Investgeorge GEORGE, GARDEN ROUTE, WESTERN CAPE #Investgeorge INTRODUCTION GEORGE: ECONOMIC SNAPSHOT

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#InvestGeorge GEORGE, GARDEN ROUTE, WESTERN CAPE #InvestGeorge INTRODUCTION GEORGE: ECONOMIC SNAPSHOT

. City GDP: ZAR 15 972.8 million . 39.8% of the Garden Route GDP . GDP Growth rate 3,7% (2005-2015) . 0.7% of the Western Cape Province GDP COMPETITIVENESS

. Clean audit report for the past five consecutive years - 2015 IMFO Award for Clean Audit

. Ranked 18th Nationally and 15th Provincially “GGA’s Government Performance Index”

. 2014 - Municipality of the Year (Planning and Service Delivery Section) by African Utility Week

. 2017 - Award for Best Internal Waste Water Laboratory; for Waste Water Treatment Works

. 2015 - Outstanding Achievement for the Most- Improved Municipality for Leadership, Compliance, Institutional Arrangements and Public Participation

. 2015 - Outstanding Achievement for the GO GEORGE project as Innovative Project COST OF DOING BUSINESS IN GEORGE

Cape Town Port Elizabeth Indicator . Cost of living in Cape Town (South (South Africa) (South Africa) Africa) is 22% more expensive Food -23% -14% than in George (South Africa)

Housing -49% -23% . Cost of living in George (South Africa) is 9% cheaper than in Port Elizabeth Clothes -23% -7% (South Africa) Transportation + 7% -0%

Personal Care - 8% -4%

Entertainment -9% +3%

Total -22% -9%

Source: Expatistan Cost of Living Index between cities(2017) A GREAT PLACE TO LIVE, WORK & PLAY

. Sixth oldest city in South Africa, referred to as the capital of the Garden Route

. Popular holiday destination, conferencing destination, the administrative and commercial hub of the Garden Route;

. Seven Educational Institutions incl. one university with strengths in business, IT, Wood technology and Law;

. Known for its unparalleled growth and investment potential.

. Ideal for outdoor adventure all year round include: fishing, hang-gliding, diving, water skiing, cycling, canoeing, climbing, sailing, windsurfing and surfing. CREATING AN ENABLING ENVIRONMENT THROUGH BR&E PROCESSES EASE OF DOING BUSINESS

. Applied “Project Simplify” to address red tape and improve the ease of doing business through process optimization. Inadequate regulatory and business support environment . Two (2) business-facing services Building Plan approval and SCM Procurement Process, (15) recommendations 1 IMPROVE GOVERNMENT- for improvement developed, i.e. innovation BUSINESS INTERFACES & INTERACTION . Cloud based Building Plan (+ land-use) Application Portal – Collaboration Extension 2 Whole-of- . Increase hardware support requirements (i.e. # of IMPROVING THE BUSINESS organisation SUPPORT ECO-SYSTEM tablets devices – real-time data - reduced hard copy approach reporting, still meet municipal requirements.

. An opportunity exists to implement the use of digital 3 IMPROVE BUSINESS-FACING signatures. SERVICES IN TERMS OF . Accelerate lobbying with national around a sound PROCESSES & LEGISLATION business case to amend the thresholds “financial brackets” 2019 . Pilot the e-tender system being developed by Bytes – Improved Ease of Doing Business final stage of development and testing. INDUSTRY PERFORMANCE INDUSTRY PERFORMANCE

Manufacturing Sector Gross Value Added (GVA) Contribution per Sub-Sector for 2016 (basic prices, %) AGRICULTURAL COMMODITIES PRODUCED

Potential commodities that prove to hold positive economic and investment prospects for the near future; Mixed Vegetables - onions, cabbage and brussels sprouts - contribute to 8.3%, 8.8% and 59% of the total Western Capes production respectively;

Honeybush herbal tea - 40% of honeybush exported to Germany, 14% to the United Kingdom and 13% to the Netherlands;

Essential Oils – app. 300 different oils for different purposes - production focuses on i.e. citrus, lavender, bhuchu and khakibos, all of which are popular on the global market;

Strawberry & Blueberries - consumed as fruit, used as products for juice, jam, yoghurt, preserves and liqueur. 2015 over 1400 000 Kgs of blueberries exported;

Macadamia Nuts - rich source of Vitamin A, iron and protein - large scale chain retailers; Spar, Pick 'n Pay and Woolworths;

Hops Farming- 424 hectares of hops growing in the George - 735 tonnes is for SAB and the local craft industry and 120 tonnes is exported into Africa, primarily for SAB beers;

The City advantages in producing these goods, with accurate support, investment into farming and producing commodities will be beneficial for local, global and domestic sphere. EXPORT AND IMPORT PROFILE

The City exported between 86% and 100% each of George accounted for 19.53% of the Eden Coal, Building materials, Dairy products, Footwear, District’s exports in 2017, with annual Electricity distribution and control equipment, Motor growth of 14.55% between 2007 and 2017. vehicles and Parts and accessories.

In 2017, George imported 100% of the total Fishing George Global Export Regions 2016 products amongst all municipalities in the Garden 0 Route. 13,13 George`s annual growth In Exports, 2006 - 20016 100%

80% 12,12 Africa 60% Americas

40% Asia Europe 20% 6,6 Oceania 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 67,3 -20%

-40%

-60% Source: Quantec 2017 Source: Quantec 2017 GEORGE PARTNER WITH THE WORLD

City of Tacoma, Washington State - Exchange of cultural diversity and knowledge and more… GARDEN ROUTE’S SERVICES HUB

. Largest economy in the district, contributing 39.8%

. 3.4% growth in finance, insurance, real estate and business services (2011-2016 )

. The city’s GVA grew by an average of 3.1% between 2015 and 2016, on average growing 0.4 percentage points faster than the Eden District’s economy

. Five major South African banks (First National Bank - Wealth, ABSA, Standard Bank, Nedbank and Capitec Bank);

. Top insurance companies i.e. Old Mutual Brokers, Santam, Metropolitan, Alexander Forbes, and Sanlam have branches in the city. THE ECONOMIC LANDSCAPE

WE HAVE…WE ARE…WE SERVICE: . Reliable public transport linkages in and arround the city; . Scenic beauty and natural sights that attract international visitors which make the city globally recognisable; . A service-driven economy with established business culture Foreign Direct Investment and clustering of financial institutions; . Large agricultural surroundings and agro-processing activities, . Strategic location and positioned on the N2; . Excellent infrastructure that compares well to any first-world city; The City attracted Builders Warehouse (Mass Mart . Well functioning Business Chamber and Partnerships; United States) investment from 2013 worth around . Various excellent estate agents and business brokers active in ZAR300m creating 194 jobs George. EMERGING LEADER FOR TECH – INVESTMENT IN THE GARDEN ROUTE

. The City’s ICT industry deployed 92 km of fibre infrastructure to the value of ZAR 21 million – ISPs incl. Dark Fibre Africa (DFA), Neotel, MTN, BBI and Fibrehoods (in process) Cloud Connect;

. 50 ICT suppliers, - . Software Development; . Web hardware & graphic design; . Training and Incubation; . Hardware manufacturing; . Professional services (consulting, project management), and

. Business Process Outsourcing (BPO) . Merchants – Asda, iiNet and EE provides customer relations management source market is the United Kingdom; . Solluco –Customer Relations Management (and supply chain management services) and their source market is the United Kingdom; . Oakhurst Insurance knowledge processing outsourcing and their source market is South Africa. A POWERFUL SKILLS PIPELINE AND GRADUATES

Seven educational institutions with strengths in business, law, forestry etc.: . Nelson Mandela University (NMU); . postgraduate studies with a strong sustainability focus. . University of South Africa (Unisa) . South Cape College (TVET – 6 056) . Rundle College . Boston City Campus & Business College . Africa Skills Village & # of private colleges. . Skills Development based on extensive industry demand SKILLS PIPELINE AND GRADUATES

…continued

City’s graduates in 2017, . 37% obtained Honours degrees . 36.6% completed Higher degrees (Master’s and Doctorate).

……continued Between 2014 and 2016: . Total number of schools in George – 51 . Total number of schools with libraries – 30 . The proportion of no-fee schools in George dropped to 68.6% in 2016 from 70.6% in 2015.

KEY INCENTIVES - GEORGE MUNICIPAL FINANCIAL INCENTIVES Incentive Focus . Urban Development Node . Investments made in new developments in specific . Industrial Development geographical areas within the urban edge Node . Discounts on rates and services . Special Development Node . In terms of sale, discount can’t exceed 25% of the cost of land . Discount on land purchases . Discounts to approved investors on the lease or sale and rentals of council-owned land . Access to land . Rental discounts may also be applicable to municipal land where the rental is for 10 years and longer . Rebate on building plan . 50% discount for designated developments approvals . 25% for non-designated developments within zone . Capital contributions . Phased payment (5 years) KEY INCENTIVES - GEORGE MUNICIPAL NON-FINANCIAL INCENTI VES Incentive Focus . Building plan approval for designated developments within 96 hours (weekends and public holidays excluded) Administrative assistance . Pre-approved development rights for designated developments . Guaranteed access to adequate utility services . 3 months for (completed) land-use applications . Regularly updated spatial and economic Real-time economic data performance data and information Skills Development and . Access to skills development and innovation Innovation opportunities

Dedicated Investment . Single point investment facilitation function Promotion team LAND (INDUSTRIAL) PORTFOLIO

. Several vacant , zoned and serviced industrial properties available.

. Precincts is strategically located close to the railway line in order to facilitate rail freight.

. ±7 509 684,60 hectares of incentivised municipal- owned land available for development.

. Close proximity to N2 highway intersection, Airport, attracting industrial and commercial investments

. Includes zone for the noxious industry , hub for manufacturing green tech (Science & Tech) Industrial Park) .

. New sub-regional industrial node in proximity to the N2 and airport, targeted at Garden Route manufacturing, freight, logistics, and service industries . CITY OF GEORGE DATA & DIGITAL PROGRAMMES Smart City Offerings Smart Solution

. Online Building Plan & Land Use Support education to enable Application residents to successfully leverage . Mobile App e-Services technology . Wi-Fi Public Access Point Programme (e-Centres) . The City is committed to . Open Access Wi-Fi Programmes increasing the public's access to . Waste to Energy/ Bio-Gas datasets generated and collected by its departments . Encourages citizen engagement with the City government Promote the production of tech . Enables use of data for IT- enabled services and knowledge- entrepreneurs, property enhanced products developers and social organisations Drive Broadband usage by making more citizen-facing Expand the availability of services available on digital Broadband is a catalyst affordable highspeed internet platforms access in the City and the Garden Route WORLD -CLASS INFRASTRUCTURE WATER SUPPLY . 96% Best potable water in the Garden Route - Blue Drop Water Certification . The water is treated according to SANS 241 . The capacity of the bulk resources is sufficient to sustain growth until 2030 . George has won several awards for excellence in the treatment and provision of clean and safe drinking water: . Best Waste Water Pond System . Best Internal Waste Water Laboratory category . Best Water Treatment Works with a Design capacity less than 10 Ml/day Continue….. WORLD -CLASS INFRASTRUCTURE WATER SUPPLY

……continued . Investors have access to clean, potable water that is adequate for both agricultural and industrial use;

. Recent developments include the construction of a 12.5 million litre reservoir, as well as the expansion of a telemetric system.

. R54 million spent on water infrastructure development and maintenance in the 2017 financial year. WORLD -CLASS INFRASTRUCTURE WASTE MANAGEMENT

. Several innovative waste management initiatives manage hazardous oil, batteries, used tyres and E-waste;

. ±3120 tons of waste (about 140 tons per day) collected pm

. Garden waste is composted and builders’ rubble crushed and recycled.

. At least 1000 cubic metres of green waste removed (private contractor) and household recycling done by means of a blue bag system.

. Well developed Green infrastructure incl. natural open spaces and systems, nature reserves, biodiversity networks, parks, rivers, wetlands and the coastal line;

. PPP arrangements – George Biomass Plant R300m (8.39 MW Project) WORLD -CLASS INFRASTRUCTURE ELECTRICITY

. World class vending systems

. Call Centre in place

. Compliance with NRS 047/8

. Refurbished LV, MV and HV networks meets demand - 30 years ahead

. Renewable Energy and Energy Efficiency programme - supports renewable energy projects such as the 750kW PV project at George Airport

. City invested R20.4 million in electricity infrastructure development and maintenance in the 2017 Financial Year

. A 25MVA transformer for the George sub-station has been commissioned.

GEORGE: BEST AIRPORT IN THE GARDEN ROUTE

One of six regional airports Handles more than 700 000 We have the infrastructure to land owned & operated by ACSA passengers a year larger aircrafts as and when need with the approval of the South Land size app 274 ha 357,580 arrivals 2015/16 – 367,207 in 2016/17 African Civil Aviation Authority Won the South African (SACAA) Airport of the Year award six 361,301 departures 2015/16 – We have sufficient fire tenders for times 371,434 in 2016/17 the upgrade 308 vehicle parking bays A designation hub for cargo Planning has commenced for the 6 Aircraft bays – flowers, fish, oysters, herbs revamp of the Departure Lounge and ferns 7 Car Hiring Companies on site to improve passenger experience Airport Service Quality – 4,1 out 200 square metres Solar plant in 69 permanent employees of 5 size it a cost of ZAR 16 million On-time performance – Total Asset Value ZAR 532 million Delivers 750kw power to the 84,4% airport INTEGRATED PUBLIC TRANSPORT NETWORK : GO GEORGE

. GIPTN is a remarkable ‘flagship’ project. . Adopted a unique South African concept of infrastructure light design . GIPTN focus is on . achieving full rollout & incrementally refining & optimising operations . Improving the quality of supporting infrastructure, in particular, the pedestrian realm, and the extent that this involves the public & potential investors . Seek alignment of IPTN with ITP, the SDF & IDP, as well as partnership in the development of a more liveable & sustainable George . Seek future connectivity with surrounding areas inclusive of Oudtshoorn, Knysna and Mossel Bay. TRANSPORT SERVICES

Air . Over 700,000 passengers each year. . Q4 - 2017, passenger departures (102 956), – an increase of 3.06% Rail . Branch Line network in Eden mostly operational – George . 1 freight train per direction per day + . Luxury Train Operations - Outeniqua Power Van . 3 stations - Skimmelkrans (40km); Gwaing (45km); George (51.5km) Bus . The George Integrated Public Transport Network (GIPTN) is a project aimed at launching a new and improved public transport system for George and surrounding areas. . Single ticket on bus ZAR10.00 . Single ticket off bus ZAR9.50 . Multi-journey ticket (10 trips) ZAR85.00 A LIFESTYLE LIKE NO OTHER CITY OF GEORGE INITIATIVES

The City of George is home to several initiatives aimed at expanding its functionality, attractiveness and efficiency as an investment destination, including: . Extension of the George Airport to an international airport – Air Access project . Tourism and business hub – the Destiny Africa Ecosphere Project . Garden Route university/research institute/tertiary academy, including ancillary – projects are being initiated . Integrated Public Transport Network project (GO GEORGE), including Urban Design – projects have already commenced . Establishment of a Garden Route International Convention Centre . Light industrial, warehousing and logistics precinct . Innovation – Silicon Park Science and Technology project . Establishment of a resort for tourists at Gwaing River Mouth . Establishment of a call centre (hub)/Business Process Outsourcing . ICT incubator and broadband expansion . The establishment of an Agri-park. WHY DOES GEORGE NEED A BUSINESS BRAND?

The #InvestGeorge Brand is fundamental to the future development of our city and to the achievement of our vision to become A City for a Sustainable Future that supports big ideas and innovation.

It’s a place that enables growth by linking businesses to new insights, innovation, unlimited opportunities and smart solutions.

#InvestGeorge is a demonstration of the City’s commitment to creating a platform that contributes to the increased awareness, attractiveness and competitiveness of the city as a place, open for business.

Marketing collateral:

• Pitch decks (industry specific and generic) – completed, annual update • Investment Prospectus– completed, annual update • Digital Toolkit - underway • Video with investment narrative- underway • Innovative and memorable promotional Items- underway CONCLUSION If you’re not inspired, you’re not here.

We are a region with unlimited potential. This translates into unlimited opportunity. Whether you’re interested in travel, investment, filming or exports George and the Garden Route has something for you. Let the City of George, Wesgro, the official tourism, trade and investment promotion agency, the South Cape Economic Partnership (SCEP) and the Western Cape, help you uncover these opportunities. We’d like to welcome you into the City of George .