WESTERN CAPE BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN THE WESTERN CAPE PROVINCE
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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 complete region offers a large variety of world-class tourism attractions, leisure activities and events. These include bouldering, hiking, kite surfing, surfing, skydiving, paragliding, cycling, canoeing, birding, music festivals, arts, culture, heritage and of course the unrivalled West Coast flowers. Country life at its best â€“ topped off with local brews and great wine. A great place to live, work and play. Swartland Municipality Lower cost structures, a productive workforce and less risk than the Cape Town metro provide businessess here with a competitive advantage in their markets. 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. Similar to growth patterns of towns on the outskirts of cities worldwide, both businesses and citizens will increasingly view the Swartland as a good place to locate. Investment growth is expected from sectors such as protein, dairy, agroprocessing, transport, logistics, retail, services and construction sectors. www.swartland.org.za Bergriver 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. www.bergmun.org.za
Cederberg Municipality Blessed by nature, rich in heritage and warm-hearted people, this a great place for tourism all year round. Cederberg boasts a beautiful and varying landscape that includes mountains, valleys and coastline with a multitude of attractions and activities. 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. Unutilised fertile lands can then be irrigated to produce high yields to boost agricultural output. www.cederbergmunicipality.co.za
SALDANHA BAY Moorreesburg
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
If you have your eye on growth, you should invest on the West Coast! Find out more at www.westcoastdm.co.za
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CONTENTS Western Cape Business 2017 Edition
Western Cape Business is a unique guide to business, investment and tourism in the Western Cape. Growth strategy is paying off
Alan Winde, Western Cape Provincial Minister of Economic Opportunities, explains how Project Khulisa will impact the province.
Special features Regional overview
Tourism and technology are boosting the Western Cape economy and Brexit offers new opportunities for investors. Down-town boom town, Cape Town
A number of high-visibility construction projects are under development in the Cape Town CBD and surrounds. South African economy at a glance
Insight into the performance of the South African economy is provided through these graphical representations of key statistics. WESTERN CAPE BUSINESS 2017
CONTENTS Special Economic Zones
Dedicated development hubs on the West Coast are tapping into the potential of two of the fastest-growing economic sectors in Southern Africa â€“ oil and gas and manufacturing for the renewable energy sector. Skills development
A number of investors are driving skills development in the province.
Economic sectors Agriculture
Processing plants boost rural employment. Wine and grapes
China is importing the fruits of the Western Capeâ€™s vineyards. Fishing
More fish, fewer chips following the sale of Lamberts Bay Foods. Mining
The sands of the West Coast are giving up their riches. Oil and gas
The Western Cape Government is hoping to exploit opportunities related to the gas sector. Energy
Manufacturing in the renewable energy sector is taking off in Atlantis. Water
Farms and factories are becoming water wise. Manufacturing
Diesel locomotive engines are powering up in Montague Gardens. Construction and property development
Construction is on the rise in the Western Cape.
WESTERN CAPE BUSINESS 2017
UIF SAVING JOBS
THROUGH SOCIALLY RESPONSIBLE INVESTMENTS
The National Development Plan is a blueprint serving as a guideline to government departments and state entities on how they can play a role in government wide efforts of creating decent work, reducing unemployment and poverty. The Unemployment Insurance Fund is among the leading state entities in the implementation of the provisions of the NDP to address the slow economic growth, unemployment and poverty in South Africa. The UIF social investment mandate ensures that, additional to earning good financial returns, investments must be supportive of long term economic, social and adhere to sustainable environmental outcomes. The investments must also yield a good social return for the country. These investments have sustained 6 860 jobs of which 3 024 are permanent, 3 836 are temporary/seasonal and 195 are new jobs created during the financial year ending in March 2016.
UIF INVESTMENTS IN RENEWABLE ENERGY The UIF investments are contributing to the energy requirements of South Africa and the investments in the renewable energy sector provides a total capacity of 192 megawatt of electricity of which 117 megawatt is solar energy and 27 megawatt is wind generated electricity. The De Aar project is a shining example of the UIF energy investments and this project produces 90 megawatt of electricity and was completed in April 2016. The solar plant in the area generates enough electricity to power 15 000 houses. Another mainstay project is the Phakwe Group ran projects undertaken in the Northern and Eastern Cape.
INVESTMENT IN FOOD SECURITY The UIF investments in this regard are undertaken under the banner of the UIF Agri-Fund in partnership with Futuregrowth and Day Breaker Poultry Project. The UIF Agri-Fund has invested in 4 farms situated in Mable Hall in Limpopo. One of the farms is a cash crop farm spanning 450 hectares. The farm in the last financial year produced 235 hectares of white maize, and cotton was planted in an area covering 28 hectares. A further three farms are located in the Saron area in the Western Cape. In this project a total of 178 hectares has been used to plant grapes, 37 hectares has been used to pant citrus fruit. Furthermore, there is potential to plant an additional 92 hectares of grapes. The Daybreaker Poultry project operates in Gauteng, Limpopo and Mpumalanga and the combined projects have facilities to grow 1.6 million broiler chickens.
INVESTMENTS IN HEALTH CARE FACILITIES The UIF concluded two investments in this regard that include a BEE hospital manager, Busamed to build a private hospital in Modderfontein and Fund Manager Razorite Heatlhcare that focus on the provision of affordable heathcare facilities that include rehabilitation and sub-acute centres. The Modderfontein hospital is a 220 hospital bed with subacute facilities. This hospital is under construction. While the RH Fund Manager has concluded seven investments that include: • Busamed with four hospital facilities • HealthMed with two facilities
INVESTMENTS IN EDUCATION UIF has invested in three investments that play a role to unlock access to education. The investments were concluded with Eduloan – an organisation that provides financial support to tertiary students and South Point and Educor organisations that provide student accommodation. By March 2016, Eduloan had disbursed about R446 986.64 benefiting 34 047 students, whiles South Point provided about 10 000 student with accommodation.
UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT The UIF has concluded two investments with the aim of supporting small and medium enterprises. In this regard the PIC on behalf of UIF has concluded investment deals with Musa Capital and TOSACO. The investments will support more than 250 SMMEs across various sectors inclusive of agriculture and affordable housing. Musa Capital for example has a supply chain of over 250 SMME’s that have facilitated the creation of 2 500 jobs. TOSACO investments is planning to advance capital to young black entrepreneurs who aspire to own and manage Total Filling stations around the country.
For more information: Call: 0800 843 843 or visit: www.labour.gov.za
New flights are bringing greater numbers of tourists to the Western Cape. Banking and financial services
The JSE has opened an Exchange Hub in Cape Town. Information and communications technology
Cape Town is attracting ICT investment. Business process outsourcing
Offshoring – foreign BPO contracts – is growing.
Government South African National Government
An overview of South Africa’s national government departments. Western Cape Provincial Government
An overview of the Western Capes Provincial Government departments. Western Cape Local Government
An overview of the Western Cape municipalities.
Reference Sector contents
Maps R 27
Moorreesburg R27 Langebaan R45 R 44 Tulbagh R 46 Riebeek West Ceres Darling
Melkbosstrand TableDurbanville Bay
Robben Island (World Heritage Site)
Le eu w
Laingsburg Matjiesfontein Touwsrivier Ladismith Tou ws
R45 Wellington Worcester Paarl Rawsonville R60
WESTERN CAPE BUSINESS 2017
Klipplaat Prince Albert
Uniondale R 62
K o u ga
Herolds Bay Mossel Bay
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
Prince Albert Road
Sutherland wa nk Ta
Paternoster Vredenburg Saldanha
St Helena Bay
Western Cape municipal map.
WESTERN CAPE PROVINCE Groen
Western Cape provincial map.
Western Cape locator map.
Plettenberg Stormsrivier Bay Cape St Francis
INDIAN OCEAN 0 0
100 km 100 miles
CREDITS Publisher: Chris Whales Publishing director: Robert Arendse Editor: Simon Lewis Writing: John Young and Karen KĂźhlcke Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter Production: Lizel Olivier Ad sales: Sam Oliver, Gabriel Venter, Jeremy Petersen, Nigel Williams and Sydwell Adonis Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution and circulation: Edward MacDonald
Western Cape Business A unique guide to business and investment in the Western Cape.
he 2017 edition of Western Cape Business is the 10th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide to the Western Cape province. The Western Cape has numerous promising investment and business opportunities and this issue includes contributions from Alan Winde (Minister of Economic Opportunities for the Western Cape Government), interviews with Ryan Ravens (CEO of Accelerate Cape Town), Arifa Parkar (Western Cape Business Opportunities Forum CEO), Wesgro CEO Tim Harris and Lance Greyling (Invest Cape Town) as well as contributions from various business leaders. In addition, you will also find comprehensive features on all the key sectors in the Western Cape. To complement the extensive local, national and international distribution of the print edition of the magazine, 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.
Printing: FA Print Cover photo courtesy of Rodger Bosch www.rodgerbosch.co.za
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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.
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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 Anglo American, flickr.com, Transnet National Ports Authority, Sasol, World Bank Images, City of Cape Town, Wikimedia Commons, Pixabay, Accelerate, Northlink College, IRC Wash, Aquacor, South African Tourism, Wikimedia, firstname.lastname@example.org, mycapetown.co.za, Railways Africa, pascalparentphotos, Pinterest, and FWJK.
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.
WESTERN CAPE BUSINESS 2017
Growth strategy is paying off Alan Winde, Western Cape Provincial Minister of Economic Opportunities, explains how Project Khulisa will impact the province.
Alan Winde, Western Cape Provincial Minister of Economic Opportunities
n the Western Cape, we have taken a focused approach to job creation and growth. To achieve this objective we have put in place our Project Khulisa growth strategy, which focuses on a set of high-potential sectors, namely tourism, agriprocessing and oil and gas.
WESTERN CAPE BUSINESS 2017
In each of these areas, we worked with the private sector to develop tailored action plans to drive growth. I am happy to report that we are making significant progress. Tourism employs 204 000 people, and under Project Khulisa we have set ourselves the goal of adding up to a further 100 000 jobs to the sector. Through Project Khulisa we are focusing on driving an increase in leisure and business tourism. The Cape Town International Convention Centre (CTICC) continues to deliver a significant contribution to economic growth. That is why we are doubling the CTICC’s capacity. We’ve also seen a R1-billion private investment into the Century City Conference Centre and Hotel. The Aquarium added a conference facility when it upgraded and many hotels are doing the same. A large number of hotels are being developed, partly in response to increased conference numbers, but also in response to general good growth figures in this space. We know that conference delegates have a higher spend than leisure tourists, and that they often return for a holiday with their families. From here, they could purchase property in the region, or decide to open a business here. It is all interlinked. On the leisure front, we are driving an events strategy to pull tourists to our smaller gem towns. From our investment in seeding events, we have helped drive 150 000 tourists to travel in the region, generating an economic impact of R240-million. Very shortly we’ll be embarking on a project to define the competitive identity of our region, creating a compelling story about who we are, what we have to offer, and why we should be at the top of travellers’ bucket lists. We’ll take the outcome of this process to market in 2017. We are continuing with our plans to position the province as the trail capital of Africa. This year we launched the first part of our cycle track, which will eventually stretch from Plettenberg Bay to Cape Town. The first 5km of the cycle route consists of bespoke-designed single track on a section of land between Knysna and Sedgefield. This track will become the backbone of a trail system driving business to farms and communities all along our southern coastline. We will also focus on culture and heritage tourism, food and wine tourism, and our growing events economy. In agri-processing, we are seeking to grow the size of the sector and add up to 100 000 jobs. Our plan to boost the sector includes efforts to increase halal and wine exports, and to create an enabling environment for all
MESSAGE agri-processed products to flourish. We have made headway, together with our partners, in our drive to increase water storage in the Brandvlei Dam, and we have commissioned the equipment we require for our residue-testing facility. All of the initiatives under Project Khulisa are designed to open international markets for our produce, and I am pleased with the progress we have achieved thus far. Oil and gas also presents a significant opportunity to grow our economy. It is our goal to add up to a further 60 000 jobs to this sector, and increase its economic contribution to R3-billion. One of our flagship initiatives in driving growth in the oil and gas sector is the Saldanha Bay Industrial Development Zone along the West
Coast, which is being managed by the Saldanha Bay Industrial Development Zone Licencing Company. We’re seeing a good flow of vessels along our coast and in the pipeline is a major project to recertify vessels here. The lease between the Saldanha Bay Industrial Development Zone Licencing Company and the Transnet National Ports Authority (TNPA) is in place, and we expect to start construction next year. TNPA will also be asking for a formal proposal from an international consortium to develop the 500m terminal at Mossgas. There’s been an overwhelmingly positive investor response. At the time of going to print, the Licencing Company already has Memorandums of Understanding non-disclosure agreements and rights of first refusal in place with 36 companies, and building plans have been submitted for three firms. They’re getting ready to start construction as soon as the necessary approvals have been obtained. Along with a focus on these priority sectors, we have identified strategic economic enablers. These include securing an affordable and reliable energy supply and reducing red tape. Through a focussed approach, we are moving closer towards reaching our goals, and I am confident through our partnerships, we will continue to grow our economy, Better Together.
WESTERN CAPE BUSINESS 2017
A REGIONAL OVERVIEW OF THE
WESTERN CAPE PROVINCE
Tourism and technology are boosting the Western Cape economy and Brexit offers new opportunities for exporters.
he Western Cape straddles the west and south-eastern coastlines of South Africa. The provinceâ€™s southernmost point is Agulhas, which is also the southern tip of Africa where the Atlantic and Indian oceans meet. Trade with Europe (including Britain) has long
been the mainstay of the Western Capeâ€™s export income. The top three destinations in 2013 (the Netherlands, the UK and Germany) combined to import R17.2-billion worth of Western Cape goods. The European Union (EU) signed an Economic Partnership Agreement with the Southern African Development Community (SADC) in June 2016 that included some very good news for the Western Cape. For example, dairy products would attract no duty, a range of geographic indicators (including Karoo lamb and rooibos) were accepted,
SPECIAL FEATURE and the amount of wine that could be exported was increased from 50-million litres to 100-million litres. Thirteen days later Britain voted to leave the EU. This means that at least two new treaties have to be signed: a SADC-EU treaty that excludes the UK from the provisions and a new SADC-UK treaty. This could present new opportunities for all parties but it does mean that the landscape will be somewhat different. The Western Cape stretches to the north along the Atlantic Ocean about 400km from the provincial capital, Cape Town. The Port of Saldanha Bay lies along this coast; it is intended to become a hub for the maritime repair and oil and gas industries. The eastern boundary is defined by the Bloukrans River, which means that tourism hotspot Plettenberg Bay falls within the Western Cape. Beaufort West on the N1 highway is the biggest town in the north-eastern section of the province. The province is well served with infrastructure such as the N1 and N2 highways, and the N7 which services the West Coast. Three ports at Saldanha Bay, Cape Town and Mossel Bay serve different markets. The Port of Cape Town has recently opened a Cruise Terminal and a large new fuel storage terminal is being constructed in the port. Cape Town International Airport and George Airport see to air travel needs. Cape Town also hosts an oil refinery (Chevref) and a gas-to-liquids refinery at Mossel Bay, which is run by the national oil company, PetroSA. Koeberg nuclear power station is South Africa’s only such power station and there are a further three open-cycle gas turbines and a pumped-water-storage scheme. Wind and solar power are being installed rapidly across the province as South Africa tries to end its dependency on fossil fuels. The population of the Western Cape is also well served by educational institutions including the University of Cape Town, the University of Stellenbosch, the University of the Western Cape and the Cape Peninsula University of Technology. Cape Town has three Technical and Vocational Education and Training (TVET) colleges and there are a further three for the Boland, the Southern Cape and the West Coast, all with multiple campuses. The Cape Town International Convention Centre is the province’s leading facility in the events and WESTERN CAPE BUSINESS 2017
conference field, and it is undergoing an extension that will lead to its doubling in size. The extension is due to open in 2017. Many hotels have conference facilities and a large number of new hotels are being built, particularly in and around Cape Town. The national parliament is located in Cape Town and there is a separate provincial legislature. The Western Cape is unique among South Africa’s nine provinces in that the Democratic Alliance (DA) runs the province. The African National Congress is the majority party in the national parliament and it controls the other eight provinces. The DA also governs most of the provincial municipalities in the province, including the metropolitan municipality of Cape Town. There are five district municipalities, which are further divided into 24 local municipalities. In 2015, the population of the Western Cape was estimated to be 6.2-million. The official languages of the province are Afrikaans, English and Xhosa. The province has diverse climatic conditions and geographical features. The north-west coastal strip is dry but the valleys inland from the coast support intensive citrus and grape cultivation. The Garden Route regions of the Southern Cape are heavily
SPECIAL FEATURE forested. In between there are the rugged mountains of the Cederberg, the wheat and barley fields and winelands of the Boland and the Overberg, the fruit-producing valleys of the Klein Karoo and the dry plains of the Great Karoo. The province and the region are most commonly associated with Table Mountain, which watches over the city of Cape Town and forms a national park of its own. The Western Cape has the natural advantage of access to the warm Agulhas current along the south coast and the cold Benguela current up the west coast, offering opportunities for a wide variety of aquaculture and mariculture products to be farmed along the province’s coastline.
exports. Seventy percent of South Africa’s beverage exports came from the Western Cape over the last decade. Grape 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 and furniture to coke and refined petroleum products. Excluding agri-processing, other manufacturing makes up 6.9% of GDP. Several significant foreign investments have been received into the Western Cape in recent years: Hisense, GlaxoSmithKline and Kimberley-Clark, among others.
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 in particular has been a key component of the economy for many years, with many of South Africa’s biggest companies having their headquarters in Cape Town. Asset management and venture capital companies have been growing strongly in recent times. Agriculture is another important sector. Although only accounting for 4.3% of GDP on its own, the sector is responsible for the fruit and vegetables that contribute to agri-processing, which accounts for nearly 40% of the province’s export basket. (Agriprocessing 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
The Provincial Government of the Western Cape is putting multiple resources into Project Khulisa, a plan to promote growth in three sectors that will also create new jobs: Oil and Gas, Agri-processing and Tourism. Other sectors that are also expected to grow quickly are: • ICT: Cape Town is already a knowledge hub with banks supporting fintech hubs and several firms making high-tech medical equipment. The City of Cape Town has an ICT strategy and the Silicon Cape Initiative is doing all it can to keep the momentum going in this field. • Film: The skyline near Somerset West has been notable for the rigging of two huge sailing ships
WESTERN CAPE BUSINESS 2017
punctuating it for many months: this is the Cape in this category is “design”. The Western Cape wants Town Film Studios, which hosted the Black Sails to lead in innovation. production team. More than 19 000 filming perRenewable energy, the green economy, energy mits were issued by the City of Cape Town be- efficiency – all of these related concepts, once just tween 2014 and October 2016. Universal Studios a fuzzy dream, have become the bedrock of future and Disney have a presence in Cape Town. The business plans. city of George is another important hub for the Green buildings are becoming much more than film industry. a “nice-to-have”. A planned residential development • Business Process Outsourcing (BPO): Amazon in Somerset West, the Blue Rock Village with 1 000 and Asda are just two big international compa- flats, will be powered by solar power and have water nies that have call centres in Cape Town. Many and energy management systems. The Hotel Verde more have signed up for similar services, and at Cape Town International Airport claims to be many more are expected. The national BPO as- carbon neutral and has a six-star rating from the sociation says that 5 000 jobs were created in Green Building Council of South Africa. South Africa in 2015, and it expects this to acSmall, medium and micro enterprises are said celerate in 2017. to create jobs faster than large concerns. To bol• Green economy: Atlantis is being promoted as ster the SMME sector, the Industrial Development a green economy manufacturing hub. The re- Corporation is supporting the Philippi Village newable energy sector is growing very fast and Container Walk, an initiative of The Business Place opportunities are opening in many fields; biogas and Bertha Foundation initiative. A total of 127 conand use of waste are areas of huge potential. The tainers house entrepreneurs of every sort from shoe Western Cape Industrial Symbiosis Programme, shops, barbers and construction material retailers to or WISP, has achieved some major milestones accountants, NGOs and a LEAP Science and Maths in diverting organic waste and saving in green- School training centre. house fossil gases. WISP is a GreenCape initiative. The annual Premier’s Entrepreneurship Each of the sectors listed above could be catego- Recognition Awards (PERA) has received more than rised as “tech” industries. Another one that could fall 1 000 entries since 2013. Some of the categories in WESTERN CAPE BUSINESS 2017
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) and Cederberg (forestry) and Citrusdal. Cement is made in Riebeek 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 is gearing itself to service the continent’s oil and gas industry and to be a steel manufacturing hub. Mineral sands are mined north of Saldanha. 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 cheesemaking facility in Bonnievale. Robertson is known for roses and thoroughbred horses. Stellenbosch is home to its eponymous university and houses the headquarters of several large companies, such as PSG Group. 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 high-quality fruit farms in the Ceres Valley and rural villages that
ZIMBABWE BOTSWANA Limpopo NAMIBIA North West
Mpumalanga Gauteng SWAZILAND
Free State Northern Cape Northern Cape
2016 were for job creation (Doring Bay Abalone was the winner), innovation (Praelexis, a data company) and emerging rural business (Anja’s Pantry from Vredenburg).
are popular with tourists, such as Barrydale and Greyton. Agriculture is the principal economic activity of the region and the services sector is strong. Eden District Municipality Towns: George, Oudtshoorn, Calitzdorp, Knysna, Mossel Bay, Plettenberg Bay. The area has two important tourist components: the Cape Garden Route on the coast and the Klein Karoo between the mountain ranges. Route 62 is a popular route that ends (or starts) in Oudtshoorn, home of the Cango Caves. A report by the Bureau for Economic Research (Stellenbosch University) found that Eden District is one of the best-performing regions because of tourism. Mossel Bay hosts the country’s main gas-processing plant while George is a node of manufacturing, trade, tourism 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. Sheep farming predominates. Beaufort West is strategically positioned on the N1 highway, which links Cape Town with the interior of South Africa. It is nearby the Karoo National Park and not far from Prince Albert, a quaint town situated in the shadow of the Swartberg Mountain. Prince Albert is a popular tourist destination and is close to the dramatic portals that link the Karoo to the Klein Karoo: Seweweekspoort, the Swartberg Pass and Meiringspoort. WESTERN CAPE BUSINESS 2017
R2-billion of investment into the Western Cape Tim Harris, CEO of Wesgro, reviews a successful year for business and investment in the Western Cape.
Wesgro CEO Tim Harris
BIOGRAPHY Tim Harris is Chief Executive Officer of Wesgro, the Western Cape’s official Destination Marketing, Investment and Trade Promotion Agency. Wesgro is more than 30 years old and remains the oldest organisation of its kind in the country. Prior to that appointment he was the Director of Trade and Investment in the Office of the Executive Mayor at the City of Cape Town and the Shadow Minister of Finance with Democratic Alliance in parliament. He was elected to Parliament aged 29. Harris has a Masters in Economics from UCT. WESTERN CAPE BUSINESS 2017
Please could you give an overview of Wesgro’s activities over the year?
In a difficult economic climate, Wesgro has performed very strongly over the past year. Our work always begins with economic insight and the Wesgro research team has helped deliver a much deeper understanding of economic opportunities in the Western Cape, publishing 115 research pieces over the past year. For example, there has been huge interest in markets such as Angola, and our report on food and beverage opportunities in Anglo was downloaded more than 1 500 times. So the research team continues to give us the hard numbers we need to make the case for business in the Western Cape. The new Wesgro website (www.wesgro.co.za) was launched late in 2016 with a much more interactive approach to data and business intelligence. It will enable business in the Western Cape to be more informed and able to realise opportunities quickly because of the work that our economists are doing. We developed online dashboards for Tourism and for Air Access, both of which are part of the Province’s Project Khulisa initiative. On the trade side, we were helped by the weakening of the rand, and we trained more than 500 companies in export readiness, helping them to build their capacity to export. We also took hundreds of companies to market to help grow their global sales. For the first time this year we really engaged with the new mandate that the Minister gave us to help drive outward investments into the rest of Africa, so we are now also helping Western Cape companies to establish operations in Africa. On the investment side, we surpassed the R2-billion mark in terms of investment landed in the Western Cape. Our biggest investment was a R1.189-billion renewable energy project from Spanish-based Acciona in the rural area of Gouda, which we worked on with GreenCape. Overall, the investment we facilitated created 681 jobs, and the agri-team in particular landed three deals including an abalone-farming facility in Doringbaai and the world’s first commercial fly farm in Philippi, so there was a strong performance
INTERVIEW from the investment team despite obvious challenges in the global and local economy. On the destination marketing side, the Convention Bureau helped bring almost 28 000 new delegates to the Western Cape in the past year, with the economic impact of R374-million from the bids they landed for events in Cape Town. On the Leisure Marketing side, we supported 48 events around the province, helping to give people reasons to travel out of Cape Town into the outlying regions, particularly during the winter season. The film team continues to position the Western Cape as one of the top film destinations in the developing world. They assisted 188 film and media companies and conducted four events focused on opportunities in the film sector.
skills, capital and experience. Entrepreneurs from all backgrounds and from all race groups are seeing opportunities to grow in the Western Cape. What is the expected effect of Brexit on business in the region?
Brexit is a risk but also an opportunity. The UK is an important trading partner for us and they are also one of the largest investors in the Western Cape over the past decade (measured by number of projects). The uncertainty around the trading arrangements with Britain is not a good thing, as uncertainty is a disincentive for business. We’ve had several engagements with the Consulate General and also our largest agri-exporters who are very exposed to the British market, to give them a view of what the roadmap is for Brexit but also to focus on the opportunity it might present. Right now our trade with Britain is governed by EU trading arrangements, and there exists the distinct possibility that we may be able to negotiate more favourable terms when and if Britain exits from the EU arrangement.
“WE HELPED TO RAISE SOUTH AFRICA’S GROWTH RATE AND REDUCE UNEMPLOYMENT”.
What impact will the Special Economic Zones have?
The plan is to have two zones, with oil and gas services at the Saldanha Bay IDZ, and clean technolAir Access is a collaborative project that Wesgro ogy around Atlantis, which GreenCape is putting coordinated between key government organi- together. What this shows is that Cape Town is being sations, including the Western Cape Provincial defined as a leading global energy city. One of the Government, City of Cape Town, Cape Town Tourism interesting results of the decline in the oil price is and Airports Company South Africa. We’ve added that it’s forced many cities like Cape Town to look over 53 800 new two-way seats on a variety of flights at where the skills that were involved in the oil infrom regions all around the world, and are achieving dustry can be deployed, and we found that many the objective of connecting Cape Town to Africa of those technical skills are quite transferrable into and the world in a very practical way. Establishing new energy like renewables and clean technologies So there’s a synergy between those two , old these flight connections is a great way of driving energy and renewables or new energy. Recently, trade, investment and tourism. The relative performance of the Western Cape the Mayor invited the leading energy cities from continues to be impressive – we helped to raise around the world to Cape Town and when we met South Africa’s growth rate and reduce South Africa’s with them it became clear that Cape Town is really unemployment rate. We’ve had 147 000 people net special in terms of the broad package of energy opmoving into the Cape in the past decade accord- portunities and most importantly skills to activate ing to StatsSA, and almost half of those have come those opportunities. I think when we look back in from Gauteng, so South Africans are voting with a decade you will see Cape Town emerge as a real their feet for the Western Cape economy, bringing energy capital for Africa.
WESTERN CAPE BUSINESS 2017
More than the voice of business The Cape Chamber is “where opportunity meets”.
lthough we have never been as technologically connected as we are today, the harsh reality is that we have never been as disconnected socially as we are now, in spite of the prevalence and growth of social media. The Cape Chamber offers access to an established network where legitimate businesses can meet, engage and grow. It is a dynamic and safe space for lowering risk, being heard and finding opportunity. We have been challenged with a macro economy that is showing no sign of creating a buoyant platform for profitable business. However, no matter what the prevailing climate is for business, there will always be opportunity for those who seek it out and rise to the challenge. If we used the rest of the country as a comparison, the Western Cape’s economic performance is above the average. In addition, this is a great place to live, work and play with Cape Town being a clean, orderly and beautiful city that attracts innovative and dynamic individuals who in turn infuse creativity and growth into the region. There are many spin-offs to this, such as our substantially lower unemployment rate (when compared to the average for South Africa). We also attract considerable foreign direct investment, for example more than R200million invested by Kimberly Clarke, R260-million by Hisense and nearly R1-billion by Amazon in BPO and tech projects. Although the Cape Chamber, which is the oldest membership-based organisation in Africa, will turn 213 years in 2017, it is not business as usual. We have, as an organisation, embraced innovation to the extent that it is in our very DNA. The result is a substantial member base who advocate strongly for what the Chamber does and stands for. We are considered the voice of business in the region. Our ability to lobby 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 legislation that could impact business in the region, and where necessary, submit evidence to the relevant Parliamentary Standing Committee or other authorities in the interests of our members. We stand up and say what needs to be said – we are heard and people in authority often heed what we say. The Chamber is intimately connected with specialised sectors in the economy through our Portfolio Committees that focus on agribusiness, digital, economic development, HR, industrial focus, international trade WESTERN CAPE BUSINESS 2017
Cape Chamber President Janine Myburgh
Cape Chamber Executive Director Sid Peimer and tourism, small business development and transport. We have a Youth Chamber that focuses on the 13-to 25 year old scholars, students and entrepreneurs, so as to give them the leverage to become successful. In addition, we host the Port Liaison Forum, a committee comprising users of the Port of Cape Town, including shipping lines, freight and forwarding agents, cargo owners and port officials. This facilitates a port that
FOCUS is run smoothly and effectively. We also have various chapters across the peninsula, each with its own committee that focus on adding value to the members in their respective areas. We play a significant role in keeping our members informed of the latest issues affecting business and industry, both large and small. To that end we host a substantial number of seminars and workshops to facilitate information-sharing and training for our members. We have had many stimulating and informative speakers address members at the Chamber. These have included: Professor Jonathan Jansen who was, until recently, Vice Chancellor of the University of the Free State; Dr Annthea Jeffrey of the Institute of Race Relations; Anette Steyn, the Shadow Minister of Agriculture, Forestry and Fishing; Dr Ivan Meyer, the Western Cape Minister of Finance; Ms Lumka Yengeni, Chairperson of the Parliamentary Labour Portfolio Committee; Richard Walker, Regional Manager Metrorail; Dr Mamphela Ramphela, activist and one-time MD of the World Bank; Mr Tshediso Matona, Secretary of Planning and Acting Director General of the Department of Planning, Monitoring and Evaluation, and many more. The Chamber is well respected and we can attract high-profile speakers to debate issues and answer questions from our members. Recent events that have drawn much attention are our “Rumble in the Urban Jungle” series of debates. We had two in 2016 – the first featured the leader
of the EFF Julius Malema versus the futurist Clem Sunter, and our second “rumble” pitted Finance Minister Pravin Gordhan against controversial journalist and author Justice Malala. These events received extensive coverage and were featured in all major media in addition to being livestreamed to an international audience. But more importantly, they provided information enabling listeners to make better decisions as business people and citizens. In addition to the numerous meetings and presentations, the Chamber hosts a number of landmark events. Our Small Business Expo attracts thousands and is growing at a phenomenal rate. We also introduced the Cape Business Summit in 2016, with Google as one of the keynote speakers. The Chamber also owns the Design for Living expo, which in its heyday attracted 100 000 attendees, but was halted a number of years ago. We are currently in the process of repositioning the expo as Design for Future Living, which will attract exhibitors and attendees who are interested in everything that affects our modern lifestyle. Our Exporter of the Year competition celebrated its 26th year in 2016. This competition brings together the Western Cape’s leading exporters and provides an insight into the work and achievements of many companies that are not necessarily well known to the public. The annual gala awards dinner has become one of the highlights of the year and an outstanding opportunity for networking. We also serve on the Board and run the SA Chapter of the International Women’s Entrepreneurial Challenge, a global competition that brings some of the foremost women in business together, publicises their considerable achievements and allows them to network with their peers at an international level. In addition to all these events, we host both formal and informal networking functions, allowing our members to leverage relationships that they have built up through the Chamber. We offer business advice covering a range of subjects from legislation to HR to tendering. There is also an International Trade Desk, which is the first point of contact for trade missions and visiting delegations who come to the Chamber to interact with our members. The Chamber is authorised to issue certificates of origin for exporters. The Cape Chamber of Commerce & Industry is a respected and admired brand that has managed to remain relevant in a rapidly changing world. It’s “where opportunity meets”.
CONTACT INFO 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: email@example.com Website: capechamber.co.za
WESTERN CAPE BUSINESS 2017
Western Cape Business Opportunities Forum The Western Cape Business Opportunities Forum (WECBOF) is a non-profit organisation with a powerful voice for business in the southernmost region of the African continent, the Western Cape.
business opportunities, and representation on appropriate investment, public sector and related platforms. It also ensures that it is represented on the boards of relevant associations and affiliations in order to ensure that its members are well-represented and that opportunities are filtered to the organisation for their benefit.
The Western Cape Business Opportunities Forum (WECBOF) is a member-based organisation for business. It has access to channels for information on how to grow and develop businesses in mainly the Small, Medium and Micro Enterprise (SMME) sector, and is an enabler for its members to access new business opportunities.
WECBOFâ€™s objective is to improve business performance in order to achieve improved levels of economic growth and employment, reduce poverty and meet social objectives. In order to achieve its objective, the organisation focuses on addressing issues such as contributing to the establishment of an environment that is conducive to a free market based on competitiveness, access to financial and other business support services, and expanding markets for products and services.
WECBOF is a service association providing businesspeople with relevant information, training,
Target market The organisationâ€™s target market is the entrepreneurial community of the Western Cape, including the SMME sector.
CONTACT INFO Email addresses General enquiries: firstname.lastname@example.org Chief Executive Officer: email@example.com Administration: firstname.lastname@example.org
WESTERN CAPE BUSINESS 2017
WECBOF: Where entrepreneurs excel Arifa Parkar is the CEO of the Western Cape Business Opportunities Forum (WECBOF). You were born in Zanzibar, grew up in the Seychelles, Mauritius and India… so when did Cape Town become home?
Arifa Parkar, CEO
I came to the shores of South Africa in 1991 and very soon after I realised that this could very well be my final choice of a place to call home. It just suited me in every aspect – the different cultures, the “joie de vivre”, the diversity, and of course the cosmopolitan appeal of Cape Town just spread its web around my heart. Does your vast international experience enhance WECBOF’s work?
BIOGRAPHY Arifa Parkar completed her formal education at the University of Bombay and Mumbai, earning a BA in Economics and Politics before moving on to complete her LLB in 1985. The same year she acquired her qualifications in Business Management. In 1999 she joined the Department of Economic Affairs and Tourism before becoming Marketing Manager at the Cape Chamber in 2001. She is an active member and executive on the Committee of the South African Institute of International Affairs (Western Province Branch) and was elected the 1st President of Mafubo South Africa, an international NGO. In addition to her role as CEO of WECBOF, Arifa also owns and runs Aasha Investment Solutions (Pty) Ltd.
Absolutely – I strongly believe that networking is the key to any business’s success. Over the years my personal network has grown quite significantly, and this will be the key to opening local, national and international opportunities for WECBOF and our members. How has WECBOF changed its focus in recent years? WECBOF started out as a voice for coloured businesspeople, but today it represents all South Africans with a common passion for entrepreneurship in the Western Cape. This is our greatest achievement. How does WECBOF encourage more opportunities for SMMEs? To succeed in today’s collaborative, client-driven, networked economy, companies must take advantage of the strength of their business relationships to succeed. A new economy is emerging, one built on a complex network of information, interaction and change. This evolving business landscape, shaken by technological innovation, globalisation and downsizing, has led us back to embracing the most fundamental aspect of business: relationships. That is why WECBOF is in constant dialogue with stakeholders so that we create an enabling environment for our members, as well as those with whom we interact and do business. Which of your accolades means the most to you?
I have two personal favourites that stand out from the rest, one from CEO Magazine as the “Most Influential Woman in Business” Award, and the second was awarded to me by Business Partners for my “Contribution to SMMEs in the Western Cape”. These two are very dear to my heart.
WESTERN CAPE BUSINESS 2017
• 10 years ago the Masisizane Fund was established as an initiative of Old Mutual South Africa following the closure of the Unclaimed Shares Trust. • The Fund provides loan finance to small businesses. • The mandate of the Fund is to contribute meaningfully to employment creation, poverty eradication and reduction of inequality, economic growth and the attraction of investment. • The Fund honours the mandate through the promotion of entrepreneurship, enterprise finance and support to small, micro and medium enterprises. • The focus of the Fund is on enterprises that are 51% or more owned by previously disadvantaged individual(s) and gives priority to rural and peri-urban/township areas. • Preference is given to businesses owned by youth, people with disabilities or are owned by women (51% or more). • In order to contribute meaningfully to job creation, productive and labour absorbing sectors are targeted: Agribusiness Franchising Supply Chain Flagship initiative in agriculture in the Eastern Cape
OMBDS 12.2016 L10069
OMBDS 12.2016 L10069
DID YOU KNOW?
• Over the last almost 10 years, the Western Cape has benefited from investments from the Masisizane Fund in all of the sectors mentioned above to the value of more than R22m. With its focus in agriculture, investments to the value of R14m has been made in this sector alone.
Old Mutual is a Licensed Financial Services Provider
MASISIZANE FUND • The Fund supplies non-financial value-adding post-investment services including capacity development, business management and technical support, financial education, market development and product-service quality standards and compliance. • Masisizane plays a vital role in the assessment of potential suppliers to Old Mutual and the further development of suppliers to include the creation of business to business transactions with Old Mutual. • Since 2012, the Masisizane Fund has offices in five of the nine provinces with the national head office in Gauteng: Gauteng (including North West & Free State)
011 217 1746
Western Cape (including Northern Cape)
021 509 5074
031 335 0400
043 704 0116
Limpopo (including Mpumalanga)
015 287 4279
An initiative of the
Down-town boom town, Cape Town A number of high-visibility construction projects are under development in the Cape Town CBD and surrounds.
housands of people happily meandering through the streets of the inner-city till late at night – that’s down-town Cape Town on the first Thursday of every month. Started in
2012 as a way of attracting people to art galleries and museums, the event has morphed into an urban festival of fun, film, fashion, food and performance art. It’s also a good measure of a city economy on the up.
The land earmarked for the Richmond Park development.
Cape Town’s central business district (CBD) delivers a quarter of the city’s economic activity and about 30% of employment. Construction projects worth R16-billion are either being built or are in the pipeline for the CBD. Hundreds of hotel beds are being added to the city’s tourist offering and public money is going in to upgrades of the railway station and the Iziko South African Museum. A new Cape Town Museum is planned for the old Standard Bank building on Adderley Street. Major developments on both ends of the Foreshore will transform the city’s connection to the harbour and effectively extend the very successful formula of the V&A Waterfront across the front of Cape Town. A new cruise terminal on the western edge of the Foreshore (north-west of the Cape Town International Convention Centre, CTICC) welcomed 86 000 passengers in its first year of operation. The tender to run the terminal was won by the V&A Waterfront. The Amdec Group is developing The Yacht Club directly south of the terminal, a mix of commercial, residential and hotel space. This is part of a larger Port Gateway project that aims to connect the city to the sea. The Roggebaai Canal will be extended to Duncan Dock, providing a link to both the CTICC and the Waterfront. WESTERN CAPE BUSINESS 2017
On the eastern edge of the Foreshore, a very ambitious plan envisages two new hotels, flats, retail space and offices rising out of ground currently occupied by three car dealerships and a roadworthy station on Christiaan Barnard Street. The Harbour Arch concept is based on Johannesburg’s Melrose Arch, with seven tower blocks to be constructed on 200 000m², roughly half the footprint of the V&A Waterfront. The Amdec Group are the owners and developers of the project. Further afield, a high-visibility site 17km from Cape Town CBD is being developed as a mixed-use commercial precinct with 300 000 m2 of gross bulk lettable area on a 99-year leasehold basis. Called Richmond Park, it is anticipated that the development will be popular with distribution and light industrial businesses, but it will also incorporate a retail centre.
Hotels Marriott International’s introduction of three new hotel brands to Cape Town forms part of the re-shaping of the Foreshore. Both the Cape Town Marriott Hotel Foreshore and the Residence Inn by Marriott
SPECIAL FEATURE Western Cape Government (25.3%), and SunWest International (Pty) Ltd (6.9%). The Westin Hotel is on the western edge of the conference centre complex and several other large hotels are nearby, including two Southern Sun hotels, Waterfront Cape Town and The Cullinan. Building is under way to double the size of the CTICC, which will position Cape Town to handle mega-conferences such as those dealing with climate change. Two major conferences were recently secured with the help of the Cape Town & Western Cape Convention Bureau: the 18th International Congress of Immunology (IUIS) and the International Symposium on Microbial Ecology (ISME). The CTICC bids were in competition with London, Paris, Mexico and Toronto, Hawaii, Auckland, Beijing and Santiago. These two events alone will bring 8 500 visitors to the city. In 2015/16, the CTICC generated R200-million in revenue and earned R65-million in operating profit by hosting 504 events. will be part of the new Harbour Arch precinct, while the AC Hotel will be attached to the Yacht Club and be the first thing cruise line visitors see after they emerge from dealing with customs authorities. The three hotels will offer a total of 539 rooms. The Rezidor Hotel Group is adding a sixth Cape Town property to its portfolio with the opening of the Radisson Red Hotel V&A Waterfront Cape Town. The Capital Mirage opens in De Waterkant in 2016 while the boutique Silo Hotel will perch above the Zeitz Museum of Contemporary Art Africa, which is going to display its contemporary art in the Waterfrontâ€™s re-purposed grain silos. Tsogo Sun is spending R680-million on the site of the old Tulip Hotel to create a two-hotel and conference complex. Fronting on Strand Street (and Bree and Buitengracht), a total of 500 rooms will be available in a SunSquare hotel and a StayEasy hotel.
Cape Town International Convention Centre Since it started operating in 1999, the CTICC has added R38-billion to the regional economy. It is jointly owned by the City of Cape Town (67.8%), the
Voortrekker Road Corridor development The old road to the north is still a very busy road but there are plans to bulk up Voortrekker Road and make it an attractive investment destination. The City of Cape Town has recently put infrastructure worth more than R300-million into supporting the plan, and has given money to the Passenger Rail Agency of South Africa (PRASA) for it to develop a plan to upgrade the rail corridor. The Voortrekker Corridor is one of the densest transport nodes, with rail, road and taxi linkages throughout. The Greater Tygerberg Partnership is driving several initiatives to spur developments in the region. These relate to attracting investment, affordable housing, creating a world-class sporting facility at the Haardekraaltjie precinct, and lobbying for pedestrian malls, bike lanes and more efficient public transport. The City of Cape Town presented its Voortrekker Road Corridor: Strategy and Investment Plan at the African Real Estate and Infrastructure Summit at the CTICC in November 2016. WESTERN CAPE BUSINESS 2017
A world-class convention centre welcoming the world By expanding its existing footprint, the CTICC is moving closer to its goal of becoming one of the top convention centres in the world.
he Cape Town International Convention Centre (CTICC) is a destination of choice for conferences, exhibitions and business events on the African continent. Located in the foreshore business precinct in the City of Cape Town, the centre is currently undergoing an impressive expansion project. The expansion – known as CTICC East – is set to further the centre’s reputation for hosting the highest number of international conferences in Africa and will allow it to simultaneously host concurrent large-scale events across CTICC West (the original facility) and CTICC East. Only a 20-minute drive from Cape Town International Airport, the CTICC offers: • Two auditoria seating 1 500 and 612 delegates respectively • A roof terrace for 380 delegates • 33 breakout rooms of varying sizes accommodating 25-320 delegates • 11 399m2 of dedicated exhibition and tradeshow space • Versatile banqueting and function rooms including a grand ballroom of 2 000m2 with breathtaking city views • 1 400 parking bays CTICC East, scheduled to open in July 2017, increases the centre’s capacity with 10 000m2 of multipurpose conference and exhibition space and 3 000m2 of formal and informal meeting space. It has been awarded a Four-Star Green Building Rating by the South African Green Building Council. WESTERN CAPE BUSINESS 2017
The CTICC is a purpose-built facility in one of the premier tourism destination cities. Its expansion bolsters its vision to deliver extraordinary experiences to a far broader audience and become one of the top 10 convention centres in the world.
CONTACT INFO Physical address: Convention Square, 1 Lower Long Street, Cape Town 8001 Tel: +27 21 410 5000 Email: email@example.com Website: www.cticc.co.za Twitter: @CTICC_Official Facebook: facebook.com/ CTICC
Experience Extraordinary There’s a place where meetings, conventions and celebrations are transformed from ordinary gatherings into extraordinary experiences. A place where everyone knows they are valued, where vision is shared, and where today’s ideas come to life as tomorrow’s successful reality. Here, a breathtaking location, a selection of superb venues and facilities, and uncompromising VIP treatment for all are brought together to offer your important guests an unforgettable experience worthy of their status. This place is Cape Town International Convention Centre. And to experience it is to experience extraordinary.
To transform your special event into an extraordinary experience contact CTICC: +27 21 410 5000 firstname.lastname@example.org www.cticc.co.za
Cape Townâ€™s new warehousing hub Gerrit van den Berg of Atterbury outlines the proposal to develop Richmond Park.
Gerrit van den Berg
BIOGRAPHY Gerrit, who heads up the Western Cape office for Atterbury, studied a BCom Investment Management at Tuks (the University of Pretoria) before he started working for a Johannesburg-based developer. On his daily commute between Pretoria and Johannesburg he would drive past two buildings being developed by Atterbury. He was so impressed with the look of the buildings that he plucked up the courage to approach the company for a job. His initiative paid off and he has been working for Atterbury since 2006. In January 2016 he moved to the Western Cape to open the regional office in Stellenbosch. WESTERN CAPE BUSINESS 2017
What prompted the decision to develop Richmond Park? Atterbury was approached by two individuals, Richard Glass and Daniel Filippi, who saw an invitation to tender for the development of 84ha of land adjacent to the suburb of Richwood along the N7 highway. They invited us to join them in bidding for the land that had been advertised following the awarding of a land claim. We were impressed by the fact that the land is joined by key roads in the north/central part of the city and is therefore very accessible and so were delighted when the tender was awarded to our consortium. How will the land claimants benefit from the project? The 401 families who lived on the land in the 1970s and â€˜80s were removed against their will from the land by the former apartheid administration. The land was returned to the original inhabitants following a successful land claim. Our tender bid specified that the original community members would become a 25% shareholder in the final development project. The original families and their descendants received a monetary amount when the lease was registered and they will qualify for an annuity income from the proceeds of the development â€“ that is, once the development becomes profitable and for the remainder of the 99-year lease. Who are you targeting in terms of sales/leases and which companies have signed up to move to Richmond Park?
We are targeting larger distribution and logistics companies, particularly those requiring in excess of 5 000m2 facilities. We have sold 3.5ha of land to Cape Fruit Coolers, and also concluded a deal with CTM. We have earmarked a retail development of 11 000m2 at Richmond Corner with Pick n Pay, Clicks and Planet Fitness as anchor tenants, scheduled to open in March 2018. We estimate there is sufficient space to construct 300 000m2 of bulk in total. www.richmondpark.biz
BAT HQ, Cape Town
Bagatelle Mall of Mauritius, Mauritius
Randport Industrial, Germiston
Mall of Africa, Waterfall City
PwC HQ, Waterfall City
Mall of Engomi, Cyprus
Richmond Park, Cape Town
From Africa, to Europe and beyond Over 22 years Atterbury has created more than 20 shopping centres and many other award-winning commercial developments. The company is proud of its heritage and business associations, cementing Atterbury as a leading name in property investment and development across the African continent and beyond.
Driving investment in Cape Town Lance Greyling heads up the newly launched Invest Cape Town initiative.
Lance Greyling Please give some background on Invest Cape Town and its role.
BIOGRAPHY Lance Greyling has experience in the private sector, civil society and government. After some time in the corporate world he joined environmental organisation Globe Southern Africa as the programme manager for Southern Africa. In 2003, he joined the newly formed Independent Democrats under Patricia de Lille and was elected to Parliament in 2004. He spent 11 years in Parliament, serving on a number of different portfolios, including Trade and Industry, Finance, Education, Environmental Affairs and Energy. In February 2015, he took up the position of Director of Trade and Investment at the City of Cape Town. WESTERN CAPE BUSINESS 2017
Cape Town is known the world over as a beautiful city and a tourist destination, but we want to position Cape Town as a globally competitive business destination – a great place to invest and a great place to do business. If we are going to address our socio-economic challenges as a city, we have to grow the economy and create more jobs. We have the lowest rate of unemployment of all the metros, but it still sits at around 20% which is far too high. If we’re going to make a dent in that we have to position Cape Town in the minds of both local and international investors as a globally competitive business destination, and if they choose to invest here we will make it as easy as possible to get their enterprise going. What makes Cape Town an attractive destination for investors?
There are a number of exciting things that are happening in Cape Town. Firstly, potential investors coming to Cape Town realise that this is a city that actually works – the infrastructure is in place, we have reliable electricity and water, on an administrative level this is a city that is easy to deal with, we’re very responsive to businesspeople and our citizens, so we deal with issues quickly and make sure problems are resolved. In terms of governance, we’re now the most stable metro in the country, with a 65% majority, so there is continuity of policies and governance. We’ve had unqualified audits for the past 10 years. This factor is vitally important to investors. Secondly, there are a number of interesting sectors that have emerged in Cape Town, which investors will be particularly interested in. We conducted a study of the Cape Town economy to identify areas for growth, and what we found was that 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. An example is the ICT sector – we are very much the tech hub of Africa with the most tech start-ups of any city on the continent, and
INTERVIEW we also have a mature ecosystem here that can support tech companies. In BPO (Business Process Outsourcing), we’re the leader in South Africa and in Africa. There are a number of global companies such as Amazon running back-office and call-centre operations out of Cape Town. This is another sector where we want to attract more investors and where we have an attractive offering. In terms of the renewable energy and clean-tech industries, we’re also a leader. We should shortly receive national designation for a Special Economic Zone in Atlantis for the clean-tech sector, and we already account for about 60% of the manufacturing of the renewable energy component for the national programme.
“WE AIM TO POSITION CAPE TOWN IN THE MINDS OF BOTH LOCAL AND INTERNATIONAL INVESTORS AS A GLOBALLY COMPETITIVE BUSINESS DESTINATION.”
Cape Town is also the retail capital of South Africa, with many of the retail giants headquartered here, Shoprite being an example. This is a good base for companies that are looking to penetrate the African market, given our port infrastructure, and we also have the financial and legal companies to underpin and advance an African strategy. Are there any incentives that you offer to investors?
We’re limited at local government level in terms of incentives we can offer, but we did pilot an incentive scheme in Atlantis that worked phenomenally well – the one financial incentive we were able to offer was a discount on electricity, and companies have taken that up, but actually the bigger incentive that we offer is in the efficient allocation of land. For example, a company looking to build a factory here was able to make an investment decision and within nine months buy the land from us, get all the approvals, get the building plans done, construct the factory and then open up their operation in a record time. That’s where the real incentive lies, a non-financial incentive – in our ability to fast-track administrative processes. And of course a Special Economic Zone for the clean-tech sector would offer a national incentive in terms of a lower tax rate, which is a big drawcard. How are you taking the message about Cape Town to the world?
We’re also seeing investment into advanced manufacturing such as electronics. An example is Hisense, which is expanding its operations in Atlantis, and there’s an aerospace cluster in Somerset West where there are a number of companies that are producing satellites for the global market. So we are doing well in the knowledge economy, which is supported by the fact that we have four higher education institutions here. This is a key point for companies looking to invest as they know that we have the requisite skills base. Cape Town is also a place where people want to come and live, so companies know they’re not going to struggle to get people to come and work for them if they base themselves here.
First, we’re having three months of structured engagements with key stakeholders and partners to see what they require to get the message out about Cape Town. Although we have initiated this campaign, we don’t see ourselves as owning it – we want people to be economic ambassadors for Cape Town, to engage with us as to the kind of materials that would be useful to them when they go out on a global mission. We will then craft the collateral for them to use. So it’s not just about us pushing out a message of the City of Cape Town, but about us empowering economic ambassadors for Cape Town and giving them the materials to enable them to sell a good story about Cape Town globally.
WESTERN CAPE BUSINESS 2017
Collaboration for growth CEO of Accelerate Cape Town, Ryan Ravens, explains how the organisation is engaging with a variety of role-players to shape growth in the city.
How does Accelerate Cape Town differ from other business organisations in the region?
BIOGRAPHY Ryan Ravens has extensive experience in leadership positions in the public and private sectors. Having served as the masterplan project manager for the FIFA 2010 World Cup, he was subsequently headhunted by the Gauteng Growth and Development Agency. His next role was CEO of a holding company that invested in numerous initiatives whereafter he joined Accelerate Cape Town. He holds three degrees including an MBA from UCT. WESTERN CAPE BUSINESS 2017
Our model is very different to the chambers in that we represent or aim to represent some of the largest corporates and we are not looking to grow our membership massively. We keep our membership small because we want to have the big players and the people who can collectively shift the landscape, not people who are trying to use the platform for business development. Having a small number allows me to engage with them quite intimately, so I can have face-to-face interaction with the CEOs on a regular basis. We have 42 of the largest corporates as members, and we are aiming to reach 50. The four universities, two business schools and political leadership of the region are part of our network so it becomes an effective network that should be capable of shifting the landscape and driving the bigger game-changing projects in the region. Our independence is important; we don’t accept any money from government as that allows us to be an independent voice for the private sector. What are your key areas of activity? When you have limited resources you have to make tough choices as to what you can do, so we narrowed our focus to five key areas:
Talent The first focus area is talent, specifically the transformation, attraction and retention of young black talent in the corporate environment. We found that companies have been spending a fortune to import black talent to the Cape but once their orientation programme ends and those people haven’t settled socially into the city and built social capital, they’re on a plane going back. We do inspiration sessions aimed at young leaders and young talent to help them build their personal networks in the region and meet their peers in other corporates in order to share experiences. In 2016 we extended that reach to senior professionals who’ve relocated to the Cape. Whether they’re foreign nationals or
INTERVIEW senior professionals from other parts of South Africa, they are struggling to settle into the city and they have similar issues except they have families. It has become quite challenging for many corporates, so we’ve launched what we call the “Welcome to Cape Town” initiative. This is less serious than our usual networking engagements because it’s geared more towards showcasing the food, wine and entertainment of the region, but ultimately it’s about helping them meet their peers and the feedback so far has been massively encouraging. It’s fine focusing on talent, but if we’re serious about transformation we also have to look at the HR practitioners. We have started the HR Practitioner Forum which brings together all the senior HR leadership from across these corporates to engage around specific issues. These include the unintended consequences of the new BEE codes and what that means, how they practically implement transformation in their organisation and best practices. There is an opportunity for sharing, so that adds value. We’ve tried to create linkages between our focus areas, so when we talk about the Atlantis SEZ, for example, there’s a tie-in with talent with respect to artisanal training and so on.
WE DON’T ACCEPT ANY MONEY FROM GOVERNMENT AS THAT ALLOWS US TO BE AN INDEPENDENT VOICE FOR THE PRIVATE SECTOR. Business leadership The second focus area is business leadership, which has two components. The first is the activities we do with the leaders of these corporates which includes intimate engagements with people such as Christo Wiese, Simon Susman, etc, who act as mentors. We engage around specific topics, junk status and Brexit
and the implications thereof. We invite people from the National Treasury or the major banks to participate and engage with the local CEOs. We also host dinners with the Premier and the Mayor, private events around one table so that CEOs can engage with them on issues that are impacting business in the region. This helps drive real working relationships between business and government not just talk shops and “protocol-observed” type events. In the second aspect of our business leadership focus, we started reaching out to the diplomatic corps by launching the Foreign Office Programme. We been quite selective and have focused on the Dutch, the Germans, the French and the English because they are all actively involved in assisting their corporates in this region. From the Asia Pacific region it’s Japan, China, India and the USA, and those eight represented our Foreign Office Programme for 2016. Connectedness Our third area of focus is connectedness and again there are two components. There’s physical connectedness and we are doing a series of engagements with Wesgro where we’re looking at issues of traffic congestion. For example, quite a number of members moving into the Waterfront are concerned about the level of traffic congestion and the way it is negatively impacting productivity. We are exploring different options but also looking at rail and freight logistics and the direct flights out of Cape Town to key economic destinations. Then there is virtual connectedness – the fibre optic broadband infrastructure, the wifi zones, etc. From a social development perspective, you want that infrastructure in the townships. Research has shown that a 10% increase in broadband connectivity results in a 1.3% increase in GDP growth. So the City decided to use its budget and grow the infrastructure and then they came to us and asked what the corporates could do with open access networks. Our corporates are very excited about it because with these wifi zone and fibre optic networks you have an opportunity to access communities that they had difficulty in reaching.
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INTERVIEW Allied to this is the City of Cape Town’s strategy to position Cape Town as Africa’s first smart city. The City had a draft strategy for this but it wanted input from regional players. The tricky thing is they couldn’t go directly to specific corporates because that would have meant those corporates would have needed to be excluded from the procurement process. I suggested that they speak to us because we are not-for-profit and I could organise a workshop with various role-players. The Thought Leaders sessions are popular with Cape Town The first workshop was held businesspeople. at the new Deloitte Greenhouse facility and something amazing happened. As the City officials outlined various where they house all the inventions, all the innovainitiatives, the private sector representatives tions and the spinout companies that come from started putting up their hands and saying things the university environment. Commercialisation out of that incubation space like, “We already have a product that does that”, or “We were planning to do that in five years anyway into mainstream commerce is a challenge and that’s based on our business strategy but now we know where the link with corporates becomes significant. The advanced manufacturing and technology it’s needed we can fast-track it”. So, whereas you might have expected government to take the that’s coming out of those TTOs has blown me away. lead in certain initiatives and for the corporates They attract finance because they’re good products to be gearing themselves up for the procurement, but what happens is, because it is headed by a sciit became clear the private sector could take the ences or engineering graduate, it flounders because lead now that they had the knowledge of where there isn’t a depth of business experience. We initially approached our corporate network government was intending to go. We have now replicated that model for other key to find out if there were individuals who were willinitiatives such as big data, which is relevant to the ing to act as directors with a view to mentoring SKA project. One of the most interesting aspects of these young entrepreneurs and also to potentially the Square Kilometre Array project is that the facility buying an equity stake. What we discovered is that generates data at an absolutely unprecedented rate corporate managers are often governance focused, and we have facilitated some very fruitful discus- whereas what a start-up needs is to grow its market, sions around associated opportunities. to increase efficiency and product development, and to implement systems required for growth. Innovation Unfortunately, some of the corporate people were Allied to that is our fourth focus area, which is in- stifling the start-up with that mindset so we are going novation. We’ve narrowed the focus specifically to to develop a start-up mentorship course (an accredacademia and business, and have also created links ited standardised course) that seasoned professionals with the Technology Innovation Agency (TIA). We can take in order to help them understand start-ups. are working specifically with the Technology Transfer We are also having conversations with players Office (TTO) at each university. Each university has in the e-learning space to drive effective e-learning been mandated to establish a technology office initiatives in our region. WESTERN CAPE BUSINESS 2017
Welcome to Cape Town event, from left to right: CEO of Accelerate Cape Town Ryan Ravens, Katlego Letlonkane Associate, Employment Law, Cliﬀe Dekker Hofmeyr Inc and Savarion Arendse, Old Mutual.
Sustainability Our last focus area is sustainability – food, water and energy security. The drought is obviously influencing food security so we have had people talking about innovative ways of managing water and innovative agricultural practices. Perhaps the most exciting programme in our sustainability focus area is the application that has been submitted to the dti to have Atlantis Green Technology Industrial Park designated as a Special Economic Zone. We can’t compete with the Chinese in terms of solar panel manufacturing and we don’t have the engineering skill and the artisans who can build related electrical engineering components. But what every solar panel needs is a steel mounting structure; what every electrical component needs is a steel casing and steel components. What we’ve been saying to Green Cape and provincial government is, make steel the local content component. You have all these big global traders rushing in because they get a massive tax break (15% versus the usual 29%). That is already a big pull factor, but then you compel them to use local steel. This is will improve prospects for our steel industry but also
stimulate the market for artisans (although demand is already massive). The problem in South Africa is we simply haven’t produced enough artisans and recent studies have shown if we are to implement the National Development Plan and if we are to get our economy back on track we need 40-60% of school leavers doing artisanal training, but at the moment that number is 8%. We see this initiative in Atlantis as the optimal opportunity to establish more artisanal training in colleges. We want to grow the economy in a particular direction but it has to be inclusive; there’s no point in growing the economy in a direction that the mass population cannot participate in. As a result of our engagement with Airports Company South Africa there is a chance that a facility situated between Mitchells Plain, Khayelitsha and Philippi could become the location of an artisanal training college. These are some examples of our tangible and connected approach to growing the regional economy. www.acceleratecapetown.co.za
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South African economy at a glance Insight into the performance of the South African economy is provided through these graphical representations of key statistics. ZIMBABWE
Limpopo 0.9% (7.1%)
Gauteng Mpumalanga 2.7% 2.1% (7.5%) (34.3%) SWAZI-
North West -3.6% (6.5%)
Free State 1.8% (5%) Northern Cape 2.8% (2.1%)
KwaZuluNatal 2.3% (16.1%)
Eastern Cape 1.0% (7.6%) Western Cape 2.0% (13.6%)
SA GDP: Percentage of growth per province (2014) and percentage contribution to national GDP (figures in brackets). SOURCE: STATS SA WWW.STATSSA.GOV.ZA
GRP BILLION RAND
6 916 200
2 817 900
R189.1 R1 305.6
Phumulo Masualle Elias Sekgobelo "Ace" Magashule
13 200 300
10 919 100
Stanley Mathabatha David Mabuza Supra Mahumapelo
5 726 800
4 283 900
3 707 000
1 185 600
6 200 100
Snapshot of South Africa’s provinces SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA
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How South Africaâ€™s economy performed in 2015. * * PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA
Gross Domestic Product by province, percentage contribution. SOURCE: STATS SA W W W.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1
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7% 6% 5% 4% 3% 2% 1% 0
2012 2013 2014 2015 PPI (percentages from 2011 to 2016) CPI (percentages from 2011 to 2016) denotes data for September 2016 rather than the average for the full year.
Inflation rate 2011 to 2016 SOURCE: WWW.STATSSA.GOV.ZA
Mineral products 20.41% Precious metals 18.24% Vehicles, aircraft and vessels 12.57% Products iron and steel 12.02% Machinery 9.69% Chemicals 6.47% Vegetables (including fruit, nuts and cereals) 4.96% Prepared foodstuff (including beverages) 4.29% Plastic and rubber 2.11% Wood pulp and paper 1.92%
South Africa’s top 10 export commodity categories: 2015 SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA
Machinery 25.02% Mineral products 16.12% Vehicles, aircraft and vessels 10.4% Chemicals 10.37% Equipment components 7.3% Products iron and steel 5.54% Plastic and rubber 4.13% Textiles 3.72% Prepared foodstuff (including beverages) 2.93% Photographic, medical equipment 2.71% South Africa’s top 10 import commodity categories: 2015 SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA
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Nedbank Corporate and Investment Banking Nedbank is banking on relationships with corporate clients.
edbank Corporate and Investment Banking provides expert banking services, funding and transactional banking capabilities to corporate clients. Its solutions are customised to suit the needs of each client and the division is committed to providing excellent client service – a commitment that is confirmed by the high ratings consistently provided by client surveys. “We are a relationship-driven business, focused on JSE-listed companies, large unlisted companies, branches or subsidiaries of inbound multinational entities and public sector entities at national, provincial and local government level. The Coastal region incorporates the Durban and Cape Town offices, with clients from Saldanha Bay in the west to Richards Bay in the east,” says Alistair Pearce, Divisional Executive of Nedbank Corporate and Investment Banking. “In the Cape, we have two offices and focus mainly on the life assurance, retail, media, asset management and oil industries, the consumer goods and food sectors, and the public sector – the latter being a sector we’re targeting for substantial growth.”
What we do differently The division provides a differentiated client value proposition, based on established relationships and an in-depth understanding of its clients’ businesses and the industries in which they operate. It provides a fullservice wholesale banking offering – including lending, deposit-taking, transactional banking, global trade services and asset finance – by way of dedicated corporate bankers who are primarily responsible for dealing with corporate clients.
Specific solutions The division provides a variety of funding solutions amounting to between R50-million and several billion rand from short-term and working capital facilities, trade finance and letters of credit and guarantees, to vanilla and complex term debt structures by way of bilateral, club and syndicated transactions, the issuance of corporate paper and other debt instruments. Leveraged buyouts (LBOs) and management buyouts (MBOs) are also funded, with Nedbank Corporate and Investment Banking acting as lead arranger, coarranger or facility agent.
Transactional banking offers full-spectrum domestic-clearing bank services, including current accounts, cash management and electronic banking, through its scalable Internet-based NetBank Business system, its high-volume host-to-host platform, Corporate Payments System, and a full range of cross-border and international transactions. The deposit-taking franchise is strong, with a range of tenor-linked investment offerings paying interest rates, linked to a range of instruments.
Commitment to the community “As part of the Nedbank Group, we are committed to making a difference in the community in which we operate and, through the Nedbank Foundation, contribute to a number of educational causes. We are especially proud of our Western Cape essay writing competition in partnership with the Western Cape Government”. For more information on Nedbank Corporate and Investment Banking contact Alistair Pearce, Divisional Executive on tel: +27 21 416 6825 or email: email@example.com
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Nedbank Business Banking: Making it easier to do business Business customers benefit from Nedbank’s relationship-based banking model.
reat news for Cape business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has over 80 business managers located across the Western Cape who are ready to assist you with professional advice and industry-specific solutions. “At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but can also provide you with relevant solutions and a banking experience that is hassle-free, allowing you to concentrate on the running of your business,” says Goolam Kader, Nedbank Business Banking’s Divisional Executive for the Western Cape. At the core of the bank’s offering is a relationship-based model, with a business manager dedicated to your business as the key entry point into the bank. Each business manager is part of a client services team, additional members being a credit manager, credit analyst and services manager, all of whom have a genuine interest in the success of each individual business. “When you do business with us, you are speaking to people who know the area and are familiar with the various industries operating here,” explains Kader. Kader adds that Nedbank is constantly innovating and these principles are further embedded in our first-to-market approach with the launch of Whole-View Business Banking, which emphasises that by partnering with us, we are able to provide a holistic view of the client`s entire business. This will have substantial benefits to our clients, including leveraging skills and resources across the bank; better business, transactional and cash flow solutions; better understanding of our client`s liquidity risk and associated costs as well as improved overall pricing. An added benefit of banking your business with Nedbank Business Banking is that your business and your personal financial needs as well as that of your employees can be managed in one place. “Very often business owners and their businesses are financially dependent on each other. Our client service teams now also offer individual banking solutions, better advice and a hassle-free service to you and WESTERN CAPE BUSINESS 2017
Goolam Kader, Nedbank Business Banking Divisional Executive, Western Cape your staff as we already know and understand your needs,” explains Kader. With this in mind, Nedbank introduced Nedbank@Work – a unique service to employees of companies who bank with Nedbank. The service facilitates convenient banking at the workplace through bankers or consultants on site, in the branch or via our call centre and internet channels. In addition, Nedbank@Work offers non-financial support to you and your employees free of charge. For more information call Goolam Kader on +27 21 928 2000 or email firstname.lastname@example.org
Nedbank Retail Banking: Making banking accessible to all Nedbank intends working with communities to make banking services more accessible.
ur clients are engaged by skilled, enabled and productive staff who, through meaningful conversations, ensure we deliver our clients’ needs and aspirations. As a bank for all, Nedbank realises that communities and their representatives are key stakeholders in our bank for all strategy. As such, the bank’s strong relations with government, organised business and communities remain a key focus in growing its client base of over seven-million. Our presence in the Western Cape community goes a long way in allowing for greater financial inclusion while contributing to social upliftment and economic development. Nedbank continues to grow its distribution presence across South Africa, including the Western Cape as the fastest-growing province. This enables us to provide accessible banking to all South Africans. We continue to invest in our frontline staff that operate across 95 traditional branches, eight relationship centres and seven personal loan centres. Nedbank has embarked on a distribution strategy to convert all traditional branches to “Branch(es) of the Future”. Branches of the Future are equipped and enabled with world-class technology to create a great place to bank for our clients and a great place to work for our staff. We currently have 25 “Branch of the Future” stores in the Western Cape. To make banking more convenient, we currently have eight branches that operate and trade on a Sunday. For further convenience to our clients, we have also increased our ATM distribution to 606 and Intelligent Depositors to 127 in the province. Nedbank’s client-centred approach has seen the bank intensify its efforts in delivering a distinctive client experience through innovation. The introduction of the award-winning Nedbank App Suite is evidence of the bank’s progress and its understanding of client needs. The App Suite serves as a virtual extension of our distribution network operating from the palm of your hands. “It makes it easy for clients to do their banking securely – from anywhere, anytime,” says Sharon Smith: Regional General Manager of Western Cape Branch Networks at Nedbank. “Our offering in Western Cape Retail extends to Small Business and Professional Banking. We believe that small business is a critical segment of our economy and plays a key role in job creation. To
Sharon Smith, Nedbank Regional General Manager Branch Networks support small businesses we have dedicated relationship managers, either in branch or in relationship centres for every small business account holder. We have a website called ‘simplyBiz.co.za’ that serves as a networking platform for small business owners and provides ongoing support in numerous aspects of business. We also have a fully integrated electronic banking application that incorporates payroll, as well as accounting, all accessible via a single platform,” Smith adds. For more information about our Nedbank Retail Banking offering please call Sharon Smith on +27 21 928 2000 or send an email to email@example.com
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Accessible onsite banking Nedbank is happy to help its clients learn to better manage their money.
edbank@Work aims to make a difference in the communities in which we operate through financial wellness education for all employees in both the private sector and government. This is done through tailored financial fitness and consumer education training. Our continuous involvement in corporate social programmes in communities throughout the Western Cape also supports growth and development.
How Nedbank@Work works for you, the employee It’s hard to focus on anything if you are having personal financial challenges like needing a personal loan, providing for school or university fees, or for unexpected costs like funerals. Unfortunately, dealing with a lot of these worrying financial issues takes time and energy, and more often than not they can only be sorted out during office hours, when you don’t have time.
That’s where Nedbank@Work comes in: Nedbank@Work makes convenient banking at your workplace possible. But, we offer more than just the convenience of having a relationship banker on site to open accounts and address queries; we also help you understand your financial position and work with you on a plan to reach financial fitness.
What are the benefits of Nedbank@Work? •
You have access to a dedicated sales consultant, whose role is to establish convenience and ensure the best service delivery for all employees. Our financial fitness and consumer education training provides you with the services and expert advice you need to help you better manage your personal finances, make provision for unexpected
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circumstances, provide for your children’s education, etc. The Financial Fitness Trainer will also be able to assist you when it comes to improving your credit ratings and managing your budget. You also get great-vaue banking products as well as immediate access to your salary if your company banks with Nedbank. Peace of mind as a result of financial well-being. We’re continuously there on site, making it that much easier to access and expand on and/ or enhance your existing suite of banking products. And because we bring the bank to your workplace, you don’t have to waste your lunchtime by going to the bank to wait in long queues.
Any company or government department interested in offering the Nedbank@Work value to their employees can contact the Area Manager, Shamima Nazeer on +27 21 412 3478 or email ShamimaN@nedbank.co.za
Make the most of your money with our local and international expertise At Nedbank Financial Planning and Nedbank Private Wealth we care about your financial security and goals.
his means ensuring that you have a plan to cater for your circumstances as your needs evolve and change. We provide clients with holistic financial planning and a range of services to support this. As our client, you can build wealth by aligning your decisions with your deepest values and highest aspirations. We offer financial advice that is customised to each client’s needs. For some clients, this is about establishing a financial plan, and for others it may be about customised international estate planning structures and intergenerational wealth transfers. Based on your needs and circumstances, a Nedbank Financial Planner or a dedicated Wealth Manager can help you make the most of your money. To become a Nedbank Private Wealth client, you need to earn at least R1.5-million per year and/or have R5-million of investable assets. But if you don’t yet qualify, you can still benefit from our specialist expertise through Nedbank Financial Planning. We are here to help put a plan in place to grow your money to achieve your financial aspirations.
Your Nedbank Financial Planner and Nedbank Private Wealth Manager have access to specialist teams who can help you: • Structure sound estate and succession plans to protect your own interests and the interest of your family • Grow your money by investing in a range of top local and offshore investments, including using our specialist stockbroking service • Protect your personal and business assets against life’s uncertainties through shortand long-term insurance solutions • Access your money whenever and wherever it suits you through a full range of local and international banking services available through a single point of contact; • Give your wealth a life beyond yours by leaving a legacy with our philanthropy services Contact Nedbank Financial Planning on 0861 238 887 or contact Nedbank Private Wealth on 0860 111 263. Visit www.nedbank.co.za.
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Old Mutual’s Provincial Management Board Old Mutual’s Provincial Management Board (PMB) was created to enable positive futures through collaboration at all levels of the organisation. What are the Provincial Management Boards? Each province in South Africa has a board that is served by an Old Mutual Exco member and representatives from the business units, including Corporate, Retail Affluent, Retail Mass, Old Mutual Investment Group, Mutual & Federal and Nedbank.
We also fully support the National Development Plan (NDP) as, for us, the fundamental objectives of the Plan (reducing poverty, unemployment and inequality) can best be achieved through forging healthy public and private partnerships.
How important is networking in order to achieve the Board’s objectives? We believe strongly in the importance of networking. Senior members of OMSA as well as the Old Mutual Investment Group go on roadshows across South Africa a couple of times a year to visit various regions and meet with Provincial Management Boards, key stakeholders and employees. The main objective is to build strong relationships and networks, and then to share these insights and updates with our colleagues throughout the Old Mutual group.
Savarion Arendse, Provincial Management Board Chairman
What is their objective? The boards were established in order to drive priorities and performance in the regions. Our key objective is to promote collaboration and efficiency by aligning projects, decisions and resources of the different business units in the regions. This is to help Old Mutual South Africa (OMSA) execute its strategy in the regions with greater effectiveness. The boards enable us to maximise synergies and cross-fertilisation between the different businesses in the regions and allow us to approach customers and the communities we serve as one green group. They also play an important role in building our brand and reputation:
Who makes up the PMB membership and what are their roles and responsibilities? The PMB comprises senior leadership of each business unit represented in the province, in addition to senior leadership (regional managers) for Nedbank and Mutual & Federal, as well as the OMSA Exco. The roles and responsibilities of the PMB chairperson is as follows: • Fostering collaboration. • Removing obstacles to the PMB’s successful delivery, adoption and use. • Maintaining at all times the focus of the PMBs on the agreed scope, outcomes and benefits. • Monitoring and managing the factors outside the PMB’s control that are critical to its success.
How do they benefit the communities you operate in? Through the relationships they manage, the Provincial Management Boards play a key role in positively impacting South Africa’s socioeconomic development in the regions. It is key to our corporate culture that we strive to improve the lives of people and uplift the communities we serve, and we believe that this helps to keep the OMSA fortress strong. WESTERN CAPE BUSINESS 2017
Old Mutual SuperFund – A Comprehensive Retirement Solution Old Mutual Corporate has developed a flexible and dynamic retirement savings umbrella fund that offers substantial employee benefits – at the same time helping the company to grow their appeal as an employer of choice.
Help your employees save for retirement Every business in SA needs to incentivise and enable its employees to save for their future – not only for the wellbeing of those employees, but also to help South Africa build a savings culture. By making employee benefits more accessible, flexible and affordable than ever before, Old Mutual SuperFund offers a simple way for businesses to help their employees save for retirement. Old Mutual SuperFund is as unique as your company, and delivers exactly the right solution, at the right price, tailored to the needs of your business and its employees – regardless of the size or diversity of your workforce. It does this by means of three simple, distinct and highly effective retirement funding and risk cover solutions, each with its own, flexible level of member and employer choice. As a result, Old Mutual SuperFund has made employee benefits a reality for businesses of every shape and size across South Africa. And it can do the same for your business.
Adapt s to the changing needs of your business; Integrates seamlessly into your business and payroll processes; Has simple eligibility requirements to maximize employee Clint Beech, access; Offers transparent, Regional Sales simple and affordable Manager fees*; Uses a risk-free authorised collection payment processes; and Comes with dedicated, professional support.
For more information on Old Mutual SuperFund visit www.oldmutual.co.za/superfund or speak to your financial adviser.
Why should you invest in employee * When comparing employee benefits costs with that of benefits our competitors, be sure to consider all the fees involved, Offering employee benefits unlocks significant including those for investment management, advice, competitive advantages, not least of which is an and administration. enhanced appeal as an employer of choice, so you can compete effectively for the best talent. And when your employee benefits are delivered through Old Mutual SuperFund, the benefits are compounded because the solution:
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A passion for people Old Mutual’s success as a trusted investment, savings, insurance and banking group since 1845 has been built on financial acumen and dedication. Another critical aspect of the Old Mutual business is the passion for the communities we serve, says Helene Africa, Provincial Manager at Old Mutual.
How did the Mass Foundation Cluster come into being?
In what ways has your business adapted to suit your clients changing needs?
Old Mutual is 170 years old but the Mass Foundation Cluster started 40 years ago, primarily because we identified a need in the middle-income market for our products. Employers also asked for something for their clients who were not in the high-income bracket, such as a simple funeral product or even a basic savings or retirement product. As our clients evolved and our initial client basket of two products became increasingly bigger until we had a whole basket of products, even down to education. We try to listen to our clients and help them to progress with their financial life as their needs change. Today the Cluster includes the short-term insurance product iWYZE through to financial support products such as loans, consolidation products and any financial need a client might have. In the past clients would have to go to a competitor for assistance with a loan and then other financial products as their needs changed, so we realised that we needed to look at a client’s financial needs from a wider perspective to be able to retain them as clients and also to accommodate their growing needs. We operate through four divisions: • Foundation Business Unit • Retail Mass Business Unit • Old Mutual Finance Business Unit • iWYZE However, our focus and vision continues to be centred around our clients as we aim to be their most trusted partner. As our customers are at the hub of our business we constantly look at ways of earning and building on their trust by delivering on time and delivering value-for-money prodicts. WESTERN CAPE BUSINESS 2017
We launched new technology aimed at improving service Helene Africa, to our customers, as Provincial Manager we moved from a manual environment to paperless and harnessing the power of technology. All our advisers are now equipped with laptops and they run everything through this, instead of paper. Information is now captured from point of sale in order to reduce errors and to prevent a paper application from being lost. It has been a big innovative move and shift for us but it was essential as young people in particular want to do things online without face-to-face interaction, so it’s important to satisfy that need. This came about because we always listen to what our clients want. We are also constantly researching the digital environment and what our future client is going to look like. What are some of the challenges you face in doing your business?
Insurance is not a product that sells itself, and clients don’t come knocking on your door. You have to go out and create awareness about why these products are important for them to consider. The middle-income segment don’t necessarily have lots of disposable income to cover the costs related to death in a family or a serious
FOCUS effort to work in and create opportunities to give back through staff volunteering. Staff who want to participate can choose if they want to give of their time, or they can give from their paycheck. To honour their contribution, Old Mutual then matches that amount at the end of the year and distributes it to the relevant communities. We also make funds available for our staff members who have been working on community projects. This is our Staff Volunteerism programme where Old Mutual will donate up to R20 000 to a project if our staff are supporting it with their time. This obviously gives back to the community, but it also allows Old Mutual to honour and support our staff who give of their time through a meaningful cash donation.
injury or illness, so the need to have insurance is definitely out there. However, there is a big educational need, which is why we went on a journey with our Financial Education which offers the public information on money management as well as financial workshops, and also employ facilitators to train communities, clients or stakeholders. Even if we don’t bring any business from these workshops and initiatives, they have a wider micro economic benefit, and this impacts on the macro economy, so we see it as an important project. However, once you start speaking to people it’s a whole new world and they suddenly realise they have been wasting money for a long time that could easily have been used to protect or build their financial life. It’s important to us to help people who aren’t earning much to realise their dreams and to reach their goals. What we aim to bring to the attention of our clients is the fact that, when it comes to your finances, if you make a mistake you won’t pay for it now – instead you really pay for it in 10 to 15 years time. Unfortunately a lot of people wake up too late and suffer financially. This is also why it’s critical to get out there to the young workforce in particular, because if we can help people to start out with the right decisions and products from the start of their career it will make a tremendous difference to their financial future.
What is different about how you do your business?
With our Mass Business unit we pay our advisers salaries, not commission. We find that salaried staff are better able to offer the correct service to the public and that distinguishes them from commission earners who are, perhaps understandably, motivated by their commission. By paying them a salary we believe it allows them to really look after the client and to build trust as a financial adviser, not just a sales person. Our advisers are then better able to sell a client what they need and what they can afford, not what the salesperson wants in terms of their commission. Our aim is to provide that really good service because then we start to build a good relationship with the client and they will then hopefully want to seek our advice for their other future needs. We see it as really caring for their wellbeing and then going on a journey with the client, and by seeing them as a person. We’re also very passionate about our people our clients and our staff – and if you walk into our business you will get the sense for how they care. That spirit has really helped to make us successful.
How else does Old Mutual give back to the community?
We are passionate about giving back to the communities in which we work, so we make an
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Old Mutual’s debt consolidation Old Mutual Finance has developed a unique plan to help clients who are battling to survive financially to consolidate their debt and save thousands of rands on initiation fees and administration charges – helping clients to manage their finances in a smart way.
What makes our lending business diﬀerent? At Old Mutual Finance, we have a deep rooted respect for our customers, for their circumstances, needs and culture. It drives us to treat customers with dignity, provide outstanding service and to do our utmost to provide the best financial solutions. Old Mutual is known as the savings and assurance powerhouse of South Africa. We also recognise that lending is a reality for most people. Generally lending and savings are seen as conflicting needs and offerings. Old Mutual Finance therefore takes an holistic view of customers’ savings, risk and lending needs by providing a balanced basket of products that meet these needs.
Old Mutual Finance has opened more than 250 new retail branches conveniently located in shopping centres, CBD’s and near transport nodes, offering lending, transactional banking, insurance Buyisile Keli, sales and client servicing. Each client receives a Senior Provincial free copy of their Experian Manager at Old credit bureau profile as Mutual Finance part of our consultation, along with guidance on what to do if certain of their bureau information is incorrect. As part of our ongoing commitment to financial education, clients are also informed about what kinds of behaviour can improve their credit records. Do the smart thing and contact your nearest Old Mutual Finance Branch, and get your plan to financial freedom.
What are our lending principles? • Affordability is the cornerstone of our lending. Debt is often seen as bad. However, if used responsibly and prudently, debt can open many doors and opportunities for customers – think about loans for education, home extensions etc. It is therefore vital that customers understand their repayment obligation and be able to afford the loan instalments over the period of the loan. • Financial education. The financial services industry is complex and financial terms can be equally confusing. During the loan application process our Financial Consultants provide basic financial education to this end. • Spending time. We prefer spending more time with customers to ensure that they understand the loan process and take their obligations under the agreements seriously. Applying for a loan shouldn’t be as easy as “buying a loaf of bread”. WESTERN CAPE BUSINESS 2017
Visit www.oldmutualfinance.co.za to find your nearest branch or call us on 086 000 0886
Advice that matters Old Mutual has a dedicated team of advisers who are trained and accredited to offer you expert advice backed by the experience of Old Mutual’s investment professionals.
You know the value of advice in your respective field of expertise. At Old Mutual, we are not business specialists, but we do know a lot about financial planning.
management business has a comprehensive offering tailored to meet the needs of high net-worth individuals through personalised financial service to every customer.
We have a team of financial advisers who can give you the right advice at the right time and create financial security for you, your business and your family. A personal financial adviser will meet with you at your convenience, get to know you and keep abreast of changes in your life and business, in order to ensure your financial plan stays aligned.
Barend van der Westhuizen, We build on our Regional General heritage of trust Manager, PFA and accountability to Western Cape help our customers thrive by enabling them to achieve their financial goals. Our team of financial experts offer you peace of mind in partnering with a company with a track record of looking after our customers.
Old Mutual provides financial advice for middleand high-income customers through our focus on our long-term savings, investment and protection of business. We do this by delivering on our promise to be every customer’s most trusted financial partner, helping them to achieve their lifetime goals.
For more than 170 years, Old Mutual has been meeting the diverse financial needs of millions of South Africans. Let us do it for you as well.
We also believe true wealth is about more than just how much money you have. It is about being able to live the life you want. Our wealth
Physical address: Carl Cronje Drive, Southgate Office Park, 2nd Floor, Tyger Waterfront, Bellville 7530. Email: firstname.lastname@example.org Telephone: 021-974 8607 (office)
OLD MUTUAL PERSONAL FINANCIAL ADVISERS • Undergo mandatory Financial Advisory and Intermediary Services (FAIS) compliance. • Complete extensive training. • Have access to in-house resources including specialist advice on legal and tax issues. • Have access to research and advanced financial needs analysis and planning software.
WESTERN CAPE BUSINESS 2017
Special Economic Zones are boosting growth on the West Coast Dedicated development hubs on the West Coast are tapping into the potential of two of the fastest-growing economic sectors in Southern Africa – oil and gas and manufacturing for the renewable energy sector.
he Department of Trade and Industry (dti) is the lead agent in the creation of Special Economic Zones (SEZs), which are part of the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports. Industrial Development Zones (IDZs) are a type of SEZ. Several incentives are available to investors in SEZs. These include tax breaks from the South African Revenue Service (SARS), subsidised interest rates from the Industrial Development Corporation (IDC), subsidies for employees earning below a certain level and subsidies for the training of the workforce, incentives and grants from the dti, and incentives from national electricity utility Eskom. Other benefits might include a building allowance, employment incentives and the fact that an SEZ is a customs-controlled area. Skills transfer is another stated aim behind the SEZ programme. Specific incentives relating to energy savings and reductions in environmental impact are available, both from Eskom and the dti. Within the dti’s Manufacturing Competitiveness Enhancement WESTERN CAPE BUSINESS 2017
Programme there is a Green Energy Efficiency Fund, all of which are designed to make investment – of the right kind – more attractive.
Atlantis The suburb of Atlantis was one of apartheid’s bad experiments that left residents stranded far north of the metropolis with no industry or employment to speak of. The planned creation of an SEZ with a focus on green technology is already changing that reality. The SEZ is a collaboration between the Western Cape Provincial Government (whose unit GreenCape is taking the lead), the City of Cape Town and the dti. Although the SEZ has not officially been established, several important investments have been made into the area and the idea is gaining traction. Spanish wind-tower manufacturer Gestamp Renewable Industries (GRI) has added to its initial investment of R300-million, which created 200 jobs. Others include Resolux (R25-million), which
SPECIAL FEATURE makes internal components of wind turbines; Kaytech (a geotextiles firm) which has recently expanded (R130-million), as has Skyward Windows (double glazing, R50-million). All told, there has been about R680-million invested Atlantis in the green technology field. Chinese giant Hisense established a high-tech factory in Atlantis in 2013, and is keen to expand its investment down the value chain, especially using green technology to make more efficient fridges and television sets. The proposed Atlantis Green Tech SEZ has several particular incentives available. These include: • Financial measures including an electricity tariff subsidy • Exemption from land-use application fees • Assistance from the City of Cape • Town for companies to obtain faster environmental authorisation from the Department of Environmental Affairs and Development Planning The state (through the dti) is likely to pass legislation that requires developers to increase the level of local content on the solar panels or wind turbines that are used in renewable energy projects. Any movement in this sphere could benefit Atlantis.
Saldanha Bay The Saldanha Bay Industrial Development Zone (SBIDZ) has formally been in existence since 2013 and has ambitious plans to tap further into the burgeoning oil rig maintenance and repair business. About 130 rigs round the Cape every year, and at the moment South Africa attracts only a tiny fraction of them to its ports. The SBIDZ fits neatly into two over-arching visions: Operation Phakisa (the national
government’s strategy to unlock value from the “Oceans Economy”) and Project Khulisa, the targeted growth strategy of the Western Cape Provincial Government, which includes servicing and repairing of oil rigs as a priority. South Africa currently accounts for 1% of the global market of ship repair and refurbishment. Priority sectors at Saldanha are upstream oil and gas and marine engineering and services, and 32 companies have already signed non-disclosure agreements as investors in the IDZ. The IDZ is run by the SBIDZ-Licencing Company, which works together with the Transnet National Ports Authority (TNPA) on many joint projects. These are being undertaken to create good conditions for possible investors. Quay-side infrastructure has been upgraded including a wastewater treatment plant and a new road and bridge over the MR559. Fencing and access control points in support of the customs zone are being constructed. Three major projects are under way or in the planning stage and are overseen by national government, the Southern African Oil and Gas Alliance (SAOGA) and 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. Berth 205 This is the name of a planned specialised rig and vessel repair quay that will be able to cater to the latest design in oil rigs. Mossgas Jetty Equipment and vessel-servicing facility: this planned 1 000m-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 several studies on the possible location of the jetty and the local and international market will be canvassed for companies to do the work. WESTERN CAPE BUSINESS 2017
Celebrating export excellence The well-established Western Cape Exporter of the Year Competition, hosted by the Cape Chamber and sponsored by the ECIC, highlights the diversity of export products originating in the province.
Finalists and winners at the ECIC/Cape Chamber Western Cape Exporter of the Year Competition.
bagold Ltd, the Hermanus company that breeds, grows and exports abalone by the ton, was declared the big winner at the ECIC/Cape Chamber Western Cape Exporter of the Year Competition at the gala dinner held on 13 October 2016 at the prestigious Cape Sun. The Cape Chamber, which has served as the host for the awards for 26 years, serves, enables and leads business in the region. The Export Credit Insurance Corporation (ECIC) is the headline sponsor of the competition and an underwriter of export credit loans and investments. WESTERN CAPE BUSINESS 2017
The theme for the evening was “out of this world”, and it was indeed an intergalactic experience. Incidentally, as the first African into space, Mark Shuttlelworth’s company, Thawte, was a previous competition winner (and sold to VeriSign shortly thereafter for R3.5-billion). The 12 finalists for the 2016 awards included:
Abagold Ltd, the world’s largest abalone producer outside Asia Afrinatural Holding, producers of natural botanical ingredients from all over Africa All Women Recycling, transforming plastic waste into beautiful handicrafts Bassalicious, producers of a range of vibrant and tasteful natural sauces Chimpel, an innovative design and manufacturing company producing exotic leather merchandise Franz Falke Textiles, producers of socks and fine hosiery Geo Data Design, a geospatial solution provider providing industry-leading geographic solutions tailor-made for Africa JF Hillebrand, an international service provider specialising in the logistics of beer, wine, spirits and keg supply chain management Klein Karoo International, the world’s leading producer of ostrich goods, including meat, leather, feathers and by-products Mervyn Gers Ceramics, specialits in bespoke dinnerware designed in collaboration with award-winning chefs Oh Voila design, manufacture, retail and wholesale of affordable fashion jewellery, accessories and corporate handmade gifts Peninsula Drums, specialises in the manufacture and reconditioning of metal and plastic drums as well as bulk containers
Technical Systems, a key manufturer and world-wide distributor of livestock feeding equipment Abagold Ltd won both the overall prize for excellence in exporting, which included R50 000 in cash and the Cape Chamber award for the best nonmanufacturing company. For the first time in the history of the competition, there was a tie for second place with Franz Falke Textiles, which won R20 000 worth of IT assistance from Auric Consulting, and Geo Data Design winning a R20 000 branding refresh supplied by Fable Design (also an Auric Consulting company). The Transnet Port Terminals Trophy for the best engineering/manufacturing company went to Franz Falke Textiles (Pty) Ltd. The company makes 8.5-million pairs of running socks, mostly for the United States market and is the first textile company to be an export winner for many years. Geo Data Design (Pty) Ltd, a company that interprets satellite images and information, won the Credit Guarantee Small Exporter Trophy and the Gerald Wolman Trophy for excellence in exporting to African countries. It also shared the overall second prize with Franz Falke Textiles (Pty) Ltd. Another double winner was Technical Systems (Pty) Ltd, which manufactures automated feeding systems for intensive pig and poultry farms. It won the Bonitas Innovation Trophy and the SAGITA Trophy for excellence in design. The Nedbank Trophy for Transformation went to Bassalicious (Pty) Ltd, a company that produces and exports quality sauces. The Exporter of the Year is not judged on the volume or value of product produced, but on excellence in exporting. This creates a level playing field for both big and small exporters. For the 2016 competition, we did some arithmetic and found that the entrants earned more than R3-billion in foreign exchange for the Western Cape. The finalists alone brought in more than R1.7-billion! Add to that the previous entrants that continue to export, and we are looking at many billions of rands brought into the Western Cape economy. Also, the provincial government and the City of Cape Town are keen to promote business and go out of their way to make it a little easier to get things done. The Chamber believes that this kind of teamwork and quality of enterprise and innovation shown by our exporters will make for a better future for us all. Here’s to the 27th Exporter of the Year in 2017! •
For more information on the 2017 Exporter of the Year competition, please email Mary-Jean Thomas-Johnson at mary-jean@ capechamber.co.za or contact her on +27 21 402 4300.
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Skills development A number of investors are driving skills development in the province.
he Western Cape has two problems relating to employment: not enough work for unskilled workers, and not enough skilled workers to take up available jobs. This double-sided challenge is a legacy of apartheid and it exists throughout South Africa. Although the province has higher overall ratios of highly skilled and skilled workers than the national averages, less than 20% of the construction industry’s workforce in the Western Cape is categorised as skilled or highly skilled (Quantec, 2013). According to a national business conditions survey conducted in early 2016, a skills deficit is hampering the construction industry. Construction has been one of the best performing sectors in the Western Cape economy for a number of years, so improvement in this sphere is vital. The food sector is the other important area where work has to be done to impart skills to the workforce. The Western Cape Provincial Government has listed skills development as one of four key “enablers” of the regional economy. A specific intervention relevant to the construction industry is offered by the provincial Department of Transport and Public WESTERN CAPE BUSINESS 2017
Works. Targeted training for emerging contractors is presented in regional centres like Riversdale and Worcester, and in Piketberg and Saldanha. The fourweek, modular course, which covers issues such as site management, safety and enterprise development, allows contractors to continue running their businesses while they study. The course supports the Expanded Public Works Programme (EPWP). Another provincial initiative was launched in October 2016: the Western Cape’s Apprenticeship Game Changer. Announced at the annual meeting of the Premier’s Council on Skills, the Game Changer aims to introduce 32 500 qualified apprentices into the labour market by 2019. R1-billion has been allocated over a three-year time frame. Businesses have been asked to identify the specific skills they need, so for example the oil and gas sector needs welders certified to a certain level. A range of interventions at national and regional level have been launched to tackle the problem in the public and private sphere: • Six of South Africa’s biggest construction companies have established a R1.25-billion skills fund
SPECIAL FEATURE The national Department of Higher Education and Training (DHET) declared the period starting in 2014 as “The Decade of the Artisan” with a goal of producing 30 000 per year by 2026 (the current figure is about 13 000) • Sector Education and Training Authorities (SETAs) collect dues from companies in a particular industry (Wholesale and Retail, Banking, Construction, Chemical Industries, for example) in order to promote training in that industry. A percentage of this money is returned to the company if that company can show that they have a workplace training plan. The rest of the money is used to offer skills training • The National Skills Authority (NSA) works with SETAs in carrying out the National Skills Development Strategy (NSDS). The Human Resource Development Council of South Africa (HRDCSA) is an over-arching body that aims to give guidance to the many institutions working on skills development and training. It is managed by the DHET. The HRDCSA has identified five key areas where the skills pipeline must be improved: access to TVET colleges; intermediate skills (artisans in particular) and professionals; production of academics; collaboration between industry and educational institutions in research and development; worker education and foundational learning. The strategic goal of the DHET is to create “a capable and skilled workforce for inclusive growth”. There are many institutions supporting this goal in the Western Cape, including three academic universities, one comprehensive university, one university of technology and six Technical and Vocational Education and Training (TVET) colleges. Unisa, the country’s biggest distance learning institution, has a strong presence in the province with a campus in Cape Town and a service centre in George. •
TVET colleges have been asked to concentrate on 13 trade areas, including bricklayers, millwrights, boilermakers and riggers. R16.5-billion has been allocated by national government to skills development and infrastructure over the medium term.
Technology CiTi, the Cape Innovation and Technology Initiative, is a Western Cape Provincial Government initiative. CiTi is a technology hub with several components: The Barn (supporting start-ups); VeloCiti (enterprise and entrepreneurship development); CapaCiti (technology skills development and placement). The renewable energy sector holds great promise for economic growth, and it should provide many jobs but specific training is required. In collaboration with the German government, the DHET has invested more than R100-million in the South African Renewable Technology Centre (SARTEC), a teaching unit of the Cape Peninsula University of Technology (CPUT). The Bellville campus of CPUT is training wind turbine service technicians and providing qualifications for trainers in the same field. Stellenbosch University (SU) hosts the Centre for Renewable and Sustainable Energy Studies (CRSES) and the University of Cape Town has the Energy Research Centre. Young people are at the heart of the provincial government’s drive to widen access to information technology. As of 2016, a total of 181 MOD centres had been established by the Department of Cultural Affairs and Sport: MOD stands for Mass participation; Opportunity and access; Development and growth programme. This is part of a broader, R9.4-billion, provincial government plan to assist young people in areas such as access to broadband, internships offered, and the acquisition of technical skills.
TVETs and colleges TVET colleges exist to impart skills that are relevant to the workplace. The College of Cape Town has eight campuses and its selection of courses gives WESTERN CAPE BUSINESS 2017
SPECIAL FEATURE a good illustration of the range of studies available to students at TVET colleges. Courses at CCT range from engineering (electrical, civil and mechanical), through travel and tourism, hospitality, hair care, beauty therapy and art and design, to business studies, information technology and education and training. The college has three residences in different parts of the city. Career guidance is offered and the college has a work placement programme for graduates. Northlink College is in Cape Town’s northern suburbs and is an innovator in workplace monitoring. It has three business units that give students experience: Hair and Cosmetology, the Clothing Factory, and a restaurant and conference centre. The Fitting and Machining Centre of Excellence at Wingfield has the latest equipment. False Bay T VET College has campuses in Fish Hoek, Muizenberg, Mitchells Plain, Khayelitsha and Westlake. Engineering skills are a key focus for this college, together with hospitality. Appropriately, given its geographic locations, False Bay TVET also teaches Yacht and Boat Building. The college has an enrolment of more than 10 000. Outside 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. Private colleges such as MANCOSA (Management College of Southern Africa) often specialise in particular fields. In this case, a range of certificates, diplomas and degrees in business, commerce and administration is presented at five sites around South Africa, including Cape Town. The business training WESTERN CAPE BUSINESS 2017
programmes of Africa Skills Private College include courses on leadership, occupational health and safety and new venture creation.
Universities In 2014, a total of 5 680 engineers qualified from South Africa’s 26 universities. A further 2 667 computer scientists were capped but these numbers are far from adequate to cater to South Africa’s economy. Western Cape universities are very aware of the need to align their courses and research programmes with
SPECIAL FEATURE the needs of the economy. However, pure research cannot be ignored and in this area all three of the academic universities are strong: the University of Cape Town, Stellenbosch University and the University of the Western Cape. A Master of Business Administration (MBA) is offered both by the Graduate School of Business at UCT (which also has an executive MBA) and the University of Stellenbosch Business School. USB also presents an MPhil in Development Finance. The National Nanoscience Postgraduate Teaching and Training Platform is based at the University of the Western Cape in Bellville, with master’s degrees in nanoscience and nanotechnology on offer. UWC also has 14 SARChi Chairs, including Nano-Electrochemistry and Sensor Technology, Bioinformatics and Human Health Genomics and Microbial Genomics. There are three World Health Organisation (WHO) Collaborating Centres at UWC and the Centre of Excellence in Food Security (with Pretoria University) is funded by the National Research Foundation and the Department of Science and Technology. Biotechnology and food security come together in the Plant Biotechnology Research Group at UWC, which studies ways of developing crops that can resist drought. This kind of focus on specific challenges facing society in South Africa is an example of universities working to make their research relevant. The University of Cape Town is offering a course in Health Innovation that encourages talented young South Africans to find solutions to the
country’s health problems. The MPhil in Health Innovation falls under the Division of Biomedical Engineering and is open to anyone with a four-year degree in a relevant discipline, which could be anything from medicine to engineering. Several master’s degree programmes at UCT aim to address the particular challenges of South African society: the Climate Change and Sustainable Development degree can be tackled through any one of the university’s six faculties and in 2017 a new degree will be on offer, a Master’s in Public Health (Faculty of Health Sciences). Another UCT degree that tackles a specific challenge faced in the South African economy is a Master’s in Sustainable Mineral Resource Development. Stellenbosch University is another Western Cape institution that is tackling sustainability: a diploma will soon be on offer in this discipline, through the School for Public Leadership. The university also intends offering an MSc in Food and Nutrition Security that will tackle the problem from several angles. In George, students have access to courses offered by 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. Among the new courses on offer at the Cape Peninsula University of Technology are diplomas in geomatics (one of South Africa’s most soughtafter skills to aid surveyors, town planners and civil engineers), clothing and textile technology, and horticulture and landscape architecture.
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College of Cape Town The forward-looking college has a history dating back to the early 20th century.
Louis van Niekerk, Principal of the College of Cape Town
• • • • • •
The College is a public Technical and Vocational Education & Training (T VET) College, under the Department of Higher Education an d Tr ainin g . Qualifications offered are accredited, affordable and quality assured by Umalusi, various SETAs and SAQA.
Location of facilities The College is situated in the central area of the Peninsula. The central office is located in Salt River, and the College of Cape Town also has three residences. It has eight campuses located in: • Athlone • Cape Town city centre • Crawford • Gardens • Guguletu • Pinelands • Thornton • Wynberg
Description of 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 in high demand by commerce and industry.
Support services Students at the College may access a variety of support services to assist them within coping with problems and difficulties, whether personal or academic. These services are provided free of charge and include: • Counselling • Academic support • Health education workshops • Assistance in applying for loans (loans are not supplied directly by the College)
Students are able to pursue a range of courses in the following disciplines: • Art and Design • Beauty Therapy • Building and Civil Engineering • Business Studies • Education and Training WESTERN CAPE BUSINESS 2017
Electrical Engineering Hair Care Hospitality Information Technology Mechanical Engineering Travel and Tourism
PROFILE • Work placement services • Social and cultural services
Key facts and figures Year established: 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. As the name suggests, we are based in Cape Town. 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. This arose from a rationalisation in TVET colleges in which some 150 colleges around the country were reduced to 50. No of staff: 670 (full-time) No of registered students: 14 379 Qualifications offered: Certificates, Higher Certificates, Diplomas, UNISA B.Ed Degree (Foundation Phase), Skills Programmes, Learnerships, Accredited Trade Test Centre
CONTACT INFO Key contact people: Louis van Niekerk, Principal. Wilfred Jackson, Chief Financial Officer. Sharon Grobbelaar, Marketing Manager. Physical address: 334 Albert Road, Salt River, Cape Town 7945 Postal address: PO Box 1054, Cape Town 8000 Tel: +27 21 404 6700 / 086 010 3682 Fax: +27 21 404 6701 / 086 615 0582 Email: email@example.com Website: www.cct.edu.za
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Member-oriented scheme strengthened by high reserves Christo Becker, Principal Officer of Selfmed, shares some insights on the medical insurance industry.
Please provide an overview of Selfmed, including the history and size of the organisation.
Selfmed Medical Scheme was established 50 years ago and it is one of the older schemes in South Africa. Providing coverage for about 8 000 principal members and 13 000 beneficiaries, we are one of the smaller schemes and we focus on providing individual attention to our members. Our size allows us to do this. Could you outline the different schemes?
BIOGRAPHY After completing his studies in 1996, Christo worked as a paramedic in Cape Town and Port Elizabeth (where he was seconded to run the Eastern Cape operation for Netcare911). He furthered his career in healthcare when he was appointed as hospital manager for a hospital in the Netcare Group. Christo went on to manage a number of other hospitals before joining Selfmed Medical Scheme as the Principal Officer in 2014. WESTERN CAPE BUSINESS 2017
Members are able to choose one of five medical aid options: Selfnet – this entry-level product is our most affordable as it covers a narrow band of benefits. MedXX1 – a hospital plan that extends beyond the prescribed minimum benefits and pays out at 100% of scheme rates for covered in-hospital treatment and in-hospital doctor’s consultations. Selfsure – an option that provides in-hospital and out-of-hospital benefits and is a great choice for a family with young children. Med Elite – a broader hospital plan that covers additional conditions including greater coverage for oncology expenses, hip, knee and back operations. Selfmed 80% – 80% of bills relating to a wide range of conditions are covered. What is the solvency ratio of Selfmed and how does this compare to other medical aid schemes?
Selfmed has a solvency ratio of 118%, which is way more than the 25% mandatory requirement. We are one of the top schemes in the country in terms of our reserves. What differentiates your offerings from those of your competitors?
Selfmed has a very strong member focus. As someone who has previously worked as a paramedic and a hospital manager, I’m passionate about healthcare. All of us share the passion and want
INTERVIEW to ensure our Selfmed members receive good healthcare. We are able to attend to requests for ex-gratia payments on a case-by-case basis and our members appreciate knowing that their health conditions are not compared to other people’s, but are evaluated individually. Furthermore, because our cash reserves are so high and our systems (administration, call centre and marketing, etc) are managed internally, members feel confident about the level of service we can provide. What is your view of the National Health Insurance (NHI) scheme and how do you think it will impact private healthcare in South Africa?
We all support the idea that healthcare should be accessible to all, however, a number of issues weren’t addressed in the White Paper. These include what the basket of care will look like and who will provide the care. This is the first phase of a 14-year implementation period and it is likely that the parameters of the NHI will change during its implementation. A specific risk for private healthcare providers relates to the introduction of a one-payer system. I don’t think people are going to be happy to take the money they usually pay into a medical aid and pay it into a centralised state-run system. Given that the UK, with its lower unemployment rate and higher number of taxpayers and health professionals, struggles to deliver the desired level of care via its National Health Service, it is unlikely that that South Africa will have the reserves to roll out a system that will rival private healthcare. How does the South African healthcare system compare internationally?
Africa – private medical care and medical insurance – is equal to the best in the world. Many of our doctors and medical professionals go overseas for training or to attend medical conferences and we have some of the most advanced medical equipment in the world in our private hospitals. Furthermore, in countries like the USA, medical care is far more expensive than it generally is in South Africa. Ideally, representatives of the entire healthcare industry here should get together to discuss challenges and collaborate on viable ways to solve these so that quality healthcare can be made accessible to more people. Increased legislation, particularly legislation relating to prescribed minimum benefits, has meant that medical schemes are under increased pressure though. www.selfmed.co.za
I believe that the private healthcare system in South
WESTERN CAPE BUSINESS 2017
KEY SECTORS Overview of the main economic sectors of the Western Cape
Wine and grapes
Oil and gas
Construction and property development
Banking and financial services
Information and communications technology
Business process outsourcing
Focus on economic game-changers Western Cape Business spoke to Western Cape Provincial Minister of Economic Opportunities Minister Alan Winde about creating growth and jobs.
Alan Winde, Western Cape Provincial Minister of Economic Opportunities
BIOGRAPHY Alan Winde became MEC for Finance, Economic Development and Tourism in May 2009, shortly after the Democratic Alliance won the Western Cape Province. Winde has been a member of the Western Cape Provincial Legislature since 1999. During his first term he served as provincial finance chairman and executive committee member with the Democratic Party. He has also served as chief whip of the official opposition in the Western Cape, as the DA spokesperson on Environment and Planning and as the deputy DA spokesperson on Economic Development and Tourism. WESTERN CAPE BUSINESS 2017
What is your brief?
Defining my job is easy. I am responsible for making provincial strategic goal number one – creating growth and jobs, happen. Together with my team, we’re looking at strategies to improve every facet of our economy. We’re obsessed with making our region more competitive and more compelling as a place to live, work and play. When I came in for the second term, I was determined to become the most accessible Ministry in South Africa, in touch with business people and in the heart of the city. So we moved our office space to a renovated ground-floor shop on Long Street. What are your priorities? We have identified a suite of economic game-changers. These include getting rid of red tape so business can start and operate more efficiently; securing stable energy for growth; improving broadband access; and ensuring we meet the demand for skills. For instance, in reducing red tape, in an area like the Voortrekker Corridor space, how do we as government put pre-zoning in place? We can do the environmental impact assessment (EIA), and the developer submits a planning proposal. In this way, you enable an easier decisionmaking process for developers. We need to put the levers in place so that this process does not take six months, but six weeks. Securing a reliable and affordable energy supply is also an important enabler. In the Western Cape, our approach is to diversify our sources of energy. The Information Communication and Technology (ICT) sector is growing at lightning speed. The Western Cape government’s incubators at the Bandwidth Barns in Woodstock and Khayelitsha lead our efforts to inculcate a culture of new tech innovations, led by driven entrepreneurs, and there has been huge interest by the private sector including French and British firms on the same mission. Barclays’ Rise Cape Town supports fintech companies. They have put money into
INTERVIEW exports, and to create an enabling environment for all agri-processed products to flourish. We have made headway, together with our partners, in our drive to increase water storage in the Brandvlei Dam so that more hectares can come under irrigation, producing more product for agri-processed goods. We have also commissioned the equipment we require for our residue testing facility, so that we can accomplish the testing required to export more Does the green economy hold potential for product to key international markets. All of the inithe Western Cape? tiatives under Project Khulisa are designed to open We are very excited about a recent Moody’s report, international markets for our produce. which found that the green economy in South Africa As part of Project Khulisa, we have also prioritised is the fastest growing in Africa, and is one of the direct air access. We are pleased with the significant fastest in the world. The Western Cape hosts 70% impact of the work we’ve done in boosting arrivals of green economy manufacturing and 60% of head to our province. offices of green economy companies. GreenCape has There has been an impressive 60% increase in a mandate to grow the green economy. Origin and Destination (O&D) passengers coming through Qatar since the project started. There has Do you have a focus on particular sectors? been an increase of 53% in O&D passengers from At the start of the new five-year term in 2014, we Turkey from 36 348 to 55 714. This growth is linked worked with McKinsey and Company to conduct a to the landing of direct Turkish Airlines flights into deep-dive study into our economy. Drawing from Cape Town. best practice in emerging market economies from all In total, between July 2015 and December 2016, over the world, they helped us develop a choice strat- we will have expanded six direct routes and estabegy: let’s concentrate on fewer sectors and drill much lished two new direct routes, resulting in 400 000 deeper. These sectors were tourism, agri-processing additional two-way seats to Cape Town. and oil and gas. This became Project Khulisa, which What are some of the indicators of this means “cause to grow” in isiXhosa. good growth? What were the key factors in choosing A total of 654 000m² was approved for constructhese sectors? tion in the Western Cape in 2015, nine times more Project Khulisa earmarked the following sectors as than the figure approved in Gauteng. Absa is the biggest growth engines for the next five years: centralising its operations at Century City, British • Agri-processing had 1.8% growth in Gross Value American Tobacco has just moved into offices at Add (GVA) and 7.7% jobs growth the Waterfront. Hisense, which already has a manu• Tourism was growing at 6.8% GVA growth and facturing facility in Atlantis, is working at how it can 7.8% jobs growth plug into the green economy. It is looking to treble The next sectors on the list were ICT, BPO and film or quadruple its investment into the region. Recently with the green economy cutting across many sectors. Cape Town received an award as best offshoring destination from a British outsourcing organisation. Can you give examples of how your de- This is testament to the business confidence in the partment supports businesses in the key Western Cape. sectors? We are driving a suite of initiatives to grow agriprocessing, under the banner of Project Khulisa. These include efforts to boost halaal and wine New York, London and Manchester, and also in Cape Town. DVT’s app-testing facility just off the N1 is the biggest in the southern hemisphere. With regard to skills, we have an artisanal focus and are aiming to produce 32 500 artisans in the next three years. To get the last mile done, on-the-job training, we have to get businesses on board to offer the required in-service training component.
WESTERN CAPE BUSINESS 2017
Agriculture Processing plants boost rural employment.
hile the contribution of agriculture to provincial gross domestic product (GDP) is small at 4.2%, the fact that nearly 40% of exports from the Western Cape derive from fruit or agri-processing makes this a vital sector to the health of the regional economy. Seven of the 10 biggest export earners are either agricultural products or agri-processed goods. In the national context, agricultural products made up 5.2% of the country’s export basket in 2015. The African continent accounted for 22.7% of total exports. Wheat is another of the province’s strong sectors: the Western Cape’s 310 000ha planted to wheat in 2015 represented 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). A working group of the Protein Research Foundation is developing strategies to increase the yields and plantings of canola. A canola symposium was held in Bredasdorp in 2016. 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 WESTERN CAPE BUSINESS 2017
SECTOR INSIGHT A new testing centre will be built in the Western Cape to certify agricultural products for export to the EU. figures can be below 150mm. Just over three-million hectares of the province is cultivated and 270 000ha are under irrigation. 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. The Provincial Government of the Western Cape has identi-
OVERVIEW fied agri-processing as one of the three key sectors that can deliver high growth and lots of jobs. Over a five-year period to 2014, the sector grew at nearly 5% and delivered jobs growth of more than 7%. Agri-processing holds potential to increase employment in rural areas. If it receives the dedicated attention and support, it could add up to 100 000 jobs and generate R26-billion for the economy under a highgrowth scenario. Among the areas on the todo list of Western Cape Minister for Economic Opportunities Alan Winde, whose ministry is responsible for agriculture, is to bring more irrigated land on-stream to increase product into the agri-processing chain; to keep promoting wine sales to the world; to expand African exports (Angola is proving a good first step); investigating whether the Western Cape can tap into the global halaal market said to be worth $2.3-trillion; and to build a testing centre for agricultural products so they can be certified for sale into the European Union (EU). Zoning laws also have to be adopted to promote growth in rural areas. He gives an example of a fruit pulping and drying company in the small town of Gouda, which was restricted by zoning laws when it wanted to expand its factory space beyond 1 000m². “They are growing at 65% and you are telling them to pack up and move to the city? Gouda loses 1 000 jobs!” Winde says that it must be the objective of govern-
ment and planners to create an enabling environment for companies to expand. In presenting his 2016/17 budget, Minister Winde said that the number of jobs in the agricultural sector had grown by 63% in a year, citing StatsSA data. This figure included seasonal jobs. Many more opportunities for employment may come about if the trend reported on by City Press in August of 2016 grows bigger: experienced citrus farmers moving to the Western Cape from other areas. Reporting that five farmers from Limpopo and the Eastern Cape had bought farms in Citrusdal, Robertson and Wellington, the newspaper noted that the variety of new fruit types (apart from lemons and other citrus fruit) to be planted by these new farmers would supply work all-year round for local people. Mandarins, seedless watermelons and squash are among the other fruits. There is also good news for agriculture in the Western Cape – out of Gauteng. South African Breweries has built a new malting plant in that province. To get to an annual production figure of 130 000 tons of malted barley for the new facility, more barley will have to be grown. The locally-sourced barley that SAB buys will rise from 65% to 95% of total stock. The company’s only other malting facility is in the heart of barley-growing country, at Caledon in the Overberg region, where 180 000 tons are processed every year. The Western Cape is a major producer of fruit and vegetables and is by far the biggest producer of peaches in South Africa. The country produces about 60 000 tons per year. Only 1% of South Africa’s fruit is dried, but that still represents 51 000 tons of product. The Western Cape is strong in dried fruit and nuts with Montagu Dried Fruit and Nuts, Cape Dried Fruit Packers (also based in the Boland town of Montagu), and Safari among the biggest producers and distributors.
Apples and pears
Iron and steel
Fruit and nuts
Top 10 exports 2015 SOURCE: QUANTEC, 2015
WESTERN CAPE BUSINESS 2017
OVERVIEW The estimated cost of the drought to the wine and fruit industries is about R1.2-billion.
Drought A severe drought has had an effect on all agricultural enterprises throughout South Africa. For some time now, most regions have not received the rainfall they expected. Rainfall recorded in September 2016 in the Central Karoo ranged between 0mm and 2mm. This will affect grazing for animals in summer. Irrigation in most areas has been affected and in some places has had to be stopped. Although the Western Cape’s winter grain crop regions received some timely rain, a long-term “climate response action plan” has been introduced called Smart Agri. This is a partnership between the provincial government, the private sector and academic institutions. Among the recommendations for the way forward is conservation agriculture, which is being tested at the provincial research farm, Langgewens. Minimum tillage and crop rotation are among the strategies being adopted. WESTERN CAPE BUSINESS 2017
Zeder Investments is the agricultural arm of investment holding company PSG Group (which has become well known to the general public through Capitec Bank and Curro schools). Zeder has been very active in increasing its stake in agricultural companies in recent years, most notably Capespan, where it is now the holder of 98.1%. Capespan has a turnover of R7.6-billion across three divisions: farms, logistics and fruit. Brands include Cape and Outspan, Capespan Logistics (known as FPT for Fresh Produce Terminals) and Groot Gariep Koelkamers. Zeder has a similarly large stake in the holding company that controls three seed companies, Zaad Holdings (turnover R1.2-billion), and it has further shareholdings in egg and grain companies. Zeder is a 39.6% shareholder in Kaap Agri Ltd. Kaap Agri has more than 200 operating points stretching from its headquarters in Malmesbury in the Swartland to Namaqualand and beyond. What started out as a farmers’ co-operative is now a large enterprise with eight business units covering everything from grain (Wesgraan), to packaging (Pakmark) and retail (Agrimark). Zeder also owns 27.2% of Pioneer Foods, which makes and distributes many big food and drink brands across Southern
OVERVIEW Africa, including Weet-Bix, LiquiFruit, Ceres, Sasko and White Star. The company has an annual turnover of R20-billion and it has two Bokomo facilities producing wheat biscuits, cereal and muesli in the United Kingdom. Overberg Agri is an unlisted company with a wide range of investments in several sectors, including mining, pet food and industrial fasteners. Promeal manufactures pet-food in Atlantis and Boltfast distributes nuts, fasteners and screws all over South Africa. Grain services, irrigation, financial services and retail form more traditional parts of the agricultural company’s profile, which had a turnover of R2.8-billion in 2015/16. Headquarters are located in Caledon and the group has 1 144 permanent employees. SSK (Sentraal Suid Ko-operasie) has outlets in the Overberg (headquarters are in Swellendam) and in the Southern Cape as far east as George. There are retail outlets at Swellendam, Heidelberg and Robertson, and grain depots at Swellendam, Heidelberg, Karringmelk srivier, Protem and Ashton. SSK has increased its reach with the acquisition of Tuinroete Agri, which has four grain silos and 19 retail outlets and depots stretching along the Garden Route from Riversdale to Jeffrey’s Bay. It also has a presence in the Langkloof and at Aberdeen in the Karoo. SSK either controls or has an interest in companies that engage in oil extraction, property, equipment, animal feed, abattoirs, investments and motor sales.
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 a retailer, Klein Karoo Agri, which has two petrol stations, six shops, a mechanisation business and an irrigation business.
ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Bureau for Food and Agricultural Policy: www.bfap.co.za Cape Agency for Integrated Sustainable Development in Rural Areas: www.casidra.co.za Citrus Growers’ Association: www.cga.co.za Fresh Produce Exporters’ Forum: www.fpef.co.za Fruit SA: www.fruitsa.co.za HORTGRO: www.hortgro.co.za Klein Karoo: www.kleinkaroo.com National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za SA Grain Information Service: www.sagis.org.za SA Olive Industry Association: www.saolive.co.za SA Table Grape Industry: www.satgi.co.za SA Trade Directory of Indigenous Natural Products: www.cpwild.co.za South African Rooibos Council: www.sarooibos.org.za Western Cape Department of Agriculture: www.elsenburg.com
WESTERN CAPE BUSINESS 2017
Wine and grapes China is importing the fruits of the Western Cape’s vineyards.
SECTOR INSIGHT Nearly 50 000 people work in the province’s table grape sector. • A Cape wine farm is selling exclusively to China. • KWV has been sold to a global company.
hinese consumers love the grapes of the Western Cape, whether they are presented to them in bunches or in bottles. Alterations to importation regulations are set to massively boost table grape sales to China, and wine farmers are selling ever-increasingly volumes to that country.
Table grapes South Africa’s table grape producers and exporters had something to cheer about in 2016. Because China has changed its cold-treatment protocol, South Africa can now increase its exports to that country to R2.5-billion within five years. In 2015, 10 600 tons of table grapes were sold into China but the figure could not be increased because of the cold-treatment protocol relating to the South Africa product, which affected quality, market share and price. The Chinese market for table grapes has been growing at 30% since 2000 and stands at about $600-million. WESTERN CAPE BUSINESS 2017
The South African Table Grape Industry Partnership (SATI) is a partnership whose board membership represents every growing 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 to the Western Cape during the 2015/16 harvest. 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
OVERVIEW 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 Cederburg 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 that 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. • •
Wine A bottle-making factory in Gauteng is doubling its capacity because Cape wine exports are rising so quickly. Exports from the Western Cape reached R8.6-billion in 2015. Nampak told Business Day in 2016 that the main factor in increased orders from its Cape wine buyers was the Economic Partnership with the European Union, allowing easier access into the EU for Southern African goods. Total exports of wine out of the Cape have grown from 50-million litres to close to 450-million, with many of the new sales going to China. The Chinese market was valued at R240-billion in 2015 (IWSR) and a
joint venture between Leopard’s Leap and Yangzhou Perfect (51%) has bought the wine farm Val de Vie to make wine to export to that country. The wine is branded L’Huguenot. 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 R200-million 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 Western Cape Minister for Economic Opportunities Alan Winde believes that the new situation could 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 have been going to Britain), but Britain will surely want to negotiate a good deal with South Africa as quickly as possible. 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. The reported sale price was R1.15-billion. Niveus, the previous owner of KWV, retains the company headquarters building in Paarl (La Concorde) and the Laborie wine estate. Wellington Wines is a new venture that arose from the merger of the Wellington Co-operative and the Wamakersvallei Co-operative. 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.
ONLINE RESOURCES Integrated Production of Wine: www.ipw.co.za National Agricultural Marketing Council: www.namc.co.za Nietvoorbij Institute for Viticulture and Oenology: www.arc.agric.za SA Wine Industry Information & Systems: www.sawis.co.za South African Brandy Foundation: www.sabrandy.co.za South African Table Grape Industry: www.satgi.co.za Western Cape Department of Agriculture: www.elsenburg.com Wines of South Africa: www.wosa.co.za
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The magic grape Beyers Truter, who is associated internationally with the Pinotage varietal, shares some insights on the local winemaking industry.
Please provide an overview of your business operations and the Beyerskloof Wine Estate.
Beyerskloof was established in 1988 and is known internationally for its Pinotage wines, the only indigenous South African variety. We have grown tremendously over the last few years and we are considered one of the foremost producers of Pinotage and Cape Blends in South Africa. Although I don’t want to grow too fast, there is a big demand for South African wines. My son is now in charge of the vineyards and winemaking and we intend to expand operations. I regard the fact that my son is actively involved in the business and will continue to build it as the biggest reward of my life thus far. Could you explain something about your relationship with Pinotage?
BIOGRAPHY Beyers Truter received a BSc Agric degree from the University of Stellenbosch before starting his winemaking career at Kanonkop. Today he is the cellar master and co-owner of Beyerskloof. He played an enormous role in the development of the Pinotage red wine grape varietal when, in 1991, he was named international Winemaker of the Year with a Pinotage wine at the International Wine and Spirits Competition. He was also the founder and chairman of the Pinotage Association. He has won numerous local and international awards. WESTERN CAPE BUSINESS 2017
I have a very long relationship with Pinotage. I would say the relationship started in 1981; I was farming at Kanonkop and I tasted a 1972 wine from Simonsig. I liked it so much that I phoned winemaker Frans Malan to ask him about it – it was a Pinotage, which at that stage was a kind of “black sheep” of wines. Well, I have always been fond of “black sheep” and the relationship has flourished ever since. In 1995, I established the Pinotage Association, which focuses on prioritising research ideas, knowledge dissemination and marketing of the varietal. It is a magic grape with a wonderful classic taste!
INTERVIEW Please describe the relationship with Nedbank, in terms of your business and the wine industry.
Nedbank does a lot to support the wine industry; in particular, they sponsor the Cape Winemakers Guild Auction. In addition to well-known estates, individuals are also able to market their topclass wines through the event. They are also involved in the sponsorship of the Nedbank Vinpro Information Day held annually. Nedbank is also our Business Bank. What prompted you to start a community project focusing on alcohol abuse among women and youth pregnancy, and what impact has the project had?
What is your view of the current state of the wine industry in South Africa and the outlook for the next five-to-10 years?
Some South African wines are doing very well. I could mention Pinotage and Chenin Blanc, local sales of which have grown by 73% and 60% respectively over the past five years. I foresee that it will continue to go well for the wine industry in the short-to-medium term but unfortunately the outlook is not as positive for the grape farmers. The price of grapes has not risen as much as the price of the value-added product – wine in the bottle.
Some years ago, I started the FAITH Fund (Foetal Alcohol-Syndrome and Interrelated Treatment Help Fund) and we have been working at communicating the negative effects of drinking during pregnancy ever since. It is widely known that the Western Cape has a serious problem when it comes to Foetal Alcohol Syndrome (FAS). We have what we call the “Klop-klop” project, where we literally send people door-to-door to speak to farm workers, particularly pregnant women, about the dangers of drinking while pregnant. We follow up by visiting pregnant women each month until they deliver and we provide food and necessities to assist them. We also visit schools and clinics as far afield as Beaufort West and Graaff-Reinet. I do this because I believe that every child needs a future and FAS robs children of a future they can look forward to.
How is the drought likely to impact the wine industry?
Typically during periods of dry weather you have a smaller crop but sometimes a superior crop, so the effects “cancel each other out”. Longer term, however, continuing drought would significantly affect volumes, which would affect wine sales.
WESTERN CAPE BUSINESS 2017
South African Table Grape Industry South Africa: preffered country of origin for the world’s best-tasting grapes.
SATI represents growers in key government and industry initiatives aimed at creating more opportunities, from ownership to accessing new markets in a sustainable way.
grape producer as wide a choice as possible with profitable markets.
SATI assists growWillem Bestbier, CEO ers with crucial industry information, transformation, statistics, research, technology and technical transfer as well as training and education with the aim of establishing South Africa as the Preferred Country of Origin for the world’s besttasting grapes.
• • • • • • •
Mission SATI delivers service excellence to create a progressive, equitable and sustainable South African table grape industry.
SATI’S key areas of intervention Technical market access Research and technology transfer Information and knowledge management Transformation Communication and stakeholder engagement Human capacity and skills development Technical support
continued on page 82 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. They have dedicated themselves to ensuring that our special taste, quality and choice product meet the highest level of compliance with world market standards.
Vision South Africa is the Preferred Country of Origin for table grapes and will provide every table WESTERN CAPE BUSINESS 2017
A world of variety
These interventions are aimed at assisting producers to Gain, Retain and Optimise (GRO) market access.
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.
SATI is funded by a grower levy, and is a co-founder and a key supporter of the Sustainability Initiative of South Africa (SIZA).
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.
CONTACT INFO Contacts: Willem Bestbier, Chief Executive Officer Email: firstname.lastname@example.org Joseph Lombardt Manager: Information and Knowledge Management Email: email@example.com Physical Address: 63 Main Street, Paarl 7624 Tel: +27 21 863 0366 Fax: +27 21 863 3039 Email: firstname.lastname@example.org Website: www.satgi.co.za
WESTERN CAPE BUSINESS 2017
Fishing More fish, fewer chips.
he Oceana Group has made some purchases that will boost its fishing and fish processing volumes. It has also sold off its potatoprocessing business, Lamberts’ Bay Foods. With the purchase of Foodcorp’s fishing rights and an American fishmeal and oil company, Daybrook, Oceana now has operations in the USA, South Africa and Angola and achieved revenues in 2015/16 of R8.2-billion. The biggest brand performer for Oceana is Lucky Star canned pilchards, which enjoys 80% of market share in South Africa. 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 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-scale lobster and abalone operations. Minister of Agriculture, Forestry and Fisheries Senzeni Zokwana has stated his intention to restructure the horse mackerel industry to promote local fishers and processors. A 15-year contract awarded in 2015 on this basis was overturned by the courts after objections by bodies such as FishSA, which represents eleven fishing associations. Most of South Africa’s major food companies have fishing divisions. Pioneer Fishing has no connection to the multi-product group Pioneer Foods, and is owned by Suiderland Corporation and African Pioneer Limited. Pioneer Fishing controls a canning, fishmeal and fish oil factory in St Helena Bay called Oranjevis, a joint venture with Terrasan Pelagic Fishery, and a processing and freezing factory in the Port Elizabeth harbour (Eyethu Fishing).
ONLINE RESOURCES FishSA: www.fishsa.org National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za SA Deep Sea Trawling Industry Association: www.sadstia.co.za Southern African Sustainable Seafood Initiative: www.wwfsassi.co.za
SECTOR INSIGHT Government intends restructuring the horse mackerel industry to boost local fishers.
Premier Fishing, a subsidiary of Sekunjalo Investments, runs 16 vessels and operates at seven locations, including Atlantic Cold Storage, which has capacity to store 2 500 tons of fish and 405 tons of live lobster. The company has lobster plants at Port Nolloth and Hout Bay, and a fish meal plant at Saldanha. Viking Fishing is active in fishing, processing and fish farms. It has 1 250 employees across its varied operations, which include trawling for hake; sardines and anchovies; the west coast rock lobster and prawns (in South Africa and Mozambique). Sea Harvest is vertically integrated and owns all its fishing vessels, processing facilities and cold storage facilities. Sea Harvest runs several shore-based factory plants, sells to more than 2 000 stores and has 46% of South Africa’s retail frozen fish market. Dromedaris Visserye specialises in Cape lobster, and supplies sardines and anchovies to China and Japan. WESTERN CAPE BUSINESS 2017
WESTERN CAPE BUSINESS 2017
Mining The sands of the West Coast are giving up their riches.
new mineral sands project on the West Coast near Lutzville and Koekenaap has started sending product to China. Australian miner Mineral Commodities (MRC) says it will spend R5-billion at its Tormin mine to 2019 in search of zircon, rutile, ilmenite and garnet. Namakwa Sands is an existing mineral sands operation on the West Coast, owned by Tronox. Tronox is listed on the New York Stock Exchange and South African company Exxaro Resources is a 43.87% shareholder. 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. Zircon is used in tile glazing and ilmenite is melted to become pig iron for use in engine blocks. The left-over slag is used as pigmentation in paints. The Cape Bentonite Mine (with five quarries) near Heidelberg is run by Ecca Holdings with another site east of Knysna at Roodefontein. Dimension stone occurs around Vanrhynsdorp (which also has some gypsum) and medium-grain granite is found at Paarl. Sixteen rare earth minerals have been identified north of Vanrhynsdorp, with the most prevalent being cerium, an important component of catalytic converters. South Africa is a world leader in converters. Other minerals found at the site are used in magnets, batteries and electric-powered cars. More than one investor has come and gone, but the acquisition in 2015 by Steenkampskraal Thorium Limited (STL) of the shares of
ONLINE RESOURCES African Mining Indaba: www.miningindaba.com Chamber of Mines of South Africa: www.chamberofmines.org.za Council for Geoscience: www.geoscience.org.za Geological Society of South Africa: www.gssa.org.za National Department of Mineral Resources: www.dmr.gov.za Southern African Institute of Mining and Metallurgy: www.saimm.co.za
WESTERN CAPE BUSINESS 2017
SECTOR INSIGHT Sixteen rare earth minerals have been identified north of Vanrhynsdorp. Rareco has given it the right to the rare earth deposits at the Steenkampskraal monazite mine. STL already had the thorium rights. STL has an associate company in Norway, Thor Energy. The plan is to mine, process and refine thorium for nuclear fuel applications in Norway. STL reports that Steenkampskraal has one of the world’s highest-grade rare earth and thorium deposits with an average grade of 14.4% rare earths and 2.14% thorium. Limestone for cement, agricultural lime and feed lime is extracted at several sites in the province’s western regions while kaolin is found in Noordhoek and Somerset West. Ball clay is mined in the Albertina district by G&W Base and Industrial Minerals, a subsidiary of the Zimco Group. Pretoria Portland Cement (PPC) has operations near Riebeek-West and Piketberg (De Hoek). Slasto and building stone is quarried near Clanwilliam. Consol quarries glass sand near Philippi.
Oil and gas The Western Cape Government is hoping to exploit opportunities related to the gas sector.
SECTOR INSIGHT A new LPG terminal will be commissioned at Saldanha in 2017. • Chevron wants to sell its refinery. • A new fuel storage terminal is being built in Cape Town harbour.
hirty-two companies are set invest in the Saldanha Bay Industrial Development Zone (SBIDZ). These companies are in the oil and gas, and servicing and logistics sectors. The idea of providing infrastructure and incentives at the SBIDZ in these sectors is reaping rewards. Large industrial operations already exist at Saldanha and the Port of Saldanha Bay is used for the export of South Africa’s iron ore. 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 – DCD Marine went into voluntary business rescue in November 2016 – 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 on upgrading the nation’s ports. Considerable planning has gone into positioning the SBIDZ as a hub for a range of maritime repair activities and oil rig maintenance and repair. (A separate article on the SBIDZ appears elsewhere in this publication.) But 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 potential, if private investors for projects WESTERN CAPE BUSINESS 2017
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 changed. The Western Cape Ministry of Economic Opportunities sees the potential of gas in the context of working together with wind and solar energy. Gas, a CSIR report has concluded, could be a very good support for renewable energy during times of peak demand. Another possible gamechanger is shale gas. The Council for Geoscience (CGS) is doing an intensive study of South Africa’s
OVERVIEW potential shale gas resources. The study centres on the area around Beaufort West in the Karoo. The study wants to look at the reserves, the technology associated with getting the gas out of the ground and the value chain. 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 northwest 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 proved tricky. The Bredasdorp Basin is close to Mossel Bay where a gas-toliquids plant is located. Project Ikhwezi, run by South Africa’s oil company PetroSA, produced 25billion cubic feet (bcf) from that field instead of a projected 242bcf (Engineering News). PetroSA recorded a net operating loss of R14.6-billion for the 2014/15 financial year. Sunbird Energy (a joint venture between Sunbird Energy 76% and PetroSA 24%) was reported in March 2016 to be proceeding with plans to produce gas from the Ibhubesi field, but lower global gas prices and negotiations with national utility Eskom (which has to agree to buy the gas) were factors that had to be considered (Financial Mail). Further afield, major gas finds have been made off the coast of East Africa and plans to pipe greater volumes of Mozambican gas to Gauteng are far advanced. WESTERN CAPE BUSINESS 2017
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 company has a national footprint, with a very strong presence in the oil, gas and chemical hub of the country around Sasolburg and Vereeniging. Air Products has a network of private distributors who get support from the company in terms of sales, service and technical advice. Safety training is also offered.
Facilities The gas-to-liquids plant that 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 priorty (and something which Project Ikhwezi was supposed to do). The Chevref oil refinery in the Cape Town suburb of Milnerton is one of six in South Africa. It produces about 110 000 barrels a day of South Africa’s total production of 703 000 barrels a day. Chevron gave notice in early 2016 of its intention to leave South Africa. A price of R15-billion has been suggested for Chevron’s assets, which include a lubricants business and 850 Caltex petrol stations (Sunday Times). A new facility is to be added to the oil and gas sector in Cape Town – a 118 000m³ fuel storage unit. The Bergan terminal will comprise 12 tanks located on the Eastern Mole of the Port of Cape Town and it will be connected by pipeline to the Chevref refinery. A new import terminal dedicated to Liquefied Petroleum Gas (LPG) is being constructed at Saldanha Bay by Sunrise Energy. The terminal will be an open-access facility, so any gas importer, distributor or downstream user can use it for the importation of LPG, commercial propane or commercial butane. It is due to be commissioned in the second quarter of 2017.
ONLINE RESOURCES Liquefied Petroleum Gas Association of Southern Africa: www.lpgas.co.za 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 Saldanha Bay IDZ: www.sbidz.co.za South African Oil and Gas Alliance: www.saoga.org.za
Air Products South Africa This leading industrial gases and related products company has introduced innovations throughout its history.
Air Products South Africa manufactures, supplies and distributes a wide variety of atmospheric gases, speciality gases, performance materials, equipment and services to the southern African region. Founded in 1969, the company has grown rapidly and has used its world-class production and regional distribution facilities to become the largest supplier in the on-site and pipeline markets. It is also a leader in the bulk, packaged gas and chemicals supply markets.
pipelines. The systems are classified as either generated gases or tonnage gases. Bulk gas
This division facilitates the supply of bulk liquid product to a wide range of customers. Products including liquid oxygen, liquid nitrogen, liquid carbon dioxide, liquid argon and gaseous hydrogen are transported from the company’s four main air separation units via its fleet of road tankers.
Liquid and gaseous product is distributed to customers throughout South Africa using the company’s modern fleet of cryogenic tankers and cylinder trucks. This ensures reliable supplies of gases such as oxygen, nitrogen, argon, hydrogen and carbon dioxide to major corporations in the steel, stainless steel, chemical, petrochemical and engineering industries.
There are over 100 different gaseous and liquid chemicals and thousands of different gas mixtures. These products can be supplied in any quantity, from a few grams or litres to a 4 000m³ trailer load.
In fact, Air Products touches the lives of consumers in positive ways every day, and serves customers in a range of industries from food and beverage, mining and petrochemicals, primary metal and steel manufacturers, chemical applications, welding and cutting applications to laboratory applications.
The Air Products chemical offerings are backed up by its applications support personnel, who rigorously match product properties to meet specific end-use applications.
Business units Air Products has four business units to serve its broad client base.
Tel: +27 11 570 5000 Email: email@example.com Website: www.airproducts.co.za
These systems include small membrane cabinets, packaged plants, large air separation and hydrogen/ carbon monoxide/syngas plants and industrial gas
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Energy Manufacturing in the renewable energy sector is taking off in Atlantis.
he energy landscape of the Western Cape is undergoing rapid change. Mostly this is because the potential of renewable energy is being realised, but if a gas-to-energy plant becomes a reality in the province, then another big shift could take place. The Western Cape already hosts the country’s only nuclear power station (Koeberg, north of Cape Town) and it has a pumped water storage plant and three open-cycle gas turbines. The West Coast was the site of two of the country’s first experimental wind farms. Successful trials there and elsewhere (and critical power shortages in the national grid) led to the adoption by national government of a scheme to invite private producers to bid for the right to build plants that would produce wind, solar or hydropower. This is the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and the first bids closed in December 2011. By the time the fourth bid closed in 2015, the Western Cape had been allocated 11 projects, six wind and five photo-voltaic solar power. The total capacity of these projects totalled 592MW. Among the foreign companies to engage in renewable energy projects in the province are Gamesa and Acciona, Gestamp Renewables, Vestas, Sunpower and JinkoSolar. The Provincial Government of the Western Cape is prioritising energy in its plans, and this includes generation (gas, biogas and renewables), distribution and energy-saving. WESTERN CAPE BUSINESS 2017
SECTOR INSIGHT Progress reports on energy plans are presented to the Premier every six weeks. • There are 2 000 private energy providers in Cape Town. A wide range of experts drew up the provincial energy plan, the key points of the energy plan include: efficiency in the system; get the uptake of renewable energy to move faster; and move to gas. With every project within that plan, a detailed timetable has been worked out and reports are sent to the Premier’s office every six weeks. Western Cape Minister of Economic Opportunities Alan Winde notes that the Department of Agriculture, simply by carefully recording its usage
OVERVIEW patterns, has cut its electricity bill by R1.7-million. On top of this, the Western Cape has its own private producers’ programme. “As I speak, there are more than 2 000 private producers in Cape Town,” says Winde. These range from a solar panel on the roof of a single private household to major installations in the Waterfront. Excess power is sold to the city. Winde is lobbying hard for the national Department of Energy to allow Saldanha Bay to be a site for a gas-to-power plant. “There should be at least 1 000MW at Saldanha. If the private sector and investors think it is a bad idea, then that’s fine.” He clearly believes that investors will think it a very good idea to invest in a site that already has 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. “Then gas plays a different role in the economy,” says Winde. “That is enabling a whole process and it complements the work we are doing. If you have solar and wind power, then you need the base, something to cover the peak hours: gas can do that.” About 100km south of Saldanha, on the West Coast road to Cape Town, is Atlantis, where a green economy manufacturing hub is under construction. A number of companies have already invested in making wind turbines, ladders and platforms for turbines and solar panels among other things. With about R680-million already invested,
and another R1-billion projected, the renewable energy economy is making an impact. There are many manufacturing opportunities. A pilot plant to investigate one of the more sophisticated aspects of solar technology is operating at the Techno Park in Stellenbosch. Photovoltaic Technology Intellectual Property (PTiP) and German engineering company Singulus Technologies have started making thin-film solar modules. Funding for the project’s infrastructure came from the Technology Innovation Agency, a unit of the Industrial Development Corporation (IDC), and Stellenbosch University. 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. A unit based on the Bellville campus of CPUT teaches courses related to renewable energy. The South African Renewable Energy Technology Centre (SARETEC) offers courses such as Wind Turbine Service Technician and Solar Photovoltaic Service Technician and various short courses such as Bolting Joint Technology. By the end of 2016, more than 1 500 people had attended courses at SARETEC. In November 2016, SARETEC became the home of the Solar Academy, with the support of German solar energy company, maxx|solar energy. The Centre for Renewable and Sustainable Energy Studies is at the University of Stellenbosch, while 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. A programme run by Green Cape claims to have engineered 21 000 tons in fossil greenhouse gas savings over five years through its Western Cape Industrial Symbiosis Programme (WISP). This is the equivalent to annual electricity usage in 5 600 South African households. WISP is a network of 300 businesses to share unused resources and create value from “waste”.
ONLINE RESOURCES African Wind Energy Association: www.afriwea.org Eskom: www.eskom.co.za Green Cape: www.greencape.co.za National Department of Energy: www.energy.gov.za National Nuclear Regulator: www.nnr.co.za South African Photovoltaic Industry Association: www.sapvia.co.za South African Wind Energy Association: www.sawea.org.za Southern African Solar Thermal and Electricity Association (CSP): www.sastela.org Sustainable Energy Africa: www.sustainable.org.za
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Water Farms and factories are becoming water wise.
SECTOR INSIGHT W WF-South Africa and Woolworths are working on rural water plans. • UCT researchers have won a Water Research Commission prize. • French company Veolia is installing desalination plants.
n 2030 South African demand for water will be 17% greater than supply. That is the verdict of the 2030 Water Resources Group. The Western Cape’s dams were at 61% in the fourth quarter of 2016, against 90% at the same time in 2015. The biggest provincial dam, which is Cape Town’s main source of water as well as providing irrigation for farms, Theewaterskloof, stood at 52%, 14% down on the previous year. Elsewhere: • Garden Route Dam (George) was at 72% versus 100% in 2015 • Kammanasie Dam (Oudtshoorn) was at 29% versus 100% in 2015 • Hartebeestkuil Dam (Mossel Bay) was at 52% versus 88% in 2015 In November 2016, the City of Cape Town introduced level-three water restrictions, banning all irrigation systems and hosepipes for domestic lawns. The good news is that South Africa and the Western Cape are doing something about the situation. Times of crisis can also be times when innovation and entrepreneurship come to the fore. 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 (SWPN). It has a focus on three things: water efficiency and leakage reduction; effluent and wastewater management; and the agricultural supply chain. SWPN aims to support government and programmes have been put in place in all three areas that are showing results. The Western Cape Provincial Government has a two-pronged strategy: new water infrastructure for agriculture and water demand WESTERN CAPE BUSINESS 2017
management programmes to improve efficiency. In terms of its water infrastructure and maintenance of its wastewater treatments plants, the Western Cape fares relatively well compared to most other South African regions. Only 3% of households reported to the General Household Survey of 2014 that their water services had been interrupted. Fully 87.7% were satisfied with water delivery services. Access to water and sanitation in the province is generally very good. A provincial scheme to improve rivers has been outlined by Premier Helen Zille. The River Improvement Plan ultimately seeks to improve the lives of people living alongside rivers, but also ensure that river water quality enhances the region’s economy. The fruit, grape and wine sectors need good
OVERVIEW quality water, as do agri-processing concerns. Programmes include upgrading wastewater treatment plants, clearing alien vegetation and regular monitoring of water quality. The scheme encompasses the Olifants-Doorn and Breede rivers. The Wes tern 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. One of the possible plans to add to the supply of the Western Cape Water Supply System is the Berg River–Voëlvlei Augmentation Scheme. This would entail pumping water out of the Berg River in winter, having first allowed for enough water to cover the ecological water requirements of the river and the estuary. The last time a severe drought affected the province, many of the towns along the Garden Route installed desalination and recycling plants. More than one of these facilities had to close because not enough care had been taken in choosing the site, so environmental issues and silting stymied the plans. However, Mossel Bay has a functioning plant and Lamberts Bay on the West Coast will soon have a 1 700m³ per day plant. This will be the sixth such plant installed by French company Veolia Water Solutions & Technologies. Other sites include Saldanha, Knysna and Plettenberg Bay.
A water stewardship programme has been introduced in the Breede River catchment area. WWF-South Africa, Woolworths and Marks and 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 that 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.
Improving quality The introduction by the National Department of Water and Sanitation (DWS) and the Water Institute of South Africa (WISA) of the Blue and Green Drop Awards has been very 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 will concentrate on 23 district municipalities. The awards are run by WISA with the help of consulting engineering group Aecom SA. Aecom assists municipalities in preparing for the audit and has a wide range of capabilities within the water-treatment sector, including bulk and reticulation water and sewage pipelines. The City of Cape Town won a C40 Cities Award in 2015 for its programme to conserve and manage demand for water. The Water Institute of South Africa has 1 800 members. It does research, keeps its members up-to-date and runs conferences. As in most areas of life in South Africa, environmental standards are set and maintained by the South African Bureau of Standards (SABS). The University of Cape Town’s Engineering and Built Environment Faculty has won a Water Research Commission prize for its work on the treatment of acid mine drainage.
ONLINE RESOURCES Breede-Overberg Catchment Management Agency: www.breedegouritzcma.co.za National Department of Water and Sanitation: www.dws.gov.za South African Water Research Commission: www.wrc.org.za Trans-Caledon Tunnel Authority: www.tcta.co.za Water Institute of Southern Africa: www.wisa.org.za Water Resources Group: www.2030wrg.org
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ituated in the southwestern corner of South Africa, the Breede-Gouritz Catchment Management Agency (BGCMA) plays a pivotal role in protecting, developing, conserving, managing and controlling water resources. Formerly known as the BreedeOverberg Catchment Management Agency, the Gouritz region was recently incorporated within the mandate. The merger came after the former Minister of Water Affairs, Edna Molelwa, approved the expansion of the boundary and area of operation of Breede-Overberg CMA in terms of Section 78(4) of the National Water Act, 1998 (Act No 36 of 1998). The area of operation of the Breede-Gouritz Catchment Management Agency includes the previous Breede-Overberg Water Management Area and the Gouritz Catchment. “The strategic focus of the agency incorporates water resource planning, water use management, institutional development, water resource protection and water allocation reform,” says CEO Phakamani Buthelezi. “The vision of the BGCMA, ‘quality water for all, forever’, was developed around the question of how the BGCMA can make a positive contribution and engender meaningful change within a broader social context.” The main elements of the vision are inclusion and participation of all stakeholders, mediation between WESTERN CAPE BUSINESS 2017
competing environmental and human priorities, ensuring availability of good quality water and a responsibility to assist in eradicating poverty. Buthelezi explains that the BGCMA works closely with local governments on water management and water-related services to ensure synergy between the priorities of the Catchment Management Agency and the local and district municipalities. “The BGCMA is the operating arm of the DWS and its aim is to bring water resource services in an efficient manner to the inhabitants of the Breede-Gouritz Water Management Area,” explains Buthelezi. “Furthermore, the BGCMA works closely with other government departments to ensure compliance in all water use practices. The BGCMA provides comments on rezoning and consolidations to relevant municipalities, and on environmental impact studies and basic assessment reports in conjunction with the Department of Environmental Affairs.” The BGCMA is currently busy with the validation and verification process where all water users will be evaluated for legal compliance. This process will assist with the management of water allocations in the Breede-Gouritz Water Management Area (WMA).
Our Vision is
“Quality water for all, forever” Our Mission is to manage our water resources responsibly through stakeholder engagement and to devolve decision making to the lowest level for the benefit of all water users in the Breede-Gouritz area. Breede-Gouritz CMA is responsible for: • Water Resource Planning • Water Allocation Reform • Water Use Management • Institutional Management • Resource Protection For more information, contact us on: Breede-Gouritz CMA (BGCMA) 51 Baring Street Worcester, 6850 101 York Street (New Office) George, 6529 Breede-Gouritz CMA Private Bag X 3055 Worcester, 6849 Ms Malehlohonolo Mlabateki Public Relations and Marketing Officer Tel: (023) 346 8000 Fax: (023) 347 2012 E-mail: firstname.lastname@example.org www.breedegouritzcma.co.za
Manufacturing Diesel locomotive engines are powering up in Montague Gardens.
diverse manufacturing sector contributes 15% to the Western Cape’s GDP and the renewable energy sector holds huge potential for further growth. Growth in the manufacturing sector between 2003 and 2013 averaged 2.2% and the Provincial Economic Review and Outlook (Western Cape Treasury 2015) predicts the same level of growth to 2020. A recent Moody’s report on the green economy in Africa states that South Africa is growing the fastest in that sector in Africa, and at one of the fastest rates in the world. The Western Cape is driving a green economy manufacturing strategy focussed on the suburb of Atlantis. At this stage, some 70% of South Africa’s manufacturing in renewables is happening in the Western Cape. Even an established investor such as fridge manufacturer Hisense is exploring ways to make its product greener, either through its own processes or encouraging its suppliers to go down that route. WESTERN CAPE BUSINESS 2017
SECTOR INSIGHT Seda has launched an enterprise incubator at False Bay TVET College. • Cape Town’s catamaran builders are world leaders.
Investment agency Wesgro has noted the following major investments into the Western Cape since 2003: Hisense, KimberlyClark, Tellumat, Exar Corporation, GlaxoSmithKline and General Electric.
OVERVIEW Within the Western Cape manufacturing sector, the agri-processing subsector (including food and beverages and tobacco) is the largest employer (24%) followed by metals, metal products, machinery and equipment at 19%. The Western Cape Provincial Government has identified agriprocessing as a key growth sector, one of those most likely to deliver economic growth and jobs. For too many years, jobless growth was the norm. An initiative of the Small Enterprise Development Agency (Seda) aims to boost manufacturing in metal fabrication and furniture. False Bay TVET College will host a Rapid Incubator and Centre for Entrepreneurship (CFE) which will teach students how to star t businesses and how to make their products marketable.
Areas Manufacturing in the Cape Winelands District makes the single biggest GDP contribution (19%) to provincial GDP. Many small towns in the rural areas have some kind of agri-processing facility. Bonnievale has two cheese factories, Mooivallei Suiwel and Parmalat, which have recently decided to increase the size of their operation in the Breede River Valley. Iron production at Saldanha includes hot-rolled coil produced by ArcelorMittal (about two thirds of which is exported to other countries in Africa) and
cold-rolled and galvanised steel by DSP, a joint venture between South Africa’s Industrial Development Corporation (IDC) and a Belgian company, Duferco. Within the City of Cape Town there are several areas where manufacturing takes place, including Epping Industria, Blackheath Industria, Bellville South, Paarden Island, Maitland and Ndabeni, Airport Industria, Parow Industria and Montague Gardens. A City of Cape Town survey has found that Montague Gardens has 308 manufacturing concerns, more than any other area. It is also well suited to logistics and distribution, being near to the N1 highway and to the road north along the West Coast. MTU Friedrichshafen has spent R50-million on upgrading its engine business at Montague Gardens. MTU is the core business of Rolls-Royce Power Systems, a division of Rolls-Royce plc. The overhaul was done as preparation to make 232 diesel engines for Transnet Freight Rail. Additional training for staff has been provided on site and in Germany, and an extra 20 staff have been added to deal with the order. MTU’s other facility in the Cape is a maintenance and support centre at the South African Navy base at Simon’s Town. MTU also has a strong presence in the mining sector. According to the City, the industries in which Cape Town has a competitive advantage include fishing, clothing and textiles, electronics, furniture and wood product manufacturing – in addition to the more service-driven hospitality, finance and business services industries.
Food and beverages The combination of excellent and plentiful agricultural produce, good manufacturing capacity and a skilled workforce give the Western
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OVERVIEW 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 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 one of the vital items on the menu of its 26 restaurant brands, including Wimpy, Steers, Fishaways and Mugg & Bean. Lamberts Bay Foods sources potatoes from all over South Africa, but its proximity to the potato-growing Sandveld region is helpful. A meat-processing plant in Cape Town supplies the group with meat patties, ground beef, chicken cubes and fillets. The Famous Brands logistics centre in the Western Cape services 308 restaurants six days a week. British American Tobacco, which has about 65% of the legal domestic market, has its administrative headquarters at the V&A Waterfront in Cape Town. The wheat-growing areas of the Swartland host several mills such as Sasko’s facility in Malmesbury. Bokomo has several manufacturing facilities: Atlantis (Weetbix cereals); Epping (oats and baking facilitiy); Ndabeni near Pinelands (Moir’s Jelly and custard and instant puddings); Worcester (dried fruit and cake mix); Bonnievale (Werda salads); Malmesbury (Sugarbird glace fruit and jams). Safari Vinegar is based
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in the Strand and there are two Heinz manufacturing plants at Wellington and Atlantis. Two of the biggest chickenprocessing facilities are located on the N7 highway to Malmesbury (Tydstroom) and on the N1 to Worcester (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 have
OVERVIEW also invested heavily in its prepared meals plant in Cape Town. SABMiller’s Newlands brewery is one of the busiest in the country as it is responsible for providing product for a very large geographical area. Coca-Cola bottler and distributor Peninsula Beverage has three plants, at Parow, Athlone and Vredendal on the West Coast, and employs 1 300 people. Bashew’s cooldrinks has been a Cape Town favourite since 1899 and the company’s returnable bottle celebrated a 40th anniversary in 2010. Quality Beverages is a much more recent entrant to the market but its two main products, Jive and Aqua Blue, are doing well. The Ceres Beverage Company (TCBC) has three major divisions producing fruit juices, concentrate and carbonated soft drinks. Twizza has a factory in Bellville South.
Boat building The Western Cape boat-building sector is concentrated in greater Cape Town. Several companies are internationally competitive in the catamaran and yacht markets and there is a good spread of firms making large custom boats, inflatable boats and commercial craft. Associated sectors include sail-making, engines, repairs and masts. Key export markets include the USA, Europe and the Caribbean with increased interest being shown from Asia and Australia. Nautic Africa makes larger vessels, including patrol, defense, oil
and gas platform, and commercial vessels. It is also active in service and support, parts and spares and vessel leasing and management. Robertson & Caine’s manufacturing 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 catamrans. 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 makes sails in Maitland while Two Oceans Marine Manufacturing constructs its catamarans on the Foreshore. The Whisper Boat Building Academy is located at the False Bay TVET College.
ONLINE RESOURCES Cape Town Boatbuilding and Technology Initiative (CTBi): www.ctbi.co.za Cape Chamber of Commerce: www.capetownchamber.com National Agricultural Marketing Council: www.namc.co.za National Department of Trade and Industry: www.thedti.gov.za South African Boatbuilders Export Council (SABBEX): www.sabbex.co.za South African Textile Federation: www.texfed.co.za Wesgro: www.wesgro.co.za
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Seascape Stainless Specialised manufacturer of stainless steel and aluminium components and products for the marine, automotive and agricultural industries. Seascape Stainless Steel Services and Formatube (Pty) Ltd (an ISO 9001:2015 certified company) have recently merged operations. Seascape Stainless Steel Services has been the preferred supplier to the marine industry for a number of years, and with the addition of Formatube under our brand, we can now offer the specialised tube bending and manipulation services in stainless steel and aluminium that has won several awards. In the early years of its existence, Seascape Stainless Steel Services focused on the yachting industry’s very particular stainless steel
What we do
Our skilled team of engineers and artisans with decades of combined experience are able to provide a range of specialist services including: • Supply and distribution • Tube forming and manufacture • Manipulations • Cutting • Rolling • Notching
needs. It has subsequently extended its specialist manufacturing services to products suitable for a number of other industries. Formatube is renowned for its ability to bend piping without welding it, resulting in a finished product that has a smaller degree of ovality than most competitor products. Capitalising on the success of the two businesses and to accommodate our growth, we are now operating from a new state-of-theart facility in Blackheath in the Western Cape. We also intend expanding operations into Europe in 2017.
• • • • • • • •
Precision bending Mandrel bending Customised designs Precision manufacturing of stainless steel and aluminium marine accessories Polishing International trade in required products Guillotines and press-brake cutting and bending Laser cutting
CONTACT US TO DISCUSS YOUR MANUFACTURING OR TUBE BENDING REQUIREMENTS. TEL: +27 21 905 0087 | FAX : 086 695 0635 EMAIL: email@example.com or firstname.lastname@example.org
We are able to supply customised, high-quality products to the following industries: • Marine • Automotive • Agricultural
• • • • •
Architectural Petrochemical Aerospace Pharmaceutical Food and Wine
We have been supplying the local market for 15 years and the international market for eight years. Our products are being supplied to a range of countries including the United Kingdom, the USA, New Zealand, Australia, Norway, the Maldives, Seychelles, Mauritius and a number of other African and European countries.
FIND US AT: 26 Cincaut Road, Saxenburg Industrial Park 1, Blackheath, Cape Town
Construction and property development Construction is on the rise in the Western Cape.
SECTOR INSIGHT 3 000 housing units are planned for the old Conradie Hospital site. • Two new estates have been built in George.
ommercial and residential development plans totalling 654 000m² were approved in the Western Cape in 2015, a 14% rise over the previous year and a figure almost nine times greater than that for the province of Gauteng. The construction sector has grown steadily over the past several years and is expected to be the fastest-growing sector in the next five years, especially in the City of Cape Town. Infrastructure spending and residential developments are the key drivers in this trend (Western Cape Treasury). The hotel-led construction boom in the central business district of the City of Cape Town is the subject of a separate article elsewhere in this publication. A large hotel and conference centre development was opened in early 2016 at Century City. House prices in Cape Town are moving upwards faster than anywhere else in the country, both in terms of inflation (10.35% vs 5.59%, Lighthouse) and average house prices (11.89% vs 5.6%, Pam Golding). A six-bedroomed Clifton house sold for a record R90-million in November 2016. The economic development department of the City of Cape Town has done a survey of 23 of the city’s industrial areas, designed to help WESTERN CAPE BUSINESS 2017
the decision-making process for investors and businesses wanting to expand. The report found that there were 7 229 businesses in the 23 areas and that industrial property was concentrated in two areas: Voortrekker Road and the metropolitan south-east including the airport precinct, Epping and Philippi. The CBD hosts 39% of office space in Cape Town, with Bellville/Tygerberg accounting for 25%. The fairly new development at Century City has already secured 12% of office accommodation with the established suburb of Pinelands (which houses a huge Old Mutual office) responsible for 11%. The first Western Capespecific real estate investment trus t (REI T ) lis te d on the stock exchange in November 2016. Spear Reit’s R1.5-billion portfolio comprises mostly industrial property (46%) with retail and office space each making up 22%.
OVERVIEW Growth areas Brackengate 2 is a new industrial area that has been developed east of the R300 highway. It is intended as a warehousing and distribution node, given the easy access to the N1 and N2 highways. Shoprite has a distribution centre at the site. Brackengate Business Park, the first phase of the development, has tenants such as Fruit and Veg City, Docufile, Pearson and British American Tobacco. Voortrekker Road 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 the area’s existing strengths: transport links, medical facilities, retail, motor dealerships and residential. Possible construction projects could arise out of the fact that about 100 000 students are in the area. The Greater Tygerberg Partnership has done a study on students’ accommodation needs and encouraged building owners to cater to this need. Two buildings have recently been purchased with the intention of turning them into student accommodation. The Voortrekker Road Corridor already has services and an established built environment but it also has some dilapidated structures and has lots of open spaces. In other words, it has lots of potential. A pilot scheme is being launched on the 22ha site of the
old Conradie Hospital, which lies not far from Voortrekker Road in the suburb of Pinelands. A 3 000 housing unit development is planned there, which will align with the provincial government’s concept of Live, Work and Play. With the state (provincial or local 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 grant-funded housing. Spatial planning also underpins the thinking behind the concept of an “aerotropolis”, the idea of using a city’s airport to be a catalyst for growth across multiple sectors. The airport’s cluster of industries and storage facilities should be linked to the metropolitan south-east and two sections in Philippi: the industrial area and the horticultural area. 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 attract good houses for residential property. Several schools have been built in the area. A developer has put forward a plan to build a city near Melkbosstrand. The ambitious plan is called Wescape. The MyCiti bus service with its own dedicated lane is making it easier to live in suburbs along the West Coast. MyCiti also serves the Century City development. 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 being completed. The famous Fancourt facility, which incorporates residential holiday accommodation and a hotel, also has three golf courses (but one has a very exclusive membership). Kingswood is another premier golf estate in George. Pam Golding was selling a three-bedroomed townhouse at Kingswood in November 2016 for R2.35m. Newer estates have been built on the eastern edge of George, near to the recently constructed mall, the Eden Meander Lifestyle Centre. Kraaibosch estate will have four options for potential buyers, including a retirement village. The Blue Mountain Lifestyle Estate has similar options.
ONLINE RESOURCES Construction Industry Development Board: www.cidb.org.za Greater Tygerberg Partnership: http://gtp.org.za/ Master Builders and Allied Trades Association, Western Cape: www.mbawc.org.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 SA Property Owners Association: www.sapoa.org.za.
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Tourism New flights are bringing greater numbers of tourists to the Western Cape.
he Western Cape attracts huge numbers of tourists every year and this is a sector where positive growth has already created many job opportunities. Every kind of tourism is doing well, from leisure and adventure tourism to meetings and conferences. Tourism grew at 6.6% for the five years to 2014 and generated jobs growth in the same time period of 7.7%. The sector employs 204 000 people in formal jobs and is worth about R17-billion to the regional economy. A project to increase the number of seats available on aeroplanes flying into Cape Town International Airport has reaped remarkable success. Between July 2015 and December 2016 the Cape Town Air Access programme secured an increase in 408 400 direct two-way seats to Cape Town from destinations such as Dubai (140 000), Turkey (110 000), Ethiopia (80 000) and the Netherlands (30 000). A total of 162 000 tourists travelled to the Western Cape from the USA; arrivals at the Cape Town International Airport increased 16% year-on-year in 2015. The airport regularly wins accolades such as Best Airport in Africa and the total number of passengers passing through the airport has been above eight-million every year since the FIFA football World Cup in 2010, with the figure approaching 10-million in 2015/16. WESTERN CAPE BUSINESS 2017
SECTOR INSIGHT The Cape Town International Convention Centre will be twice as large in 2017. • Scheduled flights are available to Plettenberg Bay. • Hilton Hotels and Resorts runs a resort in Knysna. • Cape Town’s Foreshore is alive with new tourism developments. George Airport had a total of about 720 000 passengers last year. Airlink, SA Express and kulula are the airlines that fly into George. It serves as a tourism hub for the Southern Cape region, includ-
OVERVIEW ing destinations such as Knysna, Oudtshoorn and Plettenberg Bay. CemAir offers scheduled flights to Plettenberg Bay. 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. 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. 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 (Eden) 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.
Hotels and conferences The capacity of the Cape Town International Conference Centre (CTICC) is being doubled. The R832-million expansion will add 31 000m², including 10 000m² of
conference and exhibition space. CTICC East (the new section) will connect to CTICC West via a tunnel (for services) and a skybridge over the Heerengraght. The new section is expected to open in 2017, and will line up along other new Foreshore buildings such as KPMG Place and the Netcare Christiaan Barnard Memorial Hospital. The South African Green Building Council has given the CTICC expansion a Four-Star Green Building rating. The Foreshore is at the heart of a series of new developments that are set to have a major impact on the tourism industry. These include the new Cruise Terminal and the adjacent Yacht Club, a hotel, residential and commercial complex being developed by the Amdec Group. This precinct is very close to the entrance to the CTICC and will be linked to the Waterfront by the extension of the existing canal. On the other (eastern) edge of the Foreshore, an a major development is in the works which will include two Marriott hotels. In the Cape Town CBD 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.
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Outside of the Cape Town CBD, a revamp of the Ritz in Sea Point will add another 220 rooms to the cityâ€™s capacity while in Franschhoek, the last word in luxury has opened as Leeu House (part of the Leeu Collection). Analjit Singh has also acquired Le Quartier FranĂ§ais restaurant, one of best known in a town where outstanding restaurants are plentiful, and a wine label, Mullineux & Leeu Family Wines. 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 Waterfront will soon be getting two more hotels (Radisson Red) and the Silo Hotel attached to the Zeitz Museum of Contemporary Art Africa. In addition to all of these beds available in Cape Town, there are 15 000 properties on Airbnb. A Western Cape tourism delegation met with Airbnb in the USA in 2016. Country Hotels has upgraded the 42-room Clanwilliam Hotel as part of its plan to roll out good accommodation in smaller towns. What used to be known as the Hantam Hotel in Calvinia is now the refurbished Calvinia Hotel and Tankwa Lodge offering 25 airconditioned rooms and easy access to flower-spotting and WESTERN CAPE BUSINESS 2017
the Tankwa Karoo National Park. Plett Lagoon Villa on the Keurbooms Lagoon is rather dif ferent to the rest of the Country Hotels suite of hotels in that it is a fivebedroomed house to rent. Country Hotels has other hotels in the Northern Cape Province.
Events The international HSBC Rugby Sevens tournament was held for the first time in Cape Town in 2015 and was a huge success. The City of Cape Town says that the tournament attracted more than 100 000 fans, at least 25 000 of whom were international visitors. The local economy benefited to the tune of R539-million. A contract has been signed to keep the tournament in the city to 2018. The Cape2Rio yacht race returns to the Cape in January 2017.
OVERVIEW In the last race in 2014, a total of eleven of the fleet of 37 boats had to retire in stormy weather, testament to the tough nature of the event. The event first took place in 1971 and since then it has become a byword for the glamour and gruelling nature of long-distance yacht racing. Royal Cape Yacht Club will host the event, which is sure to boost the coffers of Cape Townâ€™s tourism industry. The Klein Karoo National Arts Festival (KKNK) is held every year in Oudtshoorn in April. It attracts hundreds of artistic productions of every sort, mostly in Afrikaans, with attendances normally topping 90 000 festival-goers
ONLINE RESOURCES CapeNature: www.capenature.co.za Cape Town Tourism: www.capetown.travel Destinations Expo: www.cadek.co.za Garden Route and Klein Karoo: www.visitgardenrouteandkleinkaroo.com South African Golf Tourism Association: www.sagta.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net Tourism Business Council of South Africa: www.tbcsa.travel Tourism Grading Council: www.tourismgrading.co.za Wesgro: www.wesgro.co.za Cape to Rio: www.cape2rio2017.com Plettenberg Bay: www.plett-tourism.co.za Wildlife and Environment Society of South Africa: www.wessa.org.za
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Banking and financial services The JSE has opened an Exchange Hub in Cape Town.
SECTOR INSIGHT A Stellenbosch bank has expanded the Big Four to Five. â€˘ International banks are setting up app development hubs in Cape Town.
he finance and insurance sector contributes 10.9% to provincial GDP and grew at a rate of 6.4% between 2000 and 2013. Research done by banking group First National Bank notes how successful the Western Cape has been in attracting financial services companies of every sort. These range from asset managers to hedge funds, venture capitalists and insurers. The sector outperformed most other sectors according to the report, and further growth is anticipated (FNB Chartbook). The decision by the Johannesburg Stock Exchange (JSE) to open a JSE Exchange Hub in Cape Town confirms the cityâ€™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 (a huge complex in Pinelands), Foord (also in Pinelands), Coronation (Newlands), Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns in the province. Even the small rural town of Greyton is home WESTERN CAPE BUSINESS 2017
to Overberg Asset Management. Insurers such as Santam and Metropolitan Life are based in Bellville. Most of the banking groups also offer a range of services such as asset management or investment advice. Financial services group Old Mutual (which has a 54% stakeholder in Nedbank) is set to create four stand-alone businesses out of the Old Mutual Group. This will allow the UK-based wealth management business and the New York-based asset managers to be free of linkages to the rand, while the South African businesses, Nedbank and Old Mutual Emerging Markets, can focus on their specialities. Fintech is the new buzz word in the world of banking. Barclays has established a worldwide organisation to promote the latest thinking in app development. Rise has seven outlets around the world, including one in Woodstock in Cape Town. A
OVERVIEW French-funded fintech operation was launched at Century City in November 2016. In 2015, the Western Cape Provincial Government, the University of Cape Town, Barclays Africa Group, FirstRand and Liberty launched the African Institute of Financial Markets and Risk Management (AIFMRM). One of its aims is to meet the demand for skills by developing local talent.
Banking For many decades South Africa had a retail banking Big Four – Standard Bank, Nedbank, Absa/ Barclays and First National Bank. All of them have a strong presence in the Western Cape, but the big news in the sector since 2001 has been the emergence of Stellenbosch-based Capitec Bank. Based on Capitec’s results for 2015/16, BusinessTech published a chart giving Capitec the fourth-most customers, at 7.3-million, just less than Nedbank and slightly more than FNB. Standard Bank (about 11-million) and Absa (about nine-million) are top of the list. With the renewable energy sector being actively pursued in South Africa, a whole new industry in need of funding has opened up for banks. Competition among banks in reaching out to South Africa’s emerging economy is stiff. Finscope’s 2014 survey of South African banking and financial surveys shows that between 2004 and 2014 a remark-
able eight-million people were connected to the financial system in some way. Overall, the “financially included” reached 31.4-million (up from 17.7-million in 2004). In a category called “formally served” which includes services other than formal banks with branch networks, the percentage of South Africans so served grew from 50% to 80%; in the “banked” category (more traditional but including new devices), the percentage grew from 46% to 75%. This is partly because South Africa’s formal banking sector has such excellent – and widely spread – infrastructure. Among recent innovations designed to reach the unbanked were Teba Bank’s decision to allow customers to deposit at supermarkets, Pick n Pay Go Banking (a division of Nedbank), 70% of Absa’s new ATMs (400 in one year) in poorer areas and Absa’s launch of two mobile banks. FNB created mobile branches and most of Standard Bank’s new sites were planned for townships (Finscope). Absa’s partnership with Thumbzup allows shops to accept card payments with smartphones and tablets. Absa’s Entry Level and Inclusive Banking (Elib) branches have proved popular, accounting for an increasingly high percentage of the bank’s loan book. Nedbank has Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone. FNB offers a range of cellphone-banking options and a Facebook application where cellphone vouchers can be posted on the socialnetworking site. The eWallet application converts the voucher into cash or airtime. Standard Bank’s community-banking initiative offers a low-cost cellphone-banking service. Retailers can act as agents for the bank, even in remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas. The stokvel (savings clubs) market is estimated at R44-billion and developing products for this market could be a lucrative outlet for South African financial services companies.
ONLINE RESOURCES Alternative Exchange (AltX): www.altx.co.za Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Insurance Institute of South Africa: www.iisa.co.za Insurance South Africa: www.insurance.za.org JSE Limited: www.jse.co.za Post Bank: www.postbank.co.za South African Reserve Bank: www.resbank.co.za South African Institute for Chartered Accountants: www.saica.co.za
WESTERN CAPE BUSINESS 2017
Renewed focus on improved customer experience Provincial Head Retail and Business Banking Standard Bank Western Cape, Eben Klopper, explains what the bank is doing to provide the innovation and service that matter most to customers.
Eben Klopper What is Standard Bank’s purpose in South Africa? As a personal and business bank in South Africa, our purpose is to improve lives and fulfil aspirations across the African continent. We believe that we can achieve this through our vision, which is to radically redefine client experience by understanding and delivering what matters to our customers.
BIOGRAPHY Eben Klopper, the newly appointed Provincial Head Retail and Business Banking for the Western Cape, is a seasoned banking professional. Having started on the bottom rung of the ladder at Standard Bank in 1990, his progress in the organisation has seen him fulfil a variety of business and commercial banking roles in four South African provinces. Prior to his promotion to Regional Head he was the Executive: Head Channel Business Banking, Commercial Banking and Specialised Sales. WESTERN CAPE BUSINESS 2017
What is your footprint beyond South Africa? Standard Bank Group prides itself on being a global bank with African roots. The largest African bank by assets and earnings, it operates in 20 countries on the African continent, including South Africa, as well as in other selected emerging markets. The Group’s aim is to grow their presence selectively in high potential markets in Africa and in other emerging markets, either organically or, where appropriate, by acquisitions. In your new role of Provincial Head Retail and Business Banking, what is your strategy regarding Standard Bank’s business in the region?
As a team, our priorities include greater emphasis on customer experience. We intend to make sure that every customer feels like a VIP; we will do this by raising our game and getting to know what matters most to them. One of the ways in which we will improve customer experience is through our digital solutions, as these assist customers by freeing up their time. Something else that will directly impact customers is our goal of decentralising decision-making so that decisions are made as close as possible to the “frontline”. We want to increase our market share in all customer segments and to build specialist capabilities to serve our small enterprise (SE), commercial and business banking clients.
INTERVIEW What will some of the key focus areas be?
Foreign exchange: In the Western Cape we will be driving our foreign exchange (FX) and international banking capabilities. Standard Bank is relentless in providing support to our businesses with a view to improving liquidity and driving growth across the African continent. Companies active in the international market, be it in trade or the provision of services, may find a Customer Foreign Currency account a useful mechanism for managing the flows of foreign currency receipts and payments. It is suitable for businesses with a high import and export turnover, including large volumes of shipments of relatively small values. The Western Cape presents many international trade and foreign exchange opportunities, which can be offered and facilitated by our FX specialists. They are fully integrated in our Business Banking Business Centres to support our Standard Bank and non-Standard Bank client base.
“OUR RESEARCH INDICATES THAT TWO OUT OF EVERY 10 BUSINESS CLIENTS ARE KEEN TO EXPAND TO THE REST OF AFRICA.” A game changer, in forex capabilities, is Standard Bank’s strategic partnership with the Industrial and Commercial Bank of China. While Standard Bank already conducts 2.1-million forex trades each year, the bank’s partnership with the Industrial and Commercial Bank of China provides a unique ability to deal Renminbi competitively. Resident Africa advisor: Our research indicates that two out of every 10 business clients are keen to expand to the rest of Africa and we have appointed someone with valuable Africa experience to act as a resident advisor to businesses in the province. Our expert will be able to make recommendations on
doing business in any of the 20 African countries in which Standard Bank has a presence. During 2016, in support of our focus on the rest of Africa, we led two successful trade delegations – one to East Africa and one to West Africa. This was a first for us and the initiative was very well received. Commercial property finance: Another key focus is commercial property finance. I have been actively involved in this area over the past few years and it has been a successful market for the bank, but there are additional opportunities to explore in the Western Cape. A business’s premises are integral to their trading operation and it is important that businesses secure tenure as well as create equity in their investment. Standard Bank understands the importance of supporting its customers in all aspects of their business growth, including where customers are diversifying from their main business interests to invest in commercial rental properties. The Western Cape commercial property finance market has continued to show strong growth, outperforming many of its peers in the country, which further supports the bank’s focus on the industry going forward. Have the needs of and demands from your key business clients changed in the past few years or do the challenges they experience essentially remain the same?
Economic growth has been muted and so the landscape has definitely changed. For this
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INTERVIEW reason, many of our customers are looking outside of South Africa’s border. Cross-border financing is more complex and so their banking requirements have changed in some cases. Volatility and currency fluctuations have meant that forex hedging and forward-buying have become more important. These days, customers also have a greater choice when it comes to international products and are not compelled to use local banks for each transaction. Increasingly, executives are complaining about the difficultly they have in recruiting appropriately skilled people. Has Standard Bank introduced any new products or services recently?
In the last year we introduced a reward programme for our small enterprise (SE) clients – UCount: Businesses with an annual turnover of up to R20-million stand to benefit from these rewards. Payment solutions: BluMobi is another innovation we’ve introduced; it functions as a fully mobile point-of-sale solution. SnapScan and Tap to Pay are other payment solutions that are making it far more convenient for business clients to collect payment and for individuals to make payments. SE clients also benefit from Banker Chat 24/7. Online banking: We are in the process of enhancing our online banking services, particularly for businesses. Customers are already able to view balances, check statements and make payments on their business accounts. We have spent time aligning the look and feel of our applications across various digital platforms, which means that irrespective of whether customers choose to use a mobile phone, a tablet or a computer, they will have the same online experience. Tradesmen and medical professionals: Two new areas of focus in the SE segment include specific value propositions for tradesmen and the medical profession. The Tradesmen offer packages a number of banking services at a very affordable rate. The Medical proposition provides solutions that will assist medical professionals in both their personal capacity and business capacity. Instant Money: Another product that has been extended to our business customers is Instant Money,
WESTERN CAPE BUSINESS 2017
“THE WESTERN CAPE COMMERCIAL PROPERTY FINANCE MARKET HAS CONTINUED TO SHOW STRONG GROWTH, OUT- PERFORMING MANY OF ITS PEERS IN THE COUNTRY.” a payment solution that allows you to send money to anyone in South Africa by using their cellphone number. This solution will allow businesses to make payments in a cost-effective and secure manner. Always On: As far as our personal customers are concerned, they benefit from Always On – 24/7 banking anywhere, anytime. Customers can now conduct their banking through email, WeChat, Facebook, a call to their personal banker or by simply using our banking app and new internet banking functionality. Shari’ah offering: Many of our Western Cape customers will be pleased to hear about an improved Shari’ah offering relating to fixed deposits for personal and business purposes as well as forward exchange contracts. Kidz Banking: We have also aunched a Kidz Banking app that teaches children how to manage money from a young age. Having mentioned all of these innovations and new products, I still believe, however, that the real differentiator will be in the way that we execute our intentions. Great thinking and effective marketing messaging are important, but we intend to ensure that Standard Bank Western Cape implements excellent service and that we do what matters most to customers.
Banking for your business Standard Bank understands that as a business owner, you would prefer to free up your time and focus on running your business. Its online banking solutions allow you to do that.
e understand that to manage your business you cannot be restricted by banking hours. We also understand that managing your financial affairs online can be daunting. At Standard Bank we have a range of online banking solutions that enable you as the business owner to do your everyday banking, everywhere you are. Online banking is convenient, cost effective and secure. You can have peace of mind when you transact online.
What do I need? •
How does online banking help you manage your business? • • •
It saves you time, allowing you to focus on running your business It helps you maintain control of all activity on your business accounts It allows you to bank everywhere you are
Pay people and companies, that is, suppliers or invoices Transfer funds to and from your business accounts View account balances and download statement’s history Top-up on prepaid services
• • • •
Yes. As the business owner, you will maintain complete oversight over all activity on the business account You are notified every time your online banking profile is accessed Your confirmation is required (One Time PIN) before beneficiaries are added or when you change your profile You are notified when funds leave your account (email or SMS notification) and you always know your latest balance You can manage transactions limits (Electronic Account Payment and ATM limits), minimising your online exposure while giving you control
How do I sign up? •
To find out more about online banking, contact us anytime via the BizDirect Response Centre on 0860 109 075, via email email@example.com or via WeChat (BB_Entrepreneur). Visit our website to see our security tips and terms and conditions for using Standard Bank digital channels.
Register online or download the Standard Bank app form your app store
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Access is free Account management fees, transactional fees and subscription fees are as per the annual Standard Bank pricing schedule
Is it secure? •
A smartphone, tablet, laptop or desktop computer You must be the director or owner of your business You have a card and PIN linked to your business account
What are the costs? •
What can I do on online banking?
If you already have access to the app, you can use the same login details to sign in to online banking
Global Africa Network Promoting business, trade and investment in SAâ€™s nine provinces www.gan.co.za www.southafricanbusiness.co.za
Tel Email Web
021 657 6200 firstname.lastname@example.org www.gan.co.za
Information and communications technology Cape Town is attracting ICT investment.
roviding better and broader access to broadband is a key priority for the Western Cape. The provincial government has identified the issue as an economic enabler that will act as a catalyst for growth across several economic sectors. There are 2 000 ICT firms in the Western Cape and they have 17 000 employees. Private companies Link Africa and Fibrehoods are rolling out highspeed connections via fibre-optic cables to residential addresses. As part of the contract, Fibrehoods must supply the city with a line for the use of public institutions. A group of entrepreneurs, investors and developers has created the non-profit Silicon Cape Initiative which aims to support the burgeoning sector. Just one of its groups, the Startup Group, has 425 members and it offers advice and support. The Cape Innovation and Technology Initiative (CiTi) is another support system for the ICT sector. The Bandwidth Barn (shared office space in Woodstock) is one of three initiatives run by CiTi. The others are VeloCiTi (enterprise and entrepreneur development) and CapaCiti (tech skills and job placement). The University of Cape Town claims a 90% placement rate for CapaCiti and more than 400 graduates. CiTi collaborates with two departments of the Western Cape provincial government, Oracle and On The Ball College to present the Java Schools Programme, which promotes programming. Barclays Bank has invested in a fintech incubator in Cape Town, Rise. The building has an auditorium, meeting and conference rooms but the main idea is to create a community of thinkers and developers. Banks are keen to stay ahead of the game and there are six other Rise incubator locations around the world, including New York and Mumbai. It was a banking application (app) that won the IT Challenge presented by Standard Bank in 2015. Three students from the University of the Western Cape created a voice-activated online banking app,
ONLINE RESOURCES Cape Innovation and Technology Initiative: www.citi.org.za Independent Communications Authority: www.icasa.org.za Silicon Cape: www.siliconcape.com State Information Technology Agency: www.sita.co.za
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SECTOR INSIGHT Silicon Cape is a catalyst for tech in the Western Cape . which they called EasyBank. The challenge was to use and adopt the Amazon Echo app. French Tech Labs was launched as a fintech incubator at Century City in November 2016. The same company earlier established Methys Labs. The new incubator will offer mentoring support for innovators, connections to possible investors and a programme where selected candidates will travel to France for work opportunities. There is no business sector less in need of a geographic home than ICT but a section of Cape Town is developing into a Silicon Valley: Marconi Beam/ Century City. DVTâ€™s app-testing facility is immediately south of that location (just off the N1 at Northgate Island) so perhaps this is the home of Western Cape ICT. Wembley Square and nearby buildings in Gardens might be another candidate, where Amazon Development Centre is a core tenant.
Business process outsourcing Offshoring – foreign BPO contracts – is growing fast.
he South Africa business process outsourcing sector has consistently won international awards for the work it does for international companies and 2016 was no exception. The Global Sourcing Association (previously National Outsourcing Association) capped South Africa as the “Offshoring Destination of the Year” for 2016 in London in November. BPO involves any internal business function that a company chooses to outsource to a specialist in that field, for example accounting or call centres (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. Offshoring refers to BPO that is done across international borders. Cape Town is a leader in the field. A City of Cape Town report gave the BPO contribution to provincial GDP in 2014 as approximately R9-billion. The national Minister of Trade and Industry, Rob Davies, says that the local BPO sector has had compounded growth since 2012 of 25% year-on-year. There are approximately 30 000 jobs nationally with the top market being the UK. Within the Western Cape sector, 63% of companies are involved in inbound customer service work; back office accounts for 13.8% and debt collection at 9.1%. UK shop Asda and online retailer Amazon have large customer service centres in Cape Town. The fact that greater Cape Town is home to three well-regarded 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
ONLINE RESOURCES Business Process enabling South Africa (BPeSA): www.bpesa.co.za National Department of Trade and Industry: www.dti.gov.za Wesgro: www.wesgro.co.za
SECTOR INSIGHT Incentives are on offer to BPO investors. • South Africa’s BPO sector won a 2016 global award. company that has operations in Cape Town, S-RM, says the 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 some 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 for non-complex and complex jobs and is paid over a five-year period. A bonus incentive becomes payable at the end of the five-year period.
WESTERN CAPE BUSINESS 2017
South African National Government An overview of South Africaâ€™s national government departments. www.gov.za
Department of Basic Education
Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 323 8246 Website: www.thepresidency.gov.za Website: www.economic.gov.za
Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X9034, 8000 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Website: www.education.gov.za
Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival Street), Hatfield, Pretoria 0001 Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 473 0000 Fax: +27 12 462 1646 Website: www.doc.gov.za
Department of Communications
Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 323 8246 Website: www.thepresidency.gov.za
Department of Cooperative Governance and Traditional Affairs
Minister in the Presidency Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 300 5795 Website: www.thepresidency.gov.za
Address: 87 Hamilton Street, Arcadia, Pretoria 0083 Postal address: Private Bag X802, Pretoria 0001 Tel: +27 12 334 0705 Fax: +27 12 326 4478 Website: www.cogta.gov.za
Dept of Agriculture, Forestry and Fisheries
Address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Website: www.dcs.gov.za
Department of Correctional Services
Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria Tel: +27 12 319 7319 Fax: +27 12 319 6681 Website: www.daff.gov.za
Department of Economic Development
Department of Arts and Culture
Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & Esselen streets, Sunnyside, Pretoria 0001 Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Website: www.economic.gov.za
Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza Bopape streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3000 | Fax: +27 12 440 4485 Website: www.dac.gov.za WESTERN CAPE BUSINESS 2017
LISTINGS Department of Defence
Department of Human Settlements
Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001 Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 | F ax: +27 12 347 0118 Website: www.dod.mil.za
Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001 Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 | Fax: +27 12 341 8513 Website: www.dhs.gov.za
Department of Energy
Department of International Relations and Cooperation
Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001 Postal address: Private Bag X96, Pretoria 0001 Tel: +27 12 406 8000 Fax: +27 12 319 6681 Website: www.energy.gov.za Department of Environmental Affairs Address: Environment House, 473 Steve Biko and Soutpansberg Road, Arcadia, 0083 Postal address: Private Bag X447, Pretoria 0001 Tel: +27 12 310 3537 | Fax: +27 086 593 6526 Website: www.environment.gov.za Department of Finance (National Treasury) Address: 40 WF Nkomo Street, Old Reserve Bank Building, 2nd Floor, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 323 8911 | Fax: +27 12 323 3262 Website: www.treasury.gov.za Department of Health Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets, Pretoria 0001 Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165 Website: www.doh.gov.za Department of Higher Education and Training Address: 123 Francis Baard Street, Pretoria 0001 Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 Fax: +27 12 323 5618 Website: www.dhet.gov.za
Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria 0001 Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 1000 | Fax: +27 12 329 1000 Website: www.dirco.gov.za Department of Justice and Constitutional Development Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard Streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 | Fax: +27 12 406 4680 Website: www.doj.gov.za Department of Labour Address: 215 Laboria House, cnr Francis Baard and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X499, Pretoria 0001 Tel: +27 12 392 9620 | Fax: +27 12 320 1942 Website: www.labour.gov.za Department of Military Veterans Address: 328 Festival Street, Hatfield, Pretoria 0001 Postal address: Private Bag X943, Pretoria 0001 Tel: 080 232 3244 (SA only) Website: www.dmv.gov.za Department of Mineral Resources Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007 Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3000 | Fax: +27 86 624 5509 Website: www.dmr.gov.za
Department of Home Affairs
Department of Police (Civilian Secretariat for Police Service)
Address: 909 Arcadia Street, Hatfield 0083 Postal address: Private Bag X114, Pretoria 0001 Tel: +27 12 432 6648 | Fax: +27 12 432 6675 Website: www.dha.gov.za
Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001 Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 | Fax: +27 12 393 2812 Website: www.saps.gov.za
WESTERN CAPE BUSINESS 2017
LISTINGS Department of Public Enterprises
Department of Social Development
Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001 Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1000 Fax: +27 12 431 1039 Website: www.dpe.gov.za
Address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001 Postal address: Private Bag X904, Pretoria 0001 Tel: +27 12 312 7479 | Fax: +27 086 715 0829 Website: www.dsd.gov.za
Department of Public Service and Administration
Address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001 Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700 | Fax: +27 12 367 0749 Website: www.ssa.gov.za
Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria Postal address: Private Bag X884, Pretoria 0001 Tel: +27 12 336 1700 Fax: +27 12 336 1809 Website: www.dpsa.gov.za Department of Public Works Address: 7th Floor, CGO Building, cnr Bosman and Madiba Streets, Pretoria Central Postal address: Private Bag X65, Pretoria 0001 Tel: +27 12 406 21978 Fax: +27 086 276 8757 Website: www.publicworks.gov.za Department of Rural Development and Land Reform Address: 184 Old Building, cnr Jeff Masemola and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 9300 Fax: +27 12 323 3306 Website: www.ruraldevelopment.gov.za Department of Science and Technology
Department of State Security
Department of Sport and Recreation South Africa Address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street, Pretoria 0001 Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583 Website: www.srsa.gov.za Department of Tourism Address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001 Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 444 6780 | Fax: +27 12 444 7027 Website: www.tourism.gov.za Department of Trade and Industry Address: The dti, 77 Meintjie Street, Block A, Floor 3, Sunnyside, Pretoria 0001 Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 | Fax: +27 12 394 0337 Website: www.thedti.gov.za
Address: DST Building, Building No 53, CSIR South Gate Entrance, Meiring Naude Road, Brummeria, Pretoria 0001 Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6300 Fax: +27 12 349 1041/8 Website: www.dst.gov.za
Department of Transport
Department of Small Business Development
Telecommunications and Postal Services
Address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside, Pretoria 0001 Postal address: Private Bag X84, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 1006 Website: www.dsbd.gov.za
Address: Iparioli Office Park, 399 Jan Shoba Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8000 Fax: +27 12 427 8016 Website: www.dtps.gov.za
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Address: Forum Building, 159 Struben Street, Room 4111, Pretoria 0001 Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3131 | Fax: +27 12 328 3194 Website: www.transport.gov.za
LISTINGS Department of Water and Sanitation Address: Sedibang Building, 185 Frances Baard Street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 8850 Website: www.dwa.gov.za Department of Women Address: 36 Hamilton Street, Arcadia Pretoria 0001 Postal address: Private Bag X931, Pretoria 0001 Tel: +27 12 359 0000 Fax: 086 765 3365 Website: www.women.gov.za
National coat of arms
The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance.
Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth.
WESTERN CAPE BUSINESS 2017
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: email@example.com 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: Mr Alan Winde 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/dept/eadp
Department of Community Safety MEC: Mr Dan Plato 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 (Minister) 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 9482 Fax: +27 21 483 2589 Web: www.westerncape.gov.za/dept/ human-settlements
Department of Economic Development and Tourism MEC: Mr Alan Winde 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 2017
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
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
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 Tel: +27 21 483 4813 Fax: +27 21 483 5068 Web: www.westerncape.gov.za/dept/tpw
WESTERN CAPE PROVINCE Groen
R45 Wellington Worcester Paarl Rawsonville R60
Le eu w
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 ede
Gansbaai Quoin Point
Uniondale R 62
K o u ga
Herolds Bay Mossel Bay Vleesbaai
Motorway Main Road Railway
Laingsburg Matjiesfontein Touwsrivier ToLadismith u
Melkbosstrand Robben Island (World Heritage Site) TableDurbanville Bay
Prince Albert Road
Moorreesburg R 44 Tulbagh R 46 Riebeek West Ceres Darling
wa nk Ta
St Helena Bay
Paternoster Vredenburg Saldanha
Plettenberg Stormsrivier Bay Cape St Francis
INDIAN OCEAN 0 0
100 km 100 miles
WESTERN CAPE BUSINESS 2017
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 | Fax: +27 21 400 1313 Website: www.capetown.gov.za CAPE WINELANDS DISTRICT MUNICIPALITY Address: 46 Alexander Street, Stellenbosch 7599 Tel: +27 21 888 5100 | Fax: +27 23 342 8442 Website: www.capewinelands.gov.za Breede Valley Local Municipality Tel: +27 23 348 2600 | Fax: +27 21 883 8871 Website: www.bvm.gov.za Drakenstein Local Municipality Tel: +27 21 807 4500 | Fax: +27 21 807 4645 Website: www.drakenstein.gov.za Langeberg Local Municipality Tel: +27 23 615 8000 | Fax: +27 23 615 1563 Website: www.langeberg.gov.za Stellenbosch Local Municipality Tel: +27 21 808 8111 | Fax: +27 21 808 8003 Website: www.stellenbosch.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 Beaufort West Local Municipality Tel: +27 23 414 8100 Fax: +27 23 414 8105 Website: www.beaufortwestmun.co.za WESTERN CAPE BUSINESS 2017
Laingsburg Local Municipality Tel: +27 23 551 1019 | Fax: +27 23 551 1019 Website: www.laingsburg.gov.za Prince Albert Local Municipality Tel: +27 23 541 1320 | Fax: +27 23 541 1321 Website: www.princealbertmunicipality.com EDEN DISTRICT MUNICIPALITY Address: 54 York Street, George 6530 Tel: +27 44 803 1300 Fax: +27 86 555 6303 Website: www.edendm.co.za Bitou Local Municipality Tel: +27 44 501 3000 Fax: +27 44 533 6198 Website: www.plett.gov.za George Local Municipality Tel: +27 44 801 9111 | Fax: +27 44 801 9105 Website: www.george.gov.za Hessequa Local Municipality Tel: +27 28 713 8000 | Fax: +27 86 713 3146 Website: www.hessequa.gov.za Kannaland Local Municipality Tel: +27 28 551 1023 | Fax: +27 86 551 1766 Website: www.kannaland.gov.za Knysna Local Municipality Tel: +27 44 302 6300 | Fax: +27 44 302 6333 Website: www.knysna.gov.za Mossel Bay Local Municipality Tel: +27 44 606 5000 | Fax: +27 44 606 5062 Website: www.mosselbay.gov.za Oudtshoorn Local Municipality Tel: +27 44 203 3000 | Fax: +27 44 203 3104 Website: www.oudtmun.gov.za
LISTINGS OVERBERG DISTRICT MUNICIPALITY Address: 26 Long Street, Bredasdorp 7280 Tel: +27 28 425 1157 Fax: +27 28 425 1014 Website: www.odm.org.za
WEST COAST DISTRICT MUNICIPALITY Address: 58 Long Street, Moorreesburg 7310 Tel: +27 22 433 8400 | Fax: +27 86 692 6113 (SA only) Website: www.westcoastdm.co.za Bergrivier Local Municipality Tel: +27 22 913 6000 | Fax: +27 22 913 1406 Website: www.bergmun.org.za
Cape Agulhas Local Municipality Tel: +27 28 425 5500 | Fax: +27 28 425 1019 Website: www.capeagulhas.gov.za
Cederberg Local Municipality Tel: +27 27 482 8000 | Fax: +27 27 482 1933 Website: www.cederbergmunicipality.co.za
Overstrand Local Municipality Tel: +27 28 313 8000 | Fax: +27 28 312 1894 Website: www.overstrand.gov.za
Matzikama Local Municipality Tel: +27 27 201 3300 | Fax: +27 27 213 3238 Website: www.matzikamamun.co.za
Swellendam Local Municipality Tel: +27 28 514 8500 Fax: +27 28 514 2694 Website: www.swellenmun.co.za
Saldanha Bay Local Municipality Tel: +27 22 701 7000 | Fax: +27 22 715 1518 Website: www.sbm.gov.za
Theewaterskloof Local Municipality Tel: +27 28 214 3300 Fax: +27 28 214 1289 Website: www.twk.org.za
Swartland Local Municipality Tel: +27 22 487 9400 | Fax: +27 22 487 9440 Website: www.swartland.org.za
Municipalities in the Western Cape
Metropolitan/District Municipality Boundary Local Municipality Boundary
Northern Cape Matzikama
Cape Winelands City of Cape Town Metropolitan Municipality
Breede Valley Drakenstein Langeberg
WESTERN CAPE BUSINESS 2017
INDEX Accelerate Cape Town.......................................................................................................................................................................... 38 - 41 Air Products........................................................................................................................................................................................................91, IBC Atterbury................................................................................................................................................................................................................34 Beyerskloof........................................................................................................................................................................................................... 78 Breede-Gouritz Catchment Management Agency...................................................................................................................... 96 Cape Chamber of Commerce & Industry....................................................................................................................................... 2, 22, 58 Cape Town International Convention Centre (CTICC) ........................................................................................................................ 32 College of Cape Town.................................................................................................................................................................................. 5, 64 Formatube.............................................................................................................................................................................................................. 102 Invest Cape Town............................................................................................................................................................................................... 36 Masisizane Fund................................................................................................................................................................................................ 26 Nedbank.............................................................................................................................................................................................................. 45 - 49 Old Mutual.......................................................................................................................................................................................................... 50 - 55 Petroleum Agency South Africa.................................................................................................................................................................. 89 Pioneer Fishing...................................................................................................................................................................................................... 84 Seascape ............................................................................................................................................................................................................... 102 Selfmed ............................................................................................................................................................................................................ 66, OBC South Africa Table Grape Industry (SATI)....................................................................................................................................... 80 - 82 Standard Bank Western Cape...............................................................................................................................................................112 - 116 Unemployment Insurance Fund (UIF) ........................................................................................................................................................ 7 Wesgro...................................................................................................................................................................................................................18 - 21 West Coast District Municipality.................................................................................................................................................................. IFC Western Cape Business Opportunities Forum (WECBOF)......................................................................................................... 24 Western Cape Department of Economic Development and Tourism................................................................................10, 70 WESTERN CAPE BUSINESS 2017
Service that delivers the
Air Products South Africa (Pty) Limited manufactures, supplies and distributes a diverse portfolio of atmospheric gases, specialty gases, performance materials, equipment and services to the Southern African region. Air Products touches the lives of consumers in positive ways every day, and serves customers across a wide range of industries from food and beverage, mining and petrochemicals, primary metal and steel manufacturers, chemical applications, welding and cutting applications to laboratory applications. Founded in 1969, Air Products South Africa has built a reputation for its innovative culture, operational excellence and commitment to safety, quality and the environment. In addition the company aims to continue its growth and market leadership position in the Southern African region.
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