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2018 EDITION

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

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Water Scarcity in South Africa Sazile Qweleka, Amatola Water’s Operations Optimisation Manager, presents the case for new thinking about wastewater recycling and re-use.

With most parts of South Africa experiencing a severe drought, the severity of the water shortage in the country is inescapable. Dam levels in the Eastern Cape continue to decline, despite rains that have brought some relief. According to a recent report by the National Department of Water and Sanitation, the total storage of water in the Eastern Cape stands at 56.1%, compared to the same time last year when the average dam levels were at 66.4%. This trend, coupled with the severe drought conditions, an increasing population and industrial growth, and environmental degradation, forces us to look at accelerated innovations in water resources and water services delivery in order to sustainably meet future water demands. In her budget speech in May 2017, the Minister of Water and Sanitation, Nomvula Mokonyane, highlighted the country’s heavy reliance on surface water as a concern. She added that it was for this reason that the Department was planning to ensure that there is a mix of surface and ground water, which includes

options such as groundwater; wastewater re-use (grey water); desalination; and rainwater harvesting, among others. Wastewater re-use, recycled or reclaimed or grey water refers to former wastewater that has been treated to remove solids and certain impurities, and then re-used for a variety of applications including landscaping and irrigation, for example. Although costly, many coastal cities appear to prefer desalination as a solution to the water crisis. However, unlike its desalination counterpart, an added advantage of wastewater recycling and re-use is that it requires far less electricity.

A resource, not waste We need to start dealing with wastewater differently and explore wastewater re-use and recycling as a resource rather than waste. Leading the cities in this area is the city of Durban, which is home to the country’s first private water recycling plant. The idea for the plant was born in 1993 out of concern for the area’s increasing demand and limited water resources. This plant was later commissioned in 2001. The plant treats 47.5-million litres of domestic and industrial wastewater to a near-potable standard for sale to industrial customers, with an added benefit of a lower tariff when compared to the normal tariff. The plant has helped to free up sufficient drinking water for approximately 300 000 people in the area. In turn, this has reduced the demand for potable water and the quantity of effluent that is returned into the environment. Using Durban as an example of a success story of how wastewater recycling and re-use can be managed and used, it is clear that the future of water sustainability lies in looking at sources of water that will not only mitigate the effects of the drought, but also complement the existing sources.


PROVIDING high quality laboratory services and reliable testing results to our clients

As the first ISO 17025:2005 accredited laboratory in the Eastern Cape, the Amatola Water lab is assured to provide the highest standards of quality in laboratory services. This nationally recognised accreditation confirms that Amatola Water has a quality management system and the technical requirements in place to offer water sample analysis in line with SANS 241 standards, and provide reliable and accurate results data through a comprehensive water quality monitoring and management programme - giving quality assurance to customers that water quality standards are being met.

Amatola House 6 Lancaster Road, Vincent, East London Tel: (043) 707 3700 aw@amatolawater.co.za www.amatolawater.co.za


CONTENTS

CONTENTS Eastern Cape Business 2018 Edition

Introduction Foreword 5 A unique guide to business and investment in the Eastern Cape.

Special features Regional overview 6 The Eastern Cape is creating a new Big Five as maritime activities, renewable energy and tourism grow in importance to the provincial economy. Renewable energy is creating new opportunities The Eastern Cape is a wind power hot-spot.

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International events are driving the tourism industry 18 St George’s Park cricket ground is a world leader in lighting.

Economic sectors Agriculture 40 The Eastern Cape is South Africa’s top livestock provider. Forestry 44 Thousands of hectares have been identified for new planting. Aquaculture 45 An aquaponics project will provide food for poor people. Agriprocessing 46 Expanding agriprocessing will create jobs. Manufacturing 48 Clusters are promoting niche manufacturing. Automotive and components Beijing Automotive’s new factory is a major boost for the sector.

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Water 52 A large project is planned for the Umzimvubu River.

EASTERN CAPE BUSINESS 2018

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ENGINEERED EFFICIENCY

A SPECIALISED INDUSTRIAL COMPLEX FOR GROWTH ORIENTED AUTOMOTIVE MANUFACTURERS sun visors

fluid pipes

head liner

parcel tray

door modules plastic components

fuel tank

boot liner

impact dampers

full exhaust system wheels & tyres

cockpits

carpets

seat components

suspension components

The East London IDZ Automotive sector is home to 16 operational automotive manufacturers. These world renowned manufacturers are 1st and 2nd tier component suppliers to global auto players such as Mercedes-Benz, BMW, Volkswagen and General Motors. With tailor made solutions to suit each investor, the East London IDZ boasts a 16 hectare custom built Automotive Supplier Park (ASP) from which components and specialised services destined for the local and export market depart. The ASP is also home to the first Metal Surface Treatment (aluminium treatment and E-Coating) facility in the greater Border area. Fitted with state of-the-art technology, the facility has installed value adding services to the automotive sector, thereby enhancing the attractiveness of the IDZ by promoting shared services to create efficiencies, through enabling infrastructure which can be used by multiple investors. This world class ASP’s appeal has sparked interest from both local and international manufacturers. As such, plans are at an advanced stage to expand its foot print to meet current and future demand. Through the ELIDZ’s customised solutions, these component manufacturers are able to: • •

Access dedicated utilities and services specially designed to stimulate industrial productivity, expansion and export competitiveness Experience time and cost savings arising from shared logistical and supply chain arrangements

To take advantage of a comprehensive package of industry support assistance, national trade and export promotion incentives, call us now. T: 043 702 8200 | E: cyndi-lee@elidz.co.za | www.elidz.co.za


CONTENTS Education and training  54 Nelson Mandela University has launched an Ocean Sciences Campus. Banking and financial services  New banking licences are being issued. Development finance and SMME support Aquaponics and forestry are receiving support.

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58

Government Eastern Cape Provincial Government  An overview of the Eastern Cape provincial government departments.

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Eastern Cape Local Government  An overview of the Eastern Cape municipalities.

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References Sector contents 

38

Index64

Free State

EASTERN CAPE PROVINCE Britstown N12

Northern Cape

Colesburg

Victoria West

N1

Molteno

N2

Lusikisiki

Elliot Mthatha

Beaufort West

Pearston East

Knysna

N2

Kareedouw Plettenberg Bay

Adelaide

Cookhouse N10

Steytlerville Joubertina

Kirkwood

Paterson

Uitenhage Humansdorp Jeffreys Bay

Tsomo

Sada

Somerset

R63

Aberdeen

Klipplaat

Willowmore

N9

Cradock

Graaff-Reinet

N9

Rietbron

Queenstown

Tarkastad

R72

N Butterworth

Stutterheim

Komga Bhisho N2

King William's Town Grahamstown

EAST LONDON Hamburg

N2

Port Alfred

PORT ELIZABETH

Port St Johns

Coffee Bay

Cathcart Fort Beaufort

Kokstad

Port Edward R61 Maclear Mount Frere

Dordrecht Indwe

R61

Western Cape

63

6

N6

R56

Mount Ayliff

Hofmeyr

Uniondale

EASTERN CAPE BUSINESS 2018

Steynsburg

Middelburg

Ixopo

R56

Fletcher

Barkly East

Jamestown

Three Sisters

R61

Eastern Cape municipal map.

N10

Matatiele Mount

Lady Grey

R58

Burgersdorp

Hanover

Maps Eastern Cape regional map. 9

Aliwal North

Oviston

KwaZuluNatal

LESOTHO Zastron

Rouxville Bethulie

De Aar

INDIAN OCEAN Motorway Main Road Railway


CREDITS

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Rugshaana Abrahams and Tyra Martin Production: Lizel Olivier Ad sales: Sydwell Adonis, Nigel Williams, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Jeremy Petersen, Shiko Diala, Joseph Gumbo, Vanessa Wallace, Reginald Motsoahae and Siya Sthunda. Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

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

T

he 2018 edition of Eastern Cape Business is the 11th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape’s investment and business opportunities are highlighted in this publication. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the role of the renewable energy sector on the region’s future and on the growth of tourism (spurred by the hosting of international events such as the 2018 IRONMAN 70.3 World Championship, the first-ever cricket Test match to be played at night at St George’s Park and Vodacom Origins of Golf events at St Francis Links). All of the major business chambers in the province have made contributions to the journal. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.easterncapebusiness.co.za. Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. .

Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

PUBLISHED BY

DISTRIBUTION Eastern Cape Business is distributed internationally on outgoing and incoming trade missions, through the Eastern Cape Development Corporation (ECDC); 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, as well as major airport lounges. 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 | Cover: Globeleq’s Jeffreys Bay wind farm has installed capacity of 138MW and was one of the first wind power facilities to come on stream as part of the national governmnet’s independent power producers’ programme. Pictures supplied by Thinkstock.com, VW South Africa, Nelson Mandela University and Transnet National Ports Authority.

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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

ISSN 1995-1310 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.

EASTERN CAPE BUSINESS 2018


A REGIONAL OVERVIEW OF THE

EASTERN CAPE PROVINCE The Eastern Cape is creating a new Big Five as maritime activities, renewable energy and tourism grow in importance to the provincial economy.

T

he Big Five is a well-known concept describing the most sought-after game animals to be spotted on safari. The Eastern Cape is moving towards an economic equivalent, where five sectors will underpin the provincial economy. For many years the Eastern Cape has relied on two giants to drive growth: agriculture and the automotive industry. The latest trends suggest that three other sectors are playing an important role in advancing economic progress in the coastal province: the maritime sector (including oil and gas and logistics); renew-

able energy (primarily wind); and an expanded tourism sector. Historically, wool and ostrich feathers were the region’s first exports and these items are still in the export basket (with wool more prominent than ostrich feathers). In time, the Eastern Cape also became a global leader in mohair, the luxury fibre taken from Angora goats. This position has strengthened in recent years. The fertile Langkloof Valley in the west has enormous deciduous fruit orchards and the Alexandria and Grahamstown area produces pineapples, chicory and dairy products. The Eastern


SPECIAL FEATURE in offshore drilling is picking up. ExxonMobil is the approved operator of the Transkei-Algoa licence area, which covers about 45 000km². Statoil is in another partnership with OK Energy in another field. Exploration activity will mean more work on the maintenance and supply of ships in East London and Port Elizabeth. The launch of a specialist Ocean Sciences Campus at the Nelson Mandela University is another factor supporting the growth of maritime activities. The renewable energy sector is similarly supported by educational institutions in the province, which provide research and skilled graduates who can take up jobs in the sector. The University of Fort Hare is studying biogas as a possible fuel for public transport in partnership with the United Nations Industrial Development Organisation and United States Agency for International Development. The Eastern Cape has become the country’s top site for wind farms and the East London IDZ, using turbines made by a local manufacturer, Adventure Power, aims to bolster supply security with its own 1.8MW wind farm. The overall picture for renewable energy in the province is positive, but there have been setbacks, not least in the closure of DCD Wind Towers, an Industrial Development Corporation-backed venture that was supposed to manufacture wind towers from its plant in the Coega IDZ. Uncertainty about the national independent producers’ programme led to the plant’s closure in 2016. The Eastern Cape’s beaches and natural beauty have been attractive to tourists for many years, but recent initiatives to expand the province’s offerings are paying off. With a focus on events and “adventure tourism”, visitor numbers are steadily growing. The province aims to be a “Top Three” domestic destination by 2020. Spending by tourists has grown from R2.4-billion in 2013 to R4.1billion in 2015 and the average length of stay (5.3 days) is the best in South Africa. Recent investments by the Eastern Cape Parks and Tourism Agency include the construction of a conference centre at the Cape Morgan Nature Reserve. The hosting of the 2018 IRONMAN 70.3

Cape is the leading livestock province in terms of numbers of sheep and cattle and produces a quarter of South Africa’s milk. The manufacturing facilities of Volkswagen South Africa (in Uitenhage) and Mercedes-Benz South Africa (East London) are at the core of the province’s important automotive sector. It was to support this sector that industrialisation took place in the province. Smelters and metal works were built to service car makers and automotive component manufacturers. Ford engines are built in Port Elizabeth and a wide range of makers of automotive glass, catalytic converters, vehicle tyres and other parts are found in Uitenhage, Port Elizabeth and at the Industrial Development Zone (IDZ) in East London. New investments into this sector are coming from both international and local investors. Two Chinese car makers have recently invested in the Coega IDZ, First Automotive Works (FAW) and Beijing Automobile Corporation (BAIC). Local giants Volkswagen SA and Mercedes-Benz SA have invested heavily in increased capacity for new lines of production.

New impetus The three sectors identified above have all received significant boosts in recent months. In the maritime sector or Oceans Economy, national government has named the Coega IDZ as the site for a 1 000MW Liquefied Natural Gas (LNG) plant. The value to the regional economy of the project is estimated at R25-billion. A gas-fired power plant (Dedisa) started operating at Coega in 2016, and there are plans to expand this sector. Since the company Aegean Bunkering Marine Services was licensed in 2016 by the South African Maritime Safety Authority (SAMSA) and Transnet to supply bunker fuel to ships passing through Algoa Bay, an additional 845 ships have used these services, adding more than R70-million to the local economy. With the purchase by large companies like Statoil from Norway of a significant stake in exploration rights off the coast of the province, interest

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EASTERN CAPE BUSINESS 2018


SPECIAL FEATURE Amathole District Municipality Towns: Cathcart, Stutterheim, Morgan Bay, Willowvale, Butterworth, Mazeppa Bay, Alice, Bedford

World Championship event is evidence that the strategy of attracting events to the Eastern Cape is working. There will be significant financial spin-offs from this international event.

The rural Amathole District surrounds the metropolitan area of Buffalo City. Pineapple and forestry are two of the most important agricultural activities. Popular resorts on the Wild Coast attract many tourists to the area. Hogsback and other towns near the Amatole Mountains offer beautiful scenery and popular beaches. The main campus of the University of Fort Hare is located at Alice.

Assets The Eastern Cape extends over 169 580 square kilometres, representing 13.9% of South Africa’s land mass. The dry western interior is one of the country’s premier sheep-rearing destinations. The mountainous regions of the north and east of the province support timber plantations while the coastal belt in the south-west is well-watered and is good for dairy farming. The province has spectacular beaches stretching from the surfer’s paradise at Jeffreys Bay all the way to the famed Wild Coast. Two major airports at Port Elizabeth and East London provide good air links and smaller towns such as Mthatha and Bhisho have airports. Mthatha has recently received upgrades and SA Express has added five direct flights per week to and from Cape Town. The Umzimvubu Multipurpose Development Project is a large development plan that incorporates a multi-purpose dam to supply water for new irrigation, hydropower generation and domestic water supply. The Eastern Cape Development Corporation is a development financier and it is supporting enterprises in the growing ICT and film sectors through the Eastern Cape Information Technology Initiative (ECITI).

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 several fine schools. 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 in the mountainous northeast, with hiking trails for tourists. There is scope for expansion of tourist activities, and a transfrontier park between South Africa and Lesotho could boost the area’s economy. Subsistence agriculture and forestry are the major economic activities. There have been several investments in forestry in recent years.

EASTERN CAPE BUSINESS 2018

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

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SPECIAL FEATURE Quick facts: Capital: Bhisho

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 for titanium mining on seaside dunes are being contested. A Wild Coast Spatial Development Initiative exists to plot further development. Forestry is a big employer.

Major cities: Buffalo City Metropolitan Municipality (Bhisho, East London and King William’s Town) and Nelson Mandela Bay Metropolitan Municipality, (Port Elizabeth and Uitenhage) Languages: 78.8% isiXhosa, 10.6% Afrikaans, 5.6% English

Joe Gqabi District Municipality Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie

Population: 6.9-million

Cattle and sheep farming make up 80% of land use, while commercial forestry is a big contributor to employment. There are large forestry plantations at Ugie and Mount Fletcher. Maize is grown along the Orange River and wheat in the foothills of the Drakensberg mountains. Tiffindell has been revived as a ski resort.

N12

Northern Cape

De Aar Colesburg

Aliwal North

Oviston

N1

Mount

Lady Grey

N6

R56

Molteno

Mount Ayliff

N2

Dordrecht

Lusikisiki

Elliot

Indwe

Mthatha R61

Beaufort West

R61

Somerset Pearston East N10

Willowmore Steytlerville Uniondale

Joubertina

N9

Knysna

N2

Kareedouw Plettenberg Bay

Adelaide

Cookhouse

Klipplaat Kirkwood

Paterson

Uitenhage Humansdorp

Tsomo

Sada

R63

Aberdeen

N9

Rietbron

Cradock

Graaff-Reinet

Queenstown

Tarkastad

N Butterworth

Stutterheim

Komga Bhisho N2

King William's Town Grahamstown

EAST LONDON Hamburg

N2 R72

Port Alfred

PORT ELIZABETH

Jeffreys Bay

11

Port St Johns

Coffee Bay

Cathcart Fort Beaufort

Kokstad

Port Edward R61 Maclear Mount Frere

Hofmeyr Three Sisters

Western Cape

Ixopo

R56

Fletcher

Barkly East

Jamestown

Steynsburg

Middelburg

Matatiele

R58

Burgersdorp N10

KwaZuluNatal

LESOTHO Zastron

Rouxville Bethulie

Hanover Victoria West

The province’s population of 6.9-million makes it the country’s third most populous province, with about 15% of the national population.

Free State

EASTERN CAPE PROVINCE Britstown

Share of total South African population: 12.7%

INDIAN OCEAN Motorway Main Road Railway

EASTERN CAPE BUSINESS 2018


INTERVIEW

Black Management Forum – Eastern Cape Building a capable development state. Please outline the main objectives of the Black Managenent Forum.

The BMF is a non-racial, thought leadership organisation founded in 1976, with the main purpose of influencing socio-economic transformation in pursuit of socio-economic justice, fairness and equity. The BMF has been keeping corporate South Africa in check and encouraging participation of the broader South African stakeholders. The organisation stands for the development and empowerment of managerial leadership, primarily among black people, within organisations and the creation of managerial structures and processes which reflect the demographics and values of the wider society. Whereas the BMF is non-partisan, it is not apolitical. The BMF is not neutral on matters of transformation but rather pro-transformation.

Cuma Dube, Provincial Secretary - BMF Eastern Cape

What is the BMF’s current focus?

Public sector reform for the building of a capable development state and understanding the role of the black professional in driving the transformation agenda. What are the most recent achievements of the BMF in the Eastern Cape?

The BMF Eastern Cape in 2017 successfully provided a platform and hosted panel discussions regarding the challenges facing black professionals in public service. The discussions tackled the roles of officials, managers and politicians; procurement and corruption; managerial excellence, the recruitment and the retention of the best talent into public service. The role of the black professional was interrogated and whether there is reputational risk for the black professional in public service. These discussions culminated in a research report with which we aim to continue our engagements with the political leadership, civil society, labour and government officials towards strengthening the state. The Black Management Forum has always enjoyed a cordial and productive relationship with other civil society organisations, labour and the government. Our events and programmes are regularly attended by representatives of these organisations and institutions and ideas are shared in the Eastern Cape. Communication, coordination and bilateral initiatives can be improved. There is real work to be done in the Eastern Cape and it must begin with strengthening these relationships. EASTERN CAPE BUSINESS 2018

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BIOGRAPHY With an LLB from the University of Fort Hare, a Master’s in Sustainable Development and a diploma in development and renewable energy, Cuma Dube advises the Chris Hani District Municipality on low emissions and is the Managing Director of SIG Energy. Cuma is the former Executive Director of the Eastern Cape Youth Chamber of Commerce and was the BMF Eastern Cape’s Young Professional of the Year (2015) and in The Sowetan’s Top 100 Young Bosses of the Year (2016).


INTERVIEW

East London Industrial Development Zone Incentives are attracting new investors, as ELIDZ Chief Executive Officer, Mr Simphiwe Kondlo, explains. What are the most attractive incentives for investors?

A number of incentives assist our investors to lower their operational costs and maximise their profits. Specialised Customs Controlled Area benefits include: VAT exemption on imported goods, capital equipment and electrical and water supply; no import duties on raw materials and other consumables for manufacture, goods for storage and capital goods used in the custom controlled area. There are also specialised local incentives such as preferential land rental and utility rates, competitively priced land, access to national manufacturing and other generic government incentives. Additionally, after the finalisation of the transition process from an IDZ to a Special Economic Zone (SEZ) there will be new incentives such as reduced corporate income tax.

Simphiwe Kondlo

Have you received any new investments?

Despite the gloomy economic outlook, the ELIDZ managed to buck the trend and surpass its own investment target by attracting four new investors valued at R1.6-billion combined. These developments augur well for the diversification of our investment portfolio. Once fully operational, the new investments will yield an estimated 1 422 jobs. Our geographic location, quality sea and airports, abundance of natural resources, skills and world-class infrastructure bodes well for the growth of export-oriented industries. As such, the ELIDZ has hosted numerous delegations on fact-finding missions. What support services does the ELIDZ offer?

We offer soft landing support to investors through the provision of business streamlining and support services. These aid investors in the completion of investments and the start-up of local operations. A skilled team of experts assists with relocation planning, market research and intelligence, business set-up requirements including company registration, compliance, access to government services and incentives, labour recruitment and skills development facilitation. Will the upgrades to the Port of East London assist?

Our value proposition rests heavily on access to sound infrastructure such as freight, road and rail. Government has been making notable progress in revitalising infrastructure for the good of the region. Upgrades to the port will grow our international footprint and further widen the scope of the ELIDZ.

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BIOGRAPHY Mr Simphiwe Nicholas Kondlo, the Chief Executive Officer of the ELIDZ, holds a Master’s Degree in Engineering Management and has more than 23 years’ experience spanning various fields including civil and agricultural engineering. With him at the forefront, the ELIDZ is a front-runner in the field and continues to flourish as a multisector Industrial Development Zone. EASTERN CAPE BUSINESS 2018


FOCUS

A bank focused on U Ubank—servicing the broader working market in South Africa since 1975.

L

ong-standing financial services provider, Ubank has grown over the years and has succeeded in entrenching itself primarily within the gold and platinum mining communities. For over 40 years, Ubank has provided basic financial services to mineworkers and their families. Initially called Teba Cash Financial Services, the entity was formed to provide mineworkers with basic financial services during a time when other financial institutions largely ignored this sector of the market. These included facilitating the remittance of funds to families and dependents in the rural and labour-sending areas using a linked account facility. In the early 1990s, as South Africa was undergoing fundamental political change as a country, the Godsell, Motlatsi Commission was formed. This led to the transition from a savings fund into a commercial bank. In June 2000, Ubank (then Teba Bank), was granted a banking licence, although its ownership remained in the form of a trust managed by trustees who were elected by the National Union of Mineworkers (NUM) and the South African Chamber of Mines. The beneficiaries of the trust are the bank’s customers. In 2006, it was decided by NUM in conjunction with the Congress of South African Trade Unions (COSATU) to extend the banking services to other workers and it was, in reality, a workers bank. Ubank comes from a tradition of savings and has continued to strongly promote savings as part of its offering. In 2007, Ubank welcomed a new vision, mission, set of values and strategy. Essentially, this saw Ubank set itself up to become the “Workers Bank of Choice”. In October 2010, the name of the bank was changed to Ubank and was launched as a retail bank for the mass market. Since the birth of the new brand and strategy, various initiatives to improve and expand the business have been delivered. EASTERN CAPE BUSINESS 2018

The need for this change was driven by the desire to extend services beyond the niche market that Ubank had traditionally serviced, broadening its customer base and introducing products and services relevant to this market. The first phase of the re-positioning focused on changing the corporate identity and introducing an innovative packaged product range relevant to the needs of the people of South Africa, entrenching the bank amongst workers, their families and their communities. The Ubank name was derived from the bank’s proud identity, heritage and uniqueness. The logo represents the fingerprint of the workers who have built the bank over 40 years into a truly homegrown South African bank. Ubank serves the primary banking needs of close to 500 000 individuals, safeguarding over R3 billion worth of their deposits. Ubank offers basic banking products that can be described as follows: • • • • • •

Transaction accounts Debit cards (issued with VISA) Lending products (e.g personal loans) Savings (fixed deposits, Save Together) Funeral plan products Cellphone banking (SMS notifications).

Ubank is driven by a social consciousness that underpins all they do – their customers are their owners and they exist to serve them through the provision of financial services that meet their changing needs and improve their lives. One of the pillars driving the Ubank business strategy is community development. Investing in the communities in which they operate forms a critical part of how they do business, hence the bank’s commitment to allocate 4% of the pre-tax profits to community development annually. Driven by the social objective of improving the quality of their community’s lives, Ubank’s

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CSI focus is on empowering its communities through community investment in sustainable educational programmes. The nature of the business ensures that community development and participation remains at the core of how Ubank conducts its business. This is to ensure that continuous and sustainable community investment initiatives are made that benefit their customers and the communities where they operate.

The mandate and plan to service the broader working market in South Africa have become imperative in order to extend affordable financial services to South Africa. Ubank has a strong presence and customer accessibility and they are proud of their long association with the mining industry, including mineworkers, mining companies, all Labour Unions and the Chamber of Mines, who have played a significant role in the development of this bank.

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EASTERN CAPE BUSINESS 2018


SPECIAL FEATURE

Renewable energy is creating new opportunities The Eastern Cape is a wind power hot-spot.

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he Eastern Cape is home to two of the eight Renewable Energy Development Zones (REDZs) designated in a national programme. The Environmental Management Services unit within the Council for Scientific and Industrial Research (CSIR) was responsible for identifying suitable areas around the country. They had to meet three criteria: the presence of good wind or solar resources, good environmental conditions that could withstand the presence of solar panels or wind turbines and a high need for socio-economic development. Cookhouse and Stormberg are the two Eastern Cape areas that are REDZ and hopes are high that these concentrations of activity will lead to economic growth and the creation of jobs for local communities. There are already 12 wind farms in the Eastern Cape. Because of this concentration of facilities, the South African Wind Energy Association (SAWEA) chose the province for its first SAWEA Provincial Community Trust Workshop. With large amounts of money coming into communities, proper attention must be paid to who decides how that money is to be spent and some regional planning is needed. It does not make sense for each wind farm and its closest community to plan a school and a crèche if that is what the neighbouring community is also planning. Community trusts have been established as each of the independent power producers must involve communities living within a 50km radius of a wind farm. Brenda Martin, CEO of SAWEA, outlined some of the issues tackled at the workshops, “We explored a range of approaches that are applied when establishing the trusts for the benefit of local communities. Many of the initiatives are focused on education, health and the empowerment of women.” EASTERN CAPE BUSINESS 2018

The National Department of Energy has a programme to attract private investment in renewable energy, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). According to figures released by the Department of Energy, the REIPPPP by 2016 had not only delivered multiple millions in investments, but also created more than 30 000 jobs and benefited local community development to the tune of R256-million. However, the national utility, Eskom, has created some uncertainty by refusing to sign new power purchase agreements. Although Eskom’s shareholder, the Minister of Energy, said that the REIPPPP was still government policy, it was not until 2017 that the process was started again, but this time with a limit imposed by the state on how much could be charged for energy in new contracts. Fully a quarter of the projects so far approved in this national programme have been allocated to the Eastern Cape with 91% of these being wind projects and the balance solar photo-voltaic. A vast new industry has been created in a very short space of time, and investors still have an appetite for more. If the power produced through the REIPPPP were consumed where it is made, the Eastern Cape would soon be producing 60% of its own needs (the power is in fact sent to the national grid for redistribution). The province consumed 8 358GWh electricity in 2015 or 3.7% of the national total. The average lead time in the projects that have so far been approved in the province is two years, with local content averaging out at about 47%. When the projects are complete, R142.9-billion will have been spent on procurement, R65.7-billion of which will be local. Wind projects in the province include Globeleq’s 138MW Jeffreys Bay facility, the 140MW

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SPECIAL FEATURE Cookhouse project (African Clean Energy Developments) and two run by Cennergi at Tsitsikamma (94MW) and Bedford (134MW). Cennergi is a joint venture between South African resources company Exxaro and Indian company Tata Power. There are several other projects with capacities ranging from 20MW to 97MW. Scatec Solar has commissioned a plant in Burgersdorp. The 75MW plant has panels mounted on single axes, enabling them to track the sun and optimise electricity generation by a further 20%. The Coega IDZ is working on positioning itself as a renewable energy hub. The Department of Trade and Industry (dti) offers various green technology incentives.

POWERX IS ROLLING OUT GREEN ENERGY POWERX has recently signed up with AKM Foods to supply power to all the KFC outlets in Nelson Mandela Bay. KFC, as the largest quick service restaurant in South Africa, has shown huge commitment to growing the green economy by making great strides in transforming the energy landscape in Nelson Mandela Bay. POWERX has also signed up with Mondelez to supply power to its head office and operations in Port Elizabeth. Mondelez as a global company has shown dedication to sustainability and reducing their carbon emissions by consuming power supplied by POWERX. POWERX now supplies over 40 national and local customers in Nelson Mandela Bay and its aim is to expand the number of customers supplied exponentially over the next several years.

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EASTERN CAPE BUSINESS 2018


POWERX Stimulating the use of clean power.

POWERX is the pioneer in the trading of electricity in South Africa and is supplying various businesses with “green� power.

Renewable Energy Certificates (RECs) provide proof of origin that the power has been generated from a renewable resource. This represents additional value for the customer and shows commitment to reducing carbon emissions.

POWERX holds a NERSA-issued electricity trading licence which allows it to buy and sell power generated from renewable/clean resources, using the national grid network to facilitate such trade. POWERX uses the municipal grid network where such agreements exist with the relevant municipalities.

POWERX is focused on the end goal of stimulating the production and consumption of clean power in South Africa.

As an aggregator, POWERX is able to assume and actively manage the risks that generators and customers cannot assume or mitigate themselves. POWERX currently operates exclusively in Nelson Mandela Bay Municipality, however we have recently secured agreements with the Umjindi and Mandini municipalities which enables us to use their distribution network to trade in that territory. POWERX is well advanced in its plan to expand its footprint to cover more municipal regions across South Africa. DYNAMIC PROPOSITION POWERX offers a dynamic value proposition to municipalities which includes stimulation of the generation of power within the municipal borders, boosting local economic development, reduction in carbon emissions, revenue protection through active management of embedded generation to avoid grid defection, and cost avoidance through reduction in existing ancillary electricity charges.

CONTACT INFO Physical address: 6th Floor, The Mall Offices, 11 Cradock Ave, Rosebank, Johannesburg, Telephone: 0861 POWERX (769379) Email: info@POWERX.energy Website: http://www.powerx.energy

The procurement of power via POWERX ensures predictability of annual cost increases and also allows us to provide a discount on power supplied to customers depending on their respective tariff structure.

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SPECIAL FEATURE

International events are driving the tourism industry St George’s Park cricket ground is a world leader in lighting.

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he Eastern Cape has superb beaches and magnificent game parks and nature reserves. The fact that parks such as the Addo Elephant National Park are malariafree at all times is an additional selling point for foreign visitors. Port Elizabeth is the end-point of the famous Garden Route, which extends westwards to Cape Town. Golfers in search of the rare pleasures of links golf have two courses to savour in Port Elizabeth (Humewood Golf Club) and St Francis Links, just an hour down the coast. EASTERN CAPE BUSINESS 2018

East London has its own fine beaches and is the logical starting point for trips to the magical Wild Coast. The interior of the Eastern Cape is home to several high-end private game reserves such as Shamwari, Mount Camdeboo and Kariega Game Reserve. Some luxury game lodges are located within national parks, such as the Gorah Elephant Camp, which is run by Hunter Hotels and forms part of the Addo Park. Luxury brands sometimes create a chain for their customers, so visitors might stay at the boutique Summerstand hotel in Port

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SPECIAL FEATURE Elizabeth, No5 By Mantis, on their way to another Mantis property, the Oceana Beach and Wildlife Reserve. The Eastern Cape Parks and Tourism Agency runs 34 provincial nature reserves within the province. The Addo Elephant National Park is arguably the province’s greatest attraction and is under the control of South African National Parks. Addo extends over 180 000 hectares on land (with thousands more square metres in the marine reserve) and 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. The park includes a marine section where great white sharks and whales can be sighted. The Camdeboo, Mountain Zebra and Garden Route national parks offer terrains ranging from dry karoo veld and rolling mountain plateaus to forests on a rocky coastline. In addition to all of these natural treasures, the Eastern Cape has a strong history and culture offering. More than a century of interaction between British colonial forces and Xhosa-speaking groups created a frontier zone that today is rich in historical interest. The Mandela Bay Development Agency has started an initiative in Port Elizabeth that relates to the struggle against apartheid. Oliver Tambo, Govan Mbeki, Steve Biko and Winnie MadikizelaMandela were among the many Eastern Cape men and women who played major roles in that battle. The MBDA has come up with Route 67, which consists of 67 public art works symbolising the 67 years spent by Nelson Mandela in the service of his fellow man. It starts at the Campanile (a tribute to the 1820 Settlers from Britain) and forms part of the greater Nelson Mandela Bay Arts Journey. It passes the Great Flag on the Donkin Reserve. The famous steam train, the Apple Express, made a modest comeback in December 2017 when a special train ran along the narrow gauge between King’s Beach and the Port Elizabeth airport. Funding was provided by the municipality, but a lot of hard work was done by volunteers to get the old train back on track. Re-branded for the occasion as the Nelson Mandela Bay Steam Train, the plan is to extend the line to the large regional

shopping centre on the western edge of the city, Bay West. The railway used to haul fruit to Port Elizabeth from the Langkloof valley. King’s Beach is the focus of another important plan to boost tourism. Transnet National Ports Authority has confirmed that it will transfer its manganese export facility at the Port of Port Elizabeth to the neighbouring Port of Ngqura by October 2023. The manganese currently lies in the harbour next to the tourist beach. When the facility is relocated, there will be a chance to link the edge of the harbour (which already has some tourist facilities and a yacht basin) with the popular beach and so create a waterfront with restaurants, shops and bars.

Hotels and casinos South Africa’s large branded hotel groups have a strong presence in the Eastern Cape but there are also groups whose focus is more concentrated on the province (like the Kat Leisure Group) together with independent hotels and resorts such as East London’s Blue Lagoon Hotel and Conference Centre, located in a prime spot at the mouth of the Nahoon River. Kat Leisure Group’s offering extends from the well-known Kennaway Hotel, which has been a feature on East London’s beachfront for many years, to the Queens Casino and Hotel in Queenstown and accommodation options in the mountainous interior of Katberg and Hogsback. Premier Hotels has two hotels in East London and the Mpanga Private Game Reserve just beyond the city limits. Premier Hotels also manages the East London International Convention Centre which offers 17 conference rooms in various configurations, boardrooms and an exhibition hall. Many resorts take advantage of the beautiful bays and inlets of the Eastern Cape, both along the Wild Coast, and nearer to cities, such as the Mpekweni Beach Resort which is located between Port Alfred and East London. The Eastern Cape Gambling and Betting Board issues gaming licences and regulates the industry in the province.

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EASTERN CAPE BUSINESS 2018


SPECIAL FEATURE The Radisson Blu in Port Elizabeth offers fivestar luxury overlooking Pollock Beach and it is close to the renowned Humewood Golf Club. The modern 14-storey building has 173 rooms and suites. Sun International has properties on the provincial border with KwaZulu-Natal (the Wild Coast Sun Resort and Casino) and the five-star Boardwalk Casino and Entertainment World in Port Elizabeth. Located close to the Blue-Flag Hobie Beach, the Boardwalk has won awards for excellence for its meetings, exhibitions and special events. In 2017 Sun International announced that Fish River Sun and Country Club Resort near Port Alfred was closing. It is possible that the resort could be transferred to the state with the intention that it be transferred to the beneficiaries of a land claim. Tsogo Sun has five Eastern Cape properties. In East London the four-star Southern Sun Hemingways is next to the Hemingways Casino complex and the city has one Garden Court, as does Mthatha. Port Elizabeth has a Garden Court and a SUN1, both near Humewood Beach. City Lodge has one property in East London and five in Port Elizabeth, across four brands. Along the beachfront at Summerstand can be found the Protea Marine, a 173-room Radisson Blu and the Beach Hotel. The last-named hotel is run by the Port Elizabeth Hotel Group which also has in its portfolio Hacklewood Hill Country House, The Sands @ St Francis and Pumba Private Game Reserve.

EASTERN CAPE BUSINESS 2018

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YOURS TO DISCOVER


SPECIAL FEATURE Other popular events in Port Elizabeth include the Herald Cycle Tour and the Ocean Racing Series (a world championship). Buffalo City has its own IRONMAN 70.3 triathlon. In 2018 the 11th running of the event was held in the last week of January, and East London is home to several other popular cycling and running events.

Events The FIFA World Cup hosted by South Africa in 2010 created a surge in the number of foreign visitors to the country. The Eastern Cape hosted 260 000 foreign visitors in that year and the province became a favoured destination for international travel agents. In 2017 foreign visitor numbers ticked upwards close to the 2010 peak, and a focus on events is one of the reasons for this trend. Grahamstown hosts the National Arts Festival every year, an 11-day extravaganza of performance art, music of every sort, art exhibitions, film, lectures, craft fairs and workshops. More than 240 000 people attended the 2015 festival and a study has put the economic impact of the festival at R349.9-million. Port Elizabeth hosts matches in the international Super Rugby series. The provincial tourism body calculates the public relations value of the rugby hosting as R18-million with an “economic spin off in excess of R150-million”. Port Elizabeth maintained its reputation for “firsts” when it hosted South Africa’s first-ever day-night cricket Test match in 2017. With brand-new lighting of the latest design, St George’s Park cricket ground was illuminated to the highest international standards. The innovative lighting system will now give events organisers options that never existed before in terms of lighting shows and coordinated lighting programmes that can be tuned to musicians’ needs. Another major feather in Port Elizabeth’s cap is the decision by the international 2018 IRONMAN 70.3 World Championship to designate official qualifier status to an event to be held on the first two days of September 2008. Hobie Beach will be the main focus of the event, as it is for the Standard Bank IRONMAN African Championship which has been held since 2015. The city held its first IRONMAN event as far back as 2004. Enthusiastic crowds of up to 80 000 have been known to line the route and the event will undoubtedly be a fillip for the local economy. More than 6 000 athletes are expected to participate.

EASTERN CAPE BUSINESS 2018

ONLINE RESOURCES Apple Express: www.appleexpresstrain.co.za Buffalo City Tourism: www.bctourism.co.za Eastern Cape Gambling and Betting Board: www.ecgbb.co.za Eastern Cape Parks and Tourism Agency: www.visiteasterncape.co.za Mandela Bay Development Agency: www.mbda.co.za National Arts Festival: www.nafest.co.za Nelson Mandela Bay Tourism: www.nmbt.co.za

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FOCUS

Maritz Electrical St George’s Park lighting installation is a world first.

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aritz Electrical, a premier supplier and installer of dedicated sports lighting, was tasked with erecting a new lighting system at St George’s Park cricket ground in record time. This complicated flagship project was completed on time and on budget and makes South Africa’s oldest Test match ground the first International Cricket Council-compliant, LED-lit stadium and the first such stadium to be fitted with theatrics. Where before the lighting level was 800 Lux, it is now 2000 Lux. The LED lighting makes for a much brighter light and far more flexible. No warm-up is required and so the theatrics can be employed at any time: flashing, chasing and picking out patterns in the lights. With the possibility of holding light shows before and after events, safety is improved because crowds will come in early and linger later. LED technology also reduces consumption significantly.

St George’s Park Cricket Ground.

St George’s Park, Port Elizabeth’s famous ground, was the site of the first-ever Test match to be played on South African soil, back in March 1889. Over four days in December 2017, the ground celebrated another landmark – South Africa hosted Zimbabwe in the first-ever day-night Test match. The R27-million contract was completed on time and on budget by a team from Maritz Electrical led by Warren Williams. Two project managers from Musco Lighting, the supplier, supported the installation. The lights on top of the Duck Pond Pavilion were hoisted at night, the process being illuminated by floodlight.

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Maritz Electrical

Maritz has installed lighting systems at a number of schools, universities, multi-sports stadia, including a recent big project for the Mangaung Metropolitan Municipality, the Kaizer Sebothelo Stadium. Maritz Electrical has an internationally compliant management system in place. Musco (leading supplier of electrical sports lights) is one of our established relationships that allows us to provide products of a similar quality to that of Twickenham Stadium and Arsenal’s Emirates Stadium. We work closely with our customers, ensuring that the task or project is completed on time and on budget, using the highest quality products available. We specialise in all residential and commercial areas of electrical installation and maintenance. Our electrical services include project management, design, supply, installation, testing plus commissioning and maintenance of electrical systems. CONTACT INFO 7 Wetton Road, Kenilworth, Cape Town, 7800 Tel: +27 21 703 0867 Fax: +27 21 703 0868   Cell: 071 364 7354 Email: info@maritzelectrical.co.za Website: www.maritzelectrical.co.za EASTERN CAPE BUSINESS 2018


PROFILE

The Nelson Mandela Bay Business Chamber The heartbeat of business success in the region.

Task Teams

The Nelson Mandela Bay Business Chamber is a Not for Profit Company representative of a broad spectrum of businesses in Nelson Mandela Bay. It is one of the largest business associations in the Eastern Cape, with a membership of more than 700 businesses employing over 100 000 people in a diverse array of sectors. The Nelson Mandela Bay Business Chamber is a leading catalyst for economic development. In the new strategic direction of 2018, the Business Chamber will be driving the Triple Helix concept of building relationship between the universityindustry-government as the foundation of creating a competitive Nelson Mandela Bay. The Business Chamber has been the heartbeat of business success in the region for over 150 years. The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The Business Chamber also builds in international relations to form a vital link between business owners and international markets.

The Nelson Mandela Bay Business Chamber has established a structure of seven task teams to facilitate the ease of doing business. The seven task teams of the Nelson Mandela Bay Business Chamber are: • Water Task Team • Roads and Storm Water Task Team • Electricity and Energy Task Team • Transport and Logistics Task Team • SME Task Team • Metro Collaboration Task Team • Trade and Investment Task Team

Enterprise Development & SMME Support The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that enhance and grow small businesses. In 2017 the Business Chamber successfully hosted Phase 3 and Phase 4 of the Enterprise Development Programme. Close to 100 SMEs (small to medium-sized enterprises) benefited from taking part in the different phases of the programme. In 2017 the Business Chamber finalised the launch of a pilot phase of the Export Development Programme which is set to commence in March 2018 for multisectoral SMMEs positioning themselves as emerging exporters. The programme is unique because of its integrated approach to the development of these emerging exporters. In addition, the SME Task Team

Vision To be a leading catalyst for economic development in Nelson Mandela Bay.

Mission By influencing the factors and key stakeholders that create a competitive enabling business environment. EASTERN CAPE BUSINESS 2018

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PROFILE has launched a Pro Bono Service Programme which entails the pairing of qualifying SMEs with service provider/s, who are volunteer members of the organisation. This programme will continue in 2018.

nesses in the region, who are members of the Nelson Mandela Bay Business Chamber. To download the App, please search NMBBC on the AppStore or PlayStore.

Events

Certificates of Origin

Events at the Nelson Mandela Bay Business Chamber keep business owners up to date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. Regular networking functions offer business owners the chance to make new professional contacts. The Business Chamber’s flagship events – the Annual Business Chamber Golf Day, the Annual Ladies’ Breakfast and the Annual Business Chamber Banquet – are highlights on the Bay’s business and social calendar. The Events Department reached a new record in 2017 by hosting a total of 91 events.

A Certificate of Origin is a document which states the origin of goods being exported and this “origin” is a key requirement for applying tariffs and other important criteria. As an accredited provider of this service, the Nelson Mandela Bay Business Chamber signs Certificates of Origin for member and nonmember businesses requiring the services in Nelson Mandela Bay. The Certificates of Origin Department reached a record in August 2017 when it issued the most monthly certificates it has ever completed over the past six years of recordings. This was up 22% from August 2016.

Publications and marketing

Corporate Social Investment

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. Both of these publications are ABC-certified, glossy publications. The electronic monthly newsletter The Good News provides links to good news on the local business front. The Business Chamber regularly updates its website, and can be found on popular social media platforms including Facebook, Twitter, LinkedIn and Instagram. In 2017 the Business Chamber also launched the NMBBC App: a digital, interactive platform for business to business promotion in Nelson Mandela Bay and surrounding areas. A key feature of the App is a business directory, which connects users with busi-

Because the majority of our membership’s workforce is based in the city, the region of Nelson Mandela Bay is the direct beneficiary of their Corporate Social Investment programmes – including skills development initiatives, bursaries and scholarships. Many of our member companies significantly contribute to alleviating poverty and specifically unemployment in the region of Nelson Mandela Bay through various initiatives purposed to grow the local economy. Every year the Business Chamber adopts NGO organisations and collects goods and services from our member companies in order to create awareness around the NGOs. In 2017 the Business Chamber adopted SOS Children’s Village Port Elizabeth and St Francis Hospice and collected several items from our companies, including furniture and vehicles.

CONTACT INFO 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

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EASTERN CAPE BUSINESS 2018


PROFILE

Border-Kei Chamber of Business provides key services to over 700 member organisations, and aims to be the “voice of business” in the area.

• Trade & Information desk – Chamber is geared

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. Services and benefits to members BKCOB offers the following key services: Member listing – After joining, members receive the member listing as part of their package. • Border-Kei Chamber of Business Membership Certificate. • 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 provides letters of support to members trying to access government tenders, and letters of introduction for members attempting to expand their business footprint. • Business Hi-Lite Magazine – This glossy B2B magazine is produced quarterly adding relevant topics and information/news of what’s happening. It also features chamber activities and developments in the area. EASTERN CAPE BUSINESS 2018

to provide information on almost any matter or topic. We also liaise with a number of Embassies and Trade Consuls to seek business and trade opportunities. • Investbuffalocity.com – A collaborative initiative 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 structure to facilitate members’ participation, and to enable the chamber to fulfil its role as the “voice of business”. Over 120 voluntary business professionals participate.

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Turnover BKCOB represents over 650 member organisations that generate an estimated annual turnover of R73-billion, and that employ some 58 000 people who earn an estimated annual income of R19-billion in total.

KEY CONTACTS Executive Director: Les Holbrook Head of Communications: Candi Ferreira 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 Website: www.bkcob.co.za Contact: Jacqui Austin at members@bkcob.co.za or 043 743 8438.


Promoting business in the region

PROFILE

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 highlights for the past year? The Chamber tackles many and varied projects and focusses primarily on areas where the focus is on the cost and ease of doing business. Two years ago we handed back to Provincial Treasury a pilot project titled Buy Eastern Cape. The Chamber plans to revive this initiative to mitigate the loss of opportunities pouring out of the province. Strategic steps will now be taken to increase the procurement for enterprises located within the province. Our lobbying in favour of renewable energy saw the Chamber focus on “Greening our Office.” After eight months of intense capacity building, our office in East London is now the only Chamber of Commerce and Industry in South Africa that qualifies to be listed as Green. INVEST BUFFALO CITY, our flagship project, signed MOUs with four stakeholders in our region, committing to initiatives that focus on inward investment and on retaining existing investment – on the principle of Invest, Work, Live & Play. An associated project to the IBC project is A Call-2-Action, an initiative where business partners with the municipality towards a Clean & Green City, underpinned by waste recycling. Following on from the very first Maritime Summit held in the Metro, business and the Metro have partnered with TNPA to construct a new Growth and Expansion plan to turn the ‘tired’ Port around. We also have a forum to promote opportunities in the Blue Economy. Why should investors consider the Eastern Cape? Buffalo City is equidistant from Gauteng and the Western Cape, with good logistics and competitive costs, offering air, road and sea connectivity, all reasons for a successful and vibrant East London Industrial Development Zone. This is supported by the most moderate climate all year round, a productive coastline, and a lifestyle supported by the 15-minute city. With the first automotive tertiary training academy and artisan development, skills in the manufacturing sector are adequately supported. This includes the best and most efficient IDZ in SA, that is ISO rated and has world-class infrastructure that includes a Science and Technology Park. What is the biggest challenge for regional business? Municipal services and infrastructure maintenance. Buffalo City Municipality is spending hundreds of millions on a very old infrastructure. However, great strides have been made and the future looks very positive.

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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 2018


ADVERTORIAL

A financial partner that understands your aspirations Lonwabo Daniels, Nedbank Provincial General Manager for Eastern Cape, explains how Nedbank can help business owners in the Eastern Cape.

solutions and a banking experience that is hassle-free. This allows you to concentrate on what’s most important to you – running your business,’ says Daniels. Nedbank leverages its strong market positioning with businesses and the public sector, encouraging them to bank their employees through its innovative Workplace Banking offering for employees.

There is good news for Eastern Cape business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has 27 business managers located across the province specialising in commercial industries as well as the agricultural sector. They are ready to assist you with professional advice, industry-specific solutions and a comprehensive range of financial products and services. ‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant

Nedbank also continues to build on its clientcentred strategy aimed at delivering distinctive experiences and channels of choice for businesses and clients in the Eastern Cape. This has seen the bank simplify and enhance its product offering in line with its value-added banking philosophy based on simplicity, transparency and affordability. Innovation and technological advancements, as well as training and development of staff, have been key in achieving the bank’s objectives.

Should you be interested in taking your business to the next level and improving staff engagement, and for more information about Nedbank’s specialised service offering, please call the Business Banking team on +27 (0)41 393 5969 or visit www.nedbank.co.za.


ADVERTORIAL

Innovation key pillar in meeting client needs Emile Bester, Nedbank Provincial Sales Manager, Client Network, explains how Nedbank works with communities to deliver banking solutions.

winning Nedbank App Suite™, the home loans online digital channel and Market Edge™, as well as the ‘Branch of the Future’ concept in communities both locally and nationally. ‘Working with communities is entrenched in our values. At the core of Nedbank’s offering in the Eastern Cape is a relationship-based model with a business manager dedicated to your business as the key point of entry to the bank. And we encourage you to see money differently with Whole-view Business Banking™’ says Bester.

Nedbank continues to build on its clientcentred strategy aimed at delivering distinctive experiences and channels of choice for businesses and clients in the Eastern Cape. This has seen the bank simplify and enhance its product offering in line with its value-added banking philosophy based on simplicity, transparency and affordability. Innovation and technological advancements, as well as training and development of staff, have been key in achieving the bank’s objectives. Since 2012 Nedbank has launched several first-to-market innovations, such as the award-

What does this mean for the client? Whole-view Business Banking is an additional benefit of Nedbank Business Banking and means that your business and your personal financial needs are managed in one place. ‘Because business owners and their businesses are very often financially dependent on each other, our client service teams now also offer individual banking solutions to you and your staff because we already know and understand your needs,’ says Bester.

Should you be interested in taking your business to the next level and improving staff engagement, and for more information about Nedbank’s specialised service offering, please call the Business Banking team on +27 (0)41 393 5969 or visit www.nedbank.co.za.


ADVERTORIAL

Solutions for small business aimed at creating jobs and growing the economy Nedbank’s Regional Manager of Small Business Services, Andisa Sikwebu, explains how Nedbank is committed to partnering with businesses for growth.

enterprises. For example, the Small Business Friday initiative, in association with the National Small Business Chamber, seeks to encourage everyone in South Africa to rally behind and support small businesses. The initiative calls on everyone to make a conscious decision to vote for small businesses through their hearts, feet and wallets; not only on Small Business Friday, but every day.

‘Small businesses are the mainstay of the economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the small-business sector. Over and above our smallbusiness services solutions, we provide small-business owners with support that goes beyond banking – freeing up their time to truly focus on running their businesses,’ says Sikwebu. Nedbank has built a solid reputation as a bank for small businesses through initiatives such as Small Business Friday, free small-business seminars and the SimplyBiz.co.za platform – all geared to support small- and medium-sized

SimplyBiz.co.za is a free-to-join networking portal designed especially for small businesses. It helps small businesses improve their business administration skills, keep up with the latest trends, network with other small businesses and share ideas. Nedbank experts are available to provide all the support you need when starting off. Nedbank offers simple, affordable banking solutions and value-added services (including an easy online business registration and account opening process) to get you and your business going. Should you wish to tap into our smallbusiness expertise to reach your business goals, get in touch with Nedbank’s Small Business Services. Call Andisa Sikwebu on +27 (0)41 398 8188 or send an email to andisas@nedbank.co.za.


ADVERTORIAL

See money differently with Whole-view Business Banking™ from Nedbank Money expert Sylvester Funani, Regional Manager of Retail and Business Banking in Mthatha, explains how new brand values build on the bank’s expertise to benefit its clients.

Banking experts aim to provide clients with unique business and financial solutions. ‘It forms part of our purpose at Nedbank to use our financial expertise to do good for individuals, families, businesses and society,’ says Funani. ‘At Nedbank Retail and Business Banking we believe you need a financial partner who has a deeper understanding of your business – someone who offers innovative, relevant solutions and who gives you a banking experience that is hasslefree.

Operating from offices at Nedbank Mthatha Plaza Branch, Nedbank Retail and Business Banking now has several business managers available under one roof in Mthatha. Well-known music personality Funani has been with Nedbank for 12 years and has worked in a number of roles. He prides himself on building relationships and understanding the needs of clients, saying that partnership- and relationshipbased banking is a key driver of how Nedbank conducts its business to ensure clients benefit from its money expertise. He and his team of Retail and Business

‘We look forward to continuing our relationships with our valued existing clients, and to offering our value proposition to new clients as well. At the core of our offering in Mthatha is a relationship-based model with a business manager dedicated to your business as your key point of entry to the bank. And we encourage you to see money differently with Whole-view Business Banking™ from Nedbank, as well as to take advantage of our one-stop banking service at Mthatha Plaza Branch,’ says Funani.

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


ADVERTORIAL

Relationship-based banking aimed at supporting clients in East London and surrounds Money expert Sandy Pelser, Regional Manager of Retail and Business Banking East London and Surrounds, explains how new brand values build on the bank’s expertise to benefit its clients.

business to ensure clients benefit from its money expertise. Nedbank recognises that you have a full range of banking needs that go beyond transaction and borrowing. That is why their dedicated team of specialists partners with you to give you a bird’s-eye view of your business and a different perspective on how your money needs to flow to meet your goals.

Operating from its offices at Cedar Square, Nedbank Retail and Business Banking, East London and Surrounds now has several business managers available under one roof. Sandy Pelser says her team is ready to assist clients with professional advice, industryspecific solutions and a comprehensive range of financial products and services. Pelser has been with Nedbank for 31 years and has worked in a number of roles. She prides herself in building relationships and understanding the needs of clients, saying that partnership- and relationship-based banking is a key driver of how Nedbank conducts its

‘We look forward to continuing our relationships with our valued existing clients, and to offering our value proposition to new clients as well. At the core of our offering in East London, Queenstown, King William’s Town, Mdantsane and Port Alfred is a relationship-based model with a business manager dedicated to your business as your key point of entry to the bank. And we encourage you to see money differently with Whole-view Business Banking™ from Nedbank, as well as to take advantage of our one-stop banking service in East London, says Pelser. To take your business to the next level or to get more information about Nedbank’s specialised service offering, call Sandy Pelser on +27 (0)83 628 9897, send an email to sandyp@nedbank.co.za or visit www.nedbank.co.za.


ADVERTORIAL

Using financial expertise to do good with professional advice and solutions Money expert Jordaan Roelofse, Regional Manager of Retail and Business Banking, Port Elizabeth and Surrounds, explains how new brand values build on the bank’s expertise to benefit its clients.

is a key driver of how Nedbank conducts its business to ensure clients benefit from its money expertise. He and his team of Retail and Business Banking experts aim to provide clients with unique business and financial solutions. ‘It forms part of our purpose at Nedbank to use our financial expertise to do good for individuals, families, businesses and society,’ says Roelofse.

Operating from its offices at 270 Cape Road, Nedbank Retail and Business Banking, Port Elizabeth and Surrounds, now has several business managers available under one roof. Jordaan Roelofse says his team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. Roelofse has been with Nedbank for 21 years and has worked in a number of roles. He prides himself on building relationships and understanding the needs of clients, saying that partnership- and relationship-based banking

We look forward to continuing our relationships with our valued existing clients, and to offering our value proposition to new clients as well. At the core of our offering in the Eastern Cape is a relationship-based model with a business manager dedicated to your business as your key point of entry to the bank. And we encourage you to see money differently with Whole-view Business Banking™ from Nedbank, as well as to take advantage of our one-stop banking service at 270 Cape Road,’ says Roelofse.

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

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


OLD MUTUAL ENABLING POSITIVE FUTURES IN THE EASTERN CAPE

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span investment, life assurance, asset management, banking, healthcare and general insurance. To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership boards in each province to serve as links between the province and our business. These Provincial Management Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a positive impact on the future of this province and its people.

MEET VUYISILE KOKO Chairperson of the Eastern Cape Provincial Management Board

“As a member of Old Mutual’s Provincial Management Board, I would like to promote teamwork and better relations along all Old Mutual businesses in the Eastern Cape.” As the Eastern Cape PMB Chairperson I undertake to: 1. Establish good collaboration and synergies among all business units. 2. Through the board build and maintain strong business relationships with the Provincial Leadership in both business, labour and public sectors. 3. Articulate our good story regarding our responsible business initiative to the leadership in the province. GET IN TOUCH: email EasternCapePMB@oldmutual.com

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OUR BEST ADVICE TO YOU IS: ADVICE MATTERS

short-term insurance. Our aim is to help our customers manage their finances and to plan and provide a better future for themselves and their loved ones.

As custodians of the savings and investments of millions of South Africans, we know that ADVICE MATTERS when making financial decisions.

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How to choose the right financial adviser A good financial adviser is a professional who considers all your financial needs and goals, and has the knowledge, experience and support to give you Advice That Matters™. 1. Ask to see the adviser’s training credentials and FAIS accreditation. 2. Choose a financial adviser who represents a respected financial institution. 3. Look for a financial adviser who has access to a range of specialist support services.

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Old Mutual iWYZE offers affordable and reliable insurance cover to protect everything you’ve worked for. The wide range includes car insurance, home insurance as well as value-added products such as iWYZE Scratch & Dent and iWYZE Tyre & Rim Cover. iWYZE, the wise insurance choice.

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As a responsible business committed to caring for our communities, the Old Mutual Foundation addresses socio-economic challenges through investing in:

Old Mutual Insure are experts in agriculture, engineering and marine insurance. We offer a range of insurance solutions to protect your business against everything from fire and theft to business interruption and legal liability costs.

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Old Mutual is deeply committed to playing a significant role in building a strong and financially inclusive South Africa.

• • • •

Small business development and entrepreneurship Youth unemployment through skills training Strategic education initiatives Caring for vulnerable communities

In 2016 alone the Old Mutual Foundation invested R25 686 172 in various community projects across our nation (actual grant funding payments made during 2016). In the Eastern Cape the Old Mutual Foundation invested a total of R3 536 025 across its various community empowering portfolios in the region. Our staff are the hearts and hands of Old Mutual in the communities we operate in, and we support our staff volunteers through various programmes. In the Eastern Cape province, 52 organisations have received a total R770 500 as a result of staff volunteering efforts.

ombds 7.2017 L10479.10

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ENTERPRISE DEVELOPMENT: INCAPEACE TRADING AND PROJECTS CC, EASTERN CAPE Incapeace Trading is a 100% black-owned business operating in Libode, on the outskirts of Mthatha. This manufacturing business, started by entrepreneur Anele Peti, will produce bricks and cement blocks to meet the growing demands of the local construction industry. The impact of Old Mutual’s funding will help to create around 27 jobs. In addition, local community members will benefit through a community trust that is being set up by the business, to provide a range of services. Old Mutual Foundation grant: R822 645 Masisizane loan: R4.1 million and managed. However, those businesses placed a lot of reliance on government for market access. The MASISIZANE FUND focuses on enterprise development and job creation to help alleviate poverty and improve food security in South Africa. This is achieved through encouraging entrepreneurship and capacity development and financing of micro, small and medium enterprises (SMMEs). Preference is given to SMMEs with 51% plus ownership by women, youth or people with disabilities. Masisizane Fund disbursed R147m worth of funds in 2016 through soft loans in the three high-impact sectors and facilitated the creation of 862 jobs against a target of 625 jobs. In the Eastern Cape, Masisizane disbursed funds of R28 518 891 to five clients which created 234 new jobs.

MASISIZANE CASE STUDY IN THE EASTERN CAPE WP Timbers (Pty) Ltd WP Timbers manufactures timber doors and window frames. The entity’s main market is to retail outlets and supplies its products to the following major customers – CashBuild, Buffalo Timber and Penny Pinchers. Thabo Sikukula (the client) purchased 100% of the enterprise from the sellers Mrs Kotze, 70% and Mr Heidtmann, 30%. Thabo gained entrepreneurial experience through other enterprises that he started

Masisizane provided a fund loan amount of R3.75m, SEFA a loan amount of R5m, and Old Mutual Foundation provided a R1.5m grant amount which in turn facilitated the facilitation of 145 new and retained jobs.

WANT TO HELP BUILD THE PLATFORM FOR FINANCIAL INCLUSION? Financial education is the gateway to financial inclusion. The Old Mutual Financial Wellbeing programme promotes financial literacy and awareness across market segments in line with the Financial Sector Charter. We offer highly effective financial education and support programmes to help South Africans take control of their finances. Between 2007 and end of 2016 more than 589 808 people were reached through face-to-face workshops held for communities as well as employees in the public and private sector. In 2016 more than 88 000 individuals participated in our On the Money workshops nationally, with 24 674 participating in our Fin360 programmes. In the Eastern Cape 12 910 individuals were trained in our Old Mutual On the Money financial education programme and 2 240 were trained in our Fin360 financial education programme.

For more information, contact Vuyisile Koko at EasternCapePMB@oldmutual.com


KEY SECTORS Overviews of the main economic sectors of the Eastern Cape

Agriculture

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Forestry 44 Aquaculture 45 Agriprocessing 46 Manufacturing 48 Automotive and components

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Water 52 Education and training

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Banking and financial services

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Development finance and SMME support

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OVERVIEW

Agriculture The Eastern Cape is South Africa’s top livestock provider.

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ural Enterprise Development (RED) hubs are a key plank in the strategy of the Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) to promote food security and employment creation. Small-scale farmers are supplied with equipment, infrastructure and training to help them engage with the mainstream economy. Four new RED hubs in the Eastern Cape have started producing maize and sorghum. The plan to expose smaller operators to the supply chain of big retail companies could be transformative in some areas. The DRDAR wants to increase the province’s GDP by 2% through this scheme. Almost all of the food in South Africa’s shops is produced by commercial farmers. The DRDAR is in the process of putting small farmers on its database. After a grading process, produce will then be sold on to Nicks Food, McCain Foods and Boxer Superstores. EASTERN CAPE BUSINESS 2018

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SECTOR INSIGHT Herbal and other natural products hold potential. • Rural Enterprise Development (RED) hubs are supporting smallscale farmers.

Big infrastructure projects have been undertaken in rural areas of the eastern parts of the province by the Eastern Cape


OVERVIEW Rural Development Agency (ECRDA). Three training centres focus on agriculture in the province: Fort Cox College of Agriculture and Forestry, Mpofu Training Centre (teaching mostly smallstock management), and the Tsolo Agricultural and Rural Development Institute, which is developing ties with Walter Sisulu University. The Dohne Agricultural Research Institute, near Stutterheim, developed a new breed of sheep, the Dohne merino. The provincial government hopes to find private investors who will take a majority share in two large tea estates that have failed. In their heyday, Magwa and Majola produced more than a million kilograms of tea but the current business rescue plan includes a proposal to plant additional crops such as avocado and macadamia nuts, one of the fastest growing subsectors in South African agriculture. The DRDAR will partner the private investor and local community in the projected project, and the provincial government has committed an amount of R116-million to get the scheme up and running.

Natural products There is enormous potential in the Eastern Cape for the development of natural products, for which there is a growing international market. Herbal medicines and teas and non-toxic healing methods of all sorts are all very popular.

Rural communities are being encouraged to plant products that can be sold into the natural products value chain. Various vegetables, Honeybush (Cyclopia) and Sceletium tortuosum (known locally as Kanna) are among the crops being cultivated. The Honeybush is already well known as a tea and the Kanna is deployed for mental and emotional wellness for many hundreds of years by local communities. TOMA-Now, an NGO that unlocks green business value, is working in communities to develop organic products that can find a market.

Assets The Eastern Cape has more livestock than any other South African province, and produces a quarter of the nation’s milk. The province encompasses all seven of South Africa’s biomes, which means that practically every kind of crop or animal or crop can be cultivated or raised on the province’s 169 580 square kilometres of land. These include the wool-producing merino sheep and the mohairproducing Angora goat which thrive in the dry interior. 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. Land-usage patterns have changed. Parts of the Amathole and Sarah Baartman districts that used to be sheep or pineapple farms are now stocked with game for the hunting and tourism markets. There 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 east. Improving the agricultural yield of the eastern part of the province is vital for improving food security and lifting many thousands of people out of poverty. The recent national drought has put extra pressure of rural communities.

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-known for its clementine and satsuma tangerines, as well as navel oranges. Deciduous fruits such as apples, pears and apricots are grown primarily in the Langkloof Valley. Another crop in which the Eastern Cape leads national production is chicory. The roots are used for beverages such as instant coffee, the leaves go into pet food and stock feed and unopened leaf pods become chicory endives, a sought-after salad ingredient. The province produces between 18 000 and 20 000 tons of wet root every year, mostly near the coast at Alexandria and inland from Port Alfred. The entire crop is consumed in South Africa.

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OVERVIEW The province’s pineapple crop, grown in the same part of the Sunshine Coast that produces chicory, is similarly largely for domestic consumption. Approximately 80 000 tons are produced every year and processed in East London. One of the fastest-growing sectors in agriculture is macadamia nuts. The ECRDA has partnered with a community to plant the popular nut at Ncera in the Tyume Valley north of Alice.

Sheep and goats The long-term drought which has afflicted all regions in South Africa is having an effect on all sectors, but wool-producing sheep farmers and mohair-producing Angora goat producers perhaps less so, partly because they are so well adapted to dry conditions but also because farmers can reduce their flocks. The dorper breed (which are mainly used for meat production) are found in the dry Karoo, while the higher-lying areas are more conducive to the wool-producing sheep. South Africa produces about 50 000 tons of wool annually. In 2015/16, the value of wool sold at auctions reached R3.7-billion, of which R815million was generated in the Eastern Cape. The National Woolgrowers Association (NWGA) has helped 24 000 Eastern Cape communal wool farmers get organised into 1 224 wool growers’ associations. A support programme aims to improve the genetic stock. This is funded by the National Department of Rural Development and Land Reform and involves communal farmers swopping an inferior ram for a good ram. So far, 42 000 good Merino rams have been added to the communal flocks. The South African Mohair Growers Association is based in the heart of Angora goat country at Jansenville while the industry association, EASTERN CAPE BUSINESS 2018

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Mohair South Africa, has recently built smart new headquarters in Port Elizabeth, encompassing a shop and conference facilities. South Africa produces about half of the world’s mohair. Processing of mohair takes place in Uitenhage, Port Elizabeth and Berlin outside East London. The mohair value chain includes brokers, buyers, processors, spinners, manufacturers and retailers. The Stucken group controls Mohair Spinners South Africa, Hinterveld (a mill) and a processing company called Gubb & Inggs in Uitenhage. Several agricultural companies have mohair divisions: OVK (based in Ladybrand) has a 34% shareholding the Cape Mohair Wool (CMW), a mohair brokerage; BKB (Port Elizabeth headquarters) has a mohair division that includes auctions and brokering.

Other 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. 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 health-conscious international markets. The Eastern Cape can offer a range that stretches from Karoo lamb to CAB-certified free-range beef. These niche meat products are


OVERVIEW leaner, healthier and often tastier than mass-produced alternatives. High-value meat cuts such as these will increase the value of exports from the Eastern Cape. The Border region is very strong in beef production. 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 3.4kg.

range of flavoured milks, cheeses, custards, butter, fruit drinks and ice cream under many brand labels), Dairybelle (Cookhouse near Somerset East; cheeses), Woodlands Dairy (Humansdorp; UHT milk, First Choice Brand), Sundale Free Range Dairy (East London Industrial Development Zone).

Dairy About a quarter of South Africa’s milk comes from the Eastern Cape. Although conditions vary greatly from the luscious green grasses of the Lower Tsitsikamma to the drier conditions of the Karoo, they all seem to suit milkproducing cows. The bigger dairies include Coega Dairy which was founded in 2011 and is situated in the Coega IDZ. Coega Dairy is one of South Africa’s 10 largest dairies with a turnover of more than R1.5-billion and produces milk under the Coastal label as well as under contract for various retailers. It supplies milk all over South Africa. It also manages the Famous Brands Cheese Company within the IDZ as part of a joint venture with Famous Brands. Other dairy operations include Dawson Dairy (just outside Port Elizabeth), Crickley Dairy (Queenstown), Clover Dairy (Port Elizabeth; packaging and fresh pasteurised milk processing, long-life UHT milk), Parmalat (Port Elizabeth; a wide

ONLINE RESOURCES Agri Eastern Cape: www.agriec.co.za Chicory Producers Association: www.chicory.co.za Eastern Cape Department of Rural Development and Agrarian Reform: www.drdar.gov.za Eastern Cape Development Corporation: www.ecdc.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za Milk Producers Organisation: www.mpo.co.za Mohair South Africa: www.mohair.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za National Woolgrowers’ Association of South Africa: www.nwga.co.za South African Mohair Growers Association: www.angoras.co.za

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OVERVIEW

Forestry Thousands of hectares have been identified for new planting.

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orestry is an important part of government plans to expand agri-processing. More than 3 400ha of new land has been planted and timber harvests are expected within three years. Six community projects in the district municipalities of OR Tambo and Alfred Nzo are employing more than 1 000 people. Rural Enterprise Development (RED) hubs have been established in Mqanduli and Ncorha, with funding from the Jobs Fund, the Eastern Cape Development Corporation and the Eastern Cape Rural Development Agency (ECRDA). The Mqanduli Mill is supplying the Nicks Spar in King William’s Town. According to the ECRDA, government plantations have more than 15 000ha of unplanted areas which would be easy to develop: they do not require high initiation costs because no licence is required. 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, which collectively process about 770 500 cubic metres 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 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. Forestry South Africa has set up a Business Development Unit to empower small-scale timber growers.

ONLINE RESOURCES Eastern Cape Department of Rural Development and Agrarian Reform: www.drdar.gov.za Eastern Cape Rural Development Agency: www.ecrda.co.za Forestry SA: www.forestry.co.za Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za South African Institute for Forestry: www.saif.org.za

EASTERN CAPE BUSINESS 2018

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SECTOR INSIGHT Mqanduli Mill is supplying a large retailer in King William’s Town. The ECRDA aims to transform unproductive communal land assets through commercial forestry development. The ECRDA’s Sinawo project in Mbizana has started selling timber to Sappi and intends commercialising all its operations. In 2015/16 the project earned about R7-million from the sale of timber and the total employee count rose to 208. Sappi and PG Bison are supporting these community initiatives. Paper and packaging group Sappi is working with the ECRDA and with several communities to establish forestation programmes. At Mkambathi a total of 668ha has been planted and Sappi has agreed to buy 65% of the timber produced and to give technical support where it can. 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.


OVERVIEW

Aquaculture Fish from the Karoo will soon be a popular dish.

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nvestment in local infrastructure at the East London Industrial Development Zone (ELIDZ) is focussed on localising fin fish farming technology. In 2017/18, an amount of R15-million was set aside by the Eastern Cape Provincial Government for this purpose. The Science and Technology Park at the ELIDZ could also become the site of a marine sector incubation programme to foster interest in the Oceans Economy among young people and entrepreneurs. INMED South Africa, a non-profit organisation devoted to better health and nutrition for children, in partnership with the Mondelēz International Foundation, launched a R37-million commercial-scale aquaponic system on the Missionvale campus of Nelson Mandela Metropolitan University (NMMU) in 2017. A total of 116 schools will benefit from the project. Waste water will be used to irrigate vegetables and used again to top up the fish tanks once the nutrients have been absorbed by the plants. Aquaponics Innovations produces red tilapia and catfish from its aquaponics tunnel in Grahamstown. “Karoo Catch” is the brand name for freshwater fish produced by Blue Karoo Trust, a project taking shape near the town of Graaff-Reinet. A central farm will be supported by 39 outgrowers and the aim is to produce about 14 000 tons of fish annually. The intended market is organisations that need protein in bulk such as hospitals, schools and government institutions. The risk capital unit of the Eastern Cape Development Corporation (ECDC) is supporting the venture. Aquaculture is an important part of the South African govern-

ONLINE RESOURCES Aquaculture Association of South Africa: www.aasa-aqua.co.za Aquaculture Development and Enhancement Programme: www.thedti.gov.za Coega IDZ: www.coega.co.za East London Industrial Development Zone: www.elidz.co.za Operation Phakisa: www.operationphakisa.gov.za South African International Maritime Institute: www.saimi.co.za South African Institute of Aquatic Biodiversity: www.saiab.ac.za

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SECTOR INSIGHT The provincial government is investing in fish-farming technology. ment’s Operation Phakisa strategy. The intention is to increase the aquaculture sector’s revenue from about half a billion rand, to R1.4-billion in 2019. Pure Ocean Aquaculture and Ocean Wise are located within the East London IDZ. At Zone 10 in the Coega IDZ, 250ha has been set aside for fresh fish farming and 100ha for marine farming. A processing plant and research and development and training facilities are planned. T he Co ega Development Corporation estimates that 34 250 tons of abalone, Dusky Kob and seaweed could be harvested. The National Department of Science and Technology (DST) is working with Irvin & Johnson in running a marine finfish growout pilot in Algoa Bay. A programme of the Department of Trade and Industry, the Aquaculture Development and Enhancement Programme (ADEP), offers a reimbursable grant up to R40-million.

EASTERN CAPE BUSINESS 2018


OVERVIEW

Agri-processing Manufacturers are harvesting the Eastern Cape’s excellent produce.

SECTOR INSIGHT A fibre manufacturing project has been started in Butterworth. • Mohair is a globally popular luxury product.

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gri-processing is one of the key planks of the Provincial Economic Development Strategy of the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT). Part of the strategy is decentralisation, or locating facilities in smaller or rural centres. The Local, Regional and Economic Development Fund (LRED) is supporting a fibre manufacturing project in Butterworth with cashmere wool as the feedstock. The intention is to create jobs and revive the fibre industry in the Amathole District Municipality. Wool, mohair, citrus and pineapples, dairy products and salt are some of the products of the soil of the Eastern Cape that manufacturers are turning into jerseys, scarves, jams, juices, cheeses, yoghurts and cakes of salt. EASTERN CAPE BUSINESS 2018

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The Eastern Cape has more livestock than any other South African province, produces close to a quarter of South Africa’s milk and is the second-largest producer of citrus fruits. Famous Brands has 2 600 restaurants throughout South Africa, including the brands that made their debut in Port Elizabeth, Vovo Telo and Dulce Café. Famous Brands has increased its manufacturing footprint in the Coega Industrial Development Zone (CIDZ). Zone Three of the Coega IDZ is devoted to agriprocessing. Other tenants of the Coega IDZ include logistics companies like PE Cold Storage, River Edge Trading (which trades in sugar and syrup across Southern Africa) and Cerebos. Cerebos’s 30 000-ton per annum plant at Coega was awarded a top food safety standard certification on its 70th birthday in 2015, the FSSC 22000. The East London IDZ has two aquaculture tenants and the large


OVERVIEW Sundale Dairy, as well as a regional depot of the Mediterranean Shipping Company. The Eastern Cape Rural Development Agency (ECRDA) is active in helping small-scale farmers get access to markets and to become part of the agriprocessing chain. The implementation of Rural Enterprise Development (RED) hubs is central to this strategy. RED hubs will supply tractors, harvesters and offer storage facilities and milling plants. There will also be opportunities for farmers to sell direct to members of their own community instead of shipping produce off to a distant location to be processed there. The first four hubs will be sited in the district municipalities of OR Tambo, Chris Hani and Alfred Nzo. Agri-parks will support the addition of value to primary products: these have been developed at Lambasi, Ncorha, Sundays River Valley, Butterworth, Matatiele and Sterkspruit-Senqu. The Eastern Cape Development Corporation (ECDC) also has a role in supporting agriprocessing through loans and equity arrangements: projects that have received financial support include aquaculture, the production of dietary fibre from pineapples and bamboo products. The Eastern Cape industry is further expanding as producers tend to favour high-rainfall coastal areas such as the Eastern Cape. The bigger dairies include Coega Dairy which was founded in 2011 and is situated in the Coega IDZ. The Coega Dairy in the Coega IDZ produces the brand Coastal and sells milk to all parts of South

Africa. It also manages the Famous Brands Cheese Company. which supplies product throughout the country. The province’s farmers mostly sell raw milk to two processors: Parmalat and Clover. Small-scale dairy farming presents an opportunity to develop the industry in the former homeland areas, especially in a range of previously untapped products such as milk powder, speciality cheeses and long-life milk. Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures natural cheese, processed cheese and speciality cheeses at its factory in Cookhouse near Somerset East. Ouma Rusks are still made in the small rural town where they were invented, Molteno, and the current owner of the brand, Foodcorp, has increased production volumes. Cadbury Chocolates operates a big site across the lake from the football stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its factory in East London. The Sasko mill in Port Elizabeth is the province’s only big milling plant. Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major beverage manufacturers in Port Elizabeth and Distell has a bottling plant in the city. Sovereign Foods in Uitenhage is the country’s fourth-biggest producer of poultry and has been the target of a take-over by Country Birds for some time, but the process has been dragged out because Sovereign management do not want to sell. South Africa is the second-largest producer of chicory in the world. Chicory is grown primarily in the coastal areas around Alexandria between Port Elizabeth and Port Alfred. A drying plant has been established there and the dried chicory produced is sold to coffee manufacturers nationwide for local consumption. Sugar is grown on the northern border of the province, in North Pondoland. An opportunity for diversification in crop production exists with the aloe ferox plant, which is indigenous to the Eastern Cape. Like aloe vera, which is in demand worldwide in cosmetic and health products, aloe ferox is used for a wide range of skin conditions and various medical ailments.

ONLINE RESOURCES Border Kei Chamber of Business: www.bkcob.co.za Coega IDZ: www.coega.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za East London Industrial Development Zone: www.elidz.co.za Nelson Mandela Business Chamber: www.nmbbusinesschamber.co.za Organic Agricultural Association of South Africa: www.organicsouthafrica.co.za Perishable Products Export Control Board: www.ppecb.com

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Manufacturing Clusters are promoting niche manufacturing.

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everal cluster development programmes in the Eastern Cape aim to develop specific industries by bringing together expertise and logistical support. Marine manufacturing will be the focus of the Mandela Bay Composites Cluster (MBCC). With funding from the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) and the National Department of Trade and Industry (dti), MBCC will target skills development, innovation in the field of composites and work on improving the value chain and links to the supply chain. A Non-Automotive Manufacturing (NAM) Cluster will concentrate on training, supplier development, energy efficiencies and developing new markets. An Energy Manufacturing Hub is planned for 2018. The dti also offers a Competitiveness Enhancement Programme aimed at medium-sized manufacturers. It includes a cost-sharing grant of between 30% and 50% for investments up to R50-million and up to 80% if a group of smaller companies want to collaborate on matters such as advertising. New and revived industrial parks are an important plank in provincial government policy to promote manufacturing. A new park has been launched in Queenstown, Komani Industrial Park. Seven local small businesses were involved in constructing the facility. Vulindlela Heights Industrial Park (Mthatha) has received security upgrades. The Dimbaza Industrial Park welcomed a new tenant in 2017 in cooler box manufacturer Ikusasa Green. The park has 24 tenants and serves King William’s Town. The provincial government supports diversification. With the automotive sector supplying 30% of manufacturing employment and 32% of manufacturing gross value-added, the province’s economy might be vulnerable to fluctuations in demand for vehicles. The strategy is targeting sectors where the province already has a competitive advantage (such as wool and mohair), is labour intensive, will have a broad impact and has low barriers for SMME entry. Sectors targeted include: agri-processing and food; timber; tourism; construction; chemicals; energy and mariculture. One of South Africa’s most successful manufacturers is Port Elizabeth-based Aspen. The company has 60 businesses in 50 counEASTERN CAPE BUSINESS 2018

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SECTOR INSIGHT • First National Battery has the country’s first industrial cell factory.

tries and the Port Elizabeth and East London factories play an important role in producing excellent products in bulk. The Port Elizabeth site makes more than 12-billion oral solid dosage forms every year, in addition to more than 25-million units of Murine and Clear Eye eye drops being made for export to the US. The PE complex has four components, covering oral solid, liquid, steriles and niche high-potency pharmaceutical products. First National Battery, a part of the Metair Group, has one factory at Fort Jackson, just outside East London (making plastic components) and two factories in East London: automotive batteries (10 000 per day capacity); industrial batteries (first in South Africa producing industrial cells). Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Part in Port Elizabeth and Gately Township, East London. The company recently spent R150million on doubling capacity at


OVERVIEW the Port Elizabeth plant. Mpact has 21 manufacturing sites across Southern Africa. Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Port Elizabeth. East London hosts Johnson & Johnson’s finance, operations and research and development divisions. Swedish concern Fagerhult Group has entered the South African market via an acquisition of the factory of Port Elizabeth’s Lighting Innovations, and the two subsidiary companies Arrow Lighting and Beacon Lighting. Montego Pet Nutrition is Graaff-Reinet’s biggest private employer, with more than 200 staff members working in the Karoo town’s factory. Established in 2000, the company now makes about 200 tons of product daily and supplies more than 1 000 retail outlets across South Africa. There is great potential to create more value from the excellent wool, leather and mohair that the province’s livestock produce. The production and working with merino wool and mohair fibres are skills that have been handed down from generation to generation. A fibre processing plant to spin wool and mohair fibre into yarn is planned, as is a textile mill to focus on cotton, poly-cotton and acrylic fabric. The latter is planned for the IDZ in East London, which is already home to Da Gama Textiles, whose factory has the capacity to produce 45-million square metres of fabric per annum. Da Gama makes the popular and distinctive shweshwe fabric, using its own

unique printing process which makes it very difficult for fakers to copy. The BBF Safety Group invested R16-million in a new machine at its Port Elizabeth plant in 2016 which will take shoe production up to 5 000 pairs per day. The injection moulding machine can inject a moulded sole to the shoe upper every 15 seconds. The Lemaitre brand is widely known and used within the mining industry. The BBF Group was formed from a merger of several South African companies, to allow them to specialise and to compete with cheap foreign imports. The companies were Bagshaw Footwear, Beier Safety Footwear, Bronx Safety, United Frams and Wayne.

ONLINE RESOURCES Border-Kei Chamber of Commerce: www.bkcob.co.za Coega Development Corporation: www.coega.co.za Department of Economic Development, Environmental Affairs and Tourism: www.dedea.gov.za East London Industrial Development Zone: www.elidz.co.za Manufacturing Circle: wwww.manufacturingcircle.co.za National Association of Pharmaceutical Manufacturers: www.napm.co.za South African Bureau of Standards: www.sabs.ca.za

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Automotive Beijing Automotive’s new factory is a major boost for the sector.

SECTOR INSIGHT Volkswagen SA makes 130 000 engines annually in Uitenhage. • Daimler is introducing a new commuter bus.

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lready home to some of the biggest brands in original equipment manufacturing (OEM) and automotive components in Volkswagen, Mercedes-Benz, Ford, Goodyear, Continental Tyre SA, Bridgestone and Shatterprufe, the addition of two Chinese firms, First Automotive Works (FAW) and Beijing Automobile Corporation (BAIC), confirms the Eastern Cape’s prime position in this sector. Beijing Automotive Industry Group (BAIC) expects to be building 50 000 vehicles per year at its site at Coega Industrial Development Zone (IDZ) by 2022. Construction of the factory was held up in 2017 because of concerns by local small businesses about the percentage of work that was going to local business. Companies like BAIC may well be positioning themselves to push into Africa, not only for selling vehicles but for sending automotive parts and partly-assembled kits further north. A new pan-African organisation has been established to promote the auto industry on the continent, the African Association of Automotive Manufacturers (AAAM). Most international brands such as Volkswagen have given responsibility for Africa to their South African offices. The Eastern Cape manufactures half of the country’s passenger vehicles and provides 51% of South Africa’s vehicle exports. The sector EASTERN CAPE BUSINESS 2018

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accounts for over 40 000 formalsector jobs in the Eastern Cape. The South Africa automotive sector makes up about 7% of South Africa’s gross domestic product and is responsible for approximately 12% of the country’s manufacturing exports. The decision in 2017 of General Motors to disinvest from South Africa does not seem to have had any knock-on effect. The company’s selling of its plant in Port Elizabeth was just one sale of many around the world. Isuzu has bought the factory. Volkswagen’s two new types of Polos started rolling off the production line in Uitenhage in 2018. Volkswagen’s R6.1-billion investment will take production up to full capacity of 160 000 vehicles in 2019, from 110 000 in 2017. The increase will mean that a third shift will be introduced. In addition, VWSA manufactures 130 000 engines for local demand and for export to countries such as Russia, India and Mexico.


OVERVIEW Ford in Port Elizabeth is the country’s other engine manufacturer. The potential of computers to improve efficiencies in the automotive sector is enormous. Enterprise Resource Planning (ERP) refers to software that links up various aspects of a business. This is a speciality of SYSPRO, which is active in many sectors, including automotive. A recent product allows for reduced waste in manufacturing and improves links between units (or companies) in the supply chain. Smar t factories are the subject of research being undertaken by the Department of Computing Sciences at the Nelson Mandela Metropolitan University (NMMU). The research is supported by Volkswagen SA and Mercedes-Benz SA. A new commuter bus launched by Daimler Trucks and Buses Southern Africa will be assembled at the company’s plant in East London in 2018. Fewer gear shifts are one of the features of the OF-1723, which should increase fuel efficiency. The establishment of the Eastern Cape Automotive Industry Forum (ECAIF) in 2016 is expected to assist black business people to get involved in the sector. A programme to encourage young people to enter the motor industry, PRIME (Programme for Industrial and Manufac turing E xcellence), has seen the first group of 137 graduates take up placements. An Automotive Production and Development Programme (APDP) is in place to support the

automotive industry and to encourage investment in local facilities. It is run by the Department of Trade and Industry (dti).

Components Only 35% of the components and parts used to make vehicles in South Africa are produced locally. The large number of vehicle models produced in South Africa is a complicating factor for the components sector: low volumes often mean high prices. Two Port Elizabeth companies export large portions of their production to overcome this: Schaeffler SA exports to its international parent so that it can achieve higher volumes. Shatterprufe supplies most windscreens to the South African market but there are 12 model ranges to serve. About 150 automotive suppliers of various types operate in the Eastern Cape. Sectors include leather works, batteries, automotive tooling, catalytic converters, glass, lamps, radiators and alloy wheels. The catalytic converter sector experienced incredible growth for several years but some volatility in the platinum mining sector, together with increased interest in electric vehicles and hybrids, means that exporters (largely based in Port Elizabeth) have had to work harder. SJM Flex SA, manufacturer of flexible, stainless-steel couplings, was named overall exporter of the year by the Exporters’ Club in 2016. Catalytic converter Eberspächer SA won a merit award in the corporate category for what the judges called its “entrepreneurial flair and major accomplishments”. Testing company Jendamark Automation also won a merit award. Firestone was the first tyre company to be established in Port Elizabeth. It was soon followed by Goodyear (in Uitenhage) and General Tyre (now Continental Tyre SA). Continental has about 1 600 employees and sells tyres domestically and internationally. Bridgestone has production facilities in Port Elizabeth and Brits. Both the Coega IDZ and the East London IDZ are positioning themselves as sites for the components manufacturing sector.

ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za Automotive Industry Export Council: www.aiec.co.za Automotive Production and Development Programme: www.thedti.co.za Catalytic Converter Interest Group: www.sassda.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za National Association of Automobile Manufacturers of South Africa: www.naamsa.co.za

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Water A large project is planned for the Umzimvubu River.

SECTOR INSIGHT Desalination joint ventures are under discussion. • 37% of South Africa’s water is lost.

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everal plans are under consideration to alleviate the water shortages facing the Eastern Cape’s towns and rural areas. In 2017, the worst-hit district municipalities, Amathole, Chris Hani and Joe Gqabi District Municipalities, received help from national and provincial authorities. The Nelson Mandela Bay Municipality has been looking at ways of finding new water, including desalination and tapping new underground water sources. The completion of phase two of the Nooitgedacht low-level water scheme during 2017 helped ease the pressure on the metropole, with the biggest dams such as the Churchill and Kouga dams having reached critically low levels of 15%. A desalination plant at Swartkops and new boreholes around the Uitenhage Springs are among other projects that will help to alleviate shortages. The municipality’s website is raising awareness about water scarcity. The slogans that come up on the scroll include, “Go Grey!” and “Public enemy: water leaks”. One option being considered is for the Nelson Mandela Bay Municipality to join hands with SABMiller, which needs a lot of water to makes its products, and Marina Sea Salt, which desalinates sea EASTERN CAPE BUSINESS 2018

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water to make salt. The Coega Development Corporation (CDC) is also investigating desalination as it needs water for the gasrelated industries at the Coega Industrial Development Zone. The Nelson Mandela Bay metropole currently gets its water from 10 dams, six of which are owned by the municipality. The Churchill and Impofu dams supply half the total supply, with the latter dam having a full storage capacity of 105-million cubic metres. The municipality maintains about 3 000km of reticulation water mains, about 650km of bulk-water pipelines and six waste-water treatment works. Water services are provided to the citizens of the Eastern Cape by 17 water service authorities which oversee 163 drinking water supply systems. Muncipalities and Amatola Water are the primary providers of services. Purification, desalination, water-leakage management and waste-water treatment are some of the problems facing the sector and solutions are urgently needed. There are opportunities for innovative entrepreneurs.


OVERVIEW According to Water Wheel magazine, 37% of water delivered to the nation’s municipalities is lost. A water supply and hydropower project is planned on the Umzimvubu River, under the control of the National Department of Water and Sanitation. The project entails the construction of two multipurpose dams, Ntabelanga and Laleni Dams, on the Tsitsa River, which is a tributary of the Umzimvubu, to supply irrigated agriculture, domestic and industrial water requirements, and hydropower generation in the catchment area. The smaller dam at Tsitsa Falls will supply the hydropower element. The Umzimvubu catchment and river system stretches for over 200km from its source in the Maloti‐Drakensberg watershed on the Lesotho escarpment to Port St Johns. The river and adjacent forests, grasslands, thickets and dune vegetation are amazingly diverse but are threatened in various ways. The Umzimvubu Catchment Partnership Programme wants to find ways protect the environment while helping with poverty alleviation through the provision of water, erosion control and fodder for livestock and food security. In 2017/18 the DWS will spend R12.5-billion on dams, water transfer schemes and bulk distribution. Improving and expanding water infrastructure are key elements to ensuring water security in a waterscarce country. The long-term drought that afflicted South Africa brought several responses from the Eastern Cape Department of Water and Sanitation (DWS) and have led to the development of the Eastern Cape Water Master Plan in an effort to alleviate the drought situation. Another intervention by DWS, the Hyancinth project, has a budget of R6.09-million. 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.

Systems Inter-basin water transfers are the norm in South Africa. In the 1950s,

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

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the Orange River Project delivered water from the Orange River to citrus farmers in the far-away Eastern Cape. This project made the citrus industry possible in places like Addo. The country’s river systems are mostly not where its people are, so 80% of the water used by the most populous and economically important province, Gauteng, is imported from neighbouring Lesotho. The Nooitgedacht Low Level Scheme is an extension of this system of transfers. It treats water from the Gariep Dam which comes to the Port Elizabeth area via the Orange-Fish River Tunnel and various rivers that are connected to the Sundays River irrigation scheme. Amatola Water manages bulk water infrastructure across 50 000km², encompassing the district municipalities of Chris Hani and Amathole, together with portions of other municipal areas. Backlogs in rural areas and smaller municipalities are still prevalent, and this water authority is playing a key role in reducing and eradicating these inequalities. The Eastern Cape Development Corporation is helping the Makana Municipality in terms of the Integrated Social Infrastructure Delivery Programme (ISIDP). With the city of Grahamstown housing many schools and a university (and the National Arts Festival), the Makana Water Crisis Intervention Project is strategically important .

EASTERN CAPE BUSINESS 2018


OVERVIEW

Education Nelson Mandela University has launched an Ocean Sciences Campus.

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esearch students from the University of Fort Hare are helping the small village of Upper Blinkwater get their own electricity from a mini-grid powered by biogas digesters. Staying current with the latest research in renewable energy is vital for the provincial economy, as is the need to engage in research that helps communities. The Eastern Cape is home to five universities, three of which are comprehensive universities. Nelson Mandela Metropolitan University (NMMU), Walter Sisulu University (WSU) and University of South Africa (Unisa) offer both diplomas (vocational) and academic programmes (degrees). NMMU has six campuses (including one in the Western Cape town of George) and seven faculties. In 2017, NMMU inaugurated its Ocean Science Campus at its Port Elizabeth base. This includes a unit aimed at combating sea fisheries crime (FishFORCE, with support from Norway) and the South African International Maritime Institute. The university has four marine sector chairs funded by the South African Research Chair Initiative (SARChI) and the National Research Foundation (NRF): • Marine Spatial Planning (ocean zoning) • Shallow Water Ecosystems (including rare coastal rock pools) • Ocean Sciences and Food Security (with Southampton University) • Law of the Sea (including oil resource management, port law and marine tourism law). Walter Sisulu University has four faculties: Education; Health Sciences; Business, Management Sciences and Law; and Science, Engineering and Technology. EASTERN CAPE BUSINESS 2018

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SECTOR INSIGHT Biogas digesters are under the spotlight at Fort Hare University. • The Mvula Trust is rolling out water and sanitation to schools.

Rhodes Universit y in Grahamstown had just over 8 000 students in 2015, the majority of whom live in residences, but its academic and research staff have a disproportionately high number of master’s and doctoral degrees. Rhodes has 14 of the national research chairs appointed under SARChI, including chairs in radio astronomy and biotechnology. The university’s journalism school is a leader in its field. Fort Hare University has five faculties, 10 schools and, at its East London campus, the Institute of


OVERVIEW Social and Economic Research. Fort Hare is supported by the National Research Foundation and participates and has approved research programmes in Water Resource Management, Sustainable Agriculture and Land Use Strategies. There are several examples in the Eastern Cape of collaboration between the manufacturing sector and educational institutions: General Motors SA has assigned R3.6-million to a Chair in Mechatronics at Nelson Mandela Metropolitan University (NMMU). NMMU offers a Bachelor of Engineering in Mechatronics, covering electronics, mechanical engineering and computer-aided design. Volkswagen supports the International Chair in Automotive Engineering at NMMU. Rhodes University’s Centre for Environmental Water Quality, within the Institute for Water Research, is sponsored by Unilever. InnoVenton: NMMU Institute of Chemical Technology commercialises research and has several clients in the private sector.

Colleges and schools 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 through learnerships. The Eastern Cape has eight Technical and Vocational Education Training (TVET) colleges, most of which have more

than one campus: Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College. King Sabata Dalinyebo offers business and engineering studies among its formal programmes, and short courses in bricklaying and computer studies. Over 20 000 students are enrolled at this level in the province. 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 and Zwelitsha, near King William’s Town. The programmes of 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. In the Eastern Cape, more than 90% of children in public schools benefit from a non-fee policy. Grade R classes are attached to more than 90% of primary schools. The province’s school-nutrition programme feeds 1.6-million children, while the transport programme delivers approximately 56 461 children to 614 schools. Infrastructure is still lacking in many areas, something that the developmental NGO Mvula Trust is putting right. With funding from the Eastern Cape Department of Education, the trust in 2016/17 provided: • 89 schools with sanitation • 1 676 toilets • 309 water tanks.

ONLINE RESOURCES Eastern Cape Department of Education: www.ecdoe.gov.za National Department of Basic Education: www.education.gov.za National Department of Higher Education: www.dhet.gov.za National Research Foundation: www.nrf.ac.za Ocean Sciences campus: www.oceansciences.mandela.ac.za Technology Innovation Agency: www.tia.org.za

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Banking and finance New banking licences are being issued.

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griculture and renewable energy are two of the most important economic sectors in the Eastern Cape. The first is as old as settlement in the province, the second has taken off only in the last few years: for both sectors, the banking and financial services sector is vital. All retail banks have agricultural desks, several finance agencies of provincial and national government have an agricultural focus, and most of the large agricultural companies have a range of financial products to offer farmers. Nedbank Business Banking has a new focus on agriculture, with business managers in Port Elizabeth, Humansdorp and East London all supported by agricultural specialists. Nedbank sponsors the Komga Show and the bank has paid out loans to the Humansdorp Co-Op which specialises in citrus and dairy products. In the far north-eastern part of the province, Nedbank, the WWF, and Environmental and Rural Solutions (ERS) are partners in a project to improve land use and to develop a cattle auction to assist farmers and buyers in the area to get better access to markets. In 2017 the fourth cattle auction was held at a specially developed site in Mzongwana. Improved grazing techniques are leading to better prices being paid by commercial farmers. 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 has the potential to unlock investment in the agricultural and agriprocessing sectors. 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. 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 EASTERN CAPE BUSINESS 2018

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SECTOR INSIGHT Nedbank and partners are raising incomes in a rural community. large parts of central South Africa. Standard Bank, which was founded in Port Elizabeth in 1862, operates in 32 countries (20 in Africa), has nearly 69 000 employees and assets in the region of $16-billion. Together with the other banks, consulting companies and other firms in the financial and business services sector, it is responsible of 19.2% of the Eastern Cape’s Gross Domestic Product (StatsSA). The sector provides employment for 141 000 people. 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. This includes the offices of PSG Konsult, Liberty Life, Alexander Forbes, Hollard and Momentum. Nedbank Business Banking has its headquarters just one block away from the Greenacres complex. Only AON appear to buck the trend, with offices in Central.


OVERVIEW

Also on Cape Road and in the Greenacres complex is FNB’s regional office, FNB Newton Place. This building houses all the FirstRand group’s offices, such as Rand Merchant Bank, FNB Private Clients and FNB Online. Whereas the private sector is the biggest factor in the banking sector, the state is moving to create publicly-owned banks. Post Bank, a division of the South African Post Office, is far advanced in its application for a full banking licence and a further two state banks are planned: Ithala (currently an enterprise funder in KwaZulu-Natal) and a Human Settlements Development Bank, which will focus on housing for poorer households and statefunded housing projects. This may have relevance for a province such as the Eastern Cape, which has a large rural population. Several new licences for banks are in the pipeline, with the first of these being a digital bank. The banking licence issued in 2017 to Take Your Money Everywhere (Tyme, by Commonwealth Bank of Australia) is the first to be issued since Capitec was granted a licence by the South African Reserve Bank in 1999. Capitec is now a major player on the South African retail banking scene and has 117 branches or ATMs across the Eastern Cape, including Bizana and Lusikisiki. It now merits inclusion in a new retail “Big Five”, with Standard Bank, Absa, FNB and Nedbank. In terms of assets, the five biggest banks are Standard Bank,

FirstRand (which owns FNB), Absa (which is part of Barclays Group Africa), Nedbank and Investec. According to the Reserve Bank, this group had 89% of market share in 2015. Another applicant for a new banking licence is Discovery, an existing giant on the JSE. With a market value of R83-billion and a wide range of products and services, it already has access to millions of customers. Life insurer MMI Holdings is entering a partnership with African Bank to enable it to start taking deposits and loaning money.

ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Auditor-General of South Africa: www.agsa.co.za Chartered Institute for Government Finance, Audit and Risk Officers: www.cigfaro.co.za Eastern Cape Development Corporation: www.ecdc.co.za Financial Services Board: www.fsb.co.za

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Development finance and SMME support Aquaponics and forestry are receiving support.

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raining programmes for new business owners and young people, a commitment from the provincial government and from municipalities that goods and services will be sourced from small, medium and micro-enterprises (SMMEs) and loan financing for start-ups: these are among the initiatives in place to help small businesses and co-operatives in the Eastern Cape. The provincial government has signed an agreement with the South African National Defence Force to take on young people to work on infrastructure maintenance and the Provincial Departments of Health and Education are making similar plans. There is a focus on agriculture, with the Office of the Premier and the Department of Rural Development and Agrarian Reform considering the creation of a fund to support training for young people and start-up enterprises in aquaculture and hydroponics. In terms of the Local Economic Development Procurement Framework, SMMEs will get 50% of all provincial government spending on goods and services. A database has been established. A programme of the National Department of Small Business (DSBD) is to be rolled out at municipal level in the Eastern Cape. An amount of R6.6-million has been allocated to the Informal and MicroEnterprise Development Programme (IMEDP). The DSBD has several other programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant. The Small Enterprise Development Agency (Seda) is an agency of the DSBD and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It helps small businesses draft applications for loan finance. The Seda Technology Programme (Stp) helps potential businesses become trading entities. Seda has a programme to make co-operatives and jointly owned enterprises stronger. Seda’s main provincial office is East London, with nine other offices located around 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 inEASTERN CAPE BUSINESS 2018

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SECTOR INSIGHT SMMEs will receive R121million in loans in 2017/18.

cubator) has a branch in Mthatha and there are also construction incubators in the towns of Mthatha and Port Elizabeth. The Masisizane Fund offers loan financing at good rates and training through its Business Accelerator programme. As a non-profit initiative of the Old Mutual Group, the fund focusses on the cash flow of potential businesses rather than insisting on security in the form of property. Since 2014, the agencies of the Eastern Cape Provincial Government have disbursed R337-million in loans to entrepreneurs in 748 businesses. For 2017/18, an amount of R121million has been allocated. The big retail banks have desks dedicated to promoting small enterprise and several agencies have a specific focus, for example the Eastern Cape Rural Development Agency (ECRDA). In promoting forestry enterprise, the ECRDA reported in 2015/16 having made R15-million available, while the Eastern Cape Development Corporation (ECDC)


OVERVIEW

had contributed R8.3-million and the Development Bank of South Africa (DBSA) R64-million. This is a good example of the variety of funding available. The Industrial Development Corporation (IDC) is another financing institution that is active in the Eastern Cape. Several development agencies receive support from the IDC, for example the Nkonkobe Development Agency in the Amathole District. 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 (TIA) jointly run the TIA-ECD Innovation Seed Fund Programme, which aims to identify and co-fund earlier stage technology innovation projects in the province. In its role as a provider of advice, the ECDC assisted a delegation from the Amahlubi Traditional Council when it attended the World Forestry Congress. This is part of the DBSA Jobs Funds Forestry projects. Help Desks have been established to support small business in Port Elizabeth and East London. One of the companies supported by the ECDC, outdoor furniture manufacturer PolyFibre Pty (Ltd), has received SABS approval for its products, which means the

company can move to commercialisation. PolyFibre uses recycled plastic and pineapple waste to make its products. As part of its Small Contractor Development, Training and Community Participation programme, the South African National Roads Agency (SANRAL) offered training to 20 people from four SMME sub-contractors in the making of dolosse. Dolosse are the large interlocking blocks of concrete used to protect the N2 and railway line from the sea. Eight of the 2.5-ton dolosse are manufactured every day. The project’s main concrete subcontractor is Dynaform. The National Empowerment Fund (NEF) provides financial support from R250 000 up to R75-million for start-ups, the expansion of existing business, as well as the acquisition of equity. In the Eastern Cape, the NEF is supporting companies working in the fields of solar energy, restaurant franchises and transport. 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 has similar programmes. The Afrikaansehandelsinstituut (AHI) has rebranded as the Small Business Institute. Representing over a hundred chambers, the SBI is a member of Business Unity South Africa.

ONLINE RESOURCES Eastern Cape Development Corporation: www.ecdc.co.za Eastern Cape Rural Development Agency: www.ecrda.co.za National Department of Small Business Development: www.dsbd.gov.za National Small Business Chamber: www.nsbc.org.za Small Enterprise Finance Agency: www.sefa.org.za Small Enterprise Development Agency: www.seda.org.za

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LISTING

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

Office of the Premier Premier: Phumulo Masualle

Department of Human Settlements MEC: Helen Sauls-August

State House, Independent Avenue, Bhisho 5605 Tel: +27 40 609 6626 Fax: +27 40 639 1419 Website: www.ecprov.gov.za

31-33 Phillip Frame Road, Waverly Park, Chiselhurst, East London Tel: +27 43 711 9777 Fax: +27 43 711 9785 Website: www.ecdhs.gov.za Department of Roads and Public Works MEC: Thandiswa Marawu

Department of Cooperative Governance and Traditional Affairs MEC: Fikile Xasa

5 Qasana Building, Independence Avenue, Bhisho 5605 Tel: +27 40 609 4648 Fax: 086 298 5598 (SA) Website: www.ecdpw.gov.za

Tyamzashe Building, Room 2124, 2nd Floor, Bhisho 5605 Tel: +27 40 609 5788/5789 Fax: +27 40 639 2135 Website: www.eclgta.ecprov.gov.za

Department of Rural Development and Agrarian Reform MEC: Mlibo Qoboshiyane

Department of Economic Development, Environmental Affairs and Tourism MEC: Sakhumzi Somyo

Dukumbane Building , Independence Avenue, Bhisho 5606 Tel: +27 40 609 3472 Fax: +27 40 636 3462 Website: www.drdar.gov.za

2nd Floor, Beacon Hill, Hockley Close, King Williams Town 5600 Tel: +27 43 605 7006/7216 Fax: +27 43 605 7306 Website: www.dedea.gov.za

Department of Safety and Liaison MEC: Weziwe Tikana

Department of Education MEC: Mandla Makupula

Stellenbosch Park, Flemming St, Schornville, King William’s Town 5601 Tel: +27 43 604 7414 Fax: 086 298 5598 Website: www.ecprov.gov.za

Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha Tel: +27 40 608 4202 Fax: +27 40 608 4247 Website: www.ecdoe.gov.za

Department of Social Development MEC: Nancy Sihlwayi Cnr Hockley and Hargreaves Streets, Beacon Hill, King William’s Town 5600 Tel: +27 43 605 5210 Fax: +27 43 605 5472 Website: www.ecdsd.gov.za

Department of Health MEC: Dr Pumza Dyantyi

Dukumbane Building, Independence Avenue, Bhisho 5605 Tel: +27 40 608 1114 Fax: +27 40 608 1118 Website: www.echealth.gov.za EASTERN CAPE BUSINESS 2018

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LISTING Department of Sports, Recreation, Arts and Culture MEC: Pemmy Majodina

Provincial Treasury MEC: Sakhumzi Somyo

Provincial Treasury , Tyamzashe Building, Bhisho 5605 Tel: +27 40 609 5755/5014 Fax: +27 40 639 1030 Website: www.ectreasury.gov.za

Wilton Zimasile Mkwayi Building, 5 Eales Street, King William’s Town 5600 Tel: +27 43 604 4101 | Fax: +27 43 642 6759 Website: www.ecsrac.gov.za Department of Transport MEC: Weziwe Tikana

Stellenbosch Park, Flemming St, Schornville, King William’s Town 5601 Tel: +27 43 604 7414 | Fax: 086 298 5598 Website: www.ectransport.gov.za

Eastern Cape Local Government ALFRED NZO DISTRICT MUNICIPALITY Erf 1400, Ntsizwa Street, Mount Ayliff Tel: +27 39 254 5000 | Fax: +27 39 254 0343 Email: info@andm.gov.za Website: www.andm.gov.za

AMATHOLE DISTRICT MUNICIPALITY 40 Cambridge Street, East London Tel: +27 43 701 4000 | Fax: +27 43 742 0337 Email: info@amathole.gov.za Website: www.amathole.gov.za

Matatiele Local Municipality

Amahlathi Local Municipality

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

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

Mbizana Local Municipality

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

Great Kei Local Municipality

Tel: +27 39 251 0230 Fax: +27 39 251 0917 Website: www.mbizana.gov.za

Mbashe Local Municipality

Ntabankulu Local Municipality

Tel: +27 47 489 5800 | Fax: +27 47 489 5800 Website: www.mbhashemun.gov.za

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

Mnquma Local Municipality

Tel: +7 47 401 2400 | Fax: +27 47 491 0195 Website: www.mnquma.gov.za

Umzimvubu Local Municipality

Ngqushwa Local Municipality

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

Tel: +27 40 673 3095 | Fax: +27 40 673 3771 Website: www.ngqushwamun.gov.za

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

Raymond Mhlaba Local Municipality

Tel: + 27 46 7400 Fax: +27 46 645 2562 Website: www.raymondmhlaba.gov.za BUFFALO CITY METROPOLITAN MUNICIPALITY 117 Oxford Street, Cnr North & Oxford Streets, Trust Centre, East London Tel:+27 43 705 2000 | Fax:+27 43 743 1688 Website: www.buffalocity.gov.za

Elundini Local Municipality

Tel: +27 45 932 8100 | Fax: +27 45 932 1094 Website: www.elundini.org.za Walter Sisulu Local Municipality

CHRIS HANI DISTRICT MUNICIPALITY 15 Bells Road, Queenstown Tel: +27 45 808 4600 | Fax: +27 45 838 1556 Website: www.chrishanidm.gov.za

Tel: + 27 51 653 1777 Fax: + 27 51 653 0056 Website: www.wslm.gov.za

Emalahleni Local Municipality

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

Senqu Local Municipality

Tel: +27 47 878 0020 | Fax: 049 878 0112 Website: www.emalahleni.gov.za

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

Engcobo Local Municipality

Tel: +27 47 548 5600 | Fax: +27 47 548 1078 Website: www.engcobolm.gov.za Enoch Mgijima Local Municipality

Tel: + 27 45 807 2606 Fax: +27 45 807 2637 Website: www.lukhanji.co.za

Tel: +27 47 874 8700 | Fax: +27 47 874 0010 Website: www.intsikayethu.gov.za

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

Inxuba Yethemba Local Municipality

Ingquza Hill Local Municipality

Tel: +27 48 801 5000 Fax: +27 48 881 1421 Website: www.iym.co.za

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

Sakhisizwe Local Municipality

King Sabata Dalindyebo Local Municipality

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

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

Intsika Yethu Local Municipality

Mhlontlo Local Municipality

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

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Nyandeni Local Municipality

Kouga Local Municipality

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

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

Port St Johns Local Municipality

Kou-Kamma Local Municipality

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

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

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

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

Makana Local Municipality

Ndlambe Local Municipality

Blue Crane Route Local Municipality

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

Tel: +27 49 807 5700 | Fax: + 27 49 892 4319 Website: www.bcrm.gov.za

Sundays River Valley Local Municipality

Dr Beyers Naude Local Municipality

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

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

Municipalities in the Eastern Cape

LESOTHO Free State

Alfred Nzo Matatiele

KwaZuluNatal

Umzimvubu Senqu

Maletswai

Northern Cape

Elundini

Joe Gqabi

Gariep

Ntabankulu Mhlontlo

Sakhisizwe

Inkwanca Tsolwana

Western Cape

Nyandeni

Emalahleni

Chris Hani

Inxuba Yethemba

Engcobo Intsika Yethu

Lukhanji

Mbizana

OR Tambo Ingquza Hill Port St Johns

King Sabata Dalindyebo Mbhashe

Mnquma Amahlathi

Nxuba Blue Crane Route Dr Beyers Naude

Amathole Nkonkobe

Sarah Baartman Ngqushwa

Makana Sundays River Valley

Kou-Kamma

Kouga

Great Kei

Buffalo City

Ndlambe

Nelson Mandela Bay

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

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Chris Hani Nxuba

EASTERN CAPE BUSINESS 2018


INDEX

INDEX Amatola Water........................................................................................................................................... IFC, IBC Black Management Forum (BMF)................................................................................................................. 10 Blue Lagoon Hotel & Conference Centre................................................................................................... 21 Border Kei Chamber of Business................................................................................................................... 26 East London Industrial Development Zone (ELIDZ)......................................................................... 3, 11 Maritz Electrical.................................................................................................................................................. 23 Nedbank......................................................................................................................................................... 28-33 Nelson Mandela Bay Business Chamber.................................................................................................... 24 Old Mutual..................................................................................................................................................... 34-37 POWERX................................................................................................................................................................. 16 Premier Pallets................................................................................................................................................ OBC Ubank..................................................................................................................................................................... 12

EASTERN CAPE BUSINESS 2018

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Amatola Water projects Bulk water and sanitation projects underway in the Eastern Cape.

A

matola Water is implementing some of the Eastern Cape’s major capital projects that are geared to bring relief to droughtridden communities as well as to revitalise water and sanitation infrastructure in the province. Amatola Water is helping the OR Tambo District Municipality improve its water and sanitation services delivery to almost one million citizens in Mthatha and surrounds as part of the R3.4-billion King Sabata Dalindyebo Presidential Intervention. The intervention forms part of the masterplan to uplift the economic development of the Greater Mthatha area which continues to show good growth. It aims to maximise the use of the currently under-utilised yield from the Mthatha Dam through five strategic development corridors within a 40km radius of the town of Mthatha, namely: Libode, Ngqeleni, Nqadu, Mqanduli and the airport corridor. The regional water supply system will provide the necessary stability and assurance of supply that meaningful economic development requires, while the bulk sanitation infrastructure will ensure the environmental integrity of the Mthatha River and human health in the higher-density urban areas of Mthatha. The Eastern Cape Department of Education’s Schools Project is

tackling bulk water and sanitation infrastructure at close on 200 schools throughout the province. Amatola Water is the department’s sole implementing partner for bulk water and sanitation infrastructure. The project, which has run over two years, comprises two phases: Phase 1, which includes the repair of the dilapidated water and sanitation infrastructure of special schools and hostels; and Phase 2 which is focused on the operation and maintenance of the infrastructure. In the current year, Amatola Water began work at 122 public ordinary schools, of which 19 have hostels. The work completed to date has been valued at over R21-million. An additional 10 special schools have also been included in the plan. The work this year also included addressing water emergencies at nine priority schools. Full-time process controllers and general workers have been appointed to oversee operations and maintenance at the various schools to ensure good water and effluent quality. In the current financial year, over 500 jobs have been created through the programme, 50 of which went to women. In Nelson Mandela Bay, the Nooitgedacht Bulk Water Supply Project will see its water supply from the Orange River surge to more than double by June 2019 when Amatola Water completes the third phase of extensions to the Nooitgedacht Water Treatment Works. The project consists of three parts: a 45-megalitre reservoir, the construction of a treatment works facility and the construction of related pipelines. It is a key augmentation project for the bulk water supply system of Nelson Mandela Bay Municipality. Once completed, it will feed about 70-million litres of water a day to the municipality.

Nooitgedacht Bulk Water Supply Project.


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Eastern Cape Business 2018 edition  

The 2018 edition of Eastern Cape Business is the ninth issue of this highly successful publication that, since its launch in 2006, has estab...

Eastern Cape Business 2018 edition  

The 2018 edition of Eastern Cape Business is the ninth issue of this highly successful publication that, since its launch in 2006, has estab...

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