HEAD OFFICEOcean Terrace ParkMoore Street, Quigney, East LondonPO Box 11197, Southernwood, 5213Tel: +27 (0) 43 704 5600Fax: +27 (0) 43 704 5700

KING WILLIAM’S TOWN75 Alexander RoadPO Box 498, King William’s Town, 5600Tel: +27 (0) 43 604 8800Fax: +27 (0) 43 642 4199

BUTTERWORTH24 High StreetPO Box 117, Butterworth, 4960Tel: +27 (0) 47 401 2700Fax: +27 (0) 47 491 0443

MTHATHA7 Sisson Street,Fort GalePrivate Bag X5028, Mthatha, 5099Tel: +27 (0) 47 501 2200Fax: +27 (0) 47 532 3548

QUEENSTOWN22 Cathcart RoadPrivate Bag X7180, Queenstown, 5320Tel: +27 (0) 45 838 1910Fax: +27 (0) 45 838 2176

PORT ELIZABETH68 Cape Road, Mill ParkPO Box 1331, Port Elizabeth, 6000Tel: +27 (0) 41 373 8260Fax: +27 (0) 41 374 4447

Satellite offices

MOUNT AYLIFFSEDA BuildingNolangeni Street, Mount Ayliff, 4735Tel: +27 (0) 39 254 6051Fax: +27 (0) 39 254 0599

ALIWAL NORTH97 Somerset StreetP O Box 198, Aliwal North, 9750Tel: +27 (0) 51 633 3007

info@ecdc.co.zawww.ecdc.co.za

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REAL INVESTMENT.REAL TRADE.REAL OPPORTUNITY.

Copyright ECDC 2012

ECDC continued to vigorously pursue investment and trade priority sectors of the economy ... [ECDC] provide[s] ideal platforms for backward and forward

linkages in key sectors such asagriculture and agroprocessing.

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“SIGNIFICANT INROADS BEING MADE INTO kEy SEcToRSAs the economic development agency responsible for province-wide investment promotion, ECDC continued to vigorously pursue investment and trade in priority sectors of the economy despite a poor investment climate that caused significant delays in pinning down investment decisions.

ECDC assists investors at no cost to them by identifying business opportunities in key sectors, facilitating and financing joint ventures, accessing investment incentive schemes and local business service networks, creating access to a diverse portfolio of available land and buildings, facilitating corporate relocations and aftercare services, and lobbying provincial and national government for relevant interventions.

The corporation’s efforts in investment and trade cannot be overstated as these provide ideal platforms for backward and forward linkages in key sectors, such as agriculture and agro-processing. The attraction of large investments into the provincial economy invariably leads to supplier opportunities for small businesses, further downstream opportunities and access to international best practice.I-ECDC iye yaqhubeka ukuqinisa imbono yayo yokukhuthaza utyalo-mali

norhwebo kwiingingqi ezingundoqo kuqoqosho loMzantsi Afrika.

SItEMbElE MASE, ECDC CEO

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Furthermore, ECDC has the responsibility to increase the value of trade and the number of exporters from the province by facilitating access for local entrepreneurs to new markets. As such, during the review period, ECDC began to explore opportunities made possible by various trade policies, specifically in broadening trade within Africa.

The value of exports from the Eastern Cape grew from R900 million in 2010/11 to R1.7 billion this year. The automotive sector continues to boost exports, driven by international contracts for the resident original equipment manufacturers (OEMs). The value of referrals to the Development Finance division for funding consideration was R52 million due to expansions and new applications. Exports largely remain in the auto sector (40%) but there are encouraging exports for agro-processing (29%). Sectors sitting at the lower end of the export spectrum are clothing and textiles (9%), energy (9%), general manufacturing (6%), medical (3%) and security (1%).

In future, ECDC will further strengthen its focus on attracting investment and trade opportunities in key economic sectors and on championing the development of new industries. ECDC’s efforts will continue to be aligned with the Provincial Growth and Development Plan and the Department of Trade and Industry’s macroeconomic strategy to increase developmental impact in the Eastern Cape, particularly as there have been improvements to enable increased localisation.

ECDC attracted R612.6 million through investment promotion during the review period, which was less than the planned R750 million. However, significant inroads were made in key sectors, such as automotives, agro-processing, pharmaceuticals, aquaculture and renewable energy, which resulted in 2,027 jobs

being saved and/or created during the year.

The province is also playing a pivotal role in the renewable energy space, particularly in wind and solar. There are sizeable prospects for hydro power and biomass going forward.

ECDC performed well, facilitating investment and trade platforms for Eastern Cape business despite a challenging economic environment that led to delays in investment decisions. The volatility of the Eurozone has sharpened the focus towards new emerging markets, particularly the BRIC (Brazil, Russia, India and China) grouping, as well as increasing trade within Africa.

This new plan is gaining traction and should open new opportunities for Eastern Cape export business and for its investment attraction efforts.

Investment strides made

• R612.6 million in investments were realised.• 20 investments were attracted.• 2,027 jobs were saved and created.• 112 leads were generated through investment promotion activities.• Four projects were researched and packaged.• Five successful wind farm applications were approved in the first round of the National Energy Regulator of South Africa’s assessments.• The 1,000 hectare Royalston residential estate and private game reserve in the Nelson Mandela Bay Metropole was rolled out.• 100% of marine finfish production in South Africa, in particular the dusky kob and yellowtail

species, now comes from the Eastern Cape.• A joint application with AsgiSA Eastern Cape* to the Development Bank of Southern Africa’s (DBSA’s) Jobs Fund resulted in conditional approval of R175 million for forestry and timber development.• R91 million was approved from DBSA’s Jobs Fund for grain and horticulture development. (*AsgiSA Eastern Cape has been amalgamated into the newly established Eastern Cape Rural Development Agency.)

INvESTMENT, TRADE GROWTH

SATISFACTORY; new markets

GAINING TRACTION

I-ECDC iye yaphumelela ekungeniseni utyalo-mali olu zizigidi ezingama-612.6 zeerandi kulo nyaka-mali.

le arhente ijonge ekuqiniseni iziccwangciso zayo zokukhuthaza utyalo-mali norhwebo kwimizi-mveliso engundoqo kuqoqosho loMzantsi Afrika nasekukhuliseni emitsha.

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Trade Promotion grows exportsto R1.7 billion

• The value of referrals to Development Finance was R52 million.• 11 new exporters were supported.• Five partnerships were established.• The bamboo symposium was initiated and facilitated as a platform for the establishment of bamboo as a new crop in the province and its inclusion in South Africa’s Industrial policy action plan.• ECDC led a joint mission with the Coega and East London industrial development zones, Nelson Mandela Bay and Buffalo City metropolitan municipalities, and 10 small, medium and micro enterprises (SMMEs) participated in the South African International Trade Exhibition in Johannesburg.• A quarterly trade bulletin is published and distributed to SMMEs throughout the province.

• More than 36% of approved finance was for long-term loans.• 65% of long-term loans went to East London and 27% to Port Elizabeth.• 86% of approved construction loans went to the OR Tambo region, which is aligned to government’s infrastructure drive in the area.• 5% of loans went to Amathole and 28% to OR Tambo.• 70% of NEXUS trade (invoice based) loans were disbursed to women and youth.

SERvICE CONSTRUCTION AGRICULTURE RETAIL MANUFACTURING

in funding wasapprovedR139

R83m DISBURSED

2,007 JOBS WERECREATED

MILLIoN

Ukukhuthazwa korhwebo kuye kwancedisa ekuziseni ibhiliyoni eyi-1,7 yeerandi kwimveliso ezithunyelwe kwamanye amazwe.

QUALITY BUSINESSES HELP CREATE JOBS, IMPROVE ECDC’S SUSTAINABILITY

DIVERSIFICATION OF EASTERN CAPE ECONOMY CONTINUESLOANS SPREAD ACROSS

45% 24% 13% 8% 5%

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• Loans above R1 million granted – 51.2%• Below R500,000 – 42.2%• Above R500,000 but below R1 million – 6.6%

BUSINESSES SUPPORTEDIN PRIORITY SECTORS

BUSINESS REGISTRATIONS

MILLIoN TURNOvER OF CREATIvE & ICT INDUSTRY

SMME TRAINING & CAPACITY BUILDING SESSIONS

PARTNERSHIPS WITH OTHER AGENCIES THAT SUPPORT SMME DEvELOPMENT

293

5,541

R8.5

1,183

7,017

I-ECDC incedisa ekukhuliseni isityalo esitsha ephondweni i-bamboo nasekudityanisweni kwaso kwi-Industrial Policy Action Plan yoMzantsi Afrika.

ENTREPRENEURS BEGIN TO TAKE LONGER TERM VIEWSON PROJECTS

SUPPORT IS TRANSLATING INTO MORE ENTREPRENEURIAL ACTIVITY

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For example, the funding for infrastructure invested by the province to support the PG Bison chipboard plant, coupled with the investment into the Ugie/Langeni road, has resulted in saving the Langeni sawmill operation. This is due to the large logs coming down from PG Bison and chipping material going up from Langeni to Ugie.

There is a strong recovery in the automotive sector across the major OEMs. The year was characterised by significant investment in the aquaculture cluster at the East London Industrial Development Zone (IDZ). There is also growing interest in the Eastern Cape aquaculture sector from Asia. The majority of the R613 million facilitated in investments was in the automotive sector, followed by aquaculture, agro-processing, general manufacturing and renewable energy. This is a marked difference from the previous year, which was dominated by investment in tourism.

The Eastern Cape remains an attractive and competitive investment destination with South Africa placed in the top 25 for global competitiveness. The reworked Automotive Production and Development Programme incentive has ensured that South Africa’s automotive sector, dominated by the Eastern Cape, remains globally competitive and relevant.

ECDC is also actively promoting the film sector as an emerging area. There is a strong focus on skills development and training in the film sector for emerging producers in pre and post production. ECDC has invested about R500,000 in pre- and post-production equipment for local producers.

During the review period, ECDC targeted those sectors of the economy that had the potential for long-term growth. Despite delayed investment decisions, the corporation succeeded in attracting quality investments, which led to the facilitation of creation of new jobs and saving of existing jobs.

Quality investments,

MORE JOBS,KEY SECTORS

I-ECDC iphumelele ekuzisezi utyalo-mali lomgangatho ophezulu, nto leyo iye yadala imisebenzi emitsha, yonga nebihleli ikhona.

Eastern Cape takes lion share of NERSA applications

The Eastern Cape captured the majority of the successful wind farm applications in the first round of the National Energy Regulator of South Africa (NERSA) assessments – five projects, totalling 469 MW, were successful. ECDC has been instrumental in supporting these (and other renewable energy projects) since their initial investigations in the province.

ECDC helps secure 2,000 fishermen’s livelihoods

ECDC’s high-level intervention at the national Department of Agriculture Fisheries and Forestry (DAFF) resulted in the livelihoods of more than 2,000 seasonal fishermen being safeguarded after delays by the department at the beginning of the catching season for East Coast Rock Lobster. The first marron (freshwater crayfish) from the province was sold locally and ECDC is assisting a producer to break into the export market. Furthermore, the province continues to lead production in marine finfish in South Africa with 100% of national production coming from the Eastern Cape.

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More traders look abroad for growth

With the assistance of the Dti, ECDC pursued export promotion during the review period as a crucial tool to lure locals into exporting. This has resulted in a growth of the number of SMMEs registering for export business.

Through trade missions to China, ECDC created opportunities for the province’s SMMEs to exhibit 15 products in China for a year. The products include foods, beverages and creative products made from mohair and bamboo products.

There has also been growth in the number of Dti incentives accessed by local traders. Traders have begun to tap into incentives and partnerships with the Nelson Mandela Bay Metropole’s Tradepoint, for example, which helps create awareness of the export business. The finalisation of the provincial trade promotion strategy has clarified the roles of the various arms of government in boosting trade and increasing competitiveness.

ECDC has also pursued Africa as a growth market for SMMEs and has embarked on missions targeting the Southern Africa Development Community and beyond to grow the local export presence.

ECDC continues to encourage local businesses to take advantage of the solid economic growth in a number of African states.

Bamboo crop begins to put down roots

ECDC initiated and facilitated the bamboo symposium, which was a “launch pad” for the province’s bamboo project. The symposium attracted local and international delegates. It was addressed by international experts in the field, as well as the South African Consul General in Hong Kong and the Eastern Cape MEC of Economic Development, Environmental Affairs and Tourism. This resulted in three bamboo planting sites (Uitenhage, Ndakana and Centane) and another two value-addition projects (Chintsa and Ndakana) being facilitated. It has received significant interest from parties in other parts of South Africa. ECDC is also coordinating an event for the South Africa leg of World Bamboo Day on 18 September 2012. Further, ECDC assisting in establishing South Africa’s national bamboo body.

Lower Saxony cooperation continues

ECDC participated in a joint mission, led by Premier Noxolo Kiviet, to Germany’s State of Lower Saxony. The mission, which included business and other high-profile stakeholders, helped strengthen the province’s participation in the annual Hannover Faire. ECDC hosted a large group of SMMEs that exposed their products to the German market.

Indima edlalwe yi-ECDC isebenzisana ndawonye ne-AsgiSA EC* kwiNkxaso-mali yebhanki yoPhuhliso eyiDevelopment bank of Southern Africa nejongene nokudalwa kwamathuba emisebenzi, ibeneziphumo zokuba kuvunyelwe ukuba imali ezizigidi zerandi eziyi 175 (R175m) zikhutshwe phantsi kwimiqathango ethile, mali leyo elungiselelwe uphuhliso lwamahlathi kunye nemveliso yamaplanga.

R266 million for forestry, timber

ECDC participated in a joint application with AsgiSA EC* to the Development Bank of Southern Africa (DBSA) Jobs Fund that resulted in conditional approval of R175 million for forestry and timber development. A further R91 million for grain and horticulture development within the eastern part of the province was approved. ECDC facilitated the development of a business case and model for the establishment of an agro-industrialisation initiative to be located at the corporation. The corporation also facilitated the appointment of project managers that would ensure the sustainable development of the dairy industry in the Libode/Port St Johns area.

(*AsgiSA Eastern Cape has been amalgamated into the newly established Eastern Cape Rural Development Agency.)

I-ECDC ikwazibandakanya neengingqi ezintathu zotyalo lwe-bamboo (etinarha, eNdakana nakuCentane) kwakunye nezimbini ezongezelelweyo (eChintsa nenye eseNdakana).

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ECDC continues to assist Nelson Mandela Bay Metropole’s development

The 1,000 hectare Royalston residential estate and private game reserve in the Nelson Mandela Metropole continues to roll out with ECDC’s assistance. Last year, ECDC was involved in the environmental impact assessment for the development.

Photographic exhibition success in 2012 Olympic city

This popular aerial photographic exhibition of the Eastern Cape, which depicts its scenic beauty and strategic investment infrastructure, enjoyed a 10-day sojourn in the Olympic city, London, in early 2012 and another two weeks in Bristol’s central tourist area. This was the first time that the four-year-old exhibition visited the United Kingdom. The exhibition enjoyed six months in Glasgow, with compliments flooding in from many keen viewers. The aim of the exhibition is to increase the number of tourists and foreign direct investment from the region into the Eastern Cape.

ECDC provides finance for Port Elizabeth-based soya oil cake manufacturerECDC is facilitating the financing of a manufacturer of soya oil cake for a Port Elizabeth-based company.

21 filmmakers get behind the camera

ECDC, in partnership with the National Electronic Media Institute of South Africa, has invested R336,000 in 21 aspiring filmmakers from various districts in growing their post-production skills. Another six young people were involved in year-long training, which was conducted in partnership with the multi-award winning Big Fish School of Digital Filmmaking in Cape Town.

The Eastern Cape Community Television feasibility study has been completed with stakeholders across all districts supporting the project. The roll out is to take a phased approach by focusing on developing sufficient local content and the requisite skills to ensure the initiative’s sustainability.

Coega call centre creates 255 jobs

Financial services provider Discovery Health’s Call Centre, based at the Coega IDZ, is to be boosted to the value of R2.5 million from the Eastern Cape Industrial Job Stimulus Fund. This will lead to the creation of 255 jobs.

lo mboniso wemifanekiso wePhondo leMpuma Koloni usahamba phambili kwiindawo ngeendawo.

MORE FOCUSEDinvestment

PROMOTION

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PROMOTING INVESTMENT

We promote the investment potential of the province by supporting new and existing investors at no cost by:• Identifying business opportunities in key sectors• Facilitating and financing joint ventures• Accessing investment incentive schemes and local business service networks• Creating access to a diverse portfolio of available land and buildings• Facilitating corporate relocations and aftercare services• Lobbying provincial and national government for relevant interventions.

EXPORT OPPORTUNITIES FOR LOCAL MANUFACTURERS

Our Trade and Export Promotion service focuses on the development of exports from Eastern Cape companies. This value is realised through:• Our years of experience in trade finance that has assisted local enterprises in penetrating global markets• The trade linkages created between local enterprises and our trade contacts in sub-Saharan Africa and the BRIC countries (Brazil, Russia, India and China)• Our partnerships with the European Union and United States that provide a platform for trade with developed markets.

Contact our Investment promotion services at +27 (0)43 704 5600 or +27 (0)41 373 8260

NEW PRODUCT DEVELOPMENT

Together with Eastern Cape communities and municipalities, we help develop and implement projects that create new opportunities or markets. We are well-disposed to markets that:• Unlock economic potential in low-income areas• Implement broad-based black economic empowerment through public-private partnerships• Create and save jobs in declining sectors and distressed enterprises.

I-ECDC, ibambisene noomasipala nabahlali beMpuma Koloni, inceda ukuqala nokuqhuba iinkqubo eziveza amathuba amatsha nentengiso.

REAL INvESTMENT. REAL TRADE. REAL

oPPoRTUNITy.

REAL OPPORTUNITYREAL INVESTMENT...

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