Western Cape Business 2023

WESTERN CAPE
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE WESTERN CAPE PROVINCE
2023 EDITION
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THE GUIDE TO BUSINESS AND INVESTMENT
IN THE WESTERN CAPE PROVINCE
CONTENTS
CONTENTS
Western Cape Business 2023 Edition
Introduction
Foreword 3
Western Cape Business is a unique guide to business, investment
and tourism in the Western Cape.
Special features
A regional overview of the Western Cape 4
Ashton in the Cape Winelands made big headlines in 2022. A new
bridge and an old canning factory were the focus of local and
national interest. Investment in infrastructure will be a big theme
in 2023 for the Western Cape Provincial Government.
Special Economic Zones could lead
the energy transition 14
Gas, green hydrogen, renewable-energy and electrical-vehiclecomponent
manufacturing are all in the mix as Atlantis SEZ
and Saldanha IDZ gear up to attract investors.
Economic sectors
Agriculture 22
Farmers are trying to save a canning factory.
Grapes and wine 24
Logistics are testing farmers’ ingenuity.
Oil and gas 28
The Astron refinery is set to reopen.
Energy 32
Batteries could make a difference.
Manufacturing 34
Local clothes makers are expanding.
Construction and property 35
Social housing projects are accelerating in Cape Town.
Transport 36
The upgrades to the N7 are moving ahead.
Tourism 38
Air Belgium has started flying to Cape Town.
Education 40
Digital skills are in demand.
SMME and development finance 44
Digital access is available for entrepreneurs.
Business Process Outsourcing 45
International brands are choosing Cape Town.
Banking and financial services 46
Infrastructure funds are attracting investors.
References
Key sector contents 20
Overviews of the main economic
sectors of the Western Cape.
Index 48
WESTERN CAPE
BUSINESS
JOIN US ONLINE
2023 EDITION
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ABOUT THE COVER:
Main image: top right, then
clockwise to centre; wind power,
Perdekraal East Wind Farm; fruit
packaging, RFG; wine bottles, Cape
Winemakers Guild; new Ashton
Bridge, AECOM; a direct flight
between Washington Dulles Airport
and Cape Town International Airport
has been introduced, United Airlines;
wind-turbine manufacturing factory
within the Atlantis Special Economic
Zone, Gestamp Renewable
Industries; the Cape Peninsula from
above, TNPA.

Western Cape Business
A unique guide to business and investment in the Western Cape.
Credits
Publishing director:
Chris Whales
Editor: John Young
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Tyra Martin
Production: Yonella Ngaba
Ad sales:
Gavin van der Merwe
Sam Oliver
Shiko Diala
Gabriel Venter
Vanessa Wallace
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
The 2023 edition of Western Cape Business is the 16th 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 focuses on how the province’s Special
Economic Zones have the potential to shift the energy debate in the Western
Cape. The Atlantic Special Economic Zone is positioning itself as a greentech
hub and wants to attract manufacturers in the renewable energy sector and
automobile component manufacturers for the electronic era. It is encouraging
tenants to reduce carbon emissions and use renewable energy.
Up the coast at the Saldanha Bay Industrial Development Zone, the
provincial government has not given up hopes of persuading national
government to site a gas plant there, but in the meantime the race for green
hydrogen might have supplanted the original wish. An expert from the
Council for Scientific and Industrial Research (CSIR) provides insights into green
hydrogen in a two-page article.
To complement the extensive local, national and international distribution
of the print edition, the full content can also be viewed online at www.
westerncapebusiness.co.za. Updated information on the Western Cape is also
available through our monthly e-newsletter, which you can subscribe to online
at www.gan.co.za, in addition to our complementary business-to-business titles
that cover all nine provinces as well as our flagship South African Business title
and the new addition to our list of publications, Journal of African Business, which
was launched in 2020. ■
Chris Whales
Publisher, Global Africa Network Media | Email: chris@gan.co.za
FOREWORD
DISTRIBUTION
Western Cape Business is distributed internationally on outgoing
and incoming trade missions, through trade and investment
agencies; to foreign offices in South Africa’s main trading
partners around the world; at top national and international
events; through the offices of foreign representatives in
South Africa; as well as nationally and regionally via chambers
of commerce, tourism offices, airport lounges, provincial
government departments, municipalities and companies.
Member of the Audit Bureau
of Circulations
COPYRIGHT | Western Cape Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to
the publication vests with Global Africa Network Media (Pty) Ltd. No
part of the publication may be reproduced in any form without the
written permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | AECOM; Air Belgium; APPA; Astron Energy;
Atlantic SEZ; Cape Town Central City Improvement District (CCID);
Cape Winemakers Guild; CHIETA; College of Cape Town; Conradie
Park; K-Way; Langeberg & Ashton Foods; New Southern Energy; Nick
Fordyce/GreenCape; Perdekraal East Wind Farm; Philippi Village; RFG;
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 1816 370X
Saldanha Bay IDZ; SANRAL; Suiderland Plase; Sun International; South
African Table Grape Industry (SATI); TotalEnergies; Transnet National
Ports Authority (TNPA); United Airlines; Versofy Solar; Water Research
Commission.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information
contained in Western Cape Business is accurate and up-to-date, the
publishers make no representations as to the accuracy, quality,
timeliness, or completeness of the information. Global Africa Network
will not accept responsibility for any loss or damage suffered as a
result of the use of or any reliance placed on such information.
3 WESTERN CAPE BUSINESS 2023

A REGIONAL OVERVIEW OF THE
WESTERN CAPE
Ashton in the Cape Winelands made big headlines in 2022. A new bridge and an
old canning factory were the focus of local and national interest. Investment in
infrastructure is a big theme for 2023, with the Western Cape Provincial Government
restructuring its departments to prioritise spending on roads, buildings, digital networks
and other elements that will boost investment and economic growth.
By John Young
Ashton is a small town in the Robertson
Valley, once best-known for being home
to two canning factories.
Two became one when the factories were
merged some years ago and in 2023, after 70 years
of operation, it is possible that the town will have no
canning factory. Tiger Brands intended closing the
Langeberg and Ashton Foods factory in 2022 but has
agreed to complete one more season of canning. If
the closure goes ahead, South Africa will have just one
fruit-canning factory, the RFG facility in Tulbagh.
Tiger Brands cited significant trade barriers in
export destinations and the volatility of exchange rates
and crop production volumes, deciding instead to
focus on basic foods. Local and provincial government
are working with farmers and agricultural bodies to see
what can be done to maintain the factory, which is a
significant part of the local economy.
The other reason Ashton made headlines in 2022
was because of the completion of a replacement
bridge over the Cogmanskloof River. Ashton is located
at the western end of the R62, an important route
for tourism and the transport of agricultural produce.
Some 4 000 vehicles travel through the town towards
Montagu on a daily basis.
This was no ordinary bridge. The building of the
New Ashton Arch Bridge in the centre of town, one
of three built over the flood-prone river in terms
of this provincial government project, was the first
application of the transverse-launching method for
construction of a concrete tied-arch road bridge in
South Africa.
The new bridge was used as a detour while the
old bridge was demolished and then more than 8 000
tons of concrete and steel was moved over 24m in less
than 24 hours.
WESTERN CAPE BUSINESS 2023
4

SPECIAL FEATURE
roads. A Department of Mobility will also be established
to work on coordinating transport systems and trying to
revive the passenger rail network, among other things.
In his 2022 State of the Province Address, Premier Alan
Winde claimed that Cape Town is:
• Africa’s greentech hub
• Africa’s BPO capital
• Africa’s tech capital
Credit: AECOM
The 22-metre bridge won the 2022 Fulton Award
in the Infrastructure Greater Than R100-million Project
Value category and received a commendation in the
Innovation and Invention in Concrete category.
AECOM SA was the project manager and structural
designer, the client was the Western Cape Department
of Transport and Public Works, and the main contractor
was Haw & Inglis Civil Engineering. Over the five-year
duration of the project, 42% of the contract value was
allocated to opportunities for locals.
Infrastructural priorities
The Western Cape Ministry of Finance and Economic
Opportunities announced in early 2022 a focus on
the construction and maintenance of roads and
education, health and general building facilities. This
is based on the belief that infrastructure investment is
one of the most significant contributors to provincial
economic growth.
An additional R2.6-billion was pledged to
infrastructure, as part of a R30.3-billion medium-term
package. Spending on infrastructure assets is intended
to increase by 6.1% every year, and by 54.2% on new
infrastructure assets.
A new Department of Infrastructure will be created
through the merger of the Human Settlements
Department with the parts of the Transport and Public
Works Department which deal with property and
In addition, he quoted the Global Startup Ecosystem
Report 2021, where Cape Town is listed as the number
one performer in Africa for technology ecosystems and is
home to almost two-thirds of all start-ups in South Africa.
There are 22 active incubators and accelerators in
the region which provide networking and marketing
opportunities and links to funders and markets.
Information and communications infrastructure is no
less important than physical bridges and it is because the
Western Cape has been investing in digital infrastructure
that the Premier can persuasively make these claims.
The provincial government’s broadband roll-out
project is in Phase 2 and all 1 910 sites are expected to
be upgraded to a minimum of 100/Mbps in 2022 with
Phase 3 taking minimum speeds to 1Gbps.
The Western Cape Department of Health was the
first in the country to go digital, including 265 primary
healthcare centres and 181 mobile posts.
The Premier will be pleased to know that Youth
Media Movement hosted a first SA Drone Soccer Day in
Mitchell’s Plain in 2022 to encourage young people to
take up and apply technology.
As a way for the Western Cape to show off its
growing reputation as a tech-friendly destination, the
launch of the Cape Town Stock Exchange in August
2021 was an ideal event. When several new bourses
launched in 2017 most of them put an X in their names
and all of them based themselves in Johannesburg. In
2021, 4AX made the move south and rebranded as the
Cape Town Stock Exchange.
Cape Town also, according to the Global Financial
Centres Index (GFCI), ranked second in Africa in 2020
(behind Mauritius) in competitiveness as a financial
centre. Neighbouring Stellenbosch is advancing its
reputation for technological innovation and the output of
the region’s four universities and six TVET colleges ensures
that the tech sector has the necessary human capital.
Cape Town’s share of national employment in the
financial sector is about 20% and the contribution to
gross value-added (GVA) is 15%.
5 WESTERN CAPE BUSINESS 2023

SPECIAL FEATURE
Air Belgium has added Cape Town to its destination list. In the first six months of 2022, 8 300 passengers and
500 tons of air cargo were flown between the two destinations. A direct flight will follow as passenger and cargo
volumes grow. Credit: Air Belgium
Investment
The province has a dedicated investment agency,
Wesgro, which also works to promote the region’s
tourism. The Investment Promotion Unit of Wesgro is
working with various regions within the Western Cape
to attract investment and accelerate exports.
In recent years, the biggest investments have
been in renewable energy and manufacturing. Other
important sectors are agro-processing, aviation,
business services, education and training, financial
services, real estate, ICT, light manufacturing, oil and gas,
timber, tourism, waste beneficiation and clean energy.
Another vehicle for attracting investment are Special
Economic Zones (SEZ) and Industrial Development
Zones (IDZ). Zones at Atlantis and Saldanha aim to
tap into growing markets – maritime, oil and gas and
renewable technologies. Large industrial operations
already exist at Saldanha and the Port of Saldanha Bay
is the portal for the export of South Africa’s iron ore. The
Saldanha Bay Industrial Development Zone (SBIDZ) is
becoming a hub for a range of maritime repair activities
and oil rig maintenance and repair.
The Atlantis Special Economic Zone (ASEZ) is
attracting investors in the greentech market. An early
investor in the zone was GRI Towers South Africa, a wind
turbine tower manufacturer. With new renewable energy
projects such as solar parks and wind farms being rolled
out every month, this sector is on a steep growth path.
Economy
Finance, business services and real estate
combined contribute 28% to the gross domestic
product (GDP) of the Western Cape. The financial
services and insurance sector are key components
of the economy.
Although agriculture accounts for just 4.3%
of GDP on its own, the sector is responsible for
the fruit and vegetables that contribute to agroprocessing
which accounts for nearly 40% of
the province’s export basket. (Agro-processing
accounts for 8.1% of GDP.) Citrus, wine, apples and
pears, grapes, fruit juice, fruit and nuts and tobacco
all appear in the top 10 of the province’s exports.
Seventy percent of South Africa’s beverage exports
come from the Western Cape. Grapes and wine
sales to Europe remain strong, but the Chinese
market is becoming increasingly important.
The province has a diverse manufacturing
sector ranging from textiles, clothing, footwear,
boatbuilding and furniture to coke and refined
petroleum products. Excluding agro-processing,
other manufacturing makes up 6.9% of GDP.
A R2-billion facility is under construction by the
Biovac Institute in response to securing contracts
with Pfizer and BioNTech to produce vaccines for
distribution in Africa. Biovac is a private company
in which the state has a 47.5% stake. ■
WESTERN CAPE BUSINESS 2023
6

SHAPINGFUTURES
How South African companies can create employable graduates.
WHAT WE DO:
The Shaping Futures Foundation undertakes to address the
challenge of tertiary education funding in South Africa:
• match corporate skills development contributions to
deserving students
• ensure this spend is allocated efficiently and in accordance
with the country’s demographic profile
• assist companies to maximise their BEE obligations
• liaise with tertiary institutions.
Corporate South Africa has a chance to put
a deserving student in a lecture hall at a
tertiary institution.
WHAT COMPANIES CAN DO
• Corporate donors can play a meaningful part in improving
the lives of all South Africans.
• Donations to the Shaping Futures Foundation qualify as
skills development expenditure.
• Any spend that the corporate has already incurred is
taken into account.
• An 18(A) certificate can ensure tax efficiency.
• Supporting a graduate could lead to hiring opportunities
for the donor companies which will further enhance
their demographic profile and improve their employment
equity score.
The Shaping Futures Foundation is a non-profit
organisation that has been matching donors with
students with ability but limited funds since 2017.
TERTIARY EDUCATION IN SOUTH AFRICA IS
EXPERIENCING A FUNDING CRISIS.
Despite having the academic ability to pass, many
students can’t afford the fees and so they are denied
graduation. Many of these students are the first in their
families to attend universities. With government battling
to narrow this funding shortfall, it is a national imperative
for these students to graduate and join the workforce.
Corporates can assist in narrowing this divide and at
the same time gain recognition on their BEE scorecard.
The ability for the graduating student to find meaningful
employment improves not just their life but potentially
those of their family as well.
Revised BEE Codes focus heavily on the human resource
elements within the scorecard and have made skills
development a priority element.
As a priority element, large companies that fail to
achieve at least 40% of the skills development points
on offer will automatically be downgraded a level.
Qualifying small enterprises (QSE) will also benefit by
contributing to skills development.
DONATING TO THE SHAPING FUTURES FOUNDATION
IS A WAY OF SHAPING MANY FUTURES:
• Individual South African students
• South African families
• Your company.
The Shaping Futures Foundation also currently administers
a school feeding scheme providing daily meals to 2 800
underprivileged learners.
LEARN MORE AT: www.shapingfutures.org.za
SEND AN EMAIL TO: chloe@shapingfutures.org.za

INTERVIEW
Charting the pathway to
economic growth
Mireille Wenger, Minister of Finance and Economic Opportunities, explains
how the Western Cape Provincial Government intends to achieve
maximum impact while prioritising jobs, safety and wellbeing.
Mireille Wenger, Minister
of Finance and Economic
Opportunities
BIOGRAPHY
Mireille has a Master of Arts in International
Relations from the University of
Stellenbosch and a Master of Philosophy
in Criminology, Law and Society
from UCT. She has also completed the
Programme in Political Science and
Sociology at Sciences Po in France.
She has served as the Chief Whip in
the Western Cape Provincial Parliament,
chaired the Ad Hoc Committee
on Covid-19 and the Parliamentary
Oversight Committee and also previously
served as the Chairperson for the
Community Safety Committee.
You described your Medium-Term Budget Policy Statement
(MTBPS) as a “framework of hope”. Please expand.
We face significant challenges as a nation, including sluggish
economic growth, high levels of unemployment and poverty,
significant debt-service costs, a rising cost-of-living and a
debilitating energy crisis.
In the face of these challenges, there are promising
opportunities that present a clear pathway from recovery to
growth in the Western Cape. Guided by our “north star” priorities
of jobs, safety and wellbeing, and underpinned by our budget
principles of protecting our core mandates, focussing on
programmes that maximise impact, doing more with less to
deliver value for money projects, while acting to protect the
long-term fiscal sustainability of the province, the Medium-
Term Budget Policy Statement and Adjustment Budget set out
a “framework for hope” by detailing the funding allocations that
will deliver hope to the citizens of the Western Cape by setting
us on a course towards a better, more prosperous future.
What are the key priorities for your department?
In all that we do, we are guided by our priorities of jobs, safety
and wellbeing, which we believe are vital components for real
change and our reason to hope. Which is why over the term
of the 2022/23 Adjustment Budget, to keep us on course from
recovery to growth, and to give full effect to our framework for
hope, we will have allocated:
• R54.75-billion to our wellbeing priority
• R15.87-billion to our growth for jobs priority
• R2.65-billion to our safety priority.
Over the longer term, it remains critical that we unlock much
higher levels of economic growth in the Western Cape, so that
we can create opportunity.
We are currently formulating a new Growth for Jobs Strategy
for the province.
At the core of this strategy is the understanding that the
private sector drives economic growth and job creation and
the government’s job is to enable this, firstly by providing
the foundations for growth, such as infrastructure, energy
WESTERN CAPE BUSINESS 2023 8

and water, by unlocking housing opportunities
and building reliable, safe roadways, as well
as delivering skills for the economy. Secondly,
government must create an enabling
environment for entrepreneurs, businesspeople
and citizens and make it easier for businesses, big
and small, to trade in the Western Cape.
What is the provincial government doing
about the risk posed by Eskom?
The Western Cape has made it a strategic priority
to become energy resilient and to be the first
province to beat loadshedding. Premier Alan
Winde’s cabinet-level Energy Council brings
together government, citizens, businesses and civil
society to coordinate immediate action.
This coordination, with interventions over the
short term, will be key, while we continue to lay
the foundations, over the medium term, for an
energy-resilient future through our Municipal
Energy Resilience (MER) Initiative.
This programme is making important strides
in unlocking energy opportunities by enabling
municipalities, businesses and households to
generate, procure and sell power. To enable
the private sector, we are mapping out large
private-sector energy users’ current energy useand-demand
growth projections as well as their
alternative-energy-supply interventions and plans.
The intention is to map this information against
municipal grid capacity to enable the fast-tracking
of private-sector implementation of small-scale
embedded generation and electricity-wheeling
solutions where possible.
To support municipal readiness, the Western
Cape Government has provided funding to 10
municipalities for 16 foundational energy studies
including the development and updating of
electricity master plans and cost-of-supply studies.
We are in the process of having standardised legal
agreements drafted for the use of municipal grids
in wheeling transactions.
Our goal is to generate an additional 500MW of
power for the Western Cape by 2025, and we are
constantly looking at ways to focus, innovate and
scale up so that we move towards our goal as fast
as possible.
An efficiently functioning Port of Cape Town has the
capacity to add R6-billion in exports, 20 000 jobs and
more than R1.6-billion in additional taxes. Credit: TNPA
What was behind the somewhat improved
statistics for unemployment in Q3?
It was welcome news that, according to the
Quarterly Labour Force Survey, just over 85 000
jobs were created in the Western Cape in Quarter
3, and that over 203 000 jobs were created in the
Western Cape year-on-year. While the Western
Cape’s expanded unemployment rate also
decreased by 1.8 percentage points quarter-onquarter
and by 0.8 percentage points year-onyear,
the fact is that we need to achieve much
higher and sustained economic growth if we
want to employment to increase.
Has progress been made in terms of the
functioning of the Port of Cape Town?
Ensuring that the Port of Cape Town (PCT) reaches
its full potential is a priority for the Western Cape
Government because we believe that logistics,
mobility and export facilitation are critical pieces
of the puzzle of break-out economic growth that
gets us on new trajectory of prosperity and hope.
According to a high-growth scenario
contained in a research report by Impact
Economix, an efficient PCT with sufficient capacity
and investment in key infrastructure has the
potential to contribute an additional R6-billion in
exports, roughly 20 000 direct and indirect jobs,
over R1.6-billion in additional taxes by 2026, and
an additional 0.7% contribution to the Western
Cape Gross Domestic Product.
To achieve this high-growth scenario, the
Western Cape Government is committed to
working together with all levels of government
and the private sector to unlock the port’s full
potential. We believe that enabling private sector
participation at the Port of Cape Town, as is
currently the case for Durban and Ngqura, will be
key to this. ■
9
WESTERN CAPE BUSINESS 2023

SPECIAL FEATURE
How SA can power green
investments and end loadshedding
With SA’s energy crisis showing no sign of slowing down, the need to
accelerate green investments is now more urgent than ever.
By Wesgro CEO Wrenelle Stander
While South Africa is considered the best area for
investment in Africa by investors from various countries
around the world – topping the list of foreign direct
investment with 31 projects in 2020 according to the
Attractiveness Report Africa by global professional
services firm Ernst & Young (EY) – the country hasn’t
done enough to build on this advantage and scale up
renewable energy investments.
Wrenelle Stander
Understandably, many bemoan
loadshedding as it continues to be a
massive drag on productivity and output
in key sectors of the economy. But there
is a silver lining; loadshedding presents the most
opportune moment for South Africa to speed up the
transition to renewables and decarbonise by creating
an environment conducive for green investments.
With its abundant sun and wind, South Africa
has the basic resources to attract investments in
that space. But we should be doing more to lure
green investors.
Ramping up targeted incentives to companies
operating in the renewable energy space could
be one of the most effective ways to spur green
investments into the country, and thus keep
the lights on – which is necessary to fire up the
economy and to make a meaningful dent in
unemployment, poverty and inequality.
What should South Africa do?
So, what should South Africa be doing to establish
itself as a green investment hub?
Huge tax benefits, which could effectively
address green economy challenges and changes in
consumer behaviour, are one of the most important
factors influencing green investment decisions
today. This can be seen in countries that top EY’s
investment attractiveness index, including the
US, the UK and Germany. Examples of sustainable
activities that receive substantial tax credits in
those countries are in energy-efficient renovations
especially in residential buildings. There are also
credits for companies that invest in solar panels,
wind and solar energy equipment. Companies that
send waste from landfills for recycling or reuse also
qualify for tax benefits.
A recent study conducted by global research
firm Kantar on behalf of Wesgro, the official tourism,
trade and investment promotion agency for Cape
Town and the Western Cape, shows that there is a
growing appetite to invest in the green economy
globally and many governments are putting in
place clear and targeted measures to make it easier
and more incentivised for players in that market.
The US, for example, recently promulgated the
Inflation Reduction Act of 2022 which includes
almost $400-billion in clean energy and climaterelated
spending. The law partly puts an emphasis
WESTERN CAPE BUSINESS 2023
10

The Western Cape has excellent potential as a site for both solar and wind power plants. Marlenique Estate,
Stellenbosch. Credit: New Southern Energy
on subsidies and tax credits to stimulate investment
in clean-energy technologies rather than on a
carbon price or penalties. In broad terms, it aims to
ramp up investments in domestic manufacturing
capacity, encourage domestic procurement and
the diversification of supply chains, and incentivise
research and development and commercialisation
of clean technologies like carbon capture, storage
and clean hydrogen.
A major portion of the funding under the new
law is directed towards clean energy through a mix
of tax incentives, grants and loan guarantees, with
the ultimate goal of drastically lowering US carbon
emissions. The largest amount of funding will
support clean energy and transmission, followed by
clean transportation, including a switch to electric
vehicles (EVs).
Similarly, the UK provides generous tax breaks
for companies that operate in a sustainable manner.
A Climate Change Levy (CCL) is paid by businesses
in key sectors, including industrial, commercial and
agricultural or public services for electricity, gas and
solid fuels.
But if the firm uses small amounts of energy (for
example, when energy is not used as fuel), or uses
domestic energy, it doesn’t need to pay the main
rate of CCL on certain supplies. A company can also
claim “enhanced capital allowances” when buying
energy-efficient, low or zero-emission technologies,
such as electric vehicles or zero-emission trucks. This
reduces the amount of tax to pay. A company can
also obtain tax breaks if it sends waste from landfills
to be recycled, incinerated or reused.
The European Green Deal
Meanwhile, in 2019 a law on climate protection was
introduced in Germany. The law includes, among
other measures, tax incentives for energy-efficient
renovation measures in residential buildings or
a mobility bonus for people who commute to
work. The “European Green Deal” – with the aim
of achieving climate-neutral business activity by
2050 – also gives the tax policy a decisive role in the
transition to greener and more sustainable growth.
By 2030 Germany plans to produce at least 65%
of all its electricity from renewable sources, and
all electricity generated in the country should be
greenhouse-gas neutral before 2050.
To secure the green transition, the German
government plans to invest €1.5-billion in green
hydrogen to help decarbonise the economy. Such
measures send a clear message to investors that
renewables will be supported and builds confidence.
Meticulously prepared top-down plans of a
country on sustainable development give potential
investors a defined road map and show investment
opportunities in a clear way.
In South Africa, incentives to fast-track the
transition to a green economy have hardly moved
the needle, amid lack of clarity on key government
policies. The political will is there, for the most part.
What is needed is urgent and decisive action.
Collaboration in the Western Cape
The energy crisis will not be fixed by any one
stakeholder and the collaboration of the public and
private sectors will be the catalyst for getting this
11 WESTERN CAPE BUSINESS 2023

Following the announcement by the City of Cape Town that residents could get cash for power, national
company Versofy Solar received 1 500 enquiries in the month of January. Credit: Versofy Solar
right. The Western Cape is taking the lead on that
front with Premier Alan Winde recently stating that
the province is looking into ways in which private
businesses can be provided with the necessary
support to ramp up more investment into
alternatives. The province has always emphasised
the importance of intensifying and expanding the
green energy drive by boosting relations with local
and international partners.
South Africa has the potential to attract more
green investments by implementing policies and
initiatives that promote the use of clean energy and
sustainable development. This could include setting
clear renewable energy targets, providing lucrative
financial incentives for clean energy development
and creating a predictable regulatory environment.
By implementing policies and initiatives
that promote clean energy and sustainable
development, South Africa can accelerate the
massive rollout of renewable energy, crucial to
end the crippling loadshedding crisis. But this will
require a comprehensive and coordinated approach
that involves the government, private sector
and civil society. Only then can SA build a much
more attractive environment for green investors,
accelerate the drive to a low-carbon economy, and
end loadshedding which has become the biggest
handbrake on the economy. ■
From 2024 Golden Arrow will add 60 e-buses
to its fleet every year. Credit: Nick Fordyce/
GreenCape.
WESTERN CAPE BUSINESS 2023
12

WECBOF
makes it happen!
The Western Cape Business
Opportunities Forum (WECBOF)
provides a platform for businesses
to establish and maintain contact with
fellow entrepreneurs; to have access to
opportunities, information and training;
and to have representation on a number
of relevant forums of government and
other associations focussed on growing
and enhancing the commercial sector,
with a specific focus on small-, medium-,
and micro enterprises (SMMEs).
WECBOF is widely recognised and
respected as a powerful voice for
business in the Western Cape; we are a
provincial service organisation with our
focus and attention firmly on the national
and international business pulse.
CALL US TODAY.
+27 21 946 2519
office@wecbof.co.za www.wecbof.co.za
www.facebook.com/wecbof/
@wecbof
A powerful voice for business.
Where entrepreneurs excel.

SPECIAL FEATURE
Special Economic Zones could
lead the energy transition
Gas, green hydrogen, renewable energy and electrical vehicle component
manufacturing are all in the mix as Atlantis SEZ and
Saldanha IDZ gear up to attract investors
The Saldanha Bay Industrial Development Zone could become a green hydrogen hub. Credit: SBIDZ
Both of the Western Cape’s Special
Economic Zones (SEZs) have a role to play
in the changes that are coming in the field
of energy.
The Atlantis Special Economic Zone and the
Saldanha Bay Industrial Development Zone each
has its own focus but both are based on attracting
the private sector to invest by creating well-serviced
land with good infrastructure. Both projects form
a vital part of the Western Cape Government
Economic Recovery Plan.
Saldanha Bay Industrial Development Zone
The Saldanha Bay IDZ helped create 2 000 jobs in
the 2021/22 financial year. The IDZ is based on the
existing industrial and port activities of Saldanha
and the Port of Saldanha Bay, which is the main
portal for the export of South Africa’s iron ore. The
Saldanha Bay Industrial Development Zone (SBIDZ)
is becoming a hub for a range of maritime repair
activities and oil rig maintenance and repair.
The Western Cape has been lobbying hard for
Saldanha Bay to be a site for a gas-to-power plant
for some years. If a gas plant were to be built at
Saldanha, then it could be a catalyst for the use of
gas in many other sectors such as manufacturing
and residential.
However, it could be that another energy
source is going to take the place of gas for the
SBIDZ. Experts have reported that the Saldanha
Bay region has excellent solar and wind resources
which could produce large amounts of renewable
energy electricity at competitive costs.
Two industrial giants agreed in 2022 to
cooperate to find ways to produce sustainable
chemicals and fuels, together with “green steel”. A
key element for both Sasol and ArcelorMittal SA
will the production of so-called “green hydrogen”,
namely hydrogen generated via renewable
energy sources.
The cooperation of Sasol and ArcelorMittal SA
could have massive implications for the Saldanha
WESTERN CAPE BUSINESS 2023
14

SPECIAL FEATURE
region, with Sasol following up its agreement
with the steel manufacturing with the signing, in
the same week in October, of a Memorandum of
Understanding with the SBIDZ to work together to
establish a green hydrogen hub.
The National Department of Trade, Industry and
Competition (dtic) and the provincial government
have collectively invested R500-million in core
infrastructure, a lease agreement has been signed
with Transnet National Ports Authority (TNPA), and
a phased approach to development has begun.
The concept of the SBIDZ works well within two
broader projects: Operation Phakisa and Project
Khulisa, the targeted growth strategy of the Western
Cape Provincial Government which includes
servicing and repairing of oil rigs as a priority.
Atlantis Special Economic Zone
The scheduling of the Atlantis Special Economic
Zone (SEZ) State Owned Company (SOC) Limited
as a provincial business enterprise was approved by
National Treasury on 15 December 2021.
The ASEZCo is driving sustainable development
and job creation by harnessing the opportunities in
the growing green economy. The ASEZ Greentech
theme aims to attract manufacturers wanting to
supply their technologies to independent power
producers bidding on the national renewable
energy programme, the Renewable Energy
Independent Power Producer Procurement
Programme (REIPPPP).
One of the first investors in the ASEZ was GRI
Towers South Africa, a manufacturer of windturbine
towers, a perfect fit for the intention to
promote renewable energy and green technology
manufacturing sectors.
By early 2022, the zone had attracted more
than R790-million in investment, with two
investors expanding in the previous 12 months,
creating over 400 jobs in the process. Treasury’s
approval should spark more activity and the SEZ
plans to add an additional three investors in the
2022/23 financial year.
As global demand for electric vehicles increases,
so South African manufacturers will start having
to import or make compatible components. The
ASEZ is positioning itself to be the preferred site for
electrical vehicle component manufacturing.
Another element that is being encouraged at
ASEZ is resource-efficient cleaner production. The
zone subscribes to UNIDO’s Eco-Industrial Park (EIP)
principles and four green utility infrastructure goals
underpin the management plan: reducing carbon
emissions while providing energy security; longterm
water security and efficient water use; reduce
waste to landfill; working with nature through an
indigenous landscaping plan.
Energy policies
The province and the City of Cape Town are
lobbying national government for a greater role for
municipalities in the generation and distribution of
energy. The potential of renewable energy is being
realised through the national independent power
producer programme.
Investing in resilience
A market intelligence report covering energy,
renewable energy, water and waste was created
by GreenCape to map the assets and challenges in
these areas.
In addition to trying to attract green investment
into the province, the province is working for
improved regulations related to small-scale
embedded generation (SSEG). Cape Town also wants
to be able to rent out its infrastructure to a power
producer who can supply a user via that infrastructure.
Much of this work is done by a unit called the
Sustainability Energy Markets within the Energy
Directorate. Another area of focus for this group is to
investigate energy use by low-income households.
The Cape Peninsula University of Technology’s
Energy Institute is a leader in research in the
field of electricity. The South African Renewable
Technology Centre (SARETEC) on the Bellville
campus of CPUT offers courses such as Wind
Turbine Service Technician and Solar Photovoltaic
Service Technician and various short courses such
as Bolting Joint Technology.
The Centre for Renewable and Sustainable
Energy Studies is at the University of Stellenbosch
where a new School for Climate Studies has been
launched. The University of Cape Town has the
Energy Research Centre and the University of the
Western Cape is doing research on the possibilities
of hydrogen as an energy source. ■
15 WESTERN CAPE BUSINESS 2023

FOCUS
South Africa is on the path to
green hydrogen exports
Thomas Roos, Principal Research Engineer at the Council for Scientific and
Industrial Research (CSIR), reports on cooperation with three German ministries.
Thomas Roos, Principal Research Engineer, CSIR
Under the Just Energy Transition Partnership
announced at COP26 in Glasgow, the governments
of UK, France, Germany, the USA
and the EU have agreed to provide $8.5-billion
in financing in the form of grants and soft loans,
to assist South Africa to decarbonise the electricity
sector by early retirement of coal-fired power plants
and expansion of renewables, to accelerate the introduction
of electric vehicles and to facilitate the adoption
of green hydrogen. In February, the Department
of Science and Innovation released the Hydrogen
Society Roadmap. In November at the South African
Green Hydrogen Summit, President Ramaphosa announced
that the Just Energy Transition Investment
Plan, recently released for public comment, has identified
green hydrogen as one of the four “big frontiers”
of a just energy transition, indicating that it has huge
growth and investment potential.
CSIR research is showing ways that South Africa
can become a significant exporter of green hydrogen
and the body is already involved in projects with
several German ministries.
It may therefore legitimately be asked: “What
is green hydrogen, and why is it important?” While
the term green hydrogen is often used to describe
hydrogen produced from any non-fossil-fuel-based
source (such as biogenic or nuclear), in this context
it is more strictly defined as hydrogen produced by
splitting water by electrolysis into hydrogen and
oxygen, using electricity from renewable sources.
Green hydrogen may therefore be regarded as
renewable electricity stored in chemical form.
Green hydrogen is important for the
decarbonisation required by the Paris Agreement
(signed and ratified by 193 countries) and the
European Green Deal (which commits the EU to
be carbon-free by 2050). The most efficient and
generally lowest-cost decarbonisation approach
is to convert current fossil-driven processes
to instead be directly driven by renewable
electricity. There are two scenarios, however,
where this direct renewable electrification is not
always possible or feasible.
Geography dictates
The first scenario involves geographic locations
where energy demand exceeds feasible renewableelectricity
supply. This is the case for Japan, the
world’s third-largest economy and a signatory to
both the Kyoto Protocol and the Paris Agreement. It
is also in the top four importers globally of the three
major chemical energy vectors (coal, oil and natural
gas). Its decarbonisation options are constrained: it
has very limited natural energy resources and the
Fukushima disaster significantly dampened public
appetite for nuclear power. As a result, Japan plans
to move its economy towards hydrogen – mobility
by fuel cell electric vehicles, homes powered by
fuel cells (with the waste heat produced providing
domestic water heating) and central power
generation from combined-cycle power stations,
WESTERN CAPE BUSINESS 2023
16

FOCUS
Credit: Shutterstock
fired by green ammonia. To allow this, from 2030
Japan will import about 300 000 tons of hydrogen
per year (at a target price of $3 per kilogram), rising
to between five-million and 10-million tons of
hydrogen per year by 2050.
This presents an opportunity for South Africa:
CSIR modelling has shown that the combination
of South Africa’s excellent solar and wind resources
and the expected cost reductions over time in solar
PV, wind and electrolyser equipment allow green
ammonia produced in South Africa to be delivered
to Japan in 2030, meeting the Japanese cost target.
Difficult sectors
The second scenario involves two broad categories
of hard-to-abate economic sectors. The first category
is heavy-duty, long-range transport where the use
of batteries is ruled out by range, power density or
charging time limitations, such as commercial aviation,
maritime shipping and long-distance trucking.
The second category is a subset of carbonintensive
industrial processes, such as iron and
steelmaking, cement manufacture, ammonia
production and the manufacture of plastics.
Green hydrogen, together with its derivatives
such as green ammonia, green methanol and
sustainable aviation fuel, provides a pathway to
decarbonise these sectors.
For Germany to meet its decarbonisation
targets, the National Hydrogen Strategy of
the German Government states that between
2.7-million and 3.3-million tons per year (90-110
TWh/year) of green hydrogen will be required by
2030, but that only a maximum of 420 000 tons per
year (14 TWh/year) can be generated in-country
(14% of this amount). By far the bulk of the green
hydrogen will have to be imported, some from
elsewhere in the EU such as Portugal, Spain and
the Ukraine; and the remainder from renewablerich
countries in a development relationship with
Germany, such as South Africa.
Three separate German federal ministries are
funding projects to develop the green hydrogen
economy in South Africa: BMWK (Ministry for
Economic Affairs and Climate Action), BMZ
(Economic Cooperation and Development) and
BMBF (Research and Education), and CSIR is
involved in each of these. In a project funded
by BMWK, CSIR and Meridian Economics were
contracted by KfW Development Bank to solicit,
evaluate and rank applications from hydrogen
developers for 200-million euros in concessional
financing to fund green hydrogen projects in
South Africa. From 55 initial applications, a longlist
of 20 projects passed the initial filtration
process, leading to a shortlist of between seven
and 12 projects, depending on the breakdown
of grant versus concessional-loan financing.
The oversubscription of the funding shows
significant market appetite.
CSIR is well positioned to support the energy
transition in this way, as the development and
implementation of green hydrogen will draw on
many of CSIR’s capabilities. ■
17 WESTERN CAPE BUSINESS 2023

Improving the business environment
and supporting members
The Cape Chamber of Commerce and Industry is working with
members to promote growth and build a smarter economy.
Image: Shawn Harrison on Unsplash
The Cape Chamber of Commerce and
Industry, Africa’s oldest member-based
business chamber, was established in 1804,
firmly cementing our place as a catalyst
for economic growth for over two centuries. We
pride ourselves on being an instrumental player
in establishing our region as one of sub-Saharan
Africa’s major centres of trade, industry and
innovation – a legacy that continues to this day.
As a dynamic organisation in a fast-changing
world, our focus is on remaining relevant to
the current challenges affecting business. Our
key mandate is to improve the overall business
environment, promoting growth and sustainability,
and supporting our members’ interests. Our
strategic interventions include lobbying key
government departments and institutions,
creating public-private dialogue through task
teams and spearheading discussion forums to
address system blockages. Through dialogue we
strive to facilitate consensus around critical issues,
and through targeted action we effect meaningful
change. Strengthening public-private dialogue in
turn strengthens business competitiveness and
steers us towards a smarter network economy.
We mobilise all economic stakeholders –
private sector, business organisations, local
government and national government – to
collectively address sector-specific, industryidentified
constraints and bottlenecks. This
entails setting up task teams to identify needs
and effect legislative and regulatory change
on key issues, a process galvanised by the
post-pandemic economic milieu. Encouraging
businesses to join hands with us and strengthen
the dialogue through collective action makes all
stakeholders more globally competitive.
In line with our collaborative approach, and
as part of our service offering, we provide a
digital platform where members interact and
share skills and services. Our website forums
and data portals function as a much-needed
digital library and notice board aimed at keeping
our members informed. Skills development,
enterprise development, knowledge-sharing and
partnership through topical webinars, seminars,
workshops and business networking events form
part of our offerings.
The Chamber’s professional team assists with a
wide range of business enquiries, from local issues
to international trade and investment. Our advice
and information is current, timeous and relevant.
Information is sourced on a continuous basis
from a broad network of local and international
partners. Our International Trade desk is the first
point of contact for international business and
we arrange opportunities for collaboration and
networking, giving our members visibility and
access to global markets.
Together we can actively shape our future success.
capechamber.co.za

www.capechamber.co.za
We are immensely proud of our 218 year history as the voice of organised business in the
Western Cape. The Cape Chamber of Commerce and Industry continues to have relevance to
the needs of business today - with a fi nger on the pulse and our eyes fi rmly to the future, we are
a driving force of change and progress towards sustainable economic development.
We facilitate connection in exports, targeted imports and investments, unlocking new
opportunities for our members, locally and internationally. Through our vast network of dynamic
partnerships, we give our members, both large and small, visibility and traction.
In achieving our aim of growing the Western Cape economy sustainably, we know that creating
an enabling environment for business to thrive is the key to economic prosperity.
We have a targeted focus on:
• enterprise development and capacity building
• clustering and sectoral development
• precinct development and geographic spread
• competitiveness and value chains
• advocacy to advance the needs of our members
We have initiated partnerships with like-minded organisations, spearheaded public-private
dialogue processes, and identifi ed pain points in the enabling environment. We are mobilising
all stakeholders on behalf of our members to steer the Western Cape towards a smarter network
economy.
Join us to shape a better future.
www.capechamber.co.za

KEY SECTORS
Overviews of the main economic
sectors of the Western Cape
Agriculture 22
Wine and grapes 24
Oil and gas 28
Energy 32
Manufacturing 34
Construction and property 35
Transport and logistics 36
Tourism 38
Education and training 40
Development finance and SMME 44
Business Process Outsourcing 45
Banking and financial services 46
An R80-million investment from the Bertha Foundation and the Jobs Fund enabled the construction of a business hub,
Philippi Village, which includes 54 spaces available for affordable rental while the Container Walk provides 6m and 12m converted
containers for communal workspaces, offices or storage space. A process of community engagement resulted in the addition of
community facilities including a library, basketball court, amphitheatre and health services. Credit: Philippi Village

OVERVIEW
Agriculture
Farmers are trying to save a canning factory.
Tiger Brands announced in 2020 that it intended focussing
on what it called “everyday branded food and beverages”.
The result of that focus is that the company’s food-canning
business is to be put up for sale.
Fears were raised in the town of Ashton that up to 4 000 jobs
would be lost and 300 farmers in the district would be wiped out
if Langeberg & Ashton Foods canning facility were to close. Ashton
is in the Langeberg Local Municipality within the Cape Winelands
District Municipality. The company is a subsidiary of Tiger Brands, the
country’s biggest producer of food.
A local consortium of 160 fruit farmers was considering trying
to buy the facility. Agri SA estimated they would need an amount
approaching R300-million. This was proving difficult to raise but
in July 2022, Tiger said it would keep the operation going for one
more season.
Suiderland Plase managed to build and start operating a new
citrus packhouse despite the disruptions of Covid-19 and tough
market conditions. Named Bergpak, the packhouse, pictured, is
designed to pack 120 000 bins of fruit per year from year three, and
the volume could grow as high as 280 000 bins in a season.
The facility is in the vicinity of Piketberg and is the company’s
third packhouse. It will house a variety of citrus cultivars which
will run on two six-lane sorters. At Wespak, near Clanwilliam, and
Suiderpak (Swellendam), the packhouses deal with 70 000 and
60 000 bins respectively.
The company grows, packs and markets fruit and recently has
been expanding its plantings in soft citrus, lemons and table grapes.
A fairly new growth area in agriculture is the production of
liquid kelp products. Farmed kelp in Gansbaai is processed to create
products that assist with root growth in crops. Afrikelp is a company
that exports to more than 50 countries and claims that its products
improve water and nutrient-use efficiency, together with equipping
plants to better handle droughts.
The South African Rooibos Council announced in 2022 that it
would start paying a levy on the product to trusts for Khoi and San
people. A payment of R12.2-million was paid in July and the future
levy would amount to 1.5% of the farm gate price.
This followed news that the long battle for protected status for
rooibos in the EU finally reached an end. The best-known products
that are forever linked to their home regions are champagne and
SECTOR INSIGHT
Liquid kelp products are
doing well.
port, and France and Portugal
have fought hard for those
rights. Now the Western Cape’s
herbal tea product enjoys
the same privileges, which is
great news for the roughly 450
farmers working with rooibos
(350 commercial plus 100
small-scale farmers). The sector
produces about 20 000 tons of
rooibos every year, about half of
which is exported.
Credit: Langeberg & Ashton Foods
WESTERN CAPE BUSINESS 2023
22

OVERVIEW
Economic impact
Agribusiness and agro-processing are vital parts of the provincial
economy with about 45% of South Africa’s agricultural exports moving
through the province. The value-add in the sector amounts to more than
R14-billion per annum (Invest Cape Town).
Seven of the top 10 exports from the province are agricultural
or agro-processed products. As Wesgro notes, the Western Cape is
responsible for
• Almost half of South Africa’s agribusiness exports
• About 70% of South Africa’s beverages exports
• About 85% of South Africa’s fisheries exports
Agricultural products as a sector leads regional exports, second
only to the petroleum sector.
In addition, the region exports 70% of all South African beverages
and spirits and 96% of its wine. The region produces 11 different
commodities. Fruit, poultry, eggs, winter grains, viticulture and
vegetables comprise more than 75% of total output.
Exporters were introduced to some digital innovation in 2020 in the
form of the Cape Export Network. CEN, a joint initiative of the Western
ONLINE RESOURCES
Aquaculture Association of Southern Africa: www.aasa-aqua.co.za
Citrus Growers’ Association: www.cga.co.za
Fresh Produce Exporters Forum: www.fpef.co.za
South African Rooibos Council: www.sarooibos.co.za
Western Cape Department of Agriculture: www.elsenburg.com
Credit: Suiderland Plase
Cape Provincial Government,
Wesgro and Wines of South
Africa (WoSA), is a platform that
connects wine producers, buyers
and importers.
Assessed independently
from the country, the Western
Cape is the world’s fifth-largest
exporter of citrus fruits. Oranges
are the province’s number one
citrus export and soft citrus is
growing. Europe remains the
most important market but the
Asia and Oceana markets are
growing. The top five countries
are the Netherlands, UK, Russia,
UAE and China.
Berries are a growing
subsector and two-thirds of
production occurs in the Western
Cape. More than 70% of the
crop is exported and the major
production companies are
Berryworld South Africa, United
Exports and Haygrove SA. Berries
thrive between George and
Swellendam and sales of chippers
have grown because blueberries
have to be vigorously pruned.
There is plenty of scope for
exports to grow. Current annual
exports are 13 500t compared
to over 200 000t for table grapes
and about 300 000t for apples
(South African Berry Producers’
Association). Once producers
pass muster with Chinese import
authorities, volumes can be
expected to grow. ■
23
WESTERN CAPE BUSINESS 2023

OVERVIEW
Grapes and wine
Logistics are testing farmers’ ingenuity.
SECTOR INSIGHT
White wines fetched
top prices at the
2022 Nedbank Cape
Winemakers Guild Auction.
Grape farmers, wine producers and exporters have had their
hands full coping with a series of challenges that go beyond
the normal worries about weather, unpredictable customer
preferences, global competition and variable pricing.
Logjams at the Port of Cape Town create headaches for exporters
of time-dependent fruit and just as Covid-19 restrictions were
coming to an end, Russia invaded Ukraine, putting some of the
income derived from exports in jeopardy.
Nearly 2% of South African wine is exported to Russia. In 2021
the volume increased to nearly seven-million litres. With payment
normally made through SWIFT, Russia’s expulsion from that system
made transactions impossible.
Despite these headwinds, the volumes of grapes inspected for
export in the 2022/23 season were expected to decrease by only
8% in comparison to 2021/22 season figures. This estimate was
released by the South African Table Grape Industry Association (SATI),
headquartered in Paarl, South Africa, which estimated a crop total of
approximately 71.7-million cartons (4.5kg equivalent).
SATI noted how farmers have focussed on crop-load management
and quality to overcome logistical issues. Some regions are growing
more white seedless grapes and producers are paying attention to the
quality of grapes, both on-farm and during the cold-chain process.
Exports of South African grapes and wine to China are on
an upward trend. The imposition in 2020 of prohibitive tariffs on
Australian imports by China helped to boost that trend.
Credit: CWG
Both wine and grape
production are supported by
the Western Cape Department
of Agriculture which offers
technology, research and
development, agricultural
training and analytical services at
plant pathology and water and
soil laboratories.
Wine
The wine and brandy industry
has set about creating a new
strategic framework in response
to the various economic and
geopolitical shocks. With wine
tourism disappearing during
Covid-19 lockdowns and input
costs rising, the industry has
chosen to strategise for a more
sustainable future.
Led by Vinpro, the wine
industry organisation which
represents South African wine
grape producers, wineries and
wine-related businesses, a new
strategic framework, the Wine
Industry Strategic Exercise
(WISE2025), and the Agricultural
and the Agro-Processing Master
Plan (AAMP) have been created.
For some time, South African
winemakers have been aiming
for better quality instead of
WESTERN CAPE BUSINESS 2023
24

Avant-Garde SA_0218633165
FROM
OUR TABLE
TO YOURS
CREATING A PROGRESSIVE, EQUITABLE AND
SUSTAINABLE TABLE GRAPE INDUSTRY
TABLE GRAPES OF OUTSTANDING QUALITY AND TASTE, WHICH ARE RESPONSIBLY GROWN IN
SOUTH AFRICA TO MEET THE HIGHEST GLOBAL STANDARDS, START THE JOURNEY FROM THE
FOOT OF TABLE MOUNTAIN TO REACH MARKETS AND TABLES AROUND THE WORLD.
Assisting producers to retain, grow and
optimise markets is the most important
function of the South African Table
Grape Industry (SATI), an enabling grower
association. SATI represents growers on
key government and industry initiatives
aimed at creating more opportunities from
ownership to accessing new markets in a
sustainable way.
SATI assists growers with industry
information, transformation, research,
technology and technical transfer, as
well as training and education with the
objective to establish South Africa as the
Preferred Country of Origin for the world’s
best tasting grapes.
THE NEXT TIME YOU HAVE GRAPES, MAKE SURE THEY COME FROM OUR TABLE!
63 Main Road, Paarl | P.O Box 2932, Paarl 7620
+27 21 863 0366 info@satgi.co.za | satgi.co.za
linkedin.com/company/satgi @sati_sa

OVERVIEW
greater volumes. Which is not to say that volume is being ignored.
Wesgro and WOSA (Wines of South Africa) are cooperating on
expanding the Chinese market.
The SADC Economic Partnership Agreement gives produce from
the region full or partial exemption from duties on exports into the
EU. The three biggest markets by value and volume are the UK,
Germany and the Netherlands.
There are over 3 500 wine producers in South Africa, with the
large majority located in the Western Cape. Wine is produced by
estates, independent cellars and producer cellars or co-operatives.
The Distell group runs five distilleries and seven wineries in the
Western Cape and produces about a third of the country’s natural
and sparkling wine.
South Africa is the eighth-biggest wine producer globally and
produces about 4% of the world’s wine.
Membership of the Cape Winemakers Guild (CWG) is by invitation
and includes some of the best winemakers in the country. Members
get together to taste wines from around the world and share their
knowledge and ideas.
ONLINE RESOURCES
Cape Winemakers Guild: www.capewinemakersguild.com
SA Wine Industry Information & Systems: www.sawis.co.za
South African Table Grape Industry: www.satgi.co.za
Vinpro: www.vinpro.co.za
The Nedbank Cape Winemakers
Guild Auction is one of the great
events in the wine calendar. In
2022, two of the top four wines
were white wines and both were
produced by female winemakers –
Samantha O’Keefe of Lismore Estate
Vineyards and Andrea Mullineux
(Mullineux & Leeu).
The Lismore Valkyrie
Chardonnay 2021 from Greyton
was knocked down for an average
of R1 743 per bottle while the
Mullineux Trifecta Chenin Blanc
2020 from the Swartland sold at
R1 633.
The highest average price
realised was R2 457 per bottle for
the Kanonkop CWG Paul Sauer
2019. Auction prices were 30%
higher than in 2021, as 30% of
the lots were sold to international
bidders. Strauss & Co auctioned
513 lots at a hammer price just
shy of R14-million, resulting in an
average bottle price of R1 227. ■
Grower association is creating opportunities
The South African Table Grape Industry
(SATI) represents growers on key
government and industry initiatives
aimed at creating more opportunities
in the sector, from ownership to accessing
new markets in a sustainable way.
SATI assists growers with crucial industry
information, transformation, statistics, research,
technology and technical transfer as well as
training and education with the aim of establishing
South Africa as the Preferred Country of Origin for
the world’s best-tasting grapes.
South Africa boasts five major table grapegrowing
regions in South Africa. Their differences
in soil and climate enable growers to supply the
markets from November to May. The early season is
dominated by varieties from the Northern Provinces
and the valleys of the Orange and Olifants rivers.
This is followed by later-season varieties grown
in the Berg River and Hex River Regions. Both of
these regions are situated in the Western Cape,
positioning the province as a large contributor to
South Africa’s table grape industry.
The Berg River Region comprises 4 674
hectares of vines planted and is well-known for red
seedless varieties. The region contributes to direct
employment by supporting approximately 3 772
permanent and 19 521 seasonal jobs.
The Hex River Region, also well-known for
red seedless varieties, comprises 6 394 hectares
of vines planted. The region contributes to direct
employment by supporting approximately 4 791
permanent and 13 885 seasonal jobs.
Collectively, the two regions exported a total
of 44 409 320 4.5kg equivalent cartons of table
grapes in the 2021/22 season.

Shaping a sustainable wine future
Five areas are to be targeted to reach strategic goals.
By Rico Basson, Vinpro MD
The South African wine industry is a unique
asset to the country. It is the eighth-largest
wine producer in the world and lures thousands
of local and international visitors to
the Cape Winelands, generating significant revenue
for the economy and helping to build and maintain
a strong brand reputation for the country.
The South African wine and brandy industry
contributes R55-billion to GDP and R17.9-billion to
tax every year. The industry employs 269 096 workers
with a total household income of R19.1-billion. It is
the second-largest agri-exporter in the country to
the value of R10.2-billion and wine tourism employs
12 878 employees, contributing R7.2-billion to GDP.
During the Covid-19 pandemic, the wine
industry lost nearly a quarter of its sales due to the
alcohol bans while tourism stopped. Rising input
costs together with downward pressure on prices
put further pressure on an already fragile industry.
This prompted the wine industry to establish
a new strategic framework, the Wine Industry
Strategic Exercise (WISE2025) and the Agricultural
and Agro Processing Master Plan (AAMP). Recent
shocks have set back the industry’s turnaround
strategy and required a supportive policy
environment to help stabilise the industry and
place it on a sustainable footing.
Five areas have been identified to reach the
new strategic goals for the wine industry. These
include rebalancing the local market-pricing
mix towards higher-value cultivars, capturing
more growth at higher price points, growing
higher-priced exports in key markets enabled
by improved access, more than doubling wine
tourism from the 2015 baseline by 2025, as well as
accelerating black ownership.
WISE2025 has the vision to create a robust,
adaptable and competitive wine and brandy
industry. For this we must optimise our diverse
resources to deliver sustainable value. Our new
strategy has four very important strategic outcomes:
a transformed and responsible value chain, a loyal
and growing local market base, an established
and enviable position in the global market and
sustainability must be at the core of all we do.
Wine industry priorities included in the
AAMP include market expansion, improving
market access and trade facilitation, resolving
policy ambiguities and creating an investmentfriendly
climate. ■
About Vinpro
Vinpro is a non-profit company which represents
close to 2 600 South African wine producers,
cellars and industry stakeholders. It keeps its
members and the broader industry informed
of industry trends and technical expertise and
renders specialised services ranging from soil
science to viticulture, agricultural economics and
transformation and development.
CONTACT DETAILS
Telephone: +27 21 276 0429
Email: info@vinpro.co.za
Website: www.vinpro.co.za
27
WESTERN CAPE BUSINESS 2023

Oil and gas
The Astron refinery is set to reopen.
Credit: Astron Energy
Astron Energy announced that it intended reopening its
Cape Town refinery before the end of 2022, having closed
the facility for repairs in 2020 after a fire.
Astron’s statement had added significance in the context
of the closure of Durban’s two refineries in 2020 and 2021, which
left the Sasol/Total inland Sapref refinery as the country’s only
functioning facility. When that refinery temporarily shut down in July
2022 because of delays in the supply of crude oil, more concern was
raised about the country’s refining capacity.
Astron refinery had been producing about 100 000 barrels per day
using feedstock from West Africa, a source which will be reinstated.
Cape Town’s oil refinery was previously named Chevron, but with the
$973-million purchase of Chevron’s downstream assets in South Africa
by Off The Shelf Investments (OTS), it was rebranded as Astron. The
Caltex service-station brand was retained. OTS is the Black Economic
Empowerment (BEE) partner of mining giant Glencore, who financed
the deal. The refinery in Milnerton produces petrol, diesel, jet fuel and
liquefied gas for the Western Cape and for export to other African
countries. The Western Cape spends R76- billion annually on crude oil
imports and exports refined petroleum to the value of R13.2-billion.
Exploration
Important public meetings relating to environmental concerns were
set to take place in late 2022 and January 2023. Recent court cases
relating to seismic activity off South Africa’s Wild Coast has shone
the spotlight on the public participation process when it comes to
offshore exploration for gas and oil.
WSP Group Africa has been appointed by the consortium which
has discovered gas reserves off the coast of Mossel Bay to run the
SECTOR INSIGHT
TotalEnergies and its
partners have submitted a
request to produce.
environmental and social impact
assessment (ESIA) for their
proposed offshore production.
Having notified Petroleum Agency
South Africa of their intention to
produce, TotalEnergies EP South
Africa (TEEPSA), together with its
joint venture partners, QatarEnergy,
CNR International (South Africa)
Limited and a South African
consortium, MainStreet 1549, are
obliged to run a public process,
having successfully explored the
area allocated to them off the
south-east coast of South Africa.
The same companies and
others are also applying for
environmental authorisation to
undertake exploration activities in
Block 5/6/7 between Cape Town
and Cape Agulhas, approximately
60km from the coast at its closest
point and 170km at its furthest, in
water depths between 700m and
3 200m.
WESTERN CAPE BUSINESS 2023
28

OVERVIEW
Furthermore, potentially important finds were found off the coast
of Namibia early in 2022. Shell announced that it had made significant
oil and gas discoveries in the southernmost sector of its Orange Basin
offshore Namibia but the area is in the same sedimentary basin as South
African offshore territory. The geological sedimentary basin extends to
offshore Cape Town and out to sea, stretching over 160 000km². The
rights to the South African southern section of the basin are held by Shell
and its partners TotalEnergies and PetroSA.
Petroleum Agency South Africa (PASA), which encourages
exploration and regulates the oil and gas industry, has noted the
significance of international oil companies committing to exploration
off South Africa’s coast.
Oil and gas infrastructure
The Saldanha Bay Industrial Development Zone Licensing Company
(SBIDZ-LC) has announced the start of phase one of the development
of the main infrastructure of the IDZ. Located within the southern
hemisphere’s deepest and biggest natural port, the company will
spend R3.5-billion on developing 356ha of space to enable the port
to offer a wider variety of services. A floating dock, ship-lift facilities
and marine service jetties will be among the new services created.
Ultimately, the seven-part development plan will see the SBIDZ
become a South African Freeport, a Special Economic Zone and
customs-controlled area within a port, dedicated to the oil, gas and
marine sector. The three main exploration and production customer
groups being targeted are:
• Drilling companies: Office space, warehousing, logistical facilities
and support services.
• Petroleum companies: Office and warehousing space for an
operational base close to active fields.
• Oilfield service companies: 24-hour operational nodes along the
coast, in the form of office spaces and warehousing bases. In sites
such as Offshore Supply Bases [OSSBs] and/or quaysides for supply
and refuelling purpose.
The SBIDZ-LC has established the Saldanha Bay Innovation Campus
which aims to promote collaboration between academic institutions,
industry, government and the local community specific to marine and
ONLINE RESOURCES
Petroleum Agency South Africa: www.petroleumagencysa.com
Saldanha Bay Industrial Development Zone: www.sbidz.co.za
South African Oil and Gas Alliance: www.saoga.org.za
Western Cape Maritime Cluster: wcmc.org.za
Block 5/6/7 exploration location.
Credit: TotalEnergies
energy research, development
and innovation. It also intends
supporting entrepreneurs
and new ventures through
incubation and acceleration
programmes.
The Western Cape’s status
as an oil and gas hub has been
enhanced with the opening
of an open-access liquefied
petroleum gas (LPG) import and
storage terminal at Saldanha Bay.
The Bergun terminal,
comprising 12 tanks located
on the Eastern Mole of the Port
of Cape Town, is connected by
pipeline to the Astron refinery.
Large quantities of oil are
transported around the Cape
of Good Hope every year: 32.2%
of West Africa’s oil and 23.7% of
oil emanating from the Middle
East. Problems in the container
ship market have caused
some stress in the local sector
but the long-term prospects
for shipping and oil and gas
are still strong enough for
national government to pursue
Operation Phakisa (which
includes a strong maritime
economy push) and for Transnet
National Ports Authority to
spend heavily on upgrading the
nation’s ports. ■
29 WESTERN CAPE BUSINESS 2023

FOCUS
Gas could bolster the
Western Cape economy
Applications to Petroleum Agency South Africa for production rights hold
enormous potential for a wide-ranging economic stimulus.
The revival of the Mossgas gas-to-liquid refinery outside Mossel Bay could spark a gas-market boom.
In September 2022 TotalEnergies and its partners
submitted an application for a production right
to Petroleum Agency South Africa (PASA) for its
recent discoveries in Block 11B/12B off the coast
of Mossel Bay.
This is an event that is even more exciting than
the initial finds of significant resources in the blocks
because if production happens, then the gas-toliquid
(GTL) refinery at Mossel Bay that has run out
of feedstock could live again. This would have a
significant economic impact, not only on the town,
region and province, but on the national economy.
The project is not quite “shovel ready” as the
company and its associates are still to go through
what is known as a “Gas Market Development
Period”. This is essentially a feasibility study.
Block 11B/12B is in the Outeniqua Basin
approximately 175 kilometres off the southern
coast of South Africa, with the coastal town of
Mossel Bay being the closest settlement. The block
contains the Brulpadda and Luiperd discoveries
which were made in 2019 and 2020. Both wells
were drilled by Odfjell Drilling’s Deepsea Stavanger
semi-submersible rig.
Although the consortium is giving up the rights
to a certain part of the original block, TotalEnergies’
selected block will still cover about 12 000km2.
Economic benefits
An oil-discharge terminal was created in the sea
off Mossel Bay in 1960 but it was not until the
commissioning of the GTL refinery in 1992 that
the town experienced a boom related to these
gas facilities.
After many years of production, the Mossgas
project ran out of feedstock. In 2019 President Cyril
Ramaphosa announced in parliament that the
facility would close down. Some estimates put the
number of potential job losses at 1 200.
However, if the above-mentioned feasibility
returns a positive answer, the GTL refinery could be
restored to full production and profitability, saving
WESTERN CAPE BUSINESS 2023
30

those jobs. A complete shutdown
and abandonment of this refinery
would not only lead to job losses at
the refinery, but the effects would
reverberate throughout the town of
Mossel Bay and the Southern Cape
region since the refinery contributes
about R2-billion a year, or 26% of
the Mossel Bay economy, and 6% to
the Southern Cape economy when
producing at full capacity.
If this gas were to be piped to Mossgas,
then instead of spending about R12-billion on
decommissioning the plant, the facility could
instead start generating R22-billion in taxes
and royalties and save South African taxpayers
R26.5-billion through not having to import oil
and refined products.
PASA estimates that the gas found in these
blocks could produce 560-million cubic feet per
day of gas for more than 15 years. TotalEnergies’
expenditure on stream phase one could amount
to $3-billion in 2027 and create 1 500 direct jobs,
5 000 indirect jobs and increase the country’s gross
domestic production by R22-billion.
The plan is to run the gas via a pipeline to a
new fixed-steel platform, and from there to use
the existing pipeline to get the gas to Mossgas.
Up to 18 000 barrels per day of condensate
and 210-million cubic feet per day (MMcfd)
are expected to be pumped to the facility. Gas
condensate is a hydrocarbon liquid stream
separated from natural gas and is used for making
petrol, diesel and heating oil.
Furthermore, gas from the discovered blocks
has the potential to replace more than 2 300MW
of diesel-fired electricity generation in Gourikwa,
Dedisa and Ankerlig, thereby reducing the carbon
emissions from these plants by more than 50%
while eliminating sulphur oxide and nitrogen
oxide emissions, which are also harmful to the
environment. In this way, gas can be seen as a
bridge to a lower-carbon future in South Africa.
PASA’s role
At the same time as TotalEnergies was applying to
start producing, commercial operations of Tetra4’s
natural gas project in the north-eastern Free
State came on stream. These two events prove
that investors continue to see the value of South
African resources.
Both of these projects came about through
the licensing authority of Petroleum Agency South
Africa (PASA), reporting to the Minister of Mineral
Resources and Energy (DMRE). PASA regulates and
monitors exploration and production activities and
is the custodian of the national exploration and
production database for petroleum.
In terms of strategy, the agency actively
seeks out technically competent and financially
sound clients to whom it markets acreage,
while ensuring that all prospecting and mining
leases are for the long-term economic benefit
of South Africa. As custodian, PASA ensures that
companies applying for gas rights are vetted
to make sure they are financially qualified and
technically capable, as well having a good track
record in terms of environmental responsibility.
Oil and gas exploration requires enormous
capital outlay and can represent a risk to workers,
communities and the environment. Applicants
are therefore required to prove their capabilities
and safety record and must carry insurance for
environmental rehabilitation.
Environmental issues are increasingly playing
a big part in discussions about how best to utilise
South Africa’s natural resources. As part of an
attempt to engage in a broader discussion on
policy issues, a joint colloquium was held in 2022
on the subject of how to balance South Africa’s
energy needs with the country’s climate change
commitments. The colloquium, and several
online events which prepared for and anticipated
the main event, was jointly hosted by the DMRE,
the Department of Forestry, Fisheries and the
Environment (DFFE) and PASA. ■
Credit: Shutterstock
31 WESTERN CAPE BUSINESS 2023

Energy
Batteries could make a difference.
Credit: APPA
Battery energy storage systems (BESS) may become part
of the arsenal of the City of Cape Town in its battle against
loadshedding. Although BESS only makes up a small part of
the national energy plan (Integrated Resource Plan 2019), if
combined with renewables, it could prove a useful complement to
the city’s other plans.
At the launch of the 2022 Solar Power Africa Conference, Cape
Town Mayor Geordin Hill-Lewis unveiled plans for the city to procure
300MW of power from independent power producers. The city – and
the province – intend to be the first entities to be freed from the
stresses and strains that come with loadshedding. It was estimated in
2021 that loadshedding cost the Western Cape economy R75-million
per stage, per day.
Tenders for the city have been opened and at provincial level,
24 municipalities have now been given the legal go-ahead to allow
for private generation of solar PV energy. In addition, 19 of those
municipalities allow private generators to be compensated for
feeding back into the grid, a major breakthrough for the potential
take-up by the public.
A Request for Information for the Municipal Energy Resilience
(MER) initiative has been issued, which has generated interest from
more than 100 potential energy generation projects. MER has been
rolled out in six municipalities, Drakenstein, Mossel Bay, Overstrand,
Saldanha Bay, Stellenbosch and Swartland. The Green Economy
Unit in the Western Cape Department of Economic Development
and Tourism is leading the project.
SECTOR INSIGHT
The provincial government
has a Green Economy Unit.
The Green Economy Unit is
not the Western Cape Provincial
Government’s only investment
in resilience. A market
intelligence report covering
energy, renewable energy,
water and waste was created by
GreenCape to map the assets
and challenges in these areas.
In addition to trying to
attract green investment into
the province, the Western
Cape is working for improved
regulations related to smallscale
embedded generation
(SSEG). The City of Cape Town
also wants to be able to rent
out its infrastructure to a power
producer who can supply a
user via that infrastructure. This
is known as “wheeling”. A start
WESTERN CAPE BUSINESS 2023
32

OVERVIEW
was made with the Darling wind farm, but more work needs to be
done on the legislative framework.
New gas sources
The Western Cape is lobbying hard for the national Department of
Energy to allow Saldanha Bay to be a site for a gas-to-power plant. If a
gas plant is built at Saldanha, then it could be a catalyst for the use of gas
in many other sectors such as manufacturing and residential.
Recent gas finds by TotalEnergies off the coast of Mossel Bay and
off the west coast will accelerate the drive to switch to gas.
The idea of home-owners being able to sell surplus electricity
from rooftop solar systems was previously restricted to the Cape
metropolitan area. The application of the provincial government’s
Energy Security Game Changer has expanded this provision (via
bylaws) to the whole province.
The City of Cape Town has signed an agreement with the United
States Agency for International Development and the Southern
Africa Energy Programme to look for ways to make solar PV more
accessible. High costs of installation often preclude residents from
taking the solar PV option for their homes.
The Western Cape is positioning itself as a green business hub and
is working to find energy alternatives for households and businesses.
Greater Cape Town is home to 70% of South Africa’s manufacturers of
renewable components.
GreenCape is an agency that does research and runs projects
in areas such as energy efficiency, waste, water and sustainable
agriculture. It is a joint initiative of the City of Cape Town, Wesgro and
the Provincial Government of the Western Cape.
GreenCape states that nearly R700-million in green technology
investments has already been attracted to the Atlantis Special
Economic Zone, creating 300 jobs. A further R3.7-billion is anticipated
by 2030, which will add more than 3 000 new jobs. Spanish wind
tower manufacturer Gestamp Renewable Industries was an early
investor in the zone.
The Koeberg nuclear power station 30km north of Cape
Town is South Africa’s, and Africa’s, only nuclear power station.
The 1 840MW plant is due to have its steam generators replaced
ONLINE RESOURCES
Atlantis Special Economic Zone: www.atlantissez.com
GreenCape: www.greencape.co.za
South African Renewable Energy Technology Centre: www.saretec.org.za
South African Wind Energy Association: www.sawea.org.za
in 2022, a necessary condition
for having its licence
extended beyond 2024. It was
commissioned in 1985.
The early rounds of the
Renewable Energy Independent
Power Producer Procurement
Programme (REIPPPP) continue
to produce regular dividends.
The Paardekraal East Wind
Farm, which is located about
80km north-east of Ceres,
is in the Witzenberg Local
Municipality. The 110MW
project was constructed
by the Concor and Conco
Consortium, Siemens Gamesa
Renewable Energy supplied
and installed the wind turbines,
the towers were built by GRI in
Atlantis and Mainstream Asset
Management South Africa will
manage the operations.
The support of two of South
Africa’s biggest institutional
investors, the Industrial
Development Corporation
(IDC) and the Public Investment
Corporation (PIC), has been crucial
in getting the renewable energy
sector off the ground. They have
also helped communities fund
their participation in community
trusts. Typically, a community trust
is established to represent the
interests of the local community.
Investments made by
African people into the
renewable energy programme
are not limited to community
trusts. Pele Green Energy is
engaged with a photovoltaic
plant at Touwsrivier in the
Western Cape as a shareholder
and as a provider of construction
management services. ■
33
WESTERN CAPE BUSINESS 2023

OVERVIEW
Manufacturing
Local clothes makers are expanding.
TFG, which includes Foschini, TotalSports and Markhams
among its brands, has been buying up clothing factories for
nearly a decade, giving it the ability to respond more quickly
to fashion trends.
Among TFG’s acquisitions were Prestige Clothing Maitland and
Prestige Clothing Caledon. The group then spent R75-million on
expanding the factory in Caledon. TFG is ramping up production of
clothing and expects to increase staff from just over 3 000 to more
than 5 000 in 2023. Cape Union Mart, a well-established brand with
a speciality in camping, hiking and other outdoor gear, is the largest
unlisted clothing retailer in South Africa. What is less well known
is that the company’s subsidiary, K-Way, makes its own products.
About 200 staff members at a factory in the Cape Town suburb of
Ottery produces 40 000 garments every month.
Electricity usage at the factory has been cut by up to 35% annually
by the installation of solar panels. The company is working with UNEP,
the United Nations Environmental Programme, to assess its carbon
footprint per garment. Waste is reduced by using second-hand boxes
to deliver all repairs. Member companies of the Cape Clothing and
Textile Cluster have reported hiring 35% more staff in four years.
Altogether, about 23 600 people are employed in the province.
In October 2022, Damen Shipyards Cape Town delivered a second
sophisticated patrol vessel to the South African Navy. The company is
a subsidiary of Damen International Shipyards Group, which recently
ONLINE RESOURCES
Cape Clothing and Textile Cluster: www.capeclothingcluster.org.za
Invest Cape Town: www.investcapetown.com
Western Cape Maritime Cluster: www.wcmc.org.za
Credit: K-Way
SECTOR INSIGHT
Damen Shipyards has delivered
a second patrol vessel.
signed an agreement to
manufacture hydrogen-powered
Commissioning Service Operation
Vessels (CSOVs) with two
international partners. Given that
South Africa is making plans to
develop a hydrogen industry and
become an exporter of “green
hydrogen”, this innovation could
lead to a new subsector.
Bloomberg reported in
2021 that Paramount Maritime
Holdings, a subsidiary of the
Paramount Group, was building
26 boats for a combined value of
$60-million. This is in response to
piracy in the Gulf of Guinea.
Invest Cape Town reports that
the city’s boatbuilding industry
is the second-largest producer
of recreational catamarans in
the world, after France. The city’s
companies export 80% of the
products that they produce and
attract a positive trade balance of
approximately $73-million annually.
Robertson & Caine’s facility in
Woodstock produces three boats
a week for the international market.
With a staff complement of 1 350,
the company is a leader in power
catamarans and sailing catamarans.
Nautic Africa makes larger
vessels, including patrol,
defence, oil and gas platform
and commercial vessels while
companies such as Smit Amandla
Marine and De Beers Marine offer a
wide range of services. ■
WESTERN CAPE BUSINESS 2023
34

Construction and property
Social housing projects are accelerating in Cape Town.
OVERVIEW
February 2022 marked a milestone for the R3-billion Conradie
Park mixed-income housing project when the first 66
residents received their keys.
Conradie Park (pictured) is a joint venture between the
City of Cape Town, the Provincial Government of the Western Cape
and the non-profit company associated with Concor Developments,
Own Haven Housing Association. Located on the site of the old
hospital, the project is well-served by transport lines and lies at
the intersection of Pinelands and Thornton. There are 3 600 flats
available for various income categories.
Across the city, more than 6 500 social-housing units are planned
or in development on 50 sites identified by the municipality. These
include parts of the CBD, along the Voortrekker Road corridor and at Salt
River, where a 1 800-unit project will deliver 600 social-housing units. In
Woodstock, social housing company Sohco has put the 243-flat project
out to tender and occupation should take place in early 2024.
The Provincial Government of the Western Cape is in
partnership with the University of the Western Cape to deliver more
than 2 500 beds for student accommodation. Public comment has
been made on a proposed new Inclusionary Housing Framework,
which according to the State of the Province Address, “leverages
our development planning powers” and aims to increase the
number of mixed-use developments in the future.
FNB, which publishes a regular property barometer, has done an
in-depth analysis of previous crises to understand the post-Covid
property market. According to John Loos, a property strategist at
FNB Commercial Property Finance, the most vulnerable sector
is likely to be Retail Property. Smaller neighbourhood shopping
centres, with more essential items and greater convenience, will be
less vulnerable.
The lockdown accelerated the trend for people to work from
home, and so the Office Property sector will come under pressure.
Many companies will be reducing office space, but this is in fact a
speeding up of an existing trend.
At the Victoria & Alfred Waterfront, recovery from the Covid
pandemic seems to be progressing well. Having given rental
relief to various tenants of more than R350-million, the owners of
ONLINE RESOURCES
Construction Industry Development Board: www.cidb.org.za
SA Institute of Architects: www.saia.org.za
Western Cape Property Developers Forum: www.wcpdf.org.za
SECTOR INSIGHT
New headquarters have been
built in the Waterfront.
the Waterfront, Growthpoint
Properties and the Public
Investment Corporation,
continued to spend on new
developments, including a home
for South African cuisine at the
newly-created Makers Landing,
which is located next to the cruise
terminal. The project had support
from the Jobs Fund.
Plans are being rolled out to
add 80 000m² to the available
space within the Waterfront’s
precincts. Asset manager Ninety
One has a new headquarters in
the Waterfront and Deloitte has
built a 9 000m² office block. ■
Credit: Conradie Park
35 WESTERN CAPE BUSINESS 2023

OVERVIEW
Transport and logistics
The upgrades to the N7 are moving ahead.
SECTOR INSIGHT
A feasibility study has been
done on Cape Town taking
over rail services.
The Hopefield interhange links the R45 to the N7. Credit: SANRAL
The ongoing upgrades to the N7 highway which runs up
the west coast are bringing economic benefits to the
Swartland region. Martin & East were awarded the contract
to widen a 25km section of the road near Moorreesburg
and subcontracted 30% of the work to small businesses, in line with
South African Road Agency’s transformation policies.
SANRAL started the upgrade of the N7 with the Melkbosstrand
interchange in 2012 and has subsequently completed the
Hopefield interchange. Altogether eight interchanges have been
constructed and 46 major concrete structures built and upgraded.
To the end of 2021, R333-million had been spent on “targeted
labour” which includes black-owned entities, women-owned
businesses, youth-owned businesses and persons with disabilities.
A total of R529-million had been spent on SMMEs.
The City of Cape Town conducted a feasibility study in the
course of 2022 on taking over the management of passenger rail
services from PRASA. The city wants to have a fully-integrated
system, which would include rail.
In 2022 the city’s Urban Mobility Directorate published an
updated Comprehensive Integrated Transport Plan (CITP), outlining
the strategies and plans for improving the transport environment
in the metropole for five years to 2028.
A range of new factors were considered in drafting the plan, such
as the virtual disappearance of passenger rail as an option, the impact
of the Covid-19 pandemic and the new trend towards remote working.
ONLINE RESOURCES
Airports Company South Africa: www.airports.co.za
Passenger Rail Agency of South Africa: www.prasa.com
South African National Roads Agency: www.sanral.co.za
Transport and Urban Development Authority: www.tct.gov.za
According to the document, 58%
of commuters use private vehicles
to get to their destinations; 22% use
minibus-taxis; 9% use bus services
such as the MyCiTi and GABS; 2% use
rail (a decline of 95% for the period
2012 – 2022); and about 10% walk.
The Transport and Urban
Development Authority (TDA), located
within the municipality, is responsible
for planning, costing, contracting,
regulating, monitoring, evaluating,
communicating, managing and
maintaining the City of Cape Town’s
transport infrastructure, systems,
operations, facilities and network.
The provincial government is in the
process of following the city’s lead
with the establishment of a Mobility
Department which will monitor the
province’s transport programmes,
such as financial support to bus and
taxi services, the transport regulation
mandate and extensive traffic
management operations.
Cape Town International
Airport regularly wins awards and
is routinely named Africa’s Leading
Airport. George Airport now
welcomes over 800 000 passengers
each year and also serves as a
national distribution hub for cargo
such as flowers, fish, oysters, herbs
and ferns. George Airport is Africa’s
first airport to be solar powered.
Plettenberg Bay Aerodrome
hosts CemAir which flies to and from
Johannesburg and Cape Town. ■
WESTERN CAPE BUSINESS 2023
36

UNIVERSAL LINK GROUP
Where service is paramount
Universal Link Group, established in 1999, is a market
leader in the logistics and distribution services
sector. We are fast becoming one of South Africa’s
leading e-commerce warehousing, order fulfillment
solutions driven companies with a BBBEE Level 1
accreditation. We offer access to a comprehensive
logistical supply chain service. Our extensive
knowledge assures our clients of a smooth process
flow and desired outcome.
MISSION
We provide strategic solutions for all your
procurement, courier, e-commerce fulfillment
and warehousing, import and export distribution
systems designed to meet your requirements. We
are an accomplished procurement office, taking the
pressure out of your business of finding the best
solutions, equipment and assistance to obtaining,
locating and implementing your requirements, giving
you a competitive advantage and leading edge.
PLEDGE
We are a team dedicated to service excellence
through the process of simplicity and transparency,
making your experience seamless and stress free. We
are committed to explore and adapt innovative ideas,
that achieve maximum supply chain efficiencies.
SERVICES
• Distribution and Warehousing
• Domestic and International Courier
• e-Commerce Order-Fulfillment
• Inventory Management System
• Pick and Pack Services
• Storage (long-term and short-term)
• Mailing and Distribution Services
• Packaging Solutions
• Pharmaceutical Distribution
• Wine Storage and Distribution
WAREHOUSES
• Cape Town: 1 170m²
• Johannesburg: 350m²
• Flexible storage options, including heavy-duty racking,
a high-value goods area and freeflow areas.
• Storage methodology eliminates errors by not shelving
like products together, making picking easier.
Contact details
Unit 22, 31 Junction Road, Tygerberg Junction, Parow Industria 7493
Tel: 021 951 4200 | Cell: 063 575 3447 | Email: info@ulgroup.co.za | Website: www.ulgroup.co.za

OVERVIEW
Tourism
Air Belgium has started flying to Cape Town.
The Table Bay Hotel. Credit: Sun International
Grand Parade Investments (GPI), which has sold some of its
non-core assets such as Burger King, will delist from the
JSE. The company intends to exit the gaming business
where it has a minority share in Sun Slots, which operates
limited payout machines (LPM). GPI is a shareholder in companies
that operate casinos in the Western Cape and, with a 15% stake in
SunWest International, GPI is connected to the Table Bay Hotel and
the Cape Town International Convention Centre.
The landing of an Air Belgium jet at Cape Town International
Airport in September 2022 was significant in several ways. The Airbus
on the runway signalled that the Access Cape Town campaign, an
initiative to entice airlines to Cape Town, was back on track and it
opened up the possibility of increased numbers of tourists and
goods moving between the city and Belgium.
Air Access created more than 750 000 new inbound seats between
its inception in 2015 and 2020, adding something like R6-billion to the
provincial economy.
Belgium is the Western Cape’s seventh-largest European export
market, with R2.61-billion in goods exported in 2021, up 81.5%
from 2020. The first flights of Air Belgium will not be direct to Cape
Town, but as volumes increase it is expected that Cape Town will
get its own direct flight. Two-way passenger traffic showed a 50%
recovery for the first six months of 2022, with 8 300 passengers
ONLINE RESOURCES
Cape Nature: www.capenature.co.za
Garden Route and Klein Karoo: www.visitgardenrouteandkleinkaroo.com
George Tourism: www.georgetourism.org.za
SECTOR INSIGHT
The region wants to build on
its reputation as a remote
working destination.
flying between Brussels and
Cape Town and for the first six
months of 2022, 500 tons of air
cargo were flown between the
two destinations.
While the air travel news
showed that Covid is starting
to recede as a factor, the
Western Cape wants to build
on the reputation it built
up during the pandemic
as a good destination for
remote working. This is
another motivation behind
the provincial government’s
support of digital connectivity.
The Western Cape Provincial
Government wants to promote
education in the arts. Based
on research which found that
6% of employment in South
Africa is in the cultural sector,
the Western Cape will expand
the traditional STEM emphasis
to include two additional As:
Arts and Agriculture. There are
60 000 people employed in the
culture sector in the province.
A landmark on the Sea
Point boulevard, the Winchester
Hotel, reopened in 2021 after
new owners Newmark spent
R90-million on a major revamp.
Having been built to house
residential apartments, what
became Winchester Gardens was
famous for its jazz and Sunday
teas. The 76-room hotel is now a
luxury boutique hotel. ■
WESTERN CAPE BUSINESS 2023
38

House of Kreationz – Your Solution for Stylish Events
House of Kreationz is a leading events décor
styling company, with branches in the Western
Cape and Gauteng. Our extensive client-base
of brands and companies includes trendsetters
and leaders in their respective fields.
Through the collective team we possess a
wealth of experience that spans over 20 years.
The company focuses on high-end event styling,
conceptualising and curating each event
into a unique experience. No job is too big or
small for our team of creative event planners,
meticulous coordinators, resourceful project
managers and problem-solving thinkers,
Started shortly after the devastating global
pandemic, the birth of House of Kreationz
was a huge leap of faith. Kreationz, as we are
commonly known, wasted no time in filling a
vacuum in the events industry. The events
market needed an injection of innovative
ideas, fresh creativity and a spiced-up services
offering that would leave clients with an event
experience that will be talked about long after
the last chair is packed away and every power
cord is rolled up.
The Kreationz offering is more than just contemporary
event styling – the company’s alliances
and contacts ensure a seamless turnkey
project management solution.
Our overall offering includes, but is not limited
to, event conceptualization and styling curation,
management, co-ordination, production
and planning.
Kreationz boasts a clientele that includes
major clients like the CSIR, Big Concerts, ZA
Fanzone, GPA Group, Mushroom Productions,
Black Creatives, NCPC-SA and Travel with
Flair to name but a few.
BBBEE Level: 1
Key contact people:
1. Franco Beginsel Position: General Manager
2. Rufus McCarthy Position: Operations Manager
3. Natalie Koopman Position: Director
Physical address: 10 Banchory Road, Blue Valley Golf Estate,
Kosmosdal, Centurion
Tel: 010 157 3266 Cell no: 072 858 7870
Email: franco@kreationz.co.za / ops@kreationz.co.za
Postal address: 10 Banchory Road, Blue Valley Golf Estate,
Kosmosdal, Centurion
Website: www.kreationz.co.za

OVERVIEW
Education
Digital skills are in demand.
SECTOR INSIGHT
More than 1 000 new teachers
have been hired.
The Minister of Higher Education, Dr Blade Nzimande, was on
hand in October 2022 to officially open the CHIETA SMART
Skills Centre in Saldanha Bay (pictured). The Chemical
Industries Education and Training Authority, which reports
to the minister, aims for the R3-million facility to help citizens learn
digital skills.
The Provincial Government of the Western Cape has invested
more than R1.6-billion in e-learning over the last five years in response
to Covid and the demands of remote learning. A total of 1 290 schools
within the province now have broadband connectivity and there are
1 316 with computer labs and 9 992 smart classrooms (SOPA).
Ten new schools were successfully completed in 2020/21,
which has led to about 1 100 new teachers being employed.
The province’s I-CAN centres allow for public access to digital
skills programmes, WiFi and business services. The centres are
divided into zones (including Create, Study and Learn) and printing,
graphic design and laminating services are available.
The University of Cape Town joined the trend with the
creation of an online high school. The school hopes to close the
opportunity gap for poor students in under-resourced areas.
The University of Cape Town has more than 21 500 students,
720 permanent staff and 39 A-rated researchers (40% of South
Africa’s total). Stellenbosch University is linked to Stellenbosch’s
growing reputation as a technology hub. The University of the
Western Cape is home to several national research bodies.
These three institutions, plus the Cape Peninsula University of
Technology, produce approximately 12 000 science, technology,
engineering and mathematics graduates every year and host 11 000
students from other African
countries. University education is
available in George through the
Nelson Mandela University (NMU):
Saasveld is home to the School of
Natural Resource Management
and the York Street Campus
delivers courses in business and
social science, accounting and
business management.
SARETEC offers industryspecific
training in a new economic
sector. The South African
Renewable Energy Technology
Centre is managed by the Cape
Peninsula University of Technology
(Bellville campus) but it collaborates
with several other institutions and
private companies.
Unisa, the country’s biggest
distance learning institution, has
a campus in Cape Town and a
service centre in George.
Airports Company SA (ACSA),
the City of Cape Town and
the False Bay TVET College in
Westlake have combined to offer
residents of Blikkiesdorp a chance
to learn skills in brick-laying,
house-building, scaffolding and
health and education. ACSA
is investing R5-million in the
12-month certification project
and the Construction Education
and Training Authority (CETA)
will channel funds to False Bay
College for training.
In 2022 the College of Cape
Town Hospitality Department
was invited by the Kofler Group
WESTERN CAPE BUSINESS 2023
40

OVERVIEW
New business schools
Staff and students celebrate the news that four students from the
College of Cape Town’s Hospitality Department were selected to
attend and work at the 2022 FIFA World Cup.
Middle East LLC to select four N6 Hospitality and Catering Services
students to apply for an opportunity to work as Front of House
Facing Commis Chefs at the 2022 FIFA World Cup. All of the students
were from the City Campus and spent all of November and half of
December in Doha.
Specialisation Programme
A Centres of Specialisation Programme has been introduced by
the Department of Higher Education and Training to tackle priority
skills. The College of Cape Town TVET concentrates on plumbing
and automotive motor mechanics. A welding academy in Thornton
has been opened with support from the merSETA (Manufacturing,
Engineering and Related Services SETA).
Outside of the Cape metropole, Boland College looks after Stellenbosch,
Worcester, Paarl and Caledon, while the Southern Cape College covers a wide
area, from George to Beaufort West. The West Coast College also has a big
catchment area.
The Western Cape Department of Infrastructure is rolling out a skills
programme for young people in prison. The focus is on technical skills in
the built environment.
ONLINE RESOURCES
Apprenticeship Game Changer: www.westerncape.gov.za
Centres of Specialisation: www.dhet.gov.za
SA Renewable Energy Technology Centre: www.saretec.org.za
TVET colleges: www.tvetcolleges.co.za
Woodstock and Salt River are
increasingly trendy destinations,
something that is encouraged by tax
rebates and other incentives to new
businesses willing to open in that
part of Cape Town that used to be
an industrial and transport hub. Two
savvy business organisations that have
taken up new premises in the area are
the Henley Business School and the
Regent Business School.
Henley Business School will offer
four of its accredited qualifications,
three at undergraduate level, and
its honours-level Postgraduate
Diploma in Management Practice,
from its new Brickfield campus in
Woodstock. The new campus will
also host the school’s executive
education and customised
programmes for its Cape Townbased
corporate clients.
Support will be offered to Cape
Town students studying for the
Henley MBA programme, but they
will continue to be registered with
the Johannesburg campus and any
physical sessions related to the course
will still be held in Gauteng. Most of
the MBA work is done remotely.
Regent Business School
opened its new Cape Town
campus in The Boulevard Office
Park, Woodstock, in January
2023. In addition to the courses
offered by the school, students are
promised full access to the iLead
lab and Black Umbrellas business
incubation hub, entrepreneurial
skills and assisting with funding
and opening a small business.
The Mayor of Cape Town Mayor
Geordin Hill-Lewis spoke on the
occasion of the launch on the
topic, “New age teaching for the
leaders of tomorrow”. ■
WESTERN CAPE BUSINESS 2023
42

Shaping futures one
education at a time
The Shaping Futures Foundation matches corporate donations
to tertiary institutions to assist worthy students.
FOCUS
Since its founding in August 2017, the Shaping
Futures Foundation has raised in excess of
R11.5-million and provided financial assistance
to more than 150 students in tertiary education.
It also currently administers a school
feeding scheme providing daily meals to 2 800
underprivileged learners. The Shaping Futures
Foundation has assisted students in KwaZulu-Natal,
Gauteng and the Western Cape.
With a background in finance, John de Groot
spotted a mismatch in March 2017 between talented
students either not graduating or not progressing
in their studies because of a lack of funds on the
one hand, and companies with money to spend
in terms of BBBEE legislation but without the time
or resources to find the deserving students who
needed funds.
The Shaping Futures Foundation was created to
match these parties and its success over the years
has proved the truth of John’s observation.
Although his involvement in the foundation is
now as a non-executive director, John still derives
enormous joy from the knowledge that the
foundation is making a meaningful impact in the
lives of students in need. Letters of appreciation
are regularly received from students outlining the
significant impact the Shaping Futures Foundation
has had on their lives.
CONTACT DETAILS
Kayne, CPUT: I just wanted to thank you
wholeheartedly for extending a helping hand
when I needed it the most. I am studying
Information Technology at the Cape Peninsula
University of Technology.
Zainub, UCT: I am truly honoured to be one of
the recipients of the Shaping Future Foundation
bursary. Thanks to your support I will be the
first in my family to possibly acquire a tertiary
education. Thank you for investing in my dream
of achieving a
degree in computer science and
computer engineering.
Says John, “There
have been occasions where
we have managed Chloe Arkcoll to completely settle students
tertiary education Chairperson debt, allowing them to start
their post-graduate lives without the hinderance
of student debt.”
Win win
Donations to the Shaping Futures Foundation
qualify as skills development expenditure and an
18 (A) tax certificate can be issued. The latest BEE
codes encourage expenditure of between 3% and
6% of a company’s payroll for companies with
turnovers between R10-million and R50-million
per annum. The Shaping Futures Foundation
ensures this spend is allocated efficiently and
to the correct demographic profile. Established
relationships with tertiary institutions make for
synergies and could lead to hiring opportunities,
which in turn attract more points for companies.
The Shaping Futures Foundation Board
Members are all Chartered Accountants: John de
Groot; Chloe Arkcoll; Mzi Nkonyeni. ■
Address: 5 Cornwall Place, Wynberg, Cape Town, 7800
Mobile: +27 82 776 5907 | Email: chloe@shapingfutures.org.za | Website: www.shapingfutures.org.za
COMPANY REGISTRATION NUMBER: 2017/1

OVERVIEW
Development finance
and SMME support
Digital access is available for entrepreneurs.
The Business Hub is a City of Cape Town initiative that gives
advice to entrepreneurs. In the first six months of 2022, 973
entrepreneurs participated in skills training offered by the
Hub. The Hub partners with Productivity SA and the South
African Renewable Energy Incubator in promoting SMMEs.
Access to the Hub is free via Smart Cape Services at libraries in
the city or where free Wi-Fi is provided in all city-run buildings.
Another initiative to help entrepreneurs engage with the digital
world was launched in 2022 by Silicon Cape and Huawei Cloud.
Silicon Cape is a non-profit initiative that supports the creation of
a sustainable tech and entrepreneurial ecosystem. Huawei Cloud
showed 20 entrepreneurs how to accelerate the growth of their
companies through cloud adoption.
Philippi Village (pictured), an integrated, mixed-used
development, is proving a successful host to a number of dynamic
small enterprises. Established by the Bertha Foundation and The
Business Place Philippi and with seed funding from the Jobs Fund,
it is currently home to more than 80 tenants providing products,
services and training opportunities as well as job opportunities to
the local community. The sports facilities and other amenities ensure
that there is constant activity and a buzz within the development
with locals feeling a sense of ownership.
In his 2022 State of the Province address, Premier Alan Winde
quoted from the Global Startup Ecosystem Report 2021, which
stated that Cape Town is the number one performer in Africa for
technology ecosystems and is home to almost two-thirds of all
start-ups in South Africa. Winde announced the creation of an SMME
Booster Fund which will support organisations that provide business
development support.
Two of the Western Cape’s universities, Stellenbosch and Cape
Town, are among the first collaborators with the University Technology
Fund which aims to commercialise innovations and inventions coming
out of tertiary institutions. The UTF has financial clout as it is a part of the
South African SME Fund, an offshoot of the CEO Initiative which brought
ONLINE RESOURCES
Invest Cape Town: www.investcapetown.com
SA SME Fund: sasmefund.co.za
Small Enterprise Development Agency: www.seda.co.za
Small Enterprise Finance Agency: www.sefa.org.za
SECTOR INSIGHT
Philippi Village is a vibrant
small business hub.
together 50 major corporations, the
Public Investment Corporation, the
Unemployment Insurance Fund and
the Compensation Fund. Among the
businesses receiving support from
the SA SME Fund is Hyrax, a company
which emerged from research done
at the University of the Western Cape
into which HIV-positive people were
resistant to certain drugs.
The National Department of Small
Business Development (DSBD) has
several programmes to assist SMMEs
and co-operatives. The Small Enterprise
Development Agency is an agency
of the DSBD and gives non-financial
support to entrepreneurs through
training, assistance with filling in forms,
marketing and creating business plans. ■
WESTERN CAPE BUSINESS 2023
44

Business Process Outsourcing
International brands are choosing Cape Town.
“We are Africa’s BPO Capital,” says provincial Premier
Alan Winde of the Western Cape.
Rob Kane, chairman of the Cape Town
Central City Improvement District (CCID), a
public-private partnership and non-profit organisation that is
mandated to manage and promote Cape Town’s central business
district (CBD), is even more specific: “Downtown Cape Town
is a recognised technology, BPO and e-commerce hub, with
reliable infrastructure, fast Internet speeds and a commitment to
supporting a young workforce. The city is home to the most tech
start-ups on the African continent, and the BPO sector supports
call centres for global companies and online retailers with a steady
pipeline of call-centre employees.”
Ian Ohlson, a director at Lufthansa InTouch Cape Town, which
has been in the inner city since 1999 and has a staff complement
of 573, says, “We chose the CBD due to the various options
available for transport, the close proximity to shops, banks and
lifestyle options.”
Many BPO businesses are part of the CBD’s night-time economy,
which includes a vibrant First Thursday night when art galleries and
museums open their doors and the town comes alive.
Cape Town hosts 60% of the country’s BPO centres, employing
more than 50 000 workers. In 2022 it was also rated the most
sustainable city in Africa in the Corporate Knights Sustainability
Cities Index 2022 report, noted for its efforts in terms of air quality,
emissions, solid waste generation and sustainable policies, among
others. Currently there are 69 information and communication tech
companies in the Cape Town central business district (CBD) alone, of
which 25 are call centres. Included in this number are international
brands like e-commerce giant Amazon, Lufthansa inTouch and
Global Load Control.
Significantly lower costs than European competitors and growth
rates in the Business Process Outsourcing (BPO) sector that outstrip
the global rate make the Western Cape an extremely competitive
destination. According to the Everest Group Study (2018), Cape
Town’s costs for contact centre work are between 20% and 30%
lower than the costs in Eastern and Central Europe.
ONLINE RESOURCES
Business Process enabling South Africa (BPeSA): www.bpesa.org.za
Contact Centre Management Group: www.ccmg.org.za
National Department of Trade, Industry and Competition:
www.dtic.gov.za
OVERVIEW
SECTOR INSIGHT
The CBD’s night economy is
boosted by the BPO sector.
South Africa’s BPO industry
is growing twice as fast as the
world’s and three times faster
than India and the Philippines
(Invest Cape Town).
Inbound customer service
(55%), inbound sales (15%) and
debt collection (13%) comprise
the biggest subsectors of the
BPO sector in the Cape (Wesgro).
Greater Cape Town is home
to three universities, a university of
technology and several technical
colleges. Other factors in favour of
the area are the relatively neutral
accents, good financial and
telecommunications infrastructure
and the time zone being the same
or close to Europe’s. ■
Central City Improvement District
45
WESTERN CAPE BUSINESS 2023

OVERVIEW
Banking and financial services
Infrastructure funds are attracting investors.
SECTOR INSIGHT
The Cape Town Stock
Exchange is in Woodstock.
Big infrastructure projects like the Berg River Dam need financing.
Credit: WRC
Sanlam, established in 1918 as a life insurer, is now a financial
services company with five main divisions, including Corporate,
Personal Finance and Emerging Markets. Santam focusses on
short-term insurance. With its headquarters in Bellville, Sanlam
is Africa’s largest insurance company.
Sanlam Investments has launched a Sustainable Infrastructure
Fund which primarily invests in senior or subordinated debt across a
wide range of South African infrastructure assets, with the ability to
invest up to 10% in equity.
The South African state has promised a huge infrastructure drive
but in the context of climate change, the investment community is
increasingly putting emphasis on sustainability. Sanlam Group will
invest R6-billion in the fund and aims to attract a further R5-billion
from institutional investors. Investments will be made in housing,
transport, health, water, waste, communication, conventional energy
and renewable energy, a fast-growing sector with enormous potential.
The Western Cape’s evolution into a technology hub is one of the
reasons why one of South Africa’s newest stock exchanges chose to
move to the Cape and rebrand as Cape Town Stock Exchange.
This trend is also persuading banks, insurance providers, asset
managers and venture capitalists to choose to relocate. There are more
than 40 000 jobs in the technology sector (more than double the total
of Nairobi and Lagos combined, Wesgro) and formal employment in
the financial sector exceeds 50 000.
Together with business services, the financial sector comprises the
ONLINE RESOURCES
Financial Sector Conduct Authority: www.fsca.co.za
Insurance Institute of South Africa: www.iisa.co.za
South African Institute of Chartered Accountants: www.saica.co.za
biggest contributor to the
provincial economy. According
to Wesgro, 75% of the venture
capital deals that happen in South
Africa originate in the Western
Cape. Most financial firms based
in Cape Town have a long history,
some going back as far as 1845
when Old Mutual started. One
of the most successful disruptors
in recent times has been
Stellenbosch-based Capitec Bank.
The African Institute of
Financial Markets and Risk
Management (AIFMRM) aims is
to meet the demands for skills
by developing local talent. It
is supported by the Western
Cape Provincial Government,
the University of Cape Town,
Barclays Africa Group, FirstRand
and Liberty.
The head offices of financial
firms are dotted all over Cape
Town. These include Old
Mutual and Foord (Pinelands),
Futuregrowth and Coronation
(Newlands), Prudential
(Claremont), Sygnia (Green
Point), Sanlam (Bellville) and
Allan Gray (Waterfront). PSG has
its headquarters in Stellenbosch
and is well represented in rural
towns. Insurers such as Santam
and Metropolitan Life are based
in Bellville. Nomura, a Japanese
financial holding company, has
a presence in the Cape through
Nomura South Africa which offers
investment banking services. ■
WESTERN CAPE BUSINESS 2023
46

The Evolution of loveLife 1999-2021
- 22 years of promoting Youth Health
1999:
Getting SA talking
Frequently controversial,
and always on the side
of young people, loveLife
captured the imagination
of a generation growing
up in the thick of the
largest HIV epidemic on
earth by making public
one of the most taboo
topics: sex.
2000 to 2003: Building
cutting-edge programmes
loveLife combined a celebrated and controversial
multimedia campaign with in-school programmes led
by dynamic young leaders – better known as loveLife
groundBREAKERs.The loveLife Games School Sports
programme brought excitement to every corner of the
country, specific programmes for parents, an exceptionally
busy Contact Centre, and a host of community based
activities including support of other non governmental
organizations. In 2003, loveLife’s “Everyone he’s slept with,
is sleeping with you” billboard became its most popular.
2004 to 2007:
Growing our reach
Research conducted by the
Reproductive Health and Research
Unit showed interaction with loveLife
lowered odds of HIV infection,
resulting in an intensive roll-out of the
groundBREAKER programme. This
painted an optimistic picture for SA
youth and messaging steered toward
achieving this brighter future a reality
with “love to be there” campaign.
2008 to 2011: A brave new world
By 2008, new infections among young people aged between 15 to 24 had been
halved – but trends in HIV infection showed a need for targeted campaigns
toward marginalised youth most affected by the ailing economy. Through
innovative interventions like Foxy Chix and MYMsta, the “NAKANJANI”
campaign promoted a spirit of resilience among youth.
2015: Powering the FUTURE
loveLife’s new focus is unlocking
the power of youth leadership
for HIV prevention. loveLife has
focused on unlocking the power of
youth leadership for Youth Health
throughout its existence. The next
phase development is all about using
that youth leadership as the dynamo
future growth and sustainability. The
loveLife vision moving forward is “A
better future powered by the energy
and idealism of young people’. This
means that we are building on insights
of our evaluation (published 2013) by
the Human Sciences Research Council
(HSRC). This study showed that while
loveLife programmes have an impact,
young people concerns are broad and
serious. Many young people internalise
their failure when they struggle to
access opportunities after school. This
situation could be reversed, as young
people have the ability to substantially
change the environment in which
they find themselves. Our response
is to create bridges of opportunity for
all young people. The infrastructure
of loveLife programmes has been
revamped to deliver a new proposition
to young people: a proposition that we
spell out as POWERING THE FUTURE.
2012 to 2014:
Focusing on our
strengths
By 2012, loveLife was the
largest schools-based
social change programme
in the country! loveLife
used this opportunity to
reposition itself so that it
remained relevant to SA
youth.
2017: lovelife’s Vision
Positioning itself as a leader
in Youth Health Promotion,
lovelife envisaged to
promote social activism for
Healthy & Active Lifestyle
and HIV consciousness
amongst youth.
2018: loveLife launches
the BoyChild initiative,
boys with a total sense of
physical, mental and social
well-being are key to safe
communities.
2019: loveLife turns 20 years,
a milestone achievement as it
celebrates two decades of being an
important contributor to empowering
the lives of South African youth.
2020: lovelife carves
a niche for in Digital
Media by providing
programme content
in the midst of the
COVID19 pandemic.
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

INDEX
INDEX
Cape Chamber of Commerce & Industry............................................................................................. 18-19
College of Cape Town .............................................................................................................................................41
Council for Scientific and Industrial Research (CSIR)..................................................................... 16-17
House of Kreationz.....................................................................................................................................................39
loveLife.....................................................................................................................................................................47, IBC
Momentum Financial Planning .................................................................................................................... OBC
Petroleum Agency South Africa................................................................................................................. 30-31
South African Table Grape Industry (SATI)...................................................................................................25
Telkom Business ........................................................................................................................................................IFC
The Shaping Futures Foundation ................................................................................................................7, 43
Universal Link Group ................................................................................................................................................37
Vinpro.................................................................................................................................................................................27
Wesgro....................................................................................................................................................................... 10-12
Western Cape Business Opportunities Forum (WECBOF)..................................................................13
Western Cape Department of Economic Development and Tourism.....................................8-9
WESTERN CAPE BUSINESS 2023
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