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2018 EDITION

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 a 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 – topped off with local brews and great wine. A great place to live, work and play.

Swartland Municipality Swartland Municipality covers an area of 3 700 square kilometres, stretching from the Atlantic Ocean in the west to the Berg River in the east. To the south it borders the City of Cape Town, to the east the Drakenstein Municipality, to the north the Bergrivier Municipality and to the north-east Saldanha Bay Municipality. In 2016 the estimated population was 133 000. Swartland has displayed resilient economic growth through some trying market conditions both locally and abroad. The main competitive advantages are strategic location, low costs, low risk, a municipality that values business and growing investor confidence. Add to this the benefits of a sophisticated city that is still close enough to leverage when needed, while employees get to enjoy the best of both country life and the city. Similar to growth patterns of towns on the outskirts of cities worldwide, both businesses and citizens increasingly view the Swartland as a good place to locate. Investment growth is expected from sectors such as protein, dairy, agro-processing, transport, logistics, retail, services and construction sectors. Phase 1 of the Schoonspruit industrial development consisting of 13 erven will be available in the near future. www.swartland.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. The Cederberg Rocklands is among the top five bouldering destinations in the world. www.cederbergmunicipality.co.za

MATZIK AMA

Vredenda l

Clanwillia m

CEDERBERG

BERGRIVIER Vredenberg

Piketberg

SALDANHA BAY Moorreesbur g

SWARTLAND

Langeber g

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

Bergrivier Municipality Situated north of Saldanha Bay, the Bergrivier 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

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


Welcome to the Cape Winelands  T he Cape Winelands District is situated in the Western Cape Province and is the second largest centre of economic activity in the province after the City of Cape Town. The region is famous for its spectacular scenery of beautiful mountains, valleys, as well as wine and fruit estates which attract local and foreign tourists. The region comprises of an area over 22 309 square kilometres, population growth is estimated at 10% between 2011 and 2016 while economic growth averaged 2.9% from 2011 to 2015.

Local municipalities The district has five local municipalities with a population of 863 000: Stellenbosch, Drakenstein, Witzenberg, Breede Valley and Langeberg. Drakenstein contributed the most to the Gross Domestic Product per Region, 32.8% in 2016 followed by Stellenbosch 24.0%, Breede Valley 19.1%. Witzenberg 13.9% and Langeberg 10.2%. There are major developments in the major towns such as Paarl and Stellenbosch to diversify the economy to maximise opportunities. Towns such as Ceres, Worcester and Robertson also offer prospects for investors .

The economy

The Cape Winelands has a strong agri-processing industry, which comprises more than a quarter of all agri-processing in the Western Cape. Economic activity is diverse, with tourism, agriculture, manufacturing and a growing financial services sector all featuring. Nearly one third (31%) of the province’s agricultural products are produced in the Cape Winelands as is about 70% of South Africa’s wine. A good percentage of this wine is exported and the wine estates themselves attract tourists with wine tasting and restaurants. Manufacturing is mainly concentrated on processing grapes and fruit into wine, juice, brandy, as well as dried and tinned fruit products. Dairy manufacturing, rose farming and thoroughbred horses are also present in the region. The tourism sector has been identified as a growing sector for the Cape Winelands region in different niches such as sports tourism, business tourism, etc. Strategies and policies are being put in place to maximise the potential for the tourism industry. The Cape Winelands District has a comparative advantage in the agriculture, forestry and fishing, construction, wholesale and retail trade, catering and accommodation, community, social and personal services sectors. The economy also benefits from niche activities that are spin-offs of agri-processing. These include wine tourism, the branding of the district as the “Foodie Capital, linked to food processing as well as the presence of internationally acclaimed restaurants. These niche activities are predominantly in the Stellenbosch, Paarl and Franschhoek areas.


Key economic sectors The economic sectors that contributed the most to the CWD’s economy in 2015 were: • Finance, insurance, real estate and business services 23 % • Manufacturing 15.7% • Wholesale and retail trade, catering and accommodation 19.7%. An investment destination Cape Winelands has the following strengths and advantages which enable it to stimulate growth and expansion of the regional economy; • a developed road and rail network that provide local businesses with easy access • easy access to Cape Town International Airports and the Port of Cape Town • a diverse choice of urban and rural sites throughout the district • educational institutions and centres for research excellence such as University of Stellenbosch and Agricultural Research Council • nationally and internationally renowned special educational institutions • the quality of life: The Cape Winelands is one of the most visited regions for domestic and international tourists.

CWDM Economic Development Programmes The Cape Winelands District Municipality is responsible for formulating strategic policies and developmental initiatives that will stimulate economic development. Several programmes are currently being implemented: Business Support and Mentorship In 2005 the Cape Winelands has established an Entrepreneurial Seed Fund and Small-Scale Farmers Programme which provides grant funding in the form of procuring equipment on behalf of the SMME. The Programme aims to address poverty, diversify the local economy, broaden income opportunities and enable small,

medium and micro enterprises to participate in the economy. The business mentoring focuses on the following areas; coaching and mentorship, business process establishment and documentation, sales and marketing and financial systems and legal advice. The mentorship is based on an individual SMME needs assessment. Business Retention and Expansion Through the Business Retention and Expansion (BRE) programme, the municipality demonstrates its commitment to the importance of issues facing existing businesses given that these businesses comprise the economic base in land use, capital formation and employment opportunities that shape the foundation for future growth. Priority is given to BRE tourism projects focusing on identified tourism niches (family friendly, sport and outdoor and accessible tourism). CWDM intend to act as a catalyst for developing these tourism niches. It is estimated that between 60% to 80% of all new jobs is created by existing businesses. Tourism Mobile Apps The CWDM has developed mobile apps for 14 of its towns in collaboration with the local municipalities, local tourism associations and business. The apps were launched on 22 March 2017. The Apps are on iOs and Android (Samsung mobile application) and connects the Tourism Association and its business members in such a way that businesses can download the mobile application from the application store, claim their businesses and upload the local content to its profile. The aim is to engage stakeholders, including those seeking tourism promotions and events, and to develop a collaborative network between tourism operators, businesses, the local tourism associations and the CWDM. A separate Cape Winelands District (CWD Tourism) App has been developed. This focusses on routes, attractions and events.


Where Opportunity Meets™

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CONTENTS

CONTENTS Western Cape Business 2018 Edition

Introduction Foreword 11 Western Cape Business is a unique guide to business, investment and tourism in the Western Cape. Tourism and agri-processing are on the up

12

Alan Winde, Western Cape Provincial Minister of Economic Opportunities, reflects on the key elements of a targeted growth strategy for the regional economy. Poised for growth

26

Western Cape Business spoke to Wesgro CEO Tim Harris about new developments in the region and highlights of the past year.

Special features Regional overview

14

Technology and the oil and gas sector are creating new opportunities in the provincial economy.

WESTERN CAPE BUSINESS 2018

6


CONTENTS Record tourist numbers and glittering new attractions

36

Cape Town International Airport hosted 10-million arrivals and the Zeitz Museum promises to attract even more tourists. Medical innovation is solving complex problems

50

Heart valves and posture support wheelchairs are among the Cape’s exciting new inventions.

Economic sectors Agriculture 76 Seven of the Cape’s biggest exports are agricultural. Wine and grapes

78

Exports are still strong despite the drought. Mining 84 Uranium is under the spotlight in the Karoo. Oil and gas

85

New terminals and increased storage capacity have boosted the sector. Energy 90 Renewable energy and nuclear power are in the mix. Fishing 94 Fishing companies are listing. Water 95 Desalination plants are under construction. Manufacturing 98 Steady growth in predicted in this diverse sector. Construction and property

100

Affordable accommodation is on the agenda of developers.

WESTERN CAPE BUSINESS 2018

8


CONTENTS Banking and financial services

104

Financial services is a growth sector. Development finance and SMME support

110

Opportunities abound for entrepreneurs. Education and training

114

Tackling the skills deficit. Business process outsourcing

120

Cape Town leads in offshore jobs. Information and communications technology

121

French technology has come to Cape Town.

Government Western Cape Provincial Government

122

An overview of the Western Cape provincial government departments. Western Cape Local Government

123

An overview of the Western Cape municipalities.

Reference Sector contents

74

Index 128 Maps 19 Western Cape map. Britstown

Brandvlei

Garies

G ro

R 27

Groen

Carnarvon

Loeriesfontein

Northern Cape Fish

Sout

N1

R43

Le eu w

Buffels

yka

R44

ws

Montagu

R62

Groot

So u

Bre

ede

10

Sou t

Klipplaat Prince Albert

Willowmore

Walker Bay

Infanta

R 43

Arniston

Gansbaai

Struisbaai

Struisbaai

Cape Agulhas

Bay

Gro

ot

s Olifant

Calitzdorp

De Rust

R62

Oudtshoorn

N12

Uniondale R 62

N9

K o u ga

George

SedgefieldKnysna

Herolds Bay Mossel Bay

Vleesbaai

Joubertina Kareedouw

R43

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

Quoin Point

WESTERN CAPE BUSINESS 2018

Eastern Cape

Leeu-Gamka Gam

Laingsburg Matjiesfontein Touwsrivier Ladismith Tou

R45 Wellington Worcester Paarl Rawsonville R60

Sun d

N9

ka

Dw

Malmesbury

Melkbosstrand TableDurbanville Bay

N1

Graaff-Reinet Aberdeen

R 61

N12

s ay

wa nk Ta

Moorreesburg R27 Langebaan R45 R 44 Tulbagh R 46 Riebeek West Ceres Darling

Prince Albert Road

R 63

Kariega

Sutherland

Western Cape

R44

N7

R45

Robben Island (World Heritage Site)

Motorway Main Road Railway

Three Sisters

Fraserburg

Beaufort West

Citrusdal Piketberg

Dassen Island

R63

Riet

Velddrif R79

Saldanha Bay

oei

Richmond

Calvinia

Cederberg

R27

St Helena Bay

N1

Loxton

Clanwilliam

ATLANTIC OCEAN

ek

Victoria Wests

r

R27

Vanrhynsdorp

R27

Williston

R 63

ge On

R 27

Vredendal R27

N

R63

Nieuwoudtville

Se

Hanover

N12 R63

t

Lambert's Bay

Paternoster Vredenburg Saldanha

N10

R 63

Sak

N7

De Aar

en

Kliprand

WESTERN CAPE PROVINCE

N2

Plettenberg Stormsrivier Bay Cape St Francis

INDIAN OCEAN 0 0

100 km 100 miles


CREDITS

Western Cape Business

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

A unique guide to business and investment in the Western Cape. The 2018 edition of Western Cape Business is the 11th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the growth of tourism (spurred by an innovative programme designed to create more direct flights to Cape Town), medical technology as a growth sector and the pursuit of excellence that drives the Cape Winemakers Guild. The journal contains a message from Alan Winde, Minister of Economic Opportunities, and contributions from significant business leaders from Accelerate Cape Town, the Cape Chamber of Commerce and the Western Cape Business Opportunities Forum. An interview with Tim Harris, Wesgro’s CEO, reveals some of the recipe for the province’s economic success. To complement the extensive distribution of the print edition, the full content can also be viewed online at www.westerncapebusiness.co.za. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at www. gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

PUBLISHED BY

DISTRIBUTION

Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za

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. Member of the Audit Bureau of Circulations

ISSN 1816-370X

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 flickr.com, Public Domain Images, Wikimedia Commons, skyscrapercity.com and Pixabay.

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.

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WESTERN CAPE BUSINESS 2018


MESSAGE

Building on our successes Tourism and agri-processing are on the up and wine sales to China are soaring. Alan Winde, Western Cape Provincial Minister of Economic Opportunities, reflects on the key elements of a targeted growth strategy for the regional economy.

Alan Winde, Western Cape Provincial Minister of Economic Opportunities

Our Project Khulisa focus areas, agri-processing and tourism, are reporting excellent progress during a challenging time for our economy. In tourism, we have added over 26 000 jobs since the launch of Project Khulisa in 2014. Improved direct air access has played an important role in driving this increase. Through our Cape Town Air Access partnership, we have added ten new direct routes to the destination and secured 11 expansions. We’ve seen an increase of 27% in international air arrivals in the past year.  Agriculture and agri-processing remain under pressure due to the drought, and recently the outbreak in avian influenza has severely impacted our commercial poultry industry. Since the start of Project Khulisa, 127 000 jobs have been created in these sectors. According to the latest figures from Stats SA, however, jobs in Western Cape agriculture declined by 21 000 in the last quarter, reflecting the difficulties we are currently facing. We have invested R67-million in drought relief support for commercial and smallholder farmers.

 T

here has been steady jobs growth in key sectors in the Western Cape, despite several challenges we face. Over the past year, 84 000 jobs have been added to the Western Cape economy, according to the latest figures from the Statistics South Africa. WESTERN CAPE BUSINESS 2018

12


MESSAGE

The findings of the Western Cape Department of Agriculture’s Agri Worker Household Census, released in November 2017, also revealed trends for job seeking in agriculture. The census, which surveyed over 11 000 households, found that over the next 15 years, the number of rural residents who will enter the job market will increase by 34%. Only 12% of the sector’s current employees will be leaving the workplace over that same time period. To accommodate the rise in work-seekers, agriculture must grow by between 8% and 10%. Other milestones we have reached in Project Khulisa include an 80% increase in wine exports to China, the production of which has a positive effect on jobs. In partnership with Wesgro, we have also secured private-sector investment worth over R1-billion into this sector. While we are pleased with our progress, we are concerned about our natural resource base, and realise the need to put urgent plans in place to address the water shortages in our region. A reliable water supply is critical to economic growth. We are working with the private sector to find the best solutions. This includes highlighting best practice in reducing water use, and finding long-term plans to sustain our water supply. I am confident that by working together we can continue to build on these successes across all sectors of our economy.

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WESTERN CAPE BUSINESS 2018


A REGIONAL OVERVIEW OF THE

WESTERN CAPE PROVINCE

Innovation and strong exports are serving the provincial economy well.

P

eople are moving to the Western Cape. Tourists in increasing numbers are flying direct to Cape Town before travelling up the Garden Route to sample the delights of the Knysna lagoon or along the R62 to experience the Little Karoo. Asset managers are setting up headquarters in Cape Town. Business leaders are “semi-grating” to George. For many reasons, the Western Cape is experiencing a net inflow of people, attracted to

the province’s good infrastructure and opportunities in several strong economic sectors. About 150 000 South Africans have moved to the Western Cape from other parts of South Africa in a decade. A shortage of water, however, is proving to be a real concern, the result of a years-long drought. Measures have been put in place in greater Cape Town to create from seawater about 500 000 litres of drinkable water per day from desalination plants.


SPECIAL FEATURE

Elsewhere in the province, boreholes are being dug but longer-term plans will have to worked out to deal with the problem. One idea being mooted in Cape Town is the creation of suburban underground reservoirs to collect stormwater from run-off. Tourism is a sector where the Western Cape has been strong for many years, but the current levels are providing a material boost to the economy in many parts of the province. Each region has its strengths and there is terrific diversity on offer. A new area of strength in the Western Cape is technology. France has officially designated the city as one of six global French Tech Hubs, together with the likes of San Francisco, Tel Aviv and New York. French Tech Labs was launched as a fintech incubator at Century WESTERN CAPE BUSINESS 2018

City in 2016 and the British bank, Barclays Bank, has also invested in a fintech incubator in Cape Town, Rise. There are six other Rise sites around the world, including New York, Vilnius and Mumbai. The presence of French and British firms points to an interesting new reality which will soon come into force, namely Britain’s exit from the European Union. South Africa will need to renegotiate treaties with Britain as a free-standing nation and France has already signalled that it wants to start doing more business with and in South Africa. AfricArena 2017, a technology conference expressly designed to link African technology innovators with “international technology stalwarts”, was surely part of that drive, co-hosted as it was by La French Tech Cape Town and Silicon Cape.

16


SPECIAL FEATURE The Western Cape stretches to the north along the Atlantic Ocean about 400km north of the provincial capital, Cape Town, to Plettenberg Bay in the east. Beaufort West on the N1 highway is the biggest town in interior. The province is very 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. 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 run by the national oil company, PetroSA. Koeberg nuclear power station is South Africa’s only such power station. Wind and solar power are being installed rapidly across the province as South Africa tries to end its dependency on fossil fuels. The national parliament is located in Cape Town and there is a separate provincial legislature.

economy. A truly remarkable piece of innovation has come out of the coastal town of Mossel Bay. The Times newspaper reported in October 2017 that fish skin, previously regarded as a waste product, is being used to make handbags and shoes. Ocean Hide also makes wallets and bowties. The company is part of Afrishore Fishing, and was formed in 2016 to try to avoid retrenching people when the global oil and gas industry slowed down. The company’s founders noted that with ostriches nearby and an existing leather tannery in Mossel Bay, the potential was there to start producing a leather-like product. Innovation is also taking place in the energy sector, especially in the green economy. Atlantis is being promoted as a green economy manufacturing hub and biogas and the use of waste for energy have huge potential.

Economy

Innovation As another article in this journal notes, innovation in the medical field involving diagnostics and medical devices is another growth area for the Cape

Finance, business services and real estate combined contribute 28% to the gross domestic product (GDP) of the Western Cape. The financial services and insurance sector are key components of the

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WESTERN CAPE BUSINESS 2018


SPECIAL FEATURE is the lead agent in the creation of SEZs, which form part of the national Industrial Policy Action Plan (IPAP).

economy. Many of South Africa’s biggest companies have their headquarters in Cape Town. Asset management and venture capital companies have been growing steadily. Although agriculture only accounts for 4.3% of 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. (Agri-processing accounts for 8.1% of GDP.) Citrus, wine, apples and pears, grapes, fruit juice, fruit and nuts and tobacco all appear in the top 10 of the province’s exports. Seventy percent of South Africa’s beverage exports come from the Western Cape. Grapes and wine sales to Europe remain very strong but the Chinese market is becoming increasingly important. Refined petroleum was the single biggest earner for the Western Cape in 2015, with exports valued at R18.2-billion (Wesgro). The province has a diverse manufacturing sector ranging from textiles, clothing, footwear and furniture to coke and refined petroleum products. Excluding agri-processing, other manufacturing makes up 6.9% of GDP.

Special Economic Zones The Western Cape has two zones designated as Special Economic Zones (SEZs) although the Atlantis SEZ is still awaiting official proclamation. The National Department of Trade and Industry (dti) WESTERN CAPE BUSINESS 2018

18

Atlantis The suburb of Atlantis was one of apartheid’s bad experiments that left residents stranded far north of the metropolis. The planned Special Economic Zone with a focus on green technology has started changing that reality. Several important investments have been made into the area. Spanish wind tower manufacturer Gestamp Renewable Industries (GRI), has added to its initial investment of R300-million. Others include Resolux (R25-million) which makes internal components of wind turbines; Kaytech (a geotextiles firm) has recently expanded (R130-million) as has Skyward Windows (double glazing, R50-million). Altogether, there has been about R680million invested in 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. Saldanha Bay The Saldanha Bay Industrial Development Zone has formally been in existence since 2013 and it has ambitious plans to tap further into the burgeoning oil rig maintenance and repair business. About 130 rigs round the Cape every year, and South Africa attracts only a tiny fraction of them to its ports. The SBIDZ dovetails neatly with two broader plans: 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. Priority sectors at Saldanha are upstream Oil and Gas, and Marine Engineering and Services, and 32 companies have already signed up as investors in the IDZ. Three major projects are under way or in the planning


SPECIAL FEATURE stage, overseen by national government, the Southern African Oil and Gas Alliance and SBIDZ-LC: an Offshore Supply Base (to cater for ships and rigs); Berth 205 (specialised Rig and Vessel Repair Quay); and Mossgas Jetty (equipment and vessel-servicing facility and floating dock).

continues to grow, as is the decision of more asset managers to move their headquarters to Cape Town. The tourism, retail, construction and property sectors have been doing well for many years. The city has a population of 3.2-million and contributes 76% of the regional gross domestic product. Cape Town is home to the nation’s parliament and is the site of two World Heritage Sites: the Cape Floral Region (including Table Mountain) and Robben Island. The Cape comprises only half a percent of the landmass of Africa yet the Cape Floral Region accounts for nearly 20% of the flora of the continent. Robben Island was the site of the incarceration of the most prominent political prisoners during the apartheid era, including Nelson Mandela. His release was celebrated on the Grand Parade outside the old city hall, which has recently been renovated. Cape Town has been welcoming the world in increasing numbers since Mandela’s release in 1990, and it is now regarded as one of the world’s great tourist destinations, regularly ranking highly on “must visit” lists. The Air Access programme detailed elsewhere in this journal is ensuring that ever-increasing numbers of tourists from around the world can fly to Cape

REGIONS The province is divided into one metropolitan municipality and five district municipalities:

Cape Town Metropolitan Municipality Cape Town is a culturally diverse and dynamic metropolis set among beautiful beaches and winelands with the spectacular Table Mountain as a backdrop. The city is the engine of the regional economy, with most of the Western Cape’s heavy and medium industry located within the metropolitan area of Cape Town. The largest sector in the city’s economy is the financial and business services industry. The opening of a branch of the JSE in the city is a sign that this sector

Britstown

Brandvlei

Garies

ro G

R 27

WESTERN CAPE PROVINCE Groen

Carnarvon

Loeriesfontein

Fish

t

Sout

So u R27 Langebaan

R45

Darling

Malmesbury

Melkbosstrand TableDurbanville Bay

Robben Island (World Heritage Site)

R 46

Ceres R44

N1

R43

R45 Wellington Worcester Paarl Rawsonville R60

Eastern Cape

Le eu w

Leeu-Gamka

Sou t

ws

R62

Groot

Klipplaat

Prince Albert

Willowmore

Calitzdorp

De Rust

R62

Oudtshoorn

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

Walker Bay

Infanta

R 43

Arniston

Gansbaai Quoin Point

Struisbaai

Struisbaai

Bay

Gro

ot

s Olifant

N12

Uniondale R 62

N9

K o u ga

George

SedgefieldKnysna

Herolds Bay Mossel Bay Vleesbaai

Joubertina Kareedouw

R43

Bre

Motorway Main Road Railway

N9

ka

Buffels

Laingsburg Matjiesfontein Touwsrivier ToLadismith u Montagu

N1

Su nd

R 61

N12

Gam

Moorreesburg R 44 Tulbagh

Riebeek West

Western Cape

Prince Albert Road

yka

Dw

N7

R45

Dassen Island

R44

Graaff-Reinet Aberdeen

s ay

wa nk Ta

Piketberg

R 63

Kariega

Sutherland

Velddrif

Saldanha Bay

Three Sisters

Fraserburg

Beaufort West

Citrusdal

R79

Richmond

R63

Rie

Cederberg

R27

N1

Loxton

Northern Cape

Vanrhynsdorp

St Helena Bay

Victoria Wests

r

Williston

R 63

Clanwilliam

ATLANTIC OCEAN

oei

Calvinia

Vredendal R27

Lambert's Bay

ek

ge On

R 27

R27

N

R63

Nieuwoudtville

Se

Hanover

N12 R63

t

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Paternoster Vredenburg Saldanha

N10

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Sak

N7

De Aar

en

Kliprand

N2

Plettenberg Stormsrivier Bay Cape St Francis

INDIAN OCEAN 0 0

100 km 100 miles

Cape Agulhas

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WESTERN CAPE BUSINESS 2018


SPECIAL FEATURE Town International Airport from their own countries. The Port of Cape Town is ideally situated at the crossroads of some of the world’s most important trade routes. The transport, maritime and logistics sector is consequently very important. Bunkering and ship repair are other vital port facilities, and the boat repair and boat building industries continue to grow. The port plays a major role in exporting the province’s excellent fruit, wine and other agricultural products to international markets. Cape Town has a diverse manufacturing sector, with petroleum products, food and beverages and metals and metal products being major sectors. Growth sectors include the film industry, ICT and other tech specialities such as fintech and medical diagnostics.

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 are very popular with tourists such as Barrydale and Greyton. Agriculture is the principal economic activity of the region and the services sector is strong.

West Coast District Municipality Towns: Saldanha Bay, Malmesbury, Clanwilliam, Vredenburg, Morreesburg. The economy of this region ranges from manufacturing in Saldanha, Atlantis and Malmesbury to agriculture and forestry centred on inland towns like Moorreesburg (wheat), Cedarberg (forestry) and Citrusdal. Cement is made in Riebeeck West and Piketberg and fishing takes place all along the coast. Rooibos tea and shoes are made in Clanwilliam. The remote mission station of Wupperthal is famous for its veldskoens. The Port of Saldanha Bay is the principal port for the export of iron-ore and 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 cheese-making facility in Bonnievale. Robertson is known for roses and thoroughbred horses. Stellenbosch is home to its eponymous university which is becoming synonymous with tech start-ups and innovation. Several large companies, such as PSG Group, have their headquarters in the town. WESTERN CAPE BUSINESS 2018

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Eden District Municipality Towns: George, Oudtshoorn, Calitzdorp, Knysna, Mossel Bay, Plettenberg Bay. The area has two important tourist names: the Cape Garden Route on the coast and the Klein Karoo between the mountain ranges. Route 62 is a popular route which ends (or starts) in Oudtshoorn, home of the Cango Caves. A report by the Bureau for Economic Research has found that Eden DM is one of the bestperforming regions because of tourism. The area is famous for fine golf courses and golf estates. Mossel Bay, where the slipway in the harbour is receiving a multi-million-rand upgrade, hosts a large gas-processing plant while George is a node of manufacturing, trade and administration. The Klein Karoo has its own wine route and port, cheese and brandy are produced. Fruit, vegetables and ostriches are other main products. Central Karoo District Municipality Towns: Beaufort West, Laingsburg, Prince Albert. The largest district in the province has the smallest population, a reflection of the semi-desert conditions: 71 000 people live on 38 000km². Sheep farming predominates and there are plans to introduce agri-parks to towns in the region. Beaufort West is strategically positioned on the N1 highway which links Cape Town with the interior of South Africa. The nearby Karoo National Park has recently acquired some lions and Prince Albert is a quaint town situated in the shadow of the Swartberg Mountain, close to the dramatic portals that link the Karoo to the Klein Karoo: Seweweekspoort, the Swartberg Pass and Meiringspoort.


Contact us | Head office: Tel: 0860 212 414 | Fax: 021 483 9851 | www.westerncape.gov.za/tpw | @WCGovTPW | Email: transport.publicworks@westerncape.gov.za

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he Department of Transport and Public Works strives to give excellent service delivery to all residents and visitors to the Western Cape. It goes without saying that the needs of a developing country like South Africa are great, and the budget of any government department is inherently limited. For this reason, the Department must establish strategic spending and activity priorities that will help ensure that its limited budget meets the needs of the greatest number of the province’s people. The Department’s vision is to lead in the delivery of government infrastructure and related services. By providing government infrastructure and supporting job creation, the Department is living its mission of delivering infrastructure and services to promote positive socio-economic outcomes and safe, empowered and connected communities. Infrastructure Th e We s te r n C a p e G ove r n m e n t h a s identified infrastructure development as a core component of its vision to transform the provincial economy and to stimulate economic growth and job creation. Infrastructure investment remains a pivotal enabler of socioeconomic development. The Department remains committed to reshaping the existing provincial urban and rural landscape in a manner that offers potential socio-economic opportunities for all, while helping to ensure inclusive growth. This can be achieved by improving the coordination of integrated infrastructure development planning, by delivering an effective infrastructure service, and by leveraging the assets under its custodianship towards improved service delivery, efficiency and integration with work of other departments. The Department will continue to spend its multi-billion Rand health, education, roads and general building

budgets on building and upgrading such infrastructure projects. Green buildings A number of the Department’s projects apply best practice green standards in design and construction to mitigate environmental impact and save money in the long term. Green features include electricity-saving motion sensor switches, passive solar design, solar photovoltaic panels, structures that can be reconfigured as needs change, water-saving plumbing, and rainwater harvesting facilities. Through these projects, the Department is ensuring that what it builds is in line with the aims of the Western Cape Government 110% Green initiative. The Department aims to provide a platform that stimulates people and organisations to build an innovative and dynamic green economy. The new R152 million Green Building in Bellville is a good example. It became the first recipient of the Green Building Council of South Africa (GBCSA) Socio-Economic Category Pilot Award, and the GBCSA also gave the building a 5-Star Green Star SA rating for design. The Green Star rating for design measures the extent to which a building design performs well in terms of management, indoor environmental quality, energy, transport, water, materials, land use and ecology, emissions, and innovation.


Delivering quality roads The Department believes that a good provincial road system maximises potential economic and social benefits, and improves access to opportunities for all. For this reason, high-quality road infrastructure forms an important component of an effective transport system in the province. Our investments aim to preserve both surfaced and gravel roads, and bridges to prevent the accumulation of maintenance backlogs. The Department designs and manages roadworks in such a way that inconvenience to road users is minimised at all times. Special thanks are due to all motorists who patiently navigate their way through these construction projects. The end result is always worthwhile – a better and safer travelling experience for all. These projects are specifically planned and executed in a way that advances important socio-economic objectives, including spending specified proportions of contract budgets on targeted contractors, on local labour, and on the training of local labour. The R487 million project to add a third lane to the N1 between Plattekloof Road and the Old Oak Interchange (to be completed early in 2019) is one of the major road improvement projects currently under way. Another is the R583 million project to rehabilitate and upgrade various sections of the R60 and R62 between Ashton and Montagu through Cogmanskloof (to be completed late in 2018). The projects are expected to have a number of tangible long-term benefits for the thousands of motorists who use these roads.

Transport operations The Department values the delivery of safe, reliable and integrated transport systems that facilitate economic development, connect communities to places of work, and improve access to public amenities and social services. In this regard, the Department recognises that public transport improvement initiatives should focus on all modes of transport with the ultimate goal of making public transport the mode of choice. People should be able to meet their daily transport needs in comfort, in safety and at a reasonable cost. An example is the George Integrated Public Transport Network (GIPTN), a partnership project between the Western Cape Government, the Municipality of George, and the national government to establish a high-quality, scheduled bus service in George. Phase 1 of the Go George bus service began operating in December 2014 and three phases are currently in operation. The network is the first complete integrated transport transformation project outside a major South African city. The GIPTN system is a model for smaller South African population centres seeking to implement infrastructure-light high-quality bus systems. The project began with the full-scale transformation of the public transport industry in George. Public transport operators own 100% of George Link, the newly established vehicle operating company that provides operating services to GIPTN. The network bears testament to the tangible value of partnership, public sector investment, good intergovernmental relations, and effective stakeholder management.


Public works The Department will continue to provide a balanced provincial government building infrastructure that promotes integration, accessibility, sustainability, equity, environmental awareness, economic growth, and social empowerment. The Department values the preservation of the immovable asset portfolio for future generations and helps to ensure the best use of those assets. The Department and the City of Cape Town are currently engaged in an ambitious project to transform the Two Rivers Urban Park (TRUP) into a sustainable neighbourhood to help overcome the legacy of apartheid spatial planning. Located at the convergence of the Black and Liesbeek Rivers, TRUP is envisaged as a 120 ha mixed-use, mixed-income, transit-oriented development for sustainable living. It will offer a mixture of residential, work, recreational and commercial opportunities in a connected landscape. This iconic project offers the Western Cape an opportunity to create an integrated response to the need for green developments that give effect to a “live, work, play� lifestyle. The envisioned development will be located around a central park which highlights the natural beauty of the two rivers. Due to the infrastructural constraints of the site, substantial work has been done to explore the feasibility of innovative green solutions to infrastructure provision, waste disposal, transport, and energy. The first phase of the project, which consisted of pre-feasibility and conceptual design, has been finalised, and a group of professional specialists is currently busy with the feasibility and planning phase.

Another key milestone is the Better Living Model Exemplar Project, which aims to unlock a new approach to using government property to leverage integrated living, starting with the redevelopment of the former Conradie Hospital site. This is a priority project for the province and brings with it the potential for better spatial integration of society, and is a step towards correcting the inequalities of the past. Improved partnerships with the private sector will also be part of the approach at Conradie. For more information, visit https:// www.westerncape.gov.za/betterlivingmodel/ Job creation and skills upliftment The Western Cape continues to experience unacceptably high levels of unemployment and poverty. The need to create jobs and the increasing costs of providing services are challenges that the Department is striving to overcome. The Department will continue to play a significant role as coordinator of the Expanded Public Works Programme (EPWP) in the Western Cape. The EPWP aims to provide short-term work opportunities and skills development, especially for youth, women, and people with disabilities. The skills development component seeks to enhance the chances that participants will be able to find jobs or start their own businesses after their participation in the EPWP ends.


Use of public roads for sport or filming purposes Members of the public can apply to use a public road for sport or filming purposes. The applicable permit application depends on whether the road is a municipal road or a provincial road. MUNICIPAL ROADS The City of Cape Town handles applications for film shoots, photo shoots and sports events on municipal streets, roads, sidewalks and road verges. The production company or applicant must ensure that normal pedestrian and vehicle access is possible at all times other than when filming actually takes place, unless the permit allows dedicated use of a specific area. If the applicant would like a road to be closed, an alternate route must be available. City of Cape Town Events Office Tel: 021 417 4035 Email: events.permit@capetown.gov.za PROVINCIAL ROADS Applications to use a provincial road for film shoot, photo shoot or sport purposes must be submitted to the Directorate: Transport Administration and Licensing in the Department of Transport and Public Works. An application fee must be paid. The event must be confirmed at least one week in advance of any filming. An application for filming permission must contain the following information: • The roads and exact locations that the applicant would like to use; • The times and dates of filming; • The script of the scene to be filmed there; • What the set will consist of; • The number of crew and vehicles involved in the film shoot; • Any deviations from the National Road Traffic Act, 1996 (for example, exceeding the speed limit, or driving on the wrong side of the road); and • Information about whether a helicopter will be used during filming. The application will be referred to the relevant provincial traffic centre which will provide traffic assistance if necessary. Closure of provincial roads may not interfere with the flow of traffic for more than ten minutes at a time. At the end of the shoot, an invoice for the traffic assistance will be issued. Department of Transport and Public Works Directorate: Transport Administration and Licensing Tel: 021 483 2075/4177/5397/2406 Application fees to use provincial roads R80 - Administration fee R4 400 - Filming application R1 100 - Photo shoot application


FOCUS

Member-oriented scheme makes medical aid affordable. Selfmed Medical Scheme is one of the oldest medical schemes in South Africa, having been established more than 50 years ago.

Christo Becker

Affordability is a key component of Selfmed's offering. As Christo Becker, Principal Officer of Selfmed, says, “We pride ourselves in bringing affordable options to the South African market and making medical aid more accessible.” Selfmed has six

Selfmed prides itself on having a very strong member focus. Becker, who has previously worked as a paramedic and a hospital manager believes, “All of us share the passion and we want to ensure our members receive good healthcare.” Becker believes that the recent White Paper related to the planned National Health Insurance (NHI) scheme did not address a number of issues. He says, “We all support the idea that healthcare should be accessible to all,” but issues not tackled include what the basket of care will look like and who will provide the care. He notes that the parameters of the NHI will likely change during its implementation. Becker is upbeat about the state of the South African healthcare system in the international context, and supports a collaborative approach to tackling the future of healthcare. He says: “I believe that the private healthcare system in South 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.”

medical aid options:

• SelfNET Essential: an entry-level product is the

most affordable as it covers a narrow band of benefits. • SelfNET: one level up from the Essential option with more benefits and medical cover. • 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.

www.selfmed.co.za

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INTERVIEW

Poised for growth Western Cape Business spoke to Wesgro CEO Tim Harris about new development in the region and highlights of the past year.

What noteworthy developments have taken place in the region over the past year?

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 2018

A big event was the launch of the Cape Investor Centre in St George’s Mall, Cape Town, which was developed in conjunction with Invest SA, the dti’s new investment initiative. Invest SA is setting up One Stop Shops for investors around the country. The Gauteng One Stop Shop was launched in 2017, followed by the Western Cape and then KwaZulu-Natal. The One Stop Shop is a collaboration between the dti, the Western Cape Department of Economic Development and Tourism, and Wesgro as the operating partner. We have 14 government entities represented in one space, including SARS, the Department of Labour and the Department of Home Affairs, all with one thing in common: they’re investor-facing and the theory is that by co-locating them we can speed up the response time and processing time for investors, thereby improving the experience for major investors in the Western Cape. What are the region’s investment highlights over the past year?

The major investment announced in the past year is by Czech textile manufacturer Pegas Nonwovens. It already has a presence in Africa, in Egypt, and was looking for a Sub-Saharan site. We were pleased to get the decision to build the facility in Atlantis – it’s considerably over a billion-rand investment. The company makes nonwoven textiles primarily for the personal hygiene products market, with customers such as Kimberly-Clark and Procter & Gamble, for use in products like sanitary goods and nappies. It’s a great endorsement for our positioning of Cape Town as the gateway to access the Sub-Saharan African market. The company is making an investment here because they see huge growth in the consumer base in Africa. What has the response been to the Atlantis Special Economic Zone?

The level of interest we’re seeing in the SEZ shows how important tax incentives are in this space, particularly because the original idea for Atlantis was that it would focus on renewable energy. There is already some exciting manufacturing taking place in that sector, but as the policy environment has become less attractive, the investment

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INTERVIEW momentum hasn’t stopped because we’re going erential trade access into the UK. London is increaswell beyond renewables now and it will be desig- ingly driven by technology and fintech in particular, nated as a clean technology site, which means that and that’s an area where we’re strong in Cape Town. a large manufacturing investment could qualify for There’s an increasingly strong management link between London and Cape Town, and a big part of that the incentive if its processes are resource efficient. mission was starting to put in place the relationships Is Africa a key focus area for Wesgro? we need to grow that bridge. This includes the qualYes, we adopted a new mandate two years ago to ity of flight connectivity – having more competition go beyond trade into Africa, and we offer a service on that route will help lower prices and improve the called outward foreign direct investment, where air link between Cape Town and London. we assist companies to grow their footprint on the London is also a good place to raise funding continent. We undertook some very successful mis- for your business, so we have companies that are sions into Africa in 2017, including trips to Ethiopia, headquartered in London but that run much bigger Ghana and Kenya. We have found that companies offices in Cape Town, because this is a great place are signing export contracts but are also increasingly to make that money go further. This includes comexpanding their footprint via outward investment panies in the technology space, particularly fintech, media and BPO who perhaps a few years ago would into Africa. look at running a call centre out of Cape Town, but What steps have been taken to now are looking to do much more. strengthen ties with the UK, post Brexit? This creates jobs here in the Western Cape, but In 2017, we led a mission to respond to the devel- it goes way beyond the traditional outsourcing opments around Brexit, with companies that are model. So while we have 30 000 international call particularly exposed to the UK market. This is one of centre seats in Cape Town, outsourcing today goes the biggest buyers of our wine and fresh produce. much further. We took some of these major exporters, to look at Companies can put operational, marketing and developments as the UK goes through this difficult production people here, working at a fraction of the delinking. Particularly for the agriculture industry, price of London salaries, but who are as technically negotiating with the UK alone is potentially better competent at the skills you can get in London, with because it removes the interference of, for example, the same time zone and a good flight connection French and Spanish groups and wine producers. So which makes it practical to run a Cape Town/London we see the potential to eventually have more pref- tech business.

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WESTERN CAPE BUSINESS 2018


PROFILE

We are the Official Tourism, Trade and Investment Promotion Agency for Cape Town and the Western Cape. The Cape Town & Western Cape Convention Bureau The Bureau’s function is to promote the Cape as the premier place for meetings, incentives, conferences, events, exhibitions and trade fairs.

The Cape is a region of unlimited potential. And this translates into unlimited opportunity. Whether you’re interested in unique travel experiences, investment, shooting a film or exporting to Africa and the rest of the world, Cape Town and the Western Cape has something for you. Let us help you uncover these opportunities.

Film and Media Promotion Unit The Western Cape is a sought-after film destination. Major international and local productions are drawn by the wide range of locations, exemplary services and studios. We assist with production in the province, including regulation guidance and finding coproduction parties.

Our key units Investment Promotion Unit This is the first port of call for investors wishing to establish and grow their business in the Western Cape. Our diverse team of professionals are ready to assist local and foreign businesses in unpacking the landscape and navigating a multitude of key sectors.

Special Projects Cape Town Air Access Cape Town Air Access is a partnership between the Western Cape Government, the City of Cape Town, Airports Company South Africa, South African Tourism, Cape Town Tourism and Wesgro.

Agribusiness Investment Unit The Agribusiness Investment Unit is managed as a project on behalf of the Department of Agriculture. The unit locates new direct investments and supports existing investments and their expansions.

Cape Health Technology Park The Cape Health Technology Park (CHTP) project is a partnership between the national Department of Science & Technology, Western Cape Government, City of Cape Town and Wesgro, and entails the investigation of the establishment of a health-innovation focused technology park.

Trade Promotion Unit Our Trade Promotion Unit offers exporter support, including company registration, customs procedures, registration and process, and access to incentives. International trading protocols like Incoterms are explained and experienced consultants provide their services without costs. Marketing and Communication Unit This unit is responsible for corporate events, marketing and media relations.

CONTACT INFO Physical address: 60 St Georges Mall, SA Reserve Bank Building, 18th Floor, Cape Town, South Africa, 8001 Tel: +27 21 487 8600 General enquiries: info@wesgro.co.za Website: www.wesgro.co.za

Tourism Unit The Tourism Unit promotes the City of Cape Town and the five regions of the Western Cape, the Cape Overberg, Garden Route & Klein Karoo, Cape Winelands, Cape Karoo and Cape West Coast, to domestic and international visitors. WESTERN CAPE BUSINESS 2018

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Cape Town and the Western Cape. If you’re not inspired, you’re not here. We are a region of unlimited potential. And this translates into unlimited opportunity. Whether you’re interested in travel, investment, film or export, Cape Town and the Western Cape has something for you. Let Wesgro, the official tourism, trade and investment promotion agency for Cape Town and the Western Cape, help you uncover these opportunities.

Wesgro

@wesgro

Wesgro

www.wesgro.co.za | info@wesgro.co.za | +27 (0) 21 487 8600 an inspiring place to do business


INTERVIEW

Breaking records and geared for expansion The general manager of Cape Town International Airport, Deon Cloete, explains how the airport was able to handle 10-million arrivals in 2016. Why did you win Africa’s Leading Airport at the 2017 World Travel Awards Africa?

Deon Cloete, GM

We have great people. And it’s not just us. We have just over 550 people but at a campus level, we have about 8 000 employees representing all the streams such as merchants and service providers. Is there a committee that oversees the airport? We try to do it at association level. Thirty organisations meet in the security structure, the Joint Planning Committee. The airlines have an executive meeting representing individual airlines. We recently adopted a new operating model with key account managers for each group that makes a material contribution at airport level, SARS, Customs, retailers, etc. Historically all our efforts were about making ACSA successful directly, but we recognise that the value chain is much broader. We want those entities to be, and remain successful. What is the model of Air Access?

BIOGRAPHY Deon holds a Bachelor’s Degree in Commerce and a Master’s Degree in Business Leadership from the University of South Africa. He has 30 years experience in the aviation industry and has served at all nine ACSA airports. In 2000 he was seconded to South African Airways as General Manager: Support Services. Deon served on the Boards of Wesgro, the Western Cape Economic Development Agency, and now he serves on the NSRI and CTICC boards. WESTERN CAPE BUSINESS 2018

Prior to 2015 we had an informal arrangement but then we put the funding in place and now big corporates are involved. Currently the model is they make a financial contribution and the steering committee decides how best to use it. It might be some reciprocal arrangement with an airline in London. The steering committee is quite small: the city, the province, ACSA, Cape Town Tourism, SA Tourism and Wesgro as the managing agent. Is Air Access the only such organisation in SA? It’s the only structure we are aware of. We are a national competency, the province and city occupy the other tiers and it’s the first time all three tiers are working together. When you bring in the local corporates and they start participating, then you create a sustainable model. There are signs of it happening elsewhere. Can you cope with more than 10-million passengers? After the most recent upgrade we were told, congratulations, you now have 14-million passenger capacity, but that is academic because it depends where you grow, where are the loads. Overall, we are confident that we still have capacity. We have 30 flights per hour and we do no

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INTERVIEW more. That is a practical reality and it speaks to the constraints that we have. And future plans?

We have launched a five-year development plan. We are committed to a R5- to R7-billion capital plan which includes runway and terminal infrastructure. The Air Access programme has delivered results beyond our wildest dreams, so we have to start reviewing the investment programme. When do you start building? We are going through all of the regulatory approvals. The only one still standing is the runway EIA, which is in the final stages of an appeal. There was one appeal relating to noise. We don’t need a longer runway but we need to realign it to maximise conditions for take-off and landing. The runway will move 220 metres to the east, and rotate 11.5 degrees. That way we get the optimum utilisation and we avoid the Durbanville hills completely. When do anticipate the building to begin?

In October 2018. If we get all our approvals then construction could start on the R3.8-billion runway. What other benefits will the new runway bring to the airport?

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When we design the runway we can accommodate aircrafts of any design. When we build our aprons, we mark them for any aircraft. Terminals have a central search point so we can join them together depending on the loads – efficiency is a big part of the game. We put a big focus on our time performance. We just touch 90% in terms of arriving and departing on time. There is a rule of thumb that every saving of 4% in on-time performance, saves the airlines an aircraft, so that’s quite significant.

WE HAVE LAUNCHED A FIVEYEAR DEVELOPMENT PLAN. WE ARE COMMITTED TO A R5- TO R7-BILLION CAPITAL PLAN WHICH INCLUDES RUNWAY AND TERMINAL INFRASTRUCTURE.

WESTERN CAPE BUSINESS 2018


FOCUS

Newlands Cricket Ground is open for business With the revamp of our world-class cricket stadium, we are now able to offer a comprehensive, sought-after yearround venue for business conferences and a popular hospitality hub. In short, Newlands is open for business.

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he revamp of the PPC Newlands cricket stadium makes the venue a multi-purpose destination of choice for business conferences and hospitality experiences. It is also a haven for spectators who want to use suites at an affordable rate to entertain business clients. PPC Newlands has made a quantum leap in becoming globally competitive with other business- and hospitalityfriendly cricket venues internationally. Several venues at Newlands offer high-quality business conference venues and are easily accessible. They are expertly equipped and have the catering facilities to appeal to companies for one-day or multi-day conferences. The revamped President’s Suite features a new bar and a new kitchen and a bird’s eye view of the ground. Instead of seating just 92, as was previously the case, the Suite has now been transformed into one of the grandest and biggest venues of its kind in South Africa. It now seats 214 guests. The facelift the Suite received was geared at making this venue an attractive option as a high-class conference venue which can be rented out at an attractive price-offering. The overhaul of the kitchen in the media centre has made this venue another option to extend Newlands’ reach as a rich business conference option. We boast almost 100 suites at Newlands Cricket Ground, available at a well-priced rate to members of the cricket community who want to utilise that in-season. The revamp of all six sets of public toilets at the stadium was performed at a cost of R2.6-million and the plumbing was upgraded with our water crisis top of mind. The ground also accommodates and funds the Newlands Cricket High School, a model of holistic apprenticeship of young cricketers, learners and leaders. The secure, safe environment and abundant availability of inside, secure parking at PPC Newlands will add to the stadium’s lure as a business and corporate function destination. As a creative hub, Newlands has the famous backdrop of Table Mountain and Devil’s Peak and is soaked in 128 years of cricket history. While engaged in a conference, you can break away for a stadium tour and even have a former or current star of Newlands cricket address your business executives. WESTERN CAPE BUSINESS 2018

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Nabeal Dien, chief executive officer, Western Province Cricket Association

In the build-up to the Rugby Championship Test between the Springboks and the All Blacks in October 2017, the President’s Suite hosted a hospitality experience that received excellent support. The former national captain, John Smit, delivered the keynote address. We have successfully hosted major on-field, non-cricket events such as church gatherings and music festivals, and would like to encourage events companies to contact us in this regard. Newlands plans to extend these type of social events to the off-season in greater numbers. The venue is set for the next phase of its redevelopment in March 2018 which will strengthen its multi-purpose appeal – complete with a café, museum and business offices.


FOCUS President’s Suite Exuding elegance and history, the President’s Suite could tell the most incredible stories if it could talk. The venue has been used to host world-famous guests, from former South African President Nelson Mandela to Nobel Peace Prize laureate Desmond Tutu. You couldn’t make a better venue choice for your next special event. This venue is ideal for business conferencing and functions for 200 people.

Media Centre This is where all the off-the-field action happens, as those who know the game of cricket inside and out comment on the on-the-field action. Close your eyes, and you can almost hear echoes of commentary from some of “the greats” this venue has hosted, from Richie Benaud to Charles Fortune. Channel this rich atmosphere into your next event. The venue can hold 100-120 people.

Century Club This magnificent light-filled prime-viewing suite overlooks the picturesque Newlands Cricket Ground with Table Mountain as your backdrop. Located in the President’s Pavilion, the Century Club is a superb suite that can accommodate groups of between 40-50 people.

South Club A place where grace, splendour and spectacular views unite to create a most memorable occasion. Allow your 100-150 guests to relax as they take-in the views of one of the world’s most famous cricket stadiums and iconic Table Mountain.

Photographs: Matthew Bow

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WESTERN CAPE BUSINESS 2018


THE PRESIDENT’S SUITE AT NEWLANDS CRICKET GROUND

WESTERN CAPE BUSINESS 2018

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CONTACT INFO For more information on venue and suite hire at PPC Newlands, contact: David Brooke, Brand & Sponsorship Manager, Western Province Cricket Association Tel: 021 657 2041 | Cell: 082 821 8072 Email: BrookeD@cricket.co.za Website: www.wpca.org.za

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SPECIAL FEATURE

Record tourist numbers and glittering new attractions Cape Town International Airport hosted 10-million arrivals and the Zeitz Museum promises to attract even more visitors.

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remarkable growth in the number of aeroplane seats available on direct flights to Cape Town has contributed to record 10-million arrivals passing through the gates of Cape Town International Airport in 2016, a trend that is likely to continue for the foreseeable future. A programme called Cape Town Air Access has been focussed on delivering new routes to the Cape, and on expanding existing routes. Direct flights to Cape Town obviously benefit Cape Town and its immediate surrounds, but also have an impact on the province as a whole. More visitors can now more quickly start their journey up the Garden Route, for example, rather than having to fly via Johannesburg. The next big thing is to secure a direct flight from New York. Cape Town Air Access is a partnership between Wesgro, the City of Cape Town, the Western Cape WESTERN CAPE BUSINESS 2018

Government, Airports Company South Africa, Cape Town Tourism and now South African Tourism, and is the focal point for international air route development in the Western Cape. The announcement in July 2017 of a new Austrian Airway’s direct route to Cape Town was the partnership’s 10th such deal in less than two years. The Boeing 777 flights will start in October 2018. The top international destinations from which travellers fly into Cape Town International Airport are the United Kingdom, Germany and the US but a number of new African routes have been added or expanded. They include: • a new direct flight to Victoria Falls in Zimbabwe (Kenya Airways) • expansion of the existing service to Luanda, Angola to a daily flight (TAAG Angola Airlines) • the Addis Ababa to Cape Town route increased to 10 flights per week (Ethiopian Airlines).

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SPECIAL FEATURE Air Access success 2014-2016: • • • •

PHOTO COURTESY OF CAPE TOWN INTERNATIONAL AIRPORT

• • •

10 new routes 11 route expansions 700 000 new inbound seats C TIA close to two-million  international passengers in 2016 C TIA expects total of  2.5-million in 2017 first half of 2017 international traffic at CTIA grew 27% compared to same period in 2016. (Wesgro).

In 2016, tourism to the Western Cape supported 319 227 jobs and contributed R38.8-billion to the regional economy. The 2017 Domestic Tourism Survey (StatsSA) gave these statistics related to the Western Cape: •  M ore than 1.1-million overnight leisure trips • 166 000 overnight business trips • 4.1-million paid bed nights •  241 000 tourists stayed in hotels 161 000 tourists stayed in guesthouses/guest farms 157 000 tourists stayed in B&Bs 336 000 tourists stayed in self-catering establishments.

Day trips and overnight trips were for holidays (most stated reason) and visiting family and friends (number two reason) and it was found that domestic tourism was strong. With the long-term drought showing no signs of abating in late 2017, several measures are being taken by the hospitality industry to ensure that tourism is not affected, and that tourists “act like locals” when it comes to saving water. George Airport had a total of about 720 000 passengers in 2016. Airlink, SA Express and Kulula are the airlines that fly into George. It serves as a tourism hub for the Southern Cape region, including destinations such

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Tim Harris, CEO of Wesgro, on the impact of Air Access We saw a 16% growth in international passenger traffic in 2016, breaking the 10-million passenger mark and establishing us as the third-biggest airport on the continent. In the first half of 2017, international passenger traffic grew by 27%, and since the inception of Air Access in 2015, we have added 10 new routes, 11 route expansions and a total of 700 000 new inbound seats to Cape Town International Airport. As a result of this expansion, the airport has a multi-billion-rand expansion project that includes a realigned runway, a new domestic terminal, a new international terminal and a luggage transit facility, which is exciting in terms of our emergence as a regional aviation hub. More and more people are seeing Cape Town as the place to launch a trip across Southern Africa. The Air Access project has been hugely successful as a result of the collaboration between the different spheres of government and the private sector, including the City of Cape Town, the Provincial Government and the National Government represented by ACSA, with South African Tourism joining us in August 2017. Business has also contributed with support from Investec, Naspers, Leeu Collection and Steinhoff.

From left to right: Tim Harris, Otto Stehlik, Jo-Anne Strauss, Dr André Schulz and Minister Alan Winde.

WESTERN CAPE BUSINESS 2018


SPECIAL FEATURE as Knysna, Oudtshoorn and Plettenberg Bay. CemAir now 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 Credit: Wesgro 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 (Mosselbay), 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.

art lovers as well. The conversion of the old grain silos which created 6 000m² of gallery space was paid for by the owners of the Waterfront, Growthpoint Properties and the Public Investment Corporation. The Waterfront has two new hotels: Radisson Red and the Silo Hotel attached to the Zeitz Museum. A significant move in the South African hotel sector is the decision by Marriott International to develop Marriott branded hotels in Johannesburg and Cape Town. The Port of Cape Town has launched its dedicated cruise-ship terminal, and the area between the terminal and the Cape Town International Convention Centre is being developed. The precinct, called the Yacht Club, includes a hotel, residential and commercial complex owned by the Amdec Group, and will be linked to the Waterfront by the extension of the existing canal. Elsewhere on the Foreshore, 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

New developments The opening of the R500-million Zeitz Museum of Contemporary Art in the Victoria & Alfred Waterfront in Cape Town made a big impact in 2017. With a footfall of 24-million visitors going through the Waterfront every year, the Zeitz is well located to attract good crowds. It is expected to attract global WESTERN CAPE BUSINESS 2018

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The Radisson Blu Hotel & Residence, Cape Town is located in the central business district of the city, near local attractions and with easy access to public transport. It is the ideal accommodation site for city dwellers, business travellers and those who enjoy a short walking distance to all major sites of interest, trendy entertainment and nightlife spots in the city centre. There are 214 rooms with unique views of either the mountain, harbour, city or sea. The rooms are equipped with a telephone, free Wi-Fi, smart TV, safe, mini bar (business class), hairdryer and bathroom with rain and hand showers. Business Class rooms have exclusive access to the unique Business Class Lounge.

RADISSON BLU HOTEL & RESIDENCE, CAPE TOWN 22 Riebeek Street, Cape Town, South , Africa Tel: +27 (0)21 467 4000 info.capetown.residence@radissonblu.com radissonblu.com/en/hotel-capetown-residence


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

African Association for the Conference Industry. The Bureau promotes the Cape as a venue and assists with bids, planning support and on-site services. Over the past six years, the estimated economic impact of the conference bids secured by the Bureau exceeds R1.5-billion. In the first quarter of 2017/18 a further 14 bids were secured, with a delegate attendance of 57 000 and an estimated economic impact of R120.2million. The timing of the majority of the events will help the province get through the quieter period (or “shoulder season”) of May to October. 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 12 000 festival-goers.

Winelands The main attraction of the Winelands speaks for itself, but having an option to sample wine without having to drive anywhere afterwards gives the famous wine region added appeal. In 2017, City Sightseeing launched the Cape Explorer Winelands tour, to complement their existing Cape Town and Johannesburg “red bus” routes. The tour will take in Stellenbosch and Franschhoek and tourists will be encouraged to hop on and off, to sample the local delights. Wine tourism contributes indirectly more than R4.5-billion to the South African tourism sector (South African Wine Industry Information and Systems, SAWIS). According to Wine Tourism South Africa, a website and publishing concern that provides information about the wine industry, 43% of visitors to South Africa visit the Cape Winelands.

MICE The meetings, incentives, conference and exhibition sector (MICE) has become increasingly important to the Western Cape economy. Cape Town was ranked by the International Congress and Convention Association (ICCA) as the number one city in Africa for business tourism events in 2016. This was the fourth year in a row the award was won by the city. A total of 62 meetings took place in Cape Town, mainly in the medical sciences, education and technology sectors. A further 12 international association meetings took place in Stellenbosch. The Cape Town and the Western Cape Convention Bureau, a Wesgro unit, was itself awarded the accolade of Best Convention Bureau by the Southern WESTERN CAPE BUSINESS 2018

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Cape Town International Airport Continuously growing to enhance our future As the gateway to an attractive destination such as Cape Town, Cape Town International Airport has an important role to play in the region. We have seen strong growth on both the domestic and international front. With the 10-million passenger mark being surpassed in 2016, the airport’s growth trajectory remains strong and all indications are that 2017 will also show good growth. Although the city and region has always had to deal with seasonality, the gap between the low and high season is closing. Initiatives such as Air Access, which is a Wesgro-led collaboration between Cape Town International Airport (CTIA), the three tiers of government, tourism bodies and the private sector, has been key to the growth success. Since the Air Access initiative started some two years ago there have been 10 new routes and 11 route expansions, adding some 750 000 additional one-way seats in and out of the city. Equally, the pipeline remains strong with some four new routes and three expanded routes under discussion for 2018. This collaborative approach that is being adopted across

various industries, is what makes Cape Town such an award-winning city. Airports are catalysts for socio-economic growth. Cape Town International Airport has organically been growing into an Aerotropolis – a concept which sees an airport at the core of extensive economic activity. Together with our regional partners we are actively driving this opportunity to see Cape Town and the Western Cape continue to grow and to leverage off the advantages that comes from a well-run airport. As a business, we have never been more aware of our responsibility to make a meaningful socio-economic contribution to the lives of the people of Cape Town. We take the role of managing airports very seriously, but we are also committed to making a positive and lasting impact on the lives of our neighbours. And we see the airport’s growth as the catalyst to doing just that. As a growing airport it is our responsibility to ensure that our surrounding communities grow with us. We are excited about what the future holds for the airport and the City of Cape Town.


INTERVIEW

World first for Maritz Electrical St George’s Park lighting quality is unique. What sort of work did you do in the beginning? When we started, we were two companies helping each other. Cyprian Rosslind and I had a loose partnership. I did the marketing, he did the execution. We did some basic electrical contracting. Some of the first work we did on contract, we still have that relationship going 17 years later. It was for Technical Services of the City of Cape Town. We did the electrical side of water and sanitation.

Kurt Maritz

So you found a niche? We actively started looking for things that other electrical companies either can’t do, don’t want to do or find really hard to do. The work for the city was very difficult, but we had those skills. It was complex work, which very few people specialised in. Certainly, there were no black companies doing that sort of work. And beyond the work for the city?

BIOGRAPHY Kurt Maritz holds a National Diploma in Accountancy and Computer Practise, but is more accustomed to developing businesses, as his track record proves. His first job was with First National Bank. While working in sales, Kurt met an electrical supplier for whom he went to work. His contracting section grew, and he decided to go on his own and started Maritz Electrical in 2000. Through his leadership skills and visionary outlook he now employs in excess of 150 staff. The company has benefited small businesses, grown skills and given lifestyle improvements to staff, their families and communities. WESTERN CAPE BUSINESS 2018

We got more and more work and in 2004 we registered the CC. We continued operating two businesses and that ran on until about 10 years ago, when we very amicably parted ways. How did the stadium work come about? We asked, “What else is nobody else doing?” The answer was stadium and sports field lighting and maintenance. I had the privilege of working on the old Green Point Stadium. Sports field lighting is now the most dynamic part of the business. So the 2010 Soccer World Cup was good for you? Interestingly, Maritz did not do one of the FIFA stadiums! But it was still one of our busiest periods ever because FIFA created a Legacy Fund to build hundreds of community sports fields, and that’s where we got involved. Did that make up for not working on the big stadiums? It was very disappointing, but what happened from there is that we formed our best relationship by linking up with the company that has changed our business, Musco Lighting. How did that relationship begin? Just before the World Cup I was approached by their Africa MD, Derek Field. He introduced himself, but I was so busy I threw him out of the office,

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INTERVIEW something he reminds me about every time we meet! A year later we met again at an installation of lights at a school in Bellville. After a visit to Musco’s Durban office I became convinced. We won that project based on the Musco product. That was our first collaboration in what has become a massive relationship. Why Musco?

travelling at fast speed, and you need the most light the furthest away from the light source. At this moment, St George’s is the only LED-lit, ICC-compliant stadium with theatrics in the world. Was this a tough assignment?

This was the hardest project of all of them. The pylons on the Duck Pond Pavilion sit 20m up on the building.

Musco has changed the way we do sports field lighting. We are now seen as the leaders in the field because of the merits of the product. Other compa- What are new elements in this project? nies will sell a globe or a specific part but Musco sells Because LED is so versatile, we pitched the idea of the solution. The entire sports lighting installation “theatrics”. The client looked at it at a baseball match comes in a container: the concrete, poles, wiring, in the US, with the lights being switched on and off everything. It changes the way you install, from a 10- instantaneously, no warming up, chasing, flashing, week process, to starting on Monday and finishing individual lights, they were blown away. on Friday. We didn’t think it was possible. What are some other benefits? And the lighting itself? Imagine a big singer, you don’t have to bring your Musco excels at controlling spill and glare. Also, own lights, you can tie your music into our lights. Musco says we own the solution, if there is a prob- Light shows before and after the match can help lem, we will cover it. Typically, you get a 10-year stadium safety, people will come in earlier and buy warranty. You can throw your maintenance budget food and not rush the exits at the end. LED technolaway. Musco also guarantees quality of light over a ogy also reduces consumption significantly. 10-year period. What is in the future? Tell us about St George’s Park. We have just done a big stadium project, the Kaiser Cricket South Africa recognised that they needed to Sebothelo Stadium, for Mangaung Metropolitan upgrade, and St George’s Park was at the top of the Municipality. We continue to do a lot of large area/selist. They wanted to explore the new LED technol- curity lighting and we get many enquiries for Musco. ogy for the new format with a pink ball. Cricket is We are looking to the rest of South Africa and we the hardest sport to light up. You have a small ball want to go into Africa if we can.

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WESTERN CAPE BUSINESS 2018


FOCUS

High-quality exports enter the space age The Exporter of the Year competition, hosted by the Cape Chamber of Commerce and Industry, gives an insight into the breadth and depth of business excellence in the province.

Exporter of the Year winner – Technical Systems (Pty) Ltd.

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nce again the judges of the ECIC Cape Chamber of Commerce Exporter of the Year Competition were bowled over by the quality of the entries. This year 10 of the entries were from companies run by women. That is a record for this competition and it certainly shows that women are making great progress in the commercial and industrial world. Even better news is that seven of the 13 finalists are companies either owned or run by women. The competition has become a window into the business world of the Western Cape and every year there are surprises. One of the surprises this year was an entry from a firm which makes components for small satellites, largely for US companies in the space business. Last WESTERN CAPE BUSINESS 2018

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year a category winner was Geo Data Design, which interrogates satellites and analyses the images from space. Hi-tech industries are the companies of the future and it is reassuring to know that the educational institutions of the Western Cape are producing the scientists who can compete with the best in the world. In spite of all the problems with


FOCUS tertiary education, the quality is still coming through. This is very reassuring and should give us confidence in the future. The challenge is to keep these brilliant people in South Africa and in the Western Cape. This is something we need to think about for we have lost too many South Africans to other countries and to research institutions which know the value of good, creative brains. A previous category winner in this competition, GrahamTek, the firm from the Strand which designs and manufactures some of the best desalination equipment in the world, is a proudly Cape company. The Chamber is proud to be among the first institutions to honour GrahamTek. For about 20 years the firm has been making and selling desalination equipment to many countries (including the US) but, like the prophet of old, it received very little recognition in its own country. All that is changing now and we have learned that major investments are flowing into GrahamTek and it is being seen as a billion-dollar enterprise for the future. We are going to need them in the next few months and for years to come. This year two finalists came from the agricultural sector and the wine industry, a vital part of the Western Cape’s economy. Generally, wine and fruit exporters have done well in the competition. Agriculture is a labourintensive industry and we have been pleased to see an important trend in the industry to get workers more deeply involved and

Design company Research Unit won two awards: the Nedbank award for transformation and the Chamber’s award for Design. Photo: Research Unit. even become shareholders. This is how it should be for all involved, from the vineyard workers to the winemakers and the marketers, all of whom play an essential role in producing the product. Schemes which encourage the sharing of success point the way to a better future and set an example for other industries. Beauty and health products featured strongly in the competition and design is another important element, as it should be in the Design Capital of the World. And then there are the finalists who come from left field. Who would have thought that remanufacturing drums and making new barrels would become an export industry? One of the finalists takes shipping containers and turns them into new products, ranging from offices to bedrooms and other accommodation. This is one of the things that is so exciting about the Exporter competition. The enterprise and inventiveness of the Cape’s industries! The winner was Technical Systems, a Bellville company which manufactures automated feeding equipment for intensive poultry and pig farms. It was the third time the firm has won the award. It has also won the trophy for the best engineering/manufacturing company for the seventh time in the annual competition, as well as the Design and Innovation awards. In the 27 years of the competition no company has come close to matching this outstanding record . Contact details: Mary Jean Thomas-Johnson Email: mary-jean@capechamber.co.za Tel: +27 21 402 4300

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WESTERN CAPE BUSINESS 2018


PROFILE

Expanding conference facility will ensure growth The CTICC remains Africa’s destination of choice for international conferences. A R3.7-billion contribution to the national economy, more than R215-million in revenue, 416 733 delegates, 482 events – and an unqualified clean audit. Those were the headline items when the annual results of Cape Town International Convention Centre for 2016/17 were presented to the public.

extensive recycling and upcycling initiatives and achieved an 84% diversion of waste from landfill.

CTICC 2, the Cape Town International Convention Centre’s recently completed expansion, was the venue for the release of the CTICC’s annual financial and operational results in October 2017.

Expansion

The centre’s energy consumption was further reduced by 6% (43 300 kWh) on the previous year, peak average usage was reduced by 4.5%. The centre implemented a range of water conservation measures as the drought in the Western Cape deepened.

The CTICC expansion forms part of the City of Cape Town’s ambitious Foreshore Freeway Precinct Project that promises to bring residential and economic opportunities closer together, not only enlivening the Foreshore area but also addressing apartheid-era spatial planning.

For the third consecutive year, the CTICC delivered record-breaking revenues which rose to R215.6-million from R209-million the previous year. The centre reported an operating profit of R57.4-million and delivered an after-tax profit of R43.4-million. Activities sustained 7 824 jobs and the contribution to the Western Cape regional economy (GGP) was R3.1-billion. 

The expansion represents an investment of over R800-million by the CTICC and its two majority shareholders (the City of Cape Town and Western Cape Government), a concrete vote of confidence in the conference sector, the city and the province.

Number one in Africa As new convention centres open across the world, Cape Town and the CTICC remains a destination of choice for international meetings. The CTICC attracted 31 000 visitors to the 36 international conferences in 2016/17. This is the highest number of international conferences held at any convention centre in Africa. International delegates, exhibitors and visitors to conferences at the CTICC generated R1.3 billion in foreign exchange earnings.

CTICC 2 adds six exhibition halls, nine formal meeting suites and rooms and two rooftop terraces to the centre’s inventory and can be used as an extension of CTICC 1 or an exclusive facility. CTICC 2 successfully hosted its first event – the 21st Annual Congress of the SA Council of Shopping Centres in September 2017. The CTICC’s forward book of international events is strong. Together with the Cape Town & Western Cape Convention Bureau, the CTICC won 16 international conference bids in the past financial year alone and has already secured 58 major international events up until 2022.

The CTICC made strides in reducing the environmental impact of meetings and events. It diverted over 502 tons of waste from city landfills through its WESTERN CAPE BUSINESS 2018

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SIZE DOES MATTER

Big.

Spaces

Better.

Options

Best.

Experiences

It’s been said that size doesn’t matter, but when it comes to creating extraordinary experiences for your guests, delegates or attendees, we have to disagree. That’s why we recently expanded the CTICC with the sole aim of giving our clients and guests more…

More space. More flexibility. More award-winning cuisine. More attention to detail. More convenience. More breathtaking views. More parking. More facilities. All of which give you more opportunity to transform your meeting, event, conference or show into a truly extraordinary experience.

To discover the massive positive impact our bigger and better convention centre can have on your brand or business, contact the CTICC today on +27 21 410 5000 or email sales@cticc.co.za


Medical innovation is solving complex problems Heart valves and posture support wheelchairs are among the Cape’s exciting new inventions.

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cheap plastic heart valve, research on radiation treatment of cancer using Gold Nano particles and posture support wheelchairs and positioning devices that allow greater independence and participation of disabled people – these are just some of the inventions and innovations coming out of the Western Cape health research and manufacturing sector. A number of initiatives are supporting this growing sector. The South African Medical Research Council (SAMRC) and PATH, a global non-profit organisation, have teamed up to create the Global Health Innovation Accelerator (GHIA). Based in Cape Town, GHIA aims to support the development of high-impact health innovations such as finding a way to test for anaemia without drawing blood or creating a cheaper and longer-lasting solution to sufferers of epilepsy having to keep expensive kits with them at all times. PATH (Programme for Appropriate Technology in Health) is supported by the Bill & Melinda Gates Foundation. Thinta Diagnostics, which focusses on non-invasive medical diagnostics, is a company that receives funding from PATH. An initiative to establish the Cape Health Technology Park (CHTP) will further promote the WESTERN CAPE BUSINESS 2018

sector. Located between Pinelands and Ndabeni, the CHTP aims to cluster health-tech firms around existing facilities such as the Life Vincent Palotti Hospital and the Biovac Institute in Alexander Road. Biovac, a public-private partnership, imports, exports, packages, tests and distributes vaccines. More than R500-million has been spent on the facility and 25-million doses of vaccine are delivered every year. Biovac has an impressive list of collaborators: the Council for Scientific and Industrial Research, World Health Organization, Sanofi Pasteur of France, bioCSL of Australia, Heber Biotec of Cuba, BioFarma of Indonesia and Pfizer (US).  The first two phases of development of the Health Park have been mapped: • Phase one: a new three-storey high-tech Lab and modern office building. Refurbish Block C of the old Psychiatric Hospital for support services. • Phase two: a single-storey Innovation Centre; incubators focussed on Good Laboratory Practice (GLP) and Good Manufacturing Practice (GMP) and a site for testing the possibility of scaling up a project. The Health Park is a partnership between the City of Cape Town, the National Department of Science and

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SPECIAL FEATURE Technology and Wesgro. This geographic concentration will focus on medical technology. As things stand, the medical industry is quite widely spread around the greater Cape Town area. One of the bestknown companies is Real World Diagnostics, which is in Brackenfell. It makes rapid In Vitro Diagnostics (IVD) test kits for drugs, pregnancy, malaria and HIV. The Real World Development Service does research and development and feasibility studies. The three examples from the introduction to this article are based in: • University of Cape Town and Observatory: A cheap plastic heart valve was developed by the Christiaan Barnard Cardiothoracic Surgery Department of the university and the company making the valves is Strait Access Technologies, with headquarters in Observatory. This extraordinary device will undergo clinical trials in 2018. The valve is inserted through a small incision and travels into position propelled by a balloon. It will assist millions of people with rheumatic heart disease. • Faure, between Blue Downs and Khayelitsha: Research on radiation treatment of cancer using Gold Nano particles is happening at iThemba LABS, a National Research Foundation facility. In 2017, iThemba LABS celebrated three decades of operating the Separated Sector Cyclotron (SSC). The SSC produces accelerator-based radiopharmaceuticals and enables the study of the internal structure of atomic nuclei. • Wynberg: Posture support wheelchairs and positioning devices that allow greater independence and participation of disabled people are made by Shonaquip. In 2016 Shonaquip won the Social Enterprise in the Premier’s Entrepreneurship Recognition Awards (PERA). Together with the Uhambo Foundation, Shonaquip forms a social enterprise that makes equipment that caters for the particular needs of disabled people. Buggies and wheelchairs made to modular design make it much easier to customise the product, adjusting for the needs of the user and the terrain. Established in 1992 by Shona McDonald, Shonaquip won an innovation award at the Design Indaba (2014) for the Madiba2Go Buggy and the ECIC/Cape

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Chamber of Commerce Exporter of the Year competition in 2015. Shonaquip is one of seven companies that are currently members of the Western Cape Medical Devices Cluster, a grouping recognised and funded by the Department of Trade and Industry’s Cluster Development Programme (CDP). The CEO of the Medical Devices Cluster, Allan Howard, says that the key goals of the Cluster in its first phase are to help small businesses get certification, to promote the skills needed in device manufacturing and to settle on a combined approach to advancing the sector. A certification facility at the proposed Health Park would be of great benefit to small companies, allowing them to focus on manufacturing and sales. The Cluster was founded in 2016 with the assistance of several bodies: Wesgro, the Western Cape Department of Economic Development and Tourism, the National Department of Science and Technology and Kaiser Economic Development Partners. The cluster is the first of its kind in the province. The Western Cape’s other two universities also have companies which focus on the medical or biomedical sector. An example is AzarGen Biotechnologies which was founded by a Stellenbosch University graduate. In partnership with NYSE-listed iBio Inc, the company will develop surfactant protein to treat neonatal respiratory disease syndrome. According to Wesgro, 93% of medical device products are currently imported.

WESTERN CAPE BUSINESS 2018


INTERVIEW

Growing a diverse and sustainable economy The CEO of Accelerate Cape Town, Ryan Ravens, outlines ways in which the organisation is encouraging transformation and economic growth. What is Accelerate Cape Town doing to attract and retain black business talent to the Cape?

Ryan Ravens

BIOGRAPHY Ryan Ravens currently holds three degrees including an MBA from the University of Cape Town. He has extensive experience in leadership positions in the public and private sectors. Ryan owned and managed a successful management consultancy before delivering the first draft of the masterplan for the 2010 World Cup. This led to him being asked to join FIFA, after which he was Group Executive (Enterprise Programme Management Office) for the Gauteng Growth and Development Agency. WESTERN CAPE BUSINESS 2018

Cape Town is one of South Africa’s key business hubs; however, young black professionals have not always found the city an easy place to network and meet mentors in their careers. To support our members’ Human Capital programmes, Accelerate Cape Town hosts a number of initiatives such as our Inspiration Sessions and Young Leaders Dinners. These engagements provide a large vibrant forum for young professionals in Cape Town to network, as well as intimate dinners for our sponsor companies where young professionals can debate issues such as transformation and career progression. The aim of the Human Capital programme is to: • Address issues of transformation in Cape Town • Provide a dialogue between business and academia and address issues impacting on graduate placement and work readiness • Provide a cross-sector engagement for HR professionals in Cape Town through workshops  • Provide a networking platform for newly relocated staff of our member companies through our Welcome to Cape Town networking engagement. How can business, government and academia work together?

The relationship between business, government and academia is vital to economies, especially those that require high levels of socioeconomic transformation. At Accelerate Cape Town, we believe that these three stakeholders should collaborate to positively contribute to the socio-economic transformation South Africa so desperately needs. We work to create an ecosystem in which engagement between business, government and the Western Cape’s four universities is synergetic and highly impactful. Accelerate Cape Town’s Business Leadership/Government/Academia Programme aims to: • Stimulate robust discussion on issues such as governance and ethics and also, to hold government accountable on these critical issues • Connect business, government and higher education to find opportunities to collaborate and co-create, generating greater economies of scale

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INTERVIEW •

Tap into the depth of expertise found in universities, ensuring we remain innovative and relevant as a city.

Accelerate Cape Town has recently launched an ESD Programme. How can this programme benefit corporates, as well as the local economy?

How can SMEs be supported? SMEs require support and resources that include access to suitable market opportunities, access to finance for upscaling, access to technical support required for upscaling and most importantly, access to best of-breed mentors.

Is something being done to tackle Cape South Africa greatly needs jobs and economic de- Town’s traffic problem holistically? velopment, but with government coming under Traffic congestion in Cape Town is the highest increasing pressure to reduce its wage bill, and the in South Africa according to TomTom, and with corporate sector similarly pushing for greater ef- Metrorail’s challenges from cable theft and vanficiencies in a recessionary economy, the only re- dalism, commuters can spend almost double their maining hope for job growth is the SME sector. In travel time during peak hours. order to significantly grow SMEs, we need to provide As part of the Transport programme, Accelerate them with access to market opportunities, finance, Cape Town has launched a Transport Project technical support, and mentorship. Office (TPO), a progressive initiative, which aims to Identified as a key economic driver globally, the coordinate corporate leadership and action in reladevelopment of SMEs is probably the most mean- tion to the transport challenges and opportunities ingful way to grow a more diverse and sustainable in the Cape Town city-region. economic landscape for South Africa. Accelerate The aim of the programme and TPO is to: Cape Town’s Enterprise and Supplier Development • Address traffic congestion and find solutions to the problem in an effort to enhance business (ESD) Programme aims to build more sustainable productivity sectors in an effort to encourage greater, socio• Encourage behavioural change among economic transformation. commuters • Foster a spirit of collaboration among corporate The ESD programme aims to: • Identify suitable (risk averse) supply chain Cape Town, encouraging them to consider inopportunities for emerging suppliers novative and alternative transport solutions to • Find suitable suppliers that could be developed ease congestion • Forming part of steering committees in proand upscaled into larger businesses • Support the in-house SME training programmes jects such as the aerotropolis at Cape Town of our member companies. International Airport and the Air Access project.

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WESTERN CAPE BUSINESS 2018


Enabling businesses to grow The International Women’s Entrepreneurial Challenge has come to the Cape.

U

ntil the recent drought, the Western Cape was doing rather better than the country as a whole. Its agricultural exports were increasing, its tourist industry was thriving and the relatively new film industry was producing revenue of R4-billion a year and creating thousands of jobs for both semi- and highly-skilled workers. Unemployment remains a serious problem, but it is pleasing to note that the jobless rate in the Western Cape is the lowest in the country at 21.55% compared to the national average of 27.7%. The figure for Gauteng, the economic heartland of the country, is 29.2%. There are more good numbers on tourism. Airport statistics for this year show that in October, 97 319 people arrived at Cape Town airport on flights from overseas. This is significantly better than the numbers for the high-season months of December and January just two years ago. In fact, since June 2016 overseas arrivals have been up but more than 20% a month and these increases are being maintained. From July to September this year more than Janine Myburgh, President. 20% was added each month on a base that had increased by more than 20% last year. The challenge this year will be to make sure we have enough water only thing that has changed is the tools we use in our businesses. to satisfy the tourists’ needs. The important question is why is the Western Cape performing The machines, the computers rather better than the other provinces? There are probably many rea- and the instant knowledge availsons, but we believe that the most important one is that the official able on the Internet empower us attitude towards business here is one of encouragement by authori- to greater things. Social media, ties who have set out to remove obstacles like red tape and to enable when used responsibly, is a great businesses to grow. There is a long way to go, but the direction is right communication tool, but it is and this builds confidence. no substitute for the person-toOur annual Exporter of the Year Competition produces evidence person meeting and networking of innovation and enterprise of the highest order while our schools among the informed memberand universities, despite many problems, produce a constant flow of ship of the Chamber. Events like our small business high-quality graduates to keep the high-tech and innovative industries expo are growing every year beflourishing. Our 214 years as South Africa’s oldest and (arguably) best chamber cause people need the contact and of commerce have taught us that the old values of good basics, sound the credibility that come with an planning and good business ethics always win out in the end. The organised event. You can post anyWESTERN CAPE BUSINESS 2018

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FOCUS thing you like on the Internet, but you cannot get away with it in an organised exhibition among your peers, competitors and customers. One of the problems today is information overload and we all need filters to bring us to the information we need quickly and efficiently. There is no better way than talking to an expert, the kind you are likely to see at a meeting of one of our portfolio committee meetings. We all need these reality checks because there is so much “fake news and information” out there. And we need to be reminded that one of the dangers of the Internet is that the search engines tend to lead us to the stuff we want to find. A fundamental part of our job and a key aspect of membership of the Chamber is that it puts us in a position to help each other. One of the tasks we have to undertake is to review legislation and how it might affect our businesses. The

pattern today is to call for public comment before a policy or a regulation can be put into place. On the face of it, this is a good thing, but it is also a difficult challenge. The legislation varies from heavy laws which affect property rights to superfluous legislation like the City Council’s over-regulation of outdoor advertising. In this case, one cannot simply leave the issue to the advertising industry because it does not focus on the small matters like those encountered by estate agencies, neighbourhood watches and security companies. The Chamber did protest strongly at some of the unnecessary detail.

International Women’s Entrepreneurial Challenge A great deal of our work is more positive and satisfying. One example is the International Women’s Entrepreneurial Challenge (IWEC) in which the Cape Chamber has accepted responsibility and an organisational role for the country. It is a great competition and it has proved to be a journey of discovery for the Chamber. It has not only shone a light on some remarkable South African women who have had outstanding success in business, but it has also brought us into regular contact with other chambers around the world. This has given us welcome international exposure and, even more important, it has helped these remarkable women form international links and exchange ideas. There is a school of thought that prescribes quotas for women in business and on boards, but we believe IWEC achieves so much more. Support, encouragement, inspiration and praise is always a better way to go than prescription and regulation. Finally, one of the great lessons we have learned over the years is not to expect economic leadership from government. This has nothing to do with politics, but everything to do with the fact that innovation and development come from the private sector. Governments, prodded and prompted, follow, regulate and sometimes clear the way for new industries as in the case of special economic zones. We are on our own. It is our initiatives, our investments and our determination that will make the economy grow. All we ask is the space and freedom to make it happen. 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: info@capechamber.co.za Website: capechamber.co.za

Sid Peimer, Executive Director.

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WESTERN CAPE BUSINESS 2018


PROFILE

WECBOF fosters entrepreneurship in the Western Cape The Western Cape Business Opportunities Forum (WECBOF) celebrates its 23rd year as one of the Western Cape’s longest standing business associations. During its lifespan WECBOF has supported many entrepreneurs in moving from their start-up phase to becoming very successful organisations with many of these still operating, and contributing meaningfully to the economy.

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

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

Access to financial and other business support services The identification of, and assistance with entry into, lucrative markets for entrepreneurs’ products and services.

Contact us today if you wish to sign up as a member. Our member packages are affordable, and are tiered from the more established corporate business to the new start-up. WESTERN CAPE BUSINESS 2018

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WECBOF

makes it happen! T

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

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

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

A powerful voice for business. Where entrepreneurs excel.


ADVERTORIAL

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

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

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

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


ADVERTORIAL

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

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

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


ADVERTORIAL

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

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

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

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


ADVERTORIAL

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

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

Fourie’s team operates from regional offices in Breda Street in Paarl, as well as from representative offices in Vredendal, Vredenburg and Malmesbury. He says the team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. His team is also supported by skilled agricultural specialists, who provide specialised advisory services to clients. Fourie has been with Nedbank for 20 years and has worked in a number of roles, including strategic sales, structured lending and credit.

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


ADVERTORIAL

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

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

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

‘We look forward to continuing our relationships with our valued existing clients, and to offering our value proposition to new clients as well. At the core of our offering in Business Banking is a relationship-based model, with a business manager dedicated to your business as your key entry point to the bank.’ To take your business to the next level or to obtain more information about Nedbank’s specialised service offering call +27 (0)21 412 3000, send an email to KarenSeb@nedbank.co.za or visit www.nedbank.co.za.


ADVERTORIAL

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

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

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

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

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

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


OLD MUTUAL ENABLING POSITIVE FUTURES IN THE WESTERN CAPE

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

MEET SAVARION ARENDSE Chairperson, Provincial Management Board Western Cape

“Amicus certus in re incerta”, or loosely translated as a “certain friend in uncertain times” As the Western Cape PMB Chairperson I undertake to: • Ensure we collaborate at all levels with our stakeholders. • Be a responsible business partner. • Put the client at the heart of our business. • Embrace the strength of diversity of the board members to deliver on our objectives and deliverables for all the people of the Western Cape. GET IN TOUCH: email WesternCapePMB@oldmutual.com

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OUR BEST ADVICE TO YOU IS: ADVICE MATTERS

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

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

NEED DIRECT CAR & HOME INSURANCE?

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

NEED FUNERAL COVER?

NEED HELP WITH RETIREMENT AND RISK COVER OPTIONS FOR YOUR EMPLOYEES? Old Mutual Corporate provides industry-leading retirement fund solutions, pre- and post-retirement investments, group death, disability, critical illness and funeral cover as well as financial education and consulting services to a broad range of public and private businesses and institutions, from small businesses to large corporates. This can also be accessed via Old Mutual SuperFund, which provides a comprehensive employee benefit solution that is flexible enough to meet the needs of all types of businesses and their employees.

NEED A ONE-STOP-SHOP INTEGRATED FINANCIAL SERVICE? The Old Mutual Mass Foundation Cluster (MFC) has an integrated approach to financial services and offers customers solutions to meet their needs. This spans a transactional account called the Old Mutual Money Account, savings products, life and disability cover, as well as funeral cover, debt management solutions and

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

With Old Mutual’s range of Funeral Plans (Care, Standard and Comprehensive+) customers can cover themselves, their spouse/partner, children, parents, parents-in-law and extended family members. We also have a plan for single parents to cover themselves and their dependent children without having to pay for a spouse they do not have. You can choose the amount of cover you need, who you’d like to cover and whether you’d like to add additional benefits. You can get funeral cover for up to R70 000.

NEED HELP WITH SAVING FOR BOTH LONG AND SHORT TERM? To make it easy for customers to save from as little as R170 a month, Old Mutual offers the innovative 2-IN-ONE SAVINGS PLANS. This product with its two pockets allows customers to save for their long-term goals, like their children’s tertiary education, while they have access to their funds in emergencies.


NEED HELP WITH HOLISTIC FINANCIAL PLANNING AND SAVING? Old Mutual Personal Finance specialises in providing holistic financial planning - Advice That Matters™. We offer a wide range of wealth creation and protection products. For example: The Old Mutual Invest Tax-Free Savings Plan, which offers a low, entry-level premium and refunds you 50% of admin charges when you reach your maximum premium limit in a year.

NEED LIFE AND DISABILITY COVER?

NEED HELP WITH INVESTING? Old Mutual Wealth is a fully integrated, adviceled wealth management business. We have a personalised and integrated approach to grow and preserve your wealth over time. Our specialist capabilities include Private Client Securities, Old Mutual MultiManagers, Fiduciary Services and Offshore Investing. We partner with leading financial planners to provide you with a tailored lifetime wealth plan to help you achieve the best outcome in line with your objectives, goals and aspirations.

Old Mutual Personal Finance marketleading risk protection range offers the most comprehensive illness range with clear claim definitions, including GREENLIGHT.

NEED A FINANCIAL PARTNER THAT MAKES A POSITIVE IMPACT ON SOCIETY?

NEED TO PROTECT YOUR BUSINESS?

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

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

NEED DEBT CONSOLIDATION AND TRANSACTIONAL BANKING? Through Old Mutual Finance you can gain access to: • My Money Plan, which enables you to consolidate your debt, and choose from a range of personal loans at a fixed interest rate. • Money Account, which links a transactional (SWIPE) account and an investment (SAVE) account so you automatically invest a set amount into a unit trust every time you make a purchase with your card. *(In association with Bidvest Bank Ltd)

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

• • • •

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

In 2016 alone the Old Mutual Foundation invested R25 686 172 in various community projects across our nation (actual grant funding payments made during 2016). In the Western Cape the Old Mutual Foundation invested a total of R2 919 984 across its various community empowering portfolios in the region. Our staff are the hearts and hands of Old Mutual in the communities we operate in, and we support our staff volunteers through various programmes. In the Western Cape, 144 organisations have received a total R1 921 824 as a result of staff volunteering efforts.

ombds 7.2017 L10479.10

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDIES Contributing to skills development is a key aspect of reducing youth unemployment and enabling marginalised people to move into the mainstream economy. Through funding received from Old Mutual Foundation, the Grootbos Green Futures Horticulture and Life Skills College near Gansbaai in the Overberg was able to provide educational training to 12 unemployed young adults, giving them the skills and confidence necessary to market themselves and become employable, while at the same time contributing to the conservation and promotion of the Western Cape’s unique biodiversity.

The client managed to buy the business from her father in 2011 for R250k. She managed to turn the business The MASISIZANE FUND focuses on enterprise development and job creation to help alleviate poverty and improve food security in South Africa. This is achieved through encouraging entrepreneurship and capacity development and financing of micro, small and medium enterprises (SMMEs). Preference is given to SMMEs with 51% plus ownership by women, youth or people with disabilities. Masisizane Fund disbursed R147m worth of funds in 2016 through soft loans in the three high-impact sectors and facilitated the creation of 862 jobs against a target of 625 jobs. In the Western Cape, Masisizane disbursed funds of R6 862 268 to one client which created 50 new jobs.

MASISIZANE CASE STUDIES IN THE WESTERN CAPE

into a profitable operation by diversifying the product range and increasing the revenue streams from R2.3m (2011) to R8.4m in 2015. Case Study Fast Facts Masisizane Fund Loan

R3.67m

Number of Jobs

50 Jobs Facilitated

Geographic Location

Peri-Urban

Sector

Supply Chain

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

Lasco Crete (Pty) Ltd Lasco Crete (Pty) Ltd is a 100% female-owned manufacturing company that produces concrete products focusing on walling solutions for various markets. The business operations are based in Philippi Township within the Cape Flats area of Cape Town.

In the Western Cape 13 638 individuals were trained in our Old Mutual On the Money financial education programme and 6 090 were trained in our Fin360 financial education programme. For more information, contact Savarion Arendse at WesternCapePMB@oldmutual.com


Adam Rabie, Executive Head of Enterprise Business, Western Region

Internet of Things

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

Creating a smarter connected world

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

Making it happen

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

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

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

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

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

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

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

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

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

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FOCUS Enterprise Mobility

Enterprise Mobility

Enterprise Mobility is a productivity tool which allows a business to operate more efficiently.

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

Enterprise Mobility has five components:

Vodacom Virtual CIO Vodacom Virtual CIO is an IT support service aimed at the Small and Medium Enterprise (SME) segment. This is targeted at those companies that can’t afford a full-time IT technician. The service will initially be limited to the following geographical areas: Greater Johannesburg metropolitan, Greater Pretoria metropolitan, Greater Cape Town metropolitan, Bloemfontein, Durban, East London, Kimberley, Nelspruit, Polokwane and Port Elizabeth. The service offers proactive and remote monitoring services for both residential and SME customers to prevent IT issues before they occur, and remote telephonic assistance and on-site field support for SME customers at no additional cost.

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

Econz Wireless Timecard Solutions When companies have employees who are always on the move or in the field, it’s difficult to track the time they start, when they finish, whether they are in the right place, and if the job has been completed to the customer’s satisfaction. Econz Wireless allows you to keep track of where and how your employees are spending their time, export your employees’ attendance data directly to payroll systems for easy accounting, track progress of various tasks assigned to your employees and monitor your employees’ driving behaviour. It is available for use on cellphones, smartphones and tablets.

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

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

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WESTERN CAPE BUSINESS 2018


Connect and Communicate

Connect and communicate

Two of the most important

Small and of Medium pillars the Vodacom Enterprise Catalogue

Ready Business offering are Vodacom • CONNECT: A Ready Power to you Business is connected • COMMUNICATE: A Ready Business places communication at the centre The CONNECT component has three main elements: • Internet for your Office • Five kinds of connection are offered, from fibre and wireless, to satellite and digital subscriber. • Internet on the Move • Vodacom Business Data gives you the freedom to be more productive without the worry of out-of-bundle data rates. • Mobile Broadband Data allows you to stay connected with data bundles for your tablet, router or dongle.

Under COMMUNICATE, Vodacom strives to assist in the creation of a Ready Business through: • Three kinds of business plans • Never miss a business call • One Net Express allows a response to every call, whether you’re in the office or on the move. • Vodacom One Net Business is a cloud-based solution seamlessly converging your mobile and fixed telephony services across any device. • VoIP (Talk) provides high-quality voice calls to any fixed and mobile network. • Push to Talk uses a mobile app to provide similar services as a two-way radio. • Roaming and international offers

Network Solutions Vodacom offers four network solutions: • IPConnect Express provides connectivity over high-speed broadband. • IPConnect is a managed access solution that provides high-capacity Ethernet connectivity, over a range of managed access mediums including fibre, microwave and satellite. • Vodacom’s MPLS VPN gives you worldwide coverage and global networking power. • Vodacom Connect’s Dedicated Internet Access delivers you premium dedicated Internet services over uncontended bandwidth over fibre, microwave or satellite. WESTERN CAPE BUSINESS 2018

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

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ONE NET – BUSINESS PRODUCT BROCHURE

PROFILE One Net Business

A Ready Business never misses an opportunity

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

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

Voice, through advanced unified

communications features which includes: Vodacom One Net Business

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

enterprise telephony, hunt groups, auto attendant, conference calling, receptionist, executive/assistant, and more

Presence

If you want to integrate mobile and fixed networks, • Instant Messaging and presence Vodacom One Net Business the right solution. • Videois collaboration Vodacom takes care of• the Contentplatform, sharing through a enabling single platform you to focus on improving productivity with • A range of IP Phones and apps that will the fixed and mobile converged reduced monthly costs. Letenhance us manage your wider One provider: for all fixed and mobile experience requirements. telecommunication needs through our great range Why is One Net Business better Future-proofed, Unified Communications of services including mobile, security, email and than traditional on premise technology in the cloud: Regular new software releases and an easy-to-use selfdocument management.telephony solutions? service portal (One Net Manager) that lets

2. One voicemail for your customers: Your cellphone and landline number become one. Be available using one number on all end devices regardless of whether you’re in the office, at home, abroad or on your cellphone. One single voicemail inbox means you’ll never miss calls from customers again. 3. 4.

you manage your One Net Business services directly.

Content sharing

Voice

Through a single platform

One package: Convergence of mobile and fixed telephony services, single support route, fully converged user experience.

Video collaboration

Vodacom One Net Business combines fixed and moSimplicity: Configurable for each user, easy-to-understand, intuitive, always upgraded to bile telephony services into one cloud-based Unified the latest feature capabilities. Always ready to answer: monitor the call Communications reducing the number of availability of colleagues and direct calls assolution, needed. Cost saving: Free on net closed user group calls (fixed and mobile). predictable and Better collaboration: With diverse missed calls, making costs more collaboration tools, your teams can work together more efficiently than ever keeping your Ready Business better connected.

Instant Messaging

5. Direct calls: to the right department or person across any device. 6. 7.

technology in the cloud: Regular new software releases and an easy-to-use self-service portal that lets you manage your One Net Business services directly. 5. Direct calls: To the right department or person across any device. 6. Always ready to answer: Monitor the call availability of colleagues and direct calls as needed. 7. Better collaboration: With diverse collaboration tools, your teams can work together more efficiently than ever, independent of location, time and end device.

independent of location, time and end device. Whether in video or audio conferences, through desktop sharing, presence information or chat – One Net Business users cooperate simultaneously and in real time.

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

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

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2017/03/09 2:36 PM

A Ready Business capitalises on fixed and mobile convergence across any device Vodacom offers greater agility, productivity and efficiency with less complex solutions: 1. Fixed and mobile convergence: Allows the user to determine how fixed and mobile calls will be answered and managed between devices. 2. One voicemail for your customers: Your cellphone and landline number become one. Be available using one number on all end devices regardless of whether you’re in the office, at home, abroad or on your cellphone. One single voicemail inbox means you’ll never miss calls from customers again. 3. One provider: For all your fixed and mobile requirements. 4. Future-proofed, Unified Communications

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

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Internet for your Office: Vodacom Connect Solutions

Connect Solutions

DSL (Digital Subscriber Line)

Vodacom’s Broadband Connect offers you affordable, high-speed broadband Internet access over a choice of five different access mediums: • Fibre • Satellite • Wireless Lite • DSL • Wireless Premium

Our business-grade DSL has fail-over functionality so the infrastructure is always available. • Low cost of entry • Quick to deploy – provided you have an existing landline

Connect Fibre

Four network solutions

Broadband Connect Fibre is stable, durable and capable of carrying massive data loads at extraordinary speeds. • Fibre is the most scalable connectivity for small business • No risk of cable theft ensures that network is secure and always available • Increased productivity, cost savings and competitive edge • Provides high-speed Internet access over scalable fibre connectivity to the small business

1. IPConnect Express With IPConnect Express, you are confidently connected to Vodacom’s MPLS VPN (Virtual Private Network) and Dedicated Internet Access (DIA Express) over broadband connectivity. 2. IPConnect Dedicated access offerings are better suited to applications requiring quality of service, where you need the performance of your connectivity to be guaranteed, and bolstered by a service level agreement (SLA).

Wireless Premium

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

We provide the wireless infrastructure at your premises, install the broadband router and support the service via a support helpdesk. • Less downtime with no risk of cable theft

Wireless Lite

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

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

Satellite We use the latest technology to optimise the satellite link and to bring you cost efficiencies, especially in unserved and underserved areas. • Vodacom’s satellite successes include extensive deployment in the agricultural sector, rural clinics, schools and police stations WESTERN CAPE BUSINESS 2018

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Cloud and Hosting

Cloud and hosting services

PROFILE

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

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

Cloud and hosted services

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

Benefits for your organisation of using the Vodacom cloud include reducing your capital expenditure, less office space and hardware and energy expenses. In addition, the cloud allows for: • easy scalability and upgrading • licences (only for what you use) • usage-based pricing.

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

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

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

Agriculture 76 Wine and grapes

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Mining 84 Oil and gas

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Energy 90 Fishing 94 Water

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Manufacturing

98

Construction and property

100

Banking and financial services

104

Development finance

110

Education and training

114

Business process outsourcing

120

Information and communications technology

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OVERVIEW

Agriculture Seven of the Cape’s biggest exports are agricultural.

SECTOR INSIGHT Agriculture is attracting foreign investors. • A conference to promote halaal exports has been held.

 T

he long-term drought which was lifted for most South Africans in late 2016 persisted well into 2017 for farmers and residents of the western part of the Western Cape. An official told parliament in October that as many as 50 000 jobs might be lost and production levels of deciduous fruits were expected to be down by 20%. A tomato purée factory in Lutzville closed down for the season for lack of product. Many grain farmers will allow cattle to graze in the fields rather than take in the meagre harvest. Despite these setbacks, the agricultural sector remains a vital component of the provincial economy, not only in its own right (4.2% of regional GDP) but as the provider of the products that are exported as fruit or vegetables or as juice or wine. Nearly 40% of exports from the Western Cape derive from fruit or agri-processing, which makes this a vital sector all along the value chain. Interest in the sector from foreign investors has also been lively. The Agri-business Investment Unit (AIU) within investment agency Wesgro has helped to generate investment into the agricultural sector totalling R1.5-billion in the three years to 2017. The AIU attended nine conferences or sector events in 2017/18 and received a mission from WESTERN CAPE BUSINESS 2018

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Vietnam investigating ostrich meat and nuts. Seven of the 10 biggest export earners are either agricultural products or agri-processed goods. These are citrus, wine, apples and pears, grapes, fruit juice and tobacco. The Breede River Valley is an especially fertile area for fruit. The Western Cape specialises in apples, plums, pears and cherries. Peaches and nectarines can be found in most parts of the province. Raisins are a speciality of the Vredendal area on the West Coast. The Sandveld region on the West Coast is known as South Africa’s Potato Pantry. Citrusdal unsurprisingly does a strong line in citrus and, with nearby Clanwilliam, is also famous for rooibos and buchu. Strawberries do well in the George area. The Stellenbosch and Swellendam districts are also good for berries, and several farmers are branching out into raspberries and blueberries. The


OVERVIEW latter berry is difficult to grow but gets very good returns on the European market as fresh fruit. Swellendam produces 90% of the world’s commercially grown youngberries, a crop of about 600 tons per annum. Wheat is another of the province’s strong sectors: the Western Cape’s 310 000ha planted to wheat represents 64% of South Africa’s crop. Japan is a major destination of the province’s maize production. In canola, the Western Cape is even more dominant, with 99% of the nation’s hectares (StatsSA). The province’s climatic regions vary from Mediterranean around Cape Town and on the coast (where rainfall can be 2 000mm at places) to the drier regions of the inland Karoo districts where annual rainfall figures can be below 150mm. Just over threemillion 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 identified agri-processing as one of the key sectors that can deliver high growth and lots of jobs, especially in rural areas. It could add up to 100 000 jobs and generate R26-billion for the economy under a high-growth scenario. The Western Cape Minister for Economic Opportunities Alan

Winde, whose ministry is responsible for agriculture, lists initiatives that can encourage that scenario: expansion of African imports; increasing the amount of land under irrigation to provide more input for agriprocessing; keeping up the surge in wine sales and investigating the halaal market. With a global market valued at about $2.3-trillion, a step towards preparing the Western Cape to compete in that market was made in 2017 with a small-scale conference on halaal exports. The Western Cape, as part of its Project Khulisa strategy, aims to double overall exports from the region by 2025.

Companies Zeder Investments is the agricultural arm of investment holding company PSG Group. Zeder controls Capespan, which has a turnover of R7.6-billion across three divisions: farms, logistics and fruit. Zeder is also a 39.6% shareholder in Kaap Agri Ltd. Kaap Agri has more than 200 operating points stretching from its headquarters in Malmesbury in the Swartland 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 Africa, including Weet-Bix, Liqui-Fruit, Ceres, Sasko and White Star. Caledon-based Overberg Agri is an unlisted company with a wide range of investments in several sectors, including mining, pet food and industrial fasteners. SSK (Sentraal Suid Ko-operasie) has outlets in the Overberg and in the Southern Cape as far east as George. SSK has increased its reach with the acquisition of Tuinroete Agri. 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.

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Citrus Growers’ Association: www.cga.co.za HORTGRO: www.hortgro.co.za Fresh Produce Exporters’ Forum: www.fpef.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 Western Cape Department of Agriculture: www.elsenburg.com

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OVERVIEW

Grapes and wine Exports are still strong despite the drought.

SECTOR INSIGHT Cape Town wineries have created their own label of origin. • Grape exports to China have been growing at 30%.

S

outh African wine exports in 2016 earned a very healthy R9-billion, nearly 10% up on the previous year’s earnings. This increase notwithstanding, there are several areas where South Africa is looking to increase its exports, not least the BRICS countries, with China being a promising market for both wine and grapes. 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. The Chenin Blanc Association of SA believes that the US is a ripe market for its wines. Financial Mail reported in 2017 that South Africa’s 17 799ha of Chenin plantings is greater than the rest of the world combined, and many of the vines are old, which creates better quality. SA currently exports 11Ml/year into the US, a small fraction of the 920Ml/ WESTERN CAPE BUSINESS 2018

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year that that country imports. In a recent development, wineries in greater Cape Town now have their own regional identity. The likes of Groot and Klein Constantia, Buitenverwacthing, Diermersdal and Cape Point Vineyards will from now on carry the label “Wine of Origin Cape Town”, linking them to one of the best-known city brands in the world. The long-term drought afflicting the Western Cape is having an effect on the grape and wine industry. It has been estimated that a 5% lower vine production rate results in a R175-million loss to a farmer, with the broader value chain losing something like R525-million. 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.


OVERVIEW 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 be 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.

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

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

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PROFILE

The South African Table Grape Industry South Africa: preferred country of origin for the world’s best-tasting grapes. The South African Table Grape Industry (SATI) is the industry association of table grape producers which aims to establish South Africa as the Preferred Country of Origin for the world’s best-tasting grapes. SATI represents growers on key government and industry initiatives aimed at creating more opportunities from ownership, to accessing new markets in a sustainable way. South African table grape growers and exporters are committed to being a reliable supplier of table grapes by delivering a safe, flavour-filled product of the highest quality despite the ongoing drought in the Western Cape. Although certain producers and areas most affected by the drought are likely to be significantly impacted, the effect at a national level is less pronounced. This expectation is ascribed to the climatically diverse industry, increased hectares in production, the continued shift to higher yielding new-generation varieties and the resilience and adaptation of South African table grape farmers.

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

According to Mr Michael Laubscher, Chairman of SATI, “As an industry, we are concerned about the persistent drought in the Western Cape. We realise that South Africa is a water-scarce country, therefore everyone has a responsibility to be water wise.”

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

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

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.

Mission SATI delivers service excellence to create a progressive, equitable and sustainable South African Table Grape Industry. WESTERN CAPE BUSINESS 2018

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FOCUS

Cape Winemakers Guild The annual Nedbank Cape Winemakers Guild Auction shows off the best work of the best winemakers.

E

ight Cape winemakers came together to taste wine from different parts of the world in 1982. They aimed to broaden their horizons, to keep in touch with world trends and to improve the quality of their winemaking. More than three decades later, the Cape Winemakers Guild is a major reason that the region’s wines are world class. The spirit of discovery and critical appreciation that animated the founders of the Guild has paid off. The pioneers were Billy Hofmeyr (the owner of Welgemeend in 1982) and other winemakers Kevin Arnold, Jan Boland Coetzee, Peter Finlayson, Walter Finlayson, Etienne le Riche, Braam van Velden and Achim von Arnim. Winemakers meet once a month to taste a particular type of wine or wines from a selected region of the world. But it’s not just any winemaker who can sit at that table. A winemaker must have a track record of producing premium-quality wines for at least five years before he or she can be nominated. Existing members vote on new membership at the annual general meeting. Membership belongs to

Protégés for 2017. WESTERN CAPE BUSINESS 2018

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the winemaker and not the wine estate, so if a winemaker moves from one property to another, she or he will keep their membership of the Guild. One of the Guild’s respected veterans, Beyers Truter, believes that the best thing about the Guild is “the dissemination of knowledge”. The openness where one can talk about the good and bad things in wines encourages introspection and growth. As the founder of the Pinotage Association, Beyers is clearly a winemaker concerned about improving quality. In so far as


FOCUS the Guild is competitive, Beyers says, “It’s about trying to make the best wine you can, not to be better than whoever; it’s healthy competition.” Beyer’s Pinotages have won international acclaim and he’s been the international Winemaker of the Year, an accolade presented by the International Wine and Spirits Competition (IWSC). In 2017 that accolade went again to a Cape winemaker, Abrie Beeslaar of Kanonkop, the third time he has won the award. Abrie is a member of the Cape Winemakers Guild. Ninety countries participate in the IWSC. Nedbank Cape Winemakers Guild Auction The Nedbank Cape Winemakers Guild Auction has become an important date on the calendar of wine connoisseurs. With the support of Nedbank, who have been a partner of the Guild for more than two decades, the auction gives these premier winemakers a chance to produce truly exceptional and unique wines. The wines are created exclusively for the auction. (Auction buyers might re-sell the wine, but the volumes are small). Beyers says that the selection of wines to be auctioned is “very severe”, as the tasting panel must give wines at least 17 out of 20. He hand-picks barrels for his own premier label (Beyerskloof Diesel Pinotage) but keeps a separate “absolutely unique” category for the auction. The relationship with Nedbank has also seen the creation of the Nedbank Cape Winemakers Guild

The Cape Winemakers Guild Auction. Development Trust. During the year various events are held to raise funds. The Trust supports projects such as the Oenology and Viticulture Protégé Programme, the Billy Hofmeyr bursaries for final-year Elsenburg and Stellenbosch University Oenology and Viticulture students, and support for the non-profit organisation, Wine Training South Africa. Proceeds from the main auction go to the estate selling the wine but the event itself has grown tremendously over the years, with several related events taking place such as sports events, dinners – and other charity auctions. Most of the money for the trust is raised during the year, but in 2017, two charity auctions related to the main auction raised nearly R430 000 in aid of the Cape Winemakers Guild Protégé Programme. Held on the same weekend as the main event, one of the auctions had as the treasure a prize collection: each of the 44 Guild members with wine on the auction put up a 1.5-litre bottle of their auction wine. A silent auction was also held for the trust. Since 2006, 24 protégés have benefitted from the Cape Winemakers Guild Protégé Programme, being mentored by experienced winemakers in active working environments. The goal of the programme is to sustain the health of the South African wine industry by cultivating, nurturing and empowering promising individuals to become winemakers and viticulturists. As of 2017, 14 former protégés are working in the wine sector, either at corporate wine companies, private estates or www.capewinemakersguild.com related concerns.

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OVERVIEW

Mining

Uranium is under the spotlight in the Karoo.

B

eaufort West is the latest focus of attention for new mining in the Western Cape. Whether or not South Africa needs nuclear power is a hotly debated topic, but Tasman RSA (which includes Australian-listed Peninsula Energy and a local group called Lukisa JV) has a business plan for extracting uranium in the Karoo and is submitting environmental reports. Dr Stefan Cramer has come out strongly (at www.karoospace. co.za) against the proposed mining, arguing that the environment will be irrevocably harmed and that funding behind the project comes from Russian “oligarch billionaires”. Sixteen rare earth minerals have been identified north of Vanrhynsdorp, with the most prevalent being cerium, an important component of catalytic converters. The acquisition in 2015 by Steenkampskraal Thorium Limited (STL) of the shares of Rareco has given it the right to the rare earth deposits at the Steenkampskraal monazite mine. STL, which already had the thorium rights, is an associate of Thor Energy in Norway. A mineral sands project on the West Coast near Lutzville and Koekenaap has started sending product to China. Australian miner Mineral Commodities (MRC) says it will spend R5-billion to 2019 in search of zircon, rutile, ilmenite and garnet. Namakwa Sands is a mineral sands operation on the West Coast, owned by Tronox. In 2017, South African resources company Exxaro sold some of its shares but retained enough of a stake for Tronox to keep its BEE certification. The company has a mine and concentration plant at Brand-se-Baai and a mineral separation plant at Koekenaap near Lutzville about 350km from Cape Town. Ilemnite, rutile and zircon are extracted at this site and then taken to the company’s smelter at Saldanha Bay.

ONLINE RESOURCES 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

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SECTOR INSIGHT Ilemnite, rutile and zircon are found on the West Coast. 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 Roode Fontein. Dimension stone occurs around Vanrhynsdorp (which also has some gypsum) and mediumgrain granite is found at Paarl. Limestone for cement, agricultural lime and feed lime is extracted at several sites in the province’s western regions while kaolin is found 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 Riebeeck-West and Piketberg (De Hoek). Slasto and building stone is quarried near Clanwilliam. Consol quarries glass sand near Philippi.


OVERVIEW

Oil and gas New terminals and increased storage capacity have boosted the sector.

SECTOR INSIGHT A new LPG terminal has been opened at Saldanha. • Foreign investors are showing interest.

T

he Western Cape’s status as an oil and gas hub was enhanced in August 2017 with the opening of a new openaccess liquefied petroleum gas (LPG) import and storage terminal at Saldanha Bay. A public-private partnership is

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behind the R1-billion terminal, the largest of its kind in Africa. Investors include Sunrise Energy, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and Royal Bafokeng Holdings. More than 7 000 direct jobs were created in ship and rig repair sector of the oil and gas business in 2015, according to a report done for the Western Cape Provincial Government. Foreign investors are showing a keen interest in the growing sector, which contributed R1.5-billion to the provincial economy. The Oil and Gas Alliance reported in July that it was having regular meetings with interested investors. A new facility is to be added to the oil and gas sector in Cape Town – a 118 000m³ fuel storage unit. The Bergun 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. WESTERN CAPE BUSINESS 2018


OVERVIEW The oil and gas sector has been chosen by the Provincial Government of the Western Cape as one of three sectors that will drive rapid growth and create jobs. The programme to support the important sectors is called Project Khulisa and it entails detailed plans with progress reports going to the Premier on a regular basis. The Saldanha Bay Industrial Development Zone is central to the plan to grow the oil and gas sectors. Large industrial operations already exist at Saldanha and the Port of Saldanha Bay is the portal for the export of South Africa’s iron ore. Considerable planning has gone into positioning the SBIDZ as a hub for a range of maritime repair activities and oil rig maintenance and repair. Saldanha has not been chosen by the national Department of Energy (DoE) to host a gas-topower plant: Richards Bay and Coega (Port Elizabeth) have instead been listed as the sites for 2000MW and 1000MW potential, if private investors for projects at those ports can be found. The Provincial Government of the Western Cape has asked the DoE to reconsider and wants Saldanha to be allocated at least 1000MW 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. Another possible game changer is shale gas. The Council for Geoscience (CGS) is doing an WESTERN CAPE BUSINESS 2018

intensive study of South Africa’s potential shale gas resources. Natural gas lies offshore to the west of South Africa in the Atlantic Ocean (Ibhubesi) and off the southern coast in the Indian Ocean (Bredasdorp Basin). Both fields have great potential: Block 2A of the Ibhubesi gas field north-west of Saldanha is estimated to have reserves of 850-billion cubic feet of gas and the Bredasdorp Basin is said to have reserves of one-trillion cubic feet, but getting to the gas has proved tricky. 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 has 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. 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 onsite markets, and it also supplies to the packaged chemicals, bulk and chemicals markets. The gas-to-liquids plant which PetroSA runs at Mossel Bay on the south coast is one of the country’s key pieces of energy infrastructure. Getting new feedstock for this plant is now an urgent priorty (and something which Project Ikhwezi was supposed to do) and a contract has been signed with a Russian firm to prospect off the coast. 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 of leaving South Africa. A price of R15-billion has been suggested for Chevron’s assets, which include a lubricants business and 850 Caltex petrol stations.

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 South African Oil and Gas Alliance: www.saoga.org.za Transnet Pipelines: www.transnet.net

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Service that delivers the

Difference

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.

www.airproducts.co.za


OVERVIEW

Energy Renewable energy and nuclear power are in the mix.

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he Western Cape hosts the country’s only nuclear power station at Koeberg, north of Cape Town, and it has a pumped water storage plant and three open-cycle gas turbines. In October 2017 a site just north of Koeberg was approved by the National Department of Environmental Affairs as the site for a new plant. The South African Nuclear Energy Corporation (NECSA), the state body that oversees research and development of the sector, welcomed the decision after a variety of places in the Western Cape and Eastern Cape were listed as potential sites for several years. The decision to actually go ahead and build the plant has not yet been taken, but it seems that the South African government is determined that a new plant should be built. There is considerable opposition to this drive, not least because of the expected cost of the project. The energy landscape of the Western Cape is undergoing rapid change. The potential of renewable energy is being realised and there is a strong lobby to build a gas-to-energy plant in the province. One of the Cape’s prime tourism sites has installed a solar-powered microgrid. Robben Island is a perfect example of where a stand-alone power source can be used very effectively. Solar photovoltaic panels will produce about half of the power needs of the island, which include a working harbour and a desalination plant. Lithium-ion batteries will store energy. The system was set up by Sola Future Energy and ABB and paid for by the National Department of Tourism.

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SECTOR INSIGHT The sun is set to power Robben Island.

The City of Cape Town wants to generate 20% of its electricity from renewable resources by 2020. To achieve this goal, the city in 2017 took the National Department of Energy to court in a bid to allow the city to buy electricity directly from independent power producers. The city argues that it has been waiting too long for a response from the department on this issue. There have been long delays in the signing of national power purchase agreements (PPAs) with independent power producers. According to the South African Renewable Energy Council (SAREC), signing the outstanding PPAs will unlock R58-billion in investor value. There were high hopes that the deals would be signed in October 2017, but then a new minister of energy was appointed. Since the start of the national Renewable Energy Independent Power Producer Pro c u re m e n t Pro gr a m m e (REIPPPP) nearly R200-billion has been attracted to the creation of new energy sources in South Africa.


OVERVIEW The West Coast was the site of two of the country’s first experimental wind farms. By the time the fourth bid window of the REIPPPP 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. The key points of the provincial energy plan are: • efficiency in the system • move faster on renewable energy • move to gas.

Western Cape Minister of Economic Opportunities Alan Winde notes that the Department of Agriculture, simply by carefully recording its usage patterns, has cut its electricity bill by R1.7-million. T he National Cleaner Production Centre (NCPC-SA) promotes energy and water management systems and standards. The NCPC’s Industrial Energy Efficiency Project saved more than R1.7-billion in energy costs between 2010 and 2015. The Western Cape is lobbying hard for the National Department of Energy to allow Saldanha Bay to be a site for a gas-to-power plant. The site has existing bulk power consumers like ArcelorMittal

Steel. If a gas plant is built at Saldanha, then it could be a catalyst for the use of gas in many other sectors such as manufacturing and residential. A pilot plant to investigate one of the more sophisticated aspects of solar technology is under way 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. The South African Renewable Technology Centre (SARETEC) on the Bellville campus of CPUT offers courses such as Wind Turbine Service Technician and Solar Photovoltaic Service Technician and various short courses such as Bolting Joint Technology. The Centre for Renewable and Sustainable Energy Studies is at the University of Stellenbosch and the University of Cape Town has the Energy Research Centre. The University of the Western Cape is doing research on the possibilities of hydrogen as an energy source.

ONLINE RESOURCES 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 Renewable Energy Council: www.sarec.org.za South African Renewable Energy Technology Centre: www.saretec.org.za South African Wind Energy Association: www.sawea.org.za Transnet Pipelines: www.transnet.net

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INTERVIEW

A solar project in Touwsrivier is powering ahead The Managing Director of Pele Green Energy, Gqi Raoleka, expands on his company’s goal to work with rural communities to become self-sufficient.

Gqi Raoleka, MD

What is the aim of the project? The project is a 36MW Concentrated Photovoltaic (CPV) Solar Power plant. It provides solar renewable energy directly into the national grid. It forms part of the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). When was it launched?

In December 2017, the power plant would have reached its third year of operation. Power is being provided directly into the national grid to Eskom.

BIOGRAPHY Gqi Raoleka is a founding member of the Pele Energy Group and the Managing Director of the renewable energy subsidiary, Pele Green Energy, which was founded in 2009. He has a degree in Economics and Econometrics and an Honours degree in International and Monetary Finance from the University of Johannesburg. Under Gqi’s leadership, Pele Green Energy has developed into one of the largest Independent Power Producers in South Africa with a portfolio of over 850MW. WESTERN CAPE BUSINESS 2018

Is any new technology being used? The project uses CPV modules or panels instead of the more regular Photovoltaic (PV) panels. The CPV modules allow for greater efficiencies in the energy generation. The CPV modules are mounted on dual axis trackers which allows the power plant to track the sun’s movement all day leading to further improved efficiencies. Who are the partners in the project? Soitec is the CPV equipment supplier and a shareholder in the project. Pele Green Energy holds 35% of the project shareholding and the local community holds 5%. Group Five was the Balance of Plant provider and the project’s senior debt was funded through the raising of a bond on the Johannesburg Stock Exchange. What is the community involvement?

Our power plant, CPV1, invests a share of annual revenues in the socio-economic and enterprise development of our host community, Touwsrivier. The community also owns 5% of the power plant. Our focus is on the economic revival of the community. We have a 20-year licence to operate and intend to use our social investments to diversify and grow the local economy to ensure that the community becomes self-sustaining. We do this through Knowledge Pele, a development firm that delivers a series of targeted interventions

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INTERVIEW which include a bursary programme for scarce skills; accredited enterprise development programmes for startup and existing SMMEs; and work experience programmes. The flagship intervention is the Community Industrialisation Programme. This establishes medium-sized manufacturing facilities in the Community to anchor economic development and job creation. Are there particular challenges in the rural environment?

The biggest challenge to rural development is distance. Distance increases the costs of access to education, markets, healthcare and other social and cultural infrastructure. This therefore places a higher burden on rural communities, which can either isolate them further or inspire local innovation and self-sufficiency. Our approach in working with rural communities is on self-sufficiency. Instead

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of viewing these communities as labour reserves, we’ve taken a view to see them as economic hubs and we are working to help them achieve economic independence. What other services do you deliver to the plant?

We fulfil and perform the asset management services for the power plant. As such we are responsible for systematic, coordinated activities and practices to ensure the plant delivers the prescribed energy performance and expected return on investment, with the added view to enhance the long-term quality and performance of the asset. This is achieved, in part, through the day-to-day management of the power plant, including oversight over the appointed Operations & Maintenance service provider, but also focusing on continuous improvement and optimisation.

WESTERN CAPE BUSINESS 2018


OVERVIEW

Fishing

Fishing companies are listing.

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ea Harvest’s return to the main board of the JSE in March 2017 brought to three the number of major fishing companies represented on Africa’s biggest stock exchange. Just weeks earlier, Premier Fishing made its shares available to the public for the first time while Oceana Group, a Tiger Brands company, has been on the JSE for 70 years. Sea Harvest’s listing follows the acquisition of a majority share of Mareterram, an Australian prawn and food business. Sea Harvest has a presence in 22 countries. In South Africa, the company runs several shore-based factory plants, sells to more than 2 000 stores and has 46% of South Africa’s retail frozen fish market. The Oceana Group has purchased Foodcorp’s fishing rights and a US fishmeal and oil company, Daybrook. The biggest brand performer for Oceana is Lucky Star canned pilchards, which enjoys 80% of market share in South Africa. The Western Cape is responsible for about 75% of the nation’s fishing. The value of the national catch across 22 commercial fishing sectors is about R6-billion. Sectors range from the highly capitalised deep-sea trawling industry to much smaller lobster and abalone operations. 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 Department of Agriculture, Forestry and Fisheries wants 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 Fish SA, which represents 11 fishing associations.

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

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SECTOR INSIGHT The Western Cape accounts for 75% of South African fishing. Most of South Africa’s large food companies have fishing divisions. Pioneer Fishing, which has no connection to the multiproduct group Pioneer Foods, controls a canning, fishmeal and fish oil factory in St Helena Bay and a processing and freezing factory in the Port Elizabeth harbour. Premier Fishing and Brands Limited, a subsidiary of Sekunjalo Investments, runs 16 vessels and operates at seven locations, including a 1 760-ton cold storage facility at the V&A Waterfront. The company has lobster plants at Port Nolloth and Hout Bay, and a fish meal plant at Saldanha. 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). Dromedaris Visserye specialises in Cape lobster, and supplies sardines and anchovies to China and Japan.


OVERVIEW

Water

Desalination plants are under construction.

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he extremely serious drought plaguing the Western Cape has sparked a boom in the construction of desalination plants. Cape Town alone will build nine such plants by early 2018 which will deliver 108-million litres of water per day. The modular land-based plants are situated in diverse locations such as the V&A Waterfront, the Port of Cape Town, Hout Bay, Red Hill and Monwabisi. A Cape Town company has experience in rolling out desalination plants with big capacity. GrahamTek, a PSG company based in the Strand, is consulting on Middle Eastern plants that produce more than 1 000-million litres per day. In India and Saudi Arabia, the firm will produce 800-million litres per day and pump the potable water over a distance of more than 700km. To find the money to deal with the drought and the longer-term effects of climate change, the City of Cape Town issued a green bond for the first time in 2017. It was over-subscribed and allowed the city to get started on implementing its Climate Change Strategy. Some of the long-term projects falling under the strategy include new electric buses, energy-efficiency measures in city buildings, improved sewerage plants, and the rehabilitation and protection of coastal structures. The proceeds of the first green bond were directed primarily at water-related issues: • water pressure management • water supply network upgrade • water meter replacements • waste water plant upgrades.

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SECTOR INSIGHT A Strand company has become a world leader in desalination. • Cape Town will host a water loss conference in 2018.

In 2018, Cape Town will host one of world’s largest water loss conferences. The International Water Association’s (IWA) 2018 Water Loss Conference will attract more than 500 delegates to the Century City Conference Centre and Hotel. In South Africa, some 37% of all water delivered to municipalities is lost, according to Water Wheel magazine, at a cost of R7-billion per year. This presents an opportunity for companies to provide better pipes and smart meters. In 2030 South African demand for water will be 17% greater than supply. That is the verdict of the WESTERN CAPE BUSINESS 2018


OVERVIEW SA's Most Productive Company Liquid storage solutions provider SBS Tanks took top honours at the Productivity SA 2017 National Awards, where the company was applauded for its use of resources and epitomising the highest qualities and attributes of productivity. SBS Tanks ticked all the boxes to clinch the prestigious gold prize and the coveted title of Most Productive Company in the Corporate Sector.

2030 Water Resources Group. The Water Resources Group, an international consortium of private companies, agencies and development banks, has established a South African chapter, the Strategic Water Partners Network (SWPN) which has a focus on three things: water efficiency and leakage reduction; effluent and wastewater management; and agricultural and 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 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 satisWESTERN CAPE BUSINESS 2018

fied 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 ensuring that river water quality enhances the region’s economy. The fruit, grape and wine sectors need good-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 Western Cape Department of Agriculture has launched a climate action plan called Smart Agri which includes doing studies on conservation agriculture. The plan draws on the expertise of academics and companies in the private sector. 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 Berg River in winter, having first allowed for enough water to cover the ecological water requirements of the river and the estuary. A Water Stewardship programme has been introduced in the Breede River catchment area. WWF-South Africa, Woolworths and Marks & Spencer are collaborating on a scheme encouraging stone fruit farmers to put in place systems that reduce risk to water supply and quality. WWF-SA also has a Water Balance Programme which works to increase the amount of clean water coming into the environment. Woolworths’ contribution to this plan involves getting rid of alien vegetation on the farm where it sources its wines (Paul Cluver Wines) and in the Leeu River catchment area. The introduction by the National Department of Water and Sanitation 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 reflectively how well they are doing in terms of providing clean water. In order to win a Drop Award (Blue for water quality, Green for waste treatment), water systems have to score 95% or higher. The DWS has allocated R4.3-billion to helping municipalities deliver water. The Interim Water Supply Programme concentrates on 23 district municipalities.

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

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FOCUS

Harnessing innovation to tackle water scarcity Rise Water Hackathon. Rise, Barclays Africa’s innovation hub in Cape Town, hosted a Water Hackathon in March 2017 to help harness the power of technology, innovation and collaboration to find solutions for the Western Cape’s ongoing water crisis.

too believes that there is no one entity that can single-handedly come up with a solution to the water crisis we face, but that it is rather through collaborative efforts by stakeholders from all sectors that we’ll find workable solutions.

At the time, dam storage levels were at 23.5%, indicative of the fact that the City of Cape Town was in a particularly dire situation, especially with the prospects of rain remaining elusive.

Participants in the Hackathon event were challenged to generate solutions to improve agricultural, industrial and residential water consumption. The winning idea, proposed by Water Surge, is to create an online and mobile public campaign that uses gamification and integrated social media to encourage behaviour shifts.

Rise’s sprint-like design event, held in conjunction with Woolworths Holdings, convened industry experts, policymakers, conservationists, students, community members, scientists and engineers, and invited them to come up with possible means of alleviating the crisis.

“This is an innovation that could really help drive water-saving behaviour change across Cape Town, and could potentially be implemented in a short timeframe,” said City of Cape Town water and energy efficiency strategist Sarah Rushmere.

According to Yasaman Hadjibashi, Chief Creation Officer at Barclays Africa Group, they used the Rise co-creation platform to help bring people from various organisations and communities closer so that we can collectively tackle our biggest societal challenges and drive mass implementation of solutions. This is in line with Rise’s belief that the most powerful way of finding solutions is to bring together the most diverse groups of people who would not ordinarily cross paths.

Additional Hackathon solutions proposed: • A modular water storage system that collects rainwater using panels • A big data system to track water usage along a supply chain • Partnerships with retailers to encourage shoppers to buy products that are produced using water responsibly • Voucher and coupon systems to encourage incentives for partnerships between government and the private sector • Helping consumers understand the impact of producing different food groups on water supplies.

Justin Smith, Head of Sustainability at Woolworths, said water is a critical input to their products, whether it is food or clothing. The efficient use of water is of utmost importance in ensuring productivity is maintained in the business. He

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OVERVIEW

Manufacturing Steady growth is predicted in this diverse sector.

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rowth in the Western Cape 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 diverse manufacturing sector contributes 15% to the Western Cape’s GDP. 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 one of the fastest in the world. The Western Cape is driving a green economy manufacturing strategy focussed on the suburb of Atlantis. About 70% of South Africa’s manufacturing in renewables is happening in the Western Cape. Atlantis was chosen in 2017 as the site of a new factory for Czech fabric manufacturer PEGAS Nonwovens. At R1.3-billion, the investment is the biggest secured by Wesgro and Into SA since 2011. Training for local residents employed by the manufacturer will take place in the Czech Republic. All of the raw materials for production will be locally sourced but the high-tech machinery will be imported. 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.

SECTOR INSIGHT The Red Tape Reduction Unit assisted a boat-builder secure US orders. • A Czech fabric manufacturer has invested more than R1-billion.

Within the Western Cape manufacturing sector, the agriprocessing sector (including food and beverages and tobacco) subsector is 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.

Food and beverages The combination of excellent and plentiful agricultural produce, good manufacturing capacity and a skilled workforce give the Western Cape a competitive advantage in the food and beverages sector. A sophisticated transport infrastructure system allows it to service international markets. Famous Brands has bought a famous Western Cape brand in WESTERN CAPE BUSINESS 2018

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OVERVIEW its drive for greater backward integration. Lambert’s 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. Lambert’s Bay Food sources potatoes from all over South Africa, but its proximity to the potatogrowing Sandveld region is help ful. British American Tobacco, which has about 65% of the legal domestic market, has moved its administrative headquarters to the Waterfront. The wheat-growing areas of the Swartland host several mills such as Sasko’s facility in Malmesbury. Bokomo has several manufacturing facilities in areas such as Atlantis, Epping, Ndabeni near Pinelands, Worcester and Bonnievale. Safari Vinegar is based in the Strand and there are two Heinz manufacturing plants at Wellington and Atlantis. Two of the biggest chicken processing facilities are located on the N7 highway 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 has 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.

Boat building The Western Cape Government’s Red Tape Reduction unit assisted one of the province’s biggest boat-builders, Phoenix Marine, to get an abnormal load permit in time to attend a big boat fair in the US. The affected yacht was worth R12.5-million and the company signed contracts for two further boats valued at R29-million. The good news continued for Phoenix Marine with investors coming on board for $2-million and annual production targets being reset at three times the current rate. Nautic Africa make 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 catamarans. 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 Department of Trade and Industry: www.thedti.gov.za South African Textile Federation: www.texfed.co.za Wesgro: www.wesgro.co.za

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OVERVIEW

Construction and property Affordable accommodation is on the agenda of developers.

SECTOR INSIGHT Fancourt Golf Estate has released new plots for the first time in a decade. • A 42-storey giant will soon appear on Adderley Street.

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he release by the City of Cape Town of sites in Woodstock and Salt River could lead to new housing for 4 000 lower-income households. The city wants private developers and social housing institutions to create affordable housing on the 11 sites that it has earmarked. Some R16-billion has been invested since 2012 in the four districts comprising the City of Cape Town CBD, but developers are being asked to include affordable accommodation in their plans so that the old apartheid spatial divide is not perpetuated. House prices in Cape Town are moving upwards faster than anywhere else in the country, both in terms of inflation (10.35% vs WESTERN CAPE BUSINESS 2018

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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. As a symptom of how vibrant Cape Town’s property market is, Spear Reit has listed on the Alternate Exchange, becoming the first property fund to list as a Western Cape entity. The gross lettable area of the real estate investment trust (REIT) is 172 000m² and the intention is to take advantage in Cape Town’s building boom. A huge new tower will soon dominate one of Cape Town’s iconic corners. The Zero-2-One Tower to be constructed on the corner of Adderley and Strand streets will be the tallest building in Cape Town at 42 storeys. Of the 860 planned apartments, 312 will be in the affordable category, aligning the development with broader social goals. The site currently houses the Old Mutual Centre and Exchange Place. Land Equity and FWJK Developments are the developers. In another new development, there will be 250 residential units


OVERVIEW at a new building to be called 100 Buitengracht, together with 4 000m² for shops. Developer Vantage Property is aiming for a Green Star rating and says that the design will respect the building’s position between Riebeeck Square on Buitengracht and the historic Bo-Kaap neighbourhood.

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 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 city government) putting in the bulk infrastructure, costs for developers would be significantly reduced – the quid pro quo is that the developer must then set aside a certain number of housing units (49%) to 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 Phillipi: 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 grow and attract good houses for residential property. Several schools have been built in the area. 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). Fancourt in George was one of the first golf estates in South Africa. In 2017 a set of new plots were offered for sale on what was described as its “prized northern slopes”. Kingswood is another premier golf estate in George. Pam Golding was selling a three-bedroomed townhouse at Kingswood in 2016 for R2.35-million.

ONLINE RESOURCES Construction Industry Development Board: www.cidb.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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PROFILE

Maritz Electrical End-to-end electrical solutions.

Introduction Maritz Electrical is an empowerment company established by Kurt Maritz in January 2000. Through visionary leadership and experience, the company has developed many strong and lasting relationships with its customers. Maritz Electrical places great emphasis on its relationship with clients, private or commercial, and prides itself on the ability to respond to any contracting requirements in an efficient and cost-effective way. At Maritz Electrical we aim to contribute positively to the South African economy, provide excellent workmanship and be a leader in quality service provision.

Mission Statement Maritz Electrical delivers electrical installation and support services to meet all needs in the commercial, industrial and public-sector industries. Maritz Electrical is committed to implementing the latest technologies and industry practices. We provide clients with experience, quality, accredited workmanship, dedication and professionalism, and as a result have become a leader in providing electrical services.

Our Services We work closely with our customers, ensuring that the task or project is completed on time and on budget, using the highest quality products available. In particular, Maritz Electrical has become a premier supplier and installer of dedicated sports lighting. This includes schools, universities, multisports stadia and our most recent flagship project, the St George’s Park cricket ground.

• Electrical and Reticulation Services • Testing and Commissioning • Water Analysis, Monitoring, Management and Purification Systems

• Lighting and Power • External Lighting • Mechanical Services Integration • Emergency Switchgear • HV & LV Switchgear • Pre-Planned Maintenance

Suppliers and Safety Maritz Electrical has an internationally compliant management system in place. Musco (leading supplier of electrical sports lights) is one of our established relationships that allows us to provide products of a similar quality to that of Twickenham Stadium and Arsenal's Emirates Stadium.

Company Professional Membership

• BBBEE Level 1 • ISO 9001 certified • Electrical Contractors Association • Master Builder Association Member • Member of South African Institute of Lighting(SAIL) Contact info 7 Wetton Road, Kenilworth, Cape Town, 7800 Tel: +27 21 703 0867 |  Fax: +27 21 703 0868   Cell: 071 364 7354 Email: info@maritzelectrical.co.za Website: www.maritzelectrical.co.za

We specialise in all residential and commercial areas of electrical installation and maintenance. Our electrical services include project management, design, supply, installation, testing plus commissioning and maintenance of electrical systems including: WESTERN CAPE BUSINESS 2018

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FOCUS

Maritz Electrical in the limelight Flagship projects.

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ver and above the world-first cricket stadium lighting project which Maritz Electrical delivered on time and on budget in 2017, the company’s reputation for reliability has been bolstered by the following flagship projects: Cape Town Grand Parade: relit with Musco fixtures. The brief was to improve the lighting level to reduce the personal crimes being committed because of poor lighting. Cape Town Festive Lights including Adderley, Strand and Main streets: for the past three years, Maritz Electrical has been responsible for the installation of the popular Festive Lights, to the delight of citizens of and visitors to Cape Town Security lighting for waste water treatment plants: Musco’s metal halide and LED system has become the preferred product of Cape Town’s Department of Water and Sanitation and Maritz Electrical is the proud installer.

In 2017, St George’s Park became the world’s first International Cricket Council-compliant, LED-lit stadium and the first such stadium to be fitted with theatrics. Port Elizabeth’s famous ground was the site of

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

Lighting was installed for nine community multi-purpose sports fields. The project was completed in one year.

The Bravo Apron of Cape Town International Airport was relit with LED fixtures for Airports Company South Africa.

St George’s Park Cricket Ground.

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OVERVIEW

Banking

Financial services is a growth sector.

SECTOR INSIGHT The City of Cape Town has issued a green bond. • The JSE has opened an Exchange Hub in Cape Town.

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he new green bond issued by the City of Cape Town is a sign of the “climate change” times. South Africa’s third-ever green bond attracted bids over R4-billion on an initial offering on projects worth R1-billion. The JSE intends opening a green section to deal with the expected growth of such instruments. The lead arranger for the bond was Rand Merchant Bank. The green bond is certified by the Climate Bonds Initiative and ratings agency Moody’s gave the bond a rating of GB1. The finance and insurance sector contributes 10.9% to provincial GDP and is an area of the economy that shows consistent growth. The sector outperforms most other sectors according to the FNB Chart Book, and further growth is anticipated. New financial services companies are starting or relocating to the Cape. These range from asset managers to hedge funds, venture capitalists and insurers. The decision by the Johannesburg Stock Exchange (JSE) to open a JSE Exchange Hub in Cape Town confirms the city’s importance in the financial world. There are eight Cape Town-based companies in the Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers, Woolworths, British American Tobacco, Remgro, Shoprite Holdings and Sanlam. WESTERN CAPE BUSINESS 2018

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The head offices of financial firms are dotted all over Cape Town. These include Old Mutual and Foord (Pinelands), Coronation (N ew lan ds), Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns. Even the small rural town of Greyton is home 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 (a 54% stakeholder in Nedbank) has begun the process of creating four standalone 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


OVERVIEW Banks

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

A number of new licences for banks are in the pipeline, with the first of these being a digital bank. The banking licence issued in 2017 to Take Your Money Everywhere (Tyme, by Commonwealth Bank of Australia) is the first to be issued since Capitec was granted a licence by the South African Reserve Bank in 1999. Capitec, with its roots in Stellenbosch, has since gone on to become a major player on the South African retail banking scene. It now merits inclusion in a new “Big Five”, with Standard Bank, Absa, FNB and Nedbank. In terms of assets, the five biggest banks are Standard Bank, FirstRand (which owns FNB), Absa (which is part of Barclays Group Africa), Nedbank and Investec. According to the Reserve Bank, this group had 89% of market share in 2015. Merchant banking and investment banking are the most competitive sectors with companies such as BoE Private Clients, Rand Merchant Bank and Investec prominent. Other applicants for new banking licences are Discovery and Post Bank, a division of the South African Post Office. Discovery is already a giant on the JSE (market value of R83-billion) with a wide range of products and services that give it access to millions of customers. Life insurer MMI Holdings is entering a partnership with African Bank to enable it to start taking deposits and loaning money. Banks are working hard to offer products to the previously unbanked. Nedbank has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas and also on all days of the week such as public holidays and Sundays. Standard Bank’s community-banking initiative offers a low-cost cellphone-banking service. Retailers can act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas.

ONLINE RESOURCES 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 JSE Limited: www.jse.co.za South African Institute for Chartered Accountants: www.saica.co.za South African Reserve Bank: www.resbank.co.za

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INTERVIEW

Building shared value John Tshabalala, Managing Executive Western Cape, expands on the shared growth approach. Tell us about your new premises.

John Tshabalala

Absa has consolidated its 14 Western Cape offices into one centrally located regional office, which facilitates better collaboration between our various business units to improve client service and solutions development. The new office also offers a more professional environment for client meetings and even allows clients to use dedicated spaces for their own meetings. Bringing everything under one roof further helps to create a dynamic, agile environment that stimulates internal creativity and productivity. What is Absa’s take on the regional economy?

Our Western Cape regional office, through the investment in our new premises in Century City, speaks to Absa’s continued commitment to the region. Please explain the concept of “Shared Growth”.

BIOGRAPHY John Tshabalala joined Absa in 2000 and has held a variety of roles from Branch Manager, Sales Manager and Regional Head for Retail to Regional Executive for Private Bank. In 2014, Tshabalala expanded his experience and joined the wealth, investment management and insurance division as a provincial General Manager in the Eastern Cape, later expanding to the other Cape regions.  In October 2017 Tshabalala assumed the role of Managing Executive, Western Cape. WESTERN CAPE BUSINESS 2018

Absa is leading a shift away from traditional grant-making and corporate responsibility programmes towards an integrated approach that delivers both shareholder and social returns. By embracing a philosophy of shared value, the bank is seeking to apply its substantial resources more deliberately – both assets and expertise – to unlock solutions to social challenges through innovative products, services, and partnerships. This is Shared Growth. So you are looking for some solutions for social ills? Because so much of South Africa’s potential remains untapped and limited by social challenges, strategically tackling those challenges will unlock substantial new growth opportunities. Absa is committed to ensuring that every business decision made not only contributes to the bottom line but also improves the lives of the communities in which the bank operates. There is a link between society’s progress and our own success. We strive to be a good corporate citizen and contribute meaningfully to society How can the bank drive growth? Healthy economies need strong banks to drive economic growth and social progress, and as a business the bank has an opportunity to play a pivotal role in fostering innovation and facilitating inclusive Shared Growth for current and future generations. It’s this concept of Shared Growth that lies at the heart of our strategy in Africa.

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Share. Grow. Prosper.

Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7

Sharing. It’s the most powerful form of humanity. It is something we are taught before we can even walk. Because in sharing lies positive growth for all. The chance to prosper. To give and receive. It holds the promise of a strengthened society. It connects us and evolves us. From learning to getting people ready to work. From dreaming of careers to studying for them. From having fun to meetingresponsibilities. It stimulates the innovators and inspires future leaders. Sharing is something we practice everyday. We listen, we care, we design, we add value, to your life and that of others. We empower small businesses to think big and big businesses to remember the small. There is a beginning to Shared Growth. But there is no end. And each time we share we know that some day, in some way, it will be shared again. When we share, we grow. When we grow, we all prosper.


FOCUS

Unlocking shared growth for the Western Cape Absa is using sustainable business models to tackle social problems Absa’s Shared Growth strategy is focused on three interlinked themes where we believe the bank can have the greatest impact: Education and Skills, Enterprise Development and Financial Inclusion. By tackling social challenges through commercial business models, the bank offers self-sustaining and scalable solutions. These solutions offer considerable advantages because they: • increase access to employment opportunities through skill building • provide access to quality education • give support to small and medium enterprises (SMEs) • provide wider, more convenient access to financial services. The Shared Growth strategy is therefore focused on these interlinked themes. In implementing its Shared Growth strategy, the bank works with like-minded partners in business, government, academia and the non-profit sector. Forging strong public-private partnerships is key to creating shared value that can deliver maximum impact.

Education and Skills Absa has committed to investing R1.4-billion over the next three years to support education and skills development across Africa. ReadytoWork, the bank’s employability initiative, trains young people who are setting out to find employment or create self-employment. Focusing on work, people, money and entrepreneurial skills, this free online and face-to-face training initiative provides learning material to help young people improve the soft skills needed to move from education into the world of work. Once young people have completed the curriculum, they receive a certificate WESTERN CAPE BUSINESS 2018

of participation. In the Western Cape a number of ReadytoWork awareness programmes have taken place at Technical Vocational Education and Training (TVET) colleges, schools and universities, including Northlink College, South Cape College and the Cape Peninsula University of Technology. The purpose is to encourage students and budding entrepreneurs to register for ReadytoWork and complete the curriculum on absa.co.za/readytowork Absa, who banks 34 out of the 50 TVETs in South Africa, provided work exposure for students at TVETs in the Western Cape over a three-week period in July 2017. A total of 135 students and three lecturers spent time with 57 employees from Absa who volunteered their time. The students, mostly from areas like Khayelitsha, Vredendal, Imizamo Yethu and Manenberg, received valuable mentoring as well as presentations on Absa Bank’s products, services, and the banking laws.

University Scholarships The CEO Scholarship Fund forms part of the Education and Skills Development pillar of Absa’s Shared Growth strategy through which it has undertaken to invest R1.4-billion in education and skills training between 2016 and 2018. Absa Bank has committed to an almost three-fold increase in the Barclays Africa Group’s 2017 CEO Scholarship Fund to R210-million. This will result in 3 000 university students across its 10 African markets receiving a scholarship for the current academic year. In the Western Cape, between 2016 and 2017, the allocation is more than R35-million to students from the University of the Western Cape, Cape

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FOCUS

Peninsula University of Technology, Stellenbosch University and the University of Cape Town.

Enterprise Development Rise: Barclays Africa Group’s fintech innovation hub in Cape Town is supporting five women entrepreneurs in the information and communications sector by providing a year-long subsidised membership to the Rise co-creation community and workspace. Four start-ups were selected for support: • 88 Business Collective: The accelerator programme headed by Antoinette Prophy is focused on emerging women entrepreneurs. • Trade Circle: Founded by Lauren Davidse, Trade Circle is developing a digital business-to-business (B2B) trading platform to modernise the supply chain of SMMEs. • Minderz: Started by Boitumelo (Tumi) Menyatswe, Minderz is an easy-to-use online platform that connects pet parents/owners with experienced, available and vetted sitters. • Girl Hype: The brainchild of Baratang Miya is an education technology (edtech)​start-up. #YouthStart: Small and medium enterprises are essential to growing the economy across the continent. #YouthStart is a City of Cape Town programme assisted by Absa’s Business Support Development. The top 10 winners were placed in Absa’s entrepreneurship training and the financial literacy programme, and they received computer notebooks. The top three winners received seed capital to kickstart their business ideas. Cape Town Film Festival: Absa recently partnered with Wesgro and the City of Cape Town to promote Cape Town and the Western Cape Province as a film production destination. Absa has expanded on a unique partnership with China to promote South African and African productions by means of mobile movie theatres across townships.

Absa Cape Epic: Absa has been the proud title sponsor of the Absa Cape Epic since 2006, and is thrilled to be part of an event that makes an impact in the lives of the teams who participate and the communities who benefit from the race.

Financial Inclusion Many of the SMEs that corporates may be looking to support through procurement spend may not be able to get funding from a bank because they do not have a financial track record. Getting a loan from a bank normally requires financial records, strong balance sheets, good credit records and collateral – none of which most small businesses have. These entities then end up having to go to the informal markets to borrow at exorbitant rates, which defeats the whole purpose of building sustainable SMEs. Barclays Africa has two initiatives in this field. Firstly, we have established an innovative fund to provide lending to SMEs that are in the supply chains of our clients. This enables us to partner with our corporate clients to develop and transform their supply chains through financing. Furthermore, we recently set aside a R165-million fund to finance qualifying SMEs in our own supply chain.

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OVERVIEW

Development finance and SMME support Opportunities abound for entrepreneurs.

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here are many private and state initiatives to support entrepreneurs. In the Western Cape, the annual SMME Opportunity Roadshow showcases opportunities, allows for relevant networking and guides small businesses on how to get their products and services into the mainstream of the economy. The Roadshow (shown in the photograph) is also held in Port Elizabeth, Durban and Johannesburg and is supported by the Department of Small Business Development. The Philippi Village Container Walk houses key-cutters, building material suppliers, hairdressers and clothes shops. With the backing of the IDC, the two-storey creations house retail shops on the bottom floor and offices on the top floor. Several NGOs have a presence and training is available for entrepreneurs. Philippi Village is a joint venture between Business Activator and the Bertha Foundation, a global philanthropic foundation. The Premier’s Entrepreneurship Recognition Awards (PERA) for the Western Cape entered its fifth year in 2017. Premier Helen Zille said at the 2016 awards that entrepreneurs employ 500 000 people in the province which is why the provincial government had supported 35 000 small businesses since 2009. Among the winners in 2016 were Auto Magneto, Pure Good Food, Doring Bay Abalone and Shonaquip. Co-sponsors of the event are Absa, Business Partners Limited, Ackerman Pick n Pay Foundation and Deloitte. Cape Gateway, the website of the Western Cape government, lists 50 SMME support organisations in the province. These range from the provincial trade and investment promotion agency, Wesgro, to smaller community institutions and business initiatives. Several industry bodies also exist to assist SMMEs in sectors such as clothing and textiles, arts and crafts, and boatbuilding, as well as training centres in areas identified as having high unemployment and skills shortages. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant. The Small Enterprise Development Agency (Seda) is an agency of the DSBD and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating WESTERN CAPE BUSINESS 2018

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SECTOR INSIGHT A Seda Rapid Incubator has opened at False Bay TVET College. • The AHI has rebranded as the Small Business Institute.

business plans. It helps small businesses draft applications for loan finance. Seda has established a Rapid Incubator in partnership with the Centre for Entrepreneurship (CFE) at False Bay TVET College, Westlake Campus. Intended to encourage TVET graduates to start their own businesses, the focus is on metal fabrication and furniture making. The Rapid Incubation Programme encourages innovative thinking and promotes students, entrepreneurs and potential clients to interact. Learning how to commercialise products and services is a key element of the course. Business Partners Limited is described by Seda as “one of the more successful SMME support organisations”. With a head office in central Cape Town, Business Partners is an unlisted company that offers loans, mentorship, consulting and business support. The National Gazelles is a national


OVERVIEW

SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support small businesses with growth potential across priority sectors aligned with the National Development Plan and Seda’s SMME strategy. Businesses can receive up to R1million for training, productivity advice, business skills development and the purchase of equipment. The Industrial Development Corporation (IDC) is a strong supporter of SMMEs either by disbursing loans or by taking minority shares in enterprises and giving advice. The Masisizane Fund offers loan financing at good rates and training through its Business Accelerator programme. As a non-profit initiative of the Old Mutual Group, the fund focusses on the cash flow of potential businesses rather than insisting on security in the form of property or something similar. All the major banks have SMME offerings. Standard Bank’s

Community Investment Fund (CIF) initiative extends loans to informal businesses. The CIF has distributed more than R7-million to more than 630 businesses through its six funds in three provinces. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership. The Shanduka Black Umbrellas incubator helps entrepreneurs convert their good ideas to sustainable business practice. The Afrikaansehandelsinstituut (AHI) has rebranded as the Small Business Institute. Representing over 100 chambers, the SBI is a member of Business Unity South Africa. The National Small Business Chamber (NSBC) has a base of over 125 000 SMEs and 50 big brands as partners. A member-based organisation that offers benefits, the NSBC runs surveys and hosts expos, networking events and awards functions.

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

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INTERVIEW

Advocating for a fundamental shift Andile Nomlala, Provincial Chairperson of the BMF Western Cape, outlines the measures taken to move transformation forward.

Andile Nomlala

Please outline the main objectives of the Black Management Forum. The Black Management Forum in the Western Cape has positioned itself to be a catalyst for transformation in a province where our recent past still finds expression in how companies are run but also in how we relate to one another. This requires a fundamental shift in mindset that the BMF continues to advocate for. What is the BMF’s current focus? We have two main focus areas. To continue to advocate for greater representation of black professionals in corporate Western Cape through the promotion of laws such employment equity. We have established an HR desk that provides talent placement services within companies. Also, to fast-track enterprise development through cooperation with corporate Western Cape and other relevant stakeholders.

BIOGRAPHY Andile Nomlala has more than nine years’ experience as an entrepreneur. His business investments cover industrial properties, valet services and a financial services company, Deposit4U. His background is in investment and finance. He holds an Honours degree from the Graduate School of Business (UCT): a Postgraduate Diploma in Management Practice and an MBA, Executive. Andile was recently recognised by the Independent Media Group as the finalist in South Africa’s Top 100 young independents in 2017: Innovator category. WESTERN CAPE BUSINESS 2018

What are some of the BMF’s most recent achievements? The establishment of our branches in Century City with the support of ABSA Bank and in Cape Town through Allan Gray, PwC, Engen, Woolworths and Old Mutual, driven by the increased membership. The launch of the Transformation Forum, one of our key legacy projects. Hosting the inaugural Black Excellence Awards addressed by former Deputy Chief Justice, Dikgang Moseneke. The awards showcase black managerial excellence. The various categories include Business Personality of the Year, Progressive Company of the Year and Manager of the Year. How would you characterise the relationship with civil society, labour unions and government? The BMF is a non-partisan organisation and we welcome engagements with all types of organisations if there is common ground. We also welcome individual members from different sections of society and organisations. We always first seek to cooperate, and then contest where we are not satisfied with measures taken. Case in point: we engaged Parliament and the Presidency on the appointment of the NYDA board. We have been involved in arbitration efforts for the #Feesmustfall movement with a view to finding a lasting solution. Our strategy consisted of bringing all relevant parties together.

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Working together to grow the West Coast economy.

West Coast W

West Coast Business Development Forum

PROFILE

Busi ness Development Forum

Aims and objectives

• Strengthening maritime support capacity for oil

firms with relevant bodies in the public sector. • Prioritise and reduce stifling factors, case-by-case. • Focus on growing the West Coast District economy.

• Expansion of iron-ore mining production and

• Establish robust and reliable dialogue of large

Structure

• Up to 20 large/leading firms in the West Coast District (in terms of size and innovation) • Government: municipal, provincial, national • Relevant State-Owned Entities (SOEs) • Representatives of key sector clusters could be invited to join at a later stage.

and gas along African West Coast. beneficiation.

State Owned Enterprises: IDZ, Eskom, Transnet Ports, Transnet Rail.

Processes

• Meetings – every fourth Tuesday of the month excluding December.

• EzyED online group collaboration – ongoing

value addition eg raise and resolve issues, inform others.

Membership

Firms: ArcelorMittalSA, Club Mykonos, Duferco, Kaap-Agri, Kropz, Mittal, Mineral Sands Resources (MSR), Oceana, Pioneer, PPC, Sea Harvest, Swartland Boudienste, Tronox.

• Participate and contribute to productive

Government: Bergrivier Local Municipality, Cederberg LM, Matzikama LM, Saldanha Bay LM, Swartland LM, West Coast District Municipality.

Roles and responsibilities

• Work together as a team, across institutional boundaries. meetings.

• Ongoing, anytime solution development and online group collaboration.

• Record progress and keep everyone informed. • Work as a cross-institutional team to raise and resolve issues.

Province: Department of Economic Development and Tourism, covering water, environment, energy, infrastructure and Spatial Development Frameworks.

• Discuss and build solutions for a more vibrant West Coast economy.

• Promote the West Coast and support others doing the same.

CONTACT INFO

National: National Department of Cooperative Governance and Traditional Affairs and Industrial Development Corporation: National Infrastructure Plan has various Strategic Integrated Projects. Number 5 centres on Saldanha-Northern Cape development corridor and includes a focus on:

WCDM Co-chairpersons Johan Vorster and Frank Pronk Secretariat West Coast District Municipality (Strategic Services Office) Tel: 022 433 8400 Email: info.wcbdf@ezyed.com

Integrated rail and port expansion: • Back-of-port industrial capacity (including an IDZ).

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es

t


OVERVIEW

Education and training Tackling the skills deficit.

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kills training is seen by many economic planners as the single biggest priority for South Africa and the Western Cape. Airports Company SA (ACSA), the City of Cape Town and the False Bay Technical and Vocational Education and Training (TVET) College in Westlake have combined in an innovative initiative to offer residents of Blikkiesdorp a chance to learn skills in brick-laying, house-building, scaffolding and health and education. ACSA is investing R5-million in the 12-month certification project and the Construction Education and Training Authority (CETA) will channel funds to False Bay College to enable it to roll out training. Once trainees have completed the National Certificate in Community Housebuilding, they will set about building houses for themselves and their neighbours in communities near the airport. The Western Cape Provincial Government has listed skills development as one of four key “enablers” of the regional economy. An intervention relevant to the construction industry is offered by the provincial Department of Transport and Public Works. Targeted training for emerging contractors is presented in regional centres like Riversdale and Worcester, and in Piketberg and Saldanha. The four-week, modular course covers issues such as site management, safety and enterprise development and 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 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. The Lawhill Maritime Centre in Simon’s Town is preparing young people for careers in the maritime sector. Subjects offered include nautical sciences, maritime economics and electronic navigation systems. The school is funded by a variety of companies (such as Safmarine Container Lines, Grindrod and SMIT Amandla Marine), state organisations (Transnet National Port Authority and the South African Maritime Safety Authority) and private foundations. Educational commentator Jonathan Jansen wrote in the The Times that the centre “reminds us what our country can still become – without any direct state funding”. SARATEC is another institution offering industry-specific training. The South African Renewable Energy Technology Centre is managed by the Cape Peninsula University of Technology (Bellville campus) but it WESTERN CAPE BUSINESS 2018

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SECTOR INSIGHT • The Lawhill Maritime Centre is successfully laun c hing mar i t im e careers. • Communities near the Cape Town International Airport are learning to build houses. collaborates with several other institutions and private companies. Technical and Vocational Education and Training (TVET) colleges offer a range of diplomas and short courses in many skills. Each of the province’s six TVET colleges has several campuses. The College of Cape Town (CCT) has nine outlets and caters to the central city. Northlink College is in the northern suburbs of Cape Town 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 TVET College has campuses in Fish Hoek, Muizenberg, Mitchell’s Plain, Khayelitsha and Westlake. Outside of the Cape metropole, Boland College looks after Stellenbosch, Worcester, Paarl and Caledon, while the Southern Cape College covers a wide area, from


OVERVIEW

George to Beaufort West. The West Coast College also has a big catchment area. Boland College participates in an Expanded Public Works Programme (EPWP) run by the South African Chefs’ Association.

Tertiary education The 2018 Quacquarelli Symonds (QS) World University Rankings, ranked the University of Cape Town in the top 200 universities in the world and the top-ranked institution in Africa. The University of Stellenbosch was ranked second in South Africa and the University of the Western Cape appeared for the first time on the expanded list. The rankings are based on six indicators: academic peer review, faculty/student ratio, citations per faculty, employer reputation, international student ratio and international staff ratio. These three institutions, plus the Cape Peninsula University of Technology, produce approxi-

mately 12 000 science, technology, engineering and mathematics graduates every year and host 11 000 students from other African countries. The University of Cape Town has more than 21 500 students, 720 permanent staff and 39 A-rated researchers (40% of South Africa’s total). Stellenbosch University is linked to Stellenbosch’s growing reputation as a technology hub. The University of the Western Cape has focused on increasing its research capabilities in recent years, and is home to several national research bodies. In 2015, Cape Peninsula University of Technology (CPUT) celebrated its 10th year as a merged institution. University education is available in George through the Nelson Mandela University (NMU): 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. One of the major role-players in tertiary education in the region is the University of South Africa (Unisa), a comprehensive distancelearning institution. It has a student complement of approximately 30 000 in the Western Cape (and more than 350 000 worldwide). Unisa has a campus in the northern suburbs of Cape Town and a Service Centre in George.

ONLINE RESOURCES Cape Peninsula University of Technology: www.cput.ac.za Construction Education and Training Authority (CETA): www.ceta.org.za TVET colleges: www.tvetcolleges.co.za Western Cape Education Department: www.westerncape.gov.za Western Cape Education Foundation: www.wced.school.za/wcef

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PROFILE

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

• Hair Care • Hospitality • Information Technology • Mechanical Engineering • Travel and Tourism

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) • Work placement services • Social and cultural services

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 • Electrical Engineering WESTERN CAPE BUSINESS 2018

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PROFILE

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: info@cct.edu.za Website: www.cct.edu.za

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INTERVIEW

Empowering with knowledge or skills through short courses Mike du Plessis, Director of Short Courses, explains the empowering effect of short courses.

Mike du Plessis

What was the original aim behind the short courses? The idea was to empower people with knowledge or skills simply to do the job better at the time, in their industry. Or to excel in the job or to get a promotion where they were working. Can an unemployed or young person also sign up? Yes, and they now often make up a substantial part of a class. It’s also aimed at employers: we find that they sponsor the fees. Do organisations ask for courses for unemployed people? There are initiatives out there. The City of Cape Town has projects running from time to time. They will ask, can we empower people with basic computer skills, for instance. Do you customise courses? A municipality might want a specific course in say project management, then we customise it and we can deliver it onsite.

BIOGRAPHY Mike du Plessis has a B.Comm from the University of Port Elizabeth and an MBA earned in the US. His PhD research field relates to customer loyalty. Having started in banking, Mike worked for Ford Motor Company before joining the Cape Technikon and becoming Head of Marketing and Assistant Dean. Since 2005 he has been Director of Short Courses at CPUT. WESTERN CAPE BUSINESS 2018

Has the demand for training changed over time? Management science was actually the birthplace of short courses at the old Cape Technikon. The initial courses were often business/ management related, accounting, later on computers and then sales. It grew into the world of engineering and financial systems, and now you find courses in cyber security. Are certificates issued? They always get a certificate, it could be of attendance, it could be of competence. What they do not get and what we do not claim to give is a qualification (which consists of more than 120 credits). If you did a short course with us, as a university we can say that it will count towards a certain number of credits with a formal (diploma) course with us. A short course can be a gateway to signing up at CPUT, especially if it’s combined with recognition of prior learning (RPL).

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PROFILE

Cape Peninsula University of Technology CPUT Short Courses.

Creating futures Our short courses are aimed at developing your skills. They give insight into various fields, empowering you to make decisions about your career and future. Our courses are affordable and our university is your quality guarantee. Cape Peninsula University of Technology offers a variety of short courses, making it easy for persons who are already employed to study part-time. Courses range from half-day courses to six months or a year. Courses are offered at the two campuses of CPUT in central Cape Town and Bellville. The South African Renewable Energy Technology Centre (SARETEC) is located on the Bellville campus and practical marine and survival training takes place at our Granger Bay facilities. The university has six academic faculties and departments within faculties are responsible for short courses. Courses on Human Resource Management, for example, are offered by the Graduate Centre for Management (Faculty of Business and Management Sciences) while Helicopter Underwater Rescue Training (HUET) is presented by the Survival Centre (Engineering).

• • • • • • •

Time is running out.

APPLY TODAY. #WeAreCPUT creating futures

CONTACT INFO

Relevant fields of study • • • • • • • • • •

(ICT) Journalism Language and communication Management Maritime and survival Production Public relations Quality control

Cape Peninsula University of Technology (CPUT): Short Courses Tel: +27 21 460 3079 Email: shortcourses@cput.ac.za Website: www.cput.ac.za/academic/ shortcourses/fields Telephone numbers for specific courses are on the website. Administrators are available to answer questions. www.facebook.com/cputshortcourses/ wearecput

Administration Clothing and textiles Computers Cyber security Education Engineering Events Finance Hospitality Management Information and Communication Technology

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OVERVIEW

Business Process Outsourcing Cape Town leads in offshore jobs.

A

total of 222 500 jobs in Business Process Outsourcing (BPO) exist in South Africa, according to the 2016 BPESA Key Indicator Report. Of that total, offshore clients account for 32 500 jobs. Sixty-three percent of the offshore market is in the Western Cape where the provincial government has identified BPO as one of the six key sectors that can create jobs quickly. Business Process enabling South Africa (BPeSA) is the national organisation with representation in the nation’s three biggest cities. Because of the rapid growth of the industry, the organisation is undertaking a restructuring process with input from several bodies, including the Contact Centre Management Group and the National Department of Trade and Industry (dti). A new board of directors and CEO should be in place by the end of February 2018. BPO involves any internal businesses 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. 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. 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

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

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SECTOR INSIGHT A strong tertiary education sector attracts investors. a major advantage in attracting companies with sophisticated operations, such as BPO. A director of a British business intelligence company, S-RM, told the Weekend Argus that Cape Town’s position as a “knowledge nexus” was a major factor in deciding to open an office in the city. Other factors in favour of Cape Town are the relatively neutral accents, good infrastructure (financial and telecommunications) and the time zone being the same or close to Europe’s. The Department of Trade and Industry (dti) offers incentives to BPO investors. A base incentive is calculated on projected offshore jobs to be created and is awarded on actual offshore jobs created. The incentive has a twotier structure 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.


OVERVIEW

ICT French technology has come to Cape Town

A

new technology venture was launched when Cape Town hosted AfricArena 2017, a conference that aimed to be a “bridge between international technology stalwarts and African technology innovators”. A collaboration between Silicon Cape and La French Tech Cape Town, it brought together investors, venture capitalists, start-ups and entrepreneurs. The French government has officially designated the city as one of six global French Tech Hubs. Other hubs include Tokyo and San Francisco. French Tech Labs was launched as a fintech incubator at Century City in 2016. The same company earlier established Methys Labs. The new incubator offers mentoring support for innovators, connections to possible investors and a chance for selected candidates to travel to France. News of a R613-million investment by Dutch seed company Enza Zaden helped earn Stellenbosch a ranking of third among African cities in fDi Intelligence’s study of global biotech locations. The Dutch investors created Westcape Biotech in a joint venture with Expressive Research, a biotechnological company that works on cell culture and molecular diagnostics. Stellenbosch also has a strong suite in satellite technology. One of the winners in the annual Premier’s Entrepreneurship Recognition Awards in 2016 was Stellenbosch-based Praelexis, a data company. NewSpace Systems, a satellite start-up from Somerset West, was another winner. Stellenbosch University has a company, Innovus, which deals in technology transfer and development of inventions. Another popular area with new technology is fintech. Most major banks are feeling pressure from new companies who can connect with customers without having to build bricks and mortar infrastructure. They are responding by spending heavily on innovation. Barclays Bank have invested in a fintech incubator in Cape Town, Rise. There are six other Rise sites around the world, including New York and Mumbai.

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

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SECTOR INSIGHT • Stellenbosch and satellites are synonymous.

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 which they called EasyBank. A group of entrepreneurs, investors and developers has created the non-profit Silicon Cape Initiative to support the sector. 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. It runs three programmes, The Bandwidth Barn, VeloCiTi (enterprise and entrepreneur development) and Capaciti (tech skills and job placement). There are 2 000 ICT firms in the Western Cape and they have 17 000 employees. WESTERN CAPE BUSINESS 2018


LISTINGS

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

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

Department of Agriculture MEC: 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 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 4956 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 2018

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

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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 6481/2826 Fax: +27 21 483 5068 Web: www.westerncape.gov.za/dept/tpw

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 1111 | 0860 103 089 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 8149 Fax: +27 23 414 8105 Website: www.beaufortwestmun.co.za 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.pamun.gov.za EDEN DISTRICT MUNICIPALITY Address: 54 York Street, George 6530 Tel: +27 44 803 1300 Fax: +27 86 555 6303 Website: www.edendm.co.za

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LISTINGS Bitou Local Municipality Tel: +27 44 501 3000 Fax: +27 44 533 6198 Website: www.bitou.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 OVERBERG DISTRICT MUNICIPALITY Address: 26 Long Street, Bredasdorp 7280 Tel: +27 28 425 1157 Fax: +27 28 425 1014 Website: www.odm.org.za

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

Theewaterskloof Local Municipality Tel: +27 28 214 3300 Fax: +27 28 214 1289 Website: www.twk.gov.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 Cederberg Local Municipality Tel: +27 27 482 8000 | Fax: +27 27 482 1933 Website: www.cederbergmunicipality.co.za Matzikama Local Municipality Tel: +27 27 201 3300 | Fax: +27 27 213 3238 Website: www.matzikamamun.co.za Saldanha Bay Local Municipality Tel: +27 22 701 7000 | Fax: +27 22 715 1518 Website: www.sbm.gov.za Swartland Local Municipality Tel: +27 22 487 9400 | Fax: +27 22 487 9440 Website: www.swartland.org.za

Cape Agulhas Local Municipality Tel: +27 28 425 5500 | Fax: +27 28 425 1019 Website: www.capeagulhas.gov.za Overstrand Local Municipality Tel: +27 28 313 8000 | Fax: +27 28 312 1894

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PROFILE

Brown & Associates Brown & Associates is a dispute resolution and claims management firm focused on the construction industry. Our extensive network of industry participants enables our company to offer a high-quality service that gives our clients the edge they need; whether resolving disputes by Litigation arbitration, mediation or adjudication, managing contracts, preparing claims, or undertaking due diligence exercises. Brown & Associates is a market leader in Africa. We offer swift and cost-effective dispute resolution solutions. The firm offers highly specialist services in construction project account auditing, focused on loss recovery.

Services Services include: • Dispute resolution • Construction law • Dispute review boards • Early neutral evaluation • Expert determination • Claims preparation and management • Construction contracts • Dispute and conflict avoidance • Expert witness

Codes of conduct and ethics

Target markets

Chartered Institute of Building, Chartered Institute of Arbitrators, the Association of Arbitrators and the Royal Institute of Chartered Surveyors.

We are a proudly construction organisation, and we offer services to all stakeholders in the industry.

Staff Our highly professional and committed team is headed by Terry Brown LLM MSc FRICS FClarb FAArb MCIOB, a 30-year industry veteran with a wealth of industry knowledge and experience.

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CONTACT INFO Unit 186, Block F, Millenium Business Park, Edison Way, Century City, Cape Town, 7446 Tel: +27 21 555 4009 | Cell: +27 82 4457448 Email: info@brown-adr.co.za Website: www.brown-adr.co.za

WESTERN CAPE BUSINESS 2018


INTERVIEW

Cape Winelands District Municipality Executive Mayor Ald (Dr) Helena von Schlicht explains why eco nomic development must be linked to social upliftment.

What is your mandate as a district municipality?

Ald (Dr) Helena von Schlicht

In executing our legislative functions, we focus mainly on the rural areas. Our flagship is the firefighting service, which takes up a large part of our budget. We maintain certain identified roads on behalf of the province and we have a strong function in environmental health services, seeing to the hygiene of foodstuffs. We support tourism and sport where we bring tourists to the area and open up opportunities for our people. We support local economic development by creating an environment conducive to economic growth. Do you have other mandates? Something that is not covered in legislation is our social development function. We are fortunate that we have reserve funds. We decided when we took office that we would roll out socially orientated services, for example to look after our aged people and to support services to address social skills. Why the focus on social development?

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

WESTERN CAPE BUSINESS 2018

Economic development is dependent on the social health of our people, so we need to tackle both at the same time. We want to empower people and enable them to enter the economy. If they are healthy, they can participate. How important was the award at the Audit Excellence Awards? It was of paramount importance, firstly to inform the public that we absolutely support clean governance. The award underlines this in strong terms. Secondly, it recognises the hard work of our staff. How was it achieved? It was no easy task and took real team effort, every staff member bought into it. We are currently preparing ourselves for what we hope will be our fourth clean audit; this will be a huge achievement. Our Finance division works very hard to ensure compliance. How do you develop your Integrated De velopment Plans (IDPs)?

We host two IDP stakeholder engagements with community organisations, NGOs and businesses from all sectors annually.

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INTERVIEW

Attendees can reflect on the previous meetings, ask critical questions, and say what they need in the IDP going forward. It is a five-year process, but is revised every year. A big priority is dealing with social ills such as alcohol and drug abuse and we support NGOs dealing with these issues.

culinary sector and nature reserves. We have places that people really want to visit. We support tourism activities that encourage economic growth in the area. We work very closely with Wesgro, the provincial investment agency.

Do you have good attendance at these meetings?

Every local municipality has its own Local Tourism Association (LTA), and the district co-ordinates a forum every month where we work together. The LTAs are extremely energetic and active.

There is huge progress and this year was the best yet in terms of attendance. About 200 people attended at both Worcester and Paarl. It means people are taking responsibility for what is going on in their community and democracy is well and alive. How do you encourage investment? We are very fortunate in that we have excellent products to sell; our fruit, wine, the environment,

How important is tourism?

Is tourism supporting small and medium enterprises?

One example of how tourism is supporting small enterprises is the Dwarsrivier Valley Tourism, which is really focussed on brining tourism to this rural area. They have a little shop that sells handcrafts, helping people make a living from tourism.

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INDEX

INDEX Absa............................................................................................................................................................................................................97, 106-109 Accelerate Cape Town....................................................................................................................................................................................... 52 Airports Company South Africa (ACSA): Cape Town International Airport.......................................................30, 41-43 Air Products.............................................................................................................................................................................................................. 87 Black Management Forum (BMF)............................................................................................................................................................. 112 Brown & Associates............................................................................................................................................................................................125 Cape Chamber of Commerce & Industry................................................................................................................................. 4, 46, 54 Cape Peninsula University of Technology (CPUT).......................................................................................................................... 118 Cape Town International Convention Centre (CTICC)...................................................................................................................48 Cape Winelands District Municipality...............................................................................................................................................2, 126 Cape Winemakers Guild................................................................................................................................................................................... 82 College of Cape Town................................................................................................................................................................................. 9, 116 Maritz Electrical............................................................................................................................................................................................44, 102 Nedbank..............................................................................................................................................................................................................58-63 Old Mutual..........................................................................................................................................................................................................64-67 Pele Green Energy................................................................................................................................................................................................ 92 Petroleum Agency South Africa.................................................................................................................................................................. 88 Radisson Blu Hotel................................................................................................................................................................................................ 39 SBS Tanks.......................................................................................................................................................................................................................7 Selfmed...........................................................................................................................................................................................................25, OBC South African Table Grape Industry (SATI)............................................................................................................................................ 80 Vodacom................................................................................................................................................................................................... 68-73, IBC Wesgro.................................................................................................................................................................................................................. 26-29 West Coast Business Development Forum........................................................................................................................................ 113 West Coast District Municipality................................................................................................................................................................IFC Western Cape Business Opportunities Forum (WECBOF).......................................................................................................... 56 Western Cape Department of Economic Development and Tourism................................................................................12 Western Cape Department of Transport and Public Works................................................................................................21-24 Western Province Cricket Association (WPCA).............................................................................................................................32-35 WESTERN CAPE BUSINESS 2018

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Cederberg Municipality Blessed by nature, rich in heritage and warm-hearted people, this a great place for tourism all year round. Cederberg boasts a beautiMATZIK AMA ful and varying landscape that includes mountains, valleys and coastline with a multitude of attractions Vredenda l 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 Clanwillia m dam wall is being raised, which will soon provide CEDERBERG more water. Unutilised fertile lands can then be irrigated to produce high yields to boost agricultural output. BERGRIVIER The Cederberg Rocklands is among the top five Vredenberg bouldering destinations in the world. Piketberg Make your Business Ready to move with the times www.cederbergmunicipality.co.za SALDANHA

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A Ready Business waits for nothing

Broadband Connect Wireless Lite

ABAY Ready Business needs to be connected all the time and be able to respond at a moment’s Moorreesbur g notice. Slow connectivity and download speeds are just not an option. Speed drives success. Vodacom Broadband Connect Wireless Lite delivers fast, wireless broadband speeds so that your SWARTLAND Matzikama Municipality business can be ready to deliver that much faster to your customers.

Approximately 240km north of Cape Town, the Matzikama region Langeber g has abundant water and fertile soil What is Broadband Connect Wireless Lite? 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 Router, dongle and SIM included

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Zero to 15Mbps and beyond

At an average speed of 15Mbps, All price plans include a Huawei HG659 Vodacom Broadband Connect Wireless Router, sim a n d dongle so you’ll have Lite connects multiple devices for instant all t h e h a r d w a r e y o u need right from downloads, file sharing and collaboration the start. We’ll deliver everything you need Bergrivier Municipality across the office faster than the average to yoursuited doorstep to for you to do a quick selfSituated north of Saldanha Bay, the Bergrivier region is particularly ADSL or 3G connection. [The service has installation. agriculture. Livestock, fruit, vegetables and fl owers are farmed in the area and there are a broad, national footprint and i s opportunities in kelp farming available in most major metros a s we lland processing. as in a number of outlying areas.] factory and smaller salt-reclamation works are indicators of The large cement

business development opportunities related to mining. No wires, no waiting for lines www.bergmun.org.za The system is wireless, there’s n o waiting for line installations. Your business can literally cut the cord from the frustration of having to wait. Just switch it on and be Ready to connect the same day. It’s one of the fastest ways get your Iftoyou have your eye on growth, office the connectivity it needs without you should invest on the West Coast! having to waste time.

Ideal for small and home businesses The solution has been specifically designed for small businesses as it delivers the perfect combination of connectivity, speed and affordability. The solution is fully scalable and as an option basic C loud S ervices, Conference Connect and VoIP can b e added to the base Internet service offering.

Find out more at www.westcoastdm.co.za

Be Ready to be up and running in no time. We’ll have you set up and running in just 48 hours after approval of your order.


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Western Cape Business 2018  

The 2018 edition of Western Cape Business is the 11th issue of this highly successful publication that, since its launch in 2005, has estab...

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