MUNICIPAL FOCUS
NELSON MANDELA BAY
Building for business The birthplace of South Africa’s greatest icon, Madiba, as well as the country’s hub for automotive, Nelson Mandela Bay Municipality is synonymous with pride, entrepreneurship and innovation. We take a closer look at some of the achievements emerging from the Eastern Cape.
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ESCRIBED BY local authorities as “a land of opportunity, where a highly developed First-World economy meets the huge potential of an emerging economy”, the Eastern Cape, with its main metropolitan being Nelson Mandela Bay Municipality (NMBM), boasts a strategic location for trade with the rest of South Africa and neighbouring countries. Thanks to its vast rail, port and road networks, it is clear to see why this district is home to a host of manufacturing companies as well as two industrial development zones (IDZs), namely the Coega IDZ and the East London IDZ. IDZs are industrial estates that play an important role in the countr y’s macroeconomic strategy, providing transpor t,
logistics and business services tailor-made for export industries at highly competitive rates. Through these IDZs, the Department of Trade and Industry aims to generate sustainable local and international investment while stimulating the economy through the creation of much-needed jobs and skills transfer, as well as the development of SMMEs. Not only does this enhance South Africa’s growth, but investors also stand to benefit from direct cost savings such as VAT-free exports (on condition), while enjoying efficient operating standards.
In the zone The East London IDZ (ELIDZ) stands proud as South Africa’s first such operational
TABLE 1
About the Eastern Cape Languages (in order of dominance)
isiXhosa, Afrikaans, English
Major cities
East London, Port Elizabeth
Population
7 140 000
Area
169 580 km2
GDP contribution
Approximately 8.1% of South Africa's total
Major industries
Automotive, component manufacturing, agriculture, agro-processing, tourism
Source: Eastern Cape government
Nelson Mandela Bay Stadium, built for the 2010 FIFA World Cup
development, celebrating its 10th anniversary in December last year. As the first active IDZ, it set the platform from where government harnessed a policy for other zones. Boasting 11 investors and an area surface of 430 ha, the ELIDZ is also responsible for a large portion of the province’s income with its busiest period being felt during the 2006/7 financial year – equating to a R395 million investment. The current direct manufacturing job count for this IDZ stands at 1 118; however, this was not without challenges. In the earlier days of the ELIDZ, the biggest concern was diversification of the local economy, as this was dominated by the automotive sector. “Key to our [ELIDZ] mandate was the attraction of strategic investments that would not only leverage existing regional and industrial strengths, but would further upgrade the province’s industrial landscape,” said Simphiwe Kondlo, CEO of the ELIDZ, at the 10-year anniversary celebration. To date, 30 investors have been secured, R928 million in contracts have been awarded to BBBEE enterprises, and a further R281 million in contracts was awarded to SMMEs. In addition, due to its proximity to the equipment manufacturer DaimlerChrysler South Africa, the ELIDZ
IMIESA October 2013
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