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Eastern Cape Business 2021-22

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The 2021/22 edition of Eastern Cape Business is the 14th 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’s investment and business opportunities are highlighted in this publication. The fact that the province is home to the majority of wind power projects as part of the country’s drive to promote renewable energy is the subject of a special feature. Overviews are provided on the key economic sectors of the province, including the vital contribution that the agricultural and automotive sectors continue to make on the province’s economic trajectory. References are made to the potential of the Oceans Economy and to the prospects of oil and gas for this coastal province. The major business chambers in the province have made contributions to the journal.

Credit: Daimler.com a

Credit: Daimler.com a 400kV transmission line between the plant site and the Dedisa substation which reduces costs for future investors. A draft scoping report has been prepared for an integrated LNG terminal and gas-to-power plant. National government has named the Coega SEZ as the potential site for a 1 000MW Liquefied Natural Gas (LNG) plant. The value to the regional economy of the project is estimated at R25-billion. Imported LNG would be used as feedstock initially, while exploring local sources. Drilling off the southern coast has revealed vast resources in the Brulpadda field in the Southern Outeniqua Basin. If some of this gas could be recovered, the two SEZs on the Eastern Cape coast would become critical to its utilisation. Activity in the oil and gas sector would in turn stimulate the maritime sector. The potential of the Oceans Economy is already receiving a lot of attention and Nelson Mandela University’s Ocean Campus is one of the leaders. The South African International Maritime Institute (SAIMI) has new headquarters in Port Elizabeth. The provincial government has invested R206- million in the development of 100ha Aquaculture Development Zone in the Coega SEZ. This aligns with the Oceans Economy master plan, which aims to leverage the province’s coastal assets in terms of fishing, bunkering, oil and gas industry development, tourism and marine transport and manufacturing. Where energy and the Eastern Cape are already functioning strongly is in wind power. The exciting developments in this field are covered in a separate article in this publication. Geography The Eastern Cape extends over 169 580 square kilometres, representing 13.9% of South Africa’s land mass. The dry western interior is one of the country’s premier sheeprearing destinations and it is the home of the mohair industry. The mountainous regions of the north and east of the province support timber plantations while the coastal belt in the south-west is wellwatered and is good for dairy farming. The province has spectacular beaches stretching from the surfer’s paradise at Jeffreys Bay all the way to the famed Wild Coast. Two major airports at Port Elizabeth and East London provide good air links and smaller towns such as Mthatha and Bhisho have airports. Municipalities The Eastern Cape has six district municipalities and two metropolitan municipalities. Buffalo City Metropolitan Municipality Towns: East London, King Williams Town The Port of East London is South Africa’s only river port. The airport, rail links and the East London IDZ contribute to making this an important regional centre. Buffalo City hosts a variety of manufacturers from vehicles to batteries and cotton textiles and is responsible for 19.6% of provincial GDP. There are many opportunities for agro-processing because of the fertile hinterland and as part of the Sunshine Coast, tourism is an important contributor to the local economy. EASTERN CAPE BUSINESS 2021/22 10

SPECIAL FEATURE Nelson Mandela Bay Metropolitan Municipality Towns: Gqeberha (Port Elizabeth), Kariega (Uitenhage), Despatch With two ports, a large airport and a concentration of manufacturing concerns, the Nelson Mandela Bay metropole is one of the province’s key economic drivers. It contributes 38.7% to provincial GDP. Volkswagen, General Motors and Ford are all located within the municipality, as are several automotive supplier companies. Aspen, a pharmaceutical company, and South African Breweries are examples of other large concerns. Nelson Mandela Bay has population of 1.1-million and many educational institutions. The Nelson Mandela Bay Stadium and St George’s Park cricket ground host provincial and international sports matches. Superb beaches and plentiful outdoor options make the area a popular tourist stop. The Addo Elephant National Park is less than an hour’s drive from the Port Elizabeth city centre. Alfred Nzo District Municipality Towns: Matatiele, Mount Frere, Mount Ayliff The smallest district is in the mountainous northeast, with hiking trails for tourists. There is scope for expansion of tourist activities, and a transfrontier park between South Africa and Lesotho could boost the area’s economy. Subsistence agriculture and forestry are the major economic activities. Amathole District Municipality Towns: Cathcart, Stutterheim, Morgan’s Bay, Willowvale, Butterworth, Alice, Bedford The rural Amathole District surrounds the metropolitan area of Buffalo City. Pineapple and forestry are two of the most important agricultural activities. Popular resorts on the Wild Coast attract many tourists to the area. Hogsback and other towns near the Amatole Mountains offer beautiful scenery and popular beaches. Alice hosts the main campus of the University of Fort Hare. Chris Hani District Municipality Towns: Middelburg, Molteno, Dordrecht, Cradock, Komani (Queenstown), Lady Frere, Elliot Sheep farming is an important part of the economy. Some coal is found in the north and tourist activities include fly-fishing. The Foodcorp factory in Molteno manufactures Ouma rusks. Queenstown is a centre for cattle farming and has some manufacturing activities. The Mountain Zebra National Park is near Cradock. The Grootfontein Agricultural College and Research Station is in Middelburg, and the Marlow Agricultural College is near Cradock. Joe Gqabi District Municipality Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie Cattle and sheep farming make up 80% of land use, while commercial forestry is a big contributor to employment. There are large forestry plantations at Ugie and Mount Fletcher. Maize is grown along the Orange River and wheat in the foothills of the Drakensberg mountains. Tiffindell has been revived as a ski resort. The village of Rhodes hosts a “Stoepsit” festival in February. OR Tambo District Municipality Towns: Mthatha, Coffee Bay, Port St Johns, Qumbu, Bizana, Flagstaff OR Tambo District Municipality encompasses some of the province’s least-developed areas and contains one of South Africa’s most important ecological areas, the Pondoland Centre of Plant Endemism. There is mining in some areas but plans for titanium mining on seaside dunes are being contested. A Wild Coast Spatial Development Initiative exists to plot further development. Forestry is a big employer. Sarah Baartman District Municipality Towns: Graaff-Reinet, Humansdorp, Jeffreys Bay, Makhanda (Grahamstown) The western part of the province contains the biggest municipality geographically. Large commercial farms in the Karoo produce high-quality meat, wool and mohair, while the coastal belt has dairy farming and some forestry. The Kouga Valley is a big deciduous fruit producer, while the Kirkwood/Addo area is known for its citrus. Sarah Baartman has three of the region’s national parks and several private game farms. Makhanda hosts the National Arts Festival, Rhodes University and several fine schools. ■ 11 EASTERN CAPE BUSINESS 2021/22

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