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The Eastern Cape’s strategic location makes it ideal for logistics. Rhenus Logistics has expanded its facilities in Port Elizabeth and built a new warehouse in East London, pictured. Infrastructure The province’s two Special Economic Zones (SEZs) have been the focus of investment to prepare them to host an array of enterprises. Dedicated sections of the SEZs provide for a cluster approach, something which automotive suppliers and logistics firms have taken advantage of. In the SOPA, Premier Mabuyane reported that the East London Industrial Development Zone (ELIDZ) exported over R3-billion worth of products in a 12-month period. In the five years to 2024, the ELIDZ signed up 24 investors with an investment value of R5.7-billion, primarily in the automotive, agroprocessing and general manufacturing sectors, but he noted that renewable energy sector investment is rising fast. Within the Coega SEZ, just north of the city of Gqeberha, the Port of Ngqura was primarily designed as a container terminal but additional capabilities are being added. The Coega Development Corporation (CDC) has been tasked with finding a developer for a new Liquid Bulk Terminal and for a new manganese terminal. Transnet has agreed that the tank farm and manganese storage facility at the Port of Gqeberha is to be moved to the Port of Ngqura. The provincial government has identified six “mega” infrastructure projects on which to focus: N2 Wild Coast Highway, Mzimvubu Water Project, Eastern Cape Transnet initiatives, N2 Nodal Development, undersea cables and the Wild Coast SEZ. In addition, Premier Mabuyane revealed in the 2024 SOPA what he expects will be the priorities of the next provincial administration, the seventh since democracy was ushered in in 1994. The Eastern Cape is one of the provinces in South Africa where the African National Congress (ANC) is most confident of returning as the governing party. The Premier listed the priorities as follows: biofuels, cannabis, oceans economy, Bhisho precinct, Bulembu airport for cargo and liquified natural gas. With three ports and two large airports, the Eastern Cape is well suited to logistics activity. The massive Msikaba Bridge under construction in the OR Tambo District is on track for completion in 2025. This will transform travel in what used to be the Transkei and open up the Wild Coast for tourism. Work on the Mtentu Bridge in the Alfred Nzo District resumed in December 2023 and is scheduled for completion in 2027. Seven of the roads that lead to these bridges will be upgraded from gravel to tar as part of the broader project. Both Vodacom and MTN are continuing to invest in telecommunications infrastructure. A project to connect 23 rural villages was completed by Vodacom at a cost of R34-million; a further R71- million will be spent on connecting another 86 villages. MTN allocated R600-million to protect its network and has rolled out an extensive programme of battery and generator support. A Samsung Innovation Campus has been initiated at Walter Sisulu University. To be EASTERN CAPE BUSINESS 2024 12 PHOTO: Rhenus Logistics
Helping companies export to new markets The Trade Promotion Programme of the ECDC offers a wide range of support services to exporters. The Eastern Cape Development Corporation (ECDC) Trade Promotion Programme is a comprehensive initiative that aims to enhance the export capabilities of firms in the province. The programme offers several key initiatives, including the Exporter Development Programme, Export Incentives Programme and Market Assistance Scheme. These initiatives provide exporters and potential exporters with knowledge and skills to take advantage of new and more complex export opportunities. The Exporter Development Programme focuses on providing training and support to exporters. It covers topics such as export payment methods, export finance, insurance, export procedures, commercial terms, terms of international trade, transportation logistics, quality control measures, export packaging, pricing, business expansion and contract negotiation. Assistance with marketing and mentorship is also provided. Since its inception in 2017, the programme has helped 58 companies. The Export Incentives Programme is specifically designed to support Micro Small and Medium Enterprises (MSMEs) by providing non-financial support to overcome cultural, regulatory, product safety and standards, intellectual property protection, logistical barriers and financial barriers to entry into new markets. The Market Assistance Scheme is another initiative under the ECDC Trade Promotion Programme, which promotes new market access initiatives. In the 2023/24 financial year, the ECDC proudly supported 207 businesses to attend trade exhibitions across various countries. The ECDC is committed to providing effective and personalised assistance to businesses of all sizes. Symposium The biennial Eastern Cape Export Symposium helps grow the province’s contribution to global markets, offering an excellent opportunity for industry roleplayers to come together, connect and achieve two primary objectives: • promoting exports and supply networks by providing access to markets, resources and current research, and synergising resources and • focusing on a wide range of export-related role-players that optimise export efficiency and economic growth. The export symposium features an exhibition, a plenary, workshops, match-making and networking opportunities that help businesses achieve their export goals. Participants attend to showcase their products and services, engage with potential clients and partners, and gain valuable insights from industry experts. The ECDC Trade Promotion Programme is helping to create a vibrant and competitive business environment that supports growth and innovation by providing various initiatives that equip firms with knowledge and skills to expand their market opportunities globally. Enquiries can be directed to Ms Linda Lubengu at llubengu@ecdc.co.za
