Tuesday, 7 July 2020] 134

No 47- 2020] SECOND SESSION, SIXTH PARLIAMENT

PARLIAMENT OF THE PROVINCE OF THE

WESTERN CAPE

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ANNOUNCEMENTS, TABLINGS AND

COMMITTEE REPORTS

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TUESDAY, 7 JULY 2O20

COMMITTEE REPORTS

1. REPORT OF THE STANDING COMMITTEE ON FINANCE, ECONOMIC

OPPORTUNITIES AND TOURISM ON AN OVERSIGHT VISIT TO

SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE.

The Standing Committee on Finance, Economic Opportunities and Tourism, having

engaged with the Saldanha Bay Industrial Development Zone Licencing Company SOC

Ltd (SBIDZ - LC) and Transnet on 9 March 2020, reports as follows:

Delegation

The delegation comprised of the following Members:

Baartman, DM (DA) (Chairperson)

Makamba-Botya, N (EFF)

Nkondlo, ND (ANC)

Van der Westhuizen, AP (DA)

Apologies

Mitchell, D (DA)

The Procedural Officer, Ms Z Adams, Senior Procedural Officer, Ms L Cloete, the

Service Officer, Mr A Barends, and the interpreter, Mr W Thala, accompanied the

delegation.

1. Introduction

The Standing Committee on Finance, Economic Opportunities and Tourism (the

Committee) had resolved to engage with the SBIDZ-LC at an oversight visit where the

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Committee could visit the Saldanha Bay Industrial Development Zone (SBIDZ), which

has been under development for the past few years. On 9 March 2020, the SBIDZ-LC

gave the Committee an overview of the SBIDZ, an update on the infrastructure progress,

a briefing on the Artisan Training Programme, and a brief description of legislative

concerns they have experienced in the sector.

The Committee was also taken on a tour of the SBIDZ where Members were shown the

port land area, the Access and Security Complex and sites where SBIDZ businesses

were under development. The Committee was introduced to business owners whose

buildings/facilities were under construction or being renovated.

During the second session of the day, the Committee was briefed by Transnet officials

on Liquefied Natural Gas (LNG) infrastructure, LNG collaborations in the Western

Cape, and legislative concerns experienced by the entity.

2. Briefing by the Saldanha Bay IDZ Licencing Company SOC Ltd

The SBIDZ-LC informed the Committee that the SBIDZ is the first Southern African

Special Economic Zone (SEZ) to include a port, and to secure land from Transnet

National Ports Authority (TNPA) consisting of 356 hectares. The SBIDZ would serve

as a special hub dedicated to the Oil and Gas Industry and the Marine Repair and

Fabrication Cluster. The goal is to shape a vibrant marketplace where investors, local

businesses and communities can unlock economic growth. The SBIDZ-LC’s vision is

to be Africa’s premier oil, gas and maritime industrial and services centre, offering a

world-class integrated engineering, fabrication, logistics and freeport environment to

zone users and tenants.

In order to achieve the above, the SBIDZ-LC must promote, manage and market the

zone, acquire and lease land, provide internal infrastructure to support investors in the

zone areas, and facilitate the ease of doing business in the zone. The SBIDZ-LC partners

with a number of local, provincial and national stakeholders in order to do so.

2.1 Local Positive Market Factors

In terms of marketing to investors and potential businesses, the following factors are

noted:

2.1.1 South Africa is on one of three global trade routes (Suez, Panama and Africa);

2.1.2 The Port of Saldanha is within one day of the Africa global trade route;

2.1.3 The Port of Saldanha is the deepest and largest natural port in the Southern

Hemisphere;

2.1.4 It is close to developed and undeveloped land;

2.1.5 30 000 vessels sail through South Africa’s waters annually; and

2.1.6 89 percent of the total workforce in repair and maintenance are from the Western

Cape.

2.2 Importance of the Saldanha Bay Industrial Development Zone for Growth

A joint study was undertaken by the Saldanha Bay Municipality (SBM) and the SBIDZ-

LC to understand the impact of the current economic fabric, the SBIDZ and economic

“shocks”. The study showed that the SBIDZ counters the negative growth and job losses

of the metals products and equipment sector. Growth of the SBIDZ will mean growth

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for the financial, insurance and business services sector, the transport, storage and

communications sector, the construction sector, the metals, products and equipment

sector, and other sectors comprising of electrical machinery used during construction

and transport equipment.

2.3 Strategic Priorities

The SBIDZ-LC has identified four strategic priorities:

2.3.1 Commercial sustainability, as being financially fit reduces the public fiscal

burden;

2.3.2 Investment in catalytic infrastructure and facilities, as companies need

infrastructure to build their businesses;

2.3.3 Local and industry readiness, which takes time. The SBIDZ-LC is building a

Small, Medium and Micro-sized Enterprises (SMMEs) CoLab to assist small

businesses; and

2.3.4 Building business, government and society partnerships.

The strategic priorities will allow the SBIDZ-LC to build a world-class, seamless zone

and port centre, meeting Africa’s maritime and industrial needs, and to achieve South

Africa’s re-industrialisation, growth, jobs and transformation priorities.

The SBIDZ’s seamless zone and port experience will be modelled after Singapore’s

Keppel offshore and marine facility (shipyard) that will include building, repairing and

recycling all types of vessels, manufacturing, engineering and repairing all types of

components, processing and refining all types of consumable products, a headquarters

for logistical services, diverse people offering solutions for all needs, and processes that

will reduce red tape and encourage an ease of doing business approach.

2.4 Progress: Infrastructure Projects

The Department of Trade and Industry’s (DTI) has funded all of the SBIDZ-LC’s capital

expenditure to date and will play a pivotal role in assisting the Entity to achieve its

priorities over the next five years. So far, over R200 million value has been created for

local construction companies.

Additional upgrades include a fully serviced north precinct, construction of a bridge,

various upgrades and new builds to municipal infrastructure completed and transferred

to SBM, construction of the south east precinct and access complex that is still in

progress, and the construction of a top-side facility for a tenant that is still in progress.

2.5 Skills Programme and the Innovation Campus

A total of 2 199 individual training opportunities were created by the SBIDZ-LC since

the 2014/15 financial year. This includes 1 695 local Saldanha Bay community members

that enrolled in the training programmes, and who were vetted by the Community Skills

and Training Committee. A total of 1 495 individuals completed the training, which

indicated an 85 percent pass rate. The Skills Programme included training for welding,

boiler-making, fitting, electrical work and rigging. Learners who did not meet the

requirements for entry into the apprenticeship programmes were accommodated through

the SBIDZ-LC’s skills programme, which enabled them to meet the minimum

requirements for learnerships or apprenticeships.

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The SBIDZ-LC’s High School Engagement Programme is in partnership with the

University of Stellenbosch, Wits University and the Western Cape Education

Department. The goal is that the programme will become the bridge that will connect

the Saldanha Bay communities to the SBIDZ-LC’s Innovation Campus, which will

develop the next generation of the workforce needed for the industry, and transform and

align the Saldanha Bay community to future possibilities of the Oil, Gas and Metals

Industry. The SBIDZ-LC has been targeting six public high schools and three public

primary schools across the Saldanha Bay area for implementing a new curriculum in

Mathematics and Personal Leadership to strengthen local capabilities for innovation.

Phase 1 of the project, which focuses in teacher development (training the teachers to

teach the new course) will be rolled out in the near future. Phase 2 will focus on learner

development, which will be rolled out for the remainder of the year.

3. Observations made at the Site Visit to the Saldanha Bay Industrial

Development Zone

3.1 On the way to the SBIDZ site, the Committee travelled on a provincial road that

was upgraded by the Department of Transport and Public Works. The upgrades

were financed by various provincial departments. There are a few more upgrades

to be completed within the SBIDZ, therefore, the SBIDZ-LC is ensuring that the

affected provincial departments are budgeting appropriately.

3.2 The port land area of the SBIDZ was from land purchased from the Industrial

Development Corporation. Provincial government gave the SBIDZ-LC R100

million to purchase the land. The land is ready for investors to set up their

factories.

3.3 The first tenant, a company called West Coast Corrosion Protection, is in the

process of constructing their facility within the SBIDZ. The businesses is 100

percent black-owned. The owners of the business, Mr Charles Arendse and Mr

Nathan van der Westhuizen, are local members of the Saldanha Bay community,

who specialise in corrosion protection, mostly on structural steel. Their goal is

to add value to the SBIDZ as they are the only business who specialises in

corrosion protection within the SBIDZ. Currently, the business employs 25

people; however, once the facility is complete, they will employ an additional

35 local workers from Saldanha Bay. The company will train the employees so

that they are able to provide for their families. The owners have leased the

property from SBIDZ-LC for 25 years, with an option to lease for another 25

years after the initial lease agreement comes to an end.

3.4 The majority of the businesses located within the SBIDZ will be South African-

owned businesses, however, there will also be a few international businesses.

These businesses will lease the property from the SBIDZ-LC, as the Entity

controls the land according to legislation.

3.5 The Access Complex, which is still under construction, will be the access point

to the zone, and will contain a customs control area. This is where security

checks will take place. Additionally, the Access Complex will be a one stop shop

for all services that investors will need. The space will also include office space,

a clinic and a canteen. Businesses that occupy a space within the Access

Complex will enter into a rental agreement with the SBIDZ-LC.

3.6 The SBIDZ-LC has been engaging with public entities through the DTI to

explain that all relevant national departments and entities should be represented

at the Access Complex to ensure ease of doing business for all investors and

businesses coming to the SBIDZ.

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3.7 The SBIDZ-LC’s goal is to have 75 percent occupancy at the Access Complex

within the next five years. The Entity hopes to complete the construction of the

building in mid-April 2020. The Access Complex has been under construction

for approximately 18 months because the SBIDZ-LC has tried to localise the

work as much as possible, without compromising on quality.

3.8 Saldehco, a privately-owned Singaporean and South African company located

in the SBIDZ, spans over 20 hectares and was established as a special purpose

vehicle focusing on providing a marine service cluster to serve the oil and gas

activity off the coast of West Africa in the Port of Saldanha Bay. This service

was part of a concession issued by Transnet. The company will provide a vital

service for the offshore gas and mining sector; it will serve as the first privately

operated offshore supply base in South Africa. Saldehco will occupy offices

previously owned by Transnet, however, these offices are in the process of being

renovated. The company plans to build additional infrastructure and two

warehouses on the land, however, these plans still have to be approved. In the

meantime, Saldehco plans to move some of their services offshore until the land

is ready for development. The company hopes to complete infrastructure

construction by 2022.

4 Challenges identified by the Saldanha Bay Industrial Development Zone

Licencing Company SOC Ltd and Tenants of the Saldanha Bay Industrial

Development Zone

4.1 13 000 vessels dock at South Africa’s ports annually; however, only five percent

of these vessels are serviced locally.

4.2 Although the marine and subsea fabrication and manufacturing sector, as well

as the specialised logistics sector, are fairly established sectors, the Province is

still in need of a more developed rig, equipment and vessel fabrication and repair

sector in order to complete a value chain that will allow the Province to receive

the full opportunities offered by the oil and gas industry.

4.3 The SBIDZ shares health, safety and security services and facilities with the

TNPA. This includes one fire station to service the entire area.

4.4 There is a skills gap in the Oil, Gas and Metal Sector due to the large number of

imminent retirements, less young talent entering the industry, the changing skills

profile and needs due to the Fourth Industrial Revolution, and the chronic

shortage of women in the sector.

4.5 The SBIDZ-LC’s 2019/20 target performance for learner training will be

negatively impacted by the closure of ArcelorMittal South Africa (AMSA).

AMSA’s closure will impact on local engineering companies and training

service providers who host students for the workplace experience component of

the Entity’s training programme. The SBIDZ-LC’s performance for its training

programme will be impacted further by the delays with the implementation of a

new National Skills Development Management System. The Manufacturing,

Engineering and Related Services Sector Education and Training Authority

(Merseta) system has experienced Information Technology challenges since July

2019, which meant learners were unable to be registered and therefore no

payments could be made to training service providers.

4.6 There is a lack of regulatory processes in South Africa for the Oil and Gas

Industry. Additional concerns within the industry, cited during stakeholder

consultations, include corruption, poor physical/supporting infrastructure, and

relatively long waiting times for crucial processes for setting up businesses.

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4.7 As the SBIDZ grows, the town of Saldanha Bay will also grow, which means

there will be a need for more transport infrastructure will. There is a concern

about what the transport solution will be to address this growth in the future.

4.8 According to Mr Arendse and Mr van der Westhuizen, owners of West Coast

Corrosion Protection, many businesses coming to the West Coast did not want

to support local businesses as they were told they did not have a proper facility

and/or enough experience. This was inaccurate, however, many chose to give

their business to companies in Cape Town instead. Saldanha Bay businesses

were also told to charge less money than businesses in Cape Town but this was

not fair to local businesses when the quality of work was the same.

4.9 Local Saldanha Bay businesses complained that the Construction Industry

Development Board (CIDB) grading was an impediment to entering the sector.

The SBIDZ-LC removed the CIDB grading requirement as an experiment,

however, this approach was unsuccessful as many businesses still experienced

challenges, and it was re-established that CIDB grading should remain a

requirement.

5 Briefing by Transnet on its Natural Gas Networks Programme

Transnet informed the Committee about the Transnet Natural Gas Networks (NGN)

Programme development of midstream infrastructure for Liquefied Natural Gas (LNG)

importation into the Ports of Richards Bay, Ngqura and Saldanha Bay, and the

transmission of natural gas to inland markets. Transnet’s goal is to lead the design,

construction, operation and maintenance of gas-to-market infrastructure, and to enable

development of the natural gas economy, lower energy costs and reduce carbon

emissions. The target date for landed LNG in South Africa is 2024, with LNG

importation and re-gasification by 2024, as well as enabling gas-to-power generation in

line with government’s Integrated Resource Plan from 2024. Transnet has been

initiating conversations with various private and public stakeholders to find technical

solutions to bringing LNG to the country.

Transnet serves a “midstream” role in bringing LNG into the country; they will focus

on ports, LNG terminals and gas pipelines, as well as storage of gas, re-gasification and

transmission of gas. Transnet and the Department of Economic Development and

Tourism (DEDAT) entered into a Memorandum of Cooperation in November 2018,

where the parties committed to collaborating in the support of the development of the

West Coast LNG Importation Opportunity. The objective was to secure funding from

the Infrastructure Investment Programme for South Africa, managed by the

Development Bank of South Africa. Recently, Transnet and the Independent Power

Producer (IPP) Office concluded a technical study for the Port of Saldanha Bay.

According to Transnet, except for PetroSA in Mossel Bay, most of the current gas

market is supplied by Sasol Gas, either from Mozambique or Secunda in Mpumalanga.

The rest of the country is using expensive alternative fuels such as diesel, Liquefied

Petroleum Gas (LPG) and heavy fuel oil, with no infrastructure. Transnet warned that

the gas provided by Mozambique will start declining in the near future. Total has

discovered gas offshore from the Western Cape, however, this gas will only be available

in approximately five to ten years.

Transnet has started to look at diesel-using power stations that can be converted to gas-

using power stations, as diesel is very expensive. It was reported that converting

Ankerlig Power Station in the Western Cape from diesel to gas would save the country

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approximately 600 million US Dollars per annum, however, the full economic benefit

will only be realised later. Currently, LNG is the cleanest fossil fuel, which would be

environmentally beneficial for the Province.

5.1 LNG Delivery Options and Cost Considerations

Transnet is considering the following two delivery options:

(i) Importing LNG through LNG iso-containers: This is the quickest delivery option

to South Africa. South African ports can receive iso-containers at multipurpose

terminals and container terminals. With this option, there are no regulatory

impediments to LNG imports, however, the cost of molecules at the destination

is high in iso-containers; and

(ii) Importing through LNG carriers to LNG receiving terminals: This could be done

through Floating Storage Units (FSU), land re-gasification, Floating Storage Re-

Gasification Units (SFRU) or onshore storage and re-gasification. However, this

requires regulatory approvals and demand scale for bankability. LNG loading

facilities and re-gasification at the ports will allow for the use of pipelines, rail

and road to transport gas to markets.

LNG receiving terminal development requires regulatory approvals, in particular,

Section 79 of the National Ports Act, 2005 (Act 12 of 2005), to drive these

developments, and Section 54 of the Public Finance Management Act, 1999 (Act 1 of

1999), for Transnet to form joint ventures with other State Owned Companies (SOCs)

and the private sector.

The least-cost solution for bringing gas into the country requires inter-port LNG delivery

optimisation. Gas is an enabler for industrial and electricity challenges faced by South

Africa. In order for the least-cost solution to work, it would require the development of

appropriate LNG receiving infrastructure and the coordination amongst SOCs and

government to plan the effective roll out of infrastructure.

5.2 Current Challenge

Currently, most of the LNG infrastructure is located on the East Coast of South Africa,

primarily because Sasol drove this infrastructure development for their industrial

requirements. The challenge, currently, is to ensure LNG infrastructure availability for

all gas users and for LNG development as a whole. Transnet wants to ensure that port

infrastructure, pipeline infrastructure and accessibility for rail and road transport is made

available for all gas users. The West Coast has not had this development over time. An

additional challenge is that most of the skills needed for management of gas is highly

concentrated in only certain parts of South Africa, particularly around Sasol

developments. The Western Cape Government has been looking into skills development

in this field, which requires a considerable amount of interaction with technical institutes

where people can learn skills related to the gas sector. Locally, this has not been

developed yet; however, it provides the Western Cape Government with the opportunity

to bring these skills in to the Province.

6. Resolutions

6.1 The Committee RESOLVED to:

6.1.1 Request a briefing from the Department of Mineral Resources, the Department

of Trade, Industry and Competition and the Department of Economic

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Development and Tourism on the regulatory processes for the oil and gas

industry, and any gaps therein, at a date to be determined by the Committee;

6.1.2 In addition to the briefing above, the Committee will also request that the

Minister of Mineral Resources and Energy on the recently released draft

regulations on energy and Independent Power Producers, that Transnet brief on

its regulatory concerns, and that Eskom attend the meeting as well; and

6.1.3 Request a joint meeting with the Standing Committee on Transport and Public

Works for a briefing by the CIDB on the challenges hindering contractors from

participating in complex projects and the application process for construction

tenders.

6.2 The Committee also REQUESTED the following:

6.2.1 A report from SBIDZ-LC on the support and funding for the development

programme led by Mr P Lakabane in the SBIDZ-LC, detailing whether there has

been any progress to date in terms of a funding model, also in terms of skills and

the transformation function;

6.2.2 The joint study that was undertaken by the Saldanha Bay Municipality and the

SBIDZ-LC to understand the impact of the current economic fabric, the SBIDZ

and economic “shocks”; and

6.2.3 The technical study conducted by Transnet and the Independent Power Producer

Office on the Port of Saldanha Bay.

The Chairperson thanked the SBIDZ-LC, Transnet and the ward councillors for availing

themselves to address the Committee.

2. REPORT OF THE STANDING COMMITTEE ON FINANCE, ECONOMIC

OPPORTUNITIES AND TOURISM ON AN OVERSIGHT VISIT AND

ENGAGEMENT WITH THE MITCHELL’S PLAIN CHAMBER OF

COMMERCE AND LOCAL BUSINESSES ON 18 FEBRUARY 2020.

The Standing Committee on Finance, Economic Opportunities and Tourism, having

engaged with the Mitchell’s Plain Chamber of Commerce and local businesses on 18

February 2020, reports as follows:

Delegation

The delegation comprised of the following Members:

Baartman, DM (DA) (Chairperson);

Mitchell, D (DA)

Mvimbi, LL (ANC)(Alternate)

Nkondlo, ND (ANC)

Apologies

Makamba-Botya, N (EFF)

Van der Westhuizen, AP(DA)

The Procedural Officer, Ms Z Adams, the Service Officer, Mr A Barends, and the

interpreter, Mr W Thala, accompanied the delegation.

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1. Introduction

The Standing Committee on Finance, Economic Opportunities and Tourism engaged

with local business owners at a workshop hosted by the Mitchell’s Plain Chamber of

Commerce (the Chamber), on 18 February 2020. The Committee and attendees were

welcomed by various founding members of the Chamber such as the Chairperson of the

Chamber, Mr Sean Achim, Councillor Elton Jansen, and “Like a Boss” programme

manager, Mr Howard Johnson.

Mitchell’s Plain covers 84 square kilometres of land in Cape Town, consists of over 40

suburbs, and is one of the biggest contributors to the economy in terms of retail spend,

residential investment and labour provision. In respect of businesses, Mitchell’s Plain is

home to many small businesses and informal traders who trade alongside major retailers,

providing critical employment opportunities for the members of the Mitchell’s Plain

community. There are more than 2 000 businesses operating from commercial hubs

within Mitchell’s Plain, and approximately 4 000 businesses operating from homes

within the area. These businesses are varied and range from software development

companies, lawyers and accountants, to plumbers and electricians.

The Chamber was established in 2016 because of the growing need to reimagine,

reinvent and rebuild the Mitchell’s Plain area. The Chamber works closely with many

Mitchell’s Plain business owners whose vision is to see Mitchell’s Plain as a thriving

economic hub, and essentially, as a “coastal city”. The Chamber’s “Vision 2076” sees

Mitchell’s Plain as a thriving community, with a vibrant tourism hub and strong

investment climate, a successful music and arts scene, a growing fish farming industry,

and hosting multiple international events.

The engagement was hosted at Cedar High School, a performing arts school in

Rocklands, Mitchell’s Plain, who showcased their varied talents in between briefings

and discussions.

2. The State of Mitchell’s Plain Address

The Committee and attendees were briefed on the mission, vision and history of the

Chamber, which includes creating ways to make conditions conducive for small

businesses in Mitchell’s Plain to thrive. Historically, Mitchell’s Plain was known for

gangsterism, crime and unemployment. However, this was an inaccurate description of

the majority of the suburbs in Mitchell’s Plain, which is home to vibrant communities,

businesses, cultural and sporting activities, and a variety of indigenous flora and fauna.

Places of interest in Mitchell’s Plain include Wolfgat Nature Reserve, Westridge

Gardens, Westridge Dunes and blue flag beaches such as Mnandi Beach and

Strandfontein Beach. Mitchell’s Plain also hosts a variety of events such as the

Mitchells’ Plain DSTV Festival, which attracts over 40 000 guests over a three day

period, and also results in a decrease in crime in the area over those days. Additionally,

there are cycling events that attract thousands of cyclists every year, such as the Tour

d’Plain, and running events such as the Mitchell’s Plain Titans race (running club).

2.1 Economic Contribution to Gross Domestic Product

Combined, Mitchell’s Plain and Khayalitsha contributed over R56 billion for the year

ended December 2016. In terms of Gross Domestic Product per Cape Town suburb, the

“Khaya/Plain” area contributes 15.9 percent, the second largest contribution after

Tygerberg (17.74 percent). The Chamber’s goal is to ensure that Mitchell’s Plain is the

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single largest contributor to the Western Cape’s Gross Geographic Product (GGP) by

2026. However, there are a number of challenges that need to be addressed for this goal

to be realised.

The Chamber is focused on reimagining Mitchell’s Plain as a “coastal city”, that could

attract foreigners in terms of yachting and sailing events. Aquaculture development is

key in this vision, as Mitchell’s Plain could be home to a thriving fish farming sector

that could contribute further to the Western Cape’s GDP.

Furthermore, the Chamber envisions that Mitchell’s Plain will become a major tourism

hub in the near future; however, this will require assistance from government. As this

vision becomes a reality, it will also require that there are 1 200 beds (accommodation)

available for tourists in Mitchell’s Plain.

2.2 Challenges identified by the Mitchell’s Plain Chamber of Commerce

2.2.1 There is limited to no spaces for community members and business owners to

meet, plan and collaborate.

2.2.2 There are no business developments, international call centres and insufficient

space for industrial parks to grow in Mitchell’s Plain. Additionally, there are no

Sector Education and Training Authorities (SETAs), and other government

entities located in the area.

2.2.3 There are no research, planning and coordination funds for a local tourism

information office, which Mitchell’s Plain is greatly in need of to encourage

growth in the tourism sector. The Mitchell’s Plain community requires a physical

and digital map that will display all the “must see” locations in the area, a website

that tracks events and places to visit, further development of events and services

that will attract international guests, partnerships with tourism bodies that will

assist with marketing Mitchell’s Plain as a tourism hub, and short courses aimed

at Mitchell’s Plain youth that will focus on teaching entrepreneurial skills,

performing arts, and how to attend to the needs of tourists. Once a tourism office

is established, there will also be a need for an official to project manage the

office.

2.2.4 There is no fibre or reliable internet access for homes or small businesses. Over

the last three years, the Chamber has brought free Wi-Fi to Mitchell’s Plain

Town Centre through collaboration with Cell C and Facebook, however, more

needs to be done to ensure the community has access to free Wi-Fi throughout

the area. This will also address the challenge of unreliable and expensive data,

which people cannot always afford.

2.2.5 Load shedding has had a negative impact on local businesses. Some businesses

have been forced to close operations for days because it is not viable for them to

remain open when the electricity is off twice a day. There is a need to discuss

the usage of alternative energy sources, especially for small businesses, as well

as the use of Independent Power Producers (IPPs).

2.2.6 There is a high rate of crime in certain suburbs in Mitchell’s Plain, which affects

the rest of the area.

2.2.7 There is a lack of support for schools, especially in terms of performing arts

programmes and sport activities. Schools such as Cedar High School lack

sufficient educators for the amount of learners enrolled at schools. Additionally,

performing arts schools such as Cedar High have to use their own funds to

purchase musical instruments for learners. There is a need for more investment

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in cultural and sport activities, especially in terms of competitions and exchange

programmes.

3. Engagement with Members of the Mitchell’s Plain Chamber of Commerce

and Local Business Owners

Mr Fazloodien Abrahams, an attorney at MK Attorneys, informed the Committee that

many people, within the Mitchell’s Plain community and outside of the area, especially

senior citizens, have been defrauded by Hajj and Umrah operators. Mr Abrahams called

for government to impose stricter rules and regulations for operators involved in

business activities in this industry. He urged the Committee to look at the South African

Hajj and Umrah Council (SAHUC), who are not the official regulators of the Umrah

and Hajj journeys. He reiterated that this is also a tourism issue, where there were many

instances of fraud and corruption.

Mr Cyril Williams, Head of Tourism at the Chamber, requested that certain tourism laws

and regulations be addressed, such as the regulations around obtaining a transport

permit. The process for obtaining permits for transporting tourists has been a tedious

process. It has been three years since Mr Williams applied for a permit, but has not

received anything yet, which means he cannot use his new vehicles. Mr Williams also

stated that there should be more focus on schools and young learners who need

intervention programmes that will allow them to thrive in and outside of Mitchell’s

Plain. Young learners should be encouraged to partake in performing arts, as this will

be in demand when Mitchell’s Plain becomes a tourism hub. Additionally, the

government should implement training programmes for school leavers to become tour

guides, thereby encouraging entrepreneurship and allowing community members to

become ambassadors for the area. Tourists should know about the history of Mitchell’s

Plain.

Mr Igshaan Carstens, founding board member of the Chamber and Chairperson of the

Strandfontein Business Development Forum, stated that the Committee and the rest of

the Province should view Mitchell’s Plain as a city, not as a suburb, as the area along

with surrounding areas has great potential for economic activity, particularly in the

tourism space, as well as in the aquaculture sector. Strandfontein was also included in

this vision. These are areas that have been neglected in terms of investment. He

reiterated the need for a tourism information hub and a tourism Small Enterprise

Development Agency (SEDA) in the Mitchell’s Plain area, as more tourism meant

increased revenue and employment. There should also be more focus on sporting events,

especially in Strandfontein, who already hosts various events. Strandfontein sports field

has been earmarked for the biggest drone event in the Western Cape. This will happen

later in 2020, and there is an expectation that the event will host approximately 50 000

to 60 000 people. This will be a big tourism opportunity for the area and members of the

community.

Mr Carstens further informed the Committee that he is also an electrical contractor by

trade. He asked that the Committee continue the discussion on the use of IPPs to address

the challenge of load shedding in the country.

Mr Hankie McMarston, member of the Chamber and Chairperson of the Khaya-Plain

Undertakers Forum, explained that this sector was not lucrative for small businesses as

there were a lot of similar, more commercial businesses vying for the same job.

Although Mitchell’s Plain is a large area, it does not have its own mortuary, which is a

concern. Additionally, there was very limited burial ground for Muslim and Coloured

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people. He wanted to encourage the use of smaller, local businesses instead of large,

commercial businesses.

Ms Marian Trout, a business owner and psychologist who resides in Mitchell’s Plain,

requested that government assist the community and schools with additional resources

and facilities for schools and sporting activities. There are no funds available for youth

that excel at sport. Funding was needed for youth that are selected to play sports

internationally. Ms Trout asked that there be more partnering between local businesses,

schools and government to ensure that there are proper facilities and sufficient capacity

so that the community is encouraged to participate in more sport codes. There are many

talented sportsman in Mitchell’s Plain, however, they need more investment at

grassroots level.

Ms Kennethia Williams, from Business Breakfast Club and a business owner from

Mitchell’s Plain, informed the Committee that initially she could not open a business in

Mitchell’s plain because there was too much crime in the area at the time. This is an

ongoing matter that had to be addressed. Load shedding was also a factor that affected

small, local businesses and their revenue generation. For example, Ms Williams owns

laundromats, which require consistent electricity for washing and drying services.

However, when there is load shedding, it is not financially feasible for her business to

remain open on certain days, especially if there is load shedding twice or thrice a day.

Mr Rozario Brown, community activist and organiser of the Mitchell’s Plain Festival

through Cycle of Life, proposed that the Committee meet with business owners once

every quarter to discuss progress in Mitchell’s Plain. He has been engaging with the

Minister for Cultural Affairs and Sport because current laws and policies do not allow

for the Department of Cultural Affairs and Sport to fund privately organised events. This

has been an ongoing discussion for quite a long time, however, the policies have not

been amended. These events could create many jobs but there are too many red tape

challenges hindering the process to host an event. For example, there are hundreds of

pages to fill in when one needs to apply for a permit to host an event. Additionally,

officials take very long to respond to the applications. This hinders job opportunities for

entrepreneurs who would like to have their own stalls at these events. He asked that

elected officials honour their commitments to the community, and address the

departmental officials who are delaying events and awarding of permits.

Mr Achim stated that the business community of Mitchell’s Plain was not interested in

politics; they wanted to improve conditions in Mitchell’s Plain. Most of the business

owners and members of the Chamber did not receive a stipend for the work that they

did; they were only interested in seeing the Mitchell’s Plain community thrive. He urged

the Committee to have a serious look at Mitchell’s Plain and the potential it has. If the

Morgenster Road in Mitchell’s Plain is opened towards the Retreat area, it would create

an entirely new economic hub. One could also relieve traffic on the roads if Mitchell’s

Plain became a business hub, rather than going to Century City or the Cape Town

Central Business District. This had the potential to change the economic landscape of

the Province. Mitchell’s Plain could be the primary employer of the Western Cape, as

well as a thriving investment space.

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4. Resolutions

The Committee RESOLVED the following:

4.1 To send the businesses concerns to the departments under which those issues are

dealt with, and to request that those departments report back to the Committee

on the manner in which they have assisted those respective businesses;

4.2 To request a report from the Department of Economic Development and

Tourism on it’s framework or platform for engaging business chambers such as

the Mitchell’s Plain Chamber of Commerce;

4.3 A report from the Department of Economic Development and Tourism stating

whether they have engaged with the Mitchell’s Plain Chamber of Commerce on

its vision for Mitchell’s Plain in the future, particularly around the aspect of

tourism, and whether the Department is able to assist the Chamber in this respect.

The Chairperson thanked the Mitchell’s Plain Chamber of Commerce and other

attendees for availing themselves to address the Committee on the challenges they have

experienced as business owners in Mitchell’s Plain.