Issuu on Google+

2016 EDITION

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

REUBEN MABUTHO ZWANE BUSINESSMAN OF THE YEAR 2016

JOIN US ONLINE

WWW.EASTERNCAPEBUSINESS.CO.ZA


Amatola Water

With the country battling a severe drought and water shortages, it is comforting to know that the people looking after our water carry a solid pedigree and business experience. Lefadi Makibinyane, the relatively new Chief Executive Officer of Amatola Water has brought a wealth of experience and expertise to his role of steering Amatola Water. An essential services utility operating in the water sector, Amatola Water was established in terms of the Water Services Act (Act 108 of 1997) and is accountable to the Minister of Water and Sanitation as its executive authority. The water board’s primary function is the provision of bulk water supply and sanitation services in order to advance the socio-economic potential of the people of the Eastern Cape. In addition, as stipulated under the provisions of Section 30 of the Act, the utility also offers services in: • Operation and maintenance of water treatment works and dams • Management Services to waters services institutions • Project Implementation • Concessions; and • Advisory Services Makibinyane is an accomplished engineer and executive, having worked in various leadership positions in both public and corporate institutions, including the City of Tshwane Metropolitan Municipality; Industrial Development Corporation of South Africa (IDC); South African Breweries (SAB) and SASOL, among others. As CEO of Amatola Water, Makibinyane’s role is to drive the utility’s 20-year strategy, which is currently in its third year of implementation. Makibinyane has a transformative for the future of the utility and strongly believes in a collaborative

approach between the public/ private sectors and government in order to drive the country’s water services delivery forward. Makibinyane’s tenure, coupled with the appointment of a new Board of Directors comes at a very crucial time when the utility is faced with a myriad of growth opportunities as it embarks on its role to deliver on comprehensive bulk water and sanitation services in the Eastern Cape. The newly appointed board of directors comprises highly accomplished water sector and business leaders who will serve a four-year term, effective from February 2016. Eastern Cape business woman and former CEO of Aspire and Eastern Cape Parks Board, Nokulunga Mnqeta will serve as chairman of the Board, together with Sizwe Hadebe as Deputy Chairman and Rhodes University professor Lynette Louw, who also served in the previous Board. Brian Hollingworth, Mphoko Nzimande, Abraham Le Roux, Chuma Mbande, Tebogo Maenetja and Eugene Jooste also join the Board of Directors. “We are delighted to be welcoming our new board members, as appointed by the Department of Water and Sanitation, our Shareholder. I believe that each individual brings with them a broad range of skills and knowledge that will build on the great strides already made by the previous Board. We are confident that they will assist the utility to grow from strength to strengths as it charts its future path in the water sector,” says Makibinyane.

CEO Lefadi Makibinyane


CONTENTS

CONTENTS Eastern Cape Business 2016 Edition

Introduction Message 9 The Eastern Cape Development Corporation offers an insight into some of the opportunities that exist within the Eastern Cape.

Special features Regional overview of the Eastern Cape The Eastern Cape province is fast coming to be seen as one of South Africa’s international assets.

10

Vision 2030 A provincial plan for ensuring the Eastern Cape realises its full potential.

28

36 Operation Phakisa The National Government’s plan to ensure rapid development in terms of the economy, infrastructure and social upliftment. Maritime The Eastern Cape’s coastline offers an amazing array of economic opportunities for the province.

50

Trade and export Trade in the Eastern Cape has seen impressive growth in recent year.

52

A period of positive growth and development An overview of South Africa’s future plans.

EASTERN CAPE BUSINESS 2016

2

64


No more queues. UIF COMPLIANCE AT YOUR FINGER TIPS The Unemployment Insurance Contributions Act 2002, requires every employer to contribute 2% of the remuneration in respect of each employee who works for 24 hours and more. The employer contributes 1% and the employee contributes 1% and the total to UIF is 2%. The employer is expected to provide the UIF with both the declaration and the contribution amount on or before the 7th of each month in respect of each employee. It is the responsibility of the employer to ensure that all employee are registered with the UIF.

uFiling provides the following benefits to employers and agents: • Improved service delivery • A secure and convenient online service • Instant updates and access to uFiling data ; and • Reduced data error.

The fund has leveraged on technological advances to improve its operational systems to the benefit of its clients. The uFiling system is an online application that is convenient and user friendly that employers can use to declare and pay contributions. To activate as a uFiler the employer must have a UIF reference number.When opening the web page the user must logon to www.ufilling.co.za/www.ufliling.gov.za then click on Activate my ufiling account and select either domestic,commercial or agent to complete the activation process. The system will guide the user through the activation process. Once the activation process is completed, the user will immediately receive an e-mail notification confirming his or her login details. NB: The uFiling system also allows employees to submit their UIF claims online. For more information about uFiling Visit www.labour.gov.za or www.ufiling.gov.za www.ufiling.co.za Call centre number: 012 337 1680 Toll free number: 0800 843 843

The Unemployment Insurance Fund... Works for you!


CONTENTS

Economic sectors Destination Eastern Cape 56 An overview of the astounding array of tourism destination and activities available to visitors of the Eastern Cape. Agriculture 70 The agricultural sector plays an important role in the lives of many Eastern Cape citizens. Aquaculture 74 Fish farming is believed to be the only sustainable alternative to dwindling natural resources. Forestry The Eastern Cape provides the country with a vital source of timber.

76

Food and beverages The Eastern Cape has the potential to become South Africa’s leading “agro-processing hub”.

78

Automotive The automotive industry is the backbone of the Eastern Cape’s economy.

80

Automotive components World-class infrastructure and port locations offer the industry easy access to global networks.

84

Specialty gas The launch of an industrial or specialty gas plant in the Eastern Cape has changed the face of the industry in the province.

86

Energy 88 With the energy sector facing huge challenges, the Eastern Cape’s natural resources offer huge potential to meet the energy demand required for economic growth. Education and training 92 The province has a wide range of educational institutions, but the focus is shifting towards skills training that is most relevant to the needs of the economy. Property and construction 96 There is a growing emphasis towards local development, from rural construction through to dynamic new commercial spaces.

EASTERN CAPE BUSINESS 2016

4


14478

MAKE

TAKING YOUR BUSINESS TO THE NEXT LEVEL HAPPEN Remember that moment you wanted to give up. When you thought the odds had claimed you. You’d eaten, slept and dreamed of the victory. Woken before dawn and worked till the next one. Then you started losing ground. And you realised, you’d pushed yourself to your limit. You could go no further. You could go no further, alone. And at that moment, you reached out, you sought guidance, expertise and knowledge to take you to the next level. Someone to spur you on. For some, the race is over. But not for you.

Amazing things happen when you partner with the right people.

Email us today at business@nedbank.co.za.

#ThingsThatReallyMatter

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


CONTENTS Water 98 The recent drought has resulted in the development of the Eastern Cape Water Master Plan, in an effort to alleviate the stress on industry and society. Banking and financial services 100 Despite being a largely rural province, the Eastern Cape offers world-class banking infrastructure and services. Development finance and SMME support 104 A number of agencies exist to support small businesses and entrepreneurs in the Eastern Cape who want to start a new business.

Government South African National Government An overview South Africa’s national government departments

106

Eastern Cape Provincial Government A guide to the province’s government departments

110

Eastern Cape Local Government 112 A guide to metropolitan, district and local municipalities

Reference Sector content index

68

Maps Regional map

113

Municipalities

113

City of Port Elizabeth

119

City of East London

119

Municipalities in the Eastern Cape

LESOTHO Free State

Alfred Nzo Matatiele

Eastern Cape

127

Senqu

Maletswai

Northern Cape

Elundini

Joe Gqabi

Gariep

120-126

Eastern Cape towns index

KwaZuluNatal

Umzimvubu

Ntabankulu Mhlontlo

Inkwanca Tsolwana

Western Cape

Nyandeni

Emalahleni

Chris Hani

Inxuba Yethemba

Engcobo Intsika Yethu

Lukhanji

Camdeboo

Mbizana

OR Tambo Qaukeni

Sakhisizwe Port St Johns

King Sabata Dalindyebo Mbhashe

Mnquma Amahlathi

Nxuba

Index

128

ECDMA10

Blue Crane Route

Ikwezi

ECDMA10 Koukamma

Kouga

Nkonkobe

Great Kei

Buffalo City

Cacadu Baviaans

Amathole

Makana Sundays River Valley

Nelson Mandela Bay

Ngqushwa

Ndlambe

INDIAN OCEAN Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality Local Municipality

EASTERN CAPE BUSINESS 2016

6

Cacadu Nxuba


OVERVIEW

7

EASTERN CAPE BUSINESS 2016


MESSAGE

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

T

he 2016 edition of Eastern Cape Business is the ninth issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide to the Eastern Cape province. The Eastern Cape enjoys an abundance of natural and human resources, as well as established industrial infrastructure that drives the economy of the province. This includes three ports, covered extensively in a series of features and interviews in this issue, and two industrial development zones which are home to a wide range of manufacturers and exporters. The 2016 edition includes contributions from the Eastern Cape Development Corporation (ECDC), Mercedes-Benz South Africa, the regional head of Nedbank in the province, as well as an extensive interview with Reuben Zwane, the CEO of the Eastern Cape Gambling & Betting Board and the featured Eastern Cape Businessman of the Year. New for the 2016 edition is a comprehensive 10-page map guide to the province sponsored by Caltex Eastern Cape Marketer. To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), 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. Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

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, trade and investment agencies, provincial government departments, municipalities and companies.

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. CREDITS | Pictures supplied by flickr.com, Public Domain Images, Wikimedia Commons, Mediaclubsouthafrica, Morguefiles, skyscrapercity.com, freeimages.com, Rob Duker Photography and Pixabay. Maps on pages 118-127 supplied courtesy of Map Studio (www.mapstudio.co.za)

EASTERN CAPE BUSINESS 2016

8

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse Editor: Simon Lewis Writing: John Young, David Capel, Puseletso Nkopane, Shannon Manuel, Ralph Staniforth and Simon Lewis Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter and Sheeth Hanief Production: Linda Tom Regional manager: Veronica Dean-Boshoff Ad sales: Sydwell Adonis, Nigel Williams, Sam Oliver, Debra Bender, Gabriel Venter and Jeremy Petersen Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

PUBLISHED BY 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

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.


MESSAGE FOCUS

RENEWABLE ENERGY OPPORTUNITIES APLENTY IN THE EASTERN CAPE Are you looking for a location that possesses abundant renewable energy sources such as solar, wind, hydropower as well as a growing biofuels industry?

L

ook no further than the Eastern Cape Province which has been awarded 15 wind farms and one solar farm in four bidding rounds of the REI4P (Renewable Energy Independent Power Producer Procurement Programme). These farms represent a R32.7-billion investment value with installed capacity estimated at 1 480 megawatts. This is approximately 80% of Eastern Cape electricity demand. Seven of these facilities are already operational. Already, the Eastern Cape is host to Sub-Saharan Africa’s largest wind farm near Jeffreys Bay. The Eastern Cape Development Corporation (ECDC) invites private investors to partner with government to exploit the province’s potential to generate 5 000 megawatts of energy from these sources. ECDC is currently investigating partnerships to exploit investment opportunities available in this sector. The Eastern Cape is ready to provide concrete support to investors who make the province their destination of choice for high-impact, high-value renewable energy projects. The province’s support of the sector is also based on its development imperatives where it sees green industries as “the most promising emerging sector with significant linkages to the Eastern Cape automotive sector, rural development, agriculture and environmental management.” For example, the Eastern Cape’s original equipment manufacturers such as MercedesBenz South Africa and Volkswagen South Africa have Tier 1 and Tier 2 suppliers who have the technology to support the renewable energy industry. In addition, the Eastern Cape government is leading the development of policy instruments aimed at creating the right climate and platforms for the growth of this sector. To find out more about renewable energy investment opportunities in the Eastern Cape contact ECDC on tel +27 (0)43 704 5600 or email invest@ecdc.co.za

9

EASTERN CAPE BUSINESS 2016


A REGIONAL OVERVIEW OF THE

EASTERN CAPE Located on the south-eastern coast of Africa, the Eastern Cape province is fast coming to be seen as one of South Africa’s international assets. This status has been enhanced by the allocation to the province of two of South Africa’s five industrial development zones (IDZs).

T

he Eastern Cape economy is increasingly modern and export-oriented, with great potential for growth of existing industry and establishment of new industry.

Economic strengths One of the major contributors to the province’s GDP is the automotive industry, as the province is home to four of South Africa’s biggest automotive companies and several other large concerns in the automotive components and support sector. Financial services, real estate and banking also contribute substantially to the provincial economy, while the Coega IDZ is booming. This facility is enabling small, micro and medium enterprises to expand their value addition activities in the Eastern Cape. Prospective investors involved in the processing of coffee, cereals, protein and energy supplements have shown a keen interest in the facility. Agriculture is another major part of the Eastern Cape economy. Aside from being one of the

The potential offered by the province is significantly bolstered by the shipping traffic that operates between Europe and Asia and the Far East. Logistically, the Eastern Cape is well served with two major airports (Port Elizabeth and East London) and several facilities serving smaller towns such as Mthatha and Bhisho. Many farms and private game reserves also have airstrips. Another key logistics factor is the recent construction of the large new port at Ngqura, located within the Coega IDZ, bringing to three the number of effective ports operating in the Eastern Cape.

EASTERN CAPE BUSINESS 2016

10


SPECIAL FEATURE at Mqanduli and Ncorha, to the tune R45-million each. The hubs already have 1 500 and 900 tons of mealies in storage respectively. In the 2015/16 financial year, two additional hubs will be established at Ludeke in Mbizana and at Mt Arthur in Lady Frere.

Tourism According to Premier Phumulo Masualle, the province also intends to target the improvement of roads to tourism establishments in the province, prioritising the roads to Baviaanskloof, Hole-in-the-Wall, DwesaCwebe and Coffee Bay. The Eastern Cape offers a wide array of attractions, including 800km of untouched and pristine coastline, along with some particularly splendid beaches in a malaria-free environment. The Addo Elephant National Park is the largest out of the province’s four national parks, and currently ranks third in size after the Kruger National Park and the Kgalagadi Transfrontier Park. The province is also the location of South Africa’s only snow skiing resort, Tiffindell, which is situated near the small village of Rhodes in the Southern Drakensberg on the slopes of Ben Macdhui, the highest mountain peak in the Eastern Cape. The National Arts Festival, held annually in Grahamstown, is Africa’s largest and most colourful cultural event, offering a choice of the very best of both indigenous and imported talent. Every year for 11 days the town’s population almost doubles, as estimated more than 50,000 people across the world, flock to the region for a feast of arts, crafts and sheer entertainment.

world’s major sources of mohair, the province offers perfect farming conditions for a wide range of produce. The fertile Langkloof Valley in the southwest has enormous deciduous fruit orchards, the Alexandria and Grahamstown area produces pineapples, chicory and dairy products, while coffee and tea are cultivated at Magwa in Lusikisiki. The Eastern Cape Provincial Government has put a plan in place to ensure that there is an enhanced integration in the value chain in addition to linkages to the deep-water container Port of Ngqura to enable, for example, the handling of global exports such as frozen pineapples (produced in places like Ngqushwa) that are destined for the Japanese market. In another groundbreaking development since the establishment of the Eastern Cape Rural Development Agency, the province has launched two rural enterprise development hubs

Infrastructure Renewable-energy projects are flourishing throughout South Africa, but the Eastern Cape has many big projects planned. The transport of wind turbines from the Port of Ngqura to the Jeffreys Bay wind farm has been running successfully for two years and is set to become one of the largest wind farms in South Africa, with in excess of 60 turbines. Basil Read Matomo also began construction on a R550-million wind farm near

11

EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE Port Elizabeth in 2015, while the 27MW MetroWind Van Stadens wind farm transported their nine turbines to their facility from the Port of Ngqura. The implementation of the Strategic Integrated Projects in the province is progressing well. The upgrades of the Mthatha Airport runway and apron are complete, with work nearing completion on the Mthatha Airport terminal building. The Mzimvubu Multipurpose Development Project is another impressive development that is comprised of a multipurpose dam to supply water for new irrigation development, hydropower generation and domestic water requirements in the Mzimvubu River Catchment. The proclamation of the Wild Coast Special Economic Zone (SEZ) has been identified as a key focus area in the coming financial year, with a prefeasibility study for the Wild Coast SEZ being approved in 2015.

tan area of Buffalo City. Pineapple and forestry are two of the most important agricultural activities. Popular resorts on the Wild Coast attract many tourists to the area. Hogsback and other towns near the Amatole Mountains offer beautiful scenery and popular beaches. The main campus of the University of Fort Hare is located at Alice. Sarah Baartman District Municipality Towns: Graaff-Reinet, Humansdorp, Jeffreys Bay, Grahamstown The western part of the province contains the biggest municipality and is one of the biggest contributors to provincial GDP. 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. Grahamstown hosts the National Arts Festival, Rhodes University and a number of fine schools.

Investments in the Eastern Cape In the past five years the Eastern Cape has experienced local and international investment (actual and planned) of over R34-billion, and provincial government expenditure has increased substantially over the past five years, proving that the Eastern Cape is fast becoming an investment destination of choice for small, medium and large enterprises – both locally and internationally.

Chris Hani District Municipality Towns: Middelburg, Molteno, Dordrecht, Cradock, Queenstown, Lady Frere, Elliot Sheep farming is an important part of the economy. Some coal is found in the north and tourist activities 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.

Alfred Nzo District Municipality Towns: Matatiele, Mount Frere, Mount Ayliff The smallest district is located in the mountainous north-east, with hiking trails being an attraction for tourists. There is tremendous 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.

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

Amathole District Municipality Towns: Cathcart, Stutterheim, Morgan’s Bay, Dutwa, Willowvale, Butterworth, Mazeppa Bay, Hamburg, Alice, Bedford, Adelaide, Hogsback The Amathole District is mainly rural in nature with a geographical area that surrounds the metropoliEASTERN CAPE BUSINESS 2016

12


SPECIAL FEATURE concerns are among the biggest employers.

QUICK FACTS:

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. Skiing at Tiffindell is a major tourist attraction, and has been bought by a Johannesburg investor with a view to restoring it.

Capital: Bhisho Major cities: Port Elizabeth / Nelson Mandela Bay and East London / Buffalo City Languages: 78.8% isiXhosa, 10.6% Afrikaans, 5.6% English Population: 6.9 million Share of total South African population: 12.7% The province’s population of 6.9 million makes it the country’s third most populous province, with about 15% of the national population. Sources: Eastern Cape Development Corporation (www.ecdc.co.za), SouthAfrica.info (www.southafrica.info)

13

EASTERN CAPE BUSINESS 2016


INTERVIEW

Eastern Cape Gambling & Betting Board Reuben Mabutho Zwane, CEO of the Eastern Cape Gambling & Betting Board, leaves no stone unturned in driving responsible, legitimate and profitable gambling and gaming in the province.

Reuben Mabutho Zwane

BIOGRAPHY Reuben Mabutho Zwane has worked in the financial services industry for many years. He joined the Eastern Cape Gambling & Betting Board as an investigator in 2003. He soon rose to the position of Compliance Manager and, two years later, was promoted to Senior Compliance Manager. After that he was appointed as acting CEO and, three years later, CEO of the Board. EASTERN CAPE BUSINESS 2016

Your board has many years of unqualified audits to its credit. How important are these for the Board? Our board consistently achieves unqualified audits, to the extent that it has become part of our routine. There is nothing more fulfilling than last year when we received a clean audit because it meant that we had achieved our mission, which is to promote a socially responsible industry. However, this does not mean that we will sit back and rest on our laurels. What fills me with even greater pride is the fact that we are a trusted institution in the eyes of the public. We have proven that we are able to handle the large amounts of revenue that we collect every without any accusations of wrongdoing. Last year, for instance, we collected R140million in revenue, and these funds go straight into the provincial fiscus. One further point is that our clean audit result plays a role in guiding our ethics and decision-making and, consequently, we don’t have any problems in terms of irregular procurement. Your board has recently been honoured with a number of awards. That must be an incredible validation for your team? Yes, it most definitely is a wonderful affirmation for the work that we do. However, I would say that the greatest honour we have received was when the Black Management Forum (BMF) acknowledged us as the Board of the Year in recognition of our efforts in working towards socio-economic transformation as well as for our exemplary leadership in governance. The previous year the board also won an award for our CSI initiatives as we had adopted a school and set-up a computer lab for the learners. We have continued to support them with training and Wi-Fi for the last three years. We continue to offer our utmost assistance to further help the learners and educators at that school in any way that we can. You have achieved tremendous success in your career already, but how did you get to where you are today? My career started when I joined Metropolitan Life, where I worked as a clerk for eight months. From there I joined an accounting firm as a trainee accountant. Personally I feel that I started to carve out my business niche when I began my articles with the firm of Ernst & Young. When I look

14


INTERVIEW FOCUS

back on my career, the time I spent with them was definitely the greatest influence on my development. I left Ernst & Young to work as a Financial Manager at KwaZulu-Natal Wildlife (Hilltop Camp) and, after that, I joined the Eastern Cape Gambling & Betting Board in 2003, and I’ve been extremely happy working for the Board. I joined the Board initially to work as an investigator, but after six months I was promoted to Compliance Manager. Two years later I was promoted to Senior Compliance Manager and, thereafter, I was honoured to accept my first appointment as CEO. This appointment was in an acting capacity, but after three years of serving in that capacity I was confirmed as the CEO, and I have been in that role ever since. What did your work as an Investigator entail? Due to the nature of what the Board does, I was involved in numerous aspects of their operations. We license gaming in general as well as gambling, which encompasses casinos, bookmakers and bingo licenses. When a company or individual applies for a gaming license we conduct a probity investigation that looks at the character of the individual that is applying for the license. Our investigation covers the full spectrum of background and personal checks, including whether the individual is a citizen of good standing and if they pay their taxes. Once a license has been approved then the investigation and auditing process ensures that the province will receive its dues in terms of applicable taxes and levies from all licenses, which are paid to the Board. Facilitating that process was the role that I played initially and, without doubt, my background in accounting proved to be immensely beneficial to me. What is the state of the gambling industry in the Eastern Cape? The Eastern Cape encompasses four categories of gaming and gambling. As a Province we’ve been allocated five Casino licenses, four of which are up and running. There is only one casino that has yet to be licensed. We currently have four casinos in the province, one each in Port Elizabeth,

15

East London, Queenstown and Mzamba Wild Coast. We also recently received an application from the King Sabata Dalindyebo Municipality in Mthatha, which would be the last casino license we would be able to grant. We’re currently busy issuing licences for limited payout machines (LPMs), which are installed at pubs, restaurants and similar establishments. We’ve issued two licenses to date to two operators, each for 1 000 machines, and one of the operators has already finished their rollout. We are now busy with the second applicant and we anticipate that, by the end of this year, they will also have finished their rollout. After examining what other provinces had started to do two years ago – in particular Gauteng and Mpumalanga – we realised that there was an opportunity to grow our revenue base as a province. As the Eastern Cape is a rural province it does limit the growth potential of larger-scale gambling and gaming. However, from studying the industry in other provinces we realised that there was a gap in the market in terms of bingo licensing. Once we had formalised our proposal we presented it to the Board and, after due consideration, we received their permission to roll-out bingo throughout the province. I am pleased to report that bingo licensing has now proved to be a great success story. According to our 2014/15 figures, we surpassed our budget by about R18-million, primarily due to the bingo licenses that we granted. In comparison, the EASTERN CAPE BUSINESS 2016


INTERVIEW other provinces have not enjoyed anywhere near the same level of success as we have with our bingo licences, so it is clearly a niche that works well with our rural population. I believe that our success is down to the fact that we commissioned comprehensive research to initially determine whether or not the market was conducive for such licenses and, following that, we meticulously researched whether or not the numbers we could roll out in terms of licenses would be more financially viable for operators. Currently there’s no national province as well as the provincial fiscus, because then they will have a framework that limits the num- clearer picture of the numbers that they will want us to roll out in order ber of bingo licenses per province, to continue that growth trajectory. However, it also means that we must unlike casinos where the Eastern find ways of ensuring that we continue to grow the revenue base in the Cape has a limit of five, or for gam- years that lie ahead of us as an organisation. ing machines where there is a limit of 6 000 LPMs. However, since What other licences does the board oversee? there’s no national framework Another component that we’re licensing is horseracing. Horseracing in place to regulate the number isn’t experiencing as much activity as it did a number of years ago, as bingo licenses we had to come up previously people considered the races to be more of a prestigious event with our own method, a scientific to attend. That’s no longer the case, as people today prefer to either way of determining the allocation. watch a racing event in the comfort of their living room and can place The research we commissioned their bets online, or watch with a crowd of people at a hotel, restaurant confirmed that there was indeed or bar, where they choose to place their bet through an operator at a market. Our challenge then was that location. Although horseracing may be in decline, we have also to decide on a figure of how many seen a new area of growth in the industry through the rise of interest to roll out. In response to this we in sports betting. For example, a bookmaker license offers the public developed a policy that came up the opportunity to bet on any contingency during a match and, as a with an allocation of 15 licences for result, people are starting to bet more on sport than they used to on the Province. the horses. If you look at the industry players and where their income We have since awarded all 15 base is, you’ll find that most of the money is now coming from sports licenses, with 12 operational to betting rather than from horse racing. date, hence the positive revenue It is indeed heartening to say that we are consistently performing as figures that are being generated. number four in the country in terms of tax revenues generated, behind With the remaining nine licenses Gauteng, KwaZulu-Natal and the Western Cape. Besides generating revin the process of being rolled-out. enue for the province, we are also committed to Responsible Gambling It’s exciting to think what the fi- and have committed ourselves to helping society to balance the effects nal figure might eventually rise to. of gambling. To this end we allocate a substantial amount of funds that That being the case, I think it of- we spend across various media platforms in order to effectively share fers us a challenge in terms of the our Responsible Gambling campaigns. EASTERN CAPE BUSINESS 2016

16


INTERVIEW FOCUS Does effective regulation help the industry to grow? tially, we could generate another Without doubt regulation does play a key role and, with this in mind, R10-million a month from what we’re spending more time and money educating the public about will be an entirely new market. gambling. The message we’re trying to convey is that gambling can be That could provide R1 million fun but, equally, too much gambling can have negative consequences if direct growth on the current R2.3 the operator does not conduct their business in a proper and responsible million tax that is directed to the manner. That’s the message we’re spreading to economically active fiscus, so we’ve already identified members of the public who have disposable income. Every citizen de- that as an avenue for growth going serves the opportunity to take their R20 and either gamble or instead go forward. As far as the bookmaking to a movie. It all depends on the type of entertainment each individual industry is concerned, while there is seeking. It is absolutely essential that gambling or gaming must be isn’t much growth in terms of the enjoyed in a legal establishment because only then can customers horseracing component, people have the confidence that they will be protected. We frequently receive are increasingly beginning to complaints from members of the public who have won money while gamble on sports, which is why gambling online but then weren’t able to get access to their winnings. we have identified this as a potenOur message is, first and foremost, that we cannot assist the public in tial room for growth. However, we such circumstances because gambling on the internet is illegal. The fact are also extremely mindful not to of the matter is that we cannot assist members of the public in such flood the market with gaming situations because the gambling they were engaging in is illegal. On the establishments, which is why we other hand, if you are gambling in a legal establishment that is correctly are pursuing a responsible and licensed then you will have legal recourse and the board will be willing sustainable growth path. and able to assist with the complaint. What are the issues that the What excites you about the province’s potential future growth Board is facing? opportunities? One of the issues we are battling So far we have identified three areas and what has been a tremendous with is the fact that there isn’t a help has been the fact that we’ve got room to grow in the limited payout national framework for our indusmachines (LPM) market. We’ve recently completed a study to determine try. This sends a confusing meswhether the market can accommodate the additional machines, and the sage to the industry, as well as to study confirms that the market can indeed accommodate such growth. those operators who have already As such, the Board will have to consider whether to expand the addi- invested in the industry. There isn’t, tional LPM market. To put this into context, the two operators who are for example, a national framework on bidding. Some of the provinces have already rolled-out their own policy without a national framework, and there are currently policy proposals that have been put forward that we are engaging on. The National Gambling Policy Council plays a pivotal role when it comes to policy issues and discussions on a national framework, as it was formed by representatives from currently licensed for the 2 000 machines between them currently gener- the minister, provincial MECs ate R23-million a month and, from that, we derive 10% tax for the prov- and chairpersons of the board. ince. If you add 1 000 machines over the next three years then, poten- I think the biggest challenge is

WE MAY BE A VERY RURAL PROVINCE, BUT WE ARE NOW, AFTER GAUTENG, THE SECOND FASTEST GROWING INDUSTRY IN THE COUNTRY!

17

EASTERN CAPE BUSINESS 2016


INTERVIEW online gambling. Currently inter- Would the Eastern Cape be able to serve an international net gambling is outlawed, but gambling market? the legislation provides that we Theoretically we most certainly would be able to earn foreign revenue could in fact license interactive from online gambling. However, because internet gambling is currently gambling. So long as this aspect illegal in South Africa, the industry continues to lose out on the possibility of gambling is not being licensed of drawing in this revenue. In global terms there is no jurisdiction in place then we are currently losing a lot governing gambling over the internet, aside from general regulations of money in taxes. After all, peo- that exist in terms of the actual bookmaking platform. ple like the internet and they are not about to stop going online to gamble. In my opinion, the correct way to deal with the popularity of internet gambling is to regulate the industry. However, in regulating or licensing internet gambling there is also a fear that it may reduce the revenue for investors that have already committed their money to casinos if people started to gamble increasingly from home and spending less time and money in a casino. An Do you believe that internet gambling should be allowed? additional concern would be the In my own personal view, and speaking with more than 14 years of potential loss of jobs and casino experience in the industry, I believe we should definitely be considering income. licensing online gambling.

PEOPLE WHO WOULD NOT OTHERWISE HAVE MONEY OR CAPITAL TO INVEST IN A CASINO CAN AT LEAST, IN A SMALL WAY, PARTAKE IN THE GAMBLING INDUSTRY

EASTERN CAPE BUSINESS 2016

18


INTERVIEW FOCUS How has the spread of bingo and LPMs helped to empower the local community? There has certainly been transformation within these two categories and we have succeeded in bringing previously disadvantaged individuals into the mainstream economy through our Request for Proposals (RFPs). For instance, we’ve stipulated that in order for an individual to be granted a license their company must have at least 40% of local black ownership and that their ownership should include effective management control. Operators licensed for 1 000 limited payout machines need to ensure that the individual bars and restaurants where they place those machines also require a certain level of black ownership, so this is proving to be a really effective way of starting to transform the industry. In this way, people who would not otherwise have capital to invest in a casino can at least partake in the gambling industry, even if only in a small way. Is there good coaching groundwork in place to assist SMMEs and self-employed individuals working in the industry? We certainly do place a large emphasis on training and, as a result, if you are bringing in partners that were not involved in such structured business before then there must be a structured business training program for them, so we will assist by monitoring their progress for the duration of their license. If an operator has a 15-year license they must provide a training plan for their staff as well as for their directors in order to ensure that they gain an effective understanding of how to operate at a director level, in addition to gaining an understanding of the responsibilities of a director. This training therefore becomes not just about empowering them in respect of where they are in their careers, but also ensuring they have the skills that will enable to to venture out into other businesses as well. I believe this is so critical in order to bring about effective and sustainable change in the Eastern Cape. Are there any other interesting industry developments in the province? We do our best to facilitate the operations of licensees and the industry in general. For instance, you can see

19

THE ECGBB LOOKS AT PROBLEM GAMBLING FROM A RESEARCH PERSPECTIVE After findings and recommendations from a research study on the Prevalence of Gambling amongst Civil Servants commissioned by the Eastern Cape Gambling and Betting Board (ECGBB) in 2013/14, the ECGBB hosted a research seminar on 8 October 2015 in East London, at the Regent hotel, to share their report with various stakeholders. This study was conducted during the 2013/14 financial year and involved a sample of 13 provincial departments across the Eastern Cape Province. This was after an assumption that government employees were or are a “growing breed” within the gambling sector. This notion was based on the fact that government employees make a significant portion of the workforce in the province. Meaning they may be freely accessing the gambling sites to spend more time, either gambling or enjoying the space as gambling is a sub-sector of tourism and entertainment. According to Statistic findings from Statistics SA 2012, 80% of the workforce in the province is comprised of public servants. This means government employees have a disposable income for entertainment as well as gambling and as such they could potentially be vulnerable to excessive and irresponsible gambling behaviour. This further anchored the ECGBB’s assumption. The Prevalence of Gambling amongst Civil Servants findings portray some fundamental challenges that the ECGBB and the Provincial Government Administration have to address. “In working towards the recommendations of this study this seminar will pave way for the recommendations to be made. So that the ECGBB can ensure that its mandate not only ends with ensuring compliance to the rules and regulations, but to ensure that the public is aware of issues underlying problem gambling,” said Luvuyo Tshoko, Manager: Strategic Management Services at the ECGBB.

EASTERN CAPE BUSINESS 2016


INTERVIEW where the licensed gambling establishments are just by visiting our website and clicking on a link that will take you to a list of licensed venues. Another innovation we’ve introduced relates to easing the licensing application process. In the past the process that was required for applicants to complete a 52-page personal history disclosure form that required supplying information about your great-grandfather, for instance. We are trying to simplify the process and are in the process of developing an electronic system that can be completed online and, as a board, we’ve stated that our objective is that we want to go to a paperless environment within the next five years.

The Eastern Cape Gambling and Betting Board Established by section 3 of the Gambling and Betting Act, 1997 (Act No. 5 of 1997) (EASTERN CAPE) (as amended) (“the Act”) which was brought into operation by various Proclamations, the initial Proclamation being Proclamation No. 5 of 1997 of 9 July 1997. Mandate The objective of the Board is to oversee all gambling and betting activities in the Province and matters incidental thereto, contemplated in the Act and to advise the Member of the Executive Council of the Province for Economic Affairs with regard to gambling matters and to exercise certain further powers contemplated in the Act. Functions The most important functions of the Board are the licensing of the legal gambling industry, the regulation of licence holders, the collection of gambling taxes on behalf of the Province and taking steps to ensure the abolition of unlicensed gambling. In this regard, the Board undertakes licensing investigations and may issue and revoke licences and determine the conditions which apply to any licence. It is the responsibility of the Board to ensure that an accountable and credible legal gambling industry exists in the Province and that internationally recognised standards in the industry are complied with. Composition of the Board of Directors The Board consists of EIGHT members: A legal practitioner of at least five year’s standing; A chartered accountant of at least five year’s standing; An individual who has knowledge and involvement in the tourism industry; A person who has knowledge and experience in the field of welfare or community or socio-economic development; One member to represent the Department of Safety & Security in the Provincial Government; One member to represent the Department of Economic Affairs in the Provincial Government; One member to represent the Department of Finance in the Provincial Government; A person to represent the community in general.

EASTERN CAPE BUSINESS 2016

Is there a lot of infrastructure that operators need to put in place? We still need to invest in infrastructure as a board in order to assist our operators. We’ve already made provision for that because we realise that this need exists, but with the budget constraints we’re facing throughout the country we cannot achieve these infrastructure developments all at once. We need to structure it over a period, but we will eventually get there, hence we’ve given ourselves a five-year strategy to achieve that. In terms of the gambling industry and tourism, what impact does gambling have on the tourism industry, and do you see scope for further growth? It depends on which sector you’re speaking about. In the casino space the RFP that we would have issued has, for example, a strong focus on tourism. If you’re in Zone 4 in Mthatha and you could have a casino, but we would require that your casino must be able to attract people to the surrounding themed resorts. What better way than to have a casino in that same zone, for instance, where Nelson Mandela comes from. However, gambling on its own generally tends to have an impact on local economic development as well because it forms part of a tourist attraction. If you’re setting up even a smaller establishment of 40 LPMs it should still be a venue that people can look forward to visiting smaller towns for where previously there was no gaming. The operator would bring in entertainment and create a tourism feel to their establishment so that people can look forward to visiting it.

20


INTERVIEW FOCUS

Do you personally enjoy spending time gambling or gaming? No employee of the ECGBB is allowed to partake in gambling, betting or gaming in the province, although they are allowed to gamble in other provinces or in other countries. As CEO of the Board I am also not permitted to gamble in the Eastern Cape. In general I don’t gamble, but on my travels I might put a dollar into a machine and hope to win a million, especially when I am visiting a city such as Las Vegas. What has inspired you about how the industry is run overseas? When you look at a city such as Las Vegas it’s hard not to be amazed by what they have created there. Their infrastructure and facilities are incredible, but I think it’s too late to apply that in the South Africa context. In Las Vegas they’ve got destination resorts where you will have a street full of casinos, but I think such a development will not take place here. The USA simply has such a huge population and a rich culture of going to Vegas as a holiday, and that has been created over the course of half a century. However, in our own RFPs we have taken the Vegas model and applied it where we can to our own environment. For instance, we are encouraging operators not to just setup a dome of casino slots but, rather, to create an integrated resort where you’ve got entertainment facilities, a hotel and eating areas. What happens in Vegas will stay in Vegas, as they say, and while we can’t rival their industry, we’ve found a way of incorporating a component of that in our own RFPs in addition to what we call for from individuals who are applying for operator licenses. What lessons or inspiration did you draw from the 2015 Gambling Indaba? There is still a disjuncture between the regulators and the industry, but I believe that this just calls for more engagements going forward. That was the sense I got from the people I met at the Gambling Indaba – while we may want the same thing, ultimately we probably won’t get there in the same fashion, so I think that’s how the disjuncture occurs. The industry

21

will want to push for things to happen quicker, but we’re advocating caution against following such a rapid approach. In order to roll things out effectively we may not be that quick because, after all, it also takes time to change our own laws. I think one of the challenges that we are facing as regulators is that the industry is so advanced and we are falling behind in terms of the technological advancements in the industry. That’s what we tend to struggle with in the industry in general. Whilst we understand all the proposals that we get from various stakeholders and how those proposals could benefit the industry as a whole, our own regulations are still far behind. We first need to amend our regulations before we can meet our stakeholders halfway. Unfortunately, in as much as we try to meet our stakeholders halfway, we are always catching up, because trends and ideas will always be way ahead of regulations. However, it is only through strong controls and good regulatory practices that an industry can become strong and grow, and we’re proud to play our part in this respect.

CONTACT INFO Physical address: Quenera Park, Quenera Drive, Beacon Bay, East London Post address: PO Box 15355, Beacon Bay, East London Tel: 043 702 8300 Fax: 043 748 2218 www.ecgbb.co.za

EASTERN CAPE BUSINESS 2016


INTERVIEW

Caltex in the Eastern Cape Patrick Kelly, Chief Operations Officer with Caltex Eastern Cape Marketer, provides some background to the company’s operations in the Eastern Cape.

Patrick Kelly

BIOGRAPHY Patrick Kelly is Chief Operating Officer of CECM and a Director of CECM and Uzuko Carriers. He oversees all CECM operations, including new business development, sales and marketing, logistics, finance, and outsourced functions such as maintenance and transport. He was instrumental in developing systems for CECM that have since been adopted by other Caltex Branded Marketers. He was part of the founding group of CECM and is now the longest-serving staff member of the team. EASTERN CAPE BUSINESS 2016

What is the history behind the Caltex Eastern Cape Marketer? Caltex Eastern Cape Marketer (CECM) is the largest Caltex master franchisor in the Africa, Middle East and Pakistan region. A 100% Eastern Cape-owned company, CECM pioneered the Caltex branded marketer* model in South Africa, starting with 34 sites and a R10-million investment in 2005. The company has almost trebled in size in its first decade of operation, becoming a major employer and investor in the Eastern Cape by 2015, with close to 100 sites and investment of over R300-million in new sites and ongoing refurbishment of existing sites. CECM owns the rights to all Caltex sites in the Eastern Cape, where it has captured the second-biggest share of the provincial fuel retail market, and controls more than 12% of the brand’s national retail network. The company has headquarters in East London and a regional office in Port Elizabeth. CECM was named Chevron South Africa’s Top Branded Marketer for 2014, recognising its solid growth in difficult market conditions, as well as its contribution to customer value, innovation and building the Caltex brand. Are there any new projects/ partnerships that you are currently involved in? CECM drives an ongoing investment programme – acquisition of new sites, refurbishments to existing sites, fuel logistics and supply chain security, accessibility and customer-focused services. The company invested more than R70-million in site upgrades in 2015, and has a full pipeline of new projects planned in the retail fuel industry in the Eastern Cape for 2016 and onwards, with eight new sites set to launch by mid-2016. Systems and programmes pioneered in the Eastern Cape by CECM have been adopted as best practice in the Caltex branded marketer model in Southern Africa. These include business software developed and piloted by CECM together with a software company run by a Caltex retailer in Barkly East, which has since been implemented by a number of Caltex Branded Marketers in other provinces. Proving pivotal to the running of the business, the software manages stock levels, ordering and delivery schedules, and enables information-sharing across the retail network. In a joint venture with listed company Cargo Carriers (Pty) Ltd, CECM is a 50% shareholder in Uzuko Carriers which transports fuel to 95% of the CECM retail network, ensuring reliability and continuity of supply. As part of a national Chevron initiative, CECM has placed 21 FreshStop convenience stores on Caltex forecourts in the Eastern Cape, in partnership with Food Lovers’ Market, accounting for 10% of stores nationally.

22


INTERVIEW FOCUS Can you elaborate on Caltex’s commitment to the Eastern Cape and the well-being and upliftment of its communities? CECM retains more than 95% of its non-fuel expenditure in the Eastern Cape, and gives back to the local community through its corporate social investment programme focused on supporting education and sport in the province. The CECM philosophy is to develop people who will become future leaders; and to support projects that help to produce well-rounded people who will make a contribution to the local economy. CECM supports school sports teams and high profile popular sports events across the Eastern Cape. The company also assists with fuel to support pupils and a teacher from a Cape Town school that travels in the school holidays every year to assist matric learners at Qolora Education Centre and Isolomzi High School with maths tuition. CECM supports cultural initiatives in some smaller Eastern Cape towns, where these events contribute significantly to the economy of the town. These include the Bedford Garden Festival and the Caltex Kambi Easter Tournament in Mthatha. CECM has made a commitment to the wellbeing and development of the more than 2 000 forecourt staff employed under the Caltex banner in the Eastern Cape. Incentives, training, a dedicated quarterly publication and awards for top performers all support the development of customer service attendants at Caltex stations. What is the latest industry news related to Caltex Eastern Cape? Caltex Eastern Cape Marketer has shown consistent growth in sites and product volumes, and plans to continue this growth path by continuing to

23

invest in infrastructure, safety and customer service. CECM is committed to investing in the Eastern Cape economy by supporting local suppliers and developing the skills of local people. The CECM formula for success is providing on-the-ground support to each retailer in its network, with personal attention from experienced managers who understand local trading conditions and are able to deliver quick decisions. The growth of the brand in the Eastern Cape will continue to be driven by supporting retailers in growing their businesses and developing relationships with their local communities. * A Caltex branded marketer is the custodian of the Caltex brand (owned by Chevron SA) in its territory, responsible for supplying fuel and related products to the Caltex dealers in its region and supporting them with training, quality assurance, business acumen, marketing, and compliance.

EASTERN CAPE BUSINESS 2016


PROFILE

Nelson Mandela Bay Business Chamber The Nelson Mandela Bay Business Chamber is a Section 21 (Not for Gain) business association representative of a broad spectrum of businesses in Nelson Mandela Bay.

T

he Nelson Mandela Bay Business Chamber is one of the largest business associations in the Eastern Cape, with a membership of over 800 businesses in a diverse array of sectors. In 2014, the Nelson Mandela Bay Business Chamber celebrated 150 years of serving business in the Bay, since 1864.

arm – the teams initiate and facilitate key economic change in the region. The task teams are run by dedicated volunteers, and offer an effective platform where business leaders can interact with one another and with critical role-players in local government, parastatals, NGOs and other organisations, to address issues that are critical to the economic growth and development of Nelson Mandela Bay. The four task teams of the Nelson Mandela Bay Business Chamber include the Strategic Resources Forum, Sustainability and Renewable Energy Task Team, Transport and Logistics Task Team as well as the SMME Task Team.

Vision and Purpose To be a leading catalyst for economic development in Nelson Mandela Bay and to drive business success. Task Teams The Task Teams of the Nelson Mandela Bay Business Chamber are the organisation’s action

HAT-TRICK: The Nelson Mandela Bay Business Chamber staff celebrated receiving three PMR.africa Diamond Arrow Awards in a row in 2013, 2014 and 2015. EASTERN CAPE BUSINESS 2016

24


PROFILE Events Events at the Nelson Mandela Bay Business Chamber provide value-added services to our members and keep business owners up to date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. The Chamber hosts many high-profile speakers who are experts in their fields, ensuring that our events are relevant and valuable. Regular networking functions offer business owners the chance to make new professional contacts. Our flagship events – the Annual Business Chamber Golf Day, the Annual Ladies’ Breakfast and the Annual Business Chamber Banquet – are highlights on the Bay’s business and social calendar.

Business Chamber regularly updates its website, and can be found on popular social media platforms including Facebook, Twitter, LinkedIn and Instagram. As a special legacy project the Nelson Mandela Bay Business Chamber Coffee Table Book was also produced in 2015 – as a keepsake that celebrates the city’s unique business culture. The visually driven photo book formed part of the Business Chamber’s 150th year celebratory campaign. Enterprise Development The Nelson Mandela Bay Business Chamber Enterprise Development Programme offers local small business owners with an effective combination of mentorship and skills development aimed at growing small business, enhancing their eligibility for funding, assisting them with export-readiness, giving insights into new markets, and increasing their job creation potential. The second phase of the programme was launched in July 2015.

Publications and Marketing platforms 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. The Business Chamber News electronic newsletter covers news about the Business Chamber itself, while the electronic The Good News provides links to good news on the local business front. The

Certificates of Origin and International Desk A Certificate of Origin is a document which states the origin of goods being exported and this ‘origin’ is a key requirement for applying tariff and other important criteria. As an accredited provider of this service, the Nelson Mandela Bay Business Chamber signs Certificates of Origin for member and nonmember businesses requiring the services in Nelson Mandela Bay. The Chamber is also host to an International Relations Desk, which forms a vital support to local business owners looking to make an impact on the international markets. Local companies are reaping the benefit of relationships built through the International Relations Desk, particularly in unlocking the potential of our twin city relations in Ningbo, China, and Gothenburg, Sweden.

CONTACT INFO Physical address: KPMG House, 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

Nelson Mandela Bay Business Chamber CEO Kevin Hustler

25

EASTERN CAPE BUSINESS 2016


PROFILE

Border-Kei Chamber of Business Border-Kei Chamber of Business provides key services to over 700 member organisations, and aims to be the ‘voice of business’ in the area. Value proposition To be the ‘voice of business’ promoting an environment for growth and sustainability through maintaining strong, proactive relations with both internal and external stakeholders, including provincial and local government, member companies, other business organisations and organised labour. Geographic areas of operation Border-Kei Chamber of Business (BKCOB) has offices in East London and Queenstown which serve the greater Border-Kei region.

• Trade & Information desk – Assists members with all their exporting and importing needs.

• Investbuffalocity.com – A collaborative initiative

Services and benefits to members BKCOB offers the following key services to member companies: • Member listing – After joining, members receive the member listing as part of their package. • Border-Kei Chamber of Business Membership Certificate – Members receive a personalised membership certificate at a new members’ induction and networking event. • New members’ induction and networking functions – The chamber holds six new members’ induction and networking functions annually, and these provide a valuable informal but structured opportunity to meet a broad range of businesspeople. • Letters of support – The chamber gladly provides letters of support to members trying to access government tenders, and letters of introduction to chambers in other centres for members attempting to expand their business footprint, whether provincially, nationally or globally. • Business Hi-Lite Magazine – This glossy B2B magazine is distributed monthly free-of-charge to all members, and keeps them in touch with chamber activities and developments in the area. EASTERN CAPE BUSINESS 2016

26

where members can find various economic information on Buffalo City. It provides a platform to attract international investors, as well as provide exposure for local companies. Committees – The chamber has a robust and effective committee system to facilitate members’ participation, and to enable the chamber to fulfil its role as the ‘voice of business’.

Turnover BKCOB represents over 700 member organisations that generate an estimated annual turnover of R69-billion, and that employ some 52 000 people who earn an estimated annual income of R18-billion in total.

KEY CONTACTS Les Holbrook, Executive Director Tish Holbrook, Head: Trade and Information Drayton Brown, Head: Communications Tel: +27 43 743 8438 Fax: +27 43 748 1507 Email: info@bkcob.co.za or communications@bkcob.co.za Physical address: Chamber House, The Hub, Beacon Bay, Bonza Bay Road, East London 5241 Postal address: Postnet Suite 36, Private Bag X3, Beacon Bay 5205 Website: www.bkcob.co.za Please contact Alana Velida or Tish Holbrook on members@bkcob.co.za or 043 743 8438 to join.


INTERVIEW FOCUS

Promoting business in the region Les Holbrook, Executive Director of the Border-Kei Chamber of Business (BKCOB), highlights the reasons that investors should look no further than the Eastern Cape. What are some of the Chamber’s highlights for the past year? We keep the priorities on the agenda – and key issues such as the port expansion, revitalisation of Latimer’s Landing and refurbishment of the old Buffalo Bridge are just a few. Some more important issues are pressing local authorities to step up programmes for key infrastructure and maintenance. We have initiated a working group for education – focusing on teacher support and technical subjects. Undertaking a pilot project with Merrifield School has been hugely exciting and has been attracting interest from a range of stakeholders. Lastly, a focus area for the chamber recently has been on corporate social responsibility and investment, and how serious contributors can not only make a difference but how they can benefit best from their own contribution. In your view, what are the most compelling reasons for an international businessperson to invest in the Eastern Cape? We still have a superb quality of life. Lifestyle amounts to a very important factor. Great schools and medical facilities rank very high in choosing an investment destination. We still claim to be the 10-minute city, and despite lots of contrary claims, our lower crime rate, our labour force and our business environment is the best in the country. We also have the East London Industrial Development Zone with a world-class Science and Technology Park. What do you regard as the biggest obstacle or challenge that regional businesses face at present? Every single citizen agrees we need a vibrant and strong economy with growth of 4% at least. Although we still have a great business environment – the ability of both the public sector and civil society to embrace business and understand and accept how important business is remains a challenge. Political instability continues to plague most sectors of our society, and one wishes that we could leave politics to the politicians. Also, if society would be more focused on their responsibilities, we would have a more accountable society.

27

Les Holbrook

BIOGRAPHY Les Holbrook has a National Technical Certificate as well as a Certificate in Management from Rhodes University. Prior to his appointment as the Executive Director of the Border-Kei Chamber of Business, he was the Deputy General Manager of Beier Industries of Transkei and Executive Director of the Transkei Chamber of Industries. EASTERN CAPE BUSINESS 2016


OVERVIEW

Flourishing people in a thriving province Vison 2030: A provincial plan rooted in the NDP

A

vision was created of a prosperous country with no poverty or inequality with the introduction of the National Development Plan (NDP) in 2011. According to the NDP, South Africa has the means, the goodwill, the people and the resources to achieve this goal. Eastern Cape Premier, Phumulo Masualle, says that the people of the Eastern Cape share this vision. In his introduction statement of the Eastern Cape Vision 2030 Provincial Development Plan (PDP), entitled Flourishing People in a Thriving Province, Masualle recalls that, in 2014 the Executive Council of the Eastern Cape Provincial Government appointed the Eastern Cape Planning Commission (ECPC) to facilitate a participatory exercise of defining what the NDP should mean for the province. This definition has been used to inform the Eastern Cape’s Provincial Development Plan (PDP), aiming to provide creative responses to the province’s challenges. A sustainable future for the Eastern Cape rests on people-centred development to achieve five related goals: • Achieving a growing, inclusive and equitable economy: Vision for 2030 – The Eastern Cape has a growing, inclusive and equitable economy, which is larger and more efficient, and optimally exploits the competitive advantages of the province, increases employment, and reduces inequalities of income and wealth. This vision will be realised addressing the key constraints to unlocking economic potential. • Creating an educated, empowered and innovative citizenry: Vision for 2030 – Knowledgeable Eastern Cape citizens who live in healthy and industrious communities, are empowered to do meaningful EASTERN CAPE BUSINESS 2016

28

work and contribute to a just society and economy, and constructively participate in the politics and the democratic governance of their communities, the province and the nation at large. This vision will be realised through education and training, innovation and human development. Building a healthy population: Vision for 2030 – The people of the Eastern Cape live long and healthy lives, with a life expectancy of 70 years and an AIDS-free under-20 generation. This will be achieved through a health system that provides quality healthcare to people. Creating vibrant, equitably enabled communities: Vision for 2030 – Eastern Cape citizens live in active, vibrant, well-serviced and connected communities, in which people respect each other and can exercise


SPECIAL FEATURE underdeveloped, with an urban economy that is unduly stressed and experiencing slow growth. Addressing this spatial unevenness in endowment and development will take time and hard work, but it can be done,” Masualle says. The PDP’s design and implementation will also endeavour to shift discriminatory attitudes towards women and other vulnerable sectors of society.

The four catalytic flagships To realise the plan’s development goals, the province has identified four catalytic flagships that will establish a sound foundation for other developments to flourish. “These catalytic initiatives cut across sectors and integrate the efforts of many role-players,” adds Masualle.

freedom of choice. The province is spatially connected and there is less disparity between the province’s regions. This vision will be realised through spatial planning; developing sustainable human settlements; developing, maintaining and localising infrastructure; and actively preventing crimes in communities. Creating capable, conscientious and accountable institutions: Vision for 2030 – The province has capable, conscientious and accountable institutions that are primarily engaged in sustainable partnerships for provincial development with social actors and the broader citizenry.

“These goals will be pursued with a focus on rural development to address serious inherited structural deficiencies - the legacy of apartheid has left the rural regions of the Eastern Cape

1. Ilima Labantu According to the PDP, Ilima Labantu, the first catalytic flagship, is an agricultural development initiative that aims to revive the rural economy and encourage other areas of development in the province. The Eastern Cape is endowed with significant natural resources that can be used to help address its food security needs, expand its capacity to provide jobs, raise income levels and trigger development in allied industries and other sectors. Ilima Labantu aims to mobilise communities and a range of departments and entities across government to act in a focused, integrated and co-ordinated manner. “Ilima Labantu, while predominantly focused on reviving and growing the rural economy, should also foster a different pattern of mutually beneficial relationships between rural and urban regions, while connecting the Eastern Cape to broader national and international economies,” according to the Premier. 2. Ematholeni! Ematholeni! (meaning children first) aims to give all children a quality start to development and learning, providing a solid foundation for a future of equal opportunity. This foundation begins from the level of early childhood development (ECD). Ematholeni! will ensure that the Eastern Cape increases its focus on this level of development. The catalytic flagship initiative also aims to build systemic continuity from ECD through to the foundation and intermediate phases of primary schooling. It will mobilise and develop the capabilities of communities to support the development and learning of their children. All contributing departments and public entities, institutions and communities across the province will work to ensure that all children in ECD get the basic nutrition they need for healthy growth and that they receive the appropriate stimulation and foundations for learning at home, in ECD centres in addition to during the early grades of schooling.

29

EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE 3. Infrastructure The third catalytic flagship focuses on the provision and maintenance of infrastructure for spatially equitable social and economic development. This includes social infrastructure and economic infrastructure. Infrastructure development should be a concern for all development partners. The initiative will encourage: • The private sector to expand its investment in infrastructure; • R&D institutions to come up with innovations around appropriate technology, materials and design; • Communities to build, maintain and sustain key infrastructure. 4. Building human and institutional capabilities for local development action The fourth catalytic flagship, in keeping with the NDP’s goals and the Back-to-Basics campaign, aims to build human and institutional capabilities for inclusive and meaningful local development action. This includes building and consolidating a capable state with strong local government and sub-entities; accountable sub-regional agents of national and provincial departments; skilled leaders and functionaries of non-governmental organisations and citizen associations; and capable and responsible citizens. “Developed collaboratively with citizens, organisations and institutions within and outside of the Eastern Cape, the PDP is a plan for all of the province’s people - government, citizens, civil society organisations and the private sector. It is a living plan that will only find meaning if all role-players are committed to its implementation. The plan will be subject to ongoing monitoring and evaluation involving key stakeholders, which will inform any necessary changes going forward. The PDP frames a social compact against which we will hold each other accountable. Through this plan, we are cementing our commitment to a brighter future for the province of the Eastern Cape. It is a future that cannot become a reality without the participation of all; without careful listening and learning, action, reflection and respect,” according to the PDP.

Reclaiming human dignity Reflecting on the past, the PDP states that the year 1994 marked the beginning of a journey towards reclaiming human dignity for all in South Africa. The year 2014 marked an important point in this journey - a critical reflection and a collective recommitment to working towards a future of well-being for all. In 2030 the Eastern Cape hopes to see the fruits of careful and collective hard work towards this commitment. Based on this engagement and planning process, the ECPC developed the Diagnostic Overview of the Eastern Cape, a detailed report that includes data and analyses describing the main challenges EASTERN CAPE BUSINESS 2016

30

facing the province, as well as attributes and accomplishments to build upon. It also produced the Strategic Perspectives Towards Vision 2030, a document that sets out propositions on principles, a suggested vision, outcomes and goals, as well as strategic actions proposed for the PDP. An integrated framework for human development At the centre of the development plan is the vision of well-being and flourishing for all in a thriving province. Human development is the principal focus of the vision. It refers to the development of mind, body and spirit for purposeful, conscientious and responsible action - through dynamic cultural systems underpinning a morally grounded socialisation; quality education and skills acquisition; knowledge creation and innovation; arts, recreation and sports; healthy, harmonious living and quality healthcare systems; and enabling social infrastructure. “We seek to improve the ability of people to obtain gainful employment and ownership of enterprises and assets that will provide the economic basis for human development. There should be a focus on economic opportunities for under-educated and unskilled young people, as well as for people living in the underdeveloped rural regions of the province,” according to the plan.


/10001032SM

75 YEARS OF INDUSTRIAL DEVELOPMENT

DU S OF IN

TRIAL DEVELOPM SINCE 1940

ENT

For 75 years, the IDC has been committed to leading industrial development in South Africa. It is this commitment that has enabled us to grow key industries and facilitate job creation, ensuring a positive contribution to the growth of our economy. If you’re an entrepreneur and have a business plan that is relevant to an industry that the IDC supports and require funding of R1 million or more, take the lead and make history. Call the Port Elizabeth office on 041 363 1640, the East London office on 043 721 0733 or visit idc.co.za to learn more about the funding criteria for the sectors that the IDC supports.


INTERVIEW

The Industrial Development Corporation Kingsley Dell-Robertson, Eastern Cape Regional Manager of the Industrial Development Corporation (IDC), shares his thoughts on opportunities for growth in the Eastern Cape. What opportunities are available in the Eastern Cape that the IDC is keen to support? The IDC is structured with three value chains, namely Metals, Chemicals and Agro-processing. Therefore, we will be prioritising the sourcing of opportunities to fund specifically into these value chains. The opportunities in the Eastern Cape arise from its natural endowments, firstly being the second-largest land area in South Africa after the Northern Cape, as well as having a population of 6.5-million people, a diverse landscape that ranges from deserts to lush forests, as well as a coastline of about 800km. This is supplemented with a strong manufacturing base in the Automotive sector, an unfolding renewable energy sector, export orientated agricultural sector namely citrus and other key agricultural sectors such as deciduous fruits, pineapples, chicory, dairy and sheep together with an established forestry industry. These industries are supported by the three harbours, two established IDZs and four universities.

Dell-Robertson, Eastern Cape Regional Manager

What size of companies and business are you looking to support in terms of your industrialisation initiatives? The key point as noted is industrialisation so, if a business is able to manufacture or process an item, then either Sefa or the IDC is able to fund the business. The overarching criteria is that the business should increase the industrial capacity of the Eastern Cape. By adding value to their products through an industrial process, the province is able to export or utilise the products at a higher value, thereby growing the GDP of the province.

What has been the impact of wind farms to date, and how do they fit in with the goals of the IDC? The IDC has funded five wind projects in the first two rounds of the REIPP projects, which will assist the national grid with 285MW of electricity. Even though they have only recently started commercial operation, the impact can already be seen in the surrounding areas in terms of community services being supplied through these projects. The IDC has a business unit that looks at the development of infrastructure that would unlock industrialisation opportunities in the targeted value chains. The provision of renewable energy is part of such enabling infrastructure. EASTERN CAPE BUSINESS 2016

What support is the IDC giving in particular to women and the youth in the Eastern Cape? Women and our youth have the highest unemployment statistics in South Africa and, therefore, government is putting plans in place to address this inequality. The IDC has special schemes that have been developed to enable the funding of youth

32


INTERVIEW and women. However, the uptake of these schemes has not yet been to the levels anticipated especially by the IDC, especially in terms of our youth. The IDC has subsequently placed additional emphasis on advertising and marketing the women and youth schemes. Youth applicants typically suffer from a lack of experience in the industry and in terms of financial resources to contribute towards the shareholders’ equity in the business. The government has put in place an MOU between the IDC, Sefa and NYDA in order to provide extra impetus to help the youth address these issues.

duction facilities in the Eastern Cape. Operation Phakisa, which incorporates the maritime industry and aquaculture, have significant potential. Agroprocessing – especially with the establishment of the Agro-Parks – offers enormous benefits to the Eastern Cape due to its arable land and water availability. The IDC is also awaiting the bio-fuel mandatory blending regulations to come into force, as this will be a catalyst for bio-fuel projects that would be based in the province. How are things economically on the ground? The export-orientated market in the Eastern Cape is thriving, together with our tourism establishments doing well. The industry that supplies locally is facing tough economic circumstances with cost pressures from increasing utilities and inflation-linked factors like wage rates, together with its market requiring competitive pricing. Manufacturers are forced to consider the localisation of some of their input supplies, and producers to the local market will have to explore opportunities in the continent and international markets to export some of their excess products and open up new markets.

In what other ways is the IDC helping to strengthen local communities? The IDC’s overarching criteria is towards increasing the industrial capacity in our country. If a community is involved such as in the forestry sector, then the IDC will work with the community to develop those projects with a view to including the community as a stakeholder in the project. The IDC currently has a number of communitybased projects that are at different stages of development, ranging from pre-feasibility, feasibility and implementation. For example, where the IDC has funded the community stake in a project such as the local wind farms, then the IDC will review the agreements, assist with the implementation of a community Trust and provide training to the Trustees.

CONTACT INFO Regional offices Physical address: 2nd Floor Block B, Chesswood Office Park, 8 Winkley Street, Berea, East London Postal address: PO Box 19048, Tecoma 5214 Tel: 043 721 0733 | Fax: 043 721 0735

What message do you have for the local business community? In adverse times opportunities rear their head due to other established companies not wanting to take the risk at this adverse economic period. You will require a partner to share the risk and, hopefully, that partner will be the IDC. With over 75 years of experience in funding business in the start-up, expansion or turnaround phase, IDC can add value to your business during our detailed funding due diligence process.

Physical address: Southern Life Gardens, Block A (Ground), 70 2nd Avenue, Newton Park, Port Elizabeth Postal address: PO Box 27848, Greenacres, Port Elizabeth 6057 Tel: 041 363 1640 | Fax : 041 363 2349 Email: callcentre@idc.co.za callcentre@idc.co.za Website: www.idc.co.za

What interesting prospects are in the pipeline locally? Both the East London IDZ and the Coega IDZ have prospective OEMs that are wanting to set-up pro-

33

EASTERN CAPE BUSINESS 2016


INTERVIEW

Acceleration Program has been e clients receive training and suppo eligible to receive financial suppo

MASISIZANE FUND

The growth of the Masisizane Fu inception. Although the initial foc the fund has gradually grown to b fund with the vision of being able as a sustainable entity and thereb for many years to come. The fu R1b and it plans to invest R420 SMME’s by the end of 2017.

Support for SMMEs and BUILDING SUSTAINABLE BUSINESSES THROUGH micro enterprises SUCCESSFUL Phelela PARTNERSHIPS Mlilo is the Provincial Manager, Eastern Cape, of the Masisizane Fund, an initiative of the Old

Phelela Mlilo

The development of agri-clusters Masisizane Fund’s approach in entail the clustering of small sca the farmers benefit from economi MutualonGroup. value chain financing, agro-p partnerships.

What is the Masisizane Fund? In 2013 the Fund initiated a p The Masisizane Fund is an Old Mutual initiative that was established in municipalities co Harry Gwala trading in grain 2007 following the closure of the Unclaimed Share Schemes Trust in and dairy prod focused on development of value consultation with the National Treasury of South Africa. Masisizane, was mechanization, storage and micro established as a non-profit funding company to provide loanpartnerships financingwith Omnia, Gra Association and municipalities, th and support to small, medium and micro enterprises (SMMEs). How do you assist clients?

their planting significantly in 2014 channeled towards Grain Co as

The Masisizane Fund (NPC), is an initiative of Old Mutual South Africa, Masisizane opera Unlike traditional institutions whoestablished provide loans, we don’t penalize our in 2007 following the closure of the Unclaimed Shares Trust. This in consultation with it clients on the basis ofwas theirdone risk profile. Instead of focusing on nationally traditional with the National Treasury of South Africa. The mandate of the Fund at inception was inwhether Gauteng and r security instruments our focus is on cash flows, which means and remains to contribute meaningfully to employment creation, poverty eradication offices there is enough cash to fund and service our client’s commitments. Wein KwaZu and reduction of inequality, economic growth and the attraction of investment. This is are also aware of the constraints some clients may face, hence in the Eastern Limpopo, done mainly through promotion of entrepreneurship, enterprise finance and support to instance when clients are unable to repay their loans; we give them Cape. Western small, micro and medium enterprises (SMME’s).

moratoriums on repayments. We also have preferential interest rates of The process to follow when apply prime minus two to prime minus four to ease the client’s financial fromburden. the Masisizane Fund is:

The target market is enterprises that are 51% or more owned The Fund provides loan finance in the following sectors: Submit the following documents fo by the previously disadvantaged individual(s) giving priority • Agriculture relevant provincial office: to rural and peri-urban/township areas. Masisizane funding • Manufacturing What sort of trends are you seeing in terms of SMMEs?• Comprehensive business plan is biased towards 51% plus owned women, youth and • Supply Chain Generally speaking it’s been quite a difficult period. What I’ve noticed is projections; people with disabilities. Masisizane will target productive • Franchising • For established SMMEs have been reliant on contracts or sub-contracts from businesses – and labour absorbing sectors as approved by the Board that of •most Commercial Enterprise three years) and the latest man Directors from time to time. the private sector, while in terms of government work there has also • For start-up businesses – financ Non-financial value adding services include capacity

BIOGRAPHY

been a decline in the opportunities available. Another problem SMMEs

• Tax clearance certificate; The Fund’s success is driven through a focused approach on development, business management and technical support, started her with career in havefinancial been education, experiencing that many them are overwhelmed the • Offby take agreements and/or l high Phelela impact industry sectors, coupled a comprehensive market is development andofproduct/ SMME financeas solution that includes business support. service in quality standards and prices compliance. A Business Signed consent for a credit ch 1999 a Trust Officer setting increase administrative that are filtering through to•their busi-

up trusts and managing trust funds. She gained valuable experience in retail banking and later financial planning working at Standard Bank. After a couple of year with Ithala Development Finance Corporation Phelela started her own successful business before joining Masisizane in January 2015. EASTERN CAPE BUSINESS 2016

nesses. I’m referring to things such as electricity and water costs, these costs are unfortunately beyond their immediate control as they come from the likes of either Eskom or their local municipality. Such costs have put a tremendous pressure on the profit margins of our clients’ small and micro businesses. It has also been challenging for us as a provider of enterprise development finance since we are limited by the market in our quest to finance more opportunities. What makes a successful SMME? I think the level of commitment demonstrated by an entrepreneur is a

34


Acceleration Program has been established where potential clients receive training and support to grow into a business eligible to receive financial support.

Once the initial screening has been completed, a full due diligence exercise, including a site visit will follow.

INTERVIEW FOCUS

The growth of the Masisizane Fund has been steady since inception. Although the initial focus was very philanthropic, the fund has gradually grown to becoming a self-sustainable fund with the vision of being able to serve the core mandate as a sustainable entity and thereby having impact on society for many years to come. The fund has a capital base of R1b and it plans to invest R420 million to deserving viable SMME’s by the end of 2017. The development of agri-clusters is the cornerstone to the Masisizane Fund’s approach in agriculture. Agri-clusters entail the clustering of small scale farmers to ensure that the farmers benefit from economies of scale with the focus on value chain financing, agro-processing and leveraging partnerships. In 2013 the Fund initiated a project in Alfred Nzo and Harry Gwala municipalities comprising of 15 farmers trading in grain and dairy products. Funding in 2014 focused on development of value adding activities such as mechanization, storage and micro mills and through strategic partnerships with Omnia, Grain Farmers Development Association and municipalities, the farmers have increased their planting significantly in 2014. Additional funding was channeled towards Grain Co as a result of this success.

key factor for us to determine the potential of a SMMEs success. When Masisizane operates we conduct due diligence on a prospective client we are able to gauge nationally with itstransaction. head office one’s commitment to the This is definitely an important in Gauteng regional benchmark for usand when we decide on funding for a SMME. Other factors we analyse, whether the SMME is operating in a secure, reliable and offices in isKwaZulu Natal, established market. We also look at the financial statements of the SMME Limpopo, Eastern Cape and as well as payments they have made in order to determine if they are able to make payments on time. We consider all these benchmarks as Western Cape.

In another example, one ladyhad been supplying a middleman, so we helped her to gain certification in order to directly supply SPAR as well as Pick n Pay. The Masisizane Fund provides loan financing in the agribusiness, franchising and supply chain operations. A Business Accelerator crucial factors in assisting us to proceed with the transaction. The process to follow when applying for financial assistance Programme has been established from the Fund is: where potential clients receive tarAnyMasisizane recent interesting case studies of people you have helped? Submit the following documents for an initial screening by the There are quite a number of them. We have just worked with a manufac- geted skills training and support relevant provincial office: turing entity which is importing pine and distributing it for manufactur- to grow into a business eligible to • Comprehensive business plan with market analysis and ing purposes across a range of suppliers in Africa. We provided them receive financial support. For more information and where to find us visit: projections; the working capital facilities so that they could procure more products. • For established businesses – past financials (preferably www.masisizane.co.za We could assist the new owner to penetrate his market and receive For more information and where to three years) and the latest management accounts; co-funding from the Eastern Cape Development Corporation and as find us, visit www.masisizane.co.za • For start-up businesses – financial projections; a result, save the business and see tremendous • Tax clearance certificate; growth in a short period of time. We could also • Off takethe agreements and/or lettersstaff of intent; help owner to manage relationships An initiative of the Group • Signed a creditincheck. better,consent whichfor resulted a significant drop in staff turnover and a much smoother overall operation.

35

EASTERN CAPE BUSINESS 2016


Operation Phakisa hits the ground running Through Operation Phakisa the National Government aims to implement its policies and programmes better, faster and more effectively.

P

resident Jacob Zuma has been the driving force behind Operation Phakisa, a project designed in line with the goals of the National Developement Plan (NDP) 2030, which is aimed at economic growth and boosting job creation.

nomic transformation programme. The operation addressed their national key priority areas such as poverty, crime and unemployment. It involves setting up clear targets and follows up with on-going monitoring process which makes the results public. Through this initiative, the Malaysian government was able to register impressive results within a short period. President Zuma said South Africa has renamed the Malaysian Big Fast Results approach as Operation Phakisa – from a Sesotho word, which means “Hurry Up”, to highlight the urgency with which government wants to deliver on some of the priorities encompassed in the NDP. The initiative will initially be implemented in two sectors – the ocean economy and health.

“We had announced in June this year that we are chasing a growth target of 5% by 2019. To achieve that target, we require new and faster ways of doing things, and Operation Phakisa represents that new spirit of moving faster in meeting our targets,” said Zuma, speaking at his 2014 State of the Nation Address. Operation Phakisa adapts the Big Fast Results methodology first applied by the Malaysian Government, successfully, in the delivery of its ecoEASTERN CAPE BUSINESS 2016

36


SPECIAL FEATURE Diving into the blue economy

aim of producing a detailed plan for improving service delivery in public sector clinics in all provinces, including indicators, targets and timeframes, in addition to a guideline for clinic managers to develop and sustain these improvements.

The first phase of the implementation will focus on unlocking the economic potential of South Africa’s oceans. This will be done together with representatives from government, industry, labour, civil society and academia to collaborate in unlocking the economic potential. Speaking at the launch of the initiative at the Inkosi Albert Luthuli International Convention Centre, in Durban, President Zuma said government chose the ocean economy with good reason. “South Africa is uniquely bordered by the ocean on three sides – east, south and west. With the inclusion of Prince Edward and Marion Islands in the southern ocean, the coastline is approximately 3 924km long,” he told the delegates, which included industry, labour, civil society and academia. But despite this, the vast ocean space is relatively unexplored in terms of its economic potential. “The ocean has a potential to contribute to the Gross Domestic Product (GDP) up to R177-billion. The ocean also has a potential to contribute between 800 000 and one million direct jobs,” said President Zuma. In 2010, the oceans contributed approximately R54-billion to South Africa’s GDP and accounted for approximately 316 000 jobs. Also at the launch, Environmental Affairs Minister Edna Molwea acknowledged the invaluable contribution of oceans and coasts to the development from throughout the continent. “The long-term developmental programmes of the world can no longer be based on land resources only; it must also include the coast and ocean resources.” Government has identified four priority focus sectors for Operation Phakisa. These are marine transport and manufacturing activities (such as coastal shipping, trans-shipment, boat building, repair and refurbishment) offshore oil and gas exploration; aquaculture, as well as marine protection services and ocean governance. The second implementation of Operation Phakisa was to pilot the health sector’s Ideal Clinic Initiative to improve service delivery in the country’s clinics nationwide, which commenced late in 2014. The health sector laboratory will be undertaken in collaboration with provinces, districts and clinic managers, with the

Success of Operation Phakisa “The key step in Operation Phakisa’s approach,” said the President, “will be the intensive work sessions necessary to deliver complete and signed-off action plans for presentation to Cabinet. These work sessions will help create transparency and help to remove bottlenecks and resolve the most critical challenges facing a sector.” Once the detailed delivery plans have been completed, President Zuma said government will then move into the implementation phase of Operation Phakisa—with him taking a personal interest in monitoring the progress and implementing the project. “The people of South Africa deserve much better from all of us. Through Operation Phakisa and all our other key strategic interventions to achieve the goals of the National Development Plan, we must work tirelessly to move our country forward and build a better life for all, especially the poor and the working class,” he said, urging key role players to commit fully to the success of this programme.

Meeting targets Highlights of the Operation include the cabinet approved issuing to Transnet Port Terminals (TPT) of a permanent operating licence to operate the manganese container terminal at the Port of Ngqura. Significant economic opportunities arising out of this development include the upgrading of the rail network (R2.3billion) from Northern Cape to Port of Ngqura in order to support axle loads of 26t. Knock-on effects occur along the rail infrastructure value chain, with significant opportunities for localisation, such as signalling systems. The relocation of manganese operations from the Port of Saldanha would open opportunities for offshore oil and gas activities such as rig repair and maintenance.

37

EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE There is an opportunity to capture the lucrative repair market by extending and expanding our port capabilities to service current and future vessels in East and West Africa. Opportunities for local shipbuilding industry have arisen as a result of tenders issued by Armscor for a new hydrographic vessel under Project Hotel and six new offshore and inshore patrol vessels under Project Biro. The acquisition of the six IPVs/OPVs by the Navy is a major boost to the local shipbuilding industry as 60% local content is required. Projected spend over the next three to four years is approximately R6.6-billion, providing the opportunity to deepen component manufacturing and rebuild domestic capabilities. Transnet National Ports Authority (TNPA) and Transnet SOC Limited have adopted a Public- PrivatePartnership (PPP) model to finance new Operation Phakisa infrastructure. TNPA has committed R7-billion for public sector investment in domestic ports to support industrial opportunities in the ports.

EASTERN CAPE BUSINESS 2016

Saldanha Bay port has been established as an oil and gas hub, the total scope of the initiative amounting to a R9.2-billion investment (public and private). TNPA has appointed transactional advisors for the refurbishment and maintenance of port facilities. The scope and maintenance refurbishment requirements have been completed and The dti has designated working vessels for local procurement (60% local content). A R1.4-billion tender by TNPA for the procurement of tug boats was awarded to a South African company in support of local procurement. The dti is in the process of developing a strategic marketing campaign and value proposition for investors into the MTM sector. In addition to the Marine sector, progress has occurred within the oil and gas and aquaculture sectors, a Delivery Unit and Steering Committee was established at DMR and is fully functional. The financial analysis of South African offshore oil and gas sector procurement has been completed ahead of schedule. This work included the determination of product and service categories and spend (values); compilation of suppliers’ database and classification of procurement (with measurement and standards criteria) in terms of domestic vs foreign value addition in final goods and services. Setting of minimum targets for local production and supply awaits the finalisation of the Mineral Petroleum and Resources Development Amendment Bill (MPRDA) legislative process. A total of 10 catalyst projects are in progress with funding secured from the Aquaculture Development Enhancement Programme (ADEP), the private sector investment at R305-million, and Government investment at R105-million. The National Regulator for Compulsory Specifications (NRCS) has been co-opted for sampling and food safety standards. Public Works has signed off leases on four projects. South Africa is ideally positioned to serve the EastWest cargo traffic lane and the booming African offshore oil and gas industry through marine manufacturing, which includes ship and rig repair, refurbishment and boatbuilding. Despite this competitive advantage, we currently capture only 1% of the global market of ship repair and refurbishment. Efforts are underway to ensure that all of Operation Phakisa’s Oceans Economy initiatives are prioritised and resourced accordingly.

38


It’s taken a

R45-million

Investment by Aristopix to ensure that their clients have complete peace of mind.

In building up their fleet of over 170 vehicles, Aristopix takes the sweat out of their customers’ vehicle budget to allow them to focus on their business and doing what they do best. Aristopix supplies, maintains and monitors a wide range of vehicles for their clients, from sedans and light commercial vehicles to buses and heavy plant machinery. “We pride ourselves on our customer-focused, core team of professionals who strive to provide service excellence in the fleet management and plant hire industry.” Aristopix focus is on four core fleet management areas: • Full Maintenance Lease • Manage Maintenance • Fleet tracking and monitoring systems and services • Plant hire, roads constructions and infrastructure development

“We strive to be the brand-of-choice” in the fleet management and plant hire industry

Aristopix is a level 2 BBBEE contributor which is 100% black-owned, 100% black-managed and 100% black-operated by owners, managers and staff. The ownership profile is 50% black female and 50% black male

Aristopix (Pty) Ltd

Physical address: 1 Kelvin Court, 20 Currie Street, Quigney, East London, 5201 Postal address: Postnet Suite X 264, Private Bag X 9063, Vincent, 5241 Vat number: 4220256285 • Company Reg: 2010/004085/07 Tel: 043 722 5731 • Fax: 043 722 5730 Email: andiswa@aristopix.co.za


INTERVIEW

Aristopix Ms Vuyisa Mfaka is CEO of Aristopix, a BEE company that specialises in full fleet management services.  Founded in 2010, the company has offices in Mthatha and East London in the Eastern Cape.

Ms Vuyisa Mfaka

COMPANY PROFILE

What services does Aristopix offer? Our main focus is providing our clients with comprehensive fleet management solutions. In addition to ensuring speedy turnaround times for downtime units, we also offer clients the benefit of vehicle replacement. According to our Service Level Agreement (SLA), if one of the cars in our fleet breaks down then we have an obligation to get our client mobile within four hours, either by means of roadside assistance or providing a relief vehicle. The normal situation in government departments and municipalities often results in vehicles sitting in workshops for three months or longer because, in such situations, no-one is accountable. In the case of King Sabatha Dalindyebo (KSD) municipality, where we have a five-year Full Maintenance Lease contract (FML), vehicle movements are monitored within section perimeters and alarms are given if drivers move beyond those perimeters. Outsourcing this critical function not only allows the client to continue with its core business, it also affords them numerous financial gains, one from being able to remain focused on their business mandate and, secondly, not forfeiting on maintenance and/or widespread driver-related vehicle abuse.

What is your competitive advantage? Through our in-house operations the client leverages greater benefits from us compared to larger fleet management companies such as Bidvest Leasing or Avis Fleet Management. Such hands-on services that we offer circumvent onerous claims for vehicle damage after the lease period, as Aristopix deals with the daily logistics of running its fleet firstBIOGRAPHY hand. I think it’s because the size of our business allows us to be able to Full Maintenance Lease (All Vehicle Ranges) | Fleet Management Fleet Abuse and Misuse Management | Vehicle Maintenance Management Ms Vuyisa Mfaka is a veteran respond quickly, because we are right there. A personal relationship is Tracking and Monitoring | Fuel Management | Fleet Cost Benefit Analysis in the fleet management indus- then established with the clients because the people who they speak try. She has worked for large to are the same people who are running their operations at grassroots corporates (including Daimler level and will actually be directors of the company. This enables us to Fleet Management) and is implement speedy decision-making by cutting through the red tape. one of the only black females running a fleet management Who is your major client at the moment? company in South Africa. As Our main focus is the KSD municipality (our Mthatha office is primarCEO of Aristopix she is respon- ily focused on servicing them), along with other public sector clients. sible for the strategic direction A five-year fleet management contract has been signed with KSD whereand overall growth of Aristopix by a Service Level Agreement (SLA) was entered into with Aristopix under as an emerging company in the which we are held accountable for KSD’s fleet of 66 leased vehicles, in fleet management industry. addition to managed maintenance of their own fleet. Tel: +27 (0)47 531 4197 | Fax: +27 (0)47 531 0827 | www.aristopix.co.za 9 Callaway Street, Municipal Stores, Mthatha 5100

Postnet Suite 264, Private Bag X 9063, East London 5200

EASTERN CAPE BUSINESS 2016

1

40


INTERVIEW FOCUS through it might not be directly linked to Operation Phakisa Ocean Economy. In order for Operation Phakisa to function effectively there also needs to be road transport in place for coastal shipping of mineral resources that have been mined inland. For this to happen our road infrastructure and transportation networks need to be as efficient as possible.

What are Aristopix’s growth prospects? Right now our focus is within the government environment. Our business model is designed to assist government and it holds us accountable for fleets and infrastructure development. When we started we were only a leasing company that leased vehicles to clients over a period of time. An area of growth since then was when we got involved with Public Works, and that’s when we saw things start to develop. We started a joint venture with a qualified company that had an active grading in the relevant category of works, and now we are even building roads. It’s exciting seeing the scope of our business broaden and at this very time we are working at various sites in the region in road construction. What are the industry trends right now? There are always new trends, always new things happening. Everyone is still using GPS, but everything is now almost completely web-based. Green footprint kind of trends have just come alive and this is particularly important in the transport industry right now. Everyone is talking about green cards and managing their vehicles responsibly in terms of emissions for the green environment – our own responsibility is to make sure that our fleets comply with these regulations. How has Aristopix played a role in job creation? For the past five years we have been on the forefront in terms of creating jobs in the KSD and Border regions of the Eastern Cape through our success with vehicle leasing, and this has enabled us to create employment both directly as well as indirectly. Five years ago we took a financial risk when we embarked on a huge capital outlay of R43-million on our fleet. This was a capitalisation which the KSD municipality did not have, but as we were able to raise the money it enabled us to win their business and this, in turn, enabled us to create over 500 jobs in the area. On the operations side we have also contributed in terms of job creation,

41

What do you believe is important to stimulate job creation? Creating jobs in whatever sphere requires an effective value chain. Looking at the Eastern Cape, for instance, the Port of Ngqura still has capacity for further growth, and this is where the province can benefit, for instance by being able to move minerals such as manganese and iron ore from the inland mines to the port. A transport network like this would be an incredible way to connect the mines in the Northern Cape to the Ocean Economy, in so doing making it a viable connecting line between our two provinces. Government needs to build railway lines and develop the road infrastructure that will be effective to take these minerals to the sea. All things form part of a value chain, and we’re proud to be a part of that chain.

CONTACT INFO Physical address: 1 Kelvin Court, 20 Currie Street, Quigney, East London 5201 Tel: +27 (0)43 722 5731 Fax: +27 (0)43 722 5730 Email: phinda@aristopix.co.za Website: www.aristopix.co.za

EASTERN CAPE BUSINESS 2016


FOCUS

Ports hold key to growth South Africa is highly rated as the gateway to Africa for many reasons, and Operation Phakisa (the initiative whose name means “operation hurry-up”), is set to drive implementation of key priorities in the National Development Plan, starting with the Ocean Economy.

T

he Eastern Cape’s ports are key strategic economic advantages in the marine economy. With trade flow at an all-time high and Africa’s ports being pushed to maximum capacity, leaders of Africa’s ports industry convened at the African Ports Evolution Conference & Exhibition last year to discuss improving operational efficiencies, developing transport corridors and preparing ports for mega ships. In a bid to alleviate congestion in the ports, Transnet National Ports Authority (TNPA) presented its new web-based Integrated Port Management System (IPMS), as a key driver of growth in the maritime industry. “This online system will help transform South Africa’s ocean gateways into smartPORTS by using advanced information technology that will make them more intelligent and sustainable, while conserving resources, time, space and energy,” says TNPA’s CEO Richard Vallihu. Port of East London The East London Terminal was established in 1963 and has a renowned reputation for excellent turnaround times. It is South Africa’s only river port and employs over 120 people. It is fully equipped and trades with the world’s leading automotive brands. In this capacity it has a sophisticated multi-level car terminal at its Ro-Ro (Roll on, Roll off) facility and has two dedicated berths for servicing automotive brands. The terminal handles import and export cargo like motor vehicle components, textiles, sugar, rice, timber, scrap steel, automotive and chemicals. The port has the largest grain silo on the South African coastline, breakbulk and containerised cargo facilities. The terminal now trades in coal. Specifications:

• There are 11 commercial berths ranging up to 250m in length. • It has a dedicated grain terminal. Recent investments in equipment vary from straddle carriers to mobile cranes and forklifts, and this has been part of a focused plan for delivering an efficient service that has boosted terminal handling. The East London Terminal still has ample capacity, in addition to an ability to attract more volumes across varying cargo, including heavy equipment.

EASTERN CAPE BUSINESS 2016

42

Port of Port Elizabeth The Port of Port Elizabeth is a geographically well positioned, customer-centric, multi-commodity (containers, automotive, dry bulk, liquid bulk, and break bulk) port that prides itself on flexibility and service excellence. Being a congestion-free port allows for an efficient berthing and unberthing operation. Its unparalleled services offering ensures competitive cargo handling rates across all its terminals, which translates to a fast, efficient and safe ship turnaround time. The Manganese Terminal started operating in 1963 and recently celebrated 50 years of operation. It is currently the largest exporter of manganese in the country. The Container Terminal was ranked the highest in Africa for moves per hour between January and March 2013 by the world’s largest ocean carrier and container shipping company, Maersk. The Automotive Terminal is operated by Transnet Port Terminals and has been ranked as the best-performing terminal in Africa by VWSA. The accolade is a result of measured efficiency when counting the number of containers handled per hour, which impacts directly on vessel turnaround time.


FOCUS Specifications: • The port’s container terminal has three berths (Two Berths) totaling 925m (720m) in length and a storage area of 22 hectares with 5 400 ground slots for stacking purposes. The container terminal is equipped with latest-generation gantry container cranes and straddle carriers • The depth at the entrance channel is 14.5m. The Port also has a world renowned Automotive Terminal. This modern Automotive Terminal offers adequate capacity, worldclass handling rates, streamlined administrative processes, an integrated logistics solution, seamless road and rail connectivity and is in close proximity to automotive giants VWSA, GMSA and FAW. The Multi-Purpose Terminal has a compatible commodity mix comprising predominantly of fruit (deciduous and citrus), agricultural products, fertilizers, timber, steel coils, cement manganese and various other bagged cargos. In view of recent drought in the country, the port has been identified as one of the major entry points for import of Maize Specifications: • The break-bulk terminal has six berths totalling 1 170m, two bulk berths totalling 360m and a tanker berth of 242m.

Port of Ngqura A world-class deep-water port located 20km north east of Port Elizabeth, the port was officially opened in 2012 and is the fastest-growing port in Africa, as recorded in the 2014 Drewery Shipping Report. The Ngqura Container Terminal (NCT) has been designed as a state-of-the-art deepwater transhipment hub, currently having the deepest container terminal in Southern Africa, boasting a 16 metre draft. NCT has seen a steady improvement in volume growth and operational performance. The terminal has increased South African trade with the world, offering an integrated, efficient and competitive port service for containers on transit to global markets. The port is generating much-needed jobs in the economy while promoting international trade for Southern African Developing Countries (SADC). The Container Terminal, which boasts a world-class superstructure, upgraded its installed capacity from 800 000 to 1.5 Million Teus (capacity for 4 Berths) in 2014. The NCT has a design capacity of 2 Million TEUs and has improved its efficiencies with volumes increasing from 120 000 TEUs in 2009/10 to 713 000 TEUs in 2013/14. In addressing the increasing global demand for Manganese export, Transnet will be investing in a state-ofthe-art Manganese loading facility, positioning the Port of Ngqura as a leading Manganese Ore exporter globally. The relocation of the current manganese facility from the Port of Port Elizabeth to Ngqura will increase the capacity from 5.5 to 16 metric tons per annum The Port’s world-class infrastructure, depth and marine assets have created opportunities for handling abnormal cargo. Since April 2013 to date, the port has been handling imported wind turbines where 48 304 tons of grossly abnormal cargo (with approximately 20 vessels calling in the port) which require discharging, storage and removal from the port. Specifications: • The dry bulk berths were designed to accommodate for 85 000dwt (deadweight tons) to as much as 120 000dwt vessels. • The 2 610m long main breakwater, on the eastern side, is the longest in South Africa to date. It has been designed to withstand wave heights of up to 9m. • The deepwater section has a final deck level of +7m CD and a clear width of 9m. The container terminal has been designed for the operation of heavy container handling equipment. In 2014 the Terminal was upgraded with additional equipment, including 10 cranes and 40 TRG’s. The Port of Ngqura employs a total of 786 employees from the landlord and terminal operator side collectively following the completion of the Ngqura Expansion Project. The long-term estimate is that the Port will employ 2 000 staff within the next 20 to 30 years, with the majority of these jobs likely to be sourced from the Eastern Cape.

43

EASTERN CAPE BUSINESS 2016


PROFILE

Port profile: The Port of Port Elizabeth The Port of Port Elizabeth is the gateway for expanding markets, and is not only linked with the rest of the world, but it also has direct transport links into the heart of the African continent.

S

ituated in Algoa Bay, on the south-eastern coast of Africa, the Port of Port Elizabeth is being positioned as a premier automotive hub.

port which will see the port embrace smart energy, systems, logistics, processes, infrastructure, environment and management. The Port will be transformed to meet future market demand by investing into the acquisition of two 70-ton bollard pull tugs, berthing space for fishing vessels, acquisition of a 90-boat hoist to complement additional repair lay down spaces created, and additional automotive capacity.

The port comprises of 1783 hectares of land, has 9 licensed terminal operators, operating across 11 berths, with 113 996 square meters of undercover warehouse space, and handled 11.926 million tons of cargo in 2014/15. The port is equipped to handle automotive cargo, dry bulk cargoes, bulk liquid cargo, general cargo, container cargo, and passengers. The Port is accessible by rail and has 4 road entrances. The Port Control Tower provides 24-hour communication to all vessels using the Vessel Traffic Management System. The Port limits are two nautical miles west of Cape Recife to two nautical miles east of the North Bank of the Swartkops River. The Port offers a full suite of maritime services on a 24-hour basis, including towage, pilotage and berthing services. Ancillary services that are available include the provision of water, electricity, refuse removal, firefighting services, compressed air, workshop services, equipment hire as well as diving services. The port is also home to a large fleet of independently operated fishing vessels. The port also operates a slipway facility which can handle vessels up to 600 tons. The Port has the following SHEQ certifications: OHSAS 18001 (2007), ISO 14001 (2004), 5 helmet award, Marine services accreditations: ISO 9001 (2008), OHSAS 18001 (2007), rail safety permit and ISPS certification.

The Port will also create opportunities for the establishment of a marine and maritime commercial development, a value-added logistics park and aquaculture.

Vital stats

• Good holding ground in Algoa Bay. Recom-

• • •

CONTACT INFO Physical address: Port of Port Elizabeth, PE Postal address: PO Box 162, Port Elizabeth 6000 Tel: +27 41 507 1887 | Fax: +27 41 507 1956 Nomkhitha.Shogole@transnet.net Harbour Master: Captain Brynn Adamson

The port is synonymous with high port productivity and promises world-class ship turnaround times. The Port is evolving into a people-centric smart EASTERN CAPE BUSINESS 2016

mended anchorage is 1,5 nautical miles to north or south of fairway buoy but clear of channel. There are three anchorages in Algoa Bay. There are 12 berths ranging up to 318.5m length. For all vessels requesting pilotage services, one hour of advance notice is required to VTS/Port Control. Cape Recife East (True) to a point in the Indian Ocean, distance 1 609m line drawn from the extreme point to the East Bank of the Zwartkops River, east (True) distance 1 609m metres on the eastward by a line drawn between these two points.

Port Control: 041 507 1909/10 www.transnetnationalportsauthority.net

44


PROFILE

Port profile: The Port of Ngqura A competitive port service for containers within the Sub-Saharan Africa region, the Port of Ngqura is a world-class, deep-water transhipment hub offering an integrated solution for all cargo needs.

T

• The main breakwater, on the eastern side, is

he Port is located in close proximity to the Coega IDZ but remains under the jurisdiction of Transnet National Ports Authority. It also services the industrial bulk commodity requirements of the regional and national hinterland. Since becoming operational in 2009, the port has surpassed many expectations and it is through its milestones that it was profiled as the fastest-growing port in the country, Africa and even the world, as reported by the Drewry Consultants in the 2012/13 annual report.

the longest in South Africa to date. It has been designed to withstand wave heights of up to 9m. At 2 610m long, the main breakwater is the longest to have been constructed in South Africa to date. It extends out to a depth of -16.5m chart datum (CD) port and has a maximum base width of 12m. The deepwater section has a final deck level of +7m CD.

Size matters The Container Terminal, which boasts world-class superstructure, has a current capacity of 1 200 000 Teus for 3 Berths and will later increase to a 2-million Teu capacity for 4 Berths.

Vital stats

• The construction of the first phase of this greenfields project started in September 2002.

• More than R10-billion has already been invested in the project over the past 10 years.

• The Port of Ngqura has a total land area of 1 254 hectares.

CONTACT INFO

• It was designed to initially offer a seven-berth •

model – four for containers and three for dry, liquid and break-bulk. MSC Catania became the first vessel to berth at the Port of Ngqura, offloading 275 containers and, thereby, marking the port’s unofficial opening on 4 October 2009. The Port of Ngqura is the only port in South Africa that has an environmental authorisation (Record of Decision) for its construction and operation.

Ntshantsha Buyambo (New Business Development Manager) Tel: 041 507 8569 Email: Ntshantsha.Buyambo@ transnet.net Harbour Master: Captain Thulani Dubeko Tel: 041 507 8443 Email: thulani.dubeko@transnet.net Port Control (Ship movements and ETAs) Tel: 041 507 8444

45

EASTERN CAPE BUSINESS 2016


INTERVIEW

Port of Port Elizabeth Port Manager Rajesh Dana provides an overview of the historic Port of Port Elizabeth, recent infrastructure upgrades as well as the importance of the harbour for economic growth in the region. What is the Port’s present capacity? handle up to 18 different grades, which are store-in The Port of Port Elizabeth comprises 1 783 hectares bins with a maximum capacity of 400 000 ton, and of land operated by nine licensed terminal opera- exported across a quay with a length of 360m and tors over 11 berths. Accessible by rail and four road depth alongside of 12.2m. Main access is by rail. The entrances, the Port consists of a container terminal, au- terminal has an operational capacity of 5.5mt and tomotive terminal, two multi-purpose terminals, bulk holds an air emission license of 6mt. It is currently manganese export terminal, four liquid bulk terminals, the largest exporter of manganese in the country. and handled 11.926-million tons of cargo in 2014/15. The Liquid Bulk terminal has a capacity of 2 500 000 Accessible by road and rail, the container terminal kiloliters (limited only by storage capacity) and hancomprises 650m of quay with a stack capacity of 600 dles a wide range of petroleum products and LPG. The Port also accommodates passenger liner vessels 000 TEUs, 800 reefer plug points, 3600 ground slots, a depth of 12,2m with tidal fluctuation of 1,8m. This at its MPT Terminal. The cruise-liner industry in Port terminal has been ranked by the Maersk Shipping Elizabeth is seasonal from October to April, with liners averaging 13 hours in port. They arrive in the morning Line as one of the most efficient in Africa. Also accessible by road and rail, the Automotive to allow passengers to disembark and enjoy city and Terminal comprises 5 000 parking bays with a capacity safari excursions, before departing in the evening. of 200 000 units (subject to dwell time), a depth of 11m and 1.8m tidal fluctuation. Operated by TPT, it What infrastructural improvements have been has been ranked by VWSA as Africa’s best-performing created in the last few years? terminal. The Multi-Purpose Terminal consists of 915m Transnet has recently completed the upgrade of the of quay length, with a depth ranging from 10m to 11m road and rail infrastructure on its MPT Terminal, which alongside, is accessible by road and rail and has suf- will ensure cargo is handled in a safe and efficient ficient spare capacity. The Manganese Terminal can manner. We are in the final stages of completing the conversion of a 40 Ton Slipway in a modern, world-class 100 ton boathoist operation, with eight repair laydown areas servicing the fishing industry. This will create an opportunity for the boat and yacht building market, ultimately creating a marine engineering hub. What future developments are on the cards? The Port’s development strategy is to evolve to a people-centric SMART Port, a concept founded on the pillars of driving social-economic development of our city and region, ensuring port efficiency and EASTERN CAPE BUSINESS 2016

46


INTERVIEW competitiveness through world-class technologies, framework and workflow to capture, process, notify ensuring the port is resource-efficient and is part of and share information to manage business processes. an intelligent, integrated green transport network. Greater attention to improve service delivery mechaThe Marina & Maritime Commercial precinct is an nism is its primary focus, including making Transnet exciting new project focused on the creation of a National Ports Authority ports on par with internaleisure and recreational precinct to promote tour- tional ports in terms of services and technology. ism and water sport within a “working harbour”. This Having positioned itself as a premier automotive project will restore historic links to the city and will port, the Port secured an automotive transhipment contribute positively to inner city rejuvenation. contract and, in response to market demand, pioIn support of the fishing industry and boat building neered manganese export through skip operation at and repair, the Port is in the process of refurbishing its MPT berths and skiptainer operations at the conthe 1 200 ton slipway and leading jetties, which will tainer terminal. This helped breach the gap between create much-needed berthing space for the Port’s international demand versus limited port capacity. 300-strong fishing fleet and creating the opportunity to conduct “wet” repair in a safe, secure environment. What growth opportunities does the port offer? The port will also be upgrading its rail infrastructure, As a landlord the port has focused a lot of attention as connectivity to the hinterland is critical for any port. on facilitating and enabling trade and optimising We will also be refurbishing lettable buildings to in- its Property portfolio. The Port recently formed a crease the market value of our property portfolio. The multi-disciplinary new business development portport has also procured two new Voith Schneider 70t folio whose sole mandate is to seek new business bollard pull tugs and a workboat that will ensure safe, opportunities for the port, city and region. We are secure and efficient marine operations in the port. also in the process of evaluating and awarding lease. hold rights for a Ports Logistics Park operator that will What are some of the Port’s success stories? provide valued-added services to cargo importers The port has a rich history of performing well in safety and exporters, two restaurants to serve as catalysts and has won various TNPA and Transnet safety awards. in developing a marina and maritime commercial The port has also introduced performance standards precinct, an aqua farm and yacht-building factory for Terminal Operations and Marine Operations and (in support of exploiting the opportunities of the this has contributed positively to recording, monitor- blue economy) as envisioned in Operation Phakisa, ing, analysing and improving port performance. various maritime commercial activities, leisure and The port recently commissioned a Joint Operations recreational activities and office accommodation. Centre (JOC) to provide a near real-time integrated The port also intends to invite Request for Proposal view of the port’s logistics chain (of the flow of vessels (RFP) to introduce a license for a third Multi-Purpose and cargo through the port), thereby creating a ho- Terminal operator so as to maximise the use of berths listic interchange of information between port stake- 11 and 12 and the backup land thereto. holders. This project has contributed positively to The Port has recently licensed a bunker barge operareducing costs by improving efficiency and reliability tions and view this as a start to positioning the port as of the logistics chain. This project will ultimately bring a “service port” offering vessel crew changes, stores, together the city and county’s sea, port, rail and road repairs and a host of other opportunities. operations under one seamlessly integrated view. CONTACT INFO The Port has maintained it’s high port productivity and efficiency KPIs and has again achieved all its Address: Port of Port Elizabeth, Port Elizabeth performance targets. We recently introduced a new Postal address: PO Box 162, Port Elizabeth 6000 software system IPMS (Integrated Port Management Tel: +27 41 507 1887 | Fax: +27 41 507 1956 System), which provides technology that enables imEmail: Nomkhitha.Shogole@transnet.net proved efficiency and increased productivity. The Web: www.transnetnationalportsauthority.net IPMS provide an integrated system with a structural

47

EASTERN CAPE BUSINESS 2016


INTERVIEW

Port of Ngqura Port Manager Ms Mpumi Dweba provides an overview of recent developments at the Port of Ngqura. Please share background on the growth and development of the Port of Ngqura? The first phase construction of the Port of Ngqura (PoN) Greenfields project commenced in September 2002. One of the most important milestones was when the first commercial vessel, the MSC Catania, berthed at the PoN in 2009. It was officially opened on 16 March 2012 by His Excellency Dr JG Zuma, President of the Republic of South Africa. It is located in close proximity of the Coega IDZ, which provides a competitive advantage for the export and import of commodities through the port. The port is the only one in South Africa boasting an environmental authorisation Record of Decision (RoD) for its construction and operation, as well as an exceptional 0% non-compliance.

was therefore taken to construct an industrial port to service larger vessels, with the Port of Port Elizabeth complementing Ngqura by accommodating smaller vessels. Consequently, the Port of Ngqura forms an integral part within the Coega IDZ as it supports the industrial development and the investments within the IDZ. The Port of Ngqura is being positioned as a Container Transhipment Hub for Sub-Saharan Africa and is specifically geared to serve African (East and West), European and Asian trade routes offering safe and efficient transit of cargo. What have been some of the important milestones for the Port of Ngqura? The off-loading of 275 containers at the Ngqura Container Terminal (NCT) on 4 October 2009, which is operated by Transnet Port Terminals (TPT), was a moment of great celebration for all involved in the Ngqura project as it marked the unofficial opening of the port, by utilising part of the expanded port infrastructure and container terminal. Transnet National Ports Authority has recently issued a Terminal Operator License and Terminal Operator Agreement to Transnet Port Terminals to operate the Ngqura Container Terminal and the Ngqura Manganese Export Terminal. In addition, the Ports Authority is at the final stages of concluding the Terminal Operator Agreement with Oiltanking Grindrod Calulo (OTGC) for the Tank Farm operation.

What is the relevance of having a deepwater port 20km away from Port Elizabeth? Well, the Port of Ngqura is a developing port, whereas the Port of Port Elizabeth is already at a maturity stage. The emerging trend in the container market is that vessels are becoming bigger and, consequently, ports are required to have deeper drafts. A decision

What is the Port’s current capacity? The container terminal’ design capacity is two-million twenty foot equivalent (TEU), and the operational capacity is 1.5 TEUs. The multipurpose terminal has capacity to handle break-bulk commodities and project cargo. The relocation of the manganese terminal from the Port of Port Elizabeth to the Port of Ngqura will increase the capacity from 5.5 Million Tons Per Annum (Mtpa) to 16Mtpa, and the liquid bulk terminal capacity will increase to 2M KL (Kilolitres). EASTERN CAPE BUSINESS 2016

48


INTERVIEW repair and upgrading of oil rigs in the Industrial Policy Action Plan released by Trade and Industry Minister Rob Davies. There’s been a high demand for the oil rigs to dock in the port for repairs and maintenance. In 2013 the port was identified as a preferred port to handle wind turbines, and this has helped to position the port as an abnormal cargo handling port. More recently, the port was identified as the preferred port to handle wind turbines which are destined for the Eastern Cape as well as parts of the Northern Cape. The port has also played a major role in job creation, with direct and indirect work opportunities being created through Port of Ngqura Projects such as the Port administration building (269 work opportunities), the Admin craft basin (448), the tank farm phase 2 & 3 (3 360) and the Manganese project (8 400).

What infrastructural improvements have been created in the last few years? One of the recent improvements has been the installation of the Automated Mooring System at the container terminal. This technology has specifically been designed and manufactured to meet certain environmental conditions (surge) in the Port of Ngqura and is tailored to enhance productivity and safety at the Container Terminal. The vacuum-based technology of the AMS employs vacuum pads recessed in, or mounted on, the quayside to effectively moor or release vessels in seconds. The port has also started with the construction of a state-of-the art administration building for its employees, an admin craft basin (Tug Jetty) where its marine craft such as tug boats and pilot boats will be berthed, and an Admin Building for marine personnel.

What growth opportunities does the port offer? The Port of Ngqura is fully equipped to expand on existing business opportunities, whilst facilitating new business development (NBD). Dry bulk, break bulk, Abnormal Cargo, Containers, Liquid Bulk cargo bulk are entwined within the future prospects of the port. The extensive availability of land and infrastructure at the Port creates more growth opportunities and diversification of cargo that could be handled. The port will become a global leader in manganese export and an energy hub, importing LNG and gasto-power and supporting gas to power in order to address the current energy crisis in SA, complementing the energy sector developments currently taking place in the Coega Industrial Development Zone and the Eastern Cape region. One of the long-term plans is to establish a ship repairs facility.

What are some of the Port’s success stories? We recently introduced a new software system IPMS (Integrated Port Management System), which provides technology that enables improved efficiency and increased productivity. The IPMS provide an integrated system with a structural framework and workflow to capture process, notify and share information to manage business processes. The port has a rich history of performing well in safety and has won various TNPA and Transnet safety awards. We have garnered many accolades such as the 2014 Drewry Report that affirms that the Port of Ngqura has become one of the fastest-growing ports in the world. In 2014, the port was recognised as the greenest organisation in the Eastern Cape as a mediumsize, high environmental impact organisation. The port was awarded 1st position in the Gold Category, tying with the Coega Development Corporation. In 2013 the Port of Ngqura was named as one of four South African ports earmarked for the

CONTACT INFO Ntshantsha Buyambo (New Business Development Manager) Tel: 041 507 8569 Email: Ntshantsha.Buyambo@ transnet.net Harbourmaster: Captain Thulani Dubeko Tel: 041 507 8443 Email: thulani.dubeko@transnet.net Port Control (Ship movements and ETAs) Tel: 041 507 8444

49

EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

Maritime With its 800km of coastline, South Africa’s pristine Eastern Cape province is set to become a leading hub of maritime economic activity, after some challenging years.

T

he province is home to the two major port cities of Port Elizabeth and East London, both established industrial manufacturing coastal centres, giving the Eastern Cape several strategic competitive advantages. The SA government announced in 2014 that it would be implementing ocean economy projects, which it expected to contribute more than R20-billion to the country’s gross domestic product by 2019. These projects form part of the government’s National Development Plan, its economic blueprint that aims to promote economic growth and job creation. South Africa’s oceans have the potential to contribute up to R177-billion to the GDP and create over one million jobs by 2033, two decades from now, the government said. “A thriving maritime sector will shift the Eastern Cape into an era of prosperity,” says Mfundo Piti, the economic infrastructure development manager of the Coega Development Corporation (CDC). “The momentum displayed so far by the local privatestate nexus shows a strong capacity and desire to further tap the potential of a sector that has largely shaped the history of these two cities.” Ports have always been at the forefront of maritime economic organisation, catalysing economic growth through the trade of manufactured goods, commodities and raw materials. They have helped transform underdeveloped regions into important trade centres which, in turn, has created jobs.

Coega Industrial Development Zone (IDZ) It is becoming the fastest growing terminal in the world, according to Drewry Maritime Research quoted by the CDC. Construction of the Port of Ngqura is one of the biggest projects of its kind on the continent and one of the largest undertaken in post-apartheid South Africa. The Transnet National Ports Authority (TNPA) has invested R10-billion to date in the development of the Port,

Port of Ngqura “As both entry and exit points, the two ports have been critical in the past, present and future of the province and indeed the country,” Piti says. Nelson Mandela Bay’s Port of Ngqura, a deep-water sea port is adjacent to the EASTERN CAPE BUSINESS 2016

50


SPECIAL FEATURE The wind sheltered Nelson Mandela Bay has 330 anchor days a year. With only an overnight train or truck trip from the major centres of Johannesburg, Cape Town and Durban, these port facilities are ideally situated to meet the needs of all import and export markets. Meanwhile, the South African government has partnered with South Korea to establish a national shipping company. “World sea traffic passes by the Eastern Cape on the East-West pendulum trade routes, opening up major opportunities for ship-building and repairs in the region,” Piti says. Ship building and repairs The world merchant fleet in 2013 comprised 106 833 vessels responsible for shipping goods and commodities between the continents, including visits to the three ports of the Eastern Cape. During 2013, around 5 944 container ships, vessels and tankers were commissioned for construction by various countries. This represents an opportunity for the Eastern Cape to become a marine industrial centre for shipbuilding and repairs. While South Africa’s ship-building industry holds international credibility through its shipyards in Cape Town and Richards Bay, the Eastern Cape’s “world-class industrial manufacturing economy will make the province an excellent contender for future shipbuilding activities in the oceans economy”, Piti maintains. Nelson Mandela Bay and East London dominate South Africa’s automotive industry which means the province is already home to the necessary expertise, skilled labour, logistic services. “But there’s more that can be done,” he says. “The expertise of the industrial base should not only be extended for the ship-building industries but need to be extended further” – augmented by aeronautical components manufacturing, for example. “ Food security The CDC plans to establish a R2-billion aqua-farming facility at Coega. Marine animals and plants such as finfish, abalone and seaweed will be farmed on 300 hectares in the Coega IDZ, creating 5 000 jobs. Nelson Mandela Metropolitan University (NMMU) in Port Elizabeth will be playing a critical role in knowledge generation for maritime and marine industries, Piti says. The university formalised ties with the UN-endorsed World Maritime University (WMU) in Sweden in 2013.

which is operated by Transnet Port Terminals (TPT). Port facilities at Ngqura include a 60-hectare container terminal, Transnet’s solution to South Africa’s longtime shortage of container capacity resulting from the growth in global container shipping. The depth of the channel and its location in the protected Nelson Mandela Bay make it one of the best positioned deepwater ports on the South African coast.

51

EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

Trading places Trade in the Eastern Cape has seen impressive growth in recent years, with the province beginning to realise its export potential.

P

lacing a special focus on export will certainly earn the region points when it comes to making a difference in the economy of the province. This is driven by a large increase in vehicle sales and escalating vehicle export figures. However, small business exports should not be discounted when adding up the numbers. Contributing to boosting trade in the province is the fact that two of South Africa’s five industrial development zones (IDZs) are located on its doorstep, increasing potential revenue by the shipping traffic on route to Europe and the Far East. According to the latest Eastern Cape Socio Economic Consultative Council’s report (ECSECCTP), Trade And Ports Movement In The Eastern Cape, which provides a detailed trend analysis of selected key traderelated statistics for the EC between 1Q2013 and 1Q2015, the Eastern Cape was a net importer of goods and services in 2014, which led to a trade account deficit of R11.9-billion in 2013, down to R8.7-billion in 2014. This poor performance of the trade account was influenced by global market conditions, as it’s volatility had a dampening effect on some industries. Between 2003 and 2014 the Eastern Cape trade balance remained negative, with the exception in 2008, where the province recorded a trade surplus of R1.6-billion, with exports exceeding imports. Looking at how the EC trade account performed over the past decade, the province’s average annual growth of exports was 26.1% over the 10-year period (2005-2014), while the average annual growth of imports was 9.0% in the same period. “The biggest decline in both exports and imports was during the financial crisis in 2009, where exports fell by 42.0% and imports fell by 29.0%. However, in 2011, both exports and imports recovered, with export growth of 17.0% and import growth of 17.4%. In 2014 export grew by 23.9% while import grew by 10.4%,” according to the report. On the provincial and district trade scale, the report reflects that the Eastern Cape had the fourth largest trade flow, which grew from R78billion in 2013 to R90-billion in 2014. In terms of exports, the ECSECCTP revealed that the Nelson Mandela Bay Metro Municipality (MM) constitutes the largest exporter, with exports reaching R38 199-million in 2014. The Buffalo City Metro Municipality was the province’s second-largest exporter at R1 268-million in 2014, followed by Cacadu District Municipality (DM) at R1 101-million in the same period. In 2014, all metro and district municipalities experiEASTERN CAPE BUSINESS 2016

52

enced increased growth in exports. The OR Tambo DM had the least exports when compared to other municipalities, with total exports reaching R8-million in 2014. Europe was the leading export destination for the province’s exports between 2013 and 2014, with exports estimated to be have risen to R16 865-million in 2014. “The second-largest export destination for the Eastern Cape was Asia, with exports estimating to be R12 576 million in 2014. Africa was the third-largest export destination, with exports of R5 435-million in 2014. The lowest export destination for the EC was Antarctica with exports of R2 million in 2014. “The largest share of imports into the EC is from Europe with imports of R24 920-million in 2014. Asia is the second largest region to import into the EC, with imports of R27 383-million in 2014, followed by America, with imports of R5 146-million in 2014. There has been a decline in import numbers across region into the EC, importing


SPECIAL FEATURE

less than they used to import in previous years.” Germany tops the list of top export destination markets for 2014 with R9.8-billion, followed by the United States (R3.8-billion) and China (R3.7-billion), between them accounting for 58.1% of the province’s total exports. Among the top 10 export destinations for South Africa, Japan and the United Kingdom

were the fastest growing markets, increasing by 40.1% and 36.1% respectively. Vehicles, aircraft and vessels accounted for R14.2-billion of all exports, with textiles at R4.1-billion. The top three export products from the province accounts for 73.4% of the region’s total export products. Among the top 10 exports, plastics & rubber were the fastest growing products, increasing by 65.3%, followed by chemicals increasing by 64.2%, according to the report. Looking at the BRICS group, according to the DEDE, China is the leading emerging trade market as it imported most of the Eastern Cape’s exports, followed by India, while Brazil and Russia absorb the least. The Eastern Cape’s basket of imports from the BRIC countries are dominated by value-added goods driven by manufactured products. Interestingly, between 2007 and 2008 the Eastern Cape imported the most goods from Brazil, although this changed in 2010 and 2011 as imports to the region from China surpassed those of Brazil. (Sources: Eastern Cape Socio Economic Consultative Council’s trade report (ECSECCTP), Trade And Ports Movement In The Eastern Cape; www.southafrica.info; www.dedea.gov.za;

53

EASTERN CAPE BUSINESS 2016


PROFILE

Credit comfort assured Credit Guarantee, South Africa’s leading Trade Credit Insurer, has been in business for almost 60 years and is part of the Old Mutual Group. What is Credit Guarantee’s competitive advantage in the industry? Credit Guarantee was established in 1956 and our Diamond Jubilee will be celebrated in 2016. Essentially, we only insure intercompany trade that occurs on credit terms. The supplier (our policyholder) applies to cover their credit sales on each individual customer. We then carefully investigate each of those customers and issue a ‘credit limit’ under which the policyholder is able to supply. We also subsequently monitor their customers’ credit behaviour. As a result of our assistance and involvement, the policyholder is covered against non-payment in the result of their customer proceeding into liquidation, applying for Business Rescue or reneging on payment for a protracted period of time. A policyholder could typically expect to receive 80 cents in the Rand should a claim arise. Credit Guarantee also has a unique ability to assist the policyholder with collecting debts due to them, either through pre-legal mitigation of a potential loss or by implementing formal collection/legal processes. We are renowned for our claim-paying ability (we have an AA rating), as well as our quality confidential information that we hold on numerous companies domiciled inside as well as outside of South Africa’s borders.

ENABLING GROWTH WITHOUT RISK

What are the opportunities going forward and where are the areas of growth? We have produced a specific domestic policy for SMEs and are also following the trend of establishing a significant footprint on the African continent. The SME’S debtors book could range from R500 000 to R10-million and is certainly reaping benefits for all parties concerned. In these uncertain economic times there is increased demand for our product as the market seeks to protect one of its most important and larger assets – namely its debtors book.

In these uncertain economic times there is increased demand for our product as the market seeks to protect one of its most important and larger assets – namely its debtors book.

What have you seen as the exciting developments and potential areas for growth within the Eastern Cape economy? The SME market is really gathering momentum from an entrepreneurial point of view, thus creating muchneeded employment. The primary growth areas in the Eastern Cape continue to be agriculture, transport, logistics, solar and meat.

CONTACT INFO Physical address: 1st Floor Mutual Place, Cnr Cape Rd & Langenhoven Dr, Greenacres, Port Elizabeth Postal address: PO Box 27154, Greenacres 6057 Tel: 041-363-4024 Fax: 041-363-3750 Email: cynthiab@cgic.co.za, cregalink@cgic.co.za Website: www.creditguarantee.co.za

EASTERN CAPE BUSINESS 2016

54


DESTINATION OVERVIEW

Destination Eastern Cape The Eastern Cape has a unique set of natural assets that stretch from the wondrous Wild Coast to the forests of the Tsitsikamma and the vast open spaces of the Karoo.

T

he combined area of the parks and reserves of the Eastern Cape cover a larger land mass than that of the Kruger National Park. The Eastern Cape Parks and Tourism Agency is in charge of 34 nature reserves within the Eastern Cape. The Addo Elephant National Park (Addo) is the jewel in the Eastern Cape’s tourism crown. Covering over 180 000-hectares, the facility attracts more visitors than East Africa’s Serengeti National Park. Addo uniquely offers visitors the opportunity to view the Big Seven, as it has more than 650 elephants, along with the rest of the Big Five combined. The park also includes a marine section where great white sharks and whales can be sighted. The Camdeboo, Mountain Zebra and Garden Route national parks are the other major nature reserves that grace the Eastern Cape. The Garden Route National Park enjoyed an increase of 8.5% in their total guest numbers during 2015, while their total number of day visitors rose an impressive 14.1%. According to SanParks, the Garden Route National Park account also saw a 4.2% increase in its total number of black visitors. The coastal regions offer distinctly different experiences. The Wild Coast is a wonderfully apt description of a part of the province that is popular with locals and international visitors alike, and it includes towns such as Mazeppa Bay and Port St John’s. The Sunshine Coast has hotel and conference centres such as the Blue Lagoon Hotel EASTERN CAPE BUSINESS 2016

56

and Conference Centre (on the Nahoon River in East London) and the Mpekweni Beach Resort (east of Port Alfred), both of which offer function venues in relaxing surroundings. Lastly, the western coast is famous for its golden beaches. These include the surfers’ paradise of Jeffreys Bay as well as St Francis Bay, the latter being home to the prestigious St Francis Links golf course. The golf course is currently rated as one of the Top 10 golf courses in South Africa by Golf Digest magazine. There was good news for the province’s far north when a Johannesburg entrepreneur paid R5.5-million for the Tiffendell Ski Resort near Rhodes. The new owner has managed to revive South Africa’s only ski resort and


DESTINATION OVERVIEW Tiffendell hosted its first ski championships in 2014.

Sports, events and festivals The Eastern Cape tourism authorities are increasingly looking to the sports, events and festivals aspects of tourism as the way to increase the number of visitors to the province and to increase access to the sector for previously marginalised communities. The Eastern Cape hosts the internationally recognised (and gruelling) Standard Bank IRONMAN African Championship triathlon event every April in Port Elizabeth, and the economic impact of the Ironman is said to be more than R40-million. Participation in the IRONMAN has grown from as little as just 786 entrances in 2005 to an anticipated 2 500 in 2016. The Africa Open is proving a successful golf tournament for the Eastern Cape. In the past eight years the Africa Open has only had South African winners, which has been a great honour for South Africa as the host. The Eastern Cape is a haven for those who love watersports as it offers competitions for swimmers and paddlers at the Ocean Racing Series, open-water swimming at the Redhouse River Mile and yacht racing at Hobie Beach. The Billabong MSF Pro Surfing competition is held every July at Jeffreys Bay, which is internationally renowned for its perfectly breaking waves. International points are awarded at the event, which celebrates its 29th year in 2016. EASTERN CAPE BUSINESS 2016

The National Arts Festival is South Africa’s premier arts festival. In 2015 the festival reported an attendance of 241 116 people who attended more than 350 events (in a total of over 1 200 performances) and attracting close to 1 000 stalls. A study by the Department of Economics and Economic History at Rhodes University has shown that about R33-million is brought into the area during the time of the festival. Even though it is a rural area, the Eastern Cape has shown success in the gambling and betting industry. Through the rollout of Bingo machines in the province the Eastern Cape Gambling and Betting Board have surpassed their annual budget by over R18-million, although the industry players in the Eastern Cape receive most of their money from sport betting.

Heritage The heritage and crafts subsectors are other avenues for helping emerging tourism operators to get involved in the mainstream economy. The opening of the Mandela Legacy Bridge near Mthatha in July 2012 was a case in point. In this case, national government has provided the infrastructure (including a new tar road) to enable visitors to get to Nelson Mandela’s birth village, Mvezo. The Eastern Cape Department of Economic Development and Environmental Affairs (DEDEA) injected a little more than half-a-million rand into an ethnic jewellery project in the Baviaanskloof. The project took the work of 47 crafters working with renewable materials and helped them convert it into marketable products.

58


DESTINATION OVERVIEW

Responsible tourism has continued to be a big trend in the Eastern Cape. The Calabash Trust, which is associated with Calabash Tours, prides itself in this particular sector. They have managed to foster relationships internationally and locally, which helps them to involve their local community during their tours. In November 2015 Calabash in Emafini hosted Reed’s College. The Reed’s did a permaculture project and connected with the local schools doing teaching programmes for grade sevens.

Hotels The Eastern Cape caters for all types of visitors, from leisure to business travellers. They have ensured that their visitors’ needs are catered for regardless of their reason for travel when it comes to accommodation. The Eastern Cape has ensured that their hotels meet international expectations and standards. The Radisson Blu Hotel in Port Elizabeth has proven to be a favourite for business travellers, in part because they offer fast uncapped WiFi and larger than usual rooms, all of which provides the perfect environment for executives visiting the region. For those looking forward to a leisurely holiday in the scenic Eastern Cape, a hotel such as the Southern Sun Hemingway would be ideal. The Southern Sun Hemingway is not short of style, warmth or elegance. Surrounded by a number of restaurants, movies, gaming and other attractions, it is also accessible to the Hemingway Mall, which offers one of the best shopping experiences in South Africa. The hotel is in reach of most of the attractions in East London and The Eastern Cape, making it a great destination for the leisure tourist. St Francis Links offers a bit of both worlds, with their choice of estate or village accommodation options. The estate accommodation offers luxury, with its different luxurious homes away from home. The village accommodation still offers a beautiful holiday destination being treated as a VIP at any one of the B&Bs or hosted by friendly people. EASTERN CAPE BUSINESS 2016

60

Business tourism The Plantation in Port Elizabeth has continued to be an awardwinning conference venue. In 2014 the Plantation won the PMR Silver Arrow Award, an award that recognises the workers and the staff for creating the reality that makes The Plantation great. The Eastern Cape also hosts some of South Africa’s best conference centres, the East London International Convention Centre and The Boardwalk International Conference Centre. The Boardwalk International Conference Centre developed an Environment Management System, and its aim is to monitor the environmental conditions and impacts at The Boardwalk. The model they use is internationally recognised, reflecting global standards on good environmental practices. The Boardwalk has made itself open to the Port Elizabeth community having given R804 517 towards different projects such as Khayalethu Children’s home and the Thabo trust.


INTERVIEW

Radisson Blu The Radisson Blu hotel brand is part of the global CarlsonRezidor Hotel Group. Desmond O’Connor is the General Manager of Radisson Blu Hotel, Port Elizabeth.

Desmond O’Connor

What are the most important services that business travelers expect? It’s my firm belief that most travelers want to be connected (and seamlessly at that), but they also want to be able to travel with the least amount of delays or interruptions. The Radisson Blu Brand offers our travelers exactly that as we are one a few brands worldwide that guarantees uncapped complimentary high-speed WiFi. Our express check-in and check-out services, as well as our “Grab and Run” breakfast offering that the business traveler really appreciates. Our rooms are larger than the average hotel room, which offers our guests an excellent working space. The hotel is also very contemporary in design, has a great fitness center as well as food and drink outlets. And, of course, the fact that every single room has a spectacular sea view is another huge plus. The brand also offers an international loyalty program that is valid with Carlson-Rezidor properties worldwide. How important is the Radisson name in terms of winning the confidence of your guests? Radisson Blu is an internationally recognised brand and, with that in mind, it assists the Hotel greatly with regards to both local and international travellers. It is a brand name that is synonymous with being iconic, stylish and sophisticated. The colour blue was chosen because it has positive connotations across the world, as it is associated with inner security and confidence and it symbolises the power to take control to do the right thing, all of which is what the Radisson Blu brand represents. This also gives travellers a sense of confidence when choosing our brand.

BIOGRAPHY Desmond O’Connor played a leading role in the successful opening of the Radisson Blu Hotel at the start of 2014. The launch phase was so successful that the business was profitable within five months from their operational start. He has worked in the hospitality industry since 2000 for some of South Africa’s leading and most prestigious hotel groups and boutique establishments. EASTERN CAPE BUSINESS 2016

How has the Radisson brand helped you to provide international-quality service to guests? As part of the Carlson-Rezidor Group, the Radisson Blu brand has a service ethos called “Yes I Can!”. This ethos is one of the modules of training that every new employee has to undergo and, once completed, assists them in being a true “Rezidorian”. The ethos revolves around the simple philosophy of putting our guests first by empowering our teams to make decisions on their own to the benefit of our guests and employees. The brand also mentors all team members to be attentive, confident and trustworthy. What trends have you noticed in terms of overseas visitors doing business in the Eastern Cape? There has been a significant increase in international corporate travel to Nelson Mandela Bay. This travel entails more project-orientated ventures

62


INTERVIEW FOCUS and these require the traveler to stay for longer periods of time. We are also seeing groups visiting us, rather than individuals. This has had a direct impact not only on the accommodation revenue of the Hotel, but also incremental F&B spend.

HOTEL FEATURES The Radisson Blu Hotel, Port Elizabeth, has Conference rooms ranging from personalised boardrooms for meetings of four people to a large modular ballroom that can accommodate up to 200 guests. The conference venues are high-demand as it is one of the larger venues within the city and has hosted fullday conferences, launches, Government Indabas, wedding receptions and birthday parties. These venues have also played host to numerous international sports teams when visiting the city, serving as team rooms, dining rooms and press conference platforms.

CONTACT INFO Radisson Blu Hotel, Port Elizabeth Physical address: Corner of Marine Drive & 9th Ave Summerstrand 6001 Port Elizabeth, South Africa Tel: 041 509 5000, FAX: 041 509 5001 Email: info.port-elizabeth@ radissonblu.com Website: www.radissonblu. com/en/hotel-portelizabeth

63

EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

A period of positive growth and development The year 2015 marked 60 years since South Africans from all walks of life adopted the Freedom Charter in 1955, in Kliptown, Soweto, as well as the 25-year anniversary of the release of Nelson Mandela from prison and the unbanning of the liberation movements. “They declared amongst other things, that South Africa belongs to all who live in it, black and white, and that no government can justly claim authority unless it is based on the will of all the people,” said President Jacob Zuma.

I

n a year that saw world economic and political uncertainty, South Africans still had much cause to celebrate. Great strides have been made nationwide in building schools and hospitals, major efforts are underway in terms of job creation, skills development, SMME growth, the empowerment of women as well as innovation. After a tough period of loadshedding and energy instability, Eskom seems to have the national grid stabilised as well as solid plans for the expansion of our infrastructure.

National priorities The national government has rededicated itself to eradicating racism and all related intolerances in our country. President Zuma has stated that the country’s ambition of achieving a growth target of 5% by 2019 is at risk because of slow global growth as well as domestic constraints in energy, skills, transport and logistics amongst other factors. However, the situation was more promising on the jobs front as Statistics South Africa’s report on the last quarter of 2014 showed that there were 15.3-million people who are employed in South Africa. “Jobs grew by 203 000,” said Zuma, adding that the economy still needed a major push forward. Zuma also presented government’s nine-point plan to ignite growth and create jobs.

South Africa also hit the world headlines through the discovery of a new species of human relative (“Homo naledi”) at the Cradle of Humankind World Heritage Site, a local doctor successfully completed the world’s first penis transplant, and Trevor Noah captured a slice of America’s cultural empire by taking over as host of Comedy Central’s The Daily Show. EASTERN CAPE BUSINESS 2016

64


SPECIAL FEATURE “A lot has been achieved in the past year. We believe that our nine-point economic intervention plan on the economy will consolidate the achievements, and ignite much-needed growth,” said Zuma. South Africa has the 24th largest economy in the world and contributes 30% of sub-Saharan GDP despite making up only 6.5% of the population. Sound financial management has seen South Africa’s macro-economic fundamentals become very strong off the shaky base that the apartheid regime created. In particular, prudent controls meant that South Africa was able to withstand the shockwaves sent around the world by the international financial-sector meltdown. The country is recognised for an abundance of mineral resources, accounting for a significant proportion of both world production and reserves, and South African mining companies dominate many sectors in the global industry. South Africa produces 10% of the world’s gold (it is estimated that onethird of the world’s unmined gold reserves remain in South Africa). There have been an increase in mineral beneficiation, which the government has targeted as a growth sector.

Economy The discovery of diamonds and gold in the 19th century laid the platform for the development of South Africa as an industrialised economy. Wool, wine and mohair were the country’s only exports before minerals were discovered. Although mining plays a far smaller role in the economy than it used to, it still contributes significantly to GDP, employment and taxation income. Demand for platinum, iron ore and manganese from the new global powerhouses of China and India is motivating investment in the sector in South Africa. Mining companies account for one-third of the market capitalisation (R1.86-trillion) in the country’s stock exchange, the JSE. One of South Africa’s fastest-growing manufacturing sectors, catalytic converters, also owes its existence to the minerals, which are important constituents of converters. One of the central planks of the South African government’s economic policy

National Government’s 9-point growth plan 1. Resolving the energy challenge. 2. Revitalising agriculture and the agro-processing value chain. 3. Advancing beneficiation or adding value to our mineral wealth. 4. More effective implementation of a higher impact Industrial Policy Action Plan. 5. Encouraging private sector investment. 6. Moderating workplace conflict. 7. Unlocking the potential of small, medium and micro enterprises (SMMEs), cooperatives, township and rural enterprises. 8. Reforming state-owned companies, information and communications technology infrastructure, water, sanitation and transport infrastructure. 9. Operation Phakisa, which is aimed at growing the ocean economy and other sectors.

65

EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

is to ensure that value is added to the country’s mineral resources in this way. The country already has many steel mills and aluminium smelters, but many thousands of tons of raw materials are also exported in their raw state. A number of Industrial Development Zones and Special Economic Zones have been set up and promulgated in order to attract investment as well as to increase local manufacturing capacity. The automotive industry is one of South Africa’s most important sectors and accounts for about 12% of South Africa’s manufacturing exports, with many of the major multinationals using South Africa to source components and assemble vehicles for both local and international markets.

age in the country. We are quite aware of the fact that this is indeed a difficult period, but it shall pass because we do have strategies in place to deal with this matter,” Zuma said. Government has developed a sustainable plan that involves short-, medium- and long-term capacity and infrastructure development, beginning with a plan for improved maintenance of existing Eskom power stations, enhancing the electricity generation capacity and managing the electricity demand. The long-term plan involves finalising South Africa’s energy security master plan. “As a priority we are going to stabilise Eskom’s finances to enable the utility to manage the current period,” said Zuma, adding that government was supporting Eskom with R23-billion for the 2016 fiscal year.

Energy Agriculture The country has been through a challenging period during which there have been serious energy constraints. These have proved to be an impediment to economic growth and a major inconvenience to everyone in the country. Overcoming the challenge was uppermost in government’s programme. “Government is doing everything within its power to deal with the problem of energy shortEASTERN CAPE BUSINESS 2016

Agriculture is a catalyst for growth and food security and there is a strong public-private sector drive to develop an Agricultural Policy Action Plan aimed at bringing one million hectares of under-utilised land into full production over the next three years. “Among key interventions this year, we will promote the establishment of agri-parks or coopera-

66


SPECIAL FEATURE tives and clusters in each of the 27 poorest district municipalities to transform rural economies,” said Zuma. An initial funding of R2-billion was made available for the agri-park initiative, while the country’s agro-processing exports are attracting positive interest from new markets in both Africa and China. South African maize and apples are exported to China and projected to yield R500-million in foreign exchange over the next three years.

body’s business. We have to make it work. We have launched the ‘Back to Basics’ programme to promote good governance and effective administration through cutting wastage, spending public funds prudently, hiring competent staff, and to ensure transparency and accountability in municipalities,” said Zuma.

Infrastructure

One of South Africa’s premier museums and tourist attractions is The Cradle of Humankind, an ancient destination that celebrates the fact that presentday South Africa has been home to the ancestors of human species for thousands of years. Early in 2015 a team of archeologists, led by Professor Lee Berger from the University of the Witwatersrand, made a discovery that would pose new and vital questions about the origins of the human species and expand our understanding of human evolution. Two years after they were tipped off by cavers exploring the depths of the limestone tunnels in the Rising Star Cave outside Johannesburg. There Berger and his team discovered what they claimed is the new addition to our family tree. The team is calling this new species of human relative ‘Homo naledi’ and believe that part of their tribal culture was the practice of burying their dead – a behaviour scientists previously thought was limited to humans. The team believes that the chamber, located 30 metres underground in the Cradle of Humankind World Heritage Site, was the burial ground and that Homo naledi could have used fire for light. The discovery was poignant considering South Africa’s energy crisis, but it was also cause for celebrating South Africa’s role in the story of mankind. What lies ahead is an exciting period of growth as the country strives to realise its potential to be the gateway to Africa and, in so doing, helping to unlock the enormous economic and social potential within the continent.

History

The National Infrastructure Development programme continues to be a key job driver and catalyst for economic growth. Major projects include the Umzimvubu Water Project in the Eastern Cape, Jozini Dam in Umkhanyakude in KwaZulu-Natal, projects in Bushbuckridge in Mpumalanga and phase one of the Mokolo Crocodile Water Augmentation in Limpopo. Progress to improve the water supply to areas affected by shortages are underway, but the war against water losses (which costs the country R7-billion a year) is being waged through the Department of Water and Sanitation’s plan to train 15 000 artisans and plumbers who will fix leaking taps in their local communities.

Internal affairs Cabinet has adopted vigorous and integrated interventions to combat the vicious rhino poaching in the country, including continuous joint operations with key neighbouring countries, improved intelligence gathering as well as enhancing protection in parks and provincial reserves. Government has also made substantial progress in establishing a border management agency to manage all points of entry and improve security. To further improve access to identity documents, citizens will now be able to apply for the new Smart ID Card at their local bank due to a partnership between the Department of Home Affairs and some banks in the country. In December 2014, Cabinet released the draft National Disability Rights Policy for public comment. “Local government is every-

Sources: SouthAfricaInfo, BrandSA, Media Club South Africa, The Presidency

67

EASTERN CAPE BUSINESS 2016


KEY SECTORS Overview of the main economic sectors of the Eastern Cape Tourism

56

Agriculture

70

Aquaculture

74

Forestry

76

Food and beverages

78

Automotive

80

Automotive components

84

Specialty gas

86

Energy

88

Education and training

92

Construction and property

96

Water

98

Banking and financial services

100

Small business development

104


OVERVIEW

Agriculture The agricultural sector plays an important role in the lives of many Eastern Cape citizens.

T

here are about 70 000 people employed on commercial farms across the Eastern Cape, with a further 436 000 dependent on smaller farms, mostly in the parts of the province that used to be called the Ciskei and the Transkei. Improving the agricultural yield of the eastern part of the province is seen as vital for improving food security and lifting many thousands of people out of poverty. The Eastern Cape has more livestock than any other South African province. The wool-producing merino sheep and mohair-producing angora goats thrive in the interior and have been a vital part of the national economy for more than a century. Deciduous fruit (Langkloof), citrus fruit (Addo/Kirkwood) and chicory (Alexandria) are important parts of the province’s agricultural mix, but a feature of recent years has been towards diversification. LandEASTERN CAPE BUSINESS 2016

70

usage patterns have changed, for instance, parts of the Amathole and Cacadu districts that used to be sheep or pineapple farms are now stocked with game and are geared towards the hunting and tourist markets. The Eastern Cape provides approximately a quarter of South Africa’s milk, with the industry expanding as producers favour high-rainfall coastal areas such as the Eastern Cape. The province’s farmers sell raw milk to major pro-


OVERVIEW cessors in the region, including Clover and Dairybelle. Clover’s Port Elizabeth manufacturing facility has expanded its UHT milk capacity, while Parmalat’s two Port Elizabeth plants produce long-life milk, UHT custard, yoghurt, flavoured milk and butter. New dairies have recently been established in the East London Industrial Development Zone (ELIDZ) and the Coega Industrial Development Zone (CIDZ).

Livestock Livestock farming is the largest agricultural subsector in South Africa. 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. Standard Bank has made R10million available for a piggery project at the University of Fort Hare. The loan will be used to buy 1 000 sows, as the project is intended to grow the provincial herd. Further, it will provide an additional source of protein and act as a training ground for agricultural managers and emerging farmers. The rich natural grasslands of the Eastern Cape have the potential to produce high-value organic meat, a product that is proving increasingly popular in healthconscious international markets. The Eastern Cape covers it all, from Karoo lamb to CAB-certified free range beef. These niche meat products are leaner, healthier and often tastier than mass-produced

alternatives. High-value meat cuts such as these will drastically increase that value of exports from the Eastern Cape. These meat products are farmed all over the province, with the Border region being a particularly pronounced area beef. However, the cattle commodity is of national concern considering the recent devastating drought. The dorper breed (which are mainly used for meat production) are found in the arid Karoo, while the higher-lying areas are more conducive to the wool-producing sheep. Stats confirm that South Africa has a large meat-eating population, as South Africans consume on average 13.7kg of beef every year, of which lamb or mutton makes up around 3,4 kg per annum.

Crops The Eastern Cape is South Africa’s second-largest producer of citrus fruit. Oranges make up the vast majority of citrus products (80%), but the province is also well-regarded for its production of ‘easy-peelers’ such as clementine and satsuma tangerines, as well as ‘navel oranges’. Citrus farming is one of the province’s priority subsectors for agri-processing and value-adding. Deciduous fruits such as apples, pears and apricots are grown extensively in the province, primarily in the Langkloof Valley. South Africa is the second-largest producer of chicory in the world, after France. Chicory is grown primarily in the coastal areas around Alexandria, between Port Elizabeth and Port Alfred. Bamboo farming is another crop that is seen as important for the future of the province,

71

EASTERN CAPE BUSINESS 2016


OVERVIEW

and three pilot projects for cultivating bamboo have been put in place by the Eastern Cape Development Corporation and the Industrial Development Corporation (IDC).

Cape annually, with a weekly auction held in Port Elizabeth.

Dairy Pineapples With a production of around 80 000 tons per annum, the Eastern Cape is the leading pineapple-producing province in South Africa and, in total, around 90% of the stock is exported. Known as the Sunshine Coast, Port Alfred, East London and Bathurst provide the perfect climate for pineapple growth. As very little watering is required the drought has not really impacted the production line.

Wool Wool is grown across the Eastern Cape and it is the largest wool-producing province in South Africa. Merino, Dohne Merino, Afrino, Letelle and the Dormer and Île-de-France are the most popular sheep breeds for wool. Around 90% of the wool produced in the Eastern Cape is exported to China and various European countries. Around 15-million kilograms of wool is produced in the Eastern EASTERN CAPE BUSINESS 2016

72

The Eastern Cape produces a quarter of the country’s dairy, which makes it the country’s


OVERVIEW

leading dairy supplier. Eastern Cape dairy producers supply all the major brands, including Parmalot, Clover and Nestlé. Dairy is best produced in cooler, coastal areas, although the Karoo has proven to be a major contributor to the province’s production. Jersey and Holstein are the best dairy breeds.

Citrus The Eastern Cape is the largest producer of Citrus in South Africa, and this crop contributes significantly to the provincial economy. The four most popular citrus fruits are categorised as orange, grapefruit, lemons and soft citrus. Addo is the largest producer of lemons in the Eastern Cape as well as South Africa.

Citrus farming is a long process to establish as it can take up to 3-5 years before the trees bear fruit. However, once they do then the trees will usually keep bearing fruit for between 25-30 years.

Mohair As leaders in mohair production, South Africa produces 53% of all mohair globally and, together with Lesotho, 70% of the world’s production. This combined production makes Africa a prominent continent for excellent quality mohair. There are two dedicated Mohair spinners in the Nelson Mandela Metropolitan Municipality, and the majority of the world’s mohair is processed in two plants in the Eastern Cape. Port Elizabeth is home to the biggest mohair broker in the world, Cape Mohair & Wool (CMW), making Port Elizabeth the mohair capital of the world. The Mohair headquarters is located in a high density area in close proximity to the Port Elizabeth Airport, business zones and shopping centres. The producers of mohair are represented by the South African Mohair Growers’ association and the breeders are represented by the Ram Breeders Society, both with their offices situated in Jansenville, the heart of the mohair production area.

73

EASTERN CAPE BUSINESS 2016


OVERVIEW

Aquaculture Fish farming is believed to be the only sustainable alternative to dwindling natural resources.

S

outh Africa has a fairly young aquaculture industry with lowscale production. The government of SA, through its national department of Agriculture, Forestry and Fisheries (DAFF) and other support sectors, are taking steps to accelerate the development of aquaculture to commercial level. Despite this, the wild capture sector remains the biggest contributor to fisheries, leaving 23% of South Africa’s commercial fish resources being overexploited. Realising the industries’ advantages, aquaculture operations in Eastern Cape have received financial support through ‘Operation Phakisa’, launched by the President in October 2014 in line with the National Development Plan as an initiative for unlocking the growth potential of South Africa’s coastline. Government recognises the industry as a way of contributing to food security as it has shown strong growth of 6.5% per year globally. This in addition to promoting aquaculture as a means of addressing poverty, unemployment and over utilisation of wild fish stocks. Over the past year significant strides have been made within the sector, with a total of R410-million in investment having been committed for this sector by government and private sectors. The outcome is that production has increased by 124 tons, an increase of more than 20% from the 2012 baseline (www.operationphakisa.gov.za). The aquaculture industry in the Eastern Cape ranks second only to the Western Cape by virtue of the availability of suitable landbased sites for production, water temperature and the location of industrial development zones (IDZ) in East London (ELIDZ) and Port Elizabeth (Coega IDZ). Both industrial hubs have commenced with the EASTERN CAPE BUSINESS 2016

74

development of an Aquaculture Development Cluster, targeting various stakeholders to invest in abalone culture, abalone ranching, offshore cage culture of finfish, mussel and seaweed production. The main growth in the Eastern Cape has been in marine finfish, which is the farming of fish such as kob and yellowtail. To facilitate this, the ELIDZ have earmarked 30 hectares for such developments. There are currently two farms in the zone, with a combined current production capacity of 200 tons. The aquaculture development and enhancement programme (ADEP) provides funding directly for approved applications for new project as well as upgrades or expansions for existing projects. Several beneficiary fish farms in Eastern Cape have been scaled up and are now fully underway. Among them is:


OVERVIEW •

• The Siyazama aquaculture

cooperative in Hamburg, which proudly produced its first 277kg dusky kob or ‘kabeljou’ harvest in Septemb er 2015. T he Hamburg project has the capacity to produce 20 tons of fish per year. This was achieved in collaboration with Oceanwise (Pty) Ltd (formerly Espadon Marine), the pioneer and industry leader in mariculture in South Africa. It is projected that it will produce 600 tons of fish in 2017 at full capacity based on its current ELIDZ facilities. Pure Ocean aquaculture has been operating for three years in a pre-feasibility phase, similarly working on growing dusky cob of marketable size. They have pumped over R55million into the ELIDZ. By overcoming some technical and

financial difficulties experienced in the past, positive outcomes are expected in the next phase. In 2015, the Department of Environmental Affairs issued authorisation for the development of an aquaculture development zone (ADZ) in Algoa Bay. A 1000t/y finfish facility is planned. The National Department of Science and Technology (DST) have partnered with Irvin & Johnson in running a marine finfish grow-out pilot in the waters of Algoa Bay. Sea cage farming of Yellowtail has being selected for implementation under Operation Phakisa in Algoa.

One of the country’s most impressive aquaculture undertakings is the Graaff-Reinet, Camdeboo Satellite Aquaculture Project (CSAP) in the Eastern Cape. The project has been developed by the Blue Karoo Trust (BKT), which is backed by the Eastern Cape Development Corporation (ECDC) and the Industrial Development Corporation (IDC). The Karoo is set to become the centre of the commercial fish-breeding initiative, which will supply fish for the canned fish market. Over the past five years there has been a substantial drop in Pilchard quota in the region of 80%. In the region of 90% of the South African population eat pilchard, according to the Sarah Baartman District municipality, a leader in promoting investment in the aquaculture sector in this region. An alternative canned fish in tomato sauce will be developed, constituting tilapia, carp or catfish. By 2015, it was anticipated that CSAP would have established several aquaculture clusters and a network of some 35 satellite farming systems. The project has had multiple beneficial effects by boosting the local economy and creating employment. The Eastern Cape is evidently well-positioned to capitalise on growth opportunities in the emergent aquaculture industry, with the potential to develop three mariculture nodes. Importantly, the relatively warm sea temperatures along the Eastern Cape coastline encourages fish to reach market size much faster compared to the colder water further west. The price of suitable land is comparatively lower in the Eastern Cape, as are production costs. An important factor in the potential for the province’s aquaculture industry is the fact that the Eastern Cape is also home to the leading mariculture research institute in Africa, the Rhodes University Ichthyology and Fisheries Science in Grahamstown.

ONLINE RESOURCES Aquaculture Association of South Africa: www.aasa-aqua.co.za Aquaculture Innovations: www.aquaafrica.co.za Aquaculture Institute of South Africa: www.ai-sa.org.za National Department of Agriculture, Forestry and Fisheries: www.nda.agric.za National Department of Science and Technology: www.dst.gov.za South African Institute of Aquatic Biodiversity: www.saiab.ac.za Water Research Commission: www.wrc.org.za

75

EASTERN CAPE BUSINESS 2016


Forestry The Eastern Cape provides the country with a vital source of timber.

A

n industry analysis by Crickmay Supply Chain Evolution revealed the demand for sawn timber increased by a staggering 11% in 2015. Crickmay and Forestry SA (FSA) track the trends of the timber industry and they base the increased demand for timber on exponential growth in the housing sector. However, these plantations face many challenges, chief among them drought, the ongoing issue of land reform, pests, disease and fire damage. More plantations are needed if supply is to meet demand as, by 2037, the country’s supply of timber might be short by as much as seven million tons. Currently the Eastern Cape’s forestry sector comprises 130 000ha of plantations, 46 sawmills, two chipboard operations, 10 pole treatment plants, a veneer plant and six charcoal plants, all of which are collectively responsible for processing around 770 500 cubic meters of timber annually. The region is well-served by wood-processing facilities such as the R1.3-billion board plant outside Ugie that is owned by JSE-listed Steinhoff’s subsidiary company, PG Bison. Another of the province’s major forestry stakeholders is Amathola Forestry, along with their sister company Rance Timber’s Kubusi and Sandile Sawmill near Stutterheim, producing 45 000 cubic metres of sawn board annually. About 75% of the province’s plantations are controlled by the private sector. FSA has set up a Business Development EASTERN CAPE BUSINESS 2016

76

Unit to empower small-scale timber growers. A boost of R3million was received recently from the Fibre Processing and Manufacturing SETA for several projects aimed at empowering and upscaling small-scale timber growers. Fibre availability is the main focus of the forestry development portfolio. Asgisa-EC has identified a total of 100 000 hectares of land suitable for forestry in the Eastern Cape. Realising that forestry is a major employer in the rural areas, the government now looks likely to deliver on a promise to grant water-use licences to emerging plantation owners for this expansion. The industry will facilitate the establishment of these plantations, requiring four-billion to reach full potential. Asgisa-EC has committed R700-million over the


next 15 years. If the project reaches fulfillment, there will be: • 1.8-million cubic metres of new timber • 80%more wood for processing • 40 jobs for every 25 hectares planted This makes the Eastern Cape the only province in South Africa where forestry can be significantly expanded to enhance provincial manufacturing diversification and economic growth in the forestry and wood sectors. Downstream opportunities created by new plantations include a planned treated-pole plant in Butterworth and a paper and pulp mill in Mthatha, which has also been selected as a future furniture-sector incubator. The newly planned 100 000ha of afforestation rests largely on

communal land and it is intended that the new forestry projects will be controlled and managed by formal community entities, supported by strategic partners. Highlighting this endeavour is the paper and packaging group Sappi, a key player in assisting several communities in the Eastern Cape with forestation programs aimed at establishing sustainable community-owned commercial forestry plantations in impoverished communities. In 2013 they assisted in securing a R47.1-million grant from the national Jobs Fund for its Mkambathi, Sinawo and Izini projects. Sappi to date had bought R13.5-million worth of timber from communities in the Eastern Cape and advanced R6-million to communities to assist them in establishing and managing their plots.

ONLINE RESOURCES Forestry South Africa: www.forestry.co.za Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za National Department of Agriculture, Forestry and Fisheries: www.nda.agric.za South African Institute for Forestry: www.saif.org.za

77

EASTERN CAPE BUSINESS 2016


OVERVIEW

Food and beverages The Department of Trade and Industry (dti) has urged the Eastern Cape to take advantage of its agricultural strength to position itself as South Africa’s leading “agro-processing hub”.

U

pstream of the food and beverage industry lies the agroprocessing sector. Eastern Cape has the potential to position itself as South Africa’s leading agro-processing ‘hub’ by virtue of its wonderfully diverse agriculture. There are more than 20 different products and crops ranging from citrus and deciduous fruits, to dairy, vegetables, grains, ostrich products, poultry and livestock. Historically, the Eastern Cape has a strong farming and dairy industry and the province is well-positioned to be the country’s food basket when you consider its location, temperate climate and year-round rainfall. The Eastern Cape has more livestock than any other South African province, produces close to a quarter of South Africa’s milk dairy farming and is the second-largest producer of citrus fruits. Downstream of the food and beverage industry lies agro-processing outputs for both intermediate products (to which further value is added) and final goods, which are marketed through wholesale and retail chains. For these reasons the agro-processing sector is defined in statistical terms by the food-processing and beverage manufacturing sub-sectors, and vice-versa. Despite the seasonal difficulties brought about by the recent droughts, the Eastern Cape has cultivated 65% of its target of 300 000ha of maize, as part of its rural development strategy and its commitment to food security. Furthermore, the province has also supported the production of chicory, pineapples, tomatoes, citrus and deciduous fruit enterprises over an area of 870 ha. The Eastern Cape has continued to increase primary production in support of the initiatives set forward by government a year ago regarding the establishment of agri-parks, cooperatives and clusters to support agriculture development in all districts in the country. The province has continued in strengthening the agricultural value chain; Agri-Parks, which essentially ensure development from primary production through to processing and value addition, have mushroomed in Lambasi, Ncorha, Sundays RiverValley, Butterworth, Matatiele and Sterkspruit-Senqu In the agro-processing sector, meaningful strides have been made through the work done by the province’s Industrial Development Zones (IDZ), with a total of 2 035 operational jobs and 1 188 construction jobs being created. The Agro-Industrial Parks (AIP) will see the clustering of various agri-business role-players, including manufacturers, processors, logistics companies and other complimentary service providers EASTERN CAPE BUSINESS 2016

78

in an eco-friendly manner within the same precinct. The IDZs have attracted companies such as Cape Concentrates, Dynamic Commodities, Espadon Marine and Pure Ocean Aquaculture. Prospective investors involved in the processing of coffee, cereals, protein and energy supplements have also shown a keen interest in the R86-million agro-processing multi-user facility at the Coega IDZ. Work is in progress to expand Coega Dairy and Coega Cheese by 9 500m2. This development is aimed at increasing milk export


OVERVIEW

volumes by 200%, increasing cheese export by 60% and attracting additional foreign revenue into the country. There is further potential in high-quality competitive dairy exports to new markets. The Eastern Cape Development Corporation (ECDC) have disbursed R27-million in development loans and invested R3.8million risk capital for nearly 30% equity in the Ndlambe Natural Industrial Products (Pty) Ltd, which is a pineapple beneficiation company making pineapple juice. This has supported the revival of the Eastern Cape pineapple industry.

The Eastern Cape also retains an impressive portfolio of JSE-listed investors. Clover merged with Dairybelle in a bid to expand its product portfolio range and reentered the yoghurt market in the first quarter of 2015. Clover Mama Afrika, Clover’s corporate social investment project, also received the Diamond Arrow Award by the Performance Management Review (PMR) earlier this year. The PMR award recognises the company’s attributes such as commitment to communities, job creation, and social upliftment. The country’s largest poultry producers, RCL-foods and Sovereign Food, have chicken facilities in the Eastern Cape – the poultry sector makes up a quarter of the national agricultural GDP. As the price of maize (which constitutes the bulk of a poultry companies’ cost base) begins to rise, profit margins are being challenged. RCL foods reported that the single-biggest operational feature of the 6-month period ending December 2015 was the severe drought, which had a pervasive impact on the business. They are in the process of developing proactive pricing strategies designed to protect market shares.

79

EASTERN CAPE BUSINESS 2016


Automotive The Eastern Cape is home to four of the seven OEMs operating in South Africa and up to 100 major component manufacturers, and is without doubt the backbone of the economy in the area.

E

astern Cape-based international vehicle assemblers include Mercedes-Benz in East London, General Motors and Volkswagen in Nelson Mandela Bay and Ford - which produces engines for the domestic and international market at its plant in Port Elizabeth The Eastern Cape manufactures half of the country’s passenger vehicles and provides 51% of South Africa’s vehicle exports. The sector accounts for over 40 000 formal sector jobs in the Eastern Cape – 10 000 employed at original equipment manufacturers (OEMs) and an additional 30 000 employed by some 1500 supplier companies. Mercedes-Benz South Africa Mercedes-Benz South Africa (MBSA) added yet another milestone to its long association with the country when the 125 000th truck rolled off the assembly line at its plant in East London towards the end of 2015. The first truck was assembled at the then Car Distributors Assembly (CDA) in East London in 1962. CDA, the company that would evolve into MBSA, opened its doors in 1948 and was contracted in 1958 by DaimlerBenz to assemble Mercedes-Benz products. Since then, the commercial vehicles division of MBSA has assembled the Unimog, Mercedes-Benz buses, FUSO trucks, Mercedes-Benz trucks and Freightliner trucks. Goodhope Ncapo, MBSA Divisional Manager for Commercial Vehicles: “As the assembly team, we have clear and stringent processes that we never deviate from. This has meant that our plant is rated as one of the best in the world. We pride ourselves on world-class quality and unmatched reliability. As we all witnessed today on the production line, we only produce trucks that our customers will be more than satisfied with,” adds Ncapo.

EASTERN CAPE BUSINESS 2016

80

The 125 000th truck from the assembly line, a Mercedes-Benz Axor 3335, was handed over to one of Mercedes-Benz Trucks’ most valued customers – Aqua Transport and Plant Hire. The Euro III Axor will soon be part of Aqua’s increasing and exclusive Mercedes-Benz fleet, operating as a water tanker. “As Mercedes-Benz Trucks, we are proud that the 125 000th truck to be assembled by our plant in East London is being handed over to Aqua Transport and Plant Hire. It gives us great joy to know that our exceptional quality MercedesBenz vehicles, such as the reliable Axor, are contributing towards the growth and success of Aqua and that our vehicles offer our customers a competitive advantage,” says Clinton Savage, Head of Mercedes-Benz Trucks. “It is fitting for us to do this handover here at our plant, an impressive facility that reinforces


our legacy of reliability, safety and outstanding workmanship. We are not only here to celebrate this truck, but also the long-standing relationship we have developed with Aqua. “The 125 000th truck forms part of a bigger order of 165 Mercedes-Benz trucks, which makes this one of the largest single orders for our trucks. This is only possible because the quality measures and processes from our plant are remarkable,” adds Savage. Facts and figures • Total value of automotive component exports for 2015 amounted to R45.7-billion. • There were 148 global export destinations for South African component exports. • Total South African vehicle exports in 2015 amounted to 276 873 units, with a total value of R70-billion.

• Industry contribution to GDP in 2015 was 7.2% • The biggest market for South African automotive component exports in 2015 was Germany. Eastern Cape automotive opportunities: • New component manufacture – potential exists for investment into component manufacture in support of the automotive industry in the province. • Catalytic converters – business opportunities exist for investment in stainless steel, ceramic core and assembly operations directly related to the catalytic converter industry based in Port Elizabeth. • Automotive tooling, parts and components - opportunities exist for businesses to invest or expand in the areas of tooling, jigs, assembly lines, auto and safety glass, plastic automotive fittings, engine parts and rubber and plastic components. • The Automotive Supplier Park (ASP) at the East London IDZ is now operational and offers attractive opportunities to component manufacturers in particular. • Business opportunities in the automotive component cluster co-operation with established first and second tier suppliers for storage solutions, JIT distribution, research and development and training initiatives. • New vehicle manufacture - the Eastern Cape has been identified as a potential investment destination for a new electric car production and assembly plant for both domestic market and export. The Eastern Cape offers excellent location advantages coupled to access to SADC and African markets.

81

EASTERN CAPE BUSINESS 2016


PROFILE

Daimler opens new Regional Centre for Commercial Vehicles in Southern Africa Mercedes-Benz South Africa is expanding its operations in southern Africa to take advantage of growth opportunities in the industry.

Kobus van Zyl and Dr Wolfgang Bernhard.

M

ercedes-Benz South Africa (MBSA), along with its brand divisions Daimler Trucks & Buses and Mercedes-Benz Vans, strengthened its continued drive for excellence and customer dedication with the opening of the Regional Centre Southern Africa (RCSA) in February 2016.

ments. This will help us to further tap the growth potential of this emerging region,” said Dr. Wolfgang Bernhard, member of the Board of Management of Daimler AG responsible for Daimler Trucks & Buses. Clear focus on commercial vehicles Based in Pretoria, South Africa, the Regional Centre Southern Africa will be a catalyst in ensuring highly efficient business processes and an even higher level of customer satisfaction. MBSA and its parent company Daimler AG are confident that the Regional Centre Southern Africa is poised to provide excellence and ultimately a competitive advantage to its growing number of southern African-based customers through superior products and custom value chain offerings. “Having a stronger presence in the southern African markets means that we are able to react faster and be in touch more frequently with our

The RCSA will be responsible for Daimler’s full commercial vehicles portfolio in the region, ranging from the full offering of Mercedes-Benz Vans, heavy-duty Mercedes-Benz trucks and buses as well as the uniquely suited products (trucks and buses) from FUSO. The Regional Centre Southern Africa will be responsible for South Africa, Namibia, Botswana, Zimbabwe, Mozambique, Malawi, Zambia, Lesotho and Swaziland. “Opening our new Regional Centre Southern Africa, we are able to respond even faster to our commercial vehicle customers and their requireEASTERN CAPE BUSINESS 2016

82


PROFILE commercial vehicles customers and the various General Distributors in the respective countries,” said Kobus van Zyl, Executive Director: Daimler Trucks & Buses Southern Africa. “The RCSA provides further opportunities for all our commercial vehicle endeavours, including sales, after-sales, marketing, client services and parts.”

Regional Centres being opened for Daimler’s commercial vehicles business around the world. In February 2016, the Regional Centre for East, Central, and West Africa started its operations from its base in Nairobi, Kenya. The first Regional Centre had been opened in October 2015 in Dubai as Daimler Commercial Vehicles Middle East North Africa (DCV MENA). Similar bases will follow for South Asia, Southeast Asia and Latin America during the course of 2016. In the past, Daimler had managed these regions primarily from its group headquarters in Stuttgart. Further decentralisation will keep the business even more in tune with the market. The many years of product and service-related expertise pay off in this respect just as much as the broad portfolio of products offered by the group’s various commercial vehicles brands.

Long-term potential Southern Africa is a promising growth region for all of Daimler’s commercial vehicles. In line with the global outlook, the region is facing a tough economic cycle but is still expected to grow at a rate of 3.75% in 2016. Improved external prospects and domestic policy improvements will support gradually stronger growth rates from 2017, with the regional average back up to more than 4.5% annually during 2018-2020. Moreover, southern Africa possesses large reserves of untapped natural commodities such as copper, oil and gas. In 2015, Daimler sold approximately 5,500 trucks and buses in the region.

CONTACT INFO Physical address: Wierda Road (R576/M10 West), Zwartkop, Centurion Postal address: PO Box 1717, Pretoria 0001 Tel: 012 677 1500 Website: www.mercedes-benzsa.co.za

About the Commercial Vehicles Regional Centres The Regional Centre Southern Africa is the third of six

From the left: Dr Nuno Sousa, Bob Crossley, Kobus van Zyl, Dr Wolfgang Bernhard, Francisco dos Santos and Kelvin Windell.

83

EASTERN CAPE BUSINESS 2016


OVERVIEW

Automotive components The Eastern Cape has earned its reputation as the “Detroit” of South Africa because of its world class infrastructure and port location, allowing for the easy access to global networks.

C

ar production is the economic anchor for the province, having the highest concentration of motor manufacturing firms and component suppliers in Nelson Mandela Bay (NMB) – earning the city the appellation “Automotive Hub of Africa”. The region produces half of all motor vehicles made in South Africa, and is home to four of the country’s seven Original Equipment Manufacturers (OEMs) namely General Motors SA (GM), Volkswagen (VW), the Ford Engine Plant and China’s foremost vehicle manufacturers, First Automotive Works (FAW). Implementation of several significant energy farms in the Eastern Cape delivers unmatched energy security to the manufacturing sector, mitigating setbacks by Eskoms loadshedding. PetroSA’s Project Mthombo will change the industrial face of the province. Project Mthombo, a $10-billion 300 000 barrels/day oil refinery, is set to come on stream in the Coega Industrial Development Zone around 2022 spurning massive opportunities. The proposed “utility island” serving the refinery will include a desalination plant and power station, which will channel excess capacity into the city’s water and electricity supply networks, enhancing industry’s ability to do business. The development of special economic zones within the province has been a game changer for South African manufacturers. The development zones offer investors existing infrastructure, access to port facilities, dedicated customs support, duty-free importation for raw materials, zero EASTERN CAPE BUSINESS 2016

84

VAT rating for locally sourced materials and various tax and incentive schemes. Promoting industry clustering within the zones leverages the commercial potential of particular regions. The Port Elizabeth, Coega and East London Industrial Development Zones (IDZ) provide state-of-the-art Automotive Supplier Parks to world renowned suppliers that currently manufacture components for leading OEMs. The Coega Development Corporation (CDC) earmarked 306 hectares of land for automotive manufacturing industrial activity through its recently unveiled five year strategic plan, which will embrace an OEM industrial clustering approach. A multi-OEM complex for the automotive assembly and components manufacturing sectors has been established in Zone 2


OVERVIEW of Coega IDZ to date. The grouping of automotive component suppliers in this new ‘Nelson Mandela Bay Logistics Park’ (NMBLP) has played a vital role enhancing the region’s automotive footprint. The multi-OEM complex will accommodate vehicle assembly halls and shared service infrastructures. The intention is to bring together first, second and third tier automotive component suppliers in one megaautomotive zone. A further notable achievement by CDC includes the establishment of China’s FAW vehicle assembly plant on a 40 hectare site in Zone 2 of Coega IDZ. FAW became operational in July 2014 when the facility was officially opened by the President. Pressure is been placed on OEM’s to improve their local content to 70% in order to negate the costs of importing components using long supply chains, and as a measure to weather fluctuating currencies. The local South African automotive industry finds it increasingly difficult to compete with such global manufacturers due to the low percentage (on average of 35%) of local content in the vehicles produced in the country. Linked to affordability, an opportunity which may deserves a lot more attention by the SA automotive sector is the

development and manufacturing of an affordable and unique “African Vehicle”, according to Gustav Meyer, CDC business manager. The vehicle should have a high local content and should offer passenger and 4x4 derivatives to meet Africa’s particular demands. According to the Automotive Industry Development Corporation (AIDC), there are close to 100 major automotive component manufacturers in the Eastern Cape. Leading component suppliers based in the region manufacture and export almost all of the components required in a vehicle, including seating, lights, harnesses, injection moulding, engine components, batteries, exhausts, catalytic convertors, tyres, glass, radiators, wheels, car radios and axles amongst others. The tyre and rubber products industry is also well represented by multinationals Goodyear, Continental Tyre and Bridgestone, while several multinational catalytic convertor companies (10 in total in the NMB metro) produce a sizeable percent of global demand for catalytic convertors. In 2014, General Motors SA in partnership with component manufacturer Tenneco South Africa was awarded a R6-billion contract and began to export catalytic converters to the US and Europe. Germanbased company Friedrich Boysen GmbH & Co KG has recently made its first multimillion-rand automotive investment in the province. It aims to produce 90 000 complete exhaust system units per annum for the new Mercedes-Benz South C-Class, at the new manufacturing plant in East London’s IDZ. The demand for “clean air” vehicle emissions from all major economies has resulted in sizeable expansion in the catalytic convertor industry. Carbon–emissions tax serves to drive the demand for these devices responsible for converting pollutant gases into less harmful ones within the vehicle’s exhaust system. However, the industry relies heavily on platinum mined locally, and suffered setbacks during the crippling and protracted mining strikes in 2014. Research into alternate catalysts has resulted in several technologies and materials showing promise with respect to platinum replacement in catalytic convertors. This will shift the reliance away from platinum group metals, placing the South African catalytic convertor industry at risk. Factor in electric vehicles and hybrids, and a drop in demand by the automotive industry can be predicted – at least for use in catalytic converters.

85

EASTERN CAPE BUSINESS 2016


OVERVIEW

Specialty gas The launch of a new industrial and Specialty Gas plant in the Eastern Cape has changed the face of the industry in the province forever.

T

he demand and supply side of industrial gas is strong in the Eastern Cape and it continues to play a pivotal role in the growth of the industry in the province. The Eastern Cape is the perfect location to grow such an industry, in particular thanks to the support of the Coega Industrial Development Zone (IDZ), as specialty gas is playing a consistent and growing role in most industrial processes. Industrial gas pioneers Air Products have, in fact, positioned their national investment strategy around the Eastern Cape. The trailblazing specialty gas and chemical manufacturer, supplier and distributor invested a weighty R300-million into a high efficiency and reliable state-of-the-art air separation unit (ASU) a few years ago. In so doing they changed the face of the gas industry in the province forever. This investment also went a long way towards re-shaping the industrial future of the province. This ASU is one of 16 similar investments (plants) in South Africa to benefit from the company’s long-term capital investment strategy and it shows huge potential to further stimulate the Eastern Cape’s demand and market growth. On top of the gas-list is the supply of liquid oxygen and nitrogen to meet the needs of local industry. EASTERN CAPE BUSINESS 2016

86

Paving the way for the longawaited localised industrial gas supply for the Eastern Cape, Air Products (the largest tonnage supplier of industrial gases in South Africa) introduced to the province a full bouquet of process gases when it committed to ensure the sustainability of gas supply for years to come. The company’s identified markets for growth (including automotive and component manufacturing and fabrication, food and beverage, agro-processing and their related value chains) are well aligned with the sectors prioritised for growth in the Eastern Cape’s provincial industrial development strategy. This is especially the case as liquid oxygen and nitrogen play


OVERVIEW a key role in the metals processing sector for cutting and laser applications. Metals processing supports diverse industries, including the manufacture of renewable energy components, another key sector where the Eastern Cape is driving industrial growth. “As an industrial gas company, we were ecstatic to note the Coega Development Corporation’s (CDC) acknowledgement of what we have long known: that for industry, gas is the fourth corner in a quadrant of utilities essential for doing business,” said Mike Hellyar, MD of Air Products SA. “Like the essential elements (air, fire, water and earth), industry needs water, electricity, fuel and gas for production. The concept of industrial or specialty gas as a utility is an appreciation of its consistent and growing role in most industrial processes. Gas is literally in everything we do - and Air Products has proven this across the industries we serve; from automotive to agro-processing, pharmaceutical to petro-chemical, and a range of manufacturing applications in-between.” According to Hellyar, to classify industrial gas as a utility is a logical step, simply meaning that the product is always available when required.

“For example, when a customer requires nitrogen, all they have to do is open a valve and the product is there ‘on tap’, because we have provided a direct pipeline. Essentially, this is what defines the term ‘utility’: requirements are met at the push of a button.” CDC business development executive manager, Christopher Mashigo, hailed the arrival of the ‘fourth utility’. Air Products says it has been keeping a close eye on the economic stability of the Eastern Cape over the years, especially watching how the Coega IDZ gained traction as it racked up significant investments. “Establishing our air separation unit in the Coega IDZ is a clear indication of local industry’s need for gas, previously and precariously delivered by long-distance trucking. We have seen the value of establishing this new plant after the signing of our neighbouring IDZ tenant, First Automobile Works (FAW), as a customer. Several more are still under negotiation.” It is anticipated that more companies will position themselves in and around the Air Products plant at Coega and that they too will experience the service difference many others are currently enjoying. This will contribute to the full realisation of industrial gas as a fourth utility for the Coega IDZ. The positioning of the air separation unit in the Coega IDZ gives Air Products the opportunity not only to serve existing industrial gas users better in terms of security of supply, but it also presents two further opportunities: to assist existing users in reducing costs and improving efficiency, and secondly, to showcase the benefits of gas to non-traditional users. This will stimulate demand and open up new markets for industrial gas, with positive knock-on impacts on industrial activity and economic growth in the region. Agro-processing, for example, is a growing sector in the Eastern Cape and has been identified by both provincial and national government as a key sector for industrial development. There are significant opportunities for players in this sector to reduce energy costs and improve both processes and product quality by using industrial gas as a supplement or replacement for existing methods such as mechanical freezing. Industrial gas is now primed to replace and improve traditional methods in this sector and others in the province.

87

EASTERN CAPE BUSINESS 2016


OVERVIEW

Energy The Department of Energy in the Eastern Cape has taken a determined approach to lessen electricity constraints and its negative effects on industry.

T

he Department of Energy has initiated a two-fold approach in their efforts to ensure the province is able to rely on a constant source of energy for private and public sector business as well as for public household consumption. In response to electricity supply constraints and price increases, and on the back of existing cost pressures and market demand challenges, a rapid response team has been setup to engage with industry on the mitigation of the negative impact of outages. Second, with respect to electricity provision, they are expanding the transmission and distribution network to address historical imbalances, provide access to electricity for all and to support economic development. Last year the Department of Energy allocated R723-million to the Eastern Cape for 37 550 Eskom connections. In addition to this, municipalities had been allocated R285-million for 15 544 connections. In total, 95% of the country’s electricity supply comes from Eskom and this is generated through its coal power plants. The Eastern Cape has five power stations, but none of them are major power generators. The Port Rex power station in East London is a peak-demand facility that can generate 171MW. The Eastern Cape’s Department of Energy is making significant progress in positioning the province to become one of South Africa’s energy hubs. The coastal province has a number of natural advantages: a long coastline with strong wave power, lots of sunlight and consistent winds off the sea. Government needs to find an alternative source of energy to achieve its targets in terms of additional power capacity, adding around 40 000 megawatts by 2030. National government’s renewable energy procurement programme gained momentum with a host of independent power producers (IPP) biding to supply power to the national grid. A total of 47 wind, solar, and mini-hydro projects have been awarded 20-year contracts to generate electricity.

Wind Wind farms in the Eastern Cape that are currently transporting components that have been sourced from India, China and Germany include Metrowind van Stadens (just south of Port Elizabeth), Mainstream’s Jeffreys Bay Wind Farm, African Clean Energy Developments/Suzlon’s wind farm near Cookhouse, and Red Cap’s Kouga Wind Farm near Oyster Bay. The Coega Industrial Development Zone (IDZ), which houses the EASTERN CAPE BUSINESS 2016

88

deepwater port of Ngqura, is suitable for receiving wind turbine components for wind farms due to their large size. Aptly, it is recognised as the Eastern Cape’s wind energy gateway. The Eastern Cape’s Energy Department have made the Jeffrey’s Bay Wind Farm the biggest in Sub-Saharan Africa. It started generating electricity in mid-2014 and is expected to supply enough clean, renewable energy to meet the needs of over 100 000 households in the province. Furthermore, well over 45% of the total project value of the Renewable Energy Facilities in the Eastern Cape have been allocated for local procurement, and the intention in this regard is to stimulate the development of localised industries and the green economy. As South Africa attempts to capitalise on employment opportunities afforded by the green economy, the renewables sector is seen as a key driver towards achieving its green growth aspirations. The Van Stadens wind farm has reached completion and will see 26 megawatts of energy being produced pumped back into the grid. The project is a major part of the government’s push towards renewable energy solutions and all of the companies involved are experts in the renewables industry. Van Staden’s Wind Farm is situated 30km west of Port Elizabeth


OVERVIEW (the city is conveniently known as South Africa’s ‘windy city’), on the Klein Rietfontein farm, at the southwestern extremity of the Nelson Mandela Bay Municipality (NMBM). MetroWind, the 100% South African company, is a specially formed entity designed specifically to develop the Van Stadens Wind Farm. After the government announced its IPP (Independent Power Producer) programme, and MetroWind was selected as a preferred bidder in the tender process, the company formed another new entity called Rubicept (Pty) Ltd, which is the project company for the Van Stadens Wind Farm. Rubicept was responsible for the development, operation and maintenance of the wind farm. Early last year the facility reached completion and the 27MW wind farm started commercial operations and supplying electrical power to the regional grid. The wind farm facility features nine 3MW turbines, each with a hub height of 90m and employing three 56.5m blades. The project will offset 80 000 t/y of carbon dioxide and water, and will generate 80 000 MWh/y of electricity, which is enough to power 5 000 to 6 000 homes. Rubicept subcontracted Edison Power to handle the electrical work on the Van Stadens wind farm project. The Edison Power Group is the oldest electrical contracting company in South Africa and specialises in wind and solar engineering, procurement and construction (EPC). While providing unrivalled electrical expertise to this project, Edison Power is also benefitting by moving one step closer to its goal of being the biggest and best electrical con-

tractor in Africa by 2017. The company is the largest electrical contractor in the Eastern Cape, with a client portfolio profiling the provinces largest developments such as Hemingway Mall, The Boardwalk Casino and Umtata Hospital, to mention but a few. Edison Green is their renewable company and they work in collaboration with Suzlon, the fifth-largest wind energy company in the world.

Solar Edison Power is negotiating with another IPP who use photovoltaic Technology (PV) for power generation. This partnership would create solar farms that are emission free and carbon neutral. Social responsibility is at the top of this company’s agenda for encouraging the conservative generation and use of energy. Of the 47 renewable energy facilities contracted nationally under the renewable energy program, 27 are solar PV plants. Last year Scatec Solar scheduled the commissioning of a new plant in Burgersdorp, and the 75MW plant has panels mounted on single axes, enabling them to track the sun and optimise electricity generation by a further 20 %. A pilot solar-powered project saw 3 000 shacks in the Nelson Mandela Bay municipality get solar power for lightning and the charging of cellphones. Eastern Cape’s Energy Department intends to install 4 355 solar connections in Mbhashe, 1 180 in Ngcobo and 4 000 in Matatiele.

Hydropower Hydropower is a viable alternative to fossil fuels, with the Eastern Cape realising the benefits of using water to generate electricity. However, the largest of the province’s four hydropower stations, Colley Wobbles in the Mbashe catchment area (maximum capacity 42MW), has been ineffective due to rising silt levels. Completion of the Umzimvubu Dam and its associated hydroelectric plant will also ensure considerable energy gains.

Gas reserves The discovery of shale gas reserves in the Karoo Basin may offer another opportunity, although this is subject to close inspection of possible environmental risks associated with its extraction. Research conducted in partnership with the Nelson Mandela Metropolitan University in 2015 will provide insight and understanding for the potential of shale gas as a viable energy resource. It will further enable the provincial government to plan for optimal socio-economic and environmentally responsible outcomes.

89

EASTERN CAPE BUSINESS 2016


OVERVIEW

Van Stadens Wind Farm MetroWind (Pty) Limited is a Special Purpose Vehicle (SPV) company formed for the express purpose of developing the Van Stadens Wind Farm project.

T

he Van Stadens Wind Farm outside Port Elizabeth in the Eastern Cape started construction in September 2012, with the first turbines erected the following year, providing vital power to the Nelson Mandela Bay municipality. The farm boasts nine 3-megawatt wind turbines, accounting for nearly half the 10 percent renewable energy target planned for Nelson Mandela Bay, and providing power for around 5 000 homes according to reports. The project is aligned with the Department of Energy of the Republic of South Africa’s Renewable Energy Independent Power Producer procurement programme and Integrated Resource Plan, and will mitigate existing Eskom grid losses in the area, as well as greenhouse gas emissions. The potential of the “windy city” Located in one of the best wind energy areas in South Africa, the project uses state-of-the art technology and is designed to minimise any negative impacts on the environment and its neighbours. Local community members will share in the benefits of the project through a 5% interest held through the MetroWind Community Trust. A further 1.5% of annual revenue will be directed towards socioeconomic and enterprise development projects. The wind farm will not only create facilities and jobs, but also increases knowledge and skills and provide a strategic opportunity to foster a community that is uniquely positioned to benefit from the growth of sustainable economic development. The Wind Atlas for South Africa In March 2012 South Africa released The Wind Atlas for South Africa, EASTERN CAPE BUSINESS 2016

90

helping to identify other suitable wind energy sites in the Eastern, Western and Northern Cape provinces, and collating some 30 years’ of wind data. A website displays wind speed, frequency, direction and estimated power output, and will be regularly updated as new measurements become available. South Africa has excellent wind energy sites located along its coast and in several inland areas. Also participating in the project are the South African Weather Service, the University of Cape Town’s Climate System Analysis Group, and the Council for Scientific and Industrial Research. The Technical University of Denmark’s wind energy department is also assisting with expertise, while funding is provided by South Africa’s Department of Energy, the Danish Embassy in SA, and the UN Development Programme’s Global Environment Facility.

CONTACT INFO Contact Physical address: Metrowind Van Stadens Wind Farm, 14 Rose Street, Central Port Elizabeth 6065 Tel: +27 41 505 8000 Fax: + 27 41 585 3437 Email: info@metrowind.co.za Website: www.metrowind.co.za


Edison Power Group Founded 34 years ago, the Edison Power Group is the oldest electrical contracting company in South Africa. The Edison Power Group specialise in electrical installations in all aspects of the electrical industry including commercial, industrial, HV and LV reticulation, township reticulation, fibre optic installations, live line installations, smart metering, wind and solar EPC and substation and transformer installations in the Eastern Cape. This company is the largest electrical contractor in the Eastern Cape area and is regarded as the trendsetter in the electrical industry. EPE has completed projects such as the Wild Coast Sun, The Hemingways Mall, The Boardwalk Casino, Umtata hospital and Hemingways Casino. Their most recent involvement in renewable energy initiatives was to be the preferred bidder for the Van Stadens wind farm project in the Eastern Cape.

Green energy

Edison Green, the company’s renewable wing, is involved with the fifth-largest wind energy company in the world, Suzlon. They are currently also in talks with another IPP who uses PV (Photovoltaic) Technology for power generation. This would create solar farms which are emission free and carbon neutral.

ID and Passport Technology

With an increased need for enhanced citizen security globally, more governments are making the decision to implement digital identity solutions to replace traditional paper documentation. New generation e-passports, e-driving licenses and national e-identity cards are all part of the technology programmes currently being developed.

Supply Chain Management Software Supply Chain Management Software offers their clients the flexibility to track and adapt quickly to supply and demand, optimise inventory, labour, resources and space and to improve perfect order rates.

Smart meters

The Edison Power Smart Metering Division has an alliance with Itron, which is the world’s leading provider of energy and water management solutions for utilities with 10 000 employees.

Transmission and Distribution

Their Transmission and Distribution division specialises in the erection of transmission and distribution lines. They have an alliance with KEC international and Quanta services, two multinational companies with resources to capture the booming transmission and distribution projects throughout Africa which has got a potential value of over R 100 Billion over the next 10 years as Africa drives its energisation programme.

www.edisonpowergroup.co.za


OVERVIEW

Education and training The Eastern Cape has a wide range of educational institutions, but the strategic focus of the public and private sector is increasingly moving toward skills training that is relevant to the needs of the economy.

A

mongst the goals of the National Skills Development Strategy are to train 1 000 workers in skilled trades per year and upgrade the National Certificate (Vocational) to the extent that it comes to be accepted by all employers as a valued certificate. Sector Education and Training Authorities (SETA) form an important part of South Africa’s master plan to tackle skills development – sourcing funds to support placement of Technical Vocational Education and Training (TVET) students to gain workplace experience as part of a contribution to youth development in the province. Each SETA is responsible for a Sector Skills Plan. The Eastern Cape is home to four universities, and the University of South Africa (Unisa) has satellite facilities at a few locations across the province. Three of the province’s universities are comprehensive universities. The Southern African Regional Universities Association defines comprehensive universities as being midway between a traditional university (offering formative degrees) and a university of technology (the latter are more focused on vocational and technical programmes). Nelson Mandela Metropolitan University (NMMU), Walter Sisulu University (WSU) and Unisa all offer diplomas and degrees with a mix of vocational and academic programmes. Based in Port Elizabeth, NMMU has six campuses (one of which is loEASTERN CAPE BUSINESS 2016

92

cated in George) and seven faculties. Its broad mix of qualifications is well-illustrated in the faculties of Engineering, the Built Environment and Information Technology. WSU has five faculties: Education, Heath Sciences Business, Management Science and Law, Science, Engineering and Technology. The Fort Hare University is South Africa’s leading institution in agricultural sciences, with several research programmes underpinning its dramatic rise in research outputs and transformation since 2000. Rhodes University in Grahamstown has more than 30 units, including the institute for Environmental Biotechnology and the institute for Social and Economic


OVERVIEW

Research (ISER). The journalism school is a leader its field. The university has a capacity of 6 000 students (the majority of which live in residences) of which 25% are post-graduates. However, its academic and research staff of 320 hold more than 265 masters and doctoral degrees between them.

school of about 450 learners (also located in Grahamstown) has a strong rowing programme and helped to develop the skills of Andrew Thompson, one of the four South Africans who brought home gold in the London Olympics. The Eastern Cape is home to a number of traditional boy’s schools, including Queens’s College in Queenstown, Dale College in King William’s Town, Muir College in Uitenhage and Grey High School in Port Elizabeth. The agricultural school in Cradock, Marlow, not only has a deservedly high reputation for farm education, but also consistently turns out one of the country’s best schoolboy rugby teams, despite being a relatively small school. Like many other centres of black educational excellence, Healdtown Comprehensive suffered severely during the apartheid era. Institutions like Lovedale Public TVET College and St John’s College in Mthatha set high standards for their learners. These schools are the focus of the Historic School Restoration Project. Steel manufacturer ArcelorMittal is a partner in the construction of a new primary school in Mthatha. The R47-million Mandela Park Primary School will be built using alternative building methods, thereby reducing the cost and reducing environmental impact. In the past 22 years of democracy, tremendous strides have been made in transforming education. More than 90% of learners in public schools benefit from the non-fee policy. Grade R classes are attached to more than 90% of primary schools. Enrolment for learners with special needs increased by more than 7 000 compared to previous years, rising from 12 000 to 19 000. The transformation plan aims to improve the system by increasing the number of functional schools by appointing capable principals to lead schools and to ensure that no school is without a principal. Other goals are for strengthening the administration and management of curriculum delivery in public schools, improving the quality of primary education through a number of intervention including training of educator and use of Information and Communication Technology (ICT). The province’s school-nutrition programme feeds 1.6-million children, while the transport programme delivers approximately 56 461 children to 614 schools.

College Schools Grahamstown is something of an educational centre, with Kingswood College, Graeme College and Rhodes University all located in “The City of Saints”, a reference to the large number of churches. The St Andrew’s College private

The Eastern Cape has eight Technical Vocational Education and Training (TVET) colleges: Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College, most of which have more than one campus. There are 20 000 students enrolled at this level in the province. TVET colleges provide skills training to equip students for the workplace. Courses offered range engineering, business and marketing studies to haircare, bricklaying and welding.

93

EASTERN CAPE BUSINESS 2016


OVERVIEW As the leading college in the important centre of Mthatha, the King Sabata Dalinyebo TVET College, located in the Eastern Region of the Eastern Cape Province in the O.R TAMBO District municipality serves 28% of the Eastern Cape population, offers business and engineering studies among its formal programmes, and short courses in bricklaying and computer studies. The Eastcape Midlands TVET College has five sites: in Graaff-Reinet and Grahamstown and three in Uitenhage, where students can study Business Studies, Electrical Engineering, ICT and Computer Science and Mechanical Engineering. The other campuses specialise in Business Studies. Lovedale Public TVET College serves the community through three campuses at King William’s Town, Alice (120km from East London) and Zwelitsha, near King William’s Town. The programmes at each campus reflect the economic priorities of that region. In Alice, the focus is on agriculture, King William’s Town offers business diplomas, while engineering is available to students at the Zwelitsha facility. Buffalo City TVET College, with two large campuses in East London and Mdantsane, specialises in Business and Engineering for full-time studies, but offers a wide range of part-time courses as well. The college’s School of Occupational Training is located at St Marks Road. The provincial government has committed a sum of R1.5-billion over five years to aligning TVET colleges more closely with the needs of the local economy, using the institution of ‘learnerships’ to bridge the divide between education and employment. The Eastern Cape has 295 centres of adult basic education and training (Abet), at which approximately 43 724 adults attend classes.

Sector Education and Training Authority (SETAs) The Premier of the Eastern Cape oversees the Eastern Cape Provincial Skills Development Forum. Memorandums of understanding (MoU) have been signed with several SETAs to promote skills development in the province. A R20-million MoU with the MerSETA (Manufacturing, Engineering and Related Services) will see learnerships and apprenticeships introduced throughout the province. MerSETA has a big role to play in the Eastern Cape, home to so many of South Africa’s automotive and automotive parts companies. The authority is involved in the National Tooling Initiative and artisan training, especially with regard to creating a skilled workforce for the Coega Industrial Development Zone. MerSETA helped establish the Centre of Excellence for Welding at the Eastcape Midlands TVET College in Uitenhage. The Master Artisan Academy of SA, Electric Welding Limited Company (ESAB), and Industrial Welding Supplies have signed an agreement whereby they will train more qualified welders. A national programme of the Local Government SETA (LGSETA) offers learnerships in auditing to municipal employees. In the OR Tambo EASTERN CAPE BUSINESS 2016

94

District, the LGSETA catered for 15 water and waste learnerships, 15 municipal finance certificates and 38 municipal leaderships development programmes. Other SETAs active in OR Tambo were the services SETA and the CathsSETA (Culture, Tourism, Hospitality and Sport). CathsSETA has placed students in Bidvest and Tourvest subsidiary companies and sent eight unemployed young people to Joburg to attend a Level 5 General Travel course. A Career Expo has been held in conjunction with the KSD FET College and the Masumpa Heritage Hub. Courses with direct relevance to the Eastern Cape such as ‘hunting, trapping and related services’ are offered, as are more widely applicable hospitality courses like Event and Conference Management. Campaigns such as the Shoprite Special Project are able to target particular groups in need of skills development, in this case 1 000


OVERVIEW unemployed people. The Wholesale and Retail SETA (W&RSETA) regularly offers courses to levy-paying organisations in company business operations and skills development, and has completed several learnerships for unemployed people.

Company training With the automotive sector playing such a pivotal role in the provincial economy, it is no surprise that the leading companies are actively involved in training. Volkswagen has a multi-faceted approach to training, ranging from support for the VWGSA International Chair in Automotive Engineering at the NMMU to a ‘Future Skills Project’, which aims to develop skills in the automotive sector, in partnership with the National Department of Labour, MerSETA, FET colleges and Volkswagen dealerships. The Automotive Chair provides support for the research projects of engineering students, and includes an exchange programme with Germany. A large part of Volkswagen’s training efforts are focused on its five learning academies in Uitenhage. Open to employees and to suppliers, the academies’ programmes are SETA-accredited. Each academy offers a range of courses that can be taken through workshops, exercises, e-learning or on-the-job-training. Volkswagen Community Trust’s annual budget for education is spent on children in the early childhood development stage, through programmes such as: Edu-Peg,

Primary School Maths Programme, Maths and Science Programme with NMMU, Innovative Youth Programme with the Eastcape Midlands College, Rally to Read Computer labs at schools in the Nelson Mandela Metro, Tyre manufacturer Goodyear has an engineering training facility in Uitenhage, with a focus on the training of instrument technicians. The Border-Kei region receives 45% of the corporate social investment budget of the East London-based Mercedes-Benz South Africa (MBSA). The R3million facility is accredited by MerSETA and caters for millwrights and electrical trades in the first phase of its development. Several companies within the tourism sector play a role in training the next generation of chefs and hotel managers. Premier Hotels does this through its Academic College SA. Professional Cookery and Beverage Management are among the diplomas on offer. The resuscitation of the railway line between East London and Mthatha (Transnet’s Kei Rail project) has resulted in a need for qualified rail personnel, and the Centre for Rail Studies at Walter Sisulu University, offering courses in track mastery, train management and train driving. The Provincial Department of Transport is committed to a ‘skills revolution’ that supports 700 pupils in mathematics and science classes, along with a further 83 with bursaries to pursue transport-related courses at tertiary level. The provincial government is also giving bursaries for training in Air Traffic Navigation Services. Boeing Commercial Aviation has signed a pilot training agreement with 43 Air School. With the Eastern Cape offering “clear skies” and African air travel on the increase, the school aims to qualify 300 pilots a year from its three campuses at Port Alfred, Bhisho and Lanseria in Gauteng. The Air School had been contracted to provide pilot training for the South Sudan People’s Liberation Army. The South African Maritime Safety Authority (SAMSA) is investigating the feasibility of establishing specialist maritime schools in South Africa’s coastal provinces, including the Eastern Cape.

95

EASTERN CAPE BUSINESS 2016


OVERVIEW

Property and construction The local government is placing a big emphasis on local development, from rural areas through to developing dynamic new commercial spaces.

T

he Eastern Cape Planning Commission (ECPC) was appointed in 2014 to facilitate, under the National Development Plan (NDP), flagship initiatives, central to rural development and land reform. To achieve this end, the Eastern Cape MEC for Human Settlements, Ms Helen Sauls-August, announced that an amount of R2.2-million would be spent on human settlement developments through to the end of 2016. A large portion of the budget will be spent on houses to be built in rural areas, in addition to upgrades of Informal Settlements. In 2015 the department successfully met their annual target of building 12 979 housing units. They are equally excited to be associated with programs that define the post-apartheid geography in this country through reversing spatial inequities and urban deficiencies. Exemplary is the high density development node by Nu-Way Housing developments, a mammoth project which aims to alleviate the Nelson Mandela Bay Metro housing backlog by construction of 38 000 units in Coega Ridge just outside Port EASTERN CAPE BUSINESS 2016

96

Elizabeth by the beginning of 2018. This will set the benchmark for the biggest fully integrated, mixeduse residential development in South Africa.

Construction Delivering new infrastructure is a top priority for national and provincial government. This has contributed to a buoyant construction sector in the Eastern Cape, employing more people than any other province in the last three years. Efforts have been made to bolster


OVERVIEW expansion of the ports, as well as rail line upgrades that will mean that jobs in the construction are likely to be of a more permanent nature. There have also been major private sector initiatives include, such as the Rebosis Property Fund (Billion Group) development of the 73 000m2 Hemingways Mall in East London, a super-regional shopping centre that cost more than R1.5-billion. However, the jewel in the Eastern Cape construction crown is the R6-billion Baywest City development in Port Elizabeth. A joint venture between Abacus Asset Management and the Billion Group, the development hosts one of the province’s three green-rated projects, with a commercial office block due to open towards the end of 2016. East London also saw recent activity in the commercial space in the shape of the Gillwell Taxi Rank Park (a 22 260m2, three-level shopping centre) that opened its doors for trade in November 2015. Built at a cost of R316-million, the Park was developed for the Dipula Income Fund by Isinonelo Property Services and the Eris Property Group, reports SAPropertyInsider. The concept behind the development was to bring together retail and public transport in seamless synergy under one magnificent, modern roof. “It creates a city centre shopping environment that has never before been experienced by retailers and shoppers in the East London CBD,” said Izal Petersen, CEO of Dipula, who expects foot traffic through the centre to be in the region of 1.5-million customers per month.

Residential property

skills training in the construction sector through programmes in Civil Engineering, Architectural Studies and Construction Management offered by the Nelson Mandela Metropolitan University (NMMU) and supported by the Construction Industry Development Board (CIDB). Economic Development, Environmental Affairs and Tourism (DEDEA) attributes the growth in this sector in the Eastern Cape to expansion in the industrial development zones at Coega and East London. Here, Transnet has committed significant funding to

Pam Golding Properties CEO Andrew Golding reported than house prices in the Eastern Cape increased by 33%, as reported in Destiny Man. “We have seen coastal house price inflation slowing more recently. At the beginning of 2014 we saw a brief period of buoyant house price growth and activity, but now, apart from prime ocean-front properties – which are a market of their own – the market is characterised by house price inflation, which has slowed to 5.3% compared to 6.1% for non-coastal properties,” said Golding. “The surge in black buyers in East London in the Eastern Cape (which now comprise 57% of our sales since March this year) and Summerstrand (Port Elizabeth’s sought-after beachside suburb) where we have just opened a new office to meet the growing demand for houses in an area which, in 2014, saw year-on-year sales rise by 33%.” Destiny Man also reported an increase in demand for homes listed above the R1.5-million mark. This increase in demand can be attributed to the strong growth in the local automotive industry, in addition to a number of mega-developments that the Nelson Mandela Bay metro area has in the pipeline. In 2015 the number of homes selling above R5-million in East London doubled, with sales being registered in prestige areas such as Nahoon, Nahoon Mouth, Abbotsford and Bunker Hill.

97

EASTERN CAPE BUSINESS 2016


OVERVIEW

Water The Water and Sanitation department has had to resort to extreme measures earlier this year in order to bolster water supply in the drought-stricken Eastern Cape.

I

n order to combat the alarming water shortages, the measures brought about by the Eastern Cape Department of Water and Sanitation (DWS) include siphoning water 530km away from Katse Dam in Lesotho to Aliwal North, obtaining a total of 10 giant water tanks (18 000L capacity) and refurbishing 25 boreholes in Mbashe, as well as the stockpiling of water in Mdantsane in Buffalo City. These water shortages have led to the development of the Eastern Cape Water Master Plan, in an effort to alleviate the drought situation in the province. Addressing the media in March 2015 at Buffalo City’s metro (BCM) East Bank water treatment site, the Water and Sanitation Minister , Nomvula Mokonyane said “almost 2% of the communities are unserved with water in BCM but there are interim interventions such as water tanks doing water distributions”. Amatola Water chief executive officer Lefadi Makibinyane said the problem could be a result of infrastructure failures. Technical teams from Amatola Water were sent to the troubled areas to investigate the cause of the water crisis. An Operations and Maintenance agreement was entered into between department of water and sanitation (DWS) and Amatola, as the primary service provider. Amatola Water manages the water supply’s bulk water infrastructure across 50 000 square kilometres, encompassing the district municipalities of Chris Hani and Amathole, together with portions of other municipal areas. Backlogs in rural areas and smaller municipalities are still prevalent, and this water authority is playing a key role in reducing and eradicating these inequalities. In the 2016 new financial year, DWS approved a budget of R6.09-million, which includes the Hyacinth project. The invasion of the aquatic weed needs to be controlled and, if unchecked, will disrupt water systems throughout the province. Importantly, clearing water hyacinth can provide significant volumes of biomass for the creation of alternative bioenergy. The imposed water restrictions this year means Eastern Cape planners need to be innovative in their search for new water sources. The process of desalination is increasingly being used as a way to provide fresh water for human use. The most widely used method follows the process of reverse osmosis. Seawater is pumped into a plant where semipermeable membranes and pressure are used to separate dissolved matter and salts from the water. Veolia has been commissioned to renovate the desalination plant at Bushman’s River Mouth, South Africa’s biggest reverse-osmosis plant. However, given its drawbacks, the most widely held belief is that desalination should be used in conjunction with other EASTERN CAPE BUSINESS 2016

98


OVERVIEW water-saving mechanisms such as waste-water reclamation. This treated water is especially suitable for industrial use. The Municipal Green Drop Certification Programme was introduced in 2008 as an incentivebased regulation of waste-water quality and wastewater management systems in South Africa. The Buffalo City local municipality and Nelson Mandela Bay Metropolitan Municipality have both been recipients of the green drop accolade. In the government’s quest to address clean water provision challenges in the province, is the building of a dam using the Eastern Capes Umzimvuba River. This proposal has taken centre stage and has been detailed as part of the governments Infrastructure Development Plan going forward. The R12-billion mega-project entails the construction of two multipurpose dams, Ntabelanga and Laleni Dams, on the Tsitsa River, which is a tributary of the Mzimvubu River, to supply irrigated agriculture, domestic and industrial water requirements, and hydropower generation in the Mzimvubu River Catchment. In his 2015 State of the Nation address, President Zuma announced that the Umzimvubu Dam project was progressing well and that it was expected to be completed by January 2018. A project management office based in Mthatha is being set up. This will help to increase the project’s momentum. With respect to the provision of water infrastructure in the province, through the Regional Bulk Infrastructure Grant, a total of R1-billion was allocated for 2014/15 covering 14 projects under construction. More than R3,4-billion is allocated over the period between 2015/16 and 2017/18. As a result, a number of bulk water supply schemes are due for completion during this calendar year. These include the Greater Mbizana Bulk Supply Project at Mbizana, costing R1,1-billion, the Mncwasa Bulk Water Supply costing more than R295-million, and the Xhora Bulk Water Supply at Mbhashe costing more than R660-million. Strides towards improving socio-economic status in the municipality, include 40 water and sanitation multi-year contracts to the tune of R1,5billion have been awarded. The expenditure to date is R650-million, prioritising 999 villages in and around Mathatha, where previously no access to water services had been available. EASTERN CAPE BUSINESS 2016


OVERVIEW

Banking and financial services The Eastern Cape’s strong agricultural sector is attracting attention from banks.

A

young Scotsman who came to Port Elizabeth to teach in a government school left an astonishing legacy: not only did John Paterson start Grey High School and the EP Herald newspaper – both of which are still going strong – he also established Standard Bank in 1862. Standard Bank now operates in 32 countries (20 in Africa), has nearly 69 000 employees and assets in the region of $16-billion. Standard Bank has a strong presence in the province where it was formed, and together with the other banks, consulting companies and other firms in the financial and business services sector, it is responsible of 19.2% of provincial Gross Domestic Product (GDP, StatsSA). This sector, which employs 141 000 people, was expected to grow at just more than 3% in 2015/16. Merchant banking and investment banking are the most competitive sectors within banking, and several international banks have a presence in South Africa. In the retail banking sector, Standard Bank is one of South Africa’s Big Four, which also includes Absa, First National Bank (FNB) and Nedbank. Despite really tough economic conditions EASTERN CAPE BUSINESS 2016

100

in recent months and years, this group increased headline earnings by 12.5% in the second six months of 2015, to R33.8-billion. Profits across the Big Four totalled R73.8-billion in the year, according to a survey done by PWC (Major Bank’s Analysis). Some of the figures published reflect the strain that consumers are feeling: credit impairments went up by 10.8% and non-performing loans also grew. Competition is stiff in developing new strategies to incorporate the emerging second economy and the largely rural “unbanked” communities. These new banking


OVERVIEW means and methods are developing the sector and giving it new flexibility, diversity and range. Among the leaders nationally, and in the Eastern Cape, is Capitec, a bank that only opened its doors in 2001 and listed on the JSE in 2002. Although the “Big Four” is still a meaningful expression, it is clear that Capitec is very ambitious. As of August 2015, Capitec had 691 branches, a rapid increase over the benchmark figure of 500 that was achieved in January 2012. With 98 branches in the Eastern Cape, and in the context of other banks closing down some rural branches, this is a banking business that is clearly on the move. In 2015 the bank had 6.7-million clients, up from 3.7-million just three years earlier. Capitec has 11 000 employees. Investment company PSG Group is one of the biggest investors in Capitec and is a majority shareholder in PSG Konsult, a financial services company. Like other companies of its type, PSG Konsult is present in the big Eastern Cape towns, but it also has a presence in regional centres such as Middelburg and Aliwal North. From the Karoo Midlands towns of Graaff-Reinet, Cradock, Adelaide and Somerset East, the firm of Gerber, Botha & Gowar dispenses financial advice across large parts of central South Africa. In Port Elizabeth there is a geographic concentration of financial services: the city’s own financial district stretches along a section of Cape Road from Mill Park to Newton Park and includes the

Greenacres shop and office complex. Here can be found the offices of PSG Konsult, Liberty Life, Alexander Forbes, Hollard and Momentum. Only AON appear to buck the trend, with offices in Central. Also on Cape Road and in the Greenacres complex is FNB’s regional office, FNB Newton Place. This building houses all of the FirstRand group’s offices, such as Rand Merchant Bank, FNB Private Clients and FNB Online. The agreement that Absa Business Bank (ABB) signed with agricultural company BKB allows farmers to borrow money against their produce. The bank flagged the event as the precursor to a possible future agricultural bank. With ABB’s experience in the agricultural field, and BKB’s access to 19 000 primary producers, the agreement can unlock a considerable amount of investment in the agricultural and agri-processing sector. BKB has a national presence, but its headquarters are in Port Elizabeth. It is active in many spheres and has a strong wool and mohair profile. Absa Business Banking has developed a database where potential service or good suppliers can be identified and verified. The Procurement Portal will include details about black empowerment status and tax clearance. Absa also supplies short-term financing to SMME vendors. Another source of funding for rural projects is the Eastern Cape Rural Development Agency (ECRDA). Loans are available economically viable business projects. ECRDA funding is not available for infrastructure or goods that the Comprehensive Agricultural Support Programme (CASP) programme of the Department of Agriculture can finance through grant funding. ECRDA is an accredited agent of the National Department of Agriculture and has been identified as the principal implementing agent in the Eastern Cape for the MAFISA loan scheme. This is targeted at small communal farmers and those who want to move on from being a subsistence farmer. Women, young people and farm workers who want to start small farming operations are also eligible for loans.

101

EASTERN CAPE BUSINESS 2016


INTERVIEW

Nedbank driving local development Siphamandla Ndhlovu, Regional Business Head: Business Banking (Eastern Cape), talks about how Nedbank is playing its part in the growth of businesses in the province. What major deals has Nedbank Eastern Cape worked on recently? In December 2015, Nedbank increased its lending facility to Da Gama Textiles P/L in East London. This was done in collaboration with the IDC, who provided a guarantee as security against the facility awarded to Da Gama. This joint initiative has enabled the company to continue trading under tough market conditions and, as a result, it has kept close to 620 people in their jobs. Further lending to the Humansdorp Co-op was paid out in January 2016 to assist the Co-op with its expansion plans. The Co-op looks after about 1254 member farmers in the region of the Eastern Cape. These farmers contribute to the employment levels of the province and also ensure food sustainability for the region and the country. The bulk of their trade is in citrus, dairy and fresh produce for local and export markets.

employed in these companies. The province has been identified by government as the energy hub and it was mentioned at the State of the Province address that one solar energy project and 16 wind energy projects worth R33.7-billion have been awarded to independent power producers in the Eastern Cape. Furthermore, the Coega IDZ continues to expand and attract investment which is really good news for the province and its people, although the state of the education system remains a concern. The tourism sector may bring about hope to the province. There is the Ironman competition every April, which normally attracts thousands of visitors from across the globe to the Bay. Also, some planned national rugby events will have a positive impact. Agriculture remains an opportunity, depending on the drought levels going forward. R129-million has been allocated by the Government to assist farmers in the Eastern Cape. With the pending interest rate hikes, the subdued local economic environment will continue in the shortto medium-term due to reduced consumer spending. Business growth may be difficult to achieve. And, for the banking sector, we would need to stay close to our clients to provide support where necessary.

What is the short- to medium-term outlook for the local economy? Economists have mentioned that unemployment rate was at 36% in the Eastern Cape (third quarter, 2015 – 25.5% nationally). As a result of the high unemployment level, business activity has been generally subdued. Industry sectors like construction, retail, What are the opportunities for SMMEs in the manufacturing and construction-related profes- next five years? sional services like architects, engineers and quantity Alternative energy sources like solar and wind surveyors have been showing a lot of strain lately. provide an opportunity for small businesses in the Furthermore, suppliers to government parastatals or Eastern Cape and in particular, Port Elizabeth. The departments have been under pressure due to de- Eastern Cape is abuzz with tourist attractions, inlayed payments. The effect of the under-performing cluding the fact that the nation’s legend, Nelson mining sector is felt in the inland region of the Eastern Mandela comes from this province. The rand weakCape as migrant labourers from the Eastern Cape who ening against the dollar has worked in favour of the are in the majority continue to lose jobs. international community from developed countries. On the positive side, the motor manufacturers like The Coega IDZ has earmarked space for an on-land Mercedez-Benz in East London, VW, GM and Ford in fish farm. Measures have been taken by government PE continue to invest billions in their plants, which to bolster Agric and Agro-processing. Infrastructural augers well for the majority of the population who are support through road repairs and construction is EASTERN CAPE BUSINESS 2016

102


INTERVIEW

What are your goals for the years ahead? Our main focus in 2016 is in agriculture, an area in which we have historically not been particularly active. We now have three business managers, one based in Port Siphamandla Ndhlovu Elizabeth, another based in Humansdorp and the third located in East London. All three are supported by an planned. Sheep/livestock farming for developing agricultural specialist who supports them on client farmers remains an opportunity. visits, deal presentation and market analysis. We have seen an exponential growth already in this area of our How does Nedbank personalise their services? business in the past two years since we have become We offer a relationship-based model. Through a per- active in this space. The farmers enjoyed our presence sonalised relationship with one point of contact at at the Komga Show in October last year, which is a the bank, who is supported by a multi-skilled team in show we continue to sponsor. We will continue to credit and sales support, we are agile enough to offer leverage off the relationships that we have formed bespoke services. We also pride ourselves in having with the farmers so far. a good understanding of the local market in general, In East London, we have moved to a new Nedbank which enables us to make informed and speedy de- campus site; which has given us as Nedbankers tocisions. This is supported by the fact that our credit tal control of our building. We have client functions teams are decentralised and, with our local mandate, planned for our clients to come and learn more about we manage to make over 60% of the credit decisions what we have to offer the market. Similar functions will within the region. continue to take place in our Port Elizabeth offices. We have some exciting new innovations out of our Card In what ways does Nedbank help Acquiring and Transactional Banking businesses that their customers to grow? we will be sharing at these functions. Our philosophy on why we are in business is that we are here to take our clients’ businesses to the next For more information, visit www.nedbank.co.za level, thereby ensuring they move closer to achieving their dreams. There is always a bigger picture about any client’s business in terms of aspirations. CONTACT INFO Through the personalised relationship, we seek to Physical address: Ground Floor, Nedbank understand the client’s long-term goals and assist Campus, 270 Cape Road, Newton Park, Port them in achieving these goals. Listening is at the Elizabeth 6057 core of our strategy and our relationship managers Postal address: PO Box 27570, Greenacres 6055 are upskilled to be – and to be seen as – trusted Tel: +27 (0)41 393 5899 advisors for our clients. For struggling clients we do Fax: +27 (0)41 393 5802 offer account payment moratoriums from time to Email: SiphamandlaN@nedbank.co.za time, depending on the client’s risk profile, in order Website: www.nedbank.co.za to help them through a rough patch.

103

EASTERN CAPE BUSINESS 2016


OVERVIEW

Development finance and SMME support The promotion of SMMEs is a local, provincial and national priority, and several agencies exist to support small businesses and entrepreneurs who want to start a new venture.

T

he National Empowerment Fund (NEF) provides financial support to ventures over a broad range of financial requirements (from R250 000 up to R75-million) for start ups, the expansion of existing business, as well as the acquisition of equity across many sectors. In the Eastern Cape, the NEF is supporting companies working in the fields of solar energy, restaurant franchises and transport. An amount of R44-million has been allocated to Velevuthu Agricultural Consultancy, a broad-based BEE initiative presently engaged in contract-growing for chicken processing entities such as Crown Chickens (Pty) Ltd, a subsidiary of Sovereign Foods Limited.

The Industrial Development Corporation (IDC) is extremely active in the Eastern Cape, and several development agencies receive support from the IDC: • N els o n Man d ela B ay Development Agency: strategic spatial implementation framework.

Somerset East is home to a new ultra-light aircraft project, courtesy of the Blue Crane Aeronautical Development Project, with backing from the IDC.

EASTERN CAPE BUSINESS 2016

104


OVERVIEW • Blue Crane Development

Ag e n c y : B l u e C r a n e Aeronautical Development Project – a new airport at Somerset East and an ultralight aircraft project. Nkonkobe Development Agency: the revival of the Kat River Citrus Project.

Other support initiatives in the Eastern Cape include: • Vektronix, East London television manufacturer: R64-million loan for expansion. • Auspex Properties, Port Elizabeth: R160-million loan for black-owned 170-room hotel operated by Radisson Blue.

• Bio-ethanol plant, Cradock: pre-implementation phase. • Blueberry farm, Stutterheim: R45-million investment. Mercedes-Benz South Africa (MBSA) had previously established an initiative called the Siyakhana Project along with its partners the Border-Kei Chamber of Business and the German Government’s PublicPrivate Partnership fund. Recently, Siyakhana launched the Siyakhana SME Project with the Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism to promote SMME health and sustainability in the Eastern Cape. The Eastern Cape Development Corporation (ECDC) provides SMMEs access to business support services and has in the past dedicated as much as R100-million in loans towards SMMEs operating in the Eastern Cape. Two of the ECDC’s seven business units are devoted to small business: Development Finance and Enterprise Development. The ECDC has several financial products tailored to meet the various needs of business, entrepreneurs and investors, ranging from short-term to long-term finance and small- and micro-loans. The ECDC and the Technology Innovation Agency (ITA) jointly run the TIA-ECD Innovation Seed Fund Programme, which aims to identify and co-fund earlier stage technology innovation projects in the Eastern Cape. The Eastern Cape Rural Finance Corporation (ECRFC) has a dual mandate: to financially support agricultural enterprises and to encourage private sector investment in rural areas. The Small Enterprise Development Agency (SEDA) is an agency of the National Department of Trade and Industry, and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It often helps small businesses draft applications for loan finance. Seda’s main provincial office is East London, with nine other offices located throughout the province. Several of Seda’s technology incubators are in the Eastern Cape. Port Elizabeth is the head office of the Chemin incubator which supports SMMEs in the downstream chemical sector. Furntech (a furniture incubator) has a branch in Mthatha and there are also construction incubators in Mthatha and Port Elizabeth. The SEDA Nelson Mandela Bay ICT Incubator (SNII) promotes entrepreneurship in the ICT sector. It also supports several small companies in subsectors ranging from hardware and software to graphics and web and systems analysis. Since 2015, the SNII incubated 10 new ICT and tech start-ups which have show a 25% growth for its clients over the year. The Nelson Mandela Bay Business Chamber has a section devoted to SME support on its website and offers mentorship to start-ups and entrepreneurs. The Border-Kei Business Chamber is similarly supportive. The Hope Factory is an initiative of the South African Institute of Chartered Accountants (SAICA), which gives support to small business. More than 250 companies contribute to the programme that has supported more than 1 000 people over 11 years.

105

EASTERN CAPE BUSINESS 2016


LISTING

South African National Government An overview of South Africa’s national government departments. President

Department of Arts and Culture

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 323 8246 Website: www.thepresidency.gov.za Website: www.economic.gov.za

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza Bopape streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3000 Fax: +27 12 440 4485 Website: www.dac.gov.za

Deputy President Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 323 8246 Website: www.thepresidency.gov.za Minister in the Presidency Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 300 5795 Website: www.thepresidency.gov.za Ministry in the Presidency responsible for Women (Minister of Women in the Presidency)

Department of Basic Education Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X9034, 8000 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Website: www.education.gov.za Department of Communications Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival Street), Hatfield, Pretoria 0001 Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 473 0000 | Fax: +27 12 462 1646 Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs

Address: East Wing, Union Buildings, Pretoria 0001 Postal address: Private Bag X931, Pretoria 0001 Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473 Website: www.women.gov.za

Address: 87 Hamilton Street, Arcadia, Pretoria 0083 Postal address: Private Bag X802, Pretoria 0001 Tel: +27 12 334 0705 | Fax: +27 12 326 4478 Website: www.cogta.gov.za

Minister for Public Service & Administration

Department of Correctional Services

Address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 Website: www.dcs.gov.za

Address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 Website: www.dcs.gov.za

Dept of Agriculture, Forestry and Fisheries

Department of Economic Development

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria Tel: +27 12 319 7319 | Fax: +27 12 319 6681 Website: www.daff.gov.za

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & Esselen streets, Sunnyside, Pretoria 0001 Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 | Fax: +27 12 394 0255 Website: www.economic.gov.za

EASTERN CAPE BUSINESS 2016

106


LISTING Department of Defence and Military Veterans Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001 Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 | F ax: +27 12 347 0118 Website: www.dod.mil.za Department of Energy Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001 Postal address: Private Bag X96, Pretoria 0001 Tel: +27 12 406 8000 Fax: +27 12 319 6681 Website: www.energy.gov.za Department of Environmental Affairs Address: Environment House, 473 Steve Biko and Soutpansberg Road, Arcadia, 0083 Postal address: Private Bag X447, Pretoria 0001 Tel: +27 12 310 3537 | Fax: +27 086 593 6526 Website: www.environment.gov.za Department of Finance Address: 40 WF Nkomo Street, Old Reserve Bank Building, 2nd Floor, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 323 8911 | Fax: +27 12 323 3262 Website: www.treasury.gov.za Department of Health Address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria 0001 Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165 Website: www.doh.gov.za Department of Higher Education and Training Address: 123 Francis Baard Street, Pretoria 0001 Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 | Fax: +27 12 323 5618 Website: www.dhet.gov.za Department of Home Affairs Address: 909 Arcadia Street, Hatfield 0083 Postal address: Private Bag X114, Pretoria 0001 Tel: +27 12 432 6648 | Fax: +27 12 432 6675 Website: www.dha.gov.za

Department of Human Settlements Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001 Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Website: www.dhs.gov.za Department of International Relations and Cooperation Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria 0001 Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 1000 Fax: +27 12 329 1000 Website: www.dirco.gov.za Department of Justice and Correctional Services Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard Streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 | Fax: +27 12 406 4680 Website: www.doj.gov.za Department of Labour Address: 215 Laboria House, cnr Francis Baard and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X499, Pretoria 0001 Tel: +27 12 392 9620 | Fax: +27 12 320 1942 Website: www.labour.gov.za Department of Mineral Resources Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007 Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3000 Fax: +27 86 624 5509 Website: www.dmr.gov.za Department of Police Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001 Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2812 Website: www.saps.gov.za

107

EASTERN CAPE BUSINESS 2016


LISTING Department of Public Enterprises

Department of Social Development

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001 Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1000 Fax: +27 12 431 1039 Website: www.dpe.gov.za

Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001 Postal address: Private Bag X904, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 086 715 0829 Website: www.dsd.gov.za

Department of Public Service and Administration

Department of State Security

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria Postal address: Private Bag X884, Pretoria 0001 Tel: +27 12 336 1700 Fax: +27 12 336 1809 Website: www.dpsa.gov.za

Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001 Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700 | Fax: +27 12 367 0749 Website: www.ssa.gov.za

Department of Public Works Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street Postal address: Private Bag X65, Pretoria 0001 Tel: +27 12 406 21978 Fax: +27 086 276 8757 Website: www.publicworks.gov.za

Department of Sport and Recreation South Africa

Department of Rural Development and Land Reform Address: 184 Old Building, cnr Jeff Masemola and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 9300 Fax: +27 12 323 3306 Website: www.ruraldevelopment.gov.za Department of Science and Technology Physical address: DST Building, Building No 53, CSIR South Gate Entrance, Meiring Naude Road, Brummeria, Pretoria 0001 Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6300 Fax: +27 12 349 1041/8 Website: www.dst.gov.za Department of Small Business Development Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside, Pretoria 0001 Postal address: Private Bag X84, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 1006 Website: www.dsbd.gov.za EASTERN CAPE BUSINESS 2016

Physical address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street, Pretoria 0001 Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 7196 / 086 644 9583 Website: www.srsa.gov.za Department of Tourism Physical address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001 Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 444 6780 Fax: +27 12 444 7027 Website: www.tourism.gov.za Department of Trade and Industry Physical address: The dti, 77 Meintjie Street, Block A, Floor 3, Sunnyside, Pretoria 0001 Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 | Fax: +27 12 394 0337 Website: www.thedti.gov.za Department of Transport Physical address: Forum Building, 159 Struben Street, Room 4111, Pretoria 0001 Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3131 | Fax: +27 12 328 3194 Website: www.transport.gov.za

108


LISTING Telecommunications and Postal Services Physical address: Iparioli Office Park, 399 Jan Shoba Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8000 Fax: +27 12 427 8016 Website: www.dtps.gov.za Department of Water and Sanitation Physical address: Sedibang Building, 185 Frances Baard Street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 8850 Website: www.dwa.gov.za

National coat of arms

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance.

Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth.

109

EASTERN CAPE BUSINESS 2016


LISTING

Eastern Cape Provincial Government A guide to the Eastern Cape’s provincial government departments. Visit www.ecprov.gov.za

Office of the Premier

Health

Premier: Phumulo Masualle Address: State House, Independent Avenue, Bhisho 5605 Tel: +27 40 609 6626 | Fax: +27 40 639 1419 www.ecprov.gov.za

MEC: Pumza Dyntyi Address: Dukumbane Building, Independence Avenue, Bhisho 5605 Postal Address: Private Bag X0038, Bhisho 5606 Tel: +27 40 608 1114 | Fax: +27 40 608 1118 www.echealth.gov.za

Economic Development environmental affairs and tourism

Human Settlement MEC: Sakhumzi Somyo Address: 2nd Floor , Beacon hill, Hockley Close, King Williams Town 5600 Tel: +27 43 605 7006/7216 | Fax: +27 43 605 7306 www.dedea.gov.za

MEC: Helen Sauls-August Address: 31-33 Phillip Frame Road, Waverly Park, Chiselhurst, East London Tel: +27 43 711 9777 | Fax: +27 43 711 9785 www.ecdhs.gov.za

Education MEC: Mandla Makupula Address: Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha Tel: +27 40 608 4202 | Fax: +27 40 608 4247 www.ecdoe.gov.za

Provincial Treasury MEC: Sakhumzi Somyo Address: Provincial Treasury , Tyamzashe Building, Bhisho 5605 Postal Address: Private Bag X0029, Bhisho 5605 Tel: +27 40 609 5755/5014 | Fax: +27 40 639 1030 www.ectreasury.gov.za

EASTERN CAPE BUSINESS 2016

Cooperative governance and traditional affairs MEC: HON F Xasa Address: Tyamzashe Building, Room 2124, 2nd Floor, Bhisho 5605 Tel: +27 40 609 5788/5789 | Fax: +27 40 639 2135 www.ecprov.gov.za

Roads and Public Works MEC: Thandiswa Lynette Marawu Address: 5 Qasana Building, Independence Avenue, Bhisho 5605 Tel: +27 40 609 4648 | Fax: 086 298 5598 (sa) www.ecdpw.gov.za

110


LISTING Rural Development and agrarian Reform

Social Development

MEC: Mlibo Qoboshiyane Address: Dukumbane Building , Independence Avenue, Bhisho 5606 Tel: +27 40 609 3472 | Fax: +27 40 636 3462 www.drdar.gov.za

MEC: Mrs Nancy Sihlawayi Address: cnr Hockley & Hargreaves Streets, Beacon Hill, King Williams Town 5600 Tel: +27 43 605 5210 | Fax: 43 605 5472 www.ecdsd.gov.za

Transport, Safety and Liaison

Sports, Recreation and Arts and Culture

MEC: Weziwe Tikana Address: Stellenbosch Park, Flemming St, Schornville King Williams Town 5601 Tel: +27 43 604 7414 | Fax: 086 298 5598 www.ectransport.gov.za

MEC: DR Pemmy Majodina Address: Wilton Zimasile Mkwayi Building. 5 Eales Street, King Williams Town 5600 Tel: +27 43 604 4101 | Fax: +27 43 642 6759 www.ecsrac.gov.za

Eastern Cape Local Government Amahlathi Local Municipality

Alfred Nzo District Municipality

Tel: +27 43 683 5000 Fax:+27 43 683 2970 Web: www.amahlathi.gov.za

Address: Erf 1400, Ntsizwa Street, Mount Ayliff Tel: +27 39 254 5000 | Fax: +27 39 254 0343 Email: info@andm.gov.za Web: www.andm.gov.za

Great Kei Local Municipality

Matatiele Local Municipality

Tel: +27 43 831 1028 | Fax: +27 43 831 1483 Web: www.greatkeilm.gov.za

Tel: +27 39 737 8100 | Fax: +27 39 737 3611 Web: www.matatiele.gov.za

Mbashe Local Municipality

Uzimvubu Local Municipality

Tel: +27 47 489 5800 ax: +27 47 489 5800 Web: www.mbhashemun.gov.za

Tel: +27 39 255 8500 | Fax: +27 39 255 0167 Web: www.umzimvubu.gov.za

Mnquma Local Municipality Tel: +7 47 401 2400 Fax: +27 47 491 0195 Web: www.mnquma.gov.za

Amathole District Municipality Address: 40 Cambridge Street, East London Tel: +27 43 701 4000 Fax: +27 43 742 0337 Email: info@amathole.gov.za Web: www.amathole.gov.za

Ngqushwa Local Municipality Tel: +27 40 673 3095 Fax: +27 40 673 3771 Web: www.ngqushwamun.gov.za

111

EASTERN CAPE BUSINESS 2016


Nkonkobe Local Municipality

Joe Gqabi District Municipality

Tel: +27 46 645 7400 | Fax: +27 46 645 2562 Web: www.nkonkobe.gov.za

Nxuba Local Municipality

Address: Cnr Cole & Graham Streets, Barkly East Tel: +27 45 979 3000 | Fax: +27 45 971 0251 Web: www.jgdm.gov.za

Tel: +27 46 684 0034 | Fax: +27 46 684 1931 Web: www.nxuba.org.za

Elundini Local Municipality Tel: +27 45 932 8100 | Fax: +27 45 932 1094 Web: www.elundini.org.za

Buffalo City Metropolitan Municipality

Gariep Local Municipality

Address: 117 Oxford Street, Cnr North & Oxford Streets, Trust Centre, East London Tel:+27 43 705 2000 | Fax:+27 43 743 1688 Email: lungig@buffalocity.gov.za Web: www.buffalocity.gov.za

Tel: +27 51 653 1777 | Fax: +27 51 653 0056 Web: www.gariep.gov.za

Chris Hani District Municipality

Senqu Local Municipality

Maletswai Local Municipality Tel: +27 51 633 2441 | Fax: +27 51 634 1307 Web: www.maletswai.gov.za

Tel: +27 51 603 1300 | Fax: +27 51 603 0445 Web: www.senqumunicipality.co.za

Address: 15 Bells Road, Queenstown Tel: +27 45 808 4600 | Fax: +27 45 838 1556 Web: www.chrishanidm.gov.za

Nelson Mandela Bay Metropolitan Municipality

Engcobo Local Municipality Tel: +27 47 548 5600 | Fax: +27 47 548 1078 Web: www.engcobolm.gov.za

Address: City Hall, Vuyisile Mini Square, Govan Mbeki Avenue, Nelson Mandela Bay Tel: +27 41 506 3208/9 | Fax: +27 41 506 2422 Web: www.nelsonmandelabay.gov.za

Inkwanca Local Municipality Tel: +27 45 967 0021 | Fax: +27 45 967 0467 Web: www.inkwanca.gov.za

Intsika Local Municipality

OR Tambo District Municipality

Tel: +27 47 874 8700 | Fax: +27 47 874 0010/0237 Web: www.intsikayethu.gov.za

Physical: OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthata Tel:+27 47 501 6400 | Fax: +27 47 532 6518 Web: www.ortambodm.gov.za

Inxuba Yethemba Local Municipality Tel: +27 48 801 5000 | Fax: +27 48 881 1421 Web: www.iym.co.za

Ingquza Hill Local Municipality

Sakhisizwe Local Municipality

Tel: +27 39 252 0131 | Fax: +27 39 252 0699 Web: www.ihlm.gov.za

Tel:+27 47 877 5200 | Fax: +27 47 877 0000 Web: www.sakhisizwe.gov.za

King Sabata Dalindyebo Local Municipality

Tsolwana Local Municipality

Tel: +27 47 501 4000 Fax: +27 47 531 3128 Web: www.ksd.gov.za

Tel: +27 45 846 0033 | Fax: +27 45 846 0025 Web: tsolwana.co.za EASTERN CAPE BUSINESS 2016

112


Mbizana Local Municipality Tel: +27 39 251 0230 | Fax: +27 39 251 0917 Web: www.mbizana.gov.za

Tel: +27 42 200 2200 Fax: +27 42 200 8606 Web: www.kouga.gov.za

Mhlontlo Local Municipality

Kou-kamma Local Municipality

Tel: +27 47 553 7000 | Fax: +27 47 553 0189 Web: www.mhlontlolm.gov.za

Tel: +27 42 288 7200 | Fax: +27 42 288 0797 Web: www.koukammamun.co.za

Ntabankulu Local Municipality

Makana Local Municipality

Tel: +27 39 258 0056 | Fax: +27 39 258 0173 Web: www.ntabankulu.gov.za

Tel: +27 46 603 6131 | Fax: +27 46 622 9700 Web: www.makana.gov.za

Nyandeni Local Municipality

Ndlambe Local Municipality

Tel: +27 47 555 5000 | Fax: +27 47 555 0202 Web: www.nyandenilm.gov.za

Tel: +27 46 624 1140 | Fax: +27 46 624 2669 Web: www.ndlambe.gov.za

Port St Johns Local Municipality

Sunday River Valley Local Municipality

Tel: +27 47 564 1207 | Fax: +27 47 564 1206 Web: www.psjmunicipality.gov.za

Tel: +27 42 230 7700/0077 Fax: +27 42 230 1799 Web: www.srvm.gov.za

Sarah Baartman District Municipality

Free State

EASTERN CAPE PROVINCE Britstown N12

Northern Cape

Address: 32 Govan Mbeki Avenue, Port Elizabeth Tel: +27 41 508 7111 | Fax: +27 41 508 7000 Email: cpaul@cacadu.co.za Web: www.cacadu.co.za

Colesburg

Victoria West

Aliwal North

Oviston

N10

N1

Mount

Lady Grey

N6

R56

Mount Ayliff

N2

Lusikisiki

Elliot

Indwe

Hofmeyr

Mthatha

Three Sisters

R61

Baviaans Local Municipality

Rietbron

Pearston East N10

Kirkwood

Steytlerville Uniondale

Joubertina

N9

Knysna

N2

Kareedouw Plettenberg Bay

Adelaide

Cookhouse

Klipplaat

Willowmore

Tel: +27 44 923 1004 Fax: +27 44 923 1122 Web: www.baviaans.gov.za

Sada

Somerset

R63

Aberdeen

N9

Tsomo

Tarkastad

Cradock

Graaff-Reinet

Beaufort West

Queenstown

R61

Western Cape

Paterson

Port St Johns

Coffee Bay

Cathcart Butterworth

Stutterheim

Fort Beaufort

Komga Bhisho N2

King William's Town Grahamstown

EAST LONDON Hamburg

N2 R72

Uitenhage

Kokstad

Port Edward Mount Frere R61

Maclear

Dordrecht

Molteno

Ixopo

R56

Fletcher

Barkly East

Jamestown

Steynsburg

Middelburg

Matatiele

R58

Burgersdorp

Hanover

KwaZuluNatal

LESOTHO Zastron

Rouxville Bethulie

De Aar

Port Alfred

PORT ELIZABETH

Humansdorp Jeffreys Bay

Blue Crane Route Local Municipality Tel: +27 42 243 1333 | Fax: +27 42 243 0633 Web: www.bcrm.gov.za Municipalities in the Eastern Cape

Camdeboo Local Municipality

LESOTHO Free State

Alfred Nzo Matatiele

Tel: +27 49 807 5700 | Fax: +27 49 892 4319 Web: www.camdeboo.gov.za

KwaZuluNatal

Umzimvubu Senqu

Maletswai

Northern Cape

Elundini

Joe Gqabi

Gariep

Ntabankulu Mhlontlo

Inkwanca Tsolwana

Ikwezi Local Municipality

Western Cape

Nyandeni

Emalahleni

Chris Hani

Inxuba Yethemba

Engcobo Intsika Yethu

Lukhanji

Camdeboo

Mbizana

OR Tambo Qaukeni

Sakhisizwe Port St Johns

King Sabata Dalindyebo Mbhashe

Mnquma

Tel: +27 49 836 0021 Fax: +27 49 836 0105 Web: www.ikwezimunicipality.co.za

Amahlathi

Nxuba ECDMA10

Blue Crane Route

Ikwezi

ECDMA10 Koukamma

Kouga Local Municipality

Kouga

Nkonkobe

Great Kei

Buffalo City

Cacadu Baviaans

Amathole

Makana Sundays River Valley

Nelson Mandela Bay

Ngqushwa

Ndlambe

INDIAN OCEAN Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality Local Municipality

113

Cacadu Nxuba

EASTERN CAPE BUSINESS 2016


FOCUS

Sarah Baartman District Municipality The Sarah Baartman District is situated in the western portion of the Eastern Cape and wholly surrounds Nelson Mandela Bay. At 58 243 km², it is also the largest of the six districts in the Eastern Cape province. The Eastern Cape Province is incredibly rich in culture and home to four tribal kingdoms, including Xhosa, Pondo, Sotho and the KhoiSan – said to be among the first inhabitants of the Province. Known as the “Adventure Province”, the Eastern Cape has the only Big Seven reserve in the world, namely Addo Elephant National Park, and a World Heritage Site, namely the Baviaanskloof, within its boundaries. The lifestyle is relaxed, balanced and family-orientated, while the tourism industry is thriving. The area is characterised by immense contrasts in scenery, vegetation, wildlife, history and culture. Residents have access to world-class medical, sports and education facilities like the Rhodes, Walter Sisulu, Nelson Mandela Metropolitan and Fort Hare Universities. The Eastern Cape offers one of the best combinations of lifestyle and opportunity. Whatever your line of business, the Province boasts a healthy economic variety of manufacturing, industry and agro-industry supported by infrastructure and development initiatives, while motoring giants like Volkswagen South Africa, Ford and General Motors are also based here. It is also the only Province that is home to two Industrial Development Zones (IDZs) and a deep water port. The Sarah Baartman District Municipality focuses on creating projects to grow skills, employment and

Covering 34% of the entire Eastern Cape Province’s geographical footprint, the District stretches from the Karoo areas in the north to the coastal belt of the Indian Ocean in the south, and includes inland areas, which lie between the Bloukrans River in the west and Great Fish River in the east. EASTERN CAPE BUSINESS 2016

114

initiate sustainable economic development as well as elevating the quality of life in the District. Some of the rare skills, such as shearing Angora goats for mohair, are available in the District and where a skills shortage is being experienced, initiatives are being undertaken to combat the skills shortage and in turn create jobs for local people.

POTENTIAL AREAS FOR INVESTMENT Several potential areas of investment have been identified within the Sarah Baartman District. They include: FISHERIES & AQUACULTURE Aquaculture comprises diverse systems of farming plants and animals in inland, coastal and marine areas, using and producing a wide variety of animal and plant species. It can be a very productive use of resources due to the amount of food produced per hectare when compared to arable farming or livestock rearing. Aqua feed resource production is also one of the fastest growing agricultural industries in the world, with growth rates of more than 30% per year. The industry in South Africa and the Eastern Cape is still in its infancy, with only four aquaculture facilities currently operating in the District. These are located in Camdeboo, Ndlambe, Makana and Kouga local


FOCUS

municipalities. The largest of these projects is located in Graaff-Reinet and is called the Camdeboo Satellite Aquaculture Project (CSAP). It aims to establish a mega aquaculture cluster, comprised of a core farm of six hectares, 39 outgrower farms and three hatcheries. As a result of this project, the freshwater fish industry in the Graaff-Reinet area will be preserved, whilst it also creates sustainable self-employment opportunities for rural women. At maximum capacity, this project will produce about 13 728 tons of farmed fish (primarily catfish) a year, creating 670 direct jobs and 3281 indirect jobs. Once perfected and successfully implemented in Graaff-Reinet, CSAP may be replicated in other rural and remote areas of the country, creating enormous social and economic benefits for thousands of South Africans, as well as a source of affordable protein and nutrients for millions of people. The other aquaculture and fisheries projects in the Sarah Baartman District are much smaller, one of which involves the production of oysters off the coast of Port Alfred (Ndlambe). Challenges experienced by fish farmers in the District generally relate to funding, training and equipment. Investment opportunities exist within both the production and processing areas of the aquaculture industry.

2 million pockets of citrus for the export market. They are the largest producer of citrus in southern Africa, while the Eastern Cape, consistently since 2004, is the most significant contributor to citrus production in the country. There are also citrus farms located in the Kouga Local Municipality, with substantial production taking place in the Gamtoos River and Patensie. Several citrus nurseries operate within the District (Sundays River Valley and Kouga), from which initial plants for future cultivars can be procured. Most cultivars start to bear fruit in their third year, although the climates can affect this. On a national level, about 11.2% of citrus produced is sold to local markets, 70.1% is exported and 28% is sent for further processing. Currently, there is a lack of large-scale processing facilities available for citrus fruit in the Sarah Baartman District.

CITRUS The citrus industry within the Sarah Baartman District Municipality is largely focused in the Sundays River Valley Local Municipality. The town of Kirkwood is considered as the primary producer in the District and the Province, contributing about 12% of national production. It is home to 12 000 hectares of citrus orchards. Varieties produced in this area include clementines, navels, lemons, valencias and grapefruits. The Sundays River Citrus Company is responsible for a large chunk of the area’s production capacity, producing

CONTACT INFO Physical: 32 Govan Mbeki Avenue (Standard Bank Building), Port Elizabeth Postal: PO Box 318, Port Elizabeth 6000 Tel: +27 41 508 7111 Fax: +27 41 508 7000 Website: www.sarahbaartman.co.za

115

EASTERN CAPE BUSINESS 2016


FOCUS HONEYBUSH Honeybush, found exclusively in South Africa, is a component of the horticultural industry of the Sarah Baartman District Municipality. It is an indigenous fynbos-type plant that is used to produce a type of herbal tea. The processing of the plant is divided into 3 parts, namely cutting the tea into fine particles, fermenting the cuttings with pure spring water and drying, sifting and sorting the residue into course fine and super-fine grades of tea. This process is essential for the development of its characteristic sweet scent, taste and reddish brown colour of the tea. The plant takes two years to grow and is harvested in its third year. There are several honeybush processing facilities located within the District, three of which are found in Kou-kamma Local Municipality, while another is located in Kouga Local Municipality. It is grown in the Langkloof, in the Kou-kamma Local Municipality, while potential for development exists in the Makana Local Municipality. Of the national production, 90% is exported. Markets include Germany and the United States of America. The industry is relatively young and the full scope of it has not yet been determined, apart from its contribution to the tea industry. The South African market for honeybush is largely untapped, with international demand outweighing national supply capacity.

sheep flocks, averaging approximately 300 head per farm. There are numerous abattoirs spread across the District. Kouga Local Municipality’s climate is ideally suited for raising goats and sheep and is home to 10 facilities which process this type of meat, while the Camdeboo Local Municipality has a further seven such facilities, and another six similar facilities are located in the District. The majority of these abattoirs also slaughter beef cattle. Nationally, there are shortages with respect to cattle production, with demand for more than 300 000 head of cattle extra per annum. Beef cattle are less intensive to raise than dairy, notwithstanding goats, which can be raised on the same land. The highest concentration of cattle per square kilometre is found in the Kou-kamma Local Municipality. A potential shortage in the supply of lamb is predicted in the near future, posing a possible investment opportunity, while the skill level of shearers in the District could be improved.

POULTRY The poultry industry in the Sarah Baartman District includes broilers, egg-layers and ostrich production. The coastal regions are more suitable for broiler and egg production, whereas the dryer, inland regions are more suitable for ostriches. Poultry related cooperatives within the District are scarcely distributed, with only 12 cooperatives identified in 2013. Of these, six are located in the Ndlambe, three in Makana, two in Kouga and one in Kou-kamma local municipalities. There are seventeen poultry abattoirs in the District, of which five are located in the Kou-kamma, four in Camdeboo, three in Kouga, two in Makana, one in Blue Crane Route, Ikwezi and Sundays River Valley local municipalities. There are opportunities that exist in the District for free range chicken production, while the area is well suited for ostrich production. This industry produces leather, feather-related products and the ostrich meat. In South Africa, white meat is generally considered as the healthier and cheaper alternative to red meat. In 2012, the South African Poultry Association found that more chicken and eggs are consumed per capita than any other animal protein.

LIVESTOCK Livestock farming within the Sarah Baartman District is largely attributed to the farming of cattle, sheep and goats. The mixed veld types of the Eastern Cape present a competitive advantage for livestock activities With respect to goats raised for slaughter, the most common are the Boer, Savanna and Kalahari Red goats. Nationally, goats are primarily raised within the Eastern Cape, while the District possesses about 70% of the value of the industry in the Province. Flocks of goats intended for meat production are usually smaller than

PINEAPPLES The Sarah Baartman District is the largest producer of pineapples in the Province, contributing about 90% of EASTERN CAPE BUSINESS 2016

116


FOCUS Currently, the focus within the industry should be on skills development in management, husbandry and mohair production, while investment in research and development could pay off due to new technologies being introduced to increase the yield and the quality of the fibres that are produced.

RENEWABLE ENERGY Renewable energy harnesses naturally occurring nondepletable sources of energy, including solar, wind, biomass, hydro, tidal, wave, ocean current and geothermal, to produce electricity, gaseous and liquid fuels, heat or a combination of these types of energy. The renewable energy industry is therefore comprised of those enterprises that seek to commercialise these natural processes to generate electricity for consumers. Approximately 90% of South Africa’s electricity is still being generated from the burning of coal, but the Sarah Baartman DM has significant potential to produce energy using naturally occurring sources, such as wind. The most significant gap in the market for the District, over the short to medium term, will be in the provision of ancillary services (e.g. legal services, EIAs, engineering services, construction, security services, fencing, maintenance, cleaning, logistics etc.). With each renewable energy development coming online, the demand will increase for the manufacturing of components and the provision of operational and maintenance services. The Camdeboo, Blue Crane Route, Makana, Sundays River Valley, Kouga and Kou-kamma local municipalities are suited for the generation of wind power, while solar energy generation would be more suitable in the Ikwezi, Blue Crane Route, Camdeboo, Makana, Sundays River and Kou-kamma local municipalities. The Blue Crane Route Local Municipality is also home to the District’s only hydro-electric initiative, developed along the Fish River. The Ndlambe , Sundays River and Kouga local municipalities are suitable for biogas production, as by-products of their agricultural activities. The Kouga Local Municipality also offers potential for hydro electricity generation.

the provincial output. The industry is located almost exclusively in the Ndlambe Local Municipality, positively impacting on the social and economic growth of the area. The plant takes approximately one to one-and-ahalf years to flower. Usually, the first crop is harvested after eighteen to twenty-four months. Currently, all pineapples produced in the District are processed at a special facility located in East London. The pineapple plant is well suited to the conditions found in the District and is able to grow in environments where irrigated plants struggle. A range of products can be produced from pineapples, including juice concentrate, dietary fibre and textile fibre. Enzymes that have medical properties can also be extracted from pineapple waste products, while the plant waste can be used to produce biogas.

MOHAIR The Eastern Cape Province is the largest producer of mohair in South Africa, contributing approximately three quarters of the nation’s current production. The Sarah Baartman District is the Province’s largest producer of mohair, with approximately 52% of South Africa’s market share. More than 90% of the country’s total mohair clip is exported in the grease or semiprocessed form – both washed and combed. Turkey, Argentina and Lesotho pose strong competition to South Africa’s mohair production. Angora goats produce a fibre that combines the warmth of wool but has the durability to be coloured, similar to synthetic material. Colouring of the fibre results in a high reflectance value and clarity of colour. Kid mohair, due to its exceptional quality, continues to be in high demand worldwide and used in the manufacturing of fashion garments. The areas in the District most suited to the rearing of Angora goats and the production of mohair include the Camdeboo, Blue Crane Route, Ikwezi, Makana and Baviaans local municipalities.

INVEST IN THE REGION To discuss potential investment opportunities within the Sarah Baartman District, contact Pumelelo Kate, the Director of Economic Development (Tel: +27 41 508 7343, Fax: 086 579 6623, Email: pmkate@sbdm.co.za) .

117

EASTERN CAPE BUSINESS 2016


1

Legend and Keyplan

Legend Caltex

Freeway / National Road Tarred

Untarred Under Construction

1

Major Town

R110

21

Capital or City

Main Road Secondary Road

Secondary Town

Route Numbers

Other Town Settlement

Toll Route and Toll Plaza

15

Accommodation

Mountain Pass

Historical Site

Distance in Kilometres

Border Control Major Spot Height

Railway with Station

Place of Interest

International Boundaries

Waterfall

Provincial Boundaries

Battlefield

Water features

Major Airport Airfield

Pan

National Park / Nature Reserve

Marsh

Page Keyplan

BLOEMFONTEIN

MASERU PIETERMARITZBURG

10

De Aar

3

1

Colesberg

4

6

Middelburg

12

Aliwal North

5

Queenstown

Beaufort West

Graaff-Reinet 10

9

12

7

Copyright Š MapStudio/MP/2016

2

8

6 MTHATHA

Eastern Cape

GRAHAMSTOWN

Knysna

Kokstad

Port Alfred

PORT ELIZABETH

EAST LONDON

9

2


t en S Ma nc h St es ter

r st

Ja m St e s

Ko

Rd

St

ns

he te p

rC r.

St

on

RD

IE IL BA JO HN Cou r d

um R

DE R D

Aquari

ANA

Park Dr.

Hort

des

St

Pr io

St

l.

St

P

ES P L

r

ge

Aquarium

German Settler Memorial

MARINE PARK

d or if f ck Cl St at ri zp d Rd Fit R nza a Qu

rk

le

w ad

en Gould St

Rho

T ES

d

RRI

wR

St

n e so JamSt

CU

ie Hil lv

e ridg

Pa

t

g An

ord Cliff

C

ve A rk

Pa

St

y

an

Al b

ve

A

rk

VA

Hirsc Ave h

d er R

ca s t

Rd

ul s

Pa

St

Rd

ul s

Pa

.

ts S

t St

St

Nor de St n S ea vi e w Te r al . la n Rd

ley

New to Ave n

RD

S

N

H

JO

ST

ni Pa St

Su ff St olk

St S

C i r.

ck a

St

Dick en St s

Bing

E Rd or y

ct

Fa

Rd

ns

oh

St

tJ

D

b Pl N a . n

V

n io

co

BL

Ja

ER

T er

mid

D t KR ns S

des

Bur

Rho

pbell Cam t S St

R ees

MARINE PARK

r ine

St

Cow per n St St

Blaine St Norden St

Te r.

rl eit h

r. tC

Ma

yson

t Cou

sc h

TR IC

g

n

on a Mash r. Te

re St

T en n

Caxto

Quigney Inv e

Mo o

Gold

re St

Alstot S

on s Sy m t S Rd en t

O ri

Spar

Z PA

t

72

b Cam

Za

LM

ir.

EAST BANK

Pl. mure

FIT

ie S

t

be Cham t S

.

l

t no S Meri

in wn Bro St

al S

Goal

ST

D r.

A W

Un

P an

ello Long f r Cur

n Sig

GE

t ry S

ff alo

St

h Hu t c He ly

Bu

on Rd in s

Buffalo

h

72

r St nza ione Bon a m iss Com President P Wool Exchange W.S.U (Buffalo City t y on S h Campus, Cambridge St) gne Bri ght e i Churc . m O ri en St Qu F.C .U t Rd au La. t te r. S l n il H Ga C h St So ut

Buffalo Bridge

ut

ia m erc Com Rd

Mo o

t East Lock Caxton S London Street rs

Terminus

9

Buffa lo Park Dr

ss St

r. n Te Tutto

n ey R d

r St

Buffalo Park Cricket Grounds

L RD C IA M ER COM Small Business Development Complex

k Loc St

R ID

t nS

MB

Dru

ll St

we ll Crom St

e Gil w

T ST FLEE

Market Square

Pie

St

olme

Quigney/ Beach w St

t io St a

t

East London

r Va

D YR

Malc

e Upp

LL E

Q uig

C

Rd ll ey

Spoornet

CA

rt S

CBD

d

St

14

Ga rd iner

East London

VA

l. D u nn

er

sR

is Ell St

e i dg Br t S

F re o dm t Cu S

D yer

rP

Dy

E Y RD LL

Fort Frederick

.

OO

Bow ls R d

ye

a St di ca ill Ar La. M Pate M r so i nS Av ddl t en e S ue t St

h am

T er

KL

D

a

St

ken Twic St St Fort

So

r ley

n bito Sur St

gs Rd

t

. T er

e Ann

t mS

Li v in

lS

on t

der Tri n q . S

se u

t

ST

pe

Belm

St

Mu

St

RS

Ha r St ris

Rd

St

Port Elizabeth

S EN

St n io St ut t it kin n ns Co Do

St t ill yS St M el ne Pe Mo Rod r St ga n p StS tr m Ke nia an d n t St ita . Br St c e S a. La a L Donkin Gr ion chor Hill Un An y St tt Je

K

or

rL he

nc e

KE

Arcadia

n

a

A

el ap Ch La.

a Ch

ct Vi

St

ck itlo Wh a.

at Le

re Law

t re S

MA

L Grens Afrikaanse JAN SMUTS GROUND ABSA Stadium St (Basil Kenyon) ey tio

nd

.

E

At la

d

ri Ast o . La

ST

W AY

d

BA

Cr

t lio El St

SS

m

Southernwood n

St ThomSt

lm

t

r St Cuyle Gor do n Ter.

Jutland Cr.

ea cr

ra

n do

St

St D ea

ve

IC K

Re

g Cr.

r.

.

on ps

Pa

Central

e Alb

Do rklin

C

Pl

d ar w

t eS

Rd

ha

ln Ti

LO

ca

k

ne w

R os

sA

r nt e Hu ve A

eS Vi t ct or ia

t

Pr in c Gr ess av in Eliza Latimer's g Do bet Landing ck h

Buffalo Cruising Club

St

BR rb e

N ST NS O PH E STE East London T Old Library W Po TH S ol rte se St N OR rS l ey rgyle t City Hall A St t College S n St to ge x u B Pe olle Street P Cuthberts Building r.

on R

RU

FFA

d

in

ST

Pin

3

ar kS

LER S

Ponto

ia or ct ay Vi Qu t S

R D Hill S St ia LL

ST

in t R

Rd

unt t

t ll S be S t mp ry Ca Dolle

St

BU

G reen po

hn

yS

t ve n Con a. L

72

Port Rex

St

Ba

K

Cuyl er

r C Te St t h e St s ton ew Glad vi St sh Bu g Althorpe Col. Ja n St Old Standard Unio Bank Building QUEENS PARK inus m er T St Gately House n St Zoo to Cax Historical Museum tes et Mark a Sq . G

SETT

y

St

N RI

a Gr

St

VICTORIA amb art R L Ki m PARK b

East London Private Hospital

Parkside

Ke

le ms

St

800 m

North EndP

Rd

an

Greenwood P

RD

sf i e ld

ka

fa t

St

on

ac

of

Rob Belling Art Gallery

FO

go

ac

tm Lu

St

ba

Be

M

M

Nelson Mandela Metropolitan Art Museum

OX

m lu

S

Kayalethu Spec.

igh

t

Ed

St

er sR

sS

n E va on tt ma st a rt S er m lm StC H i la re Pa n St t h H St

RUSSELL ROAD INTERCHANGE

n

Campanile Iv y d Ter. Alfre St Municipality St ur t St St ck DONKIN Co ent lo q. Parliam Opera House N Centrahil Ha ve ock S Un o RESERVE Hav el ill rth St e St d io H d n R s ly so t C l n R ob White spe c Hil St g St Holy Trinity s tle Pro min lock Park Drive Ca Anglican Church Fle St Ha ve Hospital t Feather Augustine P on S rs a e P d Market Trinity S yR St ilitar Hall Bir d Athenaeum M Great War d Building Cuy ler Cr. ern R Memorial West

Muir Be

St

Teachers Centre

do

t

p

De

ds

illi

eS

P.E College

R

Rd

le Ra

R

o st er lm St Pa

Tulla St d Hill St m onD a r e ich gb e

ill Br

EX P

ridge R d nGdy en ad en da lR d

in

600

R102

n La

Ir v

AV

E

RO

V

Hallack Rd

A Ph St

Rd

x Rd

ES T

St a

4

Fred e ri St ck

s Rd

os Cr

St

y nle

Park Dr.

St Georges

rl e y

St

St

Fo

d Oriental er Ri Plaza l ey ch RE Miln Rd mon e SS r R d S Rd W d ia l A Y Ch no g K ap en M a St John's el si St Av ngt Road P e o

St

ock

n

e Av

t rS

KI

ve

t

St

o Lenn

Moffat

ta

W

in

St P atr ic k

n gt o

Westbourne Oval

St Georges Park

400 be

d

r be

H

e ad sp t Le S

r.

ck

w Ho

100 200

R tt

RT

d s ol on er t S ol om w S Ro

St

BE

rS pe

e Gl

o Co

Park Dr.

P ar k D

Ha ll a

o Sc

NO

St uth t So re e S t At

eA

n vo De St

ll Ca

Copyright © MapStudio/MP/2015 Hospital

0

t dS

She rl

D

R ic hm o n d

E RD

PORT ELIZABETH Albany Rd Interchange Albany Rd M7

e at Sl

H ck co Ad St y ll ga Ro St t rS ei

ck

M

dl

R

Y

ay St m

Prince Alfred's Guard War Memorial

R ee

l se DieSt

id

N

Bay

n St

W

rr a

N

St

A

Essexvale

Whi tehead Ave

Ba

t

t

M

sS en

. La

ck

Lilitha Nursing Col.

Ha ll ac Pl. k

LB

o

7

CAP

rk

Upper Di

A

Rd

n

R102

Pa

Y

R BE R SE

t

za b

R St ss r ge Bu Za reba Victorian Houses St New in g ton R d

Nazareth House

S et h

er Al d

Av ey o ed Rd e ev ne Cl ur

St

A

ge

V

Rd

eS

ourne

Eli

St or Av tfo e rd

Je rs

St

Ki ng G eorges

tstoun

bo st

b Rd rid

O

Ea

Rd

dl

Provincial Hospital Westb

e

Rd

ns

St

d

t

Dr.

le

oo

yS

ze l hu

Ca m lo n

ll Ke

rst

lis

At h

n

St t eS on St A ve r tle My

i rk

r Ca

Bay View Ave No rt hw

r ig w t

e Ho ld

Pe

Ha

Mount Road / Erica Mount Croix Girls P

in

a w W S i ns o k le s Wil St St

St

rv

Kn o

t

St

id

Tu

S ey

Du

n Gree it To

d

St

phton Pl.

ht

Health Clinic

M

n or Th St

oo

nle

ll hi

rkw

a Sc Dr .

t nS

2

Port Elizabeth G

i ste r

Ki

on

n

North End Grey P

d

as

Se

Pl.

tR

St

St dle

Br

ter

800 m

Mid

Bris

n Ke

Dy

Sc anle St

L Excelsor

t

rst hu d el ea az H e at h t t Gr S h S it Er

ith Er St

en Ow

n

RD

S dy

r St

Ma

T

600

e Upp

UN

n et Lin t S

MO

400

D on

100 200

Cr .

0

pe Up

rE

sp

la

na

de

Signal Hill

INDIA OCEA

Copyright © MapStudio/MP/2015

Orient Beach


3

Eastern Cape

12

11

10 Groblershoop 10

D o r i n g b Copperton 37

Prieskapoort Karabee 12 28 25 Grovèput Keikamaspoort

R357

R369

e

37 Oranjerivier Anglo-Boer War R369 Concentration Camp 28 12 Oran 56 7 42 R387 Kraankuil R387 20

Grootdoring

Poupan

g e

ED

12

r be

Bushman Paintings

re

e

1511m

R388

Potfontein Ongers Minnieskloof

152

Mekataanspoort

R384

Ka

R384

89

17

30 Bra

51

59 Smartt 16 Syndicate Dam

n oe Gr

101

21

Voëlgeraas

Volstruispoort

Renosterpoort

77

Houtwater Dam

Broken Dam Giesenkraal

Vosburg

Britstown

Brand 12 37

31°00'S Caravon

46

O ng

Wildebeeste

51

12

Brakpoort

19 Victoria West

12

24

90

ers

De Klerk 17

Merriman

62

24

1

R398

Nort Ca

41

63

35 Kranskop

Biesiespoort

EG

R381

Wagenaarskraal

32°00'S

88 Rosedene

37 Restvale

Molteno Pass

R381

Karoo National Park

EH

Roseberg Pass Old Town Hall 6 1

69

Laingsburg

10

Sne

63

42

Ni Murraysburg

Kromrivier

35

66

55

63

Nelspoort Oudeberg

Graaff

Renosterkop

Valley of De Old Mission

Lemoen N.G. Church

Beaufort West

Droërivier

44

Klaarstroom

R306

11

55

Uitkyk

19 61

eu

1

11 40

Copyright Steins© MapStudio/MP/2016 Letjiesbos

41

2052m

Three Sisters

Sneeukraal

55

Richmond

Barnard Hutchinson

Verster

62

Hano

Sterkaar

R398

40 13

Meltonwold

Loxton R356

29 30

Se ekoe i

Van Amstel

Burg 9

9

30

12

Welvanpas

63

Mynfontein

9

R348

88

42

22

10 Riet

Deelfontein

Kweekwa

63

31 18 Olive Schreiner House 32 Barcelona Bletterman 29

Eselskloof

Marthasput

48

32

De Aar

Die Put

R403

Houtkraal

k

Sweetfontein

28 Kareebospoort Beyersburg 52 Sandkop Waaipunt Louwsplaas Peerboom Pampoenpoort

Brak

18

Omdraaisvlei Sodium

29

ge

8 21 Witput 11

26

Strydenburg 30

95

R386

EF

29

19

32

66

Redlands

R403

EE

41

R369

29

Kimberley

24°00'E

Old Wagon 8 Bridge Hopetown

r

30°00'S

eThembeni

Prieska

Bra k

Franzenhof Diklipspoort Uitspanberg

EC

13

73

13

Northern Cape

Douglas

23°00'E

Scale 1 : 1 850 000 14

23°00'E

85

Willowmore

12

13

Aberdeen

61

Thembalesizwe

9 24°00'E

14

De Ho Dam


0

5 10

20

30

40

50 km

8 21 Witput

Roodepan

25°00'E

Brakfontein

45

Orania

48

Luckhoff

3

18

48

33

11

Kr o

R704

49

20

R369

18

17

7

Oranjerivier

R387

16

Wanda

11

21

me l lenb

Doornkloof Nature Reserve 14

24 10 Philipstown 8 42

48

Waterkloof

R369

11

Breipaal Sly k

Springfontein

45 Dupleston

R715

Priors

57

Smithfield

Philippolis

32

Free State

1

Lofter

EC 6

Gomvlei

Trompsburg

58

Philippolis Road

70

Smithfield

48

Vanderkloof Dam

Reddersburg

Riet R717

Paradys Boomplaats 37 1848 50 Krugers

60 Driebad

1

Edenburg

38

R717

Petrusville Rolfontein Nature Reserve 41

o og

R704

16

Brakfontein

26°00'E Bloemfontein Fouriespruit Dam

Riet

50 Allep Fauresmith 11 Jagersfontein 10 15 Charlesville

Diamant Vanderkloof

19

Austin's Post

Sleutelspoort

18

4

Eastern Cape

15

R70

40 Tussen-die-Riviere Game Reserve

Louw Wepener 18

ED

R701

Pellissier House Donkerpoort Bethulie Bethulie Dam and Museum G 31 Ossewatrek Gariep Dam Gariep Dam 1938 R369 Norvalspont Nat. Res Olive R390 Battlefield 44 Bastersnek 38 1900 Oviston 35 Colesberg 58 Agtertang Gariep Knapdaar Dam Venterstad Oviston West 5 23 Ontspringen Lekkerdraai 58 Nat. Res. O

n ra

7

ge

R389

rm b

S to

10

30

18

17

31

56

Rosmead

9

Conway

35

56

25 Naudeberg Pass

63

Lootsberg Pass 30 Wapadsberg Pass Koloniesplaas Elandskloof

uMasizakhe

Graaff-Reinet

Valley of Desolation Old Mission Church 55

u Pa

Vanryneveldspas Dam

Andries Pretorius Monument Karoo Nat. Res. Petersburg Adendorp Munnikspoort 17 Charlwood

De Hoop Dam

ls

46

Oudeberg Pass

Kendrew

Jansenville

15

61

Agter Sneeuberg

Ba

nkb

14

e rg

2012m

17

37

Pearston 25°00'E Pearston

17

61

59

Cradock

Lake Arthur

Lingelihle

Olive Halesowen Schreiner's Tomb R390 35 39 Mortimer

R337

R337

32

Ta r

Kommandodrif Dam

Winte r

Drennan Swaershoek 14 Witmos Copyright 18 Daggaboersnek

Tarkastad R344

37

EH Eastern Ca be

45

Spring Va

rg e

Cameron's Glen 58 Glenrock

2369

© MapStudio/MP/2016 R344

Cookhouse 26°00'E

18

EG

Dutch Reformed Parsonage

Commando Drift Nature Reserve

28

Mountain Zebra National Park

R3

R401

Baroda

Swaershoek Pass 55

63

25

63

Post Chalmers

Sterk 39

13

Visrivier

Old Parsonage

Barakke Behulpsaam

16

10

Spitskopvlei 18

52

balesizwe

62

R401

Bethesdaweg

R401 Grassridge Dam R390

34

Syfergat

Queenstown 32°00'S

55

Mo

22

Hofmeyr

Teviot

EF

Nomon

rg

R390

Witkransnek

Stormber Stormberg 1

9

Bam b

Tafelberg

Dwarsvlei

Nieu-Bethesda

Henning

17 2074m Ossewatrek 1938 Steynsburg Teebus Lovane 24 13 R391 34 Outlet Orange Fish Tunnel Schoombee 8 21

s be

13

R398 KwaNonzame

rg

32 R391

oe

Rooispruit

Eas

Dordrecht

Sherborne

-Brak oo t

Carlton

Burg

Lower Adamson

urberg S u Bulhoek

18

EE

Mzanom

Skietnek 1899

Gr

72 Heydon

Talmon Ephriam Lion Cachet 1901

Noupoort

oei Klein-Seek

Se ekoei

eube

Carolus

Osfontein Taalmonument

R390

9

Middelburg

Northern Cape Sne

55

Elands

31 40

Kriegerspoort Dam

Arundel

64

ka

19

78

Aliwal North 31°00'S

Hanover

gspoort rlo Oo

30 Burgerville Killowen 9 Frans Dam Hanover Road 24 29 14 30 Dwaal

See ko e i

R389

22

erg

einer House

19


Gelukwaarts

R701

Egmont Dam

62

Bethulie

ED

Bildemar Koukraal

40 R726

34 AngloBoer War Monument

53

b erg Sto rm

Braamspruit

EE kkerdraai

48

Ca c

Vineyard 54

34

Molteno

Molteno 30

33

Syfergat

Boesmanshoek 12

Sterkstroom 39

R344

56

6 R397

8

5

Halseton

Penhoek Pass

Andriesberg

Braunville

R392

ng

23

Elands Height Halcyon Drift

13

Inxu

46 56

Ku-Mayima

Ulva

5 8 Qiba

20 6 Askeaton 38 Lady Frere Lufuta 25 Ncora

20

Elliot

R393

Cala Satansnek

30

Maclear Ugie

Barkly Pass Barkly Pass 16 Cala Road

56

R396

R393

Ida 56 Garryowen Cala Pass R396

Naudé's Nek Monument

49

45

Morristown

Indwe

Lower Pitseng

R396

47

R396

Doringrivier Dam

Naudesnek

58

Moshesh's Ford 32 Barkly East

Thaba Chitja

SOUTH SO AFRICA AF

Lundin's Nek

58

49

Ongeluksnek

Quthing

Rock Paintings

9

Dordrecht 32 Dordrecht

Stormberg

2106m

New England

58 Rossouw

Swempoort 20

Mphaki

Rhodes

Clifford

49

Patlong A4

A4

Tosing Moyeni (Quthing) Telle Bridge Ralebona

Rock 61 Paintings

Motkop 33

23

u

Sebapala

78

Bamboeskloof Karringmelkspruit Vickers 27

R392

Mzanomhle

Nomonde

nq

31

R393

Clanville

Eastern Cape

Stormberg Stormberg 1899

11

25

Lady Grey

Beerley

Jamestown

EF

Se

Ketane

Cutting Camp

Herschel

58

6

Burgersdorp

42

Sterkspruit

Aliwal North

Dukathole 18

Mokopung

Phamong

Bluegums

R392

u ad

31°00'S Burgersdorp

56

Qobong

R726 R393

e

Masango

le

A2

Palmietfontein

Leeubank

Goedemoed 30 Hot Brughalte Sulphur O ra n g Springs

A5

Mohale's Makhalengbrug Hoek

Rubida

Klipplaatsdrif 1839 29 Zastron Genadeberg 35 Rouxville

40 ie-Riviere Reserve

k

Semonkong 72 Nohana

Cannibal Caves

Boesmanskop

3095m

Mohales Hoek

Smithfield R701

Ma

Mokhoabong Pass

LESOTHO LE

t s Maseru uThaba Putsoa

a

Van Rooyens Gate 25 Mafeteng Rock 29 Dereham Paintings Birdpark Van Stadensrus 35 Sepapus Gate

do n

Smithfield Dam

pleston

P

26

Welbedacht Dam Helvetia

76

A2

A20

A3

oa

ab

Caledon Nat. Res.

Gen. de Wet's Birthplace

Mafeteng

28°00'E Mountain Pass Cheche Pass

39

Matsieng

8 Wepener 8

6

59 Morija

ha

52

n do

a

le Ca

Nevada 36 Jammerdrif

Ca le

30°00'SReddersburg

EC

Hobhouse

27

R717

23 Roma A5

Mazenod

an

27°00'E Hobhouse

Dewetsdorp dersburg

22

21

20 Dewetsdorp

Scale 1 : 1 850 000 24

ny

Eastern Cape

Th

5

Ngcobo Tsazo

Ntiban

Whitmore 15

Langdon 22

61

R396

Dam

o om Ts

32°00'S Tarkastad

u

EG

C ac a d

Coghlan 31 All Saints Nek 8 11 20 10 15 18 Clarkebury 25 20 Lubisi Dam 25 61 Sunken Driver's Drift Bailey 19 19 20 Garden Southeyville 13 Mbashe Xonxa 10 12 23 16 23 Mbashe Ezibeleni Dam Bowker's Park Nobokhwe 25 28 25 18 Bridge h Reformed R408 20 13 9 24 Queenstown arsonage Mlungisi Qamata 65 9 61 Garner's Drift 29 Munyu 2 19 Bholothwa Cofimvaba 20 38 6 7 16 1922 Bulhoek Rebellion 20 Hange Tsomo Tarkastad Mputi Qombolo 61 16 St Marks 17 19 7 R409 25 31 M.C.A. Shepstone 1861 Dutywa R344 Ntisana 22 51 Xolobe Tylden 26 16 Ebende Whittlesea Nqamakhwe R351 42 36 Taleni Waqu 58 Sada 67 Catholic 23 Willowvale 55 Cathcart Waterdown 27 21 Butterworth Cross 23 Spring Valley 25 Dam Sole R352 R351 Devil's Cats 12 R351 6 Bellows 2369m KwaNofodosi Bholo Pass Thomas River Nico Malan 1820 Settlers 58 Toleni 29 Pass 34 32 Great Kei R345 Milestone 17 Katberg River Bridge R409 Mgwali Kei Cuttings Dohne Copyright Pass © MapStudio/MP/2016 Gre Centani Oakdene Balfour Stutterheim Komga 24 FortSeymour Stutterheim Beacon Bay 28°00'E 27°00'E Armstrong 22 Qoqodala

Eastern Cape EH

Ke at

i

20

21

22

23

24


0

5 10 0

5 20 10 30 20 40 30 50 40 km

27

28

27

28

29

29

M

M

g

g

u

v ub

M

Hibberdene

u

ED ED

Hibberdene

v ub

EC EC

uMzinto

uMzinto

M

Durban Kingsburgh 30°00'S

g

g

Durban Kingsburgh 30°00'S

r

r

Qacha's Qacha's Nek Nek

OUTH TH FRICA CA

i en

i en

e

e

OTHO ESOTHO

b

b

Merrivale 30°00'E 30°00'E Pietermaritzburg Pietermaritzburg Midmar Nat. Midmar Res. Nat.Merrivale Res. Merrivale Merrivale Lower Loteni Lower Loteni 16 16 Midmar Dam Midmar Dam Hilton Sani Pass Sani Pass PIETERM PIETERM Hilton iMpendleiMpendle Sani Pass Sani Pass Queen Elizabeth QueenPark Elizabeth Park 29 29 Colenso MColenso M A4 A4 16 16 Station Station Police Post Police Post Cobham Cobham 18 18 Edendale Edendale Ca Ca Ashburton Ashburton Nat. Res. Nat. Res. 32 32 Sehonghong Sehonghong Thornville Thornville HimevilleHimeville Munywini Munywini R617 R617 Woodford Woodford 65 65 Underberg Underberg HammerHammer uMhlongonek Deholm Deholm Butu ButuuMhlongonek 32 32 Bushman's Bushman's Nek / Nek / Mpumalang Mpumalang Bulwer Bulwer 20 20 Nkonkoana Nkonkoana R617 R617 Richmond Richmond Sehlabathebe Sehlabathebe Soada Soada R624 R624 3245 45 Forest N. R. 32 Sehlabathebe National Park Forest N. R. Sehlabathebe National Park Donnybrook Donnybrook M M ko ColefordColeford Carthill Carthillk om m Rosebank Rosebank uMb uMb az i az i Creighton Creighton 35 35 Tsoelike Tsoelike Kingscote Kingscote 56 56 R612 Lufafa C.J. Rhodes' Bush 4 A4 Lufafa Riverside Riverside Bush R612 42 42 C.J. Rhodes' Ramatseliso's Ramatseliso's Qacha's Qacha's Nek Nek House House Reserve Reserve Road Road 80 80 Gate Gate iXopo iXopo Loch Loch Nek Qacha's Qacha's Nek Dud Dud Buidhe Buidhe 12 12 Mafube Mafube Dulini Dulini Glen Glen 20 20 Swartberg Beulah Jolivet Jolivet Verno Beulah Swartberg Verno Lehlohonolo Lehlohonolo Sneezewood Sneezewood Natu Natu Singisi Singisi Umzimkulu 74 74 UmzimkuluHighflatsHighflats Knockagh Knockagh New MatatieleMatatiele New Franklin Franklin BraemarBraemar snek ngeluksnek Roamer'sRoamer's Wembley Wembley Amalfi Amalfi Mz Mz Inverugie Inverugie 26 26 im im Rest Rest k ku CedarvilleBailden Bailden Cedarville Thaba Thaba 38Bisi ul u38 lu Sigoga Sigoga EdendaleEdendale Bisi 23 23 Chitja Chitja Mount Currie Mount Currie 56 56 Bontrand Bontrand Nat. Res. Nat. Res. 15 15 45 45 R1 R1 Goba Goba Boyscout Boyscout War War Klipspruit Klipspruit Stafford's Post Stafford's Post Memorial Memorial Kwa - Kwa Karg's PostKarg's Post Kinirapoort Kinirapoort Harding Harding Dweshula Dweshula St Faith'sSt Faith's 36 36 Bonny Bonny 16 16 Ridge Kokstad Ridge Kokstad Weza Weza 14 14 47 47 51 51 R405 R405 Brooks Nek Brooks Nek Oribi Oribi Mount Fletcher Mount Fletcher Ke Ke Oribi GorgeOribi Gorge Sou 2 Sou 2 Gorge Gorge ne ne Colonanek Colonanek 2 2 Nat. Res. Nat. Res. M M ka ka Sea Sea wer Lower 28 28 t am v a t am v a zim zim un un PaddockPaddock uMte uMte 21 21 seng Pitseng MarburgMarburg Nqabeni Nqabeni Port S Port S Lahlangubo Fort Donald Lahlangubo Fort Donald R620 R620 Rode Rode iZingolweni iZingolweni Mount Ayliff Mount Ayliff30 Moordenaarsnek 22 Bea hts HeightMoordenaarsnek 30 Bizana Bizana SOUTH COAST Shelly Shelly Bea SOUTH22COAST 11 11 32 32 uVongo uVongo TOLL ROAD TOLL ROAD 61 61 Magusheni Magusheni NgabeniNgabeni Southbroom Margate Margate Southbroom Tin Tin 17 17 Mount Frere Mount Frere RedoubtRedoubt a a Ramsgate riftyon Drift Ramsgate 20 61 20 61 Ntabankulu Ntabankulu 53 53 38 38 2 2 MunsterMunster Palm Beach Palm Beach 56 56 35 35 61 61 Umtamvuna Umtamvuna Nat. Res. Nat. Res. Glenmore Beach Beach Glenmore BannerPort RestEdward Banner Rest clear Maclear Port Edward 49 Tina Bridge Tina Bridge FlagstaffFlagstaff49

Thaba-Tseka Thaba-Tseka bongokhoabong s Pass

29°00'E 29°00'E

6 6

Eastern Eastern Cape Cape

n

26

s

26

n

25

s

25

50 km

EE EE

33 33 Tsitsa Bridge Tsitsa Bridge St Cuthberts St Cuthberts

ma-Mayima

Tsolo

Tsolo Sidwadweni Sidwadweni Stoneyridge Luchaba Luchaba Stoneyridge 21Park 21 National Park National

M

h la m

va

Holy Holy Cross va Cross MkambatiMkambati Nature Nature UmtentuUmtentu 30 3064 42 Reserve42 Reserve

h la

m 64

zi

R396

zi

R396

M

Eastern Eastern Cape Cape Palmerton Palmerton

EF EF

Msikaba Msikaba

LusikisikiLusikisiki

Mkambati Mkambati Port Grosvenor Port Grosvenor

M

M

Goss Point Goss Point Mbotyi Mbotyi im im 34vu 34 MlenganaMlengana Mthatha Dam Mthatha Dam vu ba ba Pass Pass NobantuNobantu Libode Libode GemvaleGemvale 30Misty 30 Misty Ntibane Ntibane 6 6 Ntshilini Rock of Rock of61 Ntshilini Mount Mount 61 51 51 22 22Execution Execution 1 61 Port St Johns Port St Johns MTHATHA MTHATHA Old Bunting Old Bunting Tombo Tombo Buntingville Buntingville 19 19 Silaka Nature Reserve Silaka Nature Reserve NgqeleniNgqeleni57 57 31 31 11 11 BoulderBoulder Bay Bay Viedgesville Viedgesville Nothintsila Nothintsila 22 ury larkebury Bityi 2Bityi 222 52 32 52 32 7 7 Mqanduli Mqanduli Ngqungqu Ngqungqu ashe Mbashe Dick King Dick King Hluleka Nature Hluleka Reserve Nature Reserve 6 6 8 8 1842 1842 29 29 54 Jojweni 54 Jojweni 7 7 24 24 15 15 Old31Morley Old Morley 31 Tshani Tshani 2 ElliotdaleElliotdale Coffee Bay Coffee Bay 24 24 z

z

t ha

t ha

Black Rock Black Rock

Mb as

Hole-in-the-Wall Hole-in-the-Wall Mb 6 asAlderley 6 Alderley Mbolompo Mbolompo Point he

he

Point

EH EH

Nqabarha Nqabarha R408 R408 Cats 24 Pass 24 Manubi Manubi Qhorha Mouth Qhorha Mouth MazeppaMazeppa Bay Bay

ni Centani

Bowker's Bay Bowker's Bay

25

25

Copyright Copyright © MapStudio/MP/2016 © MapStudio/MP/2016 30°00'E 30°00'E

29°00'E 29°00'E

26

26

27

27

28

28

29

29

32°00'S

32°00'S

31 31 Hobeni Hobeni Rothmere Rothmere de Ebende 31 31 14 14 The Haven The Haven 5 Ciko 5 Ciko wvale Willowvale 34 26 34 26 Reserve Dwesa Nature Reserve 7 Nyokana 7 Nyokana Dwesa Nature Cats Pass

EG EG

M th a

M th a

wa Dutywa

31°00'S

Ntywenka Ntywenka 58 Qumbu 58 Qumbu

31°00'S

Eastern Eastern Cape Cape

Eastern Eastern Cape Cape


77

Eastern EasternCape Cape 12 12

11 11

13 13

14 14

23°00'E 23°00'E

Beaufort West Beaufort West

Scale Scale11: :11850 850000 000 15 15

24°00'E 24°00'E

Graaff-Reinet Graaff-Reinet

N.G. N.G. Church Church

Beaufort BeaufortWest West 4444 6161

R306 R306

ga ri e a K a rieg Ka

5151

6666

99

R338 R338

33°00'S 33°00'S

EK EK

Rietbron Rietbron R306 R306

SoSo ut ut

Beervlei Beervlei WWi ti tt t Dam 4444 Dam Kommandokraal Kommandokraal e eb b Volstruisleegte Volstruisleegte e er r 1919 8383 g ge ePerdepoort Perdepoort KleKle inw inw ateate r r 1365m 1365m

De Rust De Rust

R407 R407

EL EL

Rooiloop Rooiloop

Vondeling Vondeling

2121

2626

2424

Aberdeen Road Aberdeen Road 1212 Oatlands Oatlands R338 R338

2222

1717

Humefield GGr or oHumefield ot rtir i ootoot GrGr v vi ei er r 1229m 1229m Knoetze h ho o 24241414 Knoetze o og gt t ee R329 R329 Swanepoelspoort Swanepoelspoort

Miller Miller

kloofb aansklo ofberer aviaans BBavi gege

1414 Barandas Barandas 2020 1212 Buffelsklip Buffelsklip R339 R339 1010

1212

5555

3030 Nuwekloof Nuwekloof BaBa viavia anan sklskl oooo f f Pass Pass

Sou 1010 Sou Janse Janse

1919 Klipplaat Klipplaat 2020 1818 Mount Mount Stewart Stewart

4040

1717 Willowmore Willowmore Buyspoort Buyspoort Ghwarriepoort Ghwarriepoort 4343 4141

ts ts Olif Oalifnan 3838R341 R341

SuSu ndnd ay ay 7575 s s

6060

Kaapse Poortjie Kaapse Poortjie

6363

Kendrew Kendrew

Marais Marais

3838

Eastern Eastern Cape Cape

Amos Amos

1717 Charlwood Charlwood

DeDe Hoop Hoop Dam Dam Aberdeen Aberdeen Thembalesizwe Thembalesizwe

6161

8585

Wiegnaarspoort Wiegnaarspoort

EJ EJ

5555

Uitkyk Uitkyk

roërivier roërivier 1919

Adendorp Adendorp Munnikspoort Munnikspoort

2626 GrGr

Baroe Baroe 2828

R329 R329

Wolwefon Wolwefon 1111 Steytlerville Steytlerville 1010 KK 3535

4545

GGroroo tw twi ni n 5555ootw t 4646 teterhrhooee w

162 162 Studtis Studtis Zaaimansdal Zaaimansdal Cock Cock Sandvlakte Sandvlakte 8 8 1111 1717 Coleskeplaas R332 Coleskeplaas R332 Uniondale Potjiesberg Pass Potjiesberg Pass Uniondale 9 9 Cambria KoKuoguaga Cambria 1313 Buffelsdrif Buffelsdrif Baviaanskloof Baviaanskloof 1111 Poort Uniondale Poort Kouga Kouga 1313 Uniondale Demistkraal Demistkraal Misgund Misgund Speelmanskraal Speelmanskraal Wilderness Area Wilderness Area Daskop Daskop Prince Alfred's Prince Alfred's 2222 1818 Haarlem 3232 Haarlem 2121 Louterwater Louterwater Pass Pass 6262 Andrieskraal Andrieskraal 68689 9 K K Die Vlug Die Vlug o o R332 R332 uguaga 1618m 1618m Molenrivier Molenrivier 4545 1919 Kleinplaat Kleinplaat Joubertina Joubertina Kammiebos Kammiebos 3333 Heights Heights Bergplaas Bergplaas R340 Formosa Formosa Bloukrans Barrington Barrington 2828 R340 Bloukrans Grootrivier Grootrivier The The Karatara Karatara Nature Nature Reserve Reserve Pass Pass Pass Homtini Homtini Pass Pass Crags Crags Pass Assegaaibos Assegaaibos Stormsrivier Stormsrivier 3030 Phantom Phantom R339 R339 Rondevlei Rondevlei Kareedouw Kareedouw 3535 Kruisfontein Kruisfontein Wittedrif 1515 Wittedrif Pass Pass Tree3232 BigBig Tree Tsitsikamma Tsitsikamma 2525 Clarkson Clarkson Woodlands Woodlands Paul Paul Sauer Sauer Tsitsikamma Tsitsikamma 1717 Sedgefield Sedgefield Knysna 2 2 Knysna 8585 Bridge Bridge National Park National Park Humansdorp Humansdorp Plettenberg Plettenberg Wilderness Belvidere Wilderness Belvidere Tsitsikamma Tsitsikamma Garden Route Garden Route Knysna Knysna Bay Bay The Section Section Church Church The National Park National Park National Park National Park Slangrivier Slangrivier Cape Cape Heads Section Section Walker PointHeads Walker Point Seal Seal Oyster Bay Oyster Bay

34°00'S George 34°00'S George

Herold Herold

EasternCape Cape Eastern

EM EM

Cape CapeStSt Fra Fra

EN EN

35°00'S 35°00'S

aa nn OO cc eeaa nn EO EO

Copyright Copyright©©MapStudio/MP/2016 MapStudio/MP/2016 23°00'E 23°00'E

11 11

24°00'E 24°00'E

12 12

13 13

14 14

15 15


0 0 5 5 1010

2020

3030

4040

5050km km

16 16

25°00'E 25°00'E

Adendorp Adendorp

Cradock Cradock

Tomb Tomb R390 R390 3535 3939 Mortimer Mortimer

2012m 2012m

Swaershoek Swaershoek Pass Pass 5555

5252 6363

Drennan Drennan Swaershoek Swaershoek 1414 Witmos Witmos 1818 Daggaboersnek Daggaboersnek Daggaboersnek Daggaboersnek

R337 R337

Pearston Pearston

7575

Witdrift Witdrift

Somerset Somerset Eastpoort Eastpoort East East KwaNojoli KwaNojoli

Masewatrek Masewatrek 1938 1938

R400 R400

2121

Sheldon Sheldon

t let le6060 F iFsihsh

1818

10 10

Seym Seym

2626

EJ EJ

Fort Blinkwater Fort Blinkwater Hare Hare Bofolo Bofolo Alice Alice 2121 Martello Martello 1919 Tower Tower

Fort 7 7 Fort 6363 Beaufort 3636Beaufort

6767

R345 R345

SamKnott Knott 2929Sam Nat. Nat.Res. Res.

6565 FortBrown Brown (Great (GreatFish Fish CarlisleBridge Bridge Fort Carlisle Conservation Conservation 2323 FortBrown Brown Fort Andries AndriesVosloo Vosloo Riebeeck-East Riebeeck-East KuduN.N.R.R. 1111 Kudu R400 R400 2424 EccaPass Pass 8 8 Ecca 1717 1919 Brakkloof Brakkloof FortSelwyn Selwyn Fort 3838

GRAHAMSTOWN GRAHAMSTOWN

EK EK

Peddie Peddie

99

1313

1212 1717 Olifantskop Olifantskop Suurberg 3232 Suurberg Bontrug Kirkwood Kirkwood Bontrug Bellevue Bellevue Glenconnor Glenconnor 1111 1717 2828 R342 R3422525 1616 Coerney 3232 Coerney Paterson Paterson 1818 1515 R336 R336 1919 2020 Bluecliff Bluecliff Sunland Sunland Addo Addo Groendal Groendal Ncanara Ncanara Wilderness WildernessArea Area AddoElephant Elephant Addo NationalPark Park National

2525

Adelaide Adelaide

Nico NicoMM PaPa

33°00'S 33°00'S

2323 R329 R329 4141 Wolwefontein Wolwefontein Kleinpoort Kleinpoort 3535 7575

7070

Darlington Darlington Dam DamKlipfontein Klipfontein

Bedford Bedford2121

R344 R344

t Li t Li

7575

Bedford Bedford

Katberg Katberg Pass Pass Balfour Balfour Fort Fort Armstrong Liddleton Armstrong Liddleton MpofuN.N.R.R. 2727 Mpofu

R350 R350

Long Long Hope Hope Middleton Middleton

6363 Waterford Waterford

88

GoldenValley Valley Golden

R335 R335

1515 88 Greystone Greystone

R344 R344

1212 Cookhouse Cookhouse

2424

Soutpansnek Soutpansnek Jansenville Jansenville 2626

Glenrock Glenrock

Bellows Bellows

Alice Alice

R337 R337

Vo g e l Vo g e l

Bruintjieshoogte 4848 Bruintjieshoogte

5858

6060

2369m 2369m

Cameron'sGlen Glen5858 Cameron's

R337 R337

3737

Cathcart Cathcart

Barakke Barakke Behulpsaam Behulpsaam

88

Eastern EasternCape Cape 19 19 20 20 nnt tee 26°00'E 26°00'E Waterdown Waterdown r rbb Spring SpringValley Valley Dam Dam ee R351 Devil'sR351 Devil's 4545 r rgg ee

18 18

17 17

Makanas MakanasKop Kop

Port Alfred Port Alfred Port Alfred Port Alfred

4545 2222 Alicedale Alicedale 1111 1820 1820Settlers Settlers ThomasBaines Baines Shamwari Shamwari Thomas Monument Monument 6767Lang NatureReserve Reserve Lang Game GameReserve Reserve Nature 1212 1212 Salem Salem 3333 4141 5555 Bathurst Bathurst R342 R342 Waters WatersMeeting MeetingII II NatureReserve Reserve s s Nature Amakhala Amakhala B uBsuhsh anan 44 mm 1414 Game GameRes. Res. Southwell R343 R343Southwell Cockscomb Cockscomb 1758m 1758m KasukaRoad Road Kasuka 2424 75 75 72722525 2222 R335 R335 Kenton-on-Sea Kenton-on-Sea 13 13 ambria ambria Stinkhoutberg Stinkhoutberg Kariega Kariega Alexandria Alexandria 2626 2525 1111 Nature NatureReserve Reserve Colchester Colchester Boesmansriv Boesmansriv Boknes Boknes mistkraal mistkraal Dunefields Dunefields Uitenhage Uitenhage Coega Coega Patensie Patensie DiasCross Cross Addo Dias AddoElephant Elephant 2727 National Reserve VanStadens Stadens 1313Kleinrivier R334 Memorial1488 1488 Memorial KleinrivierVan NationalPark Park Reserve Despatch R334 Addo AddoElephant Elephant Wild WildFlower Flower Despatch Algoa Algoa R332 R332 Cape Padrone Cape Padrone 1616 National Park National Park KwaNobuhle KwaNobuhle Reserve Reserve R368 R368 Bay Bay Hankey Hankey Loerie Bethelsdorp Bethelsdorp Sunnyside2424 Loerie 1010 Sunnyside BluewaterBay Bay Bluewater 3333 Swartkops Swartkops Witteklip PORT Witteklip PORT Thornhill Thornhill 9 9 R330 R330 4343 ELIZABETH 5353 ELIZABETH Summerstrand Summerstrand isfontein isfontein 4343 StStFrancis FrancisBay Bay SeaView View Sea 1717 JeffreysBay Bay Jeffreys Cape CapeRecife Recife umansdorp umansdorp Skoenmakerskop Skoenmakerskop AstonBay Bay Aston R330 R330 ParadiseBeach Beach Paradise grivier grivier 2222 StStFrancis FrancisBay Bay

wi ni ntete rrhhooek ekbe bergrgee

EL EL

34°00'S 34°00'S

EM EM

CapeStStFrancis Francis Cape

Cape CapeStStFrancis Francis

EN EN

35°00'S 35°00'S

EO EO

Copyright Copyright©©MapStudio/MP/2016 MapStudio/MP/2016 26°00'E 26°00'E

25°00'E 25°00'E

15 15

16 16

17 17

18 18

19 19


tern Eastern Cape 9 Cape 2122

1

Cathcart 27°00'E Cathcart Waterdown 00'E Cathcart 25 Dam 25 Sole

23

22

23

24

ScaleScale 1 : 11850 000000 : 1 850 25 25 24

Butterworth Butterworth 28°00'E Butterworth Butterworth28°00'E

7 Nyokana Dw Dw 7 Nyokana Nqabar R408 Cats 12 Nqabar R408 Cats 12 351 24 KwaNofodosi Bholo Pass 24 Thomas River KwaNofodosi Toleni Bholo Pass ManubiManubi 29 34 1820 32 Toleni Qhorha Mouth Great Kei 29 17 34 Mazeppa Bay River Bridge R409 32 Great Kei Qhorha Mouth 345 Milestone Mgwali R409 17 Kei Cuttings Dohne River Bridge Mazeppa Bay Gre Mgwali Centani Oakdene Stutterheim Kei Cuttings Komga Bowker's Bay Dohne 24 Gre Centani Hogsback Oakdene Seymour 35 Stutterheim Wavecrest 21 Komga 46 Qholora Mouth Bowker's Bay Kubusi R345 24 Mpethu Grays gsback Keiskammahoek 35 Gaika's Amabele 63 27 R349 Wavecrest 21 Quko 46 30 Kubusi 53 Qholora Mouth Grave Fort Mpethu R346 Kei 14 Grays 1829 Hare Mouth R349 Morgan's Bay Keiskammahoek R352 Gaika's Amabele 63 39 Kei Road Quko 27 5355 Macleantown Tainton 23 Alice Fort Hare Braunschweig Grave Haga-Haga 19 Rooikrans R346 Kei 14 Chintsa East 25 Middledrift 17 Henderson 1829 Dam Morgan's Bay Cape Mouth R352 Martello 39 Kei Road 22 BHISHO Nature Reserve Tainton 32 23 Tower 19 Berlin 55 Braunschweig Chintsa e 20 Macleantown Haga-HagaWest 19 Rooikrans 40 R345 King William's 25 Kwelera Nature Reserve drift 17 Chintsa East Mdantsane Cape Henderson Fort 22 Dam Breidbach Pewuleni Town Gonubie Sam Knott Willshire Nature Reserve Dawn Potsdam 40 27 Nat. Res. Berlin Beacon Bay 19Zwelitsha Chintsa West 32 40 King William's Milkwood Tree 52 R346 Bonza Bay Reserve Kwelera Nature 24 Breidbach Pewuleni 1835 Sittingbourne EAST LONDON Gonubie (GreatTown Fish River 12 R347 Dawn Conservation Area) Zwelitsha Potsdam Umtiza Nature Reserve 40 17 17Beacon Bay rt Brown Breakfast 27 Vlei Chalumna Kidd's Beach Nature Reserve 16 R346 ies Vosloo Bonza Bay Kidd's Beach Milkwood Tree R345 Committees 52 du N. R. 24 72 26 45 Kayser's Nature Reserve 1835 Sittingbourne ca Pass Peddie 12 R347 20 Kayser's Beach 5 Bell 38 Umtiza Nature Reserve Wooldridge17 17 11 22 akfast Vlei Chalumna Wesley 2 Kidd's Beach Nature Reserve Hamburg Fallodon Kidd's Beach R345 es 72 R351

R352 Sole

33°00'S Fort Beaufort

i

BHISHO

Mdantsane

EK

ish

outhwell

tF

tF

Kasuka Road Grahamstown

ea Gr

ea Gr

72Settlers Church

Port Alfred 6322 Kariega oesmansriviermond Cross Great Fish Point al 1488

ish

o

EAST LONDON

72 26 45 Kayser's Nature Reserve 67 Langholm Kayser's Beach 5 Bell 63 12 Wooldridge Bathurst Nolukhanyo 11 Wesley Great Fish Point Hamburg Seafield Fallodon 14

Peddie

EL

i Ke at

Ke at

EJ

22

R352

Fort Beaufort

6 6 Malan Nico 1820 RiverSettlers SettlersPass Thomas R345 Milestone

Seafield lers Church

EM

34°00'S

Alfred

EO

35°00'S

EN

Copyright © MapStudio/MP/2016 28°00'E

27°00'E

21

22

23

24

25


INDEX TO TOWNS Clanville ...........5 EE 22 Kariega ............8 EL 20 Mount Frere .....6 EE 26 Sigoga .............6 ED 25

Town

Page

Grid

Aberdeen .........7 EJ Aberdeen Road.7 EJ Addo ................8 EL Adelaide...........8 EJ Adendorp .........4 EH Agter .................. Sneeuberg ....4 EH Alderley............6 EH Alexandria........8 EL Alice.................9 EJ Alicedale ..........8 EK Aliwal North .....5 EE Amabele ..........9 EJ Andrieskraal.....7 EL Askeaton..........5 EG Assegaaibos ....7 EM Aston Bay ........8 EM Bailey...............5 EG Balfour .............8 EJ Bamboeskloof..5 EE Barakke ...........4 EH Barkly East ......5 EE Barkly Pass......5 EF Baroda .............4 EH Baroe ...............7 EK Bathurst ...........9 EL Beacon Bay .....9 EK Bedford ............8 EJ Bedford ............8 EJ Beerley ............5 EE Behulpsaam.....4 EH Bell...................9 EK Bellevue...........8 EL Berlin ...............9 EJ Bethelsdorp .....8 EM Bethesdaweg...4 EG Bhisho..............9 EJ Bholo ...............5 EH Bholotwa..........5 EH Bisi...................6 ED Bityi..................6 EG Bizana..............6 EE Blinkwater ........8 EJ Bluecliff ............8 EL Bluegums.........5 ED Bluewater Bay .8 EM Boesmans- ........ riviermond.....8 EL Bofolo ..............8 EJ Boknes.............8 EL Bontrand ..........6 ED Bontrug ............8 EL Bonza Bay .......9 EK Bowker's Park..5 EG Braamspruit .....5 EE Brakkloof..........8 EK Braunschweig ..9 EJ Braunville.........5 EG Breakfast Vlei ..9 EK Breidbach ........9 EJ Brooks Nek ......6 EE Bruintjies-........... hoogte...........8 EJ Buntingville ......6 EG Burgersdorp.....4 EE Butterworth ......5 EH Cala .................5 EG Cala Road........5 EF Cambria ...........7 EL Cameron's Glen8 EJ Cape .................. St Francis ....8 EM Carlisle Bridge .8 EK Carlton .............4 EF Cathcart ...........5 EH Centani ............9 EJ Chalumna ........9 EK Charlwood .......7 EJ Chintsa East ....9 EJ Chintsa West ...9 EJ Ciko .................6 EH

14 14 18 19 15

17 25 20 21 19 20 22 15 22 15 16 20 20 21 16 22 23 17 15 21 23 19 19 21 16 22 18 22 17 16 22 23 21 28 25 28 20 17 22 18 20 20 20 28 17 23 20 21 20 22 21 21 22 27 17 26 19 24 23 23 15 19 16 19 16 21 24 22 15 24 24 25

Clarkebury .......5 EG Clarkson ..........7 EM Clifford .............5 EF Coega ..............8 EL Coerney ...........8 EL Coffee Bay.......6 EH Cofimvaba .......5 EH Coghlan ...........5 EG Colchester .......8 EL Colekeplaas.....7 EL Committees .....9 EK Conway............4 EG Cookhouse ......8 EJ Cradock ...........4 EH Daggaboersnek.8 EJ Dawn ...............9 EK Demistkraal......8 EL Despatch .........8 EL Dohne ..............9 EJ Dordrecht.........5 EF Dordrecht.........5 EF Drennan...........8 EJ Driver's Drift.....5 EG Dukathole ........5 EE Dulini................6 ED Dutywa.............5 EH Dwarsvlei .........4 EG East London ....9 EK Eastpoort .........8 EJ Ebende ............6 EH Elands Height ..5 EE Elandskloof ......4 EH Elliot.................5 EF Elliotdale ..........6 EG Ezibeleni ..........5 EG Fallodon...........9 EK Flagstaff...........6 EF Fort Beaufort....8 EJ Fort Brown .......8 EK Fort Donald......6 EE Fort Hare .........9 EJ Garner's Drift ...5 EH Garryowen .......5 EG Gemvale ..........6 EG Glenconnor ......8 EL Glenrock ..........8 EJ Golden Valley ..8 EJ Gonubie ...........9 EK Graaff-Reinet ...4 EH Grahamstown ..8 EK Grays ...............9 EJ Greystone ........8 EK Haga-Haga ...... 9 EJ Halcyon Drift ....6 EE Halesowen.......4 EH Halseton ..........5 EF Hamburg..........9 EK Hange ..............5 EH Hankey ............8 EM Heights ............7 EM Henning ...........4 EF Herschel ..........5 EE Heydon ............4 EG Hobeni .............6 EH Hofmeyr ...........4 EG Hogsback.........9 EJ Hole-in-the-........ Wall...............6 EH Holy Cross .......6 EF Humansdorp ....8 EM Humefield ........7 EK Humefield ........7 EK Ida....................5 EF Indwe ...............5 EF Inxu..................5 EF Jamestown ......5 EF Jansenville.......7 EK Jeffreys Bay.....8 EM Jojweni.............6 EG Joubertina........7 EM Kammiebos......7 EM Kareedouw ......7 EM

24 15 22 18 18 26 22 24 18 14 21 17 18 18 18 23 16 17 22 21 21 18 21 20 27 24 16 23 18 25 24 16 23 25 21 22 27 20 20 27 21 23 22 27 17 19 18 23 15 20 23 16 24 25 18 20 22 23 16 14 19 21 15 26 18 21 26 27 16 14 14 22 22 24 21 15 16 26 13 14 14

Karringmelk- ...... spruit.............5 Kasouga ..........8 Katkop .............6 Kayser's Beach.9 Kei Mouth ........9 Kei Road..........9 Keiskamma-....... hoek..............9 Kendrew ..........7 Kenton-on-Sea 8 Kidd's Beach....9 King William's .... Town .............9 Kinirapoort .......6 Kirkwood..........8 Kleinpoort ........8 Klipfontein........8 Klipplaat...........7 Klipspruit..........6 Knapdaar .........4 Knoetze ...........7 Koloniesplaas ..4 Komga .............9 Kruisfontein......8 Kubusi..............9 Ku-Mayima ......5 KwaNobuhle ....8 KwaNofodosi ...5 KwaNojoli.........8 KwaNonzame ..4 Lady Frere .......5 Lady Grey ........5 Lahlangubo......6 Langdon...........5 Langholm.........8 Lehlohonolo .....6 Lekkerdraai......5 Libode..............6 Liddleton ..........8 Lingelihle .........4 Loerie...............8 Long Hope .......8 Louterwater......7 Lovane.............4 Lower................. Adamson.......4 Lower Pitseng..5 Lufuta...............5 Lundin's Nek....5 Lusikisiki ..........6 Macleantown ...9 Maclear............5 Mafube.............6 Magusheni .......6 Makanas Kop...8 Manubi.............9 Marais..............7 Marais..............7 Masango..........5 Mazeppa Bay...9 Mbashe............6 Mbashe Bridge.5 Mbotyi ..............6 Mdantsane.......9 Mgwali .............9 Middelburg.......4 Middledrift ........9 Middleton .........8 Miller ................7 Misgund ...........7 Misty Mount .....6 Mkambati .........6 Mlungisi ...........5 Molteno............4 Morgans Bay ...9 Morristown .......5 Mortimer ..........4 Moshesh's Ford.5 Motkop.............5 Mount Ayliff ......6 Mount Fletcher .6

EE EL EE EK EJ EJ

22 20 25 22 24 22

EJ EJ EL EK

21 15 20 23

EJ ED EL EK EK EK ED EE EK EH EJ EM EJ EF EL EH EJ EG EG EE EE EG EL ED EE EG EJ EH EM EJ EL EF

22 25 17 16 17 15 27 19 13 16 23 16 22 24 17 24 18 16 22 22 25 24 20 26 20 26 20 18 16 18 13 18

EF EE EG EE EF EJ EF ED EE EK EJ EJ EJ EE EJ EG EG EF EK EJ EF EJ EK EK EL EG EF EG EF EJ EF EH EE EE EE EE

19 24 23 23 27 23 24 25 27 20 25 15 15 20 25 25 24 28 23 22 16 21 18 14 13 26 28 21 19 24 22 18 23 22 27 25

Mount Steward 7 Mpethu.............9 Mputi................5 Mqanduli ..........6 Mthatha............6 Munyu..............5 Mzanomhle ......4 Ncanara ...........8 New England ...5 Ngabeni ...........6 Ngcobo ............5 Ngqeleni ..........6 Ngqungqu ........6 Nieu-Bethesda.4 Nobantu ...........6 Nobokhwe........5 Nolukhanyo......9 Nomonde .........4 Nothintsila........6 Nqabarha.........6 Nqamakhwe.....5 Ntibane ............ 6 Ntisana ............5 Ntshilini ............6 Ntywenka.........6 Nyokana ..........6 Oakdene ..........9 Oatlands ..........7 Old Bunting......6 Old Morley .......6 Olive ................4 Ontspringen .....4 Osfontein .........4 Oviston ............4 Oyster Bay.......7 Palmerton ........6 Palmietfontein..5 Paradise ............ Beach ...........8 Patensie...........8 Paterson ..........8 Pearston ..........8 Peddie .............9 Petersburg .......4 Pewuleni ..........9 Port Alfred........9 Port Elizabeth ..8 Port Grosvenor.6 Port St Johns ...6 Post Chalmers .4 Potsdam ..........9 Qamata............5 Qholora Mouth.9 Qhora Mouth....9 Qiba .................5 Qombolo ..........5 Qombolo ..........5 Qoqodala .........5 Queenstown ....5 Quko ................9 Qumbu.............6 Redoubt ...........6 Rhodes ............5 Riebeeck-East .8 Rietbron ...........7 Riverside..........6 Roamer's Rest.6 Rode ................6 Rooispruit ........4 Rosmead .........4 Rossouw..........5 Rothmere.........6 Sada ................5 Salem ..............8 Sandvlakte.......7 Schoombee .....4 Sea View ........8 Seafield............9 Seymour ..........8 Sheldon ...........8 Sherborne........4 Sidwadweni .....6

EK EJ EH EG EG EG EE EL EE EE EG EG EG EG EG EG EL EF EG EH EH EG EH EG EF EH EJ EJ EG EG EE EE EE EE EM EF ED

15 24 24 25 25 24 19 18 22 28 23 26 25 15 25 23 21 19 26 25 23 25 24 27 25 25 21 14 26 26 19 19 19 18 15 27 22

EM EL EL EJ EK EH EK EL EM EF EG EH EK EG EJ EJ EF EH EH EG EG EJ EF EE EE EK EK EC ED EE EF EF EF EH EH EL EL EF EM EL EJ EK EF EF

16 16 18 17 21 16 21 21 18 28 27 17 23 22 24 25 23 22 23 21 21 24 26 28 23 19 12 28 25 26 17 16 22 25 21 20 14 17 17 21 20 18 16 25

Singisi ..............6 ED Sittingbourne ...9 EK Skoenmakers- ... kop................8 EM Slangrivier........7 EM Sneezewood....6 ED Somerset East .8 EJ Southeyville .....5 EG Southwell .........8 EL Spitskopvlei .....4 EG Spring Valley....4 EH St Cuthberts.....6 EF St Francis Bay .8 EM St Marks ..........5 EH Sterkspruit .......5 ED Sterkstroom .....5 EG Steynsburg ......4 EF Steytlerville ......7 EK Stoneyridge .....6 EF Stormberg........4 EF Stormsrivier .....7 EM Studtis..............7 EL Stutterheim ......9 EJ Summerstrand .8 EM Sunland ...........8 EL Sunnyside........8 EM Suurberg..........8 EK Swaershoek.....8 EJ Swartkops........8 EM Swempoort ......5 EF Syfergat ...........5 EF Tabankulu ........6 EE Tafelberg..........4 EG Tainton .............9 EJ Taleni ...............5 EH Tarkastad .........4 EH Teebus .............4 EF Teviot ...............4 EG Thaba Chitja ....5 ED The Haven .......6 EH Thembalesizwe.7 EJ Thomas River ..5 EH Thornhill...........8 EL Thornhill...........8 EM Tina Bridge ......6 EF Toleni ...............5 EH Tombo..............6 EG Tsazo ...............5 EG Tshani ..............6 EG Tsitsa Bridge ....6 EF Tsolo ................6 EF Tsomo ..............5 EH Tylden ..............5 EH Ugie .................5 EF Uitenhage ........8 EL Uitkyk...............3 EH Ulva .................5 EF uMasizakhe .....4 EH Umtentu ...........6 EF Umzimkulu.......6 ED Venterstad .......4 EE Vickers.............5 EE Viedgesville .....6 EG Vineyard ..........5 EE Visrivier............4 EG Vondeling.........7 EK Waqu ...............5 EH Waterford.........8 EK Wavecrest........9 EJ Wesley.............9 EK Whitmore .........5 EG Whittlesea........5 EH Willowmore ...... 7 EK Willowvale........6 EH Witdrift .............8 EJ Witmos.............8 EJ Witteklip ...........8 EM Wolwefontein ...8 EK Woodlands.......7 EM Wooldridge ......9 EK Xolobe .............5 EH Zwelitsha .........9 EK

27 22

17 15 27 18 22 20 16 19 25 16 22 22 20 18 15 26 19 13 14 22 18 18 17 18 17 18 21 20 27 17 24 24 19 18 18 24 26 14 22 16 17 26 23 27 23 26 25 25 23 21 24 17 13 23 15 28 28 18 22 25 21 17 12 21 16 25 22 24 21 13 25 16 18 17 16 14 22 23 22


INDEX

INDEX Air Products

87

Amatola Water

1

Aristopix Fleet Management Solutions

39, 40

Blue Lagoon Hotel & Conference Centre

59

Border Kei Chamber of Business

26

Caltex Eastern Cape Marketer

22, 118

Credit Guarantee

54

Eastern Cape Development Corporation (ECDC)

9, OBC

Edison Power

91

Eastern Cape Gambling & Betting Board (ECGBB)

14

Enterprise Development Consultants

IBC

Industrial Development Corporation (IDC)

31, 32

Masisizane Fund

34

Mercedes-Benz South Africa

7, 82

Nedbank

5, 102

Nelson Mandela Bay Business Chamber

24

Prime Automation

85

Radisson Blu

62

Sarah Baartman District Municipality

114

St Francis Links

61

Transnet National Ports Authority (TNPA)

42, 44, 46, 48

Tsogo Sun

57

Unemployment Insurance Fund (UIF)

EASTERN CAPE BUSINESS 2016

3

128


The Investment Incentive Experts Enterprise Development Consultants (EDC) is a privately owned consultancy practice which specialises in advising companies of those incentive opportunities offered through the Department of Trade and Industry (DTI) and the Industrial Development Corporation (IDC). The DTI and IDC have formulated a range of enticing incentive programmes whereby new or expanding entities are able to apply for a range of positive investment support measures. These apply across a range of industries. Incentive programmes administered by the DTI and IDC include inter-alia: • Manufacturing Competitiveness Enhancement Programme (MCEP) • Production Incentive Programme • Aquaculture Development and Enhancement Programme (ADEP) • Automotive Investment Scheme (AIS) • People Carrier Automotive Investment Scheme (P-AIS) • Critical Infrastructure Programme (CIP) • Export Marketing Investment Assistance programme (EMIA) • Black Industrialist Scheme (BIS) The EDC has offices in Cape Town and Port Elizabeth, with a client base extending throughout South Africa. Management of EDC collectively have in excess of 40 years’ experience in DTI and IDC-related incentives and are fully engaged in all operational administrative processes, from the initial application compilation through to the final claims submission.

EDC contact details Tel: 041 373 7711 Fax: 086 766 6949 www.edc-pe.com

EDC operates on a performance basis and their services are allencompassing. These include the outsourced management of their clients’s complete incentive process. EDC’s clients enjoy exceptionally high success rates in securing relevant programme approvals, together with the related incentive benefits.



Eastern Cape Business 2016 edition