Eastern Cape Business 2021-22

2021/22 EDITION

EASTERN CAPE BUSINESS

2020 EDITION

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

2019 EDITION

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THE GUIDE TO BUSINESS AND INVESTMENT IN THE EASTERN CAPE PROVINCE

THE GUIDE TO BUSINESS AND INVESTMENT IN THE EASTERN CAPE PROVINCE

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Bayworld and Happy Valley redevelopment hold key to economic rejuvenation of Bay Dorelle Sapere, Senior Project Manager of Mandela Bay Development Agency, explains how a new project will unlock heritage, conservation and tourism value.

The objectives of the Bayworld and Happy Valley programme are to: • •

•

T

he Bay wor ld and Happy Valley redevelopment is a megaproject for the Eastern Cape and seeks to transform 55ha of underutilised land spatially, socially and economically into an inclusive, post-apartheid new heart for Nelson Mandela Bay. The goal of the programme is to enable multigenerational, multi-cultural and mixed-income group usages. The mission is to create a spectacular, iconic place that is the headquarters of the Nelson Mandela Bay eco-tourism and edutainment experience, rooted in the heritage and cultures of the Eastern Cape to drive conservation and economic development.

The Bayworld and Happy Valley programme focuses on the national imperatives of job creation and economic development while ensuring psycho-social development, conservation and education for the Eastern Cape. This is to be achieved by activating the potential of its unique biodiversity and intangible heritage to leverage the tourism industry.

EASTERN CAPE BUSINESS 2021/22

•

•

Unlock the green, built and cultural heritage of the Eastern Cape.

Package the wealth of tourism offerings of the province and provide access to them through a digital experience of each and follow up with real in-person experiences.

Conserve the threatened biodiversity treasures of the region, both in the ocean and on land.

Drive an education, knowledge dissemination and research programme that will stimulate minds across the Eastern Cape, South Africa and abroad.

Enable social cohesion through access to the experience by multi-age, multi-cultural and multi-economic groups from the Bay and the Eastern Cape.

The Bayworld and Happy Valley programme consists of 13 catalytic capital projects that cut across the heritage, science, environmental, conservation, tourism, educational, industrial, recreational and housing sectors.

This project utilises the Quadruple Helix model and aims to deliver: • • • •

A conservative R2.2-billion of investment.

Potentially 4 239 temporary jobs during the construction phase.

Potentially 806 permanent job opportunities during the operational phase.

A potential contribution to GDP of R1.5-billion per annum.

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EASTERN CAPE BUSINESS 2021/22

CONTENTS

Eastern Cape Business 2021 Edition

Introduction Foreword 6 A unique guide to business and investment in the Eastern Cape.

Special features Regional overview of the Eastern Cape

8

The province’s Special Economic Zones are attracting investors in traditional sectors such as automotive and in new sectors such as aquaculture. The national ports authority has set up new headquarters at the Port of Ngqura.

The wind power province

14

The Eastern Cape is attracting the lion’s share of investment in wind energy.

Economic sectors Agriculture and agro-processing

Cannabis producers are thinking of automotive applications.

26

Water 28 The Umzimvubu project is a national priority.

Construction and property

29

Manufacturing

30

Tourism

31

Education and training

32

Banking and financial services

34

Development finance and SMME support

36

Gqeberha is expanding westwards.

Ford wants to see a rail corridor to Gauteng established.

East London’s beachfront is being upgraded.

Curro has expanded its Eastern Cape footprint.

New banks are offering more choices.

Supply chains are providing chances for small businesses.

ABOUT THE COVER: Credit: Courtesy of Transnet National Ports Authority (TNPA). The eMendi building at the Port of Ngqura is within the Coega Special Economic Zone (Coega SEZ) and is shown with the busy port and Algoa Bay behind it. The building, designed by Dominic Bonnesse Architects and completed in 2017, became the national headquarters of the TNPA in 2021.

Unlocking growth in the Eastern Cape

Standard Bank is helping businesses thrive.

W

hile the Eastern Cape faces many challenges it also presents an array of opportunities for those willing to invest the time and money needed to unlock its growth potential.

As the second-largest province in South Africa the Eastern Cape is a fusion of manufacturing, agriculture, logistics, mining, construction and tourism opportunities.

Each of these sectors presents avenues for employment, growth and trade, both locally and internationally.

Small and medium enterprises (SMEs) are the lifeblood of the Eastern Cape. They play a crucial role in its growth, providing employment, boosting new economies, and connecting the continent to the rest of the world.

Innovative products Standard Bank’s business banking products and services are innovative and relevant and can help businesses thrive. Some examples: Our business account is designed to help you set your business up for success. MyMoBiz provides simple, affordable banking services for small business. With MyMoBiz you get everything you need to run your business and manage your finances on the go, including dedicated support from a team of business bankers.

To help clients make the move to digital, seamless banking, Standard Bank launched SimplyBlu, an innovative, all-inone payment solution that enables business owners to take their business online all from a single, secure platform.

At Standard Bank we are proud of our long history in the province, which stretches back to 1862.

Then there is PocketBiz, designed for entrepreneurs on the go. It offers you a secure card payment solution that eliminates the need to accept or carry cash or follow up on invoice payments.

We continue to look for relevant ways to partner with businesses across the province as they seek to uplift the communities in which they operate, and these partnerships include providing key services and products to make doing business the right way easier.

At Standard Bank, our purpose is to drive Africa’s growth.

We enable businesses that align with our purpose, and this contributes to the growth of our economy and the growth of our continent, South Africa and our own province, the Eastern Cape. ■

CONTACT DETAILS Jonty Bouw, Head of Enterprise Direct Tel: 084 850 0594 Email: Jonathan.Bouw@standardbank.co.za

Leigh-Anne de Witt, Head of Business Clients Eastern Cape Tel: 083 447 3875 Email: Leigh-anne.Dewitt@standardbank.co.za

FOREWORD

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

Credits Publishing director: Chris Whales Editor: John Young Managing director: Clive During Online editor: Christoff Scholtz Designer: Tyra Martin Production: Aneeqah Solomon Ad sales: Gavin van der Merwe Sam Oliver Jeremy Petersen Gabriel Venter Vanessa Wallace Shiko Diala Administration & accounts: Charlene Steynberg Kathy Wootton Printing: FA Print

T

he 2021/22 edition of Eastern Cape Business is the 14th edition of this successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape.

The Eastern Cape’s investment and business opportunities are highlighted in this publication. The fact that the province is home to the majority of wind power projects as part of the country’s drive to promote renewable energy is the subject of a special feature.

Overviews are provided on the key economic sectors of the province, including the vital contribution that the agricultural and automotive sectors continue to make on the province’s economic trajectory. References are made to the potential of the Oceans Economy and to the prospects of oil and gas for this coastal province. The major business chambers in the province have made contributions to the journal.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.easterncapebusiness.co.za. Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. In 2020 the inaugural edition of African Business was published. ■ Chris Whales Publisher, Global Africa Network | Email: chris@gan.co.za

PUBLISHED BY

DISTRIBUTION

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

Member of the Audit Bureau of Circulations

ISSN 1995-1310

COPYRIGHT | Eastern Cape Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Buffalo City Tourism, BTE Renewables, Daimler.com, DHK Architects, Dominic Bonnesse Architects, East London IDZ, GraaffReinet Tourism, Gamtoos Irrigation Board, Mandela Bay Development Agency, Kierran Allen Photography/Nelson Mandela Bay Stadium, Nelson

EASTERN CAPE BUSINESS 2021/22

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

6

Mandela Bay Tourism, St George’s Preparatory, Transnet National Ports Authority, Volkswagen SA. DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Eastern Cape Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

Coca-Cola Beverages South Africa — taking water management to another level

INTERVIEW

Nhlanhla Yende, Regional Manufacturing Manager for CCBSA Coastal Region, outlines his company’s comprehensive approach to water.

What is the extent of the CCBSA footprint in the Coastal Region?

We have a total of 656 employees in the four manufacturing sites. From these sites, we service KwaZulu-Natal and the Eastern Cape, and in the Western Cape we supply all Appletiser products and Coca-Cola products in cans packages.

What are the principles of CCBSA’s water policy?

The CCBSA water strategy is made of these pillars: To optimise the use of water within our operations by implementing industry best practices.

To achieve a water balance – make the same amount of water used to make our beverages available to the communities in which we operate and to leverage our system expertise and partnerships to enhance and support local governments’ capabilities in our markets.

Nhlanhla Yende

BIOGRAPHY Nhlanhla Yende started his career in 1999 as a metrologist, specialising in fluid flow for air, water and hydrocarbons at the National Metrology Institute of South Africa. He has over 16 years’ experience in Fast Moving Consumer Goods, one of which was spent at Mercedes-Benz working as a Quality Engineer and the balance at CCBSA where he held numerous operational roles in Manufacturing. He is currently responsible for four plants, in Durban, Port Elizabeth and Elgin.

Please explain your water protection plans.

We have water recovery processes in our production facilities, which allows us to reuse water for non-production related activities, like cleaning. We also have been investing in rainwater harvesting and groundwater initiatives to diversify our sources. To this end, we have two sites which are using at least 10% to 15% of their total water from these alternative sources.

What steps are being taken in the Eastern Cape to reduce water usage?

• We have two boreholes in our Port Elizabeth plant, which is helping us to reduce our dependency on surface water.

• The plant is constantly monitoring the ratio of water used in the production processes for each litre of product to ensure we can eliminate waste.

• We reuse the water from the production process for sanitation.

Do you treat wastewater?

We constantly monitor the effluent water to ensure we do not cause harm to the environment. In instances where we find that the pH value of the effluent is high, we treat it. We also monitor the levels of dissolved oxygen.

Are there CCBSA water access projects in communities in need?

Yes, through an initiative driven by our Public Affairs, Communications and Sustainability team, there are a total of seven groundwater harvesting projects on the go. Five of those projects have been completed and handed over to the communities. Two of the five completed projects are in the Eastern Cape, in Ngcobo and Queenstown. ■

7

EASTERN CAPE BUSINESS 2021/22

A REGIONAL OVERVIEW OF

EASTERN CAPE PROVINCE The province’s Special Economic Zones are attracting investors in traditional sectors such as automotive and in new sectors such as aquaculture. The national ports authority has set up new headquarters at the Port of Ngqura.

By John Young

T

he decision by the Transnet National Ports Authority (TNPA) to relocate staff from Johannesburg and Durban to new national headquarters at the Port of Ngqura within the Coega Special Economic Zone is a significant marker of confidence in the Eastern Cape.

The eMendi building (pictured above), which houses the administration of the TNPA, is in the shape of a ship and employs many green concepts such as rainwater harvesting, solar panels, light motion sensors and large windows to take advantage of natural light. The 10 000m², R255-million building was completed in 2017 to the design of Dominic Bonness. The Eastern Cape Infrastructure (ECI) joint venture was responsible for the contract. ECI, which comprises Mott MacDonald, LDM and SFC, was also the team behind a multiyear, R3.5-billion upgrade and expansion project at the ports of East London, Ngqura and Port Elizabeth which was completed in 2018.

EASTERN CAPE BUSINESS 2021/22

The name eMendi honours the black servicemen who drowned on the SS Mendi in World War I. The value proposition of the Port of Ngqura is that as a deepwater port strategically positioned within a Special Economic Zone (SEZ), it can provide integrated, competitive and efficient port services as a global transhipment hub ideally positioned on the east coast of Africa.

There are hopes that TNPA’s decision will unlock another move that has been under discussion for decades – the relocation of the tank farm and the manganese storage facility from the Port of Port Elizabeth to the Port of Ngqura. This would have the effect of opening up prime waterfront space to tourism and hospitality businesses, allowing them to offer an entirely new kind of tourist experience within the harbour.

The Eastern Cape’s two SEZs are key drivers in the province’s strategy to attract investors. At the

8

SPECIAL FEATURE The automotive sector remains the strongest manufacturing sector in the Eastern Cape. The scale of recent automotive investments is impressive.

With two new Chinese car-makers (FAW and Beijing Automotive Group South Africa, BAIC) in the Coega SEZ, increased production volumes will ensure that jobs are created. The sector already accounts for more than 400 000 jobs in the province.

The long-term presence of Mercedes-Benz South Africa, Volkswagen South Africa, Isuzu and Ford has now been bolstered by the R11-billion committed

by BAIC. The automotive components and service industry is similarly diverse, with everything from tyres, windshields and batteries to catalytic converters being manufactured and exported.

Mercedes-Benz consistently breaks records for the number of cars it exports through the Port of East London via Transnet Port Terminals. The company spent about R10-billion in preparing its plant to manufacture the new C-Class, for which it makes 12 variants. The plant is now also an IT Hub with a focus on data analytics, software development and business analysis.

In 2019 the Kariega (Uitenhage) plant of Volkswagen Group South Africa created a new production record of 161 954 vehicles, with 108 422 destined for the export market.

Ford announced in February 2021 that it would be spending R15.8-billion on its South African operations, which include an engine plant in Gqeberha (Port Elizabeth). Ford wants to see a highcapacity rail corridor built to link Gauteng (where it makes Rangers) with the Eastern Cape.

One of the single biggest manufacturers in the province is Aspen. The pharmaceuticals company’s Gqeberha plant has recently had its capacity significantly expanded thanks to an investment of R3-billion. In late 2020 the company signed a preliminary agreement with Johnson & Johnson to fill vaccine vials but the process was held up by other factors. Aspen was hoping to produce more than 300-million doses of the vaccine.

Credit: Dominic Bonnesse Architects Coega SEZ, major current investors include BAIC SA (R11-billion), the Dedisa Power Peaking Plant (R3.5billion), FAW SA (R600-million) and CEMZA (R600million). Even though Covid-19 had an effect on activity in the SEZ, four major projects were under construction during 2020. The following facilities were being built: two for logistics companies (DHL Logistics and APLI), a multi-user facility and the new Aquaculture Development Zone, which is being developed at a cost of R259-million.

The Coega Development Corporation, which is assisting in the rollout of infrastructure projects in different parts of South Africa, has now been asked to assist provincial departments, public entities and municipalities within the Eastern Cape to package projects to attract funding for socioeconomic development.

The East London Industrial Development Zone (ELIDZ) has a strong suit in automotive suppliers, anchored around the proximity to the Mercedes-Benz South Africa facility. The ELIDZ has also received recent investments in a diamond cutting and polishing and condom manufacturing. While the variety of investors at both SEZs continue to grow (Coega has 14 distinct business zones), developments in the Oceans Economy, renewable energy (wind in particular) and the oil and gas sector are showing the greatest promise of new growth.

Energy projects An established market for Liquefied Natural Gas (LNG) exists within the Coega SEZ. The existing 342MW Dedisa Power Peaking Plant at Coega already has environmental authorisation for

9

EASTERN CAPE BUSINESS 2021/22

Credit: Daimler.com a 400kV transmission line between the plant site and the Dedisa substation which reduces costs for future investors. A draft scoping report has been prepared for an integrated LNG terminal and gas-to-power plant.

National government has named the Coega SEZ as the potential site for a 1 000MW Liquefied Natural Gas (LNG) plant. The value to the regional economy of the project is estimated at R25-billion.

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

Activity in the oil and gas sector would in turn stimulate the maritime sector. The potential of the Oceans Economy is already receiving a lot of attention and Nelson Mandela University’s Ocean Campus is one of the leaders. The South African International Maritime Institute (SAIMI) has new headquarters in Port Elizabeth.

The provincial government has invested R206million in the development of 100ha Aquaculture Development Zone in the Coega SEZ. This aligns with the Oceans Economy master plan, which aims to leverage the province’s coastal assets in terms of fishing, bunkering, oil and gas industry development, tourism and marine transport and manufacturing.

Where energy and the Eastern Cape are already functioning strongly is in wind power. The exciting developments in this field are covered in a separate article in this publication.

EASTERN CAPE BUSINESS 2021/22

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

The mountainous regions of the north and east of the province support timber plantations while the coastal belt in the south-west is wellwatered and is good for dairy farming. The province has spectacular beaches stretching from the surfer’s paradise at Jeffreys Bay all the way to the famed Wild Coast.

Two major airports at Port Elizabeth and East London provide good air links and smaller towns such as Mthatha and Bhisho have airports.

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

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

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

Nelson Mandela Bay has population of 1.1-million and many educational institutions. The Nelson Mandela Bay Stadium and St George’s Park cricket ground host provincial and international sports matches. Superb beaches and plentiful outdoor options make the area a popular tourist stop. The Addo Elephant National Park is less than an hour’s drive from the Port Elizabeth city centre.

include fly-fishing. The Foodcorp factory in Molteno manufactures Ouma rusks. Queenstown is a centre for cattle farming and has some manufacturing activities. The Mountain Zebra National Park is near Cradock. The Grootfontein Agricultural College and Research Station is in Middelburg, and the Marlow Agricultural College is near Cradock.

Joe Gqabi District Municipality Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie Cattle and sheep farming make up 80% of land use, while commercial forestry is a big contributor to employment. There are large forestry plantations at Ugie and Mount Fletcher. Maize is grown along the Orange River and wheat in the foothills of the Drakensberg mountains. Tiffindell has been revived as a ski resort. The village of Rhodes hosts a “Stoepsit” festival in February.

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

Forestry is a big employer.

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

Amathole District Municipality Towns: Cathcart, Stutterheim, Morgan’s Bay, Willowvale, Butterworth, Alice, Bedford The rural Amathole District surrounds the metropolitan area of Buffalo City. Pineapple and forestry are two of the most important agricultural activities. Popular resorts on the Wild Coast attract many tourists to the area.

Hogsback and other towns near the Amatole Mountains offer beautiful scenery and popular beaches. Alice hosts the main campus of the University of Fort Hare.

Sarah Baartman District Municipality Towns: Graaff-Reinet, Humansdorp, Jeffreys Bay, Makhanda (Grahamstown) The western part of the province contains the biggest municipality geographically.

Large commercial farms in the Karoo produce high-quality meat, wool and mohair, while the coastal belt has dairy farming and some forestry. The Kouga Valley is a big deciduous fruit producer, while the Kirkwood/Addo area is known for its citrus. Sarah Baartman has three of the region’s national parks and several private game farms. Makhanda hosts the National Arts Festival, Rhodes University and several fine schools. ■

Chris Hani District Municipality Towns: Middelburg, Molteno, Dordrecht, Cradock, Komani (Queenstown), Lady Frere, Elliot Sheep farming is an important part of the economy.

Some coal is found in the north and tourist activities

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EASTERN CAPE BUSINESS 2021/22

SPECIAL FEATURE

South African economy at a glance Insight into the South African ecomomy.

SPECIAL FEATURE ZIMBABWE

MOZAMBIQUE

BOTSWANA

Limpopo 7%

NAMIBIA

Gauteng Mpumalanga 7% 35%

North West 6%

SWAZILAND

KwaZuluNatal 16%

Free State 5% Northern Cape 2%

LESOTHO

Eastern Cape 8% Western Cape 14%

Percentage contribution of each province to national GDP. SOURCE: STATS SA WWW.STATSSA.GOV.ZA

secured tens of thousands of new seats on direct

Trends flights to and from the city).

Table: South African mining production

Companies are successfully trading into Africa.

• Niche agricultural markets are booming with Good signs for the economy include: • Several provincial governments and investment macadamia nuts being the most successful. agencies are establishing trade relations and Pecan nuts have done well and wine and grape study programmes with BRICS countries. State exports to China are growing.

Largest contributors % increase % contribution visits to and from China immediately before and • Private education at school and tertiary level is growing as a sector. after a major BRICS summit in 2018 gave an indication that Ramaphosa holds high hopes for • New banking licences have been issued and Platinum Group Metals 276.1%several more 39.2% are in the pipeline. increased trade with the biggest of the BRICS nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and more are expected.

2017 was worth $39.1-billion. South Africa wants Gold 177.9% • Investment16.6% in infrastructure (especially ICT and to grow tourist numbers from China. South Africa railways) is strong. Nedbank’s report on capital became the first country in the world to export expenditure in South Africa stated that the beef to China in 2017, to go with existing exports of iron ore, platinumore and fruit and wine. 208.2%29 large projects Manganese 14.2%announced in the first half • Tourists are visiting South Africa in record numof 2018 were valued at R63.9-billion (Financial bers (Cape Town’s Air Access programme has Mail). The renewable energy programme

Increased by 116.5% year-on-year in April 2021.

•

Iron ore

149.1% 17

13.3% SOUTH AFRICAN BUSINESS 2019

Source: StatsSA.com

Source: world exports.com

Table: South African mineral sales Mineral sales increased by 152.7% year-on-year in April 2021.

Largest contributors

% increase

% contribution

PGMs

465.9%

103

Iron ore

115.6%

19.5

Gold

40.9%

6.5

10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA

01.

HOT EMERGING MARKET Growing middle class, affluent consumer base, excellent returns on investment.

02.

MOST DIVERSIFIED ECONOMY IN AFRICA

South Africa (SA) has the most industrialised economy in Africa.

It is the region’s principal manufacturing hub and a leading services destination.

LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT SA is the location of choice of multinationals in Africa.

Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech.

04.

03.

FAVOURABLE ACCESS TO GLOBAL MARKETS

05.

The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets.

SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors.

06.

ABUNDANT NATURAL RESOURCES

SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise.

08.

ADVANCED FINANCIAL SERVICES & BANKING SECTOR SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation.

PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY

07.

WORLD-CLASS INFRASTRUCTURE AND LOGISTICS

A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index.

YOUNG, EAGER LABOUR FORCE SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development.

Page | 2

09. 10.

EXCELLENT QUALITY OF LIFE

SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector.

19

SOUTH AFRICAN BUSINESS 2020

The wind power province The Eastern Cape is attracting the lion’s share of investment in wind energy.

T

he announcement in May 2021 that the 123MW Golden Valley Wind Energy Facility near Cook house south of Cradock in the Sarah Baartman District Municipality had reached commercial operations means that the energy requirements of about 120 000 households will be met.

The announcement by BTE Renewables was also typical of statements being issued by companies operating in the province with increasing regularity. The Eastern Cape really is South Africa’s wind power province.

South Africa’s National Development Plan (NDP) requires 20 000MW of renewable energy by 2030 and wind power technology, together with solar photovoltaic, are the two primary methods that are being deployed in pursuit of that target.

Just a few kilometres east of Cookhouse there are a further two wind farms, both awarded to Enel Green Power (EGP) in the fourth round of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The Nxuba and Nojoli wind farms will respectively produce 140MW and 88MW and represent what EASTERN CAPE BUSINESS 2021/22

might be called Enel’s Eastern Cape mountain area investment. On the coast they have built wind farms at Oyster Bay and Gibson Bay, west of the 138MW Jeffreys Bay Wind Farm, which is run by Globeleq and was one of the country’s first big wind energy facilities.

The suitability for wind power generation of the Eastern Cape’s coastline and its mountainous regions is illustrated again in the profile of Cennergi, the energy company that was born of diversified resources company Exxaro. Cennergi has the 134MW Amakhala Emoyeni Wind Farm project near Bedford in the Winterberg mountains and the 95MW Tsitsikamma Community Wind Energy Facility (TCWF) close to the sea, about 30km west of Humansdorp.

Ownership The Golden Valley Wind Energy Facility is owned

by BTE Renewables (60%), Thebe Investment Corporation (37.5%) and a local community trust (2.5%). This is a typical ownership structure for renewable energy power projects under the REIPPPP.

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SPECIAL FEATURE

incentivising the industry to identify and support emerging entrepreneurs.

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

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

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

The average lead time in the projects that have so far been approved in the province is two years, with local content averaging out at about 47%.

When the projects are complete, R142.9-billion will have been spent on procurement, R65.7-billion of which will be local.

The Eastern Cape is now home to more than 15 wind farms. More than half the wind farm projects so far approved in the REIPPPP have been allocated to the province. The Kouga area west of Jeffreys Bay and the Cookhouse/Bedford area about 95km north-west of Makhanda (Grahamstown) represent two wind power hubs, with a collective capacity of 1 185MW. POWERX has signed up with AKM Foods to supply power to all the KFC outlets in Nelson Mandela Bay. POWERX trades in renewable energy through licences granted to it by the national energy regulatory authority, NERSA. By aggregating power purchases, the company is able to mitigate risk in a way that an individual purchaser may not be able to. POWERX now supplies over 40 national and local customers in Nelson Mandela Bay and it aims to expand the customer base. ■

Credit: BTE Renewables The REIPPPP has attracted a good deal of praise for its efficiency and effectiveness: in five years about R200-billion was committed in investments in a variety of projects all over South Africa.

South Africa’s two biggest institutional investors, the Industrial Development Corporation (IDC) and the Public Investment Corporation (PIC), have played a big role in helping communities fund participation in community trusts which have taken ownership stakes in power projects.

The REIPPPP was derailed for a period but is now back on track. One of the sad results of the refusal by national utility Eskom to buy renewable power for two years was the closing down and auctioning off of a wind tower manufacturing plant in the Eastern Cape. DCD Wind Towers was a joint venture between the DCD Group and the Industrial Development Corporation (IDC) at Coega.

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

15

EASTERN CAPE BUSINESS 2021/22

executive@bkcob.co.za

Lizelle Maurice

Lizelle Maurice is a child of the Eastern Cape Soil. She did everal tertiary courses through Coronation nursing College, Unisa, Damelin & UCT. She owns Park Place Boutique Guest House, which has won her National Tourism Department’s Lilizela Awards in the Emerging Tourism Entrepreneur of the Year category.

She was appointed as the BKCOB’s Executive Director in 2021.

PROFILE

The Nelson Mandela Bay Business Chamber The Nelson Mandela Nelson Mandela BayBay Business Chamber Business Chamber PROFILE

A catalyst for economic growth in the region.

TT

A catalyst for economic growth in the region. he Nelson Mandela Bay Business Chamber a not-for-profit The heartbeat of business success in theis region.

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

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Chamber is driven by has a Chamber Enterprise Development Theafor Business Chamber hasBusiness been of business Now inwas its launched seventh phase, been the heartbeat of business success in the region over 150 years. the Programme in 2014,the to team of dedicated andforvolunteers, lobbying onfor issues affecting success in the staff region over 150 years. programme is funded by and the ofThe Chamber isisdriven staff thevan skills that enhance ease doing business and companies’ sustainability.

The organisation TheBusiness Business Chamber drivenby byaateam teamofofdedicated dedicated staffand and develop Denise Huyssteen, CapeOfficer Development lobbying ononissues the ease ofofdoing business small businesses.

In Chief 2018 the alsovolunteers, builds international toaffecting form a vital link between business volunteers, lobbyingrelations issues affecting the ease doing business growEastern Chief Executive Nomkhita Mona, Corporation (ECDC) and is geared and sustainability.

Chamber also builds in Business Chamber successfully owners and international markets. The andcompanies’ companies’ sustainability.

TheBusiness organisation also builds internaExecutive Officer. hosttowards developing international relations to form a vital linkbetween betweenbusiness business owners developing sustainable tional relations to form a vital link ownersand and ed towards the fifth phase of the sustainable Enterprise SMEsthrough through an grow enabling and international markets.

SMEs an enabling and international markets. enhance and small Development Programme, with creative enterprise development creative enterprise development businesses.

In 2018 the Business SMEs set to graduate in March 2019. programme, and also also have to facilitate Vision programme, and facilitate Chamber successfully hosted Vision To be a leading catalyst for economic development in Nelson Mandela Bay. Over 120 entrepreneurs benthe effective combination of skillsof ToTobebe a leading catalyst for economic development in Nelson Mandela Bay. efited the effective combination the fifth phase of the Enterprise a leading catalyst for economic development throughout from this programme. development, coaching skills development, coaching and Development Programme, Nelson Mandela Bay. Meanwhile, the pilot phaseand of mentoring using lessons learnt Mission mentoring using lessons learnt from which SMEs graduated in the Business Chamber’s Exporter fromprevious previous phases.

ByMission influencing the factors and key stakeholders that create a from phases.

March 2019.

By influencing the factors and key stakeholders that create a competitive Development Programme concludinception in 2014, the competitive enabling business environment.

Sinceits 120 its inception in have 2014, By influencing the factors and key stakeholders that create a competitive ed atSince entrepreneurs enabling business environment. theOver end of 2018, with 10 comprogramme has benefitted the programme hasprogramme. benefitted enabling business environment. benefited from this panies finishing this programme in its 186businesses businesses who have been Task Teams 186 have been Meanwhile, thewho pilotis phase first year.

The programme aimed of at empowered with skills skillsExporter to The Nelson Mandela Bay Business Chamber has established a structure empowered with to run run the Business Chamber’s Task teams empowering SMEs to position themfinanciallysustainable sustainable enterprises ofThe taskNelson teams Mandela to facilitate the ease ofChamber doing business.

The task teams are: financially enterprises Development Programme forto Bay Business has established a structure The• Nelson Mandela Task Bay Business Chamber has established a structure selves emerging exporters. toas unlock socio-economic Team into socio-economic development 2018/2019 had 10 participants. ofInfrastructure three task teams divided sub-groups, to facilitate the ease of unlock of seven taskSub-group teams to facilitate the ease of doing business. development through structured • doing Water through structured multi-level training, That figure has grown for the business. The task teams are: The task teams are: multi-leveland training, mentoring • • Roads and Stormwater Sub-group mentoring linkage support.

The 2019/2020 intake with and 19 Infrastructure Task Team • Water TaskSub-group Team linkage support.

The programme • Electricity programme runsregistered. over nine months participants The - Roads and Stormwater Sub-group Events at the Nelson Mandela Bayis • • SMME Roads and Storm runs nine months and Task Team Water Task Team and is over facilitated by theempowNelson programme is aimed at - Water Sub-group • • Special SME Task Team Business Chamber keep business facilitated by Nelson Mandela Projects Task Team Mandela University Business School ering SMEs to the position themselves - Electricity Sub-group • andTeam Energy Task Team owners upeWatchdog. toBusiness date and informed University School and the and the as emerging exporters.

• Electricity SMME Task • Enterprise and Logistics Task Team on a eWatchdog. wide of topics affecting Programme Withvariety an unemployment rate of • Transport SpecialDevelopment Projects Task Team • TheMetro Collaboration Team Chamber Enterprise Development business in Nelson Bay. Nelson Mandela BayTask Business 36.4%, this augurs Mandela well for Nelson Events • Programme Trade andDevelopment Investment Team networking functions offer Enterprise Programme was launchedTask in 2014, to develop the skills that enhance Regular Mandela as small businesses Enterprise Development and Exporter Development Events atBay the Nelson Mandela Bay The Nelson Mandela Bay Chamber Enterprise Development and small businesses. entrepreneurship arebusiness seen as Business Chamber keep Thegrow Nelson Mandela BayBusiness Business Chamber Enterprise Develop- and wasseventh launched in 2014,the toindevelop thedevelop skills thatthe enhance and vehicles Programme NowProgramme in its phase, programme is funded by the joband creation. ownersto updrive to date informed ment was launched 2014, to skills that EASTERN CAPE BUSINESS 2019 12 grow small businesses.

Eastern Cape Development Corporation (ECDC) and is geared One of the graduates, Yolanda

Enterprise Development and Exporter Development

Vision

Mission

Task Teams

Events

EASTERN CAPE BUSINESS 2020 EASTERNCAPE CAPEBUSINESS BUSINESS2021/22 2021/22 EASTERN

22 18 18

Bukani, the Managing Director of Black Excellence, said the programme empowered her as an entrepreneur with many critical skills to successfully run her business.

“Entrepreneurship is a lonely journey and without the necessary support, it’s easy to give up. But through this programme, I had the privilege of networking with other entrepreneurs and we shared each other’s journeys and, in the process, created a solid networking platform.

“The mentorship was the greatest source of inspiration because it has helped us to traverse the challenges of running a business and how to overcome them. From here onwards, I foresee exponential growth in my business and hopefully I will be able to create more employment for the Bay’s youth because currently, opportunities are quite few,” Bukani said.

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

Publications and marketing As another value-added service to members, the Nelson Mandela Bay Business Chamber provides members with a variety of publications across print and electronic platforms, including our quarterly printed member magazine, Infocom, and the printed annual Business Guide.

Help desk In line with its vision of providing an enabling environment for business, the Business Chamber set up an Ease of Doing Business help desk in 2018. The help desk assists members through reducing red tape and engaging with the Nelson Mandela Bay Metro regarding these members’ obstacles in conducting business. The Business Chamber also engaged with the city’s leadership in 2018 towards the goal of establishing a One Stop Shop for existing and potential investors and will continue these engagements in this year (2021).

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

The Feather Market Centre has been repurposed as a modern conference centre in the heart of Gqeberha.

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

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

CONTACT DETAILS Address: 200 Norvic Drive, Greenacres 6045 | Tel: +27 (0) 41 373 1122 | Fax: +27 (0) 41 373 1142 Email: info@nmbbusinesschamber.co.za | Website: www.nmbbusinesschamber.co.za

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EASTERN CAPE BUSINESS 2021/22

ADVERTORIAL

Nedbank Business Banking helps the public sector see money differently

‘

We understand that the various spheres of government and their agencies face unique challenges.

They are ready and able to draw on the bank’s innovative, seamless and hassle-free products to help build a greater nation.

‘

But the bank's role goes beyond offering banking solutions to these vital entities. As money experts who do good, Nedbank strives to empower the people behind the public sector by saving them time, money and helping them manage their money better.

'We help them save time by offering on-site help from dedicated teams and through our market-leading Nedbank Money app and other digital solutions. We also help them save money through our preferential banking solutions and our award-winning Financial Fitness and Consumer Education Programme. The latter helps them manage their money better by providing budgeting and money management training, equipping their employees to deal with everyday money management challenges,' says Baleni.

Nedbank is committed to delivering easy and innovative banking solutions to government, municipalities, state-owned enterprises and academic institutions — including TVET colleges and universities — throughout South Africa.

Mzi Baleni, Nedbank's Provincial Manager for the Public Sector in the Eastern Cape, says that given the strategic importance of the public sector to the economy and the country at large, Nedbank has a dedicated team to offer financial solutions that enable the broader mandate of service delivery. ‘We understand that the various spheres of government and their agencies face unique challenges. They are ready and able to draw on the bank’s innovative, seamless and hassle-free products to help build a greater nation.’

EASTERN CAPE BUSINESS 2021/22 see money differently

To find out more about how Nedbank can partner with your organisation to grow a greater South Africa, please call Mzi Baleni on +27 71 928 5867, email him on MziB@nedbank.co.za or visit www.nedbank.co.za/business.

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

ADVERTORIAL

Nedbank Business Banking aims to support all business sectors in the Port Elizabeth area

‘

Jordaan Roelofse, Nedbank Regional Manager of Retail and Business Banking for Port Elizabeth and surrounds, says that their business managers are specialists in the commercial, agriculture, professional, wholesale and retail industries and services, as well as the public sector.

‘

Nedbank understands that if the various challenges faced in the agricultural sector in particular are not addressed, it will threaten economic growth, food security, employment and investment. ‘By using our financial expertise to do good, we partner with our agricultural clients to contribute to a growing, competitive, transformed and climate-resilient agricultural sector.’

To this end, Nedbank has developed innovative funding solutions designed to support farmers with sustainable farming interventions, ranging from water efficiency mechanisms and cutting-edge irrigation to renewable-energy financing. Roelofse says that Nedbank’s leadership position in renewable-energy finance is helping many farmers and agribusinesses to benefit from cleaner, more reliable and affordable power generation than the national grid can provide.

Jordaan Roelofse, Nedbank Regional Manager of Retail and Business Banking for Port Elizabeth and surrounds, says that their business managers are specialists in the commercial, agriculture, professional, wholesale and retail industries and services, as well as the public sector.

Operating from offices in Port Elizabeth, Roelofse says the team is ready to help clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services.

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

‘At Nedbank Business Banking, we believe that you need a flexible, resilient financial partner who not only understands your circumstances and aspirations, but also offers relevant solutions and a banking experience that is hassle-free. This lets you concentrate on what’s most important – running your business,’ says Roelofse.

see money differently

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EASTERN CAPE BUSINESS 2021/22 Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

ADVERTORIAL

Money experts serving the East London business community

‘

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

‘

Nedbank knows that navigating your business through a challenging economic landscape is hard enough, and that taking care of your daily business-banking needs shouldn't add to that load. 'With this in mind, we’ve designed the Nedbank Business Hub with convenience, security and control in mind. The Nedbank Business Hub boasts 130 different services that enables you to bank and transact, get finance, invest and insure – it's hassle-free banking at your fingertips,’ says Pelser.

Sandy Pelser, Nedbank Regional Manager of Retail and Business Banking for East London and surrounds, says that a deep commitment to partnership is what governs the team's personal and professional values.

‘Ultimately, our philosophy is to partner with our clients to grow their businesses, so we’re always finding ways to support them in this quest. Our aim is to use our financial expertise to do good to help build a strong, resilient economy for the betterment of all,’ says Pelser.

‘Our bigger-picture banking approach enables us to not only offer banking solutions that our clients need, but also a holistic view of how our products are connected to create a framework that yields maximum impact across every facet of their businesses and beyond,’ she says. ‘We know that success in business is about partnerships, so we put the building of deep, lasting, value-adding relationships at the centre of everything we do. This means your goals are our goals, your vision is our vision, and your success is our success – while you rely on our additional support that is most needed in times of change and uncertainty,’ she says.

EASTERN CAPE BUSINESS 2021/22 see money differently

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

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

ADVERTORIAL

Nedbank offers specialist support for a postCovid-19 world

‘

...as South Africa progresses through the various stages of Covid-19, they are working through recovery scenarios with existing and prospective clients. This is all while staying true to Nedbank's brand promise to use its financial expertise to do good for individuals, families, businesses and communities in which it operates.

‘

Daneel Rossouw

One of the solutions the bank has added to its portfolio, specifically with Covid-19 safety in mind, is appointment banking. ‘For your convenience and to limit the time you spend in public spaces, you can now make an appointment with a dedicated relationship banker directly via the Nedbank Money app or Online Banking, and choose the date, time and branch that suits you,' says Funani.

Sylvester Funani, Nedbank Regional Manager of Retail and Business Banking in Mthatha, says that as South Africa progresses through the various stages of Covid-19, they are working through recovery scenarios with existing and prospective clients. This is all while staying true to Nedbank's brand promise to use its financial expertise to do good for individuals, families, businesses and communities in which it operates.

Funani’s team operates from the Nedbank Mthatha Plaza branch and is ready to help 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 offer specialised advisory services.

Funani says that, during the pandemic, the bank has elevated its client engagement and extended tailormade relief to many of clients, equipping and enabling them to benefit from various digital and remote solutions. ‘This ensures uninterrupted transactional and informational access while not compromising on security,’ he says.

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

see money differently

23

EASTERN CAPE BUSINESS 2021/22 Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

ADVERTORIAL

Money experts bringing 21st century banking to all communities

‘

Nedbank has continued to deliver on its brand promise, which is to use our financial expertise to do good for individuals, families, businesses and communities in which we operate.

‘

And the innovative banking journey continues, ensuring greater value for clients. The Nedbank Contact Centre and our market-leading Nedbank Money app has enabled the bank to continue serving clients in the comfort of their homes, bringing convenience, safety and compliance with lockdown regulations. With the Money app clients can manage accounts and investments, make payments, set savings goals and budgets, all from their smartphones, and make instant payments to anyone on their contact list, even if the recipient isn’t a Nedbank client.

Bester adds that working with communities is rooted in the bank’s values through community and 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 towards enabling greater financial inclusion while contributing towards economic growth,' he says.

Emile Bester, Nedbank Provincial Client Network and Sales Manager for the Eastern Cape says that as money experts who do good, Nedbank strives to empower the people who drive the Eastern Cape economy by saving them time, money and helping them to manage their money better.

‘Nedbank has continued to deliver on its brand promise, which is to use our financial expertise to do good for individuals, families, businesses and communities in which we operate. Our client-centred strategy has enabled us to reach out to our clients in time of need during Covid-19 lockdown levels,’ says Bester.

EASTERN CAPE BUSINESS 2021/22 see money differently

To find out more about banking from the comfort of your home or for more information about Nedbank’s specialised service offering, please call Emile Bester on +27 (0)10 235 7784, send an email to EmileBe@Nedbank.co.za, or visit www.nedbank.co.za.

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

ADVERTORIAL

Solutions for small businesses aimed at creating jobs and growing the economy

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Our bigger-picture business approach enables us to have a holistic view of each business by understanding the vision, cashflow cycle, and transactional and capital expenditure needs. This way, we become trusted advisors to business owners who strive to grow their businesses

‘

Small businesses often lack formalisation, as proved by many not qualifying for Covid-19 assistance due to outdated records and not meeting regulatory requirements. Sikwebu says that Nedbank’s experts are available to offer all the support small businesses need, which goes beyond affordable banking solutions. ‘We offer value-added services to get and keep your business going, like our free-to-join networking portal, SimplyBiz.co.za, The Essential Guide for Small-business Owners, business registration services and free small-business seminars.’

Nedbank’s Provincial Manager of Small Business Services in the Eastern Cape, Andisa Sikwebu, explains how brand values built on the bank’s expertise can benefit Nedbank clients, especially in what is now considered ‘the new normal’.

Sikwebu adds that the current economic climate has highlighted low financial literacy levels among small-business owners who find themselves highly indebted. ‘Nedbank Retail Banking helps clients with debt consolidation to ease their financial difficulties, and offers financial literacy programmes and tailormade solutions to empower them to save and make better financial decisions in future.’

Sikwebu says that for small-business clients, Nedbank continues to deliver end-to-end solutions through a dedicated business manager. ‘Our bigger-picture business approach enables us to have a holistic view of each business by understanding the vision, cashflow cycle, and transactional and capital expenditure needs. This way, we become trusted advisors to business owners who strive to grow their businesses.’

see money differently

To take the financial wellness of your small business to the next level or for more information, please call Andisa Sikwebu on +27 (0)72 984 9645, send an email to AndisaS@nedbank.co.za, or visit www.nedbank.co.za/business.

25

EASTERN CAPE BUSINESS 2021/22 .

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

OVERVIEW

Agriculture and agro-processing Cannabis producers are thinking of automotive applications.

SECTOR INSIGHT Coega SEZ has an Aquaculture Development Zone.

The province’s Special Economic Zones use their connection to the ocean to promote aquaculture. Credit: ELIDZ

T

he provincial gover nment ’s stimulus fund has invested R206-million in the development of a 100ha Aquaculture Development Zone in the Coega Special Economic Zone (CSEZ). The East London Industrial Development Zone (ELIDZ) already has several companies operating in the aquaculture sector.

A marine tilapia project is a project of the Sustainable Infrastructure Development Symposium. The Eastern Cape Rural Development Agency and the Mbhashe Municipality are implementing the project to benefit more than 15 000 small-scale farmers who will supply the fish farms with feed. The OR Tambo District Municipality has purchased refrigerated containers.

Legislation to control the production and commercialisation of cannabis is being developed and the Eastern Cape provincial government is investigating the building of a cannabis plant.

The automotive sector currently imports hemp plastic which can apparently be replaced by products made from cannabis.

Labat Healthcare South Africa has rolled out the first of a planned series of franchise businesses under the label, Labat Cannabis Warehouse. Medical marijuana is just one of the many products being targeted. Others include cannabidiol (CBD) oils and capsules, oral sprays, terpenes, cannabis-infused foods and energy drinks. The company intends extending its cultivation of cannabis in greenhouses, primarily in Gauteng and the Eastern Cape, to 40 000m².

Getting small-scale farmers connected to agro-processing value chains is a major goal for agricultural policy-makers. This lies behind EASTERN CAPE BUSINESS 2021/22

26

the creation of a Special Economic Zone (SEZ) on the Wild Coast. The 5 000ha Ncora Irrigation Scheme is seen as a model for the SEZ, which has attracted interest from AngloGold Ashanti and Exxaro.

The Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) has several programmes to support small-scale farmers. The Eastern Cape Development Corporation (ECDC) supports agro-processing through loans and equity arrangements: projects that have received financial support include aquaculture, the production of dietary fibre from pineapples and bamboo products.

There are about 70 000 people employed on commercial farms across the Eastern Cape, with a further 436 000 people dependent on smaller farms, mostly in the east.

The National Woolgrowers’ Association of SA (NWGA) is based in Gqeberha formerly Port Elizabeth, as is Cape Wool SA, which used to be known as the South African Wool Board. The NWGA has a simple motto: “more sheep: more wool” which it tries to achieve through its Production Technology Services which is offered to a membership base of 4 500 commercial and 20 000 communal members.

OVERVIEW

Agricultural assets The Eastern Cape provides approximately a quarter of South Africa’s milk, and the industry is further expanding as producers are favouring high-rainfall coastal areas such as the Tsitsikamma region.

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

Farms around the small towns that dot the open plains south of Graaff-Reinet, Aberdeen, Somerset East, Jansenville and Willowmore routinely produce nearly half of South Africa’s production. The office of the South African Mohair Growers Association (SAMGA) is in Jansenville.

Grootfontein College of Agriculture, the only tertiary educational institute in the country to offer a programme aimed at Angora goat farming and mohair production, is located in Middelburg, north of Graaff-Reinet.

Processing of mohair takes place in Kariega (Uitenhage), Gqeberha and Ntabozuko (Berlin) outside East London. The mohair value chain includes brokers, buyers, processors, spinners, manufacturers and retailers.

The SAMIL company has divisions all along the value chain. This covers farming, combing, trading, spinning and dyeing. The Angora Genetics Laboratory (ANGELA) was established in 2013 to improve yields.

The Stucken group controls Mohair Spinners South Africa, Hinterveld (a mill) and a processing company called Gubb & Inggs in Kariega.

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

The Eastern Cape is the country’s second-largest producer of citrus fruit. A national export record was achieved in 2020, with 146-million cartons of fresh citrus being exported (putting South Africa only behind Spain). Citrus yielded R3.4-billion in exports for the Eastern Cape.

Oranges make up the vast majority of citrus products.

Deciduous fruits such as apples, pears and apricots are grown primarily in the Langkloof Valley. Another crop in which the Eastern Cape leads national production is chicory. The province’s pineapple crop is grown in the same part of the Sunshine Coast that produces chicory. The Eastern Cape Rural Development Agency (ECRDA) has partnered with a community to plant the popular nut at Ncera in the Tyume Valley north of Alice.

The Eastern Cape holds 21% of the country’s cattle (about 3.2-million), 28% of its sheep (seven-million) and 46% of its goats, making it the largest livestock province by a large margin.

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

Coca-Cola Sabco and SAB Limited’s Ibhayi brewery a re t h e m a j o r b e v e r a g e manufacturers in Gqeberha and Distell has a bottling plant in the city. Sovereign Fo o d s i n K a r i e g a i s t h e c o u n t r y ’s fo u r t h - b i g g e s t producer of poultry. ■

ONLINE RESOURCES Eastern Cape Rural Development Agency (ECRDA): www.ecrda.co.za Milk Producers Organisation: www.mpo.co.za National Woolgrowers’ Association of South Africa: www.nwga.co.za South African Mohair Growers Association (SAMGA): www.angoras.co.za

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EASTERN CAPE BUSINESS 2021/22

OVERVIEW

Water The Umzimvubu project is a national priority.

SECTOR INSIGHT Water levels in the Kouga Dam have reached dangerous levels.

A

Credit: Gamtoos Irrigation Board

water supply and hydropower project is planned on the Umzimvubu River. The project, recently allocated to the National Department of Public Works and Infrastructure as part of a list of 50 priority infrastructure projects, entails the construction of two multipurpose dams and the provision of hydropower.

The Kouga Dam (pictured), which serves urban areas such as Gqeberha and citrus farmers in the Gamtoos Valley and beyond, was reported to be a 7% in May 2021, the lowest level since it was built.

Several plans are under consideration to alleviate the water shortages facing the Eastern Cape’s towns and rural areas. Most municipalities introduced restrictions on usage with the Nelson Mandela Bay Municipality limiting residents to 50l per day.

The provincial regional bulk infrastructure grant programme is paying for nine bulk water projects, valued at R4.9-billion, including the R500-million Amatola Water Six Plant Upgrade.

The Nelson Mandela Bay metropole currently gets its water from 10 dams, six of which are owned by the municipality. Water services are provided to the citizens of the Eastern Cape by 17 water service authorities which oversee 163 drinking water supply systems.

Muncipalities and Amatola Water are the primary providers of services.

ONLINE RESOURCES National Department of Water and Sanitation: www.dwa.gov.za Umzimvubu Catchment Partnership Programme: www. umzimvubu.org Water Institute of South Africa: www.wisa.org.za Water Research Commission: www.wrc.org.za

EASTERN CAPE BUSINESS 2021/22

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Amatola Water manages bulk water infrastructure across 50 000km², encompassing the district municipalities of Chris Hani and Amathole, together with portions of other municipal areas. Backlogs in rural areas and smaller municipalities are still prevalent, and this water authority is playing a key role in reducing and eradicating these inequalities.

The Rhodes University Institute for Water Research is one of several institutions in the country that conducts research into water quality. A lot of the institute’s funding comes with project-related grants from the national Water Research Commission, some students receive funding from the Carnegie Foundation and Unilever sponsors the Unilever Centre for Environmental Water Quality, a unit within the institute.

The Water Institute of South Africa has 1 800 members. It does research, provides members with information and runs conferences. As in most areas of life in South Africa, environmental standards are set and maintained by the South African Bureau of Standards (SABS). ■

OVERVIEW

Construction and property Gqeberha is expanding westwards.

SECTOR INSIGHT Student accommodation is a growth sector.

Credit: DHK

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he biggest shopping mall in the Eastern Cape is set to become the centre of a significant housing development. The plan for the Baywest Mall (pictured) on the western edge of Gqeberha (formerly Port Elizabeth) always envisaged the project acting as a catalyst for other forms of development. The mall was jointly developed by Abacus Asset Management and the Billion Group.

The Provincial Government of the Eastern Cape has announced that an R18-billion Bay West housing project is at “an advanced stage”.

Involving the metropolitan municipality of Nelson Mandela Bay and private developers, there are plans for 20 400 affordable units and 5 040 social units.

Another area of strong activity is in the building of student accommodation. The Department of Higher Education and Training has seen to it that institutions such as the universities of Fort Hare, Nelson Mandela and Walter Sisulu and the King Hintsa TVET College have each had between 1 000 and 3 000 new beds supplied on their campuses. Student accommodation specialists STAG African are the contractors at Fort Hare.

The choice of the Coega Special Economic Zone (Coega SEZ) by companies looking to distribute their products from there has brought work for construction companies. GVK-Siya Zama is engaged in creating a 11 800m² logistics warehouse situated in Zone 1, following green building principles. Energy-efficient heating and ventilation systems, rainwater harvesting and PV solar panels all form part of the plan to

ONLINE RESOURCES Construction Industry Development Board: www.cidb.org.za Mandela Bay Development Agency: www.mbda.co.za Social Housing Regulatory Authority. www.shra.org.za South African Property Owners Association: www.sapoa.org.za

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control the ambient temperature for the snack and food items which will be stored there.

Coastal properties almost always attract a premium but a new trend towards “semigration” is further boosting prices. Semigration refers to families who live in towns like Knysna or George but the bread-winner commutes to Johannesburg. Towns such as St Francis Bay, Jeffreys Bay and Port Alfred are now becoming the site of primary residences, instead of being exclusively holiday destinations.

A new housing development in the rural area of Keiskammahoek attracted funding of R25-million from the Eastern Cape Provincial Department of Human Settlements.

Aimed at destitute families, the first phase was conducted in the settlement of Masincedane, and the project will ultimately cater to 1 255 beneficiaries.

The Mandela Bay Development Agency (MBDA) has transformed the Old Tramway building at the entrance to the Baakens Valley.

The MBDA not only moved into new offices in the renovated building but is letting it out as an events venue. Other retail property developments have happened in the valley (including a popular brewery), drawing attention to the potential of Port Elizabeth’s green lung to be even more useful in future. ■ EASTERN CAPE BUSINESS 2021/22

OVERVIEW

Manufacturing Ford wants to see a rail corridor to Gauteng established.

SECTOR INSIGHT Increasing volumes at the port of Ngqura is a priority for Transnet.

Credit: Volkswagen SA

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he production of the Mercedes-Benz C-Class in East London is a technological marvel, and the plant regularly wins international awards for quality. The installation of a new sequencing centre, to be installed by Automotive Logistics Solutions (an AHI company) will make the assembly line even more efficient.

The plant has also recently become an IT Hub with a focus on data analytics, software development and business analysis. Mercedes-Benz consistently breaks records for the number of cars it exports through the Port of East London via Transnet Port Terminals.

The 520 963m² Volkswagen SA plant (pictured) in Kariega (formerly Uitenhage) produces Volkswagen Polo, Cross Polo and engines, and in 2019 created a new production record of 161 954 vehicles, with 108 422 destined for the export market.

In 2021 Ford announced that it would spend a total of R15.8-billion on production of the Ranger pick-up truck. Most of the money will be spent in Gauteng where the vehicle is assembled, but Ford is also in talks to see if a sophisticated rail corridor can be developed between Gauteng and the Eastern Cape, where Ford makes engines and many of its suppliers are located. The company wants to send parts to Pretoria and export cars through the Port of Gqeberha (formerly Port Elizabeth).

Home-grown manufacturer of powertrain and catalytic converter assembly systems, Jendamark, exports to 18 countries.

Continental Tyre South Africa is producing a 19-inch tyre for the first time at its New Brighton facility in Port Elizabeth. Isuzu SA has completed its consolidation project, with truck and bakkie manufacturing now taking place at its new headquarters in Struandale, Port Elizabeth.

ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za Coega Development Corporation: www.coega.co.za Eastern Cape Development Corporation: www.ecdc.co.za

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Phase 1 in the construction process of the vehicle assembly plant of Beijing Automotive Group South Africa (BAIC SA) is complete.

The provincial government aims for more diversification in manufacturing and is targeting sectors where the province already has a competitive advantage (such as wool and mohair), is labour intensive, will have a broad impact and has low barriers for SMME entry.

First National Battery, a Metair Group company, has one factory at Fort Jackson and two factories in East London.

Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Party in Port Elizabeth and Gately Township, East London. Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Port Elizabeth. East London hosts Johnson & Johnson’s finance, operations and research and development divisions.

Aspen Pharmacare’s R1-billion specialised product facility at Port Elizabeth will add 500 jobs to the existing staff of 2 000. The new plant will make products for chronic conditions. Annual production of about 3.6-billion tablets is planned. ■

OVERVIEW

Tourism The East London beachfront is being upgraded.

SECTOR INSIGHT Road repairs to tourism sites are being undertaken.

Hotels, lodges and casinos

Credit: Buffalo City Tourism

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ourism infrastructure projects are underway as a means of preparing for the post-Covid-19 environment. The East London Beachfront Development and East London Waterworld are under construction. Upgrading of beaches in the Ndlambe Local Municipality are planned and a hiking trail from Coffee Bay to Port St Johns is being built.

The R61 road from Bhaziya to Mthatha airport junction will soon be repaired and upgraded and contracts for a number of other provincial roads leading to tourist sites have been put out to tender, including Makhanda to Port Alfred and the R61 to Hluleka Game Reserve.

Built on the site of the Prince Alfred Park in Gqeberha (formerly Port Elizabeth), the 42 000-seater Nelson Mandela Bay Stadium is quite rare in being adjacent to a body of water, the North End Lake.

Since it was built in 2010, rugby test matches and international rugby tournaments have been played there and the stadium and stadium precinct have become popular as sites for events, music concerts and product launches.

With regard to domestic tourism, the Eastern Cape’s 12.1% share of the pie is fairly close to the leader (17.2%) and it’s easy to see why.

Unmatched beaches, the pristine Wild Coast and a wide variety of national parks and private game reserves make for a superb natural offering. Branding the province as the “Adventure Province” has helped in attracting bungy-jumpers, divers, abseilers and rock climbers.

ONLINE RESOURCES Buffalo City Tourism: www.bctourism.co.za Eastern Cape Gambling and Betting Board: www.ecgbb.co.za Eastern Cape Parks and Tourism Agency: www.visiteasterncape.co.za Mandela Bay Development Agency: www.mbda.co.za

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A new luxury hotel is being built in St Francis Bay. The 60-room St Francis Links Hotel by Mantis will overlook the golf course’s final hole and has views of the Indian Ocean and Kouga Mountains.

The interior of the Eastern Cape is home to several high-end private game reserves such as Shamwari, Mount Camdeboo and Kariega Game Reserve.

Some luxury game lodges are located within national parks, such as the Gorah Elephant Camp, which is run by Hunter Hotels and forms part of the Addo Elephant National Park.

Premier Hotels has two hotels in East London, the Mpanga Private Game Reserve and it manages the East London International Convention Centre. The Radisson Blu in Port Elizabeth offers five-star luxury overlooking Pollock Beach.

Tsogo Sun has five Eastern Cape properties. The Courtyard Hotel, City Lodge Hotel and Road Lodge are close to one another on Port Elizabeth’s beachfront and allow the group to cater to three distinct markets with a total of 442 rooms.

East London has a Road Lodge.

Sun International runs the Wild Coast Sun and the five-star Boardwalk Casino and Entertainment World in Port Elizabeth, which includes conference and events facilities. ■ EASTERN CAPE BUSINESS 2021/22

OVERVIEW

Education and training Curro has expanded its Eastern Cape footprint.

SECTOR INSIGHT Four new college campuses are being built.

Credit: St George’s Preparatory School

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t George’s Preparatory School, founded in 1936 and located opposite the famous cricket ground in Gqeberha, has become the latest addition to the private Curro group of schools. The acquisition doubles Curro’s presence in the province, with the centrally-based preparatory school joining Westbrook Curro, which is located in the Westbrook Estate off the old Cape Road in the city’s western suburbs.

The Eastern Cape has eight Technical and Vocational Education Training (TVET) colleges, most of which have more than one campus: Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College.

An amount of R569-million will be spent on building four new TVET campuses to expand the accessibility of these colleges. These new facilities are two new Ikhala TVET College campuses (Sterkspruit and Maletswai), a new East Cape Midlands campus in Graaff-Reinet and a new Ingwe TVET College campus in Ngqungqushe (Lusikisiki).

The National Department of Higher Education and Training has been investing heavily in student accommodation in the province. This programme has seen an additional 2 000 beds added at the Nelson Mandela University in Gqeberha, 2 047 student beds at the University of Fort Hare, 3 000 beds at Walter Sisulu University, and 1 000 beds at King Hintsa TVET College.

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The Eastern Cape Provincial Government has announced that a medical school has been allocated to the province. Nelson Mandela University will start offering classes in 2021. The Missionvale campus, near to the Dora Nginza Provincial Hospital, will be the site for the school. A school for vets is being considered for Fort Hare University.

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

A Science Centre for school pupils in Cofimvaba has been established as part of a drive to promote science, technology and mathematics.

The Eastern Cape is home to a number of traditional boys schools, including Queen’s College in Queenstown, Selborne in East London, Dale College in King Williams Town, Muir College in Uitenhage and Grey High School in Port Elizabeth. Cradock’s agricultural school, Marlow, has a high reputation for farm education.

In Grahamstown St Andrew’s College, St Andrew’s Preparatory School and The Diocesan School for Girls are part of a “family of

OVERVIEW

schools” while Victoria Girls’ High School, Kingswood College and Graeme College are other well-regarded schools for English-speakers.

PJ Olivier High School caters to Afrikaans-speakers.

Another NMU body, eNtsa, supports the manufacturing sector through research in areas such as automotive, power generation and petrochemicals. eNtsa is supported by the Technology Innovation Agency.

R h o d e s U n i v e r s i t y ’s Centre for Environmental Water Quality, within the Institute for Water Research, is sponsored by Unilever. The NMU Institute of Chemical Technology commercialises research through a body called InnoVenton and has several clients in the private sector.

In 2017, Nelson Mandela University (NMU) inaugurated its Ocean Science campus at its Port Elizabeth base. This includes a unit aimed at combating sea fisheries crime (FishFORCE, with support from Norway) and the South African International Maritime Institute (SAIMI). The university has four marine sector chairs funded by the South African Research Chair Initiative (SARChI) and the National Research Foundation (NRF).

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

Research and innovation Among the important work being done at Rhodes University’s new Biotechnology Innovation Centre is research on the basic and applied sides of stem cell biology. Helping pregnant women in rural areas is another focus. A cellphone app will send colour pictures of test strips to diagnostic centres, saving the patient a long and difficult journey to hospital. The university plans to build an Innovation and Nanotechnology Institute to accommodate the exciting work being done by a team of researchers led by Professor Tebello Nyokong. The Chemical and Pharmaceutical Sciences Building of Rhodes University is also to be upgraded and refurbished.

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

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

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

General Motors SA has assigned R3.6-million to a Chair in Mechatronics at NMU, which offers a Bachelor of Engineering in Mechatronics, covering electronics, mechanical engineering and computer-aided design. Volkswagen supports the International Chair in Automotive Engineering at NMU. NMU’s Ford Engine Research Unit (FERU) falls under the School of Engineering and centres its activities on new engine research and development trends, new initiatives within the field of engine testing and associated research.

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

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EASTERN CAPE BUSINESS 2021/22

OVERVIEW

Banking and financial services New banks are offering more choices.

SECTOR INSIGHT Africa’s biggest bank has Port Elizabeth roots.

A

frica’s biggest bank made its start in Port Elizabeth.

Entrepreneur John Paterson launched Standard Bank in London in 1862 and opened its first branch in Port Elizabeth in 1863. The initial spark was the discovery of diamonds in Kimberley but gold prospectors soon needed financing too, so 1866 saw the opening of a branch in Johannesburg. The bank continues to have a presence in Govan Mbeki Avenue (previously Main Street) and is active in the province.

The financial and business services sector is responsible of 19.2% of the Eastern Cape’s Gross Domestic Product (StatsSA). The sector provides employment for 141 000 people.

Agricultural finance is an important factor in the Eastern Cape.

Production loans, vehicle financing and revolving credit plans all play an important role in keeping farmers and agro-processors in business.

Despite a bad experience with a mutual bank that was looted in Limpopo, the appetite for mutual banks is strong, given the nature of the South African market. The Young Women in Business Network (YWBN) received approval in March 2021 for a mutual bank licence. Savings and business loans will be offered, and the public will have a chance to buy shares later in the year. Bank Zero will use the mutual model while other new entrants such as TymeBank (free transactional accounts) and Discovery Bank (which applies the behavioural model it uses in its health business to reward good financial behaviour) have introduced interesting innovations to the South African banking sector.

ONLINE RESOURCES Auditor-General of South Africa: www.agsa.co.za Financial Sector Conduct Authority: www.fsca.co.za South African Institute for Chartered Accountants: www.saica.co.za South African Reserve Bank: www.resbank.co.za EASTERN CAPE BUSINESS 2021/22

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Tyme stands for Take Your Money Everywhere and refers to the bank not having a branch network. Perhaps the lockdown encouraged customers to think in digital terms because Tyme reported in October 2020 that it had 2.4-million customers, up from 1.4-million at the end of March. A 400% increase in the use of services such as airtime and electricity purchases was also noted.

Discovery Bank officially launched in March 2019 and is experiencing rapid growth with deposits of R3.7-billion.

Another relatively new bank is Capitec, which is steadily increasing its customer base by providing banking for business and individual customers in what it describes as a simple manner. It has branches in the small Eastern Cape towns of Bizana and Lusikisiki. In May 2020, investment holding company PSG announced that it would reduce its holding in Capitec Bank from 32% to 4%, earning about R4-billion by selling those shares.

Capitec merits inclusion in a new retail “Big Five”, with Standard Bank, Absa, FNB and Nedbank.

In terms of assets, the five biggest banks are Standard Bank, FirstRand (which owns FNB), Absa (part of Barclays Group Africa), Nedbank and Investec. ■

Standard Bank’s new campaign celebrates triumphant South African business South Africa banks on business. Business banks on us. demonstrate how they have partnered with them to help them grow. The bank will be delving into the remarkable histories of the businesses, celebrating their resilience, and honouring the many ways that they have positively changed, and continue to change, the lives of the people who work for them and the communities in which they operate.

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mall and medium enterprises are the lifeblood of Africa. They play a crucial role in its growth, providing employment, stoking new economies, and connecting the continent to the rest of the world.

In South Africa they are the heartbeat of our GDP. SMEs drive real growth, and it is estimated that they provide employment to roughly 47% of the workforce, with their total economic output accounting for around 20% of GDP. These businesses are owned by our neighbours, family and friends and they touch our lives every day, often in small ways but sometimes in grand, immeasurable ways.

The impact that these businesses have, makes for incredible stories, and it is these stories of tangible, sustainable growth that form part of Standard Bank’s new business banking marketing campaign.

The campaign tagline, South Africa banks on business.

Business banks on us speaks to real stories, about real business, and the real, life-changing impact they have on people’s lives.

Remarkable stories Standard Bank has collaborated with some of their business clients, to tell their stories and to

These stories will showcase how these businesses employ people, empowering them and their families, and aiding in their children getting an education. They will highlight how businesses provide the impetus for growth and help to take families and communities out of poverty, and how they drive economic activity and act to combat socio-economic challenges.

In the coming weeks, these remarkable stories will be unpacked across billboards, in print, online, on radio,and on television.

In times of uncertainty, businesses want partners that bring them certainty, reliability and excellence when it comes to service. But, importantly, they also deserve partners who understand their needs and who are committed to helping them achieve their goals.

Standard Bank supports many of these businesses with banking solutions, trade assistance, market access, transcontinental networking platforms and more. Their Business Banking offering is an ecosystem of innovative products designed to meet even the most complex needs. They cut across sectors and look to provide clients with access to funding, expertise and advice, digital integration, trade solutions and insurance coverage.

Every day Standard Bank partners with businesses to help them unlock their growth, no matter the economic climate.

That is why, South Africa banks on business. Business banks on us. ■

OVERVIEW

Development finance and SMME support Supply chains are providing chances for small businesses.

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olkswagen South Africa (VWSA) has a project called Ntinga (“to soar” in Xhosa) whereby suppliers receive training and are mentored for 18 months. A selection of black-owned manufacturing businesses exhibit at the company’s Black Supplier Day with the potential to become a Volkswagen supplier.

Municipal and provincial procurement policies specify that certain goods should come from SMMEs. In 2020/21, the provincial government spent R16.8-billion (or 61% of the budget) on suppliers and service providers based within the province. A total of R4.1-billion was spent on SMMEs. A programme called “Have-I-Been-Paid” aims to improve the time within which payments are made.

The Nelson Mandela Bay Business Chamber’s Enterprise Development Programme has several par ts: the Expor t Development Programme is the latest initiative.

The National Department of Small Business Development (DSBD) has allocated R6.6-million to the Informal and Micro-Enterprise Development Programme (IMEDP) for the Eastern Cape. The DSBD’s other programmes include: • The Black Business Supplier Development Programme.

• The Co-operative Incentive Scheme, a 100% grant.

The Small Enterprise Development Agency (Seda) is an agency of the DSBD which gives non-financial support to entrepreneurs through training, marketing and assistance in the writing of business plans.

The Seda Technology Programme (Stp) helps potential businesses become trading entities. There are 10 offices in the province, with the main provincial office in East London. Port Elizabeth is the head office of the Chemin incubator which supports SMMEs in the downstream chemical sector. Furntech (a furniture incubator) has a branch in Mthatha and there are also construction incubators.

The Industrial Development Corporation (IDC) is another financing institution. It sometimes takes shares in businesses but also administers programmes such as the Manufacturing Competitiveness Enhancement Programme (MCEP).

ONLINE RESOURCES Eastern Cape Development Corporation: www.ecdc.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za MCEP: www.investmentincentives.co.za/mcep

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SECTOR INSIGHT The Nelson Mandela Bay Business Chamber has launched an Export Development Programme.

Two of the Eastern Cape Development Corporation’s seven business units are devoted to small business: Development Finance and Enterprise Development. The ECDC has several financial products tailored to SMMEs. The ECDC and the Technology Innovation Agency (TIA) jointly run the TIA-ECD Innovation Seed Fund Programme, which aims to identify and co-fund earlier-stage technology innovation projects.

Help Desks have been established to support small business in Port Elizabeth and East London.

As part of its Small Contractor Development, Training and Community Participation programme, the South African National Roads Agency (SANRAL) offers training.

Since its inception, the SAB Foundation’s Tholoana Enterprise Programme has provided over R35-million in grant funding and business support to 1 056 entrepreneurs in the Eastern Cape.

One example of what can be achieved is illustrated by Bukelwa Ngoqo, founder of Sunkissed Fashion, who increased her turnover from R250 000 to R830 000 and grew her workforce from four employees to eight. ■

SMME VIRTUAL ROADSHOW PRACTICAL AND USEFUL INFORMATION ON SMALL, MEDIUM AND MICRO-BUSINESS IN SOUTH AFRICA.

TO REGISTER: Visit www.gan.co.za and then SMME Virtual Roadshow

Since 2014, the SMME Roadshow has supported small business in South Africa. Following the unprecedented challenges of 2020, Global Africa Network is relaunching the SMME Roadshow in a fully virtual, nationwide format.

The SMME Virtual Roadshow, brought to you by Global Africa Network Media with Nemesis Accounting, SME Warrior and Aurum Wealth Creators, takes the form of presentations and practical guidance from thought leaders and experts in their fields.

Presentations are pre-recorded for quality and convenience and presenters and their teams will be on hand to engage and interact with delegates. Delegates will also be able to network with other delegates.

Who should attend?

SMMEs requiring support and guidance on the following topics should attend:

ABOUT GLOBAL AFRICA NETWORK Global Africa Network Media (GAN) is an established authority on business development in South Africa’s nine provinces. GAN’s online products include its well-established B2B portal, www. globalafricanetwork.com, and its monthly business and investment e-newsletters, with a reach of over 53 000 subscribers.

Each of the nine titles and the national journal, South African Business, has been utilised by all levels of government, parastatals, corporates, and national and provincial businesses. GAN is a specialist in small and developing business, and the company is a trusted partner of business chambers and other representatives of organised business in each province.

For information on sponsorship opportunities, email info@gan.co.za

• • • • • • •

Access to funding Access to markets Business revival Training and skills development Compliance and regulatory Technology support Running a business

Each of South Africa’s nine provinces will be represented at the Roadshow, and will showcase incentives, services and opportunities available to SMMEs.

LISTING

Eastern Cape Provincial Government A guide to the Eastern Cape’s provincial government departments. Visit www.ecprov.gov.za Office of the Premier Premier: Oscar Mabuyane Office of the Premier Building, Independence Avenue, Bhisho 5605 Tel: +27 40 609 6644 | Fax: +27 86 681 9493 Website: www.ecprov.gov.za

Department of Public Works MEC: Babalo Madikizela 5 Qasana Bldg, Independence Avenue, Bhisho 5605 Tel: 0800 864 951. Website: www.ecdpw.gov.za Department of Rural Development and Agrarian Reform MEC: Nonkqubela Pieters Dukumbane Bldg, Independence Ave, Bhisho 5606 Tel: +27 40 602 5006 | Fax: +27 40 635 0604 Website: www.drdar.gov.za

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

Department of Safety and Liaison MEC: Weziwe Tikana Arches Building 7, Taylor St, King Williams Town 5601 Tel: +27 43 605 6800 | Fax: 086 558 0224 Website: www.ecprov.gov.za

Department of Economic Development, Environmental Affairs and Tourism MEC: Mlungisi Mvoko 2nd Flr, Beacon Hill, Hockley Cl, King Williams Town 5600 Tel: +27 43 605 7000 | Fax: +27 43 605 7303 Website: www.dedea.gov.za

Department of Social Development MEC: Siphokazi Lusithi Phalo Ave, 5th Flr, Dukumbana Building, Bisho 5605 Tel: +27 43 605 5419 | Fax: +27 43 605 5000 Website: www.ecdsd.gov.za

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

Department of Sports, Recreation, Arts and Culture MEC: Fezeka Nkomonye 5 Eales St, King Williams Town 5600 Tel: +27 43 604 4101 | Website: www.ecsrac.gov.za

Department of Health MEC: Nomakhosazana Meth Dukumbane Bldg, Independence Ave, Bhisho 5605 Tel: +27 40 608 1117 | Fax: +27 40 608 1118 Website: www.echealth.gov.za

Department of Transport MEC: Weziwe Tikana Flemming St, Schornville, King Williams Town 5601 Tel: +27 43 604 7400 | Fax: 086 298 5598 Website: www.ectransport.gov.za

Department of Human Settlements MEC: Nonceba Kontsiwe 31-33 Phillip Frame Rd, Waverly Park, Chiselhurst, East London 5247 Tel: +27 43 711 9901/2/3 | Fax: +27 43 711 9797 Website: www.ecdhs.gov.za EASTERN CAPE BUSINESS 2021/22

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

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LISTING

Eastern Cape Local Government A guide to the Eastern Cape’s metropolitan, district and local municipalities.

ALFRED NZO DISTRICT MUNICIPALITY Erf 1400, Ntsizwa Street, Mount Ayliff Tel: +27 39 254 5000 | Fax: +27 39 254 0343 Email: info@andm.gov.za Website: www.andm.gov.za Matatiele Local Municipality Tel: +27 39 737 8100 Fax: +27 39 737 3611 Website: www.matatiele.gov.za Ntabankulu Local Municipality Tel: +27 39 258 0056 Fax: +27 39 258 0173 Website: www.ntabankulu.gov.za Umzimvubu Local Municipality Tel: +27 39 255 8500 Fax: +27 39 255 0167 Website: www.umzimvubu.gov.za Winnie Madikizela-Mandela Local Municipality Tel: +27 39 251 0230 Fax: +27 39 251 0917 Website: www.mbizana.gov.za AMATHOLE DISTRICT MUNICIPALITY 3-33 Phillip Frame Road, Chiselhurst, Cambridge, East London Tel: +27 43 701 4000 | Fax: +27 43 742 0337 Email: info@amathole.gov.za Website: www.amathole.gov.za Amahlathi Local Municipality Tel: +27 43 683 5000 | Fax: +27 43 683 2970 Website: www.amahlathi.gov.za Great Kei Local Municipality Tel: +27 43 831 1028 | Fax: +27 43 831 1483 Website: www.greatkeilm.gov.za Mbashe Local Municipality Tel: +27 47 489 5800 | Fax: +27 47 489 5800 Website: www.mbhashemun.gov.za

Mnquma Local Municipality Tel: +27 47 401 2400 | Fax: +27 47 491 0195 Website: www.mnquma.gov.za Ngqushwa Local Municipality Tel: +27 40 673 3095 | Fax: +27 40 673 3771 Website: www.ngqushwamun.gov.za Raymond Mhlaba Local Municipality Tel: +27 645 7400 Fax: +27 46 645 2562 Website: www.raymondmhlaba.gov.za BUFFALO CITY METROPOLITAN MUNICIPALITY 117 Oxford Street, Cnr North and Oxford Streets, Trust Centre, East London Tel: +27 43 705 2000 | Fax: +27 43 743 1688 Website: www.buffalocity.gov.za CHRIS HANI DISTRICT MUNICIPALITY 15 Bells Road, Komani Tel: +27 45 808 4600 | Fax: +27 45 838 1556 Website: www.chrishanidm.gov.za Emalahleni Local Municipality Tel: +27 47 878 0020 | Fax: +27 47 878 0112 Website: www.emalahleni.gov.za Engcobo Local Municipality Tel: +27 47 548 5600 | Fax: +27 47 548 1078 Website: www.engcobolm.gov.za Enoch Mgijima Local Municipality Tel: +27 45 807 2606 Fax: +27 45 807 2637 Website: www.enochmgijima.org.za Intsika Yethu Local Municipality Tel: +27 47 874 8700 | Fax: +27 47 874 0010 Website: www.intsikayethu.gov.za

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EASTERN CAPE BUSINESS 2021/22

LISTING Mhlontlo Local Municipality Tel: +27 47 553 7000 | Fax: +27 47 553 0189 Website: www.mhlontlolm.gov.za

Sakhisizwe Local Municipality Tel: +27 47 877 5200 Fax: +27 47 877 0000 Website: www.sakhisizwe.gov.za

Nyandeni Local Municipality Tel: +27 47 555 5000 | Fax: +27 47 555 0202 Website: www.nyandenilm.gov.za

JOE GQABI DISTRICT MUNICIPALITY Cnr Cole and Graham Streets, Barkly East Tel: +27 45 979 3000 Fax: +27 45 971 0251 Website: www.jgdm.gov.za

Port St Johns Local Municipality Tel: +27 47 564 1207 Fax: +27 47 564 1206 Website: www.psjmunicipality.gov.za

Elundini Local Municipality Tel: +27 45 932 8100 | Fax: +27 45 932 1094 Website: www.elundini.org.za Walter Sisulu Local Municipality Tel: +27 51 653 1777 Fax: +27 51 653 0056 Website: www.wslm.gov.za

SARAH BAARTMAN DISTRICT MUNICIPALITY 32 Govan Mbeki Avenue, Port Elizabeth Tel: +27 41 508 7111 Fax: +27 41 508 7000 Website: www.sarahbaartman.co.za

Senqu Local Municipality Tel: +27 51 603 1300 | Fax: +27 51 603 0445 Website: www.senqumunicipality.co.za

Blue Crane Route Local Municipality Tel: +27 49 807 5700 | Fax: +27 49 892 4319 Website: www.bcrm.gov.za

NELSON MANDELA BAY METROPOLITAN MUNICIPALITY City Hall, Vuyisile Mini Square, Govan Mbeki Avenue, Nelson Mandela Bay Tel: +27 41 506 3208/9 Fax: +27 41 506 2422 Website: www.nelsonmandelabay.gov.za

Dr Beyers Naude Local Municipality Tel: +27 49 807 5700 | Fax: +27 49 892 4319 Website: www.camdeboo.gov.za

OR TAMBO DISTRICT MUNICIPALITY OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthatha Tel: +27 47 501 6400 Fax: +27 47 532 6518 Website: www.ortambodm.gov.za

Kou-Kamma Local Municipality Tel: +27 42 288 7200 | Fax: +27 42 288 0797 Website: www.koukammamun.co.za

Kouga Local Municipality Tel: +27 42 200 2200 | Fax: +27 42 200 8606 Website: www.kouga.gov.za

Makana Local Municipality Tel: +27 46 603 6111 Fax: +27 46 622 9700 Website: www.makana.gov.za

Ingquza Hill Local Municipality Tel: +27 39 252 0131 Fax: +27 39 252 0699 Website: www.ihlm.gov.za

Ndlambe Local Municipality Tel: +27 46 624 1140 Fax: +27 46 624 2669 Website: www.ndlambe.gov.za

King Sabata Dalindyebo Local Municipality Tel: +27 47 501 4000 | Fax: +27 47 531 3128 Website: www.ksd.gov.za

EASTERN CAPE BUSINESS 2021/22

Sundays River Valley Local Municipality Tel: +27 42 230 7700/0077 Fax: +27 42 230 1799 Website: www.srvm.gov.za

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