Issuu on Google+

2013 EDITION

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

THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

www.westerncapebusiness.co.za | www.frontiermarketnetwork.com


University of South Africa

All the support you need when you need it. Did you know that when you study at Unisa you can achieve a globally recognised education with the support from our regional centers? The Western Cape’s two campuses in Cape Town and George give you access to registration facilities and support, computer labs, learning through video-conferencing and satellite broadcasts, library access, tutorial classes and much more.

Learn without limits.


10004122JB

Visit or call us today and start your journey to success: Cape Town: 15 Jean Simonis Street, Parow. Tel: +27 21 936 4114 Fax: +27 21 936 4119 E-mail: capetown@unisa.ac.za George: Joubert Plaza 1, 100 Meade Street, George. Tel: +27 44 884 1300 Fax: +27 44 884 1303 E-mail: george@unisa.ac.za

university of south africa


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


A

AGENCY FOR

PR

SOU

TH

N CA

ION OT M O

I FR

OF PETRO L

M

LO

EU

N TIO ITA

PETROLEUM AGENCY SA

TION AND ORA EX PL P EX

Petroleum Agency SA, based in Bellville, Cape Town, is responsible for the promotion and regulation of exploration and exploitation of oil and gas (petroleum) resources within the Republic (onshore and offshore) on behalf of government in terms of the Mineral and Petroleum Resources Development Act.

Contact us to find out about : Onshore or offshore exploration opportunities for oil and gas in South Africa Permits and rights for reconnaissance, exploration or production Availability of oil and gas related geotechnical data

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


contents

contents western cape business 2013 edition Published by Global Africa Network (Pty) Ltd

11 12 20 45 53 62

Introduction

Foreword11 Western Cape Business is a unique guide to business, investment and tourism in the province.

Foreign direct investments on the rise

12

Premier of the Western Cape Helen Zille shares her enthusiasm for the latest developments in the areas of trade and investment in the Western Cape.

Western Cape is top-performing province

16

Wesgro CEO Nils Flaatten highlights the province’s growth.

City is a centre of growth

18

Cape Town Mayor Patricia de Lille highlights the city’s strengths and opportunities.

Special features

Regional overview of the Western Cape

20

The Western Cape’s already strong financial-services sector is growing fast, and the African offshore gas boom is set to boost the province’s ports.

Overview of the South African economy

28

Key facts and figures on South Africa’s demographics, economy, trade and investment.

George – driving investment in the Garden Route

45

The Garden Route’s leading town has a diverse economy.

Oil and gas bonanza fuels interest in West Coast

53

There are plans to develop an industrial development zone at Saldanha.

Where history meets technology

59

Innovation under the oaks in Stellenbosch.

Hotels holding on in tough times

62

New hotels in Cape Town are bucking a sector trend.

The maritime industry

126

The Western Cape is well placed to lead a lucrative South African maritime industry.

western cape business 2013

4


contents

64 80 87 89 92 132 106

Destination Western Cape

Tourism64 The Western Cape is one of the world’s truly great destinations.

Events and conference facilities

72

A golfing indaba is set for the CTICC in 2013.

Economic sectors

Agriculture80 Former co-ops have transformed themselves into multimillion-rand businesses.

Wine87 Harvests and production volumes are on the up.

Aquaculture and mariculture

89

A container fish farm could boost poor families’ incomes.

Fishing92 Most of South Africa’s big food companies have fishing divisions.

Oil and gas

96

Massive gas finds off the African coast could transform the sector.

Mining100 Cape Town hosts Africa’s biggest mining conference.

Manufacturing103 Experience in boat building is giving the Western Cape an edge in wind-turbine manufacture.

Boatbuilding105 Western Cape companies are world leaders in boatbuilding.

Food and beverages

106

The Western Cape makes every kind of food and beverage.

Engineering107 The Western Cape engineering sector is diverse and well-resourced.

Transport119 The Western Cape has excellent transport infrastructure.

Construction and property

132

Cape Town’s CBD is a hive of building activity.

Water139 The Berg Water Project is one of the country’s biggest.

Energy142 The Western Cape is promoting itself as a manufacturing hub for renewable technologies.

western cape business 2013

6


Pianist and Composer Tax Expert

Unique People. Inspired Results. Billy Joubert: “Writing music involves strict disciplines, but that doesn’t inhibit my creativity in any way.” As a member of our dynamic tax team, pianist and published composer Billy, works exactly to international tax legislation. And his flair allows him to create simple solutions to complex situations. Visit us at www.deloitte.com/za for more about our unique people and inspired results.

Audit I Consulting I Corporate Finance I Risk Advisory I Tax © 2012 Deloitte & Touche. All rights reserved. Member of Deloitte Touche Tohmatsu Limited.

Chillibush8258Deloitte

Billy Joubert


contents

Media147

147 150 152 174 178 202 23

Many national publishers are based in the Western Cape.

Film148 Films and commercials earn the province about R5-billion annually.

Advertising149 Creative Week Cape Town hosted two big advertising awards.

Design150 Cape Town is the World Design Capital for 2014.

Banking and financial services

Insurance167 Insurance companies have a big presence in the Western Cape.

Development finance and SMME support

Education178 Western Cape researchers are world leaders.

Call centres and BPO

194

The BPO sector is growing fast.

Business support services

Sak

Government

South African National Government Western Cape Provincial Government

R 63

en

ro

Western Cape Local Government Carnarvon

Fish

oei

214

Hanover

N12

R63

R63

s

N1

R63

Rie

t

Three Sisters

Fraserburg

Le eu w

Sutherland

ws

Gro

Bre

ede

western cape business 2013 Infanta

Arniston

Struisbaai

Leeu-Gamka

ka

Sou t

Klipplaat

Bay

Gro

ot

s Olifant

R62

ot R62 Montagu R43 Barrydale R62 Franschhoek Robertson Ashton Swellendam Villiersdorp Riversdale Stellenbosch Genadendal t Heidelberg Grabouw N2 N2G Riviersonderend ou don's Bay rit s Caledon e R44 Stillbaai Hermanus einmond Bredasdorp Cape St Sebastian

Gansbaai

N9

Albert map Western Cape Prince locator Willowmore Western Cape Calitzdorpregional map De Rust Uniondale Oudtshoorn Western Cape municipalities Joubertina

Laingsburg Matjiesfontein Touwsrivier ToLadismith u

R 43

Su nd

R 61

N12

Gam

Buffels

N1

Graaff-Reinet

Aberdeen

s ay

yka

ry R44 R45 Wellington Worcester Paarl Rawsonville R60

Dw

N1

R43

Prince Albert Road

R 63

Kariega

Sout

Beaufort West

wa nk Ta

oorreesburg R 44 Tulbagh R 46 West Ceres

Walker Bay

ek

Sector contents 76 Business organisations 197 Index220 Eastern Cape Maps Western Cape

Cederberg

R44

Se

A guide to the metropolitan, district and local municipalities in the Victoria West Williston Western Cape. Richmond Loxton

reference Northern Cape

Citrusdal

N10

R 63

Calvinia

anrhynsdorp

Clanwilliam

212

Britstown

De Aar A guide to the Western Cape’s provincial government departments.

r

R 27

202

An overview of South Africa’s national government departments.

ge On

Nieuwoudtville

7

196

The Western Cape’s varied economy needs multi-skilled support services.

G

R 27

Loeriesfontein

174

Western Cape entrepreneurs are winning awards.

Brandvlei

NCE

152

Financial services is a key provincial sector.

N12

George

R 62

N9

SedgefieldKnysna

Herolds Bay Mossel Bay Vleesbaai

K o u ga

Kareedouw N2

Plettenberg Stormsrivier Bay Cape St Francis

INDIAN8OCEAN 0 0

100 km 100 miles

23 23 216


Contact us: info@usb-ed.com

|

+27(0)21 918 4488


credits

western cape business 2013 www.westerncapebusiness.co.za Western Cape Business is published by Global Africa Network (Pty) Ltd ISSN 1816-370X

Editorial & production Publisher Editor Research and writing Creative director DTP operator Assistant editor Production assistant

Chris Whales Karen Kühlcke John Young Ian Jamieson Colin Carter Katie Reynolds Anjé Robberts

Advertising

National sales manager Loudon Cito Advertising representatives Action Africa, Colleen La Gorge, Debbie Bender-Overmeyer, Jeremy Petersen, Karen Nimmo, Nathalie Horswell, Rashaad Essop and Sam Oliver. Sales support manager Zenobie Knox Sales support assistant Nadia Dicks

Administration Managing director Clive During Financial controller Brett Watson Administration and accounts Charlene Steynberg, Natalie Koopman Distribution Lizé Fourie Printing CTP

Distribution

Western Cape Business is distributed internationally on outgoing and incoming trade missions, through Wesgro and the Cape Chamber of Commerce, to 115 foreign offices in South Africa’s main trading partners around the world; at top international trade fairs; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, companies, major stores and business-class lounges. Member of the Audit Bureau of Circulations

Published by

Global Africa Network (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales, Richard Pembroke Physical address: 3rd Floor, Sunclare Building, 21 Dreyer Street, Claremont 7700, Cape Town, South Africa Postal address: PO Box 44573, Claremont 7735, South Africa Tel: +27 21 657 6200 • Fax: +27 21 674 6943 Email: info@gan.co.za • Website: www.gan.co.za

Copyright

Disclaimer

Western Cape Business is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd.

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

western cape business 2013

Photo credits

10

Photographs: Flickr, Morguefile, AGCO MediaPlace, Anglo American, StockXchng, MediaclubSouthAfrica.com, Wikimedia, Professor Gavin Younge, Geof Kirby, Create Design, Damen Shipyard Cape Town, Asara Wine Estate and Hotel, Tsogo Sun Hotels, Dockside Hotel, and Andre Wessels. Cover photographs: (V&A Waterfront) Tim Wecke, (foundry, wind turbines, shipping container) iStockPhoto, (grapes, vintner, penguin) Veer, (sculpture) Gavin Young.


foreword

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

T

2013 EDITION

he 2013 edition of promoting or supporting deal WESTERN CAPE transactions in rapidly develWestern Cape Business is oping economies. the eighth issue of this BUSINESS The 2013 edition of Western highly successful publication THE GUIDE TO BUSINESS AND INVESTMENT IN THE WESTERN CAPE PROVINCE Cape Business includes an upthat, since its launch in 2005, to-date economic overview has established itself as the of the province (see p20) and premier business and investdetailed overviews of the ment guide to the Western region’s major sectors (see Cape Province. Western Cape Business is unique as a business sector index on p76). journal that focuses exclusively The 2013 edition is introon the Western Cape and that duced with messages from the also carries full Audit Bureau Premier of the Western Cape of Circulations (ABC) certificaHelen Zille (p12), the CEO of tion, meaning its print run and Wesgro Nils Flaatten (p16) and circulation of 16 000 copies the Mayor of the City of Cape Town Patricia de Lille (p18), with is independently audited and verified. The publication has been endorsed by input on the economy and development of the Wesgro, the official tourism, trade and invest- region provided by MEC for Finance, Economic ment promotion agency for the Western Cape, Development and Tourism Alan Winde (p26). since inception. Global Africa Network (www.gan.co.za), the Western Cape Business was originally launched publisher of Western Cape Business, specialises as a print journal to meet the need for a com- in business-to-business print and electronic prehensive and well-researched business guide publications, producing a series of officially to the province. A number of complementary endorsed, region-specific, annual print journals. electronic features have subsequently been Every province in South Africa is now covered introduced to give participants in and readers by this unique range of journals and websites. of the journal a wider range of communication A national business guidebook, South African options. These include the website, www.west- Business, was added to the stable in 2011. erncapebusiness.co.za, an e-book version availGlobal Africa Network thanks the dedicated able through a hyperlink on the website’s home sales team and the professional and committed page, as well as a news feed and press-release writers, editors and designers who worked so service for business, event and investment news hard to produce this edition of Western Cape on the province. Business. We thank the Office of the Premier, New in 2012 was the launch of the Wesgro and the companies, parastatals and other online platform Frontier Market Network organisations that provided us with information (www.frontiermarketnetwork.com), a business and supported this undertaking. network for fast-growing ‘frontier’ markets, Chris Whales which builds on the offering of our popular Publisher, Global Africa Network TradeInvest websites. The community comprises Email: chris@gan.co.za companies, government organisations and indi- www.westerncapebusiness.co.za viduals involved in doing business, investing, www.gan.co.za THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

www.westerncapebusiness.co.za | www.frontiermarketnetwork.com

11

western cape business 2013


message

Foreign direct investments on the rise Premier of the Western Cape Helen Zille shares her enthusiasm for the latest developments in the areas of trade and investment in the Western Cape.

to start. Inside you’ll find the latest insights into the economy of the Western Cape, detailed information about sectors and resources, and what gives us the edge when it comes to trade and investment. The 2013 edition comes at a vibrant and exciting time for our province, with the Western Cape developing tourism’s contribution to the local economy and driving forward our Green Economy agenda with promising new energy projects and infrastructure investment – and that is just to start. Keep reading to learn about the companies, projects and policies that are driving the Western Cape’s economy and helping our province lead South Africa.

Investment Helen Zille

Despite a lacklustre recovery in the US, uncertainty in Europe and slowing growth in China, the Western Cape remains a competitive investment destination – locally and internationally. Between June 2009 and June 2012, the Western Cape attracted 80 foreign direct investment (FDI) projects with a total value of R30.1-billion – a 27% increase on FDI investment between 2005 and 2008. This substantial growth in FDI, in spite of global economic turmoil, has helped highlight the province’s strength elcome to the 2013 as a global investment destination and its growing reputation Western Cape Busi- as a gateway to Africa. The Western Cape is also exercising its investment muscle in ness journal – the only provincial publication Africa, however, helping South Africa gain a foothold in markets with the endorsement of which have traditionally been dominated by Chinese and US the Western Cape’s official investment. Western Cape FDI into Africa grew by 73.3% yearinvestment and trade promo- on-year in 2011, compared to combined national FDI growth into tion agency, Wesgro, and full Africa of 19.8%. The Western Cape also has by far the largest accreditation from the Audit share of FDI in Africa, with 74% of the national total coming Bureau of Circulations of from the province. South Africa. It is clear that the Western Cape has become an investment If you want to invest, trade or hub for the wider African continent. Companies headquartered in network in Cape Town and the Cape Town and the wider province are making substantial African Western Cape, this is the place investments in property development projects and financial

W

western cape business 2013

12


photo: thomas sly/flickr

message natural scenery and attractions, it is no wonder Cape Town was on CNN’s list. This accolade serves to reinforce the Western Cape’s goal of growing tourism’s share of regional GDP from 10% to 15% by 2014. And we’re on the right track. Over the 2011 December holiday, Cape Town International Airport received 86 910 international arrivals – over 17% more than the year before. Regional arrivals also grew by double digits, seeing an incredible The Western Cape has three ports: Saldanha, Mossel Bay and 26% increase. Cape Town. Cape Town International Airport even beat its World services, among others. This is exactly the kind of investment Cup record, seeing 4.21 million that is going to bear fruit for the Western Cape, as many African arrivals in 2011 – over 4% more economies continue to grow faster than their American and than in 2010. European counterparts. Major accolades from TripAdvisor, Lonely Planet, and The New York Times – as well Trade as being named World Design The past year has brought no shortage of good news for the Capital for 2014 – have all Western Cape’s trade prospects. China gave South Africa an boosted Cape Town’s interexclusive platform to showcase its wares to the Chinese market national reputation and are with the SA Exhibition in Beijing and Shanghai. The exhibition helping us in our aim of prowas exclusive to 59 South African exhibitors – 23 of which were moting the city as a destination from the Western Cape. for businessmen and tourists The province’s strongest showing came from the wine sector, from Africa, the Middle East and for which China could prove a valuable export destination. Due the BRICS countries. to its expanding economy, growing middle class and taste for Another sector that has wine, Chinese wine consumption grew by 36% between 2009 seen strong growth is business and 2012 alone. process outsourcing. Already With a cloud still hanging over the US and Europe, two of South a favourite destination for UK Africa’s largest export markets, Africa is proving to be increas- companies, the latest figures ingly fertile ground. According to predictions by the International show that the number of offMonetary Fund, GDP growth for sub-Saharan African countries shore call-centre agents operis expected to be a robust 5%, which is good news for the ating in the Western Cape has province’s exporters and investors. leapt almost 60% between 2007/08 and 2011/12, as overseas companies sought to cut Sectors costs and take advantage of the In June 2012, CNN listed Cape Town as one of the 10 most- Cape’s infrastructure and large loved cities in the world – right alongside the likes of New talent pool of English-speaking York, Paris and Tokyo. With our sought-after climate, beautiful operators.

13

western cape business 2013


message

western cape business 2013

Cape Town was rated as one of the world’s favourite cities. plant that will produce 200MW from solar, 100MW from wind and additional electricity from clean-burning natural gas. Each new Green Economy project not only helps us reduce pollution and our dependence on fossil fuels – it improves the energy security and stability of the Western Cape.

Conclusion The Western Cape has been taking big strides forward, and we want the steps in 2013 to be even bigger – but we cannot do it unless we make the province a great place to do business. That’s why the Western Cape Government remains committed to helping the private sector stay competitive locally and at an international level – as well providing an attractive investment environment for other countries. Trade, investment, tourism, manufacturing, agriculture and the Green Economy are all areas where we intend to help local and international companies become more competitive – because we firmly believe that economic growth, employment and prosperity is driven by business. The Western Cape is also poised to grow tremendously as an African hub and the gateway for international companies to do business in Africa, and the government is already playing its part in making this a reality. We have got the infrastructure, skills and local talent to do all this and more – turning our economic vision into reality.

14

photo: derek keats/flickr

Overall, the call-centre industry in the province has expanded at more than 10% per year for the last four years – a trend that brings substantial investment to the province and one we hope to see continue. Ensuring the province’s energy supply is essential to our continued growth, and the Green Economy is an area where we are determined to lead South Africa. Cape Town has already set itself the target of getting 10% of the city’s energy needs from clean energy sources by 2020 – and with growing investment in the sector, employment in the green economy is expected to grow by more than 500%, from 3 000 in 2010 to 16 000 in 2020. The Western Cape is also fortunate to have business thinktanks like Accelerate Cape Town and international corporations like KPMG cooperating to bring together experts from business, academia and government to grasp the opportunities South Africa’s Green Economy has to offer. But it’s not all talk. Dutch company AEG Power Solutions has constructed a new manufacturing facility just outside Cape Town for its utility-scale solar inverters, that will ultimately produce 200MW every year in clean, solar energy. In addition to Cape Town, the port town of Saldanha may be branching out from oil, shipping and fisheries into clean energy. Pending approval of a new industrial development zone, one of the projects put forward for the West Coast town comprises a renewable energy


Western Cape

WESTERN CAPE

Inspiring new ways

About

56%

of visitors to the Western Cape were from overseas and 42.1% were domestic visitors in 2011

www.tourismcapetown.co.za

AN INSPIRED PLACE TO DO BUSINESS e-mail: info@wesgro.co.za | website: wesgro.co.za


AGROPROCESSING I CREATIVE INDUSTRIES I ENERGY I MIDDLE & BACK OFFICE PROCESSING

THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

NICHE ENGINEERING & MANUFACTURING I SUPPLY CHAIN MANAGEMENT & LOGISTICS I DESTINATION MARKETING

T

he Western Cape has consistently outperformed the other eight provinces

in terms of average annual growth from 2003 to 2010. The Western Cape economy averaged 4.2% growth during this period, outperforming the national economy, which averaged 3.6%. The tertiary sector is the largest contributor of all sectors to the Western Cape economy, with financial, real estate and business services contributing 29.17% to the regional economy in 2010. Primary industries contributed R10.09 bn (3.68%) to the regional GDP in 2010, with R9.6 bn of this value coming from

agriculture, forestry and fishing, which is one of the largest export contributing sectors in the regional economy. Secondary industries contributed R56.92 bn, which accounts for 20.8% of the regional GDP. Over the past financial year, we hosted several CEO Dinners and Investor Luncheons which addressed the State of the Global Economy, Growing the National Economy and Generating New Employment Opportunities. These gatherings were attended by our state leaders and decision makers. Wesgro’s Investment Promotion Unit participated in numerous outward missions and hosted a number of inward delegations, apart from attracting and facilitating foreign direct investment into the regional economy. Renewable energy attraction and facilitation activities included an outward mission to Munich, Germany, which included the first Joint Working Group session. The Agribusiness Investment Unit exceeded its investment target for 2011/12, committing four projects to the value of R82 m against a target of R50 m, and recording 198 jobs for the financial year. The Unit, through its drive to target potential investors, recruited nine quality investment projects into the pipeline, proving that the proactive approach of recruiting investments can achieve ongoing success. Six outward missions were conducted during


the financial year, providing the AIU with a platform to present value propositions to multinational corporations who would look to secure a foothold in Africa. We hosted Mr Zong Jianxin, the Director and Deputy Chief Executive of the Industrial and Commercial Bank of China (ICBC) at a Hong Kong business finance dinner in Cape Town. The ICBC and Standard Bank Group Limited announced an equity deal, which included strategic cooperation. As agreed, the ICBC will be the single largest shareholder of Standard Bank after paying R36.67 bn (USD 5.46 bn) for a 20% stake. The ICBC is committed to improving the trade deficit between SA and China and it will look to financing Chinese importers of South African products. The Trade Promotion Unit has established a working relationship with ICBC in this regard. Over the last year our Trade team assisted 750 companies with export development and led sixteen foreign buying missions. In addition, the unit hosted a buyers dinner linking international buyers with local exporters for Design Indaba. Trade Promotion facilitated the inward mission of the Senegal Investment Promotion and Major Projects Agency (which reports directly to the Senegalese Presidency). The Agency undertook a fact-finding mission to look at tourism, and medical tourism in particular. They mentioned that South Africa came up as a worldwide reference in this regard. The Trade Promotion Unit and the Department of the Premier arranged meetings for the delegation at numerous health-care facilities and medical establishments.

Nils Flaatten: Chief Executive Officer

The Wesgro IQ Unit developed 117 publications, targeted at investors, exporters, government and Western Cape business and are also available to the public through the Wesgro website. The publications developed focus on economic, trade and investment information across various countries and sectors. Destination publications have also been developed specifically to provide information on the Western Cape and various districts. In addition to these publications, the Unit also held two seminars during the financial year under review; the first was entitled Investment Trends and Economic Prospects and the second Eye on Africa: Economic Outlook, Trends and Opportunities.

AN INSPIRED PLACE TO DO BUSINESS e-mail: info@wesgro.co.za | website: wesgro.co.za | Tel: +27 21 487 8600

Nils Flaatten Chief Executive Officer


message

City is a centre of growth Cape Town Mayor Patricia de Lille highlights the city’s strengths and opportunities.

our sophisticated market experience, Cape Town has indeed proved itself as a world-class tourist destination.

Partnerships

Patricia de Lille

C

The City of Cape Town has long recognised the enormous potential that Cape Town holds, and the role it plays both in the provincial and national economy. We have also recognised that economic growth and development cannot exist in isolation, and have thus encouraged partnerships and liaisons with commerce and industry in order to facilitate economic growth both in the city and the province. During my campaign to become Mayor of Cape Town, I committed to – if elected – engage with provincial government and the business sector to form a Western Cape Economic Development Agency. And while time has reshaped the name and stakeholders of this partnership, both the need and the will to unite in order to find a consolidated solution to economic stagnation have not. The City of Cape Town acknowledges the need for a consolidated approach on the part of both business and government, which is necessary to facilitate much needed economic growth. An example of this is the newly launched Economic Development Partnership or EDP: a partnership between commerce and industry in the Western Cape, the City of Cape Town and the Western Cape Provincial Government. This initiative is expected to serve as a driving force of shared economic growth, an agency that

ape Town has often been described as the machine that drives Western Cape business, and rightfully so. Boasting sustainable and expanding finance and business Diverse in culture and heritage, sectors, Cape Town continues to provide the perfect environment Cape Town boasts a rich and for other sectors that are accelerating at a rapid rate vibrant metropolis as dynamic — Patricia de Lille and varied in its people as it is in its environment. Boasting sustainable and consolidates various development strategies to ensure ecoexpanding finance and business nomic growth through best practice that will benefit all in the sectors, Cape Town continues Western Cape. to provide the perfect enviWhile global trends indicate that cities are the centres of ronment for other sectors that growth, we cannot do it alone. The buy-in and support of the are accelerating at a rapid rate. private sector is essential to economic development. Business Between our natural beauty and in the Western Cape and specifically in Cape Town is therefore

western cape business 2013

18


message offered the prime environment in which to succeed and expand. Various campaigns, such as ‘From red tape to red carpet’ (an agreement between the city and provincial government), seek to nullify unnecessary extension of the processes required to establish and increase commercial development, both with provincial and local government, and within the borders of the city and the province.

As we encourage economic development in nodal areas in the city, we also continue to work towards building our broadband infrastructure, so as to increase the data capacity in the city, further adding to our competitive advantage. And in terms of long-term City of Cape Town growth, we are in the final As a means of continuing to acknowledge the enormous role stages of our City Development played by the financial and business sectors in the city’s eco- Strategy, a project in partnership nomic development, the City of Cape Town has made several with the Provincial Government efforts to ensure that we maintain amicable relations between of the Western Cape that seeks to map our development over local government and these sectors. Our R5-billion capital budget will go a long way to providing the next 30 years. Significantly, basic infrastructure that allows for much-needed investment. this project has included the Further, our Integrated Development Plan (IDP) for the next five input of the private sector. years ensures that various directorates of local government are geared towards the common goal of realising our five pillars: Conclusion • An inclusive city • A city of opportunities Cape Town continues to lead • A safe city the region in providing the • A caring city perfect setting for economic • A well-run city growth and development. Cape Town continues to exert itself as the financial, business and tourism destination of the The City of Cape Town acknowledges the need for a consoli- Western Cape, boasting the dated approach on the part of both business and government, best of both worlds: a beauwhich is necessary to facilitate much-needed economic growth tiful, aesthetically rich environment and a commercially — Patricia de Lille sound, metropolitan experience ideal for investment and This strategic policy document ensures a sustained commitment innovation. We thus remain to service delivery. Aligned to the budget, the IDP maintains a committed to working hard to ensure sustainable economic dedication to both economic and social development. Other projects such as the Mayoral Urban Regeneration development and growth, not Programme seek to identify and reinvigorate development only as a city, but as part of nodes in the city. Specialised task teams identify and work in the Western Cape. areas where business districts can be revitalised, social issues need to be addressed and general decay is avoided. Areas such as the Voortrekker Road Corridor, Athlone and Mitchells Plain Town Centre, Manenberg, Hanover Park, Lotus Park, Bishop Lavis, Valhalla Park, Bonteheuwel, Kuyasa, Nyanga and Ocean View are all areas that are currently benefiting from and will continue to benefit from this regeneration programme, the objective of which is to maintain existing commercial activity and attract even more business life.

19

western cape business 2013


a regional overview of the

western cape province

The Western Cape’s already strong financial-services sector is growing fast, and the African offshore gas boom is set to boost the province’s ports. The province has several top universities, and the commercial agriculture and agri-processing sectors are world-class. by John Young

T

he major contributors to the Western Cape’s gross domestic product (GDP) are finance, insurance, real estate and business services (23.5%), manufacturing (17.1%), general government services (15.3%), wholesale and retail, catering and accommodation (13.3%) and transport and communication (10.2%) (Quantec, 2010)

There are four tertiary education institutions in the greater Cape Town area and many further education and training (FET) colleges. George, the leading city of the Garden Route, also has university facilities. The province stretches from the dry northwestern coast to the heavily forested Garden Route regions of the southern Cape via the rugged mountains of the Cederberg, the rolling winelands of the Boland and the Overberg, the fertile valleys of the Klein Karoo and the wide plains of the Great Karoo. The province and the region are most commonly associated with Table Mountain, which watches over the city of Cape Town and forms a national park of its own. The province is well served with infrastructure. Three ports at Saldanha, Cape Town and


special feature Mossel Bay serve different markets, and Cape Town International Airport and George Airport see to air travel needs. The Cape Town International Convention Centre is the province’s leading facility in the events and conference sector, an area of substantial growth for the province. The high-growth sectors in the Western Cape are finance and insurance (where Cape Town is the headquarters for several national concerns), construction, communication, furniture and transport equipment, and boat building. The proportion of GDP that the finance sector contributes has grown from 18.7% in 2000 to 23.5% in 2010. Other sectors that are doing well are film, call centres, design and software in the ICT sector, and various marine sectors, including the servicing of the African oil and gas exploration industry. There is renewed interest in the mining sector because of finds of rare earths, and Saldanha on the West Coast is the focus of investments in several fields. Plans are underway for the creation of an industrial development zone (IDZ) at Saldanha, with a feasibility study for a minerals-processing plant being among the most ambitious of schemes for the proposed zone. The province’s export bouquet is dominated by the food value chain (agriculture, fishing and food and beverages) with outstanding fruit and wine contributing to the province’s international reputation. Seven of the province’s top-10 high-value exports are foodstuffs, and several large companies in agri-processing and the food and beverage Top-five growth sectors

% contribution to growth

Communications

7.6%

Finance and insurance

6%

Radio, TV, instruments, watches and clocks

5.9%

Construction

5.3%

Petroleum products, chemicals, rubber and plastic

4.7%

Projections of average annual growth 2011-2015. SOURCE: Provincial economic review and outlook (PERO), 2012

western cape business 2013

sector are located in the Western Cape. This includes major grain companies such as Bokomo and Sasko, and Ceres fruit juices, all of which are part of Pioneer Foods. Several former cooperatives have turned themselves into very successful agricultural enterprises. In 2011, the Western Cape attracted R8.7-billion in foreign direct investment (FDI). This came by way of 22 projects. In the period 20092011, the best-performing sectors in attracting FDI were software and IT (13 projects), business services (eight), financial services (seven) and communications (six). The highest levels of capital value tended to be in communications, renewable energy and tourism.

Prospects The business process outsourcing sector is poised for even more significant growth, after taking big strides in the 2010-2012 period. The local agency promoting the sector and the provincial government are very upbeat about its prospects. Environment and Tourism MEC Alan Winde believes that the ‘Next Big Thing’ is the servicing of the oil and gas sector. He puts the value on the servicing of the oil industry around the continent of Africa in the years to 2017 at $220-billion. Alan wants South African ports to make a concerted bid for the business: this would include Saldanha, Cape Town and Mossel Bay, all of which have capacity and experience in oil-rig repair and maintenance. Alan is also enthusiastic about the potential of medical companies. ‘There are more Western Cape companies making prosthetics than anywhere else in Africa,’ says Alan. The provincial government has established a Health Park near Vincent Palotti Hospital. BioVac is a major manufacturer of vaccines. Two provincial initiatives to promote growth are: • The Red Tape Unit – part of the provincial government’s drive to make doing business easier. It claimed an 80% resolution rate in the first 300 cases that it handled. • The establishment of the Economic Development Partnership. The board is led by former cabinet minister Barbara

22


special feature ZIMBABWE MOZAMBIQUE

BOTSWANA Limpopo NAMIBIA Mpumalanga

Gauteng

North West

SWAZILAND

Free State Northern Cape

KwaZuluNatal

LESOTHO

Eastern Cape

Western Cape

Britstown

Brandvlei

Garies

ro G

R 27

WESTERN CAPE PROVINCE Groen

Carnarvon

Loeriesfontein

t

Sout

So u

Malmesbury

Melkbosstrand Robben Island (World Heritage Site) TableDurbanville Bay

R44

N1

R43

R45 Wellington Worcester Paarl Rawsonville R60

Le eu w

ws

R43

R62

Groot

Barrydale

Bre

ede

Motorway Main Road Railway

Walker Bay

Infanta

R 43

Arniston

Gansbaai Quoin Point

Struisbaai

Struisbaai

Eastern Cape

Leeu-Gamka

Sou t

Bay

Klipplaat

Prince Albert

Willowmore

Gro

ot

s Olifant

Calitzdorp

De Rust

R62

Oudtshoorn

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

Su nd

N9

Gam

Laingsburg Matjiesfontein Touwsrivier ToLadismith u Montagu

Aberdeen R 61

N12

ka

Buffels

yka

Dassen Island

N1

Graaff-Reinet

s ay

Dw

Moorreesburg R 44 Tulbagh R 46 Riebeek West Ceres Darling R45

Prince Albert Road

R 63

Kariega

Sutherland

Western Cape

R44

N7

Richmond

Three Sisters

Fraserburg

wa nk Ta

Piketberg

R27 Langebaan

r

Fish

Rie

Velddrif R45

N1

R63

Beaufort West

Citrusdal

R79

Victoria Wests

Loxton

Northern Cape

Cederberg

R27

St Helena Bay

N

Williston

R 63

Clanwilliam

ATLANTIC OCEAN

oei

Calvinia

Vredendal R27

Lambert's Bay

ek

ge On

R 27

Vanrhynsdorp

R27

Saldanha Bay

R63

Nieuwoudtville

Se

Hanover

N12 R63

t

R27

Paternoster Vredenburg Saldanha

N10

R 63

Sak

N7

De Aar

en

Kliprand

N12

George

Uniondale R 62

N9

SedgefieldKnysna

Herolds Bay Mossel Bay Vleesbaai

K o u ga

Joubertina Kareedouw

N2

Plettenberg Stormsrivier Bay Cape St Francis

INDIAN OCEAN 0 0

100 km 100 miles

Cape Agulhas

23

western cape business 2013


special feature Hogan, but differs from similar bodies in not being representative of organisations. Rather, individuals volunteer to drive the economic growth plan of the city. The former Cape Town city manager and current chief executive of the Cape Town Partnership is convinced that ‘partnership’ is the best model for such a body. Economic growth is expected to average 4.2% for the five years from 2011 to 2015, according to the provincial government’s Provincial Economic Review and Outlook (Pero). At municipal level, there are Integrated Development Plans, and various levels of government are expected to cooperate in planning. The Western Cape has a Provincial Spatial Development Framework.

Regions The boundaries of the district municipalities of the Western Cape coincide with the regions’ tourism areas.

The Port of Cape Town is ideally situated at the crossroads of some of the world’s most important trade routes, making the transport, maritime and logistics sectors very important. Bunkering and ship repair, and the boat-repair and boat-building industries are on the rise. The port plays a major role in exporting the province’s fruit, wine and other agricultural products to international markets.

West Coast District Municipality Towns: Saldanha, Malmesbury, Clanwilliam, Vredenburg, Moorreesburg. The economy of this region is quite diverse: manufacturing in Saldanha, Atlantis and Malmesbury, agriculture and forestry centred on inland towns like Moorreesburg (wheat) and Cedarberg (forestry), citrus farming (Citrusdal), cement-making in Riebeeck West and Piketberg, and marine activity and fishing all along the coast. The rooibos tea sector is a feature of Clanwilliam’s economy, while shoe manufacturers are also present. The remote mission station of Wupperthal is famous for its veldskoene. Mining is becoming an increasingly important sector, with titanium, zirconium, phosphate and limestone being among the most important finds. A feasibility study has given a positive answer on the issue of transforming Saldanha into an IDZ.

City of Cape Town Metropolitan Municipality Cape Town is the engine of the regional economy, with most of the Western Cape’s industry located within the metropolitan area of Cape Town. It is a culturally diverse and dynamic metropolis set among beautiful beaches and winelands with a backdrop of iconic Table Mountain. Cape Winelands District The largest sector in the city’s economy is Municipality the financial and business services industry. The city has a population of 3.2 million and Towns: Stellenbosch, Paarl, Worcester, contributes 76% of the regional gross domestic Robertson, Wellington, Franschhoek. product. The Cape Town CBD has: Nearly 70% of South Africa’s wine comes • More than 1 200 shops from this area. A good percentage of this wine • More than 500 law offices is exported, and the wine estates themselves • 47% of Cape Town’s visitor accommodation attract tourists with wine-tasting and restauThe City of Cape Town is home to the nation’s rants. Tourism in the Winelands has matured parliament and is the site of two World Heritage beyond day-trips from Cape Town, to incorSites: the Cape Floral Region (including Table porate wellness spas, adventure tourism Mountain) and Robben Island. and even game farms boasting the Big Five. The city shares with Cairo the title of most- Worcester has a casino and new regional visited African destination; the Soccer World shopping complex. Manufacturing is concenCup boosted this status to such an extent that trated on processing grapes and fruit into British Airways put on an extra daily flight to wine, juice, brandy, and dried and tinned fruit products. Dairy manufacturer Parmalat has the city from London. western cape business 2013

24


special feature an award-winning cheese-making facility in Bonnievale. Robertson is known for roses and thoroughbred horses.

Overberg District Municipality Towns: Caledon, Bredasdorp, Hermanus, Swellendam, Cape Agulhas. The Overberg contains the southernmost tip of Africa (Cape Agulhas), the oldest mission station in South Africa (Genadendal), a large casino resort (in Caledon) and some of the best whale viewing in the world (Whale Coast). It also hosts some high-quality fruit farms in the Ceres Valley, and rural villages that are popular with tourists, such as Barrydale and Greyton. Agriculture is the principal economic activity of the region, with wheat, dairy, deciduous fruit and onions being among the main products. Barley, hops and flower cultivation are growing sectors.

Eden District Municipality Towns: George, Oudtshoorn, Knysna, Mossel Bay, Plettenberg Bay. The area is known as the Cape Garden Route and Klein Karoo for tourism purposes – and tourism is a major economic activity for the region (making up 15% of gross geographical product). Community services, financial,

property and business services, manufacturing and agriculture are the other main sectors. Mossel Bay is home to South Africa’s main gas-processing plant, while George is a node of manufacturing, trade and administration and education. Golfers are well catered for in George, as they are all along the Garden Route. Knysna and Plettenberg Bay are favourite tourist destinations.

Central Karoo District Municipality Towns: Beaufort West, Laingsburg, Prince Albert. The largest district in the province has the smallest population, a reflection of the semidesert conditions that prevail in the area named ‘thirstland’ by its original inhabitants. Sheep farming predominates in the region. Beaufort West is strategically positioned on the N1 highway, which links Cape Town with the interior of South Africa. The nearby Karoo National Park is a national asset that aims to reclaim the original flora of the Karoo. Prince Albert is a quaint town situated in the shadow of the Swartberg Mountain. Dramatic portals link the Karoo to the Klein Karoo: the Swartberg Pass (connecting Oudtshoorn to Prince Albert), Seweweekspoort and Meiringspoort.

Product

Value

Oils, petroleum, bituminous, (except crude)

R5.8-billion

% growth, 2010-2011 12%

Grape wine

R5.3-billion

-4%

Citrus fruit

R5.1-billion

3%

Apples, pears, quinces (all fresh)

R3-billion

13%

Grapes, fresh or dried

R2.8-billion

-6%

Liquid gas centrifuges, filtering, purifying machines

R2.2-billion

34%

Maize

R1.6-billion

125%

Fruit, nuts, edible plant parts (prepared/unprepared)

R1.2-billion

-12%

Fruit and vegetable juices

R0.99-billion

20%

Diodes, transistors, semi-conductors

R0.93-billion

-22%

Top-ten exports from the Western Cape. SOURCE: Quantec, 2011, via Wesgro.

25

western cape business 2013


interview

Success through collaboration MEC for Finance, Economic Development and Tourism Alan Winde outlines plans to promote and grow economic development in the Western Cape.

Alan Winde

Alan Winde became MEC for Finance, Economic Development and Tourism in May 2009, shortly after the DA won the Western Cape Province. Alan has been a member of the Western Cape Provincial Legislature since 1999. During his first term, he served as Western Cape provincial finance chairman and executive committee member with the Democratic Party. He has also served as the chief whip of the official opposition in the Western Cape, as DA spokesperson on Environment and Planning and as deputy DA spokesperson on Economic Development and Tourism. western cape business 2013

Please give an overview of the rationale behind the formation of the Economic Development Partnership, what it hopes to achieve and the role of the Western Cape Provincial Government in the Partnership. When we came into office in 2009, we found the Western Cape lacking a common economic agenda and strategy, and with a disjointed regional economic delivery system. It is with this understanding that two years ago, the idea came about of an institution that would bring together all actors in the economy in order to build effective partnerships between citizens, business and government for inclusive growth. Thus, the Western Cape Economic Development Partnership (EDP) was born, launched on 26 April 2012 as an independent, nonpartisan membership-based not-for-profit company that will lead, coordinate and drive the Western Cape economic delivery system, and mobilise and organise partners across all sectors, spheres and regions to establish a common agenda and align mandates and resources. Therefore, partners can collectively and more creatively address the multiple and persistent challenges of unemployment, poverty and inequality facing our region. The EDP will focus on co-creating an economic vision and strategy for the region, coordinating efforts across silos, spheres of government, institutions, sectors and boundaries, and facilitating local implementation partnerships. The EDP can be characterised as an ‘intermediary’ organisation that facilitates collaborative activities between members, and supports the establishment of local economic partnerships. The Western Cape Province has a strategic advantage when it comes to the business process outsourcing and offshoring (BPO&O) sector. How do you see the outlook for this sector in the Western Cape and what is the provincial government doing to drive its growth? Since 2003, the BPO&O/call-centre industry has grown significantly, and now has an estimated 33 500 employees (agents, support staff and management). In total, the industry generates approximately R7.9-billion per annum, making it a key contributor to the GDP of the Western Cape.

26


interview The value of foreign investment into BPO ser- come armed with the skills and experience to vices in the Western Cape exceeded R1-billion. actively lead the EDP in its vital task of building The expansion of the BPO sector is strategi- partnerships that will strengthen and streamcally important to the Western Cape, as it pri- line the way that we conduct business within marily creates jobs for youth, the demographic our region and internationally. We are in full with the highest rates of unemployment. It support of her appointment. has become an important avenue for youth to become work ready and gain skills. The How do you see the outlook for the tourism average entry-level salary for agents working industry, in the light of factors such as SAA’s in a captive environment is R6 500+ per month. decision to cut flights to London from Cape Town, the downturn in the world economy and talk of a dedicated dock for cruise liners in Cape Town? The expansion of the BPO sector is strategically Tourism arrivals statistics show that the Western important to the Western Cape, as it primarily Cape had a 14.5% increase in international creates jobs for youth, the demographic with the arrivals year-on-year at the end of 2011. We highest rates of unemployment. are focusing our resources on increasing this. Our tourism destination, investment and trade – Alan Winde promotion agency will continue to market the Western Cape as a desirable tourism destinaThe Western Cape Provincial Government, tion to both local and international markets. the City of Cape Town, the Department of Trade and Industry, BPeSA Western Cape and What is being done to stimulate the renewthe private sector have come together to make able energy industry in the Western Cape? the Western Cape an outsourcing destination The Western Cape government established of choice through various programmes. These Green Cape in November 2010, a governinclude incentive schemes that have sig- ment-funded, industry-led agency tasked with nificantly reduced operating costs and have unlocking the manufacturing and employment attracted various international brands and potential of the Green Economy. Green Cape has outsourcers to Cape Town. already made some significant progress in this It is noteworthy that the sector will create regard to date. Information about its projects is 4 200 new call-centre seats over the coming available at http://green-cape.co.za/projects/ The Western Cape government also recently year. The value of foreign investment into BPO services in the Western Cape exceeded launched the 110% Green campaign, a cataR1-billion. lyst to build a critical mass of activity that puts These successes are a result of more the Western Cape well on the road towards focused marketing of the value proposition of becoming Africa’s green economic hub – a key the region, increased cost drivers in traditional economic goal of the province. BPO regions and issues around quality of other Your views on the Western Cape as a business traditional BPO destinations. To maintain the accelerated growth in and investment destination? the region, greater focus will be required on The Western Cape is a great business destinasupply-side issues, particularly around the tion. The figures speak for themselves – from development of a broad skills pipeline for 2009 to June 2012, the Western Cape attracted the industry. 80 international foreign direct investment projects with a total value of R30.1-billion, creating How do you see the appointment of Barbara 6 906 jobs. This is an R8-billion (27%) increase Hogan as chairman of the board of the EDP? in the foreign direct investment recorded in the The Wesgro board, and its chair Barbara Hogan, Western Cape between 2005 and 2008.

27

western cape business 2013


special feature

Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment.

South Africa fact file Capital: Pretoria Population: 51.8 million Area: 1 220 813km2 GDP: R2 964-billion (2011) GDP growth: 3.1% (2011) Income per capita: R58 549 (2011) CPI: 6.1% y/y (April 2012) PPI: 6.6% y/y (April 2012) Unemployment: 25.5% (Q3 2012) Gini Index: 57.8 (2009 UN Report)

Gross domestic product South Africa’s real gross domestic product (GDP) growth slowed to a 2.7% increase on a quarteron-quarter seasonally adjusted annualised (q/q saa) basis – 2.1% year-on-year (y/y) in the first quarter of 2012 from 3.2% q/q saa (2.9% y/y) – in the fourth quarter of 2011 (Table 1). The largest industries, as measured by their nominal value added in the first quarter 2012, were finance, real estate and business services, making up 19.3% of the economy, and general government services making up 14.6%. The q/q saa changes in value added by the primary, secondary and tertiary sectors were -11.2%, 6.4%, and 3.0% respectively, during the first quarter of 2012. What is noteworthy, however, is that the mining sector – the number-one export industry in the country – declined by 16.8% q/q saa in the first quarter, due in part to a six-week illegal strike at Impala Platinum, the world’s secondlargest platinum miner.

Year

Q1

Q2

Q3

Q4

Annual

2004

6.2

5.7

6.7

4.3

4.6

2005

4.1

7.4

5.6

2.7

5.3

2006

6.2

6.7

4.8

6.4

5.6

2007

6.5

3.1

5.0

6.0

5.5

2008

2.9

4.5

1.8

-1.7

3.6

2009

-6.3

-2.8

1.8

3.5

-1.5

2010

4.0

2.8

3.1

4.5

2.9

2011

4.6

1.0

1.7

3.2

3.1

2012

2.7

3.2

Table 1: GDP growth per quarter, 2003–2012 Q1, constant prices, q/q seasonally adjusted annualised. Source: Statistics South Africa

GDP (R-m)

GDP per capita (R)

2001

1 020 007

22 899

2002

1 168 699

25 831

2003

1 260 693

27 631

2004

1 415 273

30 297

2005

1 571 082

33 176

Year

2006

1 767 422

36 844

2007

2 016 185

41 525

2008

2 262 502

46 072

2009

2 398 155

48 318

2010

2 661 434

53 088

2011

2 964 261

58 549

Table 2: GDP and GDP per capita at current prices. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA

western cape business 2013

28


special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water

Value in millions (R)

% Real change from 2010

% of GDP

63 984

-.04

2.2

2 260 381

0.2

8.8

357 756

2.4

12.1

78 532

1.3

2.6

Construction (contractors)

120 420

0.8

4.1

Wholesale and retail trade, catering and accommodation

386 430

4.4

13.0

Transport, storage and communications

220 060

3.3

7.4

Finance and insurance, real estate and business services

565 224

3.5

19.1

Personal services

183 493

2.4

6.2

General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices

434 224

3.9

14.6

2 670 504

3.0

90.1

293 757

4.4

9.9

2 964 261

3.1

100

Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. Source: Statistics South Africa

partners in April 2012, after a deficit of R5.5billion in March, taking the cumulative trade South Africa’s international trade has risen deficit in April 2011 to R36.5-billion, compared sharply over the last 10 years (Table 4). In with R7.5-billion in the first four months of 2011. 2004, the value of imports rose above that of A record R17.4-billion deficit was set in exports. Tables 5 and 6 show the largest import January 2009, but as exports began to improve, and export sectors respectively, for April 2012. so the deficits narrowed in 2009 to become Important import sectors in April 2012 were surpluses in 2010. South Africa recorded its first machinery (R15.9-billion), mineral products – annual trade surplus in seven years in 2010 of chiefly crude oil (R13-billion), transport equip- R4.8-billion, following a few stronger than ment (R10.9-billion) and chemicals (R5.4-billion). expected surpluses on the trade account during On the export side, the most important sectors the year. In 2012, however, the rise in the oil were mineral products, chiefly coal and iron ore price in the first few months, coupled with a (R14.8-billion), precious metals and diamonds sharp reduction in platinum exports, saw the (R10.2-billion), base metals (R7-billion) and non-SACU foreign trade balance firmly in the red. transport equipment (R4.6-billion). The old myth that a weaker rand leads to more Most of South Africa’s foreign trade takes place exports is once again disproved by the facts, as with Asia, the United States and Germany (Tables import growth was 23.5% in 2011, while export 7 and 8). In 2011, China, the United States and growth was 19.9% when the rand was weaker Japan were, in descending order, the country’s due to a R15-billion deficit. Prior to November top export markets, while top import-source 2011, when the rand had been stronger, export countries were China, Germany and the US. growth had exceeded import growth. In 2010, South Africa recorded a trade deficit of when the rand was strong because export growth R9.9-billion for its trade with non-Southern of 14.9% exceeded import growth of 8.1%, there African Customs Union (non-SACU) trading was a R4.8-billion surplus, the first annual surplus

Trade: imports and exports

29

western cape business 2013


special feature Year

Imports in R-m

Exports in R-m

1999

147 356

165 555

2000

187 608

210 373

2001

216 033

251 330

2002

275 427

314 102

2003

258 839

275 581

2004

306 927

296 246

2005

351 665

331 405

2006

465 040

396 529

2007

561 194

491 253

2008

727 632

663 099

2009

541 173

513 864

2010

585 219

590 207

2011

722 637

707 511

Sector

Value in R-m

1. Machinery, mechanical and electrical

15 903

2. Mineral products

12 991

3. Transport equipment

10 880

4. Chemical products

5 420

5. Base metals

3 190

6. Plastics, rubber

2 591

7. Textiles

1 726

8. Optical, medical, photographic

1 579

9. Foodstuffs, beverages

1 433

10. Vegetable products Total

1 045 62 028

Table 5: South Africa’s top 10 import sectors, April 2012.

Table 4: Annual value of South African non-SACU imports and exports, 1998–2011.

Source: Source: www.sars.gov.za

Source: www.sars.gov.za.

since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe (122), Ivory Coast (123), Kenya (105), Tanzania (97), Argentina (95) and India (84).

Foreign direct investment and public investment South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRIC (Brazil, Russia, India and China) countries in the upcoming 12 months, according to Grant Thornton’s 2011 International Business Report (IBR) on M&A activity. SA was invited to join the BRIC grouping in 2011. South Africa also fared well in a number of other indices. It was ranked 45th out of 133 on the World Economic Forum’s Global Competitiveness western cape business 2013

30

Sector

Value in R-m

1. Mineral products

14 841

2. Precious metals and diamonds

10 239

3. Base metals

6 968

4. Transport equipment

4 613

5. Machinery, mechanical, electrical

4 460

6. Chemicals

3 350

7. Vegetable products

1 738

8. Foodstuffs, beverages

1 497

9. Plastics, rubber products

1 126

10. Pulp and paper

779

11. Animals, animal products

378

Total

52 154

Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za


special feature Index for 2009/10, and improved to 54 out of 139 countries in 2010/11. It was 32nd out of 181 countries in the World Bank and International Finance Corporation’s Doing Business 2009 report, and 34 out of 183 in 2010. This study measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was at number 35 in 2008. Public-sector infrastructure investment, the expansion of electricity generation and distribution capacity by electricity supplier Eskom, upgrades to ports and railways by state-owned enterprise Transnet, and major road-construction projects remain the major challenges for the economy, but government continues to invest strongly in all areas. The ratio of fixed capital investment to GDP rose consistently over the five years to the end of 2008, to reach 24.6%, just below the government’s target of 25%. A cut-back in both government and private-sector fixed investment saw the ratio drop to 18.9% in the fourth quarter of 2010, before starting a slow recovery. General government fixed investment had the first quarterly increase in the second quarter of 2011 after nine quarters of decline. Total fixed investment has now increased for eight consecutive quarters and should continue to support growth going forward. Consumer spending has been robust, even as households repaired their balance sheets. Country 1. China

The last time household expenditure growth exceeded income growth on a q/q saa basis was back in the fourth quarter of 2007. The result of this, as well as a marked reduction in interest rates, was that the household debt to income ratio fell to 74.6% in the fourth quarter of 2011 from 75.6% in the third quarter of 2011 and a peak of 82.7% in the first quarter of 2008. The debt service ratio eased to 6.7% in the fourth quarter from 6.8% in the third quarter, and is now at levels last reached in 2005.

Value in R-m

Year

Q1

Q2

Q3

Q4

2003

15.70

16.00

15.90

16.00

2004

16.00

16.20

16.20

16.20

2005

16.50

16.00

17.00

17.10

2006

17.70

18.60

18.90

19.70

2007

19.70

21.20

20.40

20.20

2008

21.05

22.44

24.02

24.64

2009

23.20

22.40

21.20

20.30

2010

20.30

19.88

19.40

18.90

2011

18.80

19.00

18.90

18.90

Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za

Country

103 174

1. China

Value in R-m 90 210

2. Germany

77 396

2. United States

61 044

3. USA

56 944

3. Japan

55 635

4. Japan

34 377

4. Germany

42 684

5. Saudi Arabia

32 294

5. UK

29 001

6. India

29 220

6. India

22 224

7. UK

28 965

7. Switzerland

22 902

8. Iran

27 121

8. Netherlands

22 902

9. Nigeria

22 655

9. Zimbabwe

17 776

10. Italy

19 574

10. Mozambique

17 680

Table 7: South Africa’s top 10 import source countries in 2011.

Table 8: South Africa’s top 10 export markets, in 2011.

Source: www.sars.gov.za

Source: www.sars.gov.za

31

western cape business 2013


THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

S

WHY EXPORT FROM THE WESTERN CAPE?

outh African wine exports to China have been growing 50% annually, for the past three years, making China one of South Africa’s top 10 export destinations. Exporting Advantage • •

INCREASED SALES – Exports support your sales drives by allowing you to find more clients INCREASED PROFIT MARGINS – Exporting can allow you to increase your production and through economies of scale increase your profit margins INCREASED COMPETITIVENESS – Exporting could accelerate your business growth through exposing you to different technologies, best practices and processes and thereby facilitating your own creative innovations. REDUCED RISK – Exporting reduces your risk and reliance on fluctuations in your local market and when properly planned and executed allows you to take advantage of fluctuations in other markets.

The Wesgro Export Development Programme (EDP)

The Export Development Programme is an opportunity for established Western Cape based SME’s to improve their international trade management knowledge and expertise.

The EDP offers developmental support, access and crucial market information into foreign markets. Along with this, the programme aims to empower entrants though training focused on export readiness and is aligned with relevant industry mentors.

Outward Selling Initiatives

Overseas exhibitions and outward selling mission allow the Western Cape exporter access to major buyers, governments and supply chains in overseas markets as well as advice on forming international joint ventures and partnerships.

Inward Buying Initiatives

Each business and each market is unique. Foreign buyers often engage in visiting markets to meet with potential suppliers of products and services.

Forthcoming Markets

Wesgro has been actively promoting the Western African Trade Corridor since 2004. Promoting intra-African trade is an important and on-going project that is not only conducive to business; it also promotes the strengthening of political ties and stability. Wesgro has also identified the following crucial developing markets; Brazil, Russia, India and China for their trade potential. These countries have expressed a keen interest in our business offerings and the agency is committed to building relationships with these rapidly growing markets.

Sustained Markets

Our relationships with established traditional markets namely Europe and the USA are still a priority. We have built a reputable name and relationship with these counties, shaping out our niche positioning in their market. It is Wesgro’s undertaking to continue our reach into these markets by growing our market share and expanding our reach. T: +27 21 487 8600 E: info@wesgro.co.za


THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

50%

South African wine exports to China have been growing by 50% annually for the past three years

Wesgro is the official Destination Marketing, Investment and Trade Promotion Agency for the Western Cape, located in Cape Town, South Africa. We are the first point of contact for foreign buyers, local exporters and investors wishing to take advantage of the unlimited business potential in Cape Town and the Western Cape.

AN INSPIRED PLACE TO DO BUSINESS e-mail: info@wesgro.co.za | website: wesgro.co.za


THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

Wesgro Services Accessing Finance This involves the facilitation of meetings with potential funders, private individuals, banks, private equity firms and public funds amongst others, to suit your individual financial requirements.

well as Wesgro IQ (research unit). Wesgro offers up-to-date information on economic profiles, sector intelligence, and trade conditions in various regions and countries, as well as trade and investment intelligence and business opportunities for Western Cape businesses.

Advocacy Wesgro aims to identify constraints to investors and alert decision makers to the negative effects that certain policies may have on the business environment.

Immigration Wesgro has established sound relationships with external immigration consultants. As part of our service offering we assist clients in obtaining work permits, visa’s and letters of support, amongst others.

Marketing Support This includes promotional support for new and existing investors. Wesgro utilises its core mediums of communication and relationships with the media to profile new and existing investors

Strategic Partnerships Wesgro’s strategic relationship with industry players, government authorities and the business community within the Western Cape enables it to provide a unique matchmaking service.

Financial Incentives Wesgro is adept at sourcing incentives for foreign and local investors.

Location Benchmarking This is a process that entails the provision of information based on the Financial Times tool, which highlights competing locations and compares the costs and quality of a specific location. Wesgro can benchmark the operating cost of Cape Town against more than 40 other global locations in both developed and emerging markets.

Marketing Intelligence The Agency provides sector and market specific intelligence collated by investment specialists, as

Retention & Expansion Wesgro provides an aftercare programme to existing clients. It aims to ensure that investors are satisfied and assists clients with challenges that may arise.

Site Location Wesgro assists in identifying specific site requirements derived from the needs and operations of the enterprise in question. Once the list of requirements has been established Wesgro utilizes its extensive database and networks across the private and public sector in order to short list potential sites.

Website: wesgro.co.za | Tel: +27 21 487 8600


THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

ZAR2.56bn

Inward FDI in the WC Software & IT Services sector amounted to ZAR2.56bn in 2012

Wesgro is the official Destination Marketing, Investment and Trade Promotion Agency for the Western Cape, located in Cape Town, South Africa. We are the first point of contact for foreign buyers, local exporters and investors wishing to take advantage of the unlimited business potential in Cape Town and the Western Cape.

AN INSPIRED PLACE TO DO BUSINESS e-mail: info@wesgro.co.za | website: wesgro.co.za


focus

Islamic Forward Exchange Contracts Absa Islamic Banking offers a new Shari’ah-compliant trade product for businesses or individuals involved in international trade.

T

his innovative product is approved by the independent Shari’ah Supervisory Board of Absa Islamic Banking. The Islamic Forward Exchange Contract is yet another way of offering customers flexibility and choice and reflects the innovative approach the business is taking. When trading across borders, either as an individual or as a business, customers can now mitigate their currency exposure with the new Absa Islamic Forward Exchange Contract, thus eliminating the risk associated with sudden currency movements beyond the agreed forward rate. The main differences between conventional and Shari’ah-compliant Forward Exchange Contracts are that: • Conventionally, the contract is concluded on the dealing date, whereas Islamic Forward Exchange Contracts will only conclude on the maturity date, while a unilateral undertaking is given on the initial deal date. • Conventional agreements are binding and enforceable on both parties, while Islamic Forward Exchange undertakings are binding on the customer. • Delivery in conventional contracts is made on the maturity date, while Islamic Forward Exchange Contracts require the contract and spot delivery to occur on the maturity date, or at any time between the initial undertaking date and maturity date. A Shari’ah-compliant Forward Exchange Contract is initially a legally binding undertaking by a customer to buy or sell currency for an agreed price (exchange rate). On the maturity date of the Forward Exchange Contract, the WESTERN CAPE BUSINESS 2013

36

relevant currency amounts are exchanged between the customer and the bank. The following Shari’ah-compliant Forward Exchange Contracts are available: Fixed Forward Exchange Contract: The client undertakes to purchase or sell currency on a specific maturity date. Partially optional Forward Exchange Contract: The client undertakes to purchase or sell currency during a specified period occurring between the undertaking date and the maturity date. Fully optional Forward Exchange Contract: The client undertakes to purchase or sell currency at any time between the undertaking date and the maturity date. The advantage of the Islamic Forward Exchange Contract is that customers can budget and cost their business transactions with more certainty since the risk of sudden unfavourable currency movements is eliminated. In addition, customers can conclude their complex trade deals without compromising Shari’ah economic principles. Acting Head of Islamic Banking, Yusuf Suliman emphasised that ‘Islamic Forward Exchange Contracts are not only for Muslim customers, but available to anyone wishing to adopt an alternative approach to their banking services’. www.absa.co.za


interview

Adjusting to a changing economy Andrew Boraine, chief executive at the Cape Town Partnership, talks about the Economic Development Partnership, and the role of the city as a global player in the fields of events and design.

Andrew Boraine

How did the Economic Development Partnership come into being? The EDP was launched in April 2012. It took 18 months of discussions and research to put it together. It is a cross-sector partnership; in other words, it’s a little bit wider than a publicprivate partnership. In fact, there are six categories of members, and they range from the three tiers of government, to business associations, community-based associations, trade unions and non-governmental organisations, etc. Its current membership base is 128 organisations that between them make up the core of the regional economic delivery system. The EDP is what we call an intermediary organisation, deliberately in-between the various sectors. Often, when people engage in partnerships, it is on an ad hoc basis, so the EDP creates a permanent platform for working together.

Andrew Boraine is chief What do you hope to achieve with this structure? executive of the Cape Town We want to create a common, shared vision for the economy, Partnership, a public-pri- because there is a lot of pulling in different directions between vate partnership focusing government, business and communities. To the outside world, on the regeneration of the that doesn’t present a united message. With a shared vision and Cape Town Central City, and a common agenda, we can find ways to deal with the issues that convenor of the recently the Western Cape is faced with. To do that, we’ve been running formed Western Cape something called One Cape 2040, which aims to put forward a Economic Deveopment vision of where we need to go over the next two to three decades. There are a number of transitions that we will need to get through. Partnership.Andrew has been involved in South For instance, we have identified the education/skills transition, Africa’s local government people just aren’t skilled enough to deal with the ways in which the and urban development economy is changing to a knowledge-based economy. More and processes for the past 30 more people are being excluded. Even if they get through matric, years. He is a board member they just can’t get a job. The green transition is also of utmost imporof the Development Bank tance. How do we transition from a high-carbon economy to a lowof Southern Africa (DBSA) carbon economy? If we don’t adjust our policies, it will affect our and is the past chair of the exports to Europe, as they will impose carbon taxes on us. So these board of the Cape Town are just some of the issues that are emerging from the One Cape International Convention 2040 project. We need to not only get people on the same hymn Centre (CTICC). sheet, but singing the same tune. western cape business 2013

38


interview If Cape Town is to become a permanent events city, what needs to happen? Cape Town is already an ‘events city’ – but now it’s about maximising its local, national and international potential to be a global events city. However, irrespective of whether you are developing the infrastructure in a city to host global events, or attract international tourism, or to service the needs of Capetonians, it’s actually the last of these, developing infrastructure for Capetonians, that will indeed be the most important step to attract all the rest! If you don’t have viable public transport and public spaces that locals use and enjoy, how can you hope to develop infrastructure to attract or maximise events? The rollout of the integrated rapid transit system (IRT) has been a great success; the challenge is to educate those Capetonians who traditionally use cars that it is a safe, secure, efficient and costeffective system of transport. We went some way to demonstrating the new system during the World Cup and Capetonians loved it. Now we have to convince them to keep on using it.

Mpahlwa (winner, Curry Stone Design Prize for his 10x10 low-cost housing solution) and Carin Smuts (winner, 2008 Global Award for Sustainable Architecture); and the team of industrial designer Philip Goodwin, electronics designer Stefan Zwahlen and project leader John Hutchinson (winners, Index Design Award for the Freeplay Fetal Heart Rate Monitor). The city has a compelling story to tell, particularly in how it is using design to overcome the huge challenges caused by apartheid. Recognition as a World Design Capital places us securely on the international map of design – the benefits are potentially vast, from raising the profile of the country to securing investment to implementing more successful development projects.

What is the long-term vision for your organisation? We need to strengthen investors’ perception of the advantages the Western Cape offers, and build on these differentiating characteristics. The reality is that we are far from larger markets, costs are going up, and more produce is being grown in northerly South African markets. So connecting Cape Town to South Africa and Connecting Cape Town to South Africa and the rest of the world is paramount. We need to the rest of the world is paramount. We need to provide certainty for investors if we want our provide certainty for investors if we want our region to flourish. region to flourish. We need to radically increase fibre-optic networks, we need more plane trips to be – Andrew Boraine scheduled to Cape Town, and we need to take advantage of opportunities that often pass us by. For instance, of the 400 rigs that passed What benefits are there to becoming World through the region’s harbours, only three Design Capital 2014? were serviced. The Port of Saldanha is absoThe year 2014 marks two decades of democ- lutely vital, as there is much room for growth racy in South Africa. Apartheid was designed and opportunity. to divide. Since 1994, Cape Town has been learning to reconnect. Employing thinking Do you have a message for government? and design processes in addressing Cape Deliver on your mandates. Get the basics in Town’s challenges are critical to creating a place first. Be consistent with the rules. And sustainable city for the future. keep the lights on! Many Cape Town designers have already been honoured globally: architects Luyanda www.capetownpartnership.co.za

39

western cape business 2013


interview

At the forefront of Cape business Viola Manuel, executive director at the Cape Chamber of Commerce, talks about the key projects that her organisation has undertaken.

Viola Manuel

Viola Manuel started her career at South African Airways, working her way up to head of department for Training: Inflight Services. After leaving SAA to get her MBA, she started a human resources company focusing on learnerships, training and organisational development, before returning to Cape Town to head up the Cape IT Initiative. Viola was appointed executive director at the Chamber of Commerce in 2011. western cape business 2013

You have been at the chamber for over a year now. What changes have you initiated since you were appointed? One of the first undertakings was cleaning house and figuring out who the paid-up members are. What is fantastic about that is, when we say that we are the voice of 3 000 businesses, it is credible. That is an audited figure. We will always be membership-based, that is the backbone of our business. We have established relationships with government, labour and civil society. We relooked at our membership and how we structure it. The chamber gives its members a much larger network of access. We’ve always focused on established businesses that are high-growth. That remains the core focus of the chamber, but we are finding that more and more start-up businesses are knocking on our door. Therefore we have created a start-up membership option that allows much lower financial costs. Please tell us about the latest developments within the chamber. We’ve engaged in a number of key projects, such as the International Women’s Entrepreneurial Challenge (IWEC), which is an initiative of the Barcelona Chamber of Commerce, in partnership with the Chamber of Commerce of Manhattan (New York) and FICCI/FLO (the Federation of Indian Chambers of Commerce and Industry Ladies Organisation) and supported by the US Department of State. The goal is to develop a global business network for successful women business owners, helping them gain and expand access to international markets. International Awardees, chosen by the chambers and with chamber executives, are invited to participate in an annual conference to receive this award, network and to share best practices. Conferences to date have been held in Barcelona, New York, New Delhi and Cape Town. The Cape Chamber of Commerce is an affiliate member of IWEC and part of the IWEC Foundation. Three awardees have been chosen by the chamber’s IWEC Committee to represent South Africa and the Western Cape in the 2012 IWEC Conference. International Awardees will come from Barcelona, India, Central Asia, the US, Peru, Sweden and three countries from the African continent. The criteria for the awards are:

40


interview

From left to right, Anni Bodington (IWEC project coordinator and managing director of TESA Fencing), Christa van Louw, Jennifer Paterson, Nelia Annandale and Viola Manuel.

• Women-owned profit businesses actively

involved in importing/exporting goods or services • 51% owned by women or, if a family business, women to be CEO or MD • Minimum annual turnover of $1-million • In existence for three years • Business must be in professional services or manufacturing • Candidate must be engaged in programmes demonstrating commitment to corporate social responsibility The IWEC Committee of the Cape Chamber of Commerce had the pleasure of interviewing six phenomenal Western Cape women who showed strength in all the required criteria. The committee had to select three candidates from the six. The Chamber was proud to announce the three awardees that will represent South Africa and the Western Cape in the 2012 IWEC conference, which were Christa van Louw (executive chairperson at Intshona Group of companies/All Seasons Milk Pty), Jennifer Paterson (managing director of Trans Africa

Safaris) and Nelia Annandale (CEO of Keedo International). We have also recently launched our youth desk, and we’d like to graduate that into a youth chamber. There are a number of exciting developments on the membership side. Lots of young people are coming into the chamber because they see value in what we do. The chamber has also created the African Commercial Dispute Settlement Centre, which is a neutral platform for alternate dispute resolution through mediation and arbitration. It has created lots of excitement, as international figures show 80% of disputes are settled in the first round of mediation. Another great development is the Cappuccino Club, in which established business ladies each bring R100 to the coffee meeting. The total money is donated to a woman who has a promising business idea, but needs a microloan to get started.

41

www.capetownchamber.com

western cape business 2013


PROFILE

Black Management Forum The Black Management Forum is an agent at the forefront of transformation in South Africa. The Black Management Forum (BMF) is a nonracial, thought-leadership organisation founded in 1976, with the main purpose of influencing socioeconomic transformation in South Africa, in pursuit of socioeconomic justice, fairness and equity. The initial aim of the BMF was to find a way to advance and integrate black business within white corporate South Africa.

organisations, and the creation of managerial structures and processes that reflect the demographics and values of the wider society.

Values • Ubuntu • Creativity • Integrity • Effectiveness

The BMF continues to be vocal on the aforementioned matters and has been keeping Key activities corporate South Africa in check and encour- • Leadership identification aging participation of broader South African • BBBEE consulting services stakeholders. • Organisational transformation • Management and leadership development The BMF has three tiers of membership: stu- • Research services dent (all seven tertiary education institutions in the Western Cape are involved), young pro- Key target markets fessionals, and general membership. The BMF • Aspirant managers strives to make the organisation the home that • Managers (all levels) the youth need, in order to develop qualitative • Non-management professionals skills and re-instill their sense of patriotism, so that they can become managers who bring Key facts and figures Year established: 1976 but registered in 1981 about change. No of staff: 35 nationally The BMF is not apolitical, but is non-partisan. Major clients: Corporates The BMF is however not neutral on matters of BBBEE level: 3 transformation: it is pro-transformation.

Contact details

Vision

To be the foremost organisation in the develop- Key personnel: ment of managerial leadership and advancing Philippe Bakahoukoutela, Provincial socioeconomic transformation of organisations Coordinator and Marketing Executive in Southern Africa and beyond. Tel: +27 21 419 3120 Fax: +27 21 419 2913 Email: bmfwc@bmfonline.co.za Mission Email: info@bmfwc.org.za The Black Management Forum stands for the Physical address: Breakwater Campus, development and empowerment of managerial Portwoods Road, Greenpoint 8000 leadership, primarily among black people, within Website: www.bmfonline.co.za western cape business 2013

42


Entrepreneurs Organization Cape Town represents 50 leading entrepreneurs with owner-run businesses CapE TOwn ChapTER sTaTisTiCs: 50 members part of a global organization with over 4,000 members R1,7 billion in turnover 5,500 employees

For more information on doing business with our members, on becoming a sponsor or becoming a member, please contact Robin Olivier at robin@digicape.co.za


focus

A bright future for Cape Town Chris Whelan, the new CEO of Accelerate Cape Town, has a far-reaching vision for the city.

I

f Cape Town wants to achieve the goal of becoming Africa’s global city, a city of inspiration and innovation, there must be a combined, coordinated effort by business, government, civil society and academia to create Chris Whelan, CEO sustained, robust economic growth that is socially inclusive. So says Chris Whelan, CEO of Accelerate Cape Town, the business thinktank and catalyst that aims to accelerate economic growth in the Cape Town city region through its vibrant membership of the city’s corporate leaders. Chris embarked on a series of introductory meetings with Accelerate Cape Town’s various stakeholders, including current and potential members, government, academia and civil society. The aim was to introduce Chris, and for him to gain a better understanding of the perspectives of the stakeholder group. ‘We wrapped up this initial series on 18 July 2012, with an event where we had all the key Accelerate Cape Town stakeholders and role-players attending. I am now taking the input from our initial conversations and working with the team to develop a plan that will articulate my vision for the organisation for the next 12 to 36 months.’

• Enterprise Development: aimed at growing

Four key focus areas

Follow Chris on Twitter @ChrisHWhelan

Chris has hinged the organisation’s vision for Cape Town on four key focus areas: • Connectedness: both physical and virtual

For more information, call +27 21 408 7255 or visit www.acceleratecapetown.co.za

WESTERN CAPE BUSINESS 2013

44

the number of economically active South Africans • Talent: particularly attracting and retaining black talent in the city • Telling the African Story: especially as it relates to attracting business to the continent ‘The four key focus areas for Accelerate Cape Town are not a deviation from what the organisation has been doing to date, but are rather aimed at building on the success achieved under the stewardship of my predecessor, Guy Lundy. We are confident that we will continue to play a key role as facilitator between big business and government in the city, and make a vital contribution to establishing Cape Town as Africa’s global city, a city of inspiration and innovation,’ explains Chris.

Going forward Prompted about revealing his initial thoughts on where he’d like to take Accelerate Cape Town over the next few years, Chris says he has always believed in the power of relationships as the foundation for any significant change. ‘My focus for the moment is in establishing and developing those relationships with our members, as well as stakeholders in government, academia and civil society. Out of that will flow the growth and impact we wish to see in the city – more jobs founded on robust, sustainable and inclusive economic growth.’


special feature

George – driving investment in the Garden Route The Garden Route’s leading town has a diverse economy.

The timber industry in George could help to lessen the impact of the projected timber shortfall.

photo: blm oregon/flickr

G

eorge is located in the heart of the Garden Route and is the leading town in the Eden District Municipality. George is at the foot of the Outeniqua Mountains. The spectacular Outeniqua Pass links the coastal region with the Klein Karoo. The land around George is rich and fertile, supporting a variety of agricultural enterprises including fruit, vegetable and dairy and sheep farming. The area is renowned for forestry, and timber, and furniture manufacturing is a key activity. George is almost equidistant from Port Elizabeth and Cape Town on the N2 highway, and George Airport has been upgraded fairly recently. The airport handles upwards of 600 000 passengers every year, with 47% of travellers doing business and 27% on holiday. According to the South African Cities Network, George had the eighth-best growth rate (3.9%) of

all the country’s cities for the period 2005-2010, including the big metropolitan municipalities. In a 2012 survey of South Africa’s 234 municipalities (excluding the metros), Finweek magazine found George to be the sixth-best place to do business. This is the result of a focused effort to attract and retain business in the town and region. Produced in 2011, a luxury coffee-table book extolling the virtues of George as an investment destination has been sent all over the world. A number of special investment zones have been designated in several parts of the town. These include the CBD (four zones), the industrial development zone (centred on the Steinhoff and Pacaltsdorp industrial parks) and the Hansmoeskraal Special Investment Zone. The industrial parks are linked to the airport and the railway line, and are close to the N2 highway. Several attractive packages are available

45

western cape business 2013


for investor assistance, rebates on building plan approval costs and rates discounts. High-profile sporting events such as the Volvo Golf Champions tournament, held for the first time in South Africa in 2012, help to keep the town in the public eye. The Volvo was held at the Links at Fancourt, South Africa’s top-ranked course and host of the 2003 Presidents Cup. The membership list of the George Business Chamber George Golf Club has one of the country’s best courses. shows a diverse city economy, with a strong suit in forestry, furniture and services. Families locating to George have a good choice McCain Food runs a vegetable plant in George of schools and educational institutions. York and South African Breweries has a hops farm High School is a state school that serves the nearby. Fertile soil delivers excellent vegetables English-speaking community, while Outeniqua for companies such as Farmfresh Direct, which High School is an Afrikaans-medium school. The delivers directly from farms. town’s technical school, PW Botha College, is The chamber’s ‘Business Person of the Year’ dual-medium. Glenwood House is a modern for 2012 was Steve Hurt. His Afrigetics business independent school. has successfully commercialised some local Nelson Mandela Metropolitan University offers medicinal plants and extracts are exported to classes in Natural Resource Management at the North America, Europe, the Middle East and Asia. Saasveld campus, and business and associated Studies show that South Africa will have a subjects in central George. timber-product shortfall of 15 million tons in 25 George is a centre of tourist accommodation, years, so the George region’s traditional strength conference facilities and activities geared for in this sector could have a significant pay-off. relaxation and enjoyment. MTO Forestry (Cape Pine) grows 3.5 milGeorge has seven of the Garden Route’s sixlion pine seedlings every year at its Karatara teen 18-hole golf courses. It also has three short Nursery, and the George Sawmill employs 350 courses and three golf schools. George Golf Club staff. PG Bison is very active in the area, with is rightly regarded as one of the country’s finest. Thesen’s sawmill, two Woodline pole plants and Oubaai, just outside the town and perched on Ruigtevlei forestry. clifftops overlooking the ocean, was designed Packaging is a related industry, and Nampak by Ernie Els. Redipak has a plant in George. Safari, one of Included in the municipal area, which forms the country’s leading manufacturers of braai part of the Eden District Municipality, are the products, is also located in George. villages of Wilderness, which overlooks a series The population of the George municipal area of lakes on the edge of the ocean, and Herold’s was estimated at 190 000 in 2009, but with the Bay, a paradise for a dolphin and whale spotters. area of the town growing, population density is Popular annual events include the George now well below the national average for urban Classic Car Show, the George Vodashop Cheese areas. The town’s major water-pipeline project Festival, the Outeniqua Country Hop Strawberry has won awards for its sensitivity to conservation, Festival and the Outeniqua Wheelchair Challenge, and it has put the town in a position to expand. a qualifying event for the Paralympic Games. western cape business 2013

46

photo: create design

special feature


PROFILE

George Municipality George is indeed the city for all reasons, and taking into consideration its excellent infrastructure and long-term infrastructure planning, as well as its recent ‘green’ initiatives, it is definitely a municipality looking towards the future.

Location George falls within the Eden District, the thirdlargest district economy in the Western Cape, after the City of Cape Town and the Cape Winelands District. The Eden District is also geographically the third-largest district within the Western Cape Province. This district is informally known as the Garden Route, with George, its hub, nestled among the slopes of the majestic Outeniqua Mountains and flanked by the Indian Ocean. Because of the proximity to the ocean, the area enjoys a pleasant, temperate climate. George also enjoys the strategic advantage of being situated on the major transport routes between Cape Town in the south and Port Elizabeth in the east. This creates investment opportunities, particularly with regard to manufacturing, logistics and warehousing.

George is ideally situated on the major transport routes between Cape Town and Port Elizabeth. forests, agri-processing and forestry form a large part of the manufacturing base of the George area.

The municipal area is 5 190.43km2 in extent and includes the following: Construction and tourism • City of George • Villages of Wilderness and Herold’s Bay The construction industry is well-supported • Various coastal resorts such as Kleinkrantz by the tourism investments that have conand Victoria Bay tinued to increase. Construction has com• Rural areas such as the area around Rondevlei, menced on a number of long anticipated retail (east of Wilderness), Geelhoutboom, Herold, developments. Tourism is a booming industry Hansmoeskraal and Waboomskraal – approximately 320 000 overseas visitors and • Uniondale and Haarlem 1.2 million domestic visitors visit the Garden Route each year.

Agriculture and manufacturing

The district is an ideal location for various agri- Economy cultural and niche activities because of its top- When considering economic data, George ographical and climatic diversity. Agricultural has shown excellent average annual growth activities include dairy, fruit, vegetable and rates at 4.06% over the period 2000 to 2010. sheep products, as well as unique products This is in line with the Western Cape growth such as those derived from forestry, hops and rate of 4.1% and exceeds the national growth berry farming. Long famous for its magnificent rate of 3.52% over the same period. It should

47

western cape business 2013


PROFILE be pointed out that with economic conditions internationally under strain since 2008, George has also recorded a slowdown – growth between 2008 and 2010 only averaged 1.8% per annum, negative growth of -0.45% was recorded in 2009, this picked up to 0.75% positive growth again in 2010. The recovery seems to be ongoing, with increases in building-plan submissions and approvals continuing to rise in 2011 and 2012. These are good indicators of growth. The main contributors to the economy of George are finance, insurance and real estate and business services. Manufacturing, conGeorge has launched several innovative struction, transport and related services are waste-management initiatives. also strong contributors to the local economy. The area however has a well diversified economy, with no over-reliance on a single sector. This the green waste to a private recycling plant to acts as a buffer to shocks and declines in save space at the refuse site. Approximately specific sectors. 1 000 cubic metres of green waste is removed monthly and recycling is done by means of a Municipal infrastructure blue-bag system whereby a private contractor The water supply of any city is of course of collects blue bags containing recyclables from critical importance. That is why the George households on a weekly basis. Municipality implemented a water and sanitation design and management information George has launched several innovative system for the George area. Analysing and waste-management initiatives that manage planning are critical aspects of a comprehen- hazardous oil, batteries, used tyres, fluorescent sive water plan, which was why George saw tubes, etc. E-waste such as computers, hi-fis, fit to introduce the programme. It is part of radios, microwave ovens, etc is managed in its philosophy of looking ahead and planning a different manner. In addition to the above, accordingly. George was, however, not the only communities will be educated on ‘green’ living role-player and the provincial government was and recycling through competitions. Through actively involved as well. these initiatives, George is not only coping with the present-day problems posed by waste, George Municipality is confident that, with but also looking towards the future, educating this analysis, it is fully prepared for the chal- its people about the hazards of waste and lenges of future demands, and that within its helping them manage them. ambit, it will be able to provide the city with an adequate supply of water, now and in the Master plans are in place for the long-term proviforeseeable future. sion of electricity. There is a solid supply of electricity available from Eskom and with increased One of the challenges placed on a burgeoning demand, HV and MV networks are simulated on city such as George is how to manage its waste. Power Tools load-flow software to determine It stands to reason that in this beautiful garden where and when the network will need to be city, ‘green’ should be the watchword and recy- strengthened. Following these results, infracling the philosophy that governs the way the structure is installed (as is allowed by the master city does business. The city removes most of plans and budget constraints) and as a result, western cape business 2013

48


PROFILE the supply of electricity is keeping abreast of demand. Major electricity-supply projects have recently been completed or are in progress.

was named Most Productive Municipality in 2010 and 3rd most productive in 2011.

The existing road network requires constant upgrading in the realm of traffic-systems management in order to provide additional capacity at intersections, to reduce delays and cost-oftravel and to improve safety. Putting in place a world-class road and transport system was and remains a priority for the George Municipality. As part of its plan to create an integrated transport system for George, the municipality has undertaken a project to create a scheduled, reliable public transport system. Central to the George Integrated Public Transport Network (GIPTN) initiative is the introduction of an integrated modern bus system. Such a system will comprise local services within the built urban and the surrounding areas of George. It will also introduce a shuttle link with the George Airport, and inter-town services to better link George with Oudtshoorn, Mossel Bay and Knysna. For the inter-town services, a terminus facility is required.

The municipality, in October 2011, was yet again named the Cleanest Town in the Western Cape. In the wider Greenest Town competition, George placed second overall in the Western Cape.  During this year the Green Drop status was not assessed, but George maintained its Blue Drop status and was ranked seventh overall in South Africa.  Performance improved from 96.26% to 98.12%, and the team was named the best Blue Drop Team in South Africa.  The George system further secured a nomination as the best water system in the country. 

The electro-technical department received an award from Africa Skills Village for their participation in skills development in George, and they received an award from the South African Institute of Electrical Engineers (SAIEE) for their support of the institute.  The management of revenue protection and loss control, with Itron’s input, ensured that George Municipality received a trophy from Itron International for The George Municipality has enlisted the sup- being the best Itron customer for 2012.  George port of the George taxi industry in this regard. Municipality ensured a 93%-plus income The process of formalising the existing taxi on prepayment meters with a total loss of industry into an operator company is well only 5%. This extremely high figure of 93% underway. George is partnering with the is almost unheard of. It is the highest in the Western Cape Department of Transport, which whole of Southeast Asia and Africa. will be providing the support required to implement the project through financial assistance During an April issue of the reputable publiand capacity-building over a number of years. cation Finweek, George placed sixth in South Africa’s top 10 places to do business in. 

Awards

Municipal IQ, a specialised local government Contact details: data and intelligence service, annually measures municipal performance in its Municipal Key personnel: Poductivity Index (MPI). The MPI combines Charles Standers, Executive Mayor financial and non-financial data to assess the Daniel Maritz, Executive Deputy Mayor ability of individuals and economic agents to Tel: +27 44 801 9111 operate productively in their municipalities. For Fax: +27 44 801 9105 instance: residents’ access to the local economy, Email: post@george.org.za the vibrancy of the economy and what support Postal address: PO Box 19, George 6530 exists for the individual and local economy by Physical address: 69 York Street, a municipality (through access to basic services George 6530 and spending on capital infrastructure). George Website: www.george.org.za

49

western cape business 2013


focus

A golden opportunity for investors George Municipality has identified numerous Garden Route opportunities for investors, many of which are unique to the area.

The attraction of George lies in its scenic beauty, safe living environment with a temperate climate, and excellent infrastructure.

G

eorge Municipality believes that actions infrastructure, including an airport. These all add speak louder than words. This is why up to offer residents a high quality of life. it is determined to help revitalise the The municipality wishes to attract investors local economy through concrete actions. It to George and believes that with a proper incenis also committed to accelerating the pace tive scheme, it will be able to facilitate new of growth in the city of which it has steward- business as well as the expansion of existing ship. And the municipality has every reason businesses in George. to be brimming with optimism – the city of George offers great opportunities to the investor The incentive scheme and entrepreneur, which make it a preferred The aim of the incentive scheme is to lower the investment destination. The advantages of George not only include start-up costs and initial utility expenses of a investment opportunities, but also the lifestyle new investment to improve cash flow and surand attractions of the Garden Route. The attraction vival rate. That means less risk, more profit, and of George lies in its scenic beauty, safe living envi- an excellent chance of survival during those ronment with a temperate climate, and excellent critical early years.

WESTERN CAPE BUSINESS 2013

50


focus The incentive scheme is based on the key economic nodes as identified in the Draft George Spatial Development Framework (GSDF). There are three incentive nodes, namely the: • Urban Development Node • Industrial Development Node • Special Development Node Each node is unique in terms of its location in George, type of development earmarked, scope of supporting developments and assigned development rights. The Special Development Node is currently in the planning phase and will be a science and technology-focused space in a prime location along the coast.

Industrial Development Node Concentrating specifically on the Industrial Development Node, the municipality has a number of serviced industrial areas available for sale or long-term rental. Suitable developers, measured against investment, job creation and skills development potential, could qualify for up to a 25% discount on the market value of these properties. There is a further opportunity to qualify for discounts on municipal taxes and service charges, to a maximum of 80% in year one. Another available incentive is the phased payment of capital contributions, over a maximum period of five years.

Urban Development Node The CBD incentives are primarily motivated by the wider, overall objective of urban restructuring, which is the national and provincial policy. This role of George within the Western Cape economy is emphasised in a study called The Growth Potential of Towns, where the development potential of the town profile scored very high. In this regard it should be noted that the CBD is strategically placed as an economic driver in the spatial context of George. When considering the uniqueness of the George CBD, the following points can be highlighted: • Good quality financial and medical services are available in George and these services

George Airport is located at the heart of the Western Cape’s Garden Route. are provided to people living in a wide area, including the Klein and Groot Karoo • A large automotive sector that draws buyers from nearby towns • The various services rendered in the CBD already form distinctive precincts that give it a character and differentiate it from its competitors • A safe pedestrian area, compared to other similar places with high levels of accessibility • The municipality and province are also currently investing in a public transport system for George, of which the CBD is a focus point. Access to and from the CBD will thus increase once the system is rolled out One of the key considerations for any potential developer should be the relatively compact and relaxed CBD environment (eg less rush-hour traffic) as opposed to the busy environment of a CBD in a larger city. The relaxed environment is conducive to quality business trade and working conditions. The CBD is accessible from all directions. The wide street reserves give opportunity for widening sidewalks and other needs along the streets. Large blocks give opportunity for redevelopment, open spaces and parking inside the blocks, and finally the compact nature of the CBD enables mobility within the area (movement from one business or service to another is relatively quick).

51

For more information visit George Municipality at: www.george.org.za

WESTERN CAPE BUSINESS 2013


focus

A new BPO hotspot George is rapidly developing into a competitive contact centre destination that aims to service both the local and international business process outsourcing market.

H

WESTERN CAPE BUSINESS 2013

52

The BPO industry in George is booming. will move to foreign investment as George looks to better package its value proposition to compete with other BPO destinations around the world. When considering the benefits of the region, two of the standout factors would be the low salary and property costs. These are generally a lot lower than other cities in South Africa. Add to the mix the Department of Trade and Industry’s national incentive, together with the regional telecoms incentive, and George becomes very costcompetitive. From a skills perspective, George also has an excellent offering, which is complemented by strong technical support and IT knowledge. This, together with generally lower absenteeism and attrition rates, first-world infrastructure and connectivity, a large talent pool coming through the local schools system and sector-specific programmes for BPO skills, makes George a highly competitive contact centre destination. When looking at plans for the industry going forward, the short-term goal is to create another 500 jobs in the next 18 months; thereafter the local authorities can reassess the goals and look at larger rollouts. Importantly, George is not interested in quick wins; but is looking for companies that are willing to make long-term investments in the area that will create sustainable jobs for the region for many years to come.

photo: professional images/flickr

aving been identified as a key growth sector in the 2012 George Economic Development Strategy, the business process outsourcing (BPO) and contact centre industry is receiving support from both local and provincial government. Minister of Finance, Economic Development and Tourism in the Western Cape, Alan Winde, has given his full backing to the region. Together with his provincial team and industry body BPeSA Western Cape, he has visited the region on a number of occasions. He stated that, ‘Contact centres are excellent job creators and play a vital role in our employment strategy, aimed at creating sustainable jobs across the province.’ ‘The BPO/contact centre industry is just the tip of the iceberg, as part of a broader economic programme. We are currently in the process of rolling out an IT incubator programme,’ says Carli Bunding-Venter, manager for economic development in the George Municipality. ‘The IT incubator is important to the growth of George and its surrounding areas, and is set to play a critical role in attracting more ICT-related industries to the region. This, in turn, will create a supportive environment for BPO operators and will ensure that all technical needs can be met locally. It is further envisaged that the incubator will foster a spirit of innovation in the region, which will allow the more adventurous BPO operators to create new services and product offerings out of George,’ says Imel Rautenbach president of the George Business Chamber. Although not many people are aware, George has a number of contact centre operations, with the biggest, Oakhurst Insurance (part of the Badger Group), employing about 500 people. In terms of plans to grow the industry, the focus is on building the local market by servicing South African companies. The medium to long-term focus, however,


special feature

Oil and gas bonanza fuels interest in West Coast There are plans to develop an industrial development zone at Saldanha.

Namakwa Sands has a mining operation in Saldanha, and is diversifying to include titanium.

photo: tronox

A

feasibility study on the creation of an industrial development zone (IDZ) in Saldanha was completed and presented to the public in October 2011. The study concluded that such an IDZ would provide a major boost to the regional economy, even if it took place over several decades and projections were done conservatively. On the back of a decision by MAN Ferrostaal to invest heavily in an oil tanker and platform fabrication and repair plant, Saldanha has been identified as a node for industrial development, with particular emphasis on the steel industry. With the growth of the West African offshore oil and gas industry, ports like Saldanha stand to gain substantial business in maintenance and repairs. African International Energy’s Ibhubesi project, together with other projects being investigated

by PetroSA, BHP Billiton and Shell International, could result in pipeline developments and the development of a gas plant and power station at Hondeklipbaai. Drilling, exploration, production and support services are all potential subsectors. The Port of Saldanha is equipped with many of the facilities needed. Saldanha has an existing airstrip, well-established engineering capacity and the port can look after big ships and rigs. The bay that defines the area protects the largest and deepest port in Southern Africa. The Port of Saldanha exported about 46 million tons of iron ore in 2010 and 53 million tons in 2012, as well as steel, metal concentrates and other commodities. A modern iron-ore processing plant was launched in 2011 in Saldanha. This facility

53

western cape business 2013


special feature

The new iron ore plant on the West Coast.

that produces excellent dairy, honey, wheat and canola, the area is best known for its fish and for its harbour. Saldanha is surrounded by natural beauty. Just around the lagoon is the popular holiday town of Langebaan, and to the south of the entrance to Saldanha Bay is the 30 000-hectare West Coast National Park. This is one of the most popular viewing areas for the annual show put on by nature in the first weeks of spring, the blooming of the wild flowers. To the north is the Columbine Nature Reserve from where whales are often spotted. Saldanha Steel and Duferco are major steel producers operating in the town. Transnet Freight Rail and Transnet National Port Authority are other large employers. Towns and companies Premier Fishing has a fish-meal plant in the The West Coast District Municipality had a area and Sea Harvest runs a large cold-storage gross domestic product (GDP) of R10.2-billion facility. Lusitana, Oceana and Saldanha Pilchards in 2010 (Wesgro). Sectors that grew the fastest are active further north. in the year to 2010 were manufacturing, utiliClanwilliam (Cedarberg Local Municipality) is famous for its rooibos tea and citrus, while ties, and transport and logistics. The West Coast District Municipality incor- Vredendal (Matzikama Local Municipality) porates five local municipalities. Within the has grapes in abundance. It is a good place to Swartland Local Municipality, Moorreesburg begin the Olifants River wine route. Piketberg and Malmesbury are two of the most impor- is the major town of the Bergrivier Local tant regional centres of wheat production, with Municipality, which rises to national promiBokomo and Sasko prominent manufacturers. nence every year with the staging of the Berg The Saldanha Bay Municipality includes the River Canoe Marathon. A PPC cement plant is towns of Saldanha, Vredenburg, St Helena Bay, the district’s biggest industry, while crops such Paternoster, Hopefield and Langebaan. Although as potatoes and vegetables are the focus of the municipal area includes agricultural land agricultural production. western cape business 2013

54

photo: transnet rail engineering

enables exporters to verify their product before exporting it. This R160-million venture is a joint undertaking between Kumba Iron Ore and Transnet. A R70-million reverse-osmosis plant was commissioned in 2011 to help control red iron-ore dust at the bulk terminal. About 3.2 million tons of crude oil is imported. In addition, the bulk of South Africa’s strategic oil reserves are stored at Saldanha. The three major terminals cater for oil, ore and marine repairs. There are plans to increase the port’s ironore export capacity to 93 million tons per year. Among other schemes put forward for development within the IDZ are plans for a renewable energy plant, a housing project and the creation of two floating drydocks. The other sector bringing growth to the West Coast is mining. Namakwa Sands is the site of a planned titanium mine. An integrated titanium, silicon, magnesium and zirconium mineralsbeneficiation complex is planned for Saldanha. The cost of such a facility, a world first, would be in the region of R9-billion, with the pre-feasibility study alone costing R40-million. Partners in this venture, Rare Metals Industries (RMI), include the Industrial Development Corporation, the National Empowerment Fund, Magnesium & Metals and TJTI. Such a plant would become the anchor client in the Saldanha IDZ, generating many downstream opportunities for other enterprises.


Invest in awardwinning West Coast Located north of the City of Cape Town and nestled between the Atlantic Ocean and the majestic Cederberg mountain ranges, the West Coast District Municipality comprises five local municipalities: Swartland, Bergrivier, Matzikama, Cederberg and Saldanha Bay. Historically an agricultural and fishing region, it boasts one of the safest deep-water ports in the southern hemisphere at Saldanha Bay. Its vast, wind-swept, sun-drenched landscapes contribute to the unique character of its population of 341 544 living in towns and villages either along its rugged coast or off the N7, the main road link between the Cape and Namibia. The West Coast district has a proud heritage, as it was named the best district municipality in the Western Cape in 2007, and winner of the financial viability key performance area, nationally in 2008. Two of its local municipalities also featured in the top three of their category in the Provincial and National Municipal Service Excellence (VUNA) Awards. It was also surveyed as Best Service Delivery District nationally. In 2010, WCDM was also a finalist in the African National Business Awards.

The West Coast outperformed the Western Cape in terms of growth in production over the short- and long- term, while maintaining a lower than average unemployment rate. The key growth sectors throughout the district include:

Agriculture – primarily wheat,

canola, rooibos tea, fruit, grape and wine, export-ready vegetables. Animal products contribute 45.3% of the agricultural income and include poultry, fresh milk and dairy products, beef, mutton, lamb and pork products.

Fishing – a part of life on the West Coast for centuries, it includes deep-sea fishing, line fishing, lobsters, mariculture and a growing aquaculture sector. Herein lies the highest growth potential in the region with value-added processing and expansion into new mariculture and aquaculture activities. Manufacturing – the second most prominent economic sector, contributing 37% of the region’s GGP and include agro-processing, fish or marine resource processing and mineral processing. Potential for growth in the food processing, non-metallic mineral products, iron, basic steel and non-ferrous metal industries exist. Tourism – a unique cultural experience – this beautiful stretch of South African coastline makes this one of the growing sectors of the future. The vast, wind-swept and sundrenched landscape of the West Coast is well suited for wind farms and solar powered infrastructure

investment to meet regional and national electricity needs. The deep-water port, excellent infrastructure and its proximity to the oil and gas along the West coast of Africa makes the Port at Saldanha Bay a crucial role player in the burgeoning oil and gas industry and present a growth opportunity for the region.

Mining – from limestone, diamonds,

kaolin and phosphate to the processing and transport sectors, all support the needs of South Africa’s mining industry with the major ore terminal at the Port of Saldanha. (For more information visit

www.westcoastdm.co.za)


Matzikama Municipality (± 14 000 sq km)

Matzikama Municipality (‘place of water’)is roughly 240km north of the City of Cape Town. With its abundant water supply and fertile soil, the agricultural industry is the key sector and includes the cultivation of vegetables, citrus fruit and vineyards. The wine farms and cellars in the region produce quality wine and brandy, with small-scale wheat and maize farming, as well as sheep farming for meat and wool. The tourism industry, albeit seasonal, is growing and includes the famous Namaqualand flower season. The Municipality is actively Involve in the development

Cederberg Municipality (7 338 sq km)

Cederberg Municipality is sandwiched between the Atlantic Ocean to the west, and the Northern Cape Province to the east. Geologically it forms part of the Cape Fold Belt, which accounts for the spectacular sandstone mountain ranges in the region. With its sandstone mountain formation and dry coastline, the region is one of the biggest tourist destinations in the district. It is famous for its indigenous rock art, historical buildings, birdlife, fynbos, the medicinal ‘buchu’ plant and of course, ‘veldskoene’. The economy of the Cederberg is primarily agriculture, forestry and fishing with supporting services to its burgeoning tourism sector. The

Bergrivier Municipality (4 407 sq km)

Bergrivier Municipality is situated just north of Saldanha Bay. Agriculture is the largest employment sector in the Bergrivier municipality, providing work for more than half the total labour force. Primary agricultural activities include livestock farming (sheep, cattle, pig) and grain and fruit farming (cultivated crops such as grapes, watermelons, proteas, waterblommetjies and assorted vegetables). Rooibos tea is also grown in this area. This sector is also responsible for secondary employment opportunities such as packaging, bottling and agro-processing jobs.

of the local economy. The municipal area offer many opportunities to investors including but not limited to the aquaculture industry, fishing, manufacturing, agriculture, property development and tourism. Make an appointment and find out how you can grow your investment in Matzikama. The population of 61 891 live in the towns of Vredendal, Klawer, Van Rhynsdorp, Lutzville, Doring Bay, Strandfontein, Papendorp, Ebenaeser, Lutzville-West, Koekenaap and the surrounding farms. Contact details Email: lionelp@matzikamamun.co.za Website: www.matzikamamun.co.za Tel: +27 27 201 3346 Fax: +27 27 213 3238

cultivation of buchu and essential oils plant material in the Cederberg region is ideally suited for the market in South Africa as well as the international export market. In the short- to medium-term the possible enlargement of the Clanwilliam Dam may lead to new investment opportunities and large-scale construction activity. The population: of 39 329 live around the towns, villages and farms of Clanwilliam, Citrusdal, Elands Bay, Leipoldtville, Paleisheuwel, Algeria, Lamberts Bay, Sandberg and Wuppertal. Contact details Email: admin@cederbergraad.co.za Website: www.cederbergmunicipality.co.za Tel: +27 27 482 8000 Fax: +27 27 482 1933

Bergrivier Municipality has identified a number of economic opportunities through which sustainable economic growth can be achieved in the near future. These include: business process outsourcing, floriculture, kelp farming and processing, and tourism. The population of 46 324 live in and around the major towns of Piketberg, De Hoek, Porterville, Velddrif, Eendekuil, Port Owen and Wittewater. Contact details Email: bergmun@telkomsa.net Website: www.bergmun.org.za Tel: +27 22 913 6000 Fax: +27 22 913 1380

The only large-scale mining enterprise is a cement factory at De Hoek. There are also smaller mining enterprises such as a salt-reclamation works at Velddrif.

Saldanha Bay Municipality (1 766 sq km)

Saldanha Bay Municipality is on the western coastline of the West Coast District Municipality and is the largest contributor to the district’s economic output, relying mainly on secondary activities such as processing and transport. The area is a popular tourist destination. The major sectors being targeted for investment include: oil and gas; mineral and metal beneficiation; renewable energy; mariculture and aquaculture. Oil and gas opportunities are prevalent up and down the West Coast of Africa, with the facilities and infrastructure at Saldanha Bay giving the region an opportunity to tap into the lucrative market.

Swartland Municipality (3 692 sq km)

Swartland offers a relaxed country-lifestyle, not too far from city comforts, which makes it an attractive industrial area, close to the applicable markets and suppliers. The ports at Cape Town and Saldanha Bay and the airport at Cape Town provide excellent export infrastructure. It supports a diverse local economy in manufacturing, financial and property services, agriculture, retail and trade, while government services are a significant contributor. Swartland Municipality boasts attractive wine estates and adventure tourism activities such as 4 x 4 trails and game farms.

The port of Saldanha is primarily geared for iron-ore exporting currently but a feasibility study for the establishment of an industrial development zone was due to be finalised by end October 2011. A proposed rare minerals industry complex, which includes a titanium smelter, could result in additional downstream investment opportunities. The population of 110 000 live around the major towns of Vredenberg, Saldanha and Langebaan. Contact details Email: mun@saldanhabay.co.za Website: www.saldanhabay.co.za Tel: +27 22 701 7000 Fax: +27 22 715 1518

Agriculture and agri-processing offer enormous growth potential in this municipal area. The population of about 94 800 live in and around the towns of Malmesbury, Yzerfontein, Moorreesburg, Koringberg, Darling, Riebeek Kasteel, Riebeek West, Abbotsdale, Riverlands, Chatsworth and Kalbaskraal. Contact details Email: swartlandmun@swartland.org.za Website: www.swartland.org.za Tel: +27 22 487 9400 Fax: +27 22 487 9440


West Coast District Economic Opportunities The West Coast District is a strong regional development corridor linking the metropolitan City of Cape Town to the economies of Namibia and Angola in the north. The region has burgeoning tourism, oil and gas, aquaculture and alternative energy opportunities waiting to be unleashed.

Investment Opportunities Wind Energy With an average wind speed of 6m/s, 2 800MW wind energy could be generated annually through the construction of multiple wind-generation plants. (The average electrical consumption in the Western Cape is 3 500MW.) (Source:SA Wind Energy Programme). The R75-million Darling wind farm, in the Swartland, has four turbines and supplies 5.2-megawatts of electricity, which is being sold to the City of Cape Town. St Helena Bay Wind Farm – an R850-million, 80MW wind farm located on 926ha in St Helena Bay is in the planning phase. A third proposal in the Piketberg area is currently under review. South Africa’s national Department of Energy has placed a high priority on wind energy. The South African Wind Energy Programme (SAWEP) incorporates such initiatives and is involved in sourcing funding and new technologies for greater development in the sub-sector.

Wave Energy The notorious rough seas and high waves on the West Coast could be harnessed to generate a significant amount of renewable wave energy. Significant resources along the West Coast particularly Cape Columbine through to the Cape Agulhas area are well suited and supported by adjacent infrastructure development and industrial clientelé.

Solar Energy Technology is making the vast, arid, sundrenched areas of the West Coast ideal for commercial solarenergy generation. It could power the energy-demanding desalination plants and other infrastructure in the region. An opportunity exists to supply the recently upgraded Bitterfontein Desalination Plant that supplies communities in Bitterfontein and Nuwerus in the DMA with potable water. Similarly, the renewable energy sources can be harnessed to fuel the seawater desalination plant to be constructed at Lambert’s Bay to supply potable water to local industries and communities from Lambert’s Bay to Clanwilliam.

Aquaculture Projects The West Coast District Municipality has identified aquaculture as a key investment sector in the region, and is in the process of establishing suitable locations for this. Species such as abalone, finfish and seaweed are promising investment avenues worth exploring. National government is backing the sector with a R40-million investment in a local fishing farm to reach a production capacity of 300 tons. An R18-million fish-farming project is also being established on the West Coast in Velddrif, at the mouth of the Berg River. The land-based aquaculture projects under review include an Atlantic salmon production unit with an initial capacity of 800 tonnes per year; a cob production unit with a start-up of around 50 tonnes a year and a seaweed farming project that will produce 24 tonnes a year.

Oil & Gas Oil and gas opportunities are prevalent along the west coast of Africa. Saldanha Bay is a focal point for industrial growth in the West Coast region and the development of the harbour for the oil and gas industry provides an opportunity to attract further investment in the supporting industries. A major step towards this objective was achieved when MAN Ferrostaal invested some R1.7-billion in 2006 to create fabrication and repair facilities for oil tankers and drilling platforms at Saldanha, and a refurbishment hub in the Port of Cape Town. Being able to source platforms from an African port will mean a significant cost-saving for companies operating off the coast of Africa.

Contact:

West Coast District Municipality

Office of the Municipal Manager Email: westcoastdm@wcdm.co.za Tel: +27 22 433 8400 Fax: +27 86 692 6113 Website: www.westcoastdm.co.za


special feature

Where history meets technology Innovation under the oaks in Stellenbosch.

TechnoPark in Stellenbosch is a hub of business and technology enterprises.

photo: wikimedia

I

f you are in business and did your university studying in Stellenbosch, it seems very likely that you will return to Stellenbosch at some point to make your business bigger and better. Stellenbosch is not only attracting its old students, it’s also becoming the home of innovative technology companies. Mxit has a high profile, but it is just one of many tech companies that have started and are thriving in Stellenbosch. The man who started it all, Anton Rupert, was actually born in Graaff-Reinet and studied in Pretoria, but it was in Stellenbosch that his business empire flourished. With a small loan from Federale Volksbeleggins (FVB), a fund established by Afrikaners to help Afrikaners, and investments from local farmers, Anton created the Rembrandt group of companies. The group developed into two large conglomerates: luxury goods holding company Richemont (now based in Switzerland) and Remgro (an investment house headquartered in Stellenbosch). Remgro is one of the country’s most influential investment companies, with significant shares of several companies in many sectors, including food and beverages (Distell, Rainbow

Chickens), financial services (FirstRand), medical services (Mediclinic), manufacturing (Unilever) and petroleum (Total South Africa). In September 2012, Pieter Uys became the latest ex-Matie to return to work in Eikestad (Oak Town). Stellenbosch is known in Afrikaans, the language of 72% of its inhabitants, as Eikestad for the profusion of ancient trees that line most streets. Pieter, the former Vodacom CEO, has joined Remgro as an executive and it is thought he will focus on the technology side of the business. The CEO of Remgro, Jannie Durand, is another Stellenbosch University (SU) graduate. The Rupert legacy is far from being the only reason for business booming in Stellenbosch. As one of the leading entrepreneurs based in the town says, it is a ‘lekker’ place with great restaurants and easy access to wine farms, and it is a natural choice for successful people who can choose where they wish to live. The university itself is another reason for the success of innovation in the city. InnovUS is a technology-transfer company that was established by SU in 1999. It helps inventors commercialise their innovations and supports start-up

59

western cape business 2013


companies. Among the companies that have successfully been spun-off from InnovUS are Sunspace and Information Systems (satellites), Unistel Medical Labs and Diacoustic Medical Devices (Pty) Ltd, a company that produces handheld heart diagnostic equipment. In 1985, Professor Christo Viljoen, the then dean of Engineering, proposed a park for technology companies, and the municipality took up the proposal. Today, the TechnoPark just south of the town is a remarkable site: the top of a The town is renowned for its historical homesteads. hill is covered with multi-storey buildings housing more than 200 companies, and the area has its own Protea The companies in the PSG Group have a comHotel. These enterprises are not only in the tech- bined market capitalisation of R71-billion. Apart nology field, and include: from significant holdings in agriculture through • Reutech Radar Systems Zeder Investments, and a range of other sec• Institute of Mine Seismology tors through Paladin Capital, PSG has a strong • Joomaza presence in the financial services sector. This • Sigma Synergy includes a 35% shareholding in Capitec Bank SU’s Department of Business Management Holdings, the hugely successful retail bank that (in the faculty of Economic and Management is signing up thousands of new clients every year. Sciences) offers courses in Entrepreneurship Mxit was founded by a Stellenbosch man, and Innovation Management. Herman Heunis, but the controlling share was acquired in 2011 by Alan Knott-Craig Junior from Heunis and Naspers. Alan stood down as New and newer CEO in October 2012, but remained involved Away from the TechnoPark, and in the old part with the company as a non-executive director. of central Stellenbosch, you would expect to Knott-Craig senior was CEO of Vodacom and is find some quite conventional businesses with now CEO of Cell C. Mxit’s 55 million users send about 23 addresses in Dorp Street and Kerk Street. Instead, you will find Jannie Mouton shaking billion texts every month. By allowing access to up several economic sectors with his PSG Group Mxit’s excess bandwidth, the company helped and the young guns at mobile commerce com- the municipality and SU to roll out free Wi-Fi pany Mxit aiming for their 56th million customer. for all of Stellenbosch. Jannie is another Matie old-boy who has The Western Cape MEC for Economic returned to his roots, and he’s done so with spec- Development and Tourism, Alan Winde, is excited tacular success. Although there is nothing new by what is happening in Stellenbosch. The free in the idea of an investment company (Business Wi-Fi, he says, ‘is creating space for innovation.’ Day’s Investors Monthly calls it ‘a kind of investOf the town as a whole, he says, ‘Stellenbosch ment trust’), Jannie’s combination of business is a unique economy. It’s got some serious players savvy and the speed that his investments and in that economy, and they come up with some businesses have grown, mark him as an innovator. great things!’ western cape business 2013

60

photo: kiyrna/flickr

special feature


A guide to business and leisure travel services, conferencing and accommodation in the western cape

special feature

DESTINATION WESTERN CAPE


special feature

Hotels holding on in tough times New hotels in Cape Town are bucking a sector trend.

W

ith occupancy rates approaching 60% during the 2010 Soccer World Cup, South Africa’s hoteliers found a temporary solution to the strains of the world recession that had started two years earlier. The global economy is still struggling, and there is huge excess room capacity because of the surge of new rooms built to cater for the soccer festival. South African hotels are having to adopt new strategies to survive – and grow. Evidence that growth strategies are paying off came in the form of a report from Statistics SA in 2012. This showed that national income from accommodation grew 14.3% in the first five months of 2012, compared to 2011. In the period leading up to the World Cup, the number of hotel rooms in Sandton increased by Destination western cape 2013

62

40%, Cape Town 21% and greater Durban 53%. Cape Town experienced an extraordinary newhotel boom, with 15 new properties opening in the inner city in a decade. Excess capacity and reduced appetite for holiday expenditure by travellers led to the closure of two landmark Cape hotels, the Alphen and Le Vendôme, and the sale of the famous Grace Hotel in Johannesburg. Hyprop sold the property to Tsogo Sun for the bargain price of R85-million. That the hotel was snapped up by Tsogo Sun, one of South Africa’s biggest groups, is an indicator that big companies are going to grow even bigger in the post-World Cup environment. Protea Hotels has a R2-billion fund to buy distressed hotels. Protea Hospitality Group

photo: the dockside hotel

The province is home to some of the most renowned and upmarket hotels in the province.


photo: tsogo sun hotels

special feature already has more hotel beds in South Africa than any other group, and spent R1.5-billion in 2011 on refurbishing 17 hotels and acquiring eight new hotels. Citing the ‘saturated hotel industry’, the Don Group decided in 2011 to get out of the hotel industry altogether. Having previously run nine all-suite hotels in Johannesburg, Pretoria and Cape Town, the Don will either sell these properties or convert them into apartments. The group also disposed of its share in iKapa Tours & Travel. One of the ways in which hotel groups are countering the trend of declining occupancy rates is by selling some of their hotel rooms. Signature Life Hotels started a programme in eight of its 35 South African hotels, with buyers gaining access to the room for 30 days of the year and earning income for the rest of the year. Another strategy adopted by South African hotel groups is expansion into Africa. Protea has The Southern Sun Waterfront in Cape Town. a presence in eight African countries, and Tsogo Sun is well established in Kenya, Mozambique, to convert the Pezula resort in Knysna to its Nigeria, Tanzania and Zambia. luxury Conrad brand to go with hotels in Cape Hoteliers are also hoping that South African Town, Johannesburg and Durban. Tourism succeeds in attracting new visitors. Newmark has opened a new five-star boutique South Africa attracted 8.3 million tourists in hotel in the Victoria & Alfred Waterfront. Queen 2011, a better return than 2010, even though that Victoria is the company’s third Waterfront hotel, was the year of the World Cup. In pre-recession to go along with the Victoria & Alfred Hotel and 2008, South Africa received 9.6 million visitors. the Dock House Boutique Hotel. The National Department of Tourism wants Elsewhere in the Waterfront, One&Only was the tourist sector’s contribution to GDP to rise to pleased to receive the Top City Hotel in Africa R338-billion by 2015. It was R174-billion in 2009. and the Middle East at the 2012 Travel + Leisure Although visitor numbers from Europe are World’s Best Awards. The magazine elected the slightly down, that region still represents a big Cape Town hotel to 14th place in the Top 100 and important market for South Africa. It is the World’s Best Hotels. significant growth in African, Chinese and Indian For the first time in many years, a new arrivals, however, that points the way forward. hotel is being built in the southern suburbs. A six-storey Park Inn by Radisson Cape Town Newlands started construction in September Cape Town 2012. It is a joint venture between Meridian There are signs that Cape Town seems to be Property Holdings, DeafSA (whose building was bucking the trend. In the central business dis- demolished to make way for the hotel) and the trict (CBD), the Hilton group has taken over Industrial Development Corporation. a hotel on the edge of the city from Coral, The 122-room hotel, the group’s second in and the Three Cities group is set to spend Cape Town, will open in 2014. R10-million on upgrading its Hotel St George’s Cape Town International Airport is the site of and Inn on the Square properties. yet another new hotel, Hotel Verde, which aims Hilton is increasing its exposure to the South to open in 2013. The 146-room hotel is being African market quite rapidly: the company aims designed along very green lines by Dematech.

63

Destination western cape 2013


destination overview

Tourism The Western Cape is one of the world’s truly great destinations.

Asara Wine Estate and Hotel near Stellenbosch is among the top-ranked venues in the region.

destination western cape 2013

64

Sector Highlights A George company wants to build a cableway to the top of a mountain. • 43% of international tourists visit Cape wine farms. • Rezidor is opening a new Park Inn by Radisson in Newlands, Cape Town. • A national golf tourism body has been launched.

major companies

• Protea Hotels • Tsogo Sun • Red Carnation Hotels • Starwood • Rezidor

photo: asara wine estate and hotel

T

he Western Cape is a prime tourist destination with a wide variety of attractions for business travellers and tourists. Iconic natural attractions such Table Mountain, the Garden Route and the province’s superb beaches and nature trails attract millions of visitors each year, and their numbers are growing. The City of Cape Town alone welcomes 1.8 million visitors every year, and they add about R14-billion to the city’s economy. In the fourth quarter of 2011, 215 645 international visitors passed through Cape Town International Airport. This represented a 14.5% increase over the same period in 2010. The province’s national parks received nearly one million visitors in the last quarter of 2011, with Table Mountain National Park attracting more than 755 000. India and Brazil were two of the biggest markets for improved numbers of tourists: 30% and 69% respectively. Africa is a market with tremendous growth potential, particularly in countries with oil and gas reserves and people with large disposable incomes, like Angola and Nigeria. An area of great potential growth in the Western Cape is in the cruise business, but infrastructure would have to be built to support it. The City of Cape Town estimates that one cruise ship, with a crew of 600 and 2 000 passengers, would spend R2.2-million per day in the region.


destination overview

photo: wikipedia

The Cape Chamber of Commerce is lobbying for good facilities to be built to accept international cruise liners in the Duncan Dock. This would form part of the expansion of the CTICC precinct. In 2011, Mediterranean Shipping Company (MSC) acquired the company Starlight Cruises, and the new company is to be known as MSC Starlight Cruises. Starlight Cruises was previously the agent for MSC, which runs two passenger liners out of Durban and Cape Town for cruises in the Indian and Atlantic oceans. TripAdvisor’s 2011 Travellers’ Choice Awards named Cape Town as the top destination in its ‘Top 25 Destinations in the World’ category. A private company has signalled its intention to build a cableway from George to the top of Cradock Peak, one of the imposing mountains of the Outeniqua Range. The cableway would run 5km from the Transnet Railway Museum in George to a point that would be about 500m higher than the top of Table Mountain in Cape Town. The Garden Route Cableway is the third group to try this venture, and CapeNature has previously expressed its opposition to the project on environmental grounds. The company has also published plans to connect George to Herold by rail.

Tourism markets Golf is a particularly strong part of the tourist offering in

Cruises on the MSC Sinfonia are always in high demand. the Eden District Municipality and especially in the town of George. There are sixteen 18-hole golf courses on the Garden Route, and these include some of the best and most attractive in the country. The Links at Fancourt hosted the European Tour co-sanctioned Volvo Golf Champions event in January 2012. Soon after South Africa won an international award as a golf destination in 2011, the South African Golf Tourism Association was founded (SAGTA). South Africa was named as Golf Destination of the Year (Africa, Indian Ocean and Gulf States) by the International Association of Golf Tour Operators. Spurred by this recognition, a number of golf operators got together to formally represent the golf-tourism sector in South Africa, the worth of which has been estimated at R60-billion per year. The Africa Golfing Indaba to be held in Cape Town in 2013 will include a segment on golf tourism. Wine tourism is said to contribute indirectly more than R4.5-billion to the South African tourism sector (South African Wine Industry Information and Systems, SAWIS). According to Wine Tourism South Africa, a website and publishing concern that provides information about the wine industry, 43% of visitors to South Africa visit the Cape Winelands. Wine Tourism South Africa launched the Klink Awards in 2012, a series of slightly offbeat awards (Best Deli on a Wine Farm is among them) where the winner is decided by online voting by consumers. There are multiple wine routes in the Western Cape, together with two brandy routes. The traditional wine route around Stellenbosch has been joined by Franschhoek, Wellington, Robertson, Swartland, Olifants River, Worcester and many more further afield, such as the Klein Karoo Wine Route, which encompasses the entire region and showcases 21 wine farms. Oudtshoorn has taken the idea of a route a little further than most – it has the Art, Cheese, Chocolate and Liqueur Route!

65

destination western cape 2013


Adventure tourism is taking off on the West Coast. Improved conservation awareness has led to a great increase in the number of whales visiting the Cape’s shores, and this in turn has boosted tourism numbers, particularly in the Overberg region, with the town of Hermanus at the centre of the whalewatching industry. A joint venture between the Western Cape and Northern Cape provinces, together with Namibia, is promoting the Cape to Namibia Route. This encompasses a huge variety of locales and experiences, from leather shoe-making, rooibos tea, wildflowers and succulents, to craggy mountains, deserts and spectacular canyons. Among the trends to which tourism entrepreneurs are paying attention are culture and nature-based tourism, adventure tourism and niche tourism. Among the niches identified by National Minister of Tourism Marthinus van Schalkwyk are ‘voluntourism’ (whereby young people use holiday time to serve less-privileged people), basejumping and rock climbing, food and wine tourism, and the idea of ‘nano-breaks’ or one-night holidays. Township tourism is another sector that is growing. About 150 000 foreign visitors went on township tours in 2010 (South African Tourism) and some local companies have established themselves in a niche within a niche. In the case of Harlem Tours of Langa, that niche is catering to British schools wanting to play sport against township opponents, and have the township experience. Sports include cricket, rugby, hockey and netball.

Parks and reserves South African National Parks runs the Karoo National Park near Beaufort West and the West Coast National Park near destination western cape 2013

66

Langebaan. Both of these parks are primarily concerned with the protection of the vegetation indigenous to the area. The land in the Karoo, for example, had been subject to decades of degradation because of sheep grazing, and has been restored to its former condition. The West Coast National Park is popular at the onset of spring when the Flower Season gets underway. The Bontebok National Park does not limit itself to the buck in its name, but offers a variety of animals south of Swellendam on the Breede River. It is a popular camping spot. The national body also runs parks at Agulhas, the southernmost tip of Africa, Wilderness and the Knysna National Lake Area. The most visited of all the parks is the Table Mountain National Park, which receives 4.2 million visits per year. The 25 000-hectare park is mostly free, with just three points charging entry fees. The provincial body, CapeNature, runs 42 reserves, many of which have accommodation for visitors. The Kogelberg, Hottentots Holland and Swartberg reserves span the top of mountain ranges and are impressively large, allowing visitors to experience a variety of fauna and flora. Marine reserves also fall under CapeNature, such as the one at De Hoop, east of Cape Agulhas. The national and provincial parks in the province have …Continued on pg 68

photo: danivalentine/flickr

destination overview


THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

Live, Work and Play in the Western Cape Wesgro, the official Destination Marketing, Investment and Trade Promotion Agency for the Western Cape, offers an array of leisure, business and export opportunities to those eager to take advantage of the region’s unlimited potential.

and colourful heritage is on display for all visitors to emerge themselves in and we have the capabilities, infrastructure and friendly hospitality to be noted as a world-class destination. This is testament based on the many return visitors we welcome back.

The Province of the Western Cape and Cape Town as a global destination city for tourism has grown in popularity over the past decade. Home of the majestic Table Mountain, which was awarded the status as one of Natures 7 Wonders in 2012; Cape Town also looks forward to holding the title of 2014 World Design Capital of the World. The Western Cape is the main leisure tourism destination in South Africa and is home to the majority of the top tourist attractions in South Africa. These tourist attractions range from natural attractions such as Table Mountain and Cape Point to historical and cultural attractions such as Robben Island.

The South African Government has identified Tourism as a priority sector and the national Department of Trade and Industry (the dti) introduced the Enterprise Investment Programme (EIP) which has a dedicated tourism incentive program.

The Western Cape has good institutional and physical infrastructure along with a range of hotels and accommodation in the City and surrounds. The Province boasts a strong international and domestic brand as a tourism destination. The Western Cape offers a moderate Mediterranean climate, which makes it a popular tourist and meeting destination the entire year. Our diverse

WESTERN CAPE

Inspiring new ways

Website: wesgro.co.za Tel: +27 21 487 8600

www.tourismcapetown.co.za


destination overview created opportunities for accommodation providers on the edges of the parks and in surrounding towns. A recent trend has been for private game farms to start offering the Big Five experience relatively close to Cape Town. Sanbona Wildlife Reserve (near Barrydale), Fairy Glen and Aquila private game reserves are three of the closest, with the latter being less than two hours drive from the centre of Cape Town. Further north, the luxurious Bushman’s Kloof Wilderness Reserve offers a close-up view of ancient rock art in the Cedarberg Wilderness Area.

Two luxury hotels changed hands in June 2011 with the R750-million purchase by investment group Hospitality Property Fund of the Westin Cape Town and the Arabella Western Cape Hotel & Spa, together with the Arabella golf course and a portion of adjacent land. The Westin Cape Town, a 483-room five-star property that forms part of the Cape Town International Convention Centre (CTICC) complex and is located at the entrance to the Waterfront, is now being managed by Starwood Hotels & Resorts Worldwide, the company which is part-owner of the Westin brand internationally. Protea Hotels manages the Arabella Hotel & Spa. Tsogo Sun runs nine hotels in the Western Cape with a strong concentration on downtown Cape Town. The Cullinan and the Waterfront Cape Town are right next to each other, and across the road from the CTICC, while the Cape Sun is just a few blocks away in Strand Street. Two Garden Courts and one StayEasy cater to the midmarket and budget segment of the market. The Caledon is Tsogo Sun’s casino hotel and spa in a country town about one-and-a-half hour’s drive from Cape Town. There is a Garden Court in Mossel Bay. Hotels Sun International runs the lucrative GrandWest Casino in The Western Cape has a good Cape Town (2010/11 operating profit: R493-million) and the range of hotels across all luxurious Table Bay Hotel in Cape Town’s Waterfront. The luxury end of the market is well catered for in Cape Town regions. The coastal regions have a number of luxury hotels and various other parts of the province. Red Carnation Hotels and resorts, and golf estates runs five-star establishments overlooking the Atlantic (Twelve are popular, particularly along Apostles Hotel and Spa) and in the bush (Bushman’s Kloof Wilderness Reserve and Wellness Retreat). the scenic Garden Route. Orient-Express Hotels runs the country’s most famous hotel A special feature on hotels appears elsewhere in this in the centre of Cape Town, the Mount Nelson. publication. Marriott International is also looking at the Cape Town Cape Town has experi- market for the introduction of its upmarket brand and the threeenced a new hotel boom in star Fairfield product. recent years, with 15 new properties opening in the inner city in the last 10 years. African Pride is the luxury Online resources brand of the Protea Hotel CapeNature: www.capenature.co.za Group. The company has 28 Cape Town Tourism: www.capetown.travel properties in the Western Destinations Expo: www.cadek.co.za Cape, operating under five South African Golf Tourism Association: www.sagta.co.za brands. These include the South African National Parks: www.sanparks.co.za Hotel & Spa brand (Arabella at South African Tourism: www.southafrica.net Hermanus and Crystal Towers Tourism Business Council of South Africa: www.tbcsa.travel at Century City), Country Tourism Grading Council: www.tourismgrading.co.za House (five in the province) Wesgro: www.wesgro.co.za and Fire and Ice (two). destination western cape 2013

68


EscapE to capE toWN

These stylish Tsogo Sun hotels are perfectly situated for easy access to the Cape Town CBD, V&A Waterfront, Cape Town International Convention Centre. Each hotel offers superb accommodation outstanding service and a tailor-made experience.

tsogosun.com


WHERE to staY IN capE toWN

SOUTHERN SUN CAPE SUN Situated at the southern tip of Africa, this is where traditional Cape hospitality is at the heart of your experience. The luxury and elegance of Southern Sun Cape Sun lies in the centre of the Cape Town CBD, and is complimented by spectacular views over Table Mountain, Robben Island, Table Bay and the spectacular Green Point Stadium. Rooms are luxurious, spacious and offer all the amenities required to ensure a relaxing stay. Offering business travellers easy access to the Cape Town Convention Centre and other key business areas, the hotel also offers great appeal to holiday makers in search of an indulgent escape. Strand Street | Cape Town T: +27 (0)21 488-5100 E: sscapesun.reservations@tsogosun.com

SOUTHERN SUN WATERFRONT

GARDEN COURT DE WAAL

Offering guests a ďŹ tness centre, pool, convenient meeting rooms and a business centre, the Southern Sun Waterfront Cape Town caters for all possible business or leisure traveller needs. A mere 15 minute drive from Cape Town International Airport, a 5 minute walk from the Cape Town International Convention Centre (CTICC) and within walking distance to the V&A Waterfront, this hotel is superbly located to offer every guest easy access to the sights and sounds of Cape Town.

Enjoy warm and friendly Cape hospitality every time you step into the Garden Court de Waal hotel, which is situated amidst the spectacular surroundings of Gardens, one of the mother city’s oldest and quaintest suburbs. A hop, skip and a jump away from the V&A Waterfront, the Cape Town Convention Centre and only 20 minutes from the Cape Town International Airport, this hotel is centrally located and ideal or business travellers or holidaymakers.

Breathtaking views of Table Mountain can be enjoyed from rooms that offer all the quality and comfort you would expect from a full service hotel. 1 Lower Buitengracht | Cape Town T: +27 (0)21 409-4000 E: sswaterfront.reservations@tsogosun.com

tsogosun.com

Mill Street, Gardens, Cape Town T: +27 (0)21 465-1311 E: gcdewaal.reservations@tsogosun.com


SOUTHERN SUN THE CULLINAN

SOUTHERN SUN NEWLANDS

Stylishly grand and perfectly majestic, Southern Sun The Cullinan offers business and leisure travellers easy access to most of Cape Town’s exclusive business and leisure venues. Within walking distance to the world-renowned V&A Waterfront, the Cape Town Convention Centre and the Cape Town CBD, the hotel offers an entertaining experience for all guests.

Experience luxurious leisure accommodation at Southern Sun Newlands, set in the lush garden suburb of Newlands in Cape Town. This hotel offers spacious, stylish accommodation that is in keeping with this upmarket suburb and affords business and leisure travellers the opportunity to relax in an idyllic setting while enjoying a spectacular view of Devil’s Peak on the eastern slopes of Table Mountain.

Complementing the rich, cultural heritage of Cape Town through timeless architecture, the opulent décor creates a mood that is a world-away-from-home, while service and attention to detail ensure your every need is taken care of.

The hotel has is renowned for warm, friendly and efficient service, allowing guests the opportunity to enjoy a complete escape from the daily grind while feeling at home.

1 Cullinan Street | Cape Town Waterfront T: +27 (0)21 415-4000 E: sscullinan.reservations@tsogosun.com

Main Road, Newlands T: +27 (0)21 683-6562 E: ssnewlands.reservations@tsogosun.com

GARDEN COURT NELSON MANDELA BOULEVARD

STAYEASY CENTURY CITY

Delightfully convenient Garden Court Nelson Mandela Boulevard (previously known as Garden Court Eastern Boulevard), is a superb destination for business and leisure travellers alike. Offering easy access to major highways, this hotel is a mere 15 minutes from Cape Town International Airport and Camps Bay, one the most popular beaches in the world.

On the glistening canals of Century City lies the StayEasy Century City. Offering great convenience and affordability for guests wanting to experience the best of Cape Town, this hotel has easy access to major shopping centres, tourist destinations and the excellent dining and entertainment available nearby.

Garden Court Nelson Mandela Boulevard is also a popular choice for holidaymakers who wish to explore the magnificent Cape region. The comfortable rooms offer views over Table Bay and Devil’s Peak as well as the historic Robben Island. Melbourne Street, Walmer Estate, T: +27 (0)21 448-4123 E: gcnelsonmandelaboulevard.reservations@tsogosun.com

With views over the palm-lined canal of Century City, the hotel offers excellent budget accommodation for business and leisure travellers. Rooms are informal yet chic, the perfect place to relax and unwind after a day in the majestic Mother City. Century Boulevard, Milnerton T: +27 (0) 21 529 1100 E: secenturycity.reservations@tsogosun.com


destination overview

Events and conference facilities A golfing indaba is set for the CTICC in 2013.

The 2012 Cape Argus Pick n Pay Cycle Tour contributed about R450-million to the economy.

destination western cape 2013

72

photo: lord f/flickr

S

porting events, international conventions, awards cerSector Highlights emonies and indabas of every kind – that is the profile The Cape Town Internaof the Western Cape meetings, incentives, conferencing tional Convention Centre’s and events (MICE) sector. Cape Town has become a global comR700-million expansion is petitor in this sector, particularly since the building of the Cape on track. Town International Convention Centre (CTICC) in 2003. • The Cape Argus Pick n Cape Town’s successful bid to become the 2014 World Pay Cycle Tour generDesign Capital will boost even further the city’s rising profile ated R450-million. as a top international venue. The provincial capital is very much the focus of the sector in the Western Cape, but all of the province’s big towns have good in the world – the CTICC’s facilities, and the Garden Route and several wine routes are well expansion will focus on exhisuited to the combining of business and pleasure. bition space to attract the The CEO of the CTICC Rashid Toefy has set a target for the international market. venue to become one of the world’s top-10 venues within The CTICC has a versatile a decade. Currently ranked number one in Africa – and 30 profile, with 10 000 square


photo: couda/flickr

destination overview metres of space that can be subdivided into usable units. There are 33 meeting rooms, two large auditoriums and a ballroom that can accommodate 1 500 people. The CTICC had bookings for 125 590 delegates to attend 40 international conferences in the course of 2011. The events sector is estimated to be worth about R2.3-billion to the provincial economy. The Institute for Tourism and Leisure Studies at North West University states that the Cape Town International Jazz Festival contributed R498-million to the provincial economy in 2011, a 5% rise on the previous year. The Loeries Advertising Awards, held for the first time in 2011 at the CTICC, is said to be worth R100-million to the City of Cape Town. The 2012 Cape Argus Pick n Pay Cycle Tour attracted 5 000 more competitors than the 2011 race, and generated R450-million for the provincial economy. The Argus is the world’s biggest individuallytimed cycle race. The largest stage race in the world, the Absa Cape Epic, will celebrate its 10th anniversary in the mountains of the Western Cape in 2013, and add to its lustre by putting up R1-million in prizemoney. The Investing in African Mining Indaba is a major event in the mining industry’s calendar, attracting as it does many of the most important companies in the sector on the continent. The 2012

The CTICC is the top-ranked MICE venue in Africa. event, held at the CTICC, contributed about R106-million to the local economy and attracted over 7 000 visitors. The Africa Golfing Indaba, which is to be held in May 2013, is expected to attract participants from the professional golfing sector, golf estates and from the golf tourism and accommodation sectors. The event is to be hosted by the Professional Golfers Association of South Africa. Other major events include the J&B Met (a major horse race), Cape Town Fashion Week, the Good Food & Wine Show and the Old Mutual Two Oceans Marathon. The province boasts a range of excellent facilities for conferences outside the metropole. George has the five-star facilities of the Fancourt Hotel and Country Club (with banqueting capacity up to 250) and the Protea Hotel King George. Destiny Africa Investments Holdings has targeted George as the next centre for meetings, incentives, conferences and expos. The historic town of Stellenbosch and the nearby wine and golf estates are well suited to combining leisure and business. The Knysna Oyster Fest generates about R45-million over a busy weekend of festivities every year.

Online resources Cape Town and Western Cape Convention Bureau: www.tourismcapetown.co.za Cape Town International Convention Centre: www.cticc.co.za World Design Capital Bid: www.capetown2014.co.za

73

destination western cape 2013


THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

Cape Town the Incentive destination Cape Town and the Western Cape – known for eye catching attractions such as the iconic Table Mountain, white sandy beaches and sweeping views of the Cape coastline. Defined as an area full of charisma and arguable Africa’s most desirable tourism destination. Here modern infrastructure, breath taking scenic beauty, world class shopping, international cuisine and fine Cape wines combined to create a truly indulgent experience. Six scenic regions offer an array of individual experiences sure to impress you, from the tranquil nature paradise of the Cape Garden Route and Klein Karoo to the traditional, unhurried way of

life in the Cape Overberg and Cape West Coast and the cosmopolitan tempo of the Cape Town city centre. While the Cape Wineland’s is famous for some of the world’s most superior vineyards and soughtafter wines the Cape Karoo’s unique rock art and rare wildlife is a sure recipe for special moments and enduring memories. The alluring province offers many faces and moods.

Cape Town the meeting destination Cape Town retains its mantle as South Africa’s most popular tourism brand with an impressive

portfolio of attractions. Internationally established credentials and consistently voted as Best City in Africa, Cape Town is home to the destinations flagship destination Conference Centre, the CTICC. Accessibility, exceptional value for money and cutting-edge conference facilities, complemented by the expertise of the local business tourism industry and ever-expanding portfolio of world-class hotels, are the perfect ingredients that conspire to make an ideal meeting destination

Convention Bureau

WESTERN CAPE

Inspiring new ways

Website: wesgro.co.za | Tel: +27 21 487 8600


Cape Town and the Western Cape is a destination that will transform everything you know about your corporate and professional travel. A visionary place that unlocks unlimited possibilities for out-of-the-ordinary meetings, incentives, exhibitions and events. A place that promises scenic, natural and cultural diversity combined with sophisticated infrastructure and excellent service. The Cape Town & Western Cape Convention Bureau provides destination expertise and support to professional conference organisers, destination management companies, event organisers, associations and corporates. Our spectrum of services include the following: • • • • •

Bid assistance including bid book production Corporate events and incentive concepts Access to support services and service providers Wide ranging accommodation options Provision of destination marketing material

• • • • •

Building attendance Convention planning support Locating venues Site inspection itinerary planning On-site event support

If you are organising a meeting, convention, event or incentive trip to Cape Town and the Western Cape, the Bureau is a valuable source of information and assistance. Contact us to make it happen and it will be our pleasure to be of service.

Call +27 21 487 8600 or visit www.tourismcapetown.co.za or email conventionbureau@wesgro.co.za

Convention Bureau

THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA


64 72 80 87 89 142 148

key sectors Overviews of the main economic sectors of the Western Cape Province

Tourism����������������������������������������������������������������������������64 Events and conferences������������������������������������������72 Agriculture����������������������������������������������������������������������80 Wine����������������������������������������������������������������������������������87 Aquaculture�������������������������������������������������������������������89 Fishing������������������������������������������������������������������������������92 Oil and gas���������������������������������������������������������������������96 Mining����������������������������������������������������������������������������100 Manufacturing�����������������������������������������������������������103 Boatbuilding���������������������������������������������������������������105 Food and beverages����������������������������������������������106 Engineering����������������������������������������������������������������107 Transport����������������������������������������������������������������������119 Maritime�����������������������������������������������������������������������126 Construction and property���������������������������������132 Water�����������������������������������������������������������������������������139 Energy����������������������������������������������������������������������������142 Media�����������������������������������������������������������������������������147 Film���������������������������������������������������������������������������������148 Advertising������������������������������������������������������������������149 Design���������������������������������������������������������������������������150 Banking and financial services�������������������������152 Insurance���������������������������������������������������������������������167 Development finance and SMME support��������������������������������������������������174 Education���������������������������������������������������������������������178 Call centres and BPO���������������������������������������������194 Business support services����������������������������������196 South African National Government�������������202 Western Cape Provincial Government���������212 Western Cape Local Government�������������������214 western cape business 2013


A BUSINESS COMPLETELY FOCUSED ON AGRICULTURE AGCO is one of the biggest full-range agricultural machinery manufacturers in the world, with global sales of $7 billion and with manufacturing facilities in nine different countries. Technical diversity, multiple brands, and

The focus will be on localization,

global distribution strength are the keys of

customer centricity, access to technology

AGCO’s growth strategy. Major market share

and mechanization, and capacity building.

positions in key agricultural markets of the

AGCO will partner with local African countries

world have been achieved by our strong focus

and support the modernization of African

on customer service, leading edge technology

agriculture to improve food security.

and an independent dealer network of

With GSI Group LLC, the world’s largest

2,600 full service dealers - one of the largest distribution networks in the industry.

manufacturer of steel farm grain bins, commercial storage grain bins and grain

A true pioneer in product development,

silos AGCO extended its product offering

the company has led the way in introducing

to farmers. The GSI Group Africa based

new technologies to world agriculture, in the

in Honeydew, Johannesburg supplies and

quest to boost the efficiency of every farming

installs Grain Storage & Handling Equipment,

business, increasing yields and growing profits.

swine (AP) and poultry (Cumberland)

Ultimately, however, the business is driven

production equipment across Africa.

by the desire to provide farmers everywhere

AGCO also plans to assist in providing

with the bools to produce affordable food to a rapidly growing world population.

equipment-financing solutions for small farms with little to no working capital.

AGCO’s substantial investment in research

In addition, AGCO is investing in its

and development over the years has earned

after-sales service infrastructure in Africa

its position at the leading edge of the

by establishing a master parts warehouse

technology sector, creating a steady stream

in Johannesburg to ensure excellent parts

of ground- breaking systems and ideas.

availability, machine uptime, and better

In Africa, AGCO is committed to growing

service levels to their local distribution

its presence by investing $100 million in distribution infrastructure and new training sites over the coming years.

partners and customers.

.


www.challenger-ag.com

www.masseyferguson.com

.

www.valtra.com

www.gsiafrica.co.za


OVERVIEW

Agriculture Former co-ops have transformed themselves into multi-million-rand businesses.

The Western Cape Province is home to 12.4% of the nation’s agricultural land.

western cape business 2013

80

Sector Highlights About 4 000 producers sell to nearly 8 000 registered buyers at the Cape Town Market. • Safex is to reintroduce wheat futures. • Ostrich farmers are feeling the pinch. • A programme to grow rooibos exports is underway. • Urban agriculture is catching on.

major companies

• • • • •

Kaap Agri Capespan Dole Overberg Agri Klein Karoo Beperk

photo: AGCO

T

he combined contribution of agriculture and fishing to the gross regional domestic product (GRDP) of the Western Cape is just under 5%, but these sectors are very important to the economy and make a big contribution to the country’s export basket. The wine, fishing and aquaculture sectors are dealt with in separate overviews. Fruit, vegetables, grain crops, dairy and poultry form important sectors within the provincial agricultural economy. The province’s climatic regions vary from Mediterranean around Cape Town and on the coast (where rainfall can be 2 000mm at places) to the drier regions of the inland Karoo districts where annual rainfall figures can be below 150mm. Just over three million hectares of the province is cultivated and 270 000 hectares are under irrigation. The sector supports almost 10 000 farms and employs a quarter of a million people. The Western Cape’s 13 million hectares of agricultural land, 12.4% of the nation’s, produces 55-60% of South Africa’s agricultural exports. The contribution of the Western Cape to South African commercial agriculture is approximately 21%. Cape Town Market in Epping near Pinelands is a privately managed fresh produce market. The market is managed by Altius and has more than 4 000 producers delivering goods to market


OVERVIEW agents who sell to more than 8 000 registered buyers. Facilities include cold rooms that can store more than 800 pallets of produce, and bananaripening rooms that can hold 55 000 cartons. The Port of Cape Town is equipped with extensive cold rooms, and the grain elevator can store 28 000 cubic metres of product. Urban agriculture is increasingly coming under the spotlight. A study published in 2012 showed that the Philippi Horticultural Area produces about 100 000 tons of fresh produce from 1 400 hectares of land every year. Abalimi Bezekhaya is one of several organisations that promotes organic farming in townships such as Khayelitsha and Nyanga. AGCO, best known in South Africa for the Massey Ferguson tractor, is to roll out model farms and training centres for emerging farmers in an attempt to help tackle food security issues. The Agricultural Research Council’s (ARC’s) specialised unit on deciduous fruit, vines and wines, the ARC InfruitechNietvoorbji, is located at Stellenbosch University. The university has a Department of Agricultural Economics.

photo: matt lavin/flickr

Companies Stellenbosch is also the base of Zeder Investments, the agricultural arm of the PSG Group. Zeder has been very active in the sector recently, taking its percentage in seed company Agricol up from 25% to 91%,

and increasing its stake in Kaap Agri above 43% in 2012. With the failure of Pioneer Foods’ bid for KWV Holdings, Zeder sold its stake in that company while retaining a large interest in Capevin (Distell). Kaap Agri is in turn a 31% shareholder in Pioneer Foods, one of South Africa’s major food producers. Zeder is also a big shareholder (39%) in fruit giant Capespan and has smaller stakes in two of the former co-operatives that are now operating as businesses, OVK and NWK. Neither of those companies are particularly big in the Western Cape (most former co-ops tend to be regionally bound and those two focus on the central area), but Kaap Agri itself, with its headquarters in Malmesbury, is very big. It has 147 places where it does business, whether that is in retail, packing, fuel, or tractor sales in one of its four divisions. Kaap Agri turnover in 2011 was R3.8-billion. Kaap Agri’s share of Pioneer Foods is worth R3.3-billion and the company’s 2011 annual report gave notice that two separate companies will be formed in the short term. Pioneer Foods contains brand behemoths such as Bokomo and Sasko. Another major shareholder in Pioneer is the Grainfarmers Group, whose operational identity is Moorreesburg Koringboere (MKB). In 2012, Grainfarmers Group rejected an offer to buy into it from Klerksdorp-based Senwes. MKB turned over R472-million in 2012 from its varied operations: seed, grain, financing, a conference centre, retail (Landmark and OK Grocers), a canola-oil press and two pet-food manufacturers, one of which was acquired in January 2012. Tuinroete Agri (Garden Route) reported a turnover in 2011 of R486-million from three silos and 19 outlets and depots. The company operates from Riversdale to Jeffreys Bay and as far inland as Aberdeen. SSK (Sentraal Suid Ko-operasie) has outlets in Swellendam and Heidelberg and reported a 2012 turnover of R1-billion, up from R871-million the year before. SSK has operations in Western Cape agriculture in numbers Area of agricultural activity

13 million hectares

Number of farms

9 700

Average farm size

1 000 hectares

Contribution of fruit

R2.4-billion

Winter grain

R1.8-billion

White meat

R1.6-billion

Viticulture

R1.6-billion

Vegetables

R1.4-billion

SOURCE: Wesgro

81

western cape business 2013


OVERVIEW canola-oil processing, fodder manufacture, fertiliser (Profert Ltd), feed and a technology division known as Techniform Ltd. Klein Karoo Beperk (BBK) focuses on ostriches, although it has a strong presence in retail (the Landmark franchise), mechanisation services, seed and seed marketing, and auctions. In 2011, the company’s turnover exceeded R1-billion. Caledon-based Overberg Agri has six million shares in Pioneer and is more diverse than most former co-ops. Revenue of R1.5-billion in 2012 was derived from the company’s two major divisions: Overberg Agri Products and Overberg Agri Investments. Investments controls Boltfast, a distributor of industrial fasteners, nuts, washers and screws that sell all over South Africa; Bontebok Lime Works, a Bredasdorp slaughter house that sells meat under the ‘Overberg Vleis/Meat’ label; and Promeal, an Atlantis-based pet-food manufacturer.

especially in the George area where strawberries do well. The Stellenbosch and Swellendam districts are also good for berries, and several farmers are branching out into raspberries and blueberries. The latter berry is difficult to grow but gets very good returns on the European market as fresh fruit. Farmers in the valleys near Swellendam produce 90% of the world’s commercially grown youngberries, a crop of about 600 tons per annum. Capespan employs 1 234 Fruit and vegetables staff and its 2011 revenue The Western Cape is a major producer of fruit and vegetables. from its farming, fruit, logisThe Agricultural Research Council estimates that deciduous- tics and investment divifruit farming brings in a gross income of R8-billion and employs sions rose to R2.7-billion. 100 000 people. The company exports about A 2012 National Agricultural Marketing Council report indi- 80 million cartons of fruit to cated that South Africa’s peach exports reached R181-million 66 countries. Brands include in 2011. Growth in peach exports has averaged 15% in the last Cape and Outspan, Capespan 10 years. The Western Cape is by far the biggest producer of Logistics (known as FPT for peaches in South Africa. The country produces about 60 000 Fresh Produce Terminals) and tons per year. Groot Gariep Koelkamers. The The Breede River Valley is an especially fertile area for fruit. latter entity stores more than The Western Cape specialises in apples, plums, pears and cher- 3.5 million cartons of grapes ries. Peaches and nectarines can be found in most parts of the every year. In December 2011, province, whereas raisins are a speciality of the Vredendal area Capespan bought the last on the West Coast. remaining shares in Capespan The Sandveld region on the West Coast is known as South International Holdings, its UK Africa’s Potato Pantry. Citrusdal unsurprisingly does a strong and Europe marketing arm. line in citrus and, with nearby Clanwilliam, is also famous for DoleSA has more than 200 rooibos and buchu. independent growers supBerries have been cultivated in the province for many years, plying it with fruit, which it packages into about 15 million cartons every year. Fruit District Among the bigger proApricots Little Karoo, Tulbagh, Ceres, Piketberg. ducers of plums in the province is the Le Roux Group in Plums Little Karoo, Berg River, Elgin/Grabouw, the Wellington and MalmFranschhoek, Tulbagh, Ceres, Stellenbosch. esbury areas. Former Pepcor CEO Jan le Roux produces Apples, pears Elgin/Grabouw, Ceres, Tulbagh, Wolseley, Koue 500 000 cartons (of 5kg each) Bokkeveld. at Sand River Estate while Fruit-growing regions of the Western Cape. three other farms produce western cape business 2013

82


OVERVIEW

12 000 tons of rooibos is produced in the country each year by about 450 rooibos growers.

photo: usdagov/flickr

oranges and soft citrus and table grapes.

Extensive research has been done into Germans’ rooibosdrinking habits. Germany is the world’s top importer, with 2 500 tons of rooibos every year, followed by the Netherlands. Funding for this work comes from two sources: the International Rooibos Trade Centre (a WTO and UNO initiative), and the Netherlands’ South Africa’s healthy rooibos Centre for the Promotion of Imports from Developing Countries. tea is now, after some hard The second phase of the project will see the SA Rooibos work and hard-won court Council spend R1.2-million on improving the volume and cases, an internationally rec- quality of the product. ognised brand. Financial Mail There is considerable scope for the development of other reports that there are about medicinal plants, such as honeybush and buchu. 450 rooibos growers (with 5 000 employees), and they Grain and oilseed crops produce about 12 000 tons per year. About half of this The Western Cape has 350 000 hectares of wheat-producing crop is exported. land (46% of the national total) and, together with the Free Clanwilliam and Wuppertal State, is responsible for two-thirds of South Africa’s crop. The main are at the centre of rooibos wheat-producing districts are Moorreesburg and Malmesbury. cultivation. The ‘Right Rooibos Business Day reported in March 2012 that Cape farmers are South Africa Organisation’ is in glad that the South African Futures Exchange (Safex) is planthe process of clearing 2 000 ning to reintroduce contracts for wheat, or ‘wheat futures’. The hectares of alien vegetation Cape’s distance from the main market in Gauteng is the key in the Olifants River area with differential that will now be more transparent, and negotiable. the idea of planting rooibos The Western Cape is one of very few places in the country among the new fynbos. The to produce barley, making up two-thirds of the national total. National Landcare Project is Brewing concern SABMiller has a specialist malting division, funding the scheme, which South African Breweries Malting, which has farms in the Overhad created more than 50 berg region. The brewing company uses approximately 275 000 jobs by June 2012. tons of barley malt per year.

83

western cape business 2013


OVERVIEW

The Western Cape has excellent dairy herds on the West Coast and large flocks of sheep in the drier areas of the interior. Poultry farms and piggeries are found near all the major urban concentrations. The province has 24% of the nation’s pigs. An outbreak of avian flu in April 2011 has had a serious affect on the ostrich industry. The SA Ostrich Business The province is renowned for its thoroughbred stud farms. Chamber reported losses over the calendar year to August Canola is another plant that grows best in the Western Cape. 2012 as R1-billion, with as The oil from this plant has good emulsifying qualities and con- many as 50 000 ostriches sequently has several industrial uses. With annual production euthanised in that time. The European Union, the of around 40 000 tons in the last few seasons, there is clearly scope for increased production as local demand is significantly biggest market for ostrich higher than that (Sagis). All of these crops enjoy the high winter meat, has high standards for rainfall common in the Cape. acceptance, but the South A huge market exists for olives and olive oil in South Africa. African ostrich industry has The report on the economic potential of arid areas produced survived similar scares before by the Centre for Development Support (Free State University) and come back stronger. states that only 17% of South Africa’s domestic demand for More than 80% of South olive oil is met by local producers, 10% of whom produce 90% Africa’s thoroughbreds are of volume. The industry is growing at about 20% per annum, bred in the Western Cape. doubling in size every four to five years. Stud farms can be found in The historic centre of olive production is in the Paarl Valley, several parts of the Western but the Nuy Valley near Robertson is fast making an impact: Cape, with excellent facilities Willow Creek Estate has won major Italian awards. to be found on either side of the Riversonderend Mountain range at Robertson and Online resources Greyton. Further south there Agricultural Research Council: www.arc.agric.za are stud farms in the area Cape Agency for Integrated Sustainable Development in Rural around Still Bay. Areas: www.casidra.co.za A new organisation, Cape Thoroughbred Sales (CTS), was National Department of Agriculture, Forestry and Fisheries: responsible for the second www.daff.gov.za Cape Premier Yearling Sale SA Grain Information Service: www.sagis.org.za at the Cape Town ConvenSA Olive Industry Association: www.saolive.co.za tion Centre in 2012. CTS is a SA Trade Directory of Indigenous Natural Products: consortium of major breeders. www.cpwild.co.za At the first event in 2011, 214 South African Rooibos Council: www.sarooibos.org.za Western Cape Department of Agriculture: www.elsenburg.com lots sold for R87.9-million.

western cape business 2013

84

photo: informatique/flickr

Livestock


message

Improving food security is a priority Minister for Agriculture, Forestry and Fisheries Tina Joemat-Pettersson highlights the priorities of the department in improving the lives of ordinary South Africans.

The ‘right to food’ as enshrined in our Constitution and the Freedom Charter, demands a rethinking of our past approaches to food security. We can produce enough food, but whether the poor can afford the food on the shelves largely determines South Africa’s food-security status as a country. High food prices and food-price volatility will be one of the greatest challenges to our nation over the next few years. This will further be exacerbated by high fuel and high energy prices. To curb these challenges, smallholder farmers will be assisted with the provision of livestock, tractors, implements, seeds and fertilisers. ‘One family, one vegetable garden’ should be the mantra of each and every family in South Africa.

Agro-processing Tina Joemat-Pettersson

A

s the Department of Agriculture, Forestry and Fisheries (DAFF), we believe that the goal of a developmental state can only be reached when our people gain access to food within an economy that promotes sustainable livelihoods. For this reason, our draft food security policy and zero hunger strategy promotes equity and prioritises the eradication of poverty and reduction of inequality among our people.

We will increase agro-processing investments as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, and forestry. R50-million will be allocated for the promotion of local agroprocessing businesses. An equitable-food-security economy will improve access to markets for especially smallholder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. The entire value chain of biofuels will also be a priority.

Employment Food processing and agro-industries have provided jobs, demonstrating growth of over 25 000 agricultural jobs in the sector for the third quarter of 2011. A further 6 000 agriculture-related jobs were created in the fourth quarter of 2011, which is a yearon-year growth of 3%. This has brought the total employment in the sector to 630 000.

International trade South Africa’s trade of both primary and processed agricultural products has grown from R10-billion worth of exports in 1996,

85

western cape business 2013


message to about R48-billion in 2011. Our wine exports are soaring, notwithstanding the recent global economic slowdown. We are now exporting three times more wine than we did a decade ago. Exports of fish and fish products have rapidly expanded in China and Cameroon. Timber and forestry products are gaining ground in China and Indonesia. We are exporting more and more maize to Zimbabwe. Despite our success story as a country that is a net exporter of food, international trade has yet to include more black farmers in the equation. As a department we are committed to changing this. Our department is positioning itself to participate in a meaningful way in BRICS. The department will open offices in Russia, India and Brazil, in addition to the one which is already operating in China.

• The refurbishment and

upgrading of agricultural colleges • Various projects such as grain storage facilities and rehabilitated irrigation schemes in the former homelands, fencing including border fences and animal quarantine facilities at our borders To support these initiatives the Comprehensive Agricultural Support Programme (CASP) is allocated R1.5-billion, of which over R52.5-million will Funding allocation be used for infrastructure The department is the custodian of South Africa’s forest at the agricultural colleges, resources, which cover over 40 million hectares of the coun- R322-million for the extension try’s land surface area. The forest sector employs about 201 025 recovery plan, R762-million workers and provides approximately 77 000 direct jobs and for infrastructure (mostly on30 000 indirect jobs. The Forestry and Natural Resources farm), and R398-million for Management branch will get R1.2-billion during this financial flood-damaged infrastructure year to manage our forests and natural resources. in disaster areas. Our country has been plagued by natural disasters and animal In addition, the Land Care diseases. Between December 2010 and January 2011, we had allocation for the coming year devastating floods in a number of provinces. We have begun is R115-million, while the Ilima/ the process of implementing the Flood Assistance Scheme, with Letsema programme gets a its emphasis on infrastructure repairs. An amount of more than total of R415-million. R990-million has been made available through the MTEF period I appeal to all members of until 2014/15 as part of the scheme. the department and readers of Animal disease outbreaks have presented serious challenges this publication to look deep to our industry. Our department will have to improve on its into your work and your hearts capacity to deal with such disasters, as they impact adversely and ask what more you can do to contribute to making South on the rural economy. R954-million is allocated for plant and animal production, Africa a better country. Together, including inspection and laboratory services, and R935-million we can work towards food for agricultural research, which represents a substantial increase security for all. over the previous year’s allocation. Furthermore, R868-million is allocated to food security initiatives and R349-million for extension support services, including new-farmer development support. Our ‘Strategic Integrated Project 11’ on agro-logistics and rural infrastructure (part of the integrated infrastructure plan approved by the Cabinet and the Presidential Infrastructure Coordinating Commission) includes plans for the following: • Fresh-produce marketing depots for smallholder farmers • Production infrastructure for crops and animals • The revitalisation of various irrigation schemes, including the Vaalharts-Taung irrigation scheme western cape business 2013

86


OVERVIEW

Wine Harvests and production volumes are on the up.

Asara Wine Estate produces some of the province’s highest-quality and most popular wines.

87

western cape business 2013

photo: Asara wine estate and hotel

A

lthough production costs have risen significantly in recent Sector Highlights years because of rising fuel, electricity and water prices, In the year to August 2012, the SA Wine Industry Information & Systems (Sawis) antic377 million litres of wine ipated that the 2012 grape and wine crop harvest would be up were exported. 7% on the previous year (to 1.4 million tons). Wine produc• The wine sector contion was expected to go above one billion gross litres, also a tributes R4.5-billion 7% increase. indirectly to tourism. About half of the wine produced in South Africa is exported. • Nampak has invested South Africa’s new membership of the BRICS group of nations R14-million in a new (Brazil, Russia, India and China) will serve to open doors to new screw-cap line. markets for South Africa’s wine-makers. Wine’s contribution to the regional GDP is R26.2-billion. major companies There are just over 3 500 wine producers in South Africa, with the large majority located in the Western Cape. There are • Distell 54 producer cellars. • DGB The wine industry contributes more than R4.5-billion indirectly • Edward Snell & Co to the national tourist industry, according to a 2012 Sawis report. Wines of South Africa (WOSA) reported that exports for the bottled exports (down 9.2%, year to August 2012 totalled 377 million litres, and sales were Sawis). Business Times reported in 2012 that First Cape, a congrowing 7.8% year-on-year. Concern was raised by analysts about the relatively higher sortium of farmers and wine percentage of bulk exports (they grew by 26%) compared to producers from the Breede


OVERVIEW River Valley that supply large amounts of wine to the UK, had closed down its bottling plant. The fear is that this trend will work against goodquality wines. Another company affected by this trend is Epping-based Rotolabel, which was quoted as saying that wine labels make up just 9% of their business, against 24% two years earlier. However, news from another Epping company, Nampak Closures, suggests that the era of the bottle is far from over. Nampak is spending R14-million on a new highspeed screw-cap line. Another bulk supplier to the UK, Home of Origin, has a bottling and bag-in-box annual capacity of 40 million litres of wine, with the bottling plant able to handle up to 90 000 litres per day. Among its services, Home of Origin sources wines to create new brands. The range of wines produced in the Western Cape is vast. The southernmost vineyards in Africa at Strandveld, just 9km from the Atlantic Ocean near Cape Agulhas, are cooled by constant seabreezes, while the Little Karoo is a much drier environment suitable for Colombard and Hanepoot white grapes and Ruby Cabernet. Wine is produced by estates, independent cellars and producer cellars or cooperatives. While about 80% of South Africa’s grape harvest is pressed by the producer cellars, the number of estates and independent cellars making western cape business 2013

Table grape numbers • 2011/12 produced a record crop of 54.6 million equivalent 4.5kg cartons

• White seedless is the number one export variety

(18.9 million), followed by red seedless (13.5 million)

• Northern Europe is the number-one export destination (29.8 million), followed by the UK (11.3 million)

• Northern Europe imported 4.3 million more equivalent 4.5kg cartons in 2011/12 than the year before

SOURCE: South African Table Grape Industry.

their own wines is growing fast. The Distell group runs five distilleries and seven wineries in the Western Cape, produces about a third of the country’s natural and sparkling wine, and is ranked 12th in the world in global wine volumes sold. KWV used to be the industry regulator and dominant roleplayer in the industry, but is now a wine and spirits producer with headquarters in Paarl. KWV brandies and wines are selling well in the Far East. Wellington Wines is a new venture that arose from the merger of the Wellington Co-operative and the Wamakersvallei Co-operative. DGB is a large wine and spirits company that makes much of its own product at five famous wineries. These include Boschendal, Bellingham and Douglas Green. Edward Snell & Co is a wine and spirits wholesaler that also makes its own line of spirits. Fourteen brandy distilleries can be visited on the Western Cape Brandy Route, and a further six on the R62 Brandy Route on the road east. Africa’s only whisky distillery, the Distell Sedgwick Distillery in Wellington which makes the Three Ships brand, celebrated its 125th birthday in 2012.

Online resources Integrated Production of Wine: www.ipw.co.za National Agricultural Marketing Council: www.namc.co.za Nietvoorbij Institute for Viticulture and Oenology: www.arc.agric.za SA Wine Industry Information & Systems: www.sawis.co.za South African Brandy Foundation: www.sabrandy.co.za South African Table Grape Industry: www.satgi.co.za Western Cape Department of Agriculture: www.elsenburg.com Wines of South Africa: www.wosa.co.za

88


OVERVIEW

Aquaculture and mariculture A container fish farm could boost poor families’ incomes.

F

orty percent of South Africa’s aquaculture producers are in Sector Highlights the Western Cape. Not only does the province have lots of seawater, lakes and rivers, but key institutions as well. The Abalone is the sector’s Aquaculture Institute of South Africa, the Elsenburg Agricultural biggest export. College and the Department of Genetics at Stellenbosch • Kelp Products exports to more than 60 University are leading research bodies. countries. The Western Cape has the natural advantage of access to the warm Agulhas current along the east coast and the cold Benguela current up the west coast. major companies Mariculture refers to seawater fish farming. Aquaculture is • Abagold practised on land and involves cultivating freshwater and salt• Atlantic Abalone water populations under controlled conditions. The key species produced in the Western Cape are abalone, various finfish, mus- • Kelp Products sels, lobsters, oysters, seaweed, different ornamental species of fish, and cape salmon. Atlantic Abalone, a PreA novel concept plans to put the production of four tons mier Fishing company located of tilapia per year within the reach of hundreds of families on at Gansbaai, intends douthe Cape Flats. Alan Fleming, a director of Business Place and a bling production to 250 tons consultant to urban food organisation Abalimi Bezakhaya, has per year. come up with a patented model for turning containers into fish Simonstown-based Kelp farms. The prototype is producing two tons of tilapia and the Products is another company second version is expected to harvest four tons. with a strong export orientaThe key to making this technology broadly available is tion. It exports plant growth cost: the current model cost R150 000 to build and Fleming stimulant to more than is exploring ways of using renewable energy in future. The 60 countries. The National Department scheme could attract funding from corporate social investment budgets. of Science and Technology Abalone generates about 82% of the aquaculture sector’s (DST) is piloting several yelvalue and 80% of exports. lowtail ranching projects in Abagold in Hermanus is South Africa’s largest abalone the Western Cape, using cage exporter and is expanding. Of the current production capacity technology to help fishers to capture and harvest fresh of 220 tons, 207 tons is exported. yellowtail. Thirty-five small-scale trout Online resources producers have been estabAquaculture Association of South Africa: www.aasa-aqua.co.za lished on the irrigation dams National Department of Agriculture, Forestry and Fisheries: of wine estates, producing www.daff.gov.za between six and eight tons National Department of Science and Technology: www.dst.gov.za annually. South African Institute of Aquatic Biodiversity: www.saiab.ac.za

89

western cape business 2013


focus

Aquaculture gives back to communities The Fisheries Branch of the Department of Agriculture, Forestry and Fisheries is engaged in a plethora of groundbreaking initiatives.

sector grows seaweed mainly as food for abalone farming, while prawns have not been cultivated since 2004. The aquaculture of marine finfish, at best, is only on the brink of starting commercial production. The marine aquaculture sector contributes approximately 4% to the value of production in the fishing industry. This is very low in terms of the international standards, but the sector is still in a developing phase. It must also be pointed out that the rugged South African coastline and the lack of sheltered bays are not ideal for aquaculture activities. The South African aquaculture sector generates direct permanent employment and mainly benefits poor coastal communities. The employment opportunities therefore assist in alleviating poverty in disadvantaged areas. The sector also indirectly creates employment by supporting interlinked businesses through infrastructure development and the manufacturing of equipment. The Fisheries Branch of the Department of Agriculture, Forestry and Fisheries (DAFF) is engaged in a national programme to revitalise the sector, therefore a number of research and development activities are ongoing.

Seaweed is mainly grown as food for abalone farming.

A

quaculture is the farming of aquatic organ- Research and development isms such as fish, crustaceans, molluscs and aquatic plants. It involves cultivating Marine aquaculture is a technology-driven freshwater and saltwater populations under industry that relies heavily on research to controlled conditions, and can be contrasted develop new species and the appropriate techwith commercial fishing, which is the harvesting nology for commercial production. At present, of wild fish. marine aquaculture in South Africa is domiThe current marine aquaculture industry nated by molluscan shellfish farming (abaconcentrates mainly on three species, namely lone, mussels and oysters), and exciting new abalone, oysters and mussels. In addition, the industry initiatives are presently underway

WESTERN CAPE BUSINESS 2013

90


focus that are exploring the culture of indigenous marine finfish. However, despite these enterprises, there is considerable scope for the sector to diversify further. In fact, expanding the species base can be regarded as a prerequisite for the development of a globally competitive industry as well as for bringing appropriate technology to small-scale, communitybased operations. The Fisheries Branch of DAFF, together with local industries and universities, plays a significant role in this regard, and is presently involved with a number of research projects that are investigating the feasibility of various candidate species for aquaculture, promoting environmentally sustainable aquaculture practices, and improving the biosecurity of aquaculture activities in South Africa. The research activities of the Fisheries branch are divided into five key areas:

associated with marine aquaculture candidate species is important in sustaining the marine aquaculture sector. Some of the key areas of research include morphological and molecular diagnosis, integrated pest management strategies, treatment trials and impacts and epidemiology of pathogens on farmed and wild-caught animals.

Environmental impacts Marine aquaculture practices, particularly intensive feed-supplemented systems, have the potential to cause serious negative environmental impacts, affecting not only the sustainability of farm operations themselves, but also other users of the coastal resource. The initial expansion of the global prawn and finfish farming sectors provides numerous examples of poor planning and implementation, and to a large extent provides the basis for the current negative perception of aquaculture. Marine finfish research Competitive pressures, technology developSupport is required for the development and/ ment and more efficient regulation are directing or adaptation of marine culture technologies aquaculture towards best management and susto establish reliable breeding and rearing tech- tainable practices. Marine aquaculture in South niques for a number of marine finfish species. Africa is poised for a rapid expansion phase There is a need to focus on a limited number as farming practices diversify and extend into of species, while maintaining the flexibility new realms. to act on viable emerging projects. Present research addresses the culture of economi- Harmful algal bloom research cally important species, such as the dusky Harmful algal blooms (HABs) cause harm by kob (Argyrosomus japonicus), white stump- producing toxins that accumulate in shellfish nose (Rhabdosargus globiceps) and Cape hake or fish, or through the accumulation of biomass that may impact marine life, food webs and the (Merluccius capensis). environment in negative ways. Marine invertebrate research The number of harmful blooms, the economic Research and development of culture tech- losses that result, the resources affected, and the nologies for marine invertebrates is presently number of toxins and toxic species are all confocused on two economically important spe- sidered to have increased dramatically in recent cies, the South African scallop (Pectin sulcicos- years. HABs have particularly adverse effects on tatus) and sea urchin (Tripneustes gratilla). Key aquaculture, ranging from reduced growth and areas of research include brood-stock condi- reproduction to mass mortalities, which lead to tioning and spawning, gonad enhancement, significant losses in harvestable resources, and larval rearing, grow-out, nutritional studies to spoiled or contaminated products. and growth trials. www.daff.gov.za Marine aquaculture disease research Research involving the diagnosis, biology and containment of pathogenic organisms

91

WESTERN CAPE BUSINESS 2013


OVERVIEW

Fishing Most of South Africa’s big food companies have fishing divisions.

T

he National Department of Agriculture, Forestry and Fisheries (DAFF) is ultimately responsible for fishing in South Africa. It issues licences and enforces environmental legislation. Demersal fish such as hake and kingklip account for 46% of the national catch, with pelagic fish (anchovy, pilchards and sardines) making up 23%. Lobster makes up 11% and linefish 13%. The Western Cape is responsible for about 75% of the nation’s fishing. Deep-water hake (which accounts for about half of the value of the fishing industry), Southern bluefin tuna, abalone and West Coast rock lobster are among the species that are overexploited, threatened or endangered. The value of the national catch across 22 commercial fishing sectors is between R5-billion and R6-billion, according to DAFF. Sectors range from the highly capitalised deep-sea trawling industry to the much smaller-scale lobster and abalone operations. All of South Africa’s major food companies have fishing divisions, with the exception of Pioneer Foods. Pioneer Fishing has no connection to the multi-product group and is owned by Suiderland Corporation and African Pioneer Limited. Tiger Brands owns 37.7% of the giant Oceana group, AVI controls I&J (Irving & Johnson), while Food Corp has four vessels and four sites in its fishing division. Viking Fishing is an independent group, while Lusitania was a family-run business until it was bought in 2012 by Oceana, thereby boosting the latter’s presence in South Coast lobster and hake. Oceana has 23 subsidiaries and produces the Lucky Star label. It is the only stand-alone fishing stock on the JSE. Sea Harvest is vertically integrated and owns all its fishing

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

western cape business 2013

92

Sector Highlights Most of South Africa’s fishing takes place in the Western Cape. • Sea Harvest employs more than 2 000 workers.

major companies

• Irvin & Johnson • Oceana • Sea Harvest • Premier Fishing • Dromedaris vessels, processing facilities and cold storage facilities. Sea Harvest runs several shorebased factory plants, sells to more than 2 000 stores and has 46% of South Africa’s retail frozen fish market. Premier Fishing, a subsidiary of Sekunjalo Investments, runs 16 vessels and operates at seven locations, including Atlantic Cold Storage, which has capacity to store 2 500 tons of fish and 405 tons of live lobster. The company has lobster plants at Port Nolloth and Hout Bay, and a fish meal plant at Saldanha. Dromedaris Visserye specialises in Cape lobster, and supplies sardines and anchovies to China and Japan.


focus

Sustainable growth on all fronts Pioneer Fishing builds its business on quality, development and accountability.

I

n a highly competitive industry, Pioneer Fishing is a progressive fishing company with extensive West and East Coast operations. It produces a wide range of fish products for the local and export markets, with an annual turnover of approximately R600-million – continually exceeding its growth targets. At Pioneer Fishing, growth is about much more than income. It is also defined by the focus on quality products, people development and environmentally responsible production. Being part of a regulated industry, it not only complies with legislation, but goes the extra mile. The company runs extensive programmes to empower employees, and it invests in the communities where it operates. It has introduced measures to reduce its carbon footprint and pursue sustainable production. In St Helena Bay, the company operates one of the most modern fish processing plants in South Africa. Over the past two years, the technology in the fish meal plant has been upgraded to reduce the impact on the environment and produce a higher value product. In Port Elizabeth, the company has invested in a large freezing capacity to deliver production growth in focus areas – longline hake, squid, horse mackerel and frozen sardines. Pioneer Fishing East Coast collaborates with other quota holders in the joint venture Eyethu Fishing. In turn, the West Coast operation has joined forces with TerraSan Pelagic Fisheries to form Oranjevis in order to obtain economies of scale. These joint ventures are instrumental in people development, as an employee share owner- team with the same goals and values. The future ship trust was established to create a sense of can only spell one word – growth. partnership in the business. Pioneer Fishing consists of several business For more information, phone +27 21 421 5368 entities in diverse locations, but operates as a or email pionfish@pioneerfishing.co.za

93

WESTERN CAPE BUSINESS 2013


PROFILE

Dromedaris Visserye Dromedaris is at the heart of the West Coast fishing industry.

Background Dromedaris is a West Coast-based company, situated in St Helena Bay. It was established in 1972, with the assistance of the Coloured Development Corporation, as a fully blackowned fishing company. Dromedaris can be seen as a pioneer in the fishing industry as it was one of the first companies, if not the first, to afford small independent fishermen access to the sea and its fish resources. Currently, the company consists of 116 shareholders. The shareholders are made up of residents from Lamberts Bay (32), Hout Bay (nine) and St Helena Bay (75).

This is supplemented by a bycatch right of 718.88 tons.

Marketing The majority of the lobster is destined for the overseas market. Dromedaris is a member of the Cape Lobster Export Association. This association markets a portion of the company’s lobster. Other marketers are Oceana Lobster, Xtinct Trading and AfroAsia Trading. The majority of the product is exported to China (including Hong Kong) and Japan. The sardine and anchovy products are caught, processed and marketed by the Oceana Fishing Company.

During its 38 years of existence, Dromedaris has lived through many changes and challenges in the fishing industry. While the West Assets Coast has experienced the closure of a few The company currently has its own production of its established fishing factories, Dromedaris plant that enables it to tank, store and pack its has managed to survive the decline in own lobster. At present, there are 35 holding the industry. tanks with a capacity of 10 metric tons of lobster. The company is in the process of adding Nature of business another six tanks to expand its capacity to The core business of Dromedaris is the approximately 12 tons. It has a freezing storage following: capacity of seven tons and a blow freezer with • Catching and packing of Cape lobster. The a 4.5-ton capacity. Two cooler trucks to ensure majority of the product is packed as whole safe transportation of the product further live lobster. A small portion is packed as enhance the storage facilities. whole frozen or only tails • Catching of sardines and anchovies

Contact details

Products Dromedaris currently has a catching right of 46.22 tons of lobster. This right has been reduced drastically over the past few years. In 2007, the company still had a catching right of 77 tons. This was reduced by 24 tons to 53 tons in 2008. At present, there is a catching right of 739.11 tons of sardines and 7 019 tons of anchovy. western cape business 2013

94

Key contact people: Mario J Green, Chairperson Solomon Kearns, Executive Manager Paul Richards, Operational Manager Tel: +27 22 742 1725 Cell: +27 78 035 1575 Email: greenmj2@telkomsa.net Physical address: Boventrek Street, Stompneus Bay 7382 Postal address: PO Box 5, St Helena Bay 7390


PROFILE

HGTS Tours This transport service provider also offers a range of guided and adventure tours for travellers and team-building and educational tours for corporates.

Description of business The company offers coach charters to the tourism industry, corporates and educational institutions, as well as guided and overland tours in Cape Town (including Stellenbosch and Simon’s Town), the Western Cape and throughout South Africa. The company caters for small and large groups and has disabledfriendly vehicles. Outdoor and adventure activities are offered such as: abseiling, big-five game drives, crocodile cage diving, fishing (in-shore and off-shore), horse trails, ocean kayaking, parachuting, skydiving, surfing, whale watching and shark cage diving. Tailor-made tours are designed to suit the individual’s requirements. HGTS Tours offer services all over South Africa and organises business trips for team-building exercises, conferencing, educational tours and hunting safaris. It also makes bookings for accommodation, flights and car hire for your comfort and peace of mind.

Description of services • Airport transfers • Shuttle service • Accommodation, flights and car-hire bookings • Coach charters • Tailor-made tours • Metrorail train/coach hire (rail tours) • Premier Classe Train special hire • Steam train hire • Guided submarine tours (the only company in Africa to offer this)

• Inbound and outbound tours Target markets The target market consists of international

HGTS has a fleet of vehicles at its disposal. and local tourists and companies undertaking tours in Cape Town, the Western Cape, as well as throughout South Africa and neighbouring states. For corporates and smaller companies, conferencing, team-building and special events are designed to suit the client’s needs.

Key facts and figures Year established: 2004 No. of staff: 36 Major clients: SA Navy, Cape Peninsula University of Technology, Metrorail, Cape Town Tourism

BEE status Black ownership: 100% Black directors: 100% Black staff: 98%

Contact details: Key contact people: Enrico Lucas, Tourism Development Manager/Tour Operator Hayden Daniels, CEO Tel: +27 21 703 0141 Fax: +27 21 703 0143 Email: info@hgtstours.com Physical address: 135 Enslin Road, Ottery Postal address: PO Box 24139, Lansdowne 7779 Website: www.hgtstours.com or www.hgtravel.co.za

95

western cape business 2013


OVERVIEW

Oil and gas Massive gas finds off the African coast could transform the sector.

Sector Highlights There may be 250 trillion cubic feet of natural gas off East Africa. • A R440-million liquid petroleum gas (LPG) storage facility is planned for Saldanha. • African International Energy has bought an interest in the Ibhubesi gas field.

major companies

A

n oil refinery in Cape Town and the country’s only gasto-liquid (GTL) refinery in Mossel Bay are the main facilities in the well-established oil and gas industry of the Western Cape. 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. Major gas finds off the coast of Africa are sparking the interest of international investors, and have the potential to have a huge impact on the Western Cape. This is because: • West Coast gas could fire a new power plant at Saldanha • Gas from new fields could prolong the life of the PetroSA facility at Mossel Bay • Dry port and rig-repair facilities will expand • Western Cape investment agency Wesgro estimates that an eight-week stay by an oil rig at the Port of Cape Town contributes R200-million to the provincial economy

Existing facilities The Cape Town suburb of Milnerton is host to one of South Africa’s four oil refineries, Chevron Refinery. With an estimated replacement value of R9-billion, the facility has a capacity of 110 000 barrels of crude oil per day. The plant produces western cape business 2013

96

Energy

• DCD Marine products such as jet fuel, bitumen, sulphur and paraffin, and employs 330 people. Saldanha is the site of the country’s largest oil-storage facility. PetroSA maintains six tanks there, each of which has a capacity of 1.2 million cubic metres. PetroSA’s gas-to-liquid refinery in Mossel Bay is the country’s leading gas facility. It has a capacity of 36 000 barrels per day (bbl/d), which is the equivalent of 45 000 barrels of crude oil per day. A new liquid-petroleum-gas (LPG) storage facility is on the cards for the Port of Saldanha.

photo: stocchi/flickr

The oil and gas sector is being boosted by major discoveries.

• PetroSA • Sunrise Energy • BHP Billiton • African International


OVERVIEW Sunrise Energy (a joint venture between Ilitha Group Holdings and the Industrial Development Corporation) wants to spend R440-million on constructing loading bays and storage facilities next to the existing port. If gas were available in Saldanha, major industrial producers such as Saldanha Steel would be likely customers.

photo: janchr/flickr

Gas Major gas finds include East Africa, where the US Geological Survey estimates that about 250 trillion cubic feet of gas is waiting to be exploited. Block 2A of the Ibhubesi gas field north-west of Saldanha is estimated to have reserves of 850 billion cubic feet of gas, and the F-O Field in the eastern Bredasdorp Basin has an estimated one trillion cubic feet of gas. Supplies of gas from new sources would ensure the sustainability of the Mossel Bay facility. This would mean that any gas found on the West Coast could be used to service the metropolitan area of Cape Town, and take pressure off the nuclear plant at Koeberg. There are several other fields being investigated off the southern coast between Cape Town and Port Elizabeth. A planned gas pipeline linking the Kudu gas field (off the coast west of Alexander Bay in the Northern Cape) would connect to Saldanha Bay, and from there to Cape Town. The Kudu field is to be

Massive gas reserves will be exploited in the province. exploited by a consortium comprising Gazprom/Namcor (54%), Tullow Oil and ITOCHU. African International Energy (AIE) bought the rights to drill in the Ibhubesi gas field from Forest Oil in 2012. PetroSA has a 24% share in the field. AIE has also announced plans to build a 750MW power plant in the province. Sasol Petroleum is investigating the possibility of extracting gas from the shallow waters around Saldanha, together with BHP Billiton and PetroSA. Gas distribution company Gigajoule has made more than one application for a licence to supply the metropolitan areas of the Western Cape with gas. This would be in the form of compressed gas from the Kudu field and imported gas supported by infrastructure such as an offshore submerged terminal, an onshore gas-treatment plant and more than 200km of pipelines. An alternate idea being promoted by Gigajoule is to convert the existing Ankerlig power station in Atlantis – currently a peaking-power plant that operates as an open-cycle gas-turbine plant fuelled by diesel – to run on gas. In 2012, national government lifted the moratorium on prospecting for shale gas. This lead to a revival of the debate about the desirability of ‘fracking’ in the ecologically sensitive Karoo area.

Online resources Liquefied Petroleum Gas Association of Southern Africa: www.lpgas.co.za National Department of Energy: www.energy.gov.za National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency of South Africa: www.petroleumagencysa.com PetroSA: www.petrosa.co.za South African Oil and Gas Alliance: www.offshoreafrica.co.za Transnet Pipelines: www.transnet.net

97

western cape business 2013


PR ION OT M

A

GENCY FO N A R

SOU TH

A IC

O

FR

UM

O

LE

N TIO ITA

OF PETRO

PETROLEUM AGENCY SA

TION AND ORA EX PL PL EX


OVERVIEW

Mining Cape Town hosts Africa’s biggest mining conference.

Sector Highlights Rare earth finds in Namaqualand are causing great excitement. • A UCT professor is tackling acid mine drainage. • Two important court cases have clarified mining rights.

major companies

• • • •

Great Western Minerals Namakwa Sands Rare Metals Industries Kumba Iron Ore

Professor Alison Lewis of the University of Cape Town has won a Distinguished Women Scientists’ Award for her research on acid mine drainage. She is investigating the technique of crystallisation. are earths make up critical components in many imporAnother Canadian company, tant new technologies, such as superconductors, catalytic Montero Mining, has received converters, lasers and nuclear batteries. At the moment, positive results from the China produces about 97% of all rare earths produced in the investigation into phosphate world, but positive finds in the north-western Western Cape and deposits on Duyker Eiland Northern Cape are set to change that. north of Saldanha. Three Canadian companies are exploring reserves in this area. Saldanha may become the The Steenkampskraal mine is located 70km north of Vanrhyns- site of a massive pure-metals dorp, and mining company Rareco is very positive about the refinery plant. If the plant is deposits there. An agreement has been signed with Canadian built, it will be the world’s first company Great Western Minerals to extract cerium and other integrated plant producing zirminerals. Frontier Rare Earths and Namibia Rare Earths are other conium, magnesium, silicon interested Canadian companies. and titanium. The 2012 Investing in African Mining Indaba at the Cape Tronox Namakwa Sands (a Town International Convention Centre was the 18th, and the division of the new company largest so far. More than 7 000 delegates attended. Tronox Mineral Sands) mines …Continued on pg 102 western cape business 2013

100

photo: anglo american

R


PROFILE

Tronox Namakwa Sands The company, which is a division of Tronox Mineral Sands (Pty) Ltd, is a leader in the field of mining and beneficiation in the Western Cape Province.

Main activities

either in bulk, bags or containers via the ports At Tronox Namakwa Sands’ operations on the of Saldanha and Cape Town. These final prodWest Coast of South Africa, it mines and ben- ucts are certified by on-site ISO 17025:2005eficiates heavy minerals to produce titanium- accredited laboratories. dioxide feedstock (chloride and sulphate grades), Application of products zircon, rutile and high-purity iron products. • Zircon: manufacture of ceramics, refractories, The concentration plants and open-pit mine are zirconium chemicals and metal situated at Brand-se-Baai, 385km north of Cape • Rutile and titanium-dioxide slag: production Town. Here, the ore is mined and processed at of titanium-dioxide pigment for the paint, plastics and paper industries the primary concentration plants to produce a mineral concentrate. It undergoes further pro- • Rutile: coating of welding rods and produccessing at the secondary concentration plant tion of titanium metal to yield a magnetic and non-magnetic stream. • Pig iron: foundry and steel industries These concentrates are transported 60km to the mineral separation plant, where the minerals Production capacity per annum in the streams are separated to produce zircon, Zircon: 130 000 tons rutile and ilmenite. Rail trucks are used to Rutile: 25 000 tons transport the products 270km to the smelter at Titanium dioxide slag: 170 000 tons Saldanha Bay, where the ilmenite is processed Pig iron: 110 000 tons in furnaces to produce titanium dioxide slag and pig iron. The zircon and rutile are stored Key facts on site for export. Tronox Namakwa Sands became part of the Tronox Group, a leading producer and marketer Environmental management forms an of titanium dioxide headquartered in Stamford, integral part of Tronox’s activities. An ISO Connecticut, in June 2012. Tronox consists of 14001:2004-compliant environmental man- a mineral sands and pigment division. The agement system has been in place since 2003 mineral sands division includes Tronox to ensure compliance with the applicable legal Namakwa Sands, Tronox KZN Sands and requirements. It is also subject to the require- Tronox Australia Sands. ments of the National Nuclear Regulator and has a Certificate of Registration and a Radiation Contact details Management system that meets these requirements. Key contact person: Merina Beukes, Business Affairs Coordinator: Target markets Finance and Administration The company’s products are supplied to mar- Tel: +27 22 701 3045 kets around the world, including local South Fax: +27 22 701 3075 African industries. Final products are stored Email: merina.beukes@za.tronox.com at the smelter and dispatched to customers Website: www.tronox.com

101

western cape business 2013


OVERVIEW Ilemnite, rutile and zircon at Brand-se-Baai, and it has a mineral-separation plant at Koekenaap and a smelter at Saldanha. A consortium of investors, Rare Metals Industries (RMI), is doing a feasibility study for the plant, which would cost about R10-billion to build. With the second-biggest global reserves of titanium and zirconium, South Africa wants to go beyond simply exporting these minerals in their raw form. The metalsrefinery plant would add value. Members of the consortium include the National Empowerment Fund and the Industrial Development Corporation. Saldanha received a new plant in April 2011, when Kumba Iron Ore and Transnet opened a R160-million ironore sampling plant. This enables exporters to certify their products before putting them on the boat. Large deposits of tungsten-molybdenum have been found near Piketberg, about 120km north of Cape Town. Tungsten is an important component in the making of filaments for lighting and heating, drill bits for mining and electrical contacts. Bongani Minerals’ attempts to mine the tungsten, which the company estimates would have a value of R32-billion, have been thwarted by an interim interdict in the Cape High Court brought by the local municipality, with the support of local farmers and environmentalists. western cape business 2013

Another 2012 court ruling by the Constitutional Court had great significance in sorting out debates on land usage. The court ruled that land-use zoning regulations put in place by municipalities cannot be trumped by the awarding of mining licences by a national authority. The immediate effect of the Concourt ruling was that a company that wants to mine sand in Mitchells Plain must wait for the land to be rezoned, as a national permit is not enough.

Existing operations The Cape Bentonite Mine (with five quarries) near Heidelberg is run by Ecca Holdings, with another site east of Knysna at Roode Fontein. Dimension stone occurs around Vanrhynsdorp (which also has some gypsum), and medium-grain granite is found at Paarl. Slasto and building stone are quarried near Clanwilliam. Consol quarries glass sand near Philippi. Limestone for cement, agricultural lime and feed lime is extracted at several sites in the province’s western regions (Riebeeck-West, Vredendal, Saldanha), while kaolin is found in Noordhoek and Somerset West. Ball clay is mined in the Albertina district by G&W Base and Industrial Minerals. Pretoria Portland Cement (PPC) has announced new expansion plans, targeting a 50% increase in capacity by 2016, but extending the time-frame in which the changes will be made. R3-billion will be spent over six years. PPC has operations near Riebeeck-West and Piketberg (De Hoek). Marine diamonds are harvested by De Beers Marine, but operations off the South African coast were terminated in 2010 with the company choosing to concentrate on Namibian waters. The Council for Geoscience has identified these areas in the Western Cape as having potential for mineral exploitation: • North of Oudtshoorn, limestone • North of Lamberts bay, phosphate • North of Vredendal and Vredenburg, kaolin • North-east of Laingsburg, low-grade uranium-molybdenum

Online resources African Mining Indaba: www.miningindaba.com Chamber of Mines of South Africa: www.bullion.org.za Council for Geoscience: www.geoscience.org.za Geological Society of South Africa: www.gssa.org.za National Department of Mineral Resources: www.dmr.gov.za Southern African Institute of Mining and Metallurgy: www.saimm.co.za Wesgro: www.wesgro.co.za

102


OVERVIEW

Manufacturing Experience in boatbuilding is giving the Western Cape an edge in wind-turbine manufacture.

Certain companies in the Western Cape clothing sector are experiencing tremendous growth.

photo: mediaclubsa.com

T

he contribution of the manufacturing sector to the Western Sector Highlights Cape’s GRP was 15.1% in 2009 (Wesgro), which represents K-Way is investing a somewhat smaller percentage than it did in the five years R5-million to expand its leading up to 1999 (19.6%). It remains the second-biggest clothing factory. sector in the provincial economy. • A new factory in There is no one major industry that dominates, which is a Milnerton is making positive factor in encouraging innovation and investment. polyester fibres from The greater Cape Town region makes up the bulk of plastic bottles. manufacturing capacity in the Western Cape. Significant contributors are furniture and other manufac- • A US company is investing in a plastics turing (8.9%) and transport and equipment (5.3%). Electrical colouring factory. machinery and equipment accounts for 2.7%. Capacity ranges from heavy industry, associated with the oil major companies and gas sectors and the boat repair industry, to niche manufacturing on a much smaller scale. Large metals-sector firms • Atlantis Foundries include Atlantis Foundries, ArcelorMittal, Trencor, GRW Engi- • Fine Chemicals neering and Cape Gate. Corporation The province’s experience in boatbuilding gives it a competi- • Protea Chemicals tive edge in attracting manufacturers of wind turbines. The first • Frame Group moulds for the turbine rotor blades made by Isivunguvungu in • Prestige Clothing Cape Town came from China, but the production processes all took place in South Africa. Isivunguvungu Wind Energy Con- from plastic bottles) from the verter (I-WEC) is in partnership with DCD to produce turbines. company’s sister operation in Propet has built a new factory in Milnerton with support from Gauteng are converted into the Industrial Development Corporation. PET chips (recycled polyester fibres.

103

western cape business 2013


OVERVIEW PolyOne Corporation announced in 2012 that it will open a ColourMatrix production facility in Montague Gardens, adjacent to Milnerton. ColourMatrix supports the PET bottling and container sector. PolyOne is listed on the New York Stock Exchange. There was good news in the clothing sector in October 2012 when K-Way, Cape Union Mart’s manufacturing arm that employs 190 people, announced a R5-million injection into its Ottery factory. The brand has experienced five-fold growth in sales in eight years. The factory was expanded and new machinery purchased. Foschini Group has purchased Cape clothing manufacturer Prestige Clothing in order to be able to reduce the lead time between orders and delivery. This is following a European trend that is helping to protect local manufacturers from cheap Chinese goods. The Frame Group has several companies operating in the textiles field: Hextex is located in Worcester, Berg River Textiles make worsted fabric in Paarl, while Romatex Home Textiles makes, sells and distributes a range of household textiles. The Western Cape accounts for about 23% of footwear production in South Africa. There are several companies producing chemicals in the greater Cape Town area. Aspen subsidiary Fine Chemicals Corporation has production facilities in 10 buildings western cape business 2013

Manufacturing sector

Percentage of manufacturing

Petroleum products, chemicals, rubber and plastic

21.7%

Food, beverages and tobacco

18.6%

Metals, metals products and machinery

16.8%

Wood and paper, publishing and printing

12.3%

Clothing and textiles

9.2%

Manufacturing sector in the greater Cape Town region. SOURCE: SA Cities Network

covering nearly 7 000 square metres. The company supplies to the local and export market. Protea Chemicals Cape is one of the province’s leading exporters. Fertiliser producer Kynoch SA has plants in Paarl and Stellenbosch. Johnson & Johnson has production facilities in Cape Town, which is now also where the company’s headquarters are located. The province’s tertiary institutions have partnerships with several companies that could lead to manufacturing opportunities in the future. Aerospace company Airbus is partnering with several of the province’s tertiary institutions. A seven-year collaboration with the Stellenbosch University (SU) and the Cape Peninsula University of Technology (CPUT) ensures funding for selected Master’s students. Airbus is also studying, with the University of Cape Town’s (UCT’s) Department of Mechanical Engineering, whether the formation flying patterns that birds use can help reduce fuel costs in airliners. Titanium has been identified as a component that could be used in making aeroplane parts. Airbus has a partnership with the Council for Scientific and Industrial Research (CSIR) and Aerosud, which is investigating using titanium in additive layer manufacturing (ALM), a highly complex technique that can cut costs and improve efficiency.

Online resources Cape Chamber of Commerce: www.capetownchamber.com National Department of Trade and Industry: www.thedti.gov.za South African Textile Federation: www.texfed.co.za Wesgro: www.wesgro.co.za

104


OVERVIEW

Boatbuilding Western Cape companies are world leaders in boatbuilding.

T

he Western Cape boatbuilding industry contributes more than R1.2-billion to the economy, but as much of the market is based in leisure and luxury, it naturally took a knock during the global recession. Signs of recovery started appearing in 2011, and employment in the sector rose to above 4 000 again. Robertson & Caine, a global leader in catamaran production, has launched more than 800 vessels. The company has four production facilities in Woodstock (Cape Town) covering 45 000 square metres, and won the 2012 award for Boat of the Year. The Leopard Catamaran is the US’s top-selling catamaran. South Africa is the world’s second-largest producer of catamarans, after France. Most companies are in Cape Town, with some production taking place in Knysna and St Helena Bay. Some analysts are proposing that the town of Atlantis become a hub for boatbuilding. The decision by Transnet National Ports Authority to redevelop Elliot Basin marina into an area for stacking containers may hasten such a move. About 85% of South Africa’s boatbuilders are located in the Western Cape. Barriers to entry are low and industry turnover has grown tremendously in recent years, with the focus being almost exclusively on the foreign market. Quantam Sail Design Group employs 140 people in making some of the finest sails in the world. Southern Wind Shipyard near Cape Town International Airport is a 17 000-square-metre facility where the construction of large yachts is done 100% in-house. Western Cape companies mostly cater to traditional export markets in the US, the Caribbean and the Mediterranean. The Middle East has been identified as a possible new market for work boats, light commercial vessels and patrol boats, as well as top-end yachts.

Online resources Cape Town Boatbuilding and Technology Initiative (CTBi): www.ctbi.co.za Cape Town International Boat Show: www.boatshow.co.za South African Boatbuilders Export Council (SABBEX): www.sabbex.co.za Wesgro: www.wesgro.co.za Whisper Boat Building Academy: www.wbba.co.za

105

Sector Highlights Robertson & Caine is one of the world’s biggest catamaran manufacturers. • More than 4 000 people are employed in the sector

major companies

• Robertson & Caine • Quantum Sail Design Group

• Southern Wind Shipyard The provincial trade and investment agency, Wesgro, has embraced boatbuilding as one of its six priority sectors. Institutions such as the CTBi’s Boatbuilding Academy and the Whisper Boat Building Academy for the Deaf ensure that skills development keeps pace with demand and with technology. western cape business 2013


OVERVIEW

Food and beverages The Western Cape makes almost every kind of food and beverage.

F

ood, beverages and tobacco is the second-biggest contributor to the Western Cape’s annual export basket. Excellent and plentiful agricultural produce, good manufacturing capacity and a skilled workforce create a competitive advantage for the well-located province. Wesgro has worked out that a 200-person food or beverage manufacturing plant would cost between €11-million and €14-million per year less to run in Cape Town than it would in London or Dublin. South African Breweries’ Newlands 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. Two Cape soft-drink manufacturers are causing a splash elsewhere in South Africa. Quality Beverages, a Bowler Metcalf company, is building a plant in Gauteng to make Jive and Aqua Blue, and Bashews (Chill Beverages) has found agents to sell its product beyond the Western Cape. British American Tobacco, which has about 65% of the legal domestic market, has its administrative headquarters in Stelllenbosch. The Swartland is home to several mills, such as Sasko’s facility in Malmesbury. The company has another grain mill in Cape Town. Bokomo, which like Sasko and the Ceres Beverage Company, is part of the Pioneer Foods group, has several manufacturing facilities. Two of the biggest chicken-processing facilities are located on the N7 to Malmesbury (Tydstroom) and on the N1 to Worcester (Rainbow Chickens). Nulaid, like Tydstroom another Pioneer Foods company, is one of the biggest egg producers in the country. Country Fair is the Western Cape division of Astral Foods, and slaughters about 1.3 million chickens every week. Parmalat’s Bonnievale cheese factory is the biggest of its type in the southern hemisphere. Dairy farming is pursued in West Coast districts such as Darling.

Sector Highlights UK operators can save millions of pounds by investing in the Western Cape. • Jive and Bashews soft drinks can now be found in the northern provinces of South Africa.

major companies

• Peninsula Beverages • Pioneer Foods • British American Tobacco

• Quality Beverages • Chill Beverages Willards, Simba and Messaris all have factories in greater Cape Town. Nestlé produces condensed milk and milk powder in Mossel Bay and canned pet food in Cape Town. Tiger Brands makes mayonnaise and prepared meals at two plants in Cape Town. McCain Foods has a manufacturing facility in George.

Consumer Goods Council of South Africa: www.cgcsa.co.za Food Advisory Consumer Service: www.foodfacts.org.za National Agricultural Marketing Council: www.namc.co.za South African National Consumers’ Union: www.sancu.co.za Western Cape Fine Foods Initiative: www.wcfinefood.co.za western cape business 2013

106

PHOTO: delheim estate

Online resources


OVERVIEW

Engineering The Western Cape engineering sector is diverse and well-resourced.

Transnet Rail Engineering’s Salt River works has a history of innovation in the industry.

photo: Transnet Rail Engineering

T

he engineering sector in the Western Cape covers a broad spectrum of disciplines and specialities. Engineers are sought after by the maritime industry, support services to the oil and gas industry, and boat-building sectors. Subsectors include plastics conversion, tooling, metals conversion, metals fabrication, iron and steel and non-ferrous metals The first heavy-engineering works in the country, the Salt River works of Transnet Rail Engineering (TRE), celebrated its 150th birthday in 2012. In 1862, TRE Salt River was the driving force behind South Africa’s nascent railway network, and the biggest industrial enterprise in the southern hemisphere to boot. Saldanha TRE maintains the trains that pull the longest iron-ore trains in the world along the line between Sishen and Saldanha. The Salt River TRE plant constructed Phelophepa II, Transnet’s second healthcare train that travels to remote parts of South Africa. The Coach Business repairs and upgrades about 100 coaches per year and the TRE School of Engineering has about 200 artisans on its books at any one time.

107

Sector Highlights Transnet Rail Engineering’s Salt River works celebrated 150 years in 2012. • Cape Town feeder buses are being assembled in Epping.

major companies

• Transnet Rail Engineering • Busmark • Reutech Radar Systems TRE’s Auxiliary Business unit has depots at Salt River and Bellville. At Salt River, upholstery trimming is done for the passenger coaches. western cape business 2013


OVERVIEW Bellville TRE has facilities for container maintenance and repair. A programme of investment is converting Bellville into a mini-factory capable of upgrading and refurbishment. Containers can also be converted by businesses wanting to donate containers as classrooms or libraries. Epping-based Busmark 2000 has won the contract to assemble and supply the City of Cape Town with 190 feeder buses for the MyCiti system. These are smaller buses that are able to negotiate suburban streets. The Optare Solo buses are to be produced under licence from a company in the UK. The skills and energies of the Western Cape’s engineers are being tested by the challenges of fixing the country’s oldest scientific site, the South African Astronomical Observatory (SAAO) in Cape Town, and bringing new technologies to bear on the ultra-modern Square Kilometre Array (SKA) project in the Karoo. Marvan Hydraulics was employed by the SAAO to repair the remarkable hydraulic floor McClean Dome in the suburb of Observatory, designed in 1896 and sharing characteristics of the Tower Bridge in London. Engineering News reports that the 12-ton floor, which can hold 10 people, allowed astronomers in the early days to get to the telescope without using a ladder, a unique distinction at the time. western cape business 2013

Out in the Karoo, the concentration of modern astronomy equipment has provided challenging work for a number of electrical and mechanical engineers. Reutech Radar Systems, a Stellenbosch-based firm, was responsible for building the tracker for the South African Large Telescope (SALT) at a cost of more than R7-million. The main electrical consulting engineer on the project was Johardien & Associates. Another Cape Town company, Tellumat, is manufacturing feed-cluster subassemblies for use on the dish antennas of the latest radio telescopes for South Africa’s MeerKAT project. Each feed cluster gathers and amplifies signals from its own dish before sending them to a control room. Back in the Cape Town suburb of Pinelands, a large number of scientists and engineers from a range of disciplines monitor a bank of television screens bringing images of the satellite park in the Karoo. All of South Africa’s big construction firms are active in the Western Cape and have in-house engineering expertise. These vertically integrated companies are able to cope with large and complex projects. They include Murray & Roberts, WBHO, WSP Group Africa, Group Five, Grinaker-LTA, Basil Read, Stefanutti Stocks and Bateman Engineering. A R4-million skills-training facility for artisans has been opened by engineering group DCD. With South Africa very much in need of qualified people in the engineering sector, DCD has teamed up with Khula Nathi Empowerment to build a training centre in the Port of Cape Town. DCD has training centres in three other parts of South Africa. South Africa has one engineer to every 3 166 citizens, compared to Malaysia where the figure is 543 citizens per engineer. The National Department of Public Works has issued appeals to retired and unemployed engineers to step forward to help complete the infrastructure programme.

Online resources Consulting Engineers of South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za South African Federation of Civil Engineers: www.safcec.org.za South African Institute of Civil Engineering: www.civils.org.za South African Institution of Chemical Engineers: www.saiche.co.za Southern African Institute for Industrial Engineering: www.saiie.co.za

108


focus

Success, 150 years in the making Transnet Rail Engineering’s Salt River Works celebrated 150 years in 2012.

T

here was a time when the municipality of Woodstock was one of the richest and most powerful in the southern hemisphere. That was when the municipality stood apart from Cape Town and included in its borders the Salt River rail workshops. If gold and diamonds brought the industrial age to South Africa, it was the railways that delivered the iron, steel and technology. TRE Salt River recently celebrated 150 years of excellence. The Salt River plant opened for business in 1862. From its initial brief to service the rolling As an important part of the TRE Coaches stock that ran along the line from Cape Town to Business, and with a strong suit in Rotating Wellington, Salt River evolved into a multi-purpose Machines, Rolling Stock Components, Auxiliary facility that numbered 980 staff members in 1910, and Wheels, Salt River TRE is once again a when the Union of South Africa was proclaimed. powerful force within the rail economy. Salt River has seen several booms and busts. The Salt River Coaches Business refurbishes, By 1881, the works area covered more than upgrades and repairs about 100 coaches every 5 000 square metres and included a foundry, year and built the Phelophelpa II health train. The a woodworking shop and a springsmith shop. Passenger Rail Agency of South Africa (Prasa) wants A traverser was added in 1886. 3 860 coaches refurbished by 2015. In the boom years that followed World War I, the Locomotives on the Sishen-Saldanha line are floor space grew to nearly 30 000 square metres sent to Salt River for repairs. The Saldanha TRE on an 80-acre property. The staff complement depot deals with repairs to the iron-ore wagons grew to 2 139. The current Wagon Yard stands that routinely make up the 7km-long trains transporting the mineral to the port. on land reclaimed from the sea. In the modern era, Salt River experienced Salt River supplies support services to the a steady decline in output as a result of more Saldanha and Bellville depots. A total of 1 300 modern facilities being built in the north, and the staff are employed at the three facilities. overall decline in railway usage that resulted from Salt River TRE’s School of Engineering trained deregulation of the transport industry. 194 artisans in 2011, keeping up the tradition By the year 2000, staff at Salt River barely started back in 1883 when the Salt River Railway numbered 400, but as a plant under Transnet Institute opened. The Institute prided itself on Rail Engineering (TRE), Salt River has forged its huge library and promoted a culture of back strongly. self-improvement.

109

WESTERN CAPE BUSINESS 2013


PROFILE

Transnet Rail Engineering Transnet Rail Engineering, an operating division of Transnet SOC Limited, is the backbone of South Africa’s railway industry.

Transnet Rail Engineering (TRE) has nine product-focused businesses, 132 depots, six factories and about 13 000 employees countrywide. The organisation is dedicated to inservice maintenance, repair, upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, diesel and electric locomotives as well as wheels, rotating machines, rolling stock equipment, port maintenance, castings, auxiliary equipment and services. While the focus of TRE’s activities is mainly on the South African market, investment in research and development to service the specific requirements of Africa and the rest of the world has of reliability and availability. During upgrades, led to an ever-expanding range of rolling stock tractive effort is increased through the addiproducts and a comprehensive list of satisfied tion of microprocessor-wheel-slip control – customers. The proximity of the coastal plants to enhancing fleet-revenue-generation potential. major ports facilitates the movement of products to and from overseas markets. Wagon business: provides heavy maintenance, general overhauls, modifications, upgrades, The organisation’s competency is based maintenance and new builds. TRE is an origon its sound knowledge of the technolo- inal equipment manufacturer (OEM) of wagons. gies embedded in its products, supported The wagon business is a major supplier of new by ongoing research and development and wagons to the heavy-haul coal and iron-ore exceptional product application experience. fleets with tare ratios as high as 5:1. Other wagon types supplied are cement, car carriers, TRE’s business units intermodal and fuel tankers. Transnet Rail Engineering has four customerfacing businesses, with five internal-support Coach business: performs heavy maintenance operational businesses:

 of coaches, general overhauls, modifications and upgrades. Modernisation of South Africa’s Locomotive business: does heavy refurbish- large DC suburban fleet is one of the busiment, general overhauls, upgrades, manufac- ness’ main markets, and its modular upgrade turing, maintenance and assembly of various designs extend the economic lifespan of the types of locomotives. Dedicated staff operating sets. During upgrades, passenger and driver from depots and factories close to the main ergonomics are enhanced wherever possible, rail freight corridors maintain a fleet of 2 200 while safety and operating performance are locomotives per annum, ensuring high levels increased. Designs include dining, lounge and western cape business 2013

110

PHOTO: RAILWAYS AFRICA

An African focus


PROFILE kitchen cars, sleeper and sitter coaches and power units. Port and terminal business: the ports business is not new, as TRE has been maintaining and manufacturing straddle carriers for Transnet Port Terminals (TPT) for years. The ports business is now positioned to maintain all ports and terminal equipment and machinery. The long-term view is to get this business involved in assembly of all new port equipment. The internal support operational businesses are:

Foundry: TRE has two foundries in Pretoria and Bloemfontein. They manufacture castings to support the refurbishment programme of TRE.

Rotating machines: refurbishes and maintains all the rotating components that are found in rolling stock, such as traction motors. This Auxiliary business: offers both products and business is now involved in the assembly of services for rail cargo as well as ISO connew traction motors for the 43 class locomo- tainer refurbishing and wagon cleaning. It tives. All traction motors are qualified and supplies newly manufactured, repaired and load-tested to full capacity on back-to-back washed tarpaulins and accessories, product motor test facilities. Electrical work includes diversity extends to cargo canopies, scotches, repair and manufacture of motor field coils, lashing chains, road trailer tarpaulins, boat complete rebuilding, rewinding and repair of covers, tents and other PVC material products, armatures and the repair and calibration of trimming and cargo protection equipment. instrumentation.

PHOTO: transnet Rail engineering

Committed to the future

Rolling stock equipment: manufactures parts With its greatest assets being its people and and sub-assemblies for locomotives, coaches their skills, Transnet Rail Engineering is comand wagons. Processes involve laser cutting, mitted to many initiatives, such as the talent bending, welding, forging and fabrication of management programme, relationship building, carbon and stainless steels. It also repairs and performance management, transformation, a upgrades components to extend the lifespan comprehensive lifestyle well-being programme, of rolling stock. This includes refurbishing of as well as engineering bursaries and apprenbrake valves and cylinders, couplers, panto- ticeship training to name but a few. graphs and the overhaul of diesel engines, The organisation takes seriously its moral and turbo-chargers and compressors. legal duty to ensure the health and safety of Wheel business: the assembly of new wheels all employees. This obligation also extends to as well as the refurbishment and maintenance clients, the communities in which it operates of the existing fleet of wheels. The main activ- and to the protection of the environment. ities comprise wheel re-profiling, machining of axles, centres and tyres, fitting of wheel Contact details bearings, driving gears and motor suspension tubes, as well as centre re-tyreing, journal Tel: +27 12 391 1304 burnishing and crack detection through ultra- Fax: +27 12 391 1371 sonic testing from factories and depots on the Email: sales@transnet.net main cargo routes. Website: www.transnet.net

111

western cape business 2013


interview

Salt River celebrates 150 years, and plans for growth Collin Pillay

Collin Pillay grew up in Tongaat, north of Durban, and studied at what is now the Durban University of Technology. After qualifying as a plater, Collin continued to study. Qualifications in Advanced Development Programme in Business (NQF 7), a BTech and an MBA prepared him for roles in management. He worked in several aspects of Operations before becoming business manager of Auxiliary at the Durban plant. Collin was appointed national business manager of TRE’s R1-billion Rotating Machines Business in January 2012. He led the development of the Transnet Security Cluster in 2010 and chairs TRE’s corporate social investment programme in the Western Region.

western cape business 2013

In 2012, Transnet Rail Engineering Salt River celebrated its 150th anniversary at the same time as workshops that had lain dormant for many years were brought back on stream. Western Cape Business spoke with Centre Manager Collin Pillay.

Your national responsibility is the Rotating Machines (RM) Business. What does RM produce? RM refurbishes, maintains and assembles traction motors, all auxiliary motors, compressors, exhausters and engines. The core business of RM is the refurbishment of traction motors. We are accredited by General Electric (GE) to refurbish 761 traction motors in Salt River, and power assemblies and turbo’s at our engine plant in Bloemfontein. We further aim to be fully accredited for the refurbishment of engines in Koedoespoort. Where is RM’s biggest plant? Our biggest operation is in Koedoespoort, Pretoria, where we have two key functional areas: Engines and Traction Motors. Tell us about the operations at TRE Salt River. Within the Salt River environment we have a number of businesses: Coach, Auxiliary, Rotating Machines, Rolling Stock Components, Wheels and Support Services Business. In TRE, the customer-facing businesses are Coaches, Wagons, Locomotives and Ports. Salt River does the refurbishment and maintenance of Coaches, and Rolling Stock Components for Locomotives and Wagons. What are the support services and what area do they cover? Finance, human capital, projects, maintenance plant and engineering, ICT, business and product development, supply management, School of Engineering, and risk and safety. They are in Salt River Corporate Services and support all three operations: Salt River, Saldanha and Bellville. Does Salt River work together with Saldanha? We support Saldanha subdepot that maintains the locomotives

112


interview and wagons that are used to transport iron-ore. If anything goes wrong with a locomotive on the Saldanha line, and it relates to Rotating Machines, then that component will be sent to Salt River.

photo: Geof kirby/xrystal productions

How many people are employed by TRE in the area? Approximately 1 300, with 800 at Salt River and the balance at Saldanha, Bellville and other subdepots. New bogeys ready to be fitted at the Salt River Works. When did you start working at Transnet? What gives you the most satisfaction in I started off as an apprentice in 1990. I am a your work? qualified plater by trade, and I spent 10 years The pressure. The changing environment. The excitement is from the huge, ambitious targets on the floor. called the Market Demand Strategy (MDS). Were you studying at the same time? Motors and engines that go into a locomotive will When I qualified as an artisan, I decided determine whether we can deliver. I wanted to move into management. Then Tell us more about the Market Demand I started my studies part-time. Strategy. Does Transnet have a number of managers This strategy guides us to a better underwho have experienced working on the floor? standing of the market demands versus our There are quite a few, and it plays a huge role current capacity. Building capacity ahead of in helping managers, especially in the engi- demands, and having the ability to close the neering environment. My dissertation for my gap. Furthermore, to move bulk freight of MBA was on understanding the workplace approximately 350 million tons by 2019. That forum within the workplace environment. is what is creating the excitement. The MDS gives us ambitious targets. The market How well do workplace forums work at TRE? demand is high, compared to our current If you look at the success of TRE over the last capabilities. 10 to 12 years, the growth has been amazing. Prior to that we had challenges, but thereafter Does TRE Salt River have a role to play in nation-building? things just improved. Very much so. In the last couple of months, the You relate that to workforce relationships? bidding companies for the Prasa and locomoExactly. I think they are still strong. We have tive tenders have started looking for sites for the Letsema programme (Lean Six Sigma), assembly plants. Should they choose us, the where every morning, each team leader sits job creation could be huge. with the team members and they discuss the main areas (speed, quality, safety, cost and people). They assess the previous day and plan for the day ahead.

113

western cape business 2013


focus

Keeping the wagons rolling The world’s longest train is growing longer still.

N

azlie Tobias is regional operations executive, Wagon Maintenance, for the Western Region of Transnet Rail Engineering (TRE). Western Cape Business met with her in the Salt River offices of TRE at a time when the Transnet Group was confirming locomotive tenders with US and Chinese companies, issuing massive tenders for coaches, and generally ramping up its capital expenditure programme towards the R300-billion that will eventually flow into South Africa’s rail network. Nazlie is very clear how she feels about her role within the plan. ‘Very proud’, she says. She has seen so much positive change in her time with TRE that ‘it is very encouraging and motivating to be an employee and a manager at this time.’ The staff who work with Nazlie share her sentiments, and have a great deal of pride that the economy is moving, not just in their small area, but also the economy as a whole. Staff WESTERN CAPE BUSINESS 2013

members are keen to know more, and are eager to contribute. Some of Nazlie’s student friends were puzzled when she announced that she was going to become an ‘ysterman’ (iron man) working on the railways. Convention had it that she didn’t have the appropriate ‘look’, but she is now an executive manager for an entire region in a vital part of the railway network – wagon maintenance. The Western Region encompasses Bloemfontein, Kimberley, Posmasburg, East London, Port Elizabeth, Salt River, Saldanha and Bellville. Transnet’s Market Demand Strategy (MDS) is pouring money into new wagons, locomotives and coaches. The wagon-maintenance business in Saldanha supports the longest train in the world on the iron-ore line from Sishen in the Northern Cape. As Nazlie recounts, ‘Two years ago, we used to

114

photo: Railways africa

The iron-ore train on the Saldanha-Sishen railway line is the longest daily production train in the world.


focus work on 5 100 wagons; this year we are responsible for 6 200 wagons, to support the transport of 62 million tons of iron ore. ‘By year five, we will be maintaining 8 400 wagons to support coal volumes of 82.5 million tons.’ With Transnet’s factories ramping up to full production, other facilities have to step up in support. Bellville was, until recently, solely a maintenance depot, but it is being converted into a mini-factory. Bellville’s first task is the upgrading and modification of 200 wagons for coal and dolomite (the CGR design) and Namakwa Sands (the FKMJ).

Capital investment is needed: rail lines currently don’t run through every part of the plant and higher tonnage cranes are needed. ‘We are very excited that Bellville will be changing,’ says Nazlie. ‘We are small at the moment, but as we establish skills and capacity in moving up from maintenance to mini-factory status, we will grow’. Nazlie cautions that there will not be an immediate spike in employment. ‘As we put new wagons into the system, they are not immediately required for maintenance. As the years continue, then we will grow.’

From shop floor to manager Nazlie Tobias has honours degrees in Commerce and the Arts from the University of the Western Cape. She started as a graduatein-training in 1999. How did your journey start with Transnet? I came in as a trainee in Human Resources 12 years ago, when I was in my second year of BCom, majoring in management and human resources. In Transnet at that time there was a focus on bringing in females. I was one of five. Now there are many more. Which section did you work in? I was in Human Resources for two years. That’s when I became interested in the operational business. I got promoted to customer services manager in the Rotating Machines Business, where the main customer was Metrorail and Spoornet. And did you move back to HR or stay in operations? I became the local business manager of Rotating Machines here in Salt River. What was your first exposure to Operations? When I came here as a trainee, my first exposure was on the shop floor of the coaches business. In the paint shop, I liaised with the supervisors and monitored the outflow. To really add value on the HR side, I had to

understand the shop floor. That was my early exposure to Operations, not knowing that I would end up in Operations. What steps followed your promotion to local business manager in 2006? In 2008, I became the regional operations executive for Locomotives. Then, in 2010, I took on my current position at Wagons Maintenance.

Nazlie Tobias, Regional Operations Executive, Wagons Maintenance, Western Region.

How was working in a railyard different to the expectations you had as a student? When you are a young woman at university, you don’t even know what a railyard looks like. When you are studying BCom, you think you are going to sit in a glossy skyscraper doing business when you are qualified. I was pleasantly surprised and excited. And from then to now, this facility has grown so much: the infrastructure, the diversity, the work. It is all quite different from then to now, but a positive and exciting difference.

115

WESTERN CAPE BUSINESS 2013


interview

No hide-and-seek for this high achiever Florence Nomvuselelo Qwalana tells Western Cape Business how her mother’s strict lessons helped her make the move from a small rural village to become the supervisor of a team of electricians in the Transnet Rail Engineering plant at Salt River. Florence Nomvuselelo Qwalana

How did you decide on this career path? I come from a rural area near Mthatha where there was no electricity at all. So when people came to our school to explain about careers, I was so interested in the electrical field. I wanted to be able to go back and do something about it in the rural area. Did you have family in Cape Town? No, I came here to visit a friend living in Vrygrond. I was a domestic worker for two ladies in Muizenberg who ‘adopted’ me. They asked me what I wanted to do, and I told them I wanted to study. Over the weekends I worked for them, and from Monday to Friday I studied. I saved money so I could complete my studies.

How long have you been with Transnet? I started in 2004 as an apprentice. Where did you study? I matriculated from Lutubeni Senior Secondary in 2000. In my class, 21 students out of 100 passed. I did my N1 to N3 in heavy-current electrical engineering at Westlake College, and then finished my N4 at the Pinelands campus of the College of Cape Town. western cape business 2013

How did you find Transnet? My friend was an appie (apprentice) here; he explained that there were some posts coming up. I started here on 15 March 2004, as an appie. How was it working here? It was different. We had been expecting to climb ladders with heavy current, but we became electrical fitters. This was good because we learned new skills. What was the first move out of being an appie? By the end of November 2006, I was ready for my trade test. From 1 December 2006 they called us to the Rotating Machine section and gave us a 15-day contract, to fit pinions. We were working as artisans while we waited for the results. Did you have to wait a long time before you received a permanent job after qualifying? In March 2007, they called us to say that some posts were open, and we went to the Coaches division. Then we were offered a threemonth contract until 1 July. And then we were appointed as permanent artisan electrical fitters!

116


interview Where did you learn these values? From my mother. She was so strict. My mother is uneducated, but the way that she is, you must make sure you come back from school and open your books. It helped me a lot.

Florence is the supervisor of this electrical workshop.

photo: Geof kirby/xrystal productions

How did you feel when that happened? It was WOW! Everything was so... wow. I phoned my family, my mother was so ‘on top’. The way we are suffering at home... my mother had been sick. As soon as I became permanent I decided to bring her to Cape Town. With my first wages I bought an RDP house for her in Capricorn. She is enjoying Cape Town very much. What steps have you taken since then? After I became an artisan, I worked with push buttons, connecting the wires in the corners and all the electrical panels. In 2008, I was doing those jobs until they needed trainee supervisors. I was lucky to be one of those people they selected. I was a trainee supervisor from March until August 2008 when a position opened, and they appointed me. You say you were lucky, but there must be other qualities that someone saw in you? If there is a task that has been given to you, you don’t wait, you go and do it. When you have finished your task, you go the extra mile. You don’t wait for someone – ‘OK now I’m finished with my part, now it’s hide-and-seek’.

What motivates you? You have to know yourself, and each and every time you must look back. Where do you come from? Where are you going to? Those are the bold words that are motivating me: you ask these questions on a yearly basis. What have I done this year? What have I achieved? What went wrong? How can I rectify it?

Has Transnet helped you develop? They helped me a lot, coming from a situation where I didn’t have funds; they were there to support me with the Student Bursary Scheme (SBS). TRE provided practical work experience. What is your title? Supervisor: electrical section. There are 18 people reporting to me. Are you still hands-on? In Coaches, there is a lot of pressure, you have to wear your overalls and roll up your sleeves. Have you had a chance to go back to your village? I do go every time I get leave. The problem with our village is the electrical substation is still far away, but it is coming closer. I motivate the people when I go there. There are no libraries, you have to push yourself.

117

western cape business 2013


focus

Education is our priority Centre manager Collin Pillay talks about his own approach to corporate social investment, and the value of investing in communities for TRE Salt River.

C

orporate social investment (CSI) is very important in terms of the balance between business and the social side of things. I am passionate about CSI because I get involved in a number of community events outside my work environment. Once a month, we get together at the Amazing Grace Foundation and we help feed people in Wynberg, Cape Town. Over the last 10 years, we at TRE Salt River have been involved in a number of projects. Since early in 2011, we have started investing quite heavily. For this year, we have a R4-million budget. Collin Pillay, centre manager (Salt River). Education is our priority in terms of investing in communities. Some projects include: • Northway Primary School, Ravensmead: New playground, resurfaced netball field, the installation of a modern media centre • Bardale Secondary School, Mfuleni: Computer classroom comprising over 20 computers. The average value of such a unit is about R250 000 • Hopefield Primary School, Saldanha: A computer centre, ICT infrastructure, fire system and security. Seven computers to add to the 20 given by the Department of Education • Zusakhe Educare, Du Noon: Donations of food TRE helped to stock this computer lab. on Mandela Day, 2010. Toy drive for Christmas (more than 200 toys) When we went there, people were saying, ‘But From time to time, we have an impromptu CSI there are no railway lines here, how did Transnet project where we get the employees involved. know about this?’ We put empty drums in certain areas, and then Once a year at our awards ceremony, I also encourage our employees, ‘If you see that your we appeal to our employees to donate toys. In deciding how to approach CSI, we looked at community is in need, encourage them to put in all the different aspects of it. When we unpacked an application.’ We have a very thorough prothe real need, there are so many different areas, cess in making sure that the funds are spent in it is amazing. So now we are just focusing on the CSI projects that really benefit communities. things we can do and where we can make an impact. Smaller projects can also have a big impact. We recently went to Imizamo Yethu community in Hout Bay. We donated about 250 blankets after a fire in the area. That was very emotional. WESTERN CAPE BUSINESS 2013

118


OVERVIEW

Transport The Western Cape has excellent transport infrastructure.

W

ith three major ports, an important iron-ore rail corridor, three national highways and two large airports located in the Western Cape, the business of transport is a vital part of the provincial economy. The province’s ports are covered in a separate maritime section. Transport (with storage and communication), accounts for 11% of gross domestic product (GDP). Cape Town is connected to Europe through the SAT2 fibre-optic submarine cable, ensuring rapid communication. Transport routes and infrastructure are well developed in all areas, urban and rural.

The Cape metropolitan area The City of Cape Town Transport Authority (CCTTA) was launched in October 2012. In an effort to achieve an integrated transport system for the metropole, the CCTTA will control a system in which commuters can travel by taxi, bus or train and use the same smartcard to pay. The authority will impose standards of safety, ticketing and quality on all modes of transport. Other goals of the CCTTA are: • An Open Streets campaign that limits motorised traffic on certain roads

119

Sector Highlights The City of Cape Town is set to manage its own transport network. • Metrorail is investing R130-million in infrastructure and rehabilitation. • Transnet Freight Rail moved more freight than ever before in the year to March 2012.

major companies

• Metrorail • Transnet Freight Rail • South African National Roads Agency

• Airports Company South Africa

western cape business 2013


OVERVIEW

• The Main Road Bus-and-

Rail

Air

Cape Town has a good rail system for commuters in the metropole. It is connected via three main lines to the west coast, the south coast and the central regions. Locally, the city’s commuter service spans 164km of track and over 90 stations, providing an

Cape Town International Airport handled between 25 000 and 35 000 passengers per day during the Soccer World Cup. Foreign arrivals in December 2011 reached 86 910, up 17% on the previous year. Future plans include repositioning the runways to allow for expansion, and attracting more international flights. This will cost about R2-billion. The current ratio of domestic flights to international flights is 80:20, with the winter months being particularly slow in terms ...continued on pg 122

western cape business 2013

120

photo: COL. ANDRÉ KRITZINGER/RAILNET

Minibus-Taxi (BMT) enforcement regime • The upgrade of the transport interchange on the station deck • The Dial-A-Ride Users Forum • Fitting low-energy devices to all city traffic signals The Soccer World Cup kickstarted Cape Town’s integrated rapid transport (IRT) system. Apart from regular airport shuttles and links in and around the inner city, the main focus of the bus system Volumes of freight being transported by rail have increased. (MyCiti) is on the incredibly busy R27 road leading north-west out of Cape Town affordable transport alternative for many citizens. Metrorail is to Table View and Parklands, a division of the Passenger Rail Agency South Africa (Prasa). Prasa transports upwards of 470 million passengers the fastest-growing suburbs in South Africa. Beyond that annually. Just over 99% of these use commuter rail services. is Atlantis, an area that badly Metrorail has ordered 40 new trains to be delivered in the needs reliable public transport. years to 2015, and will spend R130-million on infrastructure May 2012 marked the first replacement and refurbishment. An amount of R9-million anniversary of the launch of has been set aside for fencing, which will be supplemented MyCiti. With more than three by another R4.5-million from the provincial government for million passengers at that priority fencing at level crossings. Transnet Freight Rail (TFR) runs the important iron-ore rail time, the project has clearly been a success. In 2012, line from Sishen in the Northern Cape to the Port of Saldanha on smaller buses connecting the the West Coast, from where the mineral is sorted and exported. suburban streets to the main TFR has been working on increasing efficiency in all lines were introduced. its operations. The total cost of the IRT In the year to March 2012, TFR moved 202 million tons of system is estimated at freight, the most ever. Volumes of freight being transported by R4.6-billion. rail have increased by 7.3%.


Bot River – has become the subject of a clash between the City of Cape Town and the South African National Roads Agency (Sanral). The important north-south connection between the N1 and N2, the R300, has had two extra lanes added, making it a six-lane road. The 15km road carries more than 70 000 vehicles every day. The M5, which also links the N1 and N2, carries about 200 000 cars per day. The The Integrated Rapid Transport System has been a huge Koeberg M5-N1 interchange, success in the province. on which work has been proceeding for many years, was of international business. Some international airlines only fly to finally completed in 2012. Cape Town in the summer. Sanral reports that about George Airport is the second airport of significance in the 10% of the province’s roads Western Cape. are poor or very poor. More than 60% fall into the good and very good categories. Roads The Western Cape DepartVisitors to Cape Town and directors of bizarre advertisements ment of Transport and Public and film sequences may be disappointed to hear that the Works (DTPW) will spend council has decided to do something about the unfinished R12.7-billion in the years to Foreshore Freeway. The ‘Road-to-Nowhere’ has been a Cape 2017 on road building and landmark since 1977, but the City of Cape Town has assigned infrastructure. Several espethe students of the University of Cape Town’s Engineering Fac- cially dangerous spots for ulty with a daunting task – come up with a solution that will pedestrians have been identiplease everyone. fied throughout the province One of the biggest road projects in the province – the Wine- and measures taken to reduce lands toll-road scheme encompassing the N1 north from the fatalities. An average-speedR300 intersection and the N2 from the same intersection to over-distance camera has been erected on the road between Beaufort West and Aberdeen, Online resources a stretch of road with a terrible Airports Company South Africa: www.airports.co.za record of fatalities. Air Traffic and Navigation Services: www.atns.co.za City of Cape Town: www.capetown.gov.za Civil Aviation Authority: www.caa.co.za Metrorail: www.metrorail.co.za Passenger Rail Agency of South Africa: www.prasa.com Railroad Association of South Africa: www.rra.co.za South African National Roads Agency Limited: www.sanral.co.za Transnet Freight Rail: www.transnet.net

western cape business 2013

122

photo: CITY OF CAPE TOWN

OVERVIEW


The Cape Chamber of Commerce African Commercial Dispute Settlement Centre The new Court Rules on Mediation make mediation a compulsory step for all civil and commercial litigation. The King III Report on corporate governance places a fiduciary duty on management to consider the use of ADR, in particular mediation, before deciding to litigate. In addition, the Medium Term Strategy of the Department of Justice gives a clear indication that government intends applying mediation to reduce the backlogs in courts. In response to this, as well as a growing call from business to reduce the operational and financial risks of litigation, the Cape Chamber of Commerce will open the African Commercial Dispute Settlement Centre. The Centre will give organisations across the Continent the chance to make use of alternative forms of dispute resolution (primarily mediation and arbitration) to resolve disputes quickly and cost-effectively making use of a professional, efficient service and circumventing the burden of litigation.

How to refer a dispute: Any party to a dispute can refer the dispute to the African Commercial Dispute Settlement Centre (ACDSC). A referral can be submitted in any of the following 4 ways: * * * *

Complete the electronic referral form on the Dispute Settlement page and click on “submit� Download the referral form and fax the completed form to 0862317492, or email it to disputesettlement@capechamber.co.za Call the ACDSC helpline on 021 402 4352. You will be assisted in submitting a referral Visit us at the Cape Chamber House, 19 Louis Gradner Street, Foreshore, Cape Town

For more information visit www.capechamber.co.za and click on the dispute settlement page


Reg No. 1993/004149/30

BUSINESS EXCELLENCE AT AIRPORTS COMPANY SOUTH AFRICA Airports Company South Africa has received numerous accolades and awards for its operational and financial performance, including the prestigious ‘Non-listed Company of the Year’ award. Airports Company South Africa has twice been runner-up in the Deloitte Corporate Governance Awards for listed and non-listed companies. East London Airport was awarded the ‘Most Improved for Staff Service Excellence’ by the Airports Council International (ACI) in the Airport Service Quality (ASQ) global awards. East London won the award for the ‘Best Improvement by Region’ for Africa. The airport currently facilitates just under 700 000 passengers per annum. ‘The award is a testimony to the commitment and hard work of all the airport staff who will continue to do their utmost to deliver a great passenger experience for all airport users. In the 2011 ASQ results, we improved in courteousness, helpfulness and efficiency of all staff, with good ratings in the security and airline check-in staff. This contributed tremendously to our airport winning the ACI “Most Improved” award in Staff Service Excellence,’ says Michael Kernekamp, airport manager at East London Airport.

Meanwhile, Cape Town International Airport (CTIA) has once again been awarded the ‘Best Airport in Africa’ and the ‘Best Airport in Africa for Staff Service Excellence’ at the SKYTRAX World Airport Awards. Its sister airport, King Shaka International Airport, also received the ‘Best Regional Airport’ SKYTRAX award. CTIA is Africa’s most award-winning airport, having scooped the ACI ‘Best Airport in Africa’ award, the ‘Best Improved Airport’ as well as the internationally recognised SKYTRAX Award for ‘Best Airport for Staff Service Excellence’ the previous year. ‘The consistency with which the airport achieves these awards confirms our commitment to continuous improvement and demonstrates that the airport’s achievements are not once-off,’ says Deidre Davids, communications manager at Cape Town International Airport. Other airports in the Airports Company South Africa stable that won awards include King Shaka International Airport as ‘3rd Best Airport in Africa’ and Upington International Airport for ‘Best Regional Airport’. Since its commencement in 2006, the ASQ Awards have become the world’s leading airport passenger-satisfaction benchmark with over 200 airports participating in more than 50 countries. www.airports.co.za


AIRPORTS ARE VITAL TO ECONOMIC GROWTH Airports Company South Africa’s nine principal airports play a key role in the broader transport sector, so vital to the health of our economy. Over the years, Airports Company South Africa has successfully transformed its airports into effective global competitors through infrastructure development and efficiencies, and award-winning passenger service levels. This enables South Africa to link people efficiently with their business and leisure destinations, whilst at the same time facilitating trade around the globe. There is no doubt that our airport services underpin our efforts to drive economic development for all our people.

Today, some 51 airlines fly into South Africa, up from a mere 18 in 1993 when the company was formed. Passenger traffic has also grown from 12 million in 1993 to reach some 36 million passengers a year currently. www.airports.co.za


special feature

The maritime industry

A

mong the meetings held at the 2012 South African Maritime Industry Conference were a series of subsector conferences, the titles of which give insight into the potential scope of this underdeveloped sector: • Shipping, ports and logistics • Marine manufacturing • Fishing and aquaculture • Marine tourism and leisure • Oil and gas Organised by the South African Maritime Safety Authority (SAMSA), the conference sparked considerable interest and drew attention to the fact that South Africa is not gaining as much as it should from the maritime sector. One example is the absence of a merchant fleet, another is the scarcity of ship-repair facilities. western cape business 2013

With oil and gas finds growing exponentially in volume off the west coast of Africa and off the coast of Mozambique, there is a huge opportunity for South Africans to grow big businesses in the rig repair and service industry. This is a topic that the Western Cape MEC for Economic Development and Tourism Alan Winde feels strongly about. ‘In the next five years, the oil industry around Africa will spend, just on servicing, about $220-billion,’ says Winde. He argues that all of the ports of South Africa should cooperate in trying to attract the business of the 130 rigs that pass the country’s shores. No one port can cope on its own. As Winde puts it, ‘We must compete, but we also have to convince the market that we can handle their rigs. How do we hunt as a pack to tackle this massive elephant that is the oil and gas industry in Africa?’

126

photo: transnet national ports authority

The Western Cape is well placed to lead a lucrative South African maritime industry.


special feature

South African ports must work together to attract the business of the many rigs that pass by. The chief executive of the South African Oil and Gas Alliance (SAOGA), Warwick Blyth, told Reuters in July 2012 that South Africa is starting to realise its potential in this market. Cape Town and Saldanha’s facilities were ‘exceptionally busy’, according to Warwick, who noted that each of the three or four repair jobs being done simultaneously was worth about R200-million. The same article estimated that the ship and oil-rig repair industry could triple its annual revenue to R3-billion by 2015, and create 3 000 jobs. DCD Marine is the company that operates Cape Town’s rig-repair facility, the largest ship-repair yard in Africa. There are supplementary yards in Simon’s Town and Saldanha. In 2012, DCD Group bought Brown & Hamer (EBH) and inaugurated a new training facility in the Port of Cape Town, two signs that the company is gearing up for expansion. Another transaction in the logistics sector saw Röhlig-Grindrod acquire the clearing and forwarding division of the Sturrock Group, the headquarters of which are in Cape Town. JSE-listed Grindrod’s two major divisions are Freight Services and Shipping, with brands such as Unicorn Shipping and Grindrod Freight Services very prominent in their sectors.

Some companies, such as TD Shipping & Clearing, concentrate on importing and exporting, and ensuring that all paperwork and warehousing is taken care of. Training for the maritime sector is well in hand through the Lawhill Maritime Centre at Simon’s Town, an award-winning training centre. SAMSA points out that only 2 000 of the 6 000 seafaring jobs are held by South Africans. The agency estimates there are 341 maritime careers available, ranging from marine surveyor to oceanographer. The Agulhus ship, which used to visit Antartica, is now a training vessel.

Ports The Western Cape has three major ports: Saldanha, Cape Town and Mossel Bay. Two Transnet divisions play important roles in the operations of the province’s ports: Transnet National Ports Authority (NPA) and Transnet Port Terminals (TPT). The NPA runs all of South Africa’s commercial ports, and the 205 million tons of cargo handled annually by the ports represents 98% of the country’s import and export volumes. Part of the NPA’s brief is to roll out Transnet’s

127

western cape business 2013


massive infrastructure enhancement programme. Every port is receiving upgrades and capacity is being increased at all terminals, whether they are general cargo terminals or commodityspecific terminals. TPT has a multi-purpose terminal at Saldanha and two terminals within the Port of Cape Town: the container terminal and the multi-purpose terminal (MPT). Cape Town’s MPT has two operating terminals, one for fruit, fish, steel and general cargo and A pilot boat similar to the one being built for Saldanha. another for bulk volumes of agricultural products such as wheat, fertiliser and fish. The Port of Mossel Bay services the fishing and TPT will spend R30-billion in the years to 2019 petroleum industries. The port is the only one on increasing capacity at all its terminals. in South Africa to operate two offshore mooring The Port of Cape Town is a full-service, gen- terminals, and serves as the oil-rig supply boat eral-cargo port, particularly well-equipped in base for the region. its general container storage, cold storage and Cape Town and Saldanha are ideally positioned fresh produce storage facilities. Petroleum and to support and service the growing oil and gas petroleum gas products make up a significant sector along the African west coast. Saldanha’s proportion of imports and exports. deep berthing capacity gives it a particular Capacity of the port has doubled in recent times, advantage. the result of a four-part R5.4-billion expansion The Port of Saldanha is the deepest natural plan. Capacity has reached 1.4 million twenty- port in Southern Africa, and can accommodate foot-equivalent units (TEUs) per year. vessels up to a draft of 21.5 metres. The port was The upgrades to the terminal’s four berths and established to service the iron-ore industry, but the Ben Schoeman Basin will enable larger ves- its services have diversified to include crude oil, general minerals and steel products. sels to safely use the container terminal. Six new Liebherr ship-to-shore cranes were A number of big-ticket projects are planned secured in place during 2009 and 2010, greatly for the Saldanha area, including: improving productivity. A further 28 rubber-tyred • The establishment of a R10-billion metals gantry (RTG) cranes have been added to the port’s refinery plant inventory. • A solar-energy project big enough to power 6 High winds sometimes inhibit the full deploy000 new houses ment of all the cranes, but TPT Cape Town has • A R45-billion industrial development zone set targets for gross crane moves per-hour (GCH), • The completion of phase three of the bulk and the number of containers that are moved in iron-ore handling facility expansion an hour, known as ship-working-rate per hour Damen Shipyards is building a pilot boat and a (SWH). The targets are 26GCH and 44SWH. tug boat for the Port of Saldanha for delivery in The Port of Cape Town, and the adjoining V&A 2013. The pilot boat is customised to maintain Waterfront, also serves to support the tourism speed in rough weather. sector in the region. The working harbour is sometimes required to berth large cruise liners that visit the Cape, though the Waterfront is exploring ways to handle these larger vessels. western cape business 2013

128

photo: Damen Shipyards Cape Town

special feature


PROFILE

TD Shipping & Clearing cc TD Shipping & Clearing in Cape Town is a family-run business that was established in 1996. The business was established by Tony Moodley, who started his career in Durban more than 35 years ago with Watson Shipping. He then moved to Cape Town in 1973 to open an office for Schenker & Co. SA. After this company closed offices in Cape Town, Tony continued working in the forwarding business for another international company until he decided to start his own company. The main focus of the business is the import and export of non-perishable cargo via its worldwide network.

provide its clients with a more personalised and efficient level of service delivery. TD Shipping is committed to maintaining its high levels of customer service, while also being involved in aiding social-upliftment programmes in disadvantaged communities in and around Cape Town. Among the most recent highlights was the clearing of equipment from the USA for Groote Schuur Hospital’s oncology unit. This highly specialised equipment formed part of a ‘breakthrough therapy’ in the treatment of cancer.

TD Shipping currently has a staff contingency Among the larger exporters handled by TD of five. Shipping is a manufacturer of exclusive outdoor furniture who export to the USA, Europe, Services offered include: South America, Australia and the Middle East. • Air-, sea- and road-freight (imports and exports) • Customs clearing and forwarding TD Shipping also exports wines internation- • Customs registration ally for many of the well-known estates in the • Bond store and warehousing Western Cape. • Freight insurance Regular importers include one of the largest international beverage companies, a lighting company specialising in supplying light fittings to the ever-growing South African wholesale and retail industry, as well as one of the largest manufacturers and suppliers of packaging services to the food industry in South Africa. Almost all of TD Shipping’s clients have been with the company since it started, which is a clear indication of the loyalty and trust that the company’s customers place in it. It is also interesting to note that many new clients result from referrals from existing clients. TD Shipping has been able to establish a network of local and international agents allowing it to

BEE status 100% black owned, directed and staffed

Contact Details: Key contact people Tony Moodley, Managing Director Joy Moodley, Operations Director Tel: +27 21 421 3606/7/9 Fax: +27 21 421 3608 Email: tony@tdshipping.co.za Email: joy@tdshipping.co.za Physical address: Suite1060, 10th Floor, Picbel Parkade, 58 Strand Street, Cape Town 8000 Postal address: PO Box 6719, Roggebaai 8012

129

western cape business 2013


BILLIONS TO BOOST WESTERN CAPE PORT OPERATIONS OVER THE NEXT SEVEN YEARS The two Western Cape ports of Cape Town and Saldanha will enjoy multi-billion rand investments by port operator Transnet Port Terminals (TPT) over the next seven years as part of Transnet SOC Ltd’s Market Demand Strategy (MDS).

the capacity to export a much greater volume of iron and catering for the projected volume demand, which is forecast to grow from current volumes of 58 million tonnes per annum to more than 120 million annually over a thirty year period.

This bold capital investment programme will see the state-owned freight transport and handling company invest R300 billion on freight infrastructure over a seven-year period. Of this TPT has been allocated R33 billion to boost performance, safety, and productivity at the cargo handling facilities it manages at seven commercial ports in South Africa. The Cape Town and Saldanha port terminals are at the crossover of a new chapter in their history. Exciting economic developments within the province, coupled with the infrastructuredriven Market Demand Strategy, will present the terminals with invaluable volume growth and diversification opportunities.

Port of Saldanha: Chief among the MDS investments aimed at creating capacity and improving efficiencies between 2012 and 2019, is the expansion of the iron ore bulk facility at the country’s deepest natural port. Planning is underway for Phase 2 of the Saldanha iron ore expansion project. The terminal’s current capacity of 60 million tons per annum (achieved through the Phase 1C expansion) will be expanded to 82 million tons per annum. This will equip the terminal with

Planning for Phase 2 of the Saldanha iron ore expansion project is underway. Some R25 billion has been set aside by Transnet for the development of the Sishen to Saldanha Bay iron ore line, including the port expansion and the railway line. An additional two berths are to be built at the Port of Saldanha and will be accompanied by extended stockpiles. Expansion of the multipurpose terminal is also on the cards with new berths and extended quayside planned.

Port of Cape Town Although not part of the MDS investment pipeline, the Port of Cape Town is also undergoing several other investment projects.


The Cape Town Container Terminal is undergoing a R5.4 billion expansion which will have doubled the terminal’s capacity upon completion in 2013 to 1.4 million TEUs per annum.

ensure the success of the Market Demand Strategy and in so doing, make our ports competitive and help TPT become the Southern Hemisphere’s port operator of choice,” he says.

The neighbouring Cape Town Agri RoRo Terminal is undergoing an equipment replacement programme to improve productivity and vessel turnaround times for bulk and break-bulk cargoes.

Unconstrained growth Commenting on the seven year capital investment programme, TPT Chief Executive Karl Socikwa says: “The MDS has major implications for our division’s responsibility to facilitate unconstrained growth, unlock demand and create world-class port operations through improved efficiencies”. 71% of TPT’s R33 billion will go towards expansion and creation of new capacity to meet projected demand and the remaining 29% will be focused on sustaining existing capacity by achieving operating norms and upholding service delivery. The latter includes the replacement of aged equipment as well as the refurbishment of existing equipment. Sockiwa believes these investments into South Africa’s commercial port operations will continue to provide a springboard for growth. “We will implement specific initiatives to grow volumes and use capacity as it comes on stream, while improving operational efficiencies and growing personnel. In this way we hope to

Cape Town Container Terminal is undergoing a R5.4 billion expansion which will result in the Terminal’s capacity being doubled when complete in 2013.

Transnet Port Terminals is a division of Transnet SOC Limited, South Africa’s state-owned freight transport and handling company. It provides efficient and reliable cargohandling services at terminals situated across seven South African ports – Durban, Richards Bay, Cape Town, Saldanha, Port Elizabeth, Ngqura and East London. TPT customers include shipping lines, freight forwarders and cargo owners. Operations cover import and export operations across the following cargo sectors: Containers, Mineral Bulk and the Agricultural Bulk and RoRo Sector. For more information visit www.transnetportterminals.net or call 031 308 8333.


OVERVIEW

Construction and property development Cape Town’s CBD is a hive of building activity.

Sector Highlights Century City has attracted R17-billion in investment. • Newspaper House has been sold for R86-million. • Scottsdene and Belhar are getting integrated housing schemes.

major companies

• Faircape • Murray & Roberts Construction

• WBHO • Growthpoint • Calgro M3 Holdings includes linking the CTICC with the Artscape complex. The Cape Town CBD attracted he amount of building activity going on in downtown Cape property investment of Town belies any talk of a recession. The contribution of R4.6-billion in the three years the construction sector to the Western Cape economy is to 2012. about 4%. The famous Newspaper The R1.6-billion Portside building is at the centre of this House has been sold by Auctrend, but there are many other buildings going up besides. tion Alliance for R86-million. Old Mutual and First Rand are the owners of Portside, which is According to a 2012 City being built by Murray & Roberts. At 139 metres tall, the building of Cape Town report, the will be Cape Town’s highest. total value of CBD property is Other major buildings going up in lower Bree Street include R21-billion. 107 Bree Street and an office block for law company Bowman Murray & Roberts and Gilfillan. Several law firms and financial-services companies Concor, both previously part have built in the area near the Cape Town International Conven- of the Murray & Roberts tion Centre in recent years. Plans to spend about R700-million Group, merged in 2011 to form on expanding the CTICC are part of a broader Foreshore regen- Murray & Roberts Construction. eration scheme that will cost about double that. This scheme The new company will operate ...continued on pg 134 The proposed new east wing extension to the CTICC.

western cape business 2013

132

Impression: cape town international conference centre

T


PROFILE

Amabamba Fencing Amabamba Fencing (Pty) Ltd has been a market leader in the fencing industry for the past few years, and its staff can boast some 30 years industry experience. Amabamba Fencing (Pty) Ltd is not only a proudly South African company, but is femaleowned and has an accredited Level 1: 135% BBBEE scorecard rating. Amabamba Fencing has extensive experience and the infrastructure to match, allowing the company to engage in any commercial, industrial or contract project across South Africa with meticulous execution. Amabamba specialises in the installation of palisade, conventional mesh, electric, bezinal and various other types of fencing; servicing national and local government as well as all parastatals.

of Public Works, Prasa, Eskom, Roshcon and the City of Cape Town. Recently, the company was involved in its largest project: Wellington landfill site.

Products • Betaview and Clearvue fencing • Bezinal-mesh fencing • Mesh gates • Kerbing • Concrete-reinforced ramps • Conventional fencing • Palisade fencing • Bar fencing • Single-mesh gates • Sliding gates • Motorised gates

Amabamba was registered in October 1996 to support and promote the Reconstruction Development Programme (RDP) policy envis- Key facts aged by the South African government. The Black ownership: 100% policy aims to improve the imbalance of power Black female ownership: 75% sharing within companies, and to provide real Black staff: 100% business opportunities for previously disad- Staff complement: 38 including subcontractors vantaged individuals. BBBEE: Level 1 CIDB grade: 5 SQ Amabamba promotes the interests of previously disadvantaged employees by instiContact details tuting training and educational programmes. Amabamba believes in regular staff training Key contact person: to stay abreast of all necessary measures and Sharon Isaacs, Managing Director requirements, such as health and safety, first Nicholas Pieterse, Sales Director aid, and operating regulations for high-voltage George Blouws, Director systems (ORHVS). The company has a ‘zero Cecilene Fransman, Accountant harm’ approach. Tel: +27 21 905 1600 Amabamba works on projects such as sub- Fax: +27 21 905 0574 stations, schools, sports fields, estates, prisons, Email: sharon@amabamba.co.za hospitals, Metrorail stations, parks and shop- Postal address: PO Box 103, Kuils River 7579 ping centres. Some of Amabamba’s prestigious Physical address: 4 Heath Circle, Blackheath clientele include: Airports Company South Website: www.amabambafencing.co.za Africa, Intersite Investments, the Department

133

western cape business 2013


OVERVIEW through the seven operating divisions of the former companies, including Murray & Roberts Western Cape. Several areas on the edge of the Cape Town CBD have grown in popularity as officepark destinations. One of the most successful has been Faircape’s Wembley development above Roeland Street, where Amazon is one of the tenants. Another Faircape development, The Boulevard, has added nearly 40 000 square metres of office space to what used to be the edge of District Six. Nearby Woodstock is already a trendy place, with the Old Biscuit Mill leading the gentrification process. Dornell Properties is developing The Woodstock Exchange, a R17-million conversion in Albert Road that will house 60 tenants. Further out of the city along the N1, Century City continues to attract investors. The Century City Property Owners’ Association says that a total of R17-billion has been invested in the site, which is now 850 000 square metres in extent. More than 5 000 commuters use the new Century City railway station, but this number is just 10% of the number of people who live or work on the site.

Housing The City of Cape Town has set a target of building 4 000 houses in 2012. The Western Cape Provincial Government western cape business 2013

has also made provision for 3 000 houses to be built opposite the Mew Way turnoff on the N2. Two integrated housing projects involve the JSE-listed property development company Calgro M3 Holdings. The suburb of Belhar will receive 3 600 residential units (a joint venture with a BEE company Belhar CBD), and Scottsdene will get 2 247 units of different sorts. Types of accommodation in these mixed-use developments include: • Social housing • Gap housing (where household income is between R3 500 and R10 000 per month) • Student accommodation (for nearby University of Western Cape and Cape Peninsula University of Technology)

Western Cape property With a number of developments set to take place in and around the West Coast town of Saldanha in the near future, property prices in this area are sure to increase. The auction of Rembrandt Tobacco Corporation’s Berg River property in Paarl East opens up the possibility for a mixed-use development. The property has industrial zoning but the river frontage is likely to mean that a residential component will be included in any new project. Franschhoek is a prime location, where prices range from cottages for R2-million to luxury houses for more than R20-million. A five-bedroomed luxury house on Plettenberg Bay’s Robberg Beach was initially on the market for R22-million, but the price was reduced to R16.75-million. Property company RE/MAX Coastal reports reduced volumes in holiday-home purchases as a result of the recession. In George, a R42-million upgrade project for the Fancourt Hotel and Golf Estate was announced shortly after the Soccer World Cup. Owned by Hasso Plattner, a co-founder of IT company SAP, the Fancourt estate attracts buyers from all over the world, with house prices ranging from R6-million to R32-million.

Online resources Construction Industry Development Board: www.cidb.org.za Green Building Council of SA: www.gbcsa.org.za Master Builders and Allied Trades Association, Western Cape: www.mbawc.org.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Architects: www.saia.org.za SA Institute of Valuers: www.saiv.org.za SA Property Owners Association: www.sapoa.org.za.

134


Murray & Roberts is South Africa’s leading engineering, contracting and construction services company, with a primary focus on the resources-driven construction markets in industry & mining, oil & gas and power & energy in Africa, Middle East, Southeast Asia, Australasia and North and South America. The company offers civil, mechanical, electrical, mining and process engineering; general building and construction; material supply and services to the construction industry; and the management of concession operations.

We build to last. 110 years: 1902 to 2012

More information is available at www. murrob.com

Murray & Roberts Client Service Tel: +27(011) 456-1144 Fax: +27 (086) 637 0113. Email: clientservice@murrob.com

WE BUILD TO LAST.indd 1

2012/03/0


focus

Reaching new heights Murray & Roberts was appointed as the principal contractor to build Cape Town’s tallest building.

WESTERN CAPE BUSINESS 2013

136

PHOTO: andre wessels/ http://futurecapetown.com

M

urray & Roberts is the principal contractor on the building of Portside, an AAA-grade commercial office tower that will be Cape Town’s tallest building. The project has a tendered value of just under R1-billion, and the project duration is estimated at 24 months. The project commenced in November 2011. Jerome Govender, chairman of Murray & Roberts Construction, says, ‘We are excited to have been selected to build Cape Town’s newest landmark, especially considering that the South African construction economy remains weak. This is a significant contract win for Murray & Roberts.’ The office tower will comprise two basements, double-volume ground-floor retail, reception space, seven structured parking floors and 20 office floors (both covered and open plan). Portside, a 32-storey office building, will be a landmark in Portside was commissioned Cape Town’s financial district. by Eris Property Group and Old Mutual Property. The office tower will be Building Council of South Africa. It is hoped that the provincial headquarters for the three divi- Cape Town’s Portside development will be the sions of FirstRand – First National Bank, Rand first building project to receive a full three-star Merchant Bank and Wesbank. Co-owners Old Green Star eco-friendly rating for construction Mutual will offer an additional 25 000m2 in materials. The concrete being poured contains the lower portion of the tower for leasing to up to 70% waste materials and as much as 10% corporate office tenants. of the aggregates consumed (typically sand and Murray & Roberts is committed to Green stone) are waste materials. Star initiatives and realistic targets set by the The strength of concrete is measured in Green Building Council. Recent Murray & Roberts megapascals (MPa). In theory, a cubic metre of Construction projects in the Western Cape are concrete that is rated 30 MPa (a typical standard being submitted for accreditation to the Green for structural concrete) is able to withstand the


focus weight of six bull elephants. Traditionally, 30 MPa concrete requires between 300kg and 350kg of ordinary cement per cubic metre. But now, scientists working for Murray & Roberts have developed a technology that meets the 30 MPa standard using just 25kg of cement or even less. Not only does it meet the standard, it far exceeds it. To date, strengths of up to 52 MPa have been achieved using Murray & Roberts’ patented ARC (Advanced Recrystallisation) technology and only 25kg of cement per cubic metre. Best of all, the ARC process uses large amounts of recycled waste products. The most common recycled ingredient is slag from the steel-manufacturing process.

The company is also proud to be playing a pivotal role in the development of South Africa’s new power station infrastructure, with its major involvement in the construction of the Medupi and Kusile power stations. ‘Murray & Roberts Construction’s leading capabilities in the building realm are the sum of decades of experience and, when complete, the 32-storey office building will help entrench the surrounding node as Cape Town’s newest financial district,’ concludes Jerome. www.murrob.com

Murray & Roberts operating platform executive: Q & A Jerome Govender was appointed as operating platform executive for the Construction Africa and Middle East operating platform and a director of Murray & Roberts Limited from 1 August 2012. Jerome has been Jerome Govender the chief executive of Bombela Concession Company (BCC) since 2007, having joined the Murray & Roberts corporate office in 2002. He was appointed as commercial director of Murray & Roberts Construction and then general manager of Murray & Roberts Concessions. Before he joined Murray & Roberts, Jerome was a director at the Department of Public Works and interim chief executive of the Construction Industry Development Board. What are the milestones you are most proud of having achieved in your career so far? So far, it would have to be leading Bombela Concession Company through the intense negotiations process with provincial

government and our various subcontractors to agree on terms for delivering Gautrain’s Phase One in time for the Soccer World Cup 2010; and then its subsequent delivery three days ahead of kickoff. It was a great achievement for South Africa and the team at Bombela. I am also immensely proud of the fact that, although Gautrain has presented significant challenges for some contractors, Bombela Concession Company has been able to deliver significant value to its shareholders. What are you looking forward to in your new role? There are some great people in the Construction Africa and Middle East platform who love what they do. They are working on some amazing projects. I am looking forward to working with them and collectively delivering value to our clients and to Murray & Roberts. What are your main interests after-hours? My wife and I have young twins – a boy and a girl – Adam and Leah. They are the apples of my eye. And so for now, when I am not working, I try to spend as much time with them as I can. It’s amazing how they help take my mind off the pressures of the day.

137

WESTERN CAPE BUSINESS 2013


interview

An entrepreneurial environment CEO of RE/MAX Southern Africa, Adrian Goslett, reflects on the current economic climate’s effect on the property market.

Adrian Goslett

Adrian Goslett joined RE/MAX of Southern Africa in 2005 as a franchise development consultant, supporting various regions and offices. Throughout his career at RE/MAX he has held various positions, and in 2010, after successfully leading the RE/MAX network through the worst year real estate had seen in South Africa in 30 years, Adrian was appointed as Regional Director and CEO of RE/MAX Southern Africa.

western cape business 2013

Please take us through a brief overview of RE/MAX, and the fundamentals of the business. RE/MAX is an international company, with offices in approximately 85 countries worldwide, and over 1 750 agents working through more than 150 offices in South Africa, Botswana, Mauritius, Mozambique, Namibia, Zimbabwe and Lesotho. Internationally, RE/MAX agents sell a home approximately every 30 seconds. RE/MAX is a pure franchise business model. In terms of our model, the major difference between us and everyone else is the agent’s ability to earn the majority of the commission per transaction. In the traditional model, the real-estate agent will make the sale and retain 50% of the commission. In our model, the agent will retain most of the commission but will pay a fixed contribution to be affiliated to the office. In this way, the agents are able to cap their fixed costs and maximise their income. How has the property market impacted on the franchisees? From the boom of 2006/07 to now, one of the major lessons that we’ve learned is how to do a lot more, with a lot less. We are relying a lot more on technology, in order to become more efficient. Our focus is on quality and outstanding service to our past and present clients, as we believe in the philosophy of working by referral. One of our contributing success factors is that the majority of franchisees that were with RE/MAX when it started 17 years ago are still with us today. What is your outlook for the next year or two? It is still going to be tough. Consumers will probably not see the inflated 20% returns of the boom years. Property and home ownership has and should always be viewed as a longer-term investment. Now is the perfect time to buy. Interest rates are at their lowest rates ever, there is lots of property on the market which means room for negotiation. If you’re looking to get into property, now is the time.

138


OVERVIEW

Water The Berg Water Project is one of the country’s biggest.

S

outh Africa is a water-scarce country, and there are parts of the Western Cape that experience bad droughts. The National Department of Water Affairs has presented to cabinet the National Water Resource Strategy 2. Water security and quality are the key components of this long-term planning tool. Stellenbosch University launched the Water Institute in 2011. The institute will drive research into technology and innovation. The cost to the City of Cape Town of losing nearly 19% of its piped water through faulty connections and leaks comes to more than R4-million per annum. The city’s wastewater system is being upgraded. The treatment works at Potsdam will have its capacity enlarged and a new facility is being built at Fisantekraal near Durbanville. The Water Resources Group is an international group that promotes efficiency to save water. The chairman is the Nestlé group chairman Peter Brabeck-Letmathe. Nestlé’s Mossel Bay plant has reduced water consumption by 50% by making better use of a condensate by-product of its production processes. Coca-Cola’s Replenish Africa Initiative (Rain) is delivering water to schools through the Rain Water for Schools Project. The Berg Water Project is the mega-project that supplies water to the Cape metropole. The Trans-Caledon Tunnel Authority was the coordinator of the project. The dam holds 130 million cubic metres of water, and the scheme has increased Cape Town’s supply of water by 18%. Aurecon and SSI were consultants on an effluent-treatment scheme for the George Municipality that won the 2010 Institute of Municipal Engineering of Southern Africa (IMESA) award

Online resources Breede-Overberg Catchment Management Agency: www.bocma.co.za City of Cape Town: www.capetown.gov.za National Department of Water Affairs: www.dwa.gov.za South African Water Research Commission: www.wrc.org.za Trans-Caledon Tunnel Authority: www.tcta.co.za Water Institute of Southern Africa: www.wisa.org.za Western Cape Department of Agriculture: www.elsenburg.com

139

Sector Highlights A George treatment scheme won a national award.

major companies

• Trans-Caledon Tunnel Authority

• Water Resources Group • Aurecon for the best community upliftment project. Desalination and recycling plants were constructed on the Garden Route in response to severe drought. More than one of these plants had to close down because of environmental issues, but it seems certain that this technology will play a big role in waterstressed areas. A desalination plant is planned for Lambert’s Bay on the West Coast The Breede-Overberg Catchment Management Agency (BOCMA) became the second such agency to be established in South Africa in 2005. The head office in Worcester oversees watermanagement issues such as licence applications, and gives comment on zoning and development issues.

western cape business 2013


PROFILE

Breede-Overberg Catchment Management Agency The Breede-Overberg Catchment Management Agency was established in 2005 in terms of the National Water Act as the lead agent for water-resource management within the Breede Water Management Area.

The population of the Breede Water Management Area is estimated at half-amillion people, with two-thirds living in towns and villages. The BOCMA head office is situated in Worcester. It is a growing organisation and currently consists of 26 dedicated staff members, headed by Phakamani Buthelezi, the chief executive officer.

• Protection and conservation of wetlands, estuaries, rivers and critical biodiversity areas

• Building of adaptive institutions within all sectors and at all levels

• Implementation of water-use conservation strategies

The BOCMA is responsible for those functions that relate to water-resource planning, waterThe BOCMA plays a central role in protecting, use management and monitoring, as delegated using, developing, conserving, managing and by the Department of Water Affairs (DWA). controlling water resources, while also coor- The BOCMA is also responsible for stakeholder dinating with government and sector partners, engagement and maintaining and improving and other stakeholders. The BOCMA works inter-governmental relations. The BOCMA closely with local governments on water supports water allocation reform through management and water-related services. assisting resource poor farmers with water-use This ensures synergy between the priorities allocation applications and in their applying for of the BOCMA and the seven local and two financial assistance from the DWA for sustaindistrict municipalities. able agricultural projects. The BOCMA’s aim is to manage its water resources in an efficient manner by focusing on the strategic priorities of the agency, which incorporate: • Water-resource planning • Water-use management • Institutional development • Water-resource protection • Water-allocation reform The BOCMA’s integrated water programme, contained in its draft Catchment Management Strategy, includes the: • Implementation of the ecological and the basic-human-needs reserves

western cape business 2013

Contact details Key contact person: Phakamani Buthelezi, Chief Executive Officer Tel: +27 23 347 8131 Fax: +27 23 347 8133 Email: info@bocma.co.za Postal address: Private Bag X3055, Worcester 6850 Website: http://bocma.co.za/

140


The Breede-Overberg CMA exists to manage our water resources responsibly, through continuous engagement with all stakeholders and to devolve decision making to the lowest level for the benefit of all water users in the Breede-Overberg Catchment, including the environment.

We will:

• ensure quality water for all people and the environment • address water allocation reform • ensure good administration of registration and licensing • inspire change in attitudes towards the environment • promote economic growth in a sustainable way

So that:

• we can address the developmental needs of the people and contribute to the eradication of poverty • ensure fair, equitable and well controlled water allocation, while maintaining the integrity of the natural resource • manage the ecosystem in a sustainable manner, and • allow all stakeholders a voice in how we manage our water resources

Mr Phakamani Buthelezi, CEO

Tel: 023 347 8131 • Fax: 023 347 8133 Website: www.bocma.co.za • Address: Private Bag X3055, Worcester, 6850


OVERVIEW

Energy The Western Cape is promoting itself as a manufacturing hub for renewable technologies.

W

estern Cape MEC for Economic Development Alan Winde says that as many as 20 000 people could be employed in the renewable energy sector in the province by 2025. The province has a Green Cape Project that will promote investment in the sector, and look for partnerships with the region’s universities for technological innovations that can take the sector forward. The three factories that Alan Winde visited in August 2012 highlighted different niches of the energy market: AEG Power Solutions (solar-equipment manufacturing, solar inverters), Tellumat (energy-efficient lighting) and Tekniheat (heat pumps). The province’s expertise in the boat-building sector gives the Western Cape economy a headstart in bidding for wind-turbinemanufacturing contracts. The first of the huge wind-turbine rotor blades being manufactured by Isivunguvungu Wind Energy Converter (I-WEC) and Sector Highlights DCD are to be erected at Saldanha Steel early in 2013. The The green economy could manufacturing plant of I-WEC will be moved to Saldanha early employ 20 000 people by in 2014. The company expects to employ a staff of 400 when 2025. it is at full capacity. The Southern African Solar Energy Conference held in Stel- • Cooking oil from Spur restaurants is being lenbosch in 2012 heard that solar power can now be stored at converted to biodiesel. night. Stellenbosch University is a world leader in dry-air cooling, • Solar power can now be a factor that would make the concentrated solar power (CSP) stored at night. method especially effective in South African conditions. Aggreko has opened its fourth depot in South Africa in Cape Town. Aggreko rents out power, and first made itself known in the major companies country during the Soccer World Cup. • AEG Power Solutions The Western Cape is well served by all the conventional sources of energy, and is home to South Africa’s only nuclear plant. • Eskom • Afrox The Western Cape Provincial Government wants to generate • Solairedirect 15% of the province’s energy needs through renewable sources • ABB South Africa by 2014. This commitment is creating a market for companies in • juwi the renewable energy resources sector. The Western Cape has one of only two biodiesel depots in the country; the other one is in KwaZulu-Natal. successful in turning gas from cows into power in Gauteng, and is now turning its attenEvery bit helps tion to the 7 000-cow Vyvlei A number of organisations are finding ways to provide energy Dairy Farm, which is owned by off the grid. For instance, a dairy cattle farm in the Malmes- Morester and supplies Clover bury district will produce 3MW from biogas. Bio2Watt has been with milk. A special purpose western cape business 2013

142


The IDC is the biggest supporter of tenders awarded in the

Over the next five years, the IDC will make available R25 billion

Department of Energy’s Renewable Energy Independent

to fund projects related to green industries.

Power Producers (REIPP) programme. The IDC is identifying and providing funding for many projects In the first round of REIPP tenders, the IDC participated in

that will contribute to building South Africa’s industrial capacity

twelve successful bids, and seven more in the second round.

and creating jobs. Visit www.idc.co.za to find out more.

The green energy bids include wind power, concentrated solar power, photovoltaic and small hydro projects.

Chillibush8262IDC

The power behind renewable energy

Telephone: 086 069 3888 Email: callcentre@idc.co.za To apply online for funding of R1 million or more go to www.idc.co.za


OVERVIEW vehicle, the Cape Dairy Project, to increase the facility’s overall output by 65 megawatts. has been created to deliver Eskom is investigating the building of a new power station. to the plant. Also, the popular A number of international companies are said to be interested restaurant chain Spur is con- in bidding to build new nuclear power stations in South Africa. verting used cooking oil to Lesedi Nuclear Services has done projects at Koeberg and built biodiesel. Spur is in a partner- several gas-turbine power plants. ship with Envirodiesel, a company based in Paarden Eiland. Wind Indian giant Suzlon has opened a sales office in Cape Town. Mainstream SA, a joint venture between Genesis Eco-Energy The City of Cape Town is and Irish firm Mainstream Renewable Power, has four windspending R128-million with farm projects in the Western Cape that are being evaluated for ABB South Africa on improving environmental impact. the capacity and efficiency of Eskom is developing a 100MW wind farm near Koekenaap on the West Coast. St Helena Bay is the site of a joint provincial several of its substations. This forms part of the city’s government venture with Oxfam UK, Genesis Eco-Energy and larger, R900-million plan to the Seeland local community. G7 Renewable Energies wants to upgrade the city’s 70 large develop four sites. substations and infrastructure Exxaro Resources has a wind-generation project at Brandand cable network. se-Baai. The company is also looking into the possibility of coThe Cape Peninsula Univer- generation of energy from the gases that are produced at its sity of Technology’s Energy Namakwa Sands mining operation. Institute is a leader in research in the field, and is responsible Solar for a regional publication relating to domestic use, DUE. With national attention now being paid to a very ambitious The Centre for Renewable and solar-energy park in the Northern Cape Province, it is unlikely Sustainable Energy Studies is that very large solar projects will be undertaken in the Western at the University of Stellen- Cape, but the potential is still great for smaller projects. Construction group Basil Read has entered the renewable bosch, while the University of Cape Town has the Energy energy field, and a bid has been made to build a 60MW-solarphotovoltaic plant with BW Energy Corporation at Beaufort West. Research Centre. The University of the Western A partnership between Sasol, the University of Johannesburg, Cape is doing research on the the National Empowerment Fund and the Central Energy Fund possibilities of hydrogen as an will spend about R800-million on creating a manufacturing energy source. plant for thin-film photovoltaic modules in Paarl.

Electricity

Nuclear Koeberg Power Station, situated north of Cape Town, is currently the only nuclear power station in South Africa. A pebble-bed-reactor feasibility study has been shut down. Two of the Koeberg nuclear power station’s low-pressure turbines are being upgraded western cape business 2013

Online resources African Wind Energy Association: www.afriwea.org Eskom: www.eskom.co.za Green Cape: www.green-cape.co.za National Department of Energy: www.energy.gov.za National Nuclear Regulator: www.nnr.co.za South African Wind Energy Association: www.sawea.org.za Sustainable Energy Africa: www.sustainable.org.za

144


PROFILE

Lesedi Nuclear Services Lesedi Nuclear Services is a leading engineering, procurement and construction (EPC) company executing turnkey engineering projects within the South African power industry.

Description of business Since Lesedi opened its doors in 1999, it has successfully completed numerous projects in power generation, primarily at Eskom’s Koeberg Nuclear Power Plant as well as through Francis Carruthers, the construction of CEO of Lesedi 14 open-cycle gasturbine power plants in the Western Cape. More recently, the company has been providing EPC services to Eskom for the Medupi and Kusile coal power stations, currently under construction in the Limpopo and Mpumalanga provinces.

fuel, maintenance and modernisation services. Lesedi has considerably enhanced its ability to offer the best value and accessibility to the latest innovative engineering solutions.

Target market • The South African power industry Products and services • Project management • Construction management • Design engineering • Engineering, procurement and construction (EPC) services

• Specialised outage-maintenance activities • Power plant construction

• • Lesedi has the ability to execute turnkey pro- • jects with a multidisciplinary team of safety, •

health, environmental and quality personnel, planners, project managers and engineers. These personnel are experienced in electrical, structural, mechanical, I&C and process engineering, supported by a state-of-the-art drawing office.

°° Nuclear, gas-turbines, coal power stations, wind turbines, solar, etc Provision of technical personnel Heating, ventilation and air-conditioning Quality control and documentation Operations procedures and plant-operator training

Contact details Key contact people: Shane Pereira, Business Development Manager Francis Carruthers, CEO

Today, Lesedi is a BEE enterprise employing more than 200 people, including 70 qualified engineers and technicians with exten- Tel: +27 21 525 1300 sive expertise in nuclear and conventional Fax: +27 21 525 1333 power projects. Support functions are critical Email: lesedi@lesedins.co.za to our organisation, and include: procurement, Physical address: Lesedi Nuclear Services, finance and administrative-support personnel. Edison Way, Century City, Cape Town 7441 Postal address: Lesedi Nuclear Services, Lesedi’s main shareholder AREVA is the Edison Way, Century City, Cape Town 7441 world leader in the design and construction Website: www.lesedins.co.za of nuclear power plants and the supply of western cape business 2013

146


OVERVIEW

Media Many national publishers are based in the Western Cape.

T

he Western Cape has a lively and competitive media and Sector Highlights publishing sector. The sale of South Africa’s oldest pubSouth Africa’s oldest publishing house, Juta & Company, to Kagiso Media was the big lishing house changed event of 2012. Kagiso paid R300-million as part of its strategy hands in 2012. to diversify its revenue stream. Juta is a specialist in legal infor• Private television station mation and has a long history of textbook production. Kagiso e.tv is based in Cape has a strong national broadcasting footprint and a presence in Town. new media through Gloo Digital Designs and Acceleration Media. Cape Town-based television station e.tv returned such good major companies profits in the year to March 2012 that Financial Mail speculated that the media subsidiary of Hosken Consolidated Investments, • Naspers Sabido, might list separately on the JSE. Remgro is another • Juta & Co investor in Sabido, which returned a gross profit of R766-million • Pearson on revenue of R1.9-billion. • CTP Printers Independent Newspapers publishes mainstream titles such • Paarl Media Group as The Cape Times, The Cape Argus, The Saturday Argus and The Sunday Argus, as well as 14 community newspapers and the Media giant Naspers contabloid Daily Voice, which claims a circulation of over 12 000. trols several publishing houses Die Burger is the Western Cape’s largest mainstream daily through Via Afrika. Those with Afrikaans newspaper, and is distributed widely throughout the headquarters in Cape Town are province. Naspers, through Media24, owns Die Burger, as they Nasou Via Afrika (school books), do many community titles. Several of Media24’s magazine titles, NB Publishers and Book Promosuch as Men’s Health, are produced in Cape Town. tions (trade, education). Magazine publishers such The Newspaper Advertising Bureau (Caxton), dominates the community newspaper market in the Southern Cape. Titles as Ramsay Media, Picasso include the George Herald, Oudtshoorn Kourant, Mosselbay Adver- Headline and Highbury Safika tiser, Knysna & Plett Herald, The Advertiser and Karoo News. Media are all based in the city. The Western Cape has a Leading educational publishers Maskew Miller Longman and Pearson are located in Pinelands, Cape Town. Random House high reputation for quality Struik, in the Cape Town CBD, has a strong profile in nature, lifestyle printing. CTP Printers are and maps. among the leaders, distributing some 47 million books, over 32 million magazines, Online resources and about 70 million comCape Town Book Fair: www.capetownbookfair.co.za mercial print items every Independent Communications Authority of South Africa: year. Paarl Media Group www.icasa.org.za has printing facilities in Media Institute of South Africa: www.misa.org Paarl and a gravure plant in Montague Gardens. National Association of Broadcasters: www.nab.org.za Publishers Association of South Africa: www.publishsa.co.za South African Press Association: www.sapa.co.za

147

western cape business 2013


OVERVIEW

Film Films and commercials earn the province about R5-billion annually.

western cape business 2013

148

PHOTO: SAABY/FLICKR

T

he Cape film industry covers every type of film: commercials, feature films, television, equipment and support services, post-production and training. Several companies specialise in doing work for foreign projects, and others have partnerships with foreign production houses. Waterfront Television partners global giant Fremantle Media in producing Idols, for example. The City of Cape Town estimates that films and commercials are worth about R5-billion annually. Cape Town hosts several film festivals (the Encounters Documentary Festival is one), but several other towns host film festivals: Knysna’s Oyster Festival was the scene of a French film festival in 2010. In 2011, the Labia movie theatre hosted a showing of the finalists of the 03:59 WebFest. In 2013, Cape Town will host the Tribeca Film Festival for the Sector Highlights first time. The Cape Town Film Commission and espAfrika have Robert de Niro’s Tribeca a five-year contract to host Robert de Niro’s prestigious event. Film Festival is coming to Cape Town Film Studios (CTFS) near Stellenbosch is a publicCape Town. private joint venture with every level of government invested • Dredd was shot at Cape together with Videovision Entertainment and Sabido InvestTown Film Studios. ments, the owners of e.tv, and subsidiary of JSE-listed HCI. CTFS started operating in September 2010. Shooting of the 3D action-film Dredd ended in 2011, with 450 people working major companies on the project at the busiest time. • Moonlighting Films The Western Cape Provincial Government has invested R20-million into the film industry, but the returns are worthwhile, • Velocity • Film Africa as the industry employs more than 30 000 of the province’s • DO Productions skilled and unskilled workers. • The Big Picture Forrest Whittaker and Orlando Bloom were among the interCompany national stars shooting films in the Western Cape in 2012. Their film, Zulu, is based on a crime novel of the same name and will DO Productions has worked debut in 2013. The producers of Chronicle used Cape Town as a stand-in for Seattle, while Safe House starred Denzel Wash- on Diamond Cut Diamond, ington and Ryan Reynolds. directed by Darrell Roodt, and the adaptation of the novel that won JM Coetzee the Online resources Booker prize, Disgrace. Cape Film Commission: www.capefilmcommission.co.za False Bay College in Khayelitsha offers classes in an Cape Town Film Studios: www.capetownfilmstudios.co.za increasingly popular medium, Locations Cape Town: www.locationscapetown.com animation. The classes are the National Department of Trade and Industry Incentives: culmination of the joint efforts www.thedti.gov.za of the Cape Film Commission National Film and Video Foundation: www.nfvf.co.za and the Services SETA.


OVERVIEW

Advertising Creative Week Cape Town hosted two big advertising awards.

C

ape Town’s rising reputation as a centre for creativity and design was boosted in 2012 by the decision of the Loeries and the Pendorings, South Africa’s two biggest advertising awards, to hold their annual prizegivings during Creative Week Cape Town in September. The Loeries’ main events were held at the Cape Town International Convention Centre (CTICC), as were the awards for Afrikaans advertising, the Pendorings. Additional events such as Judging Week and an International Seminar of Creativity were hosted in the City Hall. The value to Cape Town of the Loeries, which were held in the city for the first time in 2011, is about R100-million. Two Cape agencies did particularly well at the Loeries: Ogilvy Cape Town (one grand prix and seven gold awards) and Net#work BBDO (a grand prix for its internationally acclaimed Mercedes-Benz radio advertisements). At the Pendorings, Net#work BBDO achieved a gold and silver, while The Jupiter Drawing Room and ninety9cents each won two silver trophies. Even though the Prism PR Awards were held in Johannesburg in 2012, Cape Town agencies scored very well, with Splash PR’s campaign to get people to vote for Table Mountain as a Wonder of the World winning the top honour. Ogilvy Public Relations Cape Town was a multiple winner. Cape Town is in the process of rolling out a comprehensive integrated rapid transit (IRT) network and has signed up Provantage to sell advertising on the buses and bus stations. The agency, which has a strong transport division, is headquartered in Johannesburg and has also won a similar contract in that city. After flat-lining in 2009, advertising spending in South Africa received a welcome boost with the arrival of the 2010 Soccer World Cup. Total real spending in South Africa has hovered

PHOTO: GALLO IMAGES

Online resources AAA School of Advertising: www.aaaschool.co.za AdFocus: www.adfocus.co.za Association for Communication and Advertising (Acasa): www.acasa.co.za Creative Week Cape Town: www.creativeweekct.co.za South African Advertising Research Foundation: www.saarf.co.za

149

Sector Highlights Cape Town’s transit system has signed Provantage to supply advertising.

major companies

• The Jupiter Drawing • • • •

Room Cape Town Ogilvy Cape Town Net#work BBDO HelloComputer Black River FC

around the R24-billion mark since 2007, but Nielsen Media South Africa reported steady month-by-month increases. The biggest spenders were Shoprite Holdings, Unilever and SAB Miller. For 2010 as a whole, ad spend went up 18% to R28.7-billion. The MediaShop reports that the country’s total expenditure on advertising in 2011 went above R32-billion. western cape business 2013


OVERVIEW

Design Cape Town is the World Design Capital for 2014.

Sector Highlights The Fringe is a creative hub next to the CBD. • The second Proudly Capetonian Furniture Exhibition has been held.

• Incubate creative businesses and young designers

• Enable businesses to grow with strategic support

Framed by the Cape Town Library and the Cape Peninsula of Technology (CPUT), The Fringe has long been the home of the Cape Craft and Design Institute (CCDI). This creative incubator is teaming up with the Cape Town Fashion Council to offer training in a Creative Enterprises Training Unit. Another not-for-profit design organisation to move to the precinct in recent times is the Western Cape Furniture Initiative (WCFI). The WCFI has 300 manufacturing companies on its database and intends Olduvai, a sculpture by Professor Gavin Younge at the Cape promoting good design in Town International Convention Centre. the sector. The second annual Proudly Capetonian Furniture part of Cape Town that used to be derelict has come to Exhibition held at Wembley life, by design. The area to the east of the CBD has a Square in 2012 was an initianew name too, The Fringe, and it houses a number of tive of the WCFI. creative enterprises. CPUT has a Faculty of InforA legacy of Cape Town’s bid for the title of World Design matics and Design, the Cape Capital 2014, The Fringe is managed by the Cape Town Partner- Town College (over the road ship through its Creative Cape Town programme and intends to from the library) has many credo three main things: ative students and the Fugard

A

western cape business 2013

150

photo: professor gavin younge

• Showcase design talent


OVERVIEW Theatre is literally just across the road. The Spaza Urban Innovation Living Laboratory is an exciting project that aims to explore new ways of living and working in the city. A small alley next to the CCDI building has morphed from Harrington Hollow to East City Alley, and the organisers are waiting for furniture, events and ideas of any sort to make the place come alive. They want the city reimagined. Having been named late in 2011 as the winner of the designation, World Design Capital, the City of Cape Town has signed agreements with the International Council of Societies of Industrial Design (ICSID). The competition recognises cities that use design as a catalyst for ‘development and reinvention’, and for improving their social, cultural and economic environments. Cape Town’s mayor has pledged to use the award to implement design as a tool for transforming the city, and for promoting development of areas of the city that had been cut off from development before. Previous winners of the title of World Design Capital have experienced increased visitor numbers to those cities. Torino had more visitors in its title year than it did in the year that it hosted the Winter Olympics. Cape Town’s bid was an energetic effort led by the Cape Town Partnership, as part of the City of Cape Town’s ‘Creative Cape Town’ programme. It was supported

by local and provincial government and many of the individuals and companies that make up the creative industry. This included the Central Improvement District and the Cape Town Design Network. The bid was driven by the concept of ‘Live Design, Transform Life’ and had three main aims: • Rebuild Cape Town through community cohesion • Reconnect Cape Town through infrastructural enhancement • Reposition Cape Town for the knowledge economy The city is pursuing an integrated rapid transport (IRT) system as part of its overall attempt to put design to work for the benefit of all of the city’s citizens. Similarly, the Violence Prevention through Urban Upgrade Project in Khayelitsha has the potential to improve lives through the application of good design principles. Cape Town’s creative industries include the film industry, the performing arts, visual arts, advertising and media sectors, cultural tourism and arts and crafts. Each of these sectors has been experiencing growth since the end of apartheid, as the world discovers Cape Town and as Cape Town explores international markets. Two of the world’s leading design fairs, Design Miami and Design Days Dubai, are now showing South African work, something unheard of three years ago, according to the Financial Mail. Recent events have put Cape Town in the design spotlight, a spotlight that will obviously increase in the city’s title year, 2014. The Architecture ZA Biennial Festival was held in Cape Town in September 2012. The Cape Homemakers Expo is an annual event that attracted more than 38 000 visitors in 2012. The CCDI put forward 10 craft producers, with the help of a sponsorship from the Small Enterprise Development Agency (Seda). Sales to the value of nearly R100 000 were achieved in the four-day event.

Online resources Accelerate Cape Town: www.acceleratecapetown.co.za Cape Craft and Design Institute: www.capecraftandesign.org.za Cape Town 2014 World Design Capital: www.capetown2014.co.za Cape Town Design Network: www.ctdn.co.za Cape Town Partnership: www.capetownpartnership.co.za Creative Cape Town: www.creativecapetown.net Future Cape Town: www.futurecapetown.com The Fringe: http://thefringe.org.za

151

western cape business 2013


OVERVIEW

Banking and financial services Financial services is a key provincial sector.

western cape business 2013

152

Sector Highlights Banking and financial services make up 33% of Cape Town’s GDP. • A new Nedbank branch is powered by wind.

major companies

• Absa • Standard Bank • Nedbank • First National Bank • Capitec Bank • BoE Private Clients • Deloitte Stellenbosch-based Capitec Bank is growing rapidly. The bank opened its 500th branch in the country in January 2012.

photo: morgue file

T

he financial services sector plays a major role in the economy of the Western Cape. This is particularly true of Cape Town, where the sector accounts for 33% of GDP (Wesgro). Finance, real estate and business services account for 21% of the Western Cape’s GDP (StatsSA). Only in Gauteng does this sector play a larger role in the provincial economy. All of the major banks are well represented in the province, and several insurance companies have their headquarters in Cape Town. The insurance sector is dealt with separately in this publication. Despite a global recession, South African banks’ capital adequacy ratios are well above the international norm, at about 14.5%. Employment in South Africa’s financial sector grew for four consecutive months in late 2011, reflecting the activity in the retail banking sector in pursuing new markets. Four banks dominate the retail sector: Absa Group (a member of Barclays Bank), Nedbank, FNB (a division of FirstRand) and Standard Bank. Within the retail sector, Absa has the most customers, with nearly 12 million. Standard Bank is close behind with nearly 10 million, a figure that is growing fast. FNB has about seven million customers and Nedbank about 5.3 million.


OVERVIEW This is still some way short of giants such as Absa, which has about 800 branches, but the bank plans to open a further 55 new branches in the 2012/13 period. In the context of the closure of several of the bigger banks’ rural branches, it is significant that Capitec Bank has a presence in small towns. Capitec Bank’s retail customers rose from 3.2 million in August 2011 to 3.7 million in August 2012. A total of 877 000 customers joined the bank in the preceding financial year to February 2012. Capitec Bank also became the first bank to offer Sunday banking, with 84 of its branches in big shopping malls offering that service. Another smaller competitor that is growing is African Bank Investment Limited (Abil). Abil reported that its lending to households earning less than R15 000 per month increased by 89% in the fourth quarter of 2011. Half-year revenue increased by nearly R2-billion over the previous year to R9.3-billion. Capitec Bank told Bloomberg in December 2011 that it was employing about 200 employees every month to service demand. All banks are moving forward technologically, as Internet banking, cellphone banking and various other self-service products are being offered and taken up by more and more South Africans. Absa’s Entry Level and Inclusive Banking (Elib) branches are proving popular.

These 63 branches represent 8% of Absa’s branch network, but they generate 35% of loans. Of Absa’s 11.8 million retail customers, 2.6 million use cellphone banking and 1.3 million use Internet banking. Absa has also launched the first of its ‘Branches of Tomorrow’, which incorporates interactive touch screens for transactions. In 2012, Standard Bank and social network Mxit launched a money service that enables money transfers and payments via cellphone. Standard Bank’s innovation division, Beyond Payments, is confident that the application will be popular in other parts of Africa, where Standard Bank has a huge presence. It was Beyond Payments that introduced the first trial of Near Field Communication (NFC) payments. Festival-goers at the 2011 Oppikoppi Festival could load cards with money using cash, debit or credit cards. The festival card could then be used at any sales point at the festival. Standard’s mimoney e-currency is valid at more than 800 outlets of Shoprite, Spar, Pep stores and spaza shops. Nedbank’s mobile-banking application, Nedbank App Suite, was launched for Android smartphones in 2012. With sharetrading among its options, the app is clearly aimed at the top end of the market. Techcentral reports that the bank will roll out apps for Apple, BlackBerry and Windows in late 2012 and early 2013. When Nedbank opened its first wind-powered branch, it showed that its commitment to renewable energy goes beyond Nedbank Capital earning the right to fund 37% of the first phase of South Africa’s renewable-energy programme. The new Du Noon branch of Nedbank is powered by wind turbines. Nedbank opened six new branches in the Western Cape in 2011. Nedbank Corporate Banking is the Western Cape Provincial Government’s principal banker, and has a partnership with the provincial government that provides 12 tertiary bursaries for students in economics, mathematics or accounting.

Online resources Actuarial Society of South Africa: www.actuarialsociety.org.za Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Sector Charter Council: www.fscharter.co.za Financial Services Board: www.fsb.co.za SA Financial Sector Forum: www.finforum.co.za South African Reserve Bank: www.resbank.co.za

153

western cape business 2013


Nedbank Retail Banking: Making banking accessible to all government, organised business and communities remain a key focus in growing its client base of over five million, of which the entry-level market and the youth constitute three million. While our primary objective in making banking more accessible is to continue growing our client base, retention is key to sustaining revenue growth. Nedbank continues to grow its footprint across South Africa, including the Western Cape as its fastestgrowing province.

Pedro Rhode Nedbank Regional General Manager, Branch Networks

Following its strategic plans to chart a new path to

‘Over the past year we have increased the number of frontline staff and opened eight new points of presence; nine branches are now open for extended banking hours; 10 branches are open for Sunday trade; and 71 new ATMs have been installed throughout the Western Cape,’ says Pedro Rhode, Nedbank’s Regional General Manager of the Western Cape.

sustainable, profitable growth for its retail business as announced in 2011, Nedbank continues to build on its excellent progress in implementing its distinctive client-centred strategy.

In keeping with its slogan, namely Make Things Happen, Nedbank continues to invest in the development of its 28 000 staffmembers across South Africa, who champion its client-centred strategy.

Through our client-centred strategy we seek to deliver a choice of distinctive banking experiences and relevant products and services that meet the individual and business needs of new and existing clients. At Nedbank we understand that innovation is vital to meet the needs of our clients in an everchanging environment, where clients are spoiled for choice. Innovation is an integral component of a holistic approach that encompasses our systems and procedures, from client experience to launching the latest innovations.

The client-centred approach and growth in our footprint are also reflected in our Net Promoter Score and the external Nedbank Client Measurement Score, which indicate a significant positive shift.

As a bank for all, Nedbank realises that, if it wants to make banking more accessible to all in South Africa, it has to start working with the communities in which it operates. As such, the bank’s strong relations with

Contributing to Nedbank’s growth, is its new strategic focus: to lead in digital banking and innovation, thereby providing secure, easy-to-do banking, anywhere, anytime. This is evidenced by the launch of Approve-it™, an enhanced internet banking security feature and the first of its kind in South Africa; the Nedbank App Suite™ as the bank’s response to mobile-market shifts and client demand; and MyFinancialLife™, an online personal financial management tool that is highly


secure, easy to use and rich in functionality, thereby empowering clients to achieve their aspirations and financial goals. Nedbank offers innovative client value propositions, namely the Nedbank Savvy and Nedbank Ke Yona Accounts, which has enhanced its positioning in the middle and entry-level banking segment. Nedbank had identified the youth as part of its major focus and consequently launched its youth offering, Nedbank 4me (with the slogan ‘My Future, My Bank’). This includes four key pillars: ‘4spending, 4saving, 4growing, 4good’, with a strong emphasis on caring about youngsters’ financial fitness. ‘The youth are South Africa’s future and currently represent approximately 68% of the total population. We continue to engage with and nurture them to assist in fostering an entrepreneurial and leadership culture,’ says Rhode. As a green and caring bank that is committed to making a positive contribution to the environment, Nedbank has partnered with provincial government to support the ‘110% green initiative’. This initiative is designed to mobilise communities in the Western Cape to be committed to acting in practical ways and, in so doing, to have a positive impact on the environment and economic growth.

Nedbank Retail Client Service and Product offering helps you manage your money and transact with ease. Credit cards there is no need to carry cash, as we have the perfect card to suit your needs. Save and invest a comprehensive range of products will make your money work for you 24 hours a day. Homeloans we’ll help you buy the house you’ve always wanted. Vehicle finance this provides industry-leading solutions in the vehicle financing industry. Insurance this provides personal and property cover for your needs. Foreign exchange an essential service that helps you travel and transact with ease. Self-service banking innovative solutions are provided to help you bank anywhere, anytime. Everyday banking

For more information about our Nedbank Retail Banking offering please call Pedro Rhode on 021 412 3441 or send an email to pedror@nedbank.co.za.

‘The Nedbank Affinities and Local Heroes Programmes continue to give back to our communities through supporting various causes and charities of a client’s choice. This is just another way Nedbank continues to give back to communities, thereby assisting them in making things happen,’ concludes Rhode.

Nedbank Limited Reg No 1951/000009/06, VAT Reg No 4320116074, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa. We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP16).

SPONGE 4790


Nedbank’s partnership with the South African Local Government Association gains momentum. Making banking more accessible. provides a platform for individuals and communities to submit their corporate social responsibility proposals for consideration by the Nedbank Foundation.

Kempton Kruser Key Account Executive Nedbank@Work Cape Coastal Region

Suraya Ak Senior Manager Strategic Relationships Strategic Sales and Alliances, Retail

Following the memorandum of understanding (MOU) signed in May 2011 between Nedbank and the South African Local Government Association (SALGA) for Limpopo and Mpumalanga, the Western Cape has been earmarked as the next focus area. The MOU seeks to create a platform through which local municipalities can access financial solutions and planning for employees and the community at large. Nedbank continues to support the government’s efforts to promote sustainable socioeconomic development through financial wellness in the public sector on local, provincial and government level. ‘We are delighted to partner with SALGA in our commitment to make banking more accessible to all in South Africa. Nedbank provides several communities, including individual and business clients, with access to products and services through Nedbank@Work – a unique service to employees of companies who bank with Nedbank,’ says Suraya Ak, Head of Nedbank Retail’s Strategic Relationships. Nedbank@Work offers convenient, client-centric banking by leveraging company and community relationships through a dedicated key account relationship manager. Through customised educational workshops Nedbank@Work ensures that employees have access to non-financial support and financial fitness training at all levels.

‘Nedbank@Work under the leadership of Kempton Kruser, the Key Account Executive in the Western Cape, takes banking to the workplace in keeping with our ethos to Make Things Happen for communities, business and government. In essence, we come to you – from the employer to every employee. At Nedbank we understand that in today’s world most people are pressed for time and do not want to waste it queuing in a branch,’ continues Ak. Nedbank understands that solutions aimed at the heart of South Africa’s socioeconomic development can be found in collaboration with all key stakeholders in support of government’s efforts. ‘While we are acutely aware that there are no quick fixes, we believe that corporate social responsibility is a responsibility that should be shared by all stakeholders, who should work with government and local municipalities across South Africa,’ concludes Ak. Our wide range of products and services include the Nedbank Ke Yona pay-as-you-use transactional account, which comprises funeral cover, a personal loan facility, the JustSave Account and the Vodacom m-pesa money transfer solution, enabling clients to transact, borrow, save and take out cover. To encourage the youth to save and build their financial fitness from an early age the newly launched Nedbank4me offering, based on four key pillars of 4spending, 4saving, 4growing and 4good, enables the youth to transact and save with the benefit of earning preferential interest. Nedbank4me comprises a full transactional banking account with no monthly fees, free initial transactions and thereafter reduced pay-as-you-use pricing, free eNotes and self-service banking. Nedbank’s comprehensive range of products and services will give the community at large access to financial services.

The workshops encompass a range of Nedbank financial solutions that can be accessed through a helpdesk, which also Nedbank Limited Reg No 1951/000009/06, VAT Reg No 4320116074, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa. We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP16). SPONGE 4777


Zooming into Nedbank’s small business interventions Nedbank prides itself in making things happen for small business owners and budding entrepreneurs. “Recognising that small businesses are the mainstay of our economy and present arguably the best remedy for the country’s unemployment challenges, the bank has, over the years, instituted Sharon Smith various interventions aimed Nedbank Regional Manager Small Business Services at giving support to the small Capetown, Western Cape business sector. Over and above our Small Business Service solutions, we take care of small business owners beyond banking, giving them time to truly focus on running their businesses successfully,” says Sharon Smith, Regional Manager Small Business Services

small business owners facing unique challenges with valuable insights from other entrepreneurs, our seminars and our unique business reality show “It’s My Biz”. Moreover, the online portal is there for small businesses to improve their business administration skills, keep up with the latest trends and thinking to help their businesses get ahead, network with other small businesses and share ideas or advice, as well as upload their business details and logo at no cost to the business. It’s my Biz – aired on etv, ‘It’s My Biz’ is an entertaining mix of

reality TV, business analysis, and suggestions and tips for entrepreneurs. Every week the show’s well known and charismatic presenter Andile Masuku introduces an entrepreneur and business to a panel of small-business experts, who scrutinise the businesses and suggest techniques and approaches in operations, marketing and financial management that the business owner can use to take their business to the next level.

The result is a balanced mix of on-site visits to gain an understanding of the business by the consultants, studio Through its various properties, Nedbank continues to build the discussion, and implementation of improvements providing an SMME’s through; Small Business Friday – through this initiative, entertaining and information-filled show that addresses many Nedbank, in association with the National Small Business of the issues that small business owners face on a day to day Chamber (NSBC) seeks to encourage all in South Africa to rally basis. The reality TV show is yet another way Nedbank is behind and show their support to small businesses. assisting small business owners to take their businesses to the Notwithstanding its name, the initiative calls on all in South next level. Africa to make a conscious decision to vote small business The 2012 edition of the series ran from 12 July to 04 October through their hearts, feet and wallets; not only on Fridays but and there is already great interest from small businesses for in their everyday lives. Supporting small businesses can 2013 season. translate to more sustainable economic growth, social upliftment and job creation. Our economy’s future and solution Nedbank remains focused on the enhancement of growth to our high unemployment rate lie in helping more small opportunities for small businesses and enterprises through businesses grow and prosper. improved presence and distribution of much-needed expertise Small Business Seminars – the bi-annual Nedbank Small

Business Seminars in their eight year, are given at no cost to the attendants, provide practical sound advice and solutions for small business owners across South Africa. The inspired up-and- coming and emerging entrepreneurs that attend the seminars benefit from invaluable insight shared by small business experts.The seminars are rolled out across the country and the topics include; Cash flow planning that works and Turning strengths and weaknesses into more sales and profits.

that will benefit the sector. We provide continue to over full range of services to this sector including short-term, mediumterm and long term funding as well as transactional banking. For more information about our Small Business Services offering please call Sharon Smith on 021 412 3145 or send an email to sharonsmi@nedbank.co.za.

SimplyBiz.co za - a free-to-join value networking portal

especially for small businesses, SimplyBiz™ seeks to assist Nedbank Limited Reg No 1951/000009/06, VAT Reg No 4320116074, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa. We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP16).

SPONGE 4785


Nedbank Business Banking: Making it easier to do business ‘When you do business with us, you are speaking to people who know the area, understand its nuances and are familiar with the various industries operating here,’ explains Kader.

Goolam Kader

An additional benefit of banking with Nedbank Business Banking is that your business and your personal financial needs can be managed in one place. ‘Because very often business owners and their businesses are financially dependent on each other, our client service teams now also offer individual banking solutions, better advice and a hassle-free service to you and your staff as we already know and understand your needs,’ explains Kader.

Nedbank Business Banking Divisional Executive, Western Cape

Great news for Cape business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has over 80 business managers located across the Western Cape, ready to assist you with professional advice, industry-specific solutions and a comprehensive range of financial products and services. ‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but can also provide you with relevant solutions and a banking experience that is hassle-free, allowing you to concentrate on what’s most important to you – the running of your business,’ says Goolam Kader, Nedbank Business Banking’s Divisional Executive for the Western Cape. At the core of the bank’s offering is a relationship-based model, with a business manager dedicated to your business as the key entry point into the bank. Each business manager is supported by a team – comprising a credit manager, credit analyst and services manager – who has a thorough understanding of the regional economy and business market, and a genuine interest in the success of each individual business.

With this in mind, Nedbank has recently introduced Nedbank@Work – a unique service to employees of companies who bank with Nedbank. The service facilitates convenient banking at the workplace through bankers or consultants on site, in the branch or via our call centre and internet channels. In addition, Nedbank@Work offers non-financial support to you and your employees free of charge, including financial fitness training to employees at all levels through customised education programmes. Kader adds that the approach offers value to the wider SME sector. ‘This is in line with our ‘Banking and Beyond™, approach which focuses on providing guidance and advice to all business owners. Initiatives such as Small Business Friday, free Small Business Seminars, Its MyBizTV programme and our simplybiz.co.za platform, all play an important role in adding tangible value to our clients’ businesses.’ For more information about our specialised service offering please call Goolam Kader on 021 928 2000 or send an email to goolamk@nedbank.co.za.

Nedbank Limited Reg No 1951/000009/06, VAT Reg No 4320116074, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa. We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP16).

SPONGE 4767


Banking – banking on rporate clients syndicated transactions, the issuance of corporate paper and other debt instruments. Leveraged buyouts (LBOs) and management buyouts (MBOs) are also funded, with Nedbank Corporate Banking acting as lead arranger, co-arranger or facility agent. Transactional banking offers full-spectrum domestic clearing bank services, including current accounts, cash management and electronic banking, through its scalable internet-based NetBank Business system and its highvolume host-to-host platform, Corporate Payments System, and a full range of crossborder and international transactions. The deposit-taking franchise is strong, with a range of investment offerings paying tenor-linked interest rates, linked to a range of instruments, and may have optionality built in for deposits of longer than three months, should that suit the investing corporate. Commitment to the community

‘As part of the Nedbank Group, we are committed to making a difference in the community in which we operate and, through the Nedbank Foundation, contribute to worthy causes with education a key focus. At Nedbank Corporate Banking, we are especially proud of our Western Cape Essay writing competition in partnership with the Western Cape Government, aimed to make the career dreams of deserving learners a reality through a sponsorship of tertiary education bursaries, amongst others,’ concludes Pearce. Contact details Alistair Pearce, Divisional Executive Physical address: Nedbank Clocktower, V&A Waterfront, Cape Town, 7000 Tel: 021 416 6825 Email: alistairp@nedbank.co.za

SPONGE 4763


Absa Bank Ltd. Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7.

Supporting Absa Business Bank development understands business in the inWestern KZN Cape The Absa Group (“Absa”) is listed on the JSE Limited and is one of South Africa’s largest financial services groups, offering a complete range of banking, bancassurance and wealth management products and services. Absa’s business is conducted primarily in South Africa and on the African continent, where it has equity holdings in banks in Mozambique and Tanzania. Absa is a member of Barclays Bank PLC, which holds a stake of 56,6% in the Group. Barclays is an international financial services group, engaged in retail and commercial banking, credit card issuing, investment banking, wealth management and investment management services. Absa Business Bank The South African economy and the sustained prosperity of its people depend on the creation of new wealth and the growth of sustainable businesses in the commercial sector. Absa Business Bank is well positioned to deliver superior products and services to this important sector of the market. The combined strengths of Absa and Barclays allow Absa Business Bank to offer depth of expertise and skills as well as best-of-breed products

and global solutions required to meet our clients’ specific business needs. In addition to providing industry-specific banking solutions, Absa Business Bank has a range of specialised financial products such as working capital solutions and sector-specific privateequity funding products designed around the needs of business clients, looking to expand their businesses. The Bank has an extensive regional network, servicing clients through a Relationship Executive, supported by a team of Industry Specialists, Operational Bankers and Client Service Consultants. Absa Business Bank believes in being more than just a financial partner. Being a true partner is about adding value, it is about industry support by providing a collaborative platform for networking and growth across all sectors and industries in the South African economy. Absa is not only ideally positioned as a financial partner in the corporate and business space, but actively supports industry events and initiatives.


A wealth of opportunities exists for the creation and development of businesses and Absa Business Bank has been involved in a range of regional initiatives. Absa has long-standing relationships with the public and private sector in the Western Cape. Given our skills and expertise, we are able customise financial solutions to meet specific requirements, be it local business banking or specialised financial requirements across the African continent or with the rest of the world. In addition to supporting existing and established businesses, Absa also partners the Cape Regional Chamber of Commerce and Industry in major projects like the Western Cape Exporter of the Year Awards as well as the networking opportunity where business leader engage with the Executive team of the City of Cape Town. In addition to efforts undertaken to promote entrepreneurship and assist businesses of all types, the Group also has an extensive social investment programme focusing primarily on job creation for marginalised communities, primary and secondary school education and initiatives around HIV/AIDS. Some of these include: Keep Cape Town Warm Campaign in association with Good Hope FM Absa and Good Hope FM have partnered for the fourth consecutive year, offering their support and resources to the Keep Cape Town Warm Campaign which seeks to encourage Capetonians to help those who are left destitute and to restore some dignity to the families who benefit from this initiative. The campaign kicked off at the beginning of June and ran until the end of August. Generous donations were received from Absa employees, clients and listeners of the radio station. This year the campaign exceeded the previous year with the receipt of 4000 blankets, 5000 clothing items and R8000 in cash donations. Make a Difference Week Campaign Absa Citizenship has adopted the Barclays Make a Difference Day Campaign as one of its key employee volunteering campaigns annually. Its aim is to encourage people to make a positive impact on their local community. This year’s campaign saw employees pledging their support

to an initiative of their choice at every level of the business. Employees in the Western Cape volunteered their time to Stop Hunger Now SA. The aim was to pack 37 000 meals along with other volunteers from all walks of life. The meals will be used to feed children in crèches that are not yet registered with the Department of Social Development. Absa also donated R12 000 towards this initiative. Absa Spaces for Sports In 2006, Barclays proposed to develop an area of land in Gansbaai under the auspices of the Barclays Spaces for Sport umbrella as part of an Absa/Barclays Corporate Social Investment initiative. The Gansbaai Sport Centre was established in collaboration with the Football Foundation South Africa, Overstrand Municipality, Western Cape dept of Cultural Affairs and Sport, Absa and Barclays. The centre was recently privileged to host international guests not only visit the site but take time out to play a game of soccer and rugby with the children and coaches at the centre and to see the fruits of our labour. This activity formed part of the Barclays Beyond Sport Summit which saw appearances from the likes of Tony Blair, Lord Paddy Ashdown, Olympic legend Michael Johnson, South African Paralympics champion Oscar Pistorius, soccer legend Lucas Radebe and actress and activist Vanessa Haywood who is also a member of Team Absa for the 2013 Absa cape Epic. Interaction with customers happens through business centres which are geographically located in the Regional Centre for Absa Business Bank. Absa Business Bank Western Cape Mid-Corporate and Commercial divisions Tijger Park 4 Willie van Schoor Avenue Bellville 7530 Tel 021 915 5300 Absa Enterprise Banking 8th Floor Absa Provincial Head Office 31 Lower Long Street Cape Town 80001 Tel 021 440 4911


interview

An aggressive growth plan for the province Johan van Wyk, Provincial Head of Standard Bank Western Cape, shares his vision for increasing market share, and highlights some of the recent deals that the bank has concluded in the province.

Johan van Wyk

Johan van Wyk has a B.Econ from the University of the Free State, and has been employed at Standard Bank for all of his working life. Johan has had an illustrious career, and has held positions such as Provincial Head of North-West and Provincial Head of KwaZulu-Natal (which he held for four years). Johan is currently the Provincial Head of the Western Cape for personal and business banking, a position that he has held for 18 months. western cape business 2013

Tell us a little about Standard Bank’s operations in the Western Cape. How many branches does it have, etc? In Standard Bank Western Cape we have six local markets, consisting of towns and branches. The ‘hub’ branch is the main branch that resides in each of these local markets. These hub branches are in Claremont, Promenade, Somerset West, Tyger Manor, George and Paarl. The branch network comprises 115 branches, of which 18 are branches, 81 are service centres and 16 are loan centres (three of these loan centres are still being built). We also have 1 072 electronic devices servicing the province, such as ATMs, AutoBanks and AutoPlus machines. We have five business centres servicing the business community. Two are in Cape Town itself, and we have one each in Tyger Manor, George and Boland. Cape Town, Tyger Manor, Somerset West and George have suites that service our private banking clients. Will Standard Bank be launching any new products or projects in the Western Cape in 2013? Standard Bank will continue to launch innovative new solutions to our customers in our endeavour to create financial accessibility, through simplified and convenient banking. We also aim to continue growing market share in all segments in the Western Cape. Further, we will continue to create cheaper and more convenient channels of banking for all customers. Tell us about some of the major finance deals that Standard Bank has concluded in the province recently. There are three major clients that Standard Bank has brought on board recently. The first is Mulderbosch Vineyards (Pty) Ltd, a wellknown brand in the wine industry. We will draw up bond documents and have a property guarantee issued. The ‘benefits’ that will be derived from Mulderbosch acting as an importer into the US will be reinvested into the sales effort in that country. We are also excited about our deal with PayProp, which is situated in Stellenbosch and provides automated rental collection on behalf

162


interview of estate agents. They are the only company to offer this automated service in the entire country. The third big new client is Henque 2890 CC (trading as Vaughn Brazier and Associates). This company deals with cash-in-transit concerns for service stations and bottle stores throughout Cape Town, and is now branching out into George, Johannesburg, Pretoria and Durban. In your view, what is the short- to mediumterm outlook for the economy of the Western Cape? The economy of the province is growing quicker than any other province. It contributes about 14% to the national GDP. Standard Bank Western Cape needs to make sure it contributes 14% of total profits to the bank as a whole. In order to do this, we need an aggressive growth market strategy to attract new clients to the business. We would like to focus on two sectors in particular, the public sector and the agricultural sector. Those are specific high-growth strategies for us, and are linked to the franchise opportunities that Standard Bank may still capitalise on. In the long term, we would like to dominate the market share in business markets, which is currently at 22%. We want to increase this to at least 35%. By 2015, we are looking to attain a 32-35% market share.

We have deployed in excess of 150 sales agents and community bankers who provide customers with cost-effective and convenient access to banking. These sales agents and community bankers operate within the communities, ensuring access to banking products outside traditional banking hours. Africa (beyond South Africa) has long been a key focus for Standard Bank. What is your strategy going forward? Our group strategy explains our viewpoint the best: • We aspire to build the leading African financial services organisation using all our competitive advantages to the full. • We will focus on delivering superior sustainable shareholder value by serving the needs of our customers through first-class, on-theground operations in chosen countries in Africa. We will also connect other selected emerging markets to Africa and to each other, applying our sector expertise globally, particularly in natural resources. • Our key differentiator is people who are passionate about our strategy, wherever in the world they are based. We are excited to be one of the leading companies in Africa, and we are proud of the contribution we are currently, and still will be making to growing our wonderful continent.

What is Standard Bank doing to ensure it provides relevant services to marginalised What do you think Standard Bank should do and unbanked communities? differently in the future? We have launched an Access Account product Visible leadership and involvement in the cominto the market this year, which is cost- munities that we do business with should be effective for our customers, and can be opened key focus areas for Standard Bank Western paperlessly in under 10 minutes. Cape. Our service levels in these communiFurther, we have rolled out in excess of ties need to be lifted. The overriding focus for 9 000 AccessPoints across the country, which me is visible leadership. I would like us to be provide access to simplified banking services more involved in things like sponsorship, and close to customers’ homes. These AccessPoints Standard Bank needs to be more dominant in are outsourced to traditional and non- the Western Cape, not just in Cape Town. traditional retailers, such as spaza shops. There are tremendous growth opportuniWe further provide customers with the ties in places like Worcester, Swellendam, ability to send and receive money to and from Hermanus, Vredendal, Mossel Bay and George. friends and family cost-effectively using our The Western Cape is so much more than just innovative money-transfer solutions. Cape Town!

163

western cape business 2013


listings

Standard Bank Western Cape Province A guide to Standard Bank’s key contact personnel in the Western Cape Province.

Marius Opperman Provincial Manager, Standard Bank Financial Consultancy Email: marius.opperman @standardbank.co.za

Provincial Management team Johan van Wyk Provincial Head: Western Cape Email: johan.vanwyk2 @standardbank.co.za

Business Banking Provincial team Graham Benn Head: Branch Banking, Western Cape Email: graham.benn @standardbank.co.za

Mike Hall Provincial Manager, Business Centres Email: mike.hall @standardbank.co.za

Eben Klopper Head: Business Banking, Western Cape Email: eben.klopper @standardbank.co.za

Michael Schirmacher Provincial Manager, Small Enterprise Email: michael.schirmacher @standardbank.co.za

Deena Naidoo Provincial Manager, Sales Email: deena.naidoo @standardbank.co.za

Johann Theron Provincial Manager, Public Sector Email: johann.theron @standardbank.co.za

Glenda Rosslind Provincial Manager, Private Banking Email: glenda.rosslind @standardbank.co.za

Nico Loock Provincial Manager, Agric Email: nico.loock @standardbank.co.za

western cape business 2013

164


listings

Business Centre Managers

Local Market Managers

Ebrahim Abrahams Cape Town Business Centre Manager Email: ebrahim.abrahams @standardbank.co.za

Fazila Sema Somerset Local Market Manager Email: fazila.sema @standardbank.co.za

Stephan van der Merwe Southern Cape Business Centre Manager Email: stephan.vandermerwe @standardbank.co.za

Shireen Khan Cape Flats Local Market Manager Email: shireen.khan @standardbank.co.za

Kenny Fisher Boland Business Centre Manager Email: kenny.fisher @standardbank.co.za

Charmaine Johnson Tyger Manor Local Market Manager Email: charmaine.johnson @standardbank.co.za

Janap Galant Tygerberg Business Centre Manager Email: janap.galant @standardbank.co.za

Dean Maree Claremont Local Market Manager Email: dean.maree @standardbank.co.za

Yazeed Soeker Atlantic Seaboard Business Centre Manager Email: yazeed.soeker @standardbank.co.za

Henry Klopper Paarl Local Market Manager Email: henry.klopper @standardbank.co.za

Dumile Makapela Private Banking Suite Head Email: dumile.makapela @standardbank.co.za

Loyiso Hashe George Local Market Manager Email: loyiso.hashe @standardbank.co.za

165

western cape business 2013


focus

Contributing to sustainability Standard Bank Group views corporate social investment as an opportunity to drive positive change in marginalised communities.

The most fundamental contribution Standard Bank Group (SBG) makes to the economies in which it operates is by maintaining a robust business. This allows the bank to pay dividends to its shareholders, salaries to its employees and tax to governments. As a buyer of goods and services, Standard Bank plays an important role in supporting local businesses, which provide employment and drive socioeconomic development in local communities. In addition, the bank’s corporate social investment (CSI) makes a measurable difference to recipients and communities that SBG depends on to remain sustainable. The total wealth created by the group in 2011 was R50-billion, an increase of 12% from 2010.

Sustainability in the supply chain Standard Bank Group promotes responsible procurement and encourages its suppliers to act ethically and responsibly. Its procurement philosophy has three key pillars: • Effective supply-chain management • Transformation of the supplier environment in South Africa, in line with its commitment to the Department of Trade and Industry’s Codes of Good Practice for Broad-Based Black Economic Empowerment • Maximising opportunities to grow business value for the group and its vendor network

Investing in communities Socioeconomic impediments negatively affect the bank’s ability to grow. To this end, SBG commits funding and other resources to create long-term social value for the communities in which it operates. This promotes social stability and economic mobility that benefits the bank’s long-term sustainability. SBG views corporate social investment as an opportunity to drive positive change in marginalised communities. High unemployment presents a socioeconomic barrier that undermines its ability to do profitable business in these communities. Rather than avoiding doing business in such communities because people do not have the resources to transact, the bank makes social investments that will help to bring about change and economic participation. By engaging with a community and mobilising local economic activity, there is a greater chance that the community will be able and willing to do business with the bank in the future. SBG uses its sponsorships to complement its social relevance and social investment objectives. Over £25 000 was raised at the annual Standard Bank London Dragon Boat day. This was donated to the National Society for Prevention of Cruelty to Children.

Recognition In the CNBC All Africa Business Leader Awards, Standard Bank was presented with the LeaderRecognition ship in the Arts Award for its contribution to the Standard Bank won the Best People Develop- growth of the arts in Africa. The bank was recment Initiative award from the Chartered Insti- ognised for its ongoing support of the annual tute of Purchasing and Supply. It received this National Arts Festival in Grahamstown and the award for its procurement training initiatives. Standard Bank Joy of Jazz Festival. The bank also received an Environment Award in the Logistics Achiever Awards. www.standardbank.com WESTERN CAPE BUSINESS 2013

166


OVERVIEW

Insurance Insurance companies have a big presence in the Western Cape.

T

he Western Cape’s destination marketing, investment and trade promotion agency, Wesgro, reports that that although several national financial institutions (especially in insurance) have their headquarters in Gauteng, a growing trend is for specialised financial suppliers to move to the Cape, either as branches of Gauteng head offices or as specific-services units. In the City of Cape Town, the financial and business services sector employs upwards of 200 000 people, and accounts for 33% of the metropole’s GDP. Although Old Mutual South Africa has its headquarters in Johannesburg, 85% of the company’s non-sales staff are located on the large Pinelands campus. Old Mutual Investment Group SA (OMIGSA), the asset management branch, is also based in the city. Short-term insurer Santam (majority-owned by financial services group Sanlam) is the leader in South Africa with 27% of the market (Business Monitor InternationaI, 2012). Its headquarters are in Bellville. Sanlam has its own short-term insurance company and has launched a company that focuses on personal and vehicle insurance, MiWay. Sanlam started its life as an insurer but now has a full suite of financial services. Sanlam Life Assurance is a major player in the life insurance market. South Africa’s leading life insurance companies in terms of written premiums are Old Mutual Life and Liberty Group (Business Monitor International, 2012). The R30-billion deal that merged Metropolitan with Momentum in 2010 created South Africa’s third-biggest life assurance company, MMI Holdings. Although the group has made savings by operating as a group, the individual brands have been retained for operational purposes. Metropolitan’s headquarters are still in Cape Town. The group’s full-year revenue in 2011/12 was R51-billion.

Online resources Actuarial Society of South Africa: www.actuarialsociety.org.za Financial Services Board: www.fsb.co.za Insurance Institute of South Africa: www.iisa.co.za Insurance South Africa: www.insurance.za.org South African Institute for Chartered Accountants: www.saica.co.za

167

Sector Highlights Old Mutual has a large campus in Pinelands. • Santam is a market leader.

major companies

• Old Mutual • Mutual & Federal • Sanlam • Santam • MMI South Africa’s long-term insurance industry assets were worth R1.1-trillion in June 2012, according to the Association for Savings and Investments SA, quoted in Business Day. Excess assets stood at R70-billion. Prudential South Africa is a retail and institutional asset management company with its headquarters in Cape Town and offices in four other South African cities. The effects of the global recession were not as sharply felt in the Western Cape as in other parts of the country, according to a survey conducted by the Bureau for Economic Research at the University of Stellenbosch. It was retail and investment banks that were worst affected by high numbers of nonperforming loans.

western cape business 2013


Personal Financial Advice, a division of Retail Affluent at Old Mutual,

provides solutions to the middle to upper income market, including short-, medium- and long-term savings, risk cover for severe illness, disability and death, short-term insurance, retirement planning and wills. Customers' financial needs are analysed, prioritised and then addressed with suitable financial solutions or services. Our value proposition Financial advisers or financial planners, as they are sometimes called, are trusted partners to customers and construct the best financial plan for their circumstances and needs, both current and future. Personal Financial Advice provides a range of solutions and services tailored to the customers' needs after doing a detailed financial analysis. We also offer comprehensive long-term risk cover solutions for you and your business. We have a wide array of customers across all life stages: students, young people starting out, established individuals with more complex financial needs, and retired people. Our customers also include small and medium enterprises and large corporates. Is the right person giving you the appropriate advice? Old Mutual advisers offer solutions for every need – savings, investments, asset management, life assurance and the highest quality personal service to every one of our customers: ■ Easy-to-understand advice and solutions relevant to our customers ■ One-on-one interaction to identify and understand their personal financial needs, encouraging them to make adequate and timely provision ■ An analysis of the extent to which provision has been made and determining which additional provision is required ■ A credible, objective and robust advice process, supported by appropriate tools and specialists ■ Help in making sense of the array of choices, through product comparisons and an in-depth understanding of Old Mutual solutions ■ Strong, lasting relationships, supported by annual contact to review the customer's plan. Says Regional General Manager Jaco van der Merwe, “We have over 165 years of experience in meeting the financial needs of millions of South Africans. We pride ourselves on offering the highest quality personal service to every one of our customers’ businesses.” Jaco van der Merwe

Regional General Manager, PFA Western Cape Email: jvandermerwe4@oldmutual.com Telephone: 021 917 2388 (office) Physical address: Carl Cronje Drive, Southgate Office Park, 2nd Floor, Tyger Waterfront, Bellville, 7530

www.oldmutual.co.za


Private Wealth Management – offering a implementation of bespoke solutions wit Financial planning – where you are at the

Private Wealth Management is a trusted adviser to clients seeking a Lifestyle Financial Planning process, our proactive focus is on wealth plan for you that is professional, intuitive and designed to ensure th

Planning with your lifestyle in mind “Our approach to financial planning is different. We start by spending achieve” says Mark Cronje, Area Manager of Private Wealth Managem The financial plan we construct with the client is designed to enable th

Right now, there may be a gap between wh understanding of what is important to you would need to achieve those goals based o

The required investment return determine that money should be invested.

That does not mean we ignore risk. In fact, associated with the traditional risk profile a

This will not be limited to investment risk, but also include inflation ris need to take, we will have a conversation about the alternative strateg to your goals as we possibly can.

Within the framework of the six-step financial planning process, our fin personal circumstances and lifestyle goals, ensure that the plan remain contained in the plan. Regular communication and the ongoing review lifestyle goals at the centre.

Our value proposition Through tailor made advice, we are focused on enabling and supportin services and solutions using specialist resources including ongoing mo experience transparent fee based advice.

Our offering With well managed prosperity as our main aim, our offering, services a achieve this, we offer a range of competitive solutions and structures t Our main services include: • Retirement planning • Estate planning • Tax Planning • Risk Planning • Investment Planning • Corporate Business Insurance • Short Term Insurance • Banking Needs • Health Solutions

Mark Cronje Area Manager, Private We

Physical Address: Block E, Ce

Email: mcronje@privatew Telephone: 021 555 9300 Website: www.privatewealth.co.za


10005154JB/E

Provide for their dreams even when you’re no longer there Get an Old Mutual Life Plan today and your loved ones can receive from R50 000 up to R500 000 so that they can cope financially. Other benefits include access to Family Support Services like: • Funeral Support (Transportation of the deceased) • Health Support • Trauma, Assault & HIV Treatment Leave your family financially secure. SMS Life to 31278, and we’ll call you back.

do great things

Licensed Financial Services Provider

WE HAVE OVER 165 YEARS OF WISDOM TO INVEST IN YOU Contact your Old Mutual Financial Adviser or your Broker SMS Life to 31278 - SMS charged at R1.50 I www.oldmutual.co.za


LOANS FROM OLD MUTUAL The economic downturn has put severe strain on many consumers as they find themselves battling to survive financially. Old Mutual Finance now offers clients a unique plan to help them to consolidate their debt and save thousands of rands on initiation fees and administration charges - helping clients to manage their finances in a smart way. • What makes our lending business different to the others At Old Mutual Finance, we have a deep rooted respect for our customers, for their circumstances, needs and culture. It drives us to treat customers with dignity, provide outstanding service and to do our utmost to provide the best solutions. Old Mutual is known as the savings and assurance powerhouse of South Africa. We also recognise that lending is a reality for most people. Generally lending and savings are seen as conflicting needs and offerings. Old Mutual Finance therefore takes a holistic view of customers’ savings, risk and lending needs and providing a balanced basket of products that meet these needs. • What are our lending principles Affordability is cornerstone of our lending. Loans are often seen as bad. However, if used responsibly and prudently, loans can open many doors and opportunities for customers – think about loans for education, home extensions etc. It is therefore vital that customer understand the repayment obligation and be able to afford the loan instalments over the period of the loan. Financial education. The financial services industry is complex and financial terms could be equally confusing. During the loan application process our Financial Consultants provide basic financial education to this end. Spending time. We prefer spending more time with customers to ensure that they understand the loans process and take their obligations under the agreements seriously. We don’t believe that taking a loan “is like buying bread”. • What are the products Our flagship product is the My Money Plan, which is aimed at customers that want to consolidate debt, save money on fees and charges and require regular cash flow over the term of the loan. The product combines all three components into one monthly instalment: 1. Consolidation of existing debt and the advance of funds that are required for once off purposes 2. Recurring annual funds that allow customers to budget for needs that arise during each year, such as school fees or repairs. 3. Monthly funds that provides cash during the month when money seems to dry up In addition, good repayment is rewarded by OMF who will pay back pre determined amounts of interest to the customer on a regular basis. Given that there is also only one amount to repay, significant savings in bank charges are enjoyed by the customer. Loan amounts are from R10 000 to R120 000 and the maximum term is 5 years. OMF also offers personal loans of up to R100 000 with repayment periods of up to 48 months. Finally OMF offers policy secured loans to existing Old Mutual customers that have flexi or conventional policies. • Who qualifies In order to qualify for a loan, an individual must have a bank account, be employed for at least 6 months and have a valid South African ID document. The OMF consultants will prepare a detailed budget together with the customer, to ensure that the instalment is affordable. • What happens when a client cannot make the repayment It is vital that customers who cannot meet their payment obligations contact the nearest OMF branch of call centre. OMF will do its best to assist customers with a new payment plan. OMF does provide credit insurance to customers that assist with the payment of instalments in the event of temporary disability and retrenchments and pays the full outstanding debt upon death or permanent disability. Old Mutual Finance has opened more than 200 new retail branches conveniently located in shopping centres, CBD’s and near transport nodes and offer lending, insurance sales and client servicing. OMF also operates from a number of existing Old Mutual client service centres. Do the smart thing and contact your nearest Old Mutual Finance Branch, and get your plan to financial freedom. Please visit our website to find your nearest branch. www.omfinance.co.za

Contact details Calvin Bowles Provincial Manager, Western Cape, Old Mutual Finance (Pty) Ltd Email: calvin.bowles@omfinance.co.za Telephone: +27 (0)21 950 8224 Fax: +27 (0)21 950 8214 Mobile: +27 (0)83 396 3621 Website: www.omfinance.co.za


10005155JB/E

LET US HELP YOU MAKE THE MOST OF YOUR CHILDREN’S EDUCATION

GIVE YOUR CHILD THEIR DREAM CAREER WITH AN OLD MUTUAL EDUCATION PLAN Your children have dreams for the future, but without the right plan, these dreams may not be realised. That’s why it’s important to start planning for your child’s education today, with the Old Mutual Education Plan. The earlier you start, the more time you have for your money to grow. • Invest from as little as R150 per month for 10 years or more. • With the Premium Holiday benefit, you can miss up to 6 premiums over the term of your policy without it being made paid-up. • You will have access to our Family Support Services such as Legal Support, Emergency Medical Response and Health Support. The Old Mutual Education Plan can help you provide the funds to help your children do great things with their dreams. SMS ‘Dream’ to 37454, and we’ll call you back. Contact your Old Mutual Financial Adviser or Broker or call us on 0860 60 7111. To find out more about our Education Plan visit www.oldmutual.co.za/education

do great things

Licensed Financial Services Provider

WE HAVE OVER 165 YEARS OF WISDOM TO INVEST IN YOU Contact your Old Mutual Financial Adviser or your Broker Call 0860 60 7111 I SMS ‘Dream’ to 37454 - SMS charged at standard rates I www.oldmutual.co.za/education


OVERVIEW

Development finance and SMME support Western Cape entrepreneurs are winning awards.

F

inancial institutions and agencies in the Western Cape are looking for effective ways to lend money to small businesses with good potential. National government has created the Small Enterprise Finance Agency (Sefa) to spur the development of small, medium and micro enterprises (SMMEs). The new agency falls under the Industrial Development Corporation (IDC), one of the biggest and most significant economic development agencies in the country. In 2010, the IDC spent R2.1-billion across South Africa in supporting 142 SMMEs, and a total of R9.4-billion on new capacity or expansion projects. The Gro-E Scheme will fund small businesses to the tune of R10-billion in the years to 2017. This will include funding for buildings, equipment and working capital. The IDC’s Women Entrepreneurial Fund (WEF) funds womenowned businesses. The IDC provided finance for a new pilchard-canning facility in Mossel Bay, and supports skills development in fruit farming. Other projects in the Western Cape involve satellite-launch technology, fruit-juice production, cold rolled-steel production and canola-oil extraction. The Arts and Crafts desk of the National Department of Trade and Industry (dti) helps crafters gain access to markets and enrols crafters in winter schools.

western cape business 2013

174

Sector Highlights The Small Enterprise Finance Agency is a new national funding entity. • A UCT student’s waterless soaping invention has won a global award. • The IDC has a R10-billion fund for start-up businesses.

major companies

• Small Enterprise Finance Agency

• Small Enterprise

Development Agency

• South African Black

Entrepreneurs Forum

• National Empowerment Fund

• Industrial Development Corporation


OVERVIEW Several Western Cape entrepreneurs have won awards for their initiatives. UCT student Ludwick Marishane won the 2011 ‘Global Student Entrepreneur of the Year Award’ with the invention of a gel, DryBath, that replaces water and soap. In 2012, Palesa Moeketsi won R15 000 and a laptop computer for setting up a successful public relations company, Chesa Communications. This competition is run by the Small Enterprise Development Agency (Seda), and other winners included an ice-cream shop and a mobile software company. The website of the Western Cape Provincial Government, Cape Gateway, lists 50 SMME support organisations in the province. These range from the provincial destination marketing, trade and investment promotion agency Wesgro, to smaller community institutions. There are industry bodies in sectors such as clothing and textiles, arts and crafts, and boatbuilding. Research by Absa shows that SMMEs were supporting 60% of the country’s employable population in 2011, against a figure of just 18% in 1998. The 2012 Absa SME Index noted that, of the country’s 700 000 businesses, only 270 000 employ more than five staff members. However, the average number of people employed is 11. An active agency in supporting entrepreneurs is the

Small Enterprise Development Agency (Seda). Seda gives nonfinancial support through training, assistance with filling in forms, marketing and creating business plans. The main provincial office is in Cape Town, and there are branches in Stellenbosch, George and Bellville. The West Coast Business Development Centre is located at Saldanha. One of the Seda FurnTech Advanced Furniture Technologies Incubators, of which there are seven nationally, is situated in Cape Town. Like Seda, the National Empowerment Fund (NEF) is an agency of the dti. The launch in 2011 of the Enterprise Development Fund (EDF) by the NEF was a positive step in providing more funding for start-up businesses. The fund has an initial funding of R75-million, with plans to boost this by another R50-million supplied by private partners who want to see black-run and women-run businesses succeed. In the 2010/11 financial year, the NEF rolled out funding worth R2.3-billion for black entrepreneurs in a range of sectors. The Pre-Investment Unit of the NEF screened 1 718 applications in 2011/12, a 69% increase on the previous year. Black entrepreneurs have their own support system in the South African Black Entrepreneurs Forum (SABEF), a non-profit body that aims to support members in getting access to markets, and to developing their entrepreneurial spirit. Networking and lobbying form part of the brief of SABEF. All of the major banks have SMME offerings. Absa Bank’s SME Fund is driven by its Small Business Division, and a unit established in 2012, Enterprise Development, will base its decisions on lending on whether the proposed business will generate cash-flow, rather than focusing on assets. Standard Bank runs a Community Investment Fund, and Nedbank offers an enterprise development product for businesses with turnovers up to R35-million. The commercial division of FNB has sections that deal with start-up funding and BEE funding.

Online resources Cape Gateway: www.capegateway.gov.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za National Department of Economic Development: www.economic.gov.za National Department of Trade and Industry: www.thedti.gov.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za South African Black Entrepreneurs Forum: www.sabef.org.za

175

western cape business 2013


focus

Funding products and services The National Empowerment Fund (NEF) has approved over R4.4-billion (October 2012), a milestone which has supported more than 30 000 jobs countrywide.

Mandate

• compliance with all the relevant laws and

regulations Established by the National Empowerment • return on investment Fund Act No 105 of 1998, the NEF is a • the possibility of co-funding with another driver and a thought-leader in promoting and public- or private-sector institution facilitating black economic participation through the provision of financial and non- Contact details for the NEF financial support to black-empowered businesses as well as by promoting a culture of Head Office : Gauteng Province savings and investment among black people. Physical address: West Block, 187 Rivonia Road, Morningside 2057 Tel: +27 11 305 8000 Fax: +27 11 305 8001 Funding from Call centre: 086 184 3633 / 0861 (THE NEF) R250 000 to R75-million Email: applications@nefcorp.co.za (Funding), The NEF is an agency of the dti mandated to info@nefcorp.co.za (General Enquiries) promote black economic participation. Its funding mandate is guided by the Codes of Eastern Cape Province Good Practice on Broad-Based Black Economic Physical address: 7b Derby Road, Empowerment, as well as by the Industrial Policy Berea, East London 5241 Action Plan. The NEF provides business loans Tel: 0861 NEF ECP (0861 633 327) from R250 000 to R75-million across a range Email: easterncape@nefcorp.co.za of sectors, for start-up, expansion and equity acquisition purposes. A key requirement for Free State Province NEF funding is for the investees to be directly Physical address: 34 Fountain Towers, Corner involved in the operations of their businesses. Zastron and Markgraaf Street, Westdene, Bloemfontein Tel: 0861 NEF FSP (0861 633 377) Funding criteria Email: freestate@nefcorp.co.za Each application for funding is assessed in terms of the following criteria: KwaZulu-Natal Province • minimum percentage of black ownership or Physical address: Smart X-Change Building, interest 5 Walnut Road, Durban 4001 • black women empowerment Tel: 0861 NEF KZN (0861 633 596) • black managerial and operational involvement Email: kzn@nefcorp.co.za • commercial viability of the business • specific product criteria Limpopo Province • job creation Physical address: Suite 8, Biccard Park, • geographic location of the business (rural/ 43 Biccard Street, Polokwane 0699 urban/disadvantaged areas) Tel: 0861 NEF LIM (0861 633 546) • community involvement Email: limpopo@nefcorp.co.za WESTERN CAPE BUSINESS 2013

176


focus Mpumalanga Province Physical address: Trust Building, 16 Brander Street, Nelspruit 1200 Tel: 0861 NEF MPU (0861 633 678) Email: mpumalanga@nefcorp.co.za

Tel: 0861 633 697 Email: northwest@nefcorp.co.za

North West Province Physical address: 32B Heystek Street, Sunetco Office Park, Ground floor, Rustenburg 0299

Western Cape Province Physical address: Suite 2818, 28th Floor, Absa Centre, 2 Riebeek Street, Cape Town 8001 Tel: 0861 NEF WCP (0861 633 927) Email: westerncape@nefcorp.co.za

Product/Fund

Description

Entrepreneurship Finance

For starting a new business

R250 000 – R10-million

Procurement Finance

For tenders and contracts

R250 000 – R10-million

Franchise Finance

For pre-approved franchise licenses

R250 000 – R10-million

Acquisition Finance

For black investors to acquire a stake in medium to large companies

R2-million – R75-million

Expansion Capital

For growing an existing business

New ventures

Participation in greenfield projects

R5-million – R75-million

Capital Markets

Listing on the JSE or its junior Altx markets

R2-million – R75-million

The NEF has BEE Facilitator status**, which can help black shareholders Liquidity and Warehousing and companies wishing to sell a stake while keeping the shareholding black

R2-million – R75-million

For agri-processing, tourism, mining and beneficiation, manufacturing, etc

R1-million – R50-million

Venture-capital fund investing in early stage projects for the purpose of developing strategic industrial capacity in poverty nodes, in renewable energy, outsourcing, tourism, manufacturing, mining business process and mineral beneficiation, etc

R1-million – R75-million

*Rural and Community Development Fund

*Strategic Projects Fund

Funding amounts

R250 000 – R75-million

On average, the NEF’s business loans are repayable over four to seven years, and up to 10 years where marked with an asterisk (*). **In 2008 the NEF was awarded BEE Facilitator status by the dti in terms of the provisions of statement 100 of the Codes of Good Practice on B-BBEE. The NEF’s BEE Facilitator status means that equity investments held by the NEF in any company are automatically regarded as 100% black-owned, including 40% owned by women and 10% by black designated groups. The equity stakes would also be regarded as unencumbered, resulting in the company receiving a perfect ownership score in respect of the stakes held by the NEF.

177

WESTERN CAPE BUSINESS 2013


OVERVIEW

Education Western Cape researchers are world leaders.

Sector Highlights

T

he Western Cape has three traditional academic universities, a major distance-learning university and the Cape Peninsula University of Technology (CPUT), the only institution of its type. There are six further education and training (FET) colleges. At high-school level, the Western Cape achieves relatively good matriculation results. In line with the country’s need to train more skilled artisans, a new school opened in Cape Town’s northern suburbs in 2012. The Northpine Technical High School in Brackenfell will teach mechanical technology and engineering-related subjects.

FET colleges Each of the province’s FET colleges has several campuses. The College of Cape Town (CCT) has nine outlets and caters to the central city. Northlink College is in the northern suburbs and is an innovator in workplace monitoring. It has three business units that give students experience: Hair and Cosmetology, the Clothing Factory, and a restaurant and conference centre. The Fitting and Machining Centre of Excellence at Wingfield has the latest equipment. False Bay College has campuses in Fish Hoek, Muizenberg, Mitchell’s Plain, Khayelitsha and Westlake. The CCT’s city campus was the venue in May 2012 of the launch of the provincial government’s Premier Advancement of Youth (PAY) project. A group of 1 000 young people have been western cape business 2013

178

major companies

• University of Cape Town • Stellenbosch University • University of the • • • • •

Western Cape College of Cape Town Boland College Northlink College Unisa False Bay College

given the chance to be interns. The automotive division of the CCT, located at the Athlone campus, achieved a Status of Excellence from the sector training authority, merSETA. Automotive mechanics are now expected to work with computers and know about electronics. Outside of the Cape metropole, Boland College looks after Stellenbosch, Worcester,

photo: false bay college

False Bay College hosts library days at its campuses.

The College of Cape Town’s Automotive Division has been awarded Status of Excellence. • UCT researchers have found a candidate malaria drug. • The Cape Peninsula University of Technology is offering a new degree in Medical Laboratory Science. • Boland College participated in a national cheftraining scheme.


OVERVIEW

The University of Cape Town is the highest-ranked university in Africa. Paarl and Caledon, while the Southern Cape College covers a wide area, from George to Beaufort West. The West Coast College also has a big catchment area. Boland College was the only Western Cape institution chosen to participate in a part of the Expanded Public Works Programme (EPWP) run by the South African Chefs’ Association. In 2012, 29 chefs qualified with a City and Guilds Certificate.

photo: barbourians/flickr

Tertiary education The University of Cape Town has more than 21 500 students, including foreign students from more than 100 countries. There are 720 permanent staff and 32 A-rated researchers (40% of South Africa’s total). In 2012, UCT made world

headlines when its Drug Development and Discovery Centre announced that it had identified a candidate malaria drug that held great hope for the future. The University of Stellenbosch (US) has more than 23 000 students enrolled, and is recognised as one of the four top research universities in South Africa. In 2012, US achieved its target of raising R1.7-billion for investment in future projects. The University of the Western Cape has focused on increasing its research capabilities in recent years, and is home to several national research bodies. In 2011, the Cape Peninsula University of Technology announced the introduction of a new degree to replace the national diploma in biomedical technology: Medical Laboratory Science will include courses in pathopsychology and molecular biology. University education is available in George through the Nelson Mandela Metropolitan University: Saasveld is home to the School of Natural Resource Management and the York Street Campus delivers courses in business and social science, accounting and business management. One of the major role-players in tertiary education in the region is Unisa, a comprehensive, flexible and accessible open distance-learning institution. With a student complement of approximately 30 000 in the Western Cape (and more than 350 000 worldwide), Unisa is the university of choice for many

179

western cape business 2013


2010 than there were in 2001. This is according to a report by the South African Institute of Race Relations (SAIRR). Among the companies in this sector is JSE-listed ADvTECH, which has among its brands Abbotts College, Rosebank College and Varsity College, all of which have a strong presence in the Western Cape. The company announced plans to look for continued growth in the future. Curro Holdings is also listed on the JSE and started out as provider of private schooling to well-resourced families. By March 2012, of the region’s corporate and government employees, and a Curro was running 12 schools growing favourite among school leavers. Unisa has a campus across South Africa with in the northern suburbs of Cape Town and a Service Centre plans to roll out many more in George. in that segment, but a plan was announced in that month to make the concept more Schools affordable. A funding agreeThe Western Cape has excellent education facilities, but a large ment with Old Mutual Investdisparity still exists between the quality of resources offered in ment Group SA (OMIGSA) and the cities compared to townships and rural areas. The province the Public Investment Corpohas about 1 450 schools. ration (PIC) will see Curro roll A public-private project known as the Western Cape Educa- out 11 low-fee independent tion Foundation (WCEF) has achieved some notable successes. schools in the years to 2019. A partnership between the private sector and the provincial These will be called Meridian department, WCEF aims to source infrastructure for schools to Independent Schools. The Western Cape’s first reduce the burden on the department. such school, Meridian ColExamples include: • A primary school at Vredenburg, R15-million, PetroSA lege Pinehurst, will open in • A school hall for Westridge Secondary School, R4-million, January 2013. Garden Cities Archway Foundation and Vodacom Foundation A private project that is A number of initiatives have been undertaken to improve math- succeeding in its aim of enaematics and science results at schools. There are 500 schools bling black children to gain nationally, known as Dinaledi schools, that receive extra sup- good passes in matric maths port for maths and science tuition. A 10-year project to supply and science is the LEAP Scischools with ICT equipment came to an end in 2011. The ence and Maths School, based Khanya Project succeeded in getting 35 619 computers into in Pinelands. 1 341 schools. The LEAP Science and Specialist schools called STEM schools (Science, Technology, Maths Schools are different Engineering and Maths) have been established in the province. in that free education is proThere were 44% more private schools in South Africa in vided to talented township western cape business 2013

180

photo: redcom/flickr

OVERVIEW


OVERVIEW children. The schools are funded by corporate sponsorship and the support of educational trusts. Rather than build expensive facilities, the first LEAP (serving Langa township in Cape Town) began partnering with Bishops Diocesan College for the use of science laboratories. LEAP pupils attend classes from 8am to 5pm. There are six LEAP schools in South Africa. Corporate supporters include Aveng, Ford, Old Mutual, BoE, Rand Merchant Bank and the Shuttleworth Foundation.

Business schools Each of the province’s tertiary institutions has a business school. The University of the Western Cape’s School of Business and Finance is a young institution, having been launched in 2008, but it has ambitious goals. New courses include an Advanced Diploma in Management and a Postgraduate Diploma in Management (Financial Planning). Other courses include BCom Honours (Finance) and BCom Honours in Management. In 2010, the University of Stellenbosch Business School (USB) added project management to its offering, with the creation of the Centre for Project Management Intelligence. Sasol Technology is involved in the centre, which is investigating private and public sector issues. The Financial Mail quoted a USB executive saying that the school’s Centre for Business in Society would

be paying close attention to the agricultural sector in terms of its brief to position business studies as an integrated part of society. USB Executive Development (USB-ED) is a company operating within the USB. Its focus is on the education of executives, and allows executives to tailor-make their own programme rather than sticking to academic terms. USB-ED offers three major services: • Open-enrolment programmes for individuals • In-house and customised programmes for companies and organisations • Strategic consulting An innovation is the gap-year Certificate in Entrepreneurship and Management. Classes are offered for a five-month period, after which students go to the workplace for work experience. Courses include Economics, Marketing, Operations Planning and Management, and Strategic Thinking and Management. The University of Cape Town’s Graduate School of Business, located in the Waterfront precinct, is well regarded and has accreditation from the European Foundation for Management Development. The Allan Gray Centre for Values-Based Leadership is the first of its kind in South Africa. It will do research and students will have the opportunity to do internships at the Allan Gray Orbis Foundation. UCT’s Graduate School of Business (GSB) launched a new school in 2012 – the Centre for Social Innovation and Entrepreneurship. Unisa’s School of Management Sciences has a wide range of degrees and diplomas available for students studying by correspondence. Departments include Business Management, Marketing and Retail Management, Banking and Public Administration and Management. Several centres focus on topics such as corporate citizenship, business management and industrial and organisational psychology.

Online resources Cape Peninsula University of Technology: www.cput.ac.za FET Colleges: www.fetcolleges.co.za Graduate School of Business, UCT: www.gsb.uct.ac.za LEAP Science and Maths School: www.leapschool.org.za School of Business and Finance, UWC: www.uwc.ac.za Unisa: www.unisa.ac.za University of Stellenbosch Business School: www.usb.sun.ac.za USB Executive Development Ltd: www.usb-ed.com Western Cape Education Department Online: http://wced.pgwc.gov.za Western Cape Education Foundation: http://wced.school.za/wcef

181

western cape business 2013


interview

Fostering entrepreneurship Non-executive director of the South African Black Entrepreneurs Forum Vuyisa Qabaka explains the transformation in the way that entrepreneurs are nurtured in the country.

Vuyisa Qabaka

Vuyisa Qabaka is a nonexecutive director at SABEF, where he deals with communication, programme development and organisational strategies. He is also involved with executive decision-making, including compiling press statements. Vuyisa has experience in business development, business start-ups, project management, strategic planning, deal brokering and people management. Vuyisa has a BCom in Financial Accounting from the University of Cape Town, and is working towards his Bcom in Commerce through Unisa. He also has a Sales and Marketing certificate from Damelin. western cape business 2013

What is the South African Black Entrepreneurs Forum (SABEF)? SABEF is a network for black entrepreneurs. It seeks to facilitate entry of emerging entrepreneurs into prominent sectors of the mainstream economy, through access to markets, networking, lobbying and advocacy, and by implementing solution-focused development and networking programmes aimed at ensuring the growth and sustainability of the emerging business sector in South Africa. There have been a number of changes over the past 10 months in terms of the government’s approach, and SABEF is partly responsible for that change in the advocacy and lobbying sphere. How do you engage directly with corporates? What we are trying to achieve is an intervention; we are focused on three core objectives: • The empowerment of entrepreneurs • The promotion of entrepreneurship as an alternative to job-seeking • The opportunity for entrepreneurs to grow their businesses We do this in two ways. We ask, ‘Are you really in business?’ We ask this question because, of the approximately 36 000 registered black entrepreneurs on the procurement database, 82% of those fall in the first round of vetting, because they are not compliant. Impact also relates to how you actually run your business. We offer certain key training programmes to communities, such as understanding basic tendering and understanding basic BBBEE codes. In terms of value, SABEF works through paid-membership subscriptions. What we have discovered about black SMMEs, is that they tend to neglect their personal financial needs. So one of our first value-offerings, in partnership with Metropolitan, is funeral cover as part of their membership. As an entrepreneur, you generally don’t get around to paying yourself, so SABEF ensures that this aspect of personal financial management is taken care of. We also have an agreement with Vodacom, in which all of our members get an M-Pesa number. We also have an agreement with Legal Sense, so that our members can get legal advice. Most importantly, we organise weekly social-networking events, monthly women’s breakfasts, and we create platforms in which our members can engage directly with big corporates.

182


PROFILE

USB Executive Development Ltd Your journey to inspiring thought leadership starts here.

Where are you in life at the moment? Are you ready to move to the next level of management? What is your career development plan for 2013? These are important questions to consider if you feel strongly about your own career development. People often do not take the time to consider these questions and therefore find themselves not knowing what the next step should be.

Programmes have recently also been offered in Namibia, Nigeria, Tanzania and Uganda.

Centres of Excellence Centres of Excellence have been established to provide thought leadership and research in important focus areas. These include the Centre for Applied Entrepreneurship, the Centre for Business in Society and the Centre for Project Management Intelligence.

This is USB Executive Development’s advice: The next step to finding a suitable develop- Key facts and figures ment opportunity is to identify where you cur- Year established: 2001 rently are in your learning journey, and then BBBEE status: Level 3 to consider where you would like to be. USB Executive Development, the public executive Contact Details: development company within the University of Stellenbosch Business School (USB), can Key contact people: help you to identify what the next step in your Frik Landman, Chief Executive Officer learning journey should be. Belinda Knight, Director: Customised Organisational Learning Services Willemien Law, Director: Open Enrolment USB Executive Development offers open-enrol- Programmes ment management and leadership programmes Heilet Bertrand, Marketing Manager for individuals, in-house and customised programmes for organisations, and strategic Western Cape: consulting. It collaborates with international Tel: +27 21 918 4488 business schools and leading partners to offer Physical address: Bellville Park Campus, participants world-class business learning Carl Cronje Drive, Bellville opportunities. USB Executive Development’s Postal address: PO Box 610, Bellville 7530 vision is to see leaders across Africa and beyond serving others with wisdom and courage. Gauteng: Tel: +27 11 460 6980 Location Physical address: The Gabba Building, Currently, the organisation has a local pres- The Campus, cnr Main and ence in Cape Town and Johannesburg (South Sloane roads, Bryanston Africa), Gaborone (Botswana), Nairobi (Kenya), Email: info@usb-ed.com Maseru (Lesotho) and Matsapha (Swaziland). Website: www.usb-ed.com

183

western cape business 2013


PROFILE

University of the Western Cape From hope to action, through knowledge.

The University of the Western Cape (UWC) is committed to excellence in teaching, learning and research, to nurturing the cultural diversity of South Africa, and to responding in critical and creative ways to the needs of a society in transition. Drawing on its proud experience in the liberation struggle, the university is aware of a distinctive academic role in helping build an equitable and dynamic society.

Core values • Cultivating a socially responsive, people-

• • • • • •

Strategic focus The University of the Western Cape (UWC) has seven key areas of strategic focus, namely: • Teaching and learning
 • Research and research development
 • Leadership, management and governance
 • Human resources management and equity planning
 • Enrolment management and student development
 western cape business 2013

UWC has a proud history in the province.

• Financial planning and income diversification
 • Communication and marketing Faculties UWC graduates have successful careers and are making an impact across South Africa and internationally. With more than 200 degree, diploma and certificate programmes and a plethora of subjects to select from, the university can accommodate any career aspiration. UWC’s programmes are offered by the following faculties:

Faculty of Arts The Arts Faculty is well known nationally and internationally. It offers high-quality education at undergraduate and postgraduate levels in a variety of fields, and has a substantial research profile. UWC Arts graduates are equipped with the skills of critical thinking, effective communication and social responsiveness, and have the ability to interact in contexts of social diversity.

Faculty of Community and Health Sciences UWC has an explicit commitment to the development of historically disadvantaged

184

photo: wikimedia

centred approach to education Respecting and striving for excellence in teaching and learning and in research Expecting high standards of integrity, ethics and respect from staff and students Promoting high standards of service provision and continuous improvement Valuing collegiality and a climate of critical professionalism Valuing diversity and commitment to equity and fairness Placing a high premium on collaboration, teamwork, accountability and shared responsibility Nurturing democratic leadership and innovative problem-solving


PROFILE communities in South Africa from which it draws most of its students. It aims to play a particular role in this development by making its education accessible to students from these communities. The Faculty of Community and Health Sciences is a multi-disciplinary team committed to the promotion of a new vision of health and welfare services.

and relevant legal education with opportunities to specialise. The Law Faculty’s mission remains to offer quality legal training and carry out quality legal research within the demands facing the different branches of the legal profession.

Faculty of Natural Sciences

The faculty is developing a reputation as an important centre of research in South Africa. Faculty of Dentistry It equips graduates with solid academic and In 2004, the respected School of Dentistry research skills and gives them the ability to of the University of Stellenbosch was incor- succeed in the marketplace. porated into the Faculty of Dentistry at UWC, which was already accredited as a World Institutes Health Organisation Collaborating Centre. • Institute for Social Development This merger makes the current Dental Faculty • International Ocean Institute of Southern Africa (IOISA) at UWC a leader in Africa. The range of expertise in the new faculty and the variety of • South African Herbal Science and Medicine clinical exposure given to its students make Institute (SAHSMI) this a remarkable place to study and work. It • South African National Bioinformatics is a realisation of training through delivery Institute (SANBI) of much-needed oral-health services to the • Institute for Microbial Biotechnology and underserved areas of the Western Cape. Metagenomics • South African Institute for Advanced Materials Faculty of Economic and Management Chemistry

Sciences

By 2014, the sustainable strength and calibre Residences of the faculty’s academic programmes and staff, About a quarter of the students at UWC are coupled with its ability to fuel independent in university residences. The Residential and thought to develop real-world skills and Catering Services Office allocates and manages knowledge, will make it nationally renowned accommodation in university residences for for growing the forward-thinking leaders of the about 3 500 full-time UWC students. future who are stimulated, inspired and enabled, fulfilling their potential, and contributing Contact details meaningfully to local and global economies. Key contact person: Faculty of Education Trish Bam, Marketing Manager The Faculty of Education currently offers a wide range of professional and academic pro- Email: tbam@uwc.ac.za grammes at undergraduate and postgraduate Tel: +27 21 959 9352 levels. These programmes are designed to Tel: +27 21 959 2911 (General enquiries) develop the intellectual, academic and pro- Physical address: Modderdam Road, fessional capacity of students in teaching and Bellville 7535 related professions. Website: www.uwc.ac.za

Faculty of Law The faculty is steeped in a culture of human rights and constitutionalism and is recognised and respected internationally. It offers a rigorous

185

western cape business 2013


interview

Increased enrolment in FET sector Leon Beech, Chief Executive Officer at Northlink College, explains how a high-quality tertiary education can improve the standard of living for students.

Leon Beech

Leon Beech is the Chief Executive Officer of Northlink College. He heads up seven campuses that are located in the Northern Suburbs of Cape Town. His career was spurred by a great passion for teaching. Leon has held many positions, from being a lecturer, divisional head, deputy principal and ultimately the CEO of Northlink. He has been in the college sector for 30 years, and recently celebrated his 10 year anniversary with Northlink College.

western cape business 2013

Do you feel the current tertiary education system adequately addresses the Western Cape’s employment needs? If not, what can be done to change this? Employment statistics show that the tertiary education system is progressing. We have recruitment officers who travel to schools, churches and into the communities to exhibit information about the college and inform people about opportunities to study further. Recently, Northlink College partnered with Dan Plato, the Western Cape MEC of Community Safety, whose vision is to help people gain a better life through education. This new partnership creates an opportunity for people to study so that they can find good jobs, improve their standard of living and contribute to the employment rate of the country. I understand that there are ambitious plans to increase the number of students at tertiary institutions between now and 2030. What is Northlink College doing to plan for potentially increased enrolment numbers? Northlink has exceeded the 10 000 student mark for 2012 enrolment. We are the second-largest college nationally and R17-million was invested in infrastructure for the year 2012/13. These developments will result in an increase of seating capacity by 720. In this way, we can accommodate more students. What is the biggest challenge you face in providing quality further education and training to people in the Western Cape? Northlink is a growing institution and with that there are many challenges. The diminishing support from state funding in proportion to the national mandate is a continuous struggle and challenge for our sector. The students’ attitude towards learning and their attendance, the will to succeed and intrinsic motivation are lacking; this challenge seems to be a national trend. Budgets remain a concern as the demands and needs of the institution and the sector become more challenging.

186


A decade of shaping students’ minds 10 YEARS

08600 NLINK (65465) | www.northlink.co.za www.facebook.com/northlink www.twitter.com/northlink


PROFILE

Boland College Boland College’s vision is to be committed, creative and innovative in leading the development of human and technological potential in the region.

Boland College is one of six further educa- are also offered at tion and training (FET) institutions in the all Boland College Western Cape. The college’s head office is campuses, providing in Stellenbosch, and it has five campuses adult learners and in Caledon, Paarl, Stellenbosch, Strand and employed people Worcester. According to its mission, Boland with the opportunity College is committed to providing accredited, to obtain a formal quality vocational and occupational education qualification, further and training that is flexible, affordable and their studies or to do responsive to the social and economic needs an enrichment course. Some of the flagship of the Boland community. Corrie Myburgh, programmes are Acting Principal Educational offerings offered in partnership Boland College prides itself on offering a wide with other leading range of accredited training programmes. institutions, such as the Institute of Certified Bookkeepers (ICB).

Full-time programmes:

National N-Diploma: Business Management, Educare, Farming Management, Financial Management, Hospitality and Catering Services, Human Resource Management, Marketing Management, Secretarial Studies and Tourism. National Certificate (Vocational): Civil Engineering and Building Construction, Electrical Infrastructure Construction, Engineering and Related Design, Hospitality Studies, Information Technology and Computer Science, Marketing, Office Administration, Safety in Society and Tourism. National Technical Certificate: Building (Plumbing), Electrician, Motor and Diesel Mechanic and Welding.

Other modes of delivery Apart from learnerships and tailor-made skills programmes, a variety of part-time programmes

western cape business 2013

Key facts and figures Year established: 2001 Number of staff: 388 Number of registered students: 10 600 Qualifications offered: National Certificate, National Senior Certificate, National Diploma

Contact details Key contact people: Corrie Myburgh, Acting Principal Brian Phike and Wendy Adams, Vice Principals Jandré Bakker, Manager: Marketing and Corporate Communication Tel: +27 21 886 7111 Fax: +27 21 886 8182 Email: hq@bolandcollege.com Physical address: 85 Bird Street, Stellenbosch Postal address: Private Bag X5068, Stellenbosch 7599 Website: www.bolandcollege.com

188


PROFILE

College of Cape Town As a leading provider in the further education and training (FET) band, the College of Cape Town has much to offer students and prospective partners.

The courses lead to recognised qualifications that are demanded by commerce and industry. The college has eight campuses situated in the central area of the peninsula, and serves the greater Cape Town area, including the traditionally disadvantaged areas and townships.

campuses, which are spread across the city and surrounding areas: • Athlone • City • Crawford • Gardens • Gugulethu The college offers various full-time and part- • Pinelands time, practical trade tests, short courses and • Thornton skills programmes in: engineering, business • Wynberg and general studies. The national certificate (vocational) that provides Grade 9 learners with The campuses have well-equipped workshops, a vocational alternative to an academic Grade lecture rooms, computer rooms and studios 10-12 is based on industry-focused training on for practical work and offer a wide range of the NQF levels 2-4. It has various other options academic and practical courses. The College available for post-school learners. of Cape Town also has three residences – at the City, Crawford and Thornton campuses.

Why the College of Cape Town?

The college is registered with the Department Key facts and figures: of Higher Education and Training and its pro- Year established: February 2002 grammes are quality assured by Umalusi, SETAs No of staff: 520 and professional institutions. No of registered students: 8 591 The College of Cape Town was successful in obtaining Institution for Sectoral or Occupational Excellence (ISOE) status with the following SETAs: • Manufacturing, Engineering and Related Services SETA (merSETA) • Education, Training and Development Practices SETA (ETDP-SETA) • Mining Qualifications Authority (MQA) • Insurance SETA (Inseta) Its quality management system complies with ISO9001 standards and it is accredited by the SABS.

Training campuses

Contact details Key contact people: Jannie Isaacs, CEO Sharon Grobbelaar, Corporate Communications and Marketing Manager Email: info@cct.edu.za Tel: +27 21 404 6700 Info centre: 086 010 3682 (SA only) Fax: +27 21 404 6701/086 615 0582 Physical address: 334 Albert Road, Salt River, Cape Town Physical address: PO Box 1054, Cape Town 8000 Website: www.cct.edu.za

The College of Cape Town has eight

189

western cape business 2013


interview

Exposing students to business and industry Chief executive officer of the College of Cape Town Jannie Isaacs highlights the college’s efforts to build sustainable links between students and potential employers.

Jannie Isaacs

Jannie Isaacs has been involved in vocational education and training for the past 38 years, as teacher, lecturer, manager and head of a college. In 1997, he became rector of the former Cape College, a position he held until the college was merged. Jannie has acquired a range of qualifications, including a teacher’s diploma, BA and B.Ed degrees, and an Honours degree and MBA from Stellenbosch University. He is currently the chief executive officer of the College of Cape Town. western cape business 2013

I understand there are ambitious plans to increase the number of students at tertiary institutions between now and 2030. What is the College of Cape Town doing to plan for potentially increased enrolment numbers? The College of Cape Town is strategically repositioning itself to remain relevant and responsive to the changing needs within the sectors that it serves. The college is embarking on an intensive infrastructure development plan to ensure that it has the required facilities and infrastructure to be responsive into the future. Provision is being made for an anticipated growth of 15% in student numbers for 2013. Is the College of Cape Town doing anything to build links between students and potential employers in the region? The College of Cape Town has identified the placement of students in work places as one of the strategic goals for the future. This will imply that each student will be exposed to industry and business during their study for periods of between five and 15 days per year. Further to that, the college will also facilitate and assist graduates to find employment. The College of Cape Town Work Placement Unit has been expanded to 10 staff members who will assist our graduates to secure work-placement opportunities. This unit will also identify potential employers for our various placement programmes. Employers are encouraged to contact this unit should they be able to provide workplacement opportunities on a full-time, part-time or internship basis. What is the biggest challenge you face in providing quality further education and training to people in the Western Cape? Over the last number of years, government has made available significant financial support to prospective students. Despite this, many students still experience several challenges in gaining access to educational institutions. A significant challenge is the shortage of job opportunities for graduates as well as the limited number of apprenticeship training opportunities in the engineering and related industries.

190


PROFILE

False Bay College False Bay College celebrated its 10th anniversary in 2012, and is an industry leader in the FET sector in the country.

False Bay College (FBC) is one of the topperforming FET colleges in the country. Its vision is to be recognised as the most prestigious, successful and respected college in South Africa. The college is ISO 9001 certified. Celebrating its 10th anniversary in 2012, False Bay College has undertaken a brand review, introduced a new logo and moved into its newly renovated central offices in Muizenberg. The college has strong ties with industry and the community, and is proud of its international partnerships. The college aims to ensure that FBC continues to serve both its students and prospective employers with training that is both relevant and of a high quality.

and skills-training courses in a variety of fields: Engineering, Hospitality, Business, Information Technology, Education, Safety and Security, Tourism, and Yacht and Boat Building. The programmes offered are examined and certified nationally, and are designed in collaboration with commerce and industry, informed by scarce and critical skills.

Campuses in the Western Cape Fish Hoek campus Fish Hoek campus opened in January 2009 and focuses on training future business and IT leaders. This campus has been adapted to cater for students with disabilities. A Microsoft Academy has been established at this site.

Westlake campus

All permanent campuses boast modern facili- This campus is a recognised decentralised ties with Open Learning Centres, where stu- trade-test centre for artisans and has a repudents can study, and have access to the Internet, tation as a top engineering training facility. A computers and other learning resources. new high-tech boat building training facility has been established to meet the demands of Qualifications offered this growing industry. False Bay College offers vocational, occupational

Muizenberg campus

Muizenberg campus is the hospitality-training hub for FBC and also offers Educare and Tourism. Recently upgraded, the campus boasts three state-of-the-art kitchens and a beautiful training restaurant overlooking Muizenberg Beach.

Khayelitsha campus

The college has undergone a recent brand revitalisation. western cape business 2013

192

Ideally located between Mitchell’s Plain and Khayelitsha in Mew Way, this campus is easily accessed and


PROFILE

The state-of-the-art training kitchen.

Computers are readily accessible.

offers a wide variety of study options. This access-controlled campus features modern electrical and motor workshops.

Mitchell’s Plain campus Mitchell’s Plain campus offers different programmes during the year to suit the community’s skills needs. The campus offers a wide variety of full-time and part-time study options. The college remains focused on building a new state-of-the-art campus in Mitchell’s Plain.

Well-equipped workshops are vital.

Student support services College, South Peninsula College and Westlake The college prides itself on its student support Technical College) services at all campuses, which include career No of staff: 360 guidance, financial aid, personal counselling No of registered students: 7 316 and academic support. False Bay College pro- Faculties: Engineering, Business, Education vides access to students with disabilities and Studies, Safety and Security, Information Techhas a well-established inclusive-education nology, Yacht and Boat Building, Tourism and office. Hospitality Job placement support The college operates its own job placement office, employing five dedicated job placement officers who provide employers, at no cost, the opportunity to view the CVs of skilled graduates to consider for employment and work-based experience opportunities. They also follow this process through, to ensure that their graduates have support during the first months of their new employment.

Key facts and figures Year established: September 2002 (with the merging of Good Hope Community

Contact details Key contact people: Cassie Kruger, Chief Executive Officer Karin Hendricks, Deputy CEO: Education and Training Tel: +27 21 003 0600 Fax: 086 603 0669 (SA only) Physical address: Corner Main and Atlantic roads, Muizenberg 7945 Postal address: Private Bag X25, Tokai 7966 Email: cassie.kruger@falsebay.org.za Website: www.falsebaycollege.co.za

193

western cape business 2013


OVERVIEW

Call centres and BPO The BPO sector is growing fast.

A

Online resources Business Process enabling South Africa (BPeSA) Western Cape: www.bpesawesterncape.co.za National Department of Trade and Industry: www.dti.gov.za Wesgro: www.wesgro.co.za

western cape business 2013

194

Sector Highlights Major international companies are moving to Cape Town. • Everything Everywhere is here!

major companies

• Aegis • Fusion Outsourcing • Circa • Capita • Teleperformance • Merchants The Western Cape has a large and skilled workforce, can supply agents who talk ‘accent-neutral’ English and is in a similar time zone to European countries.

photo: stockxchnge

n analysis by Frost & Sullivan of the business process outsourcing (BPO) market in the retail and financial sectors in South Africa puts the 2011 revenues of the sector at R10.7-billion, and projects earnings in excess of R24-billion by 2016. Aegis Outsourcing South Africa says that the industry is growing at 10.5% year-on-year. Gareth Pritchard, CEO of Business Process enabling SA Western Cape (BPeSA) is excited about the big strides made in attracting large companies to Cape Town. The queries of customers of British Gas are now answered by South African call agents in Cape Town, working for Fusion Outsourcing, a WNS company. Everything Everywhere (servicing T-Mobile) and Serco (servicing Shop Direct) are two other huge new gains for the Western Cape BPO sector in 2012. The decision by giant Internet retailer Amazon to set up offices in Cape Town provided a big boost to the sector in 2010. A major development in 2012 was the acquisition by one of the UK’s top companies, Capita, of South African company Full Circle. Full Circle has helped companies set up operations in South Africa. MEC for Economic Development and Tourism Alan Winde points to the BPO sector’s employment of 33 500 agents and a value of R7.9-billion as reasons to believe in the sector’s growing significance to the Western Cape economy. ‘It is becoming a major player,’ says Winde. Set-up speed is one of the advantages that Cape Town can offer. ‘In Cape Town, Amazon call-centre operations were able to get up and running in four weeks, whereas in India it was six weeks.’ BPO does not only refer to call centres, although the Western Cape industry is dominated by that sector. Back-office work is one example of other BPO services offered, while another involves loading an aeroplane’s freight load – in Frankfurt! The loader does this via remote cameras and weighing machines. The Department of Trade and Industry (dti) has been proactive in establishing incentives for inward investment.


focus

Showcasing contact centre excellence The BPeSA Western Cape Contact Centre Awards, held at the Cape Town International Convention Centre, recognised service excellence in the sector at both agent and company level.

W

NS was the big winner at the 2012 BPeSA Western Cape Contact Centre Awards, walking away with four of a possible 12 awards. ‘This is the one time of the year that we get to acknowledge the people behind the scenes that make the Western Cape one of the most sought-after customer-service destinations in the world,’ says Gareth Pritchard, CEO of BPeSA Western Cape. The winners on the night were WNS (Support Services Individual of the Year, Manager of the Year, Community Spirit and Best Large Outsourced Contact Centre), Merchants (Agent of the Year and Team Leader of the Year), Amazon (Job Creation and Best Captive Outsourced Contact Centre), SA Commercial Direct (Best Small Outsourced Contact Centre), Metropolitan (Skills Development), CLEVVA (Best Innovation) and Omni HRC (Best External Support Services). ‘All our winners and nominees have something in common; they provide outstanding service delivery. I would like to congratulate all of the finalists and thank them for their role in helping to make South Africa a contact-centre destination of choice,’ says Gareth. The contact-centre sector in the Western Cape is responsible for approximately 33 000 direct jobs and generates in the region of R8-billion to the provincial GDP through local and international investment. ‘A large portion of unemployed people in the Western Cape are under the age of 25 and do not have a tertiary education. This makes the contact centre fundamental to the employment strategy of the province, as the majority of agents fall between the ages of 18 and 24 and

Nigel Pearce (MC), Alan Winde, Constance Simmons (Team Leader of the Year) and Fagri Semaar (Chairman BPeSA WC). only require a matric to enter into the sector,’ says Alan Winde, MEC for Finance, Economic Development and Tourism in the Western Cape. ‘I would once again like to extend my congratulations to all those who participated in this year’s awards – the contestants, their supporters, the judges, our guest speakers and all our sponsors. Thank you, we look forward to seeing you again next year,’ concluded Gareth. BPeSA Western Cape is an investment agency for the BPO sector in the Western Cape and facilitates the growth of the BPO and contactcentre industry. For more information, contact Patrick Gordon on +27 21 427 2900, email patrick @bpesawesterncape.co.za or visit www.bpesawesterncape.co.za

195

WESTERN CAPE BUSINESS 2013


OVERVIEW

Business support services The Western Cape’s varied economy needs multi-skilled support services.

T

Online resources Black Management Forum: www.bmfonline.co.za Cape Town Regional Chamber of Commerce and Industry: www.capetownchamber.com Entrepreneurs’ Organization: www.eonetwork.org Franchise Association of South Africa: www.fasa.co.za Services SETA: www.serviceseta.org.za western cape business 2013

196

Sector Highlights Business Western Cape is an initiative to represent the province’s several business chambers. • The Cape Chamber of Commerce has more than 3 000 members. 2010 survey, South Africa has 551 franchised systems operating about 30 000 outlets and employing about halfa-million people. The report, compiled by Franchize Directions, states that the sector generated R287.15-billion in 2009, with 37 660 new jobs being created in two years. Popular business-to-business franchise offerings include courier services, printing, signage, bin cleaning and organising travel.

photo: Anglo american

he Western Cape’s varied economy and the country’s divided history has resulted in the existence of several bodies that represent business interests. These include the Cape Chamber of Commerce and Industry (CCCI), the National African Chamber of Commerce and Industry (NAFCOC) and the Afrikaanse Handels Instituut (AHI). Business Western Cape is an umbrella organisation that aims to speak for all these chambers, while each of the chambers retains its status as a separate entity. Since 1804, the Cape Chamber of Commerce and Industry has been promoting business in the city and region and providing services to members. More than 3 000 businesses are members of the CCCI, which has a range of committees that deal with matters that go beyond the obvious trade and economic issues: ICT, transport and transport infrastructure, transformation and human capital development, for example. It hosts an annual Exporter of the Year competition. The Black Management Forum describes itself as a ‘thought leadership organisation’ that aims to support transformation in companies and sectors, and to support the development of management skills among its members. An international business networking organisation, Entrepreneurs’ Organization (EO), has a lively presence in the Western Cape. EO has more than 120 chapters in 41 countries, and the Cape Town branch has 50 owner-run companies with a combined turnover of R1.7-billion. The Western Cape’s economy includes fields as diverse as engineering and marine works, advertising, publishing, design, ICT, oil and gas, construction, fishing and insurance. This diversity means that the companies to which work gets outsourced also have to have a broad range of skills. Franchising is an ideal model for the business support services industry. According to the Standard Bank Franchise Factor


listings

Business organisations These chambers of commerce and industry are a helpful port of call for anyone wishing to do business in the Western Cape.

Cape Chamber of Commerce & Industry Physical address: Cape Chamber House, 19 Louis Gradner Street, Cape Town 8001 Postal address: PO Box 204, Cape Town 8000 Tel: +27 21 402 4300 Fax: +27 21 402 4302 Email: info@capechamber.co.za Website: www.capetownchamber.com

George Business Chamber Physical address: 111 Nedbank Centre, York Street, George 6530

Postal address: PO Box 24, George 6530 Tel: +27 44 874 3349 Fax: +27 44 873 0150 Email: info@georgechamber.co.za Web: www.georgechamber.co.za Offices open Mon-Fri 8am to 4pm

Oudtshoorn Business Chamber Physical address: Info Centre, Corner of Baron van Reede and Voortrekker Road Postal address: PO Box 74, Oudtshoorn 6620 Tel: +27 44 272 6637 Fax: 086 295 3929 Email: business@odnchamber.co.za Website: www.odnchamber.co.za

PROFILE

George Business Chamber The Chamber aims to be the leading voice of business in the Garden Route. Any business in the greater George area is wel- Additional member benefits come to apply for membership of the George • Members certificates • Certificates of Origin Business Chamber. • Monthly newsletter Reasons to join the Chamber • Seminars and workshops • The Chamber offers business credibility and • Invitations to all Chamber functions strengthens image • It speaks on behalf of business Contact details • It is the helping hand when things go wrong • It is a mine of reliable business information Key contact: • It helps members keep abreast of their Ingrid Cronje, Manager competition • It offers opportunities to promote one’s own Tel: +27 44 874 3349 business Fax: +27 44 873 0150 • It provides a valuable networking channel Email: info@georgechamber.co.za to create new business contacts Website: www.georgechamber.co.za

197

western cape business 2013


PROFILE

Business Western Cape The core focus of Business Western Cape is to be the unified voice for businesses in the metropolitan and Platteland regions of the Western Cape.

Business Western Cape (BWC) is committed to renewing itself as a major unified chamber of commerce – with a large and wide-reaching membership. It aims to provide meaningful services and communication geared at substantially unifying business chambers into a representative voice of business, in order to: • Engage relevant legislative structures in policy advocacy on behalf of the whole business community • Improve services by utilising the pockets of excellence of member organisations • Facilitate networking between all businesses • Facilitate networking between corporates and SMMEs • Promote black economic empowerment and economic growth for the benefit of the whole South African business community

Vision Business Western Cape’s vision is to create a western cape business 2013

growing, developing and inclusive economy for the Western Cape and ultimately South Africa, supported by a unified provincial, non-racial business chamber organisation. This will result in a better business climate in the Western Cape, Southern Africa and throughout the African continent.

Mission • To be a unified non-racial, multi-sectoral

organisation facing the economic and other challenges of business at national, regional and local level • To promote business and economic growth and development through business/enterprise development in every community throughout the Western Cape and the country • To contribute to black economic empowerment by linking big and small businesses through the chamber network

198


PROFILE

• To contribute to SMME growth and

development • To transform the economy so that all can share in the benefits that growth will bring, and also to create and sustain an environment in which businesses can grow and prosper

Values Business Western Cape, in all its dealings and among its members, will seek to promote: • Transparency and honesty in business dealings • Self-respect and respect for others • Responsible and accountable conduct • Broad-based empowerment • Enterprise development, capacity building and skills transfer • Principles of private enterprise and entrepreneurship • A proactive approach to business and social challenges • Non-racism and gender equality • An awareness of and adherence to sound business ethics and good corporate governance • Non-alignment to any political party • To develop and propagate a strong code of business conduct, and sustained by a sense of social responsibility • To contribute to sustainable job creation, poverty eradication, socioeconomic and human resource development • To incorporate environmental awareness and development

FABCOS (Foundation for African Business and Consumer Services) – chairperson Evan Mathews, who is also the current serving chairperson of Business Western Cape, together with the vicechairperson Bjorn Harmse of AHI AHI (Afrikaanse Handels Instituut) – chairperson Piet Badenhorst CCCI (Cape Chamber of Commerce and Industry) – executive director Viola Manuel WECBOF (Western Cape Business Opportunities Forum) – CEO Lesley Africa

Strategic objectives • To be the representative voice of business chambers in the Western Cape

• To ensure business and economic growth

through business/enterprise development in every community, town, city and metro in the province by supporting chamber delivery of needed services • To transform the economy so that all can share in the benefits that growth will bring through a process of deracialisation and integration

Members The constituent members of Business Western Cape are: SACCI (South African Chamber of Commerce and Industry) NAFCOC (National African Chamber of Commerce and Industry) – chairperson Mongezi Memani

Contact details Key contact person: René Hermanus, Business Support Administrator Fax: 086 292 0857 (SA only) Cell: 082 200 6884 Email: office@businesswesterncape.co.za

199

western cape business 2013


PROFILE

Cape Chamber of Commerce and Industry Established in 1804, the Cape Chamber of Commerce and Industry is the oldest member-based business organisation in Africa.

The Cape Chamber of Commerce is mandated to serve, enable and lead business in the Western Cape. This is achieved through a plethora of services and networking opportunities, as well as robust advocacy on behalf of business. Roughly two thirds of the chamber’s members are made up of small, medium and micro enterprises. While just over half of the members have turnovers under R5-million per annum, a substantial 14% have annual turnovers of over R50-million per annum. Although the chamber is attracting start-up members, the majority (60%) of organisations have been operating for more than 10 years, which speaks to the sustainable nature of businesses in the region.

Products and services The Cape Chamber of Commerce is constantly reviewing its service offering to ensure it remains relevant. Many of its services are aligned to international chambers of commerce, but it is mindful to keep its offering relevant to the local market, and to augment its offering to help companies reach export potential where appropriate.

• Document certification/certificates of origin • Carnet de Commerce • Business support department • African Commercial Dispute Settlement Centre

• Business advice • Human resources • Enterprise Development Fund • OCSACare – Occupational healthcare plan • Pension fund • Advocacy and legislative overview • Meeting rooms for hire • Advertising opportunities • Portfolio committees Key target markets • Business (small, medium and corporate) • Government Contact details

Key personnel: Bronwen Kausch, Executive Communication and Technology Manager Key contact people: Monique Johnstone, PR and Online Marketing Coordinator The following services are available to mem- Joy Kennedy, Digital Administrator bers as a baseline offering: • Seminars/symposia and workshops Tel: +27 21 402 4300 Fax: +27 21 402 4304 • Networking and building business contacts Email: monique@capechamber.co.za / • Conferences and major events bronwen@capechamber.co.za • Chapter and branch support Physical address: Cape Chamber House, • International trade development and 19 Louis Gradner Street, Foreshore, facilitation Cape Town 8001 • International trade desk – ‘bringing business Postal address: PO Box 204, to you’ Cape Town 8000 • International contacts Website: www.capechamber.co.za western cape business 2013

200


Established in 1804, the Cape Chamber of Commerce and Industry is the oldest memberbased business organisation in Africa. It is mandated to serve, enable and lead business. This is achieved through a plethora of services, networking opportunities as well as robust advocacy on behalf of business. According to our membership segmentation survey, roughly two thirds of the Chamber members are made up of small, medium and micro enterprises. While just over half of the members have turnovers under R5 million per annum, a substantial 14 percent have annual turnovers of over R50 million per annum. The Chamber can divide its products and services under three distinct functions: Serving Business The Cape Chamber of Commerce has always played a significant part in keeping its members informed of the latest issues which affect businesses both large and small. Speed networking events, information sessions, staff training and other events are well attended by both members and non-members. Landmark events such City meets Business and Business meets Cabinet allows Chamber members access to the executive of both the local and provincial governments. Enabling Business The tougher than normal economic climate of the last few years has required a much more pragmatic view and the Chamber is finding new ways to practically reach out and help businesses drive efficiencies. Our International desk and business support department have been set up to drive new business deals, assist companies reach export potential and help members run their business more efficiently and within the bounds of national compliance regulations. Leading Business One of the key functions of the Cape Chamber is advocacy. Lobbying on behalf of its members is gaining traction and the Chamber is now represented at the highest national levels, taking part in bargaining and negotiations at the National Economic and Development and Labour Council (NEDLAC) and many other local and provincial bodies.

For more details and to become a member of our organisation, visit www.capechamber.co.za or call us on 021 402 4300


listings

South African National Government An overview of South Africa’s national government departments.

S

outh Africa is a constitutional democracy with a three-tier system of government and an independent judiciary. The three tiers of government – national, provincial and local – all have legislative and executive authority in their own spheres, and are defined in the Constitution as ‘distinctive, interdependent and interrelated’. Legislative authority is vested in parliament, which is situated in Cape Town and consists of two houses, the National Assembly and the National Council of Provinces. Parliament is bound by the Constitution and must act within its limits.

The president, elected by the National Assembly from among its members, is the executive head of state and leads the cabinet. The president may not serve more than two five-year terms in office. The cabinet consists of the president, the deputy president and ministers. State institutions created to support constitutional democracy are the Public Protector; the Human Rights Commission; the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities; the Commission for Gender Equality; the Auditor-General and the Electoral Commission.

The Presidency

Performance, Monitoring and Evaluation in the Presidency Minister: Collins Chabane Physical address: Room 116, 2nd Floor, West Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5331/4 Fax: +27 12 321 8870 Email: abednigo@po.gov.za Website: www.thepresidency.gov.za

President: Jacob Gedleyihlekisa Zuma

Deputy President: Kgalema Motlanthe

National Government Departments

Departments in the Presidency National Planning Commission Minister: Trevor Andrew Manuel Physical address: Room 242, 2nd Floor, East Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 300 5795 Email: patti@po.gov.za Website: www.thepresidency.gov.za WEStern cape business 2013

Dept of Agriculture, Forestry and Fisheries Minister: Tina Joemat-Pettersson Physical address: 1st Floor, Block DA, 20 Agriculture Place, cnr Steve Biko Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria 0001 Tel: +27 12 319 7319 Fax: +27 12 321 8558 Email: ronikar@daff.gov.za Website: www.daff.gov.za

202


listings Department of Arts and Culture Minister: Paul Mashatile Physical address: 10th Floor, Kingsley Centre, 481 Church street, cnr Steve Biko and Pretorius streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3006 Fax: +27 12 440 4485 Email: minister@dac.gov.za Website: www.dac.gov.za

Department of Correctional Services Minister: Sibusiso Ndebele Physical address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Email: nomtobeko.tomga@dcs.gov.za Website: www.dcs.gov.za

Department of Basic Education Minister: Matsie Angelina Motshekga Physical address: Sol Plaatjie House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X895, Pretoria 0001 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Email: mabua.s@dbe.gov.za Website: www.education.gov.za

Department of Defence and Military Veterans Minister: Nosiviwe Mapisa-Nqakula Physical address: 4th Floor, Block 5, Armscor Building, cnr Delmas Avenue and Nossob Street, Erasmuskloof, Pretoria Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 Fax: +27 12 347 0118 Email: def-minister@mweb.co.za Website: www.dod.mil.za

Department of Communications Minister: Dina Pule Physical address: Block 3, Nkululeko House, 33 Iparioli Office Park, 399 Duncan Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8292 Fax: +27 12 362 6915 Email: moses@doc.gov.za Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs Minister: Richard Masenyani Baloyi Physical address: 87 cnr Hamilton and Proes streets, Arcadia, Pretoria 0001 Postal address: Private Bag X804, Pretoria 0001 Tel: +27 12 334 0705 Fax: +27 12 326 4478 Email: charlottem@cogta.gov.za Website: www.cogta.gov.za

Department of Economic Development Minister: Ebrahim Patel Physical address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Email: ministry@economic.gov.za Website: www.economic.gov.za Department of Energy Minister: Elizabeth Dipuo Peters Physical address: Travenna Office Campus, 75 Meintjies and Schoeman streets, Pretoria Postal address: Private Bag X646, Pretoria 0001 Tel: +27 12 444 4265 Fax: +27 12 444 4505 Email: zodwa.batyashe@energy.gov.za Website: www.energy.gov.za

203

WEStern cape business 2013


listings Department of Environmental Affairs Minister: Edna Molewa Physical address: North Tower, Fedsure Forum Building, cnr Pretorius and Lilian Ngonyi streets, Pretoria Postal address: Private Bag X447, Pretoria 001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: raganyag@dwa.gov.za Website: www.environment.gov.za Department of Health Minister: Aaron Motsoaledi Physical address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8085/81 Fax: +27 12 395 9165 Email: hlakun@health.gov.za Website: www.doh.gov.za Department of Higher Education and Training Minister: Blade Nzimande Physical address: Sol Plaatje House, 123 Schoeman Street, Pretoria Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 Fax: +27 12 323 5618 Email: makwetu.n@dhet.gov.za Website: www.dhet.gov.za Department of Home Affairs Minister: Grace Naledi Mandisa Pandor Physical address: FSI Building, 909 Arcadia Street, Hatfield, 0083 Postal address: Private Bag X741, Pretoria 0001 Tel: +27 12 432 6622 Fax: +27 12 432 6637 Email: minister@dha.gov.za Website: www.home-affairs.gov.za WEStern cape business 2013

Department of Human Settlements Minister: Tokyo Sexwale Physical address: Govan Mbeki House, 240 Walker Street, Sunnyside, Pretoria Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Email: ntsiki@dhs.gov.za Website: www.dhs.gov.za Department of International Relations and Cooperation Minister: Maite Nkoana-Mashabane Physical address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 0431 Fax: +27 12 323 1502 Email: minister@dirco.gov.za Website: www.dirco.gov.za Department of Justice and Constitutional Development Minister: Jeffrey Thamsanqa Radebe Physical address: Salu Building, 28th Floor, cnr Thabo Sehume and Francis Board streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 Fax: +27 12 315 1749 Email: ministry@justice.gov.za Website: www.justice.gov.za Department of Labour Minister: Mildred Oliphant Physical address: 215 Laboria House, cnr Schoeman and Paul Kruger streets, Pretoria Postal address: Private Bag X117, Pretoria 0001 Tel: +27 12 392 9620 Fax: +27 12 320 1942 Email: pamella.salusalu@labour.gov.za Website: www.labour.gov.za

204


listings Department of Mineral Resources Minister: Susan Shabangu Physical address: 4th Floor, Block 2C, Trevenna Campus, Cnr Meintjies and Schoeman streets, Sunnyside Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3999 Fax: +27 12 444 3145 Email: lerato.maibelo@dmr.gov.za Website: www.dmr.gov.za

Department of Public Works Minister: Thembelani (Thulas) Nxesi Physical address: 6th Floor, AVN Building, cnr Skinner and Andries streets, Pretoria Postal address: Private Bag X229, Pretoria 0001 Tel: +27 12 406 1967 Fax: +27 12 310 5182 Email: nambini.ngubo@dpw.gov.za Website: www.publicworks.gov.za

Department of Police Minister: Nathi Mthethwa Physical address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2819 Email: mashegoameliah@saps.gov.za Website: www.saps.gov.za

Department of Rural Development and Land Reform Minister: Gugile Nkwinti Physical address: 3rd Floor, Old Building, 184 Jacob Mare and Paul Kruger streets, Pretoria Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 8911 Fax: +27 12 323 3306 Email: nnotshe@ruraldevelopment.gov.za Website: www.ruraldevelopment.gov.za

Department of Public Enterprises Minister: Malusi Gigaba Physical address: Suite 401, 1090 Infotech Building, Arcadia Street, Hatfield, Pretoria Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1098 Fax: +27 12 431 1039 Email: mashige@dpe.gov.za Website: www.dpe.gov.za Department of Public Service and Administration Minister: Lindiwe Sisulu Physical address: Batho Pele House, 116 Proes Street, Pretoria Postal address: Private Bag X916, Pretoria 0001 Tel: +27 12 336 1063 Fax: +27 12 326 7802 Email: ester@dpsa.gov.za Website: www.dpsa.gov.za

Department of Science and Technology Minister: Derek Hanekom Physical address: 3rd Floor, Building No 53, CSIR Campus, Meiring Naude Road, Brummeria, Pretoria Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6798 Fax: +27 12 349 1041/8 Email: melanie.titus@dst.gov.za Website: www.dst.gov.za Department of Social Development Minister: Bathabile Olive Dlamini Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria Postal address: Private Bag X901, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 12 321 2502 Website: www.dsd.gov.za

205

WEStern cape business 2013


listings Department of State Security Minister: Siyabonga Cyprian Cwele Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700/57/91 Fax: +27 12 367 0749 Website: www.nia.dov.za

Department of Transport Minister: Benedict Martins Physical address: Room 4111, Forum Building, cnr Struben and Bosman streets, Pretoria Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3860 Fax: +27 12 328 3194 Email: mdletshes@dot.gov.za Website: www.transport.gov.za

Department of Sport and Recreation South Africa Minister: Fikile Mbalula Physical address: Regent Building, cnr Queen and Vermeulen streets, Pretoria Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 0795 Website: www.srsa.gov.za

Department of Water Affairs Minister: Edna Molewa Physical address: 1035 Sedibeng Building, 185 Schoeman street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: raganyag@dwa.gov.za Website: www.dwa.gov.za

Department of Tourism Minister: Marthinus van Schalkwyk Physical address: 10th Floor, North Tower, Fedsure Forum Building, cnr Pretorius and Van Der Walt streets, Pretoria Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 310 3611 Fax: +27 12 322 0082 Email: mwillemse@tourism.gov.za Website: www.tourism.gov.za

Department of Women, Youth, Children and People with Disabilities Minister: Lulu Xingwana Physical address: 36 Hamilton street, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 359 0011 Fax: 086 676 3390 (SA only) Email: tseleng@po.gov.za Website: thepresidency.gov.za

Department of Trade and Industry Minister: Rob Davies Physical address: Block A, 3rd Floor, the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 Fax: +27 12 394 0337 Email: lneethling@thedti.gov.za Website: www.thedti.gov.za WEStern cape business 2013

Government Communication and Information System (GCIS) Physical address: 356 Midtown Building, cnr Sisulu and Madiba streets, Pretoria Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 314 2127 Fax: +27 12 325 2030 Email: eben@gcis.gov.za Website: www.gcis.gov.za Independent Complaints Directorate (ICD) Physical address: CT Forum Building, 114 Vermeulen Street, Pretoria

206


listings Postal address: Private Bag X941, Pretoria 0001 Tel: +27 12 399 0000 Fax: +27 12 399 0204 Email: gracemohlala@icd.gov.za Website: www.icd.gov.za National Treasury Minister: Pravin Jamnadas Gordhan Physical address: 40 Church Square, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 315 5372 Fax: +27 12 323 3262 Email: minreg@treasury.gov.za Website: www.treasury.gov.za

Police Civilian Secretariat Physical address: 217 Pretorius Street, Vanerkom Building, Pretoria Postal address: Private Bag X922, Pretoria 0001 Tel: +27 12 393 2520 Fax: +27 12 393 2538 Email: irish.qhobosheanej@saps.og.za or xuban@saps.org.za Website: www.nationalsecretariat.gov.za South African Revenue Service Physical address: Lehae la Sars Building, 299 Bronkhorst Street, New Muckleneuk, Pretoria Postal address: Private Bag X923, Pretoria 0001 Tel: +27 12 317 2000 Fax: +27 10 208 5005 Website: www.sars.gov.za

Public Service Commission Physical address: Commission House, cnr Hamilton and Ziervogel streets, Arcadia, Pretoria Postal address: Private Bag X121, Pretoria 0001 Tel: +27 12 352 1000 Fax: +27 12 325 8382 Email: info@opsc.gov.za Website: www.psc.gov.za

Statistics South Africa Physical address: The De Bruyn Park, 170 Andries Street, Pretoria Postal address: Private Bag X44, Pretoria 0001 Tel: +27 12 310 8911 Fax: +27 12 310 8500 Email: info@statssa.gov.za Website: www.statssa.gov.za

National coat of arms The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance. Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth.

207

WEStern cape business 2013


PROFILE

Department of Labour’s Compensation Fund The Department of Labour’s Compensation Fund is a reputable provider of compensation for occupational injuries and diseases.

Constitutional mandate

Vision

The mandate of the Compensation Fund is derived from Section 27(1)(c) of the Constitution of the Republic of South Africa. In terms of this act, all South Africans have a right Shadrack Mkhonto, Compensation Fund to social security. The Commissioner Compensation Fund is then mandated to provide social security to all injured and diseased employees.

Legislative mandate The Compensation Fund is a public entity of the Department of Labour. The Fund administers the Compensation for Occupational Injuries and Diseases Act (130/1993 as amended by the COIDA 61/1997). The main objective of the act is to provide compensation for disablement caused by occupational injuries, or diseases sustained or contracted by employees, or for death resulting from such injuries or diseases, and to provide for matters connected therewith.

To be an employer of choice and an internationally reputable provider of compensation for occupational injuries and diseases, rehabilitation and reintegration services.

Mission • To utilise and leverage automated solutions

to provide efficient, quality, client-centric and accessible Compensation Fund services • To ensure effective rehabilitation and reintegration services, through reputable programmes • To ensure financial viability through efficient collections and prudent investments • To promote job-creation initiatives through socially responsible investments • To develop and retain a competent and content workforce

Values • Treating employees with care, dignity and respect

• Respecting and promoting client-centred

services, accountability, integrity and ethical behaviour • Learning and development • The Batho Pele principles • The principles of the department’s service charter The department inculcates these values through its performance management system.

The Fund generates its revenue from levies paid by employers, which consist mainly of annual assessments paid by registered employers on a basis of a percentage or fixed rate of the annual earnings of their employees. The Compensation Description of main services for Occupational Injuries and Diseases Act, • Payment of reasonable medical expenses to the injured employees however, makes provision for a minimum assessment to ensure that the assessment is • Payment of Temporary Total Disablement not less than the administration costs incurred. (TTD) for loss of earnings when the employee western cape business 2013

208


PROFILE was not working due to injury sustained on duty • Payment of Permanent Disablement (PD) to the employee who sustained up to 30% PD • Payment of monthly pension to the employee who sustained more than 30% PD • Payment of monthly pension to widow/ widower and children up to 18 years of age

Compensation for Occupational Injuries and Diseases Act To provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases, and to provide for matters connected therewith.

Department of Labour staff with a recipient of the Compensation Fund.

Programmes/projects/initiatives

Application The Compensation for Occupational Injuries and Diseases Act applies to all employers and their casual and full-time workers who, as a result of a workplace accident or workrelated disease: • Are injured, disabled or killed • Become ill This excludes: • Workers who are totally or partially disabled for less than three days • Domestic workers • Anyone receiving military training • Members of: °° The South African National Defence Force °° The South African Police Service °° Any worker guilty of willful misconduct, unless they are seriously disabled or killed °° Anyone employed outside of South Africa for 12 or more continuous months °° Workers working mainly outside of South Africa and only temporarily employed in the country The full act can be read online at: https://www.labour.gov.za All forms required when registering with the fund, and when applying for compensation, can be found online at: https://www.labour.gov.za

The department is embarking on the following projects in order to increase the efficiency of its services: • Decentralisation of services aimed at ensuring that the fund’s services are easily accessible to clients and stakeholders • Restructuring of the fund to ensure that service delivery is improved • Development of the Rehabilitation, Re-integration and Return-to-work Policy for employees who sustained occupational injuries and/or contracted diseases • Proposal to amend the Compensation for Occupational Injuries and Diseases Act (COIDA)

Benefits of registration Employers Employers are protected against civil claims if employees get injured on duty or contract occupational diseases.

Employees Employees who are injured on duty or who contracted occupational diseases can claim compensation for temporary or permanent disablement according to the degree of disablement and death. Reasonable medical aid expenses arising out of an injury on duty are payable for a period

209

western cape business 2013


PROFILE of two years, or longer if further medical treat- from their employer and take it to the doctor ment is needed, and if it will reduce the extent when they go for a visit. After the doctor has of the disability. filled in the form, workers must take it back to their employer. Workers must take any other Assessments forms the doctor gives them to their employer. An assessment is the annual payment which is paid by the employers to the Compensation Step 3: Keep in touch with the employer Fund to cover employees who are injured Workers must let their employers know when at work. their address changes and keep in touch with • The revenue of the Fund consists mainly them. Workers’ compensation will be sent to of annual assessments paid by registered their employer’s address, so it is important that employers on the basis of a percentage of their employer can find them. If employers do the annual earnings of their employees. The not send in the forms or the claims are taking rate is fixed per industry subclass. an inordinate time to be processed, workers must contact the nearest labour centre and Entities liable for registration report it. • All employers who employ one or more parttime or full-time employees must register Contact details with the Compensation Fund. • A separate registration is necessary for each Key personnel: separate branch of a business, unless an Shadrack Mkhonto, Compensation Fund arrangement for combined registration has Commissioner been made. • An employer should register with the Key contact people: Compensation Fund within seven days after Dikentsho Seabo, Deputy Director: the first employee was employed. Communication Themba Mdluli, Assistant Director: Claiming compensation – workers Communication When workers want to claim they must use the Philly Molonyama, Communications Officer following steps: Tel: +27 12 319 9443/112/123 Step 1: Fill in the form Email: dikentsho.seabo@labour.gov.za Workers must report their injury or disease to Email: themba.mdluli@labour.gov.za their supervisor or employer immediately. Their Physical address: cnr Hamilton Street and employer must report it to the Compensation Soutpansberg Road, Arcadia, Pretoria Fund and send in the necessary forms. Postal address: PO Box 955, Compensation House, Pretoria 0001 Step 2: Get forms from the doctor Website: www.labour.gov.za Workers must get the W.Cl.2 or W.Cl.1 form

western cape business 2013

210


listings

Department of Labour – Compensation Fund A guide to the key provincial contact people in the Department of Labour’s Compensation Fund, which is related to the Compensation for Occupational Injuries and Diseases Act (COIDA).

Eastern Cape

Limpopo

Tamsanqa Mgudane Assistant Director: COIDA Tel: +27 43 702 7525 Cell: +27 82 383 8111

Jacob Mpulwane Assistant Director: COIDA Tel: +27 15 290 1699 Cell: +27 82 886 6396

Free State

Mpumalanga

Anne-Marie Marais Assistant Director: COIDA Tel: +27 51 505 6248 Cell: +27 82 902 6910

Lerato Ramashobane Assistant Director: COIDA Tel: +27 13 655 8725 Cell: +27 82 908 2740

Gauteng: Johannesburg

Northern Cape

Patricia Mafata Assistant Director: COIDA Tel: +27 11 853 0478

Carol-Anne Dipico Assistant Director: COIDA Tel: +27 21 441 8054 Cell: +27 82 743 0848

Gauteng: Pretoria

North-West

Boipelo Derane Assistant Director: COIDA Tel: +27 12 309 5062 Cell: +27 78 801 1151

Tsholo Esiang Assistant Director: COIDA Tel: +27 18 387 8143 Cell: +27 82 908 1943

KwaZulu-Natal Nomfi Cweba Assistant Director: COIDA Tel: +27 31 366 2033 Cell: +27 82 887 3154

Western Cape Thozama Ngonyama Deputy Director: Business Services – Compensation Commissioner Tel: +27 21 441 8054 Cell: +27 82 438 6975

211

western cape business 2013


listings

Western Cape Provincial Government A guide to the Western Cape’s provincial government departments – www.capegateway.gov.za.

Office of the Premier

Department of Cultural Affairs and Sport

Premier: Helen Zille Physical address: 1st Floor, Provincial Legislature Building, 7 Wale Street, Cape Town 8001 Postal address: Private Bag X9043, Cape Town 8000 Tel: +27 21 483 4705 Fax: +27 21 483 3921/3421 Email: premier.westerncape@pgwc.gov.za Website: www.westerncape.gov.za

MEC: Ivan Meyer Physical address: 8th Floor, Protea Assurance Building, Greenmarket Square, Cape Town 8001 Postal address: PO Box 16385, Vlaeberg 8018 Tel: +27 21 483 9800 Fax: +27 21 483 9801 Email: charmaine.devos@westerncape.gov.za Website: www.westerncape.gov.za

Department of Agriculture

Department of Education

MEC: Gerrit van Rensburg Physical address: 2nd Floor, Protea Assurance Building, Greenmarket Square, Cape Town 8001 Postal address: Private Bag X9179, Cape Town 8000 Tel: +27 21 483 4700 Fax: +27 21 483 3890 Email: johan.coetzee@westerncape.gov.za Website: www.elsenburg.com

MEC: Donald Grant Physical address: 23rd Floor, Golden Acre Building, Adderley Street, Cape Town 8001 Postal address: Private Bag X9161, Cape Town 8000 Tel: +27 21 467 2523 Fax: +27 21 425 5689 Email: edumin@pgwc.gov.za Website: www.westerncape.gov.za

Department of Community Safety

Department of Economic Development and Tourism

MEC: Daniel Plato Physical address: 11th Floor, Waldorf Building, St Georges Mall, Cape Town 8001 Postal address: PO Box 5346, Cape Town 8000 Tel: +27 21 483 3871/3 Fax: +27 21 483 3874 Email: daniel.plato@pgwc.gov.za Website: www.westerncape.gov.za western cape business 2013

MEC: Alan Winde Physical address: 80 St Georges Mall, Waldorf Building, Cape Town Postal address: PO Box 979, Cape Town 8000 Tel: +27 21 483 9000 Email: ecohead@pgwc.gov.za Website: www.westerncape.gov.za

212


listings

Department of Health

Department of Social Development

MEC: Theuns Botha Physical address: 21st Floor, Provincial Administration Building, 4 Dorp Street, Cape Town 8001 Postal address: PO Box 2060, Cape Town 8000 Tel: +27 21 483 5417 Fax: +27 21 483 4143 Email: j.bouwer@westerncape.gov.za Website: www.westerncape.gov.za

MEC: Albert Fritz Physical address: 7th Floor, Union House, 14 Queen Victoria Street, Cape Town 8001 Postal address: Private Bag X9180, Cape Town 8000 Tel: +27 21 483 3858 Fax: +27 21 483 5077 Email: alexandra.abrahams@westerncape.gov.za Website: www.westerncape.gov.za

Department of Housing

Department of Transport and Public Works

MEC: Bonginkosi Madikizela Physical address: 4th Floor, ISM Building, 27 Wale Street, Cape Town 8001 Postal address: Private Bag X9083, Cape Town 8000 Tel: +27 21 483 4466 Fax: +27 21 483 3888 Email: elizabeth.cloete@westerncape.gov.za Website: www. westerncape.gov.za

MEC: Robin Carlisle Physical address: 8th Floor, Provincial Administration Building, 9 Dorp Street, Cape Town 8001 Postal address: PO Box 2603, Cape Town 8000 Tel: +27 21 483 2200 Fax: +27 21 483 2217 Email: dedlesse.smit@westerncape.gov.za Website: www.westerncape.gov.za

Department of Local Government, Environmental Affairs and Development Planning

Provincial Treasury

MEC: Anton Bredell Physical address: 9th Floor, Utilitas Building, 1 Dorp Street, Cape Town 8000 Postal address: Private Bag X9186, Cape Town 8000 Tel: +27 21 483 3915 Fax: +27 21 483 6081 Email: magdelenagriesel@westerncape.gov.za Website: www.westerncape.gov.za

MEC: Alan Winde Physical address: 7 Wale Street, 3rd Floor, Room 327, Cape Town 8000 Postal address: Private Bag X9165, Cape Town 8000 Tel: +27 21 483 3531 Fax: +27 21 483 3892 Email: finmin@westerncape.gov.za Website: www.westerncape.gov.za

213

western cape business 2013


listings

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

S

outh African local government has undergone considerable transformation over the past decade, as outlined in the Constitution of South Africa (1996). The Local Government: Municipal Structures Act of 1998 reduced the total number of municipalities in the country from 843 to 284 (now 283) and laid out criteria for determining whether an area should have a Category A Municipality (Metropolitan Municipalities), a Category B Municipality (Local Councils or Municipalities) or a Category C Municipality (District Municipalities). Six Metropolitan Municipalities were created, one of these being in the Western Cape – the City of Cape Town (the other metros being the City of Tshwane Metropolitan Municipality, Ekurhuleni Metropolitan Municipality and the City of Johannesburg

City of Cape Town Metropolitan Municipality Patricia de Lille, Executive Mayor Physical address: Civic Centre, Podium Block, 6th Floor, 12 Hertzog Boulevard, Cape Town 8001 Postal address: Private Bag X9181, Cape Town 8001 Tel: +27 21 400 1300 Fax: +27 21 400 1313 Email: mayor.mayor@capetown.gov.za Website: www.cityofcapetown.gov.za

Cape Winelands District Municipality CA de Bruyn, Executive Mayor Physical address: 51 Trappe Street, western cape business 2013

Metropolitan Municipality in Gauteng, eThekwini Municipality in KwaZulu-Natal and Nelson Mandela Bay Municipality in the Eastern Cape). Forty-seven District Municipalities were identified (the Western Cape has five district municipalities, namely West Coast District Municipality, Cape Winelands District Municipality, Central Karoo District Municipality, Overberg District Municipality and Eden District Municipality), as well as 230 Local Municipalities (with 24 in the Western Cape). In July 2008, the Municipal Demarcation Board proposed that Mangaung (Free State), Buffalo City (Eastern Cape) and Msunduzi (KwaZulu-Natal) municipalities change from Category B local municipalities to Category A metropolitan municipalities. This took place after the 2011 municipal elections. Worcester 6850 Postal address: PO Box 100, Stellenbosch 7599 Tel: 086 126 5263 Fax: +27 23 342 6768 Email: admin@capewinelands.gov.za Website: www.capewinelands.gov.za Local municipalities encompassed Breede Valley Local Municipality Tel: +27 23 348 2600 Fax: +27 23 347 3671 Website: www.breedevalley.gov.za Drakenstein Local Municipality Tel: +27 21 807 4500 Fax: +27 21 872 8054 Website: www.drakenstein.gov.za

214


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

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

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

George Local Municipality Tel: +27 44 801 9111 Fax: +27 44 801 9105 Website: www.george.org.za Hessequa Local Municipality Tel: +27 28 713 8000 Fax: +27 86 713 3146 Website: www.hessequa.gov.za

Witzenberg Local Municipality Tel: +27 23 316 1854 Fax: +27 23 316 1877 Website: www.witzenberg.gov.za

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

Central Karoo District Municipality

Knysna Local Municipality Tel: +27 44 302 6300 Fax: +27 44 302 6333 Website: www.knysnamunicipality.co.za

Edward Njadu, Executive Mayor Physical address: 63 Donkin Street, Beaufort West 6970 Postal address: Private Bag X560, Beaufort West 6970 Tel: +27 23 449 1000 Fax: +27 23 415 1253 Email: manager@skdm.co.za Website: www.skdm.co.za

Mossel Bay Local Municipality Tel: +27 44 606 5000 Fax: +27 44 606 5062 Website: www.mosselbaymun.co.za

Local municipalities encompassed Beaufort West Municipality Tel: +27 23 414 8100 Fax: +27 23 414 8105 Website: www.beaufortwestmun.co.za Laingsburg Local Municipality Tel: +27 23 551 1019 Fax: +27 23 551 1019 Website: www.laingsburg.gov.za Prince Albert Local Municipality Tel: +27 23 541 1320 Fax: +27 23 541 1321 Website: www.capegateway.gov.za www.princealbertmunicipality.com

Eden District Municipality Wessie van der Westhuizen, Executive Mayor Physical address: 54 York Street, George 6530 Postal address: PO Box 12, George 6530 Tel: +27 44 803 1300 Fax: +27 86 555 6303 Email: records@edendm.co.za Website: www.edendm.co.za

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

Overberg District Municipality Lincoin de Bruyn, Executive Mayor Physical address: 26 Long Street, Bredasdorp 7280 Postal address: Private Bag X22, Bredasdorp 7280 Tel: +27 28 425 1157 Fax: +27 28 425 1014 Email: info@odm.org.za Website: www.odm.org.za Local municipalities encompassed Cape Agulhas Local Municipality Tel: +27 28 425 5500 Fax: +27 28 425 1019 Website: www.capeagulhas.org

215

western cape business 2013


listings Overstrand Local Municipality Tel: +27 28 313 8000 Fax: +27 28 312 1894 Website: www.overstrand.gov.za Swellendam Local Municipality Tel: +27 28 514 8500 Fax: +27 28 514 2694 Website: www.swellenmun.co.za Theewaterskloof Local Municipality Tel: +27 28 214 3300 Fax: +27 28 214 1289 Website: www.twk.org.za

West Coast District Municipality

Local municipalities encompassed Bergrivier Local Municipality Tel: +27 22 913 6000 Fax: +27 22 913 1406 Website: www.bergmun.org.za Cederberg Local Municipality Tel: +27 27 482 8000 Fax: +27 27 482 1933 Website: www.cederbergmunicipality.co.za Matzikama Local Municipality Tel: +27 27 201 3300 Fax: +27 27 213 3238 Website: www.matzikamamun.co.za Saldanha Bay Local Municipality Tel: +27 22 701 7000 Fax: +27 22 715 1518 Website: www.saldanhabay.co.za

Harrold Cleophas, Executive Mayor Physical address: 58 Long Street, Moorreesburg 7310 Postal address: PO Box 242, Moorreesburg 7310 Tel: +27 22 433 8400 Fax: +27 86 692 6113 (SA only) Email: westcoastdm@wcdm.co.za Website: www.westcoastdm.co.za

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

Municipalities in the Western Cape

Metropolitan/District Municipality Boundary Local Municipality Boundary

WCDMA01

Eden

District Municipality

Oudtshoorn

Local Municipality

Northern Cape Matzikama

WCDMA05 Cederberg

Beaufort West

West Coast

Central Karoo

Bergrivier

WCDMA02

Saldanha Bay Swartland

Laingsburg

Eastern Cape

Prince Albert

Witzenberg

Cape Winelands

Kannaland

Theewaterskloof

Overberg

western cape business 2013

Overstrand

WCDMA04

Mossel Bay

George

Knysna

Bitou

Hessequa

Swellendam

Cape Agulhas

ATLANTIC OCEAN

Oudtshoorn

Eden

Breede Valley City of Drakenstein Cape Town Breede River/ Winelands Metropolitan Stellenbosch Municipality

INDIAN OCEAN

WCDMA03

216


PRINTING PUBLICATIONS THAT PEOPLE LOVE We may have the latest technology. But what really sets us apart is an old-fashioned passion for what we do. And we think that comes across in every book, magazine, diary and newspaper we print. telephone: (021) 929 6200

fax: (021) 939 1559

e-mail: ctp@ctpprinters.co.za

web: www.ctp.co.za


focus

Projects and strategies for change The South African Local Government Association is the voice and sole representative of local government in the country.

T

he South African Local Government Association (SALGA) is an autonomous association of municipalities with its mandate derived from the 2006 constitution of the Republic of South Africa. SALGA interfaces with parliament, the National Council of Provinces (NCOP) and cabinet as well as provincial legislatures. The association is a unitary body with a membership of 278 municipalities, with its national office based in Pretoria and offices in all nine provinces. Its mission is to be consultative, informed, mandated, credible and accountable. It aims to remain relevant to its members and provide value as it continuously strives to be an association that is at the cutting edge of quality and sustainable services.

Role of SALGA In line with its mandate, SALGA’s role is to:

• Represent, promote and protect the interests of local government

• Transform local government to enable it to fulfill its developmental role

• Raise the profile of local government • Ensure full participation of women in local

Cape municipalities. The purpose of the workshop was to share with executive mayors and municipal managers the international relations policy frameworks, processes and procedures, and to look at how best municipalities can harness these to their benefit and that of the country at large. The workshop covered the following three broad areas: • Overview of the foreign policy, and economic and public diplomacy • International relations procedures – protocol and international travel procedures • Introduction to protocol and etiquette

Anti-corruption/fraud strategy SALGA, in collaboration with the provincial Department of Local Government, would be assisting municipalities with the implementation of an anti-fraud/corruption strategy. For the current annual performance plan, SALGA would be assisting four local municipalities and one district municipality in the implementation of this strategy. A continuous assessment would be done, in terms of progress made, towards the end of the financial year.

government

• Perform its role as an employer body • Develop capacity within municipalities

MEC quarterly engagements

SALGA Western Cape engages on a quarterly basis with Anton Bredell, MEC for Governance and Local Government, Environment Affairs and international relations Development Planning, to strengthen interIn April 2012, SALGA, in collaboration with governmental relations and to highlight some DIRCO (Department of International Relations key local government challenges, such as and Cooperation), hosted an orientation work- unfunded mandates. shop on international relations for Western

WESTERN CAPE BUSINESS 2013

218


focus land-use approval, 46% for a health certificate (1% had conditional) and that fire clearance Eskom billing was the greatest hurdle (59%). There are over SALGA was approached by municipalities 1 500 unregistered ECD facilities, according to requesting support to deal with the issue of re- Sharon Follentine of the provincial Department evaluating their electricity distribution network of Social Development. The implementation in the areas where Eskom is the distributor. A plan of universal access to Grade R by 2014 number of municipalities raised this matter at does pose some challenges, according to the the SALGA Provincial Conference, and resolved Western Cape Department of Education. that Eskom should transfer the electricity distribution to municipalities. This process HIV and Aids council – Mossel Bay culminated in the identification of Saldanha SALGA facilitated the establishment of an HIV Bay Municipality as a pilot project. Other and Aids Council in Mossel Bay. The HIV and Aids municipalities expressing an interest were: Council serves as a coordinating structure that Overstrand, Theewaterskloof, Drakenstein and ensures effective service delivery of the proStellenbosch. grammes, through stakeholder engagements such as non-profit organisations and governBackyard dwellers mental departments. The Social Development SALGA Western Cape is in the process of Portfolio Councillor champions the programme drafting a provincial position paper on back- with the support of HIV and Aids coordinators. yard dwellers and their impact on municipal services. The municipal services under inves- Strategic goals tigation in the domain are: waste management, The SALGA Strategic Plan 2012-2017 is the culelectricity, sewerage and water provision on mination of an extensive consultative process private and publically owned land. The aim of through the governance structures as outlined the exercise is to articulate the impact of back- in the SALGA Constitution. The strategic goals yard dwellers on municipalities, and to identify have been developed in alignment and response gaps on a micro and holistic level. to the mandate of developmental local government, as contemplated in the white paper for local government. These goals are as follows: Community development • To facilitate universal access to sustainable Early Childhood Development (ECD) municipal infrastructure and services SALGA Western Cape has adopted a resolu- • Safe and healthy environment and tion to lobby for legislation as well as funding communities for the expansion of early childhood care • Planning and economic development at a local level facilities. A provincial learning event under the leadership of Cllr C Meyer was recently • Effective, responsive and accountable local governance for communities held at Drakenstein Municipality to explore with stakeholders areas of coordination and • Human capital development in local service delivery gaps, with the view to faciligovernment tate an action plan for change. Early Learning • Financially and organisationally capacitated Resource Unit director Alison Lazarus made municipalities participants aware of an audit of unregistered • Effective and efficient administration ECD sites in the Western Cape (2011), which states that there are currently 47% awaiting www.salga.org.za

Municipal infrastructure services

219

WESTERN CAPE BUSINESS 2013


index

INDEX Absa Business Bank������������������������������������������������160 Absa Private and Islamic Banking����������������������36 Accelerate Cape Town�����������������������������������������������44 AGCO Agricultural Company���������������������������������78 Airports Company South Africa (ACSA)��������124 Amabamba Fencing������������������������������������������������133 Black Management Forum (BMF)������������������������42 Boland College����������������������������������������������������������188 Breede-Overberg Catchment Management Agency (BOCMA)�������������������������140

National Department of Agriculture, Forestry and Fisheries��������������������������������������85, 90 National Department of Labour – Compensation Fund���������������������������208 National Empowerment Fund (NEF)���������������176 Nedbank Western Cape�����������������154, 156, 158 Northlink College����������������������������������������������������186 Office of the Premier������������������������������������������������12 Old Mutual South Africa�����������������168, 170, 172 Petroleum Agency South Africa�������������������� 2, 98

Business Process enabling South Africa (BPeSA) – Western Cape��������������������������������������195

Pioneer Fishing������������������������������������������������������������93

Business Western Cape (BWC)�������������������������198

South African Black Entrepreneurs

Cape Chamber of Commerce���������40, 123, 200

Forum (SABEF)�����������������������������������������������������������182

Cape Town Partnership�������������������������������������������38 City of Cape Town������������������������������������������������������18

South African Local Government Association (SALGA)�����������������������������������������������218

Collect-a-Can�������������������������������������������������������������������5

Standard Bank�������������������������������������162, 164, 166

College of Cape Town��������������������������������189, 190

TD Shipping & Clearing����������������������������������������129

CTP Printers����������������������������������������������������������������217

Transnet Freight Rail����������������������������������������������121

Deloitte�������������������������������������������������������������������������������7

Transnet Port Terminals����������������������������� 130, IBC

Dromedaris Visserye�������������������������������������������������94

Transnet Rail Engineering���������109, 110, 112, 114, 116, 118

Entrepreneurs’ Organization��������������������������������43 False Bay College����������������������������������������������������192 George Business Chamber���������������������������������197 George Municipality��������������������������������� 47, 50, 52 Global Africa Network�����������������������������������11, 182 HGTS Tours���������������������������������������������������������������������95 Industrial Development Corporation (IDC)�����������������������������������������������������143 Lesedi Nuclear Services����������������������������145, 146 Murray & Roberts�����������������������������������������135, 136 western cape business 2013

220

RE/MAX of Southern Africa���������������������������������138

Tronox Namakwa Sands���������������������������������������101 Tsogo Sun�����������������������������������������������������������������������69 University of South Africa (UNISA)�������������������IFC University of the Western Cape (UWC)���������������������������������������������184 USB Executive Development Ltd���������������9, 183 Wesgro�������������������������15, 16, 32, 34, 67, 74, OBC West Coast District Municipality������������������������55 Western Cape Ministry of Finance, Economic Development and Tourism��������������26


THE WESTERN CAPE DESTINATION MARKETING, INVESTMENT AND TRADE PROMOTION AGENCY – SOUTH AFRICA

WESTERN CAPE

Inspiring new ways

Website: wesgro.co.za Tel: +27 21 487 8600

www.tourismcapetown.co.za


Western Cape Business 2013