Why invest in the Eastern Cape?

Welcome To The Eastern Cape

Discover a land of opportunity, where a highly-developed first-world economy meets the huge potential of an emerging economy, and creates a dynamic investment environment. The Eastern Cape’s positioning affords it easy access to African and global markets through its sea, road, rail and air networks, and it has world-class commercial and industrial infrastructure, Apart from these advantages, the Eastern Cape also boasts more than 300 days of sunshine a year and an unsurpassed quality of life.

Why invest in the Eastern Cape Province of South Africa?

Both the South African national government and the Eastern Cape provincial government have adopted a wide range of policies to realise the potential of the country’s economy and provide an environment for export growth. Investment in large infrastructure projects and development of two Industrial Development Zones in the province are among the factors to consider. Perhaps our existing foreign investors state the reasons best:

'The Eastern Cape offers very efficient harbours, both for imports and exports, low input costs and access to major markets in the world.' - Willie van Wyk, Oelta / General Motors.
'One of the big advantages is having a very well established and very reliable independent labour force.' - John-Ross Smith, Johnson & Johnson.
'The infrastructure in the Eastern Cape is fantastic. The Eastern Cape is strategically in the right place in South Africa.' - Clive Mundow, Parrnalat.
'It was the best strategic decision that DaimlerChrysler ever took, to stay here in the Eastern Cape.' - Christoph Kopke, DaimlerChrysler

What The Eastern Cape Development Corporation (ECDC) Can Offer You

ECDC offers efficient investor support and facilitation, including:
Introduction to local business support services
Assistance with the regulatory framework
Assistance with processes such as visa applications
Financing and local joint venture partners
Strategic relationships with national and provincial governments
Diverse portfolio of available land and buildings
Two customs-secure, VAT-free Industrial Development Zones

For more information on ECDC's services, click here.

Incentives

The Strategic Investment Programme: tax credit
Small and Medium Enterprise Development Programme: 30% cash refund on capital
Foreign Investment Grant: up to US$3 million for qualifying projects
Skills Support Programme: three year cash grant for training
Motor Industry Development Programme: import rebates
Critical Infrastructure Fund: up to 30% of capital cost

For more information on incentives for investors, click here.

Some quick facts about the Eastern Cape

Major cities: East London and Port Elizabeth. Capital: Bhisho
Language: 83.4% isiXhosa, 9.3% Afrikaans, 3.6% English
Business language: English
Population: 7,140,000, 15.7% of SA
Area: 169,580 square kilometres – 14% of total South African area
Gross regional product: R88-billion (2003) – 8.1% of total South African GDP
Average GDP growth – 5.3% per annum
Major industries: Automotive and component manufacturing; agriculture; agro-processing; tourism
Average input costs:
- Salaries (per hour) - US$ 0.60 - US$ 7.00
- Property (per m²): Buy - US$ 1.80 - US$ 6.50, Rental - US$ 0.40 - US$ 3.30
- Electricity (per kW) - US$ 0.02 - US$ 0.025
- Freight costs to EU and Far East/USA: Sea (2Q ft container) – US $700/US$ 1 200
- Air (per kg) - US$ 2.00/US$ 3.00

For more information about the Eastern Cape, click here.

Some Opportunities

Automotive

Motor Industry Development Programme (MIDP) incentives
40% of South Africa’s auto industry is based in the province (DaimlerChrysler, VW, Ford engines, GM/Delta)

Agro and Food Processing