SPECIAL FEATURE The
SPECIAL FEATURE The Eastern Cape is the second-largest citrusproducing province with the Sundays River Valley being the country’s single biggest production area. South Africa is the world’s second-largest exporter of citrus fruit. A national export record was achieved in 2020, with 146-million cartons of fresh citrus being exported (second only to Spain). Citrus yielded R3.4-billion in exports for the Eastern Cape. National citrus exports have grown by more than 40% in the past decade to about R20-billion per year. The Citrus Growers’ Association of Southern Africa forecasts an increase from the current 150-million 15kg cartons to 200-million in the next five years, and this is projected to grow still further to 255-million by 2030. Automotive strength The list of winners at the annual awards function for Exporters Eastern Cape Exporter of the Year gives a good indication of the strength of the province’s automotive and automotive supply sectors. Exporters Eastern Cape is a non-profit organisation comprised of members from export companies, freight forwarders, financial institutions and shipping lines. The Nelson Mandela Bay Business Chamber’s Enterprise Development Programme has several parts: the Export Development Programme is the latest initiative. The Eastern Cape Development Corporation offers extensive support to exporters through its Trade Promotion Unit which facilitates annual trade missions, exhibitions and workshops to offer networking platforms, share knowledge and gain access to prospective clients. Acoustex Group, a Gqeberha-based automotive component manufacturer, won Exporter of the Year 2021, in addition to the prize for best exporter in the medium enterprise category. The company created a new product line by acquiring a company and increased direct and indirect export turnover to 12 countries by 24%. Among the products produced by Acoustex are sound deadeners, moulded insulation parts, carpets, parcel trays, tailgate covers and back-panel components. Other companies in the group make vehicle protection kits, vehicle protection seat covers and technical laminated fabrics for medical and domestic use. An interesting category prioritised environmental accreditation and environmental management. Merit awards were given in the SJM Flex Environmental Award to the Coega Development Corporation, Purem, Isuzu and Volkswagen Group South Africa. Volkswagen also won Best Exporter Original Equipment Manufacturer (OEM) with Isuzu being recognised for skills development and transformation initiatives. In recent years, each of the province’s OEMs has been steadily increasing export volumes, often breaking new records in successive years. In 2016 Mercedes-Benz recorded a new high for the month of April of 10 674 vehicles exported through the Port of East London. Over seven years to 2021, 650 000 C-Class models were built, of which more than 90% were exported. Volkswagen has sent 326 000 Polos into the global market since 2018. An interesting addition to the export basket of Isuzu Motors is pick-up kits in knocked down (KD) format which are being sent to Isuzu East Africa, an affiliate in Kenya. Ford makes engines at its plant in Struandale, Gqeberha. The company wants to persuade national government to upgrade the railway line between Gauteng (where it makes its vehicles) and Gqeberha so that it can send parts up the line to Tshwane and export its vehicles out of the port. Fully 75% of the company’s product is exported to more than 100 markets around the world. In September 2020, Ford led automotive exports with 6 995 vehicles. ■ The Acoustex Group was Exporter of the Year in 2021. Credit: Acoustex Group EASTERN CAPE BUSINESS 2022/23 18
FOCUS Property and infrastructure projects are promoting growth The Property Management and Infrastructure Unit of the ECDC provides the framework for businesses to operate. development, particularly in underdeveloped areas. The unit also facilitates strategic alliances regarding multi-tenanted residential complexes so as to maximise revenue and minimise costs. Credit: AIDCEC The ECDC manages a substantial property portfolio which enables it to rent out industrial and commercial premises at affordable rates or sell property to appropriate investors. The ECDC also functions as the manager of large infrastructure projects for the Eastern Cape Provincial Government. Property Management The Property Management Unit offers small-tomedium enterprises suitable premises at affordable rates through its diverse property portfolio. When it is in the interests of the corporation, the ECDC will consider selling its property to the investor. The ECDC is one of the biggest property owners in the province with residential, commercial, manufacturing and warehousing space. Large areas of vacant land zoned for residential and commercial purposes are also available. The following suite of services is offered: facilitate commercial and industrial activity; assist new investors to find properties; facilitate SMME Infrastructure (Strategic Projects) The ECDC has been entrusted by the Eastern Cape government to manage some of its special functions and projects such as the integrated infrastructure programme and a number of large-scale development projects. This unit provides the following services: • Planning and monitoring • Facilities and property management • Industrial Parks Revitalisation Programme The primary objectives of this programme are to stimulate economic growth through supporting of SMMEs; to build SMME zones to accommodate SMME start-ups; make the parks an investment destination of choice; devise and introduce incentive schemes for potential investors, to allocate properties to sustainable businesses showing growth and intending to employing local labour. The parks in the programme are Dimbaza Industrial Park, Butterworth Industrial Park, Vulindlela Heights Industrial Park, Queendustria Park, Fort Jackson Park, Buffalo City Automotive Aftermarket Incubator (shown in the photograph). • Socio-economic and enterprise development This area of the unit’s work will be achieved through setting up and managing an SMME database, training and mentoring of SMMEs, placement and recruitment of local labour management, technical and nonaccredited training and intern placement and training. ■ ECDC contact details Address: 1 Moore Street, Quigney, East London Tel: +27 43 704 5604 Email: info@ecdc.co.za Website: www.ecdc.co.za EASTERN CAPE BUSINESS 2022/23
