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2021 EDITION

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

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An account that grows with your business In a move aimed at transforming the banking experience for SMEs, Absa is launching a brand-new transactional account called Business Evolve Zero. Specifically designed for sole proprietors and start-ups, it comes with no monthly account fee. Many entrepreneurs will have tales about how challenging it is to get a new business up and running. Aside from the usual funding issues, a great deal of business owners might be specialists in their own fields, but come up short when it comes to the financial management skills needed to become a successful start-up. This is a familiar story; one that Absa is about to evolve. The Absa Business Evolve Zero Account offers more than just zero monthly fees. At its heart, is a business management and accounting solution called Cashflow Manager. As an-endto-end digital offering, Cashflow Manager empowers even novices to take control of their business finances like never before. Standard features include the ability to create cost estimates and generate invoices. Invoices will automatically be picked up when they are paid, to deliver reports on outstanding monies. Cashflow Manager delivers a bird’s eye view of your company’s finances, and even helps proprietors to keep track of their own money versus that of the business. It also offers payroll services, further reducing an SME’s reliance on external resources. Realtime analytics and reporting can be accessed with a few clicks via Absa Online. Underscoring Absa’s commitment to providing world-class digital solutions, the Business Evolve Zero Account offers entrepreneurs the convenience of online banking, 24/7; with the

added peace of mind that a banker is always available if they require human assistance. Improved analytics and insights provided by Cashflow Manager enable Absa to better support SMEs, by preemptively offering bespoke transactional, savings and credit solutions for the business. The Business Evolve Zero Account is a cost-effective pay-as-you-transact solution that offers unlimited free Absa-to-Absa debit orders and Absa-to-Absa interaccount transfers. Fees for EFTs, debit card swipes and external debit orders are low. The account comes with a debit card, a savings pocket and an investment facility called Liquidity Plus. Designed for businesses with an annual turnover of less than R5 million, the Absa Business Evolve Zero Account also simplifies VAT, allowing entrepreneurs the ability to generate reports to assist with filing returns to the South African Revenue Service. The SME segment is a core focus area for Absa, and if the Business Evolve Zero Account is anything to go by, it seems that they’ve hit the nail on the head. More Business Evolve Accounts are in the advanced stages of development and are said to be released during the course of 2021. These new accounts will cater for the needs of bigger enterprises, laying the groundwork for businesses to have one account that evolves with their growth – starting from day one. The Business Evolve Zero Account is available on Absa Online, the Absa Banking App and at selected branches. Contact us on 0800 227 592.


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The Cape Chamber is the voice of business in the region, a role it has fulfilled without fail since 1804. In addition to this leadership role, we also serve and enable business, allowing our members to perform at their optimal best. When you belong to the Chamber, you become part of an esteemed network that is geared to promote your success. Members enjoy a substantial number of benefits, as well as receiving expert support for a wide range of issues. Our services include business advice, extensive networking opportunities, seminars & events, training at all levels, international trade support and more.


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CONTENTS

CONTENTS Western Cape Business 2021 Edition

Introduction Foreword 7 Western Cape Business is a unique guide to business, tourism and investment in the Western Cape.

Special features Regional overview of the Western Cape

8

The Western Cape’s lead in technology is giving it the edge in a number of other sectors as it sets its sights on improving energy supply and rail transport.

The agricultural export basket is expanding 12 The Western Cape’s latest agricultural export is a hi-tech machine.

Cape Town is South Africa’s asset management capital

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The strength and diversity of the Cape’s financial services underpins a vibrant sector.

Economic sectors Maritime and fishing

26

Oil and gas

30

Energy

34

Manufacturing

36

New opportunities are opening up in manufacturing and servicing. Gas finds off the Southern Cape coast have vast potential. The Western Cape wants a bigger role for cities in the energy sector. TFG plans to double manufacturing output. WESTERN CAPE BUSINESS 2021

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ABC understands wood recycling

With a comprehensive understanding of the operational challenges of wood recycling in South Africa, ABC has established state-of-the-art facilities to serWood chipper services vice, repair and rebuild wood chipper equipment of any brand size. ABC’s are65XP operated by a • Agricultural: orchard / vineyard recycling and A small selection of Bandit wood chippers (from leftand to right): Model 75XPfacilities Engine; Model PTO and the Intimidator™ 12XPC. remarkable team of very experienced and suitably mulch spreading qualified engineers, technicians and artisans. • Biomass for generation of heat or electricity Company Slogan An equally remarkable team of field-service • Site clearing and preparation Become an maintenance owner of a Bandit Africazones Biomass Company is the authorised dealerdeliver technicians repairs, and chipper parts • River rehabilitation in riparian for Bandit Industries in Southern Africa. All existing and new customers are welcome toflclients’ sites totooptimise uptime and efficiency. • Workshop, field services, parts spares ABCand has built up a substantial eet of Bandit contact us if they want to become the chippers for use by the company as part • Operator training services: wood SETA-certified owner of the top-class range of Bandit but most ABC alsoexperienced equipment. Bandit Industries have delivered The • Manufacturing workshop of our wood recycling services, Company Slogan

offers a whole range of Bandit wood chippers successful recycling solutions to basically wood in Africa to clients who want to invest in the Banditchips range. producer every corner of the planet. The X-factor in wood chippers Bandit chippers are designed with quality, Dimensional chips are produced by the removal production and longevity in mind. Hand-fedwood A commitment to support chipperswood are mounted on custom-built, SABSof alien invasive trees Biomass in riparian zones,ispreviously ABC is the authorised dealer for Bandit chippers Africa Company fully equipped approved trailers. Owning a Bandit wood and stockedABC, to service and repair any has Bandit asofimpossible. however, now in Africa. Bandit combines first-world and chippertechnology will always put you in deemed the front seat anywhere in South Africa. own reliable woodThis chipping operations. the knowledgemachine and technology to get theWe job experience with third-world functionality. makes a fully-equipped parts warehouse (650m²), In many cases, the Bandit wood chipper setsdone. These wood chips are then used manufacturing department as well as field the benchmark for other brands in the wood services to ensure that parts areasalways readily applications a greenchipping industry. We are ready to supply thein agri-industrial available andtoour own,for as either well as heat our clients’ right Bandit wood chipping solution with adviceer alternative coal or Bandit wood chippers are not out of commission and aftercare to your doorstep. All existing and electricity production. longer than they have to be. new customers are welcome to contact us to become the owner of Bandit equipment.

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Geographical footprint 9

WESTERN CAPE BUSINESS 2020

ABC is located in Worcester (Western Cape), Kirkwood (Eastern Cape), Nelspruit (Mpumalanga) and Upington (Northern Cape). We operate in all nine provinces in South Africa and also across the borders into Sub-Saharan Africa, including Namibia, Botswana, Zimbabwe, Mozambique, Zambia, Malawi, Tanzania, Kenya and Nigeria. ■

www.abc.co.za Head Office: 023 342 1212 Videos available: Youtube: “Africa Biomass Company”


CONTENTS

Construction and property

38

Tourism and events

39

Education and training

40

Banking and financial services

44

Development finance and SMME support

45

Business Process Outsourcing

46

The eastern edge of the Cape Town CBD is to be transformed. Operators are hoping the Lions will roar.

Tertiary campuses in Mitchells Plain and Khayelitsha are growing. The Western Cape has the digital edge.

Entrepreneurs are saving the environment.

An overview of the Western Cape Provincial Government departments.

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

47

References Key sector contents

24

Index

48

Overviews of the main economic sectors of the Western Cape.

ABOUT THE COVER: Credit: Anton Swanepoel. The drilling rig Deepsea Stavanger has passed Table Mountain several times in recent months, on its way from its base in Norway to the successful Brulpadda and Luiperd prospects off the coast of Mossel Bay. Total E&P South Africa (with a 45% share) is the operator of the block. National government has announced it intends passing an Upstream Petroleum Bill in support of the exploration of oil and gas.

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FOREWORD

Western Cape Business A unique guide to business and investment in Western Cape.

Credits Publishing director: Chris Whales Editor: John Young Managing director: Clive During Online editor: Christoff Scholtz Designer: Simon Lewis Production: Aneeqah Solomon Ad sales: Gavin van der Merwe Sam Oliver Jeremy Petersen Gabriel Venter Vanessa Wallace Shiko Diala Administration & accounts: Charlene Steynberg Kathy Wootton Distribution and circulation manager: Edward MacDonald Printing: FA Print

T

he 2021 edition of Western Cape Business is the 14th 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. The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature on thriving agricultural exports gives insight into the details of what fruits and wines go where. An interview with the Port Manager of the Port of Cape Town provides more understanding of the scale of the logistics operation that is a major port. Another special feature examines the City of Cape Town as a national headquarters for the thriving asset management sector. The cover picture reflects an exciting new find of gas condensate off the south-eastern coast, a potential game-changer for the Western Cape and South African economies. This new development is covered in the overview of the oil and gas sector. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.westerncapebusiness.co.za. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title and the new addition to our list of publications, African Business, which was launched in 2020. ■ Chris Whales Publisher, Global Africa Network Media | Email: chris@gan.co.za

DISTRIBUTION

Western Cape Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.

PUBLISHED BY 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

Member of the Audit Bureau of Circulations 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 | Aerobotics, Concor, Fancourt, False Bay TVET College, Gemini Marine, Gestamp Renewable Industries (GRI), Lawhill Maritime Centre, Oceana, Paardekraal East Wind Farm, Petroleum Agency SA, Port of Cape Town, Radisson Hotel Group, Anton

ISSN 1816 370X Swanepoel, TFG, The Westin Cape Town, VDMMA (Van der Merwe Miszewski Architects), Vinpro. 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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A REGIONAL OVERVIEW OF THE

WESTERN CAPE The Western Cape’s lead in technology is giving it the edge in a number of other sectors as it sets its sights on improving energy supply and rail transport. By John Young

C

ape Town’s status as “Africa’s Tech Capital” gives the city-region the basis for leadership in a range of other sectors such as asset management, financial services, business process outsourcing and others. Neighbouring Stellenbosch is advancing its reputation for technological innovation and the output of the region’s four universities and six TVET colleges ensures that the tech sector has the necessary human capital. There are 22 active incubators and accelerators in the region which provide networking and marketing opportunities and links to funders and markets. The City of Cape Town has installed 848km of fibre-optic cable and the sector supports more than 40 000 jobs with established brands such as Amazon and Panasonic coexisting with startups such as Luno,

WESTERN CAPE BUSINESS 2021

Yoco, Jumo and SweepSouth. Cape Town hosts more than half of all startups in South Africa. The Western Cape is one of nine provinces of the Republic of South Africa. South African provinces do not have the kinds of powers enjoyed by states in federal entities such as the US or Nigeria. Health, education and traffic have traditionally been the biggest components of provincial authority. The priority list of the Western Cape Provincial Government, however, includes energy and transport. The province and the City of Cape Town are lobbying national government for a greater role for municipalities in the generation and distribution of energy. The potential of renewable energy is being realised through the national independent power producer programme and

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SPECIAL FEATURE there is a strong lobby to build a gas-to-energy plant in the province. The new Special Economic Zone for Green Technology in Atlantis is attracting investment in renewable technologies. In 2018 the City of Cape Town launched a resilience assessment, the first step in a larger process. The Rockefeller Foundation chose the city as one of 100 around the world in which programmes would be tested to improve the ability of the city to withstand shocks such as severe droughts. The city wants to expand the lessons it learnt in the period of water shortage into other areas such as energy generation and energy efficiency. The Western Cape Provincial Government is also investing in resilience. A market intelligence report covering energy, renewable energy, water and waste was created by Green Cape to map the assets and challenges in these areas. In addition to trying to attract green investment into the province, the province is working for improved regulations related to small-scale embedded generation (SSEG). The City of Cape Town also wants to be able to rent out its infrastructure to a power producer who can supply a user via that infrastructure. This is known as “wheeling”. A start was made with the Darling wind farm, but more work needs to be done on the legislative framework. Much of this work is done by a unit called the Sustainability Energy Markets within the Energy Directorate. Another area of focus for this group is to investigate energy use by low-income households. The Western Cape is lobbying hard for Saldanha Bay to be a site for a gas-to-power plant. If a gas plant is built at Saldanha, then it could be a catalyst for the use of gas in many other sectors such as manufacturing and residential. The Cape Peninsula University of Technology’s Energy Institute is a leader in research in the field of electricity. The South African Renewable Energy 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.

Ease of doing business In similar vein to the argument for greater involvement in energy issues, Premier Alan Winde has argued that the control of the railways that serve greater Cape Town should be more localised. He cites a deal signed in the city of George between the national and provincial transport ministers to improve the system as an example of the kind of cooperation which is needed. Energy and transport are keys to being able to do business, and that is the focus of another provincial initiative, the Red Tape Reduction Unit. Successful at a provincial level, the plan is to now set up similar units at municipal level. Covid-19 created serious backlogs at the Port of Cape Town but the problems predated the health crisis. In December 2019, the Western Cape Department of Economic Development and Tourism (DEDAT) convened a meeting for every kind of port user, from exporters to logistics companies and for the various divisions of Transnet, the tax authority and the City of Cape Town. In 2019 the Port of Cape Town received 510 ships at the Container Terminal but it could have had many more if turnaround times were better. All parties are working together to find a solution, which will include better coordination of delivery schedules and more cranes. Cranes able to work in high winds are being tested.

Tourism challenges The hospitality sector suffered a huge blow from the effects of the Covid-19 global lockdown. As travel slowly picks up, hotel groups, lodges and bed-and-breakfasts are starting to attract interprovincial travellers. In time, international travel will follow but what of the meetings, incentives, conferences and exhibitions (MICE) sector? The economic impact on gross geographic product of the Cape Town International Convention Centre alone in 2018/19 was R4.5-billion (Cape Town Central City Improvement District). Wesgro’s

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WESTERN CAPE BUSINESS 2021


SPECIAL FEATURE Convention Bureau signed 52 events or conferences in the course of 2019/20 but of course most, if not all, of these events will not take place. The Radisson Hotel Group has come up with “Hybrid Solutions” as a response to the “new normal”. Incorporating Hybrid Rooms and Hybrid Meetings, the idea is to offer virtual participation options and hybrid formats for small local gatherings, while also broadcasting to remote attendees and satellite locations. Hotels will offer teams to set up the equipment. Park Inn by Radisson Newlands (pictured on the previous page) is one of the group’s six hotels in Cape Town.

Investment The province has a dedicated investment agency, Wesgro. The Investment Promotion Unit of Wesgro has been working with various regions within the Western Cape to attract investment and accelerate exports. Seminars have been held in the Cape Winelands, the West Coast and the Garden Route. In 2019/20, the biggest investments were in renewable energy and manufacturing. Other important sectors are agro-processing, aviation, business services, education and training, financial services, real estate, ICT, light manufacturing, oil and gas, timber, tourism, waste beneficiation and clean energy. Encouraging investment in Cape Town has been recognised as something that needs a fulltime office and a strategy. Invest Cape Town is an

agency of the city that works to create the best possible conditions to attract investors. Areas of focus include broadband access, energy security, the reduction of red tape and improving air access to the city.

Economy Finance, business services and real estate combined contribute 28% to the gross domestic product (GDP) of the Western Cape. The financial services and insurance sector are key components of the economy. Many of South Africa’s biggest companies have their headquarters in Cape Town. Asset management and venture capital companies have been growing steadily. Although agriculture only accounts for 4.3% of GDP on its own, the sector is responsible for the fruit and vegetables that contribute to agro-processing which accounts for nearly 40% of the province’s export basket. (Agroprocessing 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 strong, but the Chinese market is becoming increasingly important. The province has a diverse manufacturing sector ranging from textiles, clothing, footwear and furniture to coke and refined petroleum products. Excluding agro-processing, other manufacturing makes up 6.9% of GDP. ■

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- ART & DESIGN - BEAUTY THERAPY - BUSINESS STUDIES - EDUCATION & TRAINING - ELECTRICAL ENGINEERING

- HAIRCARE - HOSPITALITY - INFORMATION COMMUNICATION TECHNOLOGY - TRAVEL & TOURISM

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086 010 3682 - 021 404 6700 - info@cct.edu.za College of Cape Town - Inspiring Minds CCT_Official

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SPECIAL FEATURE

The agricultural export basket is expanding The Western Cape’s latest agricultural export is a hi-tech machine.

Credit: Aerobotics

O

f the 37 trade agreements facilitated in 2019/20 by Wesgro, the Western Cape’s tourism, trade and investment promotion agency, 25 were in agro-processing and agribusiness and a further three were in the fast-moving consumer goods (FMCG) sector. The total value of these agreements was R3.08-billion and 973 jobs were added to the Western Cape economy. Examples included a deal in Germany for Cape Dried Fruit Packers (R350-million), in Ethiopia for Good Harvest Market (R700million), in Ghana for M’hudi Wines (R4-million) and the R200million contract that Southern Right Foods signed in Mozambique. The last-named company trades as Walker Bay Spice and also exports to Australia, Bahrain, Belgium, Botswana, Dubai, Ghana, Luxembourg, Malaysia, Namibia, the Netherlands, Qatar and the UK. Total South African agricultural exports reached R175-billion in 2019 with about 40% going to other African countries and 25% to Europe. Fresh fruit accounted for about R50-billion. Seven of the top 10 exports from the province are agricultural or agro-processed products. As Wesgro notes, the Western Cape is responsible for: • Almost half of South Africa’s agribusiness exports. • About 70% of South Africa’s beverages exports. • About 85% of South Africa’s fisheries exports. Berries are a growing subsector and two-thirds of production occurs in the Western Cape. More than 70% of the crop is exported and the

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major production companies are Berryworld South Africa, United Exports and Haygrove SA, an affiliate of UK-based Haygro. Berries thrive between George and Swellendam and sales of chippers have grown because blueberries have to be vigorously pruned. There is plenty of scope for exports to grow. Current annual exports are 13 500t compared to over 200 000t for table grapes and about 300 000t for apples (South African Berry Producers’ Association). Once producers pass muster with Chinese import authorities, volumes can be expected to grow. A n o t h e r s u b s e c to r to experience rapid export growth is oranges. As a source of vitamin C, oranges grew in popularity as the Covid-19 pandemic spread. South Africa


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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.

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SPECIAL FEATURE is the world’s second-largest citrus exporter, after Spain, and the number 11 in the world in terms of production. Citrus exports earned South Africa about R20-billion in 2019. Assessed independently from the country, the Western Cape is the world’s fifth-largest exporter of citrus fruits as it is responsible for 62% of the nation’s volumes. Oranges are the province’s number one citrus export (54% in 2017) and soft citrus (19%) is growing steadily. Europe remains the most important market but Asia and Oceana markets grew from 34% in 2008 to 42% in 2017. The top five countries are the Netherlands, the UK, Russia, the UAE and China. By contrast, flower growers were badly hit by the effects of the global shutdown. The Western Cape has a strong fynbos sector. Normally, Europe accounts for 80% of exports. National beef exports increased from 8 292 tons in 2001 to 31 888 tons in 2018 with the largest areas of growth in Muslim countries. The Western Cape contributes 15% of national beef output. The Covid-19 lockdown had a big impact on wine exports and not only because a liquor-export ban was in place for five weeks. Logistics at the Port of Cape Town were reduced to a crawl and with fresh fruit and vital supplies taking priority, wine exporters were at the back of the queue. Within South Africa, a sophisticated logistics chain can get fruit from harvest to consumer in 40 days (Freight, Logistics and Warehousing). A digital system is to be introduced by the Perishable Products Export Control Board (PPECB) which, along with e-certification launched by the Department of Agriculture, Land Reform and Rural Development, should enhance efficiencies. The Fresh Produce Exporters’ Forum (FPEF) and the Department of Science and Innovation are exploring improved packing and cold-storage methods. South African winemakers are aiming for better quality instead of greater volumes. Which is not to say that volume is being ignored. Wine exports to Angola and China have doubled. In the four years to 2017, wine exports to China reached 18.2-million litres, an increase of 109%. Wesgro and WOSA (Wines of South Africa) are cooperating on the Chinese market. A 2006 agreement, the SADC Economic Partnership Agreement, gives produce from the region full or partial exemption from duties on exports into the EU. The three biggest markets by value and volume are the UK, Germany and the Netherlands. The UK is likely to sign a similar agreement, post-Brexit. South Africa produces about 4% of the world’s wine. The wine industry contributes R36-billion to the country’s gross domestic product (GDP) and employs nearly 290 000 people. Vinpro is the wine industry organisation which represents 2 500 South African wine grape producers, wineries and wine-related

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businesses. There are over 3 500 wine producers in South Africa, with the large majority located in the Western Cape.

Agri-tech exports The Western Cape is not just a leader in products that grow in the ground, but it is also a world leader in products that hover above the ground. Drone and data specialist Aerobotics has more than 900 clients in 18 countries who have signed up for orchard monitoring, yield and harvest projections and pest and disease management. The drones can also be deployed to pick out individual trees that are classified as “problem trees”. Aerbotics’ Yield Estimation Pack age for citrus, which was launched in 2019, gives reports on fruit size and colour distribution ahead of the harvest season and projections on yield. The Cape Town-based company, which featured in an article in the Arena Holdings publication Food Basket in 2020, was founded in 2004 as a drone manufacturer and evolved into a data provider. Another digital innovation for exporters was launched in September 2020 in the form of the Cape Export Network. CEN, a joint initiative of the Western Cape Provincial Government, Wesgro and Wines of South Africa ( WoSA), is a platform that connects wine producers, buyers and importers. ■


A more resilient and responsible SA wine industry

FOCUS

#SaveSAWine helped create awareness during lockdown.

T

he South African wine industry will rise up again following one of the toughest years yet, to be even more resilient, resourceful and responsible. The industry had just started recovering from a three-year drought when the Covid-19 national lockdown was implemented, banning all exports and local sales of alcohol for a large part of 2020. “We lost close to R7.2-billion in direct revenue, which left many producers, wineries and related businesses in dire straits, many more individuals without employment and the industry with a large surplus of uncontracted wine,” says Vinpro MD Rico Basson. The road to recovery will be long and hard, but the wine and wine tourism industries remain resilient, celebrating milestones along the way. “Through sound advocacy with government, Vinpro and our industry partners played our part to reopen trade and tourism activities and secure financial relief for certain segments of the industry,” Basson says. Driving exports The #SaveSAWine social media campaign helped create an awareness of South Africa’s exceptional wines across the globe, while Wines of South Africa and Wesgro continuously drive various initiatives to grow exports. Wine tourism workers received financial support from the Western Cape Department of Agriculture, while Vinpro presented a series of direct-to-consumer workshops and launched a wine tourism skills audit which will guide further development and training in 2021. Wine grape producers and wineries are also

improving efficiencies and re-evaluating their business models, while Vinpro and its industry partners are facilitating programmes to balance supply to bring about greater price stability. “For the wine industry to be sustainable, it also needs to drive responsible production, trade, marketing and consumption of alcohol,” Basson says. Apart from comprehensive educational programmes and campaigns by the alcohol industry body Aware.org (Association for Alcohol Responsibility and Education), the industry has also joined hands with government, civil society and labour to change behaviour through targeted interventions which address foetal alcohol spectrum disorder, drinking and driving or walking, underage drinking, community formalisation and binge drinking. About Vinpro Vinpro represents 2 500 South African wine grape producers, cellars and wine-related businesses, while providing strategic direction, rendering specialised services and driving people development.

Contact details Vinpro Tel: +27 21 276 0429 | Email: info@vinpro.co.za | Website: www.vinpro.co.za

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WESTERN CAPE BUSINESS 2021


SPECIAL FEATURE

Cape Town is South Africa’s asset management capital The strength and diversity of the Cape’s financial services underpins a vibrant sector.

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he venue for the 2019 Raging Bull Awards for collective investment schemes was the Cape Town International Convention Centre – which meant that the winners did not have to travel far to collect their trophies. Cape Town is South Africa’s asset management capital. Cape Town also, according to the Global Financial Centres Index (GFCI), ranks second in Africa in 2020 (behind Mauritius) in competitiveness as a financial centre. The ranking is an aggregate of indices covering five things: business environment, financial sector development, human capital, infrastructure and reputation. Of the 20 finalists named for the 2020 Morningstar South Africa Fund Awards, 13 have their headquarters in the Cape. Seven of the top 10 managers in the Plexcrown Ratings of 2019 are based in Newlands (MiPlan), Victoria & Alfred Waterfront (Allan Gray, pictured on the next page), Claremont (Coronation), Bellville (PSG and Boutique CI), Pinelands (Old Mutual) and Westlake (Prescient). The diversity of locations in Cape Town mirrors the range of products offered. South Africa now has over 1 000 registered unit trusts through which investors have access to money markets, domestic equities, bond markets and overseas markets, among others. The categories in which awards are presented give insight into the range. The fund categories (and Cape Town finalists) for the 2020 Morningstar awards were: CATEGORY

WESTERN CAPE FINALISTS

Best Aggressive Allocation Fund

Kagiso Balanced

Best Bond Fund

Allan Gray Bond

Best Cautious Allocation Fund

Kagiso Stable

Best Flexible Allocation Fund

Coronation Optimum Growth

Best Moderate Allocation Fund

Sanlam Managed Moderate Fund of Funds

Best South African Equity Fund

Kagiso Equity Alpha

Best Fund House (Larger Fund Range)

Investec Asset Management (now Ninety One) and Sygnia Asset Managers

Best Fund House (Smaller Fund Range)

Fairtree Asset Management and Kagiso Asset Management

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T h e 2 0 1 9 R a gi n g B u l l Awards, which were held in January 2020, awarded “South African Manager of the Year ” to M iPlan and “O ffshore Manager of the Year” to Nedgroup Investments. Runnersup in the South African category were Ninety One and Prescient. Other Raging Bull winners for outright performance over three years were Kagiso Equity Alpha (G eneral Equit y Fund), Truffle SCI Income Plus (Interest-bearing Fund), BlueAlpha BCI (Global Equity General Fund), and Fundsmith (Offshore Global Equity Fund). For riskadjusted performance over five years the winners were Fairtree, Kagiso Protector, Long Beach Flexible and Platinum Global. A global trend also present in the Western Cape is the growth of the smaller company. Writing for citywire. co.za in 2020, Patrick Cairns noted that the market share of South Africa’s seven largest managers slipped from 64.8% in 2014 to 60.7% in 2019. Cairns highlighted the leap in assets under management (AUM) of Cape Town-based Prescient in the five years to 2019 – a noteworthy increase of 178.1%.


SPECIAL FEATURE

Another trend is the growth in offshore investing. The Business Times in the Sunday Times reported in 2020 that the all-share index of South Africa’s primary stock exchange, the JSE, had grown by less than 5% in five years. By comparison, the US’s S&P 500 was 72% higher. However, Jacques Plaut of Allan Gray, which manages more than R500-billion, is quoted saying, “If the crowds are extremely fearful of something, don’t sell SA Inc without evaluating the stocks on the facts and the merits of each case.” The stellar performance of the Capitec Credit: VDMMA (Van der Merwe Miszewski Architects) share price is noted, as is the fact that some companies will benefit from a weak rand. More recently, the city Repor ting on a recent analysis of the global asset has become home to several management sector from the Boston Consulting Group, financial technology (fintech) Cairns flagged alternatives as an area of future growth. BCG i n c u b a to r s : a c c o rd i n g to anticipates alternatives rising to nearly 50% of revenues Tracxn there were 154 fintech in four years, up from less than a fifth of AUM which they star tups in Cape Town in currently constitute. 2019 and French Tech Labs Old Mutual Alternative Investments (OMAI) invests in operates out of Century City. infrastructure, private equity, affordable education, housing The region’s three tertiary and fund of funds. The OMAI IDEAS Fund is a regular investor in institutions provide a sound renewable energy projects. educational base for the financial sector, with a more specific business focus being Contribution to GDP afforded by the University o f C a p e To w n G r a d u a t e School of Business (GSB), the The financial services sector was the single largest contributor to University of Stellenbosch regional gross domestic product (GDP) in 2016. With a value of Business School (USB) and R43-billion in that year, a consistent growth rate over a five-year the School of Business period of 3.8% and inward investment of more than R2-billion and Finance (SBF) at the in the same period, the financial services sector punches above University of the Western its weight. Cape. TSIBA Business School This is also true nationally, where Cape Town’s share of offers undergraduate and national employment in the financial sector is about 20% and postgraduate business the contribution to gross value-added (GVA) is 15%. q u a l i f i c a t i o n s a s we l l a s Cape Town asset managers are operating in an area informal shor t courses in that has historically been strong in banking and finance. leadership, entrepreneurship The city is host to the headquarters of large insurance and commerce. TSIBA stands companies such as Metropolitan, Old Mutual Africa, Santam, for Tertiary School in Business Direct Axis and financial services groups such as Sanlam, Administration. ■ PricewaterhouseCoopers and Allan Gray.

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WESTERN CAPE BUSINESS 2021


ADVERTORIAL

see money differently

NEDBANK’S INNOVATION JOURNEY TAKES CLIENTS INTO THE 21ST CENTURY Dr Fayzel Omar Provincial General Manager Nedbank Business Banking, Western Cape

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aking into consideration the everevolving nature of the banking industry, Nedbank Provincial General Manager of the Western Cape, Dr Fayzel Omar, 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 sector. Omar is passionate about his vision for Western Cape business owners and entrepreneurs seeking a unique banking experience and explains how Nedbank will support and grow businesses and retail clients in the Western Cape. To support the vast geography of the Western Cape his distribution cuts across eight regions, each led by skilled regional managers and supported by functional teams and product specialists across the integrated business channels of Business Banking, Small Business, Retail and Personal Banking. Nedbank’s decentralised Business Banking Cluster has 70 business managers located across the province. They specialise in commercial industries and the agricultural sector to support all sectors of the Western Cape economy.

Working with communities is entrenched in our values through community development, skills development, education and job creation …

‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant 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. As your bank, we understand business banking, and remain committed to drawing on our expertise to support clients by adding value with innovative solutions through engaged people and localised structures. We know that success in business is about partnerships, and that is why we put the building of deep, lasting, value-adding relationships at the centre of


… we understand business banking, and remain committed to drawing on our expertise to support clients by adding value with innovative solutions …

everything we do. This means your goals are our goals, your vision is our vision and your success is our success. Through our bigger-picture banking approach we immerse ourselves in your business and your industry so that we are an extension of your team, with a full understanding of your business requirements. This enables us not only to provide you with the banking solutions you need, but also to give you a bigger-picture view of how each of our products connects to create a framework that yields maximum impact across every facet of your business and beyond. When you add to this the insights and expertise available to you across Nedbank’s extensive network of multidisciplinary specialists, you know that you have a banking partner who is walking with you throughout your business journey. '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. And the innovation journey continues, ensuring greater value for clients. The Nedbank Money app allows clients to manage accounts, make payments and change their credit or debit card settings

from their smartphone. The Money app also allows clients to make instant payments to anyone on their smartphone’s contact list, regardless of whether the recipient is a Nedbank client.

Nedbank’s payments app, Karri, simplifies school payments to help teachers, parents and children. The Karri app makes payments to schools for events such as civvies days, school trips and other fundraising activities easy and secure, using a built-for-purpose mobile payment application. Nedbank’s interactive ATM – a first for Africa

– gives clients access to live teller services over 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.’

All of which are ways in which Nedbank continues to simplify and make banking for businesses and communities work for their good. Should you be interested in taking your business to its next level and improving staff engagement, and if you want 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.


ADVERTORIAL

see money differently

SEE MONEY DIFFERENTLY WITH BIGGER-PICTURE BUSINESS BANKING Gerrit Henning, Nedbank Regional Manager of Retail and Business Banking: Northern Suburbs, explains how Nedbank works with communities to deliver banking solutions.

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edbank continues to build on its client-centred 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 value banking 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. 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 an area office with 12 skilled business managers ready to take your business to the next level. ‘We encourage you to see money differently with the bigger-picture approach that

… see money differently with the bigger-picture approach that Business Banking offers …

Business Banking offers,’ 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

see money differently

USING OUR MONEY EXPERTISE TO HELP CLIENTS Randall Bailey, 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.

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ailey’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. With more than 20 years' banking experience, Bailey has been with Nedbank for just over five years and has worked in a number of areas, including credit. 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 Bailey. 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.

… the team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and service …

To take your business to the next level or to obtain more information about Nedbank’s specialised service offering call Randall Bailey on +27 (0)21 412 3051, send an email to RandallB@nedbank.co.za or visit www.nedbank.co.za.


ADVERTORIAL

see money differently

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.

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eboa’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 more than 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 the needs of clients, saying that partnership- and 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. ‘We look forward to continuing our relationships with our valued existing clients, and to offering our value

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.

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

see money differently

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.

Esack, as a skilled banker, has been with Nedbank for eight years and has worked in a number of roles in his 38-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. 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

As money experts, we are committed to doing good, so you can concentrate on what’s most important to you – running your business.

what’s most important to you – running your business,’ says Esack. ‘We encourage you to see money differently with the bigger-picture approach offered by Nedbank Business Banking, 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.

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

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sack’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.



An international effort: the turbine tower sections being prepared for transportation to site for the Paardekraal East Wind Farm were built by Gestamp Renewable Industries (GRI) of the Netherlands (in Cape Town), the turbines were supplied and installed by Siemens Gamesa Renewable Energy (a Spanish company) and Mainstream Asset Management South Africa (a company with Irish roots) will manage the operations. CREDIT: GRI

KEY SECTORS Overviews of the main economic sectors of the Western Cape Maritime and fishing 26 Oil and gas 30 Energy 34 Manufacturing 36 Construction and property 38 Tourism and events 39 Education and training 40 Banking and financial services 44 Development finance and SMME support 45 Business process outsourcing 46


OVERVIEW

Maritime and fishing New opportunities are opening up in manufacturing and servicing.

SECTOR INSIGHT Cape Town boats are involved in space travel.

Gemini Marine

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oats built in Cape Town are collecting astronauts in the waters of the Gulf of Mexico after they splash down. Epping-based Gemini Marine has signed a deal with Elon Musk’s SpaceX to supply recovery boats for astronauts returning from the International Space Station. A selection of international clients includes the UK Ministry of Defence, the Royal New Zealand Navy, the United Nations and the Singapore Special Forces. The South African Boat Builders Export Council (SABBEX) reports that the sector is particularly strong in catamarans and yachts but a growing variety of boats are being built. These includes custom and semi-custom built monohulls, powerboats, commercial vessels, sport-fishing boats and inflatables. Two Oceans Marine manufactures both power and sailing catamarans in 4 500m² of factory space on two different premises, in Cape Town harbour and in Paarden Island. The company runs an internship programme with False Bay TVET College. Damen Shipyards Cape Town is building three inshore patrol vessels for the South African Navy, the first of which will be delivered in 2021. The vessels will be used to secure South Africa’s waters against threats such as illegal fishing, smuggling and piracy. Since 2014, investments worth R30-billion have been made into the sector and created more than 7 000 direct jobs (Invest Cape Town). The Western Cape Department of Economic Development and Tourism (DEDAT) reports that in 2016 the oil, gas and marine sector supported 8 320 jobs and contributed R1-billion to the province’s gross value add. The Western Cape has enthusiastically embraced the national strategy called Operation Phakisa (“hurry up” in Sesotho). The 2033

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target is for the share of the Maritime Economy to South Africa’s gross domestic product (GDP) to grow by 250% (and perhaps as much as 350%) compared to its current value, to a figure between R129-billion and R177-billion. A million new jobs are expected to be created. The construction of an offshore supply base in the Port of Saldanha on a dedicated quay is an excellent example of the impact of Operation Phakisa. Saldehco, a privately-owned South African special purpose vehicle with foreign investors, submitted a tender in 2016 through the Transnet National Ports Authority (TNPA) to build this infrastructure to support the growing oil and gas industry. Large industrial operations already exist at Saldanha and the Port of Saldanha Bay is the portal for the export of South Africa’s iron ore. The Saldanha Bay Industrial Development Zone (SBIDZ) is becoming a hub for a range of maritime repair activities and oil rig maintenance and repair. The National Department of Trade, Industry and Competition (dtic) and the DEDAT have collectively invested R500-million


OVERVIEW

in core infrastructure and a lease agreement has been signed with TNPA. The SBIDZ fits neatly into two overarching visions: Operation Phakisa and Project Khulisa, the targeted growth strategy of the Western Cape Provincial Government which includes servicing and repairing of oil rigs as a priority. The marine transport committee of the South African Oil and Gas Alliance (SAOGA) is preparing South Africa to reap the potential of the sector. It has developed 18 initiatives across three categories: infrastructure and operations, skills and market growth. During the Covid-19 lockdown, the Port of Cape Town did not shut down for a single day. Working teams were reduced and reallocated but the vital work of loading and unloading supplies was done. A task force with a wide range of representatives from government, business and port authorities is working on reducing congestion at the harbour. A renewed focus on ship repair through facilities such as the Sturrock and Robinson drydocks is on the cards for the Port of Cape Town, which has a diverse offering through its Container Terminal, Multipurpose Terminal, Liquid Bulk Terminal and Fresh Produce Terminal.

Fishing About 310-million kilograms of fish is consumed annually by South Africans, of which about half is caught locally. The main fish are hake and sardines and almost all of that is harvested in Western Cape waters by deep-sea trawlers. The fishing industry earns R3.4-billion in foreign earnings annually and employs 26 500 people across 22 sectors, the main ones being deep-sea trawling and aquaculture (JSE). The aquaculture industry is currently small, but since 2014 investment commitments of about R700-million have been made. The allocation of commercial fishing rights in 12 sectors that was due to happen in 2020 has been postponed to December 2021.

ONLINE RESOURCES Lawhill Maritime Centre: www.lawhill.org Operation Phakisa: www.environment.gov.za SABBEX/Boating South Africa: www.boatingsouthafrica.co.za SA Deep Sea Trawling Industry Association: www.sadstia.co.za Saldanha Bay Industrial Development Zone: www.sbidz.co.za

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Lawhill Maritime Centre It is likely that the quotas of larger fishing companies will be reduced in favour of small-scale fishing companies. There have been several changes in ownership in the fishing industry, most likely link ed to the upcoming determination of new fishing rights in which black shareholding will be a factor. The acquisition by blackcontrolled Sea Harvest Group of Viking Fishing is part of a larger trend. Tiger Brands has unbundled its 42% stake in Oceana Group. Oceana holds the popular pilchards brand Lucky Star, which enjoys 80% of market share in South Africa, and has the highest market value of fishing companies in South Africa. The Oceana Group recently purchased Foodcorp’s fishing rights and a US fishmeal and oil company, Daybrook. ■ WESTERN CAPE BUSINESS 2021


INTERVIEW

The Port of Cape Town is investing in future growth Port Manager Mpumi Dweba-Ketana outlines key areas of focus for building the ship repair and container businesses while improving efficiencies in all spheres. What is the role of the Port Authority? Our role is to make space available for the use of terminal operators. We are a landlord in that we give facilities and infrastructure to people to operate those facilities. We have 11 terminal operators altogether. Please tell us how Covid-19 affected the port. When Covid started we all put plans in place, but even at Level 5 we were not closed because the Container Terminal, the Multipurpose Terminal and the Liquid Bulk Terminal all stayed open because they provide essential goods and services. We applied business continuation plans and we did not close for any single day for business.

Mpumi Dweba-Ketana, Port Manager

BIOGRAPHY The daughter of teachers, Mpumi Dweba-Kwetana, earned a BA, a BED and an HDE as a teacher and an Education Specialist for the Department of Education. Her switch to the maritime industry led to a BPhil in Maritime Economics and an Executive MBA. After working for the Department of Transport, Mpumi was appointed by Transnet National Ports Authority as the first Port Manager for the Port of Ngqura in 2012. She took up the Cape Town post in 2017. WESTERN CAPE BUSINESS 2021

Were staff affected? A first fatality unfortunately happened outside and we saw infections start to increase, also in berthing services. We reduced the team from four to two and also reduced the number of gangs. Most unfortunately the increase in cases in Cape Town came among the skilled workers you cannot easily replace. Among operators, we were down from eight gangs to two. What steps were taken to overcome the challenges of Covid-19? From the month of June, we started to see the system stabilising, employees were either coming back from quarantine or isolation. We reviewed our strategy with regard to those with co-morbidities. It was decided that those below the age of 60 who wanted to come back to work could after a visit to the clinic to determine their fitness. We must acknowledge the role that was played by the Port of Durban. When we did not have operators, 20 operators flew in from Durban. We treat them as warriors, and their bravery was really appreciated. Have you been able to ramp up operations again? All terminals are operating now, and we are back to at least 80% regarding staff. Staff over 60 with co-morbidity still can’t come to work. What degree of coordination is required to run a successful port? We have virtual meetings with all terminal operators where we discuss the issues. Any likely challenges can be brought to our attention by local and provincial government or even the business chamber. We are able to hold each other accountable.

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INTERVIEW In 2019, multi-sector engagement began on congestion issues. How is that progressing? We are making good progress. We are working closely via task teams on operational efficiencies. This includes truck staging. A truck booking system introduced by the Port of Durban has reduced the number of waiting trucks. The exciting news is that that programme is coming to Cape Town. We need to look at congestion holistically. A lot of variables need to be aligned. Operating hours, starting from the warehouse, the truckers and the terminals, all should be more synchronised. We have identified a space which will be a short-term truck-staging area. In the longer term we are looking at a permanent holding area.

pilot boat to navigate. Improving the Container Terminal is another priority. What is required to be a world-class port? We need to work on the building blocks. The plan is that ships do not even go to the anchorage, the pilot goes out and then the pilot brings the ship alongside. We don’t want them to wait. An investment plan is in place. A maintenance strategy must ensure that operators are fully operational. A critical aspect is people: you need a highly efficient work force that has embraced a culture of continuous improvement. When that ship is alongside, they are hungry to service it. Where does the Port of Cape Town fit in with the country’s port strategy? We have eight commercial ports in South Africa and we must support each other. We can support the Port of Saldanha in terms of the oil and gas sector, for example, but we see ourselves playing predominantly in the container space. We want to strengthen the quayside to expand from one-million TEUs to 1.4-million TEUs (twenty-foot equivalent units). We also see exciting opportunities in ship repairs. Sturrock Dry Dock is one of the biggest facilities in the SADC region and we want to draw more vessels to it. There could be 2 000 people employed on a ship. ■

What are your top priorities? There are three main priorities: ship repair, the Container Terminal and investing in our fleet. We will complete capital investment in ship repair of about R1-billion. We are looking at civil and mechanical equipment, and electrical infrastructure. We aim to invest in our marine fleet. Some of our fleet is 40 years old, so we are looking at tugs (we aim to have three 70-ton tugs, in total we will have five tugs) and also in our work boats and our launches. We are going to procure a helicopter in order to improve efficiencies. We have a phenomenon of high swells of about 4-5m so it is difficult for the

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WESTERN CAPE BUSINESS 2021


OVERVIEW

Oil and gas Gas finds off the Southern Cape coast have vast potential. SECTOR INSIGHT The Chevron refinery produces petrol, diesel, jet fuel and liquefied gas.

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n 2019 Total and its partners created a stir with the announcement that gas condensate had been found at a site called Brulpadda off the coast of Mossel Bay. In 2020, the nearby Luiperd prospect in Block 11B/12B delivered more exciting news. The block, in the Outeniqua Basin 175km off the southern coast, covers an area of about 19 000km² in water depths of 200-1 800m. The exploration was done by the semi-submersible rig Deepsea Stavanger, which journeyed twice from Norway to lead the exploration projects. The two finds raise the odds of Total investing in what it calls a “world-class” offshore gas site. The drilling campaign employed 195 WESTERN CAPE BUSINESS 2021

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South Africans with specialist skills but the potential spinoff is enormous for the Western Cape and South Africa, if the find leads to drilling and commercialisation. If Total goes ahead, the PetroSA GTL refinery at Mossel Bay (Mossgas) could be revived and the idea of creating a gas market in South Africa would get a massive boost. Commissioned in 1992 as the world’s first gas-to-liquids (GTL) refinery, Mossgas was due to close in 2020, because, as President Ramaphosa announced, it had practically run out of feedstock. PetroSA is South Africa’s national oil company. Petroleum Agency South Africa (PASA), which encourages exploration and regulates the oil and gas industry, has noted the significance of international oil companies committing to exploration off South Africa’s coast. Increased confidence by such companies can only lead to growth in the industry, and with the massive gas finds in the Rovuma Basin off Mozambique in 2020, there are sure to be more companies interested in South Africa’s potential. In addition to adjudicating on coastal fields,


OVERVIEW

the agency has awarded coalbed-methane-gas exploration rights in KwaZulu-Natal and natural gas exploration permits in the Free State. Natural gas lies also lies offshore to the west of South Africa in the Atlantic Ocean (Ibhubesi). Block 2A of the Ibhubesi gas field north-west of Saldanha is estimated to have reserves of 850-billion cubic feet of gas. 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 one of the largest supplier in the pipeline and on-site markets. The Western Cape’s status as an oil and gas hub was enhanced in 2017 with the opening of a new open-access liquefied petroleum gas (LPG) import and storage terminal at Saldanha Bay. A publicprivate partnership is behind the R1-billion terminal, the largest of its kind in Africa. Investors include Sunrise Energy, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and Royal Bafokeng Holdings.

Oil Cape Town’s oil refinery changed hands in 2018 when Off The Shelf Investments (OTS) completed a $973-million purchase of Chevron’s downstream assets in South Africa. Chevron has been rebranded as Astron, but the Caltex service-station brand has been retained. OTS is the Black Economic Empowerment (BEE) partner of mining giant Glencore, who financed the deal. The refinery in Milnerton produces petrol, diesel, jet fuel and liquefied gas for the Western Cape and for export to other African countries. The Western Cape spends R76-billion annually on crude oil imports and exports refined petroleum to the value of R13.2-billion. 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 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 the Transnet National Ports Authority to spend heavily on upgrading the nation’s ports. The Western Cape Provincial Government reported that in 2016 that the oil and gas sector contributed R1.03-billion to the

ONLINE RESOURCES 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

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province’s gross value add. More than 7 000 direct jobs were created in ship and rig repair sector of the oil and gas business in 2015. The Saldanha Bay Industrial Development Zone (SBIDZ) is central to the plan to grow the sector. Staff from the SBIDZ actively sought investors for the zone at the Africa Oil Week, which was held in Cape Town in 2019. Nine investors, ranging from gas maintenance a n d re p a i r c o m p a n i e s to domest ic and foreign oil c o m p a n i e s, h a v e a l re a d y committed to the SBIDZ. The Western Cape Provincial Government and the National Department of Trade, Industr y and Competition invested R500-million in the development of core infrastructure at the Saldanha Bay IDZ. The Saldanha Bay IDZ has signed a lease agreement with the Transnet National Ports Authority. The B ergu n ter minal, comprising 12 tanks located on the Eastern Mole of the Port of Cape Town, has added to the port’s fuel storage capacity and is connected by pipeline to the Astron refinery. The Council for Geoscience (CGS) is doing an intensive study of South Africa’s potential shale gas resources. The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers. ■ WESTERN CAPE BUSINESS 2021


OVERVIEW

Gas find sparks major investment in exploration in Western Cape Mossel Bay could receive condensate from offshore site.

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major discovery has been made at a site south-east of Mossel Bay called Brulpadda. The well encountered 57m of net gas condensate pay in Lower Cretaceous reservoirs. Following the success of the main objective, the well was deepened to a final depth of 3 633 metres and has also been successful in the Brulpadda-deep prospect. This has exciting repercussions for the emerging Western Cape oil and gas sector. As Kevin McLachlan, the Senior Vice President Exploration at Total, said at the time of the find, “With this discovery, Total has opened a new world-class gas and oil play and is well positioned to test several follow-on prospects on the same block.” Total as operator holds a 45% participating interest in Block 11B/12B, while Qatar Petroleum (25%) and CNRI (20%) are the other participants. Africa Energy holds a 4.9% effective interest in the Exploration Right for Block 11B/12B. The Company owns 49% of the shares in Main Street 1549

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Proprietary Limited, which has a 10% participating interest in the block. If the local gas market is to take off and thrive, significant drilling has to take place. As the new CEO of Petroleum Agency SA, Dr Phindile Masangane, describes the situation, “That would be a game-changer for South Africa’s upstream oil and gas industry.” She added, “The recent discovery by Total and its JV partners in Block 11B/12B (Brulpadda) is the first giant step in that direction.” “Further development of the discovery is highly dependent on the success of this further drilling,” comments Dr Masangane. “Possible development could see condensate being piped to the PetroSA facility in Mossel Bay,” she adds, “but these decisions are ultimately up to the operator, Total and its partners.” Odfjell’s Deepsea Stavanger semi-submersible oil rig relocated from Norway to South Africa in June 2020 to start exploratory drilling. The Luiperdpadda prospect where the rig is drilling is the second of five prospects in the group. With light oil and gas condensate having been found in the Brulpadda well, it is possible that other prospects will be found with this further drilling. The exploration drilling in Block 11B/12B is in deep waters similar to where the gigantic Mozambique Rovuma Basin gas discoveries were made in 2010. The drilling campaign has long-term benefits to South Africa which include introducing frontier deep water (>1400m) exploration drilling, building confidence and potentially shifting petroleum exploration activities to private international oil companies (IOCs), de-risking deep-water acreage. This will encourage other IOCs to take risk in drilling deep-water prospects, which could result in the country discovering more oil and gas resources.

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OVERVIEW

Petroleum Agency SA: promoting and regulating exploration and production. Petroleum Agency SA evaluates, promotes and regulates oil and gas exploration and production activities in South Africa and archives all relevant geotechnical data. The Agency acts as an advisor to the government and carries out special projects at the request of the Minister of Mineral Resources and Energy. South Africa’s energy mix is changing to include more gas through importing liquefied natural gas (LNG), using shale gas if reserves prove commercial, and developing infrastructure for the import of LNG. Petroleum Agency SA plays an important role in developing South Africa’s gas market by attracting qualified and competent companies to explore for gas. Another major focus is increasing the inclusion of historically disadvantaged South African-owned entities in the upstream industry. Currently, natural gas supplies just 3% of South Africa’s primary energy. A significant challenge facing the development of a major gas market is the dominance of coal. Opportunities for gas lie in the realisation of South Africa’s National Development Plan (NDP) and the Integrated Resource Plan (IRP).

Image: Total

As custodian, Petroleum Agency SA ensures that companies applying for gas rights are vetted to make sure they are financially qualified and technically capable, as well having a good environmental track record. Oil and gas exploration requires enormous capital outlay and can represent a risk to workers, communities and the environment. Applicants are therefore required to prove their capabilities and safety record and must carry insurance for environmental rehabilitation. ■

Contact details Tel: +27 21 938 3500 Email: plu@petroleumagencysa.com Website: www.petroleumagency.com

PASA’S NEW CEO HAS A BACKGROUND IN ENERGY POLICY AND STRATEGY Dr Phindile Masangane was appointed as the CEO of the South African upstream oil and gas regulatory authority, Petroleum Agency South Africa, in May 2020. Before then, Dr Masangane was an executive at the South African state-owned energy company, CEF (SOC) Ltd, which is the holding company of PASA. Dr Masangane was responsible for clean, renewable and alternative energy projects. In partnership with private companies, she led the development of energy projects including the deal structuring, project economic modelling and financing on behalf of the CEF Group of Companies. Her responsibilities also included supporting the national government in developing energy policy and regulations for diversifying the country’s energy mix.

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In 2019, Dr Masangane was Head of Strategy for the CEF Group of Companies where she led the development of the group’s long-term strategic plan, Vision 2040+ as well as the group’s gas strategy. From 2010 to 2013, Dr Masangane was a partner and director at KPMG, responsible for the Energy Advisory Division. She successfully led the capital raising of $2-billion for hydro and coal power plants expansion programmes of the Zimbabwean power utility, ZESA/ZPC. An alumnus of three universities, Dr Masangane has a BSc (mathematics and chemistry) from the University of Swaziland, a PhD in Chemistry from Imperial College, London and an MBA from the University of the Witwatersrand. ■


OVERVIEW

Energy The Western Cape wants a bigger role for cities in the energy sector.

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ust days before a case between the City of Cape Town and the National Energy Regulator of South Africa (Nersa) was heard in court, Mineral Resources and Energy Minister Gwede Mantashe published draft amendments which provide for some role for municipalities in the generation and procurement of electricity. Judgement in the case was reserved but the city is pushing ahead with its case, the minister’s input notwithstanding. The fact that Cape Town has an Executive Director for Energy and Climate Change is an indication of how seriously it treats the issue. Ultimately the city wants to be allowed to procure power from independent power producers (IPPs) and to see a national programme put in place. South Africa’s acclaimed Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) attracted about R200-billion in committed investments, mostly in solar and wind power, in just five years. The early rounds of the independent power producers’ programme continue to produce regular dividends. In October 2020, another wind farm started commercial operations. The Paardekraal East Wind Farm, which is located about 80km north-east of Ceres, is in the Witzenberg Local Municipality. The 110MW project was constructed by the Concor and Conco Consortium, Siemens Gamesa Renewable Energy supplied and installed the wind turbines, the towers were built by GRI in Atlantis and Mainstream Asset Management South Africa will manage the operations. According to the Department of Energy, the REIPPPP by 2016 had created more than 30 000 jobs and benefited local community development to the tune of R256-million. Figures released by the South African Wind Energy Association (SAWEA) showed shareholding for local communities reached an estimated net income of R29.2-billion over the lifespan of the projects. Some 14 000 new jobs are expected to be created, mostly in rural areas, and more than R30-billion has already been spent on Black Economic Empowerment (BEE) in the construction phase. The support of two of South Africa’s biggest institutional investors, the Industrial Development Corporation (IDC) and the Public Investment Corporation (PIC), has been crucial in getting the renewable energy sector off the ground. They have also helped communities fund their participation in community trusts. Typically, a community trust is established to represent the interest of the local community.

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SECTOR INSIGHT Paardekraal East Wind Farm has started commercial operations. Investment by black people into the renewable energy programme is not limited to community trusts. Pele Green Energy is engaged with a photovoltaic plant at Touwsrivier in the Western Cape as a shareholder and as a provider of construction management services. Once the facility starts generating power, Pele will operate and maintain the plant. In his 2020 State of the Province Address, Premier Alan Winde said, “The wind and solar resources in South Africa are so plentiful that using only 1% of our land, renewable energy could produce over six times the amount of energy that Eskom produces today.” The Western Cape Provincial Government has a four-point energy plan: 1. Help municipalities to procure energy from IPPs. 2. Increase small-scale embedded generation like solar PV to decrease reliance on the national grid. 3. Increase the greening of government buildings, 17 of which already have solar systems. 4. Increase efforts to import


OVERVIEW

Liquefied Natural Gas through Saldanha Bay and enable Eskom’s Ankerlig plant to operate on LNG rather than diesel. Recent gas finds by Total off the coast of Mossel Bay will accelerate the drive to switch to gas. The idea of home-owners being able to sell surplus electricity from rooftop solar systems was previously restricted to the Cape metropolitan area. The application of the provincial government’s Energy Security Game Changer has expanded this provision (via bylaws) to the whole province. There are 23 municipalities where rooftop solar PVs are connected to the electricity grid, 13 of which have nationally approved tariffs in place. Users in the 13 areas can be paid for the power they supply. The uptake of solar has risen from 20MW in 2015 to more than 112MW in 2019. The City of Cape Town has signed an agreement with the United States Agency for International Development and the Southern Africa Energy Programme to look for ways to make solar PV more accessible. High costs of installation often preclude residents from taking the solar PV option for their homes. The Western Cape is positioning itself as a green business hub and is working to find energy alternatives for households and businesses. Greater Cape Town is home to 70% of South Africa’s manufacturers of renewable components. Green Cape states that nearly R700-million in green technology investments has already been attracted to the Atlantis Special Economic Zone, creating 300 jobs. A further R3.7-billion is anticipated by 2030, which will add more than 3 000 new jobs. Spanish wind tower manufacturer Gestamp Renewable Industries and tower internals supplier Resolux (from Denmark) are early investors in the zone.

Perdekraal East Wind Farm Green Cape is an agency that does research and runs projects in areas such as energy efficiency, waste, water and sustainable agriculture. It is a joint initiative of the City of Cape Town, Wesgro and the Provincial Government of the Western Cape. The Western Cape Industrial Symbiosis Programme ( WISP), which encouraged manufacturers to use the waste product of other businesses, won international recognition in 2018 at the Circular Awards at Davos. ■

ONLINE RESOURCES Atlantis Special Economic Zone: www.investcapetown.com Green Cape: www.greencape.co.za South African Renewable Energy Technology Centre: www.saretec.org.za South African Wind Energy Association: www.sawea.org.za

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OVERVIEW

Manufacturing TFG plans to double manufacturing output.

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FG, whose South African brands include TotalSports, Markhams and Foschini, has a five-year plan to double its manufacturing capacity. Having purchased Prestige Clothing Maitland and Prestige Clothing Caledon in 2012 and spent R75-million on expanding the factory in Caledon in 2017, TFG now plans to significantly increase the percentage of locally-made clothing items from the current level of 35% to 55%. This expansion should lead to more jobs within the group, which expanded in 2020 with the purchase of Jet from Edcon. The Foschini Group is one of several South African retailers which have their head offices in Cape Town. Others include Woolworths, Truworths and Cape Union Mart. The Manufacturing and Competitiveness Enhancement Programme (MCEP) of the Department of Trade, Industry and Competition (the dtic) has disbursed grants which have resulted in 230 000 jobs being sustained. Because of the Clothing and Textile Competitiveness Programme, that sector currently now employs around 95 000 workers, contributing 8% to manufacturing GDP and 2.9% to overall GDP. In the leather sector 22 new factories have been opened, supporting 2 200 jobs. In the Western Cape, this revival is reflected in member companies of the Cape Clothing and Textile Cluster hiring 35% more staff in four years. About 23 600 people are employed in the province and exports from the Cape amounted in 2017 to R4.4-billion with sales up by 34% above inflation. The K-Way brand of Cape Union Market has successfully weathered several storms. The Ottery factory, which houses more than 250 employees, has produced more than 311 000 K-Way Felixx Softshell Jackets since 2012. The textiles sector makes up about 7% of manufacturing economic activity, about the same as furniture. A diverse manufacturing sector contributes 15% to the Western Cape’s GDP with the two biggest contributors within that being fuel, petroleum, chemicals and rubber products (26%) and food, beverages and tobacco (25%). Wood and wood products (11%) and metal products, machinery and household appliances (10%) are the next two biggest subsectors (Wesgro). The Atlantis Special Economic Zone, which is specialising in green tech, has already attracted nearly R700-million in privatesector investment. Goals for the green sector include the creation of 1 200 direct jobs in a 20-year period. About 70% of South Africa’s WESTERN CAPE BUSINESS 2021

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SECTOR INSIGHT The closure of the Saldanha Bay steel mill is a blow to the sector. manufacturing in renewables is happening in the Western Cape. The decision in 2019 of ArcelorMittal to close its Saldanha Bay steel mill is a big blow to the manufacturing capacity of the province. With iron ore delivered from the Northern Cape Province, the mill was producing as much as 1.2-million tons of steel per year. About 900 workers have lost their jobs. Invest Cape Town reports that the city’s boatbuilding industry is the second-largest producer of recreational catamarans in the world, after France. The city’s companies export 80% of the products that they produce and attract a positive trade balance of approximately $73-million annually. Boatbuilding exports have grown by 20.5% annually year-on-year since 2014 in Cape Town (Quantec, 2019). Robertson & Caine’s facility i n Wo o d s t o c k p r o d u c e s three boats a week for the international market. With a staff complement of 1 350, the company is a leader in power catamarans and sailing catamarans.


OVERVIEW

Prestige Clothing factory. Image: TFG Nautic Africa makes larger vessels, including patrol, defence, oil and gas platform and commercial vessels. Damen Shipyards Cape Town delivers vessels to public entities such as the Robben Island Museum and the South African Navy and private companies such as Smit Amandla Marine and De Beers Marine. The Whisper Boat Building Academy is located at the False Bay TVET College. A new investor has breathed new life into the manufacturing business of Hayden Cobra. The maker of replica cars is operating out of Montague Gardens and building for the local and export markets, primarily the US and the Middle East. Three models are manufactured: the Classic 427, the Evo and a Cobra with an electric drive which promises “instantaneous torque”.

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. The wheat-growing areas of the Swartland hosts several mills such as Sasko’s facility in Malmesbury. Bokomo has several manufacturing facilities in Atlantis, Epping, Ndabeni near Pinelands, Worcester and Bonnievale. Safari Vinegar is based in the Strand and there are two Heinz manufacturing plants at Wellington and Atlantis. Lamberts Bay Food sources potatoes from all over South Africa, but its proximity to

ONLINE RESOURCES Cape Clothing and Textile Cluster: www.capeclothingcluster.org.za Invest Cape Town: www.investcapetown.com Wesgro: www.wesgro.co.za Whisper Boat Building Academy: www.falsebaycollege.co.za

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the potato-growing Sandveld region is helpful. Tw o o f t h e b i g g e s t chicken-processing facilities a re l o c a te d o n t h e N 7 highway (Tydstroom) and on the N1 (Rainbow Chickens). The Western Cape has about 16 000 commercial pork sows and produces a quarter of South Africa’s milk. Willards has a factory in Goodwood, in nearby Parow there is a Simba factory and local chip and snack manufacturer Messaris, which has been in operation since 1898, has a facility in Elsies River. Nestlé produces condensed milk and milk powder in Mossel Bay and canned pet food in Cape Town. Tiger Brands makes mayonnaise in Bellville and has also invested heavily in its prepared meals plant in Cape Town. SABM iller ’s Ne wlands brewery is one of the busiest in the country. Coca-Cola bottler and distributor Peninsula Beverage has three plants – at Parow, Athlone and Vredendal on the West Coast, and employs 1 300 people. ■ WESTERN CAPE BUSINESS 2021


OVERVIEW

Construction and property The eastern edge of the Cape Town CBD is to be transformed. SECTOR INSIGHT Building at Conradie Park has begun.

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Artist’s impression, Conradie Park. Image: Concor

lans for a large development on the corners of Heerengracht Road and Christiaan Barnard Street are going ahead, despite the general economic slowdown due to Covid-19. The mixeduse Harbour Arch project stands on the eastern entrance to Cape Town’s CBD on a 5.8ha site which has been underutilised and unattractive for decades. The Amdec Group’s R15-billion development means to change that with housing, hotels, offices and restaurants which will densify the city and provide the CBD with an eastern gateway. The development could spark further work on the Culemborg site, which has often been mentioned in plans, as an Olympic and soccer World Cup site, for example. The Provincial Government of the Western Cape’s “Better Living Model” aims to deliver 3 602 residential units in an affordable, mixeduse and residential-led development on the site of the old Conradie Hospital on the edge of Pinelands. The integrated, mixed-income housing development (pictured) aims to reverse the spatial planning that was put in place under apartheid. With the state putting in the bulk infrastructure, costs for developers are significantly reduced. The quid pro quo is that the developer must set aside a certain number of housing units (49%) to grant-funded housing. The Belhar CBD is the site of 4 188 assorted residential units, including student accommodation, social housing units and

ONLINE RESOURCES Cape Town Transport and Urban Development Authority: www.tda.gov.za Construction Industry Development Board: www.cidb.org.za SA Institute of Architects: www.saia.org.za

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military veterans’ units. Between June and D e cemb er 2019, the provincial government handed over 1 144 title deeds to beneficiaries in the province. An ar ticle in Visi in 2020 heralded the arrival of Art Deco accommodation in central Cape Town at the opposite end of the affordability scale. Described as a “striking new vessel” that has “dropped anchor among the venerable advocates’ chambers that line Cape Town’s Keerom Street ”, Tuynhus houses 43 small apar tment s and four mini-penthouse suites. It is designed by Rober t Silke, of Robert Silke & Partners. FNB, which publishes a regular property barometer, has done an in-depth analysis of previous crises to understand the post-Covid property market. According to John Loos, a property strategist at FNB Commercial Property Finance, the most vulnerable sector is likely to be Retail Property. Smaller neighbourhood shopping centres, with more essential items and greater convenience, will be less vulnerable. The lockdown accelerated the trend for people to work from home, and so the Office Property sector will come under pressure. Many companies will be reducing office space, but this is merely a speeding up of an existing trend. ■


OVERVIEW

Tourism and events Operators are hoping the Lions will roar.

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shade under one-million passengers passed through Cape Town International Airport in 2019, a 2% increase over the previous year, which had grown by 0.8% from the year before. In 2019, Cape Town Tourism projected that the value to the Western Cape of the cruise-ship industry between 2017 and 2027 would be about R220-billion. And then Covid-19 hit. Major investments have been made in the Cruise Ship Terminal, near the Cape Town International Convention Centre (CTICC), and the Cape Town Air Access programme. Air Access created more than 750 000 new inbound seats between its inception in 2015 and 2020, adding something like R6-billion to the provincial economy. In 2019/20 the CTICC secured 52 conferences with an estimated economic impact of R2.3-billion. Unfortunately, the conferences and events sector is likely to be hit as badly as the cruise-ship industry. Many tourism operators in the Western Cape are pinning their hopes on the incoming rugby tour in the winter of 2021 by the British and Irish Lions, if Covid-19 allows. The South African Rugby Union expects 37 000 fans to follow the team from Britain, more than 13 000 jobs to be created and a tax benefit to South Africa to accrue of about R450-million. Following the major drought experienced by the Western Cape, the Westin Cape Town has taken steps to reduce its dependence on the municipality for water. The hotel’s position on reclaimed land in the CTICC precinct of the Foreshore means that about 1.2-million litres of seawater have to be taken out of the basement every day. This water is converted into 441 000 litres of clean water by reverse osmosis which saves more than 100-million litres of municipal water annually. The Westin has also created an organic roof garden, from which it supplies its restaurants with vegetables. The Western Cape Provincial Government wants to promote education in the arts. Based on research which found that 6% of employment in South Africa is in the cultural sector, the Western Cape will expand the traditional STEM emphasis to

ONLINE RESOURCES Cape Nature: www.capenature.co.za Cape Town Tourism: www.capetown.travel Garden Route and Klein Karoo: www.visitgardenrouteandkleinkaroo.com George Tourism: www.georgetourism.org.za Plettenberg Bay: www.plett-tourism.co.za

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SECTOR INSIGHT Income from air travellers and cruise ships disappeared in 2020.

The Westin Cape Town’s organic rooftop garden.

include two additional A’s: Arts and Agriculture. There are 60 000 people employed in the culture sector in the province. The opening of the R500million Zeitz Museum of Contemporary Art in the Victoria & Alfred Waterfront in Cape Town has made a big impact. With a footfall of 24-million visitors going through the Waterfront every year, the Zeitz is well located to attract good crowds. 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. ■ WESTERN CAPE BUSINESS 2021


OVERVIEW

Education and training Tertiary campuses in Mitchells Plain and Khayelitsha are growing.

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R386-million campus is to be built in Mitchells Plain to serve that suburb, Strandfontein and surrounding areas. False Bay T VE T College has been of fering classes in part of a primary school for some time but the transfer of land by the City of Cape Town in June 2020 allows the college to star t the design phase for the new campus in the heart of Mitchells Plain. It will eventually cater for more than 5 000 students. The new Mitchells Plain Campus will complement the College’s existing campus presence in Khayelitsha, Fish Hoek, Westlake and Muizenberg. Programmes will be offered in tourism, creative media, business BPO, wholesale and retail and the services sectors. Bridging classes will also be presented for young people who do not meet entry requirements. At the same time, work is underway on the upgrade and expansion of the Swartklip Campus, pictured, which lies on the border of Mitchells Plain and Khayelitsha. Funding for the new campus, which will have an engineering focus, came from the National Skills Fund. The plan is to accommodate 3 000 students which would contribute to the National Development Plan’s goal of producing 30 000 skilled artisans per year. The College has a lease agreement with Airports Company South Africa to use the existing buildings at the old Denel Site. Building has also been happening in the school sector: three new schools were built in 2019/20 and two replacement schools were opened in Crestway and Phillipi. The Provincial Government’s Department of Transport and Public Works started work on 76 new Grade R and Expansion classrooms at 22 schools, catering for about 2 800 pupils. A further 197 mobile classrooms were delivered. The province’s I-CAN centres allow for public access to digital skills programmes, WiFi and business services. The centres are divided into zones (including Create, Study and Learn) and printing, graphic design and laminating services are available. Online learning is one of the world’s fastest-growing sectors and the investment of $3-million by Construct in a new Cape Town office is evidence that the trend has come to the Western Cape. The Construct Learning Lab supports universities in Boston, Doha and Oxford as well as companies and government bodies. The company expects to increase its staff complement by 150 over three years. Two Western Cape research institutions have made large investments in research infrastructure. A Biomedical Research

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SECTOR INSIGHT A Centres of Specialisation Programme is targeting priority skills.

Institute is being built by Stellenbosch Universit y at a cost of R1-billion and the University of Cape Town plans to move its Neuroscience Institute, which it runs in p ar t n e r ship w i t h G ro ote Schuur Hospital, into a new building. An innovation laboratory, clinical and training spaces and an innovation space where researchers can interact are part of the plans for the new facility. The Universit y of Cape Town has more than 21 500 students, 720 permanent staff and 39 A-rated researchers (40% of South Africa’s total). Stellenbosch Universit y is l i n k e d to Ste l l e n b o s c h’s growing reputation as a technology hub. The Universit y of the Western Cap e is home to several national research bodies. These institutions, plus the Cape Peninsula University o f Te c h n o l o g y, p r o d u c e approximately 12 000 science, technology, engineering and mathematics graduates every year and host 11 000 students from other African countries.


OVERVIEW

Universit y 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. SARE TEC of fers industr ysp e cif ic training in a new economic sector. The South A f r i c a n R e n e w a b l e En e rg y Technology Centre is managed by the Cape Peninsula University of Technology (Bellville campus) but it collaborates with several other institutions and private companies. Unisa, the country’s biggest distance learning institution, has a campus in Cape Town and a service centre in George. Airports Company SA (ACSA), the City of Cape Town and the False Bay TVET College in Westlake have combined 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 for training.

Centres of Specialisation Programme A Centres of Specialisation Programme has been introduced by the Department of Higher Education and Training to tackle priority skills. The Swartklip campus mentioned above will focus on training riggers and mechanical fitters. With the oil and gas sector expected to grow rapidly in the near future, trained artisans can expect to find employment quickly. The College of Cape TVET is concentrating on plumbing and automotive motor mechanics.

ONLINE RESOURCES Apprenticeship Game Changer: www.westerncape.gov.za Centres of Specialisation: www.dhet.gov.za SA Renewable Energy Technology Centre: www.saretec.org.za TVET colleges: www.tvetcolleges.co.za

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The College of Cape Town has seven campuses from the cit y centre to Guguletu and Wynberg. A new welding academy in Thornton was opened with suppor t from the merSETA (Manufacturing, Engineering and Related Services SETA). Northlink College is in the northern suburbs of Cape Town. Outside of the Cape metropole, Boland College looks af ter Stellenbosch, W o r c e s t e r, P a a r l a n d Caledon, while the Southern Cape College covers a wide area, from George to Beaufort West. The West Coast College also has a big catchment area. Boland College participates in an E xpanded Public Works Programme (EPWP) run by the South African Chefs’ Association. ■ WESTERN CAPE BUSINESS 2021


FOCUS

New BPO Academy Launched by the College of Cape Town Offering courses that are in high demand by commerce and industry.

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he College of Cape Town’s Gardens Campus has launched Sub-Saharan Africa’s first Business Process Outsourcing (BPO) Academy. The suburb of Gardens is a hub for the Cape Town creative industry, with e.tv’s studios nearby. All of the eight campuses of the College of Cape Town are situated in the central area of the Peninsula and serve the greater Cape Town area, including a large percentage of traditionally disadvantaged areas and townships. The Gardens Campus formally housed the Early Childhood Development (ECD) Depar tment and a Day Care Centre which has now b e en relo c ate d to th e redeveloped Crawford Campus. The Gardens has been revamped and transformed into a BPO Academy and is well set to support the BPO sector with the skills it requires. The College of Cape Town has entered into an agreement with Business Process Enabling South Africa (BPeSA) to develop and operate the BPO Academy. At the launch of the Academy, Western Cape Economic Opportunities MEC, David Maynier, reported that the BPO was one of only two sectors that created jobs in April and September, adding 5 160 jobs to the economy in that time. Training people for sectors where they will gain employment goes to the heart of the mission of colleges.

The BPO Academy was launched in November 2020.

Department of Higher Education and Training. The College mandate is to provide inclusive quality Technical and Vocational Education and Training responsive to the labour market. All campuses are accessible by public transport. Although the majority of students are from the greater Cape Town metropolitan region, students from other regions of South Africa, Namibia and other African countries and countries abroad are accepted. Courses offered lead to recognised, accredited qualifications that are in high demand by commerce and industry. The College offers an extensive range of programmes, including National Certificate Vocational (NCV) on Levels 2 to 4, NATED Report 191 on N1 to N6, National N Diploma, Occupational Qualifications on Level 1 to 5, Short Skills and other Skills Programmes, Learnerships, Artisan Related Learning Programmes (ARLP) and Trade Testing. The

Background 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. The College of Cape Town for TVET is a public TVET College which falls under the auspices of the WESTERN CAPE BUSINESS 2021

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FOCUS College also offers Higher Education programmes in partnership with University of South Africa (UNISA), the Cape Peninsula University of Technology (CPUT) and the University of Cape Town (UCT). Delivery sites and facilities All campuses have well-equipped workshops, lecture rooms, computer rooms, studios for practical work and media centres. The eight campuses are: Athlone Campus: The campus has four fullyequipped Automotive and Skills workshops and is accredited in Automotive Motor Mechanics Training as well as Trade Testing. Athlone campus was awarded the Centre of Specialisation for Automotive Motor Mechanics in 2018. City Campus: Located in the heart of Cape Town, it is accessible to all amenities such as food chain stores, businesses, retail stores and public transport. The campus was formerly Cape College. Crawford Campus: Formerly known as Hewat Teachers Training College, it is one of the college’s biggest campuses. The campus offers Business Studies, Information Communication and Technology, Early Childhood Development Education and Training, Primary Health and Occupational Programmes. The campus also has partnerships with the University of South Africa (Bachelor Degree in Foundation Phase), the Cape Peninsula University of Technology (Level 5 Higher Certificate in ICT Service Management) and the University of Cape Town (development and design of a Level 5 Higher Certificate in Early Childhood Development). Crawford Campus has a well-equipped daycare centre. Visitors from daycare centres are accommodated through short courses and workshops­on best practice. When students enter the campus using the gate located next to the Trojan Horse Massacre Memorial Wall, they are constantly reminded of the youth whose lives were tragically lost in the apartheid era. Gardens Campus: The campus has a rich history with its building being more than 100 years old. Its age makes in a heritage site in the greater city bowl. Guguletu Campus: Situated in the Guguletu township 15km from central Cape Town, its name is

A Welding Academy has been established on the Thornton Campus of the College of Cape Town.

derived from the contraction of “Igugu lethu”, which is IsiXhosa for “Our Pride”. The Guguletu Campus was established to service the broader Guguletu area and the Cape Flats and offers Business Studies and Electrical Engineering. Pinelands Campus: The College’s hub for Electrical Engineering studies has 22 workshops and laboratories for a growing number of students. The campus is also an accredited Refrigeration and Electrical Trade Test Centre. Thornton Campus: Engineering is the focus at Thornton, which offers the following fields: Building and Civil Engineering and Mechanical Engineering. The campus has seven fully-equipped Building and Civil Engineering and Skills workshops and a Welding Academy offering international welding qualifications. Thornton Campus was also awarded the Centre of Specialisation for Plumbing. Wynberg Campus: Wynberg is an Occupational Training campus servicing the broader communities in and around the Wynberg as well as Mitchells Plain, Mannenberg, Hanover Park, Strandfontein, Bishop Lavis, the southern and northern suburbs as well as areas outside Cape Town’s borders. The Central Office is located in Salt River and hosts Finances, Human Resources, Corporate Communication and Marketing, Physical Resources, OHS, Quality Management, Management Information Systems, and the Linkages and Partnership Units. The College of Cape Town also has three residences, namely City Residence, Crawford Residence and Thornton Residence. The City Residence is for ladies only. ■

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OVERVIEW

Banking and financial services The Western Cape has the digital edge.

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he potential for disruption in the banking and financial services sector is almost limitless. The Western Cape’s evolution into a technology hub helps to explain why banks, insurance providers, asset managers and venture capitalists are increasingly choosing to make their headquarters there. There are more than 40 000 jobs in the technology sector (more than double the total of Nairobi and Lagos combined, Wesgro) and formal employment in the financial sector exceeds 50 000. Together with business services, the financial sector comprises the biggest contributor to the provincial economy. According to Wesgro, 75% of the venture capital deals that happen in South Africa originate in the Western Cape. Most financial firms based in Cape Town have a long history, some going back as far as 1845 when Old Mutual started. One of the most successful disruptors in recent times has been Stellenbosch-based Capitec Bank, which is steadily increasing its customer base by providing banking for business and individual customers in what it describes as a simple manner. In May 2020, investment holding company PSG announced that it would reduce its holding in Capitec Bank from 32% to 4%, earning about R4-billion by selling those shares. Another banking newcomer, Tyme, reported in October 2020 that it had 2.4-million customers, up from 1.4-million at the end of March. A 400% increase in the use of services such as airtime and electricity purchases was also noted. Discovery Bank officially launched in March 2019 and is experiencing rapid growth with deposits of R3.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour. The African Institute of Financial Markets and Risk Management (AIFMRM) aims is to meet the demands for skills by developing local talent. It is supported by the Western Cape Provincial Government, the University of Cape Town, Barclays Africa Group, FirstRand and Liberty.

ONLINE RESOURCES Banking Association South Africa: www.banking.org.za Financial Sector Conduct Authority: www.fsca.co.za Insurance Institute of South Africa: www.iisa.co.za South African Institute of Chartered Accountants: www.saica.co.za

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SECTOR INSIGHT PSG is reducing its stake in Capitec.

The head offices of financial firms are dotted all over Cape Town. These include Old Mutual and Foord (Pinelands), Futuregrowth and Coronation (N ew lan ds), Pr u d ential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well represented in rural towns. Insurers such as Santam and Metropolitan Life are based in Bellville. A newcomer to the Cape financial services sector is Nomura, a Japanese financial holding company. The 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 lead arranger for the bond was Rand Merchant Bank. ■


OVERVIEW

Development finance and SMME support Entrepreneurs are saving the environment.

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mall businesses in the Breede River and Riviersonderend catchment areas are making money from clearing invasive species. Avocado Vision has developed a “Green Business Value Chain” in par tnership with the Depar tment of Environment, Forestr y and Fisheries, environmental organisations and corporates. By turning the unwanted species into sought-after products, a sustainable business is created while simultaneously replenishing water-table levels and restoring grasslands. About 200 species are regarded as invasive and work is being done with 120 SMMEs across South Africa to identify opportunities. The Western Cape Government runs a Premier’s Advancement of Youth Internship Programme which in 2019 had 1 118 participants. There are several Youth Cafes in different parts of the province, where unemployed young people can get advice and training and have access to computers and WiFi. Many startups find the cost of finding and hiring premises prohibitive. Flexible working spaces such as those offered by Workshop17 offer a solution. The company has sites in Paarl, the Gardens and at the Watershed at the V&A Waterfront. The Watershed itself is a popular venue for designers and crafters to display their wares. More than 90% of stock sold out of the Watershed is made locally and some design companies, such as leather product maker Wolf and Maiden, have moved into more exclusive retail space elsewhere in the Waterfront. A study has shown that revenue earned by small enterprises at the V&A Waterfront in 2018 was R329-million, up from R78-million in 2007. Two of the Western Cape’s universities, Stellenbosch and Cape Town, are the first collaborators with the University Technology Fund which aims to commercialise innovations and inventions coming out of tertiary institutions. The UTF will have considerable financial clout as it is a part of the South African SME Fund, an of fshoot of the CEO Initiative which

ONLINE RESOURCES SA SME Fund: sasmefund.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za

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SECTOR INSIGHT Workshop17 has three flexible working spaces in the Western Cape. brought together 50 major co r p o r a t i o n s , t h e Pu b l i c Investment Corporation, the Un emp loy m ent Insur ance Fund and the Compensation Commission. Among the businesses receiving support from the SA SME Fund are Masisizane which helps black entrepreneurs buy petrol stations and Hyrax, a company which emerged from research done at the University of the Western Cape into which HIV-positive people were resistant to certain drugs. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co operatives. The Small Enterprise Development Agency is an agenc y of the DSBD and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. Seda has established a Rapid Incubator in partnership with the Centre for Entrepreneurship (CFE) at False Bay TVET College, Westlake Campus.■ WESTERN CAPE BUSINESS 2021


OVERVIEW

Business Process Outsourcing South Africa was “Offshoring Destination of the Year” in 2018.

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ignificantly lower costs than European competitors and growth rates in the Business Process Outsourcing (BPO) sector that outstrip the global rate make the Western Cape an extremely competitive destination. According to the Everest Group Study (2018), Cape Town’s costs for contact centre work are between 20% and 30% lower than the costs in Eastern and Central Europe. In the same year, 6 172 new jobs were created in the province as a result of an 11% growth rate in the sector. South Africa’s BPO industry is growing twice as fast as the world’s and three times faster than India and the Philippines (Invest Cape Town). BPO involves any internal businesses that a company chooses to outsource to a specialist in that field, for example accounting or customer service centres. UK shop Asda and online retailer Amazon have large customer service centres in Cape Town. Other big brands include British Gas, IBM, KLM, Lufthansa, Mastercard and Microsoft. Global and local BPO investors with operations in Cape Town include TutorABC, CSC, Collinsons Group, Bloomberg, Shell, AskOsca, JTC Group, Wonga, SimplyTalk, Ambition 24 Hour Group and Buongiorno. Inbound customer service (55%), inbound sales (15%) and debt collection (13%) comprise the biggest subsectors of the BPO sector in the Cape (Wesgro). The fact that greater Cape Town is home to three universities, a university of technology and two technical colleges is a major advantage in attracting companies with sophisticated operations. Other factors in favour of the Cape Town area and surrounds are the relatively neutral accents, good infrastructure (financial and telecommunications) and the time zone being the same or close to Europe’s. Sixty-three percent of the offshore market is in the Western Cape where the provincial government has identified BPO as

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

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SECTOR INSIGHT Growth of 11% created 6 172 new jobs in the Western Cape.

one of the six key sectors that can create jobs quickly. The City of Cape Town, the provincial D e p a r t m e nt o f E co n o m i c Development, Agriculture and Tourism (DEDAT) and IT service management company EOH jointly sponsor the training and 12-month learnerships of 175 unemployed work-seekers in BPO. The municipality also trains 20 potential team leaders to build management skills within the sector. The Department of Trade, Indus tr y and Comp etition (dtic) offers incentives to BPO investors. A base incentive is calculated on projec ted offshore jobs to be created and is awarded on actual offshore jobs created. The incentive has a two-tier structure for noncomplex and complex jobs and is paid over a five-year period. A war room to unblock red tape in important job-creating sectors such as BPO has been set up by the Western Cape Provincial Government with financial support from Harvard University. ■


LISTING Department of Social Development MEC: Ms Sharna Fernandez 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

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

Western Cape Provincial Government

Provincial Treasury MEC: Mr David Maynier 3rd Floor, 7 Wale Street, Cape Town 8000 An overviewof ofTransport the Western provincial government departments. Department andCape’s Public Works Tel: +27 21 483 4237 | Fax: +27 21 483 3855 www.westerncape.gov.za MEC: Mr Bonginkosi Madikazela Web: www.westerncape.gov.za/dept/treasury 8th Floor, 9 Dorp Street, Cape Town 8000 Office of the Premier Department of Environmental Affairs and Development Planning Premier: Mr Alan Winde MEC: Mr Anton Bredell Provincial Legislature Building, 1st Floor, 7 Wale Street, Cape Town 8000 8th Floor, 1 Dorp Street, Cape Town 8000 Tel: 0860 142 142 Tel: +27 21 483 4091 Email: service@westerncape.gov.za Department of A guide to the metropolitan, district and local municipalities inHealth the Western Cape. MEC: Dr Nomafrench Mbombo Department of Agriculture 21st Floor, 4 Dorp Street, Cape Town 8000 MEC: Dr Ivan Meyer Tel: +27 21 483Local 3245/5417 CITY CAPE Muldersvlei TOWN Witzenberg Municipality AdminOF Building, Road, METROPOLITAN MUNICIPALITY Elsenburg 7607 Tel: +27 23 316 1854 | Fax: +27 23 316 1877 Department of Human Settlements Tel: +27 Civic 21 808 5111 Podium Block, 6th Floor, 12 Hertzog Website: www.witzenberg.gov.za Address: Centre, MEC: Mr Tertius Simmers Boulevard, Cape Town 8000 27 Wale Street, Cape DISTRICT Town 8001 MUNICIPALITY CENTRAL KAROO Department of Community Safety Tel: +27 21 400 1111 | +27 21 400 1313 Tel: +27 21 6488Street, Beaufort West 6970 MEC:0860 Mr Albert Address: 63483 Donkin Fax: 103 Fritz 090 Tel: +27 23 449 1000 | Fax: +27 23 415 1253 Website: www.capetown.gov.za 35 Wale Street, Cape Town 8000 Department of Local Government Website: www.skdm.co.za Tel: +27 21 483 6949/8588 MEC: Mr Anton Bredell CAPE WINELANDS DISTRICT MUNICIPALITY 8th Floor, Waldorf Building, 80 St George’s Mall, Beaufort West Local Municipality Address: 46 Alexander Street,Affairs Stellenbosch 7599 Department of Cultural and Sport Cape Town 8001 Tel: +27 23 414 8149 | Fax: +27 23 414 8105 Tel: 126 5263 | Fax: +27 21 888 5100 MEC:086 Ms Anroux Marais Tel: +27 21 483 4049/4997 Website: www.beaufortwestmun.co.za Website: www.capewinelands.gov.za Protea House Building, 7th Floor,

Western Cape Local Government

Greenmarket Square, Cape Town 8000 Breede Valley Local Municipality Tel: +27 21 483 9503 Tel: +27 23 348 2600 | Fax: +27 21 883 8871 Website: www.bvm.gov.za Department of Economic Development and Tourism Drakenstein Local Municipality MEC: MrDavid Maynier Tel: +27 21 807 4500 | Fax: +27 21 872 8054 11th Floor, NBS Waldorf Building, Website: www.drakenstein.gov.za 80 St George’s Mall, Cape Town 8001 Tel: Tel:+27 +2721 21483 4835065 9226 Langeberg Local Municipality Tel: +27 23 Cape 615 8000 | Fax: +27Department 23 615 1563 Western Education Website: www.langeberg.gov.za MEC: Ms Debbie Schäfer Grand Central Towers, Parliament Street, Stellenbosch LocalLower Municipality Cape Town 8001 Tel: +27 21 808 8111 | Fax: +27 21 808 8003 Tel: +27 21 467 2000 Website: www.stellenbosch.gov.za

Laingsburg Local Municipality Department of Social Development Tel: 551 Fernandez 1019 | Fax: +27 23 551 1019 MEC:+27 Ms 23 Sharna Website: www.laingsburg.gov.za Union House, 14 Queen Victoria Street, Cape Town 8001 Tel: +27 21 483 5045 Prince Albert Local Municipality Tel: +27 23 541 1320 | Fax: +27 and 23 541 1321 Works Department of Transport Public Website: www.pamun.com MEC: Mr Bonginkosi Madikazela 8th Floor, 9ROUTE Dorp Street, Cape Town 8000 GARDEN DISTRICT MUNICIPALITY Tel: +27 21 483 4813 Address: 54 York Street, George 6530 Tel: +27 44 803Treasury 1300 Provincial Fax: 555 6303 MEC:086 Mr David Maynier Website: 3rd Floor,www.gardenroute.co.za 7 Wale Street, Cape Town 8000 Tel: +27 21 483 4237

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INDEX

INDEX Absa...................................................................................................................................................................................IFC Africa Biomass Company (ABC).....................................................................................................................5, 10 Airlink............................................................................................................................................................................. OBC Cape Chamber of Commerce & Industry......................................................................................... 2-3, IBC College of Cape Town............................................................................................................................... 11, 42-43 Nedbank.................................................................................................................................................................... 18-23 Petroleum Agency South Africa................................................................................................................. 32-33 Vinpro.................................................................................................................................................................................15 Western Cape Business Opportunities Forum (WECBOF)..................................................................13

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The Voice of Business for 217 years The Cape Chamber of Commerce and Industry brings people and businesses together.

The business community also needs a voice. Since 1804 we have provided it and our voice matters. We lobby with integrity. We are independent. We are not affiliated to any political party nor any organisation. We monitor legislation that could affect business interests and submit evidence to Parliamentary standing committees or other authorities. The Chamber leverages media releases, radio interviews and letters to newspapers to alert the public to the likely undesired consequences of legislation and official policies.

Executive Director Sid Peimer

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f ter more than t wo centuries of ser vice to business, t wo industrial revolutions and another one upon us, the Cape Chamber of Commerce and Industry knows one thing has not changed – business is still driven by people who are smart, dynamic and innovative. Businessmen and women have a need to talk to others, meet people to work with, to earn from and generate the excitement of a shared vision. The Chamber offers this and much more – it is literally Where Opportunity Meets™.

Sharing Information Bringing people together is a core function of the Chamber. We hold seminars and workshops to share information and where experts can provide a deeper understanding of issues that affect businesses. In addition, we host conferences, exhibitions, coffee club mornings and landmark events like International Women’s Day and the Disability Summit. Our international trade desk is often the first stop for visiting trade missions and delegations. To support local industry we run seminars to facilitate international trade and arrange for foreign delegations to meet our members. We also issue certificates of origin for exporters and host a Port Liaison Forum where problems with sea freight are discussed and are often solved. Our portfolio committees are specialist forums for numerous sectors, including commerce, industry and agriculture where we invite experts to give members the latest information on developments to enhance their business operations. Staying connected It is apparent that we have never been as technologically connected as we are today, yet we have never been as socially disconnected. The Chamber is the glue that binds us together. ■


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