South African Business 2018 edition

REGION
Refined petroleum was the single biggest earner
for the Western Cape in 2015, with exports valued at
R18.2-billion (Wesgro).
The province has a diverse manufacturing sector
ranging from textiles, clothing, footwear and
furniture to coke and refined petroleum products.
Several significant foreign investments have been received
into the Western Cape in recent years: Hisense,
GlaxoSmithKline and Kimberly-Clark, among others.
Saldanha on the West Coast is one of South Africa’s
busiest ports. Apart from being home to several trawler
fleets, it is the principal iron-ore export port and is
gearing itself to service the continent’s oil and gas
industry and to be a steel manufacturing hub. Mining
is becoming an increasingly important sector, with
titanium, zirconium, phosphate and limestone being
among the most important finds.
Nearly 70% of South Africa’s wine comes from
the Cape Winelands District area (Stellenbosch, Paarl,
Robertson). A good percentage of this wine is exported
but the wine estates themselves attract tourists.
Tourism in the Winelands has matured beyond
day-trips from Cape Town to incorporate wellness
spas, adventure tourism and even game farms boasting
the Big Five.
Manufacturing is concentrated on processing
grapes and fruit into wine, juice, brandy, dried
and tinned fruit products. Dairy manufacturer
Parmalat has an award-winning cheese-making facility
in Bonnievale. Robertson is known for roses and
thoroughbred horses. Stellenbosch is home to its
eponymous university and houses the headquarters
of several large companies.
Mossel Bay is home to South Africa’s main gas processing
plant while George is a node of manufacturing,
trade and administration. Knysna and Plettenberg
Bay are favoured tourist destinations.
The Klein Karoo has its own wine route, and contains
the country’s Port Capital in Calitzdorp, which
hosts an annual festival to celebrate its main product.
Fruit, vegetables and ostriches are other main
products of the Klein Karoo.
Economic future
According to the provincial treasury, the fast-growing
sectors to 2020 will be construction, financial services
(and real estate and business services) and transport,
storage and communication. Financial services is
expected to make the biggest contribution overall.
The Provincial Government of the Western Cape
and the private sector are collaborating to support
projects that will best boost economic growth and
create jobs: it is called Project Khulisa and it is due to
run to 2019. Sector examples include:
Oil and gas
With the number of oil rigs passing around the Cape
on their way either to the rich fields on both sides of
Africa, this is a sector that can grow exponentially.
Saldanha Bay has been identified as a hub for rig repair.
Tourism
The sector already contributes R17-billion to the provincial
economy and jobs are created quite quickly
in this sector. A project to increase the number of
seats available on aeroplanes flying into Cape Town
International Airport, Cape Town Air Access, has
reaped remarkable success. Bidding for big events like
the World Rugby Sevens tournament has also paid off.
Agri-processing
By playing to the Western Cape’s strengths, which
include an excellent reputation for fruit and wine
in the international market, the province wants to
take the agri-processing sector beyond the R12-
billion that the sector already contributes to the
local economy.
Capital
Cape Town
Population 6 200 100
Area 129 462km 2
Premier
Languages
Helen Zille (DA)
Afrikaans, English, Xhosa
159 SOUTH AFRICAN BUSINESS 2018