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Eastern Cape Business 2024

  • Text
  • Renewables
  • Automotive
  • Ecotourism
  • Coastline
  • Tourism
  • Entertainment
  • Film
  • Water
  • Ports
  • Oceans
  • Gbs
  • Manufacturing
  • Task
  • Programme
  • Economic
  • Province
  • Sector
  • Mandela
  • Nelson
  • Cape
The 2024 edition of Eastern Cape Business is the 17th 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 Development Corporation (ECDC) is supporting this issue of the journal, both in providing up-to-date information for editorial use and in sharing information about its activities. It will also distribute the journal through its regular channels. While the Eastern Cape has deservedly earned the title of South Africa’s wind energy province, there are other developments taking place in East London, the Coega SEZ and near Humansdorp that promise to give new meaning to new energy. Vanadium batteries, green ammonia and green hydrogen are among the aspects that form part of the Special Feature on energy that appears in this journal. The centenary of the massively important automotive industry is celebrated with reference to Ford Motor Company’s start in the “Auto City” of Port Elizabeth, as it was known, in 1924. The province’s two Special Economic Zones are attracting investors and exports are on an upward trajectory, which will be helped by upgrades of the Eastern Cape’s three ports. Overviews are provided on the other key economic sectors of the province and the potential of the oceans economy and the prospects of oil and gas for this coastal province are examined. The major business chambers in the province have made contributions to the journal and the newest chamber, the Maritime Business Chamber, which has its headquarters a short distance up the hill from the Port of Gqeberha, makes its second appearance in the journal.

PHOTO: Volkswagen Africa

PHOTO: Volkswagen Africa 2022/23 Auto Engagements – Outcomes Performance highlights Successful Auto Franchise Expo and Aftermarket Service 3-4 October 2022 Auto Sector Aftermarket Programme (R12-million over three years) Automotive Supplier B2B Indaba 17 October 2022 Component Development Supplier Fund EV Roundtable Indaba 19 February 2023 Public electric vehicle charging stations (R7-million) EV skills training with OEMs (R4-million) Skills development efforts Auto Engineering Skills Indaba and Career Expo 2022 Objectives: • Addressing SAAM 2035 Pillar 6: “Industry Technology and Associated Skills Development” • Establishing a platform for discussions and solutions to enhance engineering skills in the Eastern Cape • Fostering a productive partnership between industry and higher education institutions Outcomes: • Formulate a comprehensive, province-wide five-year master plan to foster engineering and automotive management skills across all tertiary institutions, aligned with SAAM 2035’s Pillar 6 • Generating enthusiasm for automotive engineering and entrepreneurship among young learners and professionals in the region • Implementation of incubation of learners in e-mobility: 33 • Annual performance plan targets attained: 85% • Quality certification retained: ISO9001 • Aftermarket SMMEs supported: 10 • Number of employees impacted via worldclass manufacturing cost improvements at contracted suppliers: 4 170 • Skilled employees trained towards worldclass manufacturing: 813 • Bursaries awarded for digital skills in engineering: 42 • Consecutive unqualified audit: 19 • Fraud and ethics issues reported: 0 EASTERN CAPE BUSINESS 2024 22

eNtsa’s newly launched Engagement and Innovation facility An Engagement and Innovation facility has been launched. The unit hosts advanced testing equipment. The new facility is located at Mandela University’s Ocean Sciences Campus and the advanced testing equipment allows for environmental testing and includes corrosion testing chambers, a collaborative robot testbed, 3D scanning and the capacity to host new expansions to support future industry needs. One special piece of equipment is the highvoltage training system, pictured below. This system emulates the operation of an electric vehicle, mirroring its functionality. It was acquired towards the end of 2023. It is the only machine of its kind in the Southern Africa region and was funded by the AIDC-EC. The high-voltage training system is an advanced piece of equipment The main reason for purchasing this machine is to align with the forthcoming electric vehicle transition in the province. The uYilo eMobility Programme located at Nelson Mandela University will use this system to deliver comprehensive training to various stakeholders in e-mobility. These stakeholders encompass students, lecturers (both in tertiary institutions and TVET colleges) and industry professionals. FUTURE AIDC-EC WORK The AIDC-EC and the Eastern Cape Government, through the involvement of both the Premier and MEC Mvoko, has done a huge amount of lobbying with the relevant national departments in connection with the anticipated White Paper and provincial support for the automotive industry in the EV era. The Eastern Cape’s most important issues relate to retaining existing investors such as OEMs and component suppliers during this transition phase and attracting new investors into the province. AIDC-EC current projects: • On behalf of the Provincial Government, investing in 13 EV charging stations around the province to augment industry efforts. • In partnership with Mercedes-Benz SA Learning Academy, a project to train youth in high voltage/ battery safety: 48 apprentices. • In partnership with the Nelson Mandela University uYilo programme, a project to enhance its EV capacity-building programmes. Africa’s economic boom, automotive opportunity Africa is home to six of the world’s fastest-growing economies, with consumer spending rising by 10% annually and projected to have the largest global workforce by 2035. The African Continental Free Trade Area (AfCFTA) will create a single integrated market encompassing a population of over 1.3-billion and a combined GDP of .4-trillion. Forecasts predict that new light vehicle sales in Africa will reach 1.8-million units in 2027, double the volume of 2019. By developing regional value chains, vehicle sales across Africa could reach five-million units annually. (Source: Afreximbank) African vehicle production hubs are in Algeria, Morocco, Nigeria, Ghana, Kenya, Tunisia, Uganda and South Africa. African vehicle production increased by 13% in 2022, with South Africa as the leading vehicle producer with an increase of 11.8%, with 555 889 units, exceeding the global year-on-year increase in global vehicle production of 6.0%. Africa’s automotive market (excluding South Africa) currently represents only 0.5% (561 100 units) of the global market. South Africa contributes 0.6% to global automotive production. Over the medium term, the African automotive market is expected to grow rapidly due to supportive government incentives and increasing urbanisation. Mordor Intelligence predicts that the African automotive market will grow from 1 325 890 units in 2023 to 1 777 690 by 2028, at a CAGR of 6.04%. Mordor valued the industry at .4-billion in 2021 and projects it will reach -billion by 2027. ■ PHOTO: Ford Motor Company

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