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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.

OVERVIEW Manufacturing

OVERVIEW Manufacturing Ford wants to see a rail corridor to Gauteng established. SECTOR INSIGHT Increasing volumes at the port of Ngqura is a priority for Transnet. The production of the Mercedes-Benz C-Class in East London is a technological marvel, and the plant regularly wins international awards for quality. The installation of a new sequencing centre, to be installed by Automotive Logistics Solutions (an AHI company) will make the assembly line even more efficient. The plant has also recently become an IT Hub with a focus on data analytics, software development and business analysis. Mercedes-Benz consistently breaks records for the number of cars it exports through the Port of East London via Transnet Port Terminals. The 520 963m² Volkswagen SA plant (pictured) in Kariega (formerly Uitenhage) produces Volkswagen Polo, Cross Polo and engines, and in 2019 created a new production record of 161 954 vehicles, with 108 422 destined for the export market. In 2021 Ford announced that it would spend a total of R15.8-billion on production of the Ranger pick-up truck. Most of the money will be spent in Gauteng where the vehicle is assembled, but Ford is also in talks to see if a sophisticated rail corridor can be developed between Gauteng and the Eastern Cape, where Ford makes engines and many of its suppliers are located. The company wants to send parts to Pretoria and export cars through the Port of Gqeberha (formerly Port Elizabeth). Home-grown manufacturer of powertrain and catalytic converter assembly systems, Jendamark, exports to 18 countries. Continental Tyre South Africa is producing a 19-inch tyre for the first time at its New Brighton facility in Port Elizabeth. Isuzu SA has completed its consolidation project, with truck and bakkie manufacturing now taking place at its new headquarters in Struandale, Port Elizabeth. ONLINE RESOURCES Credit: Volkswagen SA Automotive Industry Development Centre: www.aidc.co.za Coega Development Corporation: www.coega.co.za Eastern Cape Development Corporation: www.ecdc.co.za Phase 1 in the construction process of the vehicle assembly plant of Beijing Automotive Group South Africa (BAIC SA) is complete. The provincial government aims for more diversification in manufacturing and is targeting sectors where the province already has a competitive advantage (such as wool and mohair), is labour intensive, will have a broad impact and has low barriers for SMME entry. First National Battery, a Metair Group company, has one factory at Fort Jackson and two factories in East London. Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Party in Port Elizabeth and Gately Township, East London. Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Port Elizabeth. East London hosts Johnson & Johnson’s finance, operations and research and development divisions. Aspen Pharmacare’s R1-billion specialised product facility at Port Elizabeth will add 500 jobs to the existing staff of 2 000. The new plant will make products for chronic conditions. Annual production of about 3.6-billion tablets is planned. ■ EASTERN CAPE BUSINESS 2021/22 30

Tourism The East London beachfront is being upgraded. OVERVIEW SECTOR INSIGHT Road repairs to tourism sites are being undertaken. Hotels, lodges and casinos Tourism infrastructure projects are underway as a means of preparing for the post-Covid-19 environment. The East London Beachfront Development and East London Waterworld are under construction. Upgrading of beaches in the Ndlambe Local Municipality are planned and a hiking trail from Coffee Bay to Port St Johns is being built. The R61 road from Bhaziya to Mthatha airport junction will soon be repaired and upgraded and contracts for a number of other provincial roads leading to tourist sites have been put out to tender, including Makhanda to Port Alfred and the R61 to Hluleka Game Reserve. Built on the site of the Prince Alfred Park in Gqeberha (formerly Port Elizabeth), the 42 000-seater Nelson Mandela Bay Stadium is quite rare in being adjacent to a body of water, the North End Lake. Since it was built in 2010, rugby test matches and international rugby tournaments have been played there and the stadium and stadium precinct have become popular as sites for events, music concerts and product launches. With regard to domestic tourism, the Eastern Cape’s 12.1% share of the pie is fairly close to the leader (17.2%) and it’s easy to see why. Unmatched beaches, the pristine Wild Coast and a wide variety of national parks and private game reserves make for a superb natural offering. Branding the province as the “Adventure Province” has helped in attracting bungy-jumpers, divers, abseilers and rock climbers. ONLINE RESOURCES Credit: Buffalo City Tourism Buffalo City Tourism: www.bctourism.co.za Eastern Cape Gambling and Betting Board: www.ecgbb.co.za Eastern Cape Parks and Tourism Agency: www.visiteasterncape.co.za Mandela Bay Development Agency: www.mbda.co.za A new luxury hotel is being built in St Francis Bay. The 60-room St Francis Links Hotel by Mantis will overlook the golf course’s final hole and has views of the Indian Ocean and Kouga Mountains. The interior of the Eastern Cape is home to several high-end private game reserves such as Shamwari, Mount Camdeboo and Kariega Game Reserve. Some luxury game lodges are located within national parks, such as the Gorah Elephant Camp, which is run by Hunter Hotels and forms part of the Addo Elephant National Park. Premier Hotels has two hotels in East London, the Mpanga Private Game Reserve and it manages the East London International Convention Centre. The Radisson Blu in Port Elizabeth offers five-star luxury overlooking Pollock Beach. Tsogo Sun has five Eastern Cape properties. The Courtyard Hotel, City Lodge Hotel and Road Lodge are close to one another on Port Elizabeth’s beachfront and allow the group to cater to three distinct markets with a total of 442 rooms. East London has a Road Lodge. Sun International runs the Wild Coast Sun and the five-star Boardwalk Casino and Entertainment World in Port Elizabeth, which includes conference and events facilities. ■ 31 EASTERN CAPE BUSINESS 2021/22

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