5 months ago

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.


OVERVIEW Water The Umzimvubu project is a national priority. SECTOR INSIGHT Water levels in the Kouga Dam have reached dangerous levels. Awater supply and hydropower project is planned on the Umzimvubu River. The project, recently allocated to the National Department of Public Works and Infrastructure as part of a list of 50 priority infrastructure projects, entails the construction of two multipurpose dams and the provision of hydropower. The Kouga Dam (pictured), which serves urban areas such as Gqeberha and citrus farmers in the Gamtoos Valley and beyond, was reported to be a 7% in May 2021, the lowest level since it was built. Several plans are under consideration to alleviate the water shortages facing the Eastern Cape’s towns and rural areas. Most municipalities introduced restrictions on usage with the Nelson Mandela Bay Municipality limiting residents to 50l per day. The provincial regional bulk infrastructure grant programme is paying for nine bulk water projects, valued at R4.9-billion, including the R500-million Amatola Water Six Plant Upgrade. The Nelson Mandela Bay metropole currently gets its water from 10 dams, six of which are owned by the municipality. Water services are provided to the citizens of the Eastern Cape by 17 water service authorities which oversee 163 drinking water supply systems. Muncipalities and Amatola Water are the primary providers of services. ONLINE RESOURCES Credit: Gamtoos Irrigation Board National Department of Water and Sanitation: Umzimvubu Catchment Partnership Programme: www. Water Institute of South Africa: Water Research Commission: Amatola Water manages bulk water infrastructure across 50 000km², encompassing the district municipalities of Chris Hani and Amathole, together with portions of other municipal areas. Backlogs in rural areas and smaller municipalities are still prevalent, and this water authority is playing a key role in reducing and eradicating these inequalities. The Rhodes University Institute for Water Research is one of several institutions in the country that conducts research into water quality. A lot of the institute’s funding comes with project-related grants from the national Water Research Commission, some students receive funding from the Carnegie Foundation and Unilever sponsors the Unilever Centre for Environmental Water Quality, a unit within the institute. The Water Institute of South Africa has 1 800 members. It does research, provides members with information and runs conferences. As in most areas of life in South Africa, environmental standards are set and maintained by the South African Bureau of Standards (SABS). ■ EASTERN CAPE BUSINESS 2021/22 28

Construction and property Gqeberha is expanding westwards. OVERVIEW SECTOR INSIGHT Student accommodation is a growth sector. The biggest shopping mall in the Eastern Cape is set to become the centre of a significant housing development. The plan for the Baywest Mall (pictured) on the western edge of Gqeberha (formerly Port Elizabeth) always envisaged the project acting as a catalyst for other forms of development. The mall was jointly developed by Abacus Asset Management and the Billion Group. The Provincial Government of the Eastern Cape has announced that an R18-billion Bay West housing project is at “an advanced stage”. Involving the metropolitan municipality of Nelson Mandela Bay and private developers, there are plans for 20 400 affordable units and 5 040 social units. Another area of strong activity is in the building of student accommodation. The Department of Higher Education and Training has seen to it that institutions such as the universities of Fort Hare, Nelson Mandela and Walter Sisulu and the King Hintsa TVET College have each had between 1 000 and 3 000 new beds supplied on their campuses. Student accommodation specialists STAG African are the contractors at Fort Hare. The choice of the Coega Special Economic Zone (Coega SEZ) by companies looking to distribute their products from there has brought work for construction companies. GVK-Siya Zama is engaged in creating a 11 800m² logistics warehouse situated in Zone 1, following green building principles. Energy-efficient heating and ventilation systems, rainwater harvesting and PV solar panels all form part of the plan to ONLINE RESOURCES Credit: DHK Construction Industry Development Board: Mandela Bay Development Agency: Social Housing Regulatory Authority. South African Property Owners Association: control the ambient temperature for the snack and food items which will be stored there. Coastal properties almost always attract a premium but a new trend towards “semigration” is further boosting prices. Semigration refers to families who live in towns like Knysna or George but the bread-winner commutes to Johannesburg. Towns such as St Francis Bay, Jeffreys Bay and Port Alfred are now becoming the site of primary residences, instead of being exclusively holiday destinations. A new housing development in the rural area of Keiskammahoek attracted funding of R25-million from the Eastern Cape Provincial Department of Human Settlements. Aimed at destitute families, the first phase was conducted in the settlement of Masincedane, and the project will ultimately cater to 1 255 beneficiaries. The Mandela Bay Development Agency (MBDA) has transformed the Old Tramway building at the entrance to the Baakens Valley. The MBDA not only moved into new offices in the renovated building but is letting it out as an events venue. Other retail property developments have happened in the valley (including a popular brewery), drawing attention to the potential of Port Elizabeth’s green lung to be even more useful in future. ■ 29 EASTERN CAPE BUSINESS 2021/22

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