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Western Cape Business 2019 edition

  • Text
  • Africa
  • Manufacturing
  • Trade
  • Winelands
  • Africa
  • Harbours
  • Ports
  • Greentech
  • Maritime
  • Biomass
  • Export
  • Generation
  • Energy
  • Investment
  • Business
  • Town
  • Cape
  • Tourism
  • Economic
  • Electrical
A unique guide to business, investment and tourism in the Western Cape. The 2019 edition of Western Cape Business is the 12th 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 Province. The Western Cape has varied investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features in this journal on the big impact which the relatively new maritime sector is having, together with tourism and events and renewable energy. The potential for independent generation is an exciting new avenue for local authorities. Western Cape Business contains interviews and messages from business leaders from Accelerate Cape Town, the Cape Chamber of Commerce and the Western Cape Business Opportunities Forum. Tim Harris, the CEO of Wesgro, outlines the successful investment attraction strategies that his organisation has been adopting. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.westerncapebusiness.co.za. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to at https://www.globalafricanetwork.com/subscribe/, 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 their

SPECIAL FEATURE their part in attracting visitors and new partners. Underpinning the economic planning of the Western Cape Provincial Government is a commitment to getting four major things right. Called “enablers”, these are issues that must be looked after for other economic plans to work. The four are water, energy, broadband and skills development. On this sound footing, various agencies of the provincial government and the municipalities of the province have developed a range of plans designed to attract investors, and they are proving attractive. The Western Cape is also the country’s bestperforming province in terms of audits. Of 55 provincial departments, municipalities and public entities for the 2016/17 year, 44 received clean audits. This kind of performance helps to boost investor confidence. Another thing that has been attracting the attention of the world is the astonishing display of resilience by the citizens of Cape Town in getting through a long-term drought. As the dreaded “Day Zero” approached, news items started appearing on television screens from Zurich to Zagreb about the impending calamity. The fact that Cape Town survived was applauded but there were serious conservation issues that arose, not least because people in other parts of world quickly realised that what was happening in Cape Town could easily be replicated anywhere. The world needed to confront a “new normal”. Greater Cape Town’s ability to reduce water usage by more than half was nothing short of remarkable. “Resilience” has become a new buzzword and a selling point for the city and the province. A tourism campaign #ItsAllStillHere mixes enticing pictures of surfers cutting through beautiful waves with reminders of how Cape Town had found a way to come through the extreme dry spell. Within the province, economic confidence is improving. Alan Winde, then MEC for Economic Development and Tourism, noted in his budget speech in March 2018 that business confidence had reached the 50-point mark, the highest level since 2016 (Bureau for Economic Research). Investment and trade Between 2014 and 2018, the Western Cape received more than R7.2-billion in investments and trade deals to the value of R11.1-billion were closed (SOPA). The provincial government’s African Expansion Programme has secured R691-million in deals so far. The Western Cape has had an Invest SA One Stop Shop since September 2017. The UK’s International Trade Secretary, Dr Liam Fox, was the first international minister to visit the facility, which was interesting in that Britain’s position in relation to trade with the world is about to undergo a massive change because of its withdrawal from the European Union. In the period 1997-2017, fully a quarter of foreign direct investment (FDI) into the Western Cape came from the UK. Cape Town is the only African city on the FDI ranking chart of fDi Intelligence, a division of the Financial Times. The list ranks which cities have the best foreign direct investment strategies. Cape Town’s Economic Growth Strategy includes the creation of a unit (Invest Cape Town) to promote investment, upgrading infrastructure, pursuing broadband rollout, improving energy supply and improving direct air links between the city and the world. Many of these strategies are pursued with partners. During Dr Fox’s visit, he met with companies in sectors that have traded with the UK for decades such as fruit, wine and tourism, but he also was also exposed to new areas in which the Western Cape is growing its expertise, creative, tech and service industries. Since Britain’s vote to the leave the EU, trade delegations into South Africa from countries like France and Italy have increased. The Invest SA One Stop Shop Western Cape is an intergovernmental facility operated by Wesgro, in conjunction with the Department of Trade and Industry (dti) and the Western Cape Provincial Government, that aims to provide strategic guidance, and reduce regulatory inefficiencies and red tape. DEDAT has also established a Red Tape Reduction Unit to smooth the path of investors and businesses wanting to expand. Wesgro is the Western Cape’s official tourism, trade and investment promotion agency. In its WESTERN CAPE BUSINESS 2019 16

SPECIAL FEATURE annual review for 2017/18, Wesgro reported that the Western Cape will receive at least R10.2-billion into the regional economy over five years. Wesgro’s units reported some highlights: • International Trade Promotion Unit: 53 business agreements valued at R2.8-billion over five years. • Investment Promotion Unit: Investments valued at R2.2-billion, including a major investment from manufacturer Pegas Nonwovens. • Agribusiness Investment Unit: Six investments worth R756-million. Pizza Hut has invested R300-million. • Film and Media Promotion Unit: In 2017/18, productions worth R1.9-billion were secured. • Cape Town and Western Cape Convention Bureau: 33 bids with a projected economic impact of R453-million were secured. • Cape Town Air Access: In three years, an additional 750 000 inbound seats have been secured on direct flights to Cape Town. This is a partnership with the City of Cape Town, the Western Cape Provincial Government, South African Tourism, Cape Town Tourism, Airports Company South Africa and private companies. Wesgro’s efforts have not been limited to the Cape Metropole. Investor conferences have been held in the Cape Winelands, the West Coast and the Garden Route to highlight the opportunities of each region. At the Garden Route conference, Wesgro CEO Tim Harris noted that between 2006 and 2015 the region’s economy grew at an average rate of 4.8% and exports grew by 45%. The hotel and golf courses on the estate at Fancourt, pictured on the first page of this article, are among the top attractions of George and the Garden Route. Regional economy Finance, business services and real estate combined contribute 28% to the gross domestic product (GDP) of the Western Cape. The financial services and insurance sector are key components of the 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 SOME EXPORT FACTS Malaysia mostly imports apples, pears and quinces. In 2015, these fruits alone earned .1-million, citrus fruit .5-million and grapes .7-million. Singapore’s top product from the Western Cape in 2016 was refined petroleum oils and oils obtained from bituminous minerals at a value of .3-million, followed by apples, pears and quinces at .1-million. A trade mission involving 15 Western Cape companies to Ethiopia in 2017 secured R200-million in export deals. Ethiopian Airlines has increased its flights to Cape Town to 10 times per week. GDP on its own, the sector is responsible for the fruit and vegetables that contribute to agriprocessing 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 17 WESTERN CAPE BUSINESS 2019

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