Eastern Cape Business 2018 edition

EASTERN CAPE
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE EASTERN CAPE PROVINCE
2018 EDITION
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Water Scarcity in South Africa
Sazile Qweleka, Amatola Water’s Operations Optimisation Manager,
presents the case for new thinking about wastewater recycling and re-use.
With most parts of South Africa experiencing a severe drought,
the severity of the water shortage in the country is inescapable.
Dam levels in the Eastern Cape continue to decline, despite rains
that have brought some relief. According to a recent report by the
National Department of Water and Sanitation, the total storage
of water in the Eastern Cape stands at 56.1%, compared to the
same time last year when the average dam levels were at 66.4%.
This trend, coupled with the severe drought conditions, an increasing
population and industrial growth, and environmental
degradation, forces us to look at accelerated innovations in water
resources and water services delivery in order to sustainably
meet future water demands.
In her budget speech in May 2017, the Minister of Water and
Sanitation, Nomvula Mokonyane, highlighted the country’s
heavy reliance on surface water as a concern. She added that it
was for this reason that the Department was planning to ensure
that there is a mix of surface and ground water, which includes
options such as groundwater; wastewater re-use (grey water);
desalination; and rainwater harvesting, among others.
Wastewater re-use, recycled or reclaimed or grey water refers to
former wastewater that has been treated to remove solids and
certain impurities, and then re-used for a variety of applications
including landscaping and irrigation, for example.
Although costly, many coastal cities appear to prefer desalination
as a solution to the water crisis. However, unlike its desalination
counterpart, an added advantage of wastewater recycling and
re-use is that it requires far less electricity.
A resource, not waste
We need to start dealing with wastewater differently and explore
wastewater re-use and recycling as a resource rather than waste.
Leading the cities in this area is the city of Durban, which is
home to the country’s first private water recycling plant. The
idea for the plant was born in 1993 out of concern for the area’s
increasing demand and limited water resources. This plant was
later commissioned in 2001.
The plant treats 47.5-million litres of domestic and industrial
wastewater to a near-potable standard for sale to industrial customers,
with an added benefit of a lower tariff when compared
to the normal tariff. The plant has helped to free up sufficient
drinking water for approximately 300 000 people in the area.
In turn, this has reduced the demand for potable water and
the quantity of effluent that is returned into the environment.
Using Durban as an example of a success story of how wastewater
recycling and re-use can be managed and used, it is clear that the
future of water sustainability lies in looking at sources of water
that will not only mitigate the effects of the drought, but also
complement the existing sources.

PROVIDING
high quality laboratory services and
reliable testing results to our clients
As the first ISO 17025:2005 accredited laboratory in the Eastern Cape, the Amatola Water lab is
assured to provide the highest standards of quality in laboratory services.
This nationally recognised accreditation confirms that Amatola Water has a quality management
system and the technical requirements in place to offer water sample analysis in line with SANS 241
standards, and provide reliable and accurate results data through a comprehensive water quality
monitoring and management programme - giving quality assurance to customers that water
quality standards are being met.
Amatola House
6 Lancaster Road, Vincent, East London
Tel: (043) 707 3700
aw@amatolawater.co.za
www.amatolawater.co.za

CONTENTS
CONTENTS
Eastern Cape Business 2018 Edition
Introduction
Foreword 5
A unique guide to business and investment in the Eastern Cape.
Special features
Regional overview 6
The Eastern Cape is creating a new Big Five as maritime
activities, renewable energy and tourism grow in importance to
the provincial economy.
Renewable energy is creating new opportunities 14
The Eastern Cape is a wind power hot-spot.
International events are driving the tourism industry 18
St George’s Park cricket ground is a world leader in lighting.
Economic sectors
Agriculture 40
The Eastern Cape is South Africa’s top livestock provider.
Forestry 44
Thousands of hectares have been identified for new planting.
Aquaculture 45
An aquaponics project will provide food for poor people.
Agriprocessing 46
Expanding agriprocessing will create jobs.
Manufacturing 48
Clusters are promoting niche manufacturing.
Automotive and components 50
Beijing Automotive’s new factory is a major boost for the
sector.
Water 52
A large project is planned for the Umzimvubu River.
EASTERN CAPE BUSINESS 2018
4

ENGINEERED
EFFICIENCY
A SPECIALISED INDUSTRIAL COMPLEX FOR GROWTH ORIENTED
AUTOMOTIVE MANUFACTURERS
fluid pipes
sun visors
door modules
plastic
components
head liner
parcel tray
fuel tank
impact
dampers
wheels & tyres
cockpits carpets seat components
boot
liner
full exhaust system
suspension
components
The East London IDZ Automotive sector is home to 16 operational automotive manufacturers. These world renowned
manufacturers are 1st and 2nd tier component suppliers to global auto players such as Mercedes-Benz, BMW,
Volkswagen and General Motors. With tailor made solutions to suit each investor, the East London IDZ boasts a 16
hectare custom built Automotive Supplier Park (ASP) from which components and specialised services destined for
the local and export market depart.
The ASP is also home to the first Metal Surface Treatment (aluminium treatment and E-Coating) facility in the greater
Border area. Fitted with state of-the-art technology, the facility has installed value adding services to the automotive
sector, thereby enhancing the attractiveness of the IDZ by promoting shared services to create efficiencies, through
enabling infrastructure which can be used by multiple investors. This world class ASP’s appeal has sparked interest
from both local and international manufacturers. As such, plans are at an advanced stage to expand its foot print to
meet current and future demand.
Through the ELIDZ’s customised solutions, these component manufacturers are able to:
• Access dedicated utilities and services specially designed to stimulate industrial productivity, expansion and
export competitiveness
• Experience time and cost savings arising from shared logistical and supply chain arrangements
To take advantage of a comprehensive package of industry support assistance, national trade and export promotion
incentives, call us now.
T: 043 702 8200 | E: cyndi-lee@elidz.co.za | www.elidz.co.za

CONTENTS
Education and training 54
Nelson Mandela University has launched an Ocean Sciences
Campus.
Banking and financial services 56
New banking licences are being issued.
Development finance and SMME support 58
Aquaponics and forestry are receiving support.
Government
Eastern Cape Provincial Government 60
An overview of the Eastern Cape provincial government
departments.
Eastern Cape Local Government 61
An overview of the Eastern Cape municipalities.
References
Sector contents 38
Index64
Maps
Eastern Cape regional map. 9
Eastern Cape municipal map. 63
Free State
LESOTHO
KwaZulu-
EASTERN CAPE PROVINCE
Rouxville Zastron
Matatiele Natal
Britstown
Bethulie
Ixopo
R56
N12 De Aar
Mount
Aliwal North
Colesburg Oviston
Lady Grey
Mount Kokstad
Northern Cape
R58
Fletcher
Ayliff
Burgersdorp
Port Edward
Hanover
Jamestown Barkly
R61
N10
East Maclear Mount Frere
N1
Steynsburg
N6 Dordrecht
N2
Victoria West
R56
Middelburg
Molteno
Elliot
Lusikisiki
Indwe
Hofmeyr
Mthatha
Three Sisters
Queenstown
Port St Johns
R61
Western Cape
Tsomo
Tarkastad
Coffee Bay
Beaufort West Graaff-Reinet
Cradock
Sada Cathcart
N
R61
R63 Somerset
Aberdeen
Stutterheim
Butterworth
Pearston East Adelaide Fort
Komga
N9
Beaufort
Cookhouse
Bhisho N2
Klipplaat
Rietbron
N10
King William's
Town EAST LONDON
Willowmore
Kirkwood
Grahamstown
Steytlerville
Paterson
N2
Hamburg
INDIAN OCEAN
Uniondale
R72
Joubertina
N9
Uitenhage
Port Alfred
Motorway
Knysna N2
Humansdorp
Main Road
Kareedouw
PORT ELIZABETH
Railway
Plettenberg Bay
Jeffreys Bay
EASTERN CAPE BUSINESS 2018
6

CREDITS
Publisher: Chris Whales
Publishing director: Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Rugshaana Abrahams and
Tyra Martin
Production: Lizel Olivier
Ad sales: Sydwell Adonis, Nigel
Williams, Gavin van der Merwe,
Sam Oliver, Gabriel Venter,
Jeremy Petersen, Shiko Diala, Joseph
Gumbo, Vanessa Wallace, Reginald
Motsoahae and Siya Sthunda.
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
manager: Edward MacDonald
Printing: FA Print
Eastern Cape Business
A unique guide to business and investment in the Eastern Cape.
. The 2018 edition of Eastern Cape Business is the 11th issue of
this highly successful publication that, since its launch in 2006,
has established itself as the premier business and investment
guide for the Eastern Cape.
The Eastern Cape’s investment and business opportunities are
highlighted in this publication. In addition to the regular articles providing
insight into each of the key economic sectors of the province,
there are special features on the role of the renewable energy sector
on the region’s future and on the growth of tourism (spurred by the
hosting of international events such as the 2018 IRONMAN 70.3 World
Championship, the first-ever cricket Test match to be played at night
at St George’s Park and Vodacom Origins of Golf events at St Francis
Links). All of the major business chambers in the province have made
contributions to the journal.
To complement the extensive local, national and international distribution
of the print edition, the full content can also be viewed online at
www.easterncapebusiness.co.za. Updated information on the Eastern
Cape is also available through our monthly e-newsletter, which you can
subscribe to online at www.gan.co.za, in addition to our complementary
business-to-business titles that cover all nine provinces as well as our
flagship South African Business title.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
CREDITS
DISTRIBUTION
Eastern Cape Business is distributed internationally on outgoing
and incoming trade missions, through the Eastern
Cape Development Corporation (ECDC); to foreign offices in
South Africa’s main trading partners around the world; at top
national and international events; through the offices of foreign
representatives in South Africa; as well as nationally and
regionally via chambers of commerce, tourism offices, trade
and investment agencies, provincial government departments,
municipalities and companies, as well as major airport lounges.
COPYRIGHT | Eastern Cape Business is an independent publication published
by Global Africa Network Media (Pty) Ltd. Full copyright to the
publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd. CREDITS | Cover:
Globeleq’s Jeffreys Bay wind farm has installed capacity of 138MW and
was one of the first wind power facilities to come on stream as part of
the national governmnet’s independent power producers’ programme.
Pictures supplied by Thinkstock.com, VW South Africa, Nelson Mandela
University and Transnet National Ports Authority.
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 1995-1310
DISCLAIMER | While the publisher, Global Africa Network
Media (Pty) Ltd, has used all reasonable efforts to ensure that
the information contained in Eastern Cape Business is accurate
and up-to-date, the publishers make no representations as to the
accuracy, quality, timeliness, or completeness of the information.
Global Africa Network will not accept responsibility for any loss or
damage suffered as a result of the use of or any reliance placed
on such information.
7
EASTERN CAPE BUSINESS 2018

A REGIONAL OVERVIEW OF THE
EASTERN CAPE PROVINCE
The Eastern Cape is creating a new Big Five as maritime activities, renewable
energy and tourism grow in importance to the provincial economy.
The Big Five is a well-known concept describing
the most sought-after game animals
to be spotted on safari. The Eastern
Cape is moving towards an economic
equivalent, where five sectors will underpin the
provincial economy. For many years the Eastern
Cape has relied on two giants to drive growth:
agriculture and the automotive industry.
The latest trends suggest that three other sectors
are playing an important role in advancing economic
progress in the coastal province: the maritime
sector (including oil and gas and logistics); renewable
energy (primarily wind); and an expanded
tourism sector.
Historically, wool and ostrich feathers were the
region’s first exports and these items are still in the
export basket (with wool more prominent than ostrich
feathers). In time, the Eastern Cape also became
a global leader in mohair, the luxury fibre taken
from Angora goats. This position has strengthened
in recent years. The fertile Langkloof Valley in the
west has enormous deciduous fruit orchards and
the Alexandria and Grahamstown area produces
pineapples, chicory and dairy products. The Eastern

SPECIAL FEATURE
Cape is the leading livestock province in terms of
numbers of sheep and cattle and produces a quarter
of South Africa’s milk.
The manufacturing facilities of Volkswagen
South Africa (in Uitenhage) and Mercedes-Benz
South Africa (East London) are at the core of the
province’s important automotive sector. It was to
support this sector that industrialisation took place
in the province. Smelters and metal works were
built to service car makers and automotive component
manufacturers. Ford engines are built in Port
Elizabeth and a wide range of makers of automotive
glass, catalytic converters, vehicle tyres and other
parts are found in Uitenhage, Port Elizabeth and
at the Industrial Development Zone (IDZ) in East
London.
New investments into this sector are coming
from both international and local investors. Two
Chinese car makers have recently invested in the
Coega IDZ, First Automotive Works (FAW) and
Beijing Automobile Corporation (BAIC). Local giants
Volkswagen SA and Mercedes-Benz SA have
invested heavily in increased capacity for new lines
of production.
New impetus
The three sectors identified above have all received
significant boosts in recent months.
In the maritime sector or Oceans Economy,
national government has named the Coega IDZ
as the site for a 1 000MW Liquefied Natural Gas
(LNG) plant. The value to the regional economy of
the project is estimated at R25-billion. A gas-fired
power plant (Dedisa) started operating at Coega
in 2016, and there are plans to expand this sector.
Since the company Aegean Bunkering Marine
Services was licensed in 2016 by the South African
Maritime Safety Authority (SAMSA) and Transnet
to supply bunker fuel to ships passing through
Algoa Bay, an additional 845 ships have used
these services, adding more than R70-million to
the local economy.
With the purchase by large companies like
Statoil from Norway of a significant stake in exploration
rights off the coast of the province, interest
in offshore drilling is picking up. ExxonMobil is the
approved operator of the Transkei-Algoa licence
area, which covers about 45 000km². Statoil is in
another partnership with OK Energy in another
field. Exploration activity will mean more work
on the maintenance and supply of ships in East
London and Port Elizabeth.
The launch of a specialist Ocean Sciences
Campus at the Nelson Mandela University is another
factor supporting the growth of maritime
activities.
The renewable energy sector is similarly supported
by educational institutions in the province,
which provide research and skilled graduates who
can take up jobs in the sector. The University of
Fort Hare is studying biogas as a possible fuel for
public transport in partnership with the United
Nations Industrial Development Organisation
and United States Agency for International
Development.
The Eastern Cape has become the country’s
top site for wind farms and the East London IDZ,
using turbines made by a local manufacturer,
Adventure Power, aims to bolster supply security
with its own 1.8MW wind farm.
The overall picture for renewable energy in the
province is positive, but there have been setbacks,
not least in the closure of DCD Wind Towers, an
Industrial Development Corporation-backed venture
that was supposed to manufacture wind towers
from its plant in the Coega IDZ. Uncertainty
about the national independent producers’ programme
led to the plant’s closure in 2016.
The Eastern Cape’s beaches and natural beauty
have been attractive to tourists for many years,
but recent initiatives to expand the province’s offerings
are paying off. With a focus on events and
“adventure tourism”, visitor numbers are steadily
growing. The province aims to be a “Top Three”
domestic destination by 2020. Spending by tourists
has grown from R2.4-billion in 2013 to R4.1-
billion in 2015 and the average length of stay (5.3
days) is the best in South Africa.
Recent investments by the Eastern Cape Parks
and Tourism Agency include the construction of
a conference centre at the Cape Morgan Nature
Reserve. The hosting of the 2018 IRONMAN 70.3
9 EASTERN CAPE BUSINESS 2018

SPECIAL FEATURE
World Championship event is evidence that the
strategy of attracting events to the Eastern Cape is
working. There will be significant financial spin-offs
from this international event.
Assets
The Eastern Cape extends over 169 580 square
kilometres, representing 13.9% of South Africa’s
land mass. The dry western interior is one of the
country’s premier sheep-rearing destinations.
The mountainous regions of the north and east
of the province support timber plantations while
the coastal belt in the south-west is well-watered
and is good for dairy farming. The province has
spectacular beaches stretching from the surfer’s
paradise at Jeffreys Bay all the way to the famed
Wild Coast.
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 has added five direct flights per week to
and from Cape Town.
The Umzimvubu Multipurpose Development
Project is a large development plan that incorporates
a multi-purpose dam to supply water for new
irrigation, hydropower generation and domestic
water supply.
The Eastern Cape Development Corporation is
a development financier and it is supporting enterprises
in the growing ICT and film sectors through
the Eastern Cape Information Technology Initiative
(ECITI).
Alfred Nzo District Municipality
Towns: Matatiele, Mount Frere, Mount Ayliff
The smallest district is in the mountainous northeast,
with hiking trails for tourists. There is scope
for expansion of tourist activities, and a transfrontier
park between South Africa and Lesotho could
boost the area’s economy.
Subsistence agriculture and forestry are the major
economic activities. There have been several
investments in forestry in recent years.
Amathole District Municipality
Towns: Cathcart, Stutterheim, Morgan Bay,
Willowvale, Butterworth, Mazeppa Bay, Alice,
Bedford
The rural Amathole District surrounds the metropolitan
area of Buffalo City. Pineapple and forestry
are two of the most important agricultural activities.
Popular resorts on the Wild Coast attract many
tourists to the area. Hogsback and other towns near
the Amatole Mountains offer beautiful scenery and
popular beaches. The main campus of the University
of Fort Hare is located at Alice.
Sarah Baartman District Municipality
Towns: Graaff-Reinet, Humansdorp, Jeffreys
Bay, Grahamstown
The western part of the province contains the biggest
municipality and is one of the biggest contributors
to provincial GDP. Large commercial farms in
the Karoo produce high-quality meat, wool and
mohair, while the coastal belt has dairy farming
and some forestry. The Kouga Valley is a big deciduous
fruit producer, while the Kirkwood/Addo area
is known for its citrus. Sarah Baartman has three of
the region’s national parks and several private game
farms. Grahamstown hosts the National Arts Festival,
Rhodes University and several fine schools.
Chris Hani District Municipality
Towns: Middelburg, Molteno, Dordrecht,
Cradock, Queenstown, Lady Frere, Elliot
Sheep farming is an important part of the economy.
Some coal is found in the north and tourist activities
include fly-fishing. The Foodcorp factory in Molteno
manufactures Ouma rusks. Queenstown is a centre
for cattle farming and has some manufacturing
activities. The Mountain Zebra National Park is near
Cradock. The Grootfontein Agricultural College and
Research Station is in Middelburg, and the Marlow
Agricultural College is near Cradock.
OR Tambo District Municipality
Towns: Mthatha, Coffee Bay, Port St Johns,
Qumbu, Bizana, Flagstaff
OR Tambo District Municipality encompasses
some of the province’s least-developed areas and
EASTERN CAPE BUSINESS 2018
10

SPECIAL FEATURE
contains one of South Africa’s most important
ecological areas, the Pondoland Centre of Plant
Endemism. Mining is already pursued in some
areas but plans for titanium mining on seaside
dunes are being contested. A Wild Coast Spatial
Development Initiative exists to plot further development.
Forestry is a big employer.
Joe Gqabi District Municipality
Towns: Aliwal North, Burgersdorp, Lady Grey,
Rhodes, Barkly East, Ugie
Cattle and sheep farming make up 80% of land
use, while commercial forestry is a big contributor
to employment. There are large forestry
plantations at Ugie and Mount Fletcher. Maize is
grown along the Orange River and wheat in the
foothills of the Drakensberg mountains. Tiffindell
has been revived as a ski resort.
Quick facts:
Capital: Bhisho
Major cities: Buffalo City Metropolitan Municipality
(Bhisho, East London and King William’s Town) and
Nelson Mandela Bay Metropolitan Municipality,
(Port Elizabeth and Uitenhage)
Languages: 78.8% isiXhosa, 10.6% Afrikaans, 5.6%
English
Population: 6.9-million
Share of total South African population: 12.7%
The province’s population of 6.9-million makes it
the country’s third most populous province, with
about 15% of the national population.
EASTERN CAPE PROVINCE
Free State
LESOTHO
KwaZulu-
Natal
Rouxville Zastron
Matatiele
Britstown
Bethulie
Ixopo
R56
N12 De Aar
Mount
Aliwal North
Colesburg Oviston
Lady Grey
Mount Kokstad
Northern Cape
R58
Fletcher
Ayliff
Burgersdorp
Port Edward
Hanover
Jamestown Barkly
R61
N10
East Maclear Mount Frere
N1
Steynsburg
N6 Dordrecht
N2
Victoria West
R56
Middelburg
Molteno
Elliot
Lusikisiki
Indwe
Hofmeyr
Mthatha
Three Sisters
Queenstown
Port St Johns
R61
Western Cape
Tsomo
Tarkastad
Coffee Bay
Beaufort West Graaff-Reinet
Cradock
Sada Cathcart
N
R61
R63 Somerset
Aberdeen
Stutterheim
Butterworth
Pearston East Adelaide Fort
Komga
N9
Beaufort
Cookhouse
Bhisho N2
Klipplaat
Rietbron
N10
King William's
Town EAST LONDON
Willowmore
Kirkwood
Grahamstown
Steytlerville
Paterson
N2
Hamburg
INDIAN OCEAN
Uniondale
R72
Joubertina
N9
Uitenhage
Port Alfred
Motorway
Knysna N2
Humansdorp
Main Road
Kareedouw
PORT ELIZABETH
Railway
Plettenberg Bay
Jeffreys Bay
11
EASTERN CAPE BUSINESS 2018

INTERVIEW
Black Management
Forum – Eastern Cape
Building a capable development state.
Please outline the main objectives of the Black Managenent
Forum.
The BMF is a non-racial, thought leadership organisation founded in
1976, with the main purpose of influencing socio-economic transformation
in pursuit of socio-economic justice, fairness and equity. The BMF
has been keeping corporate South Africa in check and encouraging
participation of the broader South African stakeholders. The organisation
stands for the development and empowerment of managerial
leadership, primarily among black people, within organisations and
the creation of managerial structures and processes which reflect the
demographics and values of the wider society. Whereas the BMF is
non-partisan, it is not apolitical. The BMF is not neutral on matters of
transformation but rather pro-transformation.
Cuma Dube, Provincial
Secretary - BMF Eastern Cape
What is the BMF’s current focus?
Public sector reform for the building of a capable development state
and understanding the role of the black professional in driving the
transformation agenda.
What are the most recent achievements of the BMF in the
Eastern Cape?
The BMF Eastern Cape in 2017 successfully provided a platform and
hosted panel discussions regarding the challenges facing black professionals
in public service. The discussions tackled the roles of officials,
managers and politicians; procurement and corruption; managerial
excellence, the recruitment and the retention of the best talent into
public service. The role of the black professional was interrogated and
whether there is reputational risk for the black professional in public
service. These discussions culminated in a research report with which
we aim to continue our engagements with the political leadership,
civil society, labour and government officials towards strengthening
the state.
The Black Management Forum has always enjoyed a cordial and
productive relationship with other civil society organisations, labour and
the government. Our events and programmes are regularly attended
by representatives of these organisations and institutions and ideas are
shared in the Eastern Cape. Communication, coordination and bilateral
initiatives can be improved. There is real work to be done in the Eastern
Cape and it must begin with strengthening these relationships.
BIOGRAPHY
With an LLB from the University
of Fort Hare, a Master’s in
Sustainable Development and
a diploma in development and
renewable energy, Cuma Dube
advises the Chris Hani District
Municipality on low emissions
and is the Managing Director
of SIG Energy. Cuma is the former
Executive Director of the
Eastern Cape Youth Chamber
of Commerce and was the BMF
Eastern Cape’s Young Professional
of the Year (2015) and in
The Sowetan’s Top 100 Young
Bosses of the Year (2016).
EASTERN CAPE BUSINESS 2018
12

East London Industrial
Development Zone
INTERVIEW
Incentives are attracting new investors, as ELIDZ Chief
Executive Officer, Mr Simphiwe Kondlo, explains.
What are the most attractive incentives for investors?
A number of incentives assist our investors to lower their operational
costs and maximise their profits. Specialised Customs Controlled
Area benefits include: VAT exemption on imported goods, capital
equipment and electrical and water supply; no import duties on raw
materials and other consumables for manufacture, goods for storage
and capital goods used in the custom controlled area. There are also
specialised local incentives such as preferential land rental and utility
rates, competitively priced land, access to national manufacturing and
other generic government incentives. Additionally, after the finalisation
of the transition process from an IDZ to a Special Economic Zone (SEZ)
there will be new incentives such as reduced corporate income tax.
Simphiwe Kondlo
Have you received any new investments?
Despite the gloomy economic outlook, the ELIDZ managed to buck
the trend and surpass its own investment target by attracting four
new investors valued at R1.6-billion combined. These developments
augur well for the diversification of our investment portfolio. Once fully
operational, the new investments will yield an estimated 1 422 jobs.
Our geographic location, quality sea and airports, abundance of
natural resources, skills and world-class infrastructure bodes well for
the growth of export-oriented industries. As such, the ELIDZ has hosted
numerous delegations on fact-finding missions.
What support services does the ELIDZ offer?
We offer soft landing support to investors through the provision of
business streamlining and support services. These aid investors in
the completion of investments and the start-up of local operations.
A skilled team of experts assists with relocation planning, market
research and intelligence, business set-up requirements including
company registration, compliance, access to government services
and incentives, labour recruitment and skills development facilitation.
Will the upgrades to the Port of East London assist?
Our value proposition rests heavily on access to sound infrastructure
such as freight, road and rail. Government has been making notable
progress in revitalising infrastructure for the good of the region.
Upgrades to the port will grow our international footprint and further
widen the scope of the ELIDZ.
BIOGRAPHY
Mr Simphiwe Nicholas Kondlo,
the Chief Executive Officer of
the ELIDZ, holds a Master’s
Degree in Engineering Management
and has more than
23 years’ experience spanning
various fields including civil and
agricultural engineering. With
him at the forefront, the ELIDZ
is a front-runner in the field and
continues to flourish as a multisector
Industrial Development
Zone.
13
EASTERN CAPE BUSINESS 2018

FOCUS
A bank focused on U
Ubank—servicing the broader working market in South Africa since 1975.
Long-standing financial services provider,
Ubank has grown over the years and has
succeeded in entrenching itself primarily
within the gold and platinum mining
communities.
For over 40 years, Ubank has provided basic financial
services to mineworkers and their families.
Initially called Teba Cash Financial Services, the
entity was formed to provide mineworkers with
basic financial services during a time when other
financial institutions largely ignored this sector
of the market.
These included facilitating the remittance of
funds to families and dependents in the rural and
labour-sending areas using a linked account facility.
In the early 1990s, as South Africa was undergoing
fundamental political change as a country, the
Godsell, Motlatsi Commission was formed. This led
to the transition from a savings fund into a commercial
bank. In June 2000, Ubank (then Teba Bank),
was granted a banking licence, although its ownership
remained in the form of a trust managed by
trustees who were elected by the National Union of
Mineworkers (NUM) and the South African Chamber
of Mines. The beneficiaries of the trust are the bank’s
customers.
In 2006, it was decided by NUM in conjunction
with the Congress of South African Trade Unions
(COSATU) to extend the banking services to other
workers and it was, in reality, a workers bank. Ubank
comes from a tradition of savings and has continued
to strongly promote savings as part of its offering.
In 2007, Ubank welcomed a new vision, mission,
set of values and strategy. Essentially, this saw Ubank
set itself up to become the “Workers Bank of Choice”.
In October 2010, the name of the bank was
changed to Ubank and was launched as a retail
bank for the mass market. Since the birth of the new
brand and strategy, various initiatives to improve
and expand the business have been delivered.
The need for this change was driven by the desire
to extend services beyond the niche market that
Ubank had traditionally serviced, broadening its
customer base and introducing products and services
relevant to this market. The first phase of the
re-positioning focused on changing the corporate
identity and introducing an innovative packaged
product range relevant to the needs of the people of
South Africa, entrenching the bank amongst workers,
their families and their communities.
The Ubank name was derived from the bank’s
proud identity, heritage and uniqueness. The logo
represents the fingerprint of the workers who have
built the bank over 40 years into a truly homegrown
South African bank. Ubank serves the primary banking
needs of close to 500 000 individuals, safeguarding
over R3 billion worth of their deposits.
Ubank offers basic banking products that
can be described as follows:
• Transaction accounts
• Debit cards (issued with VISA)
• Lending products (e.g personal loans)
• Savings (fixed deposits, Save Together)
• Funeral plan products
• Cellphone banking (SMS notifications).
Ubank is driven by a social consciousness that
underpins all they do – their customers are their
owners and they exist to serve them through
the provision of financial services that meet their
changing needs and improve their lives. One of
the pillars driving the Ubank business strategy is
community development. Investing in the communities
in which they operate forms a critical
part of how they do business, hence the bank’s
commitment to allocate 4% of the pre-tax profits
to community development annually.
Driven by the social objective of improving
the quality of their community’s lives, Ubank’s
EASTERN CAPE BUSINESS 2018
14

CSI focus is on empowering its communities
through community investment in sustainable
educational programmes.
The nature of the business ensures that community
development and participation remains
at the core of how Ubank conducts its business.
This is to ensure that continuous and sustainable
community investment initiatives are made that
benefit their customers and the communities
where they operate.
The mandate and plan to service the broader
working market in South Africa have become
imperative in order to extend affordable financial
services to South Africa. Ubank has a strong
presence and customer accessibility and they are
proud of their long association with the mining industry,
including mineworkers, mining companies,
all Labour Unions and the Chamber of Mines, who
have played a significant role in the development
of this bank.
15
EASTERN CAPE BUSINESS 2018

SPECIAL FEATURE
Renewable energy is creating new
opportunities
The Eastern Cape is a wind power hot-spot.
The Eastern Cape is home to two of the
eight Renewable Energy Development
Zones (REDZs) designated in a national programme.
The Environmental Management
Services unit within the Council for Scientific and
Industrial Research (CSIR) was responsible for identifying
suitable areas around the country. They had
to meet three criteria: the presence of good wind
or solar resources, good environmental conditions
that could withstand the presence of solar panels or
wind turbines and a high need for socio-economic
development.
Cookhouse and Stormberg are the two Eastern
Cape areas that are REDZ and hopes are high that
these concentrations of activity will lead to economic
growth and the creation of jobs for local communities.
There are already 12 wind farms in the Eastern
Cape. Because of this concentration of facilities, the
South African Wind Energy Association (SAWEA)
chose the province for its first SAWEA Provincial
Community Trust Workshop. With large amounts of
money coming into communities, proper attention
must be paid to who decides how that money is to
be spent and some regional planning is needed.
It does not make sense for each wind farm and its
closest community to plan a school and a crèche
if that is what the neighbouring community is also
planning. Community trusts have been established
as each of the independent power producers must
involve communities living within a 50km radius of
a wind farm.
Brenda Martin, CEO of SAWEA, outlined some of
the issues tackled at the workshops, “We explored a
range of approaches that are applied when establishing
the trusts for the benefit of local communities.
Many of the initiatives are focused on education,
health and the empowerment of women.”
The National Department of Energy has a programme
to attract private investment in renewable
energy, the Renewable Energy Independent Power
Producer Procurement Programme (REIPPPP).
According to figures released by the Department
of Energy, the REIPPPP by 2016 had not only delivered
multiple millions in investments, but also created
more than 30 000 jobs and benefited local community
development to the tune of R256-million.
However, the national utility, Eskom, has created some
uncertainty by refusing to sign new power purchase
agreements.
Although Eskom’s shareholder, the Minister of
Energy, said that the REIPPPP was still government
policy, it was not until 2017 that the process was
started again, but this time with a limit imposed by
the state on how much could be charged for energy
in new contracts.
Fully a quarter of the projects so far approved
in this national programme have been allocated
to the Eastern Cape with 91% of these being wind
projects and the balance solar photo-voltaic. A vast
new industry has been created in a very short space
of time, and investors still have an appetite for more.
If the power produced through the REIPPPP were
consumed where it is made, the Eastern Cape would
soon be producing 60% of its own needs (the power
is in fact sent to the national grid for redistribution).
The province consumed 8 358GWh electricity in 2015
or 3.7% of the national total.
The average lead time in the projects that have
so far been approved in the province is two years,
with local content averaging out at about 47%. When
the projects are complete, R142.9-billion will have
been spent on procurement, R65.7-billion of which
will be local.
Wind projects in the province include
Globeleq’s 138MW Jeffreys Bay facility, the 140MW
EASTERN CAPE BUSINESS 2018
16

SPECIAL FEATURE
Cookhouse project (African Clean Energy
Developments) and two run by Cennergi
at Tsitsikamma (94MW) and Bedford
(134MW). Cennergi is a joint venture between
South African resources company
Exxaro and Indian company Tata Power.
There are several other projects with capacities
ranging from 20MW to 97MW.
Scatec Solar has commissioned a plant
in Burgersdorp. The 75MW plant has panels
mounted on single axes, enabling
them to track the sun and optimise electricity
generation by a further 20%.
The Coega IDZ is working on positioning
itself as a renewable energy
hub. The Department of Trade and
Industry (dti) offers various green
technology incentives.
POWERX IS ROLLING OUT
GREEN ENERGY
POWERX has
recently signed
up with AKM
Foods to supply power to all the KFC
outlets in Nelson Mandela Bay. KFC, as
the largest quick service restaurant in
South Africa, has shown huge commitment
to growing the green economy by
making great strides in transforming the
energy landscape in Nelson Mandela Bay.
POWERX has also signed up with
Mondelez to supply power to its head
office and operations in Port Elizabeth.
Mondelez as a global company has
shown dedication to sustainability and
reducing their carbon emissions by consuming
power supplied by POWERX.
POWERX now supplies over 40 national
and local customers in Nelson Mandela
Bay and its aim is to expand the number
of customers supplied exponentially
over the next several years.
17 EASTERN CAPE BUSINESS 2018

POWERX
Stimulating the use of clean power.
POWERX is the pioneer in the trading of electricity
in South Africa and is supplying various businesses
with “green” power.
POWERX holds a NERSA-issued electricity trading
licence which allows it to buy and sell power generated
from renewable/clean resources, using the national
grid network to facilitate such trade. POWERX
uses the municipal grid network where such agreements
exist with the relevant municipalities.
Renewable Energy Certificates (RECs) provide proof
of origin that the power has been generated from
a renewable resource. This represents additional
value for the customer and shows commitment to
reducing carbon emissions.
POWERX is focused on the end goal of stimulating
the production and consumption of clean power
in South Africa.
As an aggregator, POWERX is able to assume and
actively manage the risks that generators and customers
cannot assume or mitigate themselves.
POWERX currently operates exclusively in Nelson
Mandela Bay Municipality, however we have recently
secured agreements with the Umjindi and Mandini
municipalities which enables us to use their distribution
network to trade in that territory. POWERX is
well advanced in its plan to expand its footprint to
cover more municipal regions across South Africa.
DYNAMIC PROPOSITION
POWERX offers a dynamic value proposition to
municipalities which includes stimulation of the
generation of power within the municipal borders,
boosting local economic development, reduction
in carbon emissions, revenue protection through
active management of embedded generation to
avoid grid defection, and cost avoidance through
reduction in existing ancillary electricity charges.
The procurement of power via POWERX ensures
predictability of annual cost increases and also allows
us to provide a discount on power supplied
to customers depending on their respective tariff
structure.
CONTACT INFO
Physical address: 6th Floor, The Mall Offices, 11
Cradock Ave, Rosebank, Johannesburg,
Telephone: 0861 POWERX (769379)
Email: info@POWERX.energy
Website: http://www.powerx.energy
EASTERN CAPE BUSINESS 2018
18

19
EASTERN CAPE BUSINESS 2018

SPECIAL FEATURE
International events are driving
the tourism industry
St George’s Park cricket ground is a world leader in lighting.
The Eastern Cape has superb beaches
and magnificent game parks and nature
reserves. The fact that parks such as the
Addo Elephant National Park are malariafree
at all times is an additional selling point for
foreign visitors.
Port Elizabeth is the end-point of the famous
Garden Route, which extends westwards to Cape
Town. Golfers in search of the rare pleasures of
links golf have two courses to savour in Port
Elizabeth (Humewood Golf Club) and St Francis
Links, just an hour down the coast.
East London has its own fine beaches and is
the logical starting point for trips to the magical
Wild Coast. The interior of the Eastern Cape is
home to several high-end private game reserves
such as Shamwari, Mount Camdeboo and Kariega
Game Reserve.
Some luxury game lodges are located within
national parks, such as the Gorah Elephant Camp,
which is run by Hunter Hotels and forms part of
the Addo Park. Luxury brands sometimes create
a chain for their customers, so visitors might
stay at the boutique Summerstand hotel in Port
EASTERN CAPE BUSINESS 2018
20

SPECIAL FEATURE
Elizabeth, No5 By Mantis, on their way to another
Mantis property, the Oceana Beach and Wildlife
Reserve.
The Eastern Cape Parks and Tourism Agency
runs 34 provincial nature reserves within the
province. The Addo Elephant National Park is arguably
the province’s greatest attraction and is
under the control of South African National Parks.
Addo extends over 180 000 hectares on land (with
thousands more square metres in the marine reserve)
and attracts more visitors than East Africa’s
Serengeti National Park. Addo uniquely offers visitors
the opportunity to view the Big Seven, as it
has more than 650 elephants, along with the rest
of the Big Five. The park includes a marine section
where great white sharks and whales can be
sighted. The Camdeboo, Mountain Zebra and
Garden Route national parks offer terrains ranging
from dry karoo veld and rolling mountain plateaus
to forests on a rocky coastline.
In addition to all of these natural treasures, the
Eastern Cape has a strong history and culture offering.
More than a century of interaction between British
colonial forces and Xhosa-speaking groups created
a frontier zone that today is rich in historical interest.
The Mandela Bay Development Agency has
started an initiative in Port Elizabeth that relates
to the struggle against apartheid. Oliver Tambo,
Govan Mbeki, Steve Biko and Winnie Madikizela-
Mandela were among the many Eastern Cape men
and women who played major roles in that battle.
The MBDA has come up with Route 67, which
consists of 67 public art works symbolising the 67
years spent by Nelson Mandela in the service of
his fellow man. It starts at the Campanile (a tribute
to the 1820 Settlers from Britain) and forms part
of the greater Nelson Mandela Bay Arts Journey.
It passes the Great Flag on the Donkin Reserve.
The famous steam train, the Apple Express,
made a modest comeback in December 2017
when a special train ran along the narrow gauge
between King’s Beach and the Port Elizabeth airport.
Funding was provided by the municipality,
but a lot of hard work was done by volunteers to
get the old train back on track. Re-branded for the
occasion as the Nelson Mandela Bay Steam Train,
the plan is to extend the line to the large regional
shopping centre on the western edge of the city,
Bay West. The railway used to haul fruit to Port
Elizabeth from the Langkloof valley.
King’s Beach is the focus of another important
plan to boost tourism. Transnet National Ports
Authority has confirmed that it will transfer its
manganese export facility at the Port of Port
Elizabeth to the neighbouring Port of Ngqura
by October 2023. The manganese currently lies
in the harbour next to the tourist beach. When
the facility is relocated, there will be a chance to
link the edge of the harbour (which already has
some tourist facilities and a yacht basin) with the
popular beach and so create a waterfront with
restaurants, shops and bars.
Hotels and casinos
South Africa’s large branded hotel groups have a
strong presence in the Eastern Cape but there are
also groups whose focus is more concentrated on
the province (like the Kat Leisure Group) together
with independent hotels and resorts such as East
London’s Blue Lagoon Hotel and Conference Centre,
located in a prime spot at the mouth of the Nahoon
River.
Kat Leisure Group’s offering extends from
the well-known Kennaway Hotel, which has
been a feature on East London’s beachfront for
many years, to the Queens Casino and Hotel in
Queenstown and accommodation options in the
mountainous interior of Katberg and Hogsback.
Premier Hotels has two hotels in East London
and the Mpanga Private Game Reserve just beyond
the city limits. Premier Hotels also manages
the East London International Convention Centre
which offers 17 conference rooms in various configurations,
boardrooms and an exhibition hall.
Many resorts take advantage of the beautiful
bays and inlets of the Eastern Cape, both along
the Wild Coast, and nearer to cities, such as the
Mpekweni Beach Resort which is located between
Port Alfred and East London.
The Eastern Cape Gambling and Betting Board
issues gaming licences and regulates the industry
in the province.
21 EASTERN CAPE BUSINESS 2018

SPECIAL FEATURE
The Radisson Blu in Port Elizabeth offers fivestar
luxury overlooking Pollock Beach and it is
close to the renowned Humewood Golf Club.
The modern 14-storey building has 173 rooms
and suites.
Sun International has properties on the provincial
border with KwaZulu-Natal (the Wild
Coast Sun Resort and Casino) and the five-star
Boardwalk Casino and Entertainment World in
Port Elizabeth. Located close to the Blue-Flag
Hobie Beach, the Boardwalk has won awards for
excellence for its meetings, exhibitions and special
events. In 2017 Sun International announced
that Fish River Sun and Country Club Resort near
Port Alfred was closing. It is possible that the
resort could be transferred to the state with the
intention that it be transferred to the beneficiaries
of a land claim.
Tsogo Sun has five Eastern Cape properties.
In East London the four-star Southern Sun
Hemingways is next to the Hemingways Casino
complex and the city has one Garden Court, as
does Mthatha. Port Elizabeth has a Garden Court
and a SUN1, both near Humewood Beach.
City Lodge has one property in East London
and five in Port Elizabeth, across four brands.
Along the beachfront at Summerstand can be
found the Protea Marine, a 173-room Radisson
Blu and the Beach Hotel. The last-named hotel
is run by the Port Elizabeth Hotel Group which
also has in its portfolio Hacklewood Hill Country
House, The Sands @ St Francis and Pumba Private
Game Reserve.
EASTERN CAPE BUSINESS 2018
22

YOURS TO DISCOVER

SPECIAL FEATURE
Events
The FIFA World Cup hosted by South Africa in 2010
created a surge in the number of foreign visitors to
the country. The Eastern Cape hosted 260 000 foreign
visitors in that year and the province became a
favoured destination for international travel agents.
In 2017 foreign visitor numbers ticked upwards close
to the 2010 peak, and a focus on events is one of the
reasons for this trend.
Grahamstown hosts the National Arts Festival
every year, an 11-day extravaganza of performance
art, music of every sort, art exhibitions,
film, lectures, craft fairs and workshops. More
than 240 000 people attended the 2015 festival
and a study has put the economic impact of the
festival at R349.9-million.
Port Elizabeth hosts matches in the international
Super Rugby series. The provincial tourism
body calculates the public relations value of the
rugby hosting as R18-million with an “economic
spin off in excess of R150-million”. Port Elizabeth
maintained its reputation for “firsts” when it
hosted South Africa’s first-ever day-night cricket
Test match in 2017. With brand-new lighting of
the latest design, St George’s Park cricket ground
was illuminated to the highest international
standards. The innovative lighting system will
now give events organisers options that never
existed before in terms of lighting shows and
coordinated lighting programmes that can be
tuned to musicians’ needs.
Another major feather in Port Elizabeth’s cap is
the decision by the international 2018 IRONMAN
70.3 World Championship to designate official
qualifier status to an event to be held on the first
two days of September 2008. Hobie Beach will be
the main focus of the event, as it is for the Standard
Bank IRONMAN African Championship which
has been held since 2015. The city held its first
IRONMAN event as far back as 2004. Enthusiastic
crowds of up to 80 000 have been known to line
the route and the event will undoubtedly be a fillip
for the local economy. More than 6 000 athletes are
expected to participate.
Other popular events in Port Elizabeth include
the Herald Cycle Tour and the Ocean Racing Series
(a world championship).
Buffalo City has its own IRONMAN 70.3 triathlon.
In 2018 the 11th running of the event was held
in the last week of January, and East London is
home to several other popular cycling and running
events.
ONLINE RESOURCES
Apple Express: www.appleexpresstrain.co.za
Buffalo City Tourism: www.bctourism.co.za
Eastern Cape Gambling and Betting Board:
www.ecgbb.co.za
Eastern Cape Parks and Tourism Agency:
www.visiteasterncape.co.za
Mandela Bay Development Agency:
www.mbda.co.za
National Arts Festival: www.nafest.co.za
Nelson Mandela Bay Tourism: www.nmbt.co.za
EASTERN CAPE BUSINESS 2018
24

Maritz Electrical
FOCUS
St George’s Park lighting installation is a world first.
Maritz Electrical, a premier supplier and installer of dedicated
sports lighting, was tasked with erecting a new lighting
system at St George’s Park cricket ground in record time.
This complicated flagship project was completed on time
and on budget and makes South Africa’s oldest Test match ground
the first International Cricket Council-compliant, LED-lit stadium and
the first such stadium to be fitted with theatrics.
Where before the lighting level was 800 Lux, it is now 2000 Lux.
The LED lighting makes for a much brighter light and far more flexible.
No warm-up is required and so the theatrics can be employed at any
time: flashing, chasing and picking out patterns in the lights. With
the possibility of holding light shows before and after events, safety
is improved because crowds will come in early and linger later. LED
technology also reduces consumption significantly.
St George’s Park Cricket Ground.
St George’s Park, Port Elizabeth’s famous ground, was the site of the
first-ever Test match to be played on South African soil, back in March
1889. Over four days in December 2017, the ground celebrated another
landmark – South Africa hosted Zimbabwe in the first-ever day-night
Test match. The R27-million contract was completed on time and on
budget by a team from Maritz Electrical led by Warren Williams. Two
project managers from Musco Lighting, the supplier, supported the
installation. The lights on top of the Duck Pond Pavilion were hoisted
at night, the process being illuminated by floodlight.
Maritz Electrical
Maritz has installed lighting systems
at a number of schools,
universities, multi-sports stadia,
including a recent big project
for the Mangaung Metropolitan
Municipality, the Kaizer Sebothelo
Stadium.
Maritz Electrical has an internationally
compliant management
system in place. Musco (leading
supplier of electrical sports lights)
is one of our established relationships
that allows us to provide
products of a similar quality to
that of Twickenham Stadium and
Arsenal’s Emirates Stadium.
We work closely with our customers,
ensuring that the task
or project is completed on time
and on budget, using the highest
quality products available.
We specialise in all residential
and commercial areas of electrical
installation and maintenance.
Our electrical services include
project management, design,
supply, installation, testing plus
commissioning and maintenance
of electrical systems.
CONTACT INFO
7 Wetton Road, Kenilworth,
Cape Town, 7800
Tel: +27 21 703 0867
Fax: +27 21 703 0868
Cell: 071 364 7354
Email:
info@maritzelectrical.co.za
Website:
www.maritzelectrical.co.za
25 EASTERN CAPE BUSINESS 2018

PROFILE
The Nelson
Mandela Bay
Business Chamber
The heartbeat of business success in the region.
The Nelson Mandela Bay Business Chamber is a
Not for Profit Company representative of a broad
spectrum of businesses in Nelson Mandela Bay. It
is one of the largest business associations in the
Eastern Cape, with a membership of more than
700 businesses employing over 100 000 people in
a diverse array of sectors.
The Nelson Mandela Bay Business Chamber is
a leading catalyst for economic development. In
the new strategic direction of 2018, the Business
Chamber will be driving the Triple Helix concept
of building relationship between the universityindustry-government
as the foundation of creating
a competitive Nelson Mandela Bay.
The Business Chamber has been the heartbeat
of business success in the region for over 150 years.
The Business Chamber is driven by a team of dedicated
staff and volunteers, lobbying on issues affecting
the ease of doing business and companies’
sustainability. The Business Chamber also builds in
international relations to form a vital link between
business owners and international markets.
Vision
To be a leading catalyst for economic development
in Nelson Mandela Bay.
Mission
By influencing the factors and key stakeholders
that create a competitive enabling business
environment.
Task Teams
The Nelson Mandela Bay Business Chamber has established
a structure of seven task teams to facilitate
the ease of doing business.
The seven task teams of the Nelson Mandela Bay
Business Chamber are:
• Water Task Team
• Roads and Storm Water Task Team
• Electricity and Energy Task Team
• Transport and Logistics Task Team
• SME Task Team
• Metro Collaboration Task Team
• Trade and Investment Task Team
Enterprise Development & SMME
Support
The Nelson Mandela Bay Business Chamber Enterprise
Development Programme was launched in 2014,
to develop the skills that enhance and grow small
businesses. In 2017 the Business Chamber successfully
hosted Phase 3 and Phase 4 of the Enterprise
Development Programme. Close to 100 SMEs (small
to medium-sized enterprises) benefited from taking
part in the different phases of the programme.
In 2017 the Business Chamber finalised the launch of
a pilot phase of the Export Development Programme
which is set to commence in March 2018 for multisectoral
SMMEs positioning themselves as emerging
exporters. The programme is unique because of its
integrated approach to the development of these
emerging exporters. In addition, the SME Task Team
EASTERN CAPE BUSINESS 2018
26

PROFILE
has launched a Pro Bono Service Programme which
entails the pairing of qualifying SMEs with service
provider/s, who are volunteer members of the
organisation. This programme will continue in 2018.
Events
Events at the Nelson Mandela Bay Business Chamber
keep business owners up to date and informed on a
wide variety of topics affecting business in Nelson
Mandela Bay. Regular networking functions offer business
owners the chance to make new professional
contacts. The Business Chamber’s flagship events –
the Annual Business Chamber Golf Day, the Annual
Ladies’ Breakfast and the Annual Business Chamber
Banquet – are highlights on the Bay’s business and
social calendar. The Events Department reached a
new record in 2017 by hosting a total of 91 events.
Publications and marketing
As another value-added service to members, the
Nelson Mandela Bay Business Chamber provides
members with a variety of publications across print
and electronic platforms, including our quarterly
printed member magazine, Infocom, and the printed
annual Business Guide. Both of these publications are
ABC-certified, glossy publications.
The electronic monthly newsletter The Good
News provides links to good news on the local business
front. The Business Chamber regularly updates
its website, and can be found on popular social media
platforms including Facebook, Twitter, LinkedIn
and Instagram.
In 2017 the Business Chamber also launched the
NMBBC App: a digital, interactive platform for business
to business promotion in Nelson Mandela Bay
and surrounding areas. A key feature of the App is a
business directory, which connects users with businesses
in the region, who are members of the Nelson
Mandela Bay Business Chamber.
To download the App, please search NMBBC on the
AppStore or PlayStore.
Certificates of Origin
A Certificate of Origin is a document which states
the origin of goods being exported and this “origin”
is a key requirement for applying tariffs and other
important criteria. As an accredited provider of this
service, the Nelson Mandela Bay Business Chamber
signs Certificates of Origin for member and nonmember
businesses requiring the services in Nelson
Mandela Bay. The Certificates of Origin Department
reached a record in August 2017 when it issued the
most monthly certificates it has ever completed over
the past six years of recordings. This was up 22% from
August 2016.
Corporate Social Investment
Because the majority of our membership’s workforce
is based in the city, the region of Nelson
Mandela Bay is the direct beneficiary of their
Corporate Social Investment programmes – including
skills development initiatives, bursaries
and scholarships. Many of our member companies
significantly contribute to alleviating poverty and
specifically unemployment in the region of Nelson
Mandela Bay through various initiatives purposed
to grow the local economy. Every year the Business
Chamber adopts NGO organisations and collects
goods and services from our member companies
in order to create awareness around the NGOs. In
2017 the Business Chamber adopted SOS Children’s
Village Port Elizabeth and St Francis Hospice and
collected several items from our companies, including
furniture and vehicles.
CONTACT INFO
Address: KPMG House, Norvic Drive,
Greenacres 6045
Tel: +27 (0)41 373 1122
Fax: +27 (0)41 373 1142
Email: info@nmbbusinesschamber.co.za
Website: www.nmbbusinesschamber.co.za
27 EASTERN CAPE BUSINESS 2018

PROFILE
Border-Kei Chamber of Business provides key services to over 700
member organisations, and aims to be the “voice of business” in the area.
Value proposition
To be the “voice of business” promoting an
environment for growth and sustainability through
maintaining strong, proactive relations with both
internal and external stakeholders, including
provincial and local government, member
companies, other business organisations and
organised labour.
Geographic areas of operation
Border-Kei Chamber of Business (BKCOB) has offices
in East London and Queenstown which serve the
greater Border-Kei region.
Services and benefits to members
BKCOB offers the following key services:
Member listing – After joining, members receive
the member listing as part of their package.
• Border-Kei Chamber of Business Membership
Certificate.
• New members’ induction and networking functions
– The chamber holds six new members’ induction
and networking functions annually, and
these provide a valuable informal but structured
opportunity to meet a broad range of
businesspeople.
• Letters of support – The chamber provides
letters of support to members trying to
access government tenders, and letters of
introduction for members attempting to
expand their business footprint.
• Business Hi-Lite Magazine – This glossy B2B
magazine is produced quarterly adding
relevant topics and information/news of
what’s happening. It also features chamber
activities and developments in the area.
• Trade & Information desk – Chamber is geared
to provide information on almost any matter
or topic. We also liaise with a number of
Embassies and Trade Consuls to seek business
and trade opportunities.
• Investbuffalocity.com – A collaborative initiative
where members can find various economic
information on Buffalo City. It provides a
platform to attract international investors, as
well as provide exposure for local companies.
• Committees – The chamber has a robust and
effective committee structure to facilitate
members’ participation, and to enable the
chamber to fulfil its role as the “voice of business”.
Over 120 voluntary business professionals
participate.
Turnover
BKCOB represents over 650 member organisations that
generate an estimated annual turnover of R73-billion,
and that employ some 58 000 people who earn an
estimated annual income of R19-billion in total.
KEY CONTACTS
Executive Director: Les Holbrook
Head of Communications: Candi Ferreira
Tel: +27 43 743 8438 | Fax: +27 43 748 1507
Email: info@bkcob.co.za or
communications@bkcob.co.za
Physical address: Chamber House, The Hub,
Beacon Bay, Bonza Bay Road, East London
Website: www.bkcob.co.za
Contact: Jacqui Austin at
members@bkcob.co.za or 043 743 8438.
EASTERN CAPE BUSINESS 2018
28

Promoting business
in the region
Les Holbrook, Executive Director of the Border-Kei
Chamber of Business (BKCOB), highlights the reasons that
investors should look no further than the Eastern Cape.
PROFILE
What are some of the Chamber highlights for the past year?
The Chamber tackles many and varied projects and focusses primarily
on areas where the focus is on the cost and ease of doing business.
Two years ago we handed back to Provincial Treasury a pilot project
titled Buy Eastern Cape. The Chamber plans to revive this initiative to
mitigate the loss of opportunities pouring out of the province. Strategic
steps will now be taken to increase the procurement for enterprises
located within the province.
Our lobbying in favour of renewable energy saw the Chamber focus
on “Greening our Office.” After eight months of intense capacity building,
our office in East London is now the only Chamber of Commerce
and Industry in South Africa that qualifies to be listed as Green.
INVEST BUFFALO CITY, our flagship project, signed MOUs with
four stakeholders in our region, committing to initiatives that focus
on inward investment and on retaining existing investment – on the
principle of Invest, Work, Live & Play. An associated project to the IBC
project is A Call-2-Action, an initiative where business partners with
the municipality towards a Clean & Green City, underpinned by waste
recycling. Following on from the very first Maritime Summit held in the
Metro, business and the Metro have partnered with TNPA to construct
a new Growth and Expansion plan to turn the ‘tired’ Port around. We
also have a forum to promote opportunities in the Blue Economy.
Why should investors consider the Eastern Cape?
Buffalo City is equidistant from Gauteng and the Western Cape, with
good logistics and competitive costs, offering air, road and sea connectivity,
all reasons for a successful and vibrant East London Industrial
Development Zone. This is supported by the most moderate climate
all year round, a productive coastline, and a lifestyle supported by the
15-minute city. With the first automotive tertiary training academy and
artisan development, skills in the manufacturing sector are adequately
supported. This includes the best and most efficient IDZ in SA, that is
ISO rated and has world-class infrastructure that includes a Science
and Technology Park.
What is the biggest challenge for regional business?
Municipal services and infrastructure maintenance. Buffalo City
Municipality is spending hundreds of millions on a very old infrastructure.
However, great strides have been made and the future
looks very positive.
Les Holbrook
BIOGRAPHY
Les Holbrook has a National
Technical Certificate as well as
a Certificate in Management
from Rhodes University. Prior to
his appointment as the Executive
Director of the Border-Kei
Chamber of Business, he was
the Deputy General Manager
of Beier Industries of Transkei
and Executive Director of the
Transkei Chamber of Industries.
29 EASTERN CAPE BUSINESS 2018

ADVERTORIAL
A financial partner that
understands your aspirations
Lonwabo Daniels, Nedbank Provincial General Manager
for Eastern Cape, explains how Nedbank can help
business owners in the Eastern Cape.
solutions and a banking experience that is
hassle-free. This allows you to concentrate on
what’s most important to you – running your
business,’ says Daniels.
Nedbank leverages its strong market positioning
with businesses and the public sector,
encouraging them to bank their employees
through its innovative Workplace Banking
offering for employees.
There is good news for Eastern Cape
business owners and entrepreneurs
seeking a unique banking experience:
Nedbank Business Banking has 27
business managers located across the
province specialising in commercial
industries as well as the agricultural
sector.
Nedbank also continues to build on its clientcentred
strategy aimed at delivering distinctive
experiences and channels of choice for
businesses and clients in the Eastern Cape. This
has seen the bank simplify and enhance its
product offering in line with its value-added
banking philosophy based on simplicity,
transparency and affordability. Innovation and
technological advancements, as well as training
and development of staff, have been key in
achieving the bank’s objectives.
They are ready to assist you with professional
advice, industry-specific solutions and a
comprehensive range of financial products
and services. ‘At Nedbank Business Banking we
believe that you need a financial partner who
not only understands your circumstances and
aspirations, but also provides you with relevant
Should you be interested in taking your
business to the next level and improving staff
engagement, and for more information about
Nedbank’s specialised service offering, please call
the Business Banking team on +27 (0)41 393 5969
or visit www.nedbank.co.za.

ADVERTORIAL
Innovation key pillar in meeting client needs
Emile Bester, Nedbank Provincial Sales Manager, Client Network,
explains how Nedbank works with communities to deliver banking
solutions.
winning Nedbank App Suite, the home loans
online digital channel and Market Edge,
as well as the ‘Branch of the Future’ concept
in communities both locally and nationally.
‘Working with communities is entrenched in our
values. At the core of Nedbank’s offering in the
Eastern Cape is a relationship-based model with
a business manager dedicated to your business
as the key point of entry to the bank. And we
encourage you to see money differently with
Whole-view Business Banking’ says Bester.
Nedbank continues to build on its clientcentred
strategy aimed at delivering
distinctive experiences and channels
of choice for businesses and clients
in the Eastern Cape. This has seen the
bank simplify and enhance its product
offering in line with its value-added
banking philosophy based on simplicity,
transparency and affordability.
Innovation and technological
advancements, as well as training and
development of staff, have been key in
achieving the bank’s objectives.
Since 2012 Nedbank has launched several
first-to-market innovations, such as the award-
What does this mean for the client? Whole-view
Business Banking is an additional benefit of
Nedbank Business Banking and means that your
business and your personal financial needs are
managed in one place. ‘Because business owners
and their businesses are very often financially
dependent on each other, our client service
teams now also offer individual banking solutions
to you and your staff because we already know
and understand your needs,’ says Bester.
Should you be interested in taking your
business to the next level and improving staff
engagement, and for more information about
Nedbank’s specialised service offering, please call
the Business Banking team on +27 (0)41 393 5969
or visit www.nedbank.co.za.

ADVERTORIAL
Solutions for small business aimed at
creating jobs and growing the economy
Nedbank’s Regional Manager of Small Business Services, Andisa
Sikwebu, explains how Nedbank is committed to partnering with
businesses for growth.
enterprises. For example, the Small Business
Friday initiative, in association with the National
Small Business Chamber, seeks to encourage
everyone in South Africa to rally behind and
support small businesses. The initiative calls on
everyone to make a conscious decision to vote
for small businesses through their hearts, feet
and wallets; not only on Small Business Friday,
but every day.
‘Small businesses are the mainstay of the
economy. Nedbank has, over the years,
instituted various interventions aimed
at giving support to the small-business
sector. Over and above our smallbusiness
services solutions, we provide
small-business owners with support
that goes beyond banking – freeing up
their time to truly focus on running their
businesses,’ says Sikwebu.
Nedbank has built a solid reputation as a bank
for small businesses through initiatives such as
Small Business Friday, free small-business
seminars and the SimplyBiz.co.za platform –
all geared to support small- and medium-sized
SimplyBiz.co.za is a free-to-join networking
portal designed especially for small businesses.
It helps small businesses improve their business
administration skills, keep up with the latest
trends, network with other small businesses and
share ideas.
Nedbank experts are available to provide all the
support you need when starting off. Nedbank
offers simple, affordable banking solutions
and value-added services (including an
easy online business registration and account
opening process) to get you and your business
going.
Should you wish to tap into our smallbusiness
expertise to reach your business
goals, get in touch with Nedbank’s Small
Business Services. Call Andisa Sikwebu
on +27 (0)41 398 8188 or send an email to
andisas@nedbank.co.za.

ADVERTORIAL
See money differently with Whole-view Business
Banking from Nedbank
Money expert Sylvester Funani, Regional Manager of Retail and Business
Banking in Mthatha, explains how new brand values build on the bank’s
expertise to benefit its clients.
Banking experts aim to provide clients with
unique business and financial solutions. ‘It
forms part of our purpose at Nedbank to use our
financial expertise to do good for individuals,
families, businesses and society,’ says Funani. ‘At
Nedbank Retail and Business Banking we believe
you need a financial partner who has a deeper
understanding of your business – someone who
offers innovative, relevant solutions and who
gives you a banking experience that is hasslefree.
Operating from offices at Nedbank
Mthatha Plaza Branch, Nedbank Retail
and Business Banking now has several
business managers available under one
roof in Mthatha.
Well-known music personality Funani has been
with Nedbank for 12 years and has worked in a
number of roles. He prides himself on building
relationships and understanding the needs of
clients, saying that partnership- and relationshipbased
banking is a key driver of how Nedbank
conducts its business to ensure clients benefit
from its money expertise.
He and his team of Retail and Business
‘We look forward to continuing our relationships
with our valued existing clients, and to offering
our value proposition to new clients as well.
At the core of our offering in Mthatha is a
relationship-based model with a business
manager dedicated to your business as your key
point of entry to the bank. And we encourage
you to see money differently with Whole-view
Business Banking from Nedbank, as well as to
take advantage of our one-stop banking service
at Mthatha Plaza Branch,’ says Funani.
To take your business to the next level or
to get more information about Nedbank’s
specialised service offering call Sylvester
Funani on +27 (0)83 569 2326, send an email
to sylvesterf@nedbank.co.za or visit
www.nedbank.co.za.

ADVERTORIAL
Relationship-based banking aimed at supporting
clients in East London and surrounds
Money expert Sandy Pelser, Regional Manager of Retail and Business
Banking East London and Surrounds, explains how new brand values
build on the bank’s expertise to benefit its clients.
business to ensure clients benefit from its money
expertise.
Nedbank recognises that you have a full range
of banking needs that go beyond transaction
and borrowing. That is why their dedicated
team of specialists partners with you to give
you a bird’s-eye view of your business and a
different perspective on how your money needs
to flow to meet your goals.
Operating from its offices at Cedar
Square, Nedbank Retail and Business
Banking, East London and Surrounds
now has several business managers
available under one roof. Sandy Pelser
says her team is ready to assist clients
with professional advice, industryspecific
solutions and a comprehensive
range of financial products and services.
‘We look forward to continuing our relationships
with our valued existing clients, and to offering
our value proposition to new clients as well.
At the core of our offering in East London,
Queenstown, King William’s Town, Mdantsane
and Port Alfred is a relationship-based model
with a business manager dedicated to your
business as your key point of entry to the bank.
And we encourage you to see money differently
with Whole-view Business Banking from
Nedbank, as well as to take advantage of our
one-stop banking service in East London, says
Pelser.
Pelser has been with Nedbank for 31 years
and has worked in a number of roles. She
prides herself in building relationships and
understanding the needs of clients, saying that
partnership- and relationship-based banking
is a key driver of how Nedbank conducts its
To take your business to the next level or
to get more information about Nedbank’s
specialised service offering, call Sandy Pelser
on +27 (0)83 628 9897, send an email to
sandyp@nedbank.co.za or visit
www.nedbank.co.za.

ADVERTORIAL
Using financial expertise to do good with
professional advice and solutions
Money expert Jordaan Roelofse, Regional Manager of Retail and
Business Banking, Port Elizabeth and Surrounds, explains how new
brand values build on the bank’s expertise to benefit its clients.
is a key driver of how Nedbank conducts its
business to ensure clients benefit from its money
expertise.
He and his team of Retail and Business
Banking experts aim to provide clients with
unique business and financial solutions. ‘It
forms part of our purpose at Nedbank to use our
financial expertise to do good for individuals,
families, businesses and society,’ says Roelofse.
Operating from its offices at 270 Cape
Road, Nedbank Retail and Business
Banking, Port Elizabeth and Surrounds,
now has several business managers
available under one roof. Jordaan
Roelofse says his team is ready to
assist clients with professional advice,
industry-specific solutions and a
comprehensive range of financial
products and services.
Roelofse has been with Nedbank for 21 years
and has worked in a number of roles. He
prides himself on building relationships and
understanding the needs of clients, saying that
partnership- and relationship-based banking
We look forward to continuing our relationships
with our valued existing clients, and to offering
our value proposition to new clients as well.
At the core of our offering in the Eastern Cape
is a relationship-based model with a business
manager dedicated to your business as your key
point of entry to the bank. And we encourage
you to see money differently with Whole-view
Business Banking from Nedbank, as well as to
take advantage of our one-stop banking service
at 270 Cape Road,’ says Roelofse.
To take your business to the next level or to
obtain more information about Nedbank’s
specialised service offering, call Jordaan
Roelofse on +27 (0)83 627 2210, send an email to
jordaanr@nedbank.co.za or visit
www.nedbank.co.za.
Nedbank Ltd Reg Nedbank No 1951/000009/06. Ltd Reg No 1951/000009/06
Authorised financial
Authorised financial services services and registered and registered credit provider credit (NCRCP16).
provider (NCRCP16).

OLD MUTUAL ENABLING
POSITIVE FUTURES
IN THE EASTERN CAPE
Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling
positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span
investment, life assurance, asset management, banking, healthcare and general insurance.
To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership
boards in each province to serve as links between the province and our business. These Provincial Management
Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a
positive impact on the future of this province and its people.
MEET VUYISILE KOKO
Chairperson of the Eastern Cape Provincial Management Board
“ As a member of Old Mutual’s Provincial Management Board,
I would like to promote teamwork and better relations along
all Old Mutual businesses in the Eastern Cape.”
As the Eastern Cape PMB Chairperson I undertake to:
1. Establish good collaboration and synergies among all business units.
2. Through the board build and maintain strong business relationships with the Provincial Leadership in
both business, labour and public sectors.
3. Articulate our good story regarding our responsible business initiative to the leadership in the province.
GET IN TOUCH: email EasternCapePMB@oldmutual.com
INVESTMENTS I SAVINGS I PROTECTION
Old Mutual is a Licensed Financial Services Provider

OUR BEST ADVICE TO YOU IS:
ADVICE MATTERS
As custodians of the savings and
investments of millions of South
Africans, we know that ADVICE
MATTERS when making financial
decisions.
How to choose the right financial adviser
A good financial adviser is a professional who
considers all your financial needs and goals, and has
the knowledge, experience and support to give you
Advice That Matters.
1. Ask to see the adviser’s training credentials and FAIS
accreditation.
2. Choose a financial adviser who represents a
respected financial institution.
3. Look for a financial adviser who has access to a
range of specialist support services.
NEED HELP WITH RETIREMENT AND RISK
COVER OPTIONS FOR YOUR EMPLOYEES?
Old Mutual Corporate provides
industry-leading retirement fund
solutions, pre- and post-retirement
investments, group death, disability,
critical illness and funeral cover
as well as financial education and
consulting services to a broad range
of public and private businesses and
institutions, from small businesses to
large corporates.
This can also be accessed via
Old Mutual SuperFund, which provides a comprehensive
employee benefit solution that is flexible enough to meet
the needs of all types of businesses and their employees.
NEED A ONE-STOP-SHOP INTEGRATED
FINANCIAL SERVICE?
The Old Mutual Mass Foundation Cluster (MFC) has an
integrated approach to financial services and offers
customers solutions to meet their needs. This spans a
transactional account called the Old Mutual Money
Account, savings products, life and disability cover, as
well as funeral cover, debt management solutions and
short-term insurance. Our aim is to
help our customers manage their
finances and to plan and provide
a better future for themselves and
their loved ones.
NEED DIRECT CAR & HOME INSURANCE?
Old Mutual iWYZE offers affordable and reliable
insurance cover to protect everything you’ve worked
for. The wide range includes car insurance, home
insurance as well as value-added products
such as iWYZE Scratch
& Dent and iWYZE
Tyre & Rim Cover.
iWYZE, the wise
insurance choice.
NEED FUNERAL COVER?
With Old Mutual’s range of
Funeral Plans (Care, Standard and
Comprehensive+) customers can cover
themselves, their spouse/partner,
children, parents, parents-in-law and
extended family members. We also
have a plan for single parents to
cover themselves and their dependent
children without having to pay for a spouse they do not
have.
You can choose the amount of cover you need, who
you’d like to cover and whether you’d like to add
additional benefits. You can get funeral cover for up to
R70 000.
NEED HELP WITH SAVING FOR BOTH
LONG AND SHORT TERM?
To make it easy for customers to
save from as little as R170 a month,
Old Mutual offers the innovative
2-IN-ONE SAVINGS PLANS.
This product with its two pockets allows customers
to save for their long-term goals, like their children’s
tertiary education, while they have access to their funds
in emergencies.

NEED HELP WITH HOLISTIC FINANCIAL
PLANNING AND SAVING?
Old Mutual Personal Finance specialises in providing
holistic financial planning - Advice That Matters. We
offer a wide range of wealth creation and protection
products. For example:
The Old Mutual Invest Tax-Free Savings Plan, which
offers a low, entry-level premium and refunds you 50%
of admin charges when you reach your maximum
premium limit in a year.
NEED LIFE AND DISABILITY COVER?
Old Mutual Personal Finance marketleading
risk protection range offers
the most comprehensive illness range
with clear claim definitions, including
GREENLIGHT.
NEED TO PROTECT YOUR
BUSINESS?
Old Mutual Insure are experts in
agriculture, engineering and marine
insurance. We offer a range of insurance solutions to
protect your business against everything from fire and
theft to business interruption and legal liability costs.
NEED DEBT CONSOLIDATION AND
TRANSACTIONAL BANKING?
Through Old Mutual Finance you can gain access to:
• My Money Plan, which enables
you to consolidate your debt, and
choose from a range of personal
loans at a fixed interest rate.
• Money Account, which links a transactional (SWIPE)
account and an investment (SAVE) account so you
automatically invest a set amount into a unit trust
every time you make a purchase with your card.
*(In association with Bidvest Bank Ltd)
NEED HELP WITH INVESTING?
Old Mutual Wealth is a fully integrated, adviceled
wealth management business. We have a
personalised and integrated approach to grow and
preserve your wealth over time. Our
specialist capabilities include Private
Client Securities, Old Mutual Multi-
Managers, Fiduciary Services and
Offshore Investing.
We partner with leading financial planners to provide
you with a tailored lifetime wealth plan to help you
achieve the best outcome in line with your objectives,
goals and aspirations.
NEED A FINANCIAL PARTNER THAT
MAKES A POSITIVE IMPACT ON SOCIETY?
Old Mutual is deeply committed
to playing a significant role in building
a strong and financially inclusive
South Africa.
As a responsible business committed to caring for our
communities, the Old Mutual Foundation addresses
socio-economic challenges through investing in:
• Small business development and entrepreneurship
• Youth unemployment through skills training
• Strategic education initiatives
• Caring for vulnerable communities
In 2016 alone the Old Mutual Foundation invested
R25 686 172 in various community projects across our
nation (actual grant funding payments made during
2016).
In the Eastern Cape the Old Mutual Foundation
invested a total of R3 536 025 across its various
community empowering portfolios in the region.
Our staff are the hearts and hands of Old Mutual
in the communities we operate in, and we support
our staff volunteers through various programmes.
In the Eastern Cape province, 52 organisations
have received a total R770 500 as a result of staff
volunteering efforts.
INVESTMENTS I SAVINGS I PROTECTION
ombds 7.2017 L10479.10
Old Mutual is a Licensed Financial Services Provider

ENTERPRISE DEVELOPMENT: INCAPEACE TRADING AND PROJECTS
CC, EASTERN CAPE
Incapeace Trading is a 100% black-owned business operating in Libode, on
the outskirts of Mthatha. This manufacturing business, started by entrepreneur
Anele Peti, will produce bricks and cement blocks to meet the growing demands
of the local construction industry. The impact of Old Mutual’s funding will help
to create around 27 jobs. In addition, local community members will benefit
through a community trust that is being set up by the business, to provide a
range of services.
Old Mutual Foundation grant: R822 645
Masisizane loan:
R4.1 million
The MASISIZANE FUND focuses on enterprise
development and job creation to help alleviate poverty
and improve food security in South Africa. This is
achieved through encouraging entrepreneurship and
capacity development and financing of micro, small
and medium enterprises (SMMEs). Preference is given
to SMMEs with 51% plus ownership by women, youth
or people with disabilities.
Masisizane Fund disbursed R147m worth of funds
in 2016 through soft loans in the three high-impact
sectors and facilitated the creation of 862 jobs against
a target of 625 jobs.
In the Eastern Cape, Masisizane disbursed funds of
R28 518 891 to five clients which created 234 new jobs.
MASISIZANE CASE STUDY IN THE
EASTERN CAPE
WP Timbers (Pty) Ltd
WP Timbers manufactures timber doors and window
frames. The entity’s main market is to retail outlets and
supplies its products to the following major customers –
CashBuild, Buffalo Timber and Penny Pinchers.
Thabo Sikukula (the client) purchased 100% of the
enterprise from the sellers Mrs Kotze, 70% and
Mr Heidtmann, 30%. Thabo gained entrepreneurial
experience through other enterprises that he started
and managed. However, those businesses placed a lot
of reliance on government for market access.
Masisizane provided a fund loan amount of R3.75m,
SEFA a loan amount of R5m, and Old Mutual Foundation
provided a R1.5m grant amount which in turn facilitated
the facilitation of 145 new and retained jobs.
WANT TO HELP BUILD THE PLATFORM
FOR FINANCIAL INCLUSION?
Financial education is the gateway to financial
inclusion. The Old Mutual Financial Wellbeing
programme promotes financial literacy and awareness
across market segments in line with the Financial Sector
Charter. We offer highly effective financial education
and support programmes to help South Africans take
control of their finances.
Between 2007 and end of 2016 more than 589 808
people were reached through face-to-face workshops
held for communities as well as employees in the public
and private sector.
In 2016 more than 88 000 individuals participated in
our On the Money workshops nationally, with 24 674
participating in our Fin360 programmes.
In the Eastern Cape 12 910 individuals were trained
in our Old Mutual On the Money financial education
programme and 2 240 were trained in our Fin360
financial education programme.
For more information, contact Vuyisile
Koko at EasternCapePMB@oldmutual.com

KEY SECTORS
Overviews of the main economic
sectors of the Eastern Cape
Agriculture 40
Forestry 44
Aquaculture 45
Agriprocessing 46
Manufacturing 48
Automotive and components 50
Water 52
Education and training 54
Banking and financial services 56
Development finance and SMME support 58

OVERVIEW
Agriculture
The Eastern Cape is South Africa’s top livestock provider.
Rural Enterprise Development (RED) hubs are a key plank
in the strategy of the Eastern Cape Department of Rural
Development and Agrarian Reform (DRDAR) to promote
food security and employment creation. Small-scale farmers
are supplied with equipment, infrastructure and training to help them
engage with the mainstream economy.
Four new RED hubs in the Eastern Cape have started producing
maize and sorghum. The plan to expose smaller operators to the supply
chain of big retail companies could be transformative in some areas.
The DRDAR wants to increase the province’s GDP by 2% through this
scheme. Almost all of the food in South Africa’s shops is produced
by commercial farmers. The DRDAR is in the process of putting small
farmers on its database. After a grading process, produce will then be
sold on to Nicks Food, McCain Foods and Boxer Superstores.
SECTOR INSIGHT
Herbal and other natural
products hold potential.
• Rural Enterprise
Development (RED) hubs
are supporting smallscale
farmers.
Big infrastructure projects
have been undertaken in rural
areas of the eastern parts of the
province by the Eastern Cape
EASTERN CAPE BUSINESS 2018
42

OVERVIEW
Rural Development Agency
(ECRDA).
Three training centres focus
on agriculture in the province:
Fort Cox College of Agriculture
and Forestry, Mpofu Training
Centre (teaching mostly smallstock
management), and the
Tsolo Agricultural and Rural
Development Institute, which
is developing ties with Walter
Sisulu University. The Dohne
Agricultural Research Institute,
near Stutterheim, developed a
new breed of sheep, the Dohne
merino.
The provincial government
hopes to find private investors
who will take a majority share in
two large tea estates that have
failed. In their heyday, Magwa
and Majola produced more than
a million kilograms of tea but the
current business rescue plan includes
a proposal to plant additional
crops such as avocado and
macadamia nuts, one of the fastest
growing subsectors in South
African agriculture. The DRDAR
will partner the private investor
and local community in the projected
project, and the provincial
government has committed an
amount of R116-million to get the
scheme up and running.
Natural products
There is enormous potential in
the Eastern Cape for the development
of natural products, for
which there is a growing international
market. Herbal medicines
and teas and non-toxic healing
methods of all sorts are all very
popular.
Rural communities are being encouraged to plant products that
can be sold into the natural products value chain. Various vegetables,
Honeybush (Cyclopia) and Sceletium tortuosum (known locally as
Kanna) are among the crops being cultivated. The Honeybush is already
well known as a tea and the Kanna is deployed for mental and
emotional wellness for many hundreds of years by local communities.
TOMA-Now, an NGO that unlocks green business value, is working
in communities to develop organic products that can find a market.
Assets
The Eastern Cape has more livestock than any other South African
province, and produces a quarter of the nation’s milk.
The province encompasses all seven of South Africa’s biomes,
which means that practically every kind of crop or animal or crop can
be cultivated or raised on the province’s 169 580 square kilometres of
land. These include the wool-producing merino sheep and the mohairproducing
Angora goat which thrive in the dry interior.
Deciduous fruit (Langkloof), citrus fruit (Addo/Kirkwood) and
chicory (Alexandria) are important parts of the province’s agricultural
mix, but a feature of recent years has been towards diversification.
Land-usage patterns have changed. Parts of the Amathole and Sarah
Baartman districts that used to be sheep or pineapple farms are now
stocked with game for the hunting and tourism markets.
There are about 70 000 people employed on commercial farms
across the Eastern Cape, with a further 436 000 dependent on smaller
farms, mostly in the east. Improving the agricultural yield of the eastern
part of the province is vital for improving food security and lifting many
thousands of people out of poverty. The recent national drought has
put extra pressure of rural communities.
Crops
The Eastern Cape is South Africa’s second-largest producer of citrus
fruit. Oranges make up the vast majority of citrus products (80%),
but the province is also well-known for its clementine and satsuma
tangerines, as well as navel oranges. Deciduous fruits such as apples,
pears and apricots are grown primarily in the Langkloof Valley.
Another crop in which the Eastern Cape leads national production
is chicory. The roots are used for beverages such as instant coffee,
the leaves go into pet food and stock feed and unopened leaf pods
become chicory endives, a sought-after salad ingredient. The province
produces between 18 000 and 20 000 tons of wet root every year,
mostly near the coast at Alexandria and inland from Port Alfred. The
entire crop is consumed in South Africa.
43 EASTERN CAPE BUSINESS 2018

OVERVIEW
The province’s pineapple crop, grown in the same part of the Sunshine
Coast that produces chicory, is similarly largely for domestic consumption.
Approximately 80 000 tons are produced every year and
processed in East London.
One of the fastest-growing sectors in agriculture is macadamia nuts.
The ECRDA has partnered with a community to plant the popular nut
at Ncera in the Tyume Valley north of Alice.
Sheep and goats
The long-term drought which has afflicted all regions in South
Africa is having an effect on all sectors, but wool-producing sheep
farmers and mohair-producing Angora goat producers perhaps less
so, partly because they are so well adapted to dry conditions but
also because farmers can reduce their flocks.
The dorper breed (which are mainly used for meat production)
are found in the dry Karoo, while the higher-lying areas are more
conducive to the wool-producing sheep.
South Africa produces about 50 000 tons of wool annually. In 2015/16,
the value of wool sold at auctions reached R3.7-billion, of which R815-
million was generated in the Eastern Cape.
The National Woolgrowers Association (NWGA) has helped
24 000 Eastern Cape communal wool farmers get organised into 1 224
wool growers’ associations. A support programme aims to improve
the genetic stock. This is funded by the National Department of Rural
Development and Land Reform and involves communal farmers swopping
an inferior ram for a good ram. So far, 42 000 good Merino rams
have been added to the communal flocks.
The South African Mohair Growers Association is based in the heart
of Angora goat country at Jansenville while the industry association,
Mohair South Africa, has recently
built smart new headquarters in
Port Elizabeth, encompassing a
shop and conference facilities.
South Africa produces about half
of the world’s mohair.
Processing of mohair takes
place in Uitenhage, Port Elizabeth
and Berlin outside East London.
The mohair value chain includes
brokers, buyers, processors, spinners,
manufacturers and retailers.
The Stucken group controls
Mohair Spinners South Africa,
Hinterveld (a mill) and a processing
company called Gubb & Inggs
in Uitenhage.
Several agricultural companies
have mohair divisions: OVK (based
in Ladybrand) has a 34% shareholding
the Cape Mohair Wool
(CMW), a mohair brokerage; BKB
(Port Elizabeth headquarters) has
a mohair division that includes
auctions and brokering.
Other livestock
Livestock farming is the largest
agricultural subsector in South
Africa. The Eastern Cape holds
21% of the country’s cattle (about
3.2-million), 28% of its sheep (seven
million) and 46% of its goats,
making it the largest livestock
province by a large margin.
The rich natural grasslands of
the Eastern Cape have the potential
to produce high-value organic
meat, a product that is proving increasingly
popular in health-conscious
international markets. The
Eastern Cape can offer a range
that stretches from Karoo lamb
to CAB-certified free-range beef.
These niche meat products are
EASTERN CAPE BUSINESS 2018
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OVERVIEW
leaner, healthier and often tastier
than mass-produced alternatives.
High-value meat cuts such
as these will increase the value of
exports from the Eastern Cape.
The Border region is very strong
in beef production.
Stats confirm that South Africa
has a large meat-eating population,
as South Africans consume
on average 13.7kg of beef every
year, of which lamb or mutton
makes up around 3.4kg.
range of flavoured milks, cheeses, custards, butter, fruit drinks and
ice cream under many brand labels), Dairybelle (Cookhouse near
Somerset East; cheeses), Woodlands Dairy (Humansdorp; UHT milk,
First Choice Brand), Sundale Free Range Dairy (East London Industrial
Development Zone).
Dairy
About a quarter of South Africa’s
milk comes from the Eastern
Cape. Although conditions vary
greatly from the luscious green
grasses of the Lower Tsitsikamma
to the drier conditions of the
Karoo, they all seem to suit milkproducing
cows.
The bigger dairies include
Coega Dairy which was founded
in 2011 and is situated in the
Coega IDZ. Coega Dairy is one
of South Africa’s 10 largest dairies
with a turnover of more than
R1.5-billion and produces milk
under the Coastal label as well
as under contract for various
retailers. It supplies milk all over
South Africa. It also manages the
Famous Brands Cheese Company
within the IDZ as part of a joint
venture with Famous Brands.
Other dairy operations include
Dawson Dairy (just outside
Port Elizabeth), Crickley
Dairy (Queenstown), Clover
Dairy (Port Elizabeth; packaging
and fresh pasteurised milk
processing, long-life UHT milk),
Parmalat (Port Elizabeth; a wide
ONLINE RESOURCES
Agri Eastern Cape: www.agriec.co.za
Chicory Producers Association: www.chicory.co.za
Eastern Cape Department of Rural Development and Agrarian
Reform: www.drdar.gov.za
Eastern Cape Development Corporation: www.ecdc.co.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
Milk Producers Organisation: www.mpo.co.za
Mohair South Africa: www.mohair.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
National Woolgrowers’ Association of South Africa:
www.nwga.co.za
South African Mohair Growers Association: www.angoras.co.za
45 EASTERN CAPE BUSINESS 2018

OVERVIEW
Forestry
Thousands of hectares have been identified for new planting.
Forestry is an important part of government plans to expand
agri-processing. More than 3 400ha of new land has been
planted and timber harvests are expected within three years.
Six community projects in the district municipalities of OR
Tambo and Alfred Nzo are employing more than 1 000 people.
Rural Enterprise Development (RED) hubs have been established
in Mqanduli and Ncorha, with funding from the Jobs Fund, the
Eastern Cape Development Corporation and the Eastern Cape Rural
Development Agency (ECRDA). The Mqanduli Mill is supplying the
Nicks Spar in King William’s Town.
According to the ECRDA, government plantations have more than
15 000ha of unplanted areas which would be easy to develop: they
do not require high initiation costs because no licence is required.
The Eastern Cape’s forestry sector comprises 130 000ha of plantations,
46 sawmills, two chipboard operations, 10 pole treatment plants,
a veneer plant and six charcoal plants, which collectively process about
770 500 cubic metres of timber annually.
The region is well-served by wood-processing facilities such as
the R1.3-billion board plant outside Ugie that is owned by PG Bison.
Another of the province’s major forestry stakeholders is Amathola
Forestry, along with their sister company Rance Timber’s Kubusi and
Sandile Sawmill near Stutterheim, producing 45 000 cubic metres of
sawn board annually.
About 75% of the province’s plantations are controlled by the private
sector. Forestry South Africa has set up a Business Development
Unit to empower small-scale timber growers.
ONLINE RESOURCES
Eastern Cape Department of Rural Development and Agrarian
Reform: www.drdar.gov.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
Forestry SA: www.forestry.co.za
Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
South African Institute for Forestry: www.saif.org.za
SECTOR INSIGHT
Mqanduli Mill is supplying a
large retailer in King William’s
Town.
The ECRDA aims to transform
unproductive communal land
assets through commercial forestry
development. The ECRDA’s
Sinawo project in Mbizana has
started selling timber to Sappi
and intends commercialising all
its operations.
In 2015/16 the project earned
about R7-million from the sale of
timber and the total employee
count rose to 208. Sappi and
PG Bison are supporting these
community initiatives.
Paper and packaging group
Sappi is working with the ECRDA
and with several communities
to establish forestation programmes.
At Mkambathi a total of 668ha
has been planted and Sappi has
agreed to buy 65% of the timber
produced and to give technical
support where it can.
Downstream opportunities
created by new plantations include
a planned treated-pole
plant in Butterworth and a paper
and pulp mill in Mthatha, which
has also been selected as a future
furniture-sector incubator.
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OVERVIEW
Aquaculture
Fish from the Karoo will soon be a popular dish.
ONLINE RESOURCES
Aquaculture Association of South Africa: www.aasa-aqua.co.za
Aquaculture Development and Enhancement Programme:
www.thedti.gov.za
Coega IDZ: www.coega.co.za
East London Industrial Development Zone: www.elidz.co.za
Operation Phakisa: www.operationphakisa.gov.za
South African International Maritime Institute: www.saimi.co.za
South African Institute of Aquatic Biodiversity: www.saiab.ac.za
SECTOR INSIGHT
The provincial government
is investing in fish-farming
technology.
Investment in local infrastructure at the East London Industrial
Development Zone (ELIDZ) is focussed on localising fin fish farming
technology. In 2017/18, an amount of R15-million was set aside
by the Eastern Cape Provincial Government for this purpose.
The Science and Technology Park at the ELIDZ could also become
the site of a marine sector incubation programme to foster interest
in the Oceans Economy among young people and entrepreneurs.
INMED South Africa, a non-profit organisation devoted to better
health and nutrition for children, in partnership with the Mondelēz
International Foundation, launched a R37-million commercial-scale
aquaponic system on the Missionvale campus of Nelson Mandela
Metropolitan University (NMMU) in 2017. A total of 116 schools will
benefit from the project. Waste water will be used to irrigate vegetables
and used again to top up the fish tanks once the nutrients have been
absorbed by the plants.
Aquaponics Innovations produces red tilapia and catfish from its
aquaponics tunnel in Grahamstown. “Karoo Catch” is the brand name
for freshwater fish produced by Blue Karoo Trust, a project taking shape
near the town of Graaff-Reinet. A central farm will be supported by
39 outgrowers and the aim is to produce about 14 000 tons of fish
annually. The intended market is organisations that need protein in
bulk such as hospitals, schools and government institutions. The risk
capital unit of the Eastern Cape Development Corporation (ECDC) is
supporting the venture.
Aquaculture is an important part of the South African government’s
Operation Phakisa strategy.
The intention is to increase
the aquaculture sector’s revenue
from about half a billion rand, to
R1.4-billion in 2019.
Pure Ocean Aquaculture and
Ocean Wise are located within
the East London IDZ. At Zone
10 in the Coega IDZ, 250ha has
been set aside for fresh fish
farming and 100ha for marine
farming. A processing plant and
research and development and
training facilities are planned.
The Coega Development
Corporation estimates that 34
250 tons of abalone, Dusky Kob
and seaweed could be harvested.
The National Department of
Science and Technology (DST) is
working with Irvin & Johnson in
running a marine finfish growout
pilot in Algoa Bay.
A programme of the Department
of Trade and Industry,
the Aquaculture Development
and Enhancement Programme
(ADEP), offers a reimbursable
grant up to R40-million.
47 EASTERN CAPE BUSINESS 2018

OVERVIEW
Agri-processing
Manufacturers are harvesting the Eastern Cape’s excellent produce.
SECTOR INSIGHT
A fibre manufacturing project
has been started in
Butterworth.
• Mohair is a globally popular
luxury product.
Agri-processing is one of the key planks of the Provincial
Economic Development Strategy of the Eastern Cape
Department of Economic Development, Environmental
Affairs and Tourism (DEDEAT). Part of the strategy is decentralisation,
or locating facilities in smaller or rural centres.
The Local, Regional and Economic Development Fund (LRED) is supporting
a fibre manufacturing project in Butterworth with cashmere
wool as the feedstock. The intention is to create jobs and revive the fibre
industry in the Amathole District Municipality.
Wool, mohair, citrus and pineapples, dairy products and salt are some
of the products of the soil of the Eastern Cape that manufacturers are turning
into jerseys, scarves, jams, juices, cheeses, yoghurts and cakes of salt.
The Eastern Cape has more
livestock than any other South
African province, produces close
to a quarter of South Africa’s milk
and is the second-largest producer
of citrus fruits.
Famous Brands has 2 600 restaurants
throughout South Africa,
including the brands that made
their debut in Port Elizabeth, Vovo
Telo and Dulce Café. Famous Brands
has increased its manufacturing
footprint in the Coega Industrial
Development Zone (CIDZ). Zone
Three of the Coega IDZ is devoted
to agriprocessing.
Other tenants of the Coega
IDZ include logistics companies
like PE Cold Storage, River Edge
Trading (which trades in sugar and
syrup across Southern Africa) and
Cerebos. Cerebos’s 30 000-ton per
annum plant at Coega was awarded
a top food safety standard certification
on its 70th birthday in 2015,
the FSSC 22000.
The East London IDZ has two
aquaculture tenants and the large
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OVERVIEW
Sundale Dairy, as well as a regional
depot of the Mediterranean
Shipping Company.
The Eastern Cape Rural
Development Agency (ECRDA) is
active in helping small-scale farmers
get access to markets and to
become part of the agriprocessing
chain. The implementation
of Rural Enterprise Development
(RED) hubs is central to this strategy.
RED hubs will supply tractors,
harvesters and offer storage facilities
and milling plants. There will
also be opportunities for farmers
to sell direct to members of their
own community instead of shipping
produce off to a distant location
to be processed there. The first
four hubs will be sited in the district
municipalities of OR Tambo, Chris
Hani and Alfred Nzo.
Agri-parks will support the addition
of value to primary products:
these have been developed
at Lambasi, Ncorha, Sundays River
Valley, Butterworth, Matatiele and
Sterkspruit-Senqu.
The Eastern Cape Development
Corporation (ECDC) also has a
role in supporting agriprocessing
through loans and equity arrangements:
projects that have received
financial support include aquaculture,
the production of dietary
fibre from pineapples and bamboo
products.
The Eastern Cape industry is
further expanding as producers
tend to favour high-rainfall coastal
areas such as the Eastern Cape.
The bigger dairies include Coega
Dairy which was founded in 2011
and is situated in the Coega IDZ.
The Coega Dairy in the Coega
IDZ produces the brand Coastal
and sells milk to all parts of South
Africa. It also manages the Famous Brands Cheese Company. which
supplies product throughout the country.
The province’s farmers mostly sell raw milk to two processors: Parmalat
and Clover. Small-scale dairy farming presents an opportunity to develop
the industry in the former homeland areas, especially in a range of previously
untapped products such as milk powder, speciality cheeses and
long-life milk.
Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures
natural cheese, processed cheese and speciality cheeses at its factory
in Cookhouse near Somerset East. Ouma Rusks are still made in the small
rural town where they were invented, Molteno, and the current owner of
the brand, Foodcorp, has increased production volumes.
Cadbury Chocolates operates a big site across the lake from the football
stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its
factory in East London. The Sasko mill in Port Elizabeth is the province’s
only big milling plant.
Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major
beverage manufacturers in Port Elizabeth and Distell has a bottling plant
in the city.
Sovereign Foods in Uitenhage is the country’s fourth-biggest producer
of poultry and has been the target of a take-over by Country Birds for
some time, but the process has been dragged out because Sovereign
management do not want to sell.
South Africa is the second-largest producer of chicory in the world.
Chicory is grown primarily in the coastal areas around Alexandria between
Port Elizabeth and Port Alfred. A drying plant has been established there
and the dried chicory produced is sold to coffee manufacturers nationwide
for local consumption.
Sugar is grown on the northern border of the province, in North
Pondoland. An opportunity for diversification in crop production exists
with the aloe ferox plant, which is indigenous to the Eastern Cape. Like
aloe vera, which is in demand worldwide in cosmetic and health products,
aloe ferox is used for a wide range of skin conditions and various medical
ailments.
ONLINE RESOURCES
Border Kei Chamber of Business: www.bkcob.co.za
Coega IDZ: www.coega.co.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
East London Industrial Development Zone: www.elidz.co.za
Nelson Mandela Business Chamber:
www.nmbbusinesschamber.co.za
Organic Agricultural Association of South Africa:
www.organicsouthafrica.co.za
Perishable Products Export Control Board: www.ppecb.com
49 EASTERN CAPE BUSINESS 2018

OVERVIEW
Manufacturing
Clusters are promoting niche manufacturing.
SECTOR INSIGHT
• First National Battery has
the country’s first industrial
cell factory.
Several cluster development programmes in the Eastern
Cape aim to develop specific industries by bringing together
expertise and logistical support.
Marine manufacturing will be the focus of the Mandela
Bay Composites Cluster (MBCC). With funding from the Eastern Cape
Department of Economic Development, Environmental Affairs and
Tourism (DEDEAT) and the National Department of Trade and Industry
(dti), MBCC will target skills development, innovation in the field of
composites and work on improving the value chain and links to the
supply chain.
A Non-Automotive Manufacturing (NAM) Cluster will concentrate
on training, supplier development, energy efficiencies and developing
new markets. An Energy Manufacturing Hub is planned for 2018.
The dti also offers a Competitiveness Enhancement Programme
aimed at medium-sized manufacturers. It includes a cost-sharing grant
of between 30% and 50% for investments up to R50-million and up to
80% if a group of smaller companies want to collaborate on matters
such as advertising.
New and revived industrial parks are an important plank in provincial
government policy to promote manufacturing. A new park has
been launched in Queenstown, Komani Industrial Park. Seven local
small businesses were involved in constructing the facility. Vulindlela
Heights Industrial Park (Mthatha) has received security upgrades. The
Dimbaza Industrial Park welcomed a new tenant in 2017 in cooler
box manufacturer Ikusasa Green. The park has 24 tenants and serves
King William’s Town.
The provincial government supports diversification. With the automotive
sector supplying 30% of manufacturing employment and 32%
of manufacturing gross value-added, the province’s economy might
be vulnerable to fluctuations in demand for vehicles. The strategy is
targeting sectors where the province already has a competitive advantage
(such as wool and mohair), is labour intensive, will have a broad
impact and has low barriers for SMME entry. Sectors targeted include:
agri-processing and food; timber; tourism; construction; chemicals;
energy and mariculture.
One of South Africa’s most successful manufacturers is Port
Elizabeth-based Aspen. The company has 60 businesses in 50 countries
and the Port Elizabeth and
East London factories play an
important role in producing excellent
products in bulk. The Port
Elizabeth site makes more than
12-billion oral solid dosage forms
every year, in addition to more
than 25-million units of Murine
and Clear Eye eye drops being
made for export to the US. The
PE complex has four components,
covering oral solid, liquid, steriles
and niche high-potency pharmaceutical
products.
First National Battery, a part of
the Metair Group, has one factory
at Fort Jackson, just outside East
London (making plastic components)
and two factories in East
London: automotive batteries
(10 000 per day capacity); industrial
batteries (first in South Africa
producing industrial cells).
Mpact runs two corrugated
packaging convertor facilities in
the Eastern Cape, at Deal Part
in Port Elizabeth and Gately
Township, East London. The
company recently spent R150-
million on doubling capacity at
EASTERN CAPE BUSINESS 2018
50

OVERVIEW
the Port Elizabeth plant. Mpact
has 21 manufacturing sites across
Southern Africa.
Bodene, a subsidiary of
Fresenius Kabi, makes intravenous
medicine in Port Elizabeth.
East London hosts Johnson &
Johnson’s finance, operations
and research and development
divisions.
Swedish concern Fagerhult
Group has entered the South
African market via an acquisition
of the factory of Port Elizabeth’s
Lighting Innovations, and the
two subsidiary companies Arrow
Lighting and Beacon Lighting.
Montego Pet Nutrition is
Graaff-Reinet’s biggest private
employer, with more than 200
staff members working in the
Karoo town’s factory. Established
in 2000, the company now makes
about 200 tons of product daily
and supplies more than 1 000
retail outlets across South Africa.
There is great potential to
create more value from the
excellent wool, leather and
mohair that the province’s
livestock produce. The production
and working with merino wool
and mohair fibres are skills that
have been handed down from
generation to generation.
A fibre processing plant to spin
wool and mohair fibre into yarn is
planned, as is a textile mill to focus
on cotton, poly-cotton and acrylic
fabric. The latter is planned for the
IDZ in East London, which is already
home to Da Gama Textiles,
whose factory has the capacity
to produce 45-million square metres
of fabric per annum. Da Gama
makes the popular and distinctive
shweshwe fabric, using its own
unique printing process which makes it very difficult for fakers to copy.
The BBF Safety Group invested R16-million in a new machine at its
Port Elizabeth plant in 2016 which will take shoe production up to 5 000
pairs per day. The injection moulding machine can inject a moulded
sole to the shoe upper every 15 seconds. The Lemaitre brand is widely
known and used within the mining industry.
The BBF Group was formed from a merger of several South African
companies, to allow them to specialise and to compete with cheap
foreign imports. The companies were Bagshaw Footwear, Beier Safety
Footwear, Bronx Safety, United Frams and Wayne.
ONLINE RESOURCES
Border-Kei Chamber of Commerce: www.bkcob.co.za
Coega Development Corporation: www.coega.co.za
Department of Economic Development, Environmental Affairs and
Tourism: www.dedea.gov.za
East London Industrial Development Zone: www.elidz.co.za
Manufacturing Circle: wwww.manufacturingcircle.co.za
National Association of Pharmaceutical Manufacturers:
www.napm.co.za
South African Bureau of Standards: www.sabs.ca.za
51 EASTERN CAPE BUSINESS 2018

OVERVIEW
Automotive
Beijing Automotive’s new factory is a major boost for the sector.
SECTOR INSIGHT
Volkswagen SA makes
130 000 engines annually in
Uitenhage.
• Daimler is introducing a
new commuter bus.
Already home to some of the biggest brands in original equipment
manufacturing (OEM) and automotive components in
Volkswagen, Mercedes-Benz, Ford, Goodyear, Continental
Tyre SA, Bridgestone and Shatterprufe, the addition of two
Chinese firms, First Automotive Works (FAW) and Beijing Automobile
Corporation (BAIC), confirms the Eastern Cape’s prime position in
this sector.
Beijing Automotive Industry Group (BAIC) expects to be building
50 000 vehicles per year at its site at Coega Industrial Development
Zone (IDZ) by 2022. Construction of the factory was held up in 2017
because of concerns by local small businesses about the percentage
of work that was going to local business.
Companies like BAIC may well be positioning themselves to push
into Africa, not only for selling vehicles but for sending automotive
parts and partly-assembled kits further north. A new pan-African
organisation has been established to promote the auto industry on
the continent, the African Association of Automotive Manufacturers
(AAAM). Most international brands such as Volkswagen have given
responsibility for Africa to their South African offices.
The Eastern Cape manufactures half of the country’s passenger
vehicles and provides 51% of South Africa’s vehicle exports. The sector
accounts for over 40 000 formalsector
jobs in the Eastern Cape.
The South Africa automotive
sector makes up about 7%
of South Africa’s gross domestic
product and is responsible for approximately
12% of the country’s
manufacturing exports.
The decision in 2017 of General
Motors to disinvest from South
Africa does not seem to have
had any knock-on effect. The
company’s selling of its plant in
Port Elizabeth was just one sale
of many around the world. Isuzu
has bought the factory.
Volkswagen’s two new types
of Polos started rolling off the
production line in Uitenhage in
2018. Volkswagen’s R6.1-billion
investment will take production
up to full capacity of 160 000 vehicles
in 2019, from 110 000 in 2017.
The increase will mean that a third
shift will be introduced.
In addition, VWSA manufactures
130 000 engines for local demand
and for export to countries
such as Russia, India and Mexico.
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OVERVIEW
Ford in Port Elizabeth is the country’s
other engine manufacturer.
The potential of computers
to improve efficiencies in the
automotive sector is enormous.
Enterprise Resource Planning
(ERP) refers to software that
links up various aspects of a
business. This is a speciality of
SYSPRO, which is active in many
sectors, including automotive.
A recent product allows for reduced
waste in manufacturing
and improves links between
units (or companies) in the supply
chain.
Smart factories are the
subject of research being undertaken
by the Department
of Computing Sciences at the
Nelson Mandela Metropolitan
University (NMMU). The research
is supported by Volkswagen SA
and Mercedes-Benz SA.
A new commuter bus
launched by Daimler Trucks
and Buses Southern Africa will
be assembled at the company’s
plant in East London in 2018.
Fewer gear shifts are one of the
features of the OF-1723, which
should increase fuel efficiency.
The establishment of the
Eastern Cape Automotive
Industry Forum (ECAIF) in 2016
is expected to assist black business
people to get involved in
the sector. A programme to encourage
young people to enter
the motor industry, PRIME
(Programme for Industrial and
Manufacturing Excellence),
has seen the first group of 137
graduates take up placements.
An Automotive Production
and Development Programme
(APDP) is in place to support the
automotive industry and to encourage investment in local facilities.
It is run by the Department of Trade and Industry (dti).
Components
Only 35% of the components and parts used to make vehicles in
South Africa are produced locally. The large number of vehicle models
produced in South Africa is a complicating factor for the components
sector: low volumes often mean high prices. Two Port Elizabeth companies
export large portions of their production to overcome this:
Schaeffler SA exports to its international parent so that it can achieve
higher volumes. Shatterprufe supplies most windscreens to the South
African market but there are 12 model ranges to serve.
About 150 automotive suppliers of various types operate in the
Eastern Cape. Sectors include leather works, batteries, automotive
tooling, catalytic converters, glass, lamps, radiators and alloy wheels.
The catalytic converter sector experienced incredible growth for
several years but some volatility in the platinum mining sector, together
with increased interest in electric vehicles and hybrids, means that
exporters (largely based in Port Elizabeth) have had to work harder.
SJM Flex SA, manufacturer of flexible, stainless-steel couplings,
was named overall exporter of the year by the Exporters’ Club in 2016.
Catalytic converter Eberspächer SA won a merit award in the corporate
category for what the judges called its “entrepreneurial flair and major
accomplishments”. Testing company Jendamark Automation also won
a merit award.
Firestone was the first tyre company to be established in Port
Elizabeth. It was soon followed by Goodyear (in Uitenhage) and General
Tyre (now Continental Tyre SA). Continental has about 1 600 employees
and sells tyres domestically and internationally. Bridgestone has
production facilities in Port Elizabeth and Brits.
Both the Coega IDZ and the East London IDZ are positioning themselves
as sites for the components manufacturing sector.
ONLINE RESOURCES
Automotive Industry Development Centre: www.aidc.co.za
Automotive Industry Export Council: www.aiec.co.za
Automotive Production and Development Programme:
www.thedti.co.za
Catalytic Converter Interest Group: www.sassda.co.za
National Association of Automotive Component and Allied
Manufacturers: www.naacam.co.za
National Association of Automobile Manufacturers of South Africa:
www.naamsa.co.za
53 EASTERN CAPE BUSINESS 2018

OVERVIEW
Water
A large project is planned for the Umzimvubu River.
SECTOR INSIGHT
Desalination joint ventures
are under discussion.
• 37% of South Africa’s
water is lost.
Several plans are under consideration to alleviate the water
shortages facing the Eastern Cape’s towns and rural areas.
In 2017, the worst-hit district municipalities, Amathole, Chris
Hani and Joe Gqabi District Municipalities, received help from
national and provincial authorities.
The Nelson Mandela Bay Municipality has been looking at ways of
finding new water, including desalination and tapping new underground
water sources.
The completion of phase two of the Nooitgedacht low-level water
scheme during 2017 helped ease the pressure on the metropole,
with the biggest dams such as the Churchill and Kouga dams having
reached critically low levels of 15%. A desalination plant at Swartkops
and new boreholes around the Uitenhage Springs are among other
projects that will help to alleviate shortages.
The municipality’s website is raising awareness about water scarcity.
The slogans that come up on the scroll include, “Go Grey!” and “Public
enemy: water leaks”.
One option being considered is for the Nelson Mandela Bay
Municipality to join hands with SABMiller, which needs a lot of water
to makes its products, and Marina Sea Salt, which desalinates sea
water to make salt. The Coega
Development Corporation (CDC)
is also investigating desalination
as it needs water for the gasrelated
industries at the Coega
Industrial Development Zone.
The Nelson Mandela Bay
metropole currently gets its water
from 10 dams, six of which
are owned by the municipality.
The Churchill and Impofu dams
supply half the total supply, with
the latter dam having a full storage
capacity of 105-million cubic
metres. The municipality maintains
about 3 000km of reticulation
water mains, about 650km
of bulk-water pipelines and six
waste-water treatment works.
Water services are provided to
the citizens of the Eastern Cape by
17 water service authorities which
oversee 163 drinking water supply
systems. Muncipalities and
Amatola Water are the primary
providers of services.
Purification, desalination,
water-leakage management and
waste-water treatment are some
of the problems facing the sector
and solutions are urgently
needed. There are opportunities
for innovative entrepreneurs.
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OVERVIEW
According to Water Wheel magazine, 37% of water delivered to the
nation’s municipalities is lost.
A water supply and hydropower project is planned on the
Umzimvubu River, under the control of the National Department
of Water and Sanitation. The project entails the construction of two
multipurpose dams, Ntabelanga and Laleni Dams, on the Tsitsa River,
which is a tributary of the Umzimvubu, to supply irrigated agriculture,
domestic and industrial water requirements, and hydropower generation
in the catchment area. The smaller dam at Tsitsa Falls will supply
the hydropower element.
The Umzimvubu catchment and river system stretches for over
200km from its source in the Maloti‐Drakensberg watershed on the
Lesotho escarpment to Port St Johns. The river and adjacent forests,
grasslands, thickets and dune vegetation are amazingly diverse but are
threatened in various ways. The Umzimvubu Catchment Partnership
Programme wants to find ways protect the environment while helping
with poverty alleviation through the provision of water, erosion control
and fodder for livestock and food security.
In 2017/18 the DWS will spend R12.5-billion on dams, water transfer
schemes and bulk distribution. Improving and expanding water
infrastructure are key elements to ensuring water security in a waterscarce
country.
The long-term drought that afflicted South Africa brought several
responses from the Eastern Cape Department of Water and Sanitation
(DWS) and have led to the development of the Eastern Cape Water
Master Plan in an effort to alleviate the drought situation.
Another intervention by DWS, the Hyancinth project, has a budget
of R6.09-million. The invasion of the aquatic weed needs to be controlled
and, if unchecked, will disrupt water systems throughout the
province. Importantly, clearing water hyacinth can provide significant
volumes of biomass for the creation of alternative bioenergy.
Systems
Inter-basin water transfers are the norm in South Africa. In the 1950s,
ONLINE RESOURCES
Amatola Water: www.amatolawater.co.za
National Department of Water and Sanitation: www.dwa.gov.za
Umzimvubu Catchment Partnership Programme:
www.umzimvubu.org
Water Institute of South Africa: www.wisa.org.za
Water Research Commission: www.wrc.org.za
the Orange River Project delivered
water from the Orange River
to citrus farmers in the far-away
Eastern Cape. This project made
the citrus industry possible in
places like Addo.
The country’s river systems
are mostly not where its people
are, so 80% of the water used
by the most populous and economically
important province,
Gauteng, is imported from
neighbouring Lesotho.
The Nooitgedacht Low Level
Scheme is an extension of this
system of transfers. It treats water
from the Gariep Dam which
comes to the Port Elizabeth area
via the Orange-Fish River Tunnel
and various rivers that are connected
to the Sundays River
irrigation scheme.
Amatola Water manages
bulk water infrastructure across
50 000km², encompassing the district
municipalities of Chris Hani
and Amathole, together with
portions of other municipal areas.
Backlogs in rural areas and smaller
municipalities are still prevalent,
and this water authority is playing
a key role in reducing and eradicating
these inequalities.
The Eastern Cape
Development Corporation is
helping the Makana Municipality
in terms of the Integrated
Social Infrastructure Delivery
Programme (ISIDP). With the city
of Grahamstown housing many
schools and a university (and the
National Arts Festival), the Makana
Water Crisis Intervention Project is
strategically important .
55 EASTERN CAPE BUSINESS 2018

OVERVIEW
Education
Nelson Mandela University has launched an Ocean Sciences Campus.
Research students from the University of Fort Hare are helping
the small village of Upper Blinkwater get their own electricity
from a mini-grid powered by biogas digesters. Staying
current with the latest research in renewable energy is vital
for the provincial economy, as is the need to engage in research that
helps communities.
The Eastern Cape is home to five universities, three of which are
comprehensive universities. Nelson Mandela Metropolitan University
(NMMU), Walter Sisulu University (WSU) and University of South Africa
(Unisa) offer both diplomas (vocational) and academic programmes
(degrees).
NMMU has six campuses (including one in the Western Cape town
of George) and seven faculties. In 2017, NMMU inaugurated its Ocean
Science Campus at its Port Elizabeth base. This includes a unit aimed at
combating sea fisheries crime (FishFORCE, with support from Norway)
and the South African International Maritime Institute. The university
has four marine sector chairs funded by the South African Research
Chair Initiative (SARChI) and the National Research Foundation (NRF):
• Marine Spatial Planning (ocean zoning)
• Shallow Water Ecosystems (including rare coastal rock pools)
• Ocean Sciences and Food Security (with Southampton University)
• Law of the Sea (including oil resource management, port law
and marine tourism law).
Walter Sisulu University has four faculties: Education; Health Sciences;
Business, Management Sciences and Law; and Science, Engineering
and Technology.
SECTOR INSIGHT
Biogas digesters are under
the spotlight at Fort Hare
University.
• The Mvula Trust is rolling
out water and sanitation
to schools.
Rhodes University in
Grahamstown had just over 8 000
students in 2015, the majority of
whom live in residences, but its
academic and research staff have
a disproportionately high number
of master’s and doctoral degrees.
Rhodes has 14 of the national research
chairs appointed under
SARChI, including chairs in radio
astronomy and biotechnology.
The university’s journalism school
is a leader in its field.
Fort Hare University has five
faculties, 10 schools and, at its East
London campus, the Institute of
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OVERVIEW
Social and Economic Research.
Fort Hare is supported by the
National Research Foundation
and participates and has approved
research programmes in
Water Resource Management,
Sustainable Agriculture and Land
Use Strategies.
There are several examples
in the Eastern Cape of collaboration
between the manufacturing
sector and educational
institutions: General Motors
SA has assigned R3.6-million
to a Chair in Mechatronics at
Nelson Mandela Metropolitan
University (NMMU). NMMU offers
a Bachelor of Engineering
in Mechatronics, covering electronics,
mechanical engineering
and computer-aided design.
Volkswagen supports the
International Chair in Automotive
Engineering at NMMU.
Rhodes University’s Centre for
Environmental Water Quality, within
the Institute for Water Research,
is sponsored by Unilever.
InnoVenton: NMMU Institute of
Chemical Technology commercialises
research and has several
clients in the private sector.
Colleges and schools
The provincial government has
committed a sum of R1.5-billion
over five years to aligning TVET
colleges more closely with the
needs of the local economy
through learnerships.
The Eastern Cape has eight
Technical and Vocational
Education Training (TVET) colleges,
most of which have more
than one campus: Buffalo City, Port Elizabeth, Lovedale, King Hintsa,
Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College.
King Sabata Dalinyebo offers business and engineering studies among
its formal programmes, and short courses in bricklaying and computer
studies.
Over 20 000 students are enrolled at this level in the province.
The Eastcape Midlands TVET College has five sites: in Graaff-Reinet
and Grahamstown and three in Uitenhage, where students can
study Business Studies, Electrical Engineering, ICT and Computer
Science and Mechanical Engineering. The other campuses specialise
in Business Studies.
Lovedale Public TVET College serves the community through
three campuses at King William’s Town, Alice and Zwelitsha, near
King William’s Town. The programmes of each campus reflect the
economic priorities of that region.
In Alice, the focus is on agriculture, King William’s Town offers
business diplomas, while engineering is available to students at the
Zwelitsha facility.
Buffalo City TVET College, with two large campuses in East London
and Mdantsane, specialises in Business and Engineering for full-time
studies, but offers a wide range of part-time courses as well. The college’s
School of Occupational Training is located at St Marks Road.
In the Eastern Cape, more than 90% of children in public schools
benefit from a non-fee policy. Grade R classes are attached to more
than 90% of primary schools.
The province’s school-nutrition programme feeds 1.6-million children,
while the transport programme delivers approximately 56 461
children to 614 schools.
Infrastructure is still lacking in many areas, something that the developmental
NGO Mvula Trust is putting right. With funding from the
Eastern Cape Department of Education, the trust in 2016/17 provided:
• 89 schools with sanitation
• 1 676 toilets
• 309 water tanks.
ONLINE RESOURCES
Eastern Cape Department of Education: www.ecdoe.gov.za
National Department of Basic Education: www.education.gov.za
National Department of Higher Education: www.dhet.gov.za
National Research Foundation: www.nrf.ac.za
Ocean Sciences campus: www.oceansciences.mandela.ac.za
Technology Innovation Agency: www.tia.org.za
57 EASTERN CAPE BUSINESS 2018

OVERVIEW
Banking and finance
New banking licences are being issued.
Agriculture and renewable energy are two of the most important
economic sectors in the Eastern Cape. The first is as
old as settlement in the province, the second has taken off
only in the last few years: for both sectors, the banking and
financial services sector is vital.
All retail banks have agricultural desks, several finance agencies of
provincial and national government have an agricultural focus, and
most of the large agricultural companies have a range of financial
products to offer farmers.
Nedbank Business Banking has a new focus on agriculture, with
business managers in Port Elizabeth, Humansdorp and East London
all supported by agricultural specialists. Nedbank sponsors the Komga
Show and the bank has paid out loans to the Humansdorp Co-Op
which specialises in citrus and dairy products.
In the far north-eastern part of the province, Nedbank, the WWF,
and Environmental and Rural Solutions (ERS) are partners in a project to
improve land use and to develop a cattle auction to assist farmers and
buyers in the area to get better access to markets. In 2017 the fourth
cattle auction was held at a specially developed site in Mzongwana.
Improved grazing techniques are leading to better prices being paid
by commercial farmers.
The agreement that Absa Business Bank (ABB) signed with agricultural
company BKB allows farmers to borrow money against their
produce. The bank flagged the event as the precursor to a possible
future agricultural bank. With ABB’s experience in the agricultural
field, and BKB’s access to 19 000 primary producers, the agreement
has the potential to unlock investment in the agricultural and agriprocessing
sectors. BKB has a national presence, but its headquarters
are in Port Elizabeth. It is active in many spheres and has a strong wool
and mohair profile.
Investment company PSG Group is one of the biggest investors
in Capitec and is a majority shareholder in PSG Konsult, a financial
services company. Like other companies of its type, PSG Konsult is
present in the big Eastern Cape towns, but it also has a presence in
regional centres such as Middelburg and Aliwal North. From the Karoo
Midlands towns of Graaff-Reinet, Cradock, Adelaide and Somerset East,
the firm of Gerber, Botha & Gowar dispenses financial advice across
SECTOR INSIGHT
Nedbank and partners are
raising incomes in a rural
community.
large parts of central South Africa.
Standard Bank, which was
founded in Port Elizabeth in
1862, operates in 32 countries
(20 in Africa), has nearly 69 000
employees and assets in the
region of $16-billion. Together
with the other banks, consulting
companies and other firms
in the financial and business services
sector, it is responsible of
19.2% of the Eastern Cape’s Gross
Domestic Product (StatsSA). The
sector provides employment for
141 000 people.
In Port Elizabeth, there is a
geographic concentration of financial
services: the city’s own
financial district stretches along
a section of Cape Road from Mill
Park to Newton Park and includes
the Greenacres shop and office
complex. This includes the offices
of PSG Konsult, Liberty Life,
Alexander Forbes, Hollard and
Momentum. Nedbank Business
Banking has its headquarters
just one block away from the
Greenacres complex. Only AON
appear to buck the trend, with
offices in Central.
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OVERVIEW
Also on Cape Road and in the
Greenacres complex is FNB’s regional
office, FNB Newton Place.
This building houses all the
FirstRand group’s offices, such as
Rand Merchant Bank, FNB Private
Clients and FNB Online.
Whereas the private sector is
the biggest factor in the banking
sector, the state is moving
to create publicly-owned banks.
Post Bank, a division of the South
African Post Office, is far advanced
in its application for a full banking
licence and a further two
state banks are planned: Ithala
(currently an enterprise funder
in KwaZulu-Natal) and a Human
Settlements Development Bank,
which will focus on housing for
poorer households and statefunded
housing projects. This
may have relevance for a province
such as the Eastern Cape, which
has a large rural population.
Several new licences for banks
are in the pipeline, with the first
of these being a digital bank. The
banking licence issued in 2017 to
Take Your Money Everywhere
(Tyme, by Commonwealth Bank
of Australia) is the first to be issued
since Capitec was granted
a licence by the South African
Reserve Bank in 1999.
Capitec is now a major player
on the South African retail banking
scene and has 117 branches
or ATMs across the Eastern Cape,
including Bizana and Lusikisiki.
It now merits inclusion in a new
retail “Big Five”, with Standard
Bank, Absa, FNB and Nedbank.
In terms of assets, the five biggest
banks are Standard Bank,
FirstRand (which owns FNB), Absa (which is part of Barclays Group
Africa), Nedbank and Investec. According to the Reserve Bank, this
group had 89% of market share in 2015.
Another applicant for a new banking licence is Discovery, an existing
giant on the JSE. With a market value of R83-billion and a wide range
of products and services, it already has access to millions of customers.
Life insurer MMI Holdings is entering a partnership with African Bank
to enable it to start taking deposits and loaning money.
ONLINE RESOURCES
Association for Savings and Investment South Africa:
www.asisa.org.za
Auditor-General of South Africa: www.agsa.co.za
Chartered Institute for Government Finance, Audit and Risk
Officers: www.cigfaro.co.za
Eastern Cape Development Corporation: www.ecdc.co.za
Financial Services Board: www.fsb.co.za
59 EASTERN CAPE BUSINESS 2018

OVERVIEW
Development finance and
SMME support
Aquaponics and forestry are receiving support.
Training programmes for new business owners and young
people, a commitment from the provincial government and
from municipalities that goods and services will be sourced
from small, medium and micro-enterprises (SMMEs) and loan
financing for start-ups: these are among the initiatives in place to help
small businesses and co-operatives in the Eastern Cape.
The provincial government has signed an agreement with the
South African National Defence Force to take on young people to
work on infrastructure maintenance and the Provincial Departments
of Health and Education are making similar plans. There is a focus on
agriculture, with the Office of the Premier and the Department of
Rural Development and Agrarian Reform considering the creation of
a fund to support training for young people and start-up enterprises
in aquaculture and hydroponics.
In terms of the Local Economic Development Procurement
Framework, SMMEs will get 50% of all provincial government spending
on goods and services. A database has been established.
A programme of the National Department of Small Business
(DSBD) is to be rolled out at municipal level in the Eastern Cape. An
amount of R6.6-million has been allocated to the Informal and Micro-
Enterprise Development Programme (IMEDP). The DSBD has several
other programmes to assist SMMEs and co-operatives. These include:
• The Black Business Supplier Development Programme, a costsharing
grant to promote competitiveness
• The Co-operative Incentive Scheme, a 100% grant.
SECTOR INSIGHT
SMMEs will receive R121-
million in loans in 2017/18.
The Small Enterprise Development Agency (Seda) is an agency of
the DSBD and gives non-financial support to entrepreneurs through
training, assistance with filling in forms, marketing and creating business
plans. It helps small businesses draft applications for loan finance.
The Seda Technology Programme (Stp) helps potential businesses
become trading entities. Seda has a programme to make co-operatives
and jointly owned enterprises stronger. Seda’s main provincial office
is East London, with nine other offices located around the province.
Several of Seda’s technology incubators are in the Eastern Cape. Port
Elizabeth is the head office of the Chemin incubator which supports
SMMEs in the downstream chemical sector. Furntech (a furniture incubator)
has a branch in Mthatha
and there are also construction incubators
in the towns of Mthatha
and Port Elizabeth.
The Masisizane Fund offers
loan financing at good rates and
training through its Business
Accelerator programme. As a
non-profit initiative of the Old
Mutual Group, the fund focusses
on the cash flow of potential businesses
rather than insisting on
security in the form of property.
Since 2014, the agencies
of the Eastern Cape Provincial
Government have disbursed
R337-million in loans to entrepreneurs
in 748 businesses. For
2017/18, an amount of R121-
million has been allocated.
The big retail banks have desks
dedicated to promoting small enterprise
and several agencies have
a specific focus, for example the
Eastern Cape Rural Development
Agency (ECRDA).
In promoting forestry enterprise,
the ECRDA reported in
2015/16 having made R15-million
available, while the Eastern Cape
Development Corporation (ECDC)
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OVERVIEW
had contributed R8.3-million and
the Development Bank of South
Africa (DBSA) R64-million. This is
a good example of the variety of
funding available.
The Industrial Development
Corporation (IDC) is another
financing institution that is active
in the Eastern Cape. Several
development agencies receive
support from the IDC, for example
the Nkonkobe Development
Agency in the Amathole District.
Two of the ECDC’s seven business
units are devoted to small
business: Development Finance
and Enterprise Development. The
ECDC has several financial products
tailored to meet the various
needs of business, entrepreneurs
and investors, ranging from
short-term to long-term finance
and small- and micro-loans.
The ECDC and the Technology
Innovation Agency (TIA) jointly
run the TIA-ECD Innovation Seed
Fund Programme, which aims to
identify and co-fund earlier stage
technology innovation projects in
the province.
In its role as a provider of advice,
the ECDC assisted a delegation
from the Amahlubi Traditional
Council when it attended the
World Forestry Congress. This
is part of the DBSA Jobs Funds
Forestry projects. Help Desks
have been established to support
small business in Port Elizabeth
and East London.
One of the companies supported
by the ECDC, outdoor furniture
manufacturer PolyFibre Pty
(Ltd), has received SABS approval
for its products, which means the
company can move to commercialisation. PolyFibre uses recycled
plastic and pineapple waste to make its products.
As part of its Small Contractor Development, Training and
Community Participation programme, the South African National
Roads Agency (SANRAL) offered training to 20 people from four SMME
sub-contractors in the making of dolosse. Dolosse are the large interlocking
blocks of concrete used to protect the N2 and railway line from
the sea. Eight of the 2.5-ton dolosse are manufactured every day. The
project’s main concrete subcontractor is Dynaform.
The National Empowerment Fund (NEF) provides financial support
from R250 000 up to R75-million for start-ups, the expansion of existing
business, as well as the acquisition of equity. In the Eastern Cape,
the NEF is supporting companies working in the fields of solar energy,
restaurant franchises and transport.
The Nelson Mandela Bay Business Chamber has a section devoted to
SME support on its website and offers mentorship to start-ups and entrepreneurs.
The Border-Kei Business Chamber has similar programmes.
The Afrikaansehandelsinstituut (AHI) has rebranded as the Small
Business Institute. Representing over a hundred chambers, the SBI is
a member of Business Unity South Africa.
ONLINE RESOURCES
Eastern Cape Development Corporation: www.ecdc.co.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
National Department of Small Business Development:
www.dsbd.gov.za
National Small Business Chamber: www.nsbc.org.za
Small Enterprise Finance Agency: www.sefa.org.za
Small Enterprise Development Agency: www.seda.org.za
61 EASTERN CAPE BUSINESS 2018

LISTING
Eastern Cape Provincial
Government
A guide to the Eastern Cape’s provincial government
departments. Visit www.ecprov.gov.za
Office of the Premier
Premier: Phumulo Masualle
State House, Independent Avenue,
Bhisho 5605
Tel: +27 40 609 6626
Fax: +27 40 639 1419
Website: www.ecprov.gov.za
Department of Cooperative Governance
and Traditional Affairs
MEC: Fikile Xasa
Tyamzashe Building, Room 2124, 2nd Floor, Bhisho 5605
Tel: +27 40 609 5788/5789
Fax: +27 40 639 2135
Website: www.eclgta.ecprov.gov.za
Department of Economic Development,
Environmental Affairs and Tourism
MEC: Sakhumzi Somyo
2nd Floor, Beacon Hill, Hockley Close, King Williams Town 5600
Tel: +27 43 605 7006/7216
Fax: +27 43 605 7306
Website: www.dedea.gov.za
Department of Education
MEC: Mandla Makupula
Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha
Tel: +27 40 608 4202
Fax: +27 40 608 4247
Website: www.ecdoe.gov.za
Department of Health
MEC: Dr Pumza Dyantyi
Dukumbane Building, Independence Avenue, Bhisho 5605
Tel: +27 40 608 1114
Fax: +27 40 608 1118
Website: www.echealth.gov.za
Department of Human Settlements
MEC: Helen Sauls-August
31-33 Phillip Frame Road, Waverly Park, Chiselhurst, East London
Tel: +27 43 711 9777
Fax: +27 43 711 9785
Website: www.ecdhs.gov.za
Department of Roads and Public Works
MEC: Thandiswa Marawu
5 Qasana Building, Independence Avenue, Bhisho 5605
Tel: +27 40 609 4648
Fax: 086 298 5598 (SA)
Website: www.ecdpw.gov.za
Department of Rural Development
and Agrarian Reform
MEC: Mlibo Qoboshiyane
Dukumbane Building , Independence Avenue, Bhisho 5606
Tel: +27 40 609 3472
Fax: +27 40 636 3462
Website: www.drdar.gov.za
Department of Safety and Liaison
MEC: Weziwe Tikana
Stellenbosch Park, Flemming St, Schornville,
King William’s Town 5601
Tel: +27 43 604 7414
Fax: 086 298 5598
Website: www.ecprov.gov.za
Department of Social Development
MEC: Nancy Sihlwayi
Cnr Hockley and Hargreaves Streets, Beacon Hill,
King William’s Town 5600
Tel: +27 43 605 5210
Fax: +27 43 605 5472
Website: www.ecdsd.gov.za
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LISTING
Department of Sports, Recreation,
Arts and Culture
MEC: Pemmy Majodina
Wilton Zimasile Mkwayi Building, 5 Eales Street,
King William’s Town 5600
Tel: +27 43 604 4101 | Fax: +27 43 642 6759
Website: www.ecsrac.gov.za
Provincial Treasury
MEC: Sakhumzi Somyo
Provincial Treasury , Tyamzashe Building, Bhisho 5605
Tel: +27 40 609 5755/5014
Fax: +27 40 639 1030
Website: www.ectreasury.gov.za
Department of Transport
MEC: Weziwe Tikana
Stellenbosch Park, Flemming St, Schornville,
King William’s Town 5601
Tel: +27 43 604 7414 | Fax: 086 298 5598
Website: www.ectransport.gov.za
Eastern Cape Local Government
ALFRED NZO DISTRICT MUNICIPALITY
Erf 1400, Ntsizwa Street, Mount Ayliff
Tel: +27 39 254 5000 | Fax: +27 39 254 0343
Email: info@andm.gov.za
Website: www.andm.gov.za
Matatiele Local Municipality
Tel: +27 39 737 8100
Fax: +27 39 737 3611
Website: www.matatiele.gov.za
Mbizana Local Municipality
Tel: +27 39 251 0230
Fax: +27 39 251 0917
Website: www.mbizana.gov.za
Ntabankulu Local Municipality
Tel: +27 39 258 0056
Fax: +27 39 258 0173
Website: www.ntabankulu.gov.za
Umzimvubu Local Municipality
Tel: +27 39 255 8500
Fax: +27 39 255 0167
Website: www.umzimvubu.gov.za
AMATHOLE DISTRICT MUNICIPALITY
40 Cambridge Street, East London
Tel: +27 43 701 4000 | Fax: +27 43 742 0337
Email: info@amathole.gov.za
Website: www.amathole.gov.za
Amahlathi Local Municipality
Tel: +27 43 683 5000 | Fax:+27 43 683 2970
Website: www.amahlathi.gov.za
Great Kei Local Municipality
Tel: +27 43 831 1028 | Fax: +27 43 831 1483
Website: www.greatkeilm.gov.za
Mbashe Local Municipality
Tel: +27 47 489 5800 | Fax: +27 47 489 5800
Website: www.mbhashemun.gov.za
Mnquma Local Municipality
Tel: +7 47 401 2400 | Fax: +27 47 491 0195
Website: www.mnquma.gov.za
Ngqushwa Local Municipality
Tel: +27 40 673 3095 | Fax: +27 40 673 3771
Website: www.ngqushwamun.gov.za
63
EASTERN CAPE BUSINESS 2018

Raymond Mhlaba Local Municipality
Tel: + 27 46 7400
Fax: +27 46 645 2562
Website: www.raymondmhlaba.gov.za
BUFFALO CITY METROPOLITAN
MUNICIPALITY
117 Oxford Street, Cnr North & Oxford Streets, Trust Centre, East London
Tel:+27 43 705 2000 | Fax:+27 43 743 1688
Website: www.buffalocity.gov.za
CHRIS HANI DISTRICT MUNICIPALITY
15 Bells Road, Queenstown
Tel: +27 45 808 4600 | Fax: +27 45 838 1556
Website: www.chrishanidm.gov.za
Emalahleni Local Municipality
Tel: +27 47 878 0020 | Fax: 049 878 0112
Website: www.emalahleni.gov.za
Engcobo Local Municipality
Tel: +27 47 548 5600 | Fax: +27 47 548 1078
Website: www.engcobolm.gov.za
Enoch Mgijima Local Municipality
Tel: + 27 45 807 2606
Fax: +27 45 807 2637
Website: www.lukhanji.co.za
Intsika Yethu Local Municipality
Tel: +27 47 874 8700 | Fax: +27 47 874 0010
Website: www.intsikayethu.gov.za
Inxuba Yethemba Local Municipality
Tel: +27 48 801 5000
Fax: +27 48 881 1421
Website: www.iym.co.za
Sakhisizwe Local Municipality
Tel: +27 47 877 5200
Fax: +27 47 877 0000
Website: www.sakhisizwe.gov.za
JOE GQABI DISTRICT MUNICIPALITY
Cnr Cole and Graham Streets, Barkly East
Tel: +27 45 979 3000
Fax: +27 45 971 0251
Website: www.jgdm.gov.za
Elundini Local Municipality
Tel: +27 45 932 8100 | Fax: +27 45 932 1094
Website: www.elundini.org.za
Walter Sisulu Local Municipality
Tel: + 27 51 653 1777
Fax: + 27 51 653 0056
Website: www.wslm.gov.za
Senqu Local Municipality
Tel: +27 51 603 1300 | Fax: +27 51 603 0445
Website: www.senqumunicipality.co.za
NELSON MANDELA BAY METROPOLITAN
MUNICIPALITY
City Hall, Vuyisile Mini Square,
Govan Mbeki Avenue, Nelson Mandela Bay
Tel: +27 41 506 3208/9
Fax: +27 41 506 2422
Website: www.nelsonmandelabay.gov.za
OR TAMBO DISTRICT MUNICIPALITY
OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthatha
Tel: +27 47 501 6400
Fax: +27 47 532 6518
Website: www.ortambodm.gov.za
Ingquza Hill Local Municipality
Tel: +27 39 252 0131
Fax: +27 39 252 0699
Website: www.ihlm.gov.za
King Sabata Dalindyebo Local Municipality
Tel: +27 47 501 4000 | Fax: +27 47 531 3128
Website: www.ksd.gov.za
Mhlontlo Local Municipality
Tel: +27 47 553 7000 | Fax: +27 47 553 0189
Website: www.mhlontlolm.gov.za
EASTERN CAPE BUSINESS 2018 64

Nyandeni Local Municipality
Tel: +27 47 555 5000 | Fax: +27 47 555 0202
Website: www.nyandenilm.gov.za
Port St Johns Local Municipality
Tel: +27 47 564 1207
Fax: +27 47 564 1206
Website: www.psjmunicipality.gov.za
SARAH BAARTMAN DISTRICT
MUNICIPALITY
32 Govan Mbeki Avenue, Port Elizabeth
Tel: +27 41 508 7111
Fax: +27 41 508 7000
Website: www.sarahbaartman.co.za
Blue Crane Route Local Municipality
Tel: +27 49 807 5700 | Fax: + 27 49 892 4319
Website: www.bcrm.gov.za
Dr Beyers Naude Local Municipality
Tel: +27 49 807 5700 | Fax: +27 49 892 4319
Website: www.camdeboo.gov.za
Kouga Local Municipality
Tel: +27 42 200 2200 | Fax: +27 42 200 8606
Website: www.kouga.gov.za
Kou-Kamma Local Municipality
Tel: +27 42 288 7200 | Fax: +27 42 288 0797
Website: www.koukammamun.co.za
Makana Local Municipality
Tel: +27 46 603 6131
Fax: +27 46 622 9700
Website: www.makana.gov.za
Ndlambe Local Municipality
Tel: +27 46 624 1140
Fax: +27 46 624 2669
Website: www.ndlambe.gov.za
Sundays River Valley Local Municipality
Tel: +27 42 230 7700/0077
Fax: +27 42 230 1799
Website: www.srvm.gov.za
Municipalities in the Eastern Cape
Free State
LESOTHO
Alfred Nzo
Matatiele
KwaZulu-
Natal
Northern Cape
Western
Cape
Inxuba Yethemba
Gariep
Tsolwana
Umzimvubu
Senqu
Maletswai
Elundini
Ntabankulu
Joe Gqabi
Mbizana
OR Tambo
Mhlontlo
Ingquza
Sakhisizwe
Hill
Inkwanca
Emalahleni
Nyandeni Port
Engcobo
St Johns
King Sabata
Chris Hani
Dalindyebo
Intsika Yethu
Lukhanji
Mbhashe
Dr Beyers Naude
Blue Crane Route
Sarah Baartman
Nxuba
Makana
Nkonkobe
Mnquma
Amahlathi
Amathole
Great Kei
Ngqushwa
Buffalo
City
INDIAN OCEAN
Sundays River
Valley
Ndlambe
Metropolitan/District Municipality
Boundary
Kou-Kamma
Kouga
Nelson Mandela Bay
Local Municipality Boundary
District Municipality
Local Municipality
Chris Hani
Nxuba
65
EASTERN CAPE BUSINESS 2018

INDEX
INDEX
Amatola Water........................................................................................................................................... IFC, IBC
Black Management Forum (BMF)................................................................................................................. 10
Blue Lagoon Hotel & Conference Centre................................................................................................... 21
Border Kei Chamber of Business................................................................................................................... 26
East London Industrial Development Zone (ELIDZ)......................................................................... 3, 11
Maritz Electrical.................................................................................................................................................. 23
Nedbank......................................................................................................................................................... 28-33
Nelson Mandela Bay Business Chamber.................................................................................................... 24
Old Mutual..................................................................................................................................................... 34-37
POWERX................................................................................................................................................................. 16
Premier Pallets................................................................................................................................................ OBC
Ubank..................................................................................................................................................................... 12
EASTERN CAPE BUSINESS 2018
66

Amatola Water projects
Bulk water and sanitation projects underway in the Eastern Cape.
Amatola Water is implementing
some of the
Eastern Cape’s major
capital projects that are
geared to bring relief to droughtridden
communities as well as to
revitalise water and sanitation infrastructure
in the province.
Amatola Water is helping the
OR Tambo District Municipality improve
its water and sanitation services
delivery to almost one million
citizens in Mthatha and surrounds
as part of the R3.4-billion King
Sabata Dalindyebo Presidential
Intervention.
The intervention forms part of
the masterplan to uplift the economic
development of the Greater
Mthatha area which continues to
show good growth. It aims to maximise
the use of the currently under-utilised
yield from the Mthatha
Dam through five strategic development
corridors within a 40km
radius of the town of Mthatha,
namely: Libode, Ngqeleni, Nqadu,
Mqanduli and the airport corridor.
The regional water supply
system will provide the necessary
stability and assurance of supply
that meaningful economic development
requires, while the bulk
sanitation infrastructure will ensure
the environmental integrity
of the Mthatha River and human
health in the higher-density urban
areas of Mthatha.
The Eastern Cape Department
of Education’s Schools Project is
tackling bulk water and sanitation infrastructure at close on 200 schools
throughout the province. Amatola Water is the department’s sole implementing
partner for bulk water and sanitation infrastructure. The
project, which has run over two years, comprises two phases: Phase 1,
which includes the repair of the dilapidated water and sanitation infrastructure
of special schools and hostels; and Phase 2 which is focused
on the operation and maintenance of the infrastructure.
In the current year, Amatola Water began work at 122 public ordinary
schools, of which 19 have hostels. The work completed to date
has been valued at over R21-million. An additional 10 special schools
have also been included in the plan. The work this year also included
addressing water emergencies at nine priority schools.
Full-time process controllers and general workers have been appointed
to oversee operations and maintenance at the various schools to ensure
good water and effluent quality. In the current financial year, over 500 jobs
have been created through the programme, 50 of which went to women.
In Nelson Mandela Bay, the Nooitgedacht Bulk Water Supply Project
will see its water supply from the Orange River surge to more than
double by June 2019 when Amatola Water completes the third phase
of extensions to the Nooitgedacht Water Treatment Works.
The project consists of three parts: a 45-megalitre reservoir, the construction
of a treatment works facility and the construction of related
pipelines. It is a key augmentation project for the bulk water supply
system of Nelson Mandela Bay Municipality. Once completed, it will feed
about 70-million litres of water a day to the municipality.
Nooitgedacht Bulk Water Supply Project.

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