The Garden Route and Cape Economy...Garden Route District product analysis TOP 10 EXPORTS 2017 (Rm) Edible fruit and nuts; peel of citrus fruit or melons 1 035,4 Raw hides and skins

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an inspiring place to do business

The Garden Route and Cape Economy

Tim Harris

CEO

7 March 2018


Wesgro performance - the past five years

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New effort in challenging times

Missions for 2017/18


The Cape economy in perspective, 2016

0,0 50,0 100,0 150,0 200,0 250,0 300,0 350,0 400,0 450,0 500,0

Nigeria

South Africa

Egypt

Algeria

Morocco

Angola

Sudan

Western Cape

Kenya

Tunisia

Ghana

Ethiopia

Tanzania

Cape Town

Cote d`Ivoire

Congo (DRC)

Cameroon

Zambia

Uganda

Libya

Mozambique

Gabon

Botswana

Senegal

Namibia

RELATIVE SIZE OF SOUTH AFRICA, WESTERN CAPE & CAPE TOWN TO AFRICAN MARKETS, 2016 (USD: ADJUSTED FOR GDP & EXCHANGE RATES)

Source: BMI, 2017

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an inspiring place to do businessSource: StatsSA, 2017

WesternCape

EasternCape

NorthernCape

FreeState

KwaZulu-Natal

NorthWest

GautengMpumalanga

Limpopo

Provincial GDP growth 2,5 1,8 2,3 1,7 2,4 0,9 2,6 1,8 1,8

SA GDP Growth 2,2 2,2 2,2 2,2 2,2 2,2 2,2 2,2 2,2

0,0

0,5

1,0

1,5

2,0

2,5

3,0

% Growth

SOUTH AFRICA'S GDP AVERAGE ANNUAL GROWTH, 2011-2016

The Western Cape, strong relative performance

an inspiring place to do businessSource: QLFS (StatsSA), 2018

westernCape

EasternCape

NorthernCape

Free State KZN North West GautengMpumalang

aLimpopo

Provinces broad 2 14 9 7 17 16 5 14 20

Provinces narrow 22 28 29 31 21 26 26 28 20

South Africa narrow 25 25 25 25 25 25 25 25 25

south africa broad 35 35 35 35 35 35 35 35 35

0

5

10

15

20

25

30

35

40

45

Une

mploymen

t Rate (%

)

SOUTH AFRICA'S AVERAGE UNEMPLOYMENT RATE, 2009-2017

The Cape has the lowest unemployment rate

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Western Cape GDP by sector, 2004 - 2016

2004 – 71.4%

Services sector: 2016 – 74.5%

Employment (2016) - 73.0%

Agriculture,forestry and

fishing

Mining andquarrying

Manufacturing

Electricity,gas andwater

Construction

Wholesaleand retailtrade,

catering andaccommodat

ion

Transport,storage andcommunicati

on

Finance,insurance,real estate

andbusinessservices

Generalgovernment

Community,social andpersonalservices

2004 4,56% 0,37% 17,78% 2,72% 3,30% 15,82% 10,17% 27,67% 10,33% 7,28%

2009 4,55% 0,26% 15,82% 2,23% 4,39% 15,54% 10,43% 29,49% 10,25% 7,05%

2016 3,95% 0,24% 15,16% 1,80% 4,39% 16,21% 10,21% 30,46% 10,89% 6,69%

Employment 8,85% 0,07% 9,59% 0,34% 8,15% 23,82% 5,29% 17,35% 11,92% 14,63%

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

35,00%

% Sha

re

48 014 52 34558 767

2004 2009 2016

Manufacturing

GDP constant 2010 prices (R million)

Source: Quantec, 2018


0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2010 2011 2012 2013 2014 2015 2016

R Million

Regional Output and GVA at basic prices by industry

George

Mossel Bay

Oudtshoorn

Knysna

Hessequa

Bitou

Kannaland

Western Cape GDP by sector, 2004 - 2014

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Western Cape regional trade

ZAR45,13bn

ZAR20,69bn ZAR36,27bn

ZAR12,66bn

ZAR1,90bn

-5

5

15

25

35

45

55

65

75

-5 0 5 10 15 20 25 30 35 40 45

Growth of W

C Exports, 201

2-20

16 (%

)

2016 Share of WC Exports (%)

WESTERN CAPE REGIONAL EXPORTS, 2016

Rest of Africa

EuropeAsia

Americas

Oceania


Top 10 import products, 2016

Top 10 export products, 2016

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53,2%

14,2% 13,6%

6,3%4,1% 3,0% 2,6% 1,7% 1,4%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

% Share

South Africa’s exports of agriculture, forestry and fishing products, 2016


South African export of agricultural products


1,47%

1,54%

2,47%

2,98%

3,34%

3,47%

9,37%

32,84%

42,52%

0% 10% 20% 30% 40% 50%

North West

Northern Cape

Limpopo

Mpumalanga

Free State

Eastern Cape

KwaZulu-Natal

Gauteng

Western Cape

% Share

South Africa’s exports of food, beverages and tobacco, 2016

Western Cape70,6%

Northern Cape18,7%

Limpopo6,5%

North West1,3%

Gauteng0,9%

Mpumalanga

0,8% KwaZulu-Natal0,6%

Free State0,3%

Eastern Cape0,3%

South Africa’s exports of beverages, 2016


South African export of processed foods

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Garden Route District trade balance

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exports 1576,4 1621,1 1376,4 1226,2 1387,2 1618,1 2161,4 2657,3 3185,5 3370,0

Imports 451,9 463,8 409,4 508,4 581,3 740,9 979,3 1347,9 1369,1 1373,4

Trade Balance 1124,4 1157,3 967,0 717,9 806,0 877,2 1182,1 1309,5 1816,3 1996,6

0,0

500,0

1000,0

1500,0

2000,0

2500,0

3000,0

3500,0

4000,0

R Million

Eden District Trade Balance (2008-2017)


Garden Route District product analysis

TOP 10 EXPORTS

2017 (Rm)

Edible fruit and nuts; peel of citrus fruit or melons 1 035,4

Raw hides and skins (other than fur skins) and leather 480,6

Oil seeds and oleaginous fruits 334,7

Prepared feathers and down and articles made of feathers or of down 169,9

Meat and edible meat offal 101,2

Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates

97,9

Beverages, spirits and vinegar 78,9

Industrial energy equipment 76,4

Vehicles other than railway or tramway rolling stock 72,1

Footwear 71,4

Boilers and machinery and mechanical appliances 217,7

Plastics and articles thereof 99,9

Inorganic chemicals 89,8

Live animals 84,1

Fish and crustaceans, molluscs and other aquatic invertebrates 79,1

Articles of apparel and clothing accessories, knitted or crocheted 60,8

Raw hides and skins (other than furskins) and leather 55,2

Oil seeds and oleaginous fruits 55,2

Articles of stone, plaster, cement, asbestos, mica or similar materials 52,1

TV's, Sound systems and related devices 48,8


TOP 10 IMPORTS

2017 (Rm)

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Recent work in Garden Route Activity

1. Katavi Botanicals is a

South African all-natural, anti-

aging skincare company

Exhibition in USA drove exports

2. Meyer van WiellighEDP 3 – SSAS outward missions

to 100% Design and Giftex

3. Gribbons Trading Early engagement

4. Leather

Rose Manufacturing - Mossel

Bay

Early engagement

5. Mungo Textiles, Old Nick

village, PlettEDP 3 - Seminar

6. Zenzeleni Resources EDP 3 - Seminar

7. Klein Karoo International -

Oudtshoorn

LOSI - Anuga & Sial Paris on

National Pavilion

8. Lancewood Cheese CM IBM

9. Mosstrich - Mossel

Bay

LOSI - Anuga & Sial Paris on

National Pavilion

Companies supported

The Wesgro trade team


Western Cape - FDI breakdown

UK United States Germany Netherlands France China Italy Spain Switzerland Denmark

% Projects 25,50% 22,38% 7,37% 5,38% 4,82% 3,97% 3,12% 2,27% 2,27% 1,98%

% Capex 12,94% 20,84% 7,30% 5,94% 6,13% 1,34% 8,38% 2,47% 0,79% 0,52%

0%

5%

10%

15%

20%

25%

30%

% Sha

re

BREAKDOWN OF FDI BY SOURCE MARKETS, JAN 2003-SEP 2017

BusinessServices

Software & ITservices

FinancialServices

Communications

Transportation

IndustrialMachinery,Equipment &

Tools

ElectronicComponents

Alternative/Renewableenergy

Chemicals Textiles

% Projects 19,55% 18,13% 7,93% 7,08% 4,82% 4,53% 3,97% 3,68% 3,12% 3,12%

% Capex 4,40% 5,23% 3,02% 15,16% 4,17% 1,00% 0,86% 17,42% 0,76% 1,33%

0%

5%

10%

15%

20%

25%

% Sha

re

FDI BREAKDOWN BY SECTOR, JAN 2003-SEP 2017


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Recent international investment in Eden

Source: FDI Intelligence, 2018

Headline figures

No of FDI projects 5

Total jobs created 600

Average project size (jobs) 120

Total capital investment USD 1,7 bn

Average project size USD 359 m


Investment Promotion: engagements 2017/18

Source: FDI Intelligence, 2018

Company District Sector

APL Cartons Cape Winelands Agribusiness

QBS Cape Winelands Agribusiness

Rhodes Food Group Cape Winelands Agribusiness

Currenxie Cape Winelands ICT

Jordaan Group Cape Winelands Agribusiness

TechnoPark Cape Winelands Real Estate

Six Barr Construction Eden District Real Estate

Novelquip Eden District Manufacturing

EcoPar AB Eden District Green Economy

West Coast Power

Solutions

West Coast Green Economy

Michael Wurbach Cape Overberg Agribusiness

Background:

The Wesgro IPU is working closely with a number of

local municipalities to develop a support structure for

enhancing investment and municipal investment

readiness.

These include:

• Stellenbosch Municipality

• Drakenstein Municipality

• George Municipality

• Saldanha Bay Municipality

• Matzikamma Municipality

• Theewaterskloof Municipality

20% increase in non-metro engagements by Wesgro

Agribusiness Investment Unit so far in 2017/18

120% increase in non-metro engagements by Wesgro

Investment Promotion unit so far in 2017/18

Examples of Projects IPU is working on:

Engagement Date

Central Karoo Visit 4 – 5th March

Garden Route Investment

Conference7th – 8th March

West Coast Workshop Awaiting Feedback

Western Cape Municipal Workshop April 2018

Upcoming engagements:

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Investment Promotion 1 April

2016 to 28 February 2018

Bitou Municipality 1

Breede Valley Municipality 1

Cape Winelands District

Municipality1

Cape Winelands

Municipality2

Drakenstein Municipality 4

Eden District Municipality 14

George Municipality 10

Knysna Municipality 1

Matzikama Municipality 1

Mossel Bay Municipality 3

Overberg District

Municipality2

Overstrand District

Municipality2

Saldanha Municipality 2

Stellenbosch Municipality 3

Theewaterskloof

Municipality3

West Coast Municipality 1

Total 51

Agribusiness Investment Unit 1 April

2016 to 28 February 2018

Drakenstein Municipality 2

Eden District Municipality 2

Knysna Municipality 1

Matzikama 3

Stellenbosch Municipality 2

Theewaterskloof Municipality 2

West Coast Municipality 5

Winelands Municipality 2

Witzenberg Municipality 2

Total 21

Wesgro Agri and Investment units engagements


South Africa

Western Cape

Cape Town

• R4.35bn Film Production


• R3.9bn Film & Media Production


• R3.5bn Film & Media Production

64% of total dti film funding went to productions in the

Western Cape

Film & media economic contribution, 2016

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• Presented at Film Industry Engagement (2016)

• Participated in Eden Municipality focus groups (2017)

• Advisory services on Film Strategy & Film Office (2017/2018)

• GR&KK Presented at the Locations Pre-Season Briefing in CT (2016/2017)

• Promoting locations at markets via Creative Locations Publication (Digital on USBs)

• Wesgro Leisure Tourism sponsored Plett Film Food Festival (2016/2017)

• Facilitated Film Industry Catering Workshop at Plett Film Food Festival (2017)

• Linked Trainers/Assessors with Local Producer Ikasi Media – now running film training programmes in the region

• Assisting local Producers with film projects:Ikasi Media, Create 360 Media, Spark Life etc.

• Attended quarterly RTO meetings (Oudtshoorn 2017)

• Discussed SLA to formalise film and media promotional activities (eg. SBM SLA )

Ikasi Media Training Programme

Film & media activities in Garden Route District


Cape Town International Airport route network 2017

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an inspiring place to do businessSource: OAG

Europe

Africa

Asia

North America

Middle East

Pacific

South America

1

2

3

4

5

6

7

1 436 220 15%

774 473 4%

279 911 9%

251 128 6%

186 239 10%

92 978 10%

57 503 26%

* Origin Destination

passengers both ways

International passenger growth 2017*

an inspiring place to do businessSource: OAG

* Origin Destination

passengers both ways

Top 10 country connections for CPT in 2017*

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Municipality Engagement Contract Signed Actioned

X X X X

X X

X X

XWaiting for input from

IP

X

X

March 2018

Focus on bespoke municipal contracting


District unit

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Thank you | Dankie | Enkosi

Documents

The Garden Route and Cape Economy...Garden Route District product analysis TOP 10 EXPORTS 2017 (Rm) Edible fruit and nuts; peel of citrus fruit or melons 1 035,4 Raw hides and skins