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 Development
OVERVIEW Development finance and SMME support Recyling is bringing employment to Bedford. The small EasternCape town of Bedford is the site of a remarkable collaboration between community organisations, a large telecommunications group and specialist e-waste recycling company. The Thembani Eagle Hout Integrated Project recycles redundant optic cable, an activity that is both labour intensive and environmentally friendly. Thembani supplies material as a subcontractor to Gauteng-based Sindawonye Granulators under the auspices of Telkom. Long-lasting plastic droppers (or fence posts) were created from the stripped cable. The e-waste project has led to another project in which sawdust created from the operations of furniture-makers Eagle Hout is used to make compost for organic vegetable gardening and a township garden route. The town is renowned for its annual Bedford Country Gardens Festival so there is a ready market for compost. The Thembani NGO was granted a waste management licence by the EasternCape Department of Economic Development, Environmental Affairs and Tourism. Income from the recycling project supports the Thembani Special Needs Day Care Centre. The Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) is working with the EasternCape Development Corporation (ECDC) to increase the support of SMMEs. This is done by helping SMMEs gain access to finance and markets, as well as ensuring that provincial government contracts are accessible to small businesses. Provincial government departments are encouraged to buy from SMMEs. Three of the ECDC’s four business units are devoted to small business: Rural, Enterprise Finance and Business Support; Investment Management, Trade and Investment Promotion; and Economic Development Coordination and Sector Support. The ECDC has several financial and non-financial products tailored to SMMEs through various programmes offered by these business units. Export Help Desks have been established to support small business in the Nelson Mandela Bay and Buffalo City Metropolitan Municipalities. The Small Enterprise Development Agency is an agency of the National Department of Small Business Development (DSBD) which gives non-financial support to entrepreneurs through training, ONLINE RESOURCES EasternCape Development Corporation: www.ecdc.co.za EasternCape Rural Development Agency: www.ecrda.co.za SECTOR INSIGHT Volkswagen South Africa trains and mentors suppliers. marketing and assistance in the writing of business plans. The Seda Technology Programme (Stp) helps potential businesses become trading entities. The Seda Incubation Unit supports 14 incubators in the province to the value of R29.8-million. Work is underway to refurbish several state-owned industrial parks. Areas like the Dimbaza Industrial Park assist SMMEs with affordable space and the programme has so far created 379 jobs and involved 71 local SMMEs. Volkswagen South Africa (VWSA) has a project called Ntinga (“to soar” in Xhosa) whereby suppliers receive training and are mentored for 18 months. As part of its Enterprise Development programme, the Wild Coast Sun runs an Academy where SMME business courses are offered. The resort aims to achieve 90% procurement of all goods and services from BBBEE level 1 suppliers within five years. ■ EASTERN CAPE BUSINESS 2024 52 PHOTO: Freepik
Banking and financial services Banks are supporting sustainability. Banks active in the EasternCape are participating in local economies beyond extending loans and taking deposits. Nedbank’s provision of an R800-million borrowing base facility to the Humansdorp Cooperative, for example, reaches 1 300 farmers who produce more than 30% of South Africa’s dairy requirements. In addition, the WWF Nedbank Green Trust, funded by Nedbank, has been a strong supporter of FoodForward SA, the largest food redistribution non-profit organisation in the country, pictured. More than 600 farmers donate food which is distributed through 2 750 organisations that reach 985 000 beneficiaries. Agricultural finance is an important factor in the EasternCape. Production loans, vehicle financing and revolving credit plans all play a big role in keeping farmers and agro-processors in business. Nedbank’s coverage of the EasternCape is significantly enhanced by its partnership with Boxer, a supermarket chain that is part of the Pick n Pay group. There are more than 100 Nedbank kiosks in Boxer stores across South Africa, the result of a relationship that began in 2008. A much newer entrant to the South African banking scene, TymeBank, has gone beyond the idea of locating kiosks in supermarkets with the signing of a deal with TFG, a retail group with 34 brands and 30-million customers. Brands operating in what used to be known as the Foschini Group include Markhams, Totalsports, Jet ONLINE RESOURCES Auditor-General of South Africa: www.agsa.co.za Financial Sector Conduct Authority: www.fsca.co.za South African Institute for Chartered Accountants: www.saica.co.za SECTOR INSIGHT Shoppers can bank at TFG stores. and Dial a Bed, all of which are well represented in the EasternCape. In the short term, TymeBank will have access to 600 TFG kiosks, taking the bank’s total in South Africa to 1 450. Absa Bank, which already has a strong presence in the agricultural market in South Africa, has bought shares in an e-trading platform. Khula! has three platforms that allow farmers and distributors to connect with exports and retail and wholesale buyers. More than 5 000 products are available on the Input Marketplace app. Absa has previously supported Khula! through its Enterprise Development division and has worked with the app on standardising payment options. African Bank, with an eye on listing on the JSE, completed its purchase of Ubank in 2022. Two new licences for mutual banking have been approved nationally, despite the collapse of VBS, a Limpopo-based mutual bank. The nature of the South African market lends itself to mutual banking. Both the Young Women in Business Network (YWBN) and Bank Zero will use the mutual model. ■ The sector in numbers GDP contribution 19.2% Employed 141 000 OVERVIEW PHOTO: FoodForward SA 53 EASTERN CAPE BUSINESS 2024
