Eastern Cape Business 2024

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.

OVERVIEW Manufacturing:

OVERVIEW Manufacturing: general SEZs are the focus of manufacturing investment. The East London Industrial Development Zone (ELIDZ) exported products worth more than R3-billion in 2023. In the same period, the Coega Special Economic Zone attracted a variety of investments from manufacturing. At the Coega SEZ, MEC Commercial Trailers committed R370-million to a manufacturing facility for heavy-duty commercial trailers in Q1 2023 while Atlantic Glass, a fabricator of architectural aluminium products, spent R13-million. In logistics, a vital supporting component for all manufacturing sectors, Romark Logistics invested R2.2-million. The province’s industrial parks are the focus of support programmes by the Provincial Government. Since 2019, some R495-million has been invested in infrastructure upgrades at Dimbaza, Fort Jackon, Vulindlela, Butterworth and Komani. More than 2 000 people are employed across the parks and investors such as the Chemin Chemical Technology Incubator, based in Fort Jackson, further support the development of entrepreneurs. The Butterworth park is focussed on after-market automotive initiatives and both King Hintsa and Lovedale TVET Colleges will use the industrial parks for training and development of practical skills for students. Montego Pet Nutrition, Graaff-Reinet’s biggest private employer, has been investing in both expanded capacity and in power generation, with the installation of an array of solar panels. More than 200 staff members work in the Karoo town’s factory. 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 Gqeberha and Gately Township, East London. Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Gqeberha. East London hosts Johnson & Johnson’s finance, operations and research and development divisions. Aspen Pharmacare’s East London and Gqeberha manufacturing facilities make a wide variety of product types including steriles, oral solid dose, liquids, semi-solids and active pharmaceutical ingredients. ONLINE RESOURCES Coega Development Corporation: www.coega.co.za Eastern Cape Development Corporation: www.ecdc.co.za East London Industrial Development Zone: www.elidz.co.za EASTERN CAPE BUSINESS 2024 40 one investor: Metals sector: Agroprocessing: 11 investors: a SECTOR INSIGHT Five industrial parks have been upgraded. Investments into the Coega SEZ include: R150-million Chemical sector: 12 investors,combined value of R631.2-million R1.3-billion R5.3-billion The Eastern Cape’s Provincial Investment Conference is proving an important event on the calendar. Many of the investors who were part of the pledge of a total of R46-billion at the 2022 conference were in the manufacturing sector. The investment of Aqora Lithium Batteries points to a trend that will grow in the b years to come. Among other manufacturers c making investment pledges were Benteler, South African Breweries, Mhlobiso ipsum Concrete and Toyota Material Handling. SAB’s Ibhayi Brewery has dolor allocated R510-million for plant expansion. ■ d R18.1-million Automotive: 12 investors: R600-million Source: Coega SEZ, 31 March 2023 BPO: two investors: Logistics: 16 investors:

Global Business Services Employment is picking up as the sector grows. OVERVIEW The Coega Business Process Outsourcing (BPO) Park, SECTOR INSIGHT located in Zone 4 of the Coega Special Economic The EC Africa2Cable landed in 2023. Zone (SEZ), has so far created a total of 1 529 jobs. Uninterrupted power supply to the park is among the reasons that it has attracted a combined investment value of Coega BPO Park employment R18.1-million. South Africa’s GBS sector, which includes BPO and Shared 1 529 employees Services, is growing twice as fast as the world’s and three times faster than India and the Philippines. The Eastern Cape has four universities and eight TVET colleges, high-speed connectivity and an attractive lifestyle. Other factors in favour 1 444 permanent of the area are the relatively neutral accents, good financial and telecommunications infrastructure and the time zone being the same or close to Europe’s. Better connectivity as promised by the landing of the EC 1 070 youth Africa2Cable could be the platform for further investments and job opportunities. Callzilla, a call centre servicing the US market, has chosen to a dedicated GBS facility, a scalable locate its latest office in East London. data centre and a 1 000-seat business Citing reports that South Africa is ranked third in the world continuity and ICT training facility. among English-speaking destinations, Callzilla notes that 90% The ELIDZ currently operates two data of services delivered from South Africa are related to customer centres with ISO27001 accreditation and experience (CX) and contact centre services. The investment in East has obtained approval for the concept London has created happy customers in the US, according to Callzilla. development of an 800-seater GBS Park The GBS Incentive Scheme of the Eastern Cape Development in conjunction with an interested party. Corporation (ECDC) provides investment-funding support for A Future Skills Platform programme financially viable propositions that create youth employment passed on digital skills to about 1 000 people opportunities. There are three tiers of support available, early in 2023, courtesy of the Eastern Cape depending on the size of the investment and how many jobs branch of Business Processing enabling and opportunities for local SMMEs are created. For a R50-million South Africa (BPESA), Evolution, Coega SEZ project over three years, a maximum sum of R400 000 is available and Volkswagen SA. Absa sponsored a while a contract between R201-million and R500-million might further 70 later in the year. The programme attract up to R1.2-million in support. has been running since October 2022 under The East London Industrial Development Zone (ELIDZ) has the auspices of the UNDP (United Nations an ICT strategy that focusses on an ICT Hub which will include Development Programme). ■ ONLINE RESOURCES Business Process enabling South Africa (BPeSA): www.bpesa.org.za Coega SEZ: www.coega.co.za Eastern Cape Development Corporation: www.ecdc.co.za East London Industrial Development Zone: www.elidz.co.za 41 EASTERN CAPE BUSINESS 2024