South African Business 2018 edition

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SPECIAL FEATURE As part of the Oceans Economy strategy within Operation Phakisa, a unit within the National Department of Public Works has been created, the name of which explains its mandate – the Small Harbours and State Coastal Property Development unit (SH&SCPD). The key objectives of the Small Harbours and State Coastal Property Development unit are to: • attract investment in state coastal maritime infrastructure and properties • grow businesses • create jobs • stimulate economic growth • redistribute wealth. The new unit has four main tasks: it lets out state coastal property for economic development; it manages state coastal properties (including all occupied and vacant Admiralty Reserve, land parcels, buildings, estuaries and unproclaimed harbours); it oversees the maintenance of small harbours and coastal properties and it is responsible for a special intervention programme to repair and maintain 12 proclaimed fishing harbours in the Western Cape. South Africa is bordered by the ocean on three sides. In 2010 the ocean contributed approximately R54-billion to South Africa’s GDP and accounted for approximately 316 000 jobs. Studies suggest that the ocean has the potential to contribute up to R177-billion to GDP and between 800 000 and one-million direct jobs. A series of investment conferences were launched in each of South Africa’s coastal provinces in 2017, introducing the investors community to “Small Harbours and State Coastal Property Development”. A wide range of sectors in the Northern Cape, Western Cape, Eastern Cape and KwaZulu-Natal are being targeted for investment. The scheme aims to attract a minimum of R12- billion in investment proposals, generate over 2 000 job opportunities in the short to medium term and 500 permanent jobs over the long term. The products generated should be viable and contribute to growing the economy, small businesses should have a chance to be part of large-scale manufacturing and construction initiatives, and the regularisation of business activities along the coastal belts will promote increased revenue for local municipalities through the collection of rates and municipal services. The country’s 2 800km of coastline already supports many communities and businesses but the potential to increase and improve yields is enormous. At the moment, there are more than 300 businesses leasing state-owned land in sectors ranging from mining, farming and fishing to logistics, leisure and retail. The SH&SCPD unit wants to increase these opportunities in partnership with other national government departments such as National Treasury, the Department of Agriculture, Forestry and Fisheries and the Department of Environmental Affairs, provincial governments, district municipalities and local municipalities. Several priority projects have been identified, but the scope for further smaller projects is huge. Much will depend on the initiative of local business people and local municipalities. The first five priorities identified under the project are: 1. development of the harbour at Port Nolloth, Northern Cape 2. development of the harbour at Port St Johns, Eastern Cape 3. development of a new harbour at Port Edward, KwaZulu-Natal 4. repair and maintenance of proclaimed fishing harbours, Western Cape 5. one priority project per coastal municipality (on Public Works land). State coastal land and buildings will be available to private-sector investors to achieve any of the following objectives: expand an existing business; create a new business; stimulate the local economy; create new jobs; generate revenue; deepen economic transformation. Investment proposals will be evaluated on a set of criteria that include: • scale of investment • projected growth of business and turn over • retention and creation of jobs • degree of empowerment • project revenue • appropriateness with regard to zoning • commitment to support small, medium and micro-enterprises (SMMEs) and localisation. SOUTH AFRICAN BUSINESS 2018 48
SPECIAL FEATURE Local economic development Economic sectors that have been identified as suitable for local economic development through investment are Education and Training; Renewable Energy; Farming; Fish Processing and Packaging; Food and Beverages; Hospitality; Infrastructure Development; Logistics; Maintenance and Repair (Vessels and Harbour Infrastructure); Manufacturing and Engineering Services; Mining; Pipelines and Pump Houses; Rescue, Safety and Security; Sport and Recreation; Tourism; Transport (Commercial and Leisure); Water and Waste Management. The range of sectors and business opportunities available to potential investors into the Small Harbours and State Coastal Property Development project is wide. They include: • Water theme parks • Fishing and fish processing • Fuel supply • Special Economic Zones • Desalination • Energy production • Caravan parks/holiday resorts • Shipwreck museums • Yacht mole facilities • Transport (ferries and water taxis) • Energy production • Public beaches • Slipways • Warehousing • Breweries and distilleries • Aquaculture • Mariculture • Small ship/boat-building • Ship maintenance and repairs • Restaurants • Retail • Fish processing factories • Offices • Tourism • Ice-making and supplies • Education (Maritime and Aquaculture Training Centres) • Renewable energy Small harbours Small harbours can play a big role in driving new economic activity. Small harbours are also important in terms of safety, security and safeguarding the territorial integrity of the South African state. As a first step in the small harbours programme, 12 Proclaimed Fishing Harbours in the Western Cape were identified and work began on a series of projects to start the revival process: repairing slipways, towing away sunken vessels and dredging. The repair and maintenance project should be completed by March 2019. Many more creative and value-adding interventions lie ahead, and are expected to be undertaken 49 SOUTH AFRICAN BUSINESS 2018
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