Page 1

2019 EDITION

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

JOIN US ONLINE

WWW.GLOBALAFRICANETWORK.COM | WWW.WESTERNCAPEBUSINESS.CO.ZA


New opportunities for investors in the West Coast N

ew opportunities are emerging in specific sectors of the West Coast district. With the N7 being upgraded, the time it takes to travel from Malmesbury to Cape Town for instance is less than from Paarl, Somerset West or Stellenbosch. Businesses can serve the Cape Town market while enjoying lower operating costs, an excellent work ethic, lower crime and reduced risk with excellent local government support. Developers are providing new industrial, commercial and residential property. Protein, dairy and other food producers are moving closer to their markets to reduce transportation costs. They remain outside the metro boundaries, to gain cost advantages. Increasing numbers of logistics firms recognise the strategic location. Vehicle and equipment suppliers are growing as services sector. The number of mines are increasing in Matzikama and a breakthrough with abalone production holds huge promise for supplying a lucrative market. In Cederberg the dam wall is being raised, meaning the bottleneck to agricultural growth is reduced. The Saldanha Industrial Development Zone, which is located at the deep-water port, includes a unique package of government incentives. The aquaculture sector near Saldana Bay is growing steadily with much more potential as markets are lucrative and the product competitive. The complete region offers a large variety of world-class tourism attractions, leisure activities and events. A great place to live, work and play. Swartland Municipality Swartland Municipality covers an area of 3 700 square kilometres, stretching from the Atlantic Ocean in the west to the Berg River in the east. To the south it borders the City of Cape Town, to the east the Drakenstein Municipality, to the north the Bergrivier Municipality and to the north-east Saldanha Bay Municipality. In 2016 the estimated population was 133 000. Swartland has displayed resilient economic growth through some trying market conditions. The main competitive advantages are strategic location, low costs, low risk, a municipality that values business and growing investor confidence. Add to this the benefits of a sophisticated city that is still close enough to leverage when needed, while employees get to enjoy the best of both country life and the city. Both businesses and citizens increasingly view the Swartland as a good place to locate. Investment growth is expected from sectors such as protein, dairy, agro-processing, transport, logistics, retail, services and construction sectors. Phase 1 of the Schoonspruit industrial development consisting of 13 erven has become available recently. www.swartland.org.za Bergrivier Municipality Situated north of Saldanha Bay, the Bergriver region is particularly suited to agriculture. Livestock, fruit, vegetables and flowers are farmed in the area and there are opportunities in kelp farming and processing. The large cement factory and smaller salt-reclamation works are indicators of business development opportunities related to mining. There are opportunities in agro-processing and the development of an agricultural college in the area. Tourism is becoming one of the economic drivers in the area, especially eco-tourism. www.bergmun.org.za

If you have your eye on growth, you should invest on the West Coast! Find out more at www.westcoastdm.co.za


Cederberg Municipality Blessed by nature, rich in heritage and warm-hearted people, the Cederberg is a great place for tourism all year round. Cederberg boasts a beautiful and varying landscape that includes the Cederberg Mountains, valleys and a coastline with a multitude of attractions and activities. The region is also becoming increasingly popular as an events destination. The area is rich in flowers and fynbos, including Rooibos, which makes this the heart of the international Rooibos tea industry. The Clanwilliam Dam wall is being raised, which will soon provide more water, which will boost agricultural output and downstream value-adding enterprises. Investment opportunities relating to the Oceans Economy are encouraged, especially in the Lamberts Bay and Elands Bay areas. www.cederbergmun.gov.za

MATZIKAMA

Vredendal

Clanwilliam

CEDERBERG

BERGRIVIER Vredenberg

Piketberg

SALDANHA BAY Moorreesburg

SWARTLAND

Langeberg

Matzikama Municipality Approximately 240km north of Cape Town, the Matzikama region has abundant water and fertile soil and therefore a thriving vegetable, fruit and wine farming economy. Investors visiting the region will find opportunities in aquaculture (especially abalone), fishing, mining, manufacturing, agriculture and property development. www.matzikamamun.co.za

Saldanha Bay Municipality Saldanha Bay Municipality is approximately 140km north of Cape Town and covers an area of 2 015km2 and has 238km of coastline. The Saldanha Bay Municipal area is endowed with natural and locational characteristics which provides opportunity for the area to directly compete in the international arena for investment and development. The Provincial Treasury’s socioeconomic profile of Saldanha Bay Municipality indicates that Saldanha Bay is the fastest-growing municipality in the district. The West Coast District Municipality’s SDF (2014) identifies Saldanha Bay as a Major Regional Growth Centre. The natural deep-water harbour provides comparative advantages around which globally competitive and job-rich sectors can be built. The priority sectors currently in the area are Aquaculture and Fishing, Manufacturing, Oil and Gas as well as Tourism and all of these sectors are ocean-linked. Saldanha Bay is ideally positioned to serve the booming African offshore oil and gas industry. This boom has resulted in the establishment of an Industrial Development Zone (IDZ) in Saldanha Bay as a catalyst to expand the potential of the harbour and launch an Oil and Gas services cluster to attract international investment. Exciting new projects relating to capital investment and catalytic infrastructure which are linked to the IDZ have emerged. The coastal settlement areas such as Langebaan and Paternoster have tourism development potential. The onset of the drought necessitated the Municipality to shift funding towards the water management function in 2017/18 and 2018/19. www.sbm.gov.za


Welcome to the Cape Winelands District T

he Cape Winelands District Municipality (CWDM) is one of five district municipalities in the Western Cape Province. The district covers an area of 22 309 km2 and is divided into five subdistricts, each with their own local municipality. These are Stellenbosch, Drakenstein, Witzenberg, Breede Valley and the Langeberg. The district is the second most populace area in the Province, with 895 529 people calling the area home. Together with this, the citizens are also the largest economic contributers after the City of Cape Town. The region is famous for its spectacular scenery of beautiful mountains and valleys, and wine and fruit estates, all of which attract large numbers of local and foreign tourists.

and imported goods valued at a R28.2-billion. This produced a trade surplus of R660-million. The United Kingdom was the largest destination market for products in 2017, accounting for 13.2% of exports, with a value of R3.9-billion. The leading source market Economy for the Cape Winelands was Saudi Arabia, accounting • The Cape Winelands District GDP grew from for 22.1%, with a value of R6.2-billion. Wine was the leading export product from the region, accounting R35.2-billion in 2007 to R43.7-billion in 2016. • The Drakenstein area was the largest contributor for 22.6%, with a value of R6-billion. Citrus fruit and grapes ranked second and third, accounting for 13.8% to the district GDP in 2016, at R14.3-billion. • The wholesale, retail, catering and and 12.1% respectively. accommodation sectors remained the largest Reasons why you should invest in the Cape employer, employing 85 339 people. • In 2016 the finance, real estate and business Winelands The Cape Winelands District has the finest wines in the country and has the following strengths and advantages that enable it to stimulate growth and expansion of the regional economy: • A well-developed road and rail network that provides easy access to markets • Easy access to Cape Town International Airport and the Port of Cape Town • A diverse choice of urban and rural sites Trade • Educational institutions and centres of research excellence such as the University of Stellenbosch In 2017, the Cape Winelands District was a net and the Agricultural Research Council exporter of goods to the value of R28.9-billion service sectors were the largest contributor to GDP, accounting for 24.3%. • The food, beverage and tobacco sub-sectors were the largest contributor to manufacturing, with 42%. • The wholesale and retail trade subsector was the largest contributor to the services sector, accounting for 25%.


• Nationally and internationally renowned special educational institutions • The area offers an exceptionable quality of life, not only in the easy access to the natural areas that offer hiking, biking, birding, camping and even glamping options, but the area offers excellent schools and sporting facilities • The region is one of the most visited regions. CWDM Economic Development Programmes The tourism sector has been identified as a growing sector for the Cape Winelands region. The CWDM is working together with stakeholders to ensure sustainable growth for the tourism industry. Several programmes are currently being implemented to maximise the potential for the tourism industry. Township Tourism This project is an intervention by the CWDM in ensuring that tourism routes become profitable and sustainable. The programme exposes registered tour guides to all the products and new routes on offer. It also ensures that smaller tour guide companies are afforded the opportunity to link with established businesses and routes. The project consists of four phases: • Forging partnerships with existing routes • Route development support • Route visits and education • Destination and wayfinding signage. The CWDM identified that municipalities needed assistance in developing their township tourism routes and so agreements have been signed between CWDM and these municipalities. Most tourism businesses within the CWDM are challenged with obtaining appropriate tourism road signage. The CWDM aims to assists in this regard, as well developing route maps to assist in marketing. Regional Tourism Mobile App The Cape Winelands District developed 13 tourism apps that are populated by the Local Tourism Associations with a variety of activities, news and routes. The Municipality’s District App is different from the local tourism town apps in that it focusses on routes, attractions and events. Local Tourism Associations provided the CWDM with all their routes and this was then populated within the CWD App. The routes are categorised under: Adventure Routes, Art Routes, Culinary Routes, Culture Routes, Historical Routes, Olive Routes and Wine Routes.

To ensure optimal utilisation of the application the CWDM has provided training to both the CWDM officials and the Local Tourism Associations. Missions, Exhibitions and Trade Shows CWDM works closely with the Local Tourism Associations in the region to market the Cape Winelands as a tourism and investment destination domestically and internationally. This is to ensure focused, effective and efficient tourism marketing. The main objective is to increase the number of tourists and to attract investment into the Cape Winelands region. The CWDM takes part in trade shows and exhibitions to provide a platform for businesses within the district to market their products and services to buyers, consumers and investors. Through the trade shows and exhibitions, a number of small, micro and medium enterprises and established businesses that have attended with the CWDM have managed to secure sustainable markets and found distributing agents.


Where Opportunity Meets™

Besides being the voice of business in the region, when you belong to the Chamber, you become part of a network that is geared to promote your success. As a member, you enjoy a substantial number of benefits, as well as receiving expert support for a wide range of issues. Our services include business advice, extensive networking opportunities, seminars & events, training at all levels, international trade support and more. Join now - it’s Where Opportunity Meets™.


4th floor, 33 Martin Hammerschlag Way, Foreshore, Cape Town Tel: +27 21 402 4300 | Fax: +27 21 402 4302 info@capechamber.co.za | capechamber.co.za Facebook: CapeChamberOfCommerce | Twitter: @Cape_Chamber


CONTENTS

CONTENTS Western Cape Business 2019 Edition

Introduction Foreword12 Western Cape Business is a unique guide to business, investment and tourism in the Western Cape.

Special features Regional overview

14

Investors and tourists continue to visit the Western Cape and they are impressed by what they see. The Maritime Economy

40

Half-a-billion rand has been spent to make Saldanha ready for investment. Tourism and events

46

The Western Cape is world class in many categories. Powering the province

54

The Western Cape is moving away from fossil fuels.

WESTERN CAPE BUSINESS 2019

6


Grow your company with the Centres of Specialisation programme in plumbing or motor mechanics Centres of Specialisation (CoS) is a national programme aimed at producing: • A skilled and capable workforce to support inclusive economic growth • Increased availability of intermediate-level technical skills • Increased delivery of qualified artisans in 13 priority trades • Improved capacity of public TVET colleges to train in skills in demand by industry. How does it work? Dual system apprenticeships that combine: • Technical education at a TVET college • Simulated practical training • Lots of authentic work experience in a single, integrated learning programme with employers in the driver’s seat.

• Productive value of apprentices’ work • SETA grant towards training costs • Tax-break from SARS • BBBEE scorecard points for skills development • Opportunity to shape college curriculum, thereby improving future supply of suitable workers.

• After apprenticeships: • Skilled employees, trained to industry

standards and acculturated to your company – immediately productive • Lower-risk and lower cost of recruitment • Enhanced employee retention.

To participate in the Centres of Specialisation initiative and get these benefits, you need to:

• Be located within 25km of the College of Cape Town

Who is involved? It’s a partnership between the National Department of Higher Education and Training and business associations from the private sector, focusing on 13 priority trades. The College of Cape Town has been appointed as Centres of Specialisation for Plumbing and Automotive Motor Mechanics. Change technical skills training in your company from a money-taker into a money-maker by getting these benefits through CoS: • During apprenticeships:

CONTACT DETAILS For more information, contact: Frikkie O’Connell Tel: + 27 21 531 9124 | Email: foconnell@cct.edu.za

• Be willing to host at least one apprentice in the

trade assigned to the College of Cape Town for a three-year apprenticeship; the theory and practical components of the curriculum will be covered at the college, while your company will be responsible for providing structured work experience supervised by an artisan qualified in that trade • Participate in a limited number of planning and monitoring meetings between employers, the college and DHET personnel aimed at sharing experience, solving problems and improving implementation.


CONTENTS

Economic sectors Agriculture 

76

The capacity of the Clanwilliam Dam is set to double. Wine and grapes 

78

Resilience is now part of the grape-growing story. Fishing 

84

Black owners are getting a hand on the tiller. Mining86 A rare earths feasibility study is underway. Oil and gas 

88

Chevron deal means investment for Cape refinery. Water 

91

Lessons for the world from Cape Town’s water crisis. Manufacturing 

94

Diesel locomotive engines are powering up in Montague Gardens. Construction and property development 

96

Cape Town aims to integrate housing and transport planning.

WESTERN CAPE BUSINESS 2019

8


With us you see all of South Africa's opportunities. Seeking trade and investment opportunities or the inside track on government initiatives and emerging markets in South Africa? Global Africa Network publishes a broad range of print and electronic publications highlighting trade, investment and local government projects in emerging markets.

Contact us for more information on how to participate in our publications, or receive a complimentary copy.

Global Africa Network Media Tel: +27 21 657 6200 Email: sales@gan.co.za Website: www.gan.co.za


CONTENTS

Banking and financial services 

100

Japanese and French companies are investing. Development finance and SMME support

102

The Centre for Entrepreneurship has opened at False Bay TVET College. Education and training

104

An investment company is banking on private schooling. Business process outsourcing 

112

New jobs are coming on line. Information and communications technology

113

Amazon and Microsoft have chosen Cape Town.

Government Western Cape Provincial Government 

114

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

115

An overview of the Western Cape municipalities.

Reference Sector contents 

74

Municipalities in the Western Cape

Metropolitan/District Municipality Boundary Local Municipality Boundary

WCDMA01

Index120

Garden Route

District Municipality

Oudtshoorn

Local Municipality

Northern Cape Matzikama

WCDMA05

Maps

Cederberg

Beaufort West

West Coast

Western Cape municipal map.

19

Western Cape provincial map.

116

Central Karoo

Bergrivier

WCDMA02

Saldanha Bay

Laingsburg

Swartland

Cape Winelands City of Cape Town Metropolitan Municipality

Kannaland

Mossel Bay

Overstrand

George

Knysna

Bitou

Hessequa Swellendam

Cape Agulhas

10

WCDMA04

Langeberg Theewaterskloof

Overberg

WESTERN CAPE BUSINESS 2019

Oudtshoorn

Garden Route

Breede Valley Drakenstein Stellenbosch

ATLANTIC OCEAN

Eastern Cape

Prince Albert

Witzenberg

WCDMA03

INDIAN OCEAN


INTERVIEW

Selfmed Medical Scheme Christo Becker, the Principal Officer at Selfmed Medical Scheme, outlines the advantages of a self-administered scheme.

How did Selfmed begin and how has it evolved? The Scheme initially formed part of the Sanlam Life Insurance stable, created in 1965 and formally registered in 1972. This makes Selfmed one of the most experienced medical aid schemes in the industry. At Selfmed we have a handson approach, and this resulted in our taking control of our own Client Services Centre, or Excellence Centre in 2006. We thereafter progressed to taking over the full administration function in 2010; also recently bringing our Managed Healthcare inhouse.

Christo Becker

What is your market?

Historically membership comprised individuals and their families. The introduction of the Selfnet options in 2015 and 2016 allowed us to reach a younger audience. This was also the opportunity to branch out into corporate marketing, offering membership to blue-collar employees. We have seen great success in this area. Is there flexibility for clients?

The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med XXI, and Selfnet and Selfnet Essential. Each product is designed specifically for a life stage, as the needs of a member changes. As the person advances in life and starts a family they will move towards the Med XXI or Selfsure options, for example, which have a wider range of benefits relevant to a young family.

BIOGRAPHY Christo started his 21-year career in healthcare as a paramedic in Fire and Disaster Management Services. In 2001 he completed an MBA with the intention of moving his career towards hospital management. He has worked as hospital manager in several private facilities. His passion for people and strategy has ensured that the hospitals he has managed have grown rapidly while focusing on sustainability. With selfmotivation and a commitment to continual improvement, Christo implements positive changemanagement.

How is Selfmed handling ever-rising costs?

The biggest challenge facing the healthcare industry is the significant rise in healthcare costs, with healthcare inflation exceeding general inflation. This compels us to proactively introduce mechanisms to manage these costs. Selfmed is applying machine learning to the claims database to draw a more accurate picture of a member’s specific needs. The information can then be used to engage members on an individual basis – if we can intervene early it is to the benefit of all parties. How does Selfmed Medical Scheme differentiate from its competitors?

In a traditional medical aid/administrator environment all administered functions rest with an administrator. As such, a medical aid would be fully dependent on its outsourced administrator to inform it of any issues relating to its members. Being fully self-administered allows Selfmed to take total ownership of all its member interactions and address any administrative problems or complaints immediately. We do not have an electronic routing system; you speak to an individual. This personalised hands-on approach is fundamental to our model of building a credible member experience.

11

WESTERN CAPE BUSINESS 2019


CREDITS

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

A unique guide to business, investment and tourism in the Western Cape. he 2019 edition of Western Cape Business is the 12th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Province. The Western Cape has varied investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features in this journal on the big impact which the relatively new maritime sector is having, together with tourism and events and renewable energy. The potential for independent generation is an exciting new avenue for local authorities. Western Cape Business contains interviews and messages from business leaders from Accelerate Cape Town, the Cape Chamber of Commerce and the Western Cape Business Opportunities Forum. Tim Harris, the CEO of Wesgro, outlines the successful investment attraction strategies that his organisation has been adopting. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.westerncapebusiness.co.za. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.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.

T

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

PUBLISHED BY

DISTRIBUTION Western Cape Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies. COPYRIGHT | Western Cape Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Pictures supplied by BPeSA, Cape Innovation and Technology Initiative (CiTi), Cape Winemakers Guild, Clanwilliam.org.za, Darling Sweet, Fancourt, HVACR, iStock, LEAP Maths and Science Schools, Quality Filtration Systems, SATGI, South African Oil and Gas Alliance, Tesla, Transnet National Ports Authority, V&A Waterfront, Jessie Whales.

WESTERN CAPE BUSINESS 2019

12

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 1816-370X DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Western Cape Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.


Time is money, spend it wisely Airlink connects you from Cape Town direct to your business. Airlink offers the widest network and choice of flights within Southern Africa with more than 25 years of customer-focused experience, you too have the freedom to enjoy the Airlink hospitality.

flyairlink.com

@fly_airlink

Fly Airlink

45772

Get straight to business


A REGIONAL OVERVIEW OF THE

WESTERN CAPE PROVINCE


Investors and tourists continue to visit the Western Cape and they are impressed by what they see. By John Young

E

merging markets, South Africa and the Western Cape have endured some tough times in recent months and years, and yet tourists and investors keep coming back to the province which straddles the Atlantic and Indian oceans at the tip of Africa.

There are many reasons for this. Good infrastructure, outstanding educational and research institutions, superb beaches and historical tourist attractions, and plentiful agricultural produce are among them. But good policies at provincial and city level are also playing


SPECIAL FEATURE their part in attracting visitors and new partners. Underpinning the economic planning of the Western Cape Provincial Government is a commitment to getting four major things right. Called “enablers”, these are issues that must be looked after for other economic plans to work. The four are water, energy, broadband and skills development. On this sound footing, various agencies of the provincial government and the municipalities of the province have developed a range of plans designed to attract investors, and they are proving attractive. The Western Cape is also the country’s bestperforming province in terms of audits. Of 55 provincial departments, municipalities and public entities for the 2016/17 year, 44 received clean audits. This kind of performance helps to boost investor confidence. Another thing that has been attracting the attention of the world is the astonishing display of resilience by the citizens of Cape Town in getting through a long-term drought. As the dreaded “Day Zero” approached, news items started appearing on television screens from Zurich to Zagreb about the impending calamity. The fact that Cape Town survived was applauded but there were serious conservation issues that arose, not least because people in other parts of world quickly realised that what was happening in Cape Town could easily be replicated anywhere. The world needed to confront a “new normal”. Greater Cape Town’s ability to reduce water usage by more than half was nothing short of remarkable. “Resilience” has become a new buzzword and a selling point for the city and the province. A tourism campaign #ItsAllStillHere mixes enticing pictures of surfers cutting through beautiful waves with reminders of how Cape Town had found a way to come through the extreme dry spell. Within the province, economic confidence is improving. Alan Winde, then MEC for Economic Development and Tourism, noted in his budget speech in March 2018 that business confidence had reached the 50-point mark, the highest level since 2016 (Bureau for Economic Research). WESTERN CAPE BUSINESS 2019

16

Investment and trade Between 2014 and 2018, the Western Cape received more than R7.2-billion in investments and trade deals to the value of R11.1-billion were closed (SOPA). The provincial government’s African Expansion Programme has secured R691-million in deals so far. The Western Cape has had an Invest SA One Stop Shop since September 2017. The UK’s International Trade Secretary, Dr Liam Fox, was the first international minister to visit the facility, which was interesting in that Britain’s position in relation to trade with the world is about to undergo a massive change because of its withdrawal from the European Union. In the period 1997-2017, fully a quarter of foreign direct investment (FDI) into the Western Cape came from the UK. Cape Town is the only African city on the FDI ranking chart of fDi Intelligence, a division of the Financial Times. The list ranks which cities have the best foreign direct investment strategies. Cape Town’s Economic Growth Strategy includes the creation of a unit (Invest Cape Town) to promote investment, upgrading infrastructure, pursuing broadband rollout, improving energy supply and improving direct air links between the city and the world. Many of these strategies are pursued with partners. During Dr Fox’s visit, he met with companies in sectors that have traded with the UK for decades such as fruit, wine and tourism, but he also was also exposed to new areas in which the Western Cape is growing its expertise, creative, tech and service industries. Since Britain’s vote to the leave the EU, trade delegations into South Africa from countries like France and Italy have increased. The Invest SA One Stop Shop Western Cape is an intergovernmental facility operated by Wesgro, in conjunction with the Department of Trade and Industry (dti) and the Western Cape Provincial Government, that aims to provide strategic guidance, and reduce regulatory inefficiencies and red tape. DEDAT has also established a Red Tape Reduction Unit to smooth the path of investors and businesses wanting to expand. Wesgro is the Western Cape’s official tourism, trade and investment promotion agency. In its


SPECIAL FEATURE annual review for 2017/18, Wesgro reported that the Western Cape will receive at least R10.2-billion into the regional economy over five years. Wesgro’s units reported some highlights: • International Trade Promotion Unit: 53 business agreements valued at R2.8-billion over five years. • Investment Promotion Unit: Investments valued at R2.2-billion, including a major investment from manufacturer Pegas Nonwovens. • Agribusiness Investment Unit: Six investments worth R756-million. Pizza Hut has invested R300-million. • Film and Media Promotion Unit: In 2017/18, productions worth R1.9-billion were secured. • Cape Town and Western Cape Convention Bureau: 33 bids with a projected economic impact of R453-million were secured. • Cape Town Air Access: In three years, an additional 750 000 inbound seats have been secured on direct flights to Cape Town. This is a partnership with the City of Cape Town, the Western Cape Provincial Government, South African Tourism, Cape Town Tourism, Airports Company South Africa and private companies. Wesgro’s efforts have not been limited to the Cape Metropole. Investor conferences have been held in the Cape Winelands, the West Coast and the Garden Route to highlight the opportunities of each region. At the Garden Route conference, Wesgro CEO Tim Harris noted that between 2006 and 2015 the region’s economy grew at an average rate of 4.8% and exports grew by 45%. The hotel and golf courses on the estate at Fancourt, pictured on the first page of this article, are among the top attractions of George and the Garden Route.

Regional economy Finance, business services and real estate combined contribute 28% to the gross domestic product (GDP) of the Western Cape. The financial services and insurance sector are key components of the economy. Many of South Africa’s biggest companies have their headquarters in Cape Town. Asset management and venture capital companies have been growing steadily. Although agriculture only accounts for 4.3% of

17

SOME EXPORT FACTS Malaysia mostly imports apples, pears and quinces. In 20 15, these fruits alone earned $51.1-million, citrus fruit $18.5-million and grapes $10.7-million. Singapore’s top product from the Western Cape in 20 16 was refined petroleum oils and oils obtained from bituminous minerals at a value of $14.3-million, followed by apples, pears and quinces at $13.1-million. A trade mission involving 15 Western Cape companies to Ethiopia in 2017 secured R200-million in export deals. Ethiopian Airlines has increased its flights to Cape Town to 10 times per week.

GDP on its own, the sector is responsible for the fruit and vegetables that contribute to agriprocessing which accounts for nearly 40% of the province’s export basket. (Agri-processing accounts for 8.1% of GDP.) Citrus, wine, apples and pears, grapes, fruit juice, fruit and nuts and tobacco all appear in the top 10 of the province’s exports. Seventy percent of South Africa’s beverage exports come from the Western Cape. Grapes and wine sales to Europe remain very strong but the Chinese market is becoming increasingly important. Refined petroleum was the single biggest earner for the Western Cape in 2015, with exports valued at R18.2-billion (Wesgro). The province has a diverse manufacturing sector ranging from textiles, clothing, footwear WESTERN CAPE BUSINESS 2019


SPECIAL FEATURE and furniture to coke and refined petroleum products. Excluding agri-processing, other manufacturing makes up 6.9% of GDP.

grow. The port plays a major role in exporting the province’s excellent fruit, wine and other agricultural products to international markets. Cape Town has a diverse manufacturing sector, with petroleum products, food and beverages, and metals and metal products being major sectors. Growth sectors include the film industry, ICT and other tech specialities such as fintech and medical diagnostics.

Regions The province is divided into one metropolitan municipality and five district municipalities Cape Town Metropolitan Municipality

West Coast District Municipality Towns: Saldanha Bay, Malmesbury, Clanwilliam, Vredenburg, Moorreesburg. The economy of this region ranges from manufacturing in Saldanha, Atlantis and Malmesbury to agriculture and forestry centred on inland towns like Moorreesburg (wheat), Cedarberg (forestry) and Citrusdal. Cement is made in Riebeeck West and Piketberg and fishing takes place all along the coast. Rooibos tea and shoes are made in Clanwilliam. The remote mission station of Wupperthal is famous for its veldskoens. The Port of Saldanha Bay is the principal port for the export of iron ore and with the impending declaration of the Saldanha Industrial Development Zone, is gearing up to service the continent’s oil and gas industry and to be a steel manufacturing hub. Mineral sands are mined north of Saldanha.

Cape Town is a culturally diverse and dynamic metropolis set among beautiful beaches and winelands with the spectacular Table Mountain as a backdrop. The city is the engine of the regional economy, with most of the Western Cape’s heavy and medium industry located within the metropolitan area of Cape Town. The largest sector in the city’s economy is the financial and business services industry. The opening of a branch of the JSE in the city is a sign that this sector continues to grow, as is the decision of more asset managers to move their headquarters to Cape Town. The tourism, retail, construction and property sectors have been doing well for many years. The city has a population of 3.2-million and contributes 76% of the regional gross domestic product. Cape Town is home to the nation’s parliament and is the site of two World Heritage Sites: the Cape Floral Region (including Table Mountain) and Robben Island. The Cape comprises only half a percent of the landmass of Africa yet the Cape Floral Region accounts for nearly 20% of the flora of the continent. Robben Island was the site of the incarceration of the most prominent political prisoners during the apartheid era, including Nelson Mandela. Cape Town has been welcoming the world in increasing numbers since Mandela’s release in 1990, and it is now regarded as one of the world’s great tourist destinations. The Port of Cape Town is ideally situated at the crossroads of some of the world’s most important trade routes. The transport, maritime and logistics sector is consequently very important. Bunkering and ship repair are other vital port facilities, and the boat repair and boat building industries continue to WESTERN CAPE BUSINESS 2019

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

18


SPECIAL FEATURE Overberg District Municipality Towns: Caledon, Bredasdorp, Hermanus, Swellendam, Cape Agulhas. The Overberg contains the southernmost tip of Africa (Cape Agulhas), the oldest mission station in South Africa (Genadendal), a large casino resort (in Caledon) and some of the best whale viewing in the world (Whale Coast). It also hosts some highquality fruit farms in the Ceres Valley and rural villages that are very popular with tourists such as Barrydale and Greyton. Agriculture is the principal economic activity of the region and the services sector is strong. Garden Route District Municipality Towns: George, Oudtshoorn, Calitzdorp, Knysna, Mossel Bay, Plettenberg Bay. The area has two important tourist names: the Garden Route on the coast and the Klein Karoo between the mountain ranges. Route 62 is a popular route which ends (or starts) in Oudtshoorn, home of the Cango Caves. A report by the Bureau for Economic Research has found that the Garden Route DM is one of the best-performing regions because of tourism. The area is famous for fine

golf courses and golf estates. Mossel Bay, where the slipway in the harbour has received a multimillion-rand upgrade, hosts a large gas-processing plant while George is a node of manufacturing, trade and administration. The Klein Karoo has its own wine route and port, cheese and brandy are produced. Fruit, vegetables and ostriches are other main products. Central Karoo District Municipality Towns: Beaufort West, Laingsburg, Prince Albert. The largest district in the province has the smallest population, a reflection of the semi-desert conditions: 71 000 people live on 38 000km². Sheep farming predominates and there are plans to introduce agri-parks to towns in the region. Beaufort West is strategically positioned on the N1 highway which links Cape Town with the interior of South Africa. The nearby Karoo National Park has recently acquired some lions and Prince Albert is a quaint town situated in the shadow of the Swartberg Mountain, close to the dramatic portals that link the Karoo to the Klein Karoo: Seweweekspoort, the Swartberg Pass and Meiringspoort.

Municipalities in the Western Cape

Metropolitan/District Municipality Boundary Local Municipality Boundary

WCDMA01

Garden Route

District Municipality

Oudtshoorn

Local Municipality

Northern Cape Matzikama

WCDMA05 Cederberg

Beaufort West

West Coast

Central Karoo

Bergrivier

WCDMA02

Saldanha Bay

Laingsburg

Swartland

Cape Winelands City of Cape Town Metropolitan Municipality

Kannaland

Oudtshoorn WCDMA04

Garden Route

Breede Valley Drakenstein Langeberg

Mossel Bay

Stellenbosch Theewaterskloof

Overberg Overstrand

George

Knysna

Bitou

Hessequa Swellendam

Cape Agulhas

ATLANTIC OCEAN

Eastern Cape

Prince Albert

Witzenberg

INDIAN OCEAN

WCDMA03

19

WESTERN CAPE BUSINESS 2019


BIOGRAPHY Mr Solly Fourie, Head of the Department of Economic Development and Tourism in the Western Cape. Mr Fourie holds a Bachelor of Commerce Degree, an Honours Degree and Master’s Degree in Business Administration from the University of Stellenbosch Business School. Before Mr Fourie joined the Western Cape Government in 2010, he spent nearly 30 years in the Financial Services sector. Mr Fourie’s unique blend of experiences, in both the public and private sectors of the South African economy, enable him to bring a fresh business approach to the public sector.

Economic Growth

at the heart of successful development CREATING AN ENABLING BUSINESS ENVIRONMENT The following are focus areas of DEDAT that contribute towards an enabling business environment:

Ease of Doing Business

It is the fundamental belief of the Western Cape Department of Economic Development and Tourism (DEDAT), that growth is driven primarily by the private sector operating in a market environment. Therefore, the state’s role should be to create and maintain an enabling business environment, and provide a demandled private sector which supports propulsive sectors, industries and businesses. An example of this approach is Project Khulisa, which enables greater intervention into targeted sectors. This consistent strategic approach has led to numerous positives in the Province, including the lowest unemployment rate in South Africa, a better growth rate than the rest of South Africa, and a business confidence rate which is higher than the national average.

Thanks to the Ease of Doing Business strategy an estimated R493 million has been saved through red tape reduction and ease of doing business interventions.

Investment Promotion The department’s trade and investment agency, Wesgro, has attracted R7.2 billion worth of investment to the Western Cape, since 2014. Further to this, 64 trade deals have also been secured, valued at approximately R11.1 billion, since 2014.

Project Khulisa Interventions The Project Khulisa strategy prioritises three key sectors for the Western Cape which could change the trajectory of economic growth and job creation: Agri-Processing, Tourism, and Oil and Gas Supply.


In terms of Agri-Processing, key projects were prioritised, namely Halal export promotion, the Halal Industrial Park, the Halal Certification Project and Wine and Brandy export promotion. Successful missions were undertaken by Western Cape companies to promote Halal products in targeted countries. Furthermore, a collaboration between the Western Cape Government, Wines of South Africa and Wesgro to promote wine exports in Angola and China, has led to significant growth of wine turnover in both markets. The Oil and Gas Supply sectors can potentially provide huge gains for the province. 34 potential investors have already signed Memorandums of Understanding with regards to the industrialisation of the West Coast Region, including the Saldanha Bay Industrial Development Zone. Over the last year, Tourism’s Gross Value Add grew by more than R2 billion, or 11%, which is more than five times that of the national average. And since the inception of an Air Access team, inbound international seats have grown by 800 000 seats, by expanding and adding routes into Cape Town.

Innovation Innovation is key to ensuring significant growth in the economy. Leading the fight in innovation, the department has seen the first intergovernmental innovation forum established, with ten provincial government departments accepting the challenge to work smarter. Further to this, 15 Western Cape Government case studies have been developed and distributed for peer learnings.

Digital Economy The Public Access Wi-Fi project established 178 hotspots, accumulating 1.6 million users and exposing 400 000 citizens to digital literacy programmes. DEDAT developed a strategic framework for the Digital Economy to be responsive in a fast-changing digitallyenabled world. The Digital Business Toolkit was developed as an online platform to enable SMMEs to access services, tools and skills that will aid in their growth and competitiveness.

Green Economy With DEDAT support, GreenCape’s investor support across the green economy has helped attract over R1.2 billion worth of investment in green technology and services in the Western Cape. Extensive work has been undertaken to advance the progress of establishing an Atlantis Special Economic Zone (SEZ), which will serve as a green tech hub. To strengthen long-term water resilience for the province’s economy, DEDAT leads an Economic Water Security Workstream with various roleplayers. The Green Economy unit also builds stakeholder relations with the aim of improving waste economy development in the Western Cape.

Energy The Energy Security Game Changer aims to increase the uptake of solar PV in the Western Cape, with 60MWp of solar PV installed to date. Small Scale Embedded Generation (SSEG) is promoted, with 13 municipalities now having NERSA approved tariffs and 21 municipalities having a framework in place to allow SSEG. Furthermore, the Energy Security Game Changer actively drives the promotion of Liquefied Natural Gas, which was bolstered through securing USTDA support (US$800 000) to undertake a further feasibility study into the importation of LNG.

Skills Development The Apprenticeship Game Changer addresses the supply and demand for skills needed in the Western Cape economy. It focuses on sectors with the potential for a higher uptake in employment and economic growth, within specific occupations and trades in these sectors. The programmes initiated by the department and other role-players aim to improve the employability of particularly first-time work seekers, through programmes that provide for extended training opportunities, experiential learning and work placement at companies.

For more information on the Western Cape Department of Economic Development and Tourism, please visit: https://www.westerncape. gov.za/dept/edat


BE PART OF A DYNAMIC ECONOMY CAPE TOWN IS A HIGH-PERFORMANCE, AFRICAN BUSINESS HUB THAT SUPPORTS BIG IDEAS AND INNOVATION The city is best known as a world-class tourism destination, but increasingly more businesses identify Cape Town as a forwardlooking globally competitive city ready for investment. In fact, the city is already the African headquarters of major multinationals such as Amazon, KimberlyClark and DHL, while home-grown global titans, Naspers and Shoprite, use Cape Town as their base. What sets the city apart is not just Cape Town’s exceptional quality of life but also government’s commitment to create an enabling environment. Invest Cape Town is the City’s commitment to creating a platform that enables business leaders and entrepreneurs to live, work, play and invest. We work with international and local entrepreneurs, SMEs and multinationals that wish to set up a business in Cape Town. On the ground we collaborate with partners from business formations, investment promotion agencies and sector support entities, and all spheres of government.

“Cape Town is an excellent location from which businesses can launch their operations into the rest of Africa and we are ready to help you build your business case for investment,” says the City’s Director for Enterprise & Investment Lance Greyling.

WHAT INVEST CAPE TOWN OFFERS: • • • • •

Assisting investment facilitation; Unlocking investor incentives; Investing to grow catalytic sectors; Helping enterprise development; And cutting red tape.

In September 2018 the World Bank Ease of Doing Business Report found Cape Town to be the best of all South African cities in getting electricity to investors and granting construction permits.

INFRASTRUCTURE The City is investing R6bn in infrastructure each financial year, and establishing energy security by switching to renewable energy. Cape Town is also investing in IT infrastructure and to date the City has installed 848km of fibre-optic cable.

GROWING SECTORS “A lot of the sectors that Cape Town is doing well in are sectors that are poised for big global growth – sectors of the future,” says Greyling. Cape Town’s entrepreneurial tech sector is significantly more productive than other African cities, employing more than


double the people than Lagos and Nairobi combined, says Endeavor Insight 2018 study. In Business Process Outsourcing, we’re the leader in South Africa and in Africa with a rich talent pool. The City is funding special purpose vehicles to act as catalysts in key growth sectors. In the past financial year 2703 Capetonians received training in the BPO, ICT, fashion, garment making and renewable energy sectors, creating a steady pipeline of skilled labour. Cape Town’s flourishing renewable energy market has seen the highest year-on-year growth globally, says Moody’s Investors Service 2017 report. The Atlantis GreenTech Special Economic Zone (SEZ) presents a particular opportunity, attracting investments in clean technologies, electronics, solar and wind energy technologies, energy efficient technologies, alternative waste management, alternative building materials, and technologies, among others. It’s also easier to reach Cape Town. Since 2015 Cape Town Air Access has secured 13 new routes and has helped expand 18 existing routes to the rest of Africa, Asia and Europe. Cape Town offers many investment opportunities and Invest Cape Town offers a wide range of customized services, free of charge, for any business stage you are in.

Twitter: @investcapetown Visit www.investcapetown.com


INTERVIEW

Showcasing investment opportunities Wesgro CEO Tim Harris outlines how dedicated programmes are attracting significant investments and tourists. The Western Cape metropole emerged from a long-term drought as a more resilient city. What has been the impact on tourism and investment?

Tim Harris, CEO

BIOGRAPHY Tim Harris is the CEO of Wesgro, the Tourism, Trade and Investment Promotion Agency for Cape Town and the Western Cape. Tim previously served as Member of Parliament and Shadow Minister of Finance for the Democratic Alliance (DA). He holds a BA in English Literature and a Masters in Economics from the University of Cape Town. Tim currently sits on the board of the Cape Town Film Studios and BPESA.

WESTERN CAPE BUSINESS 2019

There are many factors that affect tourism and investment. From a tourism perspective factors include affordability, distance to destination, climate, exchange rate, visa regulations and even the price of petrol will have a big impact on the domestic market. Similarly, investment was negatively impacted through credit downgrades, policy uncertainty, political instability and negative media coverage surrounding the drought that weighed down on our investment case globally. The effect of the drought on tourism will not be seen at this point; however, our top 10 markets (UK, Germany, USA, Namibia, France, Netherlands, Switzerland, Sweden, Australia and the UAE) performed relatively well in Q1 of this financial year despite the circumstances. We did indeed look to other markets for lessons learnt, inspiration and advice on how to deal with a crisis. Tourism is a resilient sector, and with time it can correct itself. We learnt from Mexico that profit margins for businesses, especially small business, is so small that anything and everything must be done to expedite recovery. Another lesson learnt was that deep discounting was not a solution either. Egypt learnt that it takes five years to mathematically recover from a 10% cut in prices – once you start discounting your clients change and so does your competition, which isn’t always good. Taking inspiration from the “Great” Britain destination marketing campaign we conducted research through an international investor perceptions survey, to provide insight as to how Cape Town and the rest of South Africa faired in the international investment consideration market. Following this, a marketing campaign was devised to instil confidence in the economy of the Cape and South Africa internationally, by showcasing the many opportunities for investment across a variety of sectors in the Western Cape. The research provided us with the data we needed to make sure the campaign was efficient and impactful. It demonstrated that we needed to do more to show to the world our relative strengths – access to growing markets, ease of doing business, a growing economy, and world-class infrastructure were key points identified in this research.

24


INTERVIEW How do you feel events at national level are panning out for the investment environment?

outward foreign direct investment projects valued at R190-million.

We welcome the steps by President Cyril Ramaphosa to attract over US$100-billion in foreign direct investment. We particularly welcome the steps outlined in the visa relaxation announcement as a step in the right direction – if implemented correctly it will have a noticeable and positive impact on tourism, trade and investment in the Western Cape and South Africa. A team from the Western Cape comprised of representatives from the Western Cape Government, City of Cape Town, Saldanha Bay Industrial Development Zone (IDZ), GreenCape and Wesgro recently attended the inaugural Investor Summit in Johannesburg to play our part in driving more investment to South Africa. Key to Cape Town’s success is cooperation between all spheres of government and being a reliable and transparent partner for foreign and local investors.

The Cape Town & Western Cape Convention Bureau’s mandate is to attract meetings, incentives conferences and exhibitions to the Western Cape. Often, and especially over peak periods, conference and event venues in the Western Cape have to turn away business due to unavailability of venues space. An expanded convention centre means that additional large-scale conferences and events can be hosted in the destination. As the number one destination on the continent for hosting international association meetings, the bureau often works with the convention centre sales team in promoting the destination and attracting new meetings.

Please give an overview of your investment highlights over the past year.

What are the highlights of the Cape Town Air Access programme?

Is the expansion of the CTICC having an effect on conferences and events?

Wesgro’s Investment Promotion unit realised committed The Cape Town Air Access partnership between investments worth R2.29-billion, to be landed over the Wesgro, the City of Cape Town, the Western Cape next five years, which translated into 1 014 jobs. A key Government, South African Tourism, Cape Town success for the unit was the foreign direct investment Tourism, Airports Company South Africa, and committed by Pegas Nonwovens, the largest producer of private sector partners, demonstrates the power of spun melt nonwovens in the EMEA (Europe, the Middle collaboration in boosting the Cape economy. In just three years, this initiative has helped land East and Africa), to the value of R1.3-billion. A key part of our investment promotion effort is the work done by 13 new routes and 18 route expansions, adding an our dedicated Agribusiness Investment Unit, funded by additional 750 000 inbound seats to Cape Town the Western Cape Department of Agriculture. This team International Airport. These additional passengers have helped land committed investments in the agribusiness spent an estimated R6-billion in the Cape economy. sector amounting to R756-million off the back of six During the financial year in review, the economic investments. This is expected to create 1 412 jobs over impact of the project is estimated to be R2-billion. the next five years. Contributing to this achievement was The most recent highlight was the launch of the US-founded Cape Town-headquartered Marathon Cathay Pacific’s first direct flight between Cape Town Restaurant Group, which invested R300-million in and Hong Kong. By connecting the Cape directly to developing Pizza Hut, fast-casual restaurants in the China for the first time, we hope to see a marked Western Cape, creating 700 jobs. increase in tourism and investment into our region. Other highlights include our expanding direct How are the Cape’s exporters faring? flight offering to key hubs in Africa. In September, During the past financial year, Wesgro’s International Kenya Airways launched a direct flight from Nairobi Trade Promotion unit facilitated the signing of 53 to Cape Town, with RwandAir introducing the direct business agreements with an estimated economic flight from Kigali via Harare to Cape Town. These value of R2.83-billion over the next five years, expected launches are fundamental in positioning the Cape to create 679 jobs. Further to this, the unit facilitated as a gateway to Africa.

25

WESTERN CAPE BUSINESS 2019


CAPE TOWN STADIUM FROM ICONIC ACTS TO INTIMATE DINNERS

This is where South Africa celebrated the life of Nelson Mandela, where we cheered the superstars of the Soccer World Cup. It’s where we got goosebumps from seeing the world’s biggest acts live on stage and took selfies dressed up for the Rugby Sevens. It’s also the perfect setting for a unique gala event, business event or product launch and the ideal backdrop for an international blockbuster or one-of-a-kind photoshoot.

SO MUCH MORE THAN JUST A STADIUM. Excellent location | Great scale and versatility | World-class facilities and staff | Great legacy

For enquiries or to book, call +27 21 417 0120 or visit CapeTownStadiumBookings.co.za


CAPE TOWN STADIUM THE PERFECT SPACE FOR ANY EVENT

The Mixing Zone. From black tie parties and exclusive soirées to premiere corporate events and fashion shows – any special event can be created here.

Business Lounge. Let your imagination run wild in this flexible venue. The space can be easily divided and can accommodate large tables and many guests. It has a great view of the pitch and is perfect for grand functions and has enough space for dance floors.


Network Lounges. With amazing sea and stadium views, these four open spaces can host corporate meetings, cocktail parties, team builds, exhibitions, seminars and more.

The Presidential Suite. This exclusive and private setting on the fifth floor gives an incredible view of the pitch with an intimate atmosphere. Host a strategic discussion, product launch or club function that everyone remembers.

With all of these amazing spaces, plus additional conference rooms, the stadium forecourt and the pitch itself, the Cape Town Stadium really is so much more than just a stadium. Contact us today and let us bring your event to life.

SO MUCH MORE THAN JUST A STADIUM. Excellent location | Great scale and versatility | World-class facilities and staff | Great legacy

For enquiries or to book, call +27 21 417 0120 or visit CapeTownStadiumBookings.co.za


Red Tape Reduction Unit The Red Tape Reduction Unit makes it easier for businesses to thrive in the Western Cape, by growing our economy and creating more jobs. The amount of red tape and bureaucracy faced by businesses when dealing with government restricts economic development and growth. Creating an enabling environment for business is, therefore, fundamental to creating a competitive economy. Research shows that red tape costs South Africans R79 billion per year. This is equivalent to 6,5% of GDP, or 16,5% of the total wage bill in 2003 (Small Business Project (SBP) 2005).

Red tape is defined as: •

non-essential procedures, forms, licences, and regulations that add to the cost of dealing with government; or anything obsolete, redundant, wasteful or confusing that diminishes the competitiveness of the province, which stands in the way of economic growth and job creation or wastes taxpayers’ time and money.

Red tape interferes with: •

• •

the ability of businesses to compete in a global marketplace as a result of unnecessary costs and/or delays; the rate of establishment of new businesses; and the sustainability and/or growth of existing enterprises.

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

in the Western Cape. The Unit follows a twopronged approach in tackling bottlenecks in the business environment: • reactive through its response to cases lodged to the unit; and • proactive, which seeks to identify legislation and processes that represent barriers to business or efficiency in government, and designing interventions that cut across an entire industry sector or several processes. The outcome of the interventions must impact on the cost of doing business in terms of reducing either time, costs or complexity. To date the unit has dealt with almost 8,000 business and red tape related matters. It maintains a resolution rate in excess of its 85% target. The WCG made Regulatory Impact Assessments (RIAs) standard practice for new policy and legislation. Cabinet has approved it as a mandatory requirement for all significant legislation and policies. We are the first and only province to elevate RIA to this level. The Red Tape Reduction Unit has partnered with sister departments to improve businessfacing processes. This benefits business process improvement (BPI) projects, such as the Department of Transport and Public Works (tourism signage and abnormal load permit applications) and Agriculture (export related processes, permit applications and auditing). Several BPI project possibilities with national departments are being explored as well. The potential for making it easier, cheaper and faster to do business in the province is huge, considering the many approvals, licences and authorisations that businesses need to operate. For more information on the Red Tape Reduction Unit please visit https://www.westerncape.gov. za/red-tape-reduction/


Cutting the red tape for tourism attraction in Franschhoek The Red Tape Reduction Unit’s intervention in the Franschhoek Wine Tram’s success story not only impacted their future of doing business and expanding, but ensured economic growth and job creation for the entire Franschhoek Valley, including more than 20 wine farms. Brett Garner, Franschhoek Wine Tram’s General Manager, explains that the Red Tape Reduction Unit has assisted them twice over the past five years. “The involvement of the Red Tape Reduction Unit is actually multifaceted in our business. When we started the Wine Tram in 2012, it was quite a novel idea to have a tram on a railway track. As we also have a hop-on hop-off bus service to get our guests to and from the tram and the various wine estates, the Department of Transport characterised us as a charter service. As such we were under pressure to clear hurdles that we simply could not. For example, as a hop-on hop-off service we could not generate a passenger manifest or guest list, but we were required to do so.” This placed the Wine Tram at odds with local officials. “To add to this we were also expected to take our buses all the way from Franschhoek to have them inspected in Cape Town. This would mean closing our business for a day every month, which did not make economic sense. The owners contacted the Red Tape Reduction Unit and they helped to get the Department of Transport on the same page as us and amend our accreditation. We were also able to have our inspections done on site,” explains Brett. The business quickly expanded and today the Franschhoek Wine Tram visits 22 wine estates and has ten road vehicles and three railway trams. Brett believes that if the Red Tape Reduction Unit had not intervened, it would have had a negative impact on job creation and tourist numbers. “We are an international tourism drawcard and a delay to our launch would have created a bad public perception of us. Our expansion has allowed us to consider

developing further stretches of our line, which we are keen to do.” The Franschhoek Wine Tram service has expanded from taking a maximum of 40 people per day when the service was first launched in 2012, to taking up to 540 people per day after the most recent expansion. “We now have 55 employees, with the vast majority coming from Franschhoek,” says Brett. “The impact of the Franschhoek Wine Tram on job creation and local investment is magnified when you consider that each of the wine farms we visit has either made changes, built infrastructure or brought in additional human capital to ensure a better offering. Something we should not undervalue, and where the Red Tape Reduction Unit has greatly assisted us, is the international drawcard the Wine Tram has become,” explains Brett.


FOCUS

The Voice of Business In a time of change, dynamic people and making connections with others are still fundamental to business success.

A

fter 214 years of service to business, two industrial revolutions and another one on the way, the Cape Chamber of Commerce and Industry believes that there is one thing that has not changed: business is still driven by people – who are smart, dynamic entrepreneurs. The second thing that has not changed in 214 years is the need to communicate with others in the field, meet people to work with, learn from each other and generate the excitement of a shared vision. The modern term for this is “networking”, but the Chamber offers much more than that – it is “Where Opportunity Meets™”. The two most recent revolutions have left us with electricity (most of the time) and information

WESTERN CAPE BUSINESS 2019

technology that have given us access to unlimited knowledge with just a few clicks and key strokes. The next revolution will supercharge all this with artificial intelligence and robots. But we will still need to meet each other, exchange ideas and discuss the threats and opportunities in the business world. The Chamber provides a safe space for being heard and finding opportunity. The third thing that hasn’t changed since 1804 is the need for a voice to speak on behalf of business. Our ability to lobby with integrity is underpinned by our status of being fiercely independent. We are not affiliated to any political party and we are not beholden to any single organisation. We monitor proposed legislative changes that could affect

32


FOCUS

business interests. Where necessary, evidence is submitted to the appropriate parliamentary standing committee or other authorities on behalf of our members. This is a task that is becoming increasingly important in an age where requirements for “public participation” are built into legislation. We also use media releases with radio interviews and letters to newspapers to reach a wider audience and alert the public to developing problems and the likely unintended and undesired consequences of legislation and policies. Our voice matters. The Internet can provide most of the information we need, but sometimes it is necessary to go beyond Google and anticipate future problems. We do this by arranging seminars and workshops where information can be shared, and experts can lead discussions to provide a deeper understanding of issues that can affect businesses, both big and small.

assist members with information on exhibitions as well as arranging for incoming delegations to visit the chamber and meet our members. For those venturing abroad for new customers we provide them with a letter of introduction, a Carnet de Commerce, in both English and French. We also issue certificates of origin for exporters, host the Port Liaison Forum where problems with sea freight are discussed – and often solved – and we promote exports with our Exporter of the Year competition, now in its 28th year. Our portfolio committees provide specialist forums for the different fields of commerce, industry and agriculture, and we secure top speakers to give members the latest information and to look ahead to likely developments. In many ways small business is the future of the country and we go out of our way to provide advice and HR support while our local chapters take the Chamber to business in the outlying areas of the city. We also have an annual small business expo where our members can meet a wide range of businesses who supply services to business as well as officials from all three tiers of government who can help small firms run more smoothly and with less red tape. Everything may have changed in the past 214 years, but the Chamber is still about providing services to business, so nothing has changed.

Bringing people together Bringing people together has always been a core function of the Chamber. In the early days this happened naturally as merchants visited the Chamber offices in Adderley Street for the latest shipping news and to learn what cargoes were about to be unloaded. That created a perfect networking opportunity, but these days we have to arrange events by organising conferences, exhibitions, coffee club mornings and celebrations to mark events like International Women’s Day. We have nearly as many events as there are business days on the calendar. The Cape’s economy has been built on trade and promoting trade is still one of our main activities. We have an international trade desk which is the first point of contact for visiting trade missions and delegations. We also set up information seminars on how to conduct trade with various countries and

CONTACT DETAILS Physical address: 4th Floor, 33 Martin Hammerschlag Way, Foreshore, Cape Town 8001 Postal address: PO Box 204, Cape Town 8000 Tel: +27 21 402 4300 | Fax: +27 21 402 4302 Email: info@capechamber.co.za Website: capechamber.co.za

33

WESTERN CAPE BUSINESS 2019


INTERVIEW

Advancing sustainable growth through collaboration Ryan Ravens, the CEO of Accelerate Cape Town, outlines the ways in which business, academia and government can work together to make an impact on socio-economic growth.

Ryan Ravens

BIOGRAPHY Ryan Ravens currently holds three degrees including an MBA from the University of Cape Town. He has extensive experience in leadership positions in the public and private sectors. Ryan owned and managed a successful management consultancy before delivering the first draft of the masterplan for the 2010 World Cup. This led to him being asked to join FIFA, after which he was Group Executive (Enterprise Programme Management Office) for the Gauteng Growth and Development Agency. WESTERN CAPE BUSINESS 2019

What is Accelerate Cape Town doing to attract and retain black talent to the region?

Cape Town is one of South Africa’s key business hubs; however, young black professionals have not always found the city an easy place to network and meet mentors in their careers. To support our members’ talent programmes, Accelerate Cape Town hosts a number of initiatives such as our Inspiration Sessions and Thought Leaders engagements, which provide a large vibrant forum for young professionals in Cape Town to network, as well as debate critical issues such as transformation and career progression. Accelerate Cape Town’s Human Capital programme aims to • Address issues of transformation in the city • Provide a dialogue between business and academia and address issues impacting on graduate placement and work readiness • Provide a cross-sector engagement for HR professionals in Cape Town through workshops • Provide a networking platform for newly relocated staff of our member companies through our networking engagements. How can business, government and academia work together? We are extremely fortunate in the Western Cape to have no less than four world-class tertiary institutions and two internationally accredited business schools. At Accelerate Cape Town, we believe that business, government and academia should collaborate to positively contribute to the socio-economic transformation South Africa so desperately needs. We work to create an ecosystem in which engagement between business, government and the Western Cape’s four universities is synergetic and highly impactful. What is the aim of Accelerate Cape Town’s Business Leadership programme? The aim of the programme is to • Stimulate robust discussion on issues such as governance and ethics

34


INTERVIEW and also drive higher accountability on these critical issues Connect business, government and higher education to find opportunities to collaborate and co-create, generating greater economies of scale Tap into the depth of expertise found in universities, ensuring we remain innovative and relevant as a city.

Is something being done to tackle Cape Town’s traffic problem h ​ olistically?

There have been numerous collaborative attempts to improve Cape Town’s transport crisis in the short term, including everything from carpooling and corporate • shuttles, to non-motorised transport solutions such as bicycle lanes. These solutions have started chipping away at the problem; however, they remain short-term How can Accelerate Cape Town’s interventions and will not shift the needle over the long Enterprise and Supplier Development term as they remain largely inaccessible or impractical (ESD) programme benefit corporates as for the majority of commuters. well as the local economy? Cape Town will always be constrained South Africa greatly needs jobs and economic geographically when it comes to building new road development, but with government coming under infrastructure as our city centre is wedged between increasing pressure to reduce its wage bill, and the mountain and ocean, and most of our major the corporate sector similarly pushing for greater highways converge on the Foreshore, resulting in efficiencies in a recessionary economy, the only significant daily bottlenecks. Improvements to our remaining hope for job growth is the SME sector. In roadways in other parts of the city simply result in order to significantly grow SMEs, we need to provide motorists getting to the bottleneck sooner, thereby them with access to market opportunities, finance, extending the daily congestion further and further technical support and mentorship. down the road. Interestingly, recent research has Identified as a key economic driver globally, the shown that nearly 80% of motorists arrive at the development of SMEs is probably the most meaningful CBD in single-occupancy vehicles. Increasing levels of way to grow a more diverse and sustainable vehicle occupancy, through initiatives like carpooling economic landscape for South Africa. Accelerate and shuttle services, will have a significant downward Cape Town’s Enterprise and Supplier Development impact on the number of vehicles clogging up our (ESD) Programme aims to encourage greater socio- roads, but with Cape Town being the fastest-growing economic transformation. city in South Africa, this will provide a temporary reprieve at best. How can SMEs be supported? The solution is a clean, safe and efficient commuter SMEs require support and resources that include rail system. This will only be possible through access to suitable market opportunities, access to unprecedented collaboration between the public finance for upscaling, access to technical support and private sectors. We need innovative thinking, required for upscaling and, most importantly, access new models of public infrastructure development, to best-of-breed mentors. and unwavering political will to see this done. •

35

WESTERN CAPE BUSINESS 2019


PROFILE

WECBOF fosters entrepreneurship in the Western Cape The Western Cape Business Opportunities Forum (WECBOF) celebrates its 24th year as one of the Western Cape’s longest-standing business associations. During its lifespan WECBOF has supported many entrepreneurs in moving from their start-up phase to becoming very successful organisations with many of these still operating, and contributing meaningfully to the economy.

WECBOF has had to adapt and keep pace with an ever-changing economic, commercial, technological, political and socio-economic environment. The organisation today has as its central Arifa Parkar, CEO focus the sustainable growth and development of a community of young, successful entrepreneurs who will be able to lead businesses which will contribute in a positive way to growing and prospering our economy and creating much-needed jobs in our communities. Support to young entrepreneurs, through its 10x Growth Programme, comes in the form of:

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

• Access to financial and other business support services

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

Contact us today if you wish to sign up as a member. Our member packages are affordable, and are tiered from the more established corporate business to the new start-up. WESTERN CAPE BUSINESS 2019

36


WECBOF

makes it happen! T

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

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

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

A powerful voice for business. Where entrepreneurs excel.


FOCUS

Innovation drives exports The Cape Chamber of Commerce and Industry’s Exporter of the Year competition showcases the Western Cape’s many talents and resources.

T

wenty-eight years of Exporter of the Year competitions run by the Cape Chamber of Commerce and Industry and sponsored by the Export Credit Insurance Corporation, have proven that enterprise and innovation are the important driving forces in the Western Cape economy. The 2018 finalists were: • • • • • •

• •

All Women Recycling, a Muizenberg company which transforms plastic waste into beautiful handcraft items, gifts and gadgets; Caffenu, which makes cleansing capsules for coffee machines; Cape Cookies, which manufactures and exports biscuits; Ele Trading markets and exports fresh produce; Elim Spa Products International, which produces a wide range of heath-restoring spa and beauty products; Folio Online, a translation service for Africa and the world;

WESTERN CAPE BUSINESS 2019

38

• •

Kallos Global (Pty) Ltd and Global Fruit Masters (Pty) Ltd, which procure and distribute fruit and vegetables; Overhex Wines International, winner of international awards; Research Unit, manufacturer of stylish leather handbags; Slent Farms, which makes and exports wine; and Tradewinds Parasols makes patio umbrellas and shades.

A consistent performer over the years has been the agricultural


FOCUS

sector, especially the fruit and wine exporters which produce 50% of South Africa’s agricultural exports worth many billions of rands each year. They continue to perform well despite the recent drought. The sector has managed this by embracing the latest technology to get value for every drop of water and is able to claim that it achieves double the production on half the water. The investments have been huge but farmers have developed the industry to a point where quality is more consistent and demand from the international markets is growing. Perhaps even more important is that it is an industry that creates jobs on the land, in the pack-houses and in the factories which process the fruit. It has been a pleasure for the Chamber to play a role in promoting this vital industry which continues to grow. Technical Systems, which has won Exporter of the Year three times, makes and supplies automated feeding systems to chicken and pig farms in more than 50 countries. Its standards are so high that there has been little imitation of its products, even in China, one of its most important markets. Another growing company that produces food is Abagold, winner of the 2016 Exporter of the Year award. It is the biggest abalone producer outside China and it has a unique problem: it is almost impossible to meet the ever-growing demand for its products from the East. The firm was started by a vet in Hermanus and there are now more than a dozen other companies that have ventured into the legal abalone business.

The industry is particularly important because prospects are virtually unlimited, and it is creating jobs for former workers in the small-boat fishing industry. In the long term it is building up the knowledge, experience and technology to produce more marine products, something that will be necessary as over-fishing is depleting natural fish stocks. We all hope that the industry will develop to the point where it puts the poachers out of business. Maverick Trading, another former winner, found a way to make manhole and drain covers out of polymers and concrete to replace the cast-iron covers which scrap metal thieves found so attractive. We have also had spectacular winners like Mark Shuttleworth’s Thawte Consulting which was sold to Verisign for R3.5-billion shortly after it was named our 1999 Exporter of the Year. The 2018 finalists competed in seven categories and the big winners at our gala dinner in October were Research Unit, manufacturer of designer handbags, and All Women Recycling. For the first time in the history of the competition, one firm, Research Unit, won four categories – the ECIC/Cape Chamber award for the overall best exporter, the Transnet Port Terminals award for the best manufacturing exporter, the Small Exporter category and the Innovation Award. All Women Recycling won the Finex SA trophy for the best non-engineering exporter, the Cape Chamber award for Design and the Nedbank trophy for Transformation. Winner of the Gerald Wolman Award for Excellence in Exporting to Africa was the translation service, Folio Online. Janine Myburgh, President of the Chamber, said the competition was not based on the sheer volume and value of exports but on excellence in exporting and the growth of exports. This created a level playing field for both small and large exporters. “It has been a real pleasure for the Chamber to welcome and honour new exporters and watch them grow. They are a very important part of our future.”

All Women Recycling won the Finex SA trophy, the Cape Chamber award and the Nedbank trophy.

39

WESTERN CAPE BUSINESS 2019


SPECIAL FEATURE

The Maritime Economy Half-a-billion rand has been spent to make Saldanha ready for investment.

W

hen the maritime sector takes off, the graduates of the Lawhill Maritime Centre in Simon’s Town are going to be well placed to pick and choose their career path. With South Africa intensely focused on properly exploiting the Oceans Economy, something that has lain dormant for a long time, the fact that the Lawhill Maritime Centre won another international award in 2018 has some significance. The most recent award for the centre, which trains pupils from grade 10 to grade 12, is the Seatrade Africa, Middle East and India Education and Training Award, which was handed over in Dubai in October 2018. Subjects offered at the centre include nautical sciences, maritime economics and electronic navigation systems. The school is funded by a variety of companies (such as Safmarine Container WESTERN CAPE BUSINESS 2019

Lines, Grindrod and SMIT Amandla Marine), state organisations (Transnet National Ports Authority and the South African Maritime Safety Authority) and private foundations. Educational commentator Jonathan Jansen wrote in the The Times that the centre “reminds us what our country can still become – without any direct state funding”. The state is directly funding several other projects. Operation Phakisa is an initiative of the South African government to fast-track parts of the National Development Plan (NDP). The focus is on delivery and results, with strict timelines. “Phakisa” means “hurry up” in Sotho. One of the focus areas within Phakisa is the Oceans Economy programme. The Oceans Economy is no longer just a concept talked about at conferences, it is a reality that is starting to have an impact on South Africa with other training organisations such as the South

40


SPECIAL FEATURE

The harbour at East London is South Africa’s only river port. All of the country’s major ports are run by Transnet National Ports Authority.

African International Maritime Institute (SAIMI) setting up in Port Elizabeth and the university in that town creating a specialist campus devoted to maritime affairs. South Africa has 3 000km of coastline and the extent of the country’s territorial waters is greater than its land size. And yet the country does not have a merchant marine fleet and only scrapes the surface in terms of the percentage of repair and maintenance of boats and oil rigs which could potentially bring work to its ports. South Africa currently accounts for 1% of the global market of ship repair and refurbishment. According to Operation Phakisa documents, the untapped potential that passes South Africa’s coast is immense. This includes: • South Africa does maintenance on only 5% of the 13 000 vessels that use SA ports. • South Africa is currently servicing four of the

41

• •

80 rigs that are estimated to be in range of Cape Town. Vessels carry 1.2-million tons of liquid fuel around South Africa. Foreign vessels ship 300-million tons of cargo in and out of South African ports.

The coast controlled by South Africa and adjacent waters have possible resources of oil that could supply the country’s needs for 40 years, and natural gas that could supply the country’s needs for 375 years. This has the potential to lead to production of 370 000 barrels per day, but this will need significant investment. The Western Cape Department of Economic Development and Tourism (DEDAT) reports that in 2016 the oil, gas and marine sector supported 8 320 jobs and contributed R1-billion the province’s gross value add. The marine transport committee of the South African Oil and Gas Alliance (SAOGA) is trying to prepare South Africa to reap the potential of the sector. It has developed 18 initiatives across three categories: infrastructure and operations, skills and market growth. In 2018 De Beers Marine announced that it had awarded a contract to ELB Engineering Services for the drying system for the MV Grand Banks life extension project. The alluvial diamond concentrate exploration vessel will undergo a major upgrade in the Port of Cape Town. WESTERN CAPE BUSINESS 2019


SPECIAL FEATURE

bridge over the MR559. Fencing and access control points in support of the customs zone are being constructed. Three major projects are underway or in the planning stage, overseen by national government, the Southern African Oil and Gas Alliance and the SBIDZ-LC: Offshore Supply Base Basil Read won the contract to extend TNPA’s general maintenance quay to create an Offshore Supply Base (OSB). The quayside is 294m with a further 3.8ha being available onshore for support operations. It will cater for ships and rigs looking for oil along both coasts of Africa, and any other rigs passing along the coast.

Saldanha Bay The West Coast region, including the Saldanha Bay Industrial Development Zone (IDZ), has attracted 34 investors who have signed Memorandums of Understanding. Considerable planning has gone into positioning the SBIDZ as a hub for a range of maritime repair activities and oil rig maintenance and repair. The National Department of Trade and Industry (dti) and DEDAT have collectively invested R500-million in core infrastructure at the Saldanha Bay IDZ and a lease agreement has been signed with Transnet National Ports Authority. The Saldanha Bay Industrial Development Zone has formally been in existence since 2013 and it has ambitious plans to tap further into the burgeoning oil rig maintenance and repair business. The SBIDZ fits neatly into two over-arching visions: Operation Phakisa and Project Khulisa, the targeted growth strategy of the Western Cape Provincial Government which includes servicing and repairing of oil rigs as a priority. Priority sectors at Saldanha are upstream Oil and Gas and Marine Engineering and Services. The IDZ is run by the SBIDZ-Licencing Company which works together with Transnet National Ports Authority (TNPA) on many joint projects. These are being undertaken to create good conditions for possible investors. Quayside infrastructure has been upgraded, including a waste-water treatment plant and a new road and

WESTERN CAPE BUSINESS 2019

Berth 205 This is the name of a planned specialised Rig and Vessel Repair Quay which will be able to cater to the latest design in oil rigs. Mossgas Jetty Equipment and vessel -ser vicing f acilit y : this planned 1 000-metre long jetty will be perpendicular to the shoreline of the Port of Saldanha Bay. It will have a maximum width of 120m and be able to serve several ships or rigs in need of repairs or servicing at the same time. In addition, there will be a floating dock. TNPA has done studies on the possible location of the jetty and the local and international market will be canvassed for companies to do the work. Saldanha has not been chosen by the National Department of Energy (DoE) to host a gas-to-power plant: Richards Bay and Coega (Port Elizabeth) have instead been listed as the sites for 2 000MW and 1 000MW plants, if private investors for projects at those ports can be found. The Provincial Government of the Western Cape has asked the DoE to reconsider and wants Saldanha to be allocated at least 1 000MW potential for private companies to consider bidding to run such a power plant. If gas was used to generate power, the next step would be for factories to consider using gas and then the whole energy mix could be transformed.

42


SPECIAL FEATURE Main ports, controlled and managed by Transnet National Ports Authority

Facilities

Key cargo/function

Plans

Saldanha

Slipways, quayside facilities (Mossgas Jetty). Fabrication facility (FerroMarine Africa).

Iron ore.

Industrial Development Zone. Oil and gas supply base and rig repair.

Cape Town

SWL floating crane, two graving docks, syncrolift. Cruiseship terminal.

General cargo.

Enhance marine engineering capability for oil and gas sector.

Mossel Bay

Two offshore mooring points. Slipway. PetroSA logistics base.

Fishing.

Slipway upgrade.

Ngqura

Rig repair.

Containers, dry and liquid bulk.

Expand rig repair. Serve Coega IDZ.

Port Elizabeth

Container terminals, bunkering, slipway.

Vehicles, manganese, general cargo.

Removal of manganese to Ngqura, creation of leisure waterfront.

East London

Dry dock and repair quay.

Vehicles and grain.

Serves East London IDZ. Recent upgrades have been done.

Durban

Ship repair. One graving dock, several floating docks. Three repair quays. Private quayside facilities (EBH and Dormac). Cruise-ship terminal.

Vehicles and multicargo.

Improve access for trucks, back-of-port. New storage areas.

Richards Bay

Richards Bay Coal Terminal. Repair berth in small craft harbour. Serves IDZ.

Coal.

Possible gas and renewable energy hub. Service offshore oil and gas sector.

43

WESTERN CAPE BUSINESS 2019


FOCUS

Partnerships boost skills training False Bay TVET College is training artisans and nurturing entrepreneurs.

Centres of Specialisation

The government is investing in the TVET colleges to ensure that these skills demands will be met and has initiated the Centres of Specialisation Programme through the Department of Higher Education and Training (DHET) to address the demand for qualifications in the priority trades needed for the implementation of government’s growth strategy. False Bay TVET College was selected as one of the Centres of Specialisation and is thus the premier training institution for riggers as well as mechanical fitters in the Western Cape. The College is inviting industry to join this exciting venture. With training incentivised through industry and SETA grants, it makes good business sense to invest now in apprenticeships for these trades.

National Government has initiated the National Development Plan and the Strategic Infrastructure Plan to stimulate growth in the economy. These plans include investing in and stimulating ocean-related industries through Operation Phakisa. In the Western Cape, the provincial economic plan known as Project Khulisa focusses economic growth through three pillars – Tourism, Agri-Processing and Oil and Gas. The Oil and Gas sector is probably poised for the greatest development, with major plans announced for redeveloping ports and taking a bigger slice of the oil rig repair industry. All these developments will require huge numbers of riggers and mechanical fitters for deployment to oil rigs, ports, construction, engineering and transport crews.

WESTERN CAPE BUSINESS 2019

44


FOCUS Centre for Entrepreneurship/Rapid Incubator

The Centre for Entrepreneurship/Rapid Incubator (CFE/RI) was founded through a partnership between the National Department of Higher Education and Training, the National Department of Small Business Development and the College. The CFE/RI applies an innovative and holistic development approach to youth entrepreneurship development, striving to shift the mindset of young people away from only seeking employment to creating employment through entrepreneurship. Learning is supported by structured individual mentoring and the facilitation of linkages to new resources. Technical Support: Rapid Incubator (RI) The CFE provides technical support to the enrolled entrepreneurs through access to the Rapid Incubator (RI), which consists of engineering and woodwork workshops and an innovative Makers Space. These workshops are equipped with machinery, tools and the production support needed to develop and manufacture new offerings. Each of the workshops can accommodate 10 people working simultaneously. While the RI provides a supportive environment and physical space for product development, entrepreneurs are responsible for their own product development consumables. The Makers Space is equipped with laser cutters, a large CNC wood router, a vinyl cutter and 3D printing. The RI offers entrepreneurs the opportunity to manufacture prototypes and actual products to sell, assisting them to improve the chances of starting up and accelerating their enterprise into a viable business. The College welcomes any established company’s involvement and investment

in this credible incubation programme that will contribute significantly to establishing a vibrant SMME economy. New Swartklip Campus

The Swartklip Campus is the College’s next catalytic project, set to trigger positive transformation in the surrounding communities of Mitchells Plain and Khayelitsha in Cape Town. Located at the former Denel munitions testing grounds, the site offers acres of land and solid building structures which will be refurbished into state-of-the-art workshops and classroom spaces. The Swartklip Campus will primarily focus on artisan-related programmes and will open its doors in 2019 for its first student intake of students in the Rigging programme. Offering programmes in the priority artisan trades, the campus will accommodate an estimated 3 000 students a year once fully operational, making a major contribution to the National Development Plan’s goal of producing 30 000 skilled artisans per year. Companies interested in collaborating with the College on the Swartklip Campus venture are encouraged to complete an Expression of Interest form, obtainable on the official College website. Resources for business: • https://www.westerncape.gov. za/apprenticeship-for-employers/ useful-information • https://www.westerncape.gov.za/news/ apprenticeships-important-tool-tacklingyouth-unemployment

CONTACT DETAILS Centre of Specialisation: +27 21 787 0800 Email: jacqui.layman@falsebay.org.za Centre of Entrepreneurship and Rapid Incubator: +27 21 201 1215 Email: info@falsebayincubate.co.za Website: www.falsebaycollege.co.za

45

WESTERN CAPE BUSINESS 2019


SPECIAL FEATURE

Tourism and events The Western Cape is world class in many categories.

T

en cities were nominated in 2018 for “World’s Leading Festival and Events Destination”. Listed together with Singapore, Dubai, London, Montreal, Sydney and the likes of Rio de Janeiro was Cape Town. Cape Town also won an African award for hosting the most international association meetings, based on 34 000 international delegates attending conferences in Cape Town in a calendar year. The ranking is awarded by the International Congress and Convention Association (ICCA). The Cape Town and Western Cape Convention Bureau, a Wesgro unit, promotes the province as a venue and assists with bids, planning support and WESTERN CAPE BUSINESS 2019

on-site services. Events, conferences and exhibitions help to create a year-round industry which in turn boosts employment. The Bureau helped secure 33 bids for the region in 2017/18 which had a projected impact of R453-million. The R900-million expansion of the Cape Town International Convention Centre (CTICC2) has given the city’s biggest venue additional volume and flexibility. The new section of the centre hosted its first conference in September 2017, the 21st Annual Congress of the South African Council of Shopping Centres (SACSC) at the same time as the CTICC was hosting another major conference. The Cape Town Stadium, built to host matches

46


SPECIAL FEATURE in the 2010 soccer World Cup, has become a multipurpose venue at the centre of the Green Point Park, a popular venue for families but also a site for film and advertising shoots. Discovery Sport awarded the HSCB World Rugby Sevens Series event in Cape Town the “best live event” in 2016. It has become routine for tickets for this fun event to be sold out within minutes and the pictures of happy fans in a packed stadium paint a good picture of South Africa and Cape Town for global television viewers.

Some Cape Town venues Cape Town Stadium: Several meeting and conference venues within the stadium are supplemented by the Stadium itself (with seating for 55 000), the adjacent Green Point Athletics Stadium and the Stadium Forecourt, which hosts the Bike Expo held before the Cape Town Cycle Tour. The stadium and the Green Point Park are popular venues with film producers and advertising film crews. Cape Town International Convention Centre (CTICC): The largest convention centre in Cape Town is a large part of the reason for the city’s prominence in the conference and events sector. Offering tremendous flexibility and range for conference and exhibition organisers, the CTICC includes in its portfolio 11 200m² of column-free space for expos and an auditorium with an orchestra pit that can seat 1 500 guests. The recent expansion (CTICC 2), has added 10 000m² of conference and exhibition space and a further 3 000m² of formal and informal meeting space.

PPC Newlands: One of the world’s great cricket stadiums is available for hire. Four venues of varying sizes include a recently renovated President’s Suite which could host anything from a formal dinner to a product launch. GrandWest Casino and Entertainment World: Venues range from intimate meeting rooms to the Grand Arena and other spaces that can host up to 7 000 people for large events. Century City Conference Centre: The largest of 20 venues can accommodate 1 900 people and outside events can be held in the Century City Square. The province has a range of excellent facilities for conferences outside the metropole. George has the five-star facilities of the Fancourt Hotel and Country Club (with banqueting capacity up to 250) and the Protea Hotel King George. Destiny Africa Investments Holdings has targeted George as the next centre for meetings, incentives, conferences and expos. The historic town of Stellenbosch and the nearby wine and golf estates have good conference facilities.

Success story Tourism has been a remarkable economic success story in the Western Cape. Premier Helen Zille’s 2018 State of the Province Address included the fact that the sector had grown 11% in the previous 12 months, adding R2-billion to the Gross Value Add of the province. Cape Town Air Access is a partnership between Wesgro, the City of Cape Town, the Western Cape Government, Airports Company South Africa, Cape

Economic impact of annual events in Cape Town Event Old Mutual Two Oceans Marathon Volvo Ocean Race Cape Town Cycle Tour* HSBC World Rugby Sevens Series Cape Town International Jazz Festival

Impact R224-million R500-million R500-million R700-million R700-million

* It is estimated that the three other big cycling events hosted by the Western Cape (the Absa Cape Epic, the Cape Rouleur and the UCI Mountain Bike World Cup) collectively contribute a further R500-million.

47

WESTERN CAPE BUSINESS 2019


SPECIAL FEATURE

Town Tourism and South African Tourism, and is the focal point for international air route development in the Western Cape. Zille paid tribute to the Air Access programme in her speech and noted that the new routes added in 2018 alone would create additional direct tourism spending of R620-million. The World Travel & Tourism Council (WTTC) forecasts growth above 6% per annum for Cape Town tourism over the next 10 years. It predicts that the city’s tourism industry will increase the number of tourism-related jobs from around 160 000 in 2016 to more than 230 000 by 2026. One of the reasons that tourists visit the Western Cape is the quality of its beaches. The province has 29 Blue Flag-accredited beaches, an international quality standard that covers 33 different measures. Ten beaches in greater Cape Town together with the likes of Santos (Mossel Bay), Grotto (Hermanus), Witsand (Hessequa) and Wilderness (Garden Route) have made the grade. A further five marinas have qualified for the programme, the local version of which is run by the Wildlife and Environment Society of South Africa. Several strategies are being adopted to further improve the province’s tourist offering and increase numbers. These include a service excellence programme where a town’s residents are encouraged to act as tourism ambassadors. A pilot project was successfully launched in Clanwilliam, where everyone in the town, including shop clerks and petrol station attendants, joined in. New cycling routes have been launched as part of the Cross Cape Cycle Route which links Plettenberg Bay with Stellenbosch via a number of charming WESTERN CAPE BUSINESS 2019

small towns. Further routes are planned to take the benefits of tourism to rural areas. Many towns and districts host annual festivals, such as the Prince Albert Olive Festival. The Leisure Marketing team at Wesgro supported 47 events in small towns in 2018. Work is being done on improving the system of visa approvals and on linking various sites associated with the late President Nelson Mandela. Halaal tourism also holds tremendous potential. The opening of the R500-million Zeitz Museum of Contemporary Art in the Victoria & Alfred Waterfront in Cape Town made a big impact in 2017. With a footfall of 24-million visitors going through the Waterfront every year, the Zeitz is well located to attract good crowds. It is expected to attract global art lovers as well. The conversion of the old grain silos which created 6 000m² of gallery space was paid for by the owners of the Waterfront, Growthpoint Properties and the Public Investment Corporation. The Waterfront has two new hotels, Radisson Red and the Silo Hotel attached to the Zeitz Museum. A significant move in the South African hotel sector is the decision by Marriott International to develop Marriott branded hotels in Johannesburg and Cape Town. The Port of Cape Town has launched its dedicated cruise-ship terminal, and the area between the terminal and the Cape Town International Convention Centre is being developed. The precinct, called the Yacht Club, includes a hotel, residential and commercial complex owned by the Amdec Group, and is linked to the Waterfront by canal. Another major development in the works will include two Marriott hotels. In the Cape Town CBD

48


SPECIAL FEATURE there are going to be 500 new rooms, courtesy of two Tsogo Sun hotels, plus a smaller hotel in the De Waterkant (Capital Mirage). Tsogo Sun already operates several hotels in greater Cape Town, including three full-service hotels in the city centre, the Cullinan, Southern Sun Waterfront and Southern Sun Cape Sun. The other seven hotels cover five brands in the Tsogo Sun stable. Elsewhere in the Western Cape, Tsogo Sun has hotels in Caledon, Beaufort West, Mossel Bay and Plettenberg Bay. Protea Hotels, now part of the Marriott Group, has 10 hotels in Cape Town and a further one each in Franschhoek and Stellenbosch. There are two hotels in George. Three of the brands of City Lodge Hotel Group are represented by seven hotels in the Western Cape, with all but one of the hotels (the George Town Lodge) being located in Cape Town. Hilton Hotels and Resorts has three Western Cape properties, two hotels in Cape Town and the Conrad Pezula Resort & Spa on the eastern head of the Knysna Heads. The newest global trend in tourism, Airbnb, has come to South Africa. Cape Town is the first African city to sign a collaboration agreement with Airbnb. A total of 394 000 visitors stayed in Airbnb accommodation in South Africa in 2016. Roughly 50% of the bed nights were taken up by foreigners. Another trend that is being explored is Halaal tourism, a global market that is expected to reach $300-billion by 2026. The Western Cape has upwards of 200 mosques and a cosmopolitan lifestyle that has seen various faiths co-exist for many years.

Airports Cape Town International Airport (CTIA) was Africa’s Leading Airport for the second year in a row in 2018. The award was presented by World Travel Awards Africa & India and earned CTIA a nomination for World’s Leading Airport. Through partnerships such as Western Cape Air Access the airport has gained 13 new routes and 18 route expansions since 2015. CTIA has shown sustained growth in passenger numbers with a 5.3% increase year-on-year in 2017. Growth in international passengers has been in double digits for the past few years. The airport exceeded an annual arrivals figure of 10-million for the first time in December 2016, which was improved on in 2017. A new, 3 500-metre runway will soon be built at CTIA, further increasing arrival numbers. The project involves the

49

The 2017 Domestic Tourism Survey (StatsSA) gave these statistics related to the Western Cape:

• • • • • • •

More than 1.1-million overnight leisure trips 166 000 overnight business trips 4.1-million paid bed nights 241 000 tourists stayed in hotels 161 000 stayed in guesthouses/ guest farms 157 000 tourists stayed in B&Bs 336 000 tourists stayed in selfcatering establishments.

realignment of the airport’s primary runway, as well as the construction of parallel and rapid exit taxiways. Approval for the project was granted in 2018 by the National Department of Environmental Affairs (DEA). George Airport was awarded Best Airport by Region in the African category of the Airport Service Quality (ASQ) Awards in 2018. This was for airports serving fewer than two-million passengers per year. In 2016 the airport became Africa’s first solarpowered airport. George Airport receives about 720 000 passengers annually. Airlink, SA Express and kulula fly are the airlines that fly into George. It serves as a tourism hub for the Southern Cape region, including destinations such as Knysna, Oudtshoorn and Plettenberg Bay. CemAir offers scheduled flights to Plettenberg Bay. WESTERN CAPE BUSINESS 2019


INTERVIEW

World first for Maritz Lighting theElectrical way to St George’s Park lighting quality is unique. new possibilities

What sort of work did you do in the beginnin Maritz Electrical is revolutionising stadium experiences.

Kurt Maritz, Managing Director

urt Maritz

BIOGRAPHY

When we started, we were two companies helping ea Rosslind and I had a loose partnership. I did the mark execution. We did some basic electrical contracting. A massive contract to install world-class lighting at the St George’s didinon stillCape have that relationshi Parkwork cricket we ground Portcontract, Elizabeth haswe given Town-based lighting company Maritz Electrical a head-start as a national leaderof Cape T later. It was for Technical Services of the City in LED and theatrics lighting for sports stadiums. electrical side of andDirector sanitation. As company founder andwater Managing Kurt Maritz says,

“That’s the sort of project that comes around once in a lifetime.” The project was a global first because it made St George’s the So you found a niche? first stadium to have LED lights fitted with theatrics that was also compliant with International Council standards. We actively startedCricket looking for things that other elec The R27-million project was completed on time and on budget, either can’t do, don’t want to do or find really hard despite installing lights on top of the Duckpond Pavilion at night. The beenvery enthusiastic. For but Kurt, we the television forresponse the cityhaswas difficult, had those skills experts provided the really important feedback. “We cared about work, the which very few specialised in. Certainl SuperSport most and they havepeople been raving. If there are light and black dark spots on the field doing the cameraman mustofremember companies that sort work. to change the aperture. They said that the lighting was excellent.” Maritz Electrical wants to be the “go-to” company with respect And beyond the work forin the city? and to stadium lighting installations. Contracts Bloemfontein closer to home suggest this is already happening. “I am pleased We got more and more work and in 2004 we regist to announce we are going to be doing something similar in our continued operating two businesses and that ran o backyard, at Coetzenburg, but not including theatrics. Stellenbosch University has signed with us as part of a massive project.”

Kurt Maritz holds a National Diploma in Accountancy and Computer Practice, but is more accustomed to developing businesses, as his track record proves. His first job was years ago, when we very amicably parted ways. with First National Bank. While working in sales, Kurt met an electrical supplier a for National whom he How did the stadium work come about? urt Maritz holds went to work. His contracting Maritz Electrical is active in large areas such as Cape Town’s Grand Weairport asked, “What is nobody elseThedoing?” plomasection in Accountancy runway lightingelse and city council facilities. company The answ grew, and he decidedand to Parade, operates in the commercial, industrial and public sectors and offers go on his own and started MarI had the p omputer Practise, but is and sports field lighting and maintenance. itz Electrical in 2000. Through a wide range of services. ore accustomed to and developtheMaritz oldElectrical Greenis Point Stadium. Sports field ligh his leadership skills visionAing new on area for reticulation and electrification: ary outlook, he now employs in low-cost housing projects, street lights, road-side furniture and g businesses, as his track re- most dynamic part of the business. excess of 150 staff. The com- mini-substations. Says Kurt, “It is a big market and we can’t ignore ord proves. firstsmall jobbusiwas it. Our new sales manager comes from this background and we are pany hasHis benefited So skills thein2010 Soccer World Cup good for grown skills and given this area. We are involved in two majorwas projects ith Firstnesses, National Bank. While building lifestyle improvements to staff, in the Western Cape, at Overstrand and Stellenbosch.” Interestingly, Maritz did do one theinFIFA stad orking their in families sales,andKurt met an With communities. an expanding workload, Maritznot Electrical made of a move

BIOGRAPHY

ectrical supplier for whom he 2019 ent to WESTERN work. CAPE HisBUSINESS contracting ection grew, and he decided to o on his own and started Maritz

Western Cape projects

still one of our busiest periods ever because FIFA c Fund to50build hundreds of community sports fields, a we got involved.


INTERVIEW 2018 to new premises in Athlone. “We have moved 150 staff from three branches into one customised 3 000-square-metre facility. It is designed in such a way that we have enough space for 50% expansion. Half of the massive space we dry-walled so that we have a suite of offices.” There are no specific targets, but Kurt is clearly looking forward with anticipation: “We don’t have any ceiling we want to hit. Our engine is our sales department. As much work as they bring in, that’s how we will grow.” The staff of Maritz Electrical includes three Master Electricians and 75% of the staff complement is technical.

Learning process For Kurt, the learning process has been exciting. “We are learning applications from our clients,” he says. “At St George’s for that exciting time when you are waiting for an umpire’s decision, we did a heartbeat with sound and the lights that go with it. We also put a ‘6’ in the lights. The umpires asked if we could keep the light level on the pitch the same and do the theatrics at the same time. The possibilities are endless. In athletics, for the 100 metres, you could kill all the lights and follow the guys down the straight.” Maritz Electrical is the approved installer of Musco Lighting. A visit to Musco headquarters in the US made Kurt aware of how the lighting system at a stadium can create new revenue sources for clients. As Kurt comments, “If you have a light show before the game, you have better crowd control and there is an

51

opportunity for vendors to sell memorabilia or food. The same when you leave, it creates a new revenue stream. We are learning as we move along.” Stadium lighting f alls within the broader category of large-area lighting. The global move to LED lighting has been a positive thing for Maritz Electrical. In South Africa, however, Kurt notes that there is difference between the indoor and outdoor scenarios. For indoors, “everybody is going that route” but that return on investment (ROI) is somewhat different in the outdoor setting. “With street lighting and security lights (which burn for a long time) the ROI is good. For large areas like sewerage works or plants the ROI is something like three to five years and the power saving is there. That is not the case with sport stadiums, so the equation is different.”

WESTERN CAPE BUSINESS 2019


FOCUS

CTICC on an international bid winning streak

T

he CTICC has been awarded 15 international conferences, in the last six months alone. Many of these will be hosted on the African continent for the first time. “We are extremely proud to have won these bids which are testament to the CTICC’s competitiveness as a venue and Cape Town’s attractiveness as a business event destination. These wins do not happen without the concerted effort of the CTICC team and the dedicated collaboration between internal and external stakeholders, including the Western Cape Convention Bureau and City of Cape Town,” says JulieMay Ellingson, Chief Executive Officer of the CTICC. Here is a list of international bids awarded to the CTICC which is still to take place: • The Association of International Schools in Africa Conference 2019 (AISA) will be held in November 2019 and attended by 300 delegates. • T ​ he International Council on Systems Engineering 2020 (INCOSE) will be held in Africa for the first time in July 2020, hosting about 800 delegates. • The International Federation of Surveyors (FIG) 2022 will bring 2 000 specialists to the CTICC. • ​The World Congress of the International Health Economics Association (IHEA) will be held in Africa for the first time in July 2021, and will bring together 800 health professionals. • ​The Congress of the International Association of Paediatric Dentistry (IAPD) is another event taking place in Africa for the first time. 1 000 delegates will attend in June 2023. • ​ The HIV Research for Prevention Conference (HIVR4P) for 1 400 delegates is scheduled for October 2020 and is the only global scientific conference focused exclusively on the field of biomedical HIV prevention research. • The 3rd Ministerial Conference of the Partnership for Action on Green Economy (PAGE) will come to Cape Town in January 2019, and will bring together 550 delegates from the United Nations’ five agencies to assist countries in achieving and monitoring the WESTERN CAPE BUSINESS 2019

emerging Sustainable Development Goals. I​n another first for Africa, the CTICC was awarded the bid to host the World Federation of Paediatric Intensive and Critical Care Societies (WFPICCS) where 1 500 delegates will share their expertise to improve the outcomes of children suffering from life-threatening illness and injury. ​The World Self Medication Industry 2020 (WSMI) will be held for the first time on the African continent in 2020 and will bring 400 delegates. ​In August 2024, the CTICC will host the General Assembly of the International Astronomical Union (IAU). The event, another first to be hosted in Africa, will bring together 2 500 delegates who are experts in the field of astronomy. In 2024, the World Congress of the International Hepato Pancreato Biliary Association (IHPBA) will be hosted at the CTICC in September and will see 2 400 delegates attending. In 2020, the CTICC will host the Asian Racing Conference (ARC) 2020. The event will look at, among other things, promoting and facilitating the internationalisation of racing and will bring an estimated 600 people to the CTICC. ​T he General Assembly of the International Organization for Standardization (ISO) will take place in September 2019, with 800 delegates attending. ISO is an independent, nongovernmental organisation with a membership of 162 national standards bodies.

Having been awarded these prestigious international events, the CTICC has already hosted two of the 15 events that will take place at the centre. The 800-delegate International Congress of Linguistics 2018 and the 500-delegate ICAO Global Aviation Gender Summit. The CTICC’s world-class, high-tech facilities, flexible venues and high levels of service delivery are making a growing impact on international conference organisers. Cape Town and the location within the city are strong drawcards too.

52


World-class onsite delivery, in a world-class facility in one of the world’s most beautiful settings. Alex Grose

Managing Director Investing in African Mining Indaba

Nestling in the shadow of the majestic Table Mountain, and overlooking the spectacular Atlantic Ocean, the CTICC is a magical place where the imagined becomes real, visions turn into strategies, consumers become customers, and strangers from across the globe become colleagues, partners and friends. So much more than a multi-purpose event destination, this African icon combines expansive venues, impeccable service, cutting-edge technology and the finest global cuisine, to transform your convention, conference, exhibition, banquet or meeting into an extraordinary experience. For more information, or to book your event at the CTICC, call +27 21 410 5000, email sales@cticc.co.za or visit www.cticc.co.za.


SPECIAL FEATURE

Powering the province The Western Cape is moving away from fossil fuels.

T

he City of Cape Town has set a target of generating 20% of its electricity from renewable energy and it is going to court to try to make sure that this happens. The first medium-term budget policy statement of new Finance Minister Tito Mboweni in October 2018 was mostly designed to calm the markets after a tumultuous time in the political sphere. As a well-respected former Reserve Bank governor, Mboweni was almost universally welcomed as a steady hand on the country’s finances. What he said about electricity was significant. Mboweni said, “Restructuring of the electricity sector is underway. This must include a long-term plan to restructure Eskom and deal with its debt obligations.” Mboweni’s predecessor, Nhlanhla Nene, had previously said that the restructuring of Eskom was “top of the agenda”. Eskom runs electricity generation, transmission and distribution and it is a monopoly. Mboweni’s statement opens up the possibility that a longstalled plan to divide up these functions could eventually take place. In 2013 a parliamentary WESTERN CAPE BUSINESS 2019

bill called the Independent System and Market Operator (ISMO) was passed but allowed to lapse in the same year. Unreliable and expensive power is a massive constraint on business, and provincial and city governments in the Western Cape are champing at the bit to be allowed more freedom to participate in the sector. When South Africa ran out of power in 2008, a programme to get private investors to build renewable energy capacity was introduced, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Between November 2011 and July 2016, South Africa received commitments of investments to the value of nearly R200-billion through this programme. It had by May 2016 delivered the promise of 6 377 megawatts (MW) with an investment value of R250-billion and many of the projects are already delivering electricity to South Africa’s grid. Figures released by the South African Wind Energy Association (SAWEA) showed shareholding

54


SPECIAL FEATURE for local communities reached an estimated net income of R29.2-billion over the lifespan of the projects. But at that point, Eskom said that it would not buy power from independent producers. Only when President Zuma was replaced by President Ramaphosa did the programme get back on track. In April 2018, newly appointed Energy Minister Jeff Rabebe restarted the REIPPPP when he signed off on projects totalling R56-billion that will add 2 300MW to the national grid. Most of South Africa’s electricity comes from coal and Eskom is building two huge coal-fired power stations. Shortly thereafter, a new Integrated Resources Plan was released. This was a major event because the first Integrated Resource Plan (IRP) was printed in 2010 and was supposed to be updated regularly to guide the nation’s approach to electricity. Instead, the release of updated IRPs was delayed to the detriment of proper planning. In that uncertain environment, there was a strong push for expensive nuclear options. The release of IRP 2018 brings certainty to the market. Nuclear will not be considered again until at least 2030. The South Africa Photovoltaic Industry Association (SAPVIA) welcomed what it calls the “rational” draft plan.

Provincial and city plans The potential of renewable energy is being realised and there is a strong lobby to build a gas-to-energy plant in the province. In September 2018 the City of Cape Town launched a resilience assessment, the first step in a larger process. The Rockefeller Foundation chose the city in 2016 as one of 100 around the world in which programmes would be tested to improve the ability of the city to withstand shocks such as severe droughts. The city wants to expand the lessons it learnt in the period of water shortage into other areas such as energy generation and energy efficiency. Former MP Gareth Morgan is Cape Town’s Director of Resilience.

55

The Western Cape Provincial Government is also investing in resilience. A market intelligence report covering energy, renewable energy, water and waste was created by GreenCape to map the assets and challenges in these areas. In addition to trying to attract green investment into the province, the province is working for improved regulations related to small-scale embedded generation (SSEG). The idea of home-owners being able to sell surplus electricity from rooftop solar systems had been restricted to the Cape metropolitan area until 2015. The application of the provincial government’s Energy Security Game Changer has expanded (via bylaws) to the whole province. There are 19 municipalities where rooftop solar PVs are connected to the electricity grid, 13 of which have nationally approved tariffs in place. Users in the 13 areas can be paid for the power they supply, provided the facility has a capacity of 1MW or less. A total of 47MW in rooftop solar PV is currently installed in the province. Two further processes are underway. The City of Cape Town would like to buy electricity from independent producers as part of the REIPPPP process. At the moment, the sole buyer is Eskom. The city hopes that its court case to establish or deny this right will be heard early in 2019. Finally, the City of Cape Town wants to be able to rent out its infrastructure to a power producer who can supply a user via that infrastructure. This is known as “wheeling”. A start was made with the Darling wind farm, but more work needs to be done on the legislative framework. Much of this work is being done by a unit called the WESTERN CAPE BUSINESS 2019


SPECIAL FEATURE

A shopping mall in Cedarberg will be powered by a Tesla battery.

Sustainability Energy Markets within the Energy Directorate. Another area of focus for this group is to investigate energy use by low-income households. The Western Cape is lobbying hard for the National Department of Energy to allow Saldanha Bay to be a site for a gas-to-power plant. The site has existing bulk power consumers like ArcelorMittal Steel. If a gas plant is built at Saldanha, then it could be a catalyst for the use of gas in many other sectors such as manufacturing and residential. The Cape Peninsula University of Technology’s Energy Institute is a leader in research in the field of electricity, and is also responsible for a regional publication relating to domestic use, DUE. The South African Renewable Technology Centre (SARETEC) on the Bellville campus of CPUT offers courses such as Wind Turbine Service Technician and Solar Photovoltaic Service Technician and various short courses such as Bolting Joint Technology. The Centre for Renewable and Sustainable Energy Studies is at the University of Stellenbosch and the University of Cape Town has the Energy Research Centre. The University of the Western Cape is doing research on the possibilities of hydrogen as an energy source.

Energy news •

Construction was due to begin in 2018 on Perdekraal East Wind Farm in the Witzenberg

WESTERN CAPE BUSINESS 2019

56

Local Municipality. Located on 3 055ha, the facility’s 48 turbines will produce 110MW and make it the biggest wind farm in the Western Cape. Investors include Mainstream Renewable Power, African Rainbow Energy and Power (AREP), Lekela Power and HI Holdings. George Municipality will reduce the electricity consumption of its streetlights by 50% by fitting Light Emitting Diode (LED) streetlights. The twoyear project has received grant funding from the Department of Energy (DoE) and will be carried out by the municipality with Clinkscales Maughan-Brown Consulting Engineers. A shopping mall has been made possible in a rural town because of innovative battery technology. Sola Future Energy is installing a 696kWh Tesla battery that will store energy from 2 580 solar panels which in turn will make it possible to run the Cedar Mill Mall in Cedarberg. The lithium-ion battery costs as much (R8-million) as the solar panels but developer Noble Property Fund believes that the development would not have been possible without the technology. Sola Future Energy also installed a micro-grid system on Robben Island, which previously relied heavily on a diesel generator. Enel Green Power has ordered the biggest wind turbines to be used in South Africa so far from Vestas Turbines. The hubs of the turbines to be placed at Soetwater and Karusa will be 82 metres above the ground.


PROFILE

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

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

Our values About us

• •

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

• • • • •

Company Slogan

Human dignity Integrity Quality Pro-trademark resolution Innovation Transparency Individualism

CONTACT INFO Physical address: Joubert Street, Worcester 6850 Postal address: PO Box 1322, Worcester 6849 Western Cape, South Africa Tel: +27 23 342 1212 Fax: 086 515 5777 Website: www.abc.co.za Willem van der Merwe, General Manager: 072 244 7737 Calie Rabie, Western Cape Production: 072 602 4543 Fanie Fourie, Eastern Cape Production: 073 402 0655 Riaan Carstens, Bandit Agency: 079 874 8624 Quintis Wiid, Parts and Workshop: 066 475 7039

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

57

WESTERN CAPE BUSINESS 2019


FOCUS •

Africa Biomass Company services and products

Contracting • • • • • • •

Loggers to handle the timber rapidly and effectively Well-trained teams of chainsaw operators.

Mulch and biofuel sales

Orchard Windbreak recycling River rehabilitation Recycling of waste wood Tree (orchard) replanting (Eastern Cape) Mulch spreading Land clearing and land preparation (Môreson)

Woodchip according to specification, collected in mass trailers or in bags and transported to end user, where it can be used as woochip mulch or biofuel. Wood chips best practice

Woodchip mulch and biomass sales • • • • • •

Bandit agency (Southern Africa) Dezzi equipment (Western Cape) Workshop and field services Part sales Manufacturing Training facilities

Orchard and windbreak recycling

It is excellent practice to apply compost and mulch in existing, as well as newly established orchards. The best results are obtained by spreading compost in the orchards or vineyards before covering it with mulch. Wood chips can also be used as a base to produce compost. You can buy or rent these unique, patented, designed mulch spreaders from ABC.

With the use of excavators with specialised attachments and three-wheel loggers, old orchards can be removed from root to top and fed into a horizontal grinder. The horizontal grinder processes the waste wood according to specifications discussed and agreed upon with the landowner or project manager. Processing of waste wood into a viable product, that if applied correctly, could have a 30% increase in water conservation as well as many other advantages.

Massive water savings In 2017 Africa Biomass Company was involved in many projects such as the removal of invasive eucalyptus trees in the Breede River and Berg River systems. The removal and recycling of these alien trees, old or unwanted orchards, vineyards or windbreaks can be used as mulch which are spread in new and old orchards and vineyards. This has led to a massive water saving equal to the water usage of 50 000 households for one year.

Land clearing services

Workshop and field services

Africa Biomass Company is an expert at land clearing. We have an extensive range of highly specialised wood recycling machinery that will do the job quickly and efficiently. • Tree shears which cut and stack trees of up to 550mm in diameter WESTERN CAPE BUSINESS 2019

With an intimate understanding of the operational challenges of wood recycling in South Africa, we established state-of-the-art facilities to service, repair and rebuild wood chipping equipment of any make and size.

58


FOCUS This facility is manned by a remarkable team of experienced and suitably qualified engineers, technicians and artisans. An equally remarkable team of field service technicians delivers repairs, maintenance and spares to your site to optimise uptime and efficiency.

Interesting facts about ABC • • • •

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

• • •

50 000 households’ worth of water saved in 2017 2017 Overall winner Entrepreneur of the Year Award Since 2004, servicing the biomass industry Approximately 2 500 line-items in total available stock Only SETA-certified wood chipper training facility. 20 teams all over South Africa Sole Bandit dealer in Africa.

to clients who want to invest in the Bandit range. We are privileged to serve our customers as the authorised dealer for Bandit Industries in Southern Africa. Bandit chippers are designed with quality, production and longevity in mind. Hand-fed chippers are mounted on custom-built, SABSapproved trailers. Owning a Bandit wood chipper will always put you in the front seat of reliable wood chipping operations. In many cases, the Bandit wood chipper sets the benchmark for other brands in the wood chipping industry. We are ready to supply the right Bandit wood chipping solution with advice and aftercare to your doorstep. All existing and new customers are welcome to contact us to become the owner of Bandit equipment.

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

Become an owner of a Bandit chipper

Bandit Industries, Inc

All existing and new customers are welcome to contact us if they want to become the owner of the top-class range of Bandit equipment. Bandit Industries have delivered successful recycling solutions to basically every corner of the planet. A commitment to support Africa Biomass Company is fully equipped and stocked to service and repair any Bandit machine anywhere in South Africa. We own a fully-equipped parts warehouse (650m²), manufacturing department as well as field services to ensure that parts are always readily available and our own, as well as our clients’ Bandit wood chippers are not out of commission longer than they have to be.

Not only has Africa Biomass Company built up a substantial fleet of Bandit wood chippers for their own use as part of our wood recycling services we provide, but also offers a whole range of Bandit wood chippers

59

WESTERN CAPE BUSINESS 2019


PROFILE

Superfecta Trading Electro-mechanical specialists. and transparency; three prominent features that distinguish us in the marketplace and uphold our vision.

Our Mission To enable our clients to ensure reliable energy supply through costeffective and quality manufacturing, supply, installation and maintenance of infrastructure. Superfecta strives to deliver the best solutions which are achieved with strong partnerships and joint ventures with local and international entities that share our values and objectives. We have a full complement of highly uperfecta Trading is an electro-mechanical engineering skilled engineers, technical and company with a national footprint and a record of successful administrative staff. All efforts are delivery of projects in all nine provinces. The company was geared towards compliance with founded in 2002 and has extensive experience in medium- health and safety standards. and high-voltage products and related services. In 2018, after 16 years of trading as a close corporation with the Registration Number: 2002/024381/23, Superfecta Trading 209 (Pty) Ltd was founded with Superfecta works in a variety of its new Registration Number: 2018/231813/07. sectors, including but not limited to: Superfecta manufactures high-tension products under the TMA • mining Dynamics brand and related services. TMA Dynamics products • provincial and local government include transformers, mini-substations and switchgear. Superfecta • utilities also employs a team of mechanical experts. The company prides itself • transport on the supply, installation and maintenance of mechanical work and • oil and gas. boasts over 14 years of experience in the mechanical field. Superfecta has strategically partnered with three internationally recognised companies: Thomas C. Wilson (New York), Schneider Electric Superfecta is a one-stop shop for (South Africa) and Jinshanmen Electrical Co. (China). The partnerships all transformer and transformerhave enhanced our performance and enabled us to be the providers related work and we pride ourselves of the latest technology. on delivering a comprehensive and complete service, including the supply of transformers for: 100% black-owned registered company, with 55% of the shares owned • The mining industry by women. • Dry-type mining • Distribution transformers • Power transformers. To be the leading electro-mechanical specialist in energy solutions All our transformers are SABS and across Southern Africa. Superfecta aspires to excellence, innovation IEC compliant and operate at

S

Sectors

Professional Services

Ownership Status Our Vision

WESTERN CAPE BUSINESS 2019

60


PROFILE higher efficiencies than any other on the market. Our turnaround time is less than 60 days, which is a market-beater. What gives Super fec ta a competitive edge in the industry is investment in the latest systems and technologies. The company invested millions of rands in an integrated maintenance software called Archibus. Our maintenance system goes above and beyond the management of the maintenance process and asset control by recognising that these processes are just a small part of a full life cycle. The intellectual capability of the system enables us to ensure that our customers are well taken care of by indicating when the following maintenance schedules should take place. We also provide our clients with 24/7/365 support. Transformer oils undergo electrical stresses while the transformer is in operation. This, combined with the contamination caused by the chemical interactions with windings and other solid insulations, gradually render it ineffective. Regular purification is paramount. We periodically test for electrical and chemical properties to make sure that the oil is suitable for further use and provide the purification services needed to extend the life of your transformer oil. This can be done online or offline. Superfecta has played a significant role in the economic development of South Africa, not only through employment, but also through infrastructure development both in rural and urban areas. We pride ourselves on having installed electricity in over 500 households in rural parts of South Africa. The company has not only done an outstanding job but raised the bar in successfully electrifying villages in the geographically challenging landscape of KwaZulu-Natal. With a professional team of mechanical technologists, Superfecta prides itself on the supply, installation and maintenance of mechanical work. Our services include, but are not limited to: • Supply and installation of heat exchangers tubes, boiler tubes, steam pipes and primary air heater

CONTACT INFO Physical address: 23 Catalunya Raceway Industrial Park, Gosforth Park, Germiston, Johannesburg 1419 Telephone: +27 11 869 3607 Fax: +27 11 825 0086 Email: info@superfectatrading.co.za Website: www.superfectatrading.co.za

61

• Supply and replacement of pipe works (ash, sluice lines, etc)

• Replacement and new installation of steel pipe works

• Supply and installation of pumps

• Supply and hire of tube-testing

machine, tube cleaners, vacuum leak dictator, tube cutters, expanding machine • Mechanical engineering (pipe fitting and rigging) • Steel pipe jacking and fitting, supply and install concrete jacks, jacks under roads and gas lines.

All industrial concerns require a complex system of electrical networks to function efficiently and successfully. Superfecta both installs and conducts repairs to high-tension electrical circuits. We also oversee electrical reticulation (urban and rural), electricity meters (prepaid and smart meters) and electricity works.

Clients Superfecta is an ISO 9001:2008 certified company that fully embraces a Total Qualit y Management philosophy in streamlining all its business processes. Clients include Rand Water, FNB, MTN, Airports Company South Africa, Total, Transnet, Passenger Rail Agency of South Africa and Eskom. Superfecta has done work for the public works departments of three provinces, the City of Johannesburg and several other municipalities. WESTERN CAPE BUSINESS 2019


ADVERTORIAL

Nedbank’s innovation journey takes clients into the 21st century Dr Fayzel Omar, Nedbank Provincial General Manager of the Western Cape, is confident his PhD in Business Administration will empower him with the knowledge he requires to keep abreast of the latest developments in the banking industry.

Banking cluster has 90 business managers located across the province who specialise in commercial industries and the agricultural sector. ‘At Nedbank Business Banking we believe you need a financial partner that not only understands your circumstances and aspirations, but which also provides you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate on what’s most important to you – running your business,’ says Omar.

Omar is passionate about his vision for Western Cape business owners and entrepreneurs who seek a unique banking experience, and he explains how Nedbank will support and grow businesses and retail clients in the Western Cape. In view of the vast geography of the province his teams are spread across eight regions. Each region is led by a skilled regional manager, who is supported by teams and product specialists across the integrated business channels of business banking, small-business services and retail banking. Nedbank’s decentralised Business

Since 2012 Nedbank has launched several first-to-market innovations, such as the awardwinning Nedbank App Suite™, the home loan online digital channel and Market Edge™, as well as the branch of the future concept in communities locally and nationally. 'Working with communities is entrenched in our values through community development, skills development, education and job creation, as well as environmental conservation. 'These play a vital role in building a sustainable economy and vibrant society. We believe our fast-growing presence in communities goes a long way in enabling greater financial inclusion while contributing towards economic growth,' says Omar.


ADVERTORIAL

To take your business to the next level or to obtain more information about Nedbank’s specialised service offering please call the Business Banking team on +27 (0)21 412 3000 or visit www.nedbank.co.za.

And the innovation journey that ensures greater value for clients just goes on. On 2 November 2017 the bank launched the Nedbank Money app, which allows clients to manage accounts, make payments and change their credit or debit card settings from their smartphone. Nedbank Money allows clients to make instant payments to anyone on their smartphone’s contact list, regardless of whether the recipient is a Nedbank client. Nedbank has also launched a new payments app – Karri – to simplify school payments to help teachers, parents and children. Karri uses a builtfor-purpose mobile payment application to make payments to schools for events such as civvies days easy and secure. In November 2016 Nedbank launched an interactive ATM – a first for Africa – giving clients access to live teller services by video, at any time, right from the machine. ‘This ATM also responds to the growing trend and need for business and individual clients to make large deposits and withdrawals at unconventional business hours.’ These are just more ways in which Nedbank continues to simplify banking and make it work for the good of businesses and communities.

‘AT NEDBANK BUSINESS BANKING WE BELIEVE YOU NEED A FINANCIAL PARTNER THAT NOT ONLY UNDERSTANDS YOUR CIRCUMSTANCES AND ASPIRATIONS, BUT WHICH ALSO PROVIDES YOU WITH RELEVANT SOLUTIONS AND A BANKING EXPERIENCE THAT IS HASSLEFREE. THIS ALLOWS YOU TO CONCENTRATE ON WHAT’S MOST IMPORTANT TO YOU – RUNNING YOUR BUSINESS.’

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


ADVERTORIAL

See money differently with Whole-view Business Banking™ Gerrit Henning, Nedbank Regional Manager of Retail and Business Banking: Northern Suburbs, explains how Nedbank works with communities to deliver banking solutions.

Henning has five years’ experience in the auditing and accounting profession and eight years’ experience with international companies. He has fulfilled various leadership roles in Nedbank, with 14 years as regional head of Business Banking. Henning is supported by two area offices, with 18 skilled business managers ready to take your business to the next level.

Nedbank continues to build on its clientcentred strategy aimed at delivering distinctive experiences and channels of choice for businesses in the region. This has seen the bank simplify and enhance its product offering in line with its valuebanking philosophy based on simplicity, transparency and affordability. Innovation and technological advancements, as well as training and development of staff, have been key pillars in achieving the bank’s objectives. At the core of Nedbank’s offering in the Western Cape is a relationship-based model, with a business manager dedicated to your business as the key entry point into the bank.

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


ADVERTORIAL

Using our money expertise to help clients Andre Fourie, Nedbank Regional Manager of Retail and Business Banking: Weskus and Swartland, explains how new brand values built on the bank’s expertise can benefit Nedbank clients.

He also manages 14 retail branches across his region, providing clients with unique financial solutions. ‘It forms part of our purpose at Nedbank to use our financial expertise to do good for individuals, families, businesses and society,’ says Fourie. Nedbank’s goal to have all service offerings and business and consumer products managed under one regional structure makes it easier to deliver on its new brand proposition to see money differently.

Fourie’s team operates from regional offices in Breda Street in Paarl, as well as from representative offices in Vredendal, Vredenburg and Malmesbury. He says the team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. His team is also supported by skilled agricultural specialists, who provide specialised advisory services to clients.

To take your business to the next level or to obtain more information about Nedbank’s specialised service offering call Andre Fourie on +27 (0)21 928 2000, send an email to AndreFou@nedbank.co.za or visit www.nedbank.co.za.

Fourie has been with Nedbank for 20 years and has worked in a number of roles, including strategic sales, structured lending and credit.

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


ADVERTORIAL

One-stop banking services from Nedbank Cape Central Karen Seboa, Nedbank Regional Manager of Retail and Business Banking: Cape Central, shares how partnerships can benefit Nedbank clients.

the needs of clients, saying that partnershipand relationship-based banking are key drivers of how Nedbank conducts business to ensure clients benefit from its money expertise. ‘It forms part of our purpose at Nedbank to use our financial expertise to do good for individuals, families, businesses and society,’ says Seboa.

Seboa’s team operates from its regional office at The Clock Tower in the V&A Waterfront and is ready to assist clients with professional advice, industry-specific solutions – including for the medical profession – and a comprehensive range of financial products and services for businesses and individuals in the Western Cape. Seboa has been with Nedbank for 20 years and has worked in a number of roles, including as area manager for the retail branch network and in Retail Relationship Banking. She prides herself on building relationships and understanding

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


ADVERTORIAL

Relationships and understanding client needs are key, says expert Naziem Esack, Regional Manager of Retail and Business Banking: Winelands, explains how new brand values built on the bank’s expertise can benefit Nedbank clients.

He heads a team of retail and business banking experts with the aim of providing clients with unique business and financial solutions. ‘At Nedbank Retail and Business Banking we believe you need a financial partner who has a deeper understanding of your business – someone who offers innovative, relevant solutions and who gives you a banking experience that is hassle-free. As money experts, we are committed to doing good, so you can concentrate on what’s most important to you – running your business,’ says Esack.

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

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

Esack, as a skilled banker, has been with Nedbank for five years and has worked in a number of roles in his 35-year career in the banking industry. He was the area manager of Nedbank Business Banking in Helderberg and Stellenbosch before he started in his current role.

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).


Adam Rabie, Executive Head of Enterprise Business, Western Region

Internet of Things

Vodacom Business is a leading telecommunication operator progressing rapidly in our digital transformation journey in terms of strategies and our value propositions to enterprise customers. Shaping a better future in the smart technology era as we embrace the Fourth Industrial Revolution, Digitisation!! Herewith a snapshot of some of our key and exciting offerings, positioning enterprise customers for the smart technology era and being competitive.

Creating a smarter connected world

The Internet of Things (IoT) is big news, and it’s all around us right now. Whether it’s the smart meter at your home driving down your utility bills, or the connected car making your journeys more convenient, many of us already benefit from IoT in our daily lives – and we’re only just beginning to understand its full potential.

Making it happen

Our scale doesn’t just give you the confidence that we operate wherever you do business – it means we can offer the exceptional levels of service you need.

The five key elements of any IoT deployment are: • Connected devices sense their environment • Network connectivity carries IoT data • The management platform aggregates data and controls devices • Applications use IoT data in business processes • Professional services keep everything running smoothly

3. The solutions to simplify IoT projects We have delivered IoT applications to organisations of all sizes and across all industries, so we know how to make your IoT solution deliver maximum value to you.

We partner with the world’s leading connected device makers to offer a wide range of out-of-the-box IoT solutions that take the complexity out of IoT deployment.

Why Vodacom? IoT projects can be challenging. At Vodacom, we aim to make iteasy. Here are three simple reasons why you should partner with us:

But even when you need a customised solution, our team of experts will ensure your business takes advantage of best practices and methodologies for IoT implementation to ensure you achieve maximum ROI.

1. Unrivalled IoT experience Vodacom has more than 1 400 dedicated IoT experts that you can rely on. We’ve been delivering IoT solutions to our customers for more than 25 years and have over 50-million IoT connections.

To find out more about how Vodacom can help you make the most out of IoT, or to book a free innovation session with one of our IoT experts, contact us at iot@vodacom.co.za, call us on 082 1960 or visit vodacom.co.za/iot

2. Vodafone networks you can rely on Vodacom has mobile operations in 26 countries, partners with mobile networks in 55 more, and fixed broadband operations in 17 markets. As of June 2016, Vodafone had 465-million mobile customers and 13.7-million fixed broadband customers. WESTERN CAPE BUSINESS 2019 2018

68


FOCUS Enterprise Mobility

Enterprise Mobility

Enterprise Mobility is a productivity tool which allows a business to operate more efficiently. Enterprise Mobility has five components:

Services include customised, daily checklists, task management, real-time chat and messaging, route optimisation, tracking user activity and check-in/ out via geo-tagging.

Vodacom Virtual CIO Vodacom Virtual CIO is an IT support service aimed at the Small and Medium Enterprise (SME) segment. This is targeted at those companies that can’t afford a full-time IT technician. The service will initially be limited to the following geographical areas: Greater Johannesburg metropolitan, Greater Pretoria metropolitan, Greater Cape Town metropolitan, Bloemfontein, Durban, East London, Kimberley, Nelspruit, Polokwane and Port Elizabeth.

Mobile LiveTrack LiveTrack is a GSM/GPS tracking solution that allows businesses to track their vehicles in real time.

Econz Wireless Timecard Solutions When companies have employees who are always on the move or in the field, it’s difficult to track the time they start, when they finish, whether they are in the right place, and if the job has been completed to the customer’s satisfaction.

The service offers proactive and remote monitoring services for both residential and SME customers to prevent IT issues before they occur, and remote telephonic assistance and on-site field support for SME customers at no additional cost.

Econz Wireless allows you to keep track of where and how your employees are spending their time, export your employees’ attendance data directly to payroll systems for easy accounting, track progress of various tasks assigned to your employees and monitor your employees’ driving behaviour. It is available for use on cellphones, smartphones and tablets.

Mobile Order Entry This is Vodacom’s solution to bring the benefits of electronic commerce to very small retail outlets, many of them informal traders such as spaza shops. This service extends the Electronic Data Interchange (EDI) transaction capability to the informal retailer, digitises the commerce chain and drives brand awareness. In addition, Mobile Order Entry assists in the management of product and price information, the distribution channel and ordering. The traders’ time is better used.

Vodacom Field Communication Managing a team out in the field can be challenging due to delays in exchanging information with the central office hub. Vodacom Field Communication is a custom-built application that allows handson management of data from a distance with the receiving of immediate updated information on smart devices.

69

WESTERN CAPE BUSINESS 2019


Connect and Communicate

Connect and communicate

Two of the most important pillars of the Vodacom Small andBusiness Medium Ready offering are

Enterprise Catalogue • CONNECT: A Ready Vodacom

Business is connected

• COMMUNICATE: A

Power to you

Ready Business places communication at the centre

The CONNECT component has three main elements:

• Internet for your Office • Five kinds of connec-

tion are offered, from fibre and wireless, to satellite and digital subscriber. • Internet on the Move • Vodacom Business Data gives you the freedom to be more productive without the worry of out-of-bundle data rates. • Mobile Broadband Data allows you to stay connected with data bundles for your tablet, router or dongle.

Under COMMUNICATE, Vodacom strives to assist in the creation of a Ready Business through:

• Three kinds of business plans • Never miss a business call • One Net Express allows a response to every

call, whether you’re in the office or on the move. • Vodacom One Net Business is a cloud-based solution seamlessly converging your mobile and fixed telephony services across any device. • VoIP (Talk) provides high-quality voice calls to any fixed and mobile network. • Push to Talk uses a mobile app to provide similar services as a two-way radio. • Roaming and international offers

Network Solutions Vodacom offers four network solutions:

• IPConnect Express provides connectivity over high-speed broadband.

• IPConnect is a managed access solution that pro-

vides high-capacity Ethernet connectivity, over a range of managed access mediums including fibre, microwave and satellite. • Vodacom’s MPLS VPN gives you worldwide coverage and global networking power. • Vodacom Connect’s Dedicated Internet Access delivers you premium dedicated Internet services over uncontended bandwidth over fibre, microwave or satellite. WESTERN CAPE BUSINESS 2019

When travelling overseas, roam with peace of mind with one of Vodacom’s three great-value options. BECOME A READY BUSINESS Visit: vodacombusiness.co.za

70


ONE NET – BUSINESS PRODUCT BROCHURE

FOCUS

One Net Business

A Ready Business never misses an opportunity

A Ready Business capitalises on fixed and mobile convergence across any device Vodacom One Net Business is designed to reduce the number of missed calls and missed opportunities. Be more collaborative in the workplace and reduce communication barriers. Vodacom offers greater agility, productivity and efficiency with less complex solutions:

Vodacom’s One Net Business services provide all the benefits of: •

Voice, through advanced unified

communications features which includes: Vodacom One Net Business

1. Fixed and mobile convergence: Allows the user to determine how fixed and mobile calls will be answered and managed between devices. 2.

3. 4.

technology in the cloud: Regular new software releases and an easy-to-use selfservice portal (One Net Manager) that lets you manage your One Net Business services directly. 5. 6.

enterprise telephony, hunt groups, auto attendant, conference calling, receptionist,

executive/assistant, more networks, If you want to integrate mobile and and fixed • Instant Messaging presence solution. One voicemail for your customers: Your Business Vodacom One Net is theandright cellphone and landline number become one. • Video collaboration Be available using one number on allcare end Vodacom takes of the platform, enabling you to devices regardless of whether you’re in the • Content sharing through a office,focus at home, abroad or on your cellphone. on improving productivity with reduced monthly single platform One single voicemail inbox means you’ll never miss calls from customers again. • wider A range of IPtelecommunication Phones and apps that will costs. Let us manage your enhance the fixed and mobile converged One provider: all fixed and mobile needsfor through our great range experienceof services including requirements. Why is One Net Business better mobile, security, email and document management. Future-proofed, Unified Communications

Presence

Content sharing

Voice

Through a single platform

than traditional on premise

telephony solutions? Vodacom One Net Business combines fixed and One package: Convergence of mobile and fixed mobile telephony services into one cloud-based telephony services, single support route, fully converged user experience.reducing the Unified Communications solution, Direct calls: to the right department or person Simplicity: Configurable for each user, acrossnumber any device. of missed calls, making costs more predictable easy-to-understand, intuitive, always upgraded to the latest feature capabilities. Always ready to answer: monitor the call and keeping your Ready Business better connected. availability of colleagues and direct calls as needed.

Video collaboration

Instant Messaging

Cost saving: Free on net closed user group calls

(fixed and mobile). One Net Business converges your fixed and mobile services. You determine how, when and where and on which device you want to answer that important customer call or message. Communications can be routed seamlessly from your desktop, tablet, fixed or cellphone at a push of a button.

7. Better collaboration: With diverse collaboration tools, your teams can work together more efficiently than ever independent of location, time and end device. Whether in video or audio conferences, through desktop sharing, presence information or chat – One Net Business users cooperate simultaneously and in real time.

lets you manage your One Net Business services directly. 5. Direct calls: To the right department or person across any device. 6. Always ready to answer: Monitor the call availability of colleagues and direct calls as needed. 7. Better collaboration: With diverse collaboration tools, your teams can work together more efficiently than ever, independent of location, time and end device.

55704-304528_Vodacom EBU - One Net Product Brochure_v2.indd 3

3

2017/03/09 2:36 PM

A Ready Business capitalises on fixed and mobile convergence across any device

Vodacom offers greater agility, productivity and efficiency with less complex solutions:

Vodacom’s One Net Business services provide all the benefits of:

1. Fixed and mobile convergence: Allows the user to determine how fixed and mobile calls will be answered and managed between devices. 2. One voicemail for your customers: Your cellphone and landline number become one. Be available using one number on all end devices regardless of whether you’re in the office, at home, abroad or on your cellphone. One single voicemail inbox means you’ll never miss calls from customers again. 3. One provider: For all your fixed and mobile requirements. 4. Future-proofed, Unified Communications technology in the cloud: Regular new software releases and an easy-to-use self-service portal that

• Voice, through advanced unified communications

features which includes: enterprise telephony, hunt groups, auto attendant, conference calling, receptionist, executive/assistant, and more • Instant Messaging and presence • Video collaboration • Content sharing through a single platform • A range of IP Phones and apps that will enhance the fixed and mobile converged experience For more information call 082 1960 or visit vodacombusiness.co.za/onenetbusiness

71

WESTERN CAPE BUSINESS 2019


Internet for your Office: Vodacom Connect Solutions

Connect Solutions

DSL (Digital Subscriber Line)

Vodacom’s Broadband Connect offers you affordable, high-speed broadband Internet access over a choice of five different access mediums:

• Fibre • Wireless Lite • Wireless Premium

Our business-grade DSL has fail-over functionality so the infrastructure is always available.

• Satellite • DSL

• Low cost of entry • Quick to deploy – provided you have an existing landline

Connect Fibre

Four network solutions

Broadband Connect Fibre is stable, durable and capable of carrying massive data loads at extraordinary speeds.

1. IPConnect Express

With IPConnect Express, you are confidently connected to Vodacom’s MPLS VPN (Virtual Private Network) and Dedicated Internet Access (DIA Express) over broadband connectivity.

• Fibre is the most scalable connectivity for small business

• No risk of cable theft ensures that network is secure and always available

2. IPConnect

• Increased productivity, cost savings and com-

Dedicated access offerings are better suited to applications requiring quality of service, where you need the performance of your connectivity to be guaranteed, and bolstered by a service level agreement (SLA).

petitive edge

• Provides high-speed Internet access over scalable fibre connectivity to the small business

Wireless Premium

We provide the wireless infrastructure at your premises, install the broadband router and support the service via a support helpdesk.

3. MPLS VPN

MPLS VPN is a managed network infrastructure delivered through a Multi-Protocol Label Switching (MPLS) platform. Connecting to a VPN enables greater network speeds through efficient data transmission as well as reduced latency, while the MPLS ensures that your traffic is always prioritised.

• Less downtime with no risk of cable theft

Wireless Lite

No fixed-line installation required – virtually same day self-install connectivity.

Satellite

4. Dedicated Internet Access

We use the latest technology to optimise the satellite link and to bring you cost efficiencies, especially in unserved and underserved areas.

Vodacom Connect’s Dedicated Internet Access delivers you premium dedicated Internet services over uncontended bandwidth over fibre, microwave or satellite. Dedicated Internet Access is available over fibre, microwave and satellite

• Vodacom’s satellite successes include extensive deployment in the agricultural sector, rural clinics, schools and police stations

WESTERN CAPE BUSINESS 2019

72

C


Cloud and Hosting

Cloud and hosting services

FOCUS

Become a Ready Business As a Ready Business, information is always at your fingertips, stored securely, without virtual and physical threats, in the cloud. The cloud makes collaboration easier, decisions faster and increases productivity. Vodacom provides you with cloud and hosting solutions and expertise attuned to your business needs. All you have to do is focus on your core business and be Ready for success.

compliance and performance. Vodacom Dedicated solutions allow you to refresh your new or existing hardware by leveraging off Vodacom’s buying power. We also provide customers with secure space in a cabinet. Private Cloud: Combines the robust infrastructure of our Dedicated Hosting offering with Vodacom’s flexible Enterprise Cloud solution – the best of both worlds.

Cloud and hosted services

You as a Vodacom Business client do not need to hire an internal IT department or outsource your IT to small firms; instead, you have access to 24/7/365 support when needed. Vodacom Business’ IaaS, SaaS and even DaaS are underpinned by a strong serviceorientated foundation.

Benefits for your organisation of using the Vodacom cloud include reducing your capital expenditure, less office space and hardware and energy expenses. In addition, the cloud allows for:

• easy scalability and upgrading • licences (only for what you use) • usage-based pricing.

To make the most of your business and our solutions, call 082 1960 or visit http://www.vodacombusiness.co.za/business/ solutions/hosting/microsoft-office-365

There are seven major categories of cloud and hosting services offered by Vodacom: Security as a Service; Vodacom Hosted Services; Software as a Service; Platform as a Service; Desktop as a Service; Professional Services and Infrastructure as a Service (IaaS). Infrastructure as a Service (IaaS) makes your organisation more effective: you can save on investing in data centres, cabinet infrastructures or actual servers. It’s a worry-free solution. The IaaS services of Vodacom are: Enterprise Cloud: You can run your infrastructure without having to worry about hardware maintenance and its costs. It is an easily scalable solution. Virtualisation will reduce costs, with an increase in reliability and redundancy. Dedicated Hosting: Ideal for companies that have outgrown a Shared Hosting solution, it is the next step up. Dedicated Hosting increases security

73

WESTERN CAPE BUSINESS 2019


KEY SECTORS Overview of the main economic sectors of the Western Cape

Agriculture

76

Wine and grapes

78

Fishing 84 Mining 85 Oil and gas

88

Water

91

Manufacturing 94 Construction and property development Banking and financial services

96 100

Development finance and SMME support

102

Education and training

104

Business process outsourcing

112

Information and communications technology 113


OVERVIEW

Agriculture The capacity of the Clanwilliam Dam is set to double.

SECTOR INSIGHT New methods are tackling climate change.

T

he wall of the Clanwilliam Dam is to be raised, doubling the capacity of the dam and bringing an additional 5 000ha of land under irrigation. After a lengthy delay, the decision to go ahead with raising the wall of the Clanwilliam Dam was confirmed in October 2018. The 13-metre addition will cost R2.5-billion and could support high-value crops for export such as citrus and table grapes. The land could also form part of the land reform programme. Not only is agriculture in the Western Cape central to the earning of foreign currency through exports, but agriculture underpins many downstream manufacturing enterprises and has enormous potential to create jobs. Nearly 30% of exports come from agriculture, with food and beverages contributing a further 24%. Premier Helen Zille noted in her 2018 State of the Province Address that the key sectors of the province’s non-metro towns (such as retail and manufacturing) have a strong dependence on agriculture and agri-processing. The Western Cape Provincial Government reached its target of 100 000 new jobs in agri-processing in 2016 but the sector has since been buffeted by bouts of avian flu and a once-in-a-generation drought. City dwellers have learnt about the concept of “resilience” by putting buckets in their showers and restricting personal usage to 50 litres per person per day, but it is the agricultural sector which has had to make the biggest adjustments to climate change. The Provincial Government introduced a Smart Agri plan to coordinate efforts to tackle the effects of climate change on agriculture. Developed by two provincial departments (Agriculture WESTERN CAPE BUSINESS 2019

76

and Environmental Affairs and Development Planning), the African Climate and Development Initiative of the University of Cape Town and several private-sector participants, Smart Agri has six priorities: • Conser vation agriculture: minimal soil disturbance, crop diversity and permanent soil cover. Wheat yields have increased dramatically as a result of this programme. • Restoring degraded landscapes. • Improved catchment area managem ent , including removing alien plants. • Energy efficiency. • Giving priority to climateresistant crops and livestock. • Sharing knowledge. The sector supports almost 10 000 farms and employs 214 000 people. Farming carried out on the Western Cape’s 13-million hectares of agricultural land comprises approximately 21% of South African commercial agriculture. Seven of the 10 biggest export earners are either agricultural products or agri-processed goods. These are citrus, wine, apples and pears, grapes, fruit juice and tobacco.


OVERVIEW Interest in the sector from foreign investors has been keen. The Agri-business Investment Unit within investment agency Wesgro has helped to generate investment into the agricultural sector totalling R1.5-billion in the three years to 2017. New areas of interest for export include the Halaal market. With a global market valued at about $2.3-trillion, a step towards preparing the Western Cape to compete in that market was made in 2017 with a small-scale conference on Halaal exports. This was repeated on a larger scale in 2018. The Western Cape, as part of its Project Khulisa strategy, aims to double overall exports from the region by 2025. The province’s climatic regions vary from Mediterranean around Cape Town and on the coast (where rainfall can be 2 000mm at places) to the drier regions of the inland Karoo districts where annual rainfall figures can be below 150mm. Just over three-million hectares of the province is cultivated and 270 000ha are under irrigation. The Breede River Valley is an especially fertile area for fruit. The Western Cape specialises in apples, plums, pears and cherries. Peaches and nectarines can be found in most parts of the province. Raisins are a speciality of the Vredendal area on the West Coast. The Sandveld region on the West Coast is known as South Africa’s Potato Pantry. Citrusdal unsurprisingly does a strong line in citrus and, with nearby Clanwilliam, is also famous for rooibos and buchu. Strawberries do well in the George area. The Stellenbosch and Swellendam districts are also good for berries, and several farmers are branching out into raspberries and blueberries. Swellendam produces 90% of the world’s commercially grown youngberries, a crop of about 600 tons per annum. Wheat is another of the province’s strong sectors: the Western Cape’s 310 000ha planted to wheat represents 64% of South Africa’s crop. Japan is a major destination of the province’s maize production. In canola, the Western Cape is even more dominant, with 99% of the nation’s hectares (StatsSA).

Companies Zeder Investments is the agricultural arm of investment holding company PSG Group. Zeder controls Capespan, which has a turnover of R7.6-billion

ONLINE RESOURCES Fresh Produce Exporters’ Forum: www.fpef.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za SA Grain Information Service: www.sagis.org.za Western Cape Department of Agriculture: www.elsenburg.com

77

Dry times at Clanwilliam Dam.

across three divisions: farms, logistics and fruit. Zeder is also a 39.6% shareholder in Kaap Agri Ltd. Kaap Agri has more than 200 operating points. Zeder also owns 27.2% of Pioneer Foods which makes and distributes many big food and drink brands across southern Africa, including Weet-Bix, LiquiFruit, Ceres, Sasko and White Star. Caledon-based Overberg Agri is an unlisted company with a wide range of investments in several sectors, including mining, pet food and industrial fasteners. SSK (Sentraal Suid Ko-operasie) has outlets in the Overberg and in the Southern Cape as far east as George. The Klein Karoo group based in Oudtshoorn focusses on ostriches through Klein Karoo International. Separate units deal in fashion products, feathers, leather, skins and meat production. Other companies in the group cover seed sales, auctions and retail.

WESTERN CAPE BUSINESS 2019


OVERVIEW

Wine and grapes Resilience is now part of the grape-growing story.

W

ine tourism in the Western Cape grew 16% in 2017 compared to 2016, according to a study done by Wesgro and Explore Sideways. This illustrates that the value of wine to the regional economy goes far beyond grapes and wine. The study, which surveyed 40 tour operators responsible for 19 000 trips, also found that 99% of Cape Town-based itineraries include a trip to the Winelands. A Vinpro report shows that wine tourism contributes R15-billion to the local economy. Local wine sales bring in R13.2-billion. Excise and other taxes paid by the wine industry amounted to R6.7-billion in 2017, up by 8% from the previous year, according to Koos Nel of Old Mutual Personal Finance. Wine sales and exports are the most obvious economic contributors but in a broader sense, sectors such as agri-processing, tourism, WESTERN CAPE BUSINESS 2019

78

SECTOR INSIGHT Wine tourism contributes R15-billion to the regional economy. hospitality, manufacturing, retail and trade are all affected by wine grapes in one way or another. Nel has also drawn attention to how well the wine and grapegrowing sector is responding to prolonged droughts. Although the yield in 2018 was expected to be


OVERVIEW about 15% lower than previous years, the harvest suffered a much larger percentage loss than that figure. Producers have invested in new areas, new cultivars and clones and started using new technologies to lesson the impact of climate change. The Wesgro study found that wine tourists tend to spend somewhat more than other visitors and that they wanted bespoke tours rather than “packaged” tours. An interesting finding was that many tourists are just as concerned about sustainability as farmers and producers are in the modern era. Fully 85% of wine tourists, when booking, mentioned sustainable issues such as biodynamic winemaking, carbon neutrality, organic farming and social equality. Other areas of interest that attract the most support from visitors, according to the tour operators, are food and wine pairings (68%), cellar tours (54%), meeting the winemaker (51%) and food and wine tasting events (49%). Tour operators are also branching geographically in terms of destinations. The Hemel-en-Aarde Valley (Hermanus) is growing in popularity, as are the Robertson Valley, Helderberg and the Swartland. Old favourites such as Stellenbosch, Franschhoek, Paarl and Constantia are still popular but the appetite for something different is increasing. The Cape Winemakers Guild meets regularly to discover new tastes from around the world and to try to expand members’ knowledge. Started in 1982, the Guild is made up of experienced winemakers who want to explore their chosen trade. One of the Guild’s respected veterans, Beyers Truter, believes that the best thing about the Guild is “the dissemination of knowledge”. The openness where one can talk about the good and bad things in wines encourages introspection and growth. As the founder of the Pinotage Association, Beyers is clearly a winemaker concerned about improving quality. A Protégé Programme is offered to trainee winemakers and the Viticulture Protégé Programme, run by the Guild in conjunction with VinPro, offers a two-and-a-half year internship for newly graduated viticulturists in cultivation practices.

Exports of wine Another way of countering the effect of smaller harvests has been to aggressively grow exports. Wine exports to Angola and China have doubled. In the four years to 2017, wine exports to China reached 18.2-million litres, an increase of 109%.

79

The Chenin Blanc Association of SA believes that the US is a ripe market for its wines. Financial Mail reported in 2017 that South Africa’s 17 799ha of Chenin plantings is greater than the rest of the world combined, and many of the vines are old, which creates better quality. SA currently exports 11Ml/year into the US, a small fraction of the 920Ml/year that that country imports. In a recent development, wineries in greater Cape Town now have their own regional identity. The likes of Groot and Klein Constantia, Buitenverwacthing, Diermersdal and Cape Point Vineyards will from now on carry the label “Wine or Origin Cape Town”, linking them to one of the bestknown city brands in the world. There is a move to try to shift South Africa’s focus away from bulk wine sales, to bottled wines. The website beveragedaily.com quoted the managing director of Origin Wines stating that for every 10-million litres of additional wine bottled in South Africa in 2016, additional direct income of R200million should accrue to the Cape Winelands. The decision by Britain’s electorate to extract the country from the EU will lead to some complications, but the new situation could also lead to many new opportunities. The EU may push for the reduction in some of the figures set for imports (on the basis that a chunk of the allocation would be going to Britain), but Britain will surely want to negotiate a good deal with South Africa as quickly as WESTERN CAPE BUSINESS 2019


OVERVIEW

Cape Winemakers Guild protégés.

possible. France and Italy have shown a keen interest in strengthening ties with South Africa in the months since Britain decided to leave the EU. There are over 3 500 wine producers in South Africa, with the large majority located in the Western Cape. Wine is produced by estates, independent cellars and producer cellars or co-operatives. The Distell group runs five distilleries and seven wineries in the Western Cape, produces about a third of the country’s natural and sparkling wine and is ranked 12th in the world in terms of global wine volume sales. The multi-brand KWV was sold in 2016 to consumer investment group Vasari. Wellington Wines is a new venture that arose from the merger of the Wellington Co-operative and the Wamakersvallei Cooperative. DGB is a large wine and spirits company that makes much of its own product at five famous wineries. These include Boschendal, Bellingham and Douglas Green. Edward Snell & Co is a wine and spirits wholesaler that also makes its own line of spirits. Fourteen brandy distilleries can be visited on the Western Cape Brandy Route and a further six on the R62 Brandy Route on the road east.

Table grapes The South African Table Grape Industry Partnership (SATGI) is a partnership whose board membership represents every growing

ONLINE RESOURCES Cape Winemakers Guild: www.capewinemakersguild.com Nietvoorbij Institute for Viticulture and Oenology: www.arc.agric.za SA Wine Industry Information & Systems: www.sawis.co.za South African Table Grape Industry: www.satgi.co.za Vinpro: www.vinpro.co.za Western Cape Department of Agriculture: www.elsenburg.com Wines of South Africa: www.wosa.co.za

WESTERN CAPE BUSINESS 2019

80

region. The industry’s contribution to the national GDP is estimated at more than R3-billion. The table grape industry provided over 46 000 direct jobs during the 2015/16 harvest to the Western Cape. The Western Cape is responsible for 65% of total production volumes in table grapes. There is also a significant contribution to downstream production income – R3.2-billion to other product input providers, R720-million to packaging material suppliers and R250-million to logistics suppliers. On farms with black ownership, income of R183-million was generated in 2014/15. Key industry figures for the annual national harvest: • more than 85 000 jobs • wages valued at R950-million • additional R600-million job creation by suppliers in the value chain. Three of South Africa’s grapegrowing regions are located in the Western Cape: • Olifants River: the river flows from the Cedarburg Mountains westwards towards the Atlantic Ocean via Namaqualand. • Berg River: the Du Toitskloof Mountains are the main geographical feature of this region named for the strong-running river which irrigates the fields of grape varieties such as Red Globe, La Rochelle and Bonheur. • Hex River: the river runs past the Matroosberg where snow falls are a regular occurrence. Popular varieties are La Rochelle, Sunred Seedless and Barlinka.


FOCUS

The South African wine industry is on a growth path Vinpro is a non-profit company which represents 2 500 wine producers, cellars and industry stakeholders.

T

he South African wine industry is entering a new phase of revival and reinvestment following a long and arduous cycle characterised by drought and ongoing profitability pressures. However, the industry has and will continue to adapt on all fronts. Not only to maintain a sustainable source of income, but to be able to nurture and grow its two biggest assets – its people and its vines. South Africa is the eighth-largest producer of wine in the world and contributes 4% to global production. The industry contributes R36-billion to the country’s gross domestic product (GDP) and employs close to 290 000 people. “The only way to a sustainable supply going forward is increasing the prices of our wines, so that wine grape producers have sufficient financial means to plant and renew vines, increase production, and are able to accelerate the already significant investment in socio-economic aspects including further training and upliftment of their people,” says Rico Basson, MD of the wine industry body Vinpro. “It is encouraging to see wine grape producers now getting back to establishing, replacing or expanding existing vineyards,” says Rico. This growth comes after a five-year lag in investment due to profitability pressures. An increase in sales, drop in production and stock levels reaching equilibrium implied a significant shortage of wine to service markets at 2017 levels. Local and global wine shortages resulted in wine prices inching higher. Although producers are optimistic about the 2019 wine grape harvest following very good winter rainfall in most areas, they have also learned to adapt to climate change by making use of alternative practices and technology, investing in new,

drought-tolerant clones and cultivars, continuously evaluating the financial viability of vineyard blocks and venturing into new geographical regions. “Nearly five jobs are created for every R1-million invested in the South African wine industry. It is the industry’s collective responsibility, with government and civil society, to drive transformation, ethical trade, socio-economic development and talent growth and retention at every level,” says Rico. Vinpro represents South African wine grape producers, cellars and wine-related businesses, while providing strategic direction, rendering specialised services and driving people development. For more information phone 021 276 0429, e-mail info@vinpro.co.za or visit www.vinpro.co.za.

81

WESTERN CAPE BUSINESS 2019


FOCUS

The South African Table Grape Industry South Africa: preferred country of origin for the world’s best-tasting grapes.

The South African Table Grape Industry (SATI) is the industry association of table grape producers which aims to establish South Africa as the Preferred Country of Origin for the world’s best-tasting grapes. SATI represents growers on key government and industry initiatives aimed at creating more opportunities, from ownership to accessing new markets in a sustainable way. South African table grape growers and exporters are committed to being a reliable supplier of table grapes by delivering a safe, flavour-filled product of the highest quality. Table grape growers from South Africa meet the highest global food safety and ethical standards required by different world markets.

• Human capacity and skills development • Technical support

Vision

SATI is funded by a grower levy and is a co-founder and a key supporter of the Sustainability Initiative of South Africa (SIZA).

South Africa is the Preferred Country of Origin for table grapes and will provide every table grape producer as wide a choice as possible with profitable markets.

A world of variety There are five major growing regions in South Africa. The difference in soil and climate enables growers to supply the markets from November to May. The early season is dominated by varieties from the northern provinces and the valleys of the Orange and Olifants Rivers, followed by table grape varieties from the Berg River and Hex River regions.

Mission SATI delivers service excellence to create a progressive, equitable and sustainable South African Table Grape Industry.

SATI’s key areas of intervention

The South African table grape industry is ideally positioned to work with the government on all levels to make a significant contribution to the primary goals of the National Development Plan, namely job creation, rural development and the earning of foreign revenue.

• Technical market access • Research and technology transfer • Information and knowledge management • Transformation • Communication and stakeholder engagement

WESTERN CAPE BUSINESS 2019

82


OVERVIEW

Fishing Black owners are getting a hand on the tiller.

SECTOR INSIGHT New fishing rights will be allocated in 2020.

T

he acquisition by black-controlled Sea Harvest Group of Viking Fishing in 2018 is part of a larger trend in which empowered companies are taking controlling shares in fishing companies. This is in anticipation of black shareholding likely being a strong factor in the determination of new fishing rights, which will happen in 2020. Sea Harvest paid R885-million for Viking. Sea Harvest has also added to its fleet a R130-million stern-fishing trawler, which can catch and process up 7 000 tons per year and can freeze up to 40 tons per day. Sea Harvest’s return to the main board of the JSE in March 2017 brought to three the number of major fishing companies represented on Africa’s biggest stock exchange. Premier Fishing also made its shares available to the public for the first time while Oceana Group, a Tiger Brands company, has been on the JSE for 70 years. The Oceana Group has purchased Foodcorp’s fishing rights and a US fishmeal and oil company, Daybrook. The biggest brand performer for Oceana is Lucky Star canned pilchards, which enjoys 80% of market share in South Africa. The Western Cape is responsible for about 75% of the nation’s fishing. The value of the national catch across 22 commercial fishing sectors is about R6-billion. Sectors range from the highly capitalised deep-sea trawling industry to much smaller lobster and abalone operations.

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

WESTERN CAPE BUSINESS 2019

84

Demersal fish such as hake and kingklip account for 46% of the national catch, with pelagic fish (anchovy, pilchards and sardines) making up 23%. Lobster makes up 11% and linefish 13%. The National Department of Agriculture, Forestry and Fisheries wants to restructure the horse mackerel industry to promote local fishers and processors. Most of South Africa’s large food companies have fishing divisions. Pioneer Fishing, which has no connection to the multi-product group Pioneer Foods, controls a canning, fishmeal and fish oil factory in St Helena Bay and a processing and freezing factory in the Port Elizabeth harbour. The African Pioneer Group holds a 40% stake in the company, which was formed as a joint venture with Suiderland to control the latter’s fishing rights. Premier Fishing and Brands Limited, a subsidiary of Sekunjalo Investments, runs 16 vessels and operates at seven locations, including a 1 760-ton cold storage facility at the V&A Waterfront. The company has lobster plants at Port Nolloth and Hout Bay, and a fish meal plant at Saldanha. Dromedaris Visserye specialises in Cape lobster, and supplies sardines and anchovies to China and Japan.


OVERVIEW

Mining A rare earths feasibility study is underway.

S

ixteen rare earth minerals have been identified north of Vanrhynsdorp, with the most prevalent being cerium, an important component of catalytic converters. A feasibility study of the Steenkampskraal rare earths mine is expected to be completed in 2019. The acquisition in 2015 by Steenkampskraal Thorium Limited (STL) of the shares of Rareco has given it the right to the rare earth deposits at the Steenkampskraal monazite mine. STL, which already had the thorium rights, is an associate of Thor Energy in Norway. A mineral sands project on the West Coast near Lutzville and Koekenaap is sending product to China. Australian miner Mineral Commodities (MRC) says it will spend R5-billion to 2019 in search of zircon, rutile, ilmenite and garnet. Namakwa Sands is a mineral sands operation on the West Coast, owned by Tronox. In 2017, South African resources company Exxaro sold some of its shares but retained enough of a stake for Tronox to keep its BEE certification. The company has a mine and concentration plant at Brand-se-Baai and a mineral separation plant at Koekenaap near Lutzville about 350km from Cape Town. Ilemnite, rutile and zircon are extracted at this site and then taken to the company’s smelter at Saldanha Bay. Afrimat has five sand mines, two lime plants and nine aggregate operations in the Western Cape. The Afrimat Kliprug Quarry in Durbanville is near the AfriSam Peninsula Quarry at Killarney north-east of Milnerton which mines greywacke stone which is then processed at the nearby plant into concrete aggregates. Pretoria Portland Cement (PPC) has operations near Riebeeck-West and Piketberg (De Hoek). Slasto and building stone is quarried near Clanwilliam. Consol quarries glass sand near Philippi. The Cape Bentonite Mine near Heidelberg is run by Ecca Holdings with another site east of Knysna at Roode Fontein. Dimension stone occurs around Vanrhynsdorp and medium-grain granite is found at Paarl. Limestone for cement, agricultural lime and feed lime is extracted at several sites in the province’s western regions while kaolin is found

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

85

SECTOR INSIGHT Plans to mine uranium in the Karoo are controversial.

in Noordhoek and Somerset West. Ball clay is mined in the Albertina area by G&W Base and Industrial Minerals. Beaufort West is the latest focus of attention for new mining in the Western Cape. Whether or not South Africa needs nuclear power is a hotly debated topic, but Tasman RSA (which includes Australian-listed Peninsula Energy and a local group called Lukisa JV) has a business plan for extracting uranium in the Karoo. WESTERN CAPE BUSINESS 2019


FOCUS

Excellence, innovation and transparency Staff at Superfecta Trading are electro-mechanical engineering specialists who go the extra mile in delivering the best possible solutions.

A

Honesty, integrity and reliability

s founder members of Superfecta Trading, Patrick and Abigail Mphephu have developed what used to be a company that dealt only in facility management into a multi-faceted electromechanical engineering enterprise whose partnerships with international companies gives them the scope to offer a broad range of products and services. The newest addition to the portfolio is manufacturing. Superfecta Trading has a factory where it is assembling transformers. With an increasing focus in South Africa on the need for local content, the potential for this aspect of the business to grow is enormous. Superfecta Trading is also looking forward to providing more job opportunities as the manufacturing side of the business takes off.

WESTERN CAPE BUSINESS 2019

Teamwork at all levels is recognised as being vital to the long-term success of the company. Employees are encouraged to seek creative and innovative solutions to workplace problems and to pursue ideas and suggestions that will contribute to increased customer satisfaction and the promotion of the company’s strategic objectives. Superfecta Trading will: • Always communicate openly and honestly, while simultaneously behaving with dignity, trust and respect. The interests of the company will always be the priority. • Provide a non-discriminatory, healthy and safe working environment, which will allow for the growth and development of our people and creativity and innovation.

86


FOCUS

Services offered System maintenance This includes: • Day-to-day/ad hoc • Preventative maintenance • Scheduled maintenance • Servicing and repairs. Mechanical With a professional team of mechanical technologists, Superfecta prides itself on the supply, installation and maintenance of mechanical work. Oil purification Transformer oils undergo electrical stresses while the transformer is in operation. We provide the online or offline purification services needed to extend the life of transformer oils. Electrification and distribution Superfecta is engaged in infrastructure development in rural and urban areas through an extensive programme of installing electricity infrastructure.

General Manager, Noluthando Nkota

Transformers Super fecta is a one-stop shop for all transformer and transformer-related work and we pride ourselves on delivering a comprehensive and complete service.

High-tension electrical reticulation Super fec ta installs and conduc ts repairs to hightension electrical circuits in many parts of South Africa, in urban and rural areas.

CONTACT INFO Physical address: 23 Catalunya Raceway Industrial Park, Gosforth Park, Germiston, Johannesburg 1419 Telephone: +27 11 869 3607 Fax: +27 11 825 0086 Email: info@superfectatrading.co.za Website: www.superfectatrading.co.za

87

WESTERN CAPE BUSINESS 2019


OVERVIEW

Oil and gas Chevron deal means investment for Cape refinery.

S

outh Africa’s Competition Tribunal ruled in 2018 favour of a South African group acquiring the majority share of Chevron SA. Off the Shelf Investments 56 becomes the first majority black-owned oil company in South Africa. Among the conditions imposed by the tribunal are that R6-billion must be invested in the Western Cape refinery and that jobs must be preserved. A Hong Kong-based company had earlier been given the green light by the tribunal but Off the Shelf, as an empowerment partner of Chevron SA (and resources giant Glencore), had right of first refusal. In addition to the 110 000 barrel a day refinery, Chevron controls 820 petrol stations, oil storage facilities and a lubricants plant. The Western Cape Provincial Government reported that in 2016 the oil and gas sector contributed R1.03-billion to the province’s gross value add. More than 7 000 direct jobs were created in ship and rig repair sector of the oil and gas business in 2015. The oil and gas sector is a priority sector and as such, falls under Project Khulisa. This entails logging detailed plans with progress reports going WESTERN CAPE BUSINESS 2019

88

SECTOR INSIGHT R500-million has been spent on infrastructure at Saldanha Bay. to the Premier on a regular basis. The Saldanha Bay Industrial Development Zone is central to the plan to grow the oil and gas sectors. Large industrial operations already exist at Saldanha and the Port of Saldanha Bay is the portal for the export of South Africa’s iron ore. The Western Cape Provincial Government and the National Department of Trade and Industry have so far invested R500-million


AF

PR

O

OF PETRO LE UM

SOU TH

C AGEN Y FOR

ION OT M

N CA RI

TION ITA LO

PETROLEUM AGENCY SA

ORATION AND PL EX EX P

Petroleum Agency SA encourages investment in the oil and gas sector by assessing South Africa's oil and gas resources, and presenting these opportunities for exploration to oil and gas exploration and production companies. Compliance with all applicable legislation in place to protect the environment is very important, and rights cannot be granted without an approved Environmental Management Plan. Explorers must prove financial and technical ability to meet their commitments in safe-guarding and rehabilitation of the environment. Preparation of Environmental Management Plans requires public consultation and a clear demonstration that valid concerns will be addressed. Petroleum Agency SA, based in Bellville, Cape Town, is responsible for the promotion and regulation of exploration and exploitation of oil and gas (petroleum) resources.

Contact us to find out about: - Onshore or offshore exploration opportunities - Permits and rights - Availability of geotechnical data.

+27 21 938 3500 plu@petroleumagencysa.com www.petroleumagencysa.com


OVERVIEW in the development of core infrastructure at the Saldanha Bay IDZ. The Saldanha Bay IDZ has signed a lease agreement with the Transnet National Ports Authority. The Western Cape’s status as an oil and gas hub was enhanced in August 2017 with the opening of a new open-access liquefied petroleum gas (LPG) import and storage terminal at Saldanha Bay. A public-private partnership is behind the R1-billion terminal, the largest of its kind in Africa. Investors include Sunrise Energy, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and Royal Bafokeng Holdings. The newly constructed Bergun terminal, comprising 12 tanks located on the Eastern Mole of the Port of Cape Town, has added to the port’s fuel storage capacity and is connected by pipeline to the Chevref refinery.

Gas The Council for Geoscience (CGS) is doing an intensive study of South Africa’s potential shale gas resources. The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers. Natural gas lies offshore to the west of South Africa in the Atlantic Ocean (Ibhubesi) and off the southern coast in the Indian Ocean (Bredasdorp Basin). Both fields have great potential: Block 2A of the Ibhubesi gas field north-west of Saldanha is estimated to have reserves of 850-billion cubic feet of gas and the Bredasdorp Basin is said to have reserves of one-trillion cubic feet but getting to the gas has been difficult. Large quantities of oil are transported around the Cape of Good Hope every year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the Middle East. Reduced global prices for oil and troubles in the container ship market have caused some stress in the local sector but the long-term prospects for shipping and oil and gas are still strong enough for national government to pursue Operation Phakisa (which includes a strong maritime economy push) and for Transnet National Ports Authority to spend heavily

ONLINE RESOURCES National Department of Energy: www.energy.gov.za National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency of South Africa: www.petroleumagencysa.com PetroSA: www.petrosa.co.za South African Oil and Gas Alliance: www.saoga.org.za Transnet Pipelines: www.transnet.net

WESTERN CAPE BUSINESS 2019

90

on upgrading the nation’s ports. Industrial gas manufacturing in the Western Cape is a particular focus for Air Products, a part of the Metkor Group controlled by Remgro. The company is the largest supplier in the pipeline and on-site markets, and it also supplies to the packaged chemicals, bulk and chemicals markets. The gas-to-liquids plant which PetroSA runs at Mossel Bay on the south coast is one of the country’s key pieces of energy infrastructure. Getting new feedstock for this plant is now an urgent priority. Russia’s geological exploration company, Rosgeo, which will see $400-million invested and gas delivered to the gas-to-liquids refinery at Mossel Bay (Mossgas). The regulator and promoter of oil and gas exploration in South Africa is Petroleum Agenc y South Africa. In addition to adjudicating on coastal fields such as those along the western and eastern coasts of the Western Cape, the agency has awarded coalbedmethane-gas exploration rights in KwaZulu-Natal and natural gas exploration permits in the Free State.


OVERVIEW

Water Lessons for the world from Cape Town’s water crisis.

W

hen the long-term drought was at its worst, tourists to Cape Town were encouraged to “Save like a Local”. Together with a range of technical and legislative measures, the campaign to get Capetonians and their guests to use less water worked remarkably well. Where the residents and businesses of the city were using 1.2-billion litres-per-day in 2015, by the middle of 2018 the figure was 516-million litres. While the taps were not literally turned off (the dreaded “Day Zero” was averted), pressure in the pipes was drastically reduced. The International Water Association’s Water Loss Conference in Cape Town in May 2018 reported that two of the world’s largest advanced pressure control systems are operating in Cape Town. Restrictions on water use were introduced (car washing was outlawed completely, for example) and shopping centres introduced waterless sanitation. Cape Town’s hinterland thankfully experienced good winter rains but the town of Beaufort West in the Karoo continues to face a real crisis. In 2017 Cape Town hosted Water Desalination Symposium Africa, further evidence that relying on rain to ensure reliable supply in the future is not being contemplated. The coastal town of Witsand in the Hessaqua Municipality will receive drinkable water from a plant using reverse osmosis

91

SECTOR INSIGHT Solar-powered desalination plant is a world first. desalination technology powered by photovoltaic solar energy. This is world first for the application of this combination of technologies. French company Mascara Renewable Water is responsible for building the plant, in partnership with its local partner, TWS (Turnkey Water Solutions). The response to the water crisis has included companies such as Sea Harvest and Oceana building their own desalination plants. The V&A Water front (pictured), and Tsogo Sun have also invested heavily in water projects. Old Mutual’s large WESTERN CAPE BUSINESS 2019


OVERVIEW campus in Pinelands is off the grid. The Western Cape Department of Economic Development and Tourism (DEDAT) announced that investment into the Green Economy reached R1.2-billion in 2017/18. DEDAT also works on long-term water resilience with various stakeholders through an “Economic Water Security Workstream”. Other steps to secure future water supply include the expenditure over R5.9-billion over five years by the City of Cape Town on desalination projects, aquifer extraction and water reuse. The National Department of Water and Sanitation is supposed to be responsible for bulk water supply, but the local authority has had to step in. A Cape Town company has experience in rolling out desalination plants with big capacity. GrahamTek, a PSG company based in the Strand, is consulting on Middle East plants that produce more than 1 000-million litres per day. Another Cape-based company with international experience is Malutsa, who have provided drinkable water in crisis situations and have developed a robust mobile water purifier for the military. To find the money to deal with the drought and the longer-term effects of climate change, the City of Cape Town issued a green bond for the first time in 2017. It was over-subscribed and allowed the city to get started on implementing its Climate Change Strategy. Some of the long-term projects falling under the strategy include new electric buses, energy efficiency measures in city buildings, improved sewerage plants and the rehabilitation and protection of coastal structures. In 2030 South African demand for water will be 17% greater than supply. That is the verdict of the 2030 Water Resources Group. The Water Resources Group, an international consortium of private companies, agencies and development banks, has established a South African chapter, the Strategic Water Partners Network. In terms of its water infrastructure and maintenance of its wastewater treatments plants, the Western Cape fares well compared to other South African regions. The Western Cape Department of Agriculture has launched a climate action plan called Smart Agri which includes doing studies on conservation agriculture. The plan draws on the expertise of academics and companies in the private sector.

ONLINE RESOURCES Breede-Overberg Catchment Management Agency: www.breedegouritzcma.co.za National Department of Water and Sanitation: www.dwa.gov.za South African Water Research Commission: www.wrc.org.za Water Institute of Southern Africa: www.wisa.org.za Water Resources Group: www.2030wrg.org

WESTERN CAPE BUSINESS 2019

92

The Berg River-Voëlvlei Augmentation Scheme entails pumping water out of Berg River in winter, having first allowed for enough water to cover the ecological water requirements of the river and the estuary. A Wate r Ste w a rdsh i p programme has been introduced in the Breede River catchment area. WWF-South Africa, Woolworths and Marks & Spencer are collaborating on a scheme encouraging stone fruit farmers to put in place systems that reduce risk to water supply and quality. WWF-SA also has a Water Balance Programme which works to increase the amount of clean water coming into the environment. Woolworths’ contribution to this plan involves getting rid of alien vegetation on the farm where it sources its wines (Paul Cluver Wines) and in the Leeu River catchment area. The introduction by the Department of Water and Sanitation and the Water Institute of South Africa (WISA) of the Blue and Green Drop Awards has been successful. The nation’s municipalities receive scores reflecting how well they are doing in terms of providing clean water. In order to win a Drop Award (Blue for water quality, Green for waste treatment), water systems have to score 95% or higher. The DWS has allocated R4.3-billion to helping municipalities deliver water. The Interim Water Supply Programme concentrates on 23 district municipalities.


FOCUS

Breede-Gouritz Catchment Management Agency Using water resources efficiently, effectively and wisely to build a sustainable future.

T

he Breede-Gouritz Catchment Management Agency protects, develops, conserves, manages and controls water resources in a large area (the Breede-Gouritz Water Management Area, WMA) that extends from the Atlantic Ocean in the west to the areas near the Orange River in the north and the Umzimvubu River in the east. Most of the WMA falls within the Western Cape Province.

water resources. Without this process, there could be unreasonable or unsubstantiated claims to water entitlements due to over-allocation, or an unfair or disproportionate use of water from a resource. Detailed water use data will be prepared to enable the BGCMA to determine which properties in the project area have: registered their water use correctly, under-registered their water use, overregistered their water use or not registered their water use. Unlawful water use, specifically the taking and storing of water, will come to light through the verification process. Information obtained from the registration process is used to bill water users and billing will become more efficient and accurate following the completion of this project.

Water Use Validation and Verification Project This project is targeted specifically at existing water users. The project is being implemented by the BGCMA, together with consultants from the Council for Scientific and Industrial Research (CSIR). The project will conclude in 2019. The project will confirm water use in the BreedeGouritz WMA, focusing on the Olifants and eastern and western coastal rivers. Specifically, it will identify: Who is using water? How much water is being used? Where it is being used? What is the water being used for? Finally, it will ask: Is the water use lawful? The project does not address general water sector issues, queries or concerns such as water use licence applications, pollution, water use billing and charges. The validation and verification of registered water use is critical in the management and control of

Users definition Water users (agriculture, industrial, commercial, mining, domestic water supply) include those who take water directly from a watercourse (rivers and canals), boreholes, who have dams on their properties and who have commercial forestry plantations. Users who receive water directly from a municipality or a water board or use water for smallscale domestic and non-commercial gardens or livestock purposes (Schedule 1 use) are not affected by the project.

CONTACT INFO IMPORTANT

Project contact details Jan van Staden Tel: +27 023 346 8005 Email: jstaden@bgcma.co.za Website: www.bgcma.co.za

Registration of water use is not an authoritisation or entitlement to use water and is subject to validation and verification by the BGCMA.

93

WESTERN CAPE BUSINESS 2019


The City of Cape Town established a greentech manufacturing hub in Atlantis in 2011, in response to the Department of Energy’s Renewable Energy Independent Power Producer Programme (REIPPP). Localisation of manufacturing and the resultant job creation is one of they key priorities of government through the REIPP programme. The hub has already attracted its first large Greentech investor, Gestamp Renewable Industries (GRI). A wind tower manufacturer, GRI has already invested The Atlantis Special Economic Zone R300m and is in full-scale production.

OVERVIEW

the proposed Atlantis SEZ (ASEZ) capitalises on the province’s already booming renewable energy and green technology sector. Greentech refers to green technologies that reduce or reverse the impact of people on the planet. This includes renewable energy technologies. Wind turbines, solar panels, insulation, biofuels, electric vehicles, materials recycling and green building materials are all examples of green technology.

Manufacturing

is poised for growth.

SECTOR INSIGHT Gr e en C ap e has w on international recognition.

Siemens wind towers manufactured at Gestamp Renewable Industries in Atlantis.

- Siemens wind towers manufactured at Gestamp Renewable Industries in Atlantis -

T

he Atlantis Special Economic Zone, which is due to be officially certified soon, has already attracted nearly R700-million in private-sector investment. A Moody’s report on the green economy in Africa states that South Africa has the fastest-growing green sector in Africa, and one of the fastest-growing in the world. The Western Cape is driving a green economy manufacturing strategy focussed on Atlantis. About 70% of South Africa’s manufacturing in renewables is happening in the Western Cape. Atlantis was chosen in 2017 as the site of a new factory for Czech fabric manufacturer PEGAS Nonwovens. At R1.3-billion, the investment is the biggest secured by Wesgro and Into SA since 2011. Training for local residents employed by the manufacturer will take place in the Czech Republic. Fridge manufacturer Hisense, already established at Atlantis, is exploring ways to make its product greener, either through its own processes or via its suppliers. The 500 employees at the Atlantis factory produce fridges and televisions that are exported to 13 African countries. Green Cape is an agency that does research and runs projects in areas such as energy efficiency, waste, water and sustainable agriculture. It is a joint initiative of the City of Cape Town, Wesgro and the Provincial Government of the Western Cape. The Western Cape Industrial Symbiosis Programme (WISP), which encouraged WESTERN CAPE BUSINESS 2019

94

manufacturers to use the waste products of other businesses, won international recognition in 2018 when it was runner-up in the Circular Awards at Davos. Growth in the Western Cape manufacturing sector between 2003 and 2013 averaged 2.2% and the Provincial Economic Review and Outlook predicts the same level of growth to 2020. A diverse manufacturing sector contributes 15% to the Western Cape’s GDP. The agri-processing sector (including food and beverages and tobacco) is the largest emp l oyer (24%) fo ll owe d by metals, metal products, machinery and equipment at 19%. A proposed Cape Health Technology Park will further boost the growth of the manufacture of medical devices. The decision by Britain to leave the European Union has led to increased interest in bilateral trading relations with individual European countries. France has established a tech hub in Cape Town and Business France has been facilitating a number of conferences and visits. More than 300 French firms currently operate in South Africa.


OVERVIEW Boat building Atlantis is home to Admiral Boat Manufacturers and Phoenix Marine, both specialist catamaran manufacturers, and Celtic Yachts who make catamarans and cruising yachts. Ullman Sails make sails in Maitland while Two Oceans Marine Manufacturing constructs its catamarans on the Foreshore. Southern Wind in Athlone manufacture high-performance super yachts. Robertson & Caine’s facility in Woodstock produces three boats a week for the international market. With a staff complement of 1 350, a record of having launched more than 1 300 vessels and a subsidiary company in Tampa, Florida, the company is a world leader in power catamarans and sailing catamarans. Nautic Africa makes larger vessels, including patrol, defence, oil and gas platforms and commercial vessels. They are also active in service and support, parts and spares, and vessel leasing and management. The Whisper Boat Building Academy is located at the False Bay TVET College.

Food and beverages The combination of excellent and plentiful agricultural produce, good manufacturing capacity and a skilled workforce give the Western Cape a competitive advantage in the food and beverages sector. A sophisticated transport infrastructure system allows it to service international markets. Famous Brands has bought a famous Western Cape brand in its drive for greater backward integration. Lamberts Bay Foods supplied Famous Brands restaurants with chips for two decades. With its purchase from Oceana, Famous Brands now has greater control over a menu item at all of its 26 restaurant brands, including Wimpy, Fishaways and Mugg & Bean. Lamberts Bay Food sources potatoes from all over South Africa, but its proximity to the potatogrowing Sandveld region is helpful. British American Tobacco, which has about 65% of the legal

ONLINE RESOURCES Cape Chamber of Commerce: www.capetownchamber.com Cape Town Boatbuilding and Technology Initiative (CTBi): www.ctbi.co.za National Department of Trade and Industry: www.thedti.gov.za Wesgro: www.wesgro.co.za

95

domestic market, has moved its administrative headquarters to the Waterfront. The wheat-growing areas of the Swartland host several mills such as Sasko’s facility in Malmesbury. Bokomo has several manufacturing facilities in Atlantis, Epping, Ndabeni near Pinelands, Worcester and Bonnievale. Safari Vinegar is based in the Strand and there are two Heinz manufacturing plants at Wellington and Atlantis. Two of the biggest chicken processing facilities are located on the N7 highway (Tydstroom) and on the N1 (Rainbow Chickens). The Western Cape has about 16 000 commercial pork sows and produces a quarter of South Africa’s milk. Willards has a factory in Goodwood, in nearby Parow there is a Simba factory and local chip and snack manufacturer Messaris, which has been in operation since 1898, has a facility in Elsies River. Nestlé produces condensed milk and milk powder in Mossel Bay and canned pet food in Cape Town. Tiger Brands makes mayonnaise in Bellville and has also invested heavily in its prepared meals plant in Cape Town. S A B M i l l e r ’s N e w l a n d s brewery is one of the busiest in the country as it is responsible for providing product for a very large geographical area. Coca- Cola bot tler and distributor Peninsula Beverage has three plants – at Parow, Athlone and Vredendal on the West Coast, and employs 1 300 people. WESTERN CAPE BUSINESS 2019


OVERVIEW

Construction and property Cape Town aims to integrate housing and transport planning.

SECTOR INSIGHT The V&A Waterfront’s Canal District is booming.

N

ew York has The Battery. Cape Town now has Battery Park, pictured. Fort Amsterdam was built in 1626 as the headquarters of the Dutch West Indies Company on what we now know as Manhattan. The Amsterdam Battery was built on Cape Town’s shores in 1784 to protect the traders of the Dutch East Indies Company from the aggressive intent of other trading powers. Two walls from the original structure have been maintained in the R300-million conversion of the site of the old Dutch fort to a public park that marks the eastern entrance to the V&A Waterfront. This is part of the larger project to expand development along the canals, which link the Waterfront with the Cape Town International Convention Centre (CITCC) and have become a focus area in themselves. Waterway House, where British American Tobacco has recently established its headquarters, is near the park, as is the Queen’s Hotel, which is undergoing a renovation. Cape Town has been experiencing a property boom for several years. However, the FNB August Property Barometer reports that the average growth in house prices in select areas such as the Atlantic seaboard (shown on the next page) and the city bowl was much lower in the second quarter of 2018 than it was in 2016. It could be argued that average growth in house prices of 27.7% (Atlantic seaboard) and 23.9% (city bowl) were so high in 2016 that those sorts of figures could not be repeated. FNB property analyst John Loos was quoted in the Sunday Times saying that “people got over-excited” and suggested that there might be an overWESTERN CAPE BUSINESS 2019

96

supply of flats in parts of the city. The CEO of development company FWJK, Dave WilliamsJones, noted that contractors’ margins were tight but said development would carry on. He also said, “Each new development is worth about 5 000 jobs.” Research shows that the demand for housing will not abate soon. Cape Town has adopted a long-term Transport Oriented Development (TOD) plan which look at housing density in conjunction with transport patterns. It is estimated that greater Cape Town will need 500 000 new homes by 2023, in addition to 3.5-million square metres of office space, one-million square metres of retail space and 4.5-million square metres of industrial development. To deal with these issues, Cape Town has established the Transport and Urban Development Authority (TDA). The TDA is charged with getting the right mix of urban development and travel patterns. With responsibility for transport, urban planning, public housing and environmental sustainability in one place, there is a better chance of “joined-up” thinking. Part of this strategy can be seen in plans for mixed housing on 13 sites in Salt River and Woodstock that the City of Cape Town has made available at 10% of market value. Social housing non-profit company Communicare has been working with the city on the project which envisages 30% of the housing stock being available for low-income households, 14% for the gap market and the rest of the houses being available on the open market.


OVERVIEW

Growth areas George on the southern Cape coast has seen some substantial new developments, including a private hospital built for Mediclinic, some new malls and a number of estates. Fancourt in George was one of the first golf estates in South Africa. In 2017 a set of new plots were offered for sale on what was described as its “prized northern slopes”. An area that continues to grow in terms of residential property is the West Coast. With mountains to the east, it is logical that areas north of Cape Town will grow: the only constraint is access to water. Blouberg, Parklands and Sunningdale continue to grow and attract good houses for residential property. The MiCiti bus route now serving the West Coast makes commuting to town much easier. Voortrekker Road in Cape Town is the subject of several interventions to encourage bulking up (businesses and residential). The Greater Tygerberg Partnership is working to provide a catalyst for new developments that will build on

ONLINE RESOURCES Cape Town Transport and Urban Development Authority: www.tda.gov.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Architects: www.saia.org.za SA Institute of Valuers: www.saiv.org.za

97

the area’s existing strengths: transport links, medical facilities, retail, motor dealerships and residential. Possible construc tion projec ts could respond to the need for student accommodation: 100 000 students are in the area. The Greater Tygerberg Partnership has done a study on students’ accommodation needs and is encouraging building owners to cater to this need. The Voortrekker Road Corridor already has services and an established built environment, but it also has some dilapidated structures and it also has lots of open spaces. In other words, it has lots of potential. A pilot scheme will turn the 22ha site of the old Conradie Hospital, which lies not far from Voortrekker Road in the suburb of Pinelands, into a housing development aligned with the provincial government’s concept of Live, Work and Play. With the state (provincial or city government) putting in the bulk infrastructure, costs for developers would be significantly reduced – the quid pro quo is that the developer must then set aside a certain number of housing units (49%) to grantfunded housing. WESTERN CAPE BUSINESS 2019


PROFILE

Maritz Electrical Delivering projects within budget, on time and to clients’ expectations, every time.

F

rom commercial electrical applications to high-end floodlights and sports stadiums and spotlights using state-of-the-art products, Maritz Electrical delivers end-to-end electrical solutions tailored to clients’ needs. Delivering service excellence and exceptional quality are key differentiators for Maritz Electrical and what clients have come to expect. Maritz Electrical is an empowerment company established by Kurt Maritz in January 2000. Maritz Electrical is BBBEE compliant (Level 1 contributor). It is ISO 9001 certified and fully compliant with the Occupational Health and Safety Act with a full-time, trained safety representative. In 2018 the company’s three branches were consolidated, with all 150 staff members now working out of a newly renovated 3 000-squaremetre factory and office facility in Athlone. The company employs full-time, licensed installation and master electricians. The company’s artisans have completed the ORHVS. Maritz Electrical places great emphasis on its WESTERN CAPE BUSINESS 2019

relationship with clients, private or commercial, and prides itself on the ability to respond to any contracting requirements in an efficient and costeffective way. Maritz Electrical aims to contribute positively to the South African economy, provide excellent workmanship and be a leader in quality service provision.

Select current projects Coetzenburg Athletics Stadium is undergoing a R40million revamp and Maritz Electrical is part of the team of contractors charged with making it happen to the highest specifications. Apart from Varsity Athletics and national championships, Stellenbosch hosted more than 150 international athletes over the summer as they prepared for the World Athletic Championships. Maritz Electrical has been contracted by the municipalities of Stellenbosch and Overstrand for electrification of large housing projects. This is a relatively new area for Maritz and one in which the company is building specialist skills.

98


PROFILE

World first

Services

In 2017, St George’s Park became the world’s first International Cricket Council-compliant, LED-lit stadium and the first such stadium to be fitted with theatrics. Maritz Electrical won the contract to install the Musco Lighting system at the venue after visiting the US with officials from Eastern Province Cricket and the national cricket board. Over four days in December 2017, the famous ground celebrated the landmark of being the first South African venue to host a day-night Test match, against Zimbabwe. The R27-million contract was completed on time and on budget by a team from Maritz Electrical led by Warren Williams. Two project managers from Musco Lighting supported the installation. The lights on top of the Duckpond Pavilion were hoisted at night, the process being illuminated by floodlight.

Maritz Electrical works closely with its customers, ensuring that the task or project is completed on time and on budget, using the highest-quality products available. In particular, Maritz Electrical has become a premier supplier and installer of dedicated sports lighting. This includes schools, universities and multi-sports stadia. The company works in all residential and commercial areas of electrical installation and maintenance. Its electrical services include project management, design, supply and installation of electrical systems including: • Electrical and reticulation services • Testing and commissioning • Wate r ana l y sis , m o ni to r in g , management and purification systems • Lighting and power • External lighting • Mechanical services integration • Emergency switchgear • HV and LV switchgear • Pre-planned maintenance.

Other flagship projects

• Cape Town Grand Parade: Re-lit with Musco

fixtures to improve the lighting level to reduce the personal crimes being committed because of poor lighting. • Cape Town Festive Lights including Adderley, Strand and Main streets: Maritz Electrical installs the popular Festive Lights. • Security lighting for waste-water treatment plants: Musco’s metal halide and LED system is the preferred product of Cape Town’s Department of Water and Sanitation and Maritz Electrical is the proud installer.

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

CONTACT DETAILS: Physical address: 11 Noll Avenue, Athlone, Cape Town 7764 Tel: +27 21 703 0867 Fax: 0864 552 436 Email: tenders@maritzelectrical.co.za Website: www.maritzelectrical.co.za

99

WESTERN CAPE BUSINESS 2019


OVERVIEW

Banking and financial services Japanese and French companies are investing.

SECTOR INSIGHT Venture capitalists are active in Cape Town.

T

he financial services sector employs more than 50 000 people and the Western Cape hosts 17 companies which are listed on the stock exchange. According to Wesgro, 75% of the venture capital deals that happen in South Africa originate in the Western Cape. Most financial firms based in Cape Town have a long history, some going back as far as 1845 when Old Mutual (pictured) started life as The Mutual Life Assurance Society of the Cape of Good Hope. But it is also a dynamic sector with several banks establishing fintech hubs in the city to try to get ahead of the innovation curve. A newcomer to the Cape financial services sector is Nomura, a Japanese financial holding company. The company intends expanding its services into Southern Africa. The new green bond issued by the City of Cape Town is a sign of the “climate change” times. South Africa’s third-ever green bond attracted bids over R4-billion on an initial offering on projects worth R1-billion. The JSE intends opening a green section to deal with the expected growth of such instruments. The lead arranger for the bond was Rand Merchant Bank. The finance and insurance sector contributes 10.9% to provincial GDP and is an area of the economy that shows consistent growth. WESTERN CAPE BUSINESS 2019

100

The sector outperforms most other sectors according to the FNB Chart Book, and further growth is anticipated. New financial services companies are starting or relocating to the Cape. These range from asset managers to hedge funds, venture capitalists and insurers. T he decision by the Johannesburg Stock Exchange (JSE) to open a JSE Exchange Hub in Cape Town confirms the city’s importance in the financial world. There are eight Cape Town-based companies in the Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers, Woolworths, British American Tobacco, Remgro, Shoprite Holdings and Sanlam. The head offices of financial firms are dotted all over Cape Town. These include Old Mutual and Foord (Pinelands), Coronation (N ew lan ds), Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns. Insurers such as Santam and Metropolitan Life are based in Bellville. Fintech is increasingly important to financial institutions.


OVERVIEW

Barclays’ app development organisation, Rise, has seven outlets around the world, including one in Woodstock in Cape Town. A French-funded fintech operation was launched at Century City in 2016. The African Institute of Financial Markets and Risk Management (AIFMRM) aims is to meet the demands for skills by developing local talent. It is supported by the Western Cape Provincial Government, the University of Cape Town, Barclays Africa Group, FirstRand and Liberty. The insurance market has become more varied over time, with a greater variety of products now available to more market segments, including middle-income earners. A typical example of a specific product that is responding to new realities is Old Mutual’s iWYZE medical gap cover, designed to pay the difference between what a medical aid scheme is willing to pay and what the hospital or doctor is charging.

Banks A number of new licences for banks are in the pipeline, with the first of these being a digital bank. The banking

ONLINE RESOURCES Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Sector Conduct Authority: www.fsca.co.za Insurance Institute of South Africa: www.iisa.co.za JSE Limited: www.jse.co.za South African Institute of Chartered Accountants: www.saica.co.za

101

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, with its roots in Stellenbosch, has since gone on to become a major player on the South African retail banking scene. It now merits inclusion in a new “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. Merchant banking and investment banking are the most competitive sectors with companies such as BoE Private Clients, Rand Merchant Bank and Investec prominent. Other applicants for new banking licences are Discovery and Post Bank, a division of the South African Post Office. Discovery is already a giant on the JSE (market value of R83-billion) with a wide range of products and services that give it 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. Banks are working hard to offer products to the previously unbanked. Nedbank has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas and also on all days of the week such as public holidays and Sundays. Standard Bank’s community-banking initiative offers a low-cost cellphonebanking service. Retailers can act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas. WESTERN CAPE BUSINESS 2019


OVERVIEW

Development finance and SMME support The Centre for Entrepreneurship has opened at False Bay TVET College.

P

rovincial government, represented by the Department of Economic Development, Agricultural and Tourism (DEDAT), and the National Empowerment Fund (NEF) have teamed up to give small business access to funding. More than R15-million has been loaned to 280 SMMEs between 2014 and 2018 by the DEDAT/NEF Enterprise Development Fund. Other partners of the provincial government include: • Deloitte, the Western Cape Funding Fair • Absa, business skills training • Pick n Pay, Township Economic Revitalisation Programme, which entails upgrading of spaza shops into mini-supermarkets. Nozinga’s market in Gugulethu has created 15 new jobs.

Using the supply chain is a good way to create new businesses and retailers like Pick n Pay, Woolworths and Shoprite invest heavily in such programmes. DEDAT’s Agri-Processing Supplier Development Programme assisted 21 businesses in the 2017/18 financial year. An investment of R2.5-million achieved good results in terms of increased turnover and job creation. Darling Sweet (pictured) has grown into a substantial business with 21 full-time staff. The annual Western Cape SMME Opportunity Roadshow showcases opportunities, allows for relevant networking and guides small businesses on how to get their products and services into the mainstream of the economy. The Roadshow, which is also held in Port Elizabeth, Durban and Johannesburg, is supported by the Department of Small Business Development. The Philippi Village Container Walk houses key-cutters, buildingmaterial suppliers, hairdressers and clothes shops. With the backing of the IDC, the two-storey creations house retail shops on the bottom floor and offices on the top floor. Several NGOs have a presence and training is available for entrepreneurs. Philippi Village is a joint venture between Business Activator and the Bertha Foundation, a global philanthropic foundation. Cape Gateway, the website of the Western Cape government, lists 50 SMME support organisations in the province. These range from the provincial trade and investment promotion agency, Wesgro, to smaller community institutions and business initiatives. Several WESTERN CAPE BUSINESS 2019

102

SECTOR INSIGHT Support funding hit the sweet spot for a Darling toffee maker. industry bodies also exist to assist SMMEs in sectors such as clothing and textiles, arts and crafts, and boatbuilding, as well as training centres in areas identified as having high unemployment and skills shortages. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include:


OVERVIEW

• • •

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 is an agency of the DSBD that gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It helps small businesses draft applications for loan finance.

Seda has established a Rapid Incubator in partnership with the Centre for Entrepreneurship (CFE) at False Bay TVET College, Westlake Campus. Intended to encourage TVET graduates to start their own businesses, the focus is on metal fabrication and furniture making. The Rapid Incubation Programme encourages innovative thinking and promotes students, entrepreneurs and potential clients to interact. Learning how to commercialise products and services is a key element of the course. Business Partners Limited is described by Seda as “one of the more successful SMME support organisations”. With a head office in central Cape Town, Business Partners is an unlisted company that offers loans, mentorship, consulting and business support. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support small businesses with growth potential across priority sectors aligned with the National Development Plan and Seda’s SMME strategy. Businesses can receive up to R1-million for training, productivity advice, business skills development and the purchase of equipment.

ONLINE RESOURCES Cape Gateway: www.capegateway.gov.za Industrial Development Corporation: www.idc.co.za National Small Business Chamber: www.nsbc.org.za PERA: www.wcpremiersawards.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za SMME Opportunity Roadshow: www.smmesa.co.za

103

The Industrial Development Corporation (IDC) is a strong supporter of SMMEs either by disbursing loans or by taking minority shares in enterprises and giving advice. 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 or something similar. All the major banks have SMME offerings. Standard Bank’s Community Investment Fund (CIF) initiative extends loans to informal businesses. The CIF has distributed more than R7-million to more than 630 businesses through its six funds in three provinces. Nedbank has an enterprisedevelopment product that supports businesses with a turnover up to R35-million with at least 25% black ownership. The Shanduka Black Umbrellas incubator helps entrepreneurs convert their good ideas to sustainable business practice. 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. The National Small Business Chamber (NSBC) has a base of over 125 000 SMEs and 50 big brands as partners. A memberbased organisation that offers benefits, the NSBC runs surveys and hosts expos, networking events and awards functions. WESTERN CAPE BUSINESS 2019


OVERVIEW

Education and training An investment company is banking on private schooling.

8

T

he private school market recently gained a new entry with the building of a Generation Education campus in Sunningdale north of Cape Town. With a Montessori-based curriculum and the backing of investment company Trematon Capital Investments, the school will initially be open for children up to 12. Trematon has exposure in the real estate market and is looking to expand the Generation Education venture. The private schooling sector is growing fast. JSE-listed ADvTECH has multiple school and tertiary brands. Schools include Abbotts College (which began in Cape Town) and Crawford College while there are several tertiary institutions in the company’s portfolio, such as Varsity College. Curro Holdings is also listed on the JSE and is rapidly growing its range of schools. It aims to have 500 schools by 2030. Curro’s tertiary brands have listed separately as Stadio, which has started with five institutions. The LEAP Science and Maths School model (pictured) is far from the JSE company model: these schools have low fees and raise funds to survive but they offer excellent teaching, particularly in mathematics, science and English. Two schools in Cape Town (and six schools in South Africa) enable children from black townships to do well enough at school in mathematics and science to go on to study engineering at university. WESTERN CAPE BUSINESS 2019

104

SECTOR INSIGHT Apprenticeships are on offer from various institutions.

Skills training The South African economy needs skilled workers. The nation’s universities have a good reputation for teaching and research and the Western Cape’s three universities and university of technology are among the best, but the focus is shifting to training young people in skills relevant to the workplace. A Centres of Specialisation Programme has been introduced


OVERVIEW through the Department of Higher Education and Training (DHET) to tackle 13 priority skills. False Bay TVET College was selected as a Centre of Specialisation with a focus on training riggers and mechanical fitters. With the oil and gas sector expected to grow rapidly in the near future, trained artisans can expect to find employment quickly. The Western Cape has further honed the priority sectors down to five and is keeping track of the young people who join its programmes. As of December 2017, 6 782 young people had registered for workplacebased programmes in 62 of the 91 occupations identified as relevant to the priority sectors. Opportunities to work as interns in provincial government departments are available. The Premier’s Advancement of Youth Project (PAY) has given work experience, a set of skills and something to put on their CV to 4 300 matriculants since 2012. Another provincial initiative was launched 2016: the Western Cape’s Apprenticeship Game Changer, which aims to introduce 32 500 qualified apprentices into the labour market by 2019. R1-billion has been allocated over a three-year time frame. Airports Company SA (ACSA), the City of Cape Town and the False Bay TVET College in Westlake have combined in an initiative to offer residents of Blikkiesdorp a chance to learn skills in brick-laying, housebuilding, scaffolding and health and education. ACSA is investing R5-million in the 12-month certification project and the Construction Education and Training Authority (CETA) will channel funds to False Bay TVET College to enable it to roll out training. SARETEC is another institution offering industry-specific training. The South African Renewable Energy Technology Centre is managed by the Cape Peninsula University of Technology (Bellville campus) but it collaborates with several other institutions and private companies. Technical and Vocational Education and Training (TVET) colleges offer a range of diplomas and short courses in many skills. False Bay TVET College has campuses in Fish Hoek, Muizenberg, Mitchells Plain, Khayelitsha and Westlake. The College of Cape Town (CCT) has nine outlets and caters to the central city. Northlink College is in the northern suburbs of Cape Town. Outside of the Cape metropole, Boland College looks after Stellenbosch, Worcester, Paarl and Caledon, while the Southern Cape College covers a wide area, from George to Beaufort West. The West Coast College also has a big catchment area. Boland College participates

ONLINE RESOURCES LEAP Science and Maths Schools: www.leapschool.org.za TVET colleges: www.tvetcolleges.co.za Western Cape Education Department: www.wcedonline.westerncape.gov.za

105

in an Expanded Public Works Programme (EPWP) run by the South African Chefs’ Association.

Tertiary education The 2018 Quacquarelli Symonds (QS) World University Rankings, ranked the University of Cape Town in the top 200 universities in the world and the top-ranked institution in Africa. The rankings are based on six indicators: academic peer review, faculty/ student ratio, citations per faculty, employer reputation, international student ratio and international staff ratio. These three institutions, plus the Cape Peninsula University of Te chnolo g y, pro duce approximately 12 000 science, technology, engineering and mathematics graduates every year and host 11 000 students from other African countries. The University of Cape Town has more than 21 500 students, 720 permanent staff and 39 A-rated researchers (40% of South Africa’s total). Stellenbosch University is linked to Stellenbosch’s growing reputation as a technology hub. The University of the Western Cape is home to several national research bodies. Universit y education is available in George through the Nelson Mandela Metropolitan University (NMMU): Saasveld is home to the School of Natural Resource Management and the York Street Campus delivers courses in business and social science, accounting and business management. WESTERN CAPE BUSINESS 2019


Apprenticeship Game Changer In 2016, as part of the Skills Game Changer Initiative, the Department of Economic Development and Tourism (DEDAT) embarked on a project aimed at the hospitality sector. The project saw learners trained in Front of House Hostess and Table Attendant skills programmes. DEDAT funded the training programme, and then partnered the Training Service Provider with Host Employers, who then offered the learners internships. It gave the host companies a chance to assess individuals in the hope of making longer-term appointments. Two individuals who stood out were Shumeez September and Megan Booysen.

In conjunction with this project, DEDAT furthered the Skills Game Changer Initiative. This resulted in piloting National Artisan Recognition of Prior Learning (ARPL) toolkits for apprentices who had been identified for Trade Tests. Shumeez September Shumeez joined Quay 4 in November 2016 as part of the Hostess Skills Programme. She started on the door as a hostess. She was very quiet and shy when she joined the company, but quickly found her feet and began standing out for her hard work and dedication. She was placed on Tourvest’s Management Development Programme. She is currently working as a Junior Manager at Quay 4 Tavern at the V&A Waterfront.

Megan Booysen Megan joined Quay 4 in November 2016 as part of the Table Attendant Skills Programme. She worked hard and was quickly promoted to being a waitress after passing the company’s waitron test. She is still employed at Quay 4 Tavern.

DEDAT also undertook an accelerated RPL intervention, with the aim of providing access to RPL gap training. This culminated in a Trade Test application, based upon the implementation of the ARPL toolkit in a particular trade. The project was required to focus on toolkits registered with the Quality Council for Trades and Occupations (QCTO), through the National Artisan Moderating Body (NAMB). After discussion with working group members and NAMB, it was decided to use the provisional toolkits for Motor, Diesel and Welding. The project targeted 30 candidates: 10 in Motor Mechanics, 10 in Diesel Mechanics and 10 in Welding.

One of the participants was Jeffrey Flandorp, a self-employed, semi-skilled motor mechanic. Jeffrey proved to be one of the best candidates in the programme. He was actively engaged in assisting and supporting his fellow participants in the course of the training, and ultimately was a catalyst in some of them achieving success in the programme.


With an apprentice on your team, you can add value to your reputation as an empowering enterprise and improve your company’s B-BBEE scorecard. Taking on an apprentice just got simpler. Contact the Red Tape Reduction Unit on redtape@westerncape.gov.za.

Making things simpler BETTER TOGETHER.


PROFILE

False Bay TVET College A gateway to employment, higher education and self-improvement.

About the College

False Bay TVET College is rated one of the best Technical and Vocational Education and Training (TVET) colleges in the country. False Bay TVET College operates five well-resourced campuses located in the South Peninsula, Mitchells Plain and Khayelitsha, which collectively have an enrolment of around 11 000 students. False Bay TVET College has been extending its reach, embracing new communities and welcoming industries for over 15 years, while building on its long-term commitment to promoting the TVET sector. The College has strong ties with industry and the communities it serves and maintains strategic partnerships with government, the SETAs, industry bodies and both local and international educational institutions. The College’s growth is underpinned by strong leadership, sound administration systems and controls that were recognised when the College received the PFMA Clean Audit Award for 2016/2017. False Bay TVET College understands and promotes the important role of employers in providing workplace experience, internship and employment opportunities to College students and graduates. Private and Public organisations now recognise WESTERN CAPE BUSINESS 2019

that the only way to assist young people to gain work experience and increase their employability is through engaging with them and opening up workplace opportunities. False Bay TVET College courses:

• Business Studies • Engineering Studies • Hospitality and Tourism • Information Communication Technology • Education Studies • Yacht and Boat Building • 2D Animation • Safety and Security

108

CONTACT DETAILS Central Office: +27 21 787 0800 Muizenberg: +27 21 788 8373 Mitchells Plain: +27 21 391 0717 Fish Hoek: +27 21 782 0144 Khayelitsha: +27 21 361 3430/360 5000 Westlake: +27 21 701 1340 Website: www.falsebaycollege.co.za


FOCUS

Improving the prospects of employment False Bay TVET College offers relevant programmes.

False Bay T VET College offers vocational, occupational and skills training programmes that provide students with scarce and critical skills and practical experience in fields that present good prospects of employment. All College programmes are examined and certified nationally. The College has a special focus on apprenticeship training in the following trades: Electrical, Motor Mechanics, Welding and Fabrication, Fitting and Turning, Automotive Body Repair, Spray-Painting, Masonry, Plumbing, and Carpentry and Joinery. Courses are also offered in Business Management, Information and Communication Technology, Hospitality, Engineering, Tourism, Yacht and Boat Building, Safety in Society, 2D Animation and Education Studies. The College offers alternative modes of teaching and training, including part-time classes and distance learning options. Work-Integrated Learning (WIL)

Work-Integrated Learning extends learning to the workplace in a structured programme, integrating theoretical knowledge learnt in the classroom and its practical application in the workplace. The College employs five dedicated WIL Officers who provide graduates with work-placement support. This service helps connect students to internship opportunities and prepares them for the world of work via the work-readiness programme.

• Access to mandatory and discretionary SETA benefits

• Relief staff, enabling the release of full-time staff for training and upskilling. Improving staff retention and the job satisfaction rate • Indirect marketing opportunities • Informal endorsement as a preferred supplier.

Having successfully placed 92% of all graduates in 2017, the WIL Department invites more companies to register as host employers.

Among the special benefits for participating companies, regardless of the sector they operate in, are:

CONTACT DETAILS Work-Integrated Learning Department: +27 21 787 0800 Email: jobplacement@falsebay.org.za Website: www.falsebaycollege.co.za

• Improving their company B-BBEE scorecards • Increasing business opportunities

109

WESTERN CAPE BUSINESS 2019


PROFILE

College of Cape Town for TVET The College is a public Technical and Vocational Education and Training (TVET) College, under the Department of Higher Education and Training. Qualifications offered are accredited, affordable and quality assured by Umalusi, various SETAs and SAQA.

Mission

in high demand by commerce and industry. The College is also a Centre of Specialisation for Plumbing and Automotive Motor Mechanic trades, as well as an accredited trade test centre for numerous trades.

We are committed to being an institution of excellence that develops the potential of clients through quality education and training in response to the skills development needs of the country.

Facilities

Vision

The College is situated in the central area of the Peninsula with campuses located in Athlone, City centre, Crawford, Gardens, Guguletu, Pinelands, Thornton and Wynberg. The Central Office is located in Salt River, Cape Town. The College of Cape Town also has three residences.

College of Cape Town will be the preferred provider of Technical and Vocational Education and Training.

Educational offerings The College is a leading provider of education and training in mainly the Technical and Vocational Education and Training (TVET) band and has much to offer students and prospective partners as an alternative to Basic and Higher Education and Training. Qualifications include skills programmes, technical, vocational and occupational training that lead to recognised, accredited qualifications that are

CONTACT DETAILS Key contact people: Louis van Niekerk, Principal Wilfred Jackson, Chief Financial Officer Deon Halls, Acting Deputy Principal: Innovation & Development Tel: +27 21 404 6700 | 086 010 3682 Fax: +27 21 404 6701 | 086 615 0582 Email: info@cct.edu.za Physical address: 334 Albert Road, Salt River, Cape Town 7945 Postal address: PO Box 1054, Cape Town 8000 Website: www.cct.edu.za

WESTERN CAPE BUSINESS 2019

Key facts and figures The College of Cape Town is the oldest Technical and Vocational Education and Training Institution in South Africa with a proud history dating back to the beginning of the 20th century. Four former technical colleges, Athlone College, Cape College, Sivuyile College and Western Province Technical College, were officially merged on 1 February 2002 to become the College of Cape Town. • No of staff: 760 • No of registered students: 15 398 Faculties: Art and Design, Beauty Therapy, Building and Civil Engineering, Business Studies, Education and Training, Electrical Engineering, Haircare, Hospitality, Information and Communication Technology, Mechanical Engineering, Travel and Tourism. Qualifications offered: Certificates, Higher Certificates, Diplomas, UNISA B.Ed Degree (Foundation Phase), Skills Programmes, Learnerships, Accredited Trade Test Centre.

110


OVERVIEW

Business Process Outsourcing New jobs are coming on line.

SECTOR INSIGHT Training is a key reason for the Western Cape’s attractiveness.

T

here were 7 500 more people working in the offshore segment of the business process outsourcing sector (BPO) in the Western Cape in 2017 than there were just two years earlier. Altogether, BPO employs more than 50 000 people in the province, against about 228 000 in South Africa as a whole. This is according to the Key Indicator Report of Business Process enabling South Africa (BPeSA), the national organisation with representation in the nation’s three biggest cities. Sixty-three percent of the offshore market is in the Western Cape where the provincial government has identified BPO as one of the six key sectors that can create jobs quickly. Western Cape authorities are acting on this by supporting training programmes. The City of Cape Town, the provincial Department of Economic Development, Agriculture and Tourism (DEDAT) and IT service management company EOH jointly sponsor the training and 12-month learnerships of 175 unemployed work-seekers in BPO. The municipality also trains 20 potential team leaders to build management skills within the sector. BPO involves any internal functions that a company chooses to outsource to a specialist in that field, for example accounting or callcentres (also known as customer service centres). One interesting example relates to loading an aeroplane’s freight load – in Frankfurt. The loader does this in the Western Cape via remote cameras and weighing machines. After work the loader can visit the beach. UK shop

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

WESTERN CAPE BUSINESS 2019

112

Asda and online retailer Amazon have large customer service centres in Cape Town. The fact that greater Cape Town is home to three wellregarded universities, a university of technology and two technical colleges is a major advantage in attracting companies with sophisticated operations, such as BPO. A director of a British business intelligence company, S-RM, told the Weekend Argus that Cape Town’s position as a “knowledge nexus” was a major factor in deciding to open an office in the city. Other factors in favour of Cape Town are the relatively neutral accents, good infrastructure (financial and telecommunications) and the time zone being the same or close to Europe’s. The Department of Trade and Industry (dti) offers incentives to BPO investors. A base incentive is calculated on projected offshore jobs to be created and is awarded on actual offshore jobs created. The incentive has a two-tier structure of noncomplex and complex jobs and is paid over a five-year period. A bonus incentive becomes payable at the end of the fiveyear period.


OVERVIEW

ICT Amazon and Microsoft have chosen Cape Town.

SECTOR INSIGHT The Khayelitsha Bandwidth Barn is producing innovative thinkers.

C

ape Town has the potential to be a world leader in technology. That is according to Savills, which identified 22 such cities in its “Tech Cities 2017” global survey. Amazon Web Services (AWS) will set up a data centre in Cape Town in 2020 to serve Sub-Saharan Africa. Microsoft Azure data centres were due to open in Cape Town and Johannesburg in late 2018 or early 2019. The French government has officially designated the city as one of six global French Tech Hubs. French Tech Labs is a fintech incubator, offering mentoring for innovators, connections to possible investors and a chance to travel to France. Barclays Bank has invested in a fintech incubator in Cape Town, Rise. There are six other Rise sites around the world, including New York and Mumbai. Ambitious targets to roll out broadband coverage across the province have been reached by the Provincial Government of the Western Cape. More than 1 400 schools and libraries and about 400 other public facilities have access to full broadband coverage.

ONLINE RESOURCES Cape Innovation and Technology Initiative: www.citi.org.za French South African Tech Labs: fsatlabs.co.za Independent Communications Authority: www.icasa.org.za Silicon Cape: www.siliconcape.com

113

In her State of the Province Address in 2018, Premier Helen Zille also noted that 178 WiFi hotspots had been created, with plans in place to turn the broadband sites into hotspots. Libraries have been at the centre of expanding access: 222 rural libraries with 1 076 computer workstations offer free Internet access. There are also 70 Cape Access Centres and eight Youth Cafés where young people can use the Internet to look for career guidance and opportunities. The former MEC for Economic Development, Agriculture and Tourism (DEDAT), Alan Winde, will follow Zille as premier if the DA wins the next election. As DEDAT MEC, Winde oversaw the establishment of the I-CAN centre in Elsies River, a trial run for using a communitybased approach to teaching digital skills. It has been hugely successful and DEDAT is aiming to roll the concept out in other municipalities such as Agulhas. ICT has also been front and centre of initiatives in schools. One example is the Khayelitsha Bandwidth Barn, a township tech incubator supported by DEDAT, and where young people like Zintle Masoko, winner of a full TedX scholarship, have a chance to shine. In 2017, Ed-Tech set up its first business incubator in Africa in Cape Town. The Cape Innovation and Technology Initiative (CiTi, pictured) is another support system for the ICT sector. There are 2 000 ICT firms in the Western Cape and they have 17 000 employees. WESTERN CAPE BUSINESS 2019


LISTINGS

Western Cape Provincial Government An overview of the Western Cape’s provincial government departments.

Office of the Premier Premier: Ms Helen Zille Provincial Legislature Building, 1st Floor, 7 Wale Street, Cape Town 8000 Tel: 0860 142 142 Fax: +27 21 483 7216 Email: service@westerncape.gov.za Web: www.westerncape.gov.za/dept/ department-premier

Western Cape Education Department MEC: Ms Debbie Schäfer Grand Central Towers, Lower Parliament Street, Cape Town 8001 Tel: +27 21 467 2000 Fax: +27 21 467 2996 Web: http://wced.school.za

Department of Agriculture MEC: Ms Beverley Schafer Admin Building, Muldersvlei Road, Elsenburg 7607 Tel: +27 21 808 5111 | Fax: +27 21 808 7605 Web: www.elsenburg.com

Department of Environmental Affairs and Development Planning MEC: Mr Anton Bredell 8th Floor, 1 Dorp Street, Cape Town 8000 Tel: +27 21 483 4091 Fax: +27 21 483 3016 Web: www.westerncape.gov.za/eadp

Department of Community Safety MEC: Mr Alan Winde 35 Wale Street, Cape Town 8000 Tel: +27 21 483 6949/8588 | Fax: +27 21 483 6591 Web: www.westerncape.gov.za/dept/ community-safety

Department of Health MEC: Dr Nomafrench Mbombo 21st Floor, 4 Dorp Street, Cape Town 8000 Tel: +27 21 483 3245/5417 Fax: +27 21 483 6169 Web: www.westerncape.gov.za/dept/health

Department of Cultural Affairs and Sport MEC: Ms Anroux Marais Protea House Building, 7th Floor, Greenmarket Square, Cape Town 8000 Tel: +27 21 483 9503 | Fax: +27 21 483 9504 Web: www.westerncape.gov.za/dept/cas

Department of Human Settlements MEC: Mr Bonginkosi Madikizela 27 Wale Street, Cape Town 8001 Tel: +27 21 483 6488 Fax: +27 21 483 4785 Web: www.westerncape.gov.za/dept/ human-settlements

Department of Economic Development and Tourism MEC: Ms Beverley Schafer 11th Floor, NBS Waldorf Building, 80 St George’s Mall, Cape Town 8001 Tel: +27 21 483 5065 | Fax: +27 21 483 7527 Web: www.westerncape.gov.za/dept/edat WESTERN CAPE BUSINESS 2019

Department of Local Government MEC: Mr Anton Bredell 8th Floor, Waldorf Building, 80 St George’s Mall, Cape Town 8001 Tel: +27 21 483 4049/4997 | Fax: +27 21 483 4493 Web: www.westerncape.gov.za/dept/local-government

114


LISTINGS

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

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

Provincial Treasury MEC: Dr Ivan Meyer 3rd Floor, 7 Wale Street, Cape Town 8000 Tel: +27 21 483 4237 | Fax: +27 21 483 3855 Web: www.westerncape.gov.za/dept/treasury

Department of Transport and Public Works MEC: Mr Donald Grant 8th Floor, 9 Dorp Street, Cape Town 8000

Western Cape Local Government A guide to the metropolitan, district and local municipalities in the Western Cape.

CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY Address: Civic Centre, Podium Block, 6th Floor, 12 Hertzog Boulevard, Cape Town 8000 Tel: +27 21 400 1300 | +27 21 400 1313 Fax: 0860 103 090 Website: www.capetown.gov.za

Witzenberg Local Municipality Tel: +27 23 316 1854 | Fax: +27 23 316 1877 Website: www.witzenberg.gov.za CENTRAL KAROO DISTRICT MUNICIPALITY Address: 63 Donkin Street, Beaufort West 6970 Tel: +27 23 449 1000 | Fax: +27 23 415 1253 Website: www.skdm.co.za

CAPE WINELANDS DISTRICT MUNICIPALITY Address: 46 Alexander Street, Stellenbosch 7599 Tel: 086 126 8263 | Fax: +27 21 888 5100 Website: www.capewinelands.gov.za

Beaufort West Local Municipality Tel: +27 23 414 8100 | Fax: +27 23 414 8105 Website: www.beaufortwestmun.co.za

Breede Valley Local Municipality Tel: +27 23 347 3671 | Fax: +27 21 883 8871 Website: www.bvm.gov.za

Laingsburg Local Municipality Tel: +27 23 551 1019 | Fax: +27 23 551 1019 Website: www.laingsburg.gov.za

Drakenstein Local Municipality Tel: +27 21 807 4500 | Fax: +27 21 872 8054 Website: www.drakenstein.gov.za

Prince Albert Local Municipality Tel: +27 23 541 1320 | Fax: +27 23 541 1321 Website: www.princealbertmunicipality.com

Langeberg Local Municipality Tel: +27 23 615 8000 | Fax: +27 23 615 1563 Website: www.langeberg.gov.za

GARDEN ROUTE DISTRICT MUNICIPALITY Address: 54 York Street, George 6530 Tel: +27 44 803 1300 Fax: 086 555 6303 Website: www.gardenroute.co.za

Stellenbosch Local Municipality Tel: +27 21 808 8111 | Fax: +27 21 808 8003 Website: www.stellenbosch.gov.za

115

WESTERN CAPE BUSINESS 2019


LISTINGS G ro

R 27

Carnarvon

Loeriesfontein

Northern Cape Fish

Sout

So u Dassen Island

Malmesbury

Melkbosstrand TableDurbanville Bay

Robben Island (World Heritage Site)

R44

N1

R43

Le eu w

Buffels

Laingsburg Matjiesfontein Touwsrivier Ladismith Tou ws

R45 Wellington Worcester Paarl Rawsonville R60

Montagu

R62

Groot

ede

Infanta

R 43

Arniston

Gansbaai Quoin Point

Hessequa Local Municipality Tel: +27 28 713 8000 | Fax: 086 713 3146 Website: www.hessequa.gov.za

Sou t

Klipplaat Willowmore

Struisbaai

Struisbaai

Bay

Gro

ot

s Olifant

Calitzdorp

De Rust

R62

Oudtshoorn

N12

Uniondale R 62

N9

K o u ga

George

SedgefieldKnysna

Herolds Bay Mossel Bay

Vleesbaai

Joubertina Kareedouw

R43

Walker Bay

Sun d

Eastern Cape

Leeu-Gamka

Prince Albert

Barrydale R62 Franschhoek Robertson Ashton Swellendam Villiersdorp CAPE TOWN Riversdale Stellenbosch Genadendal Somerset Heidelberg Grabouw Fish Hoek West N2 N2G Riviersonderend ou Gordon's Bay rit Simon's Town s Caledon False R44 Stillbaai Hermanus Cape Bay Kleinmond Point Bredasdorp Cape St Sebastian Bre

Motorway Main Road Railway

N1

N9

Gamk a

Moorreesburg R45 R 44 Tulbagh R 46 Riebeek West Ceres Darling

Graaff-Reinet Aberdeen

R 61

N12

s ay

Western Cape

R44

N7

yka Dw

Piketberg R45

Prince Albert Road

R 63

Kariega

wa nk Ta

N

Three Sisters

Fraserburg

Beaufort West

Citrusdal

R79

oei

Richmond

R63

Riet

Sutherland

Velddrif

R27 Langebaan

N1

Calvinia

Cederberg

R27

ek

Victoria Wests

Loxton

Clanwilliam

ATLANTIC OCEAN

George Local Municipality Tel: +27 44 801 9111 | Fax: +27 44 801 9105 Website: www.george.gov.za

Williston

R 63

r

R 27

R27

Vanrhynsdorp

R27

Vredendal R27

Saldanha Bay

R63

Nieuwoudtville

Se

Hanover

N12 R63

t

Lambert's Bay

Paternoster Vredenburg Saldanha

N10

R 63

Sak

N7

De Aar

en

Kliprand

Groen

St Helena Bay

N2

Plettenberg Stormsrivier Bay

Cape St Francis

INDIAN OCEAN 0 0

100 km 100 miles

Cape Agulhas

Swellendam Local Municipality Tel: +27 28 514 8500 Fax: +27 28 514 2694 Website: www.swellenmun.co.za

Kannaland Local Municipality Tel: +27 28 551 1023 | Fax: 086 551 1766 Website: www.kannaland.gov.za

Theewaterskloof Local Municipality Tel: +27 28 214 3300 Fax: +27 28 214 1289 Website: www.twk.org.za

Knysna Local Municipality Tel: +27 44 302 6300 | Fax: +27 44 302 6333 Website: www.knysna.gov.za

WEST COAST DISTRICT MUNICIPALITY Address: 58 Long Street, Moorreesburg 7310 Tel: +27 22 433 8400 | Fax: 086 692 6113 (SA only) Website: www.westcoastdm.co.za

Mossel Bay Local Municipality Tel: +27 44 606 5000 | Fax: +27 44 606 5062 Website: www.mosselbay.gov.za

Bergrivier Local Municipality Tel: +27 22 913 6000 | Fax: +27 22 913 1406 Website: www.bergmun.org.za

Oudtshoorn Local Municipality Tel: +27 44 203 3000 | Fax: +27 44 203 3104 Website: www.oudtshoorn.gov.za

Cederberg Local Municipality Tel: +27 27 482 8000 | Fax: +27 27 482 1933 Website: www.cederbergmun.gov.za

OVERBERG DISTRICT MUNICIPALITY Address: 26 Long Street, Bredasdorp 7280 Tel: +27 28 425 1157 Fax: +27 28 425 1014 Website: www.odm.org.za

Matzikama Local Municipality Tel: +27 27 201 3300 | Fax: +27 27 213 3238 Website: www.matzikamamun.co.za

Cape Agulhas Local Municipality Tel: +27 28 425 5500 | Fax: +27 28 425 1019 Website: www.capeagulhas.gov.za

Saldanha Bay Local Municipality Tel: +27 22 701 7000 | Fax: +27 22 715 1518 Website: www.sbm.gov.za

Overstrand Local Municipality Tel: +27 28 313 8000 Fax: +27 28 312 1894 Website: www.overstrand.gov.za

WESTERN CAPE BUSINESS 2019

Britstown

Brandvlei

Garies

WESTERN CAPE PROVINCE

ge On

Bitou Local Municipality Tel: +27 44 501 3000 Fax: +27 44 533 6198 Website: www.plett.gov.za

Swartland Local Municipality Tel: +27 22 487 9400 | Fax: +27 22 487 9440 Website: www.swartland.org.za

116


The Black Management Forum The BMF is a thought leadership organisation founded in 1976, with the main purpose of inuencing socio-economic transformation of our country, in pursuit of socio-economic justice, fairness and equity. The organisation stands for the development and empowerment of managerial leadership amongst black people within organisations and the creation of managerial structures and processes, which reect the demographics, and value of the wider society.

For detailed information on how to become a member, please contact Thulisile Simelane. Email: thulisile@bmfonline.co.za

www.bmfonline.co.za

BMFNational@

BMFNational

@BMFNational


INTERVIEW

Cape Winelands District Municipality Executive Mayor Alderman (Dr) Helena von Schlicht outlines some of the unique advantages that make the Cape Winelands District such an attractive destination for tourists and for business investment.

Dr Helena von Schlicht

What is the CWDM focus as a District Municipality?

The goal of the Municipality is to deliver on the mandated functions as specified in the Municipal Systems Act. However, in order to achieve our vision of a unified district of excellence for sustainable development, the council’s focus remains firmly in identifying and growing opportunities for social and economic development. The Cape Winelands District Municipality (CWDM) fulfills its mandate in a way that enables our citizens and visitors to travel and eat safely and to enjoy the biodiversity of the area. We are a highly functional municipality, this is confirmed by the number of awards we have won. These include four consecutive clean audits, national accolades for our Municipal Health Services Division for their role in the prevention of listeriosis in the district as well as Fire Services for protection of property during the last fire season.

BIOGRAPHY Dr Helena von Schlicht honed her skills during a 24-year career in higher education. After earning her doctorate, she worked as Head of Department, Social Work, at the Huguenot College in Wellington. In this capacity, she was involved in the writing and implementation of policies. She transferred to the political arena in 2009 and became a member of the Mayoral Committee in 2011. She has been Executive Mayor since the election of September 2016. WESTERN CAPE BUSINESS 2019

How does the organisation address local economic and social development?

The planning and funding of our projects is determined by our Integrated Development Plan (IDP). This plan is compiled after consulting with communities and service organisations. We will not develop economically if we do not have an efficient, healthy and resilient community. Our selffunded programmes include projects that support Early Childhood Development, skills development and sport. Sport development is a large function of the unit. The Municipality hosts a variety of sports events, soccer, rugby sevens, dominoes and tug-of-war and even indigenous games. Other programmes include seed funding for young entrepreneurs and activities for disabled persons. Economic development depends on the social health of our citizens, to ensure success we need to address both issues at the same time. We want to empower people and enable them to enter the economy, create jobs, support their families and contribute to the overall prosperity of society. When someone has a strong and healthy sense of social cohesion, it’s easier for them to participate in the economy.

118


INTERVIEW The 2018/19 winners included wine destinations like La Motte, Val du Charron and the home of the Wellington Park Run, Imbuko Wines. In the category Service Excellence, @FourCousins (Robertson), Wolseley’s Big Sky Cottages and the Cape Dutch Quarter in Tulbagh walked away with the accolades. The Route 62 Craft Beer Brewery and Waffle House in Montagu was recognised for entrepreneurial spirit, while the University of Stellenbosch Museum received an award for its role in sustainable development. The South African Cheese Festival and the Montagu Makietie were Festival winners. The Mayor’s Discretionary Award was issued to the Protea Farm Tractor Rides. This destination offers a unique experience to visitors, including those in wheelchairs, by taking a tractor to the top of the Langeberg, from where, on a good day, one can see the ocean. After a fun trip down the mountain, visitors enjoy award-winning ‘potjiekos’ prepared by 10 local ladies. How important are the functions of the various divisions?

The Technical Services Division is responsible for the maintenance of approximately 3 700km of rural and gravel roads, while Fire Services, in partnership with Cape Nature and the Fire Protection Association, ensures that fauna, flora, human and animal life and property are protected from fires. Approximately 1 500 wild or veld fires are extinguished per fire season. The division of Municipal Health Services deploys environmental health practitioners (EHPs) to ensure that all food and drink suppliers are certified and comply with regulations at all stages of the manufacturing process.

What makes the CWDM so special?

The quality of life. We are proud to say that this is one of the most visited regions for domestic and international tourists. There is something for everyone here in the beautiful Cape Winelands. There are 1 000 things to do... and then some wine!

Tell us about the annual Mayoral Tourism Awards.

One proven method of developing economic opportunities is through the tourism industry. To acknowledge the valuable inputs of the tourism sector, the CWDM issues a Mayoral Tourism Award to tourism entities that welcome guests in a way that keeps them returning.

119

WESTERN CAPE BUSINESS 2019


INDEX

INDEX

Accelerate Cape Town.....................................................................................................................................................................................34 Africa Biomass Company............................................................................................................................................................................57-59 Black Management Forum (BMF)................................................................................................................................................................117 Breede-Gouritz Catchment Management Agency (BOCMA).........................................................................................................93 Cape Chamber of Commerce & Industry.................................................................................................................................. 4, 32, 38 Cape Town International Convention Centre (CTICC) ........................................................................................................................ 52 Cape Town Stadium.................................................................................................................................................................................. 26-29 Cape Winelands District Municipality...................................................................................................................................................2, 118 College of Cape Town................................................................................................................................................................................7, 110 False Bay TVET College................................................................................................................................................................................44, 108 Global Africa Network.......................................................................................................................................................................................... 9 Invest Cape Town...................................................................................................................................................................................................22 Maritz Electrical..............................................................................................................................................................................................50, 98 Nedbank.........................................................................................................................................................................................................62-67 Petroleum Agency​South Africa..................................................................................................................................................................... 89 SA Airlink ............................................................................................................................................................................................................... 13 Selfmed ............................................................................................................................................................................................................ 11, OBC South Africa Table Grape Industry (SATI).............................................................................................................................................82 Superfecta Trading.......................................................................................................................................................................................60, 86 Vinpro ....................................................................................................................................................................................................................... 81 Vodacom...................................................................................................................................................................................................68-73, IBC Wesgro................................................................................................................................................................................................................... 24 Western Cape Business Opportunities Forum (WECBOF)......................................................................................................... 36 Western Cape Department of Economic Development and Tourism....................................................................20, 30, 106 West Coast District Municipality.............................................................................................................................................................IFC WESTERN CAPE BUSINESS 2019

120


Plan for the unplanned. Get medical aid cover.

Meet Joe. His smart phone is insured. His body? Not so much. Don’t be like Joe. Get cover that matters. Get medical aid.

!

SMS “SAmed” to 45738 today!

Western Cape Business 2019  

A unique guide to business, investment and tourism in the Western Cape. The 2019 edition of Western Cape Business is the 12th issue of this...

Western Cape Business 2019  

A unique guide to business, investment and tourism in the Western Cape. The 2019 edition of Western Cape Business is the 12th issue of this...

Advertisement