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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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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...

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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