Page 48 - IDC

6 CITY PRESS, 7 MAY, 2017

A

PROJECT IN

PARTNERSHIP
WITH THE

IDC Eastern Cape

in numbers

2nd

LARGEST PROVINCE
IN SA

7.1m

THE POPULATION OF
THE PROVINCE

GOING RETRO Port Elizabeth-based Hi-Tech Automotive is a low-volume specialist manufacturer of vintage sports cars. Hi-Tech produces replica classic cars that 7.6%
were built mainly during the 1960s PHOTOS: KHWEZI PHOTOGRAPHY
DRIVING TOWARDS CONTRIBUTION TO THE
NATIONAL GDP – FROM
prosperity
THE FOURTH-LARGEST
REGIONAL ECONOMY

800km

THE LENGTH OF THE
PROVINCE’S PRISTINE
COASTLINE
Lubabalo Ngcukana chats to Kingsley Dell-Robertson, the Industrial

Development Corporation’s regional manager in the Eastern Cape, about 4

the role it plays in stimulating economic expansion in the province NUMBER OF

UNIVERSITIES IN
Tell me what the industrial development corporation institutions need to partner with entrepreneurs. We all THE PROVINCE
(IDC) is doing in the province; what are the biggest need to play a role in developing entrepreneurs so that
opportunities entrepreneurs can look forward to in they can create new businesses and, in the process,
this part of the world? sustainable jobs.
Over the past financial year, more than 2 100 jobs
were created and R778 million in funding was The IDC has funded a number of projects in the past 2 117
approved. This is consistent with the funding approved financial year. Which will have a large effect on the
over the past five years. As the IDC in the Eastern province?
Cape, we have contributed to our government’s agenda Attracting an OEM to South Africa is a substantial JOBS CREATED OR SAVED
in terms of job creation and transformation, both in positive investment for the country, particularly to the IN THE 2016
funding existing businesses and new opportunities. Eastern Cape, which already exports about 50% of
The Eastern Cape has the highest expanded South Africa’s manufactured vehicles. The Eastern Cape FINANCIAL YEAR
unemployment rate, so job creation has an added has a strong automotive industry, which is why the
significance in this province. We encourage businesses BAIC project chose to establish itself in this region.
with high job-creating opportunities to approach our In terms of the project itself, it’s going to be
office so that we can partner with them and further implemented in phases. The first phase is going to
develop these opportunities. produce about 50 000 vehicles during the first year of
The Eastern Cape is the automotive hub of South full production and will create just under 1 000 R778m
Africa, with the key original equipment manufacturers permanent jobs. Other jobs will be created during the
(OEMs) and Hi-Tech Automotive based here. construction phase. The BAIC project is one of the
These OEMs, together with the imminent major projects the IDC is working on. IDC FUNDING APPROVALS
establishment of the Beijing Automobile International
Corporation (BAIC) plant, will provide viable What has your office done to actively empower IN THE PROVINCE IN THE
opportunities over the life of the production vehicle. youth, women and black-owned businesses? Of the 2016 FINANCIAL YEAR
The next significant opportunity is in agroprocessing Kingsley Dell-Robertson projects that you have funded, how much funding
because of the job-creation nature of the industry. The has gone to those sectors of society?
current low agricultural usage of arable land makes for Black, female and youth ownership is an integral part
plenty of opportunities in agriculture. Both of these of the IDC’s assessment for funding, especially in a
industries are key sectors for government and are start-up, where lessons learnt by experience train the R273m
supported through various programmes, such as the next generation of entrepreneurs. The department of
Automotive Production and Development Programme, trade and industry has the Black Industrialist
and the Agri-parks Programme. Programme, which provides a grant in relation to FUNDING APPROVED FOR
Citrus exports have grown exponentially in the past capital expenditure. The IDC then funds the balance of BLACK INDUSTRIALISTS
few years, which has created a number of jobs in the the project. The corporation has set aside R23 billion
agriculture sector. over the next five years for black industrialists, which IN THE 2016
Tourism has immense growth potential in urban and will help change the landscape of ownership and assist FINANCIAL YEAR
rural areas. The Eastern Cape has 800km of largely in transforming the business sector. We place much
unspoilt coastline with noteworthy wildlife reserves that emphasis on the change of management control so that
are malaria free. the entrepreneur becomes a true industrialist, not only
The maritime cluster also has major opportunities, an investor.
and includes boat and ship repair and building. The With regard to youth development, we hosted a R344m
Eastern Cape is the only province with three ports – in youth conference late last year, where pertinent issues
Port Elizabeth, East London and Ngqura. There is a relating to youth entrepreneurship were discussed. In
plan to create maritime industrial capacity around the Eastern Cape specifically, we have attended a IDC FUNDING FOR
these three ports. Nelson Mandela Bay is one of the number of road shows, youth and business chamber FEMALE-OWNED
largest bays in South Africa and has good conditions for events, where the IDC provided insight into its youth
ships to anchor. funds and support for young entrepreneurs. BUSINESSES IN 2016
Chemicals and textiles remain an important value Added to this, R344 million has gone towards funding FINANCIAL YEAR
chain, a portion of which is driven by the automotive female-owned businesses over the past year.
industry. A worker at the Da Gama Textiles factory in Informing these entrepreneurs about the IDC and
The province also has a solid base of clothing, textile Zwelitsha near Bhisho the help that is available to them is vital, and we have
and footwear companies, which are large job-creating built relationships through partnerships with business
entities. Government has many incentives in place and economy, where South African products compete chambers and forums to help provide the necessary WHERE TO
supports the textile industry so that it can compete internationally. The Eastern Cape government has platforms that are key to reaching these entrepreneurs.
against imports. realised this and is setting its local procurement target FIND IDC
In terms of rural opportunities, a mostly ignored area at 50%, creating a market for locally manufactured What would your advice be to an entrepreneur who
for business is Mthatha. Whenever I travel there, I see products and services. The IDC will finance entities that walks into your office asking for funding from the
a vast population that places a great demand on limited are prepared to manufacture locally produced products. IDC? East London
capacity in a place where most products are brought Another critical factor faced by business is having the I always say to entrepreneurs that the first thing to 2nd Floor, Block B,
into the area. Having a natural geographical advantage skills to match industry requirements. The Eastern Cape do is to put their business plan down on paper. This
provides the possibility of establishing a manufacturing has four universities that can potentially supply helps them formulate their ideas and enables them to Chesswood Office Park,
concern in Mthatha. Recently, the IDC funded a brick graduates who meet the skills required by businesses. obtain input from others on the viability of the project. Winkley Street, Berea
manufacturing company in Flagstaff, as well as a For example, the Nelson Mandela Metropolitan You need to talk to people who have been in Tel: 043 721 0733/4
chemical company that will produce cleaning products University and the provincial government have set up business before, whether their business is related to
in Butterworth. In rural towns, you can replicate the maritime schools to address the skills shortage in the your idea or is something completely different – the
manufacturing entities established in the metropolitans sector. Volkswagen SA and Mercedes-Benz South Africa business chambers can also assist in this. Port Elizabeth Southern Life Gardens,
on a smaller scale, and have the competitive advantage have established training centres for the skills set that The business plan highlights what you want to Block A (Ground), 70 2nd Avenue,
of reduced logistic costs and time. is required for their businesses. achieve, how you intend to achieve it and the finance Newton Park, Tel: 041 363 1640
The OR Tambo district has close to 1.4 million When applying to the IDC, we assess the skills required to achieve it. You must try to find out how to
inhabitants, indicating the potential buying power. required for the project and provide business support get from point A, where you don’t have a business, to
funding for training to enhance the skills level of the point B, where you receive funding from the IDC. Other Mthatha Ground Floor
The country is facing high unemployment and slow entity to meet the IDC’s requirements. people have successfully travelled that road, and ECDC House, 7 Sisson Street,
economic growth. What challenges do businesses Regarding unemployment and slow growth, the issue preparing the business plan is an essential learning
have to overcome and how does the IDC help them? is, how do we create new businesses that create curve for any entrepreneur and will help us understand Tel: 047 504 2200
The market for businesses is key in this global employment? The IDC and other development financial the project and, ultimately, be able to fund it.