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Western Cape Business 2018 edition

  • Text
  • Nedbank
  • Sectors
  • Growth
  • Finance
  • Government
  • Africa
  • Management
  • Infrastructure
  • Transport
  • Opportunities
  • Energy
  • Development
  • Wesgro
  • Vodacom
  • Investment
  • Cape
  • Business
  • Tourism
  • Economic
  • Municipality
The 2018 edition of Western Cape Business is the 11th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the growth of tourism (spurred by an innovative programme designed to create more direct flights to Cape Town), medical technology as a growth sector and the pursuit of excellence that drives the Cape Winemakers Guild. The journal contains a message from Alan Winde, Minister of Economic Opportunities, and contributions from significant business leaders from Accelerate Cape Town, the Cape Chamber of Commerce and the Western Cape Business Opportunities Forum. An interview with Tim Harris, Wesgro’s CEO, reveals some of the recipe for the province’s economic success. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.


SPECIAL FEATURE is the lead agent in the creation of SEZs, which form part of the national Industrial Policy Action Plan (IPAP). economy. Many of South Africa’s biggest companies have their headquarters in Cape Town. Asset management and venture capital companies have been growing steadily. Although agriculture only accounts for 4.3% of GDP on its own, the sector is responsible for the fruit and vegetables that contribute to agri-processing which accounts for nearly 40% of the province’s export basket. (Agri-processing accounts for 8.1% of GDP.) Citrus, wine, apples and pears, grapes, fruit juice, fruit and nuts and tobacco all appear in the top 10 of the province’s exports. Seventy percent of South Africa’s beverage exports come from the Western Cape. Grapes and wine sales to Europe remain very strong but the Chinese market is becoming increasingly important. Refined petroleum was the single biggest earner for the Western Cape in 2015, with exports valued at R18.2-billion (Wesgro). The province has a diverse manufacturing sector ranging from textiles, clothing, footwear and furniture to coke and refined petroleum products. Excluding agri-processing, other manufacturing makes up 6.9% of GDP. Special Economic Zones The Western Cape has two zones designated as Special Economic Zones (SEZs) although the Atlantis SEZ is still awaiting official proclamation. The National Department of Trade and Industry (dti) Atlantis The suburb of Atlantis was one of apartheid’s bad experiments that left residents stranded far north of the metropolis. The planned Special Economic Zone with a focus on green technology has started changing that reality. Several important investments have been made into the area. Spanish wind tower manufacturer Gestamp Renewable Industries (GRI), has added to its initial investment of R300-million. Others include Resolux (R25-million) which makes internal components of wind turbines; Kaytech (a geotextiles firm) has recently expanded (R130-million) as has Skyward Windows (double glazing, R50-million). Altogether, there has been about R680- million invested in Atlantis in the green technology field. Chinese giant Hisense established a high-tech factory in Atlantis in 2013, and is keen to expand its investment down the value chain, especially using green technology to make more efficient fridges and television sets. Saldanha Bay The Saldanha Bay Industrial Development Zone has formally been in existence since 2013 and it has ambitious plans to tap further into the burgeoning oil rig maintenance and repair business. About 130 rigs round the Cape every year, and South Africa attracts only a tiny fraction of them to its ports. The SBIDZ dovetails neatly with two broader plans: Operation Phakisa (the national government’s strategy to unlock value from the Oceans Economy) and Project Khulisa, the targeted growth strategy of the Western Cape Provincial Government which includes servicing and repairing of oil rigs as a priority. Priority sectors at Saldanha are upstream Oil and Gas, and Marine Engineering and Services, and 32 companies have already signed up as investors in the IDZ. Three major projects are under way or in the planning WESTERN CAPE BUSINESS 2018 18

SPECIAL FEATURE stage, overseen by national government, the Southern African Oil and Gas Alliance and SBIDZ-LC: an Offshore Supply Base (to cater for ships and rigs); Berth 205 (specialised Rig and Vessel Repair Quay); and Mossgas Jetty (equipment and vessel-servicing facility and floating dock). REGIONS The province is divided into one metropolitan municipality and five district municipalities: Cape Town Metropolitan Municipality Cape Town is a culturally diverse and dynamic metropolis set among beautiful beaches and winelands with the spectacular Table Mountain as a backdrop. The city is the engine of the regional economy, with most of the Western Cape’s heavy and medium industry located within the metropolitan area of Cape Town. The largest sector in the city’s economy is the financial and business services industry. The opening of a branch of the JSE in the city is a sign that this sector continues to grow, as is the decision of more asset managers to move their headquarters to Cape Town. The tourism, retail, construction and property sectors have been doing well for many years. The city has a population of 3.2-million and contributes 76% of the regional gross domestic product. Cape Town is home to the nation’s parliament and is the site of two World Heritage Sites: the Cape Floral Region (including Table Mountain) and Robben Island. The Cape comprises only half a percent of the landmass of Africa yet the Cape Floral Region accounts for nearly 20% of the flora of the continent. Robben Island was the site of the incarceration of the most prominent political prisoners during the apartheid era, including Nelson Mandela. His release was celebrated on the Grand Parade outside the old city hall, which has recently been renovated. Cape Town has been welcoming the world in increasing numbers since Mandela’s release in 1990, and it is now regarded as one of the world’s great tourist destinations, regularly ranking highly on “must visit” lists. The Air Access programme detailed elsewhere in this journal is ensuring that ever-increasing numbers of tourists from around the world can fly to Cape Brandvlei Britstown Garies De Aar Kliprand R 27 Loeriesfontein Carnarvon N10 R 63 N12 Hanover N7 R63 R63 Nieuwoudtville Victoria West R 63 Williston N1 Loxton Richmond R 27 R27 Calvinia R27 Vanrhynsdorp R63 Vredendal Northern Cape R27 Fraserburg Three Sisters R 63 Graaff-Reinet Lambert's Bay Clanwilliam Beaufort West Aberdeen R27 Sutherland Cederberg R 61 N12 N9 St Helena Bay Citrusdal Prince Velddrif Leeu-Gamka Paternoster Albert N1 Road Eastern Cape Vredenburg Piketberg R44 R79 Saldanha R45 N7 Klipplaat Western Cape Saldanha Bay Moorreesburg LangebaanR27 R45 R 44Tulbagh Laingsburg Prince Albert Willowmore Riebeek West Matjiesfontein R 46 Darling Ceres Touwsrivier Dassen Island Calitzdorp R62 N1 Ladismith R43 Malmesbury De Rust R44 Uniondale R45 Wellington Worcester Oudtshoorn R 62 Paarl R62 N12 Melkbosstrand Rawsonville Montagu Joubertina N9 R60 Robben Island (World Heritage Site) R43 Table Bay Franschhoek Robertson Ashton R62 Barrydale Kareedouw Durbanville George SedgefieldKnysna N2 CAPE TOWN Villiersdorp Swellendam Stormsrivier Stellenbosch Riversdale Somerset Genadendal Herolds Plettenberg Bay Fish Hoek West Grabouw Heidelberg Bay N2 Riviersonderend N2 Mossel Bay Cape St Francis Gordon's Bay Vleesbaai Simon's Town Caledon False R44 Cape Bay Kleinmond Hermanus Stillbaai INDIAN OCEAN Point Bredasdorp Cape St Sebastian R 43 Infanta Walker Bay Bay 0 100 km Gansbaai Arniston Struisbaai 0 100 miles Struisbaai Quoin Point Cape Agulhas WESTERN CAPE PROVINCE Groen ATLANTIC OCEAN N Motorway Main Road Railway Sout Tankwa Fish Breede Sak Riet Touws Buffels Dwyka Groot Gourits Gamka Leeuw Olifants Groen Sout Sout Kariega Ongers Kouga Groot Seekoei Sundays 19 WESTERN CAPE BUSINESS 2018

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