Eastern Cape Business 2017 edition
The 2017 edition of Eastern Cape Business is the 10th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide to the Eastern Cape Province. The Eastern Cape enjoys an abundance of natural and human resources, as well as established industrial infrastructure that drives the economy of the province. This includes three ports and two industrial development zones which are home to a wide range of manufacturers and exporters. The 2017 edition includes an in-depth look at the province’s two Industrial Development Zones, a focus on skills development and investment climate information from the Nelson Mandela Business Chamber and the Border-Kei Chamber of Business.
The 2017 edition of Eastern Cape Business is the 10th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide to the Eastern Cape Province. The Eastern Cape enjoys an abundance of natural and human resources, as well as established industrial infrastructure that drives the economy of the province. This includes three ports and two industrial development zones which are home to a wide range of manufacturers and exporters.
The 2017 edition includes an in-depth look at the province’s two Industrial Development Zones, a focus on skills development and investment climate information from the Nelson Mandela Business Chamber and the Border-Kei Chamber of Business.
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SPECIAL FEATURE<br />
The Umzimvubu Multipurpose Development<br />
Project is an impressive development that incorporates<br />
a multi-purpose dam to supply water for new<br />
irrigation, hydropower generation and domestic<br />
water supply.<br />
The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation is<br />
a development financier and it is supporting enterprises<br />
in the growing ICT and film sectors through<br />
the <strong>Eastern</strong> <strong>Cape</strong> Information Technology Initiative<br />
(ECITI).<br />
Economy<br />
Both the of the province’s metropolitan municipalities<br />
are centres of manufacturing and have their own<br />
industrial development zones. The East London<br />
Industrial Development Zone (ELIDZ) is very strong<br />
in the automotive components sector, with several<br />
companies providing services to Mercedes-Benz SA.<br />
Mercedes-Benz exports its cars out of the Port of East<br />
London and the factory, which regularly wins quality<br />
accolades, manufactured its one-millionth vehicle in<br />
2015.<br />
East London also has manufacturing capacity in<br />
food and beverages (Nestlé, Cadburys), pharmaceuticals<br />
(Aspen), packaging (MPact) and batteries (First<br />
National Batteries). Summerpride Foods make pineapple<br />
juice, a speciality of the province.<br />
The Coega IDZ (CIDZ) is served by the Port of<br />
Ngqura and is close to Port Elizabeth. The biggest<br />
news for CIDZ in 2016 was the announcement of an<br />
R11-billion investment by Chinese state auto manu-<br />
facturer Beijing Automobile Corporation (BAIC) and<br />
South Africa’s Industrial Development Corporation.<br />
This follows the R600-million investment of First<br />
Automotive Works (FAW), also a Chinese enterprise.<br />
Famous Brands has made its second investment into<br />
CIDZ, adding a tomato paste factory to its dairy.<br />
The Dedisa gas-fired power plant started operating<br />
at CIDZ in 2016, and national government<br />
announced that Coega would be one of the sites<br />
for a 1 000MW Liquefied Natural Gas (LNG) plant.<br />
The value to the regional economy of the latter project<br />
is estimated at R25-billion.<br />
The <strong>Eastern</strong> <strong>Cape</strong> has been the destination of<br />
choice for renewable energy investors. A quarter of<br />
the projects so far approved in the national private<br />
producers’ programme have been allocated to the<br />
<strong>Eastern</strong> <strong>Cape</strong>, mostly in wind energy.<br />
One of the greatest strengths of <strong>Eastern</strong> <strong>Cape</strong><br />
manufacturing is in automotive and automotive<br />
parts. With Mercedes-Benz SA in East London,<br />
Port Elizabeth is home to Volkswagen SA, General<br />
Motors, Ford (engines) and component manufacturers<br />
like Goodyear, Continental Tyre SA, SJM Flex SA,<br />
Bridgestone, Halberg Guss and Shatterprufe. Port<br />
Elizabeth is a leader in the manufacture of catalytic<br />
converters where Corning, BASF, Formex, Umicore<br />
Catalyst, Eberspacher and Tenneco South Africa are<br />
some of the companies in the field.<br />
Geography<br />
The <strong>Eastern</strong> <strong>Cape</strong> extends over 169 580 square kilometres,<br />
representing 13.9% of South Africa’s land mass.<br />
The dry western interior is one of the country’s premier<br />
sheep-rearing destinations.<br />
The mountainous regions of the north and east<br />
of the province support timber plantations while<br />
the coastal belt in the south-west is well-watered<br />
and is good for dairy farming. The province has<br />
spectacular beaches stretching from the surfer’s<br />
paradise at Jeffrey’s Bay all the way to the famed<br />
Wild Coast.<br />
The province has a strong agricultural base. Aside<br />
from being one of the world’s major sources of mohair,<br />
the province offers perfect farming conditions<br />
for a wide range of produce. The fertile Langkloof<br />
9 EASTERN CAPE BUSINESS <strong>2017</strong>
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