For many rural communities, the challenge of freedom of movement between areas or travel to-and-from regional economic centre is a common issue. The lack of substantial infrastructure development is often the primary reason for communities becoming isolated and young people having to migrate to urban areas in search for better opportunities.
In order to address some of these challenges within its area of influence, Anglo American’s Kumba Iron Ore Sishen Mine, has completed construction upgrades to the Klein Neira – Batlharos Road, situated in Kuruman.
The scope of work carried out on the Klein Neira – Batlharos passage included the upgrading of the road from a gravel to a double-sealed surface and installing multiple stormwater management channels along the 6.4km route. This project is part of the broader work carried out in 2022 on the greater Churchill Road, which spans over 10 km, at a cost of R44-million.
George Benjamin, Corporate Affairs and Social Performance Manager at Sishen Mine, outlines the motivation behind the upgrade: “Upgrading this road was a priority for us. We recognised how it would significantly contribute to the freedom of movement of the surrounding communities. As the proud project founder, our objective is to bring development to our communities and help them thrive. We are very pleased with how the project has turned out and the positive impact it will have on our people’s lives.”
During the construction period, a total of 54 temporary jobs were created as a result of the project. Maletsatsi Manhe, Manager: Roads and Stormwater at Ga-Segonyana Local Municipality expressed positive sentiments about the importance of the project.
He said, “The access link road upgrade was identified as a priority by the community during the February 2014/15 IDP roadshow. The main objective is to link Joe Morolong (Churchill and Batlharos) for easy access to the mines, healthcare facilities and surrounding areas. Also, the goal is to improve road conditions as stated on the Roads and Stormwater Master plan.
“Kumba Iron Ore is one of the mining houses that has supported Ga-Segonyana Local Municipality through its Social and Labour Plan over the years. Such support assists the Municipality in reaching community target requests, as the equitable share and the grants are not sufficient to cover all the needs. We are thankful to Sishen Mine for supporting and partnering with us.”
George Benjamin with the Sishen Mine Corporate Affairs team.
The Township Economies Conference and Expo is set to shine a spotlight on the substantial impact and untapped potential of South Africa’s township economy. As the backbone of local commerce, township businesses play a critical role in driving economic growth and community development.
Recent studies estimate that South Africa’s township economy is worth approximately R100-billion annually, highlighting its significant contribution to the national GDP. Townships, home to millions of South Africans, are bustling hubs of entrepreneurial activity and innovation. From informal traders and small-scale manufacturers to service providers and tech start-ups, township businesses are a vibrant and essential part of the country’s economic fabric.
Key highlights:
Economic Contribution: Township businesses contribute significantly to job creation, with millions of South Africans relying on these enterprises for their livelihoods. The informal sector alone employs around 2.5 million people.
Market Size: The purchasing power within townships is substantial, with estimates suggesting a consumer market worth billions. This presents a lucrative opportunity for businesses and investors to engage with a rapidly growing market.
Innovation and Resilience: Despite facing numerous challenges, township entrepreneurs exhibit remarkable resilience and creativity, often developing innovative solutions tailored to their local contexts.
Government and Private Sector Support: Increasingly, there is recognition of the need to support township economies through targeted policies, investment, and infrastructure development. Initiatives aimed at improving access to finance, training, and market access are gaining momentum.
“The township economy is a vital and dynamic component of South Africa’s overall economic landscape. Understanding its size and potential is crucial for driving inclusive growth and development,” said Liz Hart, Managing Director of the Township Economies Conference & Expo. “Our conference and expo aim to bring together stakeholders to discuss strategies for unlocking this potential and ensuring sustainable economic empowerment for township communities. The figures speak for themselves — South Africa’s township economy is a powerhouse of opportunity. By fostering an environment that supports these businesses, we can spur innovation, create jobs, and uplift communities.”
Turbines on hills of Roggeveld Wind Farm. Credit: Roggeveld Wind
A wide range of investments across several sectors and by public and private entities is an indication that the Northern Cape is on a growth path.
In his 2024 State of the Province Address, Premier Zamani Saul noted significant employment increases in agriculture, energy and mining and said that the province’s GDP had advanced in the five-year term of office of the provincial administration from R119-billion to R148-billion. The bulk of this growth was attributed to the mining sector, via strategic investments in renewable energy and generally good global commodity prices.
Renewable energy and mining are the two sectors that have been making highly visible and significant investments. These include the giant wind projects such as the Roggeveld Wind Farm (147MW) and the Loeriesfontein Wind Farm (140MW) and solar projects like the newly announced Mooi Plaats project near Noupoort.
The province’s vast iron-ore mines continue to produce huge quantities of material, subject only to the capacity of the rail network run by Transnet to deliver what is produced to the country’s ports. Minerals Council South Africa, the industry’s employer organisation, estimates that the opportunity cost to the minerals sector of bad transport logistics in 2022 was about R50-billion. Existing mining enterprises such as the iron-ore and manganese operations of Kumba Iron Ore and Assmang have been joined by Indian and Australian miners looking for zinc and copper, vital ingredients of the transition to a cleaner energy future. Vedanta Zinc International is investing heavily at Aggenenys (the Gamsberg project) while Copper 360 and Orion Minerals are mining between Springbok and Prieska. Afrimat has bought new Northern Cape mines as part of its expansion policy.
The other sectors where growth is easy to spot are public infrastructure, education and radio astronomy through the Square Kilometre Array (SKA) radio astronomy project. Infrastructure and education are the subject of separate articles in this journal and the SKA has for some years now been steadily building towards full capacity. It is a globally significant scientific project that is already having an impact on lives in Carnarvon, where mathematics teachers are funded and through the Sol Plaatje University where data scientist students are dreaming dreams that were unheard of just a few years ago for residents of the Northern Cape.
Astronomy is changing lives in the Northern Cape. Credit: NCTA
But economic indicators at town level are perhaps the best illustrations of growth tendencies. The revival of a precast concrete factory in De Aar is important for the region’s economic prospects, not just for the railway sleepers that Colossal Concrete is going to make there on contract, but for the potential that it holds for the province’s builders and for renewable energy contractors and manufacturers.
Similarly, the fact that home-grown hotel group Country Hotels has three properties in each of the towns of Kuruman and Pofadder points to an economy where things are happening. With ten other hotels, inns and lodges in the province and with a focus on the corporate market, the hotel group’s growing footprint counts as a good bellweather for the state of business in the Northern Cape.
Railway sleepers are again being made in De Aar. Credit: Colossal Concrete
Resilience
The Northern Cape, as a dry province that relies heavily on agriculture, has adopted a Northern Cape Climate Change Adaptation Response Strategy. This allows for a framework to tackle climate change issues. Floods, droughts and fires are becoming more frequent and more severe; planning can at least mitigate the negative outcomes to some extent.
Farmers in the Northern Cape have learnt to be resilient over the years and there are certain niche products that thrive in the mostly dry landscape. One of these, rooibos, has not only secured an internationally recognised Geographical Indication (GI), but is also enhancing its international market share. Red espresso is now a “thing” in some of the trendy capitals of the world.
Another hot beverage made in the Northern Cape could follow rooibos onto the world stage. A variety of the mesquite tree apparently has seedpods that can produce something resembling coffee without the side effects of caffeine. This is according to an article on IOL by Sarene Kloren. Because the tree is an invasive alien, it would be in everyone’s interests if mesquite coffee became popular. The Coetzee brothers of Prieska have been making MannaBrew’s Mesquite Superfood Coffee since 2020 and they are harvesting between 50 and 60 tons annually. Pods are hand sorted by up to 1 000 seasonal workers and the Coetzees are hoping the health benefits of their brew will catch on.
Credit: Raisins SA
Other support for agriculture will come in the form of infrastructure at the Upington Industrial Park, which will act as a services centre for road, rail and air transport, agriculture, agro-processing and manufacturing.
Farmers and agro-processors are increasingly drawing attention to the need for good roads for the delivery of their products to market and they will be hoping that parks like UIP will help to provide the necessary infrastructure.
One of the most important types of infrastructure in the Northern Cape is Special Economic Zones, each of which has its own focus sectors and each of which is being developed by a combination of public and private investment. At various stages of implementation and planning, the various SEZs are the Kathu Industrial Park, the Upington Industrial Park, the Namakwa Special Economic Zone in Aggeneys (intended as industrial cluster for mining and agriculture services, beneficiation and manufacturing with Vedanta Zinc International as the core tenant) and the Boegoebaai Port and Green Hydrogen Cluster.
Struandale Engine Plant. Credit: Ford Motor Company
By John Young
Ford Motor Company started making cars in what was Port Elizabeth (now Gqeberha) in 1924. That company remains a pillar of the automotive sector in a province that exports more than half the cars that South Africa makes.
The other long-time original equipment manufacturers (OEMs) are Volkswagen South Africa, Mercedes-Benz South Africa and Isuzu, which started life as General Motors in 1926, becoming the city’s second auto manufacturer. VWSA began as SAMAD in Kariega (Uitenhage) in 1949 and the first East London assembly undertaken by Mercedes-Benz South Africa started in 1954.
These marques have recently been joined by Chinese OEM FAW and the Stellantis Group, which will start assembling the Peugeot Landtrek at the Coega SEZ in 2026.
The shift to renewable energy which is happening across the world can be seen very clearly on the hills of the Eastern Cape, which has rapidly earned itself the tile of the “Wind Province”. Other forms of green power and battery storage are being actively explored, and this is the subject of a Special Feature elsewhere in this journal.
The many new wind-power plants that the province now hosts bring power, but they also bring employment and opportunities for local communities where the wind farms are sited.
Turbines on hills of Roggeveld Wind Farm. Credit: Roggeveld Wind
The province’s most recent wind-power investment will see three 110MW facilities constructed in the Kouga Local Municipality. The Impofu wind farms will supply energy to Sasol and Air Liquide in Mpumalanga. Enel Green Power and Red Cap are building the R9-billion project after a lengthy environmental and public engagement process with about 60 landowners, including the Reebok Rant Workers Trust, a dairy operation near Oyster Bay.
Andreas Brand, CEO of Mercedes-Benz South Africa, inspects the company’s rooftop solar installation. Credit: Mercedes-Benz South Africa
The automotive industry is also increasingly playing a role in the energy transition, both in terms of powering plants’ operations but also in producing electric vehicles. East London-based Mercedes-Benz South Africa (MBSA) is working to reduce its carbon footprint at its manufacturing plant. The second phase of the company’s solar PV plan will see 22 847 panels bringing the combined total up to 26 539, an array capable of providing 14.6MW. Over the course of a year, this installation should contribute about 20% of the plant’s consumption.
Volkswagen has installed 3 136 solar photovoltaic panels at its Kariega plant which will produce an estimated 2 500MWh at full capacity. In addition, Volkswagen is building a wastewater recycling facility, replacing alien plants at its premises and planting a carbon bank of nearly 5 000 spekboom cuttings. Ford’s Struandale Engine Plant has been a winner of the SJM Flex Environmental Award for excellence in environmental management with its improved production methods leading to reductions in water and electrical consumption. Other factors were rainwater harvesting and recycling of 97% of waste produced at the factory.
A R22-million investment in a solar energy plant is paying off for Montego Pet Nutrition in Graaff-Reinet. The company reported a 300-ton reduction in CO2 emissions in a single year, the equivalent of planting about 9 000 trees to offset emissions. The nine-month solar project happened soon after a R70-million expansion project which increased the factory’s overall production by 30%.
Credit: CCBSA
Another of the Eastern Cape’s biggest brands is putting a great deal of time and effort into water conservation. When the dam levels feeding the Nelson Mandela Bay Metropolitan area reached critical levels, Coca-Cola Beverages South Africa (CCBSA) mobilised a comprehensive response.
Working together with other entities, CCBSA delivered water, JoJo Tanks and water wheelers to communities suffering shortages but also offered a longer-term solution in the form of a groundwater harvesting and treatment system known as Coke Villes.
Infrastructure
The province’s two Special Economic Zones (SEZs) have been the focus of investment to prepare them to host an array of enterprises. Dedicated sections of the SEZs provide for a cluster approach, something which automotive suppliers and logistics firms have taken advantage of.
In the SOPA, Premier Mabuyane reported that the East London Industrial Development Zone (ELIDZ) exported over R3-billion worth of products in a 12-month period. In the five years to 2024, the ELIDZ signed up 24 investors with an investment value of R5.7-billion, primarily in the automotive, agro-processing and general manufacturing sectors, but he noted that renewable energy sector investment is rising fast.
Within the Coega SEZ, just north of the city of Gqeberha, the Port of Ngqura was primarily designed as a container terminal but additional capabilities are being added. The Coega Development Corporation (CDC) has been tasked with finding a developer for a new Liquid Bulk Terminal and for a new manganese terminal. Transnet has agreed that the tank farm and manganese storage facility at the Port of Gqeberha is to be moved to the Port of Ngqura.
The provincial government has identified six “mega” infrastructure projects on which to focus: N2 Wild Coast Highway, Mzimvubu Water Project, Eastern Cape Transnet initiatives, N2 Nodal Development, undersea cables and the Wild Coast SEZ.
In addition, Premier Mabuyane revealed in the 2024 SOPA what he expects will be the priorities of the next provincial administration, the seventh since democracy was ushered in in 1994. The Eastern Cape is one of the provinces in South Africa where the African National Congress (ANC) is most confident of returning as the governing party.
The Premier listed the priorities as follows: biofuels, cannabis, oceans economy, Bhisho precinct, Bulembu airport for cargo and liquified natural gas.
With three ports and two large airports, the Eastern Cape is well suited to logistics activity.
Port of East London. Credit: TNPA
The massive Msikaba Bridge under construction in the OR Tambo District is on track for completion in 2025. This will transform travel in what used to be the Transkei and open up the Wild Coast for tourism. Work on the Mtentu Bridge in the Alfred Nzo District resumed in December 2023 and is scheduled for completion in 2027. Seven of the roads that lead to these bridges will be upgraded from gravel to tar as part of the broader project.
Both Vodacom and MTN are continuing to invest in telecommunications infrastructure. A project to connect 23 rural villages was completed by Vodacom at a cost of R34-million; a further R71-million will be spent on connecting another 86 villages. MTN allocated R600-million to protect its network and has rolled out an extensive programme of battery and generator support.
A Samsung Innovation Campus has been initiated at Walter Sisulu University. To be run by the Centre for Entrepreneurship Rapid Incubators (CFERI), the campus programme aims to transfer IT skills and help graduates start their own businesses. There will be courses on coding, programming, artificial intelligence and the Internet of Things.
Tourism
Tourism is one of the sectors that was hit hardest by Covid-19. Although times were tough for the “Adventure Province”, there was some good news out of a sector that still retains enormous potential for growth and has been identified by the Eastern Cape Development Corporation (ECDC) as a priority sector.
The ECDC invested R2-million in attracting the TV series Survivor South Africa: Immunity Island and that investment has been shown to pay off both in monetary terms and in showcasing the spectacular Wild Coast to TV audiences. The immediate economic impact of the filming was estimated at R10-million.
The north-eastern segment of the province is the site of a possible future national park, which would bring to five the number of national parks in the province, joining the Addo Elephant, the Camdeboo, Garden Route and Mountain Zebra National Parks. These parks not only look after animals but also protect quite distinct types of vegetation.
Credit: Sibuya Rhino Foundation
If the proposed Grassveld National Park is established high in the mountains above the village of Rhodes and near to the border with Lesotho, it would be South Africa’s 20th. The conservation goal behind the park is to preserve grasslands through agreements with landowners and farmers who would continue to farm the land responsibly. The land of the Batlokoa community is near the famous Naude’s Neck Pass.
As a source of clean water, the area is a hugely important resource and worth preserving for that reason too. The water that falls away from the highest point of this proposed park is described by Andrew Weiss of the WWF as “heading towards the Mzimvubu River and the Indian Ocean” while another small stream at the top of the mountain is destined to join the Orange River in the west.
Weiss also described rock paintings of eland and reedbuck “with the unusual addition of dogs and a fat-tailed sheep”. The Grassveld National Park project of the South African National Botanical Institute (SANBI) has recorded 1 131 species of plant life on the iNaturalist app.
In addition to national parks, the Eastern Cape has 15 provincial nature reserves and a multitude of luxury private game reserves.
The events sector was just about to restart before the Omicron variant put a stop to all travel. This is something the Eastern Cape does well, with the National Arts Festival and a variety of sporting events such as Iron Man being hosted by the province.
Two big new golf events have put the spotlight on the province’s tourism offering, the SDC Championship at St Francis Links (jointly hosted by South Africa’s Sunshine Tour with the DP World Tour) and the Nelson Mandela Bay Championship, an official DP World Challenge Tour event.
Kumba’s iron-ore operations are supporting science education. Credit: SIOC-Community Development Trust
In 2023, Sol Plaatje University in Kimberley celebrated its 10th anniversary. The first student body was all of 124, but enrolment is now over 5 000 as the institution’s offering and reputation has also grown.
Sol Plaatje University (SPU) is named after the great intellectual, writer and advocate for equal rights. One of Plaatje’s books, Native life in South Africa, tells the story in harrowing detail of how black South Africans were thrown off their land as a consequence of the 1913 Land Act. He was also a novelist, a translator and one of the founding members and first Secretary-General of the South African Native National Congress (SANNC), which became the ANC.
With a brand-new university in the province, it was fitting that the Premier elected to lead the province after the elections of 2019 should be Dr Zamani Saul. Already the holder of a PhD in law, two Master’s degrees and a BProc, Dr Saul is studying towards a second PhD. On his watch, education has been a key priority.
Dr Zamani Saul, Premier of the Northern Cape. Credit: Office of the Premier, NC
In his final State of the Province Address in 2024, Dr Saul reported that construction of 19 new schools began during his term of office, eight of which have been completed. R274-million was spent on refurbishment, upgrades and maintenance and 74 schools received sanitation upgrades. Significantly, the Premier stated, “The proportion of persons aged 5-24 who attended an education institution increased from 64.2% to 70.3% in 2022 in the Northern Cape.”
Dr Saul also announced a skills-development and bursary programme to the value of R210-million in partnership with MERSETA. Since 2019, the provincial government’s partnerships with SETAs have benefitted 14 800 young people.
Speaking in the context of bursaries, Dr Saul says, “At the heart of a modern, growing and successful province is education. We won’t be able to modernise the province if we do not place emphasis on the education of our children.”
Steps have been taken to modernise the sector, with tablets loaded with Edu-Kite software being distributed to Grade 12 students in 2023, a Coding and Robotics pilot to be rolled out at 173 schools and another pilot that will see five classrooms around the province converted into cyber labs with modern equipment.
Corporate social investment (CSI) programmes of big solar park and wind farm companies are improving the conditions of educational facilities and giving opportunities where none existed before.
An ECD Centre is supported by Noupoort Wind Farm. Credit: Noupoort Wind Farm
University
At the celebrations surrounding SPU’s 10th anniversary, Kumba Iron Ore and De Beers Group, two of the biggest mining companies active in the province, donated R20-million and R5-million towards the university’s Lesedi La Afrika Fund will support scholarships and social impact projects. The fund has set a target of R100-million.
Qondakele Sompondo, Director for Institutional Advancement at SPU, said the funding would make a significant impact on the lives of the youth of the Northern Cape.
In 2024, representatives from Kolomela Mine, one of Kumba’s properties, were investigating the possibility of SPU setting up a Learning Centre in the small town of Postmasburg. In addition to catering to existing SPU students, the centre will allow residents to attend SPU short-course offerings and participate in SPU’s online Talent Pipeline Programme.
SPU has a staff complement where 60% of its academics have PhDs. The academic programme is housed in four schools: Education; Humanities; Natural and Applied Sciences; Economic and Management Sciences. Bachelor’s degrees are offered in education, science, science in data, ICT, heritage studies, commerce and arts. A diploma in retail business management (three years) and a one-year higher certificate in heritage studies completes the prospectus.
The architecture at Sol Plaatje University is striking. Credit: RV
Skills and TVET colleges
The Northern Cape Urban TVET College comprises three campuses in Kimberley: City Campus, Moremogolo Campus and Phatsimang Campus where teacher training is done. At City Campus, students have access to three departments: business studies, engineering studies and a business unit that organises short courses in partnership with various public and private partners.
The Northern Cape Rural TVET College has campuses at Kathu, Upington, De Aar, Kuruman and Namakwaland. These colleges offer students courses in finance, economics and accounting; engineering; IT and computer science; management; hospitality; marketing; and tourism. NCR TVET College has a variety of part-time programmes and short skills programmes delivered in the form of learnerships, internships or apprenticeships. This enables adults and employed people to study after hours or to do enrichment courses.
The Provincial Government of the Northern Cape runs several skills programmes, including the Artisan Construction Programme, a three-year incubation programme aimed at young people, the Phakamile Mabija Apprenticeship (artisan incubation programme) and the S’hamba Sonke Contractor Development Programme.
Sol Plaatje University is teaching data analytical skills to undergraduates and many of them are moving into the financial sector on graduation. Another area where these skills are in great demand is radio astronomy. One of the world’s great scientific ventures, the Square Kilometre Array (SKA) radio telescope project, has been established near Carnarvon and the amount of data that it will generate is so great that it is difficult to comprehend. Many data analysts will be needed.
Artisan training has also benefitted from the presence of the SKA in Carnarvon. The new technical training centre has trained students as electricians, fitters and turners, in instrumentation, diesel mechanics, in IT and boilermaking, as well as in carpentry, plumbing, bricklaying and welding.
With support of the SKA, Carnarvon High School is the only school in the area offering mathematics and science.
Astronomy is changing lives in the Northern Cape. Credit: NCTA
South African Innovation Summit (SAIS) has been at the heart of Africa’s innovation journey for 16 years, serving as a cradle of entrepreneurial success. Hosting tens of thousands, SAIS has grown from a premier startup conference to the largest innovation event on the continent.
As a leading enabler of innovation and entrepreneurship in Africa, SAIS connects start-ups, investors, and corporate entities, driving growth and development across the region. Since 2007, SAIS has supported entrepreneurs by providing platforms for networking, skill development, mentorship, and funding opportunities.
The SA Innovation Summit is the foremost and most widely known event hosted by SAIS. It is the largest professional and networking conference for tech startups in Africa.
Through its comprehensive programme of innovation challenges, pitch battles, workshops, networking opportunities, and exhibitions, SAIS stimulates the growth of new enterprises and fosters a culture of innovation. It plays a crucial role in catalysing the region’s economic growth by empowering entrepreneurs with the tools, knowledge, and connections necessary to succeed in the global market.
The 2024 edition of EasternCape 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.
To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.easterncapebusiness.co.za. Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to here, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. In 2020 the inaugural edition of The Journal of African Business was published. View all publications as eBooks here.
Chris Whales Publisher, Global Africa Network
Eastern Cape Business 2024 Edition – A unique guide to business and investment in the Eastern Cape
In a year which celebrated a century of automotive investment in the province, new sectors such as renewable and alternative energy are growing, and large infrastructure projects are underway. The province’s ports and Special Economic Zones are receiving upgrades and investments.
Tourism — The World Bank is putting R65-million into conservation.
Browse the eBook here:
About the cover
Main image, then top right and clockwise down; huge wind turbines are bringing power to the national grid and development to the Mfengu people of the Tsitsikamma (Cennergi Services); the Eastern Cape is a popular destination for TV and film (ECDC); diverse businesses are choosing the East London Industrial Development Zone (ELIDZ); H&M is running a sustainability programme with sheep farmers (Mark Sampson); the Isuzu D-MAX is made in Gqeberha (Motus Isuzu); dairy is a vibrant sector (ELIDZ); home to the Big Seven, including Great Whites and whales (Nelson Mandela Bay Tourism); Valley of Desolation, Graaff-Reinet (Graaff-Reinet Tourism).
Distribution
Eastern Cape Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.
The Western Cape Government’s 11th Annual Smart Procurement Conference saw 500 provincial and municipal officials and suppliers meet to learn, share knowledge and network. The event’s key focus areas included strategic procurement and public-private partnerships, and the conference explored how these can enhance infrastructure delivery and build strong, sustainable communities.
Attendees at this important event included heads of supply chain in the province, engineers, asset managers, chief buyers, local economic development managers, chief financial officers and municipal managers, as well as suppliers. Officials from the national, provincial and municipal spheres of government outside the Western Cape also participated, to address shared challenges and opportunities currently facing public procurement.
Organised by Smart Procurement World, which has partnered with the Western Cape Government for the past 10 years to host successful procurement events in the region, the conference took place in Wilderness this year. It was a collaboration between the George Municipality and the Garden Route District.
This event supports the Western Cape Government’s bold economic growth strategy, “Growth for Jobs”, which includes prioritising infrastructure development as a catalyst for the creation of jobs and strengthening public-private partnerships so that the Western Cape becomes South Africa’s economic hub. The conference organisers stress that to achieve the province’s economic transformation goals, it is critical that governance principles are understood and upheld by all role players in the procurement and supply chain management space.
It is also imperative to build capacity in this important sphere and empower officials and suppliers with the latest knowledge and skills to navigate the evolving supply chain landscape – including upcoming legislative changes.
The two-day conference’s powerful programme included sessions exploring topics ranging from energy procurement and public-private partnerships for infrastructure delivery to sustainable construction, urbanisation and urban mobility. The power of procurement as a catalyst for change and prosperity was on the agenda, too, and attendees explored opportunities to uplift and empower communities through strategic sourcing. The event also featured practical workshops for attendees, including one in which National Treasury discussed transversal contracting.
Among the key learnings delivered by this conference was the need for the Western Cape to build closer working relationships with policy makers like National Treasury; to address risks posed by the construction mafia; accelerate performance driven procurement; support suppliers; and ensure that all role players are prepared for the impact of the Public Procurement Bill.
A highlight of the conference was the supplier open day in George, which was sponsored by Absa and George Municipality and attended by 218 representatives from small, medium and micro enterprises (SMMEs). This provided an invaluable opportunity for Garden Route District buyers and other stakeholders to engage with local suppliers to understand what they need to work successfully with different organs of state and private companies.
Suppliers also had the opportunity to learn how to register on the different databases of Government and private companies. The supplier open day included presentations designed to give suppliers important insights and advice on doing business with government. Regulations and different funding models were unpacked to empower suppliers.
Commenting on this successful event, Dr KJ Haarhoff, deputy director: Strategic Growth and Economic Development at George Municipality, said that the Supplier Open Day had received positive feedback. “A key focus was to strengthen our partnerships by fostering mutual understanding and collaboration. Suppliers commended the event for creating an environment conducive to networking and relationship building. The dedicated networking sessions allowed suppliers to connect not only with our procurement team but also with each other, paving the way for potential synergies and collaborations within our supply chain.”
Delegates have also commended this year’s conference. Tebello Mpuru from the Garden Route District Municipality commented: “The Smart Procurement Conference has been an awesome experience, with all the procurement specialists gathered in one place and very relevant discussions, including on infrastructure, which is most critical. All these discussions and having everyone here has been very fruitful and will benefit our operations.”
Santie Roy, director: Local Government Supply Chain Management for the Western Cape Government, said that her key takeaway from the conference was the power of collaboration and developing relationships. “This is how we overcome silos and cooperate better within the different spheres of government. Not only do we have better working relationships, but we get to make friends along the way and it helps towards service delivery. I will always recommend this event in future,” she stated.
This is how we overcome silos and cooperate better within the different spheres of government. Not only do we have better working relationships, but we get to make friends along the way and it helps towards service delivery. I will always recommend this event in future.
Panellists who reported on the operational progress made to date by the National Logistics Crisis Committee (NLCC) and the results achieved.
According to The Professional Body for Supply Chain Management (SAPICS), which has hosted the conference since 1975, supply chain management gained prominence during the Covid-19 pandemic. It is an increasingly important and in-demand profession, SAPICS says, as ongoing volatility fuelled by geopolitical conflicts, climate crises and economic instability impacts global supply chains.
Speaking at the opening of the conference, SAPICS president MJ Schoemaker stated that it is more critical than ever for supply chain managers to share and update their knowledge as change has become the only constant in the profession. This year, not-for-profit company SAPICS presented the conference in association with the Southern African Association of Freight Forwarders (SAAFF).
Held under the theme “Supply Chain Metamorphosis”, to reflect the changes in today’s dynamic supply chain landscape, the 2024 conference programme featured 128 African and international experts and thought leaders who shared their insights and expertise with attendees over three days. In a compelling update on the work of the National Logistics Crisis Committee (NLCC), Ian Bird, who is the Senior Executive responsible for the Transport and Logistics focal area at Business for South Africa (B4SA), reported on the operational progress made to date by the NLCC and the results achieved.
He revealed that the number of trains cancelled on the North Corridor due to security incidents has been reduced by 50%. The length of the N4 border queue has been cut from 16km to 3km. A 36% reduction in container vessels’ waiting time at anchor has been achieved, along with a 73% reduction in the number of vessels at anchorage.
Crucial discussion on South Africa’s ports
In a crucial discussion on South Africa’s ports, panellists representing Transnet and business debated the impact of Transnet’s monopoly, non-investment and the growing imperative for public-private partnerships to upgrade port terminals, back of port solutions and infrastructure like rail.
“Competition breeds efficiency,” stated Oscar Borchards, acting managing executive for the Western Cape Transnet Port Terminals. He and panellist Brenda Magqwaka, who is the general manager at the Office of the commercial executive at Transnet, revealed that the state-owned enterprise had benchmarked its port terminals against those in Singapore and Thailand. Borchards noted that compared to Thailand’s Laem Chabang port, the critical issue to be addressed in South Africa is the “boldness to invest and bring in redundancy”. “Even though Transnet is a monopoly, we realise we cannot go it alone,” Magqwaka told SAPICS Conference delegates.
Antoinette van Heerden, logistical affairs manager at the Fresh Produce Exporters’ Forum South Africa, stressed that South Africa is competing on fruit exports with South America where there are large ports, large vessels and low slot costs. “It is critical to focus on how to get out of the hole we are in quickly, and we need oversight to ensure that we do not end up here again. We must get to the point where we can get our fruit out at the port where we need to get it out. We can rough it for two more years, but after that, we need to see service excellence,” Van Heerden stated.
While supply chains get goods from manufacturers to end users, they also save lives. Strong healthcare supply chains are critical to get lifesaving medicines and health commodities to where they are needed, when they are needed, including to the most vulnerable communities. Recognising this, the 2024 SAPICS Conference featured a global public health supply chain track running throughout the event.
These sessions examined topics ranging from last mile distribution challenges across Africa to the successful use of drones for the delivery of blood, medicines and snakebite antivenom. Artificial intelligence’s role in reducing drug shortages by analysing huge volumes of data faster than any human could was also explored, along with the power of public-private partnerships to enhance public health supply chains.
Prashant Yadav, winner of the Most Innovative Presentation Award.
Focus on circular supply chains and sustainability
As our natural resources dwindle and carbon emissions rise, circular supply chains are becoming more critical than ever. Circularity and sustainability were the focus of several absorbing sessions at the 2024 SAPICS Conference.
An important new book, “Sustainable Supply Chain Orchestration”, co-written by world-renowned circular supply chain expert Deborah Dull and supply chain management leader Douglas Kent, was launched at this year’s conference. Dull and Kent introduced SAPICS Conference attendees to their “UNLEARN” model, a framework outlined in their book and designed to foster sustainable practices in an organisation.
“Our supply chains have been designed to drive cost efficiencies, optimise delivery times and ensure product quality. However, this focus has contributed to unsustainable practices that compromise the well-being of our planet and society. We can no longer tolerate excessive packaging, inefficient logistics which increase greenhouse gas emissions, single-use plastics, exploitive labour practices, improper waste disposal or chemical runoff. Supply chain leaders have an enormous impact on sustainability and a critical role to play in shaping a better tomorrow,” Dull said.
At the closing dinner that ended the conference on a festive note, prizes were awarded to the following outstanding speakers and exhibitors:
Best Speaker: Vanya Jansen
Most Innovative Presentation: Prashant Yadav
Best Panel Discussion: Market Shaping for Drones
Best Workshop: Mbuso Nkosi
Best Written Paper: Oliver Jones and Luis Freitas
Best Booth: GS1
Best Single Unit Exhibition Stand: Webfleet
Best Multiple Unit Exhibition Stand: Interrol
In addition to learning and networking, the SAPICS Conference organisers and delegates also found time during the conference to give back to those less fortunate. At a “Rise Against Hunger” meal packaging event, conference attendees packed 6 000 meals for disadvantaged communities.
Vanya Jansen, winner of the Best Speaker Award.
The Gold sponsors of the 2024 SAPICS Conference were SAP and VillageReach.
Since 1966, SAPICS has worked to elevate, educate and empower the community of supply chain professionals in South Africa and across the continent. This is done via membership, events, the annual conference and education courses and workshops through Authorised Education Providers and others.
SAPICS is registered in South Africa as a not-for-profit company. Its mandate is to ensure that any profits made are used towards the continual development and overall benefit of individuals and organisations in the supply chain management profession.
The annual SAPICS Conference is the leading event in Africa for supply chain professionals.
The Southern African Association of Freight Forwarders NPC (SAAFF) was established in 1921. For more than a century, SAAFF has played an essential role in freight forwarding and international trade, with members facilitating these activities through their dedicated involvement in the management of transportation, customs clearing, documentation, third-party payments, and many other elements of the international supply chain.
Each year in June, South Africa commemorates Youth Month as a tribute to the brave youth of 1976 who, 48 years ago, fought against the apartheid regime in defense of their right to education. In 2024, we also celebrate the strides made by the youth during 30 years of democracy in the country.
This year, the country commemorates Youth Day as part of its 30 years of democracy under the theme: “Actively embracing the socioeconomic gains of our democracy.”
Join us for the National Youth Day Commemoration on 16 June 2024 at the old Peter Mokaba Stadium in Polokwane as we pay tribute to the heroes of the 1976 student uprising.
Before the formal program, the leadership will engage with real-time opportunities available for young people, as well as fitness activities. Tune in to the government’s social media platforms as we reflect on this important day and present various opportunities to our young people.
Our Youth. Our Future!
This message is brought to you by the National Youth Development Agency, an entity of the Department of Women, Youth and Persons with Disabilities.
The National Youth Development Agency, together with the government, will lead collaborative efforts with other key economic role players to ensure that young people have access to real-time opportunities for their personal and collective development. By working together to move South Africa forward, we enable young people to become change-makers and a driving force for the effective transformation of our country into a better place for all.
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The scope of work carried out on the Klein Neira – Batlharos passage included the upgrading of the road from a gravel to a double-sealed surface and installing multiple stormwater management channels along the 6.4km route. This project is part of the broader work carried out in 2022 on the greater Churchill Road, which spans over 10 km, at a cost of R44-million.
Member of the Audit Bureau of Circulations
This year, the country commemorates Youth Day as part of its 30 years of democracy under the theme: “Actively embracing the socioeconomic gains of our democracy.”
