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 />
renewable energy and aquaculture having built<br />
their infrastructure and started trading. The skills<br />
relevant to the automotive sector and the automotive<br />
parts sector – huge elements of the <strong>Eastern</strong><br />
<strong>Cape</strong> economy – are transferable to renewable<br />
energy manufacturing, or to ship-building.<br />
Incentives include tax breaks from the South<br />
African Revenue Service, subsidised interest rates<br />
from the Industrial Development Corporation,<br />
subsidies for employees earning below a certain<br />
level and for training, incentives and grants from<br />
the Department of Trade and Industry (dti) and<br />
from national electricity utility Eskom. The SEZ is<br />
also a Customs Controlled Area.<br />
Within the dti’s Manufacturing Competitiveness<br />
Enhancement Programme, there is a Green Energy<br />
Efficiency Fund.<br />
The national independent power suppliers’<br />
programme, whereby private companies or consortiums<br />
bid to build renewable energy plants,<br />
has won international praise for its efficiency. The<br />
<strong>Eastern</strong> <strong>Cape</strong> has been particularly attractive to<br />
wind power producers. The Port of Ngqura’s ability<br />
to receive the massive components of wind turbines<br />
has been a boon to the project developers.<br />
Coega IDZ hosts several solar and wind component<br />
manufacturing facilities. Investors include<br />
DCD Wind Towers and Electrawinds. ILB Helios<br />
produces solar panels units at the ELIDZ.<br />
Coega IDZ<br />
The Coega IDZ is home to the gas-fired Dedisa<br />
Peaking Power Plant and was named in 2016 as<br />
the preferred site for a 1 000MW concession for a<br />
Liquefied Natural Gas (LNG) plant. When a private<br />
investor is found, Coega IDZ will have significant<br />
new energy infrastructure.<br />
Another potential game-changer is the possibility<br />
that a manganese smelter could be built<br />
at the IDZ. The Port of Port Elizabeth has for many<br />
years exported manganese.<br />
The recent announcement that the Port of<br />
Ngqura will soon host a new liquid bulk handling<br />
facility expands the perception that energy is becoming<br />
a speciality for Coega. Transnet National<br />
Ports Authority (TNPA) and Oiltanking Grindrod<br />
Calulo have signed an agreement in this regard.<br />
This will create a new tank farm for the <strong>Eastern</strong><br />
<strong>Cape</strong> when the lease for petroleum storage<br />
facilities at the Port of Port Elizabeth expires.<br />
In the 2015/16 period, the Coega Development<br />
Corporation (which runs the IDZ) created 18 366<br />
jobs through projects in the IDZ and its infrastructure<br />
development programme elsewhere in the<br />
province. Seventeen additional investors signed<br />
up, valued at R26.9-billion. More than 96 000 jobs<br />
have been created since the IDZ was launched.<br />
The latest investment into the Coega IDZ is<br />
from Beijing Automobile International Corporation<br />
(BAIC), who will take a 65% stake in an R11-billion<br />
joint venture with the Industrial Development<br />
Corporation with the intention of producing 100<br />
000 vehicles. First Automotive Works (FAW) has<br />
already established a R600-million assembly plant<br />
in Zone 2.<br />
East London IDZ<br />
The East London IDZ has a major dairy in Sundale,<br />
a diamond cutting and polishing works in Matla<br />
Diamond Works, and investors in steel, aquaculture<br />
and solar panel manufacturing. It also has a strong<br />
suite in logistics, with DHL Freight, UTi Logistics,<br />
Milltrans and Bigfoot Express Freight all present in the<br />
zone. But it is the presence of specialist logistics company,<br />
Vehicle Delivery Service, which reveals the IDZ’s<br />
strongest sector, automotive and automotive parts.<br />
Within the IDZ is the Automotive Supplier<br />
Park (ASP) which in turn is located in the Customs<br />
Controlled Area within a 10km radius of Mercedes-<br />
Benz South Africa, the East London Airport, the<br />
highway and the Port of East London.<br />
Feltex is represented by no fewer than six operations,<br />
including Feltex Automotive Trim, Feltex<br />
Fehrer (Mercedes-Benz seat pads and head rests)<br />
and Feltex Trim and Caravelle Carpets.<br />
Other automotive companies include RG BROSE<br />
(doors), Boysen (exhaust systems), Automould,<br />
TI Automotive Fuel Systems, Molan Pino<br />
(polypropylene foam) and Yanfeng Automotive<br />
Interiors.<br />
15 EASTERN CAPE BUSINESS <strong>2017</strong>