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Western Cape Business 2021

The 2021 edition of Western Cape Business is the 14th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature on thriving agricultural exports gives insight into the details of what fruits and wines go where. An interview with the Port Manager of the Port of Cape Town provides more understanding of the scale of the logistics operation that is a major port. Another special feature examines the City of Cape Town as a national headquarters for the thriving asset management sector. The cover picture reflects an exciting new find of gas condensate off the south-eastern coast, a potential game-changer for the Western Cape and South African economies. This new development is covered in the overview of the oil and gas sector.

The 2021 edition of Western Cape Business is the 14th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape.

The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature on thriving agricultural exports gives insight into the details of what fruits and wines go where. An interview with the Port Manager of the Port of Cape Town provides more understanding of the scale of the logistics operation that is a major port. Another special feature examines the City of Cape Town as a national headquarters for the thriving asset management sector.

The cover picture reflects an exciting new find of gas condensate off the south-eastern coast, a potential game-changer for the Western Cape and South African economies. This new development is covered in the overview of the oil and gas sector.

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WESTERN CAPE<br />

BUSINESS<br />

<strong>2021</strong> EDITION<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN THE WESTERN CAPE PROVINCE<br />

JOIN US ONLINE WWW.GLOBALAFRICANETWORK.COM | WWW.WESTERNCAPEBUSINESS.CO.ZA


Can I spend my start-up capital on my business,<br />

and not on banking fees?<br />

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digital onboarding and Cashf low Manager – an accounting and business<br />

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business’s f inances. Designed for SMEs, it’s an account that will grow<br />

with your business, starting from day one.<br />

Open your <strong>Business</strong> Evolve Zero Account today.<br />

To f ind out more, visit absa.co.za<br />

We do more so you can. That’s Africanacity.<br />

Terms and conditions apply Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7


An account that grows<br />

with your business<br />

In a move aimed at transforming the banking<br />

experience for SMEs, Absa is launching a<br />

brand-new transactional account called<br />

<strong>Business</strong> Evolve Zero. Specif ically designed for<br />

sole proprietors and start-ups, it comes with<br />

no monthly account fee.<br />

Many entrepreneurs will have tales about<br />

how challenging it is to get a new business<br />

up and running. Aside from the usual funding<br />

issues, a great deal of business owners<br />

might be specialists in their own f ields, but<br />

come up short when it comes to the f inancial<br />

management skills needed to become a<br />

successful start-up. This is a familiar story;<br />

one that Absa is about to evolve.<br />

The Absa <strong>Business</strong> Evolve Zero Account offers<br />

more than just zero monthly fees. At its heart,<br />

is a business management and accounting<br />

solution called Cashf low Manager. As an-endto-end<br />

digital offering, Cashflow Manager<br />

empowers even novices to take control of<br />

their business f inances like never before.<br />

Standard features include the ability to create<br />

cost estimates and generate invoices. Invoices<br />

will automatically be picked up when they<br />

are paid, to deliver reports on outstanding<br />

monies. Cashflow Manager delivers a bird’s<br />

eye view of your company’s f inances, and even<br />

helps proprietors to keep track of their own<br />

money versus that of the business. It also<br />

offers payroll services, further reducing an<br />

SME’s reliance on external resources. Realtime<br />

analytics and reporting can be accessed<br />

with a few clicks via Absa Online.<br />

Underscoring Absa’s commitment to providing<br />

world-class digital solutions, the <strong>Business</strong><br />

Evolve Zero Account offers entrepreneurs the<br />

convenience of online banking, 24/7; with the<br />

added peace of mind that a banker is always<br />

available if they require human assistance.<br />

Improved analytics and insights provided<br />

by Cashf low Manager enable Absa to better<br />

support SMEs, by preemptively offering<br />

bespoke transactional, savings and credit<br />

solutions for the business.<br />

The <strong>Business</strong> Evolve Zero Account is a<br />

cost-effective pay-as-you-transact solution<br />

that offers unlimited free Absa-to-Absa<br />

debit orders and Absa-to-Absa interaccount<br />

transfers. Fees for EFTs, debit card swipes<br />

and external debit orders are low. The account<br />

comes with a debit card, a savings pocket and<br />

an investment facility called Liquidity Plus.<br />

Designed for businesses with an annual<br />

turnover of less than R5 million, the Absa<br />

<strong>Business</strong> Evolve Zero Account also<br />

simplif ies VAT, allowing entrepreneurs the<br />

ability to generate reports to assist with filing<br />

returns to the South African Revenue Service.<br />

The SME segment is a core focus area for<br />

Absa, and if the <strong>Business</strong> Evolve Zero Account<br />

is anything to go by, it seems that they’ve<br />

hit the nail on the head. More <strong>Business</strong><br />

Evolve Accounts are in the advanced stages<br />

of development and are said to be released<br />

during the course of <strong>2021</strong>. These new<br />

accounts will cater for the needs of bigger<br />

enterprises, laying the groundwork for<br />

businesses to have one account that evolves<br />

with their growth – starting from day one.<br />

The <strong>Business</strong> Evolve Zero Account is available<br />

on Absa Online, the Absa Banking App and at<br />

selected branches.<br />

Contact us on 0800 227 592.


Where Opportunity Meets <br />

The <strong>Cape</strong> Chamber is the voice of business in the region, a role it has<br />

fulfilled without fail since 1804.<br />

In addition to this leadership role, we also serve and enable business,<br />

allowing our members to perform at their optimal best.<br />

When you belong to the Chamber, you become part of an esteemed<br />

network that is geared to promote your success.<br />

Members enjoy a substantial number of benefits, as well as receiving<br />

expert support for a wide range of issues. Our services include business<br />

advice, extensive networking opportunities, seminars & events, training<br />

at all levels, international trade support and more.


Join now - it’s Where Opportunity Meets.<br />

Tel: +27 21 402 4300<br />

info@capechamber.co.za | capechamber.co.za<br />

Facebook: <strong>Cape</strong>ChamberOfCommerce | Twitter: @<strong>Cape</strong>_Chamber<br />

capechamber.co.za<br />

/<strong>Cape</strong>ChamberOfCommerce<br />

@cape_chamber


CONTENTS<br />

CONTENTS<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> <strong>2021</strong> Edition<br />

Introduction<br />

Foreword 7<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is a unique guide to business,<br />

tourism and investment in the <strong>Western</strong> <strong>Cape</strong>.<br />

Special features<br />

Regional overview of the <strong>Western</strong> <strong>Cape</strong> 8<br />

The <strong>Western</strong> <strong>Cape</strong>’s lead in technology is giving it the edge in a<br />

number of other sectors as it sets its sights on improving energy<br />

supply and rail transport.<br />

The agricultural export basket is expanding 12<br />

The <strong>Western</strong> <strong>Cape</strong>’s latest agricultural export is a hi-tech machine.<br />

<strong>Cape</strong> Town is South Africa’s asset<br />

management capital 16<br />

The strength and diversity of the <strong>Cape</strong>’s financial<br />

services underpins a vibrant sector.<br />

Economic sectors<br />

Maritime and fishing 26<br />

New opportunities are opening up in manufacturing<br />

and servicing.<br />

Oil and gas 30<br />

Gas finds off the Southern <strong>Cape</strong> coast have vast potential.<br />

Energy 34<br />

The <strong>Western</strong> <strong>Cape</strong> wants a bigger role for cities in<br />

the energy sector.<br />

Manufacturing 36<br />

TFG plans to double manufacturing output.<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

4


Africa Biomass Company<br />

Your caring family trading as world leaders in the wood chipping industry.<br />

WP CHIPPER HIRE & SALES trading<br />

as Africa Biomass Company (ABC)<br />

is a wood chipping company that<br />

provides wood recycling services,<br />

supplying biomass according to specification.<br />

ABC is one of the best go-to wood chipper<br />

equipment sales and services agents.<br />

Buy your own Bandit wood chipper<br />

or hire us to deal with your biomass<br />

Bandit the only logical choice for wood chippers in<br />

Africa, which are now fitted on SABS-approved trailers.<br />

For more information on the Bandit, see page 10<br />

ABC understands wood recycling<br />

With a comprehensive understanding<br />

Company<br />

of the operational<br />

challenges of wood recycling in South Africa,<br />

Slogan<br />

Wood chipper services<br />

ABC has established state-of-the-art facilities to service,<br />

repair and rebuild wood chipper equipment of<br />

• Agricultural: orchard / vineyard A small selection recycling of Bandit and wood chippers any brand (from left and to right): size. Model ABC’s 75XP facilities Engine; Model are 65XP operated PTO by a<br />

mulch spreading<br />

and the Intimidator 12XPC. remarkable team of very experienced and suitably<br />

• Biomass for generation<br />

Company<br />

of heat or electricity qualified engineers, technicians and artisans.<br />

Slogan<br />

• Site clearing and preparation<br />

An equally remarkable team of field-service<br />

• River rehabilitation in riparian Africa zones Biomass Company is the authorised technicians dealer deliver<br />

Become<br />

repairs,<br />

an<br />

maintenance<br />

owner of a Bandit<br />

and<br />

chipper<br />

parts<br />

for Bandit Industries in Southern Africa.<br />

All existing and new customers are welcome<br />

• Workshop, field services, parts ABC and has built spares up a substantial to fleet clients’ of Bandit sites to optimise uptime and efficiency.<br />

to contact us if they want to become the<br />

• Operator training services: wood SETA-certified<br />

chippers for use by the company as part owner of the top-class range of Bandit<br />

• Manufacturing workshop of our wood recycling services, The but most ABC also experienced<br />

equipment. Bandit Industries have delivered<br />

offers a whole range of Bandit wood chippers successful recycling solutions to basically<br />

to clients who want to invest in the Bandit<br />

chips<br />

range.<br />

producer Africa<br />

every corner of the planet.<br />

The X-factor in wood chippers Bandit chippers are designed with quality,<br />

production and longevity in mind. Dimensional Hand-fed wood A commitment chips are produced to support by the removal<br />

ABC is the authorised dealer for Bandit chippers wood are mounted chippers on custom-built, of alien invasive SABSapproved<br />

trailers. Owning a Bandit wood Africa Biomass Company is fully equipped<br />

trees in riparian zones, previously<br />

in Africa. Bandit combines first-world chipper technology will always put and you in deemed the front seat as of impossible. and stocked ABC, to service however, and repair now any has Bandit<br />

experience with third-world functionality. reliable wood This chipping makes operations. the knowledge machine and technology anywhere in South to get Africa. the We job own<br />

In many cases, the Bandit wood chipper sets a fully-equipped parts warehouse (650m²),<br />

done. These wood chips are then used<br />

the benchmark for other brands in the wood manufacturing department as well as field<br />

chipping industry. We are ready to supply the in agri-industrial services to ensure applications that parts are as always a greener<br />

alternative available and to our coal own, for as either well as heat our clients’ or<br />

readily<br />

right Bandit wood chipping solution with advice<br />

and aftercare to your doorstep. All existing and Bandit wood chippers are not out of commission<br />

electricity production.<br />

new customers are welcome to contact us to longer than they have to be.<br />

become the owner of Bandit equipment. www.abc.co.za<br />

Geographical footprint<br />

9 WESTERN CAPE BUSINESS 2020<br />

ABC is located in Worcester (<strong>Western</strong><br />

<strong>Cape</strong>), Kirkwood (Eastern <strong>Cape</strong>),<br />

Nelspruit (Mpumalanga) and Upington<br />

(Northern <strong>Cape</strong>).<br />

We operate in all nine provinces in<br />

South Africa and also across the<br />

borders into Sub-Saharan Africa, including<br />

Namibia, Botswana, Zimbabwe,<br />

Mozambique, Zambia, Malawi,<br />

Tanzania, Kenya and Nigeria. ■<br />

www.abc.co.za<br />

Head Office: 023 342 1212<br />

Videos available: Youtube: “Africa Biomass Company”


CONTENTS<br />

Construction and property 38<br />

The eastern edge of the <strong>Cape</strong> Town CBD is to be transformed.<br />

Tourism and events 39<br />

Operators are hoping the Lions will roar.<br />

Education and training 40<br />

Tertiary campuses in Mitchells Plain and Khayelitsha are growing.<br />

Banking and financial services 44<br />

The <strong>Western</strong> <strong>Cape</strong> has the digital edge.<br />

Development finance and SMME support 45<br />

Entrepreneurs are saving the environment.<br />

<strong>Business</strong> Process Outsourcing 46<br />

An overview of the <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government departments.<br />

Government<br />

<strong>Western</strong> <strong>Cape</strong> Provincial Government 47<br />

An overview of the <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government departments.<br />

References<br />

Key sector contents 24<br />

Overviews of the main economic sectors of the <strong>Western</strong> <strong>Cape</strong>.<br />

Index 48<br />

ABOUT THE COVER:<br />

Credit: Anton Swanepoel. The drilling rig Deepsea Stavanger has passed Table<br />

Mountain several times in recent months, on its way from its base in Norway<br />

to the successful Brulpadda and Luiperd prospects off the coast of Mossel Bay.<br />

Total E&P South Africa (with a 45% share) is the operator of the block. National<br />

government has announced it intends passing an Upstream Petroleum Bill in<br />

support of the exploration of oil and gas.<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

6


<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong><br />

A unique guide to business and investment in <strong>Western</strong> <strong>Cape</strong>.<br />

FOREWORD<br />

Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Simon Lewis<br />

Production: Aneeqah Solomon<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Jeremy Petersen<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Shiko Diala<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2021</strong> edition of <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is the 14th issue of this<br />

highly successful publication that, since its launch in 2005, has<br />

established itself as the premier business and investment guide<br />

for the <strong>Western</strong> <strong>Cape</strong>.<br />

The <strong>Western</strong> <strong>Cape</strong> has several investment and business opportunities.<br />

In addition to the regular articles providing insight into each of the<br />

key economic sectors of the province, a special feature on thriving<br />

agricultural exports gives insight into the details of what fruits and wines<br />

go where. An interview with the Port Manager of the Port of <strong>Cape</strong> Town<br />

provides more understanding of the scale of the logistics operation that<br />

is a major port. Another special feature examines the City of <strong>Cape</strong> Town<br />

as a national headquarters for the thriving asset management sector.<br />

The cover picture reflects an exciting new find of gas condensate off<br />

the south-eastern coast, a potential game-changer for the <strong>Western</strong> <strong>Cape</strong><br />

and South African economies. This new development is covered in the<br />

overview of the oil and gas sector.<br />

To complement the extensive local, national and international<br />

distribution of the print edition, the full content can also be viewed<br />

online at www.westerncapebusiness.co.za. Updated information on<br />

the <strong>Western</strong> <strong>Cape</strong> is also available through our monthly e-newsletter,<br />

which you can subscribe to online at www.gan.co.za, in addition to our<br />

complementary business-to-business titles that cover all nine provinces<br />

as well as our flagship South African <strong>Business</strong> title and the new addition to<br />

our list of publications, African <strong>Business</strong>, which was launched in 2020. ■<br />

Chris Whales<br />

Publisher, Global Africa Network Media | Email: chris@gan.co.za<br />

DISTRIBUTION<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

and incoming trade missions, through trade and investment<br />

agencies; to foreign offices in South Africa’s main trading<br />

partners around the world; at top national and international<br />

events; through the offices of foreign representatives in<br />

South Africa; as well as nationally and regionally via chambers<br />

of commerce, tourism offices, airport lounges, provincial<br />

government departments, municipalities and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

COPYRIGHT | <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to<br />

the publication vests with Global Africa Network Media (Pty) Ltd. No<br />

part of the publication may be reproduced in any form without the<br />

written permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Aerobotics, Concor, Fancourt, False Bay TVET<br />

College, Gemini Marine, Gestamp Renewable Industries (GRI), Lawhill<br />

Maritime Centre, Oceana, Paardekraal East Wind Farm, Petroleum<br />

Agency SA, Port of <strong>Cape</strong> Town, Radisson Hotel Group, Anton<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN 1816 370X<br />

Swanepoel, TFG, The Westin <strong>Cape</strong> Town, VDMMA (Van der Merwe<br />

Miszewski Architects), Vinpro.<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information<br />

contained in <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is accurate and up-to-date, the<br />

publishers make no representations as to the accuracy, quality,<br />

timeliness, or completeness of the information. Global Africa Network<br />

will not accept responsibility for any loss or damage suffered as a<br />

result of the use of or any reliance placed on such information.<br />

7<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


A REGIONAL OVERVIEW OF THE<br />

WESTERN CAPE<br />

The <strong>Western</strong> <strong>Cape</strong>’s lead in technology is giving it the edge in a<br />

number of other sectors as it sets its sights on improving energy<br />

supply and rail transport.<br />

By John Young<br />

<strong>Cape</strong> Town’s status as “Africa’s Tech<br />

Capital” gives the city-region the basis<br />

for leadership in a range of other sectors<br />

such as asset management, financial<br />

services, business process outsourcing and<br />

others. Neighbouring Stellenbosch is advancing<br />

its reputation for technological innovation and<br />

the output of the region’s four universities and six<br />

TVET colleges ensures that the tech sector has the<br />

necessary human capital.<br />

There are 22 active incubators and accelerators in<br />

the region which provide networking and marketing<br />

opportunities and links to funders and markets. The<br />

City of <strong>Cape</strong> Town has installed 848km of fibre-optic<br />

cable and the sector supports more than 40 000<br />

jobs with established brands such as Amazon and<br />

Panasonic coexisting with startups such as Luno,<br />

Yoco, Jumo and SweepSouth. <strong>Cape</strong> Town hosts more<br />

than half of all startups in South Africa.<br />

The <strong>Western</strong> <strong>Cape</strong> is one of nine provinces<br />

of the Republic of South Africa. South African<br />

provinces do not have the kinds of powers<br />

enjoyed by states in federal entities such as the<br />

US or Nigeria. Health, education and traffic have<br />

traditionally been the biggest components of<br />

provincial authority. The priority list of the <strong>Western</strong><br />

<strong>Cape</strong> Provincial Government, however, includes<br />

energy and transport.<br />

The province and the City of <strong>Cape</strong> Town<br />

are lobbying national government for a greater<br />

role for municipalities in the generation and<br />

distribution of energy. The potential of renewable<br />

energy is being realised through the national<br />

independent power producer programme and<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

8


there is a strong lobby to build a gas-to-energy<br />

plant in the province. The new Special Economic<br />

Zone for Green Technology in Atlantis is attracting<br />

investment in renewable technologies.<br />

In 2018 the City of <strong>Cape</strong> Town launched a<br />

resilience assessment, the first step in a larger<br />

process. The Rockefeller Foundation chose the<br />

city as one of 100 around the world in which<br />

programmes would be tested to improve the<br />

ability of the city to withstand shocks such as<br />

severe droughts. The city wants to expand the<br />

lessons it learnt in the period of water shortage<br />

into other areas such as energy generation and<br />

energy efficiency.<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial Government is<br />

also investing in resilience. A market intelligence<br />

report covering energy, renewable energy, water<br />

and waste was created by Green <strong>Cape</strong> to map the<br />

assets and challenges in these areas.<br />

In addition to trying to attract green<br />

investment into the province, the province is<br />

working for improved regulations related to<br />

small-scale embedded generation (SSEG). The<br />

City of <strong>Cape</strong> Town also wants to be able to rent<br />

out its infrastructure to a power producer who can<br />

supply a user via that infrastructure. This is known<br />

as “wheeling”. A start was made with the Darling<br />

wind farm, but more work needs to be done on<br />

the legislative framework.<br />

Much of this work is done by a unit called the<br />

Sustainability Energy Markets within the Energy<br />

Directorate. Another area of focus for this group is to<br />

investigate energy use by low-income households.<br />

The <strong>Western</strong> <strong>Cape</strong> is lobbying hard for<br />

Saldanha Bay to be a site for a gas-to-power plant.<br />

If a gas plant is built at Saldanha, then it could be<br />

a catalyst for the use of gas in many other sectors<br />

such as manufacturing and residential.<br />

The <strong>Cape</strong> Peninsula University of Technology’s<br />

Energy Institute is a leader in research in the field<br />

of electricity. The South African Renewable Energy<br />

Technology Centre (SARETEC) on the Bellville<br />

campus of CPUT offers courses such as Wind<br />

Turbine Service Technician and Solar Photovoltaic<br />

Service Technician and various short courses such<br />

as Bolting Joint Technology.<br />

The Centre for Renewable and Sustainable<br />

Energy Studies is at the University of Stellenbosch<br />

and the University of <strong>Cape</strong> Town has the Energy<br />

Research Centre. The University of the <strong>Western</strong> <strong>Cape</strong><br />

is doing research on the possibilities of hydrogen as<br />

an energy source.<br />

Ease of doing business<br />

In similar vein to the argument for greater<br />

involvement in energy issues, Premier Alan Winde<br />

has argued that the control of the railways that serve<br />

greater <strong>Cape</strong> Town should be more localised. He<br />

cites a deal signed in the city of George between the<br />

national and provincial transport ministers to improve<br />

the system as an example of the kind of cooperation<br />

which is needed.<br />

Energy and transport are keys to being able to do<br />

business, and that is the focus of another provincial<br />

initiative, the Red Tape Reduction Unit. Successful at a<br />

provincial level, the plan is to now set up similar units<br />

at municipal level.<br />

Covid-19 created serious backlogs at the Port<br />

of <strong>Cape</strong> Town but the problems predated the<br />

health crisis. In December 2019, the <strong>Western</strong> <strong>Cape</strong><br />

Department of Economic Development and Tourism<br />

(DEDAT) convened a meeting for every kind of port<br />

user, from exporters to logistics companies and for<br />

the various divisions of Transnet, the tax authority<br />

and the City of <strong>Cape</strong> Town. In 2019 the Port of <strong>Cape</strong><br />

Town received 510 ships at the Container Terminal<br />

but it could have had many more if turnaround times<br />

were better. All parties are working together to find<br />

a solution, which will include better coordination of<br />

delivery schedules and more cranes. Cranes able to<br />

work in high winds are being tested.<br />

Tourism challenges<br />

SPECIAL FEATURE<br />

The hospitality sector suffered a huge blow from the<br />

effects of the Covid-19 global lockdown.<br />

As travel slowly picks up, hotel groups, lodges<br />

and bed-and-breakfasts are starting to attract<br />

interprovincial travellers. In time, international travel<br />

will follow but what of the meetings, incentives,<br />

conferences and exhibitions (MICE) sector?<br />

The economic impact on gross geographic<br />

product of the <strong>Cape</strong> Town International Convention<br />

Centre alone in 2018/19 was R4.5-billion (<strong>Cape</strong><br />

Town Central City Improvement District). Wesgro’s<br />

9 WESTERN CAPE BUSINESS <strong>2021</strong>


SPECIAL FEATURE<br />

Convention Bureau signed 52 events or<br />

conferences in the course of 2019/20 but of<br />

course most, if not all, of these events will not<br />

take place.<br />

The Radisson Hotel Group has come up with<br />

“Hybrid Solutions” as a response to the “new normal”.<br />

Incorporating Hybrid Rooms and Hybrid Meetings,<br />

the idea is to offer virtual participation options<br />

and hybrid formats for small local gatherings,<br />

while also broadcasting to remote attendees and<br />

satellite locations. Hotels will offer teams to set up<br />

the equipment. Park Inn by Radisson Newlands<br />

(pictured on the previous page) is one of the group’s<br />

six hotels in <strong>Cape</strong> Town.<br />

Investment<br />

The province has a dedicated investment agency,<br />

Wesgro. The Investment Promotion Unit of<br />

Wesgro has been working with various regions<br />

within the <strong>Western</strong> <strong>Cape</strong> to attract investment<br />

and accelerate exports. Seminars have been held<br />

in the <strong>Cape</strong> Winelands, the West Coast and the<br />

Garden Route.<br />

In 2019/20, the biggest investments were<br />

in renewable energy and manufacturing.<br />

Other important sectors are agro-processing,<br />

aviation, business services, education and<br />

training, financial services, real estate, ICT, light<br />

manufacturing, oil and gas, timber, tourism,<br />

waste beneficiation and clean energy.<br />

Encouraging investment in <strong>Cape</strong> Town has<br />

been recognised as something that needs a fulltime<br />

office and a strategy. Invest <strong>Cape</strong> Town is an<br />

agency of the city that works to create the best<br />

possible conditions to attract investors. Areas of<br />

focus include broadband access, energy security,<br />

the reduction of red tape and improving air access<br />

to the city.<br />

Economy<br />

Finance, business services and real estate<br />

combined contribute 28% to the gross domestic<br />

product (GDP) of the <strong>Western</strong> <strong>Cape</strong>. The financial<br />

services and insurance sector are key components<br />

of the economy. Many of South Africa’s biggest<br />

companies have their headquarters in <strong>Cape</strong><br />

Town. Asset management and venture capital<br />

companies have been growing steadily.<br />

Although agriculture only accounts for 4.3%<br />

of GDP on its own, the sector is responsible<br />

for the fruit and vegetables that contribute<br />

to agro-processing which accounts for nearly<br />

40% of the province’s export basket. (Agroprocessing<br />

accounts for 8.1% of GDP.) Citrus,<br />

wine, apples and pears, grapes, fruit juice, fruit<br />

and nuts and tobacco all appear in the top<br />

10 of the province’s exports. Seventy percent<br />

of South Africa’s beverage exports come from<br />

the <strong>Western</strong> <strong>Cape</strong>. Grapes and wine sales to<br />

Europe remain strong, but the Chinese market<br />

is becoming increasingly important.<br />

The province has a diverse manufacturing<br />

sector ranging from textiles, clothing, footwear and<br />

furniture to coke and refined petroleum products.<br />

Excluding agro-processing, other manufacturing<br />

makes up 6.9% of GDP. ■<br />

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ATHLONE CAMPUS<br />

Corner Corner of of Protea Protea && Eland Eland Street, Street, ATHLONE ATHLONE<br />

Tel: 021 637 Tel: 9183 021 637 Fax: 9183021 638 3255<br />

CITY CAMPUS<br />

Corner of of Longmarket && Buitekant Street,<br />

CAPE TOWN<br />

Tel: 021 462 2053 Fax: 021 461 1608<br />

Tel: 021 462 2053 Fax: 021 461 1608<br />

Kromboom<br />

CRAWFORD<br />

Road, CRAWFORD<br />

CAMPUS<br />

Kromboom Road, CRAWFORD<br />

Tel: 021 696 5133 Fax: 021 696 5136<br />

GARDENS CAMPUS<br />

Breda Street, Gardens, CAPE TOWN<br />

Tel: 021 461 9418 Fax: 021 464 3857<br />

Corner GUGULETU of Steve Biko CAMPUS Drive & Ngambu<br />

Corner of<br />

Street,<br />

Steve Biko<br />

GUGULETU<br />

Drive & Ngambu<br />

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Tel: 021 638 3131 /021 637 0606<br />

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021<br />

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637<br />

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PINELANDS CAMPUS<br />

Jan Smuts Drive, PINELANDS<br />

Tel: 021 531 2105/6/7 Fax: 021 531 0361<br />

THORNTON CAMPUS<br />

Corner Corner of of Cedar Cedar & Poplar Poplar Road, Road, THORNTON<br />

THORNTON<br />

Tel: Tel: 021 021 531 531 9124 9124 Fax: Fax: 021 021 531 531 9150 9150<br />

WYNBERG CAMPUS<br />

Broad Road, WYNBERG<br />

Tel: 021 797 5540 Fax: 021 797 6682


SPECIAL FEATURE<br />

The agricultural export<br />

basket is expanding<br />

The <strong>Western</strong> <strong>Cape</strong>’s latest agricultural export is a hi-tech machine.<br />

Credit: Aerobotics<br />

Of the 37 trade agreements facilitated in 2019/20 by Wesgro,<br />

the <strong>Western</strong> <strong>Cape</strong>’s tourism, trade and investment promotion<br />

agency, 25 were in agro-processing and agribusiness and a<br />

further three were in the fast-moving consumer goods<br />

(FMCG) sector. The total value of these agreements was R3.08-billion and<br />

973 jobs were added to the <strong>Western</strong> <strong>Cape</strong> economy.<br />

Examples included a deal in Germany for <strong>Cape</strong> Dried Fruit<br />

Packers (R350-million), in Ethiopia for Good Harvest Market (R700-<br />

million), in Ghana for M’hudi Wines (R4-million) and the R200-<br />

million contract that Southern Right Foods signed in Mozambique.<br />

The last-named company trades as Walker Bay Spice and also<br />

exports to Australia, Bahrain, Belgium, Botswana, Dubai, Ghana,<br />

Luxembourg, Malaysia, Namibia, the Netherlands, Qatar and the UK.<br />

Total South African agricultural exports reached R175-billion in<br />

2019 with about 40% going to other African countries and 25% to<br />

Europe. Fresh fruit accounted for about R50-billion.<br />

Seven of the top 10 exports from the province are agricultural<br />

or agro-processed products. As Wesgro notes, the <strong>Western</strong> <strong>Cape</strong><br />

is responsible for:<br />

• Almost half of South Africa’s agribusiness exports.<br />

• About 70% of South Africa’s beverages exports.<br />

• About 85% of South Africa’s fisheries exports.<br />

Berries are a growing subsector and two-thirds of production occurs<br />

in the <strong>Western</strong> <strong>Cape</strong>. More than 70% of the crop is exported and the<br />

major production companies<br />

are Berryworld South Africa,<br />

United Exports and Haygrove<br />

SA, an affiliate of UK-based<br />

Haygro. Berries thrive between<br />

George and Swellendam and<br />

sales of chippers have grown<br />

because blueberries have to be<br />

vigorously pruned.<br />

There is plenty of scope for<br />

exports to grow. Current annual<br />

exports are 13 500t compared<br />

to over 200 000t for table grapes<br />

and about 300 000t for apples<br />

(South African Berry Producers’<br />

Association). Once producers<br />

pass muster with Chinese<br />

import authorities, volumes can<br />

be expected to grow.<br />

Another subsector to<br />

experience rapid export<br />

growth is oranges. As a source<br />

of vitamin C, oranges grew<br />

in popularity as the Covid-19<br />

pandemic spread. South Africa<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

12


WECBOF<br />

makes it happen!<br />

The <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong><br />

Opportunities Forum (WECBOF)<br />

provides a platform for businesses<br />

to establish and maintain contact with<br />

fellow entrepreneurs; to have access to<br />

opportunities, information and training;<br />

and to have representation on a number<br />

of relevant forums of government and<br />

other associations focussed on growing<br />

and enhancing the commercial sector,<br />

with a specific focus on small, medium,<br />

and micro enterprises (SMMEs).<br />

WECBOF is widely recognised and<br />

respected as a powerful voice for<br />

business in the <strong>Western</strong> <strong>Cape</strong>; we are a<br />

provincial service organisation with our<br />

focus and attention firmly on the national<br />

and international business pulse.<br />

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www.facebook.com/wecbof/<br />

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A powerful voice for business.<br />

Where entrepreneurs excel.


SPECIAL FEATURE<br />

is the world’s second-largest citrus exporter, after Spain, and the<br />

number 11 in the world in terms of production. Citrus exports<br />

earned South Africa about R20-billion in 2019.<br />

Assessed independently from the country, the <strong>Western</strong><br />

<strong>Cape</strong> is the world’s fifth-largest exporter of citrus fruits as it is<br />

responsible for 62% of the nation’s volumes. Oranges are the<br />

province’s number one citrus export (54% in 2017) and soft citrus<br />

(19%) is growing steadily. Europe remains the most important<br />

market but Asia and Oceana markets grew from 34% in 2008 to<br />

42% in 2017. The top five countries are the Netherlands, the UK,<br />

Russia, the UAE and China.<br />

By contrast, flower growers were badly hit by the effects of the<br />

global shutdown. The <strong>Western</strong> <strong>Cape</strong> has a strong fynbos sector.<br />

Normally, Europe accounts for 80% of exports. National beef<br />

exports increased from 8 292 tons in 2001 to 31 888 tons in 2018<br />

with the largest areas of growth in Muslim countries. The <strong>Western</strong><br />

<strong>Cape</strong> contributes 15% of national beef output.<br />

The Covid-19 lockdown had a big impact on wine exports and<br />

not only because a liquor-export ban was in place for five weeks.<br />

Logistics at the Port of <strong>Cape</strong> Town were reduced to a crawl and<br />

with fresh fruit and vital supplies taking priority, wine exporters<br />

were at the back of the queue.<br />

Within South Africa, a sophisticated logistics chain can get<br />

fruit from harvest to consumer in 40 days (Freight, Logistics<br />

and Warehousing). A digital system is to be introduced by the<br />

Perishable Products Export Control Board (PPECB) which, along<br />

with e-certification launched by the Department of Agriculture,<br />

Land Reform and Rural Development, should enhance<br />

efficiencies. The Fresh Produce Exporters’ Forum (FPEF) and the<br />

Department of Science and Innovation are exploring improved<br />

packing and cold-storage methods.<br />

South African winemakers are aiming for better quality instead<br />

of greater volumes. Which is not to say that volume is being<br />

ignored. Wine exports to Angola and China have doubled. In the<br />

four years to 2017, wine exports to China reached 18.2-million<br />

litres, an increase of 109%. Wesgro and WOSA (Wines of South<br />

Africa) are cooperating on the Chinese market.<br />

A 2006 agreement, the SADC Economic Partnership Agreement,<br />

gives produce from the region full or partial exemption from duties<br />

on exports into the EU. The three biggest markets by value and<br />

volume are the UK, Germany and the Netherlands. The UK is likely to<br />

sign a similar agreement, post-Brexit.<br />

South Africa produces about 4% of the world’s wine. The wine<br />

industry contributes R36-billion to the country’s gross domestic<br />

product (GDP) and employs nearly 290 000 people.<br />

Vinpro is the wine industry organisation which represents 2 500<br />

South African wine grape producers, wineries and wine-related<br />

businesses. There are over 3<br />

500 wine producers in South<br />

Africa, with the large majority<br />

located in the <strong>Western</strong> <strong>Cape</strong>.<br />

Agri-tech exports<br />

The <strong>Western</strong> <strong>Cape</strong> is not just a<br />

leader in products that grow<br />

in the ground, but it is also a<br />

world leader in products that<br />

hover above the ground. Drone<br />

and data specialist Aerobotics<br />

has more than 900 clients in 18<br />

countries who have signed up<br />

for orchard monitoring, yield<br />

and harvest projections and<br />

pest and disease management.<br />

The drones can also be<br />

deployed to pick out individual<br />

trees that are classified as<br />

“problem trees”.<br />

Aerbotics’ Yield Estimation<br />

Package for citrus, which<br />

was launched in 2019, gives<br />

reports on fruit size and colour<br />

distribution ahead of the<br />

harvest season and projections<br />

on yield.<br />

The <strong>Cape</strong> Town-based<br />

company, which featured in an<br />

article in the Arena Holdings<br />

publication Food Basket in 2020,<br />

was founded in 2004 as a drone<br />

manufacturer and evolved into<br />

a data provider.<br />

Another digital innovation<br />

for exporters was launched in<br />

September 2020 in the form of<br />

the <strong>Cape</strong> Export Network. CEN,<br />

a joint initiative of the <strong>Western</strong><br />

<strong>Cape</strong> Provincial Government,<br />

Wesgro and Wines of South<br />

Africa (WoSA), is a platform<br />

that connects wine producers,<br />

buyers and importers. ■<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

14


A more resilient and<br />

responsible SA<br />

wine industry<br />

#SaveSAWine helped create awareness<br />

during lockdown.<br />

The South African wine industry will rise<br />

up again following one of the toughest<br />

years yet, to be even more resilient, resourceful<br />

and responsible.<br />

The industry had just started recovering from<br />

a three-year drought when the Covid-19 national<br />

lockdown was implemented, banning all exports<br />

and local sales of alcohol for a large part of 2020.<br />

“We lost close to R7.2-billion in direct revenue,<br />

which left many producers, wineries and related<br />

businesses in dire straits, many more individuals<br />

without employment and the industry with a<br />

large surplus of uncontracted wine,” says Vinpro<br />

MD Rico Basson.<br />

The road to recovery will be long and hard,<br />

but the wine and wine tourism industries remain<br />

resilient, celebrating milestones along the way.<br />

“Through sound advocacy with government,<br />

Vinpro and our industry partners played our part<br />

to reopen trade and tourism activities and secure<br />

financial relief for certain segments of the industry,”<br />

Basson says.<br />

Driving exports<br />

The #SaveSAWine social media campaign helped<br />

create an awareness of South Africa’s exceptional<br />

wines across the globe, while Wines of South<br />

Africa and Wesgro continuously drive various<br />

initiatives to grow exports. Wine tourism workers<br />

received financial support from the <strong>Western</strong> <strong>Cape</strong><br />

Department of Agriculture, while Vinpro presented<br />

a series of direct-to-consumer workshops and<br />

launched a wine tourism skills audit which will<br />

guide further development and training in <strong>2021</strong>.<br />

Wine grape producers and wineries are also<br />

Contact details<br />

Vinpro<br />

Tel: +27 21 276 0429 | Email: info@vinpro.co.za | Website: www.vinpro.co.za<br />

FOCUS<br />

improving efficiencies and re-evaluating their<br />

business models, while Vinpro and its industry<br />

partners are facilitating programmes to balance<br />

supply to bring about greater price stability.<br />

“For the wine industry to be sustainable, it<br />

also needs to drive responsible production, trade,<br />

marketing and consumption of alcohol,” Basson<br />

says. Apart from comprehensive educational<br />

programmes and campaigns by the alcohol<br />

industry body Aware.org (Association for Alcohol<br />

Responsibility and Education), the industry<br />

has also joined hands with government, civil<br />

society and labour to change behaviour through<br />

targeted interventions which address foetal<br />

alcohol spectrum disorder, drinking and driving<br />

or walking, underage drinking, community<br />

formalisation and binge drinking.<br />

About Vinpro<br />

Vinpro represents 2 500 South African wine<br />

grape producers, cellars and wine-related<br />

businesses, while providing strategic direction,<br />

rendering specialised services and driving<br />

people development.<br />

15<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


SPECIAL FEATURE<br />

<strong>Cape</strong> Town is South Africa’s<br />

asset management capital<br />

The strength and diversity of the <strong>Cape</strong>’s financial services underpins a vibrant sector.<br />

The venue for the 2019 Raging Bull Awards for collective investment<br />

schemes was the <strong>Cape</strong> Town International Convention Centre – which<br />

meant that the winners did not have to travel far to collect their trophies.<br />

<strong>Cape</strong> Town is South Africa’s asset management capital.<br />

<strong>Cape</strong> Town also, according to the Global Financial Centres Index (GFCI),<br />

ranks second in Africa in 2020 (behind Mauritius) in competitiveness as<br />

a financial centre. The ranking is an aggregate of indices covering five<br />

things: business environment, financial sector development, human capital,<br />

infrastructure and reputation.<br />

Of the 20 finalists named for the 2020 Morningstar South Africa Fund Awards,<br />

13 have their headquarters in the <strong>Cape</strong>. Seven of the top 10 managers in the<br />

Plexcrown Ratings of 2019 are based in Newlands (MiPlan), Victoria & Alfred<br />

Waterfront (Allan Gray, pictured on the next page), Claremont (Coronation),<br />

Bellville (PSG and Boutique CI), Pinelands (Old Mutual) and Westlake (Prescient).<br />

The diversity of locations in <strong>Cape</strong> Town mirrors the range of products offered.<br />

South Africa now has over 1 000 registered unit trusts through which investors<br />

have access to money markets, domestic equities, bond markets and overseas<br />

markets, among others. The categories in which awards are presented give<br />

insight into the range. The fund categories (and <strong>Cape</strong> Town finalists) for the 2020<br />

Morningstar awards were:<br />

CATEGORY<br />

Best Aggressive Allocation Fund<br />

Best Bond Fund<br />

Best Cautious Allocation Fund<br />

Best Flexible Allocation Fund<br />

Best Moderate Allocation Fund<br />

Best South African Equity Fund<br />

Best Fund House (Larger<br />

Fund Range)<br />

Best Fund House (Smaller<br />

Fund Range)<br />

WESTERN CAPE FINALISTS<br />

Kagiso Balanced<br />

Allan Gray Bond<br />

Kagiso Stable<br />

Coronation Optimum Growth<br />

Sanlam Managed Moderate Fund of Funds<br />

Kagiso Equity Alpha<br />

Investec Asset Management (now Ninety One)<br />

and Sygnia Asset Managers<br />

Fairtree Asset Management and Kagiso<br />

Asset Management<br />

The 2019 Raging Bull<br />

Awards, which were held<br />

in January 2020, awarded<br />

“South African Manager<br />

of the Year” to MiPlan<br />

and “Offshore Manager<br />

of the Year” to Nedgroup<br />

Investments. Runnersup<br />

in the South African<br />

category were Ninety One<br />

and Prescient.<br />

Other Raging Bull<br />

winners for outright<br />

performance over three<br />

years were Kagiso Equity<br />

Alpha (General Equity<br />

Fund), Truffle SCI Income<br />

Plus (Interest-bearing Fund),<br />

BlueAlpha BCI (Global<br />

Equity General Fund), and<br />

Fundsmith (Offshore Global<br />

Equity Fund). For riskadjusted<br />

performance over<br />

five years the winners were<br />

Fairtree, Kagiso Protector,<br />

Long Beach Flexible and<br />

Platinum Global.<br />

A global trend also<br />

present in the <strong>Western</strong> <strong>Cape</strong><br />

is the growth of the smaller<br />

company. Writing for citywire.<br />

co.za in 2020, Patrick Cairns<br />

noted that the market share<br />

of South Africa’s seven largest<br />

managers slipped from 64.8%<br />

in 2014 to 60.7% in 2019.<br />

Cairns highlighted the leap<br />

in assets under management<br />

(AUM) of <strong>Cape</strong> Town-based<br />

Prescient in the five years to<br />

2019 – a noteworthy increase<br />

of 178.1%.<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

16


SPECIAL FEATURE<br />

Another trend is the growth in offshore<br />

investing. The <strong>Business</strong> Times in the Sunday<br />

Times reported in 2020 that the all-share index<br />

of South Africa’s primary stock exchange, the<br />

JSE, had grown by less than 5% in five years. By<br />

comparison, the US’s S&P 500 was 72% higher.<br />

However, Jacques Plaut of Allan Gray, which<br />

manages more than R500-billion, is quoted<br />

saying, “If the crowds are extremely fearful of<br />

something, don’t sell SA Inc without evaluating<br />

the stocks on the facts and the merits of each<br />

case.” The stellar performance of the Capitec<br />

share price is noted, as is the fact that some<br />

companies will benefit from a weak rand.<br />

Reporting on a recent analysis of the global asset<br />

management sector from the Boston Consulting Group,<br />

Cairns flagged alternatives as an area of future growth. BCG<br />

anticipates alternatives rising to nearly 50% of revenues<br />

in four years, up from less than a fifth of AUM which they<br />

currently constitute.<br />

Old Mutual Alternative Investments (OMAI) invests in<br />

infrastructure, private equity, affordable education, housing<br />

and fund of funds. The OMAI IDEAS Fund is a regular investor in<br />

renewable energy projects.<br />

Contribution to GDP<br />

The financial services sector was the single largest contributor to<br />

regional gross domestic product (GDP) in 2016. With a value of<br />

R43-billion in that year, a consistent growth rate over a five-year<br />

period of 3.8% and inward investment of more than R2-billion<br />

in the same period, the financial services sector punches above<br />

its weight.<br />

This is also true nationally, where <strong>Cape</strong> Town’s share of<br />

national employment in the financial sector is about 20% and<br />

the contribution to gross value-added (GVA) is 15%.<br />

<strong>Cape</strong> Town asset managers are operating in an area<br />

that has historically been strong in banking and finance.<br />

The city is host to the headquarters of large insurance<br />

companies such as Metropolitan, Old Mutual Africa, Santam,<br />

Direct Axis and financial services groups such as Sanlam,<br />

PricewaterhouseCoopers and Allan Gray.<br />

Credit: VDMMA (Van der Merwe Miszewski Architects)<br />

More recently, the city<br />

has become home to several<br />

financial technology (fintech)<br />

incubators: according to<br />

Tracxn there were 154 fintech<br />

startups in <strong>Cape</strong> Town in<br />

2019 and French Tech Labs<br />

operates out of Century City.<br />

The region’s three tertiary<br />

institutions provide a sound<br />

educational base for the<br />

financial sector, with a more<br />

specific business focus being<br />

afforded by the University<br />

of <strong>Cape</strong> Town Graduate<br />

School of <strong>Business</strong> (GSB), the<br />

University of Stellenbosch<br />

<strong>Business</strong> School (USB) and<br />

the School of <strong>Business</strong><br />

and Finance (SBF) at the<br />

University of the <strong>Western</strong><br />

<strong>Cape</strong>. TSIBA <strong>Business</strong> School<br />

offers undergraduate and<br />

postgraduate business<br />

qualifications as well as<br />

informal short courses in<br />

leadership, entrepreneurship<br />

and commerce. TSIBA stands<br />

for Tertiary School in <strong>Business</strong><br />

Administration. ■<br />

17 WESTERN CAPE BUSINESS <strong>2021</strong>


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Taking into consideration the everevolving<br />

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distribution cuts across eight regions, each<br />

led by skilled regional managers and<br />

supported by functional teams and product<br />

specialists across the integrated business<br />

channels of <strong>Business</strong> Banking, Small<br />

<strong>Business</strong>, Retail and Personal Banking.<br />

Nedbank’s decentralised <strong>Business</strong> Banking<br />

Cluster has 70 business managers located<br />

across the province. They specialise in<br />

commercial industries and the agricultural<br />

sector to support all sectors of the<br />

<strong>Western</strong> <strong>Cape</strong> economy.<br />

‘<br />

Working with communities<br />

is entrenched in our<br />

values through community<br />

development, skills<br />

development, education<br />

and job creation …<br />

’<br />

‘At Nedbank <strong>Business</strong> Banking we believe<br />

that you need a financial partner who not<br />

only understands your circumstances and<br />

aspirations, but also provides you with<br />

relevant solutions and a banking experience<br />

that is hassle-free. This allows you to<br />

concentrate on what’s most important to<br />

you – running your business,’ says Omar.<br />

As your bank, we understand business<br />

banking, and remain committed to drawing<br />

on our expertise to support clients by<br />

adding value with innovative solutions<br />

through engaged people and localised<br />

structures. We know that success in<br />

business is about partnerships, and that is<br />

why we put the building of deep, lasting,<br />

value-adding relationships at the centre of


‘<br />

… we understand business banking, and<br />

remain committed to drawing on our<br />

expertise to support clients by adding<br />

value with innovative solutions …<br />

everything we do. This means your goals<br />

are our goals, your vision is our vision and<br />

your success is our success.<br />

Through our bigger-picture banking<br />

approach we immerse ourselves in your<br />

business and your industry so that we are<br />

an extension of your team, with a full<br />

understanding of your business<br />

requirements. This enables us not only to<br />

provide you with the banking solutions you<br />

need, but also to give you a bigger-picture<br />

view of how each of our products connects<br />

to create a framework that yields<br />

maximum impact across every facet of<br />

your business and beyond. When you add to<br />

this the insights and expertise available to<br />

you across Nedbank’s extensive network of<br />

multidisciplinary specialists, you know that<br />

you have a banking partner who is walking<br />

with you throughout your business journey.<br />

'Working with communities is entrenched in<br />

our values through community<br />

development, skills development, education<br />

and job creation, as well as environmental<br />

conservation. These play a vital role in<br />

building a sustainable economy and vibrant<br />

society. We believe our fast-growing<br />

presence in communities goes a long way in<br />

enabling greater financial inclusion while<br />

contributing towards economic growth,'<br />

says Omar.<br />

And the innovation journey continues,<br />

ensuring greater value for clients. The<br />

Nedbank Money app allows clients to<br />

manage accounts, make payments and<br />

change their credit or debit card settings<br />

’<br />

from their smartphone. The Money app also<br />

allows clients to make instant payments to<br />

anyone on their smartphone’s contact list,<br />

regardless of whether the recipient is a<br />

Nedbank client.<br />

Nedbank’s payments app, Karri, simplifies<br />

school payments to help teachers, parents<br />

and children. The Karri app makes payments<br />

to schools for events such as civvies days,<br />

school trips and other fundraising activities<br />

easy and secure, using a built-for-purpose<br />

mobile payment application.<br />

Nedbank’s interactive ATM – a first for Africa<br />

– gives clients access to live teller services<br />

over video, at any time, right from the<br />

machine. ‘This ATM also responds to the<br />

growing trend and need for business and<br />

individual clients to make large deposits<br />

and withdrawals at unconventional<br />

business hours.’<br />

All of which are ways in which Nedbank<br />

continues to simplify and make banking for<br />

businesses and communities work for<br />

their good.<br />

Should you be interested in taking your<br />

business to its next level and improving<br />

staff engagement, and if you want more<br />

information about Nedbank’s specialised<br />

service offering, please call the <strong>Business</strong><br />

Banking team on +27 (0)21 412 3000 or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

see money differently<br />

SEE MONEY DIFFERENTLY<br />

WITH BIGGER-PICTURE<br />

BUSINESS BANKING<br />

Gerrit Henning, Nedbank Regional Manager of Retail and<br />

<strong>Business</strong> Banking: Northern Suburbs, explains how Nedbank<br />

works with communities to deliver banking solutions.<br />

Nedbank continues to build on its<br />

client-centred strategy aimed at<br />

delivering distinctive experiences<br />

and channels of choice for businesses in<br />

the region.<br />

This has seen the bank simplify and<br />

enhance its product offering in line with its<br />

value banking philosophy based on<br />

simplicity, transparency and affordability.<br />

Innovation and technological advancements,<br />

as well as training and development of staff,<br />

have been key pillars in achieving the bank’s<br />

objectives. At the core of Nedbank’s<br />

offering in the <strong>Western</strong> <strong>Cape</strong> is a<br />

relationship-based model, with a business<br />

manager dedicated to your business as the<br />

key entry point into the bank.<br />

Henning has five years’ experience in the<br />

auditing and accounting profession and<br />

eight years’ experience with international<br />

companies. He has fulfilled various<br />

leadership roles in Nedbank, with 14 years<br />

as regional head of <strong>Business</strong> Banking.<br />

Henning is supported by an area office<br />

with 12 skilled business managers ready to<br />

take your business to the next level.<br />

‘We encourage you to see money differently<br />

with the bigger-picture approach that<br />

‘<br />

… see money differently with the<br />

bigger-picture approach that<br />

<strong>Business</strong> Banking offers …<br />

’<br />

<strong>Business</strong> Banking offers,’ says Henning. What<br />

does this mean for you? It is an additional<br />

benefit of banking with Nedbank <strong>Business</strong><br />

Banking and means that your business and<br />

your personal financial needs are managed<br />

in one place. ‘Because business owners and<br />

their businesses are very often financially<br />

dependent on each other, our client service<br />

teams now also offer individual banking<br />

solutions to you and your staff, because we<br />

already know and understand your needs,’<br />

says Henning.<br />

With this in mind, Nedbank has seamless<br />

offerings for you, your employees and your<br />

household. Nedbank provides several<br />

communities, including individual and<br />

business clients, with access to products<br />

and services through its Workplace<br />

Banking offering.<br />

To take your business to the next level<br />

please call the <strong>Business</strong> Banking team on<br />

+27 (0)21 928 2000 or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

see money differently<br />

USING OUR MONEY<br />

EXPERTISE TO HELP<br />

CLIENTS<br />

Randall Bailey, Nedbank Regional Manager of Retail and <strong>Business</strong><br />

Banking: Weskus and Swartland, explains how new brand values<br />

built on the bank’s expertise can benefit Nedbank clients.<br />

Bailey’s team operates from regional<br />

offices in Breda Street in Paarl, as<br />

well as from representative offices in<br />

Vredendal, Vredenburg and Malmesbury.<br />

He says the team is ready to assist clients<br />

with professional advice, industry-specific<br />

solutions and a comprehensive range of<br />

financial products and services. His team<br />

is also supported by skilled agricultural<br />

specialists, who provide specialised advisory<br />

services to clients.<br />

With more than 20 years' banking<br />

experience, Bailey has been with Nedbank<br />

for just over five years and has worked in a<br />

number of areas, including credit.<br />

He also manages 14 retail branches across<br />

his region, providing clients with unique<br />

financial solutions. ‘It forms part of our<br />

purpose at Nedbank to use our financial<br />

expertise to do good for individuals,<br />

families, businesses and society,’ says<br />

Bailey.<br />

Nedbank’s goal to have all service offerings<br />

and business and consumer products<br />

managed under one regional structure<br />

makes it easier to deliver on its new brand<br />

proposition to see money differently.<br />

‘<br />

… the team is ready to<br />

assist clients with<br />

professional advice,<br />

industry-specific<br />

solutions and a<br />

comprehensive range<br />

of financial products<br />

and service …<br />

’<br />

To take your business to the next level or to<br />

obtain more information about Nedbank’s<br />

specialised service offering call<br />

Randall Bailey on +27 (0)21 412 3051, send<br />

an email to RandallB@nedbank.co.za or<br />

visit www.nedbank.co.za.


ADVERTORIAL<br />

see money differently<br />

ONE-STOP BANKING<br />

SERVICES FROM NEDBANK<br />

CAPE CENTRAL<br />

Karen Seboa, Nedbank Regional Manager of Retail and<br />

<strong>Business</strong> Banking: <strong>Cape</strong> Central, shares how partnerships<br />

can benefit Nedbank clients.<br />

Seboa’s team operates from its<br />

regional office at The Clock Tower in<br />

the V&A Waterfront and is ready to<br />

assist clients with professional advice,<br />

industry-specific solutions – including for<br />

the medical profession – and a<br />

comprehensive range of financial products<br />

and services for businesses and individuals<br />

in the <strong>Western</strong> <strong>Cape</strong>.<br />

Seboa has been with Nedbank for more<br />

than 20 years and has worked in a number<br />

of roles, including as area manager for the<br />

retail branch network and in Retail<br />

Relationship Banking. She prides herself on<br />

building relationships and understanding<br />

the needs of clients, saying that<br />

partnership- and relationship-based<br />

banking are key drivers of how Nedbank<br />

conducts business to ensure clients benefit<br />

from its money expertise.<br />

‘It forms part of our purpose at Nedbank<br />

to use our financial expertise to do good<br />

for individuals, families, businesses and<br />

society,’ says Seboa.<br />

‘We look forward to continuing our<br />

relationships with our valued existing<br />

clients, and to offering our value<br />

‘<br />

At the core of our offering<br />

in <strong>Business</strong> Banking is a<br />

relationship-based model,<br />

with a business manager<br />

dedicated to your business<br />

as your key entry point to<br />

the bank.<br />

’<br />

proposition to new clients as well. At the<br />

core of our offering in <strong>Business</strong> Banking is a<br />

relationship-based model, with a business<br />

manager dedicated to your business as<br />

your key entry point to the bank.’<br />

To take your business to the next level or to<br />

obtain more information about Nedbank’s<br />

specialised service offering call<br />

+27 (0)21 412 3000, sendanemailto<br />

KarenSeb@nedbank.co.za or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

see money differently<br />

RELATIONSHIPS AND<br />

UNDERSTANDING CLIENT<br />

NEEDS ARE KEY, SAYS EXPERT<br />

Naziem Esack, Regional Manager of Retail and <strong>Business</strong><br />

Banking: Winelands, explains how new brand values built on<br />

the bank’s expertise can benefit Nedbank clients.<br />

Esack’s team operates from its offices<br />

in Stellenbosch and is ready to assist<br />

clients with professional advice,<br />

industry-specific solutions and a<br />

comprehensive range of financial products<br />

and services. In addition, his team is<br />

supported by skilled agricultural specialists,<br />

who provide specialised advisory services.<br />

Esack, as a skilled banker, has been with<br />

Nedbank for eight years and has worked in<br />

a number of roles in his 38-year career in<br />

the banking industry. He was the area<br />

manager of Nedbank <strong>Business</strong> Banking in<br />

Helderberg and Stellenbosch before he<br />

started in his current role.<br />

He heads a team of retail and business<br />

banking experts with the aim of providing<br />

clients with unique business and financial<br />

solutions.<br />

‘At Nedbank Retail and <strong>Business</strong> Banking<br />

we believe you need a financial partner<br />

who has a deeper understanding of your<br />

business – someone who offers innovative,<br />

relevant solutions and who gives you a<br />

banking experience that is hassle-free.<br />

As money experts, we are committed to<br />

doing good, so you can concentrate on<br />

‘<br />

As money experts, we are<br />

committed to doing good,<br />

so you can concentrate on<br />

what’s most important to<br />

you – running your<br />

business.<br />

’<br />

what’s most important to you – running<br />

your business,’ says Esack.<br />

‘We encourage you to see money differently<br />

with the bigger-picture approach offered<br />

by Nedbank <strong>Business</strong> Banking, and to take<br />

advantage of our one-stop banking<br />

service at Winelands region,’ says Esack.<br />

To take your business to the next level or<br />

to obtain more information about<br />

Nedbank’s specialised service offering<br />

call +27 (0)21 808 6700, sendanemailto<br />

NaziemE@nedbank.co.za or visit<br />

www.nedbank.co.za.<br />

Nedbank Ltd Reg No 1951/000009/06. Authorised financial<br />

services and registered credit provider (NCRCP16).<br />

SPO5940


An international effort: the turbine tower sections being prepared for transportation to site for the Paardekraal East Wind<br />

Farm were built by Gestamp Renewable Industries (GRI) of the Netherlands (in <strong>Cape</strong> Town), the turbines were supplied and<br />

installed by Siemens Gamesa Renewable Energy (a Spanish company) and Mainstream Asset Management South Africa<br />

(a company with Irish roots) will manage the operations. CREDIT: GRI<br />

KEY SECTORS<br />

Overviews of the main economic<br />

sectors of the <strong>Western</strong> <strong>Cape</strong><br />

Maritime and fishing 26<br />

Oil and gas 30<br />

Energy 34<br />

Manufacturing 36<br />

Construction and property 38<br />

Tourism and events 39<br />

Education and training 40<br />

Banking and financial services 44<br />

Development finance and SMME support 45<br />

<strong>Business</strong> process outsourcing 46


OVERVIEW<br />

Maritime and fishing<br />

New opportunities are opening up in manufacturing and servicing.<br />

SECTOR INSIGHT<br />

<strong>Cape</strong> Town boats are<br />

involved in space travel.<br />

Gemini Marine<br />

Boats built in <strong>Cape</strong> Town are collecting astronauts in the waters<br />

of the Gulf of Mexico after they splash down. Epping-based<br />

Gemini Marine has signed a deal with Elon Musk’s SpaceX to<br />

supply recovery boats for astronauts returning from the International<br />

Space Station. A selection of international clients includes<br />

the UK Ministry of Defence, the Royal New Zealand Navy, the United<br />

Nations and the Singapore Special Forces.<br />

The South African Boat Builders Export Council (SABBEX) reports that<br />

the sector is particularly strong in catamarans and yachts but a growing<br />

variety of boats are being built. These includes custom and semi-custom<br />

built monohulls, powerboats, commercial vessels, sport-fishing boats<br />

and inflatables.<br />

Two Oceans Marine manufactures both power and sailing<br />

catamarans in 4 500m² of factory space on two different premises,<br />

in <strong>Cape</strong> Town harbour and in Paarden Island. The company runs an<br />

internship programme with False Bay TVET College.<br />

Damen Shipyards <strong>Cape</strong> Town is building three inshore patrol vessels<br />

for the South African Navy, the first of which will be delivered in <strong>2021</strong>.<br />

The vessels will be used to secure South Africa’s waters against threats<br />

such as illegal fishing, smuggling and piracy.<br />

Since 2014, investments worth R30-billion have been made into the<br />

sector and created more than 7 000 direct jobs (Invest <strong>Cape</strong> Town). The<br />

<strong>Western</strong> <strong>Cape</strong> Department of Economic Development and Tourism<br />

(DEDAT) reports that in 2016 the oil, gas and marine sector supported 8 320<br />

jobs and contributed R1-billion to the province’s gross value add.<br />

The <strong>Western</strong> <strong>Cape</strong> has enthusiastically embraced the national<br />

strategy called Operation Phakisa (“hurry up” in Sesotho). The 2033<br />

target is for the share of the<br />

Maritime Economy to South<br />

Africa’s gross domestic product<br />

(GDP) to grow by 250% (and<br />

perhaps as much as 350%)<br />

compared to its current value,<br />

to a figure between R129-billion<br />

and R177-billion. A million new<br />

jobs are expected to be created.<br />

The construction of an<br />

offshore supply base in the Port<br />

of Saldanha on a dedicated quay<br />

is an excellent example of the<br />

impact of Operation Phakisa.<br />

Saldehco, a privately-owned<br />

South African special purpose<br />

vehicle with foreign investors,<br />

submitted a tender in 2016<br />

through the Transnet National<br />

Ports Authority (TNPA) to build<br />

this infrastructure to support the<br />

growing oil and gas industry.<br />

Large industrial operations<br />

already exist at Saldanha and the<br />

Port of Saldanha Bay is the portal<br />

for the export of South Africa’s iron<br />

ore. The Saldanha Bay Industrial<br />

Development Zone (SBIDZ) is<br />

becoming a hub for a range of<br />

maritime repair activities and oil<br />

rig maintenance and repair.<br />

The National Department of<br />

Trade, Industry and Competition<br />

(dtic) and the DEDAT have<br />

collectively invested R500-million<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

26


OVERVIEW<br />

in core infrastructure and a lease agreement has been signed with TNPA.<br />

The SBIDZ fits neatly into two overarching visions: Operation Phakisa and<br />

Project Khulisa, the targeted growth strategy of the <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government which includes servicing and repairing of oil rigs as a priority.<br />

The marine transport committee of the South African Oil and<br />

Gas Alliance (SAOGA) is preparing South Africa to reap the potential<br />

of the sector. It has developed 18 initiatives across three categories:<br />

infrastructure and operations, skills and market growth.<br />

During the Covid-19 lockdown, the Port of <strong>Cape</strong> Town did not shut<br />

down for a single day. Working teams were reduced and reallocated<br />

but the vital work of loading and unloading supplies was done. A task<br />

force with a wide range of representatives from government, business<br />

and port authorities is working on reducing congestion at the harbour.<br />

A renewed focus on ship repair through facilities such as the Sturrock<br />

and Robinson drydocks is on the cards for the Port of <strong>Cape</strong> Town, which<br />

has a diverse offering through its Container Terminal, Multipurpose<br />

Terminal, Liquid Bulk Terminal and Fresh Produce Terminal.<br />

Fishing<br />

About 310-million kilograms of fish is consumed annually by South<br />

Africans, of which about half is caught locally. The main fish are hake<br />

and sardines and almost all of that is harvested in <strong>Western</strong> <strong>Cape</strong><br />

waters by deep-sea trawlers.<br />

The fishing industry earns R3.4-billion in foreign earnings annually<br />

and employs 26 500 people across 22 sectors, the main ones being<br />

deep-sea trawling and aquaculture (JSE). The aquaculture industry is<br />

currently small, but since 2014 investment commitments of about<br />

R700-million have been made.<br />

The allocation of commercial fishing rights in 12 sectors that was<br />

due to happen in 2020 has been postponed to December <strong>2021</strong>.<br />

ONLINE RESOURCES<br />

Lawhill Maritime Centre: www.lawhill.org<br />

Operation Phakisa: www.environment.gov.za<br />

SABBEX/Boating South Africa: www.boatingsouthafrica.co.za<br />

SA Deep Sea Trawling Industry Association: www.sadstia.co.za<br />

Saldanha Bay Industrial Development Zone: www.sbidz.co.za<br />

Lawhill Maritime Centre<br />

It is likely that the quotas of<br />

larger fishing companies will be<br />

reduced in favour of small-scale<br />

fishing companies.<br />

There have been several<br />

changes in ownership in the<br />

fishing industry, most likely<br />

linked to the upcoming<br />

determination of new<br />

fishing rights in which black<br />

shareholding will be a factor.<br />

The acquisition by blackcontrolled<br />

Sea Harvest Group<br />

of Viking Fishing is part of a<br />

larger trend.<br />

Tiger Brands has unbundled<br />

its 42% stake in Oceana Group.<br />

Oceana holds the popular<br />

pilchards brand Lucky Star,<br />

which enjoys 80% of market<br />

share in South Africa, and has<br />

the highest market value of<br />

fishing companies in South<br />

Africa. The Oceana Group<br />

recently purchased Foodcorp’s<br />

fishing rights and a US fishmeal<br />

and oil company, Daybrook.. ■<br />

27<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


INTERVIEW<br />

The Port of <strong>Cape</strong> Town is<br />

investing in future growth<br />

Port Manager Mpumi Dweba-Ketana outlines key areas of focus for building the<br />

ship repair and container businesses while improving efficiencies in all spheres.<br />

What is the role of the Port Authority?<br />

Our role is to make space available for the use of terminal operators. We<br />

are a landlord in that we give facilities and infrastructure to people to<br />

operate those facilities. We have 11 terminal operators altogether.<br />

Please tell us how Covid-19 affected the port.<br />

When Covid started we all put plans in place, but even at Level 5 we<br />

were not closed because the Container Terminal, the Multipurpose<br />

Terminal and the Liquid Bulk Terminal all stayed open because they<br />

provide essential goods and services. We applied business continuation<br />

plans and we did not close for any single day for business.<br />

Mpumi Dweba-Ketana,<br />

Port Manager<br />

BIOGRAPHY<br />

The daughter of teachers, Mpumi<br />

Dweba-Kwetana, earned a BA, a<br />

BED and an HDE as a teacher and<br />

an Education Specialist for the Department<br />

of Education. Her switch<br />

to the maritime industry led to a<br />

BPhil in Maritime Economics and an<br />

Executive MBA. After working for the<br />

Department of Transport, Mpumi<br />

was appointed by Transnet National<br />

Ports Authority as the first Port Manager<br />

for the Port of Ngqura in 2012.<br />

She took up the <strong>Cape</strong> Town post<br />

in 2017.<br />

Were staff affected?<br />

A first fatality unfortunately happened outside and we saw infections<br />

start to increase, also in berthing services. We reduced the team from<br />

four to two and also reduced the number of gangs. Most unfortunately<br />

the increase in cases in <strong>Cape</strong> Town came among the skilled workers<br />

you cannot easily replace. Among operators, we were down from eight<br />

gangs to two.<br />

What steps were taken to overcome the challenges of Covid-19?<br />

From the month of June, we started to see the system stabilising,<br />

employees were either coming back from quarantine or isolation. We<br />

reviewed our strategy with regard to those with co-morbidities. It was<br />

decided that those below the age of 60 who wanted to come back to<br />

work could after a visit to the clinic to determine their fitness. We must<br />

acknowledge the role that was played by the Port of Durban. When<br />

we did not have operators, 20 operators flew in from Durban. We treat<br />

them as warriors, and their bravery was really appreciated.<br />

Have you been able to ramp up operations again?<br />

All terminals are operating now, and we are back to at least 80%<br />

regarding staff. Staff over 60 with co-morbidity still can’t come to work.<br />

What degree of coordination is required to run a successful port?<br />

We have virtual meetings with all terminal operators where we discuss<br />

the issues. Any likely challenges can be brought to our attention by local<br />

and provincial government or even the business chamber. We are able<br />

to hold each other accountable.<br />

WESTERN CAPE BUSINESS <strong>2021</strong> 28


INTERVIEW<br />

In 2019, multi-sector engagement began on<br />

congestion issues. How is that progressing?<br />

We are making good progress. We are working<br />

closely via task teams on operational efficiencies.<br />

This includes truck staging. A truck booking system<br />

introduced by the Port of Durban has reduced the<br />

number of waiting trucks. The exciting news is that<br />

that programme is coming to <strong>Cape</strong> Town. We need<br />

to look at congestion holistically. A lot of variables<br />

need to be aligned. Operating hours, starting from<br />

the warehouse, the truckers and the terminals, all<br />

should be more synchronised. We have identified a<br />

space which will be a short-term truck-staging area.<br />

In the longer term we are looking at a permanent<br />

holding area.<br />

What are your top priorities?<br />

There are three main priorities: ship repair, the<br />

Container Terminal and investing in our fleet. We will<br />

complete capital investment in ship repair of about<br />

R1-billion. We are looking at civil and mechanical<br />

equipment, and electrical infrastructure. We aim<br />

to invest in our marine fleet. Some of our fleet is<br />

40 years old, so we are looking at tugs (we aim to<br />

have three 70-ton tugs, in total we will have five<br />

tugs) and also in our work boats and our launches.<br />

We are going to procure a helicopter in order to<br />

improve efficiencies. We have a phenomenon of<br />

high swells of about 4-5m so it is difficult for the<br />

pilot boat to navigate. Improving the Container<br />

Terminal is another priority.<br />

What is required to be a world-class port?<br />

We need to work on the building blocks. The plan<br />

is that ships do not even go to the anchorage,<br />

the pilot goes out and then the pilot brings the<br />

ship alongside. We don’t want them to wait. An<br />

investment plan is in place. A maintenance strategy<br />

must ensure that operators are fully operational.<br />

A critical aspect is people: you need a highly<br />

efficient work force that has embraced a culture<br />

of continuous improvement. When that ship is<br />

alongside, they are hungry to service it.<br />

Where does the Port of <strong>Cape</strong> Town fit in with<br />

the country’s port strategy?<br />

We have eight commercial ports in South Africa and<br />

we must support each other. We can support the<br />

Port of Saldanha in terms of the oil and gas sector, for<br />

example, but we see ourselves playing predominantly<br />

in the container space. We want to<br />

strengthen the quayside to expand from one-million<br />

TEUs to 1.4-million TEUs (twenty-foot equivalent units).<br />

We also see exciting opportunities in ship<br />

repairs. Sturrock Dry Dock is one of the biggest<br />

facilities in the SADC region and we want to draw<br />

more vessels to it. There could be 2 000 people<br />

employed on a ship. ■<br />

29<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


OVERVIEW<br />

Oil and gas<br />

Gas finds off the Southern <strong>Cape</strong> coast have vast potential.<br />

SECTOR INSIGHT<br />

The Chevron refinery<br />

produces petrol, diesel, jet<br />

fuel and liquefied gas.<br />

In 2019 Total and its partners created a stir with the announcement<br />

that gas condensate had been found at a site<br />

called Brulpadda off the coast of Mossel Bay. In 2020, the<br />

nearby Luiperd prospect in Block 11B/12B delivered more<br />

exciting news.<br />

The block, in the Outeniqua Basin 175km off the southern coast,<br />

covers an area of about 19 000km² in water depths of 200-1 800m. The<br />

exploration was done by the semi-submersible rig Deepsea Stavanger,<br />

which journeyed twice from Norway to lead the exploration projects.<br />

The two finds raise the odds of Total investing in what it calls a<br />

“world-class” offshore gas site. The drilling campaign employed 195<br />

South Africans with specialist<br />

skills but the potential spinoff is<br />

enormous for the <strong>Western</strong> <strong>Cape</strong><br />

and South Africa, if the find leads<br />

to drilling and commercialisation.<br />

If Total goes ahead, the<br />

PetroSA GTL refinery at Mossel<br />

Bay (Mossgas) could be revived<br />

and the idea of creating a gas<br />

market in South Africa would get<br />

a massive boost. Commissioned<br />

in 1992 as the world’s first<br />

gas-to-liquids (GTL) refinery,<br />

Mossgas was due to close in<br />

2020, because, as President<br />

Ramaphosa announced, it had<br />

practically run out of feedstock.<br />

PetroSA is South Africa’s national<br />

oil company.<br />

Petroleum Agency South<br />

Africa (PASA), which encourages<br />

exploration and regulates the<br />

oil and gas industry, has noted<br />

the significance of international<br />

oil companies committing to<br />

exploration off South Africa’s<br />

coast. Increased confidence by<br />

such companies can only lead<br />

to growth in the industry, and<br />

with the massive gas finds in the<br />

Rovuma Basin off Mozambique in<br />

2020, there are sure to be more<br />

companies interested in South<br />

Africa’s potential. In addition to<br />

adjudicating on coastal fields,<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

30


OVERVIEW<br />

the agency has awarded coalbed-methane-gas exploration rights in<br />

KwaZulu-Natal and natural gas exploration permits in the Free State.<br />

Natural gas lies also lies offshore to the west of South Africa in the<br />

Atlantic Ocean (Ibhubesi). Block 2A of the Ibhubesi gas field north-west<br />

of Saldanha is estimated to have reserves of 850-billion cubic feet of gas.<br />

Industrial gas manufacturing in the <strong>Western</strong> <strong>Cape</strong> is a particular<br />

focus for Air Products, a part of the Metkor Group controlled by<br />

Remgro. The company is one of the largest supplier in the pipeline<br />

and on-site markets.<br />

The <strong>Western</strong> <strong>Cape</strong>’s status as an oil and gas hub was enhanced<br />

in 2017 with the opening of a new open-access liquefied petroleum<br />

gas (LPG) import and storage terminal at Saldanha Bay. A publicprivate<br />

partnership is behind the R1-billion terminal, the largest<br />

of its kind in Africa. Investors include Sunrise Energy, the Industrial<br />

Development Corporation (IDC), the Public Investment Corporation<br />

(PIC) and Royal Bafokeng Holdings.<br />

Oil<br />

<strong>Cape</strong> Town’s oil refinery changed hands in 2018 when Off The Shelf<br />

Investments (OTS) completed a $973-million purchase of Chevron’s<br />

downstream assets in South Africa. Chevron has been rebranded as<br />

Astron, but the Caltex service-station brand has been retained. OTS is the<br />

Black Economic Empowerment (BEE) partner of mining giant Glencore,<br />

who financed the deal.<br />

The refinery in Milnerton produces petrol, diesel, jet fuel and liquefied<br />

gas for the <strong>Western</strong> <strong>Cape</strong> and for export to other African countries. The<br />

<strong>Western</strong> <strong>Cape</strong> spends R76-billion annually on crude oil imports and<br />

exports refined petroleum to the value of R13.2-billion.<br />

Large quantities of oil are transported around the <strong>Cape</strong> of Good<br />

Hope every year: 32.2% of West Africa’s oil and 23.7% of oil emanating<br />

from the Middle East. Reduced global prices for oil and troubles in the<br />

container ship market has caused some stress in the local sector but the<br />

long-term prospects for shipping and oil and gas are still strong enough<br />

for national government to pursue Operation Phakisa (which includes<br />

a strong maritime economy push) and for the Transnet National Ports<br />

Authority to spend heavily on upgrading the nation’s ports.<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial Government reported that in<br />

2016 that the oil and gas sector contributed R1.03-billion to the<br />

ONLINE RESOURCES<br />

National Energy Regulator of South Africa: www.nersa.org.za<br />

Petroleum Agency of South Africa: www.petroleumagencysa.com<br />

PetroSA: www.petrosa.co.za<br />

South African Oil and Gas Alliance: www.saoga.org.za<br />

province’s gross value add.<br />

More than 7 000 direct jobs<br />

were created in ship and rig<br />

repair sector of the oil and gas<br />

business in 2015.<br />

The Saldanha Bay<br />

Industrial Development<br />

Zone (SBIDZ) is central to<br />

the plan to grow the sector.<br />

Staff from the SBIDZ actively<br />

sought investors for the zone<br />

at the Africa Oil Week, which<br />

was held in <strong>Cape</strong> Town in<br />

2019. Nine investors, ranging<br />

from gas maintenance<br />

and repair companies to<br />

domestic and foreign oil<br />

companies, have already<br />

committed to the SBIDZ.<br />

The <strong>Western</strong> <strong>Cape</strong><br />

Provincial Government and the<br />

National Department of Trade,<br />

Industry and Competition<br />

invested R500-million in<br />

the development of core<br />

infrastructure at the Saldanha<br />

Bay IDZ. The Saldanha Bay IDZ<br />

has signed a lease agreement<br />

with the Transnet National<br />

Ports Authority.<br />

The Bergun terminal,<br />

comprising 12 tanks located on<br />

the Eastern Mole of the Port of<br />

<strong>Cape</strong> Town, has added to the<br />

port’s fuel storage capacity and<br />

is connected by pipeline to the<br />

Astron refinery.<br />

The Council for Geoscience<br />

(CGS) is doing an intensive<br />

study of South Africa’s potential<br />

shale gas resources. The major<br />

economic sectors using gas<br />

are the metals sector and the<br />

chemical, pulp and paper sector.<br />

Brick and glass manufacturers are<br />

also big consumers. ■<br />

31<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


OVERVIEW FOCUS<br />

Gas find sparks major<br />

investment in exploration<br />

in <strong>Western</strong> <strong>Cape</strong><br />

Mossel Bay could receive condensate from offshore site.<br />

Amajor discovery has been made at a site<br />

south-east of Mossel Bay called Brulpadda.<br />

The well encountered 57m of net<br />

gas condensate pay in Lower Cretaceous<br />

reservoirs. Following the success of the main objective,<br />

the well was deepened to a final depth of<br />

3 633 metres and has also been successful in the<br />

Brulpadda-deep prospect.<br />

This has exciting repercussions for the<br />

emerging <strong>Western</strong> <strong>Cape</strong> oil and gas sector. As Kevin<br />

McLachlan, the Senior Vice President Exploration<br />

at Total, said at the time of the find, “With this<br />

discovery, Total has opened a new world-class gas<br />

and oil play and is well positioned to test several<br />

follow-on prospects on the same block.”<br />

Total as operator holds a 45% participating<br />

interest in Block 11B/12B, while Qatar Petroleum<br />

(25%) and CNRI (20%) are the other participants.<br />

Africa Energy holds a 4.9% effective interest in the<br />

Exploration Right for Block 11B/12B. The Company<br />

owns 49% of the shares in Main Street 1549<br />

Proprietary Limited, which has a 10% participating<br />

interest in the block.<br />

If the local gas market is to take off and<br />

thrive, significant drilling has to take place. As the<br />

new CEO of Petroleum Agency SA, Dr Phindile<br />

Masangane, describes the situation, “That would<br />

be a game-changer for South Africa’s upstream oil<br />

and gas industry.” She added, “The recent discovery<br />

by Total and its JV partners in Block 11B/12B<br />

(Brulpadda) is the first giant step in that direction.”<br />

“Further development of the discovery is highly<br />

dependent on the success of this further drilling,”<br />

comments Dr Masangane. “Possible development<br />

could see condensate being piped to the<br />

PetroSA facility in Mossel Bay,” she adds, “but these<br />

decisions are ultimately up to the operator, Total<br />

and its partners.”<br />

Odfjell’s Deepsea Stavanger semi-submersible<br />

oil rig relocated from Norway to South Africa<br />

in June 2020 to start exploratory drilling. The<br />

Luiperdpadda prospect where the rig is drilling is<br />

the second of five prospects in the group.<br />

With light oil and gas condensate having<br />

been found in the Brulpadda well, it is<br />

possible that other prospects will be found<br />

with this further drilling.<br />

The exploration drilling in Block<br />

11B/12B is in deep waters similar to where<br />

the gigantic Mozambique Rovuma Basin gas<br />

discoveries were made in 2010. The drilling<br />

campaign has long-term benefits to South<br />

Africa which include introducing frontier<br />

deep water (>1400m) exploration drilling,<br />

building confidence and potentially shifting<br />

petroleum exploration activities to private<br />

international oil companies (IOCs), de-risking<br />

deep-water acreage. This will encourage<br />

other IOCs to take risk in drilling deep-water<br />

prospects, which could result in the country<br />

discovering more oil and gas resources.<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

32


OVERVIEW FOCUS<br />

Petroleum Agency SA: promoting and<br />

regulating exploration and production.<br />

Petroleum Agency SA evaluates, promotes<br />

and regulates oil and gas exploration and<br />

production activities in South Africa and<br />

archives all relevant geotechnical data. The<br />

Agency acts as an advisor to the government<br />

and carries out special projects at the<br />

request of the Minister of Mineral Resources<br />

and Energy.<br />

South Africa’s energy mix is changing<br />

to include more gas through importing<br />

liquefied natural gas (LNG), using shale gas<br />

if reserves prove commercial, and developing<br />

infrastructure for the import of LNG. Petroleum<br />

Agency SA plays an important role in developing<br />

South Africa’s gas market by attracting qualified<br />

and competent companies to explore for gas.<br />

Another major focus is increasing the inclusion of<br />

historically disadvantaged South African-owned<br />

entities in the upstream industry.<br />

Currently, natural gas supplies just 3% of South<br />

Africa’s primary energy. A significant challenge<br />

facing the development of a major gas market<br />

is the dominance of coal. Opportunities for gas<br />

lie in the realisation of South Africa’s National<br />

Development Plan (NDP) and the Integrated<br />

Resource Plan (IRP).<br />

As custodian, Petroleum Agency SA ensures<br />

that companies applying for gas rights are<br />

vetted to make sure they are financially qualified<br />

and technically capable, as well having a good<br />

environmental track record. Oil and gas exploration<br />

requires enormous capital outlay and can<br />

represent a risk to workers, communities and the<br />

environment. Applicants are therefore required to<br />

prove their capabilities and safety record and must<br />

carry insurance for environmental rehabilitation. ■<br />

Contact details<br />

Tel: +27 21 938 3500<br />

Email: plu@petroleumagencysa.com<br />

Website: www.petroleumagency.com<br />

Image: Total<br />

PASA’S NEW CEO HAS A BACKGROUND IN ENERGY POLICY AND STRATEGY<br />

Dr Phindile Masangane was appointed as the<br />

CEO of the South African upstream oil and gas<br />

regulatory authority, Petroleum Agency South<br />

Africa, in May 2020. Before then, Dr Masangane<br />

was an executive at the South African state-owned<br />

energy company, CEF (SOC) Ltd, which is the<br />

holding company of PASA.<br />

Dr Masangane was responsible for clean,<br />

renewable and alternative energy projects.<br />

In partnership with private companies, she<br />

led the development of energy projects<br />

including the deal structuring, project<br />

economic modelling and financing on<br />

behalf of the CEF Group of Companies. Her<br />

responsibilities also included supporting the<br />

national government in developing energy<br />

policy and regulations for diversifying the<br />

country’s energy mix.<br />

33<br />

In 2019, Dr Masangane was Head of Strategy<br />

for the CEF Group of Companies where she led the<br />

development of the group’s long-term strategic<br />

plan, Vision 2040+ as well as the group’s gas strategy.<br />

From 2010 to 2013, Dr Masangane was a<br />

partner and director at KPMG, responsible for<br />

the Energy Advisory Division. She successfully<br />

led the capital raising of $2-billion for<br />

hydro and coal power plants expansion<br />

programmes of the Zimbabwean power<br />

utility, ZESA/ZPC.<br />

An alumnus of three universities,<br />

Dr Masangane has a BSc (mathematics<br />

and chemistry) from the University<br />

of Swaziland, a PhD in Chemistry from<br />

Imperial College, London and an<br />

MBA from the University of<br />

the Witwatersrand. ■


OVERVIEW<br />

Energy<br />

The <strong>Western</strong> <strong>Cape</strong> wants a bigger role for cities in the energy sector.<br />

Just days before a case between the City of <strong>Cape</strong> Town and<br />

the National Energy Regulator of South Africa (Nersa) was<br />

heard in court, Mineral Resources and Energy Minister<br />

Gwede Mantashe published draft amendments which<br />

provide for some role for municipalities in the generation and<br />

procurement of electricity.<br />

Judgement in the case was reserved but the city is pushing ahead<br />

with its case, the minister’s input notwithstanding. The fact that <strong>Cape</strong><br />

Town has an Executive Director for Energy and Climate Change is<br />

an indication of how seriously it treats the issue. Ultimately the city<br />

wants to be allowed to procure power from independent power<br />

producers (IPPs) and to see a national programme put in place.<br />

South Africa’s acclaimed Renewable Energy Independent<br />

Power Producer Procurement Programme (REIPPPP) attracted<br />

about R200-billion in committed investments, mostly in solar and<br />

wind power, in just five years.<br />

The early rounds of the independent power producers’<br />

programme continue to produce regular dividends. In October 2020,<br />

another wind farm started commercial operations. The Paardekraal<br />

East Wind Farm, which is located about 80km north-east of Ceres,<br />

is in the Witzenberg Local Municipality. The 110MW project was<br />

constructed by the Concor and Conco Consortium, Siemens<br />

Gamesa Renewable Energy supplied and installed the wind turbines,<br />

the towers were built by GRI in Atlantis and Mainstream Asset<br />

Management South Africa will manage the operations.<br />

According to the Department of Energy, the REIPPPP by<br />

2016 had created more than 30 000 jobs and benefited local<br />

community development to the tune of R256-million. Figures<br />

released by the South African Wind Energy Association (SAWEA)<br />

showed shareholding for local communities reached an estimated<br />

net income of R29.2-billion over the lifespan of the projects.<br />

Some 14 000 new jobs are expected to be created, mostly in rural<br />

areas, and more than R30-billion has already been spent on Black<br />

Economic Empowerment (BEE) in the construction phase.<br />

The support of two of South Africa’s biggest institutional<br />

investors, the Industrial Development Corporation (IDC) and the<br />

Public Investment Corporation (PIC), has been crucial in getting<br />

the renewable energy sector off the ground. They have also helped<br />

communities fund their participation in community trusts. Typically,<br />

a community trust is established to represent the interest of the<br />

local community.<br />

SECTOR INSIGHT<br />

Paardekraal East Wind Farm<br />

has started commercial<br />

operations.<br />

Investment by black<br />

people into the renewable<br />

energy programme is not<br />

limited to community trusts.<br />

Pele Green Energy is engaged<br />

with a photovoltaic plant at<br />

Touwsrivier in the <strong>Western</strong><br />

<strong>Cape</strong> as a shareholder and<br />

as a provider of construction<br />

management services. Once the<br />

facility starts generating power,<br />

Pele will operate and maintain<br />

the plant.<br />

In his 2020 State of the<br />

Province Address, Premier Alan<br />

Winde said, “The wind and solar<br />

resources in South Africa are<br />

so plentiful that using only 1%<br />

of our land, renewable energy<br />

could produce over six times<br />

the amount of energy that<br />

Eskom produces today.”<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government has a four-point<br />

energy plan:<br />

1. Help municipalities to procure<br />

energy from IPPs.<br />

2. Increase small-scale embedded<br />

generation like solar<br />

PV to decrease reliance on the<br />

national grid.<br />

3. Increase the greening of<br />

government buildings, 17 of<br />

which already have solar systems.<br />

4. Increase efforts to import<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

34


OVERVIEW<br />

Liquefied Natural Gas through Saldanha<br />

Bay and enable Eskom’s Ankerlig plant<br />

to operate on LNG rather than diesel.<br />

Recent gas finds by Total off the<br />

coast of Mossel Bay will accelerate the<br />

drive to switch to gas.<br />

The idea of home-owners being<br />

able to sell surplus electricity from<br />

rooftop solar systems was previously<br />

restricted to the <strong>Cape</strong> metropolitan<br />

area. The application of the provincial<br />

government’s Energy Security Game<br />

Changer has expanded this provision<br />

(via bylaws) to the whole province.<br />

There are 23 municipalities where<br />

rooftop solar PVs are connected to<br />

the electricity grid, 13 of which have<br />

nationally approved tariffs in place.<br />

Users in the 13 areas can be paid for the<br />

power they supply. The uptake of solar<br />

has risen from 20MW in 2015 to more<br />

than 112MW in 2019.<br />

The City of <strong>Cape</strong> Town has signed<br />

an agreement with the United States<br />

Agency for International Development<br />

and the Southern Africa Energy<br />

Programme to look for ways to make solar PV more accessible. High<br />

costs of installation often preclude residents from taking the solar PV<br />

option for their homes.<br />

The <strong>Western</strong> <strong>Cape</strong> is positioning itself as a green business hub<br />

and is working to find energy alternatives for households and<br />

businesses. Greater <strong>Cape</strong> Town is home to 70% of South Africa’s<br />

manufacturers of renewable components.<br />

Green <strong>Cape</strong> states that nearly R700-million in green technology<br />

investments has already been attracted to the Atlantis Special<br />

Economic Zone, creating 300 jobs. A further R3.7-billion is<br />

anticipated by 2030, which will add more than 3 000 new jobs.<br />

Spanish wind tower manufacturer Gestamp Renewable Industries<br />

and tower internals supplier Resolux (from Denmark) are early<br />

investors in the zone.<br />

Perdekraal East Wind Farm<br />

Green <strong>Cape</strong> is an agency that<br />

does research and runs projects<br />

in areas such as energy efficiency,<br />

waste, water and sustainable<br />

agriculture. It is a joint initiative of<br />

the City of <strong>Cape</strong> Town, Wesgro and<br />

the Provincial Government of the<br />

<strong>Western</strong> <strong>Cape</strong>. The <strong>Western</strong> <strong>Cape</strong><br />

Industrial Symbiosis Programme<br />

(WISP), which encouraged<br />

manufacturers to use the waste<br />

product of other businesses, won<br />

international recognition in 2018<br />

at the Circular Awards at Davos. ■<br />

ONLINE RESOURCES<br />

Atlantis Special Economic Zone: www.investcapetown.com<br />

Green <strong>Cape</strong>: www.greencape.co.za<br />

South African Renewable Energy Technology Centre: www.saretec.org.za<br />

South African Wind Energy Association: www.sawea.org.za<br />

35<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


OVERVIEW<br />

Manufacturing<br />

TFG plans to double manufacturing output.<br />

TFG, whose South African brands include TotalSports,<br />

Markhams and Foschini, has a five-year plan to double<br />

its manufacturing capacity.<br />

Having purchased Prestige Clothing Maitland and Prestige<br />

Clothing Caledon in 2012 and spent R75-million on expanding the<br />

factory in Caledon in 2017, TFG now plans to significantly increase<br />

the percentage of locally-made clothing items from the current level<br />

of 35% to 55%. This expansion should lead to more jobs within the<br />

group, which expanded in 2020 with the purchase of Jet from Edcon.<br />

The Foschini Group is one of several South African retailers which<br />

have their head offices in <strong>Cape</strong> Town. Others include Woolworths,<br />

Truworths and <strong>Cape</strong> Union Mart.<br />

The Manufacturing and Competitiveness Enhancement<br />

Programme (MCEP) of the Department of Trade, Industry and<br />

Competition (the dtic) has disbursed grants which have resulted in<br />

230 000 jobs being sustained. Because of the Clothing and Textile<br />

Competitiveness Programme, that sector currently now employs<br />

around 95 000 workers, contributing 8% to manufacturing GDP and<br />

2.9% to overall GDP. In the leather sector 22 new factories have been<br />

opened, supporting 2 200 jobs.<br />

In the <strong>Western</strong> <strong>Cape</strong>, this revival is reflected in member<br />

companies of the <strong>Cape</strong> Clothing and Textile Cluster hiring 35% more<br />

staff in four years. About 23 600 people are employed in the province<br />

and exports from the <strong>Cape</strong> amounted in 2017 to R4.4-billion with<br />

sales up by 34% above inflation.<br />

The K-Way brand of <strong>Cape</strong> Union Market has successfully<br />

weathered several storms. The Ottery factory, which houses more<br />

than 250 employees, has produced more than 311 000 K-Way Felixx<br />

Softshell Jackets since 2012.<br />

The textiles sector makes up about 7% of manufacturing<br />

economic activity, about the same as furniture. A diverse<br />

manufacturing sector contributes 15% to the <strong>Western</strong> <strong>Cape</strong>’s GDP<br />

with the two biggest contributors within that being fuel, petroleum,<br />

chemicals and rubber products (26%) and food, beverages and<br />

tobacco (25%). Wood and wood products (11%) and metal products,<br />

machinery and household appliances (10%) are the next two biggest<br />

subsectors (Wesgro).<br />

The Atlantis Special Economic Zone, which is specialising in<br />

green tech, has already attracted nearly R700-million in privatesector<br />

investment. Goals for the green sector include the creation<br />

of 1 200 direct jobs in a 20-year period. About 70% of South Africa’s<br />

SECTOR INSIGHT<br />

The closure of the Saldanha<br />

Bay steel mill is a blow to the<br />

sector.<br />

manufacturing in renewables is<br />

happening in the <strong>Western</strong> <strong>Cape</strong>.<br />

The decision in 2019<br />

of ArcelorMittal to close its<br />

Saldanha Bay steel mill is a big<br />

blow to the manufacturing<br />

capacity of the province. With<br />

iron ore delivered from the<br />

Northern <strong>Cape</strong> Province, the<br />

mill was producing as much as<br />

1.2-million tons of steel per year.<br />

About 900 workers have lost<br />

their jobs.<br />

Invest <strong>Cape</strong> Town reports<br />

that the city’s boatbuilding<br />

industry is the second-largest<br />

producer of recreational<br />

catamarans in the world, after<br />

France. The city’s companies<br />

export 80% of the products<br />

that they produce and attract<br />

a positive trade balance of<br />

approximately $73-million<br />

annually. Boatbuilding exports<br />

have grown by 20.5% annually<br />

year-on-year since 2014 in <strong>Cape</strong><br />

Town (Quantec, 2019).<br />

Robertson & Caine’s facility<br />

in Woodstock produces<br />

three boats a week for the<br />

international market. With a<br />

staff complement of 1 350,<br />

the company is a leader in<br />

power catamarans and sailing<br />

catamarans.<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

36


OVERVIEW<br />

Prestige Clothing factory. Image: TFG<br />

Nautic Africa makes larger vessels, including patrol, defence, oil<br />

and gas platform and commercial vessels. Damen Shipyards <strong>Cape</strong><br />

Town delivers vessels to public entities such as the Robben Island<br />

Museum and the South African Navy and private companies such<br />

as Smit Amandla Marine and De Beers Marine. The Whisper Boat<br />

Building Academy is located at the False Bay TVET College.<br />

A new investor has breathed new life into the manufacturing<br />

business of Hayden Cobra. The maker of replica cars is operating<br />

out of Montague Gardens and building for the local and export<br />

markets, primarily the US and the Middle East. Three models are<br />

manufactured: the Classic 427, the Evo and a Cobra with an electric<br />

drive which promises “instantaneous torque”.<br />

Food and beverages<br />

The combination of excellent and plentiful agricultural produce,<br />

good manufacturing capacity and a skilled workforce give<br />

the <strong>Western</strong> <strong>Cape</strong> a competitive advantage in the food and<br />

beverages sector.<br />

The wheat-growing areas of the Swartland hosts several mills such<br />

as Sasko’s facility in Malmesbury. Bokomo has several manufacturing<br />

facilities in Atlantis, Epping, Ndabeni near Pinelands, Worcester and<br />

Bonnievale. Safari Vinegar is based in the Strand and there are two<br />

Heinz manufacturing plants at Wellington and Atlantis. Lamberts Bay<br />

Food sources potatoes from all over South Africa, but its proximity to<br />

ONLINE RESOURCES<br />

<strong>Cape</strong> Clothing and Textile Cluster: www.capeclothingcluster.org.za<br />

Invest <strong>Cape</strong> Town: www.investcapetown.com<br />

Wesgro: www.wesgro.co.za<br />

Whisper Boat Building Academy: www.falsebaycollege.co.za<br />

the potato-growing Sandveld<br />

region is helpful.<br />

Two of the biggest<br />

chicken-processing facilities<br />

are located on the N7<br />

highway (Tydstroom) and on<br />

the N1 (Rainbow Chickens).<br />

The <strong>Western</strong> <strong>Cape</strong> has about<br />

16 000 commercial pork sows<br />

and produces a quarter of<br />

South Africa’s milk.<br />

Willards has a factory in<br />

Goodwood, in nearby Parow<br />

there is a Simba factory and local<br />

chip and snack manufacturer<br />

Messaris, which has been in<br />

operation since 1898, has a<br />

facility in Elsies River. Nestlé<br />

produces condensed milk and<br />

milk powder in Mossel Bay and<br />

canned pet food in <strong>Cape</strong> Town.<br />

Tiger Brands makes mayonnaise<br />

in Bellville and has also invested<br />

heavily in its prepared meals<br />

plant in <strong>Cape</strong> Town.<br />

SABMiller’s Newlands<br />

brewery is one of the busiest in<br />

the country. Coca-Cola bottler<br />

and distributor Peninsula<br />

Beverage has three plants – at<br />

Parow, Athlone and Vredendal<br />

on the West Coast, and<br />

employs 1 300 people. ■<br />

37<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


OVERVIEW<br />

Construction and property<br />

The eastern edge of the <strong>Cape</strong> Town CBD is to be transformed.<br />

SECTOR INSIGHT<br />

Building at Conradie Park<br />

has begun.<br />

Plans for a large development on the corners of Heerengracht<br />

Road and Christiaan Barnard Street are going ahead, despite<br />

the general economic slowdown due to Covid-19. The mixeduse<br />

Harbour Arch project stands on the eastern entrance to<br />

<strong>Cape</strong> Town’s CBD on a 5.8ha site which has been underutilised and<br />

unattractive for decades.<br />

The Amdec Group’s R15-billion development means to change<br />

that with housing, hotels, offices and restaurants which will densify the<br />

city and provide the CBD with an eastern gateway. The development<br />

could spark further work on the Culemborg site, which has often<br />

been mentioned in plans, as an Olympic and soccer World Cup site,<br />

for example.<br />

The Provincial Government of the <strong>Western</strong> <strong>Cape</strong>’s “Better Living<br />

Model” aims to deliver 3 602 residential units in an affordable, mixeduse<br />

and residential-led development on the site of the old Conradie<br />

Hospital on the edge of Pinelands. The integrated, mixed-income<br />

housing development (pictured) aims to reverse the spatial planning<br />

that was put in place under apartheid. With the state putting in the<br />

bulk infrastructure, costs for developers are significantly reduced. The<br />

quid pro quo is that the developer must set aside a certain number of<br />

housing units (49%) to grant-funded housing.<br />

The Belhar CBD is the site of 4 188 assorted residential units,<br />

including student accommodation, social housing units and<br />

ONLINE RESOURCES<br />

Artist’s impression, Conradie Park. Image: Concor<br />

<strong>Cape</strong> Town Transport and Urban Development Authority: www.tda.gov.za<br />

Construction Industry Development Board: www.cidb.org.za<br />

SA Institute of Architects: www.saia.org.za<br />

military veterans’ units. Between<br />

June and December 2019,<br />

the provincial government<br />

handed over 1 144 title deeds to<br />

beneficiaries in the province.<br />

An article in Visi in 2020<br />

heralded the arrival of Art Deco<br />

accommodation in central <strong>Cape</strong><br />

Town at the opposite end of the<br />

affordability scale. Described as<br />

a “striking new vessel” that has<br />

“dropped anchor among the<br />

venerable advocates’ chambers<br />

that line <strong>Cape</strong> Town’s Keerom<br />

Street”, Tuynhus houses 43<br />

small apartments and four<br />

mini-penthouse suites. It is<br />

designed by Robert Silke, of<br />

Robert Silke & Partners.<br />

FNB, which publishes a regular<br />

property barometer, has done an<br />

in-depth analysis of previous crises<br />

to understand the post-Covid<br />

property market. According to<br />

John Loos, a property strategist at<br />

FNB Commercial Property Finance,<br />

the most vulnerable sector is<br />

likely to be Retail Property. Smaller<br />

neighbourhood shopping centres,<br />

with more essential items and greater<br />

convenience, will be less vulnerable.<br />

The lockdown accelerated<br />

the trend for people to work from<br />

home, and so the Office Property<br />

sector will come under pressure.<br />

Many companies will be reducing<br />

office space, but this is merely a<br />

speeding up of an existing trend. ■<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

38


Tourism and events<br />

OVERVIEW<br />

Operators are hoping the Lions will roar.<br />

A<br />

shade under one-million passengers passed through<br />

<strong>Cape</strong> Town International Airport in 2019, a 2% increase<br />

over the previous year, which had grown by 0.8% from<br />

the year before.<br />

In 2019, <strong>Cape</strong> Town Tourism projected that the value to the<br />

<strong>Western</strong> <strong>Cape</strong> of the cruise-ship industry between 2017 and 2027<br />

would be about R220-billion. And then Covid-19 hit.<br />

Major investments have been made in the Cruise Ship<br />

Terminal, near the <strong>Cape</strong> Town International Convention Centre<br />

(CTICC), and the <strong>Cape</strong> Town Air Access programme. Air Access<br />

created more than 750 000 new inbound seats between its<br />

inception in 2015 and 2020, adding something like R6-billion<br />

to the provincial economy. In 2019/20 the CTICC secured 52<br />

conferences with an estimated economic impact of R2.3-billion.<br />

Unfortunately, the conferences and events sector is likely to<br />

be hit as badly as the cruise-ship industry.<br />

Many tourism operators in the <strong>Western</strong> <strong>Cape</strong> are pinning their<br />

hopes on the incoming rugby tour in the winter of <strong>2021</strong> by the<br />

British and Irish Lions, if Covid-19 allows. The South African Rugby<br />

Union expects 37 000 fans to follow the team from Britain, more<br />

than 13 000 jobs to be created and a tax benefit to South Africa<br />

to accrue of about R450-million.<br />

Following the major drought experienced by the <strong>Western</strong><br />

<strong>Cape</strong>, the Westin <strong>Cape</strong> Town has taken steps to reduce its<br />

dependence on the municipality for water. The hotel’s position<br />

on reclaimed land in the CTICC precinct of the Foreshore means<br />

that about 1.2-million litres of seawater have to be taken out of<br />

the basement every day. This water is converted into 441 000<br />

litres of clean water by reverse osmosis which saves more than<br />

100-million litres of municipal water annually. The Westin has<br />

also created an organic roof garden, from which it supplies its<br />

restaurants with vegetables.<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial Government wants to promote<br />

education in the arts. Based on research which found that 6%<br />

of employment in South Africa is in the cultural sector, the<br />

<strong>Western</strong> <strong>Cape</strong> will expand the traditional STEM emphasis to<br />

ONLINE RESOURCES<br />

<strong>Cape</strong> Nature: www.capenature.co.za<br />

<strong>Cape</strong> Town Tourism: www.capetown.travel<br />

Garden Route and Klein Karoo: www.visitgardenrouteandkleinkaroo.com<br />

George Tourism: www.georgetourism.org.za<br />

Plettenberg Bay: www.plett-tourism.co.za<br />

SECTOR INSIGHT<br />

Income from air travellers<br />

and cruise ships<br />

disappeared in 2020.<br />

The Westin <strong>Cape</strong> Town’s organic<br />

rooftop garden.<br />

include two additional A’s:<br />

Arts and Agriculture. There<br />

are 60 000 people employed<br />

in the culture sector in the<br />

province.<br />

The opening of the R500-<br />

million Zeitz Museum of<br />

Contemporary Art in the Victoria<br />

& Alfred Waterfront in <strong>Cape</strong><br />

Town has made a big impact.<br />

With a footfall of 24-million<br />

visitors going through the<br />

Waterfront every year, the Zeitz<br />

is well located to attract good<br />

crowds. The conversion of the<br />

old grain silos, which created<br />

6 000m² of gallery space, was<br />

paid for by the owners of<br />

the Waterfront, Growthpoint<br />

Properties and the Public<br />

Investment Corporation. ■<br />

39<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


OVERVIEW<br />

Education and training<br />

Tertiary campuses in Mitchells Plain and Khayelitsha are growing.<br />

A<br />

R386-million campus is to be built in Mitchells Plain<br />

to serve that suburb, Strandfontein and surrounding<br />

areas. False Bay TVET College has been offering<br />

classes in part of a primary school for some time but<br />

the transfer of land by the City of <strong>Cape</strong> Town in June 2020<br />

allows the college to start the design phase for the new<br />

campus in the heart of Mitchells Plain. It will eventually cater<br />

for more than 5 000 students.<br />

The new Mitchells Plain Campus will complement the College’s<br />

existing campus presence in Khayelitsha, Fish Hoek, Westlake<br />

and Muizenberg. Programmes will be offered in tourism, creative<br />

media, business BPO, wholesale and retail and the services sectors.<br />

Bridging classes will also be presented for young people who do<br />

not meet entry requirements.<br />

At the same time, work is underway on the upgrade and<br />

expansion of the Swartklip Campus, pictured, which lies on the<br />

border of Mitchells Plain and Khayelitsha. Funding for the new<br />

campus, which will have an engineering focus, came from the<br />

National Skills Fund. The plan is to accommodate 3 000 students<br />

which would contribute to the National Development Plan’s goal<br />

of producing 30 000 skilled artisans per year. The College has a<br />

lease agreement with Airports Company South Africa to use the<br />

existing buildings at the old Denel Site.<br />

Building has also been happening in the school sector: three<br />

new schools were built in 2019/20 and two replacement schools<br />

were opened in Crestway and Phillipi. The Provincial Government’s<br />

Department of Transport and Public Works started work on 76 new<br />

Grade R and Expansion classrooms at 22 schools, catering for about<br />

2 800 pupils. A further 197 mobile classrooms were delivered.<br />

The province’s I-CAN centres allow for public access to digital<br />

skills programmes, WiFi and business services. The centres are<br />

divided into zones (including Create, Study and Learn) and printing,<br />

graphic design and laminating services are available.<br />

Online learning is one of the world’s fastest-growing sectors<br />

and the investment of $3-million by Construct in a new <strong>Cape</strong> Town<br />

office is evidence that the trend has come to the <strong>Western</strong> <strong>Cape</strong>. The<br />

Construct Learning Lab supports universities in Boston, Doha and<br />

Oxford as well as companies and government bodies. The company<br />

expects to increase its staff complement by 150 over three years.<br />

Two <strong>Western</strong> <strong>Cape</strong> research institutions have made large<br />

investments in research infrastructure. A Biomedical Research<br />

SECTOR INSIGHT<br />

A Centres of Specialisation<br />

Programme is targeting<br />

priority skills.<br />

Institute is being built by<br />

Stellenbosch University at<br />

a cost of R1-billion and the<br />

University of <strong>Cape</strong> Town plans<br />

to move its Neuroscience<br />

Institute, which it runs in<br />

partnership with Groote<br />

Schuur Hospital, into a new<br />

building. An innovation<br />

laboratory, clinical and training<br />

spaces and an innovation<br />

space where researchers can<br />

interact are part of the plans<br />

for the new facility.<br />

The University of <strong>Cape</strong><br />

Town has more than 21 500<br />

students, 720 permanent staff<br />

and 39 A-rated researchers<br />

(40% of South Africa’s total).<br />

Stellenbosch University is<br />

linked to Stellenbosch’s<br />

growing reputation as<br />

a technology hub. The<br />

University of the <strong>Western</strong><br />

<strong>Cape</strong> is home to several<br />

national research bodies.<br />

These institutions, plus<br />

the <strong>Cape</strong> Peninsula University<br />

of Technology, produce<br />

approximately 12 000 science,<br />

technology, engineering and<br />

mathematics graduates every<br />

year and host 11 000 students<br />

from other African countries.<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

40


OVERVIEW<br />

University education is<br />

available in George through the<br />

Nelson Mandela University (NMU):<br />

Saasveld is home to the School of<br />

Natural Resource Management<br />

and the York Street Campus<br />

delivers courses in business and<br />

social science, accounting and<br />

business management.<br />

SARETEC offers industryspecific<br />

training in a new<br />

economic sector. The South<br />

African Renewable Energy<br />

Technology Centre is managed by<br />

the <strong>Cape</strong> Peninsula University of<br />

Technology (Bellville campus) but<br />

it collaborates with several other<br />

institutions and private companies.<br />

Unisa, the country’s biggest distance learning institution, has a<br />

campus in <strong>Cape</strong> Town and a service centre in George.<br />

Airports Company SA (ACSA), the City of <strong>Cape</strong> Town and the<br />

False Bay TVET College in Westlake have combined to offer residents<br />

of Blikkiesdorp a chance to learn skills in brick-laying, house-building,<br />

scaffolding and health and education. ACSA is investing R5-million in<br />

the 12-month certification project and the Construction Education<br />

and Training Authority (CETA) will channel funds to False Bay College<br />

for training.<br />

Centres of Specialisation Programme<br />

A Centres of Specialisation Programme has been introduced by the<br />

Department of Higher Education and Training to tackle priority skills.<br />

The Swartklip campus mentioned above will focus on training<br />

riggers and mechanical fitters. With the oil and gas sector<br />

expected to grow rapidly in the near future, trained artisans can<br />

expect to find employment quickly. The College of <strong>Cape</strong> TVET is<br />

concentrating on plumbing and automotive motor mechanics.<br />

ONLINE RESOURCES<br />

Apprenticeship Game Changer: www.westerncape.gov.za<br />

Centres of Specialisation: www.dhet.gov.za<br />

SA Renewable Energy Technology Centre: www.saretec.org.za<br />

TVET colleges: www.tvetcolleges.co.za<br />

The College of <strong>Cape</strong><br />

Town has seven campuses<br />

from the city centre to<br />

Guguletu and Wynberg.<br />

A new welding academy<br />

in Thornton was opened<br />

with support from the<br />

merSETA (Manufacturing,<br />

Engineering and Related<br />

Services SETA). Northlink<br />

College is in the northern<br />

suburbs of <strong>Cape</strong> Town.<br />

Outside of the <strong>Cape</strong><br />

metropole, Boland College<br />

looks after Stellenbosch,<br />

Worcester, Paarl and<br />

Caledon, while the<br />

Southern <strong>Cape</strong> College<br />

covers a wide area, from<br />

George to Beaufort West.<br />

The West Coast College also<br />

has a big catchment area.<br />

Boland College participates<br />

in an Expanded Public<br />

Works Programme (EPWP)<br />

run by the South African<br />

Chefs’ Association. ■<br />

41<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


FOCUS<br />

New BPO Academy Launched<br />

by the College of<br />

<strong>Cape</strong> Town<br />

Offering courses that are in high demand by commerce and industry.<br />

The College of <strong>Cape</strong> Town’s Gardens<br />

Campus has launched Sub-Saharan<br />

Africa’s first <strong>Business</strong> Process Outsourcing<br />

(BPO) Academy. The suburb of Gardens is<br />

a hub for the <strong>Cape</strong> Town creative industry, with<br />

e.tv’s studios nearby.<br />

All of the eight campuses of the College<br />

of <strong>Cape</strong> Town are situated in the central area<br />

of the Peninsula and serve the greater <strong>Cape</strong><br />

Town area, including a large percentage<br />

of traditionally disadvantaged areas and<br />

townships. The Gardens Campus formally<br />

housed the Early Childhood Development<br />

(ECD) Department and a Day Care Centre<br />

which has now been relocated to the<br />

redeveloped Crawford Campus. The Gardens<br />

has been revamped and transformed into a<br />

BPO Academy and is well set to support the<br />

BPO sector with the skills it requires.<br />

The College of <strong>Cape</strong> Town has entered into an<br />

agreement with <strong>Business</strong> Process Enabling South<br />

Africa (BPeSA) to develop and operate the BPO<br />

Academy. At the launch of the Academy, <strong>Western</strong><br />

<strong>Cape</strong> Economic Opportunities MEC, David Maynier,<br />

reported that the BPO was one of only two sectors<br />

that created jobs in April and September, adding<br />

5 160 jobs to the economy in that time. Training<br />

people for sectors where they will gain employment<br />

goes to the heart of the mission of colleges.<br />

Background<br />

Four former technical colleges, Athlone College,<br />

<strong>Cape</strong> College, Sivuyile College and <strong>Western</strong> Province<br />

Technical College, were officially merged on 1 February<br />

2002 to become the College of <strong>Cape</strong> Town.<br />

The College of <strong>Cape</strong> Town for TVET is a public<br />

TVET College which falls under the auspices of the<br />

The BPO Academy was launched in November 2020.<br />

Department of Higher Education and Training. The<br />

College mandate is to provide inclusive quality<br />

Technical and Vocational Education and Training<br />

responsive to the labour market. All campuses<br />

are accessible by public transport. Although the<br />

majority of students are from the greater <strong>Cape</strong><br />

Town metropolitan region, students from other<br />

regions of South Africa, Namibia and other African<br />

countries and countries abroad are accepted.<br />

Courses offered lead to recognised, accredited<br />

qualifications that are in high demand by commerce<br />

and industry. The College offers an extensive range<br />

of programmes, including National Certificate<br />

Vocational (NCV) on Levels 2 to 4, NATED Report<br />

191 on N1 to N6, National N Diploma, Occupational<br />

Qualifications on Level 1 to 5, Short Skills and other<br />

Skills Programmes, Learnerships, Artisan Related<br />

Learning Programmes (ARLP) and Trade Testing. The<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

42


FOCUS<br />

College also offers Higher Education programmes in<br />

partnership with University of South Africa (UNISA),<br />

the <strong>Cape</strong> Peninsula University of Technology (CPUT)<br />

and the University of <strong>Cape</strong> Town (UCT).<br />

Delivery sites and facilities<br />

All campuses have well-equipped workshops,<br />

lecture rooms, computer rooms, studios for practical<br />

work and media centres.<br />

The eight campuses are:<br />

Athlone Campus: The campus has four fullyequipped<br />

Automotive and Skills workshops and is<br />

accredited in Automotive Motor Mechanics Training<br />

as well as Trade Testing. Athlone campus was<br />

awarded the Centre of Specialisation for Automotive<br />

Motor Mechanics in 2018.<br />

City Campus: Located in the heart of <strong>Cape</strong> Town,<br />

it is accessible to all amenities such as food chain<br />

stores, businesses, retail stores and public transport.<br />

The campus was formerly <strong>Cape</strong> College.<br />

Crawford Campus: Formerly known as Hewat<br />

Teachers Training College, it is one of the<br />

college’s biggest campuses. The campus offers<br />

<strong>Business</strong> Studies, Information Communication<br />

and Technology, Early Childhood Development<br />

Education and Training, Primary Health and<br />

Occupational Programmes. The campus also has<br />

partnerships with the University of South Africa<br />

(Bachelor Degree in Foundation Phase), the<br />

<strong>Cape</strong> Peninsula University of Technology (Level<br />

5 Higher Certificate in ICT Service Management)<br />

and the University of <strong>Cape</strong> Town (development<br />

and design of a Level 5 Higher Certificate in Early<br />

Childhood Development).<br />

Crawford Campus has a well-equipped<br />

daycare centre. Visitors from daycare centres<br />

are accommodated through short courses and<br />

workshops on best practice.<br />

When students enter the campus using the gate<br />

located next to the Trojan Horse Massacre Memorial<br />

Wall, they are constantly reminded of the youth<br />

whose lives were tragically lost in the apartheid era.<br />

Gardens Campus: The campus has a rich history<br />

with its building being more than 100 years old. Its<br />

age makes in a heritage site in the greater city bowl.<br />

Guguletu Campus: Situated in the Guguletu<br />

township 15km from central <strong>Cape</strong> Town, its name is<br />

A Welding Academy has been established on the Thornton<br />

Campus of the College of <strong>Cape</strong> Town.<br />

derived from the contraction of “Igugu lethu”, which<br />

is IsiXhosa for “Our Pride”. The Guguletu Campus was<br />

established to service the broader Guguletu area<br />

and the <strong>Cape</strong> Flats and offers <strong>Business</strong> Studies and<br />

Electrical Engineering.<br />

Pinelands Campus: The College’s hub for<br />

Electrical Engineering studies has 22 workshops<br />

and laboratories for a growing number of students.<br />

The campus is also an accredited Refrigeration and<br />

Electrical Trade Test Centre.<br />

Thornton Campus: Engineering is the focus at<br />

Thornton, which offers the following fields: Building<br />

and Civil Engineering and Mechanical Engineering.<br />

The campus has seven fully-equipped Building<br />

and Civil Engineering and Skills workshops and a<br />

Welding Academy offering international welding<br />

qualifications. Thornton Campus was also awarded<br />

the Centre of Specialisation for Plumbing.<br />

Wynberg Campus: Wynberg is an Occupational<br />

Training campus servicing the broader communities<br />

in and around the Wynberg as well as Mitchells Plain,<br />

Mannenberg, Hanover Park, Strandfontein, Bishop<br />

Lavis, the southern and northern suburbs as well as<br />

areas outside <strong>Cape</strong> Town’s borders.<br />

The Central Office is located in Salt River and<br />

hosts Finances, Human Resources, Corporate<br />

Communication and Marketing, Physical Resources,<br />

OHS, Quality Management, Management<br />

Information Systems, and the Linkages and<br />

Partnership Units.<br />

The College of <strong>Cape</strong> Town also has three<br />

residences, namely City Residence, Crawford<br />

Residence and Thornton Residence. The City<br />

Residence is for ladies only. ■<br />

43<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


OVERVIEW<br />

Banking and financial services<br />

The <strong>Western</strong> <strong>Cape</strong> has the digital edge.<br />

The potential for disruption in the banking and financial<br />

services sector is almost limitless. The <strong>Western</strong> <strong>Cape</strong>’s<br />

evolution into a technology hub helps to explain<br />

why banks, insurance providers, asset managers and<br />

venture capitalists are increasingly choosing to make their<br />

headquarters there.<br />

There are more than 40 000 jobs in the technology sector (more<br />

than double the total of Nairobi and Lagos combined, Wesgro) and<br />

formal employment in the financial sector exceeds 50 000.<br />

Together with business services, the financial sector comprises<br />

the biggest contributor to the provincial economy. According to<br />

Wesgro, 75% of the venture capital deals that happen in South<br />

Africa originate in the <strong>Western</strong> <strong>Cape</strong>. Most financial firms based<br />

in <strong>Cape</strong> Town have a long history, some going back as far as 1845<br />

when Old Mutual started.<br />

One of the most successful disruptors in recent times has been<br />

Stellenbosch-based Capitec Bank, which is steadily increasing its<br />

customer base by providing banking for business and individual<br />

customers in what it describes as a simple manner. In May 2020,<br />

investment holding company PSG announced that it would<br />

reduce its holding in Capitec Bank from 32% to 4%, earning about<br />

R4-billion by selling those shares.<br />

Another banking newcomer, Tyme, reported in October 2020<br />

that it had 2.4-million customers, up from 1.4-million at the end of<br />

March. A 400% increase in the use of services such as airtime and<br />

electricity purchases was also noted.<br />

Discovery Bank officially launched in March 2019 and is<br />

experiencing rapid growth with deposits of R3.7-billion. Discovery<br />

Bank is applying the behavioural model it uses in its health<br />

business to reward good financial behaviour.<br />

The African Institute of Financial Markets and Risk<br />

Management (AIFMRM) aims is to meet the demands for skills<br />

by developing local talent. It is supported by the <strong>Western</strong> <strong>Cape</strong><br />

Provincial Government, the University of <strong>Cape</strong> Town, Barclays<br />

Africa Group, FirstRand and Liberty.<br />

ONLINE RESOURCES<br />

Banking Association South Africa: www.banking.org.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

Insurance Institute of South Africa: www.iisa.co.za<br />

South African Institute of Chartered Accountants: www.saica.co.za<br />

SECTOR INSIGHT<br />

PSG is reducing its stake in<br />

Capitec.<br />

The head offices of financial<br />

firms are dotted all over <strong>Cape</strong><br />

Town. These include Old<br />

Mutual and Foord (Pinelands),<br />

Futuregrowth and Coronation<br />

(Newlands), Prudential<br />

(Claremont), Sygnia (Green<br />

Point), Sanlam (Bellville) and<br />

Allan Gray (Waterfront). PSG has<br />

its headquarters in Stellenbosch<br />

and is well represented in rural<br />

towns. Insurers such as Santam<br />

and Metropolitan Life are based<br />

in Bellville. A newcomer to the<br />

<strong>Cape</strong> financial services sector<br />

is Nomura, a Japanese financial<br />

holding company.<br />

The green bond issued by<br />

the City of <strong>Cape</strong> Town is a sign of<br />

the climate change times. South<br />

Africa’s third-ever green bond<br />

attracted bids over R4-billion on<br />

an initial offering on projects worth<br />

R1-billion. The lead arranger for the<br />

bond was Rand Merchant Bank. ■<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

44


Development finance and<br />

SMME support<br />

Entrepreneurs are saving the environment.<br />

OVERVIEW<br />

Small businesses in the Breede River and Riviersonderend<br />

catchment areas are making money from clearing<br />

invasive species. Avocado Vision has developed a<br />

“Green <strong>Business</strong> Value Chain” in partnership with<br />

the Department of Environment, Forestry and Fisheries,<br />

environmental organisations and corporates.<br />

By turning the unwanted species into sought-after products, a<br />

sustainable business is created while simultaneously replenishing<br />

water-table levels and restoring grasslands. About 200 species<br />

are regarded as invasive and work is being done with 120 SMMEs<br />

across South Africa to identify opportunities.<br />

The <strong>Western</strong> <strong>Cape</strong> Government runs a Premier’s Advancement<br />

of Youth Internship Programme which in 2019 had 1 118<br />

participants. There are several Youth Cafes in different parts of the<br />

province, where unemployed young people can get advice and<br />

training and have access to computers and WiFi.<br />

Many startups find the cost of finding and hiring premises<br />

prohibitive. Flexible working spaces such as those offered by<br />

Workshop17 offer a solution. The company has sites in Paarl, the<br />

Gardens and at the Watershed at the V&A Waterfront.<br />

The Watershed itself is a popular venue for designers and<br />

crafters to display their wares. More than 90% of stock sold out<br />

of the Watershed is made locally and some design companies,<br />

such as leather product maker Wolf and Maiden, have moved into<br />

more exclusive retail space elsewhere in the Waterfront. A study<br />

has shown that revenue earned by small enterprises at the V&A<br />

Waterfront in 2018 was R329-million, up from R78-million in 2007.<br />

Two of the <strong>Western</strong> <strong>Cape</strong>’s universities, Stellenbosch and<br />

<strong>Cape</strong> Town, are the first collaborators with the University<br />

Technology Fund which aims to commercialise innovations<br />

and inventions coming out of tertiary institutions. The UTF will<br />

have considerable financial clout as it is a part of the South<br />

African SME Fund, an offshoot of the CEO Initiative which<br />

ONLINE RESOURCES<br />

SA SME Fund: sasmefund.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

Small Enterprise Finance Agency: www.sefa.org.za<br />

SECTOR INSIGHT<br />

Workshop17 has three<br />

flexible working spaces in<br />

the <strong>Western</strong> <strong>Cape</strong>.<br />

brought together 50 major<br />

corporations, the Public<br />

Investment Corporation, the<br />

Unemployment Insurance<br />

Fund and the Compensation<br />

Commission.<br />

Among the businesses<br />

receiving support from the SA<br />

SME Fund are Masisizane which<br />

helps black entrepreneurs buy<br />

petrol stations and Hyrax, a<br />

company which emerged from<br />

research done at the University<br />

of the <strong>Western</strong> <strong>Cape</strong> into which<br />

HIV-positive people were<br />

resistant to certain drugs.<br />

The National Department<br />

of Small <strong>Business</strong> Development<br />

(DSBD) has several programmes<br />

to assist SMMEs and cooperatives.<br />

The Small Enterprise<br />

Development Agency is an<br />

agency of the DSBD and<br />

gives non-financial support<br />

to entrepreneurs through<br />

training, assistance with filling in<br />

forms, marketing and creating<br />

business plans.<br />

Seda has established a Rapid<br />

Incubator in partnership with<br />

the Centre for Entrepreneurship<br />

(CFE) at False Bay TVET College,<br />

Westlake Campus.■<br />

45<br />

WESTERN CAPE BUSINESS <strong>2021</strong>


OVERVIEW<br />

<strong>Business</strong> Process<br />

Outsourcing<br />

South Africa was “Offshoring Destination of the Year” in 2018.<br />

Significantly lower costs than European competitors and<br />

growth rates in the <strong>Business</strong> Process Outsourcing (BPO)<br />

sector that outstrip the global rate make the <strong>Western</strong><br />

<strong>Cape</strong> an extremely competitive destination.<br />

According to the Everest Group Study (2018), <strong>Cape</strong> Town’s<br />

costs for contact centre work are between 20% and 30% lower<br />

than the costs in Eastern and Central Europe. In the same year,<br />

6 172 new jobs were created in the province as a result of an<br />

11% growth rate in the sector. South Africa’s BPO industry is<br />

growing twice as fast as the world’s and three times faster<br />

than India and the Philippines (Invest <strong>Cape</strong> Town).<br />

BPO involves any internal businesses that a company chooses<br />

to outsource to a specialist in that field, for example accounting or<br />

customer service centres. UK shop Asda and online retailer Amazon<br />

have large customer service centres in <strong>Cape</strong> Town. Other big brands<br />

include British Gas, IBM, KLM, Lufthansa, Mastercard and Microsoft.<br />

Global and local BPO investors with operations in <strong>Cape</strong> Town<br />

include TutorABC, CSC, Collinsons Group, Bloomberg, Shell,<br />

AskOsca, JTC Group, Wonga, SimplyTalk, Ambition 24 Hour Group<br />

and Buongiorno.<br />

Inbound customer service (55%), inbound sales (15%) and debt<br />

collection (13%) comprise the biggest subsectors of the BPO sector<br />

in the <strong>Cape</strong> (Wesgro).<br />

The fact that greater <strong>Cape</strong> Town is home to three universities,<br />

a university of technology and two technical colleges is a major<br />

advantage in attracting companies with sophisticated operations. Other<br />

factors in favour of the <strong>Cape</strong> Town area and surrounds are the relatively<br />

neutral accents, good infrastructure (financial and telecommunications)<br />

and the time zone being the same or close to Europe’s.<br />

Sixty-three percent of the offshore market is in the <strong>Western</strong><br />

<strong>Cape</strong> where the provincial government has identified BPO as<br />

ONLINE RESOURCES<br />

<strong>Business</strong> Process enabling South Africa (BPeSA): www.bpesa.org.za<br />

Contact Centre Management Group: www.ccmg.org.za<br />

National Department of Trade, Industry and Competition:<br />

www.dtic.gov.za<br />

SECTOR INSIGHT<br />

Growth of 11% created 6 172<br />

new jobs in the <strong>Western</strong> <strong>Cape</strong>.<br />

one of the six key sectors that<br />

can create jobs quickly. The City<br />

of <strong>Cape</strong> Town, the provincial<br />

Department of Economic<br />

Development, Agriculture and<br />

Tourism (DEDAT) and IT service<br />

management company EOH<br />

jointly sponsor the training<br />

and 12-month learnerships of<br />

175 unemployed work-seekers<br />

in BPO. The municipality also<br />

trains 20 potential team leaders<br />

to build management skills<br />

within the sector.<br />

The Department of Trade,<br />

Industry and Competition<br />

(dtic) offers incentives to BPO<br />

investors. A base incentive<br />

is calculated on projected<br />

offshore jobs to be created and<br />

is awarded on actual offshore<br />

jobs created. The incentive has<br />

a two-tier structure for noncomplex<br />

and complex jobs and<br />

is paid over a five-year period.<br />

A war room to unblock red<br />

tape in important job-creating<br />

sectors such as BPO has been<br />

set up by the <strong>Western</strong> <strong>Cape</strong><br />

Provincial Government with<br />

financial support from Harvard<br />

University. ■<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

46


Department of Social Development<br />

MEC: Ms Sharna Fernandez<br />

Union House, 14 Queen Victoria Street, <strong>Cape</strong> Town 8001<br />

Tel:<br />

<strong>Western</strong><br />

+27 21 483 5045 | Fax: +27 21 483 4783<br />

Web: www.westerncape.gov.za/dept/<br />

social-development Provincial Government<br />

8th Floor, 9 Dorp Street, <strong>Cape</strong> Town 8000<br />

Office of the Premier<br />

Premier: Mr Alan Winde<br />

Provincial Legislature Building,<br />

1st Floor, 7 Wale Street, <strong>Cape</strong> Town 8000<br />

Tel: 0860 142 142<br />

Email: service@westerncape.gov.za<br />

Tel: +27 21 483 4813<br />

Fax: +27 21 483 5068<br />

Web: www.westerncape.gov.za/dept/tpw<br />

Provincial Treasury<br />

MEC: Mr David Maynier<br />

Department of Environmental Affairs<br />

and Development Planning<br />

MEC: Mr Anton Bredell<br />

8th Floor, 1 Dorp Street, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 483 4091<br />

LISTING<br />

LISTINGS<br />

3rd Floor, 7 Wale Street, <strong>Cape</strong> Town 8000<br />

Department An overview of of Transport the <strong>Western</strong> and <strong>Cape</strong>’s Public Works provincial government departments.<br />

Tel: +27 21 483 4237 | Fax: +27 21 483 3855<br />

MEC: www.westerncape.gov.za<br />

Mr Bonginkosi Madikazela<br />

Web: www.westerncape.gov.za/dept/treasury<br />

<strong>Western</strong> <strong>Cape</strong> Local Government<br />

A guide to the metropolitan, district and local municipalities Department of in Health the <strong>Western</strong> <strong>Cape</strong>.<br />

Department of Agriculture<br />

MEC: Dr Nomafrench Mbombo<br />

MEC: Dr Ivan Meyer<br />

21st Floor, 4 Dorp Street, <strong>Cape</strong> Town 8000<br />

CITY Admin OF Building, CAPE Muldersvlei TOWN Road,<br />

Witzenberg Tel: +27 21 483 Local 3245/5417 Municipality<br />

METROPOLITAN Elsenburg 7607 MUNICIPALITY<br />

Tel: +27 23 316 1854 | Fax: +27 23 316 1877<br />

Department of Human Settlements<br />

Address: Tel: +27 Civic 21 808 Centre, 5111 Podium Block, 6th Floor, 12 Hertzog Website: www.witzenberg.gov.za<br />

MEC: Mr Tertius Simmers<br />

Boulevard, <strong>Cape</strong> Town 8000<br />

Tel: Department +27 21 400 1111 of Community | +27 21 400 1313 Safety<br />

CENTRAL 27 Wale Street, KAROO <strong>Cape</strong> DISTRICT Town 8001 MUNICIPALITY<br />

Fax: MEC: 0860 Mr Albert 103 Fritz 090<br />

Address:<br />

Tel: +27 21<br />

63<br />

483<br />

Donkin<br />

6488<br />

Street, Beaufort West 6970<br />

Website: 35 Wale Street, www.capetown.gov.za<br />

<strong>Cape</strong> Town 8000<br />

Tel:<br />

Department<br />

+27 23 449 1000<br />

of Local<br />

| Fax:<br />

Government<br />

+27 23 415 1253<br />

Tel: +27 21 483 6949/8588<br />

Website: www.skdm.co.za<br />

CAPE WINELANDS DISTRICT MUNICIPALITY<br />

MEC: Mr Anton Bredell<br />

Address: Department 46 Alexander of Cultural Street, Affairs Stellenbosch and Sport 7599 Beaufort 8th Floor, Waldorf West Local Building, Municipality<br />

80 St George’s Mall,<br />

Tel:<br />

<strong>Cape</strong> Town 8001<br />

MEC: 086 Ms Anroux 126 5263 Marais | Fax: +27 21 888 5100<br />

Tel: +27 23 414 8149 | Fax: +27 23 414 8105<br />

Tel: +27 21 483 4049/4997<br />

Website: Protea House www.capewinelands.gov.za<br />

Building, 7th Floor,<br />

Website: www.beaufortwestmun.co.za<br />

Greenmarket Square, <strong>Cape</strong> Town 8000<br />

Breede<br />

Tel: +27 21<br />

Valley<br />

483 9503<br />

Local Municipality<br />

Laingsburg Local Municipality<br />

Department of Social Development<br />

Tel: +27 23 348 2600 | Fax: +27 21 883 8871<br />

Tel:<br />

MEC:<br />

+27<br />

Ms<br />

23<br />

Sharna<br />

551<br />

Fernandez<br />

1019 | Fax: +27 23 551 1019<br />

Website: Department www.bvm.gov.za<br />

of Economic Development Website: www.laingsburg.gov.za<br />

Union House, 14 Queen Victoria Street, <strong>Cape</strong> Town 8001<br />

and Tourism<br />

Drakenstein Local Municipality<br />

Prince Tel: +27 21 Albert 483 5045 Local Municipality<br />

MEC: MrDavid Maynier<br />

Tel: +27 21 807 4500 | Fax: +27 21 872 8054<br />

Tel:<br />

11th Floor, NBS Waldorf Building,<br />

Department +27 23 541 1320 of Transport | Fax: +27 and 23 541 Public 1321 Works<br />

Website:<br />

80 St George’s<br />

www.drakenstein.gov.za<br />

Mall, <strong>Cape</strong> Town 8001<br />

Website: MEC: Mr Bonginkosi www.pamun.com<br />

Madikazela<br />

Tel: +27 21 21 4835065<br />

9226<br />

Langeberg Local Municipality<br />

GARDEN<br />

8th Floor, 9<br />

ROUTE<br />

Dorp Street,<br />

DISTRICT<br />

<strong>Cape</strong> Town<br />

MUNICIPALITY<br />

8000<br />

Tel: +27 21 483 4813<br />

Tel:<br />

<strong>Western</strong><br />

+27 23<br />

<strong>Cape</strong><br />

615 8000<br />

Education<br />

| Fax: +27<br />

Department<br />

23 615 1563<br />

Address: 54 York Street, George 6530<br />

Website: www.langeberg.gov.za<br />

Tel:<br />

MEC: Ms Debbie Schäfer<br />

Provincial +27 44 803 Treasury 1300<br />

Fax: MEC: 086 Mr David 555 6303 Maynier<br />

Stellenbosch Grand Central Towers, Local Lower Municipality Parliament Street,<br />

Website:<br />

<strong>Cape</strong> Town 8001<br />

3rd Floor, www.gardenroute.co.za<br />

7 Wale Street, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 808 8111 | Fax: +27 21 808 8003<br />

Tel: +27 21 467 2000<br />

Tel: +27 21 483 4237<br />

Website: www.stellenbosch.gov.za<br />

47 WESTERN CAPE BUSINESS <strong>2021</strong><br />

115<br />

85 WESTERN<br />

WESTERN<br />

CAPE<br />

CAPE<br />

BUSINESS<br />

BUSINESS<br />

2020<br />

2019


INDEX<br />

INDEX<br />

Absa...................................................................................................................................................................................IFC<br />

Africa Biomass Company (ABC).....................................................................................................................5, 10<br />

Airlink............................................................................................................................................................................. OBC<br />

<strong>Cape</strong> Chamber of Commerce & Industry......................................................................................... 2-3, IBC<br />

College of <strong>Cape</strong> Town............................................................................................................................... 11, 42-43<br />

Nedbank.................................................................................................................................................................... 18-23<br />

Petroleum Agency South Africa................................................................................................................. 32-33<br />

Vinpro.................................................................................................................................................................................15<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> Opportunities Forum (WECBOF)..................................................................13<br />

WESTERN CAPE BUSINESS <strong>2021</strong><br />

48


The Voice of <strong>Business</strong> for 217 years<br />

The <strong>Cape</strong> Chamber of Commerce and Industry brings people<br />

and businesses together.<br />

The business community also needs a voice. Since 1804 we<br />

have provided it and our voice matters. We lobby with integrity.<br />

We are independent. We are not affiliated to any political party nor<br />

any organisation. We monitor legislation that could affect business<br />

interests and submit evidence to Parliamentary standing committees<br />

or other authorities.<br />

The Chamber leverages media releases, radio interviews and<br />

letters to newspapers to alert the public to the likely undesired<br />

consequences of legislation and official policies.<br />

Executive Director Sid Peimer<br />

After more than two<br />

centuries of service<br />

to business, two<br />

industrial revolutions<br />

and another one upon us, the<br />

<strong>Cape</strong> Chamber of Commerce<br />

and Industry knows one thing<br />

has not changed – business is<br />

still driven by people who are<br />

smart, dynamic and innovative.<br />

<strong>Business</strong>men and women<br />

have a need to talk to others, meet<br />

people to work with, to earn from<br />

and generate the excitement of a<br />

shared vision. The Chamber offers<br />

this and much more – it is literally<br />

Where Opportunity Meets.<br />

Sharing Information<br />

Bringing people together is a core function of the Chamber.<br />

We hold seminars and workshops to share information and where<br />

experts can provide a deeper understanding of issues that affect<br />

businesses. In addition, we host conferences, exhibitions, coffee club<br />

mornings and landmark events like International Women’s Day and<br />

the Disability Summit.<br />

Our international trade desk is often the first stop for visiting trade<br />

missions and delegations. To support local industry we run seminars<br />

to facilitate international trade and arrange for foreign delegations to<br />

meet our members.<br />

We also issue certificates of origin for exporters and host a Port<br />

Liaison Forum where problems with sea freight are discussed and<br />

are often solved. Our portfolio committees are specialist forums for<br />

numerous sectors, including commerce, industry and agriculture<br />

where we invite experts to give members the latest information on<br />

developments to enhance their business operations.<br />

Staying connected<br />

It is apparent that we have never been as technologically connected<br />

as we are today, yet we have never been as socially disconnected. The<br />

Chamber is the glue that binds us together. ■


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