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Eastern Cape Business 2021-22

  • Text
  • Coastal
  • Windpower
  • Energy
  • Renewable
  • Transnet
  • Transportation
  • Ports
  • Trade
  • Economy
  • Provincial
  • Investment
  • Business
  • Banking
  • Economic
  • Nedbank
  • African
  • Nelson
  • Municipality
  • Mandela
  • Cape
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.

SPECIAL FEATURE South

SPECIAL FEATURE South African economy at a glance Insight into the South African ecomomy. SPECIAL FEATURE ZIMBABWE NAMIBIA BOTSWANA Limpopo 7% MOZAMBIQUE North West 6% Gauteng Mpumalanga 35% 7% SWAZI- LAND Northern Cape 2% Free State 5% LESOTHO KwaZulu- Natal 16% Western Cape 14% Eastern Cape 8% Percentage contribution of each province to national GDP. SOURCE: STATS SA WWW.STATSSA.GOV.ZA secured tens of thousands of new seats on direct Trends Table: South African mining production flights to and from the city). • Companies are successfully trading into Africa. Good Increased signs for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with • Several provincial governments and investment macadamia nuts being the most successful. agencies are establishing trade relations and Pecan nuts have done well and wine and grape study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution are growing. visits to and from China immediately before and • Private education at school and tertiary level is after a major BRICS summit in 2018 gave an indication that Ramaphosa holds high hopes for • New banking licences have been issued and growing as a sector. Platinum Group Metals 276.1% 39.2% increased trade with the biggest of the BRICS several more are in the pipeline. nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and 2017 was worth .1-billion. South Africa wants more are expected. to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and became the first country in the world to export railways) is strong. Nedbank’s report on capital beef to China in 2017, to go with existing exports expenditure in South Africa stated that the of Manganese iron ore, platinum ore and fruit and wine. 208.2% 29 large projects 14.2% announced in the first half • Tourists are visiting South Africa in record numbers (Cape Town’s Air Access programme has Mail). The renewable energy of 2018 were valued at R63.9-billion (Financial programme Iron ore 149.1% 13.3% Source: StatsSA.com 17 SOUTH AFRICAN BUSINESS 2019 Source: world exports.com Table: South African mineral sales Mineral sales increased by 152.7% year-on-year in April 2021. Largest contributors % increase % contribution PGMs 465.9% 103 Iron ore 115.6% 19.5 Gold 40.9% 6.5

10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA 01. HOT EMERGING MARKET Growing middle class, affluent consumer base, excellent returns on investment. 02. MOST DIVERSIFIED ECONOMY IN AFRICA South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination. LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT SA is the location of choice of multinationals in Africa. 03. Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech. 05. FAVOURABLE ACCESS TO GLOBAL MARKETS ADVANCED FINANCIAL SERVICES & BANKING SECTOR SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation. The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets. YOUNG, EAGER LABOUR FORCE 09. SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development. 07. 04. 06. 08. PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors. ABUNDANT NATURAL RESOURCES SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise. WORLD-CLASS INFRASTRUCTURE AND LOGISTICS A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index. 10. SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector. EXCELLENT QUALITY OF LIFE Page | 2 19 SOUTH AFRICAN BUSINESS 2020

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