ECDC_Media Kit Brochure_Oct 11

Helping shape a prosperous economic future for the Eastern Cape

1996 - 2011O C T O B E R 2 0 1 1 • N O . 2

Cover photo: Umsobomvu Development Cooperative, Middleburg

AN iNNOvATivE lEAdER fOR

p r o m o t i n g s u s t a i n a b l e E C O N O m i C g R O w T h & d E v E l O p m E N T f o r t h e e a s t e r n C a p e

V I s I o n

ECDC

ii

ECDC

p R O m O T E S U S T A i N A B l E

d E v E l O p m E N T for the eastern Cape BY:

* providing innovative development finance solutions

* leveraging resources, strategic alliances, investment

and partnerships

M I s s I o n

iii

HISTORICALOV E R V I E W

01LEGISLATIVE/POLITICALFRAMEWORK

02

SUCCESSSTORIES IN 2010/11

10FOCUSSTRATEGIC07

IMPACT AREASK E Y 06

PAGE 01

paGe 27 paGe 33

PAGE 05

PAGE 77

MEDIAPOLICY 11PAGE 99

12SPOKESPERSON

POLICYpaGe 101

03KEY ROLEof eCDC 04LEADERSHIP

EASTERN CAPEABOUT THE 05PROJECTSECDC’S ROLE IN CATALYTIC

09ECDC NOTABLEACCOMPLISHMENTS

08

13M E D I ARESOURCES 14

MEDIA TEAM

15CONTACTS

AbbreviAtionspaGe 109

paGe 105

PAGE 39

PAGE 111

PAGE 113

PAGE 53

PAGE 15paGe 09

paGe 21

HISTORICALOV E R V I E W

eastern Cape DeVeLopMent CorporatIon:

The Eastern Cape Development Corporation is the premier economic development and investment promotion agency for the Eastern Cape province of South Africa.

01HISTORICAL OVERVIEW

01

CPDB, CSBC, TDC & CIMEC aMalgaMaTIon ECDC was formed out of various development entities: Ciskei Peoples Development Corporation (CPDB), Ciskei Small Business Corporation (CSMC), Transkei Development Corporation (TDC) and the Centre for Investment and Marketing in the Eastern Cape (CIMEC).

ECDC ESTaBlIShED In 1996 Since it was formed in 1996 by an Act of the Eastern Cape Legislature, ECDC has played an important role in the economic development of the province and as a key partner to business and entrepreneurs.

ECDC has a long history of promoting economic enterprise, activity and development in the province. It has achieved this by financing public investments with the view that improved economic activity leads to reduced unemployment and poverty levels for the most marginalised people of the Eastern Cape.

ECDC’S fooTPrInT ECDC’s head office is in East London, which is centrally situated in the province. ECDC reaches the Eastern Cape via a network of regional offices in Port Elizabeth, King William’s Town, Queenstown, Butterworth and Mthatha.

Two MorE offICES In 2010, ECDC opened two offices, in Aliwal North and in Mount Ayliff, in the Joe Gqabi District and Alfred Nzo District municipalities respectively. This has assisted ECDC to respond faster to customers in these areas.

NAMIBIA

BOTSWANA

zIMBABWE

MO

zAM

BIq

UE

south afriCa

EastErn CapE

CAPE TOWNPORT ELIzABETH

EAST LONDON

DURBAN

JOHANNESBURG

The Eastern Cape, a province of vast potential and world-class industrial sectors, is working steadily to

overcome the severe underdevelopment it inherited from apartheid, particularly in its large rural areas.

03HISTORICAL OVERVIEW

KEY

Major economic city

Secondary economic city

Airport

ECDC office

ECDC satellite office

N2

N2

N9

N9 N10

N10

N9

East London

Nelson Mandela BayPort Elizabeth

Jeffreys Bay

Humansdorp

Graaff-Reinet

UitenhagePort Alfred

Grahamstown

BhishoKing William’s Town

Cradock

Aberdeen

Middelburg

Queenstown

Willowmore

Port St Johns

Butterworth

Mthatha

Aliwal NorthMount Frere

Mount Ayliff

Lusikisiki

CacaduDistrict

Chris HaniDistrict

Joe GqabiDistrict

AmatholeDistrict

OR Tambo District

Alfred Nzo District

Nelson MandelaMetropole

LeGIsLatIVe/poLItICaL

FRAMEWORK

As an entity that is fully-owned by the provincial Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), ECDC draws its mandate from the Eastern Cape Development Corporation Act 2 of 1997.

05LEGISLATIVE/POLITICAL FRAMEWORK

02

Corporate governanCeECDC activities are overseen by a board of directors, which represents government, business and labour. The board is appointed by the MEC for Economic Development, Environmental Affairs and Tourism.

pgDp informs Developmental prioritiesThe financier is driven by the economic development priorities of the provincial government as laid out in its official roadmap, the Provincial Growth and Development Plan (PGDP). Its strategic direction is also influenced by the policy and budget speech of DEDEA.

informeD by national, loCal poliCyECDC’s activities are closely aligned with the strategic intent of the PGDP as well as broader national and local policy interventions designed to deliver growth, employment and reduce the levels of poverty in the country.

better CoorDinationIn time, ECDC envisages better coordination between its objectives and the provincial government’s plans each year. As a repository of critical knowledge and economic intelligence, ECDC should respond faster and more efficiently to emerging challenges and difficulties.

07LEGISLATIVE/POLITICAL FRAMEWORK

ECDC has carved out a niche as a premier development finance institution (DFI) that delivers on government’s objectives. Consequently, ECDC has been resolute in its commitment to carry out a mandate to plan, finance, coordinate, promote and implement development in the province.

KEY ROLEof eCDC

09KEY ROLE OF ECDC

03

STIMULATE ECONOMIC ACTIVITY throuGh foCuseD InVestMent In VItaL seCtorsof the Eastern Cape economy

INVEST IN InteLLeCtuaL LeaDershIp

Key role of ECDC

1

2

11KEY ROLE OF ECDC

BUILD A STRONG BRAND FOR THE CORPORATION

4

ESTABLISH INTEGRATED PARTNERSHIPSWITH STAKEHOLDERS TO ENSURE MaXIMuM LeVeraGe of resourCes & DeVeLopMent outCoMes

5

OPTIMISE ALL RESOURCESso as to MaXIMIse InVestMent returnsanD attaIn fInanCIaL sustaInaBILItY

3

Jeffrey’s Bay - A surfing paradise and home to the best right-hand point break wave in the world. Fondly known as J’Bay it hosts the annual Billabong Pro surf contest which sees international surfers make the waves work with them for this prestigious title. www.ecdc.co.za/fromabove

04LEADERSHIP

15LEADERSHIP

Sitembele maSeChief exeCutive offiCer

A Master of Business Leadership graduate from the university of South Africa, Sitembele is experienced in investment, change management and services marketing. Before joining eCDC, Sitembele was chief executive officer of the South African Micro-finance Apex fund. he worked for eCDC’s predecessor, the transkei Development Corporation (tDC) initially as a business analyst, and later as senior manager responsible for Queenstown, Cradock and Aliwal North.

ADVOCATE OyAmA mAbANDLAChairman

With a Jurisprudence doctorate from the Columbia University School of Law, Oyama is a seasoned scholar and corporate figure who brings invaluable experience in areas such as corporate law, securities and capital markets, mergers and acquisitions, and international trade and investment. he is a member of the advisory board for financial services company JP morgan, chairs the Langa Group, a holding company with petroleum and pharmaceuticals investments, former group chairman of Vodacom, board member of Consol Glass and construction company, Group Five.

Leadership

17LEADERSHIP

Msulwa DacaChief finanCial offiCer

a chartered accountant by profession, Msulwa brings a wealth of experience after successful years at leading professional services firm KPMG and the South africa revenue Services (SarS). Before joining eCDC, he was chief director of accounting support services at the national Treasury in Pretoria.

Noludwe NcokaziExEcutivE managEr: dEvElopmEnt sErvicEs

noludwe graduated with a Bachelor of commerce from the university of the Western cape in 1994. since then, she has completed an honours degree in economics and is currently working on a masters degree. Her roles have spanned four of south africa’s nine provinces as educator, financial manager, chief executive officer, executive consultant and general manager in the public and private sectors. Before joining Ecdc, noludwe was general manager for economic development, tourism and rural development at Buffalo city municipality (Bcm).

Buhle DlulaneExEcutivE managEr: dEvElopmEnt invEstmEnts

Buhle’s academic credentials include an unisa masters degree, a honours degree from Fort Hare university, diplomas from newport university in california as well as a number of post graduate courses in credit law, corporate banking, turnaround management, rural banking from various institutions in south africa, united states of america and Europe.His previous roles include transitional cEo of the Eastern cape rural Finance corporation (now uvimba Finance) and deputy director general at the national department of agriculture where he developed and rolled out the r1,6 billion maFisa development wholesale fund

Luyanda TsipaExEcutivE managEr: dEvElopmEnt propErtiEs

With 10 years experience in immovable asset management, luyanda is a BJuris graduate of the university of the transkei. Her experience includes a role at the land claims commission and the national department of public Works. Her roles included deputy director of asset management and leaseholds, director of prestige property management and chief director at the Johannesburg regional office.

19LEADERSHIP

Development InvestmentsManager: Alfred Mamafha

Manager: Mninawe Nomnga

Development servIcesEnterprise development services manager: Mpumi Fundam

Investment anD traDe promotIonManager: Mlamli Nodada

Development projectsManager: Phakamisa George

Development propertIesProperty development Manager: Alex Noholoza

Butterworth - Mkhuthazi Buhe

King williaM’s town - Ken Bern

Mthatha - Jabulani nkosi

Port elizaBeth - Belinda Vabaza

Queenstown - lulama Moses

Management team

Regional team

The Eastern Cape, on the southernmost coast of Africa, is the second largest of South Africa’s nine provinces, covering around 14% of the country’s land mass. About 60% of the province’s 6,9 million people live in rural areas. Most of the remaining population live and work in the province’s towns and cities, especially the main cities of Port Elizabeth and East London.

EASTERN CAPEABOUT THE

21ABOUT THE EASTERN CAPE

05

The Eastern Cape has vast natural resources which offer a kaleidescope of opportunities for investors such as grazing for livestock, forests, marine life, rich farming soils, water and wilderness.

province new sa’s premier livestock regionThe province is now South Africa’s premier livestock region which presents excellent opportunities for meat, leather and wool processing. Due to its climatic conditions, the province is also a major dairy producer.

Similarly its manufacturing prowess has been built over more than a century and now is known as the “Little Detroit” of South Africa in the automotive sector.

Its knowledge production is aided by numerous world-renowned educational institutions across the province spanning the complete spectrum of learning. This provided invaluable support to sectors such as manufacturing as well as agro-processing.

The two Eastern Cape IDZs are purpose-built industrial estates, linked to an international port or airport which have been designated for new investment by export-oriented industries and related services. The national government has invested R3 billion into the Eastern Cape’s IDZs - Coega and East London IDZ.

10-year planThere is also continued investment into the province’s infrastructure which is being driven by a 10-year provincial growth and development plan (PGDP) which seeks to integrate the province’s sophisticated urban-based economy with the impoverished economy of the rural areas.

It is the launch pad for the sub-Saharan market supported by multi-modal logistics – a national rail and road network, three airports and three ports.


east LonDon / port eLIzaBeth

MAJOR

BhIsho - 70kM froM east LonDon

C A P I T A L

CITIES

BUSINESS LANGUAGE:

e n G L I s h

IsIXhosa

afrIkaans

enGLIsh

83,4%

9,3%

3,6%

AREA IN KM2

169 ,580

P O P U L AT I O N

6,743,00013,5%of totaL sa popuLatIon

14% of totaL sa area

From here investors have duty-free access into the major world markets of the USA (through AGOA) and European Union (through the FTA).

The Eastern Cape also has a suspension regime for duty and VAT in its two IDZs.

COMPETITIVE, EMERGING COSTS VS DEVELOPED INFRASTRUCTURELastly, and possibly most importantly, the Eastern Cape has the advantage of competitive emerging market cost structures, while at the same time enjoying well-developed business infrastructure in the major centres.

Two thirds of the population live in the ex-homeland or “Bantustan”, areas of the former Transkei and Ciskei.

Historically, the Eastern Cape was a crucible of conflict. This was the eastern “border” where the early Cape colonial settlers clashed with the Xhosa, the Khoi and the San.

This was the birthplace of apartheid resistance movements – the African National Congress, the Pan Africanist Congress, and the Black Consciousness Movement, with famous leaders from the province.

Industrial parks such as the Eastern Cape’s IDZs are proof of the province’s solid industrial base, consolidating its strategic importance as an international investment, trade and logistics hub.

P R O w E S S I N b U S I N E S S , S O C I A L , A R T S , A C A D E M I C , S P O R TThe Eastern Cape is also home to outstanding personalities who have provided leadership in all spheres of life in business, social, artistic, academic and sports circles.

South Africa is a land of great diversity, a world in one country. The Eastern Cape holds all that South Africa has to offer – all in one province. It contains all seven of South Africa’s biomes or ecological zones and offers an unrivalled range of climates, landscapes and cultures.


GDP GROWTHqUARTER ON qUARTER

4,4%per annuM

f I r s t Q u a rt e r 2 0 11

GROSS REGIONAL PRODUCT

R88 bn8,1%

of totaL sa Gross GDp

(2003)

GROSS DOMESTIC PRODUCT

R182,147 M7,6%

of totaL sa GDp

(2009)

SECTORS CONTRIBUTEDto the eC eConoMY

f I r s t Q u a rt e r 2 0 11InCreaseD BY one poInt

C O N S U M E RCONFIDENCE14

iNflATiONport

eLIzaBethaLL urBan

areaseast

LonDon

4,9% 5,3%4,1%

Transport8%Agriculture2%

Electricity1%

Construction2%

Government19%

Taxes-Subs11%

Mining0%

Trade11%

Finance20%

Community9%

Manufacturing17%

For more information about the Eastern Cape economy: www.ecsecc.org

IMPACT AREASK E Y

27KEY IMPACT AREAS

06Development Investments - identifies business opportunities in key sectors, facilitates and finances joint ventures, accesses investment incentive schemes and local business services networks.Enterprise Development Services - provides non-financial services, as well as business linkages and networks that strengthen the SMME sector.Investment and Trade Promotion - assists investors and business people to harness the potential in the Eastern Cape province and grow successful commerce and industryDevelopment Projects - helps businesses establish strategic pilot projects to generate economic activity.Development Properties - offers small to medium enterprises suitable premises at affordable rates.

ECDC operational and impact activities are organised through the following five business units:

TO BRING ABOUT A BETTER qUANTITY & qUALITY OF

ECONOMIC ACTIVITY IN THE PROVINCE

proVIDesChanneLs, pLatforMs & resourCes

ECDC head office is situated in East London, with regional offices in Port Elizabeth, Queenstown, Mthatha, Butterworth, King William’s Town, Mt Ayliff and Aliwal North. Through this advanced provincial network, ECDC provides a comprehensive package of products and services comprising development finance, enterprise support, development projects, and investment and trade promotion.

PRODUCTS & SERVICES GEARED TOWARDS LOCAL SMALL, MEDIUM & MICRO ENTERPRISES (SMMEs)ECDC offers a range of short and long term finance products and business advisory services which include emerging contractors and craft enterprise development programmes. ECDC finances and provides enterprise support services to SMMEs that demonstrate one or a combination of these qualities:

• Valueadditiontotheeconomy

• Ruralandtownshipdevelopment

• Increasedexportincome

• Jobcreationandjobretention

• Newgreenfielddevelopment

• Expansionandrehabilitation

29KEY IMPACT AREAS

EXPORT OPPORTUNITIES FOR LOCAL MANUFACTURERSECDC trade and export promotion service focuses on the development of exports from Eastern Cape companies. This value is realised through:

• Yearsofexperienceintradefinancethatassistslocalenterprises

topenetrateglobalmarkets

• Thetradelinkagescreatedbetweenlocalenterprisesandtrade

contactsinsub-SaharanAfricaandtheBRICregion(Brazil,Russia,India

andChina)

• PartnershipswiththeEuropeanUnionandUnitedStatesthatprovidea

platformoftradewithdevelopedmarkets

IMVABA EAstErn CApE CoopErAtIVE DEVElopMEnt FunDThe Imvaba fund is structured as part-loan and part-grant. The grant component is regarded as developmental (start-up) capital offered as an investment to the development cooperative in the province. Imvaba is a unique finance product aimed at enhancing the competitiveness of primary cooperatives in the manufacturing and services sectors of the province.

Funding can be made available to qualifying co-operatives that have potential for sustainable growth but need further support in terms of improved capacity and competitiveness in the following areas:

• Businessdevelopmentservices

• Feasibilitystudies/marketresearch

• Productionefficiency

• Technologicalimprovementprojects

• Plantandmachinery• Start-uprequirementstothediscretionoftheadjudicationcommittee

DEVELOPMENT PROJECTSECDC implements high impact development projects in partnership with Eastern Cape communities and municipalities in order to:

• Unlock economic potential in low-income areas

• Implement BBBEE participation through public-private partnerships

• Create and save jobs in declining sectors and distressed enterprises

PROMOTING INVESTMENT INTO THE ECECDC promotes the investment potential of the province by supporting new and existing investors at no cost with:

• Identifyingbusinessopportunitiesinkeysectors

• Facilitatingandfinancingjointventures

• Accessinginvestmentincentiveschemesandlocalbusinessservicenetworks

• Creatingaccesstoadiverseportfolioofavailablelandandbuildings

• Facilitatingcorporaterelocationsandaftercareservices

• Lobbyingprovincialandnationalgovernmentforrelevantinterventions

INDUSTRIAL & COMMERCIAL PROPERTIESAs one of the largest property owners in the province, ECDC’s portfolio includes:

• Industrial property in Butterworth, Mthatha, Dimbaza and Fort Jackson

• Retail property in Mdantsane

• Commercial property available within ECDC-owned properties in various

areas of the province

31KEY IMPACT AREAS

ECDC is responsible to rightly and effectively channel state-owned development assets in the province, and thus plan, finance, coordinate, market, promote and implement the development of the Eastern Cape in the fields of industry, commerce, agriculture, transport and finance.

FOCUSSTRATEGIC

33STRATEGIC FOCUS

07 In 2010, ECDC embarked on a process of developing a new strategic plan envisaged to enhance the effectiveness of the corporation.

The purpose of the current strategy, which spans 2011 - 2015, sets a new direction for the development finance institution (DFI). The strategy enables ECDC business units to prioritise the implementation of key strategic projects, become effective and efficient with adequate capacity and demonstrate alignment with its mandate and DFI objectives.

After an extensive strategic planning process which included various key stakeholders, there was consensus that the new strategic focus of ECDC should be to re-invent the corporation as a leading DFI in order to promote growth and economic development.

ECDC’s new strategic direction and vision is for the corporation to be a development finance institution which promotes economic growth in the Eastern Cape. It carries this out by:• prioritisingemergingandexistingenterprises,• domesticandforeigninvestorsand• actingasanimplementingagentinkeyhighimpactandcatalyticprojects.

ECDC unDErpins its Daily work with CritiCal valuEs of intEgrity, profEssionalisM, aCCountability anD tEaMwork for CoMMunitiEs that it sErvEs.

For more details, go to www.ecdc.co.za to access the various services which each unit offers or download ECDC’s product overview brochure.

35STRATEGIC FOCUS

Implement key special projects

proVIDe reLeVant Market InforMatIon

CONTRIBUTE TO RESEARCH & POLICY INNOVATION

FINANCE

E C D C S E R V I C E S

1

2

4

3

Mercedes-Benz South Africa - Since the mid 1950s, Mercedes-Benz vehicles have been assembled in East London and in 1984 Mercedes-Benz South Africa established a manufacturing plant here. The company is the single biggest employer in the city. www.ecdc.co.za/fromabove

ECDC NOTABLEACCOMPLISHMENTS

08

39ECDC NOTABLE ACCOMPLISHMENTS

As part of its revised mandate, ECDC continues to make headway in developing the Eastern Cape SMME sector through non-financial support and financing.

• in 2010/11 ECDC DisbursED r109 million to 451 EntErprisEs.

In2009/10,anadditional107small,mediumandmicroenterprises(SMMEs)received

directfinancialsupport.

• rural businEss rEmains a foCus. “ECDC is encouraged that it continues

to impactpositivelyon itscorebusinessofprovidingfinance tosmallbusinesses

despitethemanychallengesitfacedduringtheyear.45% of funDinG WEnt to

rural EntrEprEnEurs in 2010/11.

• in 2009/10, WomEn-oWnED businEssEs rECEivED 37%oftheloanfunding,while

85%ofloanswenttosmallbusinesseswithaturnoveroflessthanR500,000ayear.

in 2010/11, 13% of finanCinG WEnt to WomEn-oWnED businEssEs.

• ECDC also recorded a 49 % inCrEasE in loans DisbursED to youth

overthepreviousperiod.345ofthe907venturesfinancedinthe2009/10periodare

youthowned.15% of funDinG WEnt to thE youth in 2010/11.

• InordertohelpSMMEsaccessstateprocurement,ECDCassistedmorethan5,865

entitieswith their company registration.205 CoopErativEs arE also noW

lEGally rEGistErED.

GrowInG entrepreneurshIp


ECDC is responsible for the financing of the ownership of popular franchises such as Sasol, Steers, Nandos, Debonairs, Caltex, Shell garages as well as Spar stores. During 2010, it funded over 30 franchises to the tune of R50 million.

The bulk of these franchises are in the former Transkei because of increased economic

activity in the region.

C R E A T I N G J O B S

IN THE LAST FIVE YEARS, ECDC HAS FACILITATED THE

CREATION OF OVER 25,000 JOBSthrough its special projects such as pineapple and berry projects as well as through SMME funding.

F R A N C H I S E S

F I N A N C I N G T Y P I C A L LY R A N G E S F R O M

R500,000 - R5 M

Developed by Dr Spencer Lazurus while in the employ of ECDC, the IECDM is widely recognised as a landmark mentorship programme, assisting emerging contractors throughout the province.

The two-year programme has produced more than 200 NQF contractors to date.

It has been ranked by the Construction Industry Development Board as an industry

best practice.

While SMME funding remains key, ECDC assists several larger businesses with funding such as Matla Solar Water which produces solar water heaters and is based in the East London Industrial Development Zone. ECDC helped fund the pineapple industry in its restructuring.

InteGrateD eMerGInG ContraCtors D e V e L o p M e n t M o D e L ( I e C D M )

L A N D M A R K F I N A N C I N G


Together with the Department of Trade and Industry, it has also profiled women crafters at national and international level to stimulate demand for their products.

In relationship that goes back to 2007/8, ECDC recently invested MORe tHAn

R600,000 in the Sthembene Women’s Development Enterprise (SWEDE), a women’s

development project in rural Transkei.

The money supplements a grant of more than R4,72 million which SWDE received from

the Thina Sinako Programme. ECDC’s funding provides the bridging finance for the

project. SWDE now employees 300 people, a jump from the 14 when it initially started.

C R A F T S U P P O R T

IN THE PAST FIVE YEARS, ECDC HAS ESTABLISHED A

C R A F T H U Bwhich assists rural women to be absorbed into the rural economy.

ECDC has supported the development of an innovative cream which helps those suffering from albinism. With the pilot study now complete, the project is now seeking a commercial partner.

Tests have already proven that the Zwelakhe creams are more effective than any

similar product in the market. A business plan, feasibility study and trials have been

completed in Port Elizabeth and Middledrift with excellent results. Formulation was

achieved through natural plant materials and certification has been received from the

Medical University of South Africa (Medunsa).

The Eastern Cape Department of Economic Development and Environmental Affairs

provided the initial funding of R700,000.

zweLakhe CreaMs

CosMetIC CreaMs * sunsCreens * antI-wrInkLe CreaMs * MoIsturIsers

T H E P R O J E C T P R O D U C E S :

FOR SENSITIVE SKINS FOR THOSE LIVING WITH ALBINISM


ECDC facilitated the establishment of the De la Vlei Wild Life Estate which is being touted for the western periphery of Port Elizabeth. ECDC lobbied for the passing of the Environmental Impact Assessment (EIA) which was crucial to unlocking the development.

Already R415 million has been committed towards the first phase of the development

which has already begun with the laying of building infrastructure. The estate will

include three privately-owned properties spanning 878 hectares. These hectares

include a private nature reserve, 400ha of forest, open grazing areas, and the biggest

natural freshwater lake in Port Elizabeth.

T O U R I S M E S T A T E

TOTAL VALUE OF THE ESTATE: POTENTIAL TO CREATE:

R2 BILLION 700 part-time & full-time jobs

ECDC’s commitment to accountability and the efficient use of public funds is demonstrated by its successive unqualified audit opinions since the 2006/2007 financial year. This means ECDC is able to account for its financial resources. It also means funds are being used where they are most needed.

U N q U A L I F I E D A U D I T S

ECDC holds an SMME conference each year and celebrates SMME achievers within the province. This year it is to be held from 15 - 17 November 2011 in East London.

Others noted for their achievements were:

• DeidreNxumalo-Freeman(EastLondon)-DNSWasteandEnvironmentalServices

• BrendaPierpoint(PortElizabeth)andSharonMarais-BrendiweLandscapingTrust

• LindiweHlekani(EastLondon)-LindiweHlekaniConstruction

• NontandoGaba(Queenstown)-MazimaConsulting

• AmeliavanderHeever(EastLondon)-ImbayetiFlagsandBanners

• NobaxolisiCutu(Johhanesburg)-PrescribedMusic

• AsandaFutshane(EastLondon)-YivaOkuhleCreations

• SingiswaDikweni’s(Mthatha)-OutoftheBlueHospitalitysuppliesB&B

Smallerworkshopsareheldduringtheyearinthevariouscitiesandtowns.

sMMe ConferenCe

TOP WINNERS AWARDED

R10,000 (2010)


With a significant property holding, ECDC continues to make important investments in towns such as Mthatha. One of its most recent developments includes a residential development to meet the demand for quality residential accommodation for professionals.

In 2009, Master of Business Administration graduate and ECDC procurement officer Nomhle Sinxoto impressed an international publishing house which turned her thesis (The role of the small medium and micro-sized enterprise in the socio-economic development of Buffalo City) into a book by the same title. The book is available through global online retailer, Amazon.

PROPERTY DEVELOPMENTS

ECDC MBA STUDENT THESIS TURNS INTO BOOK

With one of the best marine coastal lines together with skills availability, local knowledge, favourable climate and a conducive business environment, ECDC has played a role in securing several investments in this sector.

These include Espadon Marine, Pure Ocean and Irvin & Johnson.

The province’s second ICT incubator was set up in 2004 and headed by Patricia Dlamini. The first incubator was set up in Port Elizabeth at the Nelson Mandela Metropolitan University.

ECITI supporTs 15 small ICT busInEssEs - nine of which operate at the ECITI

hub employing about 47 full-time staff. Current incubates include Ocean Media,

InBusiness Magazine, Phila Development Agency, Webidentity, Cut & Splice, Virtual

Africa, Zweni Technologies, Khula Holdings, Swayani Films, OCE IT, Afrocentric IP,

Umzila Wabathwa, Pluto Productions, Leap Lyncroft and Creative Clan. For more

information, go to www.eciti.co.za

a Q u a C u L t u r e

T H E E A S T E R N C A P E H A S T H E MOST MARINE AqUACULTURE ACTIVITIES

2010 Marine Aquaculture Annual Farm Operation report:

E A S T E R N C A P E I N F O R M A T I O N T E C H N O L O G Y I N I T I A T I V E ( E C I T I )


ECDC is playing a leadership role in the development of the Eastern Cape Community TV station. The community participation phase was completed in 2010.

E A S T E R N C A P E C O M M U N I T Y T V ( E C C T V ) P R O V I N C I A L I N I T I A T I V E S

The Eastern Cape From Above (ECFA) exhibition aims to promote the province as a tourist and business destination.

The phoTographic exhibiTion feaTures 40 images with stunning panoramic

views of the land of contrast that is the Eastern Cape. From the Hole-in-the-Wall in

Pondoland north-eastwards to the Valley of Desolation in the Karoo and wildlife, the

pictures capture it all.

eastern Cape froM aBoVe

portuGaL * BeLGIuM * sweDen * franCe * GerManY * south afrICaunIteD kInGDoM (BrIstoL, GLasGow & LonDon)

To see all the locations profiled go to www.ecdc.co.za

ExHIBITED IN THESE COUNTRIES SINCE ITS LAUNCH IN 2008:

Citrus farm near Fort Beaufort - The Kat River Valley near Fort Beaufort is the centre of a prosperous citrus farming area. Surrounded by the majestic Katberg and Amatola mountain ranges, Fort Beaufort is home to the Martello tower, a national monument, that features a mounted cannon that pivots through 360° and is considered one of only two in the world. www.ecdc.co.za/fromabove

PROJECTSECDC’S ROLE IN CATALYTIC

53ECDC’S ROLE IN CATALYTIC PROJECTS

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ECDC, together with the provincial Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), the Council for Scientific and Industrial Research and Cacadu District Municipality, are part of the team leading fibre development initiatives in the province. The cluster includes cashmere, hemp, flax, agave Americana, wool and mohair.

NATURAL FIBRE CLUSTER

ECDC’S ROLE IN CATALYTIC PROJECTS

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Together with other partners such as Aspire, the Amathole District Council’s development arm, ECDC is helping establish the essential oil industry within the province.

E S S E N T I A L O I L S


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Eastern Cape Development Corporation’s berry initiative aims to plant as many berry types - blueberries, strawberries, raspberries and other varieties - as climatically possible in the Eastern Cape. It focuses on East London, Dimbaza, Cathcart, Bedford, Hogsback, Molteno and Barkly East.

B E R R Y I N I T I A T I V E


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One of the largest investments to be made in the former Transkei area of Ugie, ECDC was instrumental in presenting this project to the provincial government which required significant infrastructure development. It also played a project management role in making the investment come to fruition. R100 million was secured for infrastructure for this project.

P G B I S O N


63

ECDC has funded a feasibility study which is assessing the horse racing sector as a growth industry. Horse racing is ideal from two perspectives: its extensive value chain and its job creation prospects.

Some of the most experienced authorities in the world have contributed to the feasibility study.

The group includes black former Eastern Cape thoroughbred horsebreeder Phindi Kema, former Qatar Racing Authority CEO Michael Felton and former racing director of the Macau Jockey Club, steward of the Hong Kong Jockey Club, the “architect” of the Middle East’s Emirates Racing Authority, Lord John Fitzgerald.

H O R S E R A C I N G


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ECDC is part of the steering committee which is mobilising support for the expansion of the Port of East London. Further development of the port is seen as a catalyst for growing the region including stimulating further investment in the automotive and agro-processing sectors of the Border and former Transkei regions. Transnet has pledged to modernise the port and make it fully functional (August 2011).

PORT OF EAST LONDON ExPANSION


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ECDC CEO Sitembele Mase sits on the Optimal Energy board which is expected to produce the first South African designed electric motor vehicle on a commercial scale. The East London IDZ is earmarked as the location for manufacturing operations. The manufacturer, which is also being funded by the Industrial Development Corporation, is in the process of securing funding for the project. ECDC and the East London IDZ have invested R100 million into this project on behalf of provincial government.

J O U L E



ECDC is exploring bamboo opportunities which are expected to take Eastern Cape farming into new exciting territory with potential for downstream value adding industries. The development financier has identified bamboo as a possible vehicle for job creation and poverty alleviation in rural Eastern Cape.

It has the potential to create value adding businesses to supply the building material, food, energy among other sectors. Trials are underway in Port Elizabeth, Stutterheim and Centane in the former Transkei.

B A M B O O

The Camdeboo Satellite Aquaculture Project in Graaff- Reinet aims to become a leader in the breeding and supply of fish for the fresh and frozen markets, with up to 50 satellite farms involved. It is being launched with an initial budget of R750,000.

GRAAFF-REINET AqUACULTURE

The !xamdeboo KhoiSan project provides a globally unique facility of a KhoiSan visitor attraction, research facility and hospitality. It also acts as a catalyst to significantly increase the tourism economic sector within Graaff-Reinet and surrounding areas. The KhoiSan centre aims to increase the number of visitors to the area by 100,000.

GRAAFF-REINET KHOISAN PROJECT


The giant flag in Graaff-Reinet, has been identified as a catalytic project that may facilitate the growth of tourism in the region. The project aims to “[grow] the world’s biggest, “living” flag and to grow skills, employment and tourism while enhancing growing awareness of global warming and the protection of the environment”.

GRAAFF-REINET GIANT FLAG

In order to revive this 100-year industry, ECDC worked with the pineapple industry to restructure it from a loss-making operation where farmers were reducing plantings into a profitable zero waste industry. Farmers have already started increasing the planting and employment is on the rise.

In the first waste reduction stream, a dietary fibre business plan and pilot project has been successfully completed. Commercialisation of the project is expected by the end of the calendar year.

In the second waste reduction stream, the Cacadu District Municipality is co-funding a micro-crystallisation cellulose project with the pineapple project.

PINEAPPLE INDUSTRY RESTRUCTURING

DIMBAzA REVITALISATION PLANECDC is working with the Industrial Development Corporation and Development Bank of South Africa to convert Dimbaza, an existing industrial area close to King William’s Town, where ECDC owns several properties into an agricultural service and processing hub.


ECDC is to manage an Eastern Cape Industrial Job Stimulus Fund which is expected to drive job creation by incentivising businesses across targeted sectors to create new jobs. The fund aims to create 30,000 jobs during the next three years.

J O B S T I M U L U S F U N D

A R2 billion fund has been set aside for major investments in the Eastern Cape. ECDC is to manage the investment fund, which was announced early in 2011 by the Eastern Cape provincial government.

For more information on these projects, contact ECDC’s Ikhona Mvaphantsi on (email) [email protected] or (telephone) 043 704 5739.

The Imvaba Fund, an initiative of DEDEAT which is implemented by ECDC, was launched in 2010.

ECDC INVESTMENT FUND

IMVABA COOPERATIVE FUND

Bathurst - This small farming community is synonymous with the world’s largest pineapple. This tourism attraction stands 16.7m high and has three floors. From the top observation deck, there are magnificent 360° views over rolling pineapple lands to the Indian Ocean. ECDC has also assisted the industry with its restructuring which has led to it being zero waste focused and profitable with employment on the increase. www.ecdc.co.za/fromabove

SUCCESSSTORIES IN 2010/11

77suCCess storIes In 2010/11

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79suCCess storIes In 2010/11

ECDC is conducting five cassava crop trials in Bizana, Port St Johns and Ncera (East London). The aim of the trial is to grow and extract tubers, and establish starch processing operations for the manufacturing of chips.

Cassava is a root plant of Amazon origin and belongs to the sweet potato family. It is a good source of starch and apart from being a good energy food source, can be processed into animal feed.

The R770,000 project, launched in July 2010, entails the transfer of specialised skills and technology to participating communities. The first crops were planted before the holiday season in mid-December. The trial plot has since been harvested and replanted. It is estimated that the project will create and sustain approximately 50 jobs in the short to medium-term.

C A S S A V A

81SUCCESS STORIES IN 2010/11

South Africa’s marine finfish farming industry leader, Espadon Marine, has committed a further R50 million to expand its facility in the East London Industrial Development Zone (IDZ). Its kabeljou (or kob) production will be significantly expanded to 600 tons.

The operator’s initial R30 million investment in 2009 for the first phase of the development is bearing fruit as the operator geared up for its first commercial harvest during the period under review. Espadon’s kob harvest is the first commercial harvest in the Eastern Cape.

The establishment of the facility, which was a result of ECDC’s lobbying, was further motivated by East London’s suitable temperature for finfish farming. The area’s annual average minimum of 18°C and maximum of 22°C is suited to temperate finfish species.

E S P A D O N M A R I N E


In order to maximise opportunities within the commercial property sector, ECDC has signed a long-term lease with KFC for use of its refurbished building which was once the Hillcombe Residential Complex.

Hillcombe was previously an underperforming, dilapidated residential complex situated in the heart of the Mthatha Central Business District.

Market intelligence was done to identify a tenant that would bring something new into the market being serviced by the adjacent Mthatha Plaza. Buy-in was obtained from the Zimbane community who are claimants on the land. The Hillcombe Development is now approaching its completion and KFC is busy with shop fittings and fixtures while the contractor is busy with final touch-ups such as paving, electrical and water connections.

HILLCOMBE RESIDENTIAL COMPLEx


Port Elizabeth delicatessen Angel Foods, located in the Perridgevale Shopping Centre, received financing from ECDC for equipment, which has helped the small business expand its menu range.

Having first specialised in Greek cuisine, the shop now services a broader market with muffins, preserves, pastries and lunches. Items can be bought freshly baked or frozen for an easy meal.

The specialty food store also caters for events and corporate functions. Angel Foods began operations two years ago.

ANGEL FOODS


Nonkqubela Weaving Primary Cooperative at Ilinge near Queenstown makes high quality hand woven laundry baskets and magazine racks using steel frames and sisan or bundle twine. The cooperative was formed in 1999 and is now made up of 15 members, three of whom are disabled and 12 are women.

Over the years, ECDC has assisted the group with loan financing. ECDC continues to provide the cooperative with support through the crafts and creative sector support programme, which assists small enterprises to take their products to the market. Exhibitions such as Decorex and the Grahamstown National Arts Festival are crucial channels for these types of businesses. ECDC has helped them with a presence at these events.

ECDC also facilitated training for the group which focused on product development, basic financial management, basic business skills and co-operative governance.

N O N K q U B E L A W E AV I N G


ECDC’s R350,000 loan has helped a Mount Frere bakery upgrade its energy infrastructure and buy additional equipment. This has allowed Door 2 Door Bakery to meet increased demand for bread and baked goods in the town and surrounding area.

The business, owned by Mabangula Langa, employs 15 residents and was started in 2009.

M O U N T F R E R E B A K E R Y


The Eastern Cape Development Corporation has thrown its weight behind Bold Moves granite project in Butterworth, injecting more than R1,5 million into feasibility studies and trial mining.

The mining company is owned by Monde Tabata who has made his mark in South Africa’s business landscape as director of Peermont Hotels, which he co-founded, and as managing director of Primedia’s sport division Megapro. Sample testing has been completed.

G R A N I T E M I N E


World-class producer of luxury mohair textiles and apparel, Momento’s of Africa, continues with its success following its humble beginnings in the 1980s when British expert weaver Lin Smith taught unemployed people to weave Xhosa tapestries as a means of making a living.

The company, which started off as a curio shop at the Port Elizabeth airport, has taken advantage of the Eastern Cape’s leading position in mohair production and now boasts an expanded factory with average annual increases of 30% in employment, and a chain of outlets including most South African airports.

South Africa, which currently produces more than 60% of the world’s mohair, gave the company a competitive advantage regarding the sourcing of mohair produced.

MOMENTO’S OF AFR ICA


Ten fly tiers from Centane and Willowvale in the former Transkei will soon boast the age-old art of fly tying as result of ECDC’s R500,000 investment.

Fly tiers, who will be mentored by an appointed trainer who will also help them establish a business, will undergo training and mentoring as they learn the art of preparing hooks for anglers and fly fishermen who visit the areas.

Other opportunities for the business include satellite fly tying, bait and tackle outlets, managing local fishing venues, and starting a training centre for future fly tiers and fishing guides.

F LY T I E R S


Through ECDC’s craft and creative industry support programme, the Umsobomvu Development Cooperative has accessed markets as far and wide as Europe. In 2010, the cooperative exhibited its wares in Italy, Kenya and Portugal. These have also been a regular and popular feature at the Grahamstown National Arts Festival and Decorex Johannesburg.

The co-operative was initiated in 2001 by a domestic worker and two former textile factory workers after the respective firms they worked for closed down. Today, the Umsobomvu Development Cooperative based in Middleburg is a beacon of hope for the community and has grown its membership to 18 women.

ECDC also sent three of the cooperative members to Plettenberg Bay for product development training. The women produce blankets, flooring, table runners, scarves, wall hangings and throws from mohair.

U M S O B O M V U

MEDIAPOLICY

99MEDIA POLICY

11 ECDC realises the important role played by the media as a valued stakeholder.

The image of ECDC is influenced by its media presence. Communication cultivates proactive relations with the media to promote stakeholder awareness and understanding of ECDC policies, programmes, services and initiatives aligned to the overall objectives of the Eastern Cape.

SPOKESPERSON

POLICY

An official spokesperson is recognised as the voice of the organisation who ensures correct, strategically acceptable comment is released, particularly on sensitive socio-political issues.

101SPOKESPERSON POLICY

12

The board and management spokespersons:

t h ro u g h c o m m u n i c a t i o n s & m a r k e t i n g d e p a r t m e n t

KEY SPOKESPERSON FOR ALL ISSUES reLatInG to policy & legislative fraMework

DeaL wIth operatIonaL Matters reLatInG to projects and areas of specialisation

BUSINESS UNIT ExECUTIVE MANAGERS

CHAIRPERSON

keY spokesperson for strategic issUesC H I E F E x E C U T I V E

& may act as spokesperson as and when delegated by the board or chief executiveCoorDInates ContaCt wIth MeDIa

COMMUNICATION MANAGER

1

2

4

3

103SPOKESPERSON POLICY

Other media requests should be channeled through the communications department of ECDC or through its media relations agency.

M E D I ARESOURCES

Most of the corporation’s information sources, contacts are available through the site - www.ecdc.co.za - the corporation’s online repository of ECDC information.

105MEDIA RESOURCES

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provide journalists with updates of latest media activities,C o M p r e h e n s I V e L I s t o f pa s t r e L e a s e sFROM TIME TO TIME - PROVIDES ADDITIONAL INFO ON ACTIVITIES

N E W S L E T T E R S

the CorporatIon aCtIVeLY shares InforMatIon

ON VARIOUS PROJECTS

MEDIA RELEASES

Most recent available to journalistsANNUAL REPORTS

1

2

3

Media resources

107MEDIA RESOURCES

JournaLIsts enCouraGeD to use eCDC’s resourCes:including sector specialists in mariculture, agriculture, manufacturing, automotive, ICT and f i lm, trade and SMME development

ACCESS TO ExPERTS4

FROM MEET & GREET SESSIONS TO ONE-ON-ONE INTERACTIONS

reGuLar networkInG sessIons so that JournaLIsts BeCoMe faMILIar wIth proJeCts, aChIeVeMents & ChaLLenGes

RELATIONSHIP BUILDING5

aDhoC to BrIef on keY eCDC proJeCtsheLD for CoMpLeX Issues or hIGhLIGhts In orDer to offer an aDDItIonaL opportunItY for InterroGatIon

MEDIA BRIEFINGS6

holds a range of resources such asANNUAL REPORTS AND USEFUL DOCUMENTATION & INFORMATION

Also see ECDC’s channel on YouTube, its Twitter Khula Nathi feed and the Eastern Cape business news site www.getnews.co.za

O N L I N E : w w w . e c d c . c o . z a7

14MEDIA TEAM

109 MEDIA TEAM

ECDC senior manager: Communication, marketing and stakeholder relations: Nopasika MxunyelwaTel 043 704 5600Cell 083 414 [email protected]

Ikhona MvaphantsiCommunication and stakeholder professionalTel 043 704 5739Cell 083 451 1687

Agency assisting ECDC media relations:mediaEQTel 043 726 8833

CONTACTShEaD offiCE ECDC House, Ocean Terrace Park

Moore Street, Quigney, East London, PO Box 11197, Southernwood 5213Tel:+27 (0) 43 704 5600 • Fax:+27 (0) 43 704 5700

KinG WiLLiaM’s toWn 75 Alexander Road, PO Box 498, King William’s Town 5600Tel:+27 (0) 43 604 8800 • Fax:+27 (0) 43 642 4199

ButtErWorth 24 High Street, PO Box 117, Butterworth 4960Tel:+27 (0) 47 401 2700 • Fax:+27 (0) 47 491 0443

Mthatha 7 Sisson Street, Fort Gale, Private Bag X5028, Mthatha 5099Tel:+27 (0) 47 501 2200 • Fax:+27 (0) 47 532 3548

QuEEnstoWn 22 Cathcart Road, Private Bag X7180, Queenstown 5320Tel:+27 (0) 45 838 1910 • Fax:+27 (0) 45 838 2176

port ELiZaBEth 152 Cape Road, Mill Park, PO Box 1331, Port Elizabeth 6000Tel:+27 (0) 41 373 8260 • Fax:+27 (0) 41 374 4447

Mount aYLiff SEDA Building, Nolangeni Street, Mount Ayliff 4735Tel:+27 (0) 39 254 0584 • Fax:+27 (0) 39 254 0584

aLiWaL north 97 Somerset Street, P O Box 198, Aliwal North 9750Tel:+27 (0) 51 633 3007

www.ecdc.co.za

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111 CONTACTS

CC Closed corporation

CIMEC Centre for Investment and Marketing in the Eastern Cape

CPDB Ciskei Peoples Development Bank

CSBC Ciskei Small Business Corporation

CSIR Council for Scientific and Industrial Research

DEDEA Department of Economic Development and Environmental Affairs

DEDEAT Department of Economic Development, Environmental Affairs and Tourism

ECDC Eastern Cape Development Corporation

ECITI Eastern Cape Information Technology Initiave

EC Eastern Cape

ECCTV Eastern Cape Community Television

ECSECC Eastern Cape Socio-Economic Consultative Council

GDP Gross domestic product

GRP Gross regional product

ICT Information, communication and technology

IECDM Integrated emerging contractors development model

IDZ Industrial development zone

MBA Master of Business Administration

PGDP Provincial growth and development plan

SMG The Strategic Marketing Group Africa

SMME Small, medium and micro enterprises

TDC Transkei Development Corporation

ABBREVIATIONS

113ABBREVIATIONS

www.ecdc.co.za

ECDC_Media Kit Brochure_Oct 11

Documents

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