction Unit and the Waste Management Directorate of the Department of Environmental Affairs and Development Planning.

WESTERN CAPE BUSINESS 2020

The Western Cape economy in statistics Tourism statistics (2018) • • • •

Western Cape share of international tourist arrivals: 1.7-million (16.2% of SA) Total foreign direct spend in Western Cape: R16.3-million (19.8% of SA spend) Bed nights: 23.3-million (19.7% of SA bed nights) Length of stay: 12.9 nights (most in SA)

Top 10 tourism source markets (2018) 1. United Kingdom 2. Germany 3. United States 4. Namibia 5. France 6. Netherlands 7. China 8. Australia 9. Brazil 10. Italy

Western Cape export markets Largest markets for Western Cape exports Africa: $3.3-billion EU: $2.4-billion SACU: $1.8-billion SADC: $973-million

Western Cape export markets – Africa Exports to Africa 2015 $3.45-billion 2016 $3.19-billion 2017 $3.36-billion

Imports from Africa 2015 $2.76-billion 2016 $2.49-billion 2017 $2.79-billion

Exports to Africa by value (2017) Refined petroleum oil: $558-million Flat rolled iron: $185-million Tobacco: $122-million Fruit and vegetable juices: $105-million Apples, pears and quinces: $96-million WESTERN CAPE BUSINESS 2020

egion

estern Cape Trade & Investment into Africa 018 1. Introduction to Trade

Imports from Africa by value (2017)

Crude petroleum: $1.9-billion Frozen fish: $69-million The Western Cape exported USD9.33bn worth of goods USD13.9bn worth of goods in 2017. The Shirts: and imported$67-million trade deficit is mainly due to the large importMalt of petroleum when excluded from imports and exports beer: products, that $59-million reverse to a trade surplus. The strategic location of the Western Cape, being home to three important South African Men’s clothing: $54-million ports makes it the second largest province in terms of total trade after Gauteng. The Western Cape’s total share of South African exports was 10.46% in 2017.

Top African destinations for Western Cape exports (2017)

The Western Cape has advantageous access to world markets through preferential trade agreements between Namibia: $864-million Botswana: the United States. $518-million South Africa and other major markets such as Europe and South Africa is also a member of the Kenya: the Trade Development $225-million Southern Africa Development Community (SADC), and Cooperation Agreement (TDCA) Zambia: $210-million and the Southern African Customs Union (SACU) among other agreements. The international trade regime has $193-million certainly seen some reorganisation of late. Lesotho: To the North, Brexit has cast widespread uncertainty across almost every aspect of cross-border trade and investment involving the UK. To the West, global supply chains have been Top foronWestern imports (2017) unsettled by the renegotiation of NAFTA (now theAfrican USMCA) sources and US tariffs steel and Cape aluminium. To the East, Angola: $1-billion China’s escalating trade war with America will have far-reaching economic repercussions. Nigeria: $678-million The potential showstopper, however, is happening right here on the doorstep of the Western Cape, with the signing Namibia: $204-million Swaziland: of the African Continental Free Trade Area (AfCFTA) Agreement earlier$186-million in 2018. The AfCFTA aims to establish a Equatorial Guinea: (AU). $88-million free trade area spanning the 55 Member States of the African Union It was launched in March 2018 and has been signed by 49 countries. The AfCFTA includes undertakings by Member States to progressively eliminate Cape of agricultural products imported by tariffs and non-tariff barriers to trade in goodsWestern and liberalise trade share in services; cooperate on investment, intellectual rest property rights, competition policy, customs the matters, andoftoAfrica establish(2017) a dispute settlement system. Fruit and vegetable juices: 20.4% The AfCFTA is aspirational by nature; it is Fresh a framework will systematically be implemented by apples,agreement pears and that quinces: 6% building upon existing Regional EconomicWine: Communities (RECs) and preferential 20.7%trade arrangements. The beverages: 49% Agreement establishes an agenda by which Other further fermented technical alignment and trade liberalisation will take place. The fruit: Agreement enters into force once ratified byCitrus 22 countries. Although South Africa 26.6% is likely to ratify the AfCFTA by the end of 2018, most of the details are only set to be negotiated over the coming years. Once in force and ratified the Agreement will become legally binding for South Africa.

Successful implementation of this agreement holds the potential to change the face of intra-African trade and Wesgro is the Official Tourism, Trade & Investment Promotion facilitate enormous investment into the Continent. The AfCFTA will cover a market of 1.2 billion people, projected Agency fora Cape andproduct the Western to reach 2.5 billion by 2050, and combinedTown gross domestic (GDP) of more Cape. than USD3.4 trillion. The economy of Africa as a whole is the second fastest growing region in the world however intra-Africa trade remains www. wesgro.co.za low (Afdb, 2017). In 2016 intra-Africa trade constituted only 18% of Africa’s total trade with the globe (Tralac, 2018). The United Nations Economic Commission for Africa therefore estimates that the AfCFTA has the potential to WESTERN CAPE BUSINESS 2020 27 boost intra-Africa trade by 52% by eliminating tariffs. They also predict that the figure would double through the elimination of non-tariff barriers.

INTERVIEW

Networking and learning from best practice are key for Cape businesses Geoff Jacobs, the President of the Cape Chamber of Commerce and Industry, supports efforts to reduce red tape for business. Geoff Jacobs, President What is the history of the Chamber? The Cape Chamber of Commerce and Industry traces its history back through its predecessor the Commercial Exchange of Cape Town to the founding in 1804 of the Kamer van Commercie by Governor de Mist, the Batavian Governmentâ&#x20AC;&#x2122;s representative. By 1860 business in the Cape had grown to such an extent that modern business services were in demand. As a result, the Commercial Exchange was established and merged with a new body in 1861 called the Chamber of Commerce. In 1891, the Cape Chamber of Commerce was incorporated by an Act of Parliament. In recent years, the Cape Chamber has been expanded to become the Cape Chamber of Commerce and Industry. Biography After a successful career in teaching, Geoff joined the corporate sector, eventually retiring in 2015 as HR Director of Maersk South Africa. Geoff runs his own management consultancy and serves on the boards of Dinaledi Educational Coaching, School Turnaround Foundation and St James Church, Kenilworth. Geoff has BA and BEd degrees from UCT, a BA (Hons) degree from UNISA, an MA from the University of Wisconsin, and an MBA from UCTâ&#x20AC;&#x2122;s Graduate School of Business.

WESTERN CAPE BUSINESS 2020

What is your strategy and how do you express it? The strategy of the Chamber is a single word: engagement. The more we create opportunities for our member organisations to engage one another, the more value is created for members. This includes more than 200 events per annum, ranging from training programmes linked to business effectiveness and efficiency, to engaging local, provincial and national government officials on strategies to turn the economy around. The tagline of the Chamber is: Where Opportunity Meets. We work hard to remain abreast of the key challenges in our region, and through our portfolio committees to give input into legislative changes. Through our Chapters, our footprint extends across the Western Cape, addressing local issues. The biggest need for business is the need for networking and learning from best practice and the Chamber facilitates this at every event that it hosts. What are some of the challenges that businesses face in the region? In a recent survey of its 2 100 member organisations, respondents gave clear responses. Firstly, over-regulation/bureaucracy: the plethora of legislative requirements for businesses is an obstacle 28

INTERVIEW challenge the powers that be on the crisis facing our business ecosystem.

to doing business. Less red tape and a more business-friendly environment encourages innovation and enterprise. In the Western Cape, we’ve already seen the benefits of the Premier’s Red Tape Reduction Unit, which we acknowledge as a step in the right direction. A second issue can be grouped under a broad category – national infrastructure challenges – electricity supply and rail commuter infrastructure, specifically. The failure of Eskom to guarantee consistent energy supply carries massive risks for businesses. The Chamber is in full support of the local and provincial government’s efforts to effect a shift to renewable energy and to promote investment in Independent Power Producers (IPPs). Similarly, the Metrorail crisis has put thousands more vehicles on the roads during peak commuting hours, creating serious traffic congestion. This has a direct bottom line impact on business. Problems are not show-stoppers but challenges to be confronted, and the Chamber supports local and provincial government structures working to address these challenges. A third challenge is that relating to late payment to small business suppliers. The Cape Chamber will continue to lobby for this issue to be resolved at government level, as this benefits the entire economic eco-system. What makes the Western Cape unique is that its provincial government is alive to these challenges and understands that it is not government’s role to create jobs, but to create an investorfriendly and business-friendly environment, so that business can get on with the job of creating jobs. Has the Chamber as a business also been affected? The Chamber has not been immune to the challenges outlined above. We have introduced a flexible working arrangement to avoid the congestion. Similarly, the effects of crime and violence have been experienced by many of our employees. The fact that we experience the same challenges as our members gives us the credibility to speak with greater conviction when we 29

How do you provide value to your members? When it comes to a voluntary membership organisation such as ours, value is a key determinant of acquisition and retention. Although our role as the voice of business for the region is the foundation of the Chamber’s raison d’être, this is an intangible benefit that must be supported by valueadds that have value and are contemporary. We have an extensive list of benefits for our members that is often updated on our website, as it is changing constantly to keep pace with changing needs. How do you see the future of Chambers of Commerce? At the moment there is a social gap that technology is unable to fill. However, history has taught us never to underestimate its capability. Although we see digital as a key component of our future, the most strategic tool in our arsenal is the appetite for innovation that the Chamber has. The cost of testing new concepts has dropped dramatically with the Internet and I hope we set the bar for business when it comes to embracing changing needs. Sometimes you win and sometimes you learn. But to stand still is not an option. ■ www.capechamber.co.za WESTERN CAPE BUSINESS 2020

WECBOF fosters entrepreneurship in the Western Cape The Western Cape Business Opportunities Forum (WECBOF) celebrates its 24th year as one of the Western Cape’s longest-standing business associations. During its lifespan WECBOF has supported many entrepreneurs in moving from their start-up phase to becoming very successful organisations with many of these still operating, and contributing meaningfully to the economy. WECBOF has had to adapt and keep pace with an ever-changing economic, commercial, technological, political and socio-economic environment. The organisation today has as its central Arifa Parkar, CEO focus the sustainable growth and development of a community of young, successful entrepreneurs who will be able to lead businesses which will contribute in a positive way to growing and prospering our economy and creating much-needed jobs in our communities. Support to young entrepreneurs, through its 10x Growth Programme, comes in the form of:

CONTACT INFO Physical address: 3 Irene Street, Bellville 7530 Postal address: PO Box 707, Kasselsvlei 7533 Tel: +27 21 946 2519 Email addresses General enquiries: office@wecbof.co.za CEO: arifa@wecbof.co.za Website: https://wecbof.co.za/ Facebook: https://www.facebook.com/wecbof/ Twitter: @wecbof

• Access to financial and other business support services

• The identification of, and assistance with entry into, lucrative markets for entrepreneurs’ products and services.

Contact us today if you wish to sign up as a member. Our member packages are affordable, and are tiered from the more established corporate business to the new start-up. WESTERN CAPE BUSINESS 2020

WECBOF

makes it happen! T

he Western Cape Business Opportunities Forum (WECBOF) provides a platform for businesses to establish and maintain contact with fellow entrepreneurs; to have access to opportunities, information and training; and to have representation on a number of relevant forums of government and other associations focussed on growing and enhancing the commercial sector, with a specific focus on small, medium, and micro enterprises (SMMEs).

WECBOF is widely recognised and respected as a powerful voice for business in the Western Cape; we are a provincial service organisation with our focus and attention firmly on the national and international business pulse. CALL US TODAY.

+27 21 946 2519 office@wecbof.co.za www.wecbof.co.za 31 www.facebook.com/wecbof/ @wecbof

A powerful voice for business. WESTERN CAPE BUSINESS 2020 Where entrepreneurs excel.

DISCOVER BELLVILLE Bellville has played an instrumental role in the City of Cape Town’s success story ever since it was established in 1860. Today, it is a vibrant, busy urban centre where people live, work and play every day. It’s a proven commercial engine that services businesses from multinational corporates to small- and medium-sized enterprises. It’s a centre of academic excellence and a medical hub. It’s home to Cape Town’s busiest public transport interchange. It’s culturally and socially diverse. It has a well-established existing infrastructure, including multiple fast fibre broadband networks. It’s also the place where some of South Africa’s leading musicians, artists and creative personalities launched their careers.

This is Bellville. A place of potential, a place of opportunity. And it’s ripe for development. WESTERN CAPE BUSINESS 2020

Over 4000

small- and medium enterprises

400 000 daily commuter trips through Cape Townâ&#x20AC;&#x2122;s busiest transport interchange

Multiple existing, fast fibre broadband networks

6 of the largest

corporate headquarters

9 major

educational institutions

1 GREAT Opportunity 100 000 students 3 major shopping centres

More hospital beds

Arts, crafts + music

than any other centre

250+ Medical Practitioners

The Greater Tygerberg Partnership is working to create a new reality for the city that plays such an important role in Cape Townâ&#x20AC;&#x2122;s broader success. We invite you to come and discover Bellville. Find out about the development opportunities. Explore what already exists here and its potential to be so much more. Find out more. Get involved. Discover Bellville. Email info@gtp.org.za. Visit gtp.org.za. Call +27 (0)21 823 6713 Bell Park Building Unit 3A Corner of De Lange Street & Durban Rd Bellville, 7535, South Africa

WESTERN CAPE BUSINESS 2020

SPECIAL FEATURE

Water solutions are available The De Rust WaterWise Ways project is showing the way.

pilot project in the small rural town of De Rust has shown that a constructed wetland system and wastewater reuse can improve the health of a catchment system and convert wastewater into a useful resource. The WaterWise Ways Project of the Gouritz Cluster Biosphere Reserve (GCBR) has several components, but the De Rust Wetlands project (pictured) is the most ambitious. The project has proved that a constructed wetland can “scrub” municipal sewage water, reduce polluted run-off in a catchment area and convert wastewater into a useful resource. The wetland and its adjoining tree nursery are maintained through the project, with the Oudtshoorn Municipality assisting with water testing. The GCBR is a voluntary citizens’ initiative dedicated to conservation and socio-economic development. The Gouritz Cluster Biosphere Reserve is officially designated by UNESCO and is South Africa’s largest biosphere reserve. Other parts of the WaterWise Ways project include a “Township war on leaks” and a system of community monitors working in the nearby town of Dysselsdorp. The small river that feeds the De Rust wetland runs off the Swartberg Mountains and feeds into the Olifants River. The Breede-Gouritz Catchment Management Agency (BGCMA) is one of nine regional bodies which protects, develops, conserves, manages and controls water resources across South Africa. It is WESTERN CAPE BUSINESS 2020

responsible for the catchment area of the Gouritz River and its major tributaries (the Gamka, Groot and Olifants) as well as the catchments of the smaller coastal rivers, the Breede River, which discharges into the Indian Ocean, and the catchments of the smaller coastal rivers such as the Palmiet and Bot rivers. The Breede River’s main tributary is the Riviersonderend River. The BGCMA oversees the certification of water usage through Water Use Validation and Verification certificates. The body has recently had to play a role in drought mitigation measures, particularly in the dry interior. In 2030 South African demand for water will be 17% greater than supply. That is the verdict of the 2030

SPECIAL FEATURE Water Resources Group. The Water Resources Group, an international consortium of private companies, agencies and development banks, has established a South African chapter, the Strategic Water Partners Network. The Berg River-Voëlvlei Augmentation Scheme, finally approved at national level in November 2019, will pump water out of the Berg River in winter, having first allowed for enough water to cover the ecological water requirements of the river and the estuary. A Wa te r S te w a rd s h i p programme has been introduced in the Breede River catchment area. WWF-South Africa, Woolworths and Marks & Spencer are collaborating on a scheme encouraging stone fruit farmers to put in place systems that reduce risk to water supply and quality. WWF-SA’s also has a Water Balance Programme which works to increase the amount of clean water coming into the environment. Woolworths’ contribution to this plan involves getting rid of alien vegetation on the farm where it sources its wines (Paul Cluver Wines) and in the Leeu River catchment area. The introduction by the National Department of Water and Sanitation (DWS) and the Water Institute of South Africa (WISA) of the Blue and Green Drop Awards has been successful. The nation’s municipalities receive scores reflecting how well they are doing in terms of providing clean water.

In order to win a Drop Award (Blue for water quality, Green for waste treatment), water systems have to score 95% or higher. The DWS has allocated R4.3-billion to helping municipalities deliver water. The Interim Water Supply Programme concentrates on 23 district municipalities. Although the Western Cape’s municipalities are among the country’s best in terms of providing and maintaining infrastructure, Overstrand Local Municipality has outsourced the management of its water and wastewater infrastructure. In 2019 the municipality, which is headquarted in the coastal town of Hermanus, signed a 15-year contract with Veolia Water Solutions & Technologies South Africa to look after its six wastewater treatment plants and nine water facilities. Other infrastructure includes 44 reservoirs, 123km of pipelines and 55 water and wastewater pump stations.

Climate adaptation The Western Cape Provincial Government has introduced a Smart Agri plan to coordinate efforts to tackle the effects of climate change on agriculture. Developed by two provincial departments (Agriculture and Environmental Affairs and Development Planning), the African Climate and Development Initiative of the University of Cape Town and several private sector participants, SmartAgri has six priorities: • Conservation agriculture: minimal soil disturbance, crop diversity and permanent soil cover. Wheat yields have increased because of the programme. • Restoring degraded landscapes. • Improved catchment area management, including removing alien plants. • Energy efficiency. • Giving priority to climate-resistant crops and livestock. • Sharing knowledge. The wall of the Clanwilliam Dam is to be raised, doubling the capacity of the dam and bringing an additional 5 000ha of land under irrigation. After a lengthy delay, the project is now expected to be completed in 2023. The 13-metre addition will cost R2.5-billion and could support high-value crops for export such as citrus and table grapes. The land could also form part of the land reform programme. The Western Cape Provincial Government has given the national government notice with respect to another wall-raising project that has stalled. If the feeder canal of the Brandvlei Dam were to be raised by just 30cm, it would significantly increase the dam’s storage capacity and improve the prospects of farmers in the area. When the long-term drought was at its worst, tourists to Cape Town were encouraged to “Save like a Local”. Together with a range of technical and legislative measures, the campaign to get Capetonians and their guests to use less water worked remarkably well. Where the residents and businesses of the city were using

WESTERN CAPE BUSINESS 2020

SPECIAL FEATURE

Community members at work on the WaterWise Ways project. Image: Gouritz Cluster Biosphere Reserve. 1.2-billion litres-per-day in 2015, by the middle of 2018 the figure was 516-million litres. While the taps were not literally turned off (the dreaded “Day Zero” was averted), pressure in the pipes was drastically reduced. The International Water Association’s Water Loss Conference in Cape Town in May 2018 reported that two of the world’s largest advanced pressure control systems are operating in Cape Town. Restrictions on water use were introduced (car washing was outlawed completely, for example) and shopping centres introduced waterless sanitation. Cape Town’s hinterland thankfully experienced good winter rains but the town of Beaufort West in the Karoo continues to face a real crisis. In 2017 Cape Town hosted Water Desalination Symposium Africa, further evidence that relying on rain to ensure reliable supply in the future is not being contemplated. Old Mutual’s large campus in Cape Town is off the water grid. Since 2018, a waste-water filtration plant has been harvesting 650 cubic litres of drinkable water for staff members on the Pinelands site. It is estimated that the City of Cape Town will be able to save up to 15 000kl of water in the course of a month by not having to provide water for the 9 000 people who populate the campus. The Western Cape Department of Economic Development and Tourism (DEDAT) announced that investment into the Green Economy reached R1.2-billion in 2017/18. DEDAT also works on long-term water resilience with various stakeholders through an “Economic Water Security Workstream”. Other steps to secure future water supply include the WESTERN CAPE BUSINESS 2020

expenditure of R5.9-billion over five years by the City of Cape Town on desalination projects, aquifer extraction and water reuse. The National Department of Water and Sanitation is supposed to be responsible for bulk water supply, but the local authority has had to step in. To find the money to deal with the drought and the longerterm effects of climate change, the City of Cape Town issued a green bond for the first time in 2017. It was over-subscribed and allowed the city to get started on implementing its Climate Change Strategy. Some of the long-term projects falling under the strategy include new electric buses, energy efficienc y measures in city buildings, improved sewerage plants and the rehabilitation and protection of coastal structures. ■

Breede-Gouritz Catchment Management Agency Rethinking water usage and stormwater management.

outh Africa has always been a water-scarce country, but recent events have focused the minds of all citizens to the pressing need to preserve water resources and to use water more intelligently. One response at national level was to create nine Catchment Management Agencies. The Breede-Gouritz Catchment Management Agency (BGCMA) is the southernmost of the catchment agencies and falls mostly in the Western Cape. BGCMA offices are located in Worcester and George which enable the agency to assist local authorities, other water authorities and local communities.

Change is needed Among the steps that South Africa needs to take are changing the pattern of water usage, conserving water where groundwater recharges are feasible and focusing on capturing and storing stormwater in urban areas. This is according to the BGCMA’s Acting Water Use Manager and Geohydrologist, John Sibanyoni. John also suggests that municipal budgets “have at least a hydrogeologist and an engineer for water supply”. John, who has an MSc Geohydrology from the University of the Free State and is a Certified Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP),

Contact Details Address: 101 York Street, Dormehis Drift, George 6530 Enquiries: John Sibanyoni Tel: +27 23 346 8000 • Fax: +27 23 347 2012 Email: jsibanyoni@bgcma.co.za Website: www.breedegouritzcma.co.za

believes that the country and its citizens really need to focus or engage in interventions such as those outlined above. The drought afflicting the Karoo region is the result of a combination of factors, not limited to climate change and the lack of specialist skills in municipalities. The reliance on surface water as the sole supply of water is a key reason for the current situation, according to John. Dams in the Breede water management area have done relatively better than the Gouritz area, under which the Karoo falls. Catchment agencies are not responsible for the disbursement of funds but the BGCMA has been involved in various drought relief initiatives. BGCMA is participating in technical planning for new wellfields for water supply in local municipalities such as Beaufort West. Other activities that the BGCMA provides as assistance to local authorities include: • Water scarcity and usage awareness campaigns • Fast-track the finalisation of licence applications • Media tour participation. Another important function of the BGCMA is to issue licences for water use, ranging from existing use permits to high-level commercial usage licences. ■ WESTERN CAPE BUSINESS 2020

ADVERTORIAL

see money differently

NEDBANK’S INNOVATION JOURNEY TAKES CLIENTS INTO THE 21ST CENTURY Dr Fayzel Omar Provincial General Manager Nedbank Business Banking, Western Cape

aking into consideration the everevolving nature of the banking industry, Nedbank Provincial General Manager of the Western Cape, Dr Fayzel Omar, is confident his PhD in Business Administration will empower him with the knowledge he requires to keep abreast of the latest developments in the banking sector. Omar is passionate about his vision for Western Cape business owners and entrepreneurs seeking a unique banking experience and explains how Nedbank will support and grow businesses and retail clients in the Western Cape. To support the vast geography of the Western Cape his distribution cuts across eight regions, each led by skilled regional managers and supported by functional teams and product specialists across the integrated business channels of Business Banking, Small Business, Retail and Personal Banking. Nedbank’s decentralised Business Banking Cluster has 70 business managers located across the province. They specialise in commercial industries and the agricultural sector to support all sectors of the Western Cape economy.

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Working with communities is entrenched in our values through community development, skills development, education and job creation …

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‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate on what’s most important to you – running your business,’ says Omar. As your bank, we understand business banking, and remain committed to drawing on our expertise to support clients by adding value with innovative solutions through engaged people and localised structures. We know that success in business is about partnerships, and that is why we put the building of deep, lasting, value-adding relationships at the centre of

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… we understand business banking, and remain committed to drawing on our expertise to support clients by adding value with innovative solutions …

everything we do. This means your goals are our goals, your vision is our vision and your success is our success. Through our bigger-picture banking approach we immerse ourselves in your business and your industry so that we are an extension of your team, with a full understanding of your business requirements. This enables us not only to provide you with the banking solutions you need, but also to give you a bigger-picture view of how each of our products connects to create a framework that yields maximum impact across every facet of your business and beyond. When you add to this the insights and expertise available to you across Nedbank’s extensive network of multidisciplinary specialists, you know that you have a banking partner who is walking with you throughout your business journey. 'Working with communities is entrenched in our values through community development, skills development, education and job creation, as well as environmental conservation. These play a vital role in building a sustainable economy and vibrant society. We believe our fast-growing presence in communities goes a long way in enabling greater financial inclusion while contributing towards economic growth,' says Omar. And the innovation journey continues, ensuring greater value for clients. The Nedbank Money app allows clients to manage accounts, make payments and change their credit or debit card settings

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from their smartphone. The Money app also allows clients to make instant payments to anyone on their smartphone’s contact list, regardless of whether the recipient is a Nedbank client.

Nedbank’s payments app, Karri, simplifies school payments to help teachers, parents and children. The Karri app makes payments to schools for events such as civvies days, school trips and other fundraising activities easy and secure, using a built-for-purpose mobile payment application. Nedbank’s interactive ATM – a first for Africa

– gives clients access to live teller services over video, at any time, right from the machine. ‘This ATM also responds to the growing trend and need for business and individual clients to make large deposits and withdrawals at unconventional business hours.’

All of which are ways in which Nedbank continues to simplify and make banking for businesses and communities work for their good. Should you be interested in taking your business to its next level and improving staff engagement, and if you want more information about Nedbank’s specialised service offering, please call the Business Banking team on +27 (0)21 412 3000 or visit www.nedbank.co.za.

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SEE MONEY DIFFERENTLY WITH BIGGER-PICTURE BUSINESS BANKING Gerrit Henning, Nedbank Regional Manager of Retail and Business Banking: Northern Suburbs, explains how Nedbank works with communities to deliver banking solutions.

edbank continues to build on its client-centred strategy aimed at delivering distinctive experiences and channels of choice for businesses in the region. This has seen the bank simplify and enhance its product offering in line with its value banking philosophy based on simplicity, transparency and affordability. Innovation and technological advancements, as well as training and development of staff, have been key pillars in achieving the bank’s objectives. At the core of Nedbank’s offering in the Western Cape is a relationship-based model, with a business manager dedicated to your business as the key entry point into the bank. Henning has five years’ experience in the auditing and accounting profession and eight years’ experience with international companies. He has fulfilled various leadership roles in Nedbank, with 14 years as regional head of Business Banking. Henning is supported by an area office with 12 skilled business managers ready to take your business to the next level. ‘We encourage you to see money differently with the bigger-picture approach that

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… see money differently with the bigger-picture approach that Business Banking offers …

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Business Banking offers,’ says Henning. What does this mean for you? It is an additional benefit of banking with Nedbank Business Banking and means that your business and your personal financial needs are managed in one place. ‘Because business owners and their businesses are very often financially dependent on each other, our client service teams now also offer individual banking solutions to you and your staff, because we already know and understand your needs,’ says Henning. With this in mind, Nedbank has seamless offerings for you, your employees and your household. Nedbank provides several communities, including individual and business clients, with access to products and services through its Workplace Banking offering. To take your business to the next level please call the Business Banking team on +27 (0)21 928 2000 or visit www.nedbank.co.za.

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USING OUR MONEY EXPERTISE TO HELP CLIENTS Randall Bailey, Nedbank Regional Manager of Retail and Business Banking: Weskus and Swartland, explains how new brand values built on the bank’s expertise can benefit Nedbank clients.

ailey’s team operates from regional offices in Breda Street in Paarl, as well as from representative offices in Vredendal, Vredenburg and Malmesbury. He says the team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. His team is also supported by skilled agricultural specialists, who provide specialised advisory services to clients. With more than 20 years' banking experience, Bailey has been with Nedbank for just over five years and has worked in a number of areas, including credit. He also manages 14 retail branches across his region, providing clients with unique financial solutions. ‘It forms part of our purpose at Nedbank to use our financial expertise to do good for individuals, families, businesses and society,’ says Bailey. Nedbank’s goal to have all service offerings and business and consumer products managed under one regional structure makes it easier to deliver on its new brand proposition to see money differently.

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… the team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and service …

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To take your business to the next level or to obtain more information about Nedbank’s specialised service offering call Randall Bailey on +27 (0)21 412 3051, send an email to RandallB@nedbank.co.za or visit www.nedbank.co.za.

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ONE-STOP BANKING SERVICES FROM NEDBANK CAPE CENTRAL Karen Seboa, Nedbank Regional Manager of Retail and Business Banking: Cape Central, shares how partnerships can benefit Nedbank clients.

eboa’s team operates from its regional office at The Clock Tower in the V&A Waterfront and is ready to assist clients with professional advice, industry-specific solutions – including for the medical profession – and a comprehensive range of financial products and services for businesses and individuals in the Western Cape. Seboa has been with Nedbank for more than 20 years and has worked in a number of roles, including as area manager for the retail branch network and in Retail Relationship Banking. She prides herself on building relationships and understanding the needs of clients, saying that partnership- and relationship-based banking are key drivers of how Nedbank conducts business to ensure clients benefit from its money expertise. ‘It forms part of our purpose at Nedbank to use our financial expertise to do good for individuals, families, businesses and society,’ says Seboa. ‘We look forward to continuing our relationships with our valued existing clients, and to offering our value

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

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proposition to new clients as well. At the core of our offering in Business Banking is a relationship-based model, with a business manager dedicated to your business as your key entry point to the bank.’ To take your business to the next level or to obtain more information about Nedbank’s specialised service offering call +27 (0)21 412 3000, send an email to KarenSeb@nedbank.co.za or visit www.nedbank.co.za.

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RELATIONSHIPS AND UNDERSTANDING CLIENT NEEDS ARE KEY, SAYS EXPERT Naziem Esack, Regional Manager of Retail and Business Banking: Winelands, explains how new brand values built on the bank’s expertise can benefit Nedbank clients.

Esack, as a skilled banker, has been with Nedbank for eight years and has worked in a number of roles in his 38-year career in the banking industry. He was the area manager of Nedbank Business Banking in Helderberg and Stellenbosch before he started in his current role. He heads a team of retail and business banking experts with the aim of providing clients with unique business and financial solutions. ‘At Nedbank Retail and Business Banking we believe you need a financial partner who has a deeper understanding of your business – someone who offers innovative, relevant solutions and who gives you a banking experience that is hassle-free. As money experts, we are committed to doing good, so you can concentrate on

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

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what’s most important to you – running your business,’ says Esack. ‘We encourage you to see money differently with the bigger-picture approach offered by Nedbank Business Banking, and to take advantage of our one-stop banking service at Winelands region,’ says Esack. To take your business to the next level or to obtain more information about Nedbank’s specialised service offering call +27 (0)21 808 6700, send an email to NaziemE@nedbank.co.za or visit www.nedbank.co.za.

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

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

WESTERN CAPE BUSINESS 2020

KEY SECTORS Overviews of the main economic sectors of the Western Cape Agriculture Wine and grapes Fishing Mining Oil and gas Energy Manufacturing Maritime Construction and property

Tourism and events Banking and financial services Development finance and SMME support Education and training Business process outsourcing

46 48 50 51 52 54 58 60 61 68 70 71 76 84

WESTERN CAPE BUSINESS 2020

OVERVIEW

Agriculture Blueberries are good for job creation.

hile the Western Cape has a lower unemployment rate than most regions, the problem is still acute. Blueberries may provide part of the answer. â&#x20AC;&#x192; In discussions about what crops to promote, Wandile Sihlobo of Agbiz believes that South Africa should focus on horticulture, partly because it is labour-intensive. He gives an example of blueberries, which need 2.64 workers for every hectare planted. There are signs that his advice is being followed: gross value rose from R15.8-million in 2008 to R1.25-billion in 2018 with the total area planted expanding four times. Berries of all sorts thrive between George and Swellendam and sales of chippers in this area have grown because blueberries have to be vigorously pruned. This process produces lots of green waste which many farmers are choosing to process themselves. More than 70% of the blueberry crop is exported and two-thirds of production occurs in the Western Cape. Swellendam, which lies beneath the Langeberg mountains, produces 90% of the worldâ&#x20AC;&#x2122;s commercially grown youngberries, a crop of about 600 tons per annum. Youngberries are sensitive and labour-intensive. The Agri-Processing Support Programme run by the Western Cape Department of Economic Development and Tourism (DEDAT) helps small, medium and micro enterprises (SMMEs) improve their business WESTERN CAPE BUSINESS 2020

Sector Insight An ostrich merger has won Competition Tribunal approval. processes and get better access to markets. This is part of the broader Project Khulisa growth strategy that sees SMMEs as key for expanding economic growth. New Western Cape Premier Alan Winde announced in his first State of the Province address in 2019 that the province intends mak ing agriculture a bigger part of the educational offering available to pupils. He announced that to the traditional focus on STEM (science, technology,

OVERVIEW engineering and mathematics), two As (the Arts and Agriculture) would be added to create the concept of STEAMAC. Nearly 30% of exports come from agriculture, with food and beverages contributing a further 24%. Key sectors in many of the province’s nonmetro towns (such as retail and manufacturing) have a strong dependence on agriculture and agri-processing. The Western Cape Provincial Government reached its target of 100 000 new jobs in agriprocessing in 2016 but the sector has since been buffeted by bouts of avian flu and a once-in-a-generation drought. The drought in 2015 and 2016 had severe consequences in Southern Africa. StatsSA noted the following price increases in that period: vegetables (12.7%), bread and cereals (16%), while nearly 400 000ha less was planted in the country in 2017 than it was in 2014. The agricultural sector has had to make the biggest adjustments to climate change. The Provincial Government introduced a Smart Agri plan to coordinate efforts to tackle the effects of climate change on agriculture. The sector supports almost 10 000 farms and employs 214 000 people. Farming carried out on the Western Cape’s 13-million hectares of agricultural land comprises approximately 21% of South African commercial agriculture. Seven of the 10 biggest export earners are either agricultural products or agri-

processed goods. These are citrus, wine, apples and pears, grapes, fruit juice and tobacco. The province’s climatic regions vary from Mediterranean around Cape Town and on the coast (where annual rainfall can be 2 000mm at places) to the drier regions of the inland Karoo districts where annual rainfall figures can be below 150mm. Just over three-million hectares of the province is cultivated and 270 000ha are under irrigation. The Breede River Valley is an especially fertile area for fruit. The Western Cape specialises in apples, plums, pears and cherries. Peaches and nectarines can be found in most parts of the province. Raisins are a speciality of the Vredendal area on the West Coast. The Sandveld region on the West Coast is known as South Africa’s Potato Pantry. Citrusdal unsurprisingly does a strong line in citrus and, with nearby Clanwilliam, is also famous for rooibos and buchu. Wheat is another of the province’s strong sectors: the Western Cape’s 310 000ha planted to wheat represents 64% of South Africa’s crop. Japan is a major destination of the province’s maize production. In canola, the Western Cape is even more dominant, with 99% of the nation’s hectares (StatsSA).

Companies The ostrich processing industry has two major players which merged in the course of 2019, subject to an agreement not to retrench any workers for a three-year period, a condition imposed by the Competition Tribunal. Between them, Klein Karoo International and Mosstrich have four abattoirs in three provinces and tannery facilities in Oudtshoorn and Mossel Bay. There are more than 400 registered ostrich farms in South Africa, the majority of which are in the Western Cape and the Eastern Cape. Zeder Investments is the agricultural arm of investment holding company PSG Group. Zeder controls Capespan, which has a turnover of R7.6-billion across three divisions: farms, logistics and fruit. Zeder is also a 39.6% shareholder in Kaap Agri Ltd. Kaap Agri has more than 200 operating points. Zeder also owns 27.2% of Pioneer Foods which makes and distributes many big food and drink brands across Southern Africa, including Weet-Bix, Liqui Fruit, Ceres, Sasko and White Star. Caledon-based Overberg Agri is an unlisted company with a wide range of investments in several sectors, including mining, pet food and industrial fasteners. SSK (Sentraal Suid Ko-operasie) has outlets in the Overberg and in the Southern Cape as far east as George. ■

Online Resources National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za National Ostrich Processors of South Africa: www.nopsa.com Western Cape Department of Agriculture: www.elsenburg.com

WESTERN CAPE BUSINESS 2020

OVERVIEW

Wine and grapes Wine exports to China are up 109%.

here was less wine in 2019, but what wine there was was of a better quality and attracted better prices. A prolonged drought and variable weather conditions led to two seasons of reduced wine grape harvests, but Vinpro reports that exports earned just over R9-billion in 2018, an 11% increase in value despite a 6% decrease in volume. This fits in with a trend whereby South African winemakers are aiming for better quality instead of greater volumes. Which is not to say that volume is being ignored. Wine exports to Angola and China have doubled. In the four years to 2017, wine exports to China reached 18.2-million litres, an increase of 109%. Wesgro and WOSA (Wines of South Africa) are cooperating on the Chinese market. In May 2018, they hosted a wine tasting and pairing event in Shenzhen. South Africa is the eighth-biggest wine producer globally and produces about 4% of the world’s wine. The wine industry contributes R36-billion to the country’s gross domestic product (GDP) and employs nearly 290 000 people. Vinpro is the wine industry organisation which represents 2 500 South African wine grape producers, wineries and wine-related businesses. There are over 3 500 wine producers in South Africa, with the large majority located in the Western Cape. Wine is produced by estates, independent cellars and producer cellars or co-operatives. The Distell group runs five distilleries and seven wineries in the Western Cape and produces about a third of the country’s natural and sparkling wine. Wine tourism in the Western Cape grew 16% in the year to 2017, according to a study done by Wesgro and Explore Sideways. The study, which surveyed 40 tour operators responsible for 19 000 trips, also found that 99% of Cape Town-based itineraries include a trip to the Winelands. A Vinpro report shows that wine tourism contributes R15-billion to the local economy. Local wine sales bring in R13.2-billion. Excise and other taxes paid by the wine industry amounted to R6.7-billion in 2017, up by 8% from the previous year, according to Koos Nel of Old Mutual Personal Finance. South African Table Grape Industry Partnership (SATGI) is a partnership

Online Resources Cape Winemakers Guild: www.capewinemakersguild.com SA Wine Industry Information & Systems: www.sawis.co.za South African Table Grape Industry: www.satgi.co.za Vinpro: www.vinpro.co.za

WESTERN CAPE BUSINESS 2020

Sector Insight The table grape sector employs 46 000 people.

whose board membership represents every growing region. The industry’s contribution to the national GDP is estimated at more than R3-billion. The table grape industry in the Western Cape provided over 46 000 direct jobs during the 2015/2016 harvest. The province is responsible for 65% of total production in table grapes. There is also a significant contribution to downstream production income – R3.2-billion to other product input providers, R720-million to packaging material suppliers and R250million to logistics suppliers. ■

FOCUS

Wine tourism boosts Western Cape economy Further research on economic impact is planned. Research will be conducted in the course of 2020 into the value of wine tourism, along with a skills audit to identify training opportunities.

Wine tourism plan

outh Africa’s wine tourism sector is experiencing rapid growth and gaining international recognition, making this a lucrative sector for investment. A Food and Wine Tourism Market Report released by Wesgro and Explore Sideways at the end of 2019 indicated that 63% of tour operators believed the market grew in 2018, the total spend per trip increasing to above R60 000. “People are moving away from generic itineraries in search of something more unique. South Africa’s huge cultural and natural diversity, along with the world-class food and wine offering positions us perfectly to significantly grow the tourism market,” Vinpro wine tourism manager Marisah Nieuwoudt says. The International Wine Review and United Nations Tourism Organisation singled South Africa out as one of the best developed wine tourism destinations globally in 2012 and 2016. Lonely Planet identified the Cape Winelands as one of the global Top Ten Best Value Destinations, while Vergelegen Estate, Delaire Graff Estate and Creation Wines were listed as Top 50 Wine Destinations in the World. South Africa also has the longest wine route in the world, spanning six wine regions.

The wine and brandy industry has been serious about wine tourism since 2015, identifying it as a growth driver in the industry’s strategic framework, WISE (Wine Industry Strategic Exercise). A wine tourism plan was released, along with a digital visitor-facing platform Visitwinelands.co.za. Vinpro established a wine tourism desk to coordinate efforts of relevant parties including Wesgro, the SA Wine Route Forum, Wines of South Africa ( WoSA) and the Cape Winelands District Municipality (CWDM). I n 2019 Vinpro, with the suppor t of the CWDM, launched a free online Wine Tourism Toolkit and hosted a successful series of wine tourism workshops to help related businesses establish or expand their footprint. ■

Contact Details

Job creation Wine tourism helps to establish a personal connection with consumers, enhances brand loyalty, adds value to existing activities and boosts sales. It can also grow the job market as it has a low barrier to entry.

Marisah Nieuwoudt Tel: + 27 21 276 0429 Email: marisah@vinpro.co.za Web: www.toolkit.vinpro.co.za

WESTERN CAPE BUSINESS 2020

OVERVIEW

Fishing Ownership patterns in the fishing industry are changing. Sector Insight Sea Harvest celebrated 50 years with the launch of a new trawler.

iger Brands has unbundled its 42% stake in Oceana Group. Oceana holds the popular pilchards brand Lucky Star, which enjoys 80% of market share in South Africa, and has a market value of R11-billion. The Oceana Group recently purchased Foodcorp’s fishing rights and a US fishmeal and oil company, Daybrook. There have been several changes in ownership in the fishing industry, most likely linked to the upcoming determination of new fishing rights in which black shareholding will be a factor. The acquisition by black-controlled Sea Harvest Group of Viking Fishing is part of a larger trend in which empowered companies are taking controlling shares in fishing companies. Sea Harvest paid R885-million for Viking Fishing and celebrated its 50th anniversary with the addition to its fleet of a R130-million stern-fishing trawler, Harvest Atlantic Peace, which can catch and process up to 7 000 tons per year and can freeze up to 40 tons per day. Sea Harvest’s return to the main board of the JSE brought to three the number of major fishing companies represented on Africa’s biggest stock exchange. Premier Fishing also made its shares available to the public for the first time while the Oceana Group has been on the JSE for 70 years. The Western Cape is responsible for about 75% of the nation’s fishing, which ranges from the highly capitalised deep-sea trawling industry to much smaller lobster and abalone operations. Demersal fish such as hake and kingklip account for 46% of the national catch, with

Online Resources Fish SA: www.fishsa.org.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za SA Deep Sea Trawling Industry Association: www.sadstia.co.za South African Maritime Safety Authority: www.samsa.org.za

WESTERN CAPE BUSINESS 2020

pelagic fish (anchovy, pilchards and sardines) making up 23%. Lobster makes up 11% and linefish 13%. The Department of Agriculture, Forestry and Fisheries wants to restructure the horse mackerel industry to promote local fishers and processors. Most of South Africa’s large food companies have fishing divisions. Pioneer Fishing, which has no connection to the multi-product group Pioneer Foods, controls a canning, fishmeal and fish oil factory in St Helena Bay and a processing and freezing factory in the Port Elizabeth harbour. The African Pioneer Group holds a 40% stake in the company, which was formed as a joint venture with Suiderland to control the latter’s fishing rights. Premier Fishing and Brands Limited, a subsidiary of Sekunjalo Investments, runs 16 vessels and operates at seven locations, including a 1 760-ton cold-storage facility at the V&A Waterfront. The company has lobster plants at Port Nolloth and Hout Bay, and a fish meal plant at Saldanha. Dromedaris Visserye specialises in Cape lobster, and supplies sardines and anchovies to China and Japan. ■

OVERVIEW

Mining A huge project to increase volumes at the Port of Saldanha is planned. Sector Insight Mineral sands operations are expanding on the West Coast.

he road out of Cape Town north to Malmesbury and beyond has been rebranded the N7 Cape to Namibia Highway. But it’s probably not tourism that is driving the major roadworks that are happening on both sides of the Swartland’s biggest town. It is more likely that the volume of mining product coming from the West Coast has led to the upgrades. The Australian company running the Tormin mineral sands mine near Lutzville and Koekenaap has applied to greatly expand its operations, but this has run into objections from environmental groups. Mineral Commodities (MRC) spent R5-billion in 2019 in search of zircon, rutile, ilmenite and garnet to send to China. Namakwa Sands is a mineral sands operation on the West Coast, owned by Tronox. The company has a mine and concentration plant at Brand-se-Baai and a mineral separation plant at Koekenaap about 350km from Cape Town. Ilemnite, rutile and zircon are extracted at this site and then taken to the company’s smelter at Saldanha Bay. The Elandsfontein phosphate mine is also encountering resistance to its right to a water licence from the West Coast Environmental Protection Association which claims that the Elandsfontein aquifer and the Langebaan Lagoon are at risk. The developer of the mine Kropz is partly owned by African Rainbow Capital Investments. A project to increase export volumes of iron ore (shown being delivered above) at the Port of Saldanha is planned for 2020. The project is expected to cost in the region of R3-billion.

Online Resources Council for Geoscience: www.geoscience.org.za Geological Society of South Africa: www.gssa.org.za Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za

Sixteen rare earth minerals have been identified north of Vanrhynsdorp, with the most prevalent being cerium, an important component of catalytic converters. Afrimat has five sand mines, two lime plants and nine aggregate operations in the Western Cape. The Afrimat Kliprug Quarry in Durbanville is near the AfriSam Peninsula Quarry at Killarney north-east of Milnerton which mines greywacke stone which is then processed at the nearby plant into concrete aggregates. Pretoria Portland Cement (PPC) has operations near RiebeeckWest and Piketberg (De Hoek). Slasto and building stone are quarried near Clanwilliam. Consol quarries glass sand near Philippi. The Cape Bentonite Mine near Heidelberg is run by Ecca Holdings with another site east of Knysna at Roodefontein. Dimension stone occurs around Vanrhynsdorp and mediumgrain granite is found at Paarl. Limestone for cement, agricultural lime and feed lime is extracted at several sites in the province’s western regions while kaolin is found in Noordhoek and Somerset West. Ball clay is mined in the Albertina area by G&W Base and Industrial Minerals. ■ WESTERN CAPE BUSINESS 2020

OVERVIEW

Oil and gas The Western Cape is turning to gas.

he drive to turn to gas as a source of power for the province is set to intensify. The Western Cape’s new premier, Alan Winde, argued strongly for a liquid natural gas (LNG) power station to be allocated to Saldanha Bay as part of the national government’s Independent Power Producer Procurement Programme (IPPPP) when he was MEC for Economic Opportunities. He has since called for Eskom’s open-cycle gas turbine unit (which uses diesel) to be turned over to a private producer to convert it to gas and for another LNG power station to be built at Mossel Bay, where South Africa’s only gas-to-liquid plant faces closure because of a lack of feedstock. The announcement in early 2019 by Total that it had found a vast gas field in the southern Outeniqua basin may prove transformative but getting to the gas will be a lengthy and expensive operation. Other companies that hold shares in the basin include Eni and Exxon Mobil. Natural gas also lies offshore to the west of South Africa in the WESTERN CAPE BUSINESS 2020

Sector Insight The Western Cape spends R76-billion annually on crude oil imports. Atlantic Ocean (Ibhubesi). Block 2A of the Ibhubesi gas field north-west of Saldanha is estimated to have reserves of 850-billion cubic feet of gas. Industrial gas manufacturing in the Western Cape is a par ticular focus for Air Products, a part of the Metkor Group controlled by Remgro. The company is one of the

OVERVIEW largest suppliers in the pipeline and on-site markets. The Western Cape’s status as an oil and gas hub was enhanced in 2017 with the opening of a new open-access liquefied petroleum gas (LPG) import and storage terminal at Saldanha Bay. A public-private partnership is behind the R1-billion terminal, the largest of its kind in Africa. Investors include Sunrise Energy, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and Royal Bafokeng Holdings.

Oil Cape Town’s oil refinery changed hands in 2018 when Off The Shelf Investments (OTS) completed a $973-million purchase of Chevron’s downstream assets in South Africa. Chevron has been rebranded as Astron, but the Caltex service-station brand has been retained. OTS is the Black Economic Empowerment (BEE) partner of mining giant Glencore, who financed the deal. The refinery in Milnerton produces petrol, diesel, jet fuel and liquefied gas for the Western Cape and for export to other African countries. The Western Cape spends R76-billion annually on crude oil imports and exports refined petroleum to the value of R13.2-billion. Large quantities of oil are transported around the Cape of Good Hope every year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the Middle East. Reduced global prices for oil and troubles in the container ship market has caused some stress in the local sector but the long-term prospects for shipping and oil and gas are still strong enough for national government to pursue Operation Phakisa (which includes a strong maritime economy push) and for Transnet National Ports Authority to spend heavily on upgrading the nation’s ports. The Western Cape Provincial Government reported that in 2016 the oil and gas sector contributed R1.03-billion to the province’s gross value add. More than 7 000 direct jobs were created in the ship and rig repair sector of the oil and gas business in 2015. The Saldanha Bay Industrial Development Zone (SBIDZ) is central to the plan to grow the sector. Large industrial operations already exist at Saldanha and the Port of Saldanha Bay is the portal for the export of South Africa’s iron ore. Staff from the SBIDZ actively sought investors for the zone at

Online Resources National Department of Energy: www.energy.gov.za National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency South Africa: www.petroleumagencysa.com PetroSA: www.petrosa.co.za South African Oil and Gas Alliance: www.saoga.org.za

the Africa Oil Week, which was held in Cape Town in 2019. Nine investors, ranging from gas maintenance and repair companies to domestic and foreign oil companies, have already committed to the SBIDZ. The Western Cape Provincial Government and the National Department of Trade, Industry and Competition have so far invested R500-million in the development of core infrastructure at the Saldanha Bay IDZ. The Saldanha Bay IDZ has signed a lease agreement with the Transnet National Ports Authority. The newly constructed Bergun terminal, comprising 12 tanks located on the Eastern Mole of the Port of Cape Town, has added to the port’s fuel storage capacity and is connected by pipeline to the Astron refinery. The Council for Geoscience (CGS) is doing an intensive study of South Africa’s potential shale gas resources. The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers. The regulator and promoter of oil and gas exploration in South Africa is Petroleum Agency South Africa. In addition to adjudicating on coastal fields such as those along the western and eastern coasts of the Western Cape, the agency has awarded coalbedmethane-gas exploration rights in KwaZulu-Natal and natural gas exploration permits in the Free State. ■ WESTERN CAPE BUSINESS 2020

OVERVIEW

Energy Green business is blooming in the Western Cape.

he Western Cape is positioning itself as a green business hub and is working to find energy alternatives for households and businesses. GreenCape claims that nearly R700-million in green technology investments have already been attracted to the Atlantis Special Economic Zone, creating 300 jobs. A further R3.7-billion is anticipated by 2030, which will add more than 3 000 new jobs. Spanish wind tower manufacturer Gestamp Renewable Industries and tower internals supplier Resolux (from Denmark) are early investors in the zone. GreenCape is an agency that does research and runs projects in areas such as energy efficiency, waste, water and sustainable agriculture. It is a joint initiative of the City of Cape Town, Wesgro and the Provincial Government of the Western Cape. The Western Cape Industrial Symbiosis Programme (WISP), which encouraged manufacturers to use the waste product of other businesses, won international recognition in 2018 at the Circular Awards at Davos. Of the projects committed to under the national Renewable Energy Independent Power Producer Procurement Programme WESTERN CAPE BUSINESS 2020

Sector Insight Solar PV usage has increased to 112MW. (REIPPPP), 14 are located in the Western Cape (eight wind, five solar, one biomass). Cape Town is home to 70% of South Africaâ&#x20AC;&#x2122;s manufacturers of renewable components. Among the many changes that followed President Zuma standing down as president in 2018, the REIPPPP was rebooted. In April 2018, newly appointed Energy Minister Jeff Rabebe restarted the programme when he signed off on projects

OVERVIEW totalling R56-billion that will add 2 300MW to the national grid. Most of South Africa’s electricity comes from coal and national utility Eskom is building two huge coal-fired power stations. Radebe also announced that small-scale renewable energy projects (up to 10MW) could receive licences from the National Energy Regulator of South Africa (Nersa). This will mostly apply to manufacturers that produce biomass (such as forestry and sugar producers) and mining companies but also plays into the stated policy of the Western Cape provincial administration to promote independent producers (IPs). A court case is pending in which the provincial government is trying to win the right for its municipalities to buy directly from IPs instead of having to buy all power from Eskom. Unreliable and expensive power is a massive constraint on business and provincial and city governments in the Western Cape are champing at the bit to be allowed more freedom to participate in the sector. The idea of home-owners being able to sell surplus electricity from rooftop solar systems was previously restricted to the Cape metropolitan area. The application of the provincial government’s Energy Security Game Changer has expanded this provision (via bylaws) to the whole province. There are 19 municipalities where rooftop solar PVs are connected to the electricity grid, 13 of which have nationally approved tariffs in place. Users in the 13 areas can be paid for the power they suppy. The uptake of solar has risen from 20MW in 2015 to more than 112MW in 2019. The City of Cape Town has signed an agreement with the United States Agency for International Development and the Southern Africa Energy Programme to look for ways to make solar PV more accessible. High costs of installation often preclude residents from taking the solar PV option for their homes. In September 2018 the City of Cape Town launched a resilience assessment, the first step in a larger process. The Rockefeller Foundation chose the city in 2016 as one of 100 around the world in which programmes would be tested to improve the ability of the city to withstand shocks such as severe droughts. The city wants to expand the lessons it learnt in the period of water shortage into other areas such as energy generation and energy efficiency. Former MP Gareth Morgan is Cape Town’s Director of Resilience.

Online Resources Atlantis Special Economic Zone: www.investcapetown.com GreenCape: www.greencape.co.za South African Renewable Energy Business Incubator: www.sarebi.co.za South African Renewable Energy Council: www.sarec.org.za South African Renewable Energy Technology Centre: www.saretec.org.za South African Wind Energy Association: www.sawea.org.za

The Western Cape Provincial Government is also investing in resilience. A market intelligence report covering energy, renewable energy, water and waste was created by GreenCape to map the assets and challenges in these areas. The Cape Peninsula University of Technology’s Energy Institute is a leader in research in the field of electricity, and is also responsible for a regional publication relating to domestic use, DUE. The South African Renewable Technology Centre (SARETEC) on the Bellville campus of CPUT offers courses such as Wind Turbine Service Technician and Solar Photovoltaic Service Technician and various short courses such as Bolting Joint Technology. The Centre for Renewable and Sustainable Energy Studies is at the University of Stellenbosch and the University of Cape Town has the Energy Research Centre. The University of the Western Cape is doing research on the possibilities of hydrogen as an energy source. The South African Energy Business Incubator (Sarebi), based in Atlantis, has assisted 190 entrepreneurs in the energy and resource efficiency fields. A wave-energy project is underway at Hermanus. Funding for the project is coming from the aquaculture company that will receive power from the 1MW plant, Abagold, the Industrial Development Corporation and EEP Africa, a specialist in clean energy funding. ■ WESTERN CAPE BUSINESS 2020

PROFILE

Africa Biomass Company Your caring family trading as world leaders in the wood chipping industry.

Our mission To provide a worldwide service and infrastructure that is sustainable and above par, taking into account the unique requirements of each client, without deviating from our policy of innovative service and Company high ethical standards. Slogan

Our values Human dignity; Integrity; Quality; Pro-trademark resolution; Innovation; Transparency; Individualism

Africa Biomass Company services and products

ince 2004, Africa Biomass Company has been at the forefront of the development of biomass processing such as wood chips, biofuels and more in Southern Africa. Under the mentorship of Johan du Preez, the co-owner of Môreson Grondverskuivers, known for service excellence in the agricultural industry since 1924, we established ourselves as market leaders of recycling agricultural wood waste over the past 10 years. Africa Biomass Company offers a viable, costeffective solution for our customers to recycle this unwanted woody biomass into usable forms. Towards the end of 2008, the need and demand for the chipping of orchards increased to such an extent that the strategy of hand-fed chippers was switched to that of horizontal grinders, fed by a mechanical loader. In collaboration with Môreson Grondverskuivers, we now offer a full range of services.

Contracting • • • • • • • • • • • • • •

Orchard and windbreak recycling With the use of excavators with specialised attachments and three-wheel loggers, old orchards can be removed from root to top and fed into a horizontal grinder. Processing of waste wood into a viable product, that if applied correctly, could have a

Our vision Africa Biomass Company is your caring family, founded in faith, trading as world leaders in the recycling industry.

WESTERN CAPE BUSINESS 2020

Orchard Windbreak recycling River rehabilitation Recycling of waste wood Tree (orchard) replanting (Eastern Cape) Mulch spreading Land clearing and land preparation (Môreson) Woodchip mulch and biomass sales Bandit agency (Southern Africa) Dezzi equipment (Western Cape) Workshop and field services Part sales Manufacturing Accredited Operator Training Facility

Workshop and field services

30% increase in water conservation as well as many other advantages.

With an intimate understanding of the operational challenges of wood recycling in South Africa, we established state-of-the-art facilities to service, repair and rebuild wood chipping equipment of any make and size. An equally remarkable team of field service technicians delivers repairs, maintenance and spares to your site to optimise uptime and efficiency.

Land clearing services Africa Biomass Company is an expert at land clearing. We have an extensive range of highly specialised wood recycling machinery that will do the job quickly and efficiently. • Tree shears which cut and stack trees of up to 550mm in diameter • Loggers to handle the timber rapidly and effectively. • Well-trained teams of chainsaw operators.

Parts We have been widely commended as the company in South Africa stocking the largest range of industryrelated spare parts. Optimal production and uptime require quality components when needed. Understanding the industry through experience sets us apart from other suppliers. Delivering quality components on time is essential for running a successful operation. Our more than 2 500 line items is made up of quality components sourced worldwide to meet requirements of our customers and our own fleet.

Mulch and biofuel sales Woodchip according to specification, collected in mass trailers or in bags and transported to end user, where it can be used as woochip mulch or biofuel. Massive water savings In 2017 Africa Biomass Company was involved in many projects such as the removal of invasive eucalyptus trees in the Breede River and Berg River systems. The removal and recycling of these alien trees, old or unwanted orchards, vineyards or windbreaks can be used as mulch which are spread in new and old orchards and vineyards. This has led to a massive water saving equal to the water usage of 50 000 households for one year.

Manufacturing Our legacy of innovation has been built on more than 80 000 hours of operational experience. This enabled us to develop and adapt machines for waste wood recycling in South Africa which truly adds value to the customer’s operation. A wide range of wood chipping, grinding and spreading equipment is manufactured locally to specification, as required for South African conditions.

CONTACT INFO Physical address: 2 – 4 Joubert Street, Worcester 6850, Western Cape, South Africa Postal address: PO Box 1322, Worcester 6849 Tel: +27 23 342 1212 • Fax: 086 515 5777 Website: www.abc.co.za

Calie Rabie, Western Cape Production: 072 602 4543 Fanie Fourie, Eastern Cape Production: 073 402 0655 Riaan Carstens, Bandit Agency: 079 874 8624 Quintis Wiid, Parts and Workshop: 066 475 7039

Willem van der Merwe, CEO: willem@abc.co.za

WESTERN CAPE BUSINESS 2020

OVERVIEW

Manufacturing Boatbuilding exports have soared since 2014.

he International Superyacht Society has awarded a yacht built by Cape Town company Southern Wind, Seatius, the accolade of best sailing yacht in her category (Sail 24m-40m). The Boat International Design and Innovation Awards also awarded the yacht Best Interior Design in Sailing Yachts. The hull lines, appendages and sail plan of Seatius are by Farr Yacht Design with the deck design created by Nauta, illustrating how much collaboration goes into an intricate yacht project. The Seatius (pictured) has a lifting keel and twin rudders. Southern Wind’s huge manufacturing site is a landmark in Athlone Industria. Atlantis is home to Phoenix Marine, a specialist catamaran manufacturer. Celtic Yachts, which makes catamarans and cruising yachts, is in Killarney Gardens. Ullman Sails makes sails in Maitland while Two Oceans Marine Manufacturing constructs its catamarans on the Foreshore. In 2019 Two Oceans Marine launched South Africa’s biggest composite and leisure catamaran. Le Cerf is owned by Mason’s Travel, a Seychelles company. Robertson & Caine’s facility in Woodstock produces three boats a week for the international market. With a staff complement of 1 350, a record of having launched more than 1 300 vessels and a subsidiary company in Tampa, Florida, the company is a world leader in power catamarans and sailing catamarans. In 2017 the company’s Leopard 45 won the Cruising World Boat of the Year Award for best Charter Boat. A 20-year relationship with Tui Marine (which includes the two WESTERN CAPE BUSINESS 2020

Sector Insight The Atlantis Special Economic Zone is specialising in green tech. largest yacht charter companies in the world), Robertson & Caine has supplied more than 1 194 catamarans. Nautic Africa makes larger vessels, including patrol, defence, oil and gas platform and commercial vessels. Damen Shipyards Cape Town delivers vessels to public entities such as the Robben Island Museum and the South African Navy and private companies such as Smit Amandla Marine and De Beers Marine. Invest Cape Town reports that the city’s boatbuilding industry is the second-largest producer of recreational

OVERVIEW catamarans in the world, after France. The city’s companies export 80% of the products that they produce and attract a positive trade balance of approximately $73-million annually. Boatbuilding exports have grown by 20.5% annually year-on-year since 2014 in Cape Town (Quantec, 2019). The Whisper Boat Building Academy is located at the False Bay TVET College.

Green growth A diverse manufacturing sector contributes 15% to the Western Cape’s GDP. The agri-processing sector (including food and beverages and tobacco) is the largest employer (24%) followed by metals, metal products, machinery and equipment at 19%. A proposed Cape Health Technology Park will further boost the manufacture of medical devices. The Atlantis Special Economic Zone, which is specialising in green tech, has already attracted nearly R700-million in private sector investment. Goals for the green sector include the creation of 1 200 direct jobs in a 20-year period. A Moody’s report on the green economy in Africa states that South Africa has the fastestgrowing green sector in Africa, and one of the fastest-growing in the world. About 70% of South Africa’s manufacturing in renewables is happening in the Western Cape. The decision by Britain to leave the European Union has

led to increased interest in bilateral trading relations with individual European countries. France has established a tech hub in Cape Town and Business France has been facilitating a number of conferences and visits. More than 300 French firms currently operate in South Africa.

Food and beverages The combination of excellent and plentiful agricultural produce, good manufacturing capacity and a skilled workforce give the Western Cape a competitive advantage in the food and beverages sector. A sophisticated transport infrastructure system allows it to service international markets. Famous Brands has bought a famous Western Cape brand in its drive for greater backward integration. Lamberts Bay Foods supplied Famous Brands restaurants with chips for two decades. With its purchase from Oceana, Famous Brands now has greater control over a menu item at all of its 26 restaurant brands, including Wimpy, Fishaways and Mugg & Bean. Lamberts Bay Foods sources potatoes from all over South Africa, but its proximity to the potato-growing Sandveld region is helpful. The wheat-growing areas of the Swartland host several mills such as Sasko’s facility in Malmesbury. Bokomo has several manufacturing facilities in Atlantis, Epping, Ndabeni near Pinelands, Worcester and Bonnievale. Safari Vinegar is based in the Strand and there are two Heinz manufacturing plants at Wellington and Atlantis. Two of the biggest chicken processing facilities are located on the N7 highway (Tydstroom) and on the N1 (Rainbow Chickens). The Western Cape has about 16 000 commercial pork sows and produces a quarter of South Africa’s milk. Willards has a factory in Goodwood, in nearby Parow there is a Simba factory and local chip and snack manufacturer Messaris, which has been in operation since 1898, has a facility in Elsies River. Nestlé produces condensed milk and milk powder in Mossel Bay and canned pet food in Cape Town. Tiger Brands makes mayonnaise in Bellville and has also invested heavily in its prepared meals plant in Cape Town. SABMiller’s Newlands brewery is one of the busiest in the country as it is responsible for providing product for a very large geographical area. Coca-Cola bottler and distributor Peninsula Beverage has three plants – at Parow, Athlone and Vredendal on the West Coast, and employs 1 300 people. ■

Online Resources Cape Chamber of Commerce: www.capetownchamber.com Invest Cape Town: www.investcapetown.com Wesgro: www.wesgro.co.za Whisper Boat Building Academy: www.falsebaycollege.co.za

WESTERN CAPE BUSINESS 2020

OVERVIEW

Maritime The Oceans Economy is creating new opportunities. Sector Insight Three vessels are under construction for the SA Navy.

outh Africa has 3 000km of coastline and the extent of the country’s territorial waters is greater than its land size. The Oceans Economy is no longer just a concept talked about at conferences, it is a reality that is starting to have an impact on South Africa, and the Western Cape is well placed to benefit in terms of servicing the oil and gas industry, ship repair and manufacturing boats. Damen Shipyards Cape Town is building three inshore patrol vessels for the South African Navy, the first of which will be delivered in 2021. The vessels will be used to secure South Africa’s waters against threats such as illegal fishing, smuggling and piracy. EBH SA, which has extensive facilities in the Port of Cape Town, has been in the business of marine engineering and repairing ships since it began as Elgin Brown and Hamer in 1878. The company’s 183m-long repair quay has a draft of 12.5m and 5 000m² of quayside area. Large industrial operations already exist at Saldanha north of Cape Town and the Port of Saldanha Bay is the portal for the export of South Africa’s iron ore. The Saldanha Bay Industrial Development Zone (SBIDZ) is set to become a hub for a range of maritime repair activities and oil rig maintenance and repair. The National Department of Trade, Industry and Competition (dtic) and the Western Cape Department of Economic Development and Tourism (DEDAT) have collectively invested R500-million in core infrastructure at the SBIDZ and a lease agreement has been signed with Transnet National Ports Authority.

Online Resources Oceans Economy/Operation Phakisa: www.environment.gov.za Saldanha Bay Industrial Development Zone: www.sbidz.co.za South African International Maritime Institute: www.saimi.co.za Transnet National Ports Authority: www.transnet.net

WESTERN CAPE BUSINESS 2020

The SBIDZ fits neatly into two over-arching visions: Operation Phakisa and Project Khulisa, the targeted growth strategy of the Western Cape Provincial Government which includes servicing and repairing of oil rigs as a priority. Priority sectors at Saldanha are upstream oil and gas and marine engineering and services. The IDZ is run by the SBIDZLicencing Company which works together with the Transnet National Ports Authority (TNPA) on several joint projects. These are being undertaken to create good conditions for investors. Quayside infrastructure has been upgraded, including a wastewater treatment plant and a new road and bridge over the MR559. DEDAT reports that in 2016 the oil, gas and marine sector supported 8 320 jobs and contributed R1-billion to the province’s gross value add. The mar ine transpor t committee of the South African Oil and Gas Alliance (SAOGA) is preparing South Africa to reap the potential of the sector. It has developed 18 initiatives across three categories: infrastructure and operations, skills and market growth. ■

OVERVIEW

Construction and property Student accommodation is on trend.

ne of the fastest-growing segments of the property market is student accommodation. Ambitions to keep making tertiary education more accessible to a broader range of students, already hugely successful since South Africa became a democracy in 1994, will create a need for even more accommodation. As it is, the Department of Higher Education and Training estimates that there is a need across South Africa for 250 000 beds for university students. Several companies are responding to this need. A famous landmark in Rondebosch lives on in the name given to a new block of flats for students next to the old fountain in Main Road, Fountain Rez. The building (pictured) is developed by FPG Property Group, a company that grew out of supermarket and wholesale company that initially focussed on the retail property sector. Respublica has just one student building in Cape Town, on Main Road near Cavendish Square in Claremont, but it has nine properties in Gauteng: Roscommon House is a short walk from a UCT bus-stop. Another popular suburb for student accommodation is Observatory. UCT has developed several buildings in the area

Sector Insight Commercial space in the V&A Waterfront has risen to 25%. but recent blocks of flats built by private developers include Obs Court and several projects by Rawson Developers, Madison Place, The Winchester and The Paragon. The 64flat The Westwood will be complete in 2020. STAG African has student projects in the Western Cape (at Stellenbosch University) and in the Eastern Cape. STAG has also spotted opportunity WESTERN CAPE BUSINESS 2020

OVERVIEW elsewhere in Africa, with 34 000 beds being developed at universities in Kenya, Malawi, Zambia and Lesotho. The brief of A-MSquared is to “own, manage and operate premium student accommodation near UCT and Stellenbosch universities”. These are student houses (what used to be called “digs”) rather than residences but they are centrally administered. Outside of student-land, research shows that the demand for housing is as strong as ever. Cape Town has adopted a long-term Transport Oriented Development ( TOD) plan which looks at housing density in conjunction with transport patterns. It is estimated that greater Cape Town will need 500 000 new homes by 2023, in addition to 3.5-million square metres of office space, onemillion square metres of retail space and 4.5-million square metres of industrial development. Cape Town has established the Transpor t and Urban Development Authority (TDA). The TDA is charged with getting the right mix of urban development and travel patterns. With responsibility for transport, urban planning, public housing and environmental sustainability in one place, there is a better chance of “joined-up” thinking. Part of this strategy can be seen in plans for mixed housing on 13 sites in Salt River and Woodstock that the City of Cape Town has made available at 10% of market value. Social housing non-profit company Communicare has been working WESTERN CAPE BUSINESS 2020

with the city on the project which envisages 30% of the housing stock being available for low-income households, 14% for the gap market and the rest of the houses being available on the open market The province’s “Better Living Model” aims to deliver 3 602 residential units in an affordable, mixed-use and residential-led development on the site of the old Conradie Hospital on the edge of Pinelands. With the state (provincial or city government) putting in the bulk infrastructure, costs for developers would be significantly reduced – the quid pro quo is that the developer must then set aside a certain number of housing units (49%) to grant-funded housing.

Commercial The Victoria and Alfred Waterfront has been one of the most successful property developments and it continues to generate good returns for its tenants, according to a report issued by the management of the V&A Waterfront in 2019. New districts added to the footprint of the Waterfront such as the Canal and Silo areas have expanded the economic impact to the point where the Waterfront contributes R31.5-billion to provincial GDP (almost 2%). Commercial office space has grown as a percentage of gross lettable space and now stands at 25%. Several regional head offices have relocated recently, including British American Tobacco. A new suite of offices has been developed by the Amdec Group. The Yacht Club (pictured on the next page) is near the berth for luxury cruise ships and in front of the Cape Town International Convention Centre, has 170 flats, 6 000m2 of office space spanning on levels, and Africa’s first AC Hotel by Marriott. Amdec is also developing the huge Harbour Arch precinct on the western edge of the Foreshore. This will comprise six towers on a 5.8ha site that will house two hotels and residential and office space. The City of Cape Town has given its approval for the development to go ahead. Among the winners in the 2019 SAPOA Property Development Awards for Innovative Excellence was Sable Park, a part of Century City, which won in the Commercial Office Developments category. Developed by Rabie Property Group, the building has a five-star rating from Green Star SA and houses the offices of Discovery and MTN, among others. A Cape Town CBD landmark is being redeveloped into a mixed-use building to be known as Foreshore Place. What was built as the Trust Bank building and became the Absa building on the corner of Adderley Street, Riebeek Street and St George’s Mall, now has 15 floors of commercial space with the ground floor occupied by retail shops. The residential component takes up 11 floors comprising 63 studio apartments, 99 one-bedroom apartments and nine two-bedroom apartments. The developer of the project is HBW Group, it was designed by KMH Architects and marketed by Dogon Group Properties.

OVERVIEW

Growth areas Voortrekker Road is the subject of several interventions to encourage bulking up (businesses and residential). The Greater Tygerberg Partnership is working to provide a catalyst for new developments that will build on the area’s existing strengths: transport links, medical facilities, retail, motor dealerships and residential. Possible construction projects could respond to the need for student accommodation: 100 000 students are in the area. The Greater Tygerberg Partnership has done a study on students’ accommodation needs and is encouraging building owners to cater to this need. The Voortrekker Road Corridor already has services and an established built environment, but it also has some dilapidated structures and it also has lots of open spaces. In other words, it has lots of potential. An area that continues to grow in terms of residential property is the West Coast. With mountains to the east, it is logical that areas north of Cape Town will grow: the only constraint is access to water. Blouberg, Parklands and Sunningdale continue to grow and attract good houses for residential property. The MiCiti bus route now serving the West Coast makes commuting to town much easier. George on the Southern Cape coast has seen some substantial new developments, including a private hospital built for Mediclinic, some new malls and a number of estates. Fancourt in George was

Online Resources Cape Town Transport and Urban Development Authority: www.tda.gov.za Construction Industry Development Board: www.cidb.org.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Architects: www.saia.org.za SA Institute of Valuers: www.saiv.org.za

one of the first golf estates in South Africa. In 2017 a set of new plots were offered for sale on what was described as its “prized northern slopes”. A large gas discovery off the coast of Mossel Bay has caused some speculation that it might have a (long-term) effect on property prices in the area. The Knysna-Plett Herald quoted a Seeff Property spokesperson saying that Mossel Bay had seen sales grow year-on-year by 20%, with January 2019 the best sales month in four years. Seeff is developing two gated communities of more than 300 units in the R900 000 to R1.4-million price range. Although prices in George are higher, Seeff reports that older sectional-title property can be found from R650 00 and houses from R900 000. Family and golf estate homes mostly range from R2-million to R6-million but can go up to R8-million for a seaview. The George rental market is strong with luxury homes achieving up to R30 000 per month. ■ WESTERN CAPE BUSINESS 2020

PROFILE

Maritz Electrical Large area and sports lighting specialists.

rom commercial electrical applications to high-end floodlights and sports stadiums and spotlights using state-of-the-art products, Maritz Electrical delivers end-to-end electrical solutions tailored to clients’ needs. Delivering service excellence and exceptional quality are key differentiators for Maritz Electrical and what clients have come to expect. Maritz Electrical is an empowerment company established by Kurt Maritz in January 2000. Maritz Electrical is BBBEE compliant (Level 1 contributor). It is ISO 9001 certified and fully compliant with the Occupational Health and Safety Act with a full-time, trained safety representative. Maritz Electrical occupies a newly renovated 3 000-square-metre factory and office facility in Athlone. The company employs full-time, licensed installation and master electricians. Artisans working at Maritz have completed the ORHVS. Maritz Electrical places great emphasis on its relationship with clients, private or commercial, and prides itself on the ability to respond to any contracting requirements in an efficient and cost-effective way. Maritz Electrical works closely with its customers, ensuring that projects are completed on time and on budget, using the highest-quality products available. Maritz Electrical aims to contribute positively to the South African economy, provide excellent workmanship and be a leader in quality service provision.

Cricket Club in 2019. The lights comply with the latest FIH standard. Other projects include the electrification of large housing projects for municipalities, rural security lighting, lighting for passenger areas and runway lighting at airports, Cape Town’s Grand Parade and security lighting for waste-water treatment plants.

Key areas of expertise • Public lighting, high masts and sports lighting • Commercial installations and maintenance • Industrial installations and maintenance • Domestic installations and maintenance • Reticulation • Substations

Professional memberships BBBEE Level 1. ISO 9001 certified. Electrical Contractors Association. Master Builder Association Member. Member of South African Institute of Lighting (SAIL). ■

Flagship projects

CONTACT INFO

In 2017, St George’s Park became the world’s first International Cricket Council-compliant, LED-lit stadium and the first such stadium to be fitted with theatrics. Maritz Electrical was part of the R40-million revamp of Coetzenburg Athletics Stadium in Stellenbosch and installed new LED lighting at the hockey field of Western Province

WESTERN CAPE BUSINESS 2020

Physical address: 11 Noll Avenue, Athlone, Cape Town, 7764 Tel: +27 21 703 0867 Email: tenders@maritzelectrical.co.za Website: www.maritzelectrical.co.za

PROFILE FOCUS

Leading the field in energyefficient lighting

World first for Maritz Electrical.

ED lighting is a game-changer and Maritz Electrical is leading the way in its introduction at South African sporting venues. LED refers to “Light-Emitting Diode”, a device that is both brighter and more energy efficient when electrical current is passed through it than a conventional light bulb. In a short space of time, Maritz Electrical has achieved three significant landmarks in the LED sports field lighting landscape: • the world’s first International Cricket Council compliant LED-lit stadium with theatrics, St George’s Park, Port Elizabeth, 2017 • installation of new LED lights at internationally recognised athletics stadium, Coetzenburg, Stellenbosch, 2018 • first South African club hockey field to install LED lighting to the standard of the FIH (the inter national hockey body), Western Province Cricket Club, 2019. The installation at the WPCC hockey field is a Musco lighting system, similar to the system used at international stadiums such as Twickenham Rugby Stadium, Arsenal’s Emirates Stadium and at baseball and football fields in the US, where Musco is based. The R27-million St George’s Park project was completed on time and on budget, despite installing lights

on top of the Duckpond Pavilion at night in high winds. The Musco solution is good at controlling spill and glare and typically comes with a 10-year warranty. The response has been enthusiastic, helping Maritz Electrical on its goal to becoming the “goto” company for stadium lighting installations. For company MD Kurt Maritz, the television experts provided the really important feedback. “We cared about SuperSport the most and they have been raving. If there are light and dark spots on the field the cameraman must remember to change the aperture. They said that the lighting was excellent.”

Large-area lighting Stadium lighting falls within the broader category of large-area lighting. The global move to LED lighting has been a positive thing for Maritz Electrical. In South Africa, however, Kurt notes that there is difference between the indoor and outdoor scenarios. For indoors, “everybody is going that route” but that return on investment (ROI) is somewhat different in the outdoor setting. Maritz Electrical is active in large areas such as Cape Town’s Grand Parade, rural mast lighting in Buffalo City, airport runway lighting and security lighting for city municipal facilities. The company operates in the commercial, industrial and public sectors and offers a wide range of services. ■

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FOCUS

Growing a national footprint Maritz Electrical is expanding.

aving established a loyal customer base in the private and public sectors in the Western Cape, Maritz Electrical has expanded its horizons, showing that it is ready to tackle projects anywhere in South Africa. Recent projects that indicate the versatility that the company brings to lighting projects, in particular in LED lighting and in large-area lighting, include: a world-first LED stadium lighting project in Port Elizabeth, another stadium in the Free State, East London airport building lighting and mast lighting for informal settlements for the Buffalo City Municipality. With an expanding workload, Maritz Electrical made a move in 2018 to new premises in Athlone. Founder and Managing Director Kurt Maritz explains, “We have moved 150 staff from three branches into one customised 3 000-square-metre facility. It is designed in such a way that we have enough space for 50% expansion. Half of the massive space we dry-walled so that we have a suite of offices.” There are no specific targets, but Kurt is clearly looking forward with anticipation. “We don’t have any ceiling we want to hit. Our engine is our sales department. As much work as they bring in, that’s how we will grow.”

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Free State K aizer Seb othelo Stadium was built as a multi-use venue but mainly used to host football matches in the township of Botshabelo east of Bloemfontein. The 20 000-seater stadium is the home ground for Botshabelo Football Club and Tower United FC. Maritz Electrical replaced the existing, outdated lighting, as their output intensity was too low to cater for high-definition camera equipment. Mangaung Municipality’s tender stipulated that the lighting needed an up-

FOCUS

Eastern Cape

grade to HD quality using a local lighting brand. The Maritz solution not only saved close to R3-million, but provided a 10-year warranty, resulting in further savings for the client. Musco 1500w metal halide luminaries were installed for field lighting and LED luminaries for emergency lighting. The stadium’s generator was upgraded to 110KVa. Using any other system would have required the upgrade of the power supply, but this was not necessary as the Musco system uses approximately 25% less power than conventional systems

In 2017, St George’s Park became the world’s first International Cricket Council-compliant, LED-lit stadium and the first such stadium to be fitted with theatrics. Over four days in December 2017, the famous ground celebrated the landmark of being the first South African venue to host a day-night Test match, against Zimbabwe. The R27-million contract was completed on time and on budget by a team from Maritz Electrical led by Warren Williams. Two project managers from Musco Lighting supported the installation. The lights on top of the Duckpond Pavilion were hoisted at night, the process being illuminated by floodlight. Project Manager Diketso Kumalo reports that the six-month contract to install LED energy-saving lights at East London Airport was completed on time and on budget. Says Kumalo, “One of our goals for all projects that we do is to satisfy the client and leave them with a happy face.” LED lighting can significantly reduce power consumption. Maritz Lighting’s pre-installation and post-installation testing confirmed that East London Airport will be saving on electricity costs. The Maritz contract with the Buffalo City Metropolitan Municipality entails providing mast lighting to informal settlements across the municipality. “We are providing them with 20m-high masts with LED luminaires,” says Kumalo. “LED consumes much less power compared to high-pressure sodium or metal halide although the LED the lux level is better.” Costs will be reduced and the power of illumination will be better for residents. Kumalo says that there is a possibility that Maritz Electrical might open an Eastern Cape office. “Our presence is growing,” he notes. “Depending on the amount of work we receive from the province, we might be looking at opening another office in the Eastern Cape.” Kumalo points out that Maritz Electrical’s expertise extends beyond lighting. “We do a variety of electrical works. We also offer project management, consulting, compliance and hazardous area classification and MV and LV maintenance.”

Western Cape The municipal authorities of Overstrand and Stellenbosch have contracted Maritz Electrical to work on low-cost housing projects. This is a big market and Maritz Electrical is building its skills set in this area. Aspects of this market include reticulation, electrification, street lights, road-side furniture and mini-substations. ■

WESTERN CAPE BUSINESS 2020

OVERVIEW

Tourism and events Arts and culture are front and centre in the Western Cape.

Arabella Hotel & Spa on the banks of the Bot River Lagoon has joined the portfolio of Autograph Collection Hotels, a division of Marriott International.

new cultural-historical concept was launched in 2019, the Cradle of Human Culture. In partnership with the Cradle of Humankind World Heritage Site in Gauteng and two provincial departments, Wesgro’s Destination Marketing Unit will promote three archaeological sites in the Western Cape which preserve some of the world’s earliest evidence of evolution of modern human behaviour. They will be nominated for World Heritage Site status. Provincial government is keen to promote education in the arts. Based on figures published by the South African Cultural Observatory in 2017, which found that 6% of employment in South Africa is in the cultural sector, the Western Cape will expand the traditional STEM emphasis to include two additional As: Arts and Agriculture. There are 60 000 people employed in the culture sector in the Western Cape. The opening of the R500-million Zeitz Museum of Contemporary Art in the Victoria & Alfred Waterfront in Cape Town has made a big impact. With a footfall of 24-million visitors going through the Waterfront every year, the Zeitz is well located to attract good crowds. The conversion of the old grain silos which created 6 000m² of gallery space was paid for by the owners of the Waterfront, Growthpoint Properties and the Public Investment Corporation. Cape Town Air Access is a partnership between Wesgro, the City of Cape Town, the Western Cape Government, Airports Company South Africa, Cape Town Tourism and South African Tourism, and is the focal point for international air route development in the Western Cape. Two new trans-Atlantic flights were announced as part of the Air Access programme in 2019, although one flight doesn’t quite

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Sector Insight Tourism guide Lonely Planet selected the Cape Winelands as a “Top 10 Best Value Destinations for 2020”. go all the way over the Atlantic Ocean. St Helena is now accessible directly from Cape Town, but the big news is that United Airlines started flying directly from Newark Liberty (a New York airport) in December 2019. An additional 24 000 inbound passengers are expected annually, an annual growth projection of 20%, with about 900 jobs being created in the first year. The flight will contribute to a R425-million boost in tourism spend by 2021, according to a study conducted by Grant Thornton. International arrivals at C a p e To w n I n t e r n a t i o n a l

OVERVIEW Airport grew to 2.6-million international passengers in 2018. The growth came from longhaul carriers from outside the Southern African region. Overall, 84 000 more passengers passed through the airport, bringing the total number in 2018 to 10.6-million.

Airlink - Live the Dream Getting to prime tourist destinations directly from Cape Town is made easier by Airlink, which connects to Nelspruit Kruger Mpumalanga International Airport (KMIA) or Skukuza Airport for a bushveld experience in the Kruger National Park and Livingstone, Zambia, for a close encounter with Victoria Falls. From KMIA there are flights to Vilanculos in Mozambique, gateway to the Bazaruto and Benguerra islands. Another exciting option out of Cape Town is to fly to Maun in Botswana, which gives access to the Okavango Delta and the wonders of the Chobe National Park. (www.flyairlink.com) Hotel occupancy in Cape Town was 65% in 2018, a figure that was down on the previous year’s 69.5% but remarkably good considering that the period included the worst drought in living memory. This is according to a study done by STR Global. Not only did South Africa win the Rugby World Cup in Tokyo in 2019, Cape Town also won the right to host the 2022 Rugby World Cup Sevens. Cape Town is

Highlights • International arrivals at Cape Town International Airport grew 9.6% in 2018 to 2.6-million international passengers. • Cape Town will host the 2022 Rugby World Cup Sevens and the Netball World Cup in 2023. • Fancourt Hotel & Country Club won South Africa’s Best Golf Hotel in the 2019 World Golf Awards. • Plettenberg Bay has six Blue Flag beaches out of 30 with that status in the Western Cape. a popular destination on the circuit of the HSBC World Rugby Sevens Series. The Netball World Cup will be in Cape Town in 2023 and the city is making a habit of winning the African award for hosting the most international association meetings. The ranking is awarded by the International Congress and Convention Association (ICCA). The Cape Town and the Western Cape Convention Bureau, a Wesgro unit, promotes the Cape as a venue and assists with bids, planning support and on-site services. Events, conferences and exhibitions help to create a year-round industry which in turn boosts employment. The R900-million expansion of the Cape Town International Convention Centre (CTICC2) has given the city’s biggest venue additional volume and flexibility. Wesgro is targeting Asian countries such as Indonesia, Malaysia, Philippines, Singapore and Thailand as potential new markets for the Western Cape’s tourism offerings. Halal tourism, a global market that is expected to reach $300-billion by 2026, is another major focus. The Western Cape has upwards of 200 mosques and a cosmopolitan lifestyle that has seen various faiths coexist for many years. New cycling routes have been launched as part of the Cross Cape Cycle Route which links Plettenberg Bay with Stellenbosch via a number of charming small towns. Many towns and districts host annual festivals, such as the Prince Albert Olive Festival. Several hotel brands have extended their offering in Cape Town. These include the AC Hotel by Marriott at the Yacht Club, Radisson Red and Tsogo Sun. The Gorgeous George in downtown Cape Town has joined the Design Hotels stable. ■

Online Resources Cape Nature: www.capenature.co.za Cape Town Tourism: www.capetown.travel National Department of Tourism: www.tourism.gov.za South African Tourism: www.southafrica.net Wesgro: www.wesgro.co.za

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OVERVIEW

Banking Cape Town is a fintech hub.

nclusion, innovation and revolution, that’s the future of fintech in Africa if the title of a conference segment held in 2019 is to be believed. The fact that an IT conference and exhibition included a fintech component is significant. That it was held in Cape Town is also relevant. Fintech is increasingly important to financial institutions. Barclays’ app development organisation, Rise, has seven outlets around the world, including one in Woodstock in Cape Town. A French-funded fintech operation has been launched at Century City. The African Institute of Financial Markets and Risk Management (AIFMRM) aims is to meet the demands for skills by developing local talent. It is supported by the Western Cape Provincial Government, the University of Cape Town, Barclays Africa Group, FirstRand and Liberty. The finance and insurance sector contributes 10.9% to provincial GDP and is an area of the economy that shows consistent growth. The sector outperforms most other sectors according to the FNB Chart Book, and further growth is anticipated. New financial services companies are starting or relocating to the Cape. These range from asset managers to hedge funds, venture capitalists and insurers. The financial services sector employs more than 50 000 people and the Western Cape hosts 17 companies which are listed on the stock exchange. The decision by the Johannesburg Stock Exchange (JSE) to open a JSE Exchange Hub in Cape Town confirms the city’s importance in the financial world. There are eight Cape Town-based companies in the Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers, Woolworths, British American Tobacco, Remgro, Shoprite Holdings and Sanlam. The head offices of financial firms are dotted all over Cape Town. These include Old Mutual and Foord (Pinelands), Coronation (Newlands), Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns. Insurers such as Santam and Metropolitan Life are based in Bellville. According to Wesgro, 75% of the venture capital deals that happen in South Africa originate in the Western Cape. Most financial firms

Online Resources Banking Association South Africa: www.banking.org.za Financial Sector Conduct Authority: www.fsca.co.za Insurance Institute of South Africa: www.iisa.co.za South African Institute of Chartered Accountants: www.saica.co.za

WESTERN CAPE BUSINESS 2020

Sector Insight Japanese financial services company Nomura has started operations.

based in Cape Town have a long history, some going back as far as 1845 when Old Mutual started. The green bond issued by the City of Cape Town is a sign of the “climate change” times. South Africa’s third-ever green bond attracted bids over R4billion on an initial offering on projects worth R1-billion. The lead arranger for the bond was Rand Merchant Bank. A newcomer to the Cape financial services sector is Nomura, a Japanese financial holding company. The company intends expanding its services into Southern Africa. ■

OVERVIEW

Development finance and SMME support Sauce company finds the right funding recipe.

or small businesses to get bigger, they often need a little help. When Cape Town-based SMME Pesto Princess wanted to expand, it turned to the CDI Growth Fund. A grant made it possible to expand and create 10 new jobs making sauces, pastes and soups and the company (pictured) intends to carry on growing, aiming for a factory four times bigger than its current facility and upwards of 250 new jobs as they expand. The R12.8-million CDI Growth Fund is managed by CDI Capital, which was incorporated as a subsidiary of the Craft and Design Institute (CDI) in 2016 to arrange funding for SMMEs. The funding has been enabled through contributions by the National Treasury’s Jobs Fund, the Technology Innovation Agency (TIA), and the Western Cape Department of Economic Development and Tourism (DEDAT). Two of the Western Cape’s universities, Stellenbosch and Cape Town, are the first collaborators with the University Technology Fund which aims to commercialise innovations and inventions coming out of tertiary institutions. Some universities already have their own commercialisation units, but the UTF will have considerable financial clout, as it is a part of the South African SME Fund, an offshoot of the CEO Initiative which brought together 50 major corporations, the Public Investment Corporation, the Unemployment Insurance Fund and the Compensation Commission.

Sector Insight V&A Waterfront SMMEs achieved revenue of R329-million in 2018.

Among the businesses receiving support from the SA SME Fund are Masisizane, which helps black entrepreneurs buy petrol stations, and Hyrax, a company which emerged from research done at the University of the Western Cape into which HIV-positive people were resistant to certain drugs. Another Cape institution supporting SMMEs is the V&A Waterfront where a study has shown that revenue earned by small enterprises in 2018 was WESTERN CAPE BUSINESS 2020

R329-million, up from R78-million in 2007. Workshop 17 offers free WiFi and co-working space to tech startups and the venue has attracted 110 firms. Another venue, the Watershed, showcases design and craft. More than 90% of stock sold out of the Watershed is made locally and some design companies, such as leather product makers Wolf and Maiden, have moved out and up into the more exclusive retail space elsewhere in the Waterfront. The Long Street Kiosks is an attempt by the Provincial Government of the Western Cape to support SMMEs in the centre of the city. Subsidised space alongside the government’s building in one of Cape Town’s busiest tourist routes was allocated for traders. Mpho Mopai, of Tees and Gees, took advantage of the site and the support to such good effect in selling his T-shirts that he was one of the winners at the Western Cape Entrepreneurship Awards. Silulo Ulutho Technologies, which runs IT stores and training centres in townships and rural communities, started out as a small internet café in Khayelitsha in 2004. The provincial government’s Enterprise Development Fund helped it grow to the point where it has created more than 200 jobs and trained thousands of people. The founder, Luvuyo Rani, was part of Team South Africa at Davos at the World Economic Forum. Using the supply chain is a good way to create new businesses and retailers like Pick n Pay, Woolworths and Shoprite invest heavily in such programmes. The Philippi Village Container Walk houses key-cutters, building material suppliers, hairdressers and clothes shops. With the backing of the IDC, the two-storey creations house retail shops on the bottom floor and offices on the top floor. Philippi Village is a joint venture between Business Activator and the Bertha Foundation, a global philanthropic foundation. Cape Gateway, the website of the Western Cape government, lists 50 SMME support organisations in the province. These range from the provincial trade and investment promotion agency, Wesgro, to smaller community institutions and business initiatives. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a cost-sharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant.

Online Resources CDI Growth Fund: www.thecdi.org.za PERA: www.wcpremiersawards.co.za SA SME Fund: sasmefund.co.za Small Business Institute: www.smallbusinessinstitute.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za

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The Small Enterprise Development Agency (Seda) is an agency of the DSBD and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It helps small businesses draft applications for loan finance. Seda has established a Rapid Incubator in partnership with the Centre for Entrepreneurship (CFE) at False Bay TVET College, Westlake Campus. Intended to encourage TVET graduates to start their own businesses, the focus is on metal fabrication and furniture making. The Rapid Incubation Programme encourages innovative thinking and allows students, entrepreneurs and potential clients to interact. Learning how to commercialise products and services is a key element of the course. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support small businesses with growth potential across priority sectors aligned with the National Development Plan and Seda’s SMME strategy. Businesses can receive up to R1-million for training, productivity advice, business skills development and the purchase of equipment. The National Small Business Chamber (NSBC) has a base of over 125 000 SMEs and 50 big brands as partners. A memberbased organisation that offers benefits, the NSBC runs surveys and hosts expos, networking events and awards functions. ■

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23595/E BLACK RIVER F.C.

OVERVIEW

Education and training Creating a skilled workforce is a national priority.

UCT researchers’ work on epileptic seizures includes examining a mouse hippocampal brain slice prior to a patch-clamp electrophysiological recording. Image: Dr Joseph Raimondo/UCT.

kills training is a national priority and several institutions are supporting this goal in the Western Cape, including three academic universities, one comprehensive university, one university of technology and six Technical and Vocational Education and Training (TVET) colleges. Unisa, the country's biggest distance learning institution, has a campus in Cape Town and a service centre in George. The National Skills Authority (NSA) works with Sector Education and Training Authorities (SETAs) in carrying out the National Skills Development Strategy (NSDS). The Human Resource Development Council of South Africa (HRDCSA) is an over-arching body that gives guidance to the many institutions working on skills development and training. It is managed by the National Department of Higher Education and Training (DHET). The strategic goal of the DHET is to create “a capable and skilled workforce for inclusive growth”. TVET colleges have been asked to concentrate on 13 trade areas, including bricklayers, millwrights, boilermakers and riggers. R16.5-billion has been allocated by national government to skills development and infrastructure over the medium term. The Western Cape has further honed the priority sectors down to five and is keeping track of the young people who join its programmes. The Western Cape Provincial Government’s Apprenticeship Game Changer aimed to introduce 32 500 qualified apprentices into the labour market by 2019. R1-billion was allocated over a three-year time frame. A Centres of Specialisation Programme has been introduced by

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Sector Insight A R1-billion Biomedical Research Institute is under construction. the DHET to tackle priority skills. False Bay TVET College is a Centre of Specialisation with a focus on training riggers and mechanical fitters. With the oil and gas sector expected to grow rapidly in the near future, trained artisans can expect to find employment quickly. The College of Cape TVET is concentrating on plumbing and automotive motor mechanics. False Bay T VET College has campuses in Fish Hoek, Muizenberg, Mitchells Plain, Khayelitsha and Westlake. The College of Cape Town (CCT) has seven campuses from the city centre to Guguletu and Wynberg.

OVERVIEW A new welding academy in Thornton was opened with support from the merSETA (Manufacturing, Engineering and Related Services SETA). Northlink College is in the northern suburbs of Cape Town. Outside of the Cape metropole, Boland College looks after Stellenbosch, Worcester, Paarl and Caledon, while the Southern Cape College covers a wide area, from George to Beaufort West. The West Coast College also has a big catchment area. Boland College participates in an Expanded Public Works Programme (EPWP) run by the South African Chefs’ Association. Airports Company SA (ACSA), the City of Cape Town and False Bay TVET College in Westlake have combined to offer residents of Blikkiesdorp a chance to learn skills in brick-laying, housebuilding, scaffolding and health and education. ACSA is investing R5-million in the 12-month certification project and the Construction Education and Training Authority (CETA) will channel funds to False Bay TVET College for training. S A R E T E C o f fe r s i n d u s try-specific training in a new economic sector. The South African Renewable Energy Technology Centre is managed by the Cape Peninsula University of Technology (Bellville campus) but it collaborates with several other institutions and private companies. Online learning is one of the world’s fastest-growing sectors and the investment of $3-million by Construct in a new Cape Town office is evidence that

the trend has come to the Western Cape. The Construct Learning Lab supports universities in Boston, Doha and Oxford as well as companies and government bodies. The company expects to increase its staff complement by 150 over three years.

Universities Two Western Cape research institutions have made large investments in research infrastructure. A new Biomedical Research Institute is being built by Stellenbosch University at a cost of R1-billion and the University of Cape Town plans to move its Neuroscience Institute, which it runs in partnership with Groote Schuur Hospital, into a new building. An innovation laboratory, clinical and training spaces and an innovation space where researchers can interact are part of the plans for the new facility. The 2018 Quacquarelli Symonds (QS) World University Rankings, ranked the University of Cape Town in the top 200 universities in the world and the top-ranked institution in Africa. The rankings are based on six indicators: academic peer review, faculty/student ratio, citations per faculty, employer reputation and international student ratio . These three institutions, plus the Cape Peninsula University of Technology, produce approximately 12 000 science, technology, engineering and mathematics graduates every year and host 11 000 students from other African countries. The University of Cape Town has more than 21 500 students, 720 permanent staff and 39 A-rated researchers (40% of South Africa’s total). Stellenbosch University is linked to Stellenbosch’s growing reputation as a technology hub. The University of the Western Cape is home to several national research bodies. University education is available in George through the Nelson Mandela Metropolitan University (NMMU): Saasveld is home to the School of Natural Resource Management and the York Street Campus delivers courses in business and social science, accounting and business management. In his first State of the Province address, Premier Alan Winde gave notice that the Western Cape intends expanding the traditional focus on STEM subjects (Science, Technology, Engineering and Maths) to include other important fields where jobs can be created. Pilot projects are in place to expand STEM to STEAMAC, with the additional two As signifying the Arts and Agriculture and the C representing Coding and Cloud Computing. ■

Online Resources Apprenticeship Game Changer: www.westerncape.gov.za Centres of Specialisation: www.dhet.gov.za SA Renewable Energy Technology Centre: www.saretec.org.za TVET colleges: www.tvetcolleges.co.za

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False Bay TVET College A gateway to employment, entrepreneurship and higher education. About the college With 688 000 students enrolled in 2017, Technical and Vocational Education and Training (TVET) colleges are an important avenue to post-school education and vocational training and are crucial to job creation, economic growth and the future prosperity of the country. False Bay TVET College has five well-resourced campuses in the Cape Peninsula that collectively have an annual enrolment of around 11 000 students. While not the largest college, False Bay has consistently been recognised as one of the best TVET colleges in South Africa for over 15 years. Along with its services to our youth, communities and diverse industries, False Bay TVET College has strong ties and strategic partnerships with employers, government departments, the SETAs, representative industry bodies and both local and international educational institutions. These partnerships enable us to leverage resources and opportunities that give our students not only affordable access to quality training and jobs but to life skills, work experience and cultural enrichment.

Ten reasons for our success 1. Ideal location: Five campuses located in the communities of Muizenberg, Mitchells Plain, Khayelitsha, Westlake and Fish Hoek are easily accessible, allowing students to commute from anywhere in the Peninsula. In response to demand, the College is set to double its enrolment and add two more specialised campuses: a 6.5-hectare mega-campus in Mitchells Plain that will serve as many as 10 000 students and the Swartklip campus located at the former Denel munitions testing grounds, which will offer stateof-the-art artisan-related programmes to 3 000 students a year. 2. Benefits of investment: The TVET sector has recently attracted heavy government investment, which is rapidly improving the access to and quality of TVET qualifications. These investments include the NSFAS WESTERN CAPE BUSINESS 2020

funding fee-free education for the majority of TVET students; the SETAs spending over R500-million on bursaries and placements at TVET colleges, universities and universities of technology; the Department of Higher Education and Training (DHET) funding 12 new campuses and colleges; and the DHET supporting 14 universities to develop programmes for improving T VET lecturersâ&#x20AC;&#x2122; qualifications.

3. Efficient administration: The Collegeâ&#x20AC;&#x2122;s growth is underpinned by strong leadership and an award-winning administration system that has been recognised by the AuditorGeneral of South Africa and the DHET. The College has twice received clean audit awards and has received a clean audit for the past five years. 4. Relevant curriculum: The College offers vocational, occupational and skills training programmes with a special focus on artisan skills in the Electrical, Motor Mechanics, Welding and Fabrication, Fitting and Turning, Automotive Body Repair, Spray Painting, Masonry, Plumbing, Carpentr y and Joinery trades. Courses are also offered in Business, Information and Communication Te c h n o l o g y, H o s p i t a l i t y, Engineering, Tourism, Yacht and Boat Building, Safety in Society, 2D Animation and Education Studies. All College programmes are examined and certified nationally and designed in collaboration with commerce and industry. 5. Strong par tnerships: Private and public employer organisations recognise that the only way to assist young people to gain work experience and increase their employability is through engaging with them

and opening up workplace opportunities. False Bay TVET College understands and promotes the important role of employers in providing workplace experience, internship and employment opportunities to College students and graduates. All our partnerships are informed by this common understanding. 6. Placement track record: The College excels at supporting its graduates during their transition to the world of work. Its WorkIntegrated Learning (WIL) Department achieved a 92% placement rate in 2018, a feat few colleges could match in the current state

False Bay TVET College is the Western Cape Center of Specialsation for Mechanical Fitting and Rigging. of the economy. The College employs five dedicated WIL officers who provide graduates with work placement support. This service helps to connect students to job opportunities and prepares them for the world of work via the work-readiness programme. The WIL programme not only benefits students, but participating companies are able to improve their company B-BBEE scorecards, access SETA benefits, release full-time staff for training and upskilling, and improve staff retention. The WIL programme was recognised by the ETDP SETA at the 2018 National Skills Conference and Development Awards with the prestigious Gold Award in the Most Outstanding Skills Development Stakeholder category.

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7. Forward thinking: False Bay TVET College is increasingly investing in new technology to take advantage of the digital age. As access to information improves with every advance in internet technology, our students benefit from new teaching methodologies, opportunities for distance learning and participation in international joint programmes.

False Bay TVET College took the prestigious Gold award in the Most Outstanding Skills Development Stakeholder . The government has initiated the Centres of Specialisation Programme through the DHE T to address the demand for qualifications in the priority trades needed for the implementation of the governmentâ&#x20AC;&#x2122;s growth strategy. False Bay TVET College was selected as the Centre of Specialisation and premier training institution for riggers as well as mechanical fitters in the Western Cape.

Centre for Entrepreneurship / Rapid Incubator Programme Graduates.

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In keeping with the global trend, the College recognises that many graduates are more likely to start their own businesses in future than remain as employees in established businesses. To facilitate the entrepreneurial development of students and graduates, the College hosts the Centre for Entrepreneurship/ Rapid Incubator (CFE/RI), a partnership with the DHET and the Department of Small Business Development. The CFE/RI provides a supportive environment, top-class machinery and physical space to student entrepreneurs to enable product development. Learning is supported by structured individual mentoring and the facilitation of linkages to new resources. 8. Student suppor t: The College offers comprehensive student suppor t and development ser vices at all its campuses, which

include career guidance, financial aid, personal counselling, academic support and job placement. 9. Inclusive education: False Bay TVET College has an Inclusive Education Office which ensures that students with disabilities are able to access our learning facilities and support services at all our campuses. For students who experience difficulty accessing the College due to work commitments or distance, the College provides alternative modes of teaching and training, including part-time classes and distance learning options. 10. Student life: Our relationships with the students begin even before they enrol. The first contact for many happens on our popular Open Days, where prospective students and parents receive all the course information and career guidance they need to make an informed choice. False Bay TVET College students are offered a rich campus life focused on healthy activity that encourages the development of beneficial co-curricular learning,

including participation in inter-college sports and various clubs and societies. Students are served by an active Student Representative Council and there is regular engagement between management, the faculty and students across all courses and campuses. Our structured communication environment enables the College to identify and service studentsâ&#x20AC;&#x2122; needs effectively, which often leads to innovations, such as the recently introduced mobile health and wellness campus clinic, the first such facility in South Africa.

How to contact False Bay TVET College Please see our website at www.falsebaycollege.co.za for contact details of our campuses, course details and assistance with the application process. Linkages & Partnerships Tel: +27 21 787 0800 Email: Jacqueline.Layman@falsebay.org.za Centre of Entrepreneurship & Rapid Incubator Tel: +27 21 201 1215 Email: info@falsebayincubate.co.za Work-Integrated Learning Department Tel: +27 21 700 6400 Email: jobplacement@falsebay.org.za www.falsebaycollege.co.za

WESTERN CAPE BUSINESS 2020

FOCUS

College of Cape Town A Welding Academy has been launched in Thornton. The mandate The College of Cape Town is a public Technical and Vocational Education and Training (TVET) College which falls under the auspices of the Department of Higher Education and Training. The College mandate is to provide inclusive quality Vocational Education and Training responsive to the labour market. The College of Cape Town endeavours to achieve the following national strategic priorities: • Growth and expansion of relevant and priority programme opportunities for the youth • Growth and expansion of artisan development opportunities • Improvement of academic quality and success, ie improving certification, throughput and retention rates of its ministerial and occupational programmes • Establishing relevant and viable partnerships and linkages with industry, Sector Education and Training Authorities (SETAs) and/or other professional bodies and/or institutions of higher education • Improving support system efficiency • Sound institutional governance, management and leadership • Inculcating a culture of monitoring and evaluation of College performance • Improving information management and data reporting systems and processes.

he College of Cape Town for TVET has eight campuses that serve students mostly from the central metropolitan area of the City of Cape Town. All campuses, including the Central Office, are based in the Central Metropole region of Cape Town and are located within an approximately 20km radius. The College has 13 802 enrolled students with just over 8 000 doing NATED Report 191 with the other largest enrolments being National Certificate Vocational (2 834) and Occupational Qualifications (2 301). More than 1 000 students are doing short skills programmes. Programmes vary in duration from three months to three years. Courses are delivered as Learnerships, Internships, Short Skills Courses and Apprenticeships. WESTERN CAPE BUSINESS 2020

Diverse programmes Offerings include ministerial programmes, occupational programmes and short courses. City Campus: Art and Design, Business Studies, Hospitality, and Travel and Tourism Wynberg Campus: Beauty Therapy and Haircare Thornton Campus: Building and Civil Engineering, Mechanical Engineering and Occupational Gugulethu Campus: Business Studies and Electrical Engineering Crawford Campus: Education and Training, and Information and Communication Technology

FOCUS Pinelands Campus: Electrical Engineering Athlone Campus: Mechanical Engineering Centres of Specialisation: Motor Mechanics and Plumbing

professions in South Africa include Software Development, Network and Information Security, Web Development, Management Skills, Financial Skills, Engineering, Education and Training Professionals and Artisans. The College of Cape Town for TVET is responding to most of them by offering relevant programmes. The Crawford Campus has a well-established Early Childhood Development Faculty offering the best training and courses. Thornton Campus has a newly built state-of-the-art Welding Academy, equipped with the latest equipement and technology, and is positioned to offer international welding qualifications.

Niche areas: • Early Childhood Development • Information and Communication Technologies • Electrical Engineering.

Goals The College’s key strategic goals for 2020 are to maintain ministerial programme enrolment and to grow the occupational programme and short skills programmes. The College is committed to broadening entrepreneurship awareness and capabilities. Growth areas will be in Early Childhood Development, Electrical Engineering and Information and Communication Technology. More SETA Learnerships and Skills Programmes are planned, as well as QCTO programmes and Apprencticeship programmes. The College’s six strategic goals are: • Grow academic excellence • Expand student support • Develop leadership, governance and organisational performance • Develop an enabling environment • Drive transformation and build partnerships.

Partnerships The College has a special relationship with the the Manufacturing, Engineering and Related Service SETA (merSETA), which recently funded the Welding Training Centre. The College has many partnerships in place with the private sector, particularly for Workplace Based Learning or exposure. Most of these partnerships have been formualised through MoUs lodged with the Linkages and Programmes Unit (LPU) in support Occupational Programme development and delivery. A campaign has been launched to grow the partnership base in the following areas: student placements (internships and work-based exposure), apprenticeships, skills training, course design and workplace mentorship. The College has good relations with industry associations. Several projects have been run with youth development agencies such as the Youth Empowerment Service (YES). The College works closely with various government agencies both nationally and regionally. These include the City of Cape Town, the Premier’s Office and the Western Cape Department of Economic Development and Tourism, the Western Cape Education Department and the Department of Labour. ■

Entrepreneurship Entrepreneurial courses and incubator programmes are available. These are the steps students should take to become an entrepreneur: • Know the industry or niche • Research the market • Educate yourself to become an entrepreneur • Build the business slowly.

Scarce skills The Sector Education and Training Authorities for each sector generate the Critical and Scarce Skills list nationally. In the Western Cape, note is also taken of local labour force realities in terms of demand and supply of skills. A TVET College must keep abreast of the labour market needs via partnerships and involvement with agencies and the Chambers of Commerce. Some of the top scarce skills and

Contact Details Address: 334 Albert Road, Salt River, Cape Town 7945 Tel: +27 21 404 6700 • Fax: +27 21 404 6701 Website: www.cct.edu.za

WESTERN CAPE BUSINESS 2020

OVERVIEW

Business Process Outsourcing A war room is removing red tape in BPO. Sector Insight Education is a fast-growing sector within BPO.

war room to unblock red tape in important job-creating sectors such as business process outsourcing (BPO) has been set up by the Western Cape Provincial Government with financial support from Harvard University. The job statistics published by Business Process enabling South Africa (BPeSA) published for the second quarter 2019 show 5 391 new jobs created (mostly in the Western Cape and KwaZulu-Natal) with younger people getting most of the jobs and 97% of the jobs going to people of colour and 66% to women. The strongest sectors were telecommunications, education, retail and insurance. BPO employs more than 50 000 people in the province, against about 228 000 in South Africa as a whole. This is according to the Key Indicator Report of BPeSA, the national organisation with representation in the nation’s three biggest cities. Sixty-three percent of the offshore market is in the Western Cape where the provincial government has identified BPO as one of the six key sectors that can create jobs quickly. The City of Cape Town, the provincial Department of Economic Development, Agriculture and Tourism (DEDAT) and IT service management company EOH jointly sponsor the training and 12-month learnerships of 175 unemployed work-seekers in BPO. The municipality also trains 20 potential team leaders to build management skills within the sector. BPO involves any internal businesses that a company chooses to outsource to a specialist in that field, for example accounting or customer service centres. UK shop Asda and online retailer Amazon have large customer service centres in Cape Town. Other big brands

Online Resources Business Process enabling South Africa (BPeSA): www.bpesa.org.za Contact Centre Management Group: www.ccmg.org.za National Department of Trade, Industry and Competition: www.dti.gov.za

WESTERN CAPE BUSINESS 2020

include British Gas, IBM, KLM, Lufthansa, Mastercard and Microsoft. The fact that greater Cape Town is home to three universities, a university of technology and two technical colleges is a major advantage in attracting companies with sophisticated operations. Other factors in favour of Cape Town are the relatively neutral accents, good infrastructure (financial and telecommunications) and the time zone being the same or close to Europe’s. The Department of Trade, Industry and Competition (dtic) offers incentives to BPO investors. A base incentive is calculated on projected offshore jobs to be created and is awarded on actual offshore jobs created. The incentive has a twotier structure for non-complex and complex jobs and is paid over a five-year period. A new Global Business Services (GBS) Incentive was launched in London in 2018 to replace a scheme initiated in 2014. According to the dtic, the earlier scheme resulted in an additional 20 000 direct jobs in the sector with an average growth rate of 22% per annum in the period 2014-2018. ■

LISTINGS

Department of Social Development MEC: Ms Sharna Fernandez Union House, 14 Queen Victoria Street, Cape Town 8001 Tel: +27 21 483 5045 | Fax: +27 21 483 4783 Web: www.westerncape.gov.za/dept/ social-development

Tel: +27 21 483 4813 Fax: +27 21 483 5068 Web: www.westerncape.gov.za/dept/tpw

Western Cape Provincial Government

Provincial Treasury MEC: Mr David Maynier 3rd Floor, 7 Wale Street, Cape Town 8000 An overviewof ofTransport the Western provincial government departments. Department andCape’s Public Works Tel: +27 21 483 4237 | Fax: +27 21 483 3855 www.westerncape.gov.za MEC: Mr Bonginkosi Madikazela Web: www.westerncape.gov.za/dept/treasury 8th Floor, 9 Dorp Street, Cape Town 8000 Office of the Premier Department of Environmental Affairs and Development Planning Premier: Mr Alan Winde MEC: Mr Anton Bredell Provincial Legislature Building, 1st Floor, 7 Wale Street, Cape Town 8000 8th Floor, 1 Dorp Street, Cape Town 8000 Tel: 0860 142 142 Tel: +27 21 483 4091 Email: service@westerncape.gov.za Department of A guide to the metropolitan, district and local municipalities inHealth the Western Cape. MEC: Dr Nomafrench Mbombo Department of Agriculture 21st Floor, 4 Dorp Street, Cape Town 8000 MEC: Dr Ivan Meyer Tel: +27 21 483Local 3245/5417 CITY CAPE Muldersvlei TOWN Witzenberg Municipality AdminOF Building, Road, METROPOLITAN MUNICIPALITY Elsenburg 7607 Tel: +27 23 316 1854 | Fax: +27 23 316 1877 Department of Human Settlements Tel: +27 Civic 21 808 5111 Podium Block, 6th Floor, 12 Hertzog Website: www.witzenberg.gov.za Address: Centre, MEC: Mr Tertius Simmers Boulevard, Cape Town 8000 27 Wale Street, Cape DISTRICT Town 8001 MUNICIPALITY CENTRAL KAROO Department of Community Safety Tel: +27 21 400 1111 | +27 21 400 1313 Tel: +27 21 483 6488 MEC: Mr Albert Fritz Address: 63 Donkin Street, Beaufort West 6970 Fax: 0860 103 090 Tel: +27 23 449 1000 | Fax: +27 23 415 1253 Website: www.capetown.gov.za 35 Wale Street, Cape Town 8000 Department of Local Government Website: www.skdm.co.za Tel: +27 21 483 6949/8588 MEC: Mr Anton Bredell CAPE WINELANDS DISTRICT MUNICIPALITY 8th Floor, Waldorf Building, 80 St George’s Mall, Beaufort West Local Municipality Address: 46 Alexander Street,Affairs Stellenbosch 7599 Department of Cultural and Sport Cape Town 8001 Tel: +27 23 414 8149 | Fax: +27 23 414 8105 Tel: 086 126 5263 | Fax: +27 21 888 5100 MEC: Ms Anroux Marais Tel: +27 21 483 4049/4997 Website: www.beaufortwestmun.co.za Website: www.capewinelands.gov.za Protea House Building, 7th Floor, Greenmarket Square, Cape Town 8000 Department of Social Development Breede Valley Local Municipality Laingsburg Local Municipality Tel: +27 21 483 9503 MEC: Ms Sharna Fernandez Tel: +27 23 348 2600 | Fax: +27 21 883 8871 Tel: +27 23 551 1019 | Fax: +27 23 551 1019 Union House, 14 Queen Victoria Street, Cape Town 8001 Website: www.bvm.gov.za Website: www.laingsburg.gov.za Department of Economic Development Tel: +27 21 483 5045 and Tourism Drakenstein Local Municipality Prince AlbertofLocal Municipality Department Transport and Public Works MEC: MrDavid Maynier Tel: +27 21 807 4500 | Fax: +27 21 872 8054 Tel: +27 23 541 1320 | Fax: +27 23 541 1321 MEC: Mr Bonginkosi Madikazela 11th Floor, NBS Waldorf Building, Website: www.drakenstein.gov.za Website: www.pamun.com 80 St George’s Mall, Cape Town 8001 8th Floor, 9 Dorp Street, Cape Town 8000 Tel: +27 21 483 5065 Tel: +27 21 ROUTE 483 4813DISTRICT MUNICIPALITY Langeberg Local Municipality GARDEN

Western Cape Local Government

Tel: +27 23 Cape 615 8000 | Fax: +27Department 23 615 1563 Western Education Website: www.langeberg.gov.za MEC: Ms Debbie Schäfer Grand Central Towers, Parliament Street, Stellenbosch LocalLower Municipality Cape Town 8001 Tel: +27 21 808 8111 | Fax: +27 21 808 8003 Tel: +27 21 467 2000 Website: www.stellenbosch.gov.za

Address: 54 York Street, George 6530 Provincial Treasury Tel: 44 803 1300 MEC:+27 Mr David Maynier Fax: 6303Street, Cape Town 8000 3rd 086 Floor,555 7 Wale Website: www.gardenroute.co.za Tel: +27 21 483 4237

115 85

WESTERNCAPE CAPEBUSINESS BUSINESS2020 2019 WESTERN

INTERVIEW

Cape Winelands District Municipality Executive Mayor Dr Helena von Schlicht wants to see economic development linked to the creation of healthy and resilient communities.

Executive Mayor Alderman Dr Helena von Schlicht

Biography Dr Helena von Schlicht honed her skills during a 24-year career in higher education. After earning her doctorate, she worked as Head of Department, Social Work, at the Huguenot College in Wellington. In this capacity, she was involved in the writing and implementation of policies. She transferred to the political arena in 2009 and became a member of the Mayoral Committee in 2011. She has been Executive Mayor since the election of September 2016.

WESTERN CAPE BUSINESS 2020

How is a District Municipality different to other municipalities? The CWDM is one of five district municipalities in the Western Cape. The focus is to identify and grow opportunities for social and economic development. We are a highly functional municipality, a fact proven by five consecutive clean audits received, the successes achieved by the Fire Services, Municipal Health Services and the recently signed partnership with Santam to address risk reduction in communities. The CWDM, together with our partners in tourism, recently celebrated being named one of the Top 10 Value-for-Money destinations in the world by Lonely Planet. Add to this the vast open spaces, hospitable people, fauna and flora, agricultural sector, wine industry, fine cuisine and opportunities for grand adventure. This all echoes what Cape Winelands tourism stakeholders believe: “A thousand things to do and then some wine...” How do you promote local economic and social development? The planning and funding of projects is determined by our Integrated Development Plan. We will not develop economically if we do not have an efficient, healthy and resilient community. Programmes supported include Early Childhood Development, sports development and seed funding for young entrepreneurs. Courses are offered for disabled persons in customer care. The Department of Municipal Health Services checks that our restaurants and other food production spaces are compliant which enables visitors and tourists to consume hygienically prepared meals, which helps to grow our economy. How do you understand “social health”? Economic development depends on the social health of our citizens, and we must address both issues at the same time. We want to empower people and enable them to enter the economy, create jobs, support their families and contribute to the overall prosperity of society. When someone has a strong and healthy sense of social cohesion, it’s easier for them to participate in the economy. 86

INTERVIEW and property are protected from fires. Approximately 1 500 field fires are extinguished per fire season, and by means of the Disaster Management Division, the municipality ensures that care is taken of people who are displaced by disasters.

Tell us about the Annual Mayoral Tourism Awards. We recognise the value of a robust tourism industry and its role in economic and skills development. Finalists and winners in this year’s competition included Fynbos Farm outside Tulbagh, who entered in the Sustainable Development Category. They offer camping and self-catering chalets. The runner-up in this category was the off-the-grid African Game Lodge, 30km from Montagu. The winners in the Service Excellence Category were as follows: • The Light House Boutique Hotel (Luxury hotels) • Big Sky Cottages in Wolseley (Self-catering) • Avalon Springs in Montagu (Family Accommodation) • Montagu/Ashton Local Tourism Association (LTA). In the Entrepreneurship category, Flying Feet of Montagu (walking and bicycle tours) was runner-up and the winner was Tuk Tuk Franschhoek, who offer tours, pick-ups and drop-offs at wine cellars as well as special events. The two top Wine Destinations were Val du Charon (pictured) in Wellington for their wonderful ambience and wide choice of activities, followed by Bluvines in Montagu, who offer the visitor a New York experience with a local feel and staff who often, quite spontaneously, perform song and dance to the delight of all. Tell us about the new app. Visitors can download a complete guide to the Cape Winelands in the form of a free application for their Android or Apple mobile. The app was launched in September 2019 after an extensive research and development phase. How important are functions such as firefighting, environmental health and the roads agency? The Technical Services Division is responsible for the maintenance of approximately 3 700km of rural and gravel roads, while: Fire Services, in partnership with Cape Nature and the Fire Protection Association, ensures that fauna, flora, human and animal life 87

What makes the CWDM so special? The Cape Winelands are not only known for the best noble wines in the country but also have the following strengths and benefits that enable growth and expansion of the district’s economy: • The district benefits from a developed road and rail network that provides local businesses with easy access. • Easy access to Cape Town International Airport and the Port of Cape Town. • A diverse choice of urban and rural sites. • Educational institutions and centres for research excellence such as the University of Stellenbosch and the Agricultural Research Council. • Nationally and internationally renowned special educational institutions. • The quality of life. The Cape Winelands is one of the most-visited regions for the domestic and international tourist. There is something for everyone here in the beautiful Cape Winelands. There are a thousand things to do... and then some wine! ■ WESTERN CAPE BUSINESS 2020

Index Africa Biomass Company (ABC) BCX

9, 56

IFC, 73

Breede-Gouritz Catchment Management Agency (BGCMA) Cape Chamber of Commerce & Industry

6, 28

Cape Winelands District Municipality (CWDM)

College of Cape Town

Greater Tygerberg Partnership

Petroleum Agency South Africa

78 - 81

Metropolitan Nedbank

2, 86 11, 82

False Bay TVET College

Maritz Electrical

64 - 67

4, 74

38 - 43

OBC

SA Airlink

IBC

Vinpro

Wesgro

Western Cape Business Opportunities Forum (WECBOF)

Western Cape Department of Economic Development and Tourism

WESTERN CAPE BUSINESS 2020

30 20 - 25

Nosy Be Pemba

Ndola Lusaka Victoria Falls Kasane St Helena

Walvis Bay

Windhoek

Maun

Livingstone

Nampula

Harare

Tete

Bulawayo

Gaborone

Beira

Phalaborwa

Polokwane

Skukuza Nelspruit

JNB Sishen Kimberley Upington Bloemfontein

Antananarivo

Vilanculos Hoedspruit

Sikhupe Maseru

Richards Bay Pietermaritzburg Durban

Mthatha East London Cape Town George Port Elizabeth

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