Eastern Cape Business 2024
The 2024 edition of Eastern Cape Business is the 17th edition of this successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape Development Corporation (ECDC) is supporting this issue of the journal, both in providing up-to-date information for editorial use and in sharing information about its activities. It will also distribute the journal through its regular channels. While the Eastern Cape has deservedly earned the title of South Africa’s wind energy province, there are other developments taking place in East London, the Coega SEZ and near Humansdorp that promise to give new meaning to new energy. Vanadium batteries, green ammonia and green hydrogen are among the aspects that form part of the Special Feature on energy that appears in this journal. The centenary of the massively important automotive industry is celebrated with reference to Ford Motor Company’s start in the “Auto City” of Port Elizabeth, as it was known, in 1924. The province’s two Special Economic Zones are attracting investors and exports are on an upward trajectory, which will be helped by upgrades of the Eastern Cape’s three ports. Overviews are provided on the other key economic sectors of the province and the potential of the oceans economy and the prospects of oil and gas for this coastal province are examined. The major business chambers in the province have made contributions to the journal and the newest chamber, the Maritime Business Chamber, which has its headquarters a short distance up the hill from the Port of Gqeberha, makes its second appearance in the journal.
The 2024 edition of Eastern Cape Business is the 17th edition of this successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape.
The Eastern Cape Development Corporation (ECDC) is supporting this issue of the journal, both in providing up-to-date information for editorial use and in sharing information about its activities. It will also distribute the journal through its regular channels.
While the Eastern Cape has deservedly earned the title of South Africa’s wind energy province, there are other developments taking place in East London, the Coega SEZ and near Humansdorp that promise to give new meaning to new energy. Vanadium batteries, green ammonia and green hydrogen are among the aspects that form part of the Special Feature on energy that appears in this journal.
The centenary of the massively important automotive industry is celebrated with reference to Ford Motor Company’s start in the “Auto City” of Port Elizabeth, as it was known, in 1924. The province’s two Special Economic Zones are attracting investors and exports are on an upward trajectory, which will be helped by upgrades of the Eastern Cape’s three ports.
Overviews are provided on the other key economic sectors of the province and the potential of the oceans economy and the prospects of oil and gas for this coastal province are examined. The major business chambers in the province have made contributions to the journal and the newest chamber, the Maritime Business Chamber, which has its headquarters a short distance up the hill from the Port of Gqeberha, makes its second appearance in the journal.
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Welcome to the <strong>Eastern</strong> <strong>Cape</strong><br />
Mr Ayanda Wakaba, Chief Executive Officer of the <strong>Eastern</strong> <strong>Cape</strong> Development<br />
Corporation (ECDC), extends a warm welcome to a land of infinite possibilities and<br />
investment opportunities that is open for business.<br />
Ayanda Wakaba, CEO of the<br />
<strong>Eastern</strong> <strong>Cape</strong> Development<br />
Corporation<br />
Accounting for nearly<br />
half of South African<br />
vehicle exports, the<br />
<strong>Eastern</strong> <strong>Cape</strong> is a<br />
proud host to three global<br />
automotive manufacturers,<br />
Isuzu, Mercedes-Benz and<br />
Volkswagen. The province is<br />
also home to a Ford engine<br />
manufacturing plant. With three<br />
sea ports and airports, we lay<br />
claim to competitive logistics<br />
for investors and easy access<br />
to regional and international<br />
markets. Two renowned Special<br />
Economic Zones (SEZs), the East<br />
London and Coega Industrial<br />
Development Zones (IDZs), and<br />
industrial parks infrastructure<br />
throughout the province accentuate our attractive business sites with<br />
access to world-class logistics infrastructure and a significant crosssectoral<br />
investment potential.<br />
We are preparing fertile ground for the development of sector-based<br />
capabilities. Apart from a world-class manufacturing sector, the province<br />
holds a significant investment potential in agriculture, with opportunities<br />
in agro-processing, light manufacturing, renewable energy, digital<br />
economy, tourism and the Oceans Economy. These sectors offer<br />
immense potential for investment and job creation and they serve as<br />
focal points for economic development initiatives.<br />
The province is developing the requisite public infrastructure to<br />
support the attraction of private capital. The province is aware that public<br />
investment in economic infrastructure forms the bedrock of energised<br />
economic activity and investor-attraction activities. The province is<br />
investing in social and economic infrastructure which is designed to<br />
position the province as the ideal place to invest, work and play. We are<br />
building roads and improving ports and airports infrastructure. We are<br />
developing Special Economic Zones and industrial parks as platforms for<br />
foreign and local direct investment.<br />
A conducive environment<br />
These interventions are designed to create a conducive environment<br />
and a soft landing pad for private investment. In addition, the recently<br />
launched Provincial Investment Council (PIC) is intended as a publicprivate<br />
platform to find innovative means to remove red tape and<br />
regulatory hurdles to investor attraction.<br />
Government is using its agencies such as the ECDC as vehicles<br />
to promote provincial economic transformation, inclusive growth,<br />
competitiveness, investor-focussed solutions, pioneering innovation in<br />
key growth sectors, operational efficiencies and financial sustainability.<br />
At the centre of these efforts is the cultivation of strategic partnerships<br />
and public-private stakeholder engagements that respond to national<br />
and provincial economic development strategies while unlocking the<br />
potential of the <strong>Eastern</strong> <strong>Cape</strong> economy. These efforts are informed by the<br />
imperatives outlined in South Africa’s Country Investment Strategy (CIS)<br />
which outlines the path towards sustainable economic development.
MESSAGE<br />
Informed by the CIS framework, we are committed<br />
to exploiting investment opportunities in:<br />
Green hydrogen: Pioneering the global forefront of<br />
green energy:<br />
The <strong>Eastern</strong> <strong>Cape</strong> is party to the Three <strong>Cape</strong>s MoU<br />
between the Western <strong>Cape</strong>, Northern <strong>Cape</strong> and<br />
<strong>Eastern</strong> <strong>Cape</strong>, which allows for the establishment<br />
of a conducive institutional framework and interprovincial<br />
coordination to enhance localised<br />
renewable energy production. The MoU was<br />
signed at the South Africa Green Hydrogen<br />
Summit, pictured below.<br />
Next-Generation digital industries and infrastructure:<br />
The ECDC supports the promotion of innovation<br />
and the building of vital infrastructure in metros<br />
and rural areas through various infrastructure<br />
support programmes.<br />
Special Economic Zones: Anchoring advanced<br />
manufacturing and logistics networks:<br />
The <strong>Eastern</strong> <strong>Cape</strong> currently possesses two critical<br />
Special Economic Zones, the Coega Special<br />
Economic Zone and the East London Industrial<br />
Development Zone, enhancing industrialisation<br />
endeavours and enhancing the <strong>Eastern</strong> <strong>Cape</strong>’s<br />
investment attractiveness.<br />
Industrial cannabis and agro-processing:<br />
Harnessing the potential of advanced agriculture:<br />
• Spearheading the drive for industrial cannabis<br />
beneficiation, the province is poised for export<br />
growth in this globally competitive sector.<br />
• Recent livestock exports show the <strong>Eastern</strong> <strong>Cape</strong>’s<br />
potential to drive increased agricultural exports.<br />
drives opportunities for SMME development and<br />
youth employment in the province.<br />
Investment declarations from the <strong>Eastern</strong><br />
<strong>Cape</strong> Investment Conferences in 2022 and 2023<br />
demonstrate the province’s commitment to<br />
sustainable investment attraction. We are celebrating<br />
the successful implementation of key projects in<br />
manufacturing, media, construction and retail.<br />
Notable projects, such as BENTELER’s manufacturing<br />
venture, and Tshedza Picture’s media production<br />
initiative, underscore the potential and opportunities<br />
in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
The recently introduced Economic Development<br />
Fund (EDF) stands as a testament to our dedication to<br />
supporting entrepreneurship, stimulating economic<br />
growth and creating sustainable employment<br />
opportunities. A strategic allocation of resources and<br />
strategic partnerships are intended to unlock the full<br />
potential of our economy and to empower communities.<br />
Looking ahead, we are excited about the<br />
opportunities presented by initiatives such as the<br />
African Continental Free Trade Area. We also remain<br />
focused on driving growth across all global markets.<br />
We extend our heartfelt gratitude to our<br />
esteemed shareholders, stakeholders, partners,<br />
and collaborators for their unwavering support<br />
and commitment. Together, we will chart a course<br />
towards a brighter and more prosperous future for<br />
the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Join us in mapping an inclusive future for the<br />
<strong>Eastern</strong> <strong>Cape</strong> premised on shared growth and<br />
investment returns. ■<br />
Hyper-scaling impact investment: Driving social<br />
and green economy objectives:<br />
The green and renewable energy sectors offer<br />
greenfield opportunities for investment in the<br />
province, while development of the Global<br />
<strong>Business</strong> Services sector, supported by the ECDC,<br />
PHOTO: GCIS
Provincial<br />
Investment<br />
Outlook<br />
At the 2023 <strong>Eastern</strong> <strong>Cape</strong> Investment Conference, R127-billion worth of investments<br />
were declared by 21 companies, providing a boost to economic growth across several<br />
sectors and multiple regions.<br />
The province has attracted investments valued at<br />
R173-billion into the <strong>Eastern</strong> <strong>Cape</strong> economy since<br />
2019. These investments reflect the province’s<br />
commitment to the attraction of sustainable<br />
foreign and local direct investment. These new investment<br />
commitments into the <strong>Eastern</strong> <strong>Cape</strong> represent a pivotal<br />
moment in the province’s economic trajectory.<br />
The investments were announced by the province at<br />
the <strong>Eastern</strong> <strong>Cape</strong> Investment Conference hosted by<br />
the ECDC as a platform to attract investment and to<br />
showcase investor-attraction initiatives. The conference<br />
serves as a platform:<br />
• to promote economic growth, attract investors<br />
and showcase the immense investment potential<br />
of the province<br />
• to drive investor messaging and investor projects<br />
in a coordinated manner across the three spheres<br />
of government<br />
• for government, business leaders, entrepreneurs<br />
and investors to collaborate, network and explore<br />
opportunities in various sectors<br />
The province has hosted three successful<br />
investment conferences, in 2019, 2022 and 2023.<br />
The outbreak of the Covid-19 pandemic led to the<br />
postponement of the conferences in 2020 and 2021.<br />
The key objective of the investment conference is to<br />
showcase the strides the province has made with<br />
regards to investor coordination and facilitation<br />
across provincial, district and local spheres.<br />
Priority is given to sectors and industries that are<br />
poised to transform the structure of the economy<br />
towards inclusive development, by:<br />
• mobilising attraction efforts towards qualitative<br />
investment projects<br />
• directing investment into strategic and labourintensive<br />
sectors to address under-investment<br />
• developing new economic nodes and<br />
value chains<br />
• positioning the <strong>Eastern</strong> <strong>Cape</strong> as a preferred<br />
investment destination<br />
• promoting investment facilitation and<br />
aftercare services<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
2
national roads agency, Sanral declared a<br />
R7.2-billion investment into road facilities,<br />
improvements, maintenance and road network<br />
strengthening across the <strong>Eastern</strong> <strong>Cape</strong>.<br />
• Integrated national freight and logistics giant,<br />
Transnet, declared a R1.59-billion investment<br />
into the Port of Ngqura.<br />
• In the property development sector, Sanaha<br />
Property Development declared a R542-<br />
million investment into retail property<br />
development projects, for lease and sale of land<br />
for the construction of 59 Boxer Stores.<br />
Investors in the renewable energy sector in the <strong>Eastern</strong> <strong>Cape</strong>, particularly<br />
the wind power sector, have been building energy facilities in the province<br />
for more than a decade.<br />
At the 2022 <strong>Eastern</strong> <strong>Cape</strong> Investment Conference,<br />
10 investor declarations worth R46-billion were<br />
announced. These investments were:<br />
• Shoprite, retail and logistics sector. South Africa’s<br />
largest supermarket group by market capitalisation<br />
declared a R1.5-billion investment for the expansion<br />
of its distribution centre in Nelson Mandela Bay.<br />
• BENTELER Automotive, automotive component<br />
manufacturer, declared a R168-million investment<br />
into an approximately 9 000m² extension of its<br />
Kariega plant and a new hot-forming line in Kariega<br />
in Nelson Mandela Bay.<br />
• In the film sector, production company, Tshedza<br />
Pictures declared an R85-million investment for<br />
the production of the telenovela, Gqeberha: The<br />
Empire, which was produced in Nelson Mandela<br />
Bay.<br />
• Leading supplier of material handling and industrial<br />
equipment, Toyota Material Handling, declared a<br />
R60-million investment for the operationalisation<br />
of its automotive material-handling project.<br />
• In the construction sector, Nelson Mandela Bay’s<br />
Mhlobiso Concrete declared a R9.5-million<br />
investment into the establishment of a sustainable<br />
ready-mix concrete facility.<br />
• In the public infrastructure investment sector,<br />
At the 2023 <strong>Eastern</strong> <strong>Cape</strong> Investment Conference,<br />
R127-billion worth of investments were declared by<br />
21 companies.<br />
These investments will inject substantial capital into<br />
the provincial economy, leading to a cascade of<br />
positive effects that will benefit citizens, businesses<br />
and the overall economic landscape.<br />
The investment declarations represent a diverse<br />
array of sectors and span a significant portion of<br />
the <strong>Eastern</strong> <strong>Cape</strong>’s districts, providing extensive<br />
economic development prospects.<br />
• In the oil and gas sector, the TAMSA Holdings<br />
and Central Energy Joint Venture is investing<br />
R13.6-billion for the construction of an on-shore<br />
Liquified Natural Gas storage and regasification<br />
terminal in Nelson Mandela Bay.<br />
• South African Breweries, a subsidiary of<br />
the world’s largest beer producer AB InBev, is<br />
investing R510-million in the manufacturing<br />
sector for the extension of its brewery in Nelson<br />
Mandela Bay.<br />
• In the tourism sector, Mkambati Matters,<br />
located in Mkambati Game Reserve, is<br />
investing R250-million into an ecotourism<br />
lodge development in the OR Tambo District<br />
Municipality.<br />
• Independent power producer, Parson Power<br />
Park, is investing R2.7-billion in the energy<br />
PHOTO: Cennergi Services
sector for the construction of a solar power<br />
plant in Nelson Mandela Bay.<br />
• Ivili Loboya Wool Processing is investing R45-<br />
million for the expansion of its existing woolprocessing<br />
factory to increase its processing<br />
capacity and for infrastructure investment at<br />
the Amathole District Municipality.<br />
• In the Information Communication Technology<br />
sector, global technology company, Jendamark<br />
Automation, is investing R150-million in digital<br />
Fourth Industrialisation Revolution technologies<br />
in Nelson Mandela Bay.<br />
• Property development firm, AJ Properties, is<br />
investing R100-million in the property sector for<br />
the establishment of a retail shopping centre in<br />
the OR Tambo District Municipality.<br />
• In Nelson Mandela Bay, leader in the<br />
development, fabrication and supply of<br />
automotive metal formed components,<br />
Formex Industries, is investing R114-million in<br />
the manufacturing industry for the expansion of<br />
a new press plant to increase assembly capacity<br />
for Mercedes-Benz South Africa’s US variants.<br />
• Global automaker and provider of innovative<br />
mobility solutions, Stellantis, is investing R3-<br />
billion in the manufacturing sector to develop<br />
a new vehicle manufacturing facility in Nelson<br />
Mandela Bay.<br />
• Specialising in the development of fuel stations<br />
and convenience shopping centres in the<br />
lower living standards measure (LSM) markets,<br />
Imperium Developments is investing R109-<br />
million in the property sector for construction<br />
of shopping and convenience centres in Peddie,<br />
Sterkspruit, Bhisho and in the Berea Shopping<br />
Centre, located in the Buffalo City Metropolitan<br />
Municipality.<br />
• Thezi-Langa Energy is investing R900-million<br />
in the energy sector into a 50-megawatt<br />
solar PV project at the East London Industrial<br />
Development Zone’s Ntabozuko Renewable<br />
Energy Park in the Buffalo City Metropolitan<br />
Municipality.<br />
• Furthermore, Hive Hydrogen is investing<br />
R105-billion in the renewable energy sector for<br />
the construction of a green hydrogen/green<br />
ammonia production facility at the Coega<br />
Special Economic Zone in Nelson Mandela Bay.<br />
Infrastructure is at the heart of improving the climate for inward<br />
investment. The Coega River Bridge is an impressive piece of<br />
engineering.<br />
The plant in Nelson Mandela Bay where sophisticated<br />
automotive parts are produced by BENTELER has recently<br />
undergone a 9 000m² expansion.<br />
• Bushveld Electrolyte Company is investing<br />
R330-million into a vanadium electrolyte<br />
production facility in the East London IDZ in the<br />
Buffalo City Metropolitan Municipality. It is the<br />
largest publicly announced plant outside China.<br />
• Tshedza Pictures, is renewing its commitment<br />
to the film sector with an R80-million investment<br />
in Season 2 of Gqeberha: The Empire.<br />
• Nexus Yachts is investing R181-million in the<br />
manufacturing sector for the expansion of its<br />
facility to build new balance catamarans in the<br />
Sarah Baartman District Municipality.<br />
• In the information communication technology<br />
sector, the Universal Service and Access<br />
Agency of South Africa is investing R159-<br />
million in broadband implementation projects<br />
across various regions in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
• In the healthcare sector, Medilinks is investing<br />
R100-million for diagnostic and primary<br />
healthcare centres. The company is scoping<br />
appropriate locations in various parts of the<br />
<strong>Eastern</strong> <strong>Cape</strong>.<br />
PHOTO: ARQ Construction<br />
PHOTO: BENTELER International AG
• Lastly, South Africa’s largest mobile<br />
communications company, Vodacom, is<br />
investing R500-million in the Information<br />
Communication Technology sector for<br />
expanding connectivity in rural areas and<br />
townships.<br />
The multi-product Sundale Dairy is just one of several businesses in many<br />
sectors which has been attracted to the space and services available in the<br />
East London Industrial Zone.<br />
Bushveld Electrolyte is investing R330-million into making<br />
vanadium electrolyte in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Establishment of the Provincial Investment<br />
Council (PIC)<br />
The Provincial Investment Council (PIC) was<br />
launched in September 2023. It is a structure<br />
established by the <strong>Eastern</strong> <strong>Cape</strong> Premier and is<br />
constituted by investment promotion leaders,<br />
industrial champions of business, large companies<br />
and prominent industry bodies in the <strong>Eastern</strong><br />
<strong>Cape</strong> across priority sectors. The PIC includes the<br />
leadership of investment promotion agencies,<br />
economic cluster departments and metros and<br />
district municipalities and other relevant publicsector<br />
and private-sector stakeholders with the<br />
aim of strengthening province-wide planning,<br />
reporting, operation and implementation of<br />
investment activities.<br />
The objectives of the PIC are to:<br />
• lead and coordinate the investment efforts in<br />
the <strong>Eastern</strong> <strong>Cape</strong> across the public and private<br />
sectors<br />
• strengthen province-wide planning, reporting,<br />
operation and implementation of investment<br />
activities<br />
• identify investment-stimulation measures,<br />
which include critical reform programmes<br />
• unblock red tape by creating interventions to<br />
address any bureaucratic processes impacting<br />
industry development relevant to the provincial<br />
departments, provincial agencies and national<br />
government<br />
• improve the interface and coordination<br />
between government and industry players on<br />
trade and investment matters<br />
• create mechanisms where investor grievances<br />
will be addressed to prevent governmentinvestor<br />
disputes<br />
• enhance and improve the regulatory<br />
environment for ease of doing business and to<br />
enhance inward investment attraction.<br />
All of the <strong>Eastern</strong> <strong>Cape</strong> OEMs regularly top up their investments in new<br />
production lines and models, making the automotive industry one of the<br />
most important sectors in the provincial economy. Here Mercedes-Benz<br />
vehicles await export from the Port of East London.<br />
PHOTO: ELIDZ
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CONTENTS<br />
<strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> <strong>2024</strong> edition<br />
Introduction<br />
Foreword 6<br />
A unique guide to business and investment in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Special features<br />
Regional overview of the <strong>Eastern</strong> <strong>Cape</strong> 10<br />
In a year which celebrated a century of automotive investment in the<br />
province, new sectors such as renewable and alternative energy are growing,<br />
and large infrastructure projects are underway. The province’s ports<br />
and Special Economic Zones are receiving upgrades and investments.<br />
The renewable energy landscape<br />
is expanding 16<br />
The <strong>Eastern</strong> <strong>Cape</strong> is the site of several exciting and<br />
innovative projects.<br />
A century of automotive manufacturing 18<br />
The <strong>Eastern</strong> <strong>Cape</strong> celebrated an important milestone in <strong>2024</strong><br />
and welcomed a new motor marque to its OEM stable.<br />
Economic sectors<br />
Agriculture and agro-processing 32<br />
Sustainable agriculture is rewarding.<br />
Manufacturing: general 40<br />
SEZs are the focus of manufacturing investment.<br />
Global <strong>Business</strong> Services 41<br />
Employment is picking up as the sector grows.<br />
Education and training 42<br />
Skills training is a priority.<br />
Water 43<br />
The Mzimvubu Dam project is back on track.<br />
Oceans economy 46<br />
Infrastructure upgrades are underway at the <strong>Eastern</strong> <strong>Cape</strong>’s ports.<br />
Film 50<br />
Jobs are being created in the creative sector.<br />
Development finance and SMME support 52<br />
Recyling is bringing employment to Bedford.<br />
Banking and financial<br />
services 53<br />
Banks are supporting sustainability.<br />
Tourism 54<br />
The World Bank is putting R65-million into<br />
conservation.<br />
EASTERN CAPE<br />
BUSINESS<br />
EASTERN CAPE<br />
BUSINESS<br />
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ABOUT THE COVER:<br />
Main image, then top right<br />
and clockwise down; huge<br />
wind turbines are bringing<br />
power to the national grid and<br />
development to the Mfengu<br />
people of the Tsitsikamma<br />
(Cennergi Services); the<br />
<strong>Eastern</strong> <strong>Cape</strong> is a popular<br />
destination for TV and film<br />
(ECDC); diverse businesses<br />
are choosing the East London<br />
Industrial Development Zone<br />
(ELIDZ); H&M is running a sustainability programme with sheep<br />
farmers (Mark Sampson); the Isuzu D-MAX is made in Gqeberha<br />
(Motus Isuzu); dairy is a vibrant sector (ELIDZ); home to the Big<br />
Seven, including Great Whites and whales (Nelson Mandela Bay<br />
Tourism); Valley of Desolation, Graaff-Reinet (Graaff-Reinet Tourism).
A beacon of innovation and progress<br />
Renewable energy investors can expect sustainable growth and profits in the ELIDZ.<br />
FOCUS<br />
In a world where sustainability is paramount,<br />
the East London Industrial Development Zone<br />
(ELIDZ) Renewable Energy Sector stands as a<br />
beacon of innovation and progress. Renowned<br />
for its commitment to green energy initiatives, the<br />
ELIDZ has emerged as a global leader in fostering a<br />
sustainable future.<br />
Recently, the ELIDZ’s efforts were recognised on<br />
a global scale. The prestigious Global Africa Eco-Parks,<br />
under the auspices of the United Nations Industrial<br />
Development Organization (UNIDO), bestowed upon<br />
the ELIDZ the esteemed title of the leading Eco-Park<br />
in the world. The ELIDZ has been flagged as the<br />
lighthouse for Eco-Industrial Parks in South Africa.<br />
This not only reaffirms the ELIDZ commitment to<br />
environmental stewardship but also underscores its<br />
status as a global leader in sustainable development.<br />
With the growing importance of green energy and<br />
sustainable development goals, the ELIDZ’s strategy in<br />
terms of renewable energy sector is two-pronged. The<br />
zone is targeting investors in renewable manufacturing<br />
as well as the production and transfer of green power.<br />
The ELIDZ facilitates the location of renewable<br />
energy projects in suitable areas in the industrial<br />
park with favourable wind and solar characteristics,<br />
thereby supporting the ability of other tenants to get<br />
access to renewable energy.<br />
Contact details<br />
Sector Manager, Renewable Energy & ICT: Dr Chris Ettmayr<br />
Tel: +27 43 702 8214<br />
Email: chris@elidz.co.za<br />
Website: www.elidz.co.za/renewable-energy/<br />
Attractive to investors<br />
Key added-value features include the IDZ’s green<br />
credentials with good ICT connectivity and logistical<br />
infrastructure (port, airport, roads) supported by<br />
the availability of affordable labour and a strong<br />
manufacturing base. In addition, the ELIDZ offers:<br />
• Access to secure and stable green energy<br />
• Cost-effective, reliable, sustainable and high-quality<br />
water supply<br />
• Supportive cluster to feed into business processes<br />
• Strong green ambitions and a range of shared services<br />
are offered to investors (ICT, clinic, Science and<br />
Technology Park)<br />
• A modern customised space in a technology-enabled<br />
zone ready for future smart requirements<br />
• Fast connectivity<br />
• Powered by renewable energy<br />
The ELIDZ Renewable Energy Sector is a<br />
thriving ecosystem of innovation, collaboration and<br />
sustainability. <strong>Business</strong>es have access to state-of-the-art<br />
infrastructure and cutting-edge technology, providing<br />
a conducive environment for renewable energy<br />
manufacturing and production. Additionally, the ELIDZ’s<br />
strategic location and access to key markets make it an<br />
attractive destination for investors seeking to capitalise<br />
on the growing demand for renewable energy solutions.<br />
Central to the ELIDZ’s commitment to sustainability<br />
is its relentless pursuit of green hydrogen. The ELIDZ’s<br />
Renewable Energy Sector is spearheading efforts to<br />
harness the power of green hydrogen, driving innovation<br />
and progress in the field of renewable energy.<br />
By choosing the ELIDZ as a potential partner<br />
in sustainability, your business is becoming part of<br />
a global movement towards a greener and more<br />
sustainable world. ■<br />
7
FOREWORD<br />
<strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong><br />
A unique guide to business and investment in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Credits<br />
Publishing director:<br />
Chris Whales<br />
Editor: John Young<br />
Managing director: Clive During<br />
Online editor: Christoff Scholtz<br />
Designer: Tyra Martin<br />
Production:<br />
Sharon Angus-Leppan<br />
Ad sales:<br />
Gavin van der Merwe<br />
Sam Oliver<br />
Tahlia Wyngaard<br />
Tennyson Naidoo<br />
Gabriel Venter<br />
Vanessa Wallace<br />
Shiko Diala<br />
Graeme February<br />
Administration & accounts:<br />
Charlene Steynberg<br />
Kathy Wootton<br />
Distribution and circulation<br />
manager: Edward MacDonald<br />
Printing: FA Print<br />
DISTRIBUTION<br />
<strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is distributed internationally on outgoing and<br />
incoming trade missions, through trade and investment agencies;<br />
to foreign offices in South Africa’s main trading partners around the<br />
world; at top national and international events; through the offices<br />
of foreign representatives in South Africa; as well as nationally and<br />
regionally via chambers of commerce, tourism offices, airport lounges,<br />
provincial government departments, municipalities and companies.<br />
The <strong>2024</strong> edition of <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is the 17th edition of<br />
this successful publication that, since its launch in 2006, has<br />
established itself as the premier business and investment guide<br />
for the <strong>Eastern</strong> <strong>Cape</strong>.<br />
The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation (ECDC) is supporting this issue<br />
of the journal, both in providing up-to-date information for editorial use and in<br />
sharing information about its activities. It will also distribute the journal through<br />
its regular channels.<br />
While the <strong>Eastern</strong> <strong>Cape</strong> has deservedly earned the title of South Africa’s<br />
wind energy province, there are other developments taking place in East<br />
London, the Coega SEZ and near Humansdorp that promise to give new<br />
meaning to new energy. Vanadium batteries, green ammonia and green<br />
hydrogen are among the aspects that form part of the Special Feature on<br />
energy that appears in this journal.<br />
The centenary of the massively important automotive industry is celebrated<br />
with reference to Ford Motor Company’s start in the “Auto City” of Port Elizabeth,<br />
as it was known, in 1924. The province’s two Special Economic Zones are<br />
attracting investors and exports are on an upward trajectory, which will be helped<br />
by upgrades of the <strong>Eastern</strong> <strong>Cape</strong>’s three ports.<br />
Overviews are provided on the other key economic sectors of the province<br />
and the potential of the oceans economy and the prospects of oil and gas for<br />
this coastal province are examined. The major business chambers in the province<br />
have made contributions to the journal and the newest chamber, the Maritime<br />
<strong>Business</strong> Chamber, which has its headquarters a short distance up the hill from<br />
the Port of Gqeberha, makes its second appearance in the journal.<br />
To complement the extensive local, national and international distribution of the<br />
print edition, the full content can also be viewed online at www.easterncapebusiness.<br />
co.za. Updated information on the <strong>Eastern</strong> <strong>Cape</strong> is also available through our monthly<br />
e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our<br />
complementary business-to-business titles that cover all nine provinces as well as<br />
our flagship South African <strong>Business</strong> title. In 2020 the inaugural edition of The Journal of<br />
African <strong>Business</strong> was published. ■<br />
Chris Whales<br />
Publisher, Global Africa Network | Email: chris@gan.co.za<br />
PUBLISHED BY<br />
Global Africa Network Media (Pty) Ltd<br />
Company Registration No: 2004/004982/07<br />
Directors: Clive During, Chris Whales<br />
Physical address: 28 Main Road, Rondebosch 7700<br />
Postal address: PO Box 292, Newlands 7701<br />
Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />
Email: info@gan.co.za | Website: www.gan.co.za<br />
Member of the Audit Bureau<br />
of Circulations ISSN 1995-1310<br />
COPYRIGHT | <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is an independent publication<br />
published by Global Africa Network Media (Pty) Ltd. Full copyright to the<br />
publication vests with Global Africa Network Media (Pty) Ltd. No part<br />
of the publication may be reproduced in any form without the written<br />
permission of Global Africa Network Media (Pty) Ltd.<br />
PHOTO CREDITS | Bushveld Minerals; Cheeba Training; michael clarke,<br />
Wikimedia Commons; FoodForward SA; Gamtoos Water; GIZ, MTN;<br />
Sibuya Rhino Foundation; Stellantis; Transnet National Ports Authority;<br />
Vysotsky, Wikimedia Commons.<br />
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />
Ltd, has used all reasonable efforts to ensure that the information<br />
contained in <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is accurate and up-to-date, the<br />
publishers make no representations as to the accuracy, quality,<br />
timeliness, or completeness of the information. Global Africa Network<br />
will not accept responsibility for any loss or damage suffered as a result<br />
of the use of or any reliance placed on such information.
Your business-friendly<br />
investment destination of choice<br />
The InvestSA One Stop Shop <strong>Eastern</strong> <strong>Cape</strong> serves as a focal point of<br />
contact for all investor inquiries in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
It provides a variety of support services to both existing and new<br />
investors through a streamlined service offering ranging from<br />
investment facilitation, investment unblocking and business<br />
regulatory applications.<br />
To effectively deliver on its mandate, it has formed<br />
partnerships with regulatory bodies and other government<br />
departments. Some of the participating partners include<br />
the Companies and Intellectual Property Commission for<br />
company registrations, South African Revenue Service for<br />
customs, Department of Home Affairs for visa applications,<br />
Eskom for special power-grid applications, the National<br />
Regulator for Compulsory Specifications, Environmental<br />
Affairs Department for Environmental Impact Assessments<br />
and the ECDC for export and trade promotion and<br />
investment facilitation.<br />
The One Stop Shop is committed to providing integrated<br />
investment promotion services to help investors throughout the<br />
investment value chain, and to make the process as seamless as<br />
possible. These key services include:<br />
• Information services: Information and network opportunities<br />
on trade and investment in the <strong>Eastern</strong> <strong>Cape</strong>, South Africa and<br />
Africa.<br />
• Intellectual property: Includes intellectual property protection,<br />
applications for national and local incentives, applications for<br />
work visas.<br />
• Regulatory requirements: Temporary and permanent residence,<br />
registration for tax purposes, and any other requirements<br />
(licences, authorisations, registrations, etc) to do business in<br />
the <strong>Eastern</strong> <strong>Cape</strong>.<br />
• Lead tracking: A lead-tracking system to ensure that prospective<br />
investors receive quality services until their respective projects<br />
reach the point of commercialisation.<br />
• Pre-approval information: The provision of pre-approval<br />
information to investors (ie market data, costs, incentives, project<br />
approval, visits, local partners, etc).<br />
• Facilitation services: The provision of facilitation services to<br />
investors (ie permits, approvals, import equipment and raw<br />
materials, work permits).<br />
Enquiries can be directed to https://www.ecdc.co.za/investsa-ec-oss<br />
EASTERN CAPE
A REGIONAL OVERVIEW OF<br />
EASTERN CAPE<br />
PROVINCE<br />
In a year which celebrated a century of automotive investment in the<br />
province, new sectors such as renewable and alternative energy are<br />
growing, and large infrastructure projects are underway. The province’s<br />
ports and Special Economic Zones are receiving upgrades and investments.<br />
By John Young<br />
Ford Motor Company started making<br />
cars in what was Port Elizabeth (now<br />
Gqeberha) in 1924. That company<br />
remains a pillar of the automotive sector<br />
in a province that exports more than half the<br />
cars that South Africa makes.<br />
The other long-time original equipment<br />
manufacturers (OEMs) are Volkswagen South Africa,<br />
Mercedes-Benz South Africa and Isuzu, which started<br />
life as General Motors in 1926, becoming the city’s<br />
second auto manufacturer.<br />
VWSA began as SAMAD in Kariega (Uitenhage) in<br />
1949 and the first East London assembly undertaken<br />
by Mercedes-Benz South Africa started in 1954.<br />
These marques have recently been joined by<br />
Chinese OEM FAW and the Stellantis Group, which<br />
will start assembling the Peugeot Landtrek at the<br />
Coega SEZ in 2026.<br />
The shift to renewable energy which is<br />
happening across the world can be seen very clearly<br />
on the hills of the <strong>Eastern</strong> <strong>Cape</strong>, which has rapidly<br />
earned itself the tile of the “Wind Province”.<br />
Other forms of green power and battery storage<br />
are being actively explored, and this is the subject of<br />
a Special Feature elsewhere in this journal.<br />
The many new wind-power plants that the<br />
province now hosts bring power, but they also<br />
bring employment and opportunities for local<br />
communities where the wind farms are sited.<br />
The province’s most recent wind-power<br />
investment will see three 110MW facilities<br />
constructed in the Kouga Local Municipality. The<br />
Impofu wind farms will supply energy to Sasol and Air<br />
Liquide in Mpumalanga. Enel Green Power and Red<br />
Cap are building the R9-billion project after a lengthy<br />
environmental and public engagement process with<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
10<br />
PHOTO: Ford Motor Company
SPECIAL FEATURE<br />
about 60 landowners, including the Reebok Rant<br />
Workers Trust, a dairy operation near Oyster Bay.<br />
The automotive industry is also increasingly<br />
playing a role in the energy transition, both in terms<br />
of powering plants’ operations but also in producing<br />
electric vehicles. East London-based Mercedes-Benz<br />
South Africa (MBSA) is working to reduce its carbon<br />
footprint at its manufacturing plant. The second<br />
phase of the company’s solar PV plan will see 22 847<br />
panels bringing the combined total up to 26 539, an<br />
array capable of providing 14.6MW. Over the course<br />
of a year, this installation should contribute about<br />
20% of the plant’s consumption.<br />
Volkswagen has installed 3 136 solar<br />
photovoltaic panels at its Kariega plant which<br />
will produce an estimated 2 500MWh at full<br />
capacity. In addition, Volkswagen is building<br />
a wastewater recycling facility, replacing alien<br />
plants at its premises and planting a carbon<br />
bank of nearly 5 000 spekboom cuttings. Ford’s<br />
Struandale Engine Plant has been a winner of the<br />
SJM Flex Environmental Award for excellence in<br />
environmental management with its improved<br />
production methods leading to reductions in<br />
water and electrical consumption. Other factors<br />
were rainwater harvesting and recycling of 97% of<br />
waste produced at the factory.<br />
A R22-million investment in a solar energy plant<br />
is paying off for Montego Pet Nutrition in Graaff-<br />
Reinet. The company reported a 300-ton reduction<br />
in CO2 emissions in a single year, the equivalent of<br />
planting about 9 000 trees to offset emissions. The<br />
nine-month solar project happened soon after a<br />
R70-million expansion project which increased the<br />
factory’s overall production by 30%.<br />
Another of the <strong>Eastern</strong> <strong>Cape</strong>’s biggest brands is<br />
putting a great deal of time and effort into water<br />
conservation. When the dam levels feeding the<br />
Nelson Mandela Bay Metropolitan area reached<br />
critical levels, Coca-Cola Beverages South Africa<br />
(CCBSA) mobilised a comprehensive response.<br />
Working together with other entities, CCBSA<br />
delivered water, JoJo Tanks and water wheelers<br />
to communities suffering shortages but also<br />
offered a longer-term solution in the form of a<br />
groundwater harvesting and treatment system<br />
known as Coke Villes.<br />
The Impofu project sod-turning took place in<br />
March <strong>2024</strong>.<br />
PHOTO: Enel Green Power<br />
11<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
The <strong>Eastern</strong> <strong>Cape</strong>’s strategic location makes it ideal for logistics. Rhenus Logistics has expanded its<br />
facilities in Port Elizabeth and built a new warehouse in East London, pictured.<br />
Infrastructure<br />
The province’s two Special Economic Zones (SEZs)<br />
have been the focus of investment to prepare them<br />
to host an array of enterprises. Dedicated sections of<br />
the SEZs provide for a cluster approach, something<br />
which automotive suppliers and logistics firms have<br />
taken advantage of.<br />
In the SOPA, Premier Mabuyane reported that the<br />
East London Industrial Development Zone (ELIDZ)<br />
exported over R3-billion worth of products in a<br />
12-month period. In the five years to <strong>2024</strong>, the ELIDZ<br />
signed up 24 investors with an investment value<br />
of R5.7-billion, primarily in the automotive, agroprocessing<br />
and general manufacturing sectors, but<br />
he noted that renewable energy sector investment<br />
is rising fast.<br />
Within the Coega SEZ, just north of the city of<br />
Gqeberha, the Port of Ngqura was primarily designed<br />
as a container terminal but additional capabilities are<br />
being added. The Coega Development Corporation<br />
(CDC) has been tasked with finding a developer for a<br />
new Liquid Bulk Terminal and for a new manganese<br />
terminal. Transnet has agreed that the tank farm and<br />
manganese storage facility at the Port of Gqeberha is<br />
to be moved to the Port of Ngqura.<br />
The provincial government has identified<br />
six “mega” infrastructure projects on which to<br />
focus: N2 Wild Coast Highway, Mzimvubu Water<br />
Project, <strong>Eastern</strong> <strong>Cape</strong> Transnet initiatives, N2 Nodal<br />
Development, undersea cables and the Wild Coast<br />
SEZ.<br />
In addition, Premier Mabuyane revealed in the<br />
<strong>2024</strong> SOPA what he expects will be the priorities<br />
of the next provincial administration, the seventh<br />
since democracy was ushered in in 1994. The<br />
<strong>Eastern</strong> <strong>Cape</strong> is one of the provinces in South<br />
Africa where the African National Congress (ANC)<br />
is most confident of returning as the governing<br />
party.<br />
The Premier listed the priorities as follows:<br />
biofuels, cannabis, oceans economy, Bhisho<br />
precinct, Bulembu airport for cargo and liquified<br />
natural gas.<br />
With three ports and two large airports, the<br />
<strong>Eastern</strong> <strong>Cape</strong> is well suited to logistics activity.<br />
The massive Msikaba Bridge under construction<br />
in the OR Tambo District is on track for completion<br />
in 2025. This will transform travel in what used to<br />
be the Transkei and open up the Wild Coast for<br />
tourism. Work on the Mtentu Bridge in the Alfred<br />
Nzo District resumed in December 2023 and is<br />
scheduled for completion in 2027. Seven of the<br />
roads that lead to these bridges will be upgraded<br />
from gravel to tar as part of the broader project.<br />
Both Vodacom and MTN are continuing to<br />
invest in telecommunications infrastructure. A<br />
project to connect 23 rural villages was completed<br />
by Vodacom at a cost of R34-million; a further R71-<br />
million will be spent on connecting another 86<br />
villages. MTN allocated R600-million to protect<br />
its network and has rolled out an extensive<br />
programme of battery and generator support.<br />
A Samsung Innovation Campus has been<br />
initiated at Walter Sisulu University. To be<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
12<br />
PHOTO: Rhenus Logistics
Helping companies<br />
export to new markets<br />
The Trade Promotion Programme of the ECDC offers a wide<br />
range of support services to exporters.<br />
The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation (ECDC) Trade Promotion Programme is<br />
a comprehensive initiative that aims to enhance the export capabilities of firms in<br />
the province. The programme offers several key initiatives, including the Exporter<br />
Development Programme, Export Incentives Programme and Market Assistance<br />
Scheme. These initiatives provide exporters and potential exporters with knowledge<br />
and skills to take advantage of new and more complex export opportunities.<br />
The Exporter Development Programme focuses on providing training and<br />
support to exporters. It covers topics such as export payment methods, export<br />
finance, insurance, export procedures, commercial terms, terms of international trade,<br />
transportation logistics, quality control measures, export packaging, pricing, business<br />
expansion and contract negotiation. Assistance with marketing and mentorship is also<br />
provided. Since its inception in 2017, the programme has helped 58 companies.<br />
The Export Incentives Programme is specifically designed to support Micro Small<br />
and Medium Enterprises (MSMEs) by providing non-financial support to overcome<br />
cultural, regulatory, product safety and standards, intellectual property protection,<br />
logistical barriers and financial barriers to entry into new markets.<br />
The Market Assistance Scheme is another initiative under the ECDC Trade<br />
Promotion Programme, which promotes new market access initiatives. In the<br />
2023/24 financial year, the ECDC proudly supported 207 businesses to attend trade<br />
exhibitions across various countries. The ECDC is committed to providing effective and<br />
personalised assistance to businesses of all sizes.<br />
Symposium<br />
The biennial <strong>Eastern</strong> <strong>Cape</strong> Export Symposium helps<br />
grow the province’s contribution to global markets,<br />
offering an excellent opportunity for industry roleplayers<br />
to come together, connect and achieve two<br />
primary objectives:<br />
• promoting exports and supply networks by<br />
providing access to markets, resources and current<br />
research, and synergising resources and<br />
• focusing on a wide range of export-related<br />
role-players that optimise export efficiency<br />
and economic growth.<br />
The export symposium features an exhibition, a<br />
plenary, workshops, match-making and networking<br />
opportunities that help businesses achieve their<br />
export goals. Participants attend to showcase<br />
their products and services, engage with potential<br />
clients and partners, and gain valuable insights<br />
from industry experts.<br />
The ECDC Trade Promotion Programme is helping to create a vibrant and competitive<br />
business environment that supports growth and innovation by providing various<br />
initiatives that equip firms with knowledge and skills to expand their market<br />
opportunities globally.<br />
Enquiries can be directed to Ms Linda Lubengu at llubengu@ecdc.co.za
SPECIAL FEATURE<br />
run by the Centre for Entrepreneurship Rapid<br />
Incubators (CFERI), the campus programme aims<br />
to transfer IT skills and help graduates start their<br />
own businesses. There will be courses on coding,<br />
programming, artificial intelligence and the<br />
Internet of Things.<br />
Tourism<br />
Tourism is one of the sectors that was hit hardest<br />
by Covid-19.<br />
Although times were tough for the “Adventure<br />
Province”, there was some good news out of a<br />
sector that still retains enormous potential for<br />
growth and has been identified by the <strong>Eastern</strong><br />
<strong>Cape</strong> Development Corporation (ECDC) as a<br />
priority sector.<br />
The ECDC invested R2-million in attracting<br />
the TV series Survivor South Africa: Immunity Island<br />
and that investment has been shown to pay<br />
off both in monetary terms and in showcasing<br />
the spectacular Wild Coast to TV audiences. The<br />
immediate economic impact of the filming was<br />
estimated at R10-million.<br />
The north-eastern segment of the province is the<br />
site of a possible future national park, which would<br />
bring to five the number of national parks in the<br />
province, joining the Addo Elephant, the Camdeboo,<br />
Garden Route and Mountain Zebra National Parks.<br />
These parks not only look after animals but also<br />
protect quite distinct types of vegetation.<br />
If the proposed Grassveld National Park is<br />
established high in the mountains above the<br />
village of Rhodes and near to the border with<br />
Lesotho, it would be South Africa’s 20th. The<br />
conservation goal behind the park is to preserve<br />
grasslands through agreements with landowners<br />
and farmers who would continue to farm the land<br />
responsibly. The land of the Batlokoa community is<br />
near the famous Naude’s Neck Pass.<br />
As a source of clean water, the area is a hugely<br />
important resource and worth preserving for that<br />
reason too. The water that falls away from the<br />
highest point of this proposed park is described by<br />
Andrew Weiss of the WWF as “heading towards the<br />
Mzimvubu River and the Indian Ocean” while another<br />
small stream at the top of the mountain is destined to<br />
join the Orange River in the west.<br />
Weiss also described rock paintings of eland<br />
and reedbuck “with the unusual addition of dogs<br />
and a fat-tailed sheep”. The Grassveld National Park<br />
project of the South African National Botanical<br />
Institute (SANBI) has recorded 1 131 species of<br />
plant life on the iNaturalist app.<br />
In addition to national parks, the <strong>Eastern</strong> <strong>Cape</strong><br />
has 15 provincial nature reserves and a multitude of<br />
luxury private game reserves.<br />
The events sector was just about to restart<br />
before the Omicron variant put a stop to all<br />
travel. This is something the <strong>Eastern</strong> <strong>Cape</strong> does<br />
well, with the National Arts Festival and a variety<br />
of sporting events such as Iron Man being hosted<br />
by the province. Two big new golf events have<br />
put the spotlight on the province’s tourism<br />
offering, the SDC Championship at St Francis<br />
Links (jointly hosted by South Africa’s Sunshine<br />
Tour with the DP World Tour) and the Nelson<br />
Mandela Bay Championship, an official DP World<br />
Challenge Tour event. ■<br />
Andreas Brand, CEO of Mercedes-Benz South Africa,<br />
inspects the company’s rooftop solar installation.<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
14<br />
PHOTO: Mercedes-Benz South Africa
MESSAGE FROM REGIONAL MANAGER<br />
The Industrial Development Corporation’s (IDC) <strong>Eastern</strong> <strong>Cape</strong> office has a primary focus on supporting South Africa’s cornerstone sectors,<br />
having a strong focus on supporting local automotive operations, agro-processing including forestry, as well as the plastic and textiles<br />
manufacturing sectors within the province. The office has a presence across the vast province, having offices in Gqeberha and East<br />
London and forms part of the IDC's larger national footprint. The IDC contributed just under R1 billion in approvals in the <strong>Eastern</strong> <strong>Cape</strong> in<br />
the IDC’s last audited results.<br />
Regional Drivers & Opportunities<br />
The IDC has played the catalytic funder role<br />
in green energy, derisking the renewable<br />
energy space and funding some of the<br />
early wind farm projects in the country.<br />
This has resulted in significant investments<br />
by the IDC in the wind renewable space<br />
in the <strong>Eastern</strong> <strong>Cape</strong>, with the intent to take<br />
advantage of the abundant wind resources<br />
in the province to assist in addressing<br />
South Africa’s energy challenges by<br />
funding further green energy projects.<br />
A fundamental strategy for our regional<br />
office is being a key role player within the<br />
automotive sector and its value chain,<br />
encouraging and developing localisation<br />
of automotive component manufacturing.<br />
IDC has supported catalytic projects in<br />
the automotive sector and through our<br />
support has developed Small and Medium<br />
Enterprises (SMEs) which has further<br />
embedded localisation in the automotive<br />
value chain.<br />
The <strong>Eastern</strong> <strong>Cape</strong> has a diverse climate<br />
and landscape which ranges from deserts<br />
to lush forests of the Tsitsikamma and a<br />
sizable coastline. As a regional office, we<br />
have a vested interest in developing the<br />
agro-processing value chain and expanding<br />
existing forestry plantations and timber<br />
processing plants.<br />
The <strong>Eastern</strong> <strong>Cape</strong> is the second largest<br />
producer of citrus fruit in the country.<br />
South Africa is known for contributing 50%<br />
of the world’s mohair, most of which is<br />
produced within our province. Key<br />
agricultural sector drivers for the region lie<br />
within deciduous fruits, pineapples,<br />
chicory, dairy, goats, and sheep.<br />
Three harbours within the province give<br />
it an added economic advantage as they<br />
facilitate inbound and outbound logistics,<br />
enabling international trade. The further<br />
harbour developments within the industrial<br />
node of the Coega SEZ and East London<br />
SEZ are set to give this province an added<br />
advantage in the logistics and trading space.<br />
Supporting Communities<br />
The <strong>Eastern</strong> <strong>Cape</strong> office also played an<br />
instrumental role in assisting businesses<br />
that were impacted by the devastating<br />
floods that impacted the <strong>Eastern</strong> <strong>Cape</strong> and<br />
KwaZulu Natal. Through the IDC’s special<br />
flood relief fund, IDC funded two businesses<br />
in the Port St Johns area, a river sand<br />
mining business and a 4 star resort. Through<br />
partnering with us, both organisations<br />
were able to repair building structures and<br />
replace equipment and furniture damaged<br />
by the floods.<br />
Our office is centred on growing<br />
our regional economy and financing<br />
entrepreneurs which reaches communities.<br />
At the heart of our operation is our<br />
commitment to assisting those in our<br />
communities who are marginalised and<br />
need a helping hand which includes both<br />
CSI initiatives and structuring communities<br />
into transactions. On the humanitarian<br />
front, we have teamed up with our<br />
Corporate Social Investment (CSI) unit in<br />
support of communities throughout the<br />
<strong>Eastern</strong> <strong>Cape</strong> which included relief funding<br />
for the damage from flooding.<br />
We have partnered with Ikhala TVET<br />
College’s Queen Nonesi Campus, building<br />
a computer lab and with the Ingwe TVET<br />
College campus to construct a simulation<br />
room for the college’s Maluti campus,<br />
located in Matatiele.<br />
These are just a few of our CSI projects in<br />
addition to several strategic partnerships<br />
with Non-Profit Organisations, with whom<br />
we have managed to build and upgrade<br />
schools and provide basic needs to name<br />
a few.<br />
Kingsley Dell-Robertson<br />
<strong>Eastern</strong> <strong>Cape</strong> Regional Manager<br />
Into the Future<br />
Our focus as a regional office is to continue<br />
to develop and build based on diverse and<br />
economically viable opportunities within<br />
the <strong>Eastern</strong> <strong>Cape</strong>. We intend to fully<br />
support SMEs through the various tailored<br />
funding instruments at our disposal and<br />
contribute towards growing the <strong>Eastern</strong><br />
<strong>Cape</strong>’s economy.<br />
<strong>Business</strong>es not only in our province but<br />
throughout the entire country, have suffered<br />
because of electricity supply constraints. One<br />
of our key offerings is being able to assist<br />
SMEs to alleviate the impact of load shedding<br />
through our competitive energy solution<br />
funds which will provide an alternative<br />
energy supply and ensure that their<br />
operations continue running with minimal<br />
impact on production.<br />
We remain committed to building and<br />
investing in strategic business<br />
partnerships, forging innovative<br />
collaborations with our various<br />
stakeholders, and supporting the growth of<br />
the <strong>Eastern</strong> <strong>Cape</strong> province’s economy.<br />
Case Study<br />
Carbo Ferrum is a black-owned steel<br />
fabrication company based in East London,<br />
in the Mdantsane Industrial area. The<br />
company was established in 2017 and its<br />
primary business is the manufacturing<br />
of galvanized monopoles and steel poles,<br />
plasma and laser cutting, sub-station<br />
steelwork as well as general and structural<br />
steelwork with a focus on the electrical<br />
transmission sector.<br />
Through partnering with the IDC and<br />
acquiring new machinery, Carbo Ferrum is<br />
now able to reduce its outsourced activities<br />
and increase its output capacity, growing<br />
it operation and creating jobs within the<br />
community of Mdantsane.<br />
East London<br />
2nd Floor Block B, Chesswood Office Park, Winkley Street,<br />
Berea. Tel: 043 721 0733/4 Email: eceast@idc.co.za<br />
Gqeberha<br />
Southern Life Gardens, Block A ( Ground), 70 2nd Avenue<br />
Newton Park. Tel: 041 363 1640 Email: ecwest@idc.co.za<br />
https://www.idc.co.za/our-regions/eastern-cape/
SPECIAL FEATURE<br />
The renewable energy landscape is expanding<br />
The <strong>Eastern</strong> <strong>Cape</strong> is the site of several exciting and innovative projects such as the East<br />
London plant pictured here, which is producing vanadium battery electrolyte.<br />
By John Young<br />
The Humansdorp area supplies a significant<br />
portion of the dairy products that South Africa<br />
consumes. East London is known as the port<br />
that exports expensive German sedans. The<br />
mouth of the Coega River is where 60 000 tons of salt<br />
are produced every year.<br />
In <strong>2024</strong> and beyond, all of these statements remain<br />
true but for each of these <strong>Eastern</strong> <strong>Cape</strong> locations there<br />
is now an additional economic bounty that is going<br />
to transform the energy landscape of the province<br />
and potentially, the country.<br />
All of these sites are hosting exciting projects in<br />
the renewable energy field. The <strong>Eastern</strong> <strong>Cape</strong> has<br />
already established itself as the “Wind Power Province”<br />
but progress in manufacturing, green hydrogen and<br />
battery storage is opening new opportunities.<br />
The greater Humansdorp Jeffreys Bay area hosts<br />
no fewer than 13 wind farms so the announcement<br />
in March <strong>2024</strong> that Nordex Energy South Africa<br />
is to start making concrete tower sections at a<br />
manufacturing facility in Humansdorp makes<br />
economic sense.<br />
Up to 300 jobs will be created and work at the<br />
tower factory was expected to start in Q1 <strong>2024</strong><br />
with the first set of turbines due to be installed<br />
in the second half of the year. Having invested in<br />
the <strong>Eastern</strong> <strong>Cape</strong> since 2013, Nordex Energy South<br />
Africa boasts a significant footprint in the province,<br />
including a warehouse in Gqeberha and 573MW of<br />
installed capacity across five wind-power plants.<br />
Promoting renewables<br />
Both the Coega Special Economic Zone (SEZ), which<br />
is located at the Port of Ngqura just outside the<br />
city of Gqeberha, and the East London Industrial<br />
Development Zone (ELIDZ) have dedicated zones<br />
within their precincts for renewable energy projects.<br />
The ELIDZ has been recognised by Global<br />
Africa Eco-Parks, a United Nations Industrial<br />
Development Organization (UNIDO) initiative,<br />
for its environmental stewardship. The ELIDZ<br />
is targeting investors both in renewable<br />
manufacturing as well as the production and<br />
transfer of green power.<br />
The Coega Development Corporation (CDC)<br />
has published a Coega SEZ Energy Strategy that<br />
seeks to develop solar parks and other forms of<br />
alternative energy generation methods. It aims<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
16<br />
PHOTO: Bushveld Energy
SPECIAL FEATURE<br />
to position itself as an ideal export destination for<br />
products such as green ammonia.<br />
The Coega SEZ has been chosen by Hive<br />
Hydrogen SA as the location of a Green Hydrogen<br />
project which will be fully operational by 2026. The<br />
project will see a green ammonia plant constructed,<br />
valued at approximately $4.6-billion. The main<br />
development partners are BuiltAfrica and Hive<br />
Energy of the UK who have formed Hive Hydrogen<br />
SA but various other partners are involved.<br />
Local salt manufacturer Cerebos, who own the<br />
famous salt works on the Coega River, will supply<br />
desalinated water to the project. The hydrogen will<br />
be separated from the oxygen by an electrolyser,<br />
and hydrogen and nitrogen will be combined to<br />
form green ammonia which will be stored in liquid<br />
form at a tank at the Port of Ngqura, from where it<br />
can be exported around the world.<br />
Gas company Afrox is another partner, although<br />
there is no intention currently to convert the oxygen<br />
to pharmaceutical grade product as that market is<br />
currently well served.<br />
Batteries<br />
Within national government’s Integrated Resource<br />
Plan (IRP) there is a stipulation for battery storage.<br />
South Africa has so far issued a handful of utilityscale<br />
tenders which include battery storage. Ambri,<br />
a US company, has been contracted to supply a<br />
300MW/1 200MWh battery system for a combined<br />
wind and solar facility in the <strong>Eastern</strong> <strong>Cape</strong>. The local<br />
company is Earth & Wire. The first batteries for this<br />
project are expected to be delivered in the first<br />
half of <strong>2024</strong> with the installation being completed<br />
in 2026. The energy-storage facility itself will have<br />
the potential to generate an estimated 700MW of<br />
wind and 600MW of solar power.<br />
The first project to reach financial close under<br />
the Risk Mitigation Independent Power Producer<br />
Procurement Programme (RMI4P) was for a<br />
540MW/1.1GWh project in the Northern <strong>Cape</strong>.<br />
Eskom has embarked on a 500MW Battery Energy<br />
Storage System (BESS) project and has begun to<br />
award tenders.<br />
Through its partnership with the Master Artisans<br />
Academy of South Africa (MAASA), the ELIDZ hosts a<br />
Renewable Energy Centre of Excellence at its Science<br />
and Technology Park.<br />
The Independent Power Producers Projects<br />
Office within the Department of Mineral Resources<br />
and Energy released a Request for Proposals (RFP) for<br />
energy storage whereby bidders had to submit their<br />
proposals by early June 2023. This was for 513MW in<br />
the first phase, and when complemented by wind<br />
and solar projects, will provide baseload energy.<br />
Lithium and vanadium are two preferred<br />
solutions for new-generation batteries. Australia,<br />
Chile and China are the world’s top producers of<br />
lithium, with Argentina and Brazil making up the<br />
top five.<br />
South Africa is in third place in terms of vanadium<br />
production, but China makes more than twice as<br />
much as South Africa and the second and fourthplaced<br />
Russia and Brazil combined.<br />
Bushveld Minerals in Limpopo describes itself<br />
as being “one of only three operating primary<br />
vanadium producers” in the world. Glencore<br />
and Marula Mining are the other South African<br />
companies that mine vanadium.<br />
But Bushveld Minerals has gone beyond mining.<br />
Its subsidiary, Bushveld Energy, is to produce<br />
vanadium battery electrolyte at its new Belco facility<br />
in East London. The aim is ultimately to produce<br />
battery systems. The plant was built with the<br />
support of the Industrial Development Corporation<br />
(IDC), which is well placed to assist in the creation of<br />
a value chain for vanadium batteries in South Africa.<br />
If Bushveld Energy reaches its target of eight-million<br />
litres, it will be the largest plant of its kind outside<br />
of China. ■<br />
PHOTO: ELIDZ 17<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
SPECIAL FEATURE<br />
A century of automotive manufacturing<br />
The <strong>Eastern</strong> <strong>Cape</strong> celebrated an important milestone in <strong>2024</strong> and welcomed a<br />
new motor marque to its OEM stable. Investment is happening and employment<br />
numbers are good.<br />
The Minister of Trade, Industry and Competition, Ebrahim Patel, and<br />
Samir Cherfan, Stellantis Middle East and Africa Chief Operating<br />
Officer, have signed a Memorandum of Understanding.<br />
The year <strong>2024</strong> marked a significant milestone for the <strong>Eastern</strong><br />
<strong>Cape</strong>’s motor industry. Not only did the year signify a century<br />
since Ford Motor Company’s first model was produced, but<br />
the celebration followed closely on the 2023 announcement<br />
by Stellantis that it would be making a big investment into the<br />
province. Stellantis makes and distributes 14 automotive brands,<br />
from Alfa Romeo to Maserati.<br />
Stellantis has confirmed its intention to develop a R3-billion<br />
greenfield manufacturing facility in the Coega SEZ with the Industrial<br />
Development Corporation (IDC) and the Department of Trade, Industry<br />
and Competition (the dtic). This forms part of the company’s strategy<br />
for the Middle East, South Africa and Sub-Saharan Africa, where it plans<br />
to grow market share above 12% by 2030.<br />
The first vehicles are expected to start rolling off the assembly line<br />
in early 2026 and the CEO of the Coega Development Corporation<br />
(CDC) has given the province’s newest original equipment<br />
manufacturer (OEM) a warm welcome. Khwezi Tiya went on to say that<br />
“an anticipated 1 800 jobs will be created in the metro and about 2 097<br />
for the <strong>Eastern</strong> <strong>Cape</strong> Province”.<br />
A century on, Ford continues to invest in its <strong>Eastern</strong> <strong>Cape</strong><br />
facility. The company now makes engines at its Struandale plant<br />
in Gqeberha where R600-million is allocated to making the 3.0L<br />
V6 turbo-diesel engine for the Ford Ranger, which is assembled<br />
in Tshwane.<br />
Ford has also initiated<br />
discussions about the feasibility<br />
of developing a sophisticated rail<br />
corridor between Gauteng and<br />
the <strong>Eastern</strong> <strong>Cape</strong>. The company<br />
wants to send parts to Pretoria<br />
and export vehicles through the<br />
Port of Gqeberha.<br />
In a five-year period, all of<br />
the OEMs with long histories<br />
in the province, Mercedes-<br />
Benz South Africa, Volkswagen<br />
Group Africa, Isuzu and Ford,<br />
collectively invested more than<br />
R22-billion in plant expansions<br />
and preparations for new<br />
models. Chinese group FAW is<br />
the other large OEM active in<br />
the province.<br />
Major makers<br />
The 520 963m² Kariega facility of<br />
Volkswagen South Africa is one<br />
of four plants worldwide that<br />
makes right-hand-drive Polos<br />
but the only one in the world<br />
that makes the Polo GTI.<br />
By the start of 2018,<br />
Volkswagen South Africa had<br />
spent more than R6.1-billion on<br />
its plant in Kariega, an investment<br />
that enabled the manufacture of<br />
two-million Polos and Polo Vivos.<br />
This milestone was achieved in<br />
December 2022 when a lefthand-drive<br />
Ascot Grey VW Polo,<br />
set to be shipped to Germany,<br />
rolled off the production line.<br />
More than 80% of the plant’s<br />
vehicles are exported.<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
18<br />
PHOTO: Stellantis
The Kariega plant of Volkswagen Group Africa has gone past the two-million mark in Polo and Polo Vivo production.<br />
Mercedes-Benz South Africa’s new C-Class project<br />
(W206) has sparked several other related investments, which<br />
collectively will create 2 078 new jobs over two years. The<br />
production of the C-Class vehicle is a technological marvel<br />
and the plant regularly wins international awards for quality.<br />
MBSA has also begun the rapid expansion of its electric<br />
vehicle (EV) charging station infrastructure. Phase 1, which is<br />
being rolled out by Chargify, will see R15-million invested in 67<br />
stations in <strong>2024</strong> to be followed by a further R25-million set aside<br />
to increase the number of stations to 126 nationally.<br />
The partnership with Chargify is part of MBSA’s expansion of its<br />
Enterprise and Supplier Development (ESD) programme. In 2021,<br />
MBSA announced a R13-billion investment to accommodate the<br />
production of the latest C-Class vehicle. This included three new<br />
assembly lines, a new body shop and more advanced robots.<br />
Much of this is happening in the East London Industrial<br />
Development Zone (ELIDZ), which has made a commitment<br />
to localising the 2nd and 3rd-tier automotive components that<br />
are not currently in South Africa. Both the ELIDZ and the Coega<br />
Special Economic Zone have areas dedicated to automotive and<br />
automotive components manufacture.<br />
Isuzu SA has completed its consolidation project, with truck and<br />
bakkie manufacturing now taking place at its new headquarters<br />
in Struandale, Gqeberha. Isuzu launched the seventh-generation<br />
D-MAX bakkie in 2022, using for the first time a new body shop at the<br />
Struandale manufacturing plant and a new chassis assembly line at the<br />
company’s Kempston Road facility.<br />
Home-grown manufacturer of powertrain and catalytic<br />
converter assembly systems, Jendamark, exports to 18 countries.<br />
Continental Tyre South Africa is producing a 19-inch tyre at its<br />
New Brighton facility in Port Elizabeth.<br />
An Aftermarket Programme to assist independent mechanics<br />
and panelbeaters to get better access to the budgets spent<br />
annually by the insurance industry, has identified 73 panel<br />
beaters in its first year of operation. The intention is to find up<br />
PHOTO: Volkswagen Group Africa<br />
19<br />
to 300 such businesses to link them<br />
to the automotive value chain, which<br />
includes the insurance industry,<br />
estimated to be in the region<br />
of R40-billion, and the national<br />
government automotive fleet (R100-<br />
million). The scheme is run by the<br />
Automotive Industry Development<br />
Centre – <strong>Eastern</strong> <strong>Cape</strong> (AIDC-EC) and<br />
offers a three-year programme for<br />
participants.<br />
The Provincial Government of<br />
the <strong>Eastern</strong> <strong>Cape</strong> intends partnering<br />
with the private sector to establish a<br />
Component Supplier Development<br />
Fund to expand access to finance for<br />
smaller enterprises.<br />
Another task of the AIDC-EC<br />
is to prepare the province for the<br />
introduction of electric vehicles. This<br />
entails promoting renewable energy<br />
projects within the sector, rolling out<br />
skills programmes to assist with the<br />
transition to new technologies and<br />
installing electric-vehicle charging<br />
stations on major routes. The most<br />
recent announcement stated that<br />
13 EV charging stations would be<br />
established in <strong>2024</strong>. ■<br />
R22-billion: invested by<br />
Big Four in five years<br />
60 000: employed<br />
118: component suppliers<br />
56%: of South African cars exported<br />
Source: SOPA <strong>2024</strong>
The AIDC-EC story<br />
The AIDC-EC is an <strong>Eastern</strong> <strong>Cape</strong> Provincial Government entity<br />
focused on assisting the automotive sector in the <strong>Eastern</strong><br />
<strong>Cape</strong> to remain viable and competitive.<br />
Thabo Shenxane, Chief Executive Officer<br />
Engagements by key stakeholders in<br />
the automotive sector are paramount<br />
for the AIDC-EC towards achieving its<br />
mandate. The agency values partnerships,<br />
collaborations and coordination and strives for the<br />
consolidation of collective efforts for the growth<br />
of the automotive sector in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Through its role as the Secretariat of the<br />
Provincial Automotive Advisory Council (PAAC) for<br />
the <strong>Eastern</strong> <strong>Cape</strong>, chaired by MEC for Economic<br />
Affairs, Honourable Mlungisi Mvoko, the AIDC-EC<br />
is at the pulse of facilitation and coordination of<br />
effective communication among council members.<br />
The council comprises several industry bodies,<br />
government representatives, original equipment<br />
manufacturers (OEMs) and suppliers.<br />
PHOTO: Mercedes-Benz South Africa<br />
PHOTO: Motus ISUZU<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
20
PROFILE<br />
The automotive industry leads the <strong>Eastern</strong> <strong>Cape</strong> manufacturing sector.<br />
THE AIDC-EC OFFERS:<br />
• Bursaries for engineering qualifications<br />
• Support for the aftermarket sector<br />
• Component supplier competitiveness<br />
• <strong>Eastern</strong> <strong>Cape</strong> implementation of SAAM 2035<br />
• Promotion of e-mobility (electric vehicles, EV)<br />
150<br />
of the 430<br />
component<br />
suppliers<br />
46.5%<br />
of South Africa’s<br />
light vehicle<br />
production<br />
53.5%<br />
of South Africa’s<br />
light vehicle<br />
exports<br />
Source: NAACAM Automotive Export Manual 2023<br />
The <strong>Eastern</strong> <strong>Cape</strong> Province hosts three ports and two Special Economic Zones (SEZ)<br />
21<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
PHOTO: Volkswagen Africa<br />
2022/23 Auto Engagements –<br />
Outcomes<br />
Performance highlights<br />
Successful<br />
Auto Franchise Expo and<br />
Aftermarket Service<br />
3-4 October 2022<br />
Auto Sector Aftermarket<br />
Programme (R12-million over<br />
three years)<br />
Automotive Supplier<br />
B2B Indaba<br />
17 October 2022<br />
Component<br />
Development Supplier<br />
Fund<br />
EV Roundtable Indaba<br />
19 February 2023<br />
Public electric vehicle charging<br />
stations (R7-million)<br />
EV skills training with OEMs<br />
(R4-million)<br />
Skills development efforts<br />
Auto Engineering Skills Indaba and<br />
Career Expo 2022<br />
Objectives:<br />
• Addressing SAAM 2035 Pillar<br />
6: “Industry Technology and<br />
Associated Skills Development”<br />
• Establishing a platform for<br />
discussions and solutions to<br />
enhance engineering skills in the<br />
<strong>Eastern</strong> <strong>Cape</strong><br />
• Fostering a productive partnership<br />
between industry and higher<br />
education institutions<br />
Outcomes:<br />
• Formulate a comprehensive,<br />
province-wide five-year master<br />
plan to foster engineering and<br />
automotive management skills<br />
across all tertiary institutions, aligned<br />
with SAAM 2035’s Pillar 6<br />
• Generating enthusiasm for automotive<br />
engineering and entrepreneurship<br />
among young learners and<br />
professionals in the region<br />
• Implementation of<br />
incubation of learners<br />
in e-mobility: 33<br />
• Annual performance<br />
plan targets attained:<br />
85%<br />
• Quality certification<br />
retained: ISO9001<br />
• Aftermarket SMMEs<br />
supported: 10<br />
• Number of employees<br />
impacted via worldclass<br />
manufacturing<br />
cost improvements at<br />
contracted suppliers:<br />
4 170<br />
• Skilled employees<br />
trained towards worldclass<br />
manufacturing:<br />
813<br />
• Bursaries awarded<br />
for digital skills in<br />
engineering: 42<br />
• Consecutive<br />
unqualified audit: 19<br />
• Fraud and ethics issues<br />
reported: 0<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
22
eNtsa’s newly launched Engagement and<br />
Innovation facility<br />
An Engagement and Innovation facility has been<br />
launched. The unit hosts advanced testing equipment.<br />
The new facility is located at Mandela University’s<br />
Ocean Sciences Campus and the advanced testing<br />
equipment allows for environmental testing and<br />
includes corrosion testing chambers, a collaborative<br />
robot testbed, 3D scanning and the capacity to host<br />
new expansions to support future industry needs.<br />
One special piece of equipment is the highvoltage<br />
training system, pictured below. This system<br />
emulates the operation of an electric vehicle, mirroring<br />
its functionality. It was acquired towards the end of<br />
2023. It is the only machine of its kind in the Southern<br />
Africa region and was funded by the AIDC-EC.<br />
The high-voltage training system is an<br />
advanced piece of equipment<br />
The main reason for purchasing this machine<br />
is to align with the forthcoming electric vehicle<br />
transition in the province. The uYilo eMobility<br />
Programme located at Nelson Mandela University<br />
will use this system to deliver comprehensive<br />
training to various stakeholders in e-mobility.<br />
These stakeholders encompass students,<br />
lecturers (both in tertiary institutions and TVET<br />
colleges) and industry professionals.<br />
FUTURE AIDC-EC WORK<br />
The AIDC-EC and the <strong>Eastern</strong> <strong>Cape</strong> Government,<br />
through the involvement of both the Premier and MEC<br />
Mvoko, has done a huge amount of lobbying with the<br />
relevant national departments in connection with the<br />
anticipated White Paper and provincial support for the<br />
automotive industry in the EV era.<br />
The <strong>Eastern</strong> <strong>Cape</strong>’s most important issues relate<br />
to retaining existing investors such as OEMs and<br />
component suppliers during this transition phase<br />
and attracting new investors into the province.<br />
AIDC-EC current projects:<br />
• On behalf of the Provincial Government, investing<br />
in 13 EV charging stations around the province to<br />
augment industry efforts.<br />
• In partnership with Mercedes-Benz SA Learning<br />
Academy, a project to train youth in high voltage/<br />
battery safety: 48 apprentices.<br />
• In partnership with the Nelson Mandela University<br />
uYilo programme, a project to enhance its EV<br />
capacity-building programmes.<br />
Africa’s economic boom, automotive opportunity<br />
Africa is home to six of the world’s fastest-growing<br />
economies, with consumer spending rising by 10%<br />
annually and projected to have the largest global<br />
workforce by 2035.<br />
The African Continental Free Trade Area (AfCFTA)<br />
will create a single integrated market encompassing<br />
a population of over 1.3-billion and a combined GDP<br />
of $3.4-trillion. Forecasts predict that new light vehicle<br />
sales in Africa will reach 1.8-million units in 2027,<br />
double the volume of 2019. By developing regional<br />
value chains, vehicle sales across Africa could reach<br />
five-million units annually. (Source: Afreximbank)<br />
African vehicle production hubs are in Algeria,<br />
Morocco, Nigeria, Ghana, Kenya, Tunisia, Uganda and<br />
South Africa. African vehicle production increased by<br />
13% in 2022, with South Africa as the leading vehicle<br />
producer with an increase of 11.8%, with 555 889<br />
units, exceeding the global year-on-year increase in<br />
global vehicle production of 6.0%.<br />
Africa’s automotive market (excluding South Africa)<br />
currently represents only 0.5% (561 100 units) of the<br />
global market. South Africa contributes 0.6% to global<br />
automotive production. Over the medium term, the<br />
African automotive market is expected to grow rapidly<br />
due to supportive government incentives and increasing<br />
urbanisation. Mordor Intelligence predicts that the<br />
African automotive market will grow from 1 325 890<br />
units in 2023 to 1 777 690 by 2028, at a CAGR of 6.04%.<br />
Mordor valued the industry at $30.4-billion in 2021 and<br />
projects it will reach $42-billion by 2027. ■<br />
PHOTO: Ford Motor Company
FILE<br />
e Nelson Mandela Bay<br />
PROFILE<br />
The Nelson Mandela Bay<br />
he <strong>Business</strong> Nelson The Nelson Mandela Chamber<br />
Mandela Bay<br />
Bay<br />
A catalyst<br />
usiness <strong>Business</strong> for economic growth Chamber<br />
in the region.<br />
PROFILE<br />
PROFILE<br />
alyst for economic growth in the region.<br />
A catalyst for economic growth in the region.<br />
catalyst<br />
The for<br />
heartbeat Nelson Mandela<br />
economic<br />
of business Bay <strong>Business</strong><br />
growth in<br />
success Chamber<br />
the region.<br />
in the is a region. not-for-profit An eighth task team, called Industry<br />
he Nelson organisation Mandela Bay representative <strong>Business</strong> Chamber of a broad spectrum is a not-for-profit of businesses An 4.0, eighth begins task its work team, in 2019 called to prepare<br />
The Nelson Mandela Bay <strong>Business</strong> Chamber is a not-for-profit<br />
Industry<br />
in Nelson Mandela Bay. It is one of the largest business local businesses for the digital shift.<br />
organisation representative organisation representative of a broad of spectrum a broad spectrum of businesses of businesses 4.0, begins its work in 2019 to prepare<br />
he Nelson associations Mandela in the Bay <strong>Eastern</strong> <strong>Business</strong> <strong>Cape</strong>, Chamber with a membership is a not-for-profit of more • Geographical clusters<br />
in Nelson Mandela in Nelson Bay. Mandela It is Bay.<br />
than organisation 700 businesses one of the largest business local businesses •<br />
representative of a broad spectrum of businesses Task teams for the digital shift.<br />
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employing<br />
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over 100<br />
business<br />
000 people<br />
associations<br />
in a diverse the <strong>Eastern</strong><br />
array<br />
associations of in sectors. in the <strong>Eastern</strong> <strong>Cape</strong>, with a membership of more<br />
Nelson Mandela Bay.<br />
Enterprise • Innovative Development<br />
interventions to<br />
<strong>Cape</strong>, with a membership of more than 700 businesses employing<br />
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EASTERN CAPE BUSINESS <strong>2024</strong><br />
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Task teams<br />
The Nelson Mandela Bay <strong>Business</strong> Chamber has task teams in place to<br />
facilitate the ease of doing business. The task teams are:<br />
• Electricity<br />
• Water and Sanitation<br />
• Transport and Logistics<br />
• Safety and Security<br />
• Property<br />
RESURGE<br />
We have adopted a more activist, collaborative and action-orientated<br />
approach in pursuing our vision of being the leading catalyst for<br />
Nelson Mandela Bay to retain and attract business. We have strong<br />
partnerships with Naamsa, the Presidential Climate Commission,<br />
Nacaam and Gift of the Givers, and are currently expanding this to<br />
various other stakeholders.<br />
We have formed part of the revitalisation of the Nelson Mandela Bay<br />
Civil Society Coalition to encourage all quarters of our community to get<br />
involved in driving for a better metro to live and work in.<br />
The City Council approved our application for the Broad Framework<br />
MOU that allows member companies to adopt a variety of municipal<br />
infrastructure that needs fixing.<br />
We concluded a groundbreaking initiative where we signed a<br />
Memorandum of Understanding with the Municipality which allows<br />
businesses to safeguard sub-station infrastructure within their area<br />
of operations, thus ensuring minimal interruptions to power supply<br />
and continuity of business operations. Twenty sub-stations have been<br />
adopted by 12 companies thus far.<br />
We initiated the successful implementation of a more tenable<br />
and planned 24-hour voluntary stage 5+ loadshedding schedule for<br />
qualifying industry members. To date, 40 companies participate in<br />
the initiative.<br />
As part of the plan to mitigate some of the risks associated with the<br />
water crisis facing our city, the Chamber established an Adopt-A-School<br />
initiative and member companies are assisting with fixing faulty or<br />
damaged plumbing systems at schools that have been flagged as high<br />
water consumers. Currently over 40% of the Metro’s water is lost due to<br />
leaks of which 10% of this happens at schools. Additionally, assistance<br />
has been provided to 30 schools and clinics for the establishment of<br />
water tanks to harvest rain, while six boreholes have been installed at six<br />
schools for use by the surrounding communities.<br />
We have established geographic clusters which bring together<br />
businesses operating in the same area to collaborate in resolving<br />
enabling environment issues. These clusters include Deal Party,<br />
Perseverance, Struandale, North End, Kariega, Beachfront, Neave/<br />
Korsten, Fairview and the Baakens Valley. Others are currently<br />
under development.<br />
CONTACT DETAILS<br />
25<br />
The Nelson Mandela Bay <strong>Business</strong><br />
Chamber runs a successful Exporter<br />
Development Programme.<br />
In total just under 1.7-million<br />
litres of water per day was saved<br />
through the targeted Adopt-A-<br />
Leak intervention in the seven<br />
zones, with an average reduction<br />
of 23% in each zone.<br />
In 2023, our Help Desk<br />
assisted businesses in unlocking<br />
116 red-tape/bottlenecks issues.<br />
We have focused our Task<br />
Teams to prioritise the most<br />
pressing issues of water and<br />
sanitation, electricity, roads and<br />
transport, safety and security and<br />
property.<br />
We recently established a<br />
Property Task Team with a key<br />
focus on facilitating more efficient<br />
land planning and development<br />
processes between major<br />
stakeholders in the property<br />
sector and the Nelson Mandela<br />
Bay Municipality as part of<br />
resurging the city.<br />
LEAD<br />
We reimagined our approach<br />
to Trade and Investment by<br />
launching an Investors Forum,<br />
which is focused on the issues<br />
that affect the retention of<br />
investment in the Metro.<br />
We successfully challenged<br />
Nersa’s municipal tariff<br />
methodology which would have<br />
been deployed to determine and<br />
approve electricity tariffs to be<br />
charged by municipalities for the<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
A Renewable Energy Cluster has been established by the Nelson Mandela Bay <strong>Business</strong> Chamber.<br />
next two years. The High Court ruled in our favour and we were able to<br />
contain tariff increases to 15.1% for municipalities across the country.<br />
We have established a Local Economy Revival Think Tank which<br />
has seven workstreams, with a key focus on unlocking the potential of<br />
Nelson Mandela Bay to become a diverse manufacturing and export<br />
hub of Africa.<br />
We have established the Local Economy Reinvention Think Tank which<br />
consists of several work streams, namely the Hive Project Downstream<br />
Industries / Hydrogen Hub; Electrolyser Manufacturing Study (address<br />
global storage); Altermotive Mobility; Green Energy Hub (Climate Change<br />
SEZ); Global Gaps (medical devices, wind turbine manufacturing, end of life<br />
engines, etc); Skills Development Hub (plus skills inventory); and Enterprise<br />
Development (value chain enhancement). The group comprises outof-the-box<br />
thinkers such as engineers and innovators from various NMB<br />
companies. Its objective is to unlock the city’s untapped potential such as<br />
engineering and technical capabilities by leveraging the strengths of its<br />
two ports and highly skilled individuals.<br />
We have established the Trade and Investment Desk whose main<br />
objective is the marketing of Nelson Mandela Bay as a mecca for<br />
investments to potential investors and foreign-based companies. The<br />
Desk further conducts research dedicated to attracting investors to the<br />
Metro; hosts inward-buyer delegations; collaborates with stakeholders<br />
for outbound trade missions to support the market expansion of<br />
local businesses; and establishes partnerships, synergies, collaborative<br />
agreements and MOUs with international organisations and business<br />
Chambers to unlock international markets for NMB businesses.<br />
EMPOWER<br />
The Chamber’s Enterprise Development Programme, driven through<br />
a partnership with ECDC, has benefited 218 businesses in the <strong>Eastern</strong><br />
<strong>Cape</strong> since inception in 2014. The figure includes 27 graduates who<br />
graduated from the programme in 2022. A further 54 are currently<br />
benefiting during the 2023/24<br />
period. The Chamber conducted<br />
an improvement survey<br />
wherein it was found that of<br />
the 218 businesses, 162 are still<br />
operational. ECDC and NMBBC<br />
further partnered to support<br />
these 162 businesses between<br />
2023/24 and 2025/26 through<br />
extensive networking, access<br />
to market and organisational<br />
development.<br />
The Entrepreneurship Desk<br />
hosted three business breakfasts<br />
dedicated to connecting our<br />
MSMEs with trade and funding<br />
opportunities available in the<br />
market, while they got the<br />
opportunity to network among<br />
each other.<br />
The supported 15 emerging<br />
exporters in 2022/23 while 17<br />
have been inducted for the<br />
2023/<strong>2024</strong> period. In total, the<br />
programme has supported 65<br />
beneficiaries.<br />
The Enterprise Development<br />
Programme has inducted 54<br />
MSMEs from the services sector<br />
for the 2023/24 period. These<br />
MSMEs are being equipped<br />
with financial management<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
26<br />
PHOTO: BTE Renewables
and controls; market penetration; and organisational development<br />
interventions.<br />
The Mentorship Network has uplifted and supported 75 mentees<br />
through four phases of the programme, which commenced in 2022.<br />
GROW<br />
We published 10 editions of ResurgeLive (formerly InfocomLIVE).<br />
Editions of the SMME Newsletter and the Clusters Newsletter were<br />
also published.<br />
We further produced the Annual Review, which showcases the<br />
Chamber’s financials and is printed and distributed to members during<br />
the Annual General Meeting. We have also grown our following on our<br />
social media platforms: Facebook 10 167, LinkedIn 3 622, X 3 771 and<br />
Instagram 2 066.<br />
CONNECT<br />
Events were back in full swing with 42 in 2022. In 2023 we successfully<br />
hosted 43 events. The Chamber’s Annual Banquet, which attracts over<br />
800 attendees, remains one of the sought-after events in the Bay’s<br />
calendar as it brings together a spectrum of industry leaders across<br />
the Metro.<br />
The Women Empowerment Network has hosted six workshops and<br />
networking events dedicated to supporting women in business and<br />
women professionals in Nelson Mandela Bay.<br />
The Connect Network has hosted five Emerging Professionals Social<br />
Connect, dedicated to providing a platform to emerging professionals to<br />
meet like-minded people, connect and network among each other.<br />
Through the Professionals Social Connect, we established five<br />
young professionals Think Tanks, namely water and electricity;<br />
tourism, arts and culture; infrastructure; and safety and security. These<br />
Nelson Mandela Bay has much to offer investors, not least when it<br />
comes to tourism infrastructure and golden beaches.<br />
PROFILE<br />
PROFILE<br />
The Nel<br />
Busines The Ne<br />
Think Tanks met to discuss,<br />
research and innovatively<br />
formulate proposals to tackle<br />
challenges faced by the Metro.<br />
We launched A catalyst Busine<br />
an for econo<br />
Empowerment Network,<br />
which consists of A three catalyst for ec<br />
subnetworks namely The the Women Nelson Man<br />
Empowerment Network, organisation<br />
The<br />
the re<br />
Nelson M<br />
Connect Network and in the Nelson Ma<br />
organisation<br />
Mentorship Network. Combined, associations in<br />
in Nelson M<br />
the Empowerment than Network 700 businesses<br />
It is one<br />
em<br />
hosted two Mentorship of sectors.<br />
<strong>Cape</strong>,<br />
phases<br />
with a memb<br />
that supported 39 mentees, The over Nelson and<br />
100 000 Mandel peop<br />
hosted nine events that for economic attracted<br />
The Nelson developm Ma<br />
over 100 attendees to of each collaboration for<br />
event<br />
economic betwee deve<br />
in 2023.<br />
serves of as collaboration the foundation bet<br />
The serves <strong>Business</strong> as the Chamb found<br />
SUSTAIN in the Bay. region The for <strong>Business</strong> over 1<br />
We successfully launched team success of dedicated a<br />
in the staff regioa<br />
Nelson Mandela Bay ease Climate of doing The <strong>Business</strong> business Cha<br />
Change Coalition also to builds volunteers,<br />
tackle international lobbyin<br />
climate change challenges<br />
owners and and companies’<br />
in<br />
internation su<br />
the Metro.<br />
tional relations to<br />
The Presidential Climate<br />
international marke<br />
Change Commission Visionhas<br />
appointed a team to undertake<br />
To be Vision a leading catalyst fo<br />
a viability study for a potential<br />
To be a leading c<br />
climate change SEZ for NMB.<br />
Nelson Mandela Ba<br />
We established<br />
Mission<br />
the CSR<br />
Cluster whose objective<br />
By influencing Mission<br />
to<br />
pool resources, as a collective,<br />
the factor<br />
enabling By influencing business envir the fa<br />
to develop a sustainable<br />
enabling<br />
project<br />
business e<br />
which will have high impact on<br />
the local economy.<br />
Task Task Teams teams<br />
We established<br />
The Nelson<br />
the<br />
Mandel<br />
Renewable Energy The Nelson Mandela Ba<br />
of<br />
Cluster<br />
three task teams<br />
which has ignited of significant seven task teams to fa<br />
doing business. The<br />
interest from some of the The task teams are:<br />
•<br />
Metro’s<br />
Infrastructure T<br />
largest energy users • who Water have Task Team<br />
- Roads and Sto<br />
now joined forces • to explore Roads and Storm<br />
- Water Sub-gro<br />
alternative energy • solutions SME<br />
- Electricity<br />
to Task Team<br />
Sub<br />
help sustain their • operations.<br />
•<br />
Electricity<br />
SMME Task<br />
and<br />
Tea<br />
En<br />
This cluster represents • 25%<br />
• Transport of<br />
Special<br />
the<br />
Project and Lo<br />
Metro’s current electricity • Metro usage Collaborat<br />
and could potentially • reduce Enterprise Trade the and Develo Investm<br />
stages of loadshedding<br />
The<br />
for<br />
Nelson<br />
the<br />
Mand<br />
entire Metro. ■<br />
EASTERN<br />
ment<br />
CAPE<br />
Programme<br />
BUSINES<br />
PHOTO: Sharon Mugridge from Pixabay<br />
27 EASTERN CAPE BUSINESS <strong>2024</strong><br />
EASTERN CAPE BUS
Border-Kei Chamber of <strong>Business</strong> provides key services<br />
to over 650 member organisations, and aims to be the<br />
“voice of business” in the region.<br />
VALUE PROPOSITION<br />
To be the “voice of business” promoting an environment<br />
for growth and sustainability through maintaining strong,<br />
proactive relations with both internal and external<br />
stakeholders, including provincial and local government,<br />
member companies, other business organisations and<br />
organised labour.<br />
Border-Kei Chamber of <strong>Business</strong> (BKCOB) has offices<br />
in East London and Queenstown (Komani), which serve<br />
the greater Border-Kei region.<br />
SERVICES AND BENEFITS TO MEMBERS<br />
BKCOB offers the following key services:<br />
Member listing: After joining, members are added to<br />
the website directory and receive their proud member<br />
logo to add to their signature as part of their package.<br />
Membership certificate: New members’ induction<br />
and networking functions ‒ the Chamber holds six new<br />
members’ induction and networking functions annually,<br />
and these provide a valuable informal but structured<br />
opportunity to meet a broad range of businesspeople.<br />
Letters of support: The Chamber offers letters of<br />
support to members who are in good standing for their<br />
submissions for government tenders as well as letters<br />
of introduction to members who are looking to increase<br />
the scope of their businesses.<br />
<strong>Business</strong> Hi-Lite magazine: This glossy B2B<br />
magazine is now in-house and produced quarterly,<br />
with set themes for each edition, adding relevant<br />
topics and information/news of what’s happening. It<br />
also features Chamber activities and developments<br />
in the area.<br />
Trade and information: Aside from trade assistance<br />
and information, the Chamber is also certified to<br />
issue Certificates of Origin for exporting companies.<br />
Invest Buffalo City: A collaborative initiative where<br />
members can find a variety of economic information<br />
on Buffalo City. It provides a platform to attract<br />
international investors, as well as exposure for local<br />
companies.<br />
Committees: The Chamber has a robust and<br />
effective committee structure to facilitate members’<br />
participation and to enable the Chamber to fulfil its<br />
role as the “voice of business”. Over 120 voluntary<br />
business professionals participate.<br />
TURNOVER<br />
BKCOB represents over 650 member<br />
organisations that generate an estimated annual<br />
turnover of R73-billion, and that employ some<br />
58 000 people who earn an estimated annual<br />
income of R19-billion in total.
Tel: +27 43 743 8438<br />
Fax: +27 43 748 1507<br />
Chamber House, The Hub,<br />
Bonza Bay Road, Beacon Bay, East London<br />
The Chamber has built a relationship with<br />
the metro to ensure we create an enabling<br />
environment within which businesses<br />
thrive. To this end, the Chamber has created<br />
initiatives to actively attract investment into<br />
our city.<br />
Port expansion remains one of Chamber’s<br />
main focus areas, with Transnet still the<br />
main stakeholder keeping the future of<br />
our region and investors’ interests alive.<br />
Present lobby refers to the expansion of<br />
the Container Terminal, the widening and<br />
deepening of the Port itself. As simple as<br />
they are, those three activities will in fact<br />
make Buffalo City a more desirable location.<br />
EXECUTIVE DIRECTOR<br />
executive@bkcob.co.za<br />
executive@bkcob.co.za<br />
MARKETING & COMMUNICATIONS<br />
Amanda Bacela | communications@bkcob.co.za<br />
INVEST BUFFALO CITY<br />
Wela Brukwe | ibc@bkcob.co.za<br />
Website: www.investbuffalocity.com<br />
Widening the network remains one of our<br />
guiding principles, and engaging with as<br />
many stakeholders as possible towards<br />
economic growth sits at the top of our agenda.<br />
As we engage we focus on the collaboration<br />
rather than the exception and recently<br />
a number of MOUs have been agreed<br />
in structuring those engagements. The<br />
Chamber’s own projects succeed because<br />
we invite participation, and the Call-2-Action<br />
with related waste recycling has introduced<br />
a new way of approaching the everlasting<br />
challenge of littering and waste collection.<br />
The Border-Kei Chamber of <strong>Business</strong> is a<br />
business support organisation serving the<br />
Border-Kei Region since 1877. Through<br />
collaborations and communication with<br />
diverse stakeholders, we will keep working<br />
to serve the interests of business in the<br />
Border-Kei region.<br />
Lizelle Maurice<br />
Lizelle Maurice is a child of the<br />
<strong>Eastern</strong> Lizelle Maurice <strong>Cape</strong> Soil. is a She child did of everal the <strong>Eastern</strong> tertiary<br />
courses <strong>Cape</strong> soil. through She did Coronation several tertiary nursing<br />
College,<br />
courses<br />
Unisa,<br />
through<br />
Damelin<br />
Coronation<br />
& UCT.<br />
Nursing<br />
She College, owns Unisa, Park Place Damelin Boutique and UCT. Guest<br />
House, which has won her National Tourism<br />
Department’s She owns Park Lilizela Place Boutique Awards Guest in the House, Emerging<br />
Tourism which has Entrepreneur won her National of Tourism the Year Department’s category.<br />
Lilizela She was Awards appointed the Emerging as the BKCOB’s Tourism Entrepreneur<br />
of the Executive Year category. Director She in was 2021. appointed as the<br />
BKCOB’s Executive Director in 2021.
KEY SECTORS<br />
Overviews of the main economic<br />
sectors of the <strong>Eastern</strong> <strong>Cape</strong><br />
Agriculture and agro-processing 32<br />
Manufacturing general 40<br />
Global <strong>Business</strong> Services 41<br />
Education 42<br />
Water 43<br />
Oceans economy 46<br />
Film 50<br />
Development finance and SMME support 52<br />
Banking 53<br />
Tourism 54<br />
Bushveld Energy, a subsidiary of Bushveld Minerals, is producing vanadium battery electrolyte at its new<br />
Belco facility in East London. The plant was built with the support of the Industrial Development Corporation<br />
(IDC) and is targeting production of eight-million litres.<br />
PHOTO: Bushveld Energy
OVERVIEW<br />
Agriculture and agro-processing<br />
Sustainable agriculture is rewarding.<br />
SECTOR INSIGHT<br />
A Hemp Education Initiative<br />
is showing how cannabis can<br />
be used.<br />
Nonopa Tenza, a Matatiele farmer, was the proud first winner<br />
of the SME JumpStarter campaign in December 2023.<br />
Launched by MTN <strong>Business</strong> at the MTN SME Day event<br />
in May, the initiative aims to empower and recognise the<br />
growth and success of small and medium enterprises.<br />
The judges found the innovative approach to sustainable<br />
agriculture followed by Kevinot Farming to be worthy of a first prize of<br />
R100 000. Tenza, who trained as an accountant before turning her side<br />
hustle into her main business, will also receive an accounting software<br />
package for a year from Sage. Seasonal workers are encouraged to start<br />
micro-enterprises with seed allocations. Kevinot Farming also assists<br />
neighbouring farmers with access to markets, shares best practices and<br />
provides mechanisation services.<br />
Agricultural exports from the <strong>Eastern</strong> <strong>Cape</strong> contribute greatly to<br />
South Africa’s balance of trade. Recent logistical problems at ports<br />
have threatened to reduce volumes but Mediterranean Shipping<br />
Company (MSC) provided some good news when they announced<br />
that an additional direct-export cargo service from the Port of Ngqura<br />
to northern Europe was to be launched.<br />
The value of citrus exported from the <strong>Eastern</strong> <strong>Cape</strong> rose from<br />
R4.1-billion in 2021 to R4.7-billion in 2022.<br />
Meat exports to other Africa countries, Asia and the Middle East<br />
grew to R317-million (4.5-million tons) in 2022. Investments in woolshearing<br />
sheds in areas such as Dutywa resulted in a doubling of<br />
wool production in communal areas, from two-million tons in 2004 to<br />
5.5-million tons in 2021.<br />
Countries such as Tunisia, Egypt and the UAE are being approached<br />
not only to receive imports from the province, but potentially also to<br />
attract new investors in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Commercial wool and mohair<br />
operations in the province are<br />
mainstays of the agricultural<br />
economy. The National<br />
Woolgrowers’ Association of SA<br />
(NWGA), with a membership<br />
base of 4 500 commercial and<br />
20 000 communal members, is<br />
based in Gqeberha, as is <strong>Cape</strong><br />
Wool SA. South Africa produces<br />
about 54% of the world’s mohair<br />
and Gqeberha is the mohair<br />
capital of the world. Farms<br />
around the small towns that dot<br />
the open plains south of Graaff-<br />
Reinet, Aberdeen, Somerset<br />
East, Jansenville and Willowmore<br />
routinely produce nearly half<br />
of South Africa’s production.<br />
The office of the South African<br />
Mohair Growers Association<br />
(SAMGA) is in Jansenville.<br />
Grootfontein College of<br />
Agriculture, the only tertiary<br />
educational institute in the<br />
country to offer a programme<br />
aimed at Angora goat farming<br />
and mohair production, is in<br />
Middelburg. Processing of<br />
mohair takes place in Kariega,<br />
Gqeberha and Ntabozuko (Berlin)<br />
outside East London. The mohair<br />
value chain includes brokers,<br />
buyers, processors, spinners,<br />
manufacturers and retailers.<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
32<br />
PHOTO: MTN <strong>Business</strong>
OVERVIEW<br />
The SAMIL company has divisions all along the value chain. The<br />
Stucken group controls Mohair Spinners South Africa, Hinterveld (a<br />
mill) and the processing company Gubb & Inggs in Kariega.<br />
The rich natural grasslands of the <strong>Eastern</strong> <strong>Cape</strong> have the potential<br />
to produce high-value organic meat, a product that is increasingly<br />
popular in health-conscious international markets.<br />
Deciduous fruits such as apples, pears and apricots are grown<br />
primarily in the Langkloof Valley. Another crop in which the<br />
<strong>Eastern</strong> <strong>Cape</strong> leads national production is chicory. The province’s<br />
pineapple crop is grown in the same part of the Sunshine Coast<br />
that produces chicory.<br />
The <strong>Eastern</strong> <strong>Cape</strong> holds 21% of the country’s cattle (about<br />
3.2-million), 28% of its sheep (seven-million) and 46% of its goats,<br />
making it the largest livestock province by some margin.<br />
The Sundays River Valley is South Africa’s biggest citrus producer<br />
from a defined area. The valley’s harvest in 2021 was 30.5-million<br />
cartons and this is anticipated to increase to 40-million by 2026. The<br />
province as a whole is the country’s second-largest cultivator of citrus.<br />
More than 4 000 people are employed in citrus in the Sundays River<br />
area, with that figure more than doubling in the picking and packing<br />
season. Further west, there is about 6 600ha of land under citrus in the<br />
Gamtoos Valley, which exports about nine-million cartons every year.<br />
Agro-processing<br />
Getting small-scale farmers connected to agro-processing value chains<br />
is a major goal for agricultural policy-makers. This lies behind the<br />
creation of the Wild Coast Special Economic Zone (SEZ) near Mthatha.<br />
The 5 000ha Ncora Irrigation Scheme is seen as a model for the SEZ,<br />
which has attracted interest from AngloGold Ashanti and Exxaro.<br />
The <strong>Eastern</strong> <strong>Cape</strong> Department of Agrarian Reform (DRDAR) has<br />
several programmes to support small-scale farmers. The <strong>Eastern</strong> <strong>Cape</strong><br />
Development Corporation (ECDC) supports agro-processing through<br />
loans and equity arrangements: projects that have received financial<br />
support include aquaculture, the production of dietary fibre from<br />
pineapples and bamboo products.<br />
Ouma Rusks are made in Molteno and Cadbury Chocolates operates<br />
a big site across the lake from the Nelson Mandela Stadium in Gqeberha<br />
while Nestlé makes 11 kinds of chocolate at its factory in East London.<br />
The Sasko mill in Gqeberha is the province’s only big milling plant.<br />
ONLINE RESOURCES<br />
Citrus Growers’ Association of Southern Africa: www.cga.co.za<br />
<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency (ECRDA): www.ecrda.co.za<br />
Milk Producers Organisation: www.mpo.co.za<br />
SAMIL: www.samil.co.za<br />
South African Mohair Growers Association (SAMGA): www.angoras.co.za<br />
A Hemp Education Initiative has<br />
been offered to 100 <strong>Eastern</strong> <strong>Cape</strong><br />
farmers by Training Force and<br />
Cheeba Cannabis Training.<br />
Coca-Cola Sabco and<br />
SAB’s Ibhayi brewery are the<br />
major beverage manufacturers<br />
in Gqeberha and Distell has<br />
a bottling plant in the city.<br />
Sovereign Foods in Kariega is<br />
the country’s fourth-biggest<br />
producer of poultry.<br />
The <strong>Eastern</strong> <strong>Cape</strong> provides<br />
approximately a quarter of South<br />
Africa’s milk and the industry is<br />
further expanding as producers are<br />
favouring high-rainfall coastal areas<br />
such as the Tsitsikamma region.<br />
There are about 70 000<br />
people employed on commercial<br />
farms across the <strong>Eastern</strong> <strong>Cape</strong>,<br />
with a further 436 000 people<br />
dependent on smaller farms,<br />
mostly in the east. ■<br />
PHOTO: Cheeba<br />
33 EASTERN CAPE BUSINESS <strong>2024</strong>
Amadlelo Agri<br />
About Amadlelo Agri, a short preview<br />
Amadlelo Agri is a diverse majority black-owned agribusiness<br />
established in 2004 with the main objective of transforming dormant<br />
and under-utilised land into profitable and sustainable agribusinesses.<br />
About us<br />
For over a decade, the collaborative efforts of Amadlelo Agri have been<br />
at the forefront of transforming the agriculture industry and unlocking the<br />
land potential in communities in the <strong>Eastern</strong> <strong>Cape</strong> and KwaZulu-Natal.<br />
The company’s four commercial farms are responsible for milk<br />
production from 4 500 milk cows, 1 000 hectares of irrigation land<br />
and about 176 staff members.<br />
Since 2016, the five farms have earned R1.4-billion in revenue, created<br />
150 jobs and paid out R101-million in wages. The projects have 3 000<br />
direct beneficiaries and 10 000 indirect beneficiaries.<br />
It has also pioneered other milestones which are indicative of the success<br />
that Amadlelo Agri has enjoyed in South Africa’s agricultural sector:<br />
• Amadlelo Agri’s tried-and-tested model has been replicated and<br />
is being used in five dairy enterprises which are located in rural<br />
areas and on communal land.<br />
• A testament to its healthy relationship-building and trust ethos,<br />
Amadlelo Agri continues to leverage successful rural community<br />
partnerships, inclusive of a dynamic network of successful<br />
commercial farmers.<br />
Amadlelo is a 72% black-owned agribusiness with a broad representation.<br />
The journey of Amadlelo is<br />
reflected in this timeline:<br />
2004 Amadlelo Agri is<br />
established<br />
2006 First dairy in partnership with<br />
University of Fort Hare<br />
Ncera macadamia nursery<br />
established<br />
Workers and beneficiaries at Ncera nursery<br />
2008 Middledrift Dairy established<br />
in partnership with National<br />
Empowerment Fund (NEF)<br />
Government (through<br />
DRDAR/ECRDA) issues<br />
a call for proposals<br />
for Shiloh and<br />
Keiskammahoek<br />
2009 First macadamia hectares<br />
are planted<br />
2010 Shiloh and Keiskammahoek<br />
dairies receive infrastructure<br />
funding from government<br />
2011 Ncora Dairy is established in<br />
partnership with provincial<br />
government<br />
2012 Fort Hare Piggery business<br />
is established in partnership<br />
with university and No2<br />
Piggeries<br />
Simpiwe Somdyala<br />
2017 Tulsacap buys equity in<br />
Amadlelo, making it a 72%<br />
majority-owned company<br />
2019 A five-year strategy<br />
focussing on improving<br />
efficiencies and balance<br />
sheets and diversifying the<br />
business is adopted<br />
2021 Ongoing transformation and<br />
growth journey
The dairy industry value chains in South Africa face challenges in<br />
terms of transformation, with a few large white-owned commercial<br />
dairies concentrated in the Western <strong>Cape</strong>, <strong>Eastern</strong> <strong>Cape</strong> and<br />
KwaZulu-Natal provinces dominating the sector. Ownership<br />
of productive assets (livestock, mechanisation, etc) as well as<br />
processing continue to be untransformed.<br />
To contribute towards transformation a group of commercial<br />
dairies in KwaZulu-Natal and <strong>Eastern</strong> <strong>Cape</strong>, black professionals and<br />
social investors came together over the years to establish Amadlelo<br />
Agri (Pty) Ltd (Amadlelo is an Nguni word referring to grazing lands<br />
or pastures). Amadlelo aims to unlock the potential of dormant and<br />
underutilised land and agricultural assets to create commercially<br />
viable agribusinesses through partnerships with government,<br />
communities and other private-sector entities.<br />
Amadlelo is a broad-based 72% majority black owned and<br />
operated agribusiness operating five different community dairy<br />
farms and with interests/investments in macadamia, piggery and<br />
dairy processing plant Coega Food Group through the Coega<br />
Project Trust (CPT).<br />
VISION<br />
Development of an inclusive, prosperous future through<br />
sustainable and profitable agribusiness.<br />
OUR STRATEGY<br />
Nurture black talent, strengthen Amadlelo’s balance sheet and<br />
ensure consistent positive cash-generating ability of operations<br />
by building on existing dairy capabilities, income diversification,<br />
strong community relations and strategic partnerships.<br />
STRATEGY <strong>2024</strong>-2030<br />
STRATEGIC PRIORITIES<br />
PRIORITY ONE<br />
Defend and grow the dairy business.<br />
• Improve farm performance<br />
• Buy leased cows<br />
• Invest in our own farm with secure tenure<br />
• Facilitate infrastructure improvements<br />
• Invest in renewable energy<br />
• Scale up and expand farm operations<br />
PRIORITY TWO<br />
Develop staff and retain talent.<br />
• Compelling employee value proposition<br />
• Effective use of the Talent Grid geared for personal<br />
development, performance improvement and succession<br />
planning<br />
PRIORITY THREE<br />
• Invest in value-adding, processing<br />
• Diversify investments and income streams<br />
Beneficiaries and reach<br />
• 2 200ha irrigated milking platform<br />
• 1 600 direct beneficiaries represented through various<br />
Secondary Cooperatives and Trusts<br />
• Partnership with University of Fort Hare with a focus<br />
on graduate placement, research, innovation and<br />
technology<br />
• 10 000 indirect beneficiaries represented through<br />
Secondary Cooperatives or Community Trusts<br />
The combined dairies and Amadlelo group employ<br />
about 200 people on a permanent basis and produce<br />
about 20-million litres of milk per annum with the<br />
potential to increase this to 32-million by 2028.<br />
BENEFICIARIES<br />
NCORA DAIRY TRUST<br />
Beneficiaries: 1 268 people<br />
Milking platform: 687ha<br />
SEVEN STARS DAIRY TRUST<br />
Beneficiaries: 35 households<br />
Milking platform: 750ha<br />
MIDDLEDRIFT DAIRY<br />
Beneficiaries: 65 households<br />
Milking platform: 164ha<br />
SHILOH DAIRY TRUST<br />
Beneficiaries: 300 households<br />
Milking platform: 400ha<br />
FORT HARE DAIRY TRUST<br />
Beneficiary: University of Fort Hare<br />
Milking platform: 210ha<br />
The map below illustrates the location of the dairy<br />
farms in the province.<br />
PRIORITY FOUR<br />
Improved governance.<br />
• Strengthen governance and community participation<br />
through committees at farm level<br />
• Ongoing review of Sharemilk Agreements<br />
• Improved stakeholder relations<br />
PRIORITY FIVE<br />
Thriving and sustainable communities.<br />
Execute shared-value approach, focus on improving local<br />
and rural black small-scale farmer procurement
Making an impact<br />
Amadlelo Agri is bringing hope, jobs and food security to rural communities.<br />
Amadlelo Agri has prioritised the creation<br />
of thriving and sustainable communities<br />
as part of its Strategic Plan <strong>2024</strong>-2030.<br />
The plan will nurture black talent,<br />
strengthen Amadlelo’s balance sheet, build on<br />
existing dairy capability, diversify income and<br />
further enhance strong community relations.<br />
Amadlelo Agri has built a portfolio of<br />
sustainable businesses that tackle food security<br />
and bring financial rewards to approximately<br />
3 000 direct beneficiaries and 10 000 indirect<br />
beneficiaries. Milk is currently bought by 80 SMMEs<br />
but growing small-scale farmer procurement<br />
through the shared-value approach is a priority<br />
for the future.<br />
All of the milk produced by Amadlelo Agri<br />
farms is delivered to the dairies of Danone and<br />
Sundale.<br />
FORT HARE DAIRY TRUST<br />
Location: Alice, <strong>Eastern</strong> <strong>Cape</strong>, on land owned by the<br />
University of Fort Hare.<br />
Now a thriving 216ha farm, this was the first Amadlelo<br />
agricultural project which was launched in 2007.<br />
Production: 700 milk cows produce 10 000 litres of<br />
milk per day.<br />
Beneficiaries: Amathole farmers, students, farm<br />
managers<br />
Impact: Amathole farmers supply the project with<br />
feed, 18 staff are employed, students gain from being<br />
exposed to a working farm for research and training,<br />
farm managers are given assistance to build up their<br />
own herds.<br />
MIDDLEDRIFT (PTY) LTD<br />
Location: Middledrift, <strong>Eastern</strong> <strong>Cape</strong>. In partnership<br />
with the National Empowerment Fund. The business<br />
model of this operation is under review.<br />
Production: 383 milk cows on a 165ha farm.<br />
Beneficiaries: The dairy operation is on<br />
previously unused land belonging to 65<br />
Middledrift beneficiaries.<br />
Impact: 18 community members have been<br />
employed as workers which brings the total impact<br />
to 108 people in the area. The impact has been<br />
calculated on a multiplier effect of six, that is, for<br />
every worker, six more people benefit.<br />
FORT HARE PIGGERY TRUST<br />
Location: Alice, <strong>Eastern</strong> <strong>Cape</strong>. A partnership with the<br />
University of Fort Hare and Number Two Piggeries (N2P).<br />
Production: A 1 000-sow breeding unit and a<br />
fattening unit that produces 400-500 baconers<br />
every week<br />
Beneficiaries: University of Fort Hare and<br />
university workers<br />
Impact: The Pig Improvement Company (PIC) has<br />
ranked the Fort Hare Piggery Trust as the top piggery<br />
of its type in the country.<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
SEVEN STARS TRUST<br />
Location: Keiskammahoek, <strong>Eastern</strong> <strong>Cape</strong>. In<br />
partnership with Seven Stars Primary Producers Cooperative,<br />
the <strong>Eastern</strong> <strong>Cape</strong> Department of Rural<br />
Development and Agrarian Reform (DRDAR).<br />
Production: 734 cows produce milk on 750ha. A<br />
cheese-processing facility will be revived.<br />
Beneficiaries: 36 farmers<br />
Impact: Employs 62 local people; total impact 372<br />
people. Ms Lutho Makase, a general farm worker,<br />
tells her story: “I became part of the Seven Stars<br />
Dairy in September 2018, I am a milker. My journey<br />
so far has been the best. Management is very<br />
kind and I work with good people. My dream is<br />
to show the nation that women can do anything<br />
by themselves. It is only in ancient times that men<br />
were the only ones to milk and look after cows. It<br />
is not the case today.”<br />
NCORA DAIRY TRUST<br />
Location: Ncora, <strong>Eastern</strong> <strong>Cape</strong>.<br />
Production: 2 056 milk cows produce 29 500 litres of<br />
milk per day on 664ha<br />
Beneficiaries: More than 1 200 members of Ncora<br />
community in 10 villages, each of which runs a<br />
co-operative<br />
Impact: Employs 86 people. In 2022 Danone Southern<br />
Africa signed a multimillion-rand agreement with the<br />
trust which is designed to boost the regenerative<br />
agricultural model.<br />
NCERA MACADAMIA PROJECT<br />
Location: 35km from East London, <strong>Eastern</strong> <strong>Cape</strong>.<br />
Joint venture with the Ncera community, national<br />
Department of Agriculture, Land Reform and Rural<br />
Development (DALRRD),Kula Development Facilitators,<br />
TGK Farming.<br />
Production: 180 hectares on the 300ha farm have<br />
been planted<br />
Beneficiaries: 10 000 community members, including<br />
support for local schools<br />
Impact: Employs 300 local people; total impact<br />
1 800 people. ■<br />
SHILOH DAIRY TRUST<br />
Location: Whittlesea, <strong>Eastern</strong> <strong>Cape</strong>. In partnership<br />
with the Mayime Co-operative and the DRDAR.<br />
Production: 900 cows produce 13 000 litres of milk<br />
per day on 400ha<br />
Beneficiaries: 300 members of the Mayime<br />
Co-operative<br />
Impact: Employs 27 local people; total impact<br />
162 people.<br />
37<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
Mohair’s prospects are looking up<br />
yarns@samil.co.za | sales@samil.co.za | www.samil.co.za<br />
SAMIL CEO Michael Brosnahan discusses how sustainability is a core value<br />
for the mohair industry, and high standards are ensuring animal welfare.<br />
its general use so the main end uses are highfashion<br />
items with exclusive big-name brands.<br />
Are your farmers working on projects to<br />
protect the land?<br />
Our farmers are not working on “projects”<br />
to protect the land – this is a constant part of<br />
everyday life on the farms. The farmer needs to<br />
protect his livelihood, not just for himself but for<br />
his children and his children’s children. Many of<br />
our Angora farmers have been farming goats on<br />
the land for more than 100 years, some into the<br />
second and third generation.<br />
What are the main planks of SAMIL’s<br />
sustainability policy?<br />
Our core values are honesty and integrity which<br />
translate into looking after our small piece of<br />
the world and everything and everybody in it.<br />
To this end, everything we do is questioned as<br />
to whether it will have a detrimental effect on<br />
our environment or our people, whether it be<br />
how we farm our goats on the land or how we<br />
process the material in our factories. We only use<br />
chemicals that have been certified by OEKO-TEX<br />
or an equivalent certification proving that they<br />
cause no harm to humans or animals. We have<br />
created a work environment on our farms and in<br />
our factories and offices where all employees are<br />
viewed as assets and are treated as such.<br />
How can more jobs be created in the mohair<br />
industry?<br />
More jobs in the mohair industry can really only be<br />
created by creating awareness of this wonderful<br />
fibre around the world. The price of mohair limits<br />
What is the Responsible Mohair Standard? Has<br />
its introduction had the desired effect?<br />
The Responsible Mohair Standard or RMS is an<br />
international voluntary standard that addresses<br />
animal welfare on goat farms as well as managing<br />
the “chain of custody” of mohair from the certified<br />
farms through to the final products purchased by<br />
the consumer. The key values of RMS are:<br />
• protecting animal welfare<br />
• regenerative agriculture<br />
• social responsibility<br />
• traceability<br />
Its introduction has definitely had the desired<br />
effect – mohair is once again globally desired<br />
which helps to protect the more than 30 000<br />
people employed in the industry in South Africa.<br />
Do you see growth prospects for mohair globally?<br />
There are no doubt growth prospects for mohair<br />
globally as it is such a versatile fibre. We have to<br />
strike a balance, though, between the price that<br />
the farmer needs to ensure his mohair clip is an<br />
economic product to farm and the price that the<br />
consumer is prepared to pay for mohair products<br />
in the marketplace. ■<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
38
yarns@samil.co.za | sales@samil.co.za | www.samil.co.za
OVERVIEW<br />
Manufacturing: general<br />
SEZs are the focus of manufacturing investment.<br />
The East London Industrial Development Zone (ELIDZ) exported<br />
products worth more than R3-billion in 2023. In the<br />
same period, the Coega Special Economic Zone attracted a<br />
variety of investments from manufacturing.<br />
At the Coega SEZ, MEC Commercial Trailers committed R370-million<br />
to a manufacturing facility for heavy-duty commercial trailers in Q1 2023<br />
while Atlantic Glass, a fabricator of architectural aluminium<br />
products, spent R13-million. In logistics, a vital supporting<br />
component for all manufacturing sectors, Romark Logistics<br />
invested R2.2-million.<br />
The province’s industrial parks are the focus of support<br />
programmes by the Provincial Government. Since 2019,<br />
some R495-million has been invested in infrastructure<br />
upgrades at Dimbaza, Fort Jackon, Vulindlela, Butterworth<br />
and Komani. More than 2 000 people are employed<br />
across the parks and investors such as the Chemin<br />
Chemical Technology Incubator, based in Fort Jackson,<br />
further support the development of entrepreneurs. The<br />
Butterworth park is focussed on after-market automotive<br />
initiatives and both King Hintsa and Lovedale TVET Colleges<br />
will use the industrial parks for training and development of<br />
practical skills for students.<br />
Montego Pet Nutrition, Graaff-Reinet’s biggest private<br />
employer, has been investing in both expanded capacity<br />
and in power generation, with the installation of an array<br />
of solar panels. More than 200 staff members work in the<br />
Karoo town’s factory.<br />
First National Battery, a Metair Group company, has one factory<br />
at Fort Jackson and two factories in East London. Mpact runs two<br />
corrugated packaging convertor facilities in the <strong>Eastern</strong> <strong>Cape</strong>, at<br />
Deal Party in Gqeberha and Gately Township, East London.<br />
Bodene, a subsidiary of Fresenius Kabi, makes intravenous<br />
medicine in Gqeberha. East London hosts Johnson &<br />
Johnson’s finance, operations and research and development<br />
divisions. Aspen Pharmacare’s East London and Gqeberha<br />
manufacturing facilities make a wide variety of product types<br />
including steriles, oral solid dose, liquids, semi-solids and<br />
active pharmaceutical ingredients.<br />
ONLINE RESOURCES<br />
Coega Development Corporation: www.coega.co.za<br />
<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />
East London Industrial Development Zone: www.elidz.co.za<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
40<br />
one investor:<br />
Metals sector:<br />
Agroprocessing:<br />
11 investors:<br />
a<br />
SECTOR INSIGHT<br />
Five industrial parks have<br />
been upgraded.<br />
Investments into the Coega<br />
SEZ include:<br />
R150-million<br />
Chemical sector:<br />
12 investors,combined value of<br />
R631.2-million<br />
R1.3-billion<br />
R5.3-billion<br />
The <strong>Eastern</strong> <strong>Cape</strong>’s Provincial<br />
Investment Conference is<br />
proving an important event<br />
on the calendar. Many of the<br />
investors who were part of the<br />
pledge of a total of R46-billion at<br />
the 2022 conference were in the<br />
manufacturing sector.<br />
The investment of Aqora<br />
Lithium Batteries points to a trend<br />
that will grow in the b years to come.<br />
Among other manufacturers<br />
c<br />
making investment pledges were<br />
Benteler, South African Breweries,<br />
Mhlobiso ipsum Concrete and Toyota<br />
Material Handling. SAB’s Ibhayi<br />
Brewery has dolor allocated R510-million<br />
for plant expansion. ■<br />
d<br />
R18.1-million<br />
Automotive:<br />
12 investors:<br />
R600-million<br />
Source: Coega SEZ, 31 March 2023<br />
BPO:<br />
two investors:<br />
Logistics:<br />
16 investors:
Global <strong>Business</strong> Services<br />
Employment is picking up as the sector grows.<br />
OVERVIEW<br />
The Coega <strong>Business</strong> Process Outsourcing (BPO) Park, SECTOR INSIGHT<br />
located in Zone 4 of the Coega Special Economic<br />
The EC Africa2Cable landed in 2023.<br />
Zone (SEZ), has so far created a total of 1 529 jobs.<br />
Uninterrupted power supply to the park is among the<br />
reasons that it has attracted a combined investment value of Coega BPO Park employment<br />
R18.1-million.<br />
South Africa’s GBS sector, which includes BPO and Shared<br />
1 529 employees<br />
Services, is growing twice as fast as the world’s and three<br />
times faster than India and the Philippines. The <strong>Eastern</strong> <strong>Cape</strong><br />
has four universities and eight TVET colleges, high-speed<br />
connectivity and an attractive lifestyle. Other factors in favour<br />
1 444 permanent<br />
of the area are the relatively neutral accents, good financial and<br />
telecommunications infrastructure and the time zone being the<br />
same or close to Europe’s.<br />
Better connectivity as promised by the landing of the EC<br />
1 070 youth<br />
Africa2Cable could be the platform for further investments and<br />
job opportunities.<br />
Callzilla, a call centre servicing the US market, has chosen to a dedicated GBS facility, a scalable<br />
locate its latest office in East London.<br />
data centre and a 1 000-seat business<br />
Citing reports that South Africa is ranked third in the world continuity and ICT training facility.<br />
among English-speaking destinations, Callzilla notes that 90% The ELIDZ currently operates two data<br />
of services delivered from South Africa are related to customer centres with ISO27001 accreditation and<br />
experience (CX) and contact centre services. The investment in East has obtained approval for the concept<br />
London has created happy customers in the US, according to Callzilla. development of an 800-seater GBS Park<br />
The GBS Incentive Scheme of the <strong>Eastern</strong> <strong>Cape</strong> Development in conjunction with an interested party.<br />
Corporation (ECDC) provides investment-funding support for A Future Skills Platform programme<br />
financially viable propositions that create youth employment passed on digital skills to about 1 000 people<br />
opportunities. There are three tiers of support available, early in 2023, courtesy of the <strong>Eastern</strong> <strong>Cape</strong><br />
depending on the size of the investment and how many jobs branch of <strong>Business</strong> Processing enabling<br />
and opportunities for local SMMEs are created. For a R50-million South Africa (BPESA), Evolution, Coega SEZ<br />
project over three years, a maximum sum of R400 000 is available and Volkswagen SA. Absa sponsored a<br />
while a contract between R201-million and R500-million might further 70 later in the year. The programme<br />
attract up to R1.2-million in support.<br />
has been running since October 2022 under<br />
The East London Industrial Development Zone (ELIDZ) has the auspices of the UNDP (United Nations<br />
an ICT strategy that focusses on an ICT Hub which will include Development Programme). ■<br />
ONLINE RESOURCES<br />
<strong>Business</strong> Process enabling South Africa (BPeSA): www.bpesa.org.za<br />
Coega SEZ: www.coega.co.za<br />
<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />
East London Industrial Development Zone: www.elidz.co.za<br />
41<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
OVERVIEW<br />
Education and training<br />
Skills training is a priority.<br />
SECTOR INSIGHT<br />
MerSETA Mega Skills Project<br />
targets 10 000 young people.<br />
Since 2019<br />
• 29 000 young people trained in<br />
skills by 13 SETAs<br />
• 100 schools built<br />
• more than 5 000 tertiary bursaries<br />
Source: <strong>2024</strong> SOPA<br />
Rhodes <strong>Business</strong> School announced in 2023 the addition<br />
of a Postgraduate Diploma in Advancement and Resource<br />
Mobilisation to its MBA programme. The aim is to equip<br />
NGOs, NPOs, charities and educational institutions with<br />
the skills necessary to advance themselves and mobilise resources<br />
in line with three of the Sustainable Development Goals, a factor<br />
underpinning many of the courses offered by the School.<br />
Rhodes University, pictured, held year-long celebrations of its 120th<br />
anniversary in <strong>2024</strong>, describing it as “a moment for critical reflection<br />
and strategic re-imagination for growth and sustainability”. Rhodes<br />
University has a strong reputation for research, which has been<br />
enhanced by the addition of the Biotechnology Innovation Centre.<br />
The <strong>Eastern</strong> <strong>Cape</strong> Premier’s State of the Province Address in February<br />
<strong>2024</strong> provided an opportunity to reflect on the educational achievements<br />
of the administration of Premier Oscar Mabuyane and his team.<br />
Infrastructure at school and tertiary level were priorities, with<br />
several TVET colleges benefitting from a national programme that<br />
focussed on student accommodation and lecture halls. In addition<br />
to reflecting on the past, the Premier announced the launch of the<br />
MerSETA Mega Skills Project which aims to provide skills training to<br />
more than 10 000 young people. The Premier’s Top Achievers Bursary<br />
Award has been renamed the Dr Soyisile Nuku Scholarship.<br />
The <strong>Eastern</strong> <strong>Cape</strong> has eight Technical and Vocational Education<br />
Training (TVET) colleges, most of which have more than one campus:<br />
Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata<br />
Dalinyebo, Ikhala and Eastcape Midlands College.<br />
ONLINE RESOURCES<br />
<strong>Eastern</strong> <strong>Cape</strong> Department of Education: www.ecdoe.gov.za<br />
MerSETA: www.merseta.org.za<br />
Technology Innovation Agency: www.tia.org.za<br />
The <strong>Eastern</strong> <strong>Cape</strong> has three<br />
other universities aside from<br />
Rhodes University. The University<br />
of Fort Hare is leading three<br />
innovative studies into biogas,<br />
including a project investigating<br />
compressed biogas for public<br />
transport. Nelson Mandela<br />
University’s Missionvale Campus<br />
now offers the MBChB (Bachelor<br />
of Medicine and Bachelor of<br />
Surgery) qualification. Walter Sisulu<br />
University is the other academic<br />
medical facility in the province. A<br />
R50-million science centre, named<br />
after Albertina Nontsikelelo Sisulu,<br />
has been built in Cofimvaba.<br />
Walter Sisulu University<br />
(WSU) has also been allocated<br />
R350-million for renovations by<br />
national government, including<br />
laboratories, residences and ICT<br />
equipment. In 2021, an amount<br />
of R3.5-million was allocated for<br />
research and skills development<br />
in the vaccine programme<br />
headed by Professor Markus<br />
Depfenhart and which also<br />
included North-West University.<br />
WSU and the University of South<br />
Africa (Unisa) offer vocational<br />
training (diplomas) and academic<br />
programmes (degrees). ■<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
42<br />
PHOTO: Vysotsky, Wikimedia Commons
OVERVIEW<br />
Water<br />
The Mzimvubu Dam project is back on track.<br />
OVERVIEW<br />
SECTOR INSIGHT<br />
Amatola Water’s area of<br />
operation now includes the<br />
whole province.<br />
In November 2003, a website<br />
post recorded that the Kouga<br />
Dam was at 100.31% capacity<br />
with 4 090 litres per second<br />
The National Department of Water and Sanitation has<br />
flowing over the dam wall.<br />
restarted the Mzimvubu Water Project, albeit on a less<br />
Various regional Bulk Water and<br />
grand scale than was originally planned.<br />
Sanitation infrastructure projects<br />
The estimated R8-billion that will now be spent,<br />
have been undertaken by the<br />
starting with the Ntabelanga Dam project, will create water<br />
Provincial Government. In the <strong>2024</strong><br />
infrastructure to serve more than 140 000 households in the<br />
SOPA, the Premier announced that<br />
district municipalities of Alfred Nzo, OR Tambo and Joe Gqabi,<br />
68% of households in the <strong>Eastern</strong><br />
areas that are mostly rural and include the popular tourist section<br />
<strong>Cape</strong> have access to piped water,<br />
of the coast known as the Wild Coast.<br />
a situation very different to the<br />
The Mzimvubu River, regarded as the only major river in South<br />
scenario before 1994, when the<br />
Africa not to be treated as a resource, is intended to supply water to<br />
vast majority had no such access.<br />
support poverty alleviation and development initiatives. Construction<br />
The Nelson Mandela Bay<br />
of the dam is expected to start in <strong>2024</strong> and most of the access road to<br />
metropole currently gets its<br />
the site has been completed.<br />
water from 10 dams, six of which<br />
The <strong>Eastern</strong> <strong>Cape</strong> has been known to have very dry periods, with<br />
are owned by the municipality.<br />
long droughts sometimes putting farmers and households under<br />
Water services are provided to<br />
pressure. In May 2021, the Kouga Dam, pictured, which serves urban<br />
the citizens of the <strong>Eastern</strong> <strong>Cape</strong><br />
areas such as Gqeberha and citrus farmers in the Gamtoos Valley and<br />
by 17 water service authorities<br />
beyond, reached a record level of 7%, the lowest recorded level since it<br />
which oversee 163 drinking water<br />
was built. At that time, most municipalities introduced restrictions on<br />
supply systems. Municipalities and<br />
usage with the Nelson Mandela Bay Municipality limiting residents to<br />
Amatola Water are the primary<br />
50 litres per day.<br />
providers of services.<br />
In response to the dry times, the capacity of the Nooitgedacht<br />
Backlogs in rural areas and<br />
treatment plant which serves the Nelson Mandela Bay Metro was<br />
smaller municipalities are still<br />
increased by 70 megalitres per day and now it delivers 210 megalitres<br />
prevalent, and Amatola Water<br />
per day.<br />
is playing a key role in reducing<br />
and eradicating these inequalities.<br />
National government ONLINE RESOURCES has issued<br />
a gazette announcing that<br />
Institute for Water Research, Rhodes University: www.ru.ac.za/iwr<br />
Amatola Water National will have Department its area of of Water and Sanitation: www.dws.gov.za<br />
operation expanded Water to Institute include of the South Africa: www.wisa.org.za<br />
whole of the <strong>Eastern</strong> <strong>Cape</strong>. ■<br />
SECTOR INSIGHT<br />
Amatola Water’s area of<br />
operation now includes the<br />
whole province.<br />
In November 2003, a website<br />
post recorded that the Kouga<br />
Dam was at 100.31% capacity<br />
with 4 090 litres per second<br />
flowing over the dam wall.<br />
Various regional Bulk Water and<br />
Sanitation infrastructure projects<br />
have been undertaken by the<br />
Provincial Government. In the <strong>2024</strong><br />
SOPA, the Premier announced that<br />
68% of households in the <strong>Eastern</strong><br />
<strong>Cape</strong> have access to piped water,<br />
a situation very different to the<br />
scenario before 1994, when the<br />
vast majority had no such access.<br />
The Nelson Mandela Bay<br />
metropole currently gets its<br />
water from 10 dams, six of which<br />
are owned by the municipality.<br />
Water services are provided to<br />
the citizens of the <strong>Eastern</strong> <strong>Cape</strong><br />
by 17 water service authorities<br />
which oversee 163 drinking water<br />
supply systems. Municipalities and<br />
Amatola Water are the primary<br />
providers of services.<br />
Backlogs in rural areas and<br />
smaller municipalities are still<br />
prevalent, and Amatola Water<br />
is playing a key role in reducing<br />
and eradicating these inequalities.<br />
National government has issued<br />
a gazette announcing that<br />
Amatola Water will have its area of<br />
operation expanded to include the<br />
whole of the <strong>Eastern</strong> <strong>Cape</strong>. ■<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
PHOTO: Gamtoos Water<br />
32<br />
EASTERN CAPE PHOTO: BUSINESS Gamtoos <strong>2024</strong> Water
Beverages<br />
South Africa<br />
Building a more sustainable future<br />
Coca-Cola Beverages South Africa believes in collaboration to ensure<br />
water sustainability.<br />
We are focused on delivering on our purpose, to accelerate conserve habitats for plants and<br />
our collective action to address challenges that impact animals and offer opportunities for<br />
our business and the communities we serve.<br />
local economic development.<br />
Our approach is centred around people. While the As part of this work, we<br />
Since inception, over By the end of 2023, In 2023 alone,<br />
focus must be on how best to achieve key sustainability goals, as a collaborate<br />
Three<br />
with partners<br />
community<br />
to<br />
811 million collective we litres need to be mindful over in 1.2 our billion responses of the varied needs over understand gardens the complex have link been<br />
have and changing been circumstances<br />
litres<br />
of communities<br />
of water was<br />
around us.<br />
between water, climate, agriculture<br />
The answer lies in collaboration and co-creation of sustainable 30 000 integrated to the Coke<br />
replenished through<br />
and biodiversity.<br />
solutions. As the Coca-Cola replenished system, we use back our to industry leadership to In addition, Ville many systems of our providing water<br />
the Coke Ville<br />
be part of the solution to the achieve environment positive change and and to build a more replenishment local projects women have with<br />
project sustainable in the future for our communities planet. through in 5 provinces additional co-benefits enterprise such as<br />
<strong>Eastern</strong> Importantly, <strong>Cape</strong>, we want both to create Coke greater Ville shared and opportunity for the helping to improve opportunities soil health, and<br />
Gauteng, business and Free the communities we serve, across our value chain.<br />
sequester carbon, conserve water,<br />
Watershed<br />
contributing to food<br />
State, KwaZulu-<br />
restore degraded lands, contribute<br />
Water<br />
Restoration Projects.<br />
to biodiversity security and and mitigate poverty<br />
Natal Water and is Limpopo a priority for the Coca-Cola system because it is essential to life, climate change. alleviation.<br />
Provinces.<br />
our beverages and the communities we serve.<br />
We are focused on accelerating<br />
The Coca-Cola Company’s 2030 Water Security Strategy focuses on the actions needed to increase water<br />
increasing water security by investing in water initiatives that benefit security where we operate, source<br />
nature and communities.<br />
ingredients and touch people’s lives.<br />
This includes projects that provide benefits to local watersheds that We do that by contributing towards<br />
supply water for drinking, agriculture and manufacturing, restore and sustainable, clean water access that<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
44
improves livelihoods and wellbeing while protecting against waterrelated<br />
disasters.<br />
We continue to replenish the water we use in our finished beverages<br />
to nature and communities. We have set three key goals designed to<br />
achieve our vision:<br />
• Achieve 100% regenerative water use across our facilities in areas<br />
identified as facing high levels of water stress by 2030<br />
• Improve the health of watersheds identified as most critical for<br />
our operations and agricultural supply chain by 2030<br />
• Continue to return water to nature and communities. Ensuring<br />
the health of watersheds is a major part of this.<br />
For example, as CCBSA we successfully implemented Project<br />
Lungisa in Grabouw in the Western <strong>Cape</strong>, where the municipality<br />
was losing a significant amount of its potable water due to leaks and<br />
failing infrastructure. Through this partnership, we trained young<br />
community members in plumbing to support the rehabilitation of<br />
water infrastructure, including fixing leaks in informal areas.<br />
In response to a looming Day Zero in parts of the <strong>Eastern</strong><br />
<strong>Cape</strong>, CCBSA launched an ambitious project to work with the local<br />
municipality and other key stakeholders to assist vulnerable and<br />
distressed communities.<br />
Since 2020, CCBSA deployed off-grid, solar-powered groundwater<br />
harvesting and treatment initiative called Cokevilles. In the region, a<br />
total of nine systems, or boreholes, have been deployed in Gqeberha<br />
with a potential of replenishing a minimum of 90-million litres per<br />
annum at no cost to the beneficiaries.<br />
Last year the company unveiled a R12-million groundwater<br />
harvesting Cokeville project, to supply the entire town of Graaff Reinet<br />
in the <strong>Eastern</strong> <strong>Cape</strong> with potable water. The Cokeville megaproject<br />
was installed to feed directly into the municipality’s infrastructure and<br />
is able to supply between 27-million and 30-million litres of water<br />
every month to the town and surrounding communities.<br />
Since the inception of our borehole groundwater harvesting<br />
programme, we have managed to replenish hundreds of millions of<br />
litres of water in Limpopo, KwaZulu-Natal, Gauteng, Free State and<br />
the <strong>Eastern</strong> <strong>Cape</strong> provinces, benefitting thousands of households.<br />
Building resilience through partnerships and innovation<br />
We understand that no entity can solve the water challenges<br />
alone. We believe in collective action and partnership to tackle<br />
development issues. It is<br />
important that all relevant<br />
stakeholders have a voice,<br />
an investment and a shared<br />
understanding of the outcomes<br />
to ensure we deal with the lack<br />
of access to safe water.<br />
As CCBSA we believe in and<br />
are committed to solution-driven<br />
conversations for a better future<br />
for all. ■<br />
45<br />
EASTERN CAPE BUSINESS <strong>2024</strong>
OVERVIEW<br />
Oceans economy<br />
Infrastructure upgrades are underway at the <strong>Eastern</strong> <strong>Cape</strong>’s ports.<br />
SECTOR INSIGHT<br />
The Port of East London has<br />
started exporting manganese.<br />
National utility Transnet has a seven-year plan to invest<br />
in infrastructure upgrades at the Port of Ngqura (which<br />
serves the Coega SEZ) and the ports of Port Elizabeth and<br />
East London.<br />
The Port of East London, pictured, is best known as the conduit for<br />
the export of Mercedes-Benz vehicles and agricultural produce. It is<br />
set to become an alternate destination for manganese exports but the<br />
bulk of exports will go through a new dedicated manganese export<br />
facility with a capacity of 16-million tons to be built at Ngqura. This<br />
development will free up space within the Port of Port Elizabeth for<br />
leisure craft and ensure that Kings Beach will remain a sought-after<br />
holiday destination.<br />
Another development within the Port of Ngqura will see the<br />
Mediterranean Shipping Company establish an additional exportcargo<br />
service for agricultural products such as the citrus from the<br />
Sundays River Valley.<br />
Promoting the oceans economy is one of the priorities of the<br />
<strong>Eastern</strong> <strong>Cape</strong> Provincial Government. Beyond harbours and fishing,<br />
other potential sectors such as maritime repair and maintenance and<br />
oil and gas exploration have great potential. National government has<br />
named the Coega SEZ as the site of a potential liquified natural gas<br />
(LNG) plant. An Oceans Economy Master Plan has been created and<br />
so far, 73 co-operatives have been awarded 15-year licences by the<br />
National Department of Forestry, Fisheries and the Environment (DFFE).<br />
ONLINE RESOURCES<br />
Maritime <strong>Business</strong> Chamber: www.maritimechamber.co.za<br />
Ocean Sciences Campus (NMU): https://oceansciences.mandela.ac.za<br />
South African International Maritime Institute: www.saimi.co.za<br />
The Maritime <strong>Business</strong><br />
Chamber (MBC) has been<br />
established in the <strong>Eastern</strong> <strong>Cape</strong>,<br />
with its headquarters overlooking<br />
the Port Elizabeth harbour. It<br />
aims to address the imbalances<br />
in the maritime industry by<br />
representing the interests of all<br />
local businesses. It is aligned<br />
with strategic programmes<br />
such as Operation Phakisa and<br />
the Comprehensive Maritime<br />
Transport Policy (CMTP) and<br />
creates opportunities for SMMEs.<br />
<strong>Eastern</strong> <strong>Cape</strong> economic<br />
planners are getting advice<br />
from Egypt on how to scale up<br />
aquaculture. The North African<br />
country, which is sharing technical<br />
and funding ideas with the <strong>Eastern</strong><br />
<strong>Cape</strong>, produces 1.6-million tons of<br />
product in its aquaculture industry<br />
whereas South Africa’s total is<br />
currently less than 10 000 tons.<br />
The focus of an expanded<br />
aquaculture sector is at Mbashe,<br />
Coega Special Economic Zone and<br />
the East London IDZ. The Coega<br />
Development Corporation (CDC)<br />
has set out a 440ha zone inside<br />
the Coega SEZ adjacent to the<br />
deepwater Port of Ngqura.<br />
The Coega SEZ is served by<br />
two ports, is on the N2 highway<br />
and close to the Chief Dawid<br />
Stuurman International Airport, an<br />
important consideration for the<br />
export of live products. ■<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
46<br />
PHOTO: TNPA
Maritime <strong>Business</strong> Chamber<br />
The MBC is the anchor and place of refuge for the<br />
Maritime Industry.<br />
The Maritime <strong>Business</strong> Chamber (MBC) has<br />
positioned itself as the advocacy voice of<br />
the Maritime Industry by providing business<br />
support, promoting sustainable jobs and skills<br />
development and lobbying for business opportunities.<br />
MBC supports all maritime programmes that<br />
seek to promote sustainability (balance socioeconomic<br />
and environmental issues in the<br />
Maritime Industry).<br />
Vision<br />
To be a leading, inclusive, progressive and transformative<br />
chamber for developing competent and sustainable<br />
maritime enterprises.<br />
Mission<br />
To be a leading partner in offering maritime services<br />
that promote socio-economic growth and maritime<br />
industry capacity building.<br />
The Maritime <strong>Business</strong> Chamber affirms its focus<br />
according to the following objectives:<br />
• Round table and maritime think-tank discussions<br />
on Africa’s maritime regulations, policy/bills/legislations<br />
and marine environment<br />
• Enterprise development that will address core<br />
competencies and capabilities, systems development<br />
and Maritime Leadership Development<br />
• Facilitation of access to finance through fundraising<br />
for the Maritime Industry and social causes,<br />
sponsorships and investments<br />
• Stakeholder collaboration in the implementation of<br />
the African Continental Free Trade Area (ACfTA) and<br />
Revised Africa Maritime Transport Charter<br />
• Encourage and promote synergies, collaboration,<br />
SMART and sustainable, innovative and efficient ways<br />
of doing business among all African Maritime Industry<br />
bodies or structures<br />
• Global competitiveness by forging intra-regional<br />
African partnerships, promoting regional practice<br />
Internationally and benchmarking<br />
• Advocate for efficient and competitive ports,<br />
shipping and maritime services in Africa<br />
Sectors of focus<br />
Our focus areas include:<br />
• Shipping<br />
• Ports<br />
• Shipbuilding with the shipbuilding supply industry<br />
• Marine engineering<br />
• Offshore oil and gas<br />
• Offshore wind energy<br />
• Fisheries<br />
• Aquaculture<br />
• Maritime research and development.<br />
Our core function is to focus on SMME development<br />
and to ensure MARITIME FOR US ALL!<br />
AAMA conference: Daniel Mwaza (Secretary General, Intergovernmental<br />
Standing Committee on Shipping), Nondumiso Mfenyana (MBC Executive<br />
Secretariat), Mwanaulu Issa Mwajita (Director, ISCOS Trade Facilitation and<br />
Policy Harmonisation) , Unathi Sonti (Executive Chairperson, MBC).<br />
Unathi Sonti, Executive<br />
Chairperson, MBC<br />
CONTACT DETAILS<br />
Tel: +27 41 587 5855<br />
Email: adminoffice@maritimechamber.co.za<br />
Web: www.maritimechamber.co.za<br />
Social networks: Facebook/Instagram/LinkedIn/ @Maritime<strong>Business</strong>Chamber
YOUR PARTNERS IN<br />
GROWING THE BLUE ECONOMY<br />
FUNDED BY:<br />
THE SOUTH AFRICAN<br />
INTERNATIONAL MARITIME<br />
INSTITUTE (SAIMI)<br />
SAIMI was established in 2014 to enhance South<br />
Africa’s maritime and marine sectors. SAIMI<br />
operates under the guidance of the Department<br />
of Higher Education and Training (DHET) as well<br />
as the South African Maritime Safety Authority<br />
(SAMSA) and is funded by the DHET via the<br />
National Skills Fund (NSF).<br />
MISSION AND VISION<br />
To support the development of a skilled maritime<br />
workforce and promote research and innovation<br />
in the maritime and marine sectors, and to be<br />
a leading institution that drives transformation,<br />
inclusivity, and sustainability in these sectors.<br />
STRATEGIC FOCUS AREAS<br />
1. Education and Training: Collaborate with<br />
educational institutions and industry partners<br />
to offer comprehensive maritime education<br />
and training programmes.<br />
2. Research and Innovation: Promote research<br />
on marine biodiversity, ocean governance<br />
and climate change, partnering with various<br />
institutions to enhance sector efficiency.<br />
3. Capacity Building and Transformation:<br />
Empower women, marginalised groups and<br />
support youth development.<br />
4. Advocacy and Coordination: Advocate for<br />
the maritime sector, increasing the training<br />
and placement of trainees and graduates.<br />
5. Knowledge Generation and Informationsharing:<br />
Facilitate seminars, conferences,<br />
and professional development.<br />
6. Industry Collaboration: Partner with stakeholders,<br />
businesses, and Sector Education<br />
and Training Authorities (SETAs) to support<br />
ocean economy initiatives.<br />
KEY INITIATIVES AND<br />
PROGRAMMES<br />
National Cadet Programme: Provides practical<br />
training for cadets, leading to internationally<br />
recognized qualifications and employment.<br />
National Seafarer Development Programme<br />
(NSDP): Increases the number of South African<br />
seafarers by providing structured training and<br />
development opportunities.<br />
Operation Phakisa: Coordinates working<br />
groups focused on maritime skills development,<br />
marine protection and governance.<br />
Ocean Governance Training: Promotes<br />
responsible ocean governance and builds a<br />
network of professionals dedicated to<br />
sustainable ocean management.<br />
Maritime Innovation: Develops maritime<br />
technologies in partnership with eNtsa and<br />
Nelson Mandela University’s Marine<br />
Robotics Unit.<br />
SMME Participation in the Oceans<br />
Economy: Develops strategies for enterprise<br />
development and socio-economic<br />
transformation for SMMEs.<br />
Maritime Awareness and Youth and<br />
Community Development: Raises awareness<br />
about maritime careers and ocean conservation<br />
through programmes such as Learn to Swim,<br />
Learn to Sail and Dive-In App.<br />
Skills Development and Sector Education and<br />
Training: Collaborates with SETAs to develop<br />
and implement sector education and training<br />
programmes
The Oceans Economy<br />
offers many opportunities<br />
The CEO of the South African International Maritime Institute (SAIMI), Odwa Mtati,<br />
says that Collaboration is a key plank in the organisation’s strategy to promote the<br />
maritime sector.<br />
Do you work with other universities?<br />
Odwa Mtati<br />
Chief Executive Officer<br />
SAIMI<br />
Would you agree that the formation of the<br />
Maritime <strong>Business</strong> Chamber in the <strong>Eastern</strong> <strong>Cape</strong><br />
suggests an uptick in interest in the Oceans<br />
Economy?<br />
SAIMI recently conducted a workshop based<br />
on a value-chain study of the critical subsectors<br />
within the Oceans Economy, looking at potential<br />
opportunities for SMEs. Operation Phakisa raised<br />
the level of awareness and people are asking,<br />
what can we pursue as a business opportunity?<br />
The <strong>Eastern</strong> <strong>Cape</strong> Provincial Government has<br />
published a provincial masterplan framework.<br />
Some of that evidence is being reviewed as the<br />
advent of Covid disrupted activities. The <strong>Eastern</strong><br />
<strong>Cape</strong> Government must be commended that it<br />
has a framework but it needs to be refreshed,<br />
reframed and acted upon to ensure that the stated<br />
intentions can be realised.<br />
What is your relationship with Nelson Mandela<br />
University?<br />
SAIMI is funded by the Department of Higher<br />
Education and Training through the National Skills<br />
Fund, so Nelson Mandela University is the host<br />
of SAIMI with the understanding that SAIMI has<br />
a national mandate. Collaboration is important<br />
within the university because NMU has an express<br />
desire to become a leading institution in terms of<br />
ocean sciences. The Ocean Sciences Campus has<br />
been developed to host like-minded organisations.<br />
SAIMI’s mandate is to reinforce and strengthen<br />
the specialisations of the country’s universities, or<br />
to help develop new areas of excellence. We are<br />
looking at the issue of climate change, its impact<br />
and the potential use of technology to address<br />
some challenges.<br />
The University of KwaZulu-Natal (UKZN) is doing<br />
a project for SAIMI for teacher qualification<br />
development in response to the shortage of<br />
qualified teachers for both high schools and<br />
TVET colleges. For oil and gas exploration we<br />
are working alongside a committee of practice<br />
led by Wits University that includes NMU, the<br />
University of the Western <strong>Cape</strong>, Fort Hare and<br />
Walter Sisulu. There is also UCT research work on<br />
the development of new technologies, underwater<br />
gliders and autonomous marine vehicles.<br />
Are you involved in the issue of moving the<br />
manganese dump away from the harbour in<br />
Gqeberha and whether a small-boat harbour can<br />
be developed there?<br />
Our interest can be premised from two different<br />
angles. Firstly, we have been called upon in<br />
terms of the Climate Resistance Strategy of the<br />
Nelson Mandela Metro to look at how the city<br />
can overcome these new challenges. Our role<br />
covers the ocean’s component and there are other<br />
subsectors. We may have some insights into the<br />
issue of the manganese farm and the oil-tank<br />
farm.<br />
And the second aspect of that equation?<br />
Promoting coastal marine tourism by ensuring<br />
that most coastal towns and cities have relevant<br />
strategies that would strengthen their participation<br />
within the Oceans Economy.
OVERVIEW<br />
Film<br />
Jobs are being created in the creative sector.<br />
SECTOR INSIGHT<br />
R39-million has been invested<br />
in 25 projects.<br />
The oldest town outside the Western <strong>Cape</strong> was the scene of<br />
a very modern world film premiere when Wild is the Wind<br />
was shown for the first time in Graaff-Reinet in 2022.<br />
Several films had previously been shot in the town<br />
– notably the political thriller Red Dust – but this was the first<br />
production to make extensive use of local residents as actors and the<br />
local economy benefitted from the production in many ways. The<br />
joint hosts of the premiere were Known Associates Entertainment<br />
(KAE), MYD88 Films, the <strong>Eastern</strong> <strong>Cape</strong> Development Corporation<br />
(ECDC), the Sarah Baartman District Municipality and the Dr Beyers<br />
Naude Local Municipality. Another big financial supporter of the film<br />
project was the National Empowerment Fund.<br />
Since 2018, the Provincial Government, through the ECDC and<br />
various film funds, has invested R39-million in 25 film projects.<br />
This has attracted an investment revenue of R499-million, created<br />
employment for more than 8 400 people and boosted 690 small<br />
businesses. The film sector is seen as one of the best in terms of<br />
investment returns, especially in social terms such as employment<br />
and local economic development. The Economic Impact Report of the<br />
National Film and Video Foundation in 2021 concluded that the film<br />
industry is one of the sectors with the greatest potential for growth<br />
in South Africa.<br />
In 2023 the ECDC hosted the second instalment of the <strong>Eastern</strong><br />
<strong>Cape</strong> Film Expo during the National Arts Festival. The Film Expo<br />
intends to position the <strong>Eastern</strong> <strong>Cape</strong> as a film and television<br />
destination of choice through engaging and attracting local and<br />
international film productions and investors.<br />
ONLINE RESOURCES<br />
Department of Trade, Industry and Competition: www.thedtic.gov.za<br />
<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />
National Film and Video Foundation: www.nfvf.co.za<br />
The ECDC’s <strong>Eastern</strong> <strong>Cape</strong><br />
Investment Film Fund is available<br />
to most production categories,<br />
from animation to feature films<br />
with TV series and telenovelas<br />
and documentaries in between<br />
and ranges from R1-million<br />
to R3-million. The funding is<br />
restricted to productions that<br />
plan to shoot their projects in<br />
the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Tourism, one of the best<br />
sectors for creating employment,<br />
will have been boosted by two<br />
series of the popular Survivor series.<br />
Survivor: Immunity Island, which<br />
was aired in 2021, showed off the<br />
glories of the Wild Coast landscape,<br />
one of the jewels in the crown of<br />
the province’s tourism offering.<br />
Skills transfer to young<br />
people has also accelerated with<br />
the investments taking place<br />
in four of the province’s district<br />
or metropolitan municipalities.<br />
There is also potential for the<br />
growth and development of a<br />
thriving film industry to have a<br />
positive impact on other sectors<br />
such as communication, media<br />
and entertainment. The industry,<br />
through its products, further<br />
promotes cultural knowledge<br />
and attracts international interest<br />
to the region. ■<br />
EASTERN CAPE BUSINESS <strong>2024</strong> 50 PHOTO: michael clarke stuff, Wikimedia Commons
A preferred film and television destination of choice<br />
The <strong>Eastern</strong> <strong>Cape</strong> Film Investment Fund is supporting the fast-growing film sector.<br />
The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation (ECDC) realises the<br />
investment promotion potential of promoting the <strong>Eastern</strong> <strong>Cape</strong><br />
as a destination for hosting national and international film and<br />
television productions. The province has breath-taking film and<br />
television locations which position the <strong>Eastern</strong> <strong>Cape</strong> as a preferred<br />
film and television destination of choice. Since its inception<br />
in 2019, the province continues to realise a return of its<br />
investment in the <strong>Eastern</strong> <strong>Cape</strong> Film Investment Fund<br />
(ECFIF). The province has realised the following economic<br />
spin-offs:<br />
• 25 productions have been funded • R39-million was invested by the ECDC • R499-million was attracted into the province<br />
• 8 400 temporary jobs were created • 690 SMMEs were contracted for support services during the production phases of the projects.<br />
The funding is only available to applicable and eligible productions shooting their projects in the <strong>Eastern</strong> <strong>Cape</strong>. The following funding<br />
categories are considered:<br />
Micro-film funding:<br />
Production funding:<br />
Short films • Documentaries • Short TV formats<br />
Feature films • Drama/TV series • Reality shows • Telenovelas • Documentaries • Animations<br />
How to access the fund<br />
The ECDC opens a funding call advertised on all ECDC social media platforms. These<br />
include on the ECDC website, Facebook and Instagram pages.<br />
Applicants are required to download and read the <strong>Eastern</strong> <strong>Cape</strong> Film Investment<br />
Fund (ECFIF) Guidelines before completing the application form available on the<br />
ECDC website. https://www.ecdc.co.za/ecinvestmentfilmfund<br />
The annual <strong>Eastern</strong> <strong>Cape</strong> Film Expo<br />
In partnership with provincial and national<br />
stakeholders, the ECDC hosts the <strong>Eastern</strong><br />
<strong>Cape</strong> Film Expo for three days, every June<br />
in Makhanda, coinciding with the National<br />
Arts Festival (NAF). The main aim of the<br />
expo is to promote the <strong>Eastern</strong> cape as film<br />
destination of choice through its breathtaking<br />
film locations. The festival is the<br />
ideal platform for engaging with industry<br />
experts, offer masterclasses and screenings/<br />
exhibitions of local and international<br />
content. The main objective is to attract<br />
more local and international production<br />
houses to film their projects in the <strong>Eastern</strong><br />
<strong>Cape</strong> due to the untapped opportunities of<br />
our beautiful locations, while also exposing<br />
the diversity of the province.<br />
ECDC recently<br />
funded<br />
productions<br />
Enquiries can be directed to<br />
Mr Songezo Boyisi at sboyisi@ecdc.co.za<br />
COME TO THE EASTERN CAPE<br />
YOUR INVESTMENT DESTINATION OF CHOICE
OVERVIEW<br />
Development finance and<br />
SMME support<br />
Recyling is bringing employment to Bedford.<br />
The small <strong>Eastern</strong> <strong>Cape</strong> town of Bedford is the site of<br />
a remarkable collaboration between community<br />
organisations, a large telecommunications group and<br />
specialist e-waste recycling company.<br />
The Thembani Eagle Hout Integrated Project recycles redundant<br />
optic cable, an activity that is both labour intensive and environmentally<br />
friendly. Thembani supplies material as a subcontractor to Gauteng-based<br />
Sindawonye Granulators under the auspices of Telkom. Long-lasting<br />
plastic droppers (or fence posts) were created from the stripped cable.<br />
The e-waste project has led to another project in which sawdust<br />
created from the operations of furniture-makers Eagle Hout is used<br />
to make compost for organic vegetable gardening and a township<br />
garden route. The town is renowned for its annual Bedford Country<br />
Gardens Festival so there is a ready market for compost. The Thembani<br />
NGO was granted a waste management licence by the <strong>Eastern</strong> <strong>Cape</strong><br />
Department of Economic Development, Environmental Affairs and<br />
Tourism. Income from the recycling project supports the Thembani<br />
Special Needs Day Care Centre.<br />
The Department of Economic Development, Environmental Affairs<br />
and Tourism (DEDEAT) is working with the <strong>Eastern</strong> <strong>Cape</strong> Development<br />
Corporation (ECDC) to increase the support of SMMEs. This is done by<br />
helping SMMEs gain access to finance and markets, as well as ensuring<br />
that provincial government contracts are accessible to small businesses.<br />
Provincial government departments are encouraged to buy from SMMEs.<br />
Three of the ECDC’s four business units are devoted to small business:<br />
Rural, Enterprise Finance and <strong>Business</strong> Support; Investment Management,<br />
Trade and Investment Promotion; and Economic Development<br />
Coordination and Sector Support.<br />
The ECDC has several financial and non-financial products tailored<br />
to SMMEs through various programmes offered by these business units.<br />
Export Help Desks have been established to support small business in the<br />
Nelson Mandela Bay and Buffalo City Metropolitan Municipalities.<br />
The Small Enterprise Development Agency is an agency of the<br />
National Department of Small <strong>Business</strong> Development (DSBD) which<br />
gives non-financial support to entrepreneurs through training,<br />
ONLINE RESOURCES<br />
<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />
<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency: www.ecrda.co.za<br />
SECTOR INSIGHT<br />
Volkswagen South Africa trains<br />
and mentors suppliers.<br />
marketing and assistance in the<br />
writing of business plans. The<br />
Seda Technology Programme<br />
(Stp) helps potential businesses<br />
become trading entities. The<br />
Seda Incubation Unit supports 14<br />
incubators in the province to the<br />
value of R29.8-million.<br />
Work is underway to refurbish<br />
several state-owned industrial<br />
parks. Areas like the Dimbaza<br />
Industrial Park assist SMMEs<br />
with affordable space and the<br />
programme has so far created 379<br />
jobs and involved 71 local SMMEs.<br />
Volkswagen South Africa<br />
(VWSA) has a project called Ntinga<br />
(“to soar” in Xhosa) whereby<br />
suppliers receive training and are<br />
mentored for 18 months.<br />
As part of its Enterprise<br />
Development programme, the<br />
Wild Coast Sun runs an Academy<br />
where SMME business courses are<br />
offered. The resort aims to achieve<br />
90% procurement of all goods<br />
and services from BBBEE level 1<br />
suppliers within five years. ■<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
52<br />
PHOTO: Freepik
Banking and financial<br />
services<br />
Banks are supporting sustainability.<br />
Banks active in the <strong>Eastern</strong> <strong>Cape</strong> are participating in local<br />
economies beyond extending loans and taking deposits.<br />
Nedbank’s provision of an R800-million borrowing base<br />
facility to the Humansdorp Cooperative, for example, reaches<br />
1 300 farmers who produce more than 30% of South Africa’s dairy<br />
requirements. In addition, the WWF Nedbank Green Trust, funded by<br />
Nedbank, has been a strong supporter of FoodForward SA, the largest<br />
food redistribution non-profit organisation in the country, pictured.<br />
More than 600 farmers donate food which is distributed through 2 750<br />
organisations that reach 985 000 beneficiaries.<br />
Agricultural finance is an important factor in the <strong>Eastern</strong> <strong>Cape</strong>.<br />
Production loans, vehicle financing and revolving credit plans all play a<br />
big role in keeping farmers and agro-processors in business.<br />
Nedbank’s coverage of the <strong>Eastern</strong> <strong>Cape</strong> is significantly enhanced<br />
by its partnership with Boxer, a supermarket chain that is part of the Pick<br />
n Pay group. There are more than 100 Nedbank kiosks in Boxer stores<br />
across South Africa, the result of a relationship that began in 2008.<br />
A much newer entrant to the South African banking scene,<br />
TymeBank, has gone beyond the idea of locating kiosks in<br />
supermarkets with the signing of a deal with TFG, a retail group with<br />
34 brands and 30-million customers. Brands operating in what used<br />
to be known as the Foschini Group include Markhams, Totalsports, Jet<br />
ONLINE RESOURCES<br />
Auditor-General of South Africa: www.agsa.co.za<br />
Financial Sector Conduct Authority: www.fsca.co.za<br />
South African Institute for Chartered Accountants: www.saica.co.za<br />
SECTOR INSIGHT<br />
Shoppers can bank at<br />
TFG stores.<br />
and Dial a Bed, all of which are<br />
well represented in the <strong>Eastern</strong><br />
<strong>Cape</strong>. In the short term, TymeBank<br />
will have access to 600 TFG kiosks,<br />
taking the bank’s total in South<br />
Africa to 1 450.<br />
Absa Bank, which already has a<br />
strong presence in the agricultural<br />
market in South Africa, has bought<br />
shares in an e-trading platform.<br />
Khula! has three platforms that<br />
allow farmers and distributors to<br />
connect with exports and retail<br />
and wholesale buyers. More<br />
than 5 000 products are available<br />
on the Input Marketplace app.<br />
Absa has previously supported<br />
Khula! through its Enterprise<br />
Development division and<br />
has worked with the app on<br />
standardising payment options.<br />
African Bank, with an eye on<br />
listing on the JSE, completed its<br />
purchase of Ubank in 2022. Two<br />
new licences for mutual banking<br />
have been approved nationally,<br />
despite the collapse of VBS, a<br />
Limpopo-based mutual bank. The<br />
nature of the South African market<br />
lends itself to mutual banking. Both<br />
the Young Women in <strong>Business</strong><br />
Network (YWBN) and Bank Zero<br />
will use the mutual model. ■<br />
The sector in numbers<br />
GDP contribution 19.2%<br />
Employed 141 000<br />
OVERVIEW<br />
PHOTO: FoodForward SA<br />
53 EASTERN CAPE BUSINESS <strong>2024</strong>
OVERVIEW<br />
Tourism<br />
The World Bank is putting R65-million into conservation.<br />
SECTOR INSIGHT<br />
The province’s airports are to<br />
be upgraded.<br />
In November 2023, The Black Rhino Range Expansion Project<br />
(BRREP) translocated its 250th rhinoceros. The BRREP has been<br />
moving rhinos to protect them for 20 years and the latest batch<br />
of 20 were taken from a reserve managed by the <strong>Eastern</strong> <strong>Cape</strong><br />
Parks and Tourism Agency (ECPTA). In six years to 2023, 40 rhinos have<br />
been moved from less safe areas into the custodianship of the ECPTA.<br />
This kind of effort has been recognised by the World Bank, which<br />
is putting R65-million from its Global Environment Facility (GEF)<br />
towards efforts in the province to protect biodiversity, in particular in<br />
the Addo Elephant National Park and the Great Fish Nature Reserve.<br />
This region is described by the World Bank as the Greater Addo to<br />
Amathole node.<br />
Several private game reserves have gone to great lengths to<br />
protect their rhino populations. Sibuya Game Reserve on the Kariega<br />
River has established the Sibuya Rhino Foundation and funds its own<br />
armed anti-poaching unit, which leases a helicopter to help with<br />
daily patrols.<br />
In March <strong>2024</strong> National Transport Minister Sindisiwe Chikunga<br />
announced that Airports Company South Africa (ACSA) will go<br />
ahead with a multi-year R21.7-billion capex plan. This will include<br />
upgrades and developments at Gqeberha’s Chief Dawid Stuurman<br />
International Airport and King Phalo Airport in East London.<br />
Although the Bulembu Airport in Bhisho, which is run by the<br />
<strong>Eastern</strong> <strong>Cape</strong> Provincial Government, has been identified as a<br />
potential hub for cargo, it was used in 2023 as a tourist point of entry<br />
when United Arab Emirates President Sheik Mohamed bin Zayed<br />
al Nahyan brought a number of guests to visit his private game<br />
lodge which is apparently near<br />
Makhanda.<br />
Updated figures for domestic<br />
trips into the <strong>Eastern</strong> <strong>Cape</strong> for<br />
2022 showed that there were<br />
5.8-million visits during that year,<br />
and the estimated economic<br />
impact was over R8-billion. The<br />
Provincial Premier attributed this<br />
success to the province’s SMART<br />
marketing approach. This refers<br />
to a campaign that is specific,<br />
measurable, actionable, relevant<br />
and time-bound.<br />
Part of the programme has<br />
been about getting the province<br />
on to film and television screens.<br />
The film strategy is covered<br />
elsewhere in this journal but<br />
the strategy of supporting the<br />
hosting of golf tournaments was<br />
another success. In addition to<br />
hosting the South African PGA<br />
for the third time in 2023 at St<br />
Francis Links, a new, DP World<br />
Tour-sanctioned event, the SDC<br />
Championship, was added to the<br />
calendar and played on the Jack<br />
Nicklaus-designed course in 2023<br />
and <strong>2024</strong>. Gqeberha also hosted<br />
a new tournament, and in 2023<br />
the metropolitan municipality<br />
put its weight behind the effort<br />
to market the city through the<br />
tournament. The Nelson Mandela<br />
Bay Championship was played<br />
for the first time in 2023, and<br />
EASTERN CAPE BUSINESS <strong>2024</strong><br />
54<br />
PHOTO: Sibuya Rhino Foundation
OVERVIEW<br />
again in <strong>2024</strong> as part of the DP World Tour at Humewood Golf Club<br />
and attracted considerable media attention. Resorts and hotels Sun<br />
International runs the Wild Coast Sun and the five-star Boardwalk<br />
Casino and Entertainment World in Gqeberha, which includes<br />
conference and events facilities. Since the Wild Coast Sun became a<br />
four-star resort in 2020, there has been continuing investment in new<br />
facilities and upgrades.<br />
The interior of the <strong>Eastern</strong> <strong>Cape</strong> is home to several high-end<br />
private game reserves such as Shamwari, Mount Camdeboo<br />
and Kariega Game Reserve. Some luxury game lodges are<br />
located within national parks, such as the Gorah Elephant<br />
Camp, which is run by Hunter Hotels and forms part of the<br />
Addo Elephant National Park. Premier Hotels has two hotels in<br />
East London, the Mpanga Private Game Reserve and it manages<br />
the East London International<br />
Convention Centre.<br />
The Radisson Blu in Port<br />
Elizabeth offers five-star luxury<br />
overlooking Pollock Beach.<br />
Tsogo Sun has five <strong>Eastern</strong> <strong>Cape</strong><br />
properties. The Courtyard Hotel,<br />
City Lodge Hotel and Road<br />
Lodge are close to one another<br />
on Port Elizabeth’s beachfront<br />
and allow the group to cater<br />
to three distinct markets with a<br />
total of 442 rooms. East London<br />
has a Road Lodge. ■<br />
ONLINE RESOURCES<br />
Buffalo City Tourism: www.buffalocitytourism.co.za<br />
<strong>Eastern</strong> <strong>Cape</strong> Parks and Tourism Agency: www.visiteasterncape.co.za<br />
Nelson Mandela Bay Tourism: www.nmbt.co.za
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