Eastern Cape Business 2017 edition

A REGIONAL OVERVIEW OF THE
EASTERN CAPE
PROVINCE
With massive new investments in the automotive sector, renewable energy and agriprocessing,
the Eastern Cape is set to expand on its strengths and create new opportunities
in the Oceans Economy.
The largest mall to be constructed in South
Africa since 2004 has opened in Port
Elizabeth. The Bay West Mall is a sign of
confidence in the Eastern Cape economy.
Other major investments in the automotive sector
(by established players such as Volkswagen SA
and Mercedes-Benz SA and by two large Chinese
concerns) and in energy (wind and gas generation)
are the cause of this optimism. The agri-processing
sector continues to attract new investments, such
as Famous Brands’ new tomato paste factory at the
Coega Industrial Development Zone.
With 250 shops, an ice rink and cinemas, the
R2-billion Bay West Mall is the first part of what will
become the 320ha Baywest City Precinct on the
western edge of Port Elizabeth. It is a regional facility
that is attracting shoppers from towns such as
Jeffrey’s Bay and Humansdorp, but the long-term
plan envisages an entire city being developed on
the site. Abacus Asset Management and the Billion
Group are the joint developers. The Billion Group
is led by Sisa Ngebulana who made his start in
property in East London. Billion’s other Eastern
Cape asset is the BT Ngebs Mall in Mthatha.
The Oceans Economy at this stage is an idea,
but it is an idea with massive potential. National
government has several programmes to promote
ship-building and repair, aquaculture, offshore oil
and gas, marine protection and governance, and
marine transport and manufacturing. The Nelson
Mandela Metropolitan University (NMMU) is building
an Oceans Campus and already has several
research chairs studying this potentially very lucrative
field.
The province’s coastlines stretches along
800km and it has three ports and two associated
industrial development zones geared to attracting
investments in new sectors. The Port of Port
Elizabeth took delivery of two new tugs in 2016,
part of a R1.4-billion plan by Transnet National
Ports Authority to increase efficiency at South
Africa’s harbours.
Two major airports at Port Elizabeth and
East London provide good air links and smaller
towns such as Mthatha and Bhisho have airports.
Mthatha has recently received upgrades and SA
Express announced in 2016 five direct flights per
week to and from Cape Town.
EASTERN CAPE BUSINESS 2017
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