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Economic Development

Garden Route District Municipality attracts investment of R1-billion

Since the first Garden Route Investment Conference was held on 7 and 8 March 2018, Garden Route District Municipality (GRDM), has been in various promising engagements with domestic and foreign investors. First of many negotiations has already secured an R1-billion investment in Garden Route, accompanied by 3000 jobs over the next five years. This follows after the GRDM Council entered into a Memorandum of Understanding with Ikusasa Processing Engineering Consultants (Pty) Ltd on 28 August 2018. A report to the GRDM Council unpacked the conditions relating to a long-term lease of one of GRDM’s properties next to PetroSA to Ikusasa who will erect a Chemical Plant that will support the timber, water and textile sectors. Currently, in its design phase, the project will be implemented after a few weeks. It is envisaged that the factory will be fully operational by the end of 2019.

Sod-turning symbolising the birth of an initiative which will bring a positive change to the Garden Route. Pictured, FLTR: Mr Khakhaza Mhlauli ( CEO – Ikusasa Process Engineering Consultants, Ikusasa Chemicals, Ikusasa Water), Cllr Memory Booysen (GRDM Executive Mayor), Cllr Rosina Ruiters (GRDM Deputy Executive Mayor) and Mr Monde Stratu (GRDM Municipal Manager).

A Sod-Turning Ceremony was held on 28 September 2018 at the property. During the ceremony, Cllr Memory Booysen, GRDM Executive Mayor explained: “GRDM is in partnership with Mossel Bay Local Municipality and by working together, we are going to use the law to fast-track the process. We have seen other economic developments in Kouga, Richard’s Bay, Saldanha – now is the time for development to happen here”.

Mayor Booysen also talked about the regional landfill site which will soon be constructed in the same piece of land. He mentioned that these developmentswould benefit mostly people around the area.

The key stakeholders invited to witness this ceremony included Mossel Bay Municipality, PetroSA,  the Mossel Bay Port and Private Sector Partners and they will all play a pivotal role in the success of the project.

Key Stakeholders at the Sod-Turning Ceremony: Mr Lee Norman (Ikusasa Chairman), Mr Andrew Theunissen (Director – Ikusasa Process Engineering Consultants, Ikusasa Chemicals, Ikusasa Water), Cllr Memory Booysen (GRDM Executive Mayor), Cllr Harry Levendal (Mossel Bay Executive Mayor) and Mr Shadrack Tshikalange (Transnet Mossel Bay Port Manager)

With the site being positioned next to PetroSA, it will have many advantages. A close working relationship and the supply of products which are specific to PetroSA will be developed. Exports and imports via the Transnet Mossel Bay Port, less than 10km from the site, will have a positive effect on the economy and jobs. The N2 is also strategically connecting the site to other parts of the region. As this project grows, it could see Mossel Bay recognised as a special economic zone that will become an industrial hub of the Western Cape and South Africa.

According to Mr Nicholas Rankumar ( Director – Ikusasa Process Engineering Consultants), the “long-term vision for Ikusasa is to expand and scale the chemical plant into a world-class production facility”. He also said that there is “great potential to develop the Mossel Bay area into an export-hub.”

Cllr Harry Levendal, Mossel Bay Municipality’s Executive Mayor, welcomed the development and said: “This is a first of big thing that will happen in Mossel Bay. If you believe that something will happen and you go for it – it will happen. We cannot sit and wait for things to happen. I am thankful for Garden Route DM for their efforts to attract investment to the area”.

The group of dignitaries who witnessed the Sod-Turning Ceremony. Stakeholders include GRDM, Mossel Bay Municipality, Ikusasa, Transnet Mossel Bay Port and PetroSA.

GRDM Leadership’s visit to Indonesia

Garden Route District Municipality (GRDM) recently received an all-expenses-paid invitation (accommodation and flights) from the ISCC Group of Companies in Indonesia to visit them. It was decided that the Executive Mayor of the Garden Route District Municipality (GRDM), Councillor Memory Booysen; the Municipal Manager, Mr Monde Stratu; the Executive Manager: Planning and Economic Development, Mr Lusanda Menze and the Manager in the Office of the Executive Mayor, Mr Siphiwe Dladla, to travel to Indonesia from 6 to 11 September 2018.  GRDM came to know of the ISCC Executive Group Chairman and Chief Executive Officer earlier this year during the Garden Route Investment Conference.

Based on a concern raised by the Cllr Booysen, about presentations being made by companies who, not often return with tangible outcomes, the Chairperson and CEO of the ISCC Group, Mr Jean Bilala, extended an invitation to the GRDM, to visit their infrastructure projects in Indonesia in order to gain insight on the level and quality of what they are involved in.

The Group of Companies includes Ithuba Savings and Credits, LetsCoin $C and the ISC Bank.  These companies have a footprint in Germany, the United Kingdom, Hong Kong, Australia, India, Japan, Singapore, Malaysia, Indonesia, Laos, Thailand, as well as South Africa. Their South African branch is situated in Cape Town.

Signing of a Memorandum of Understanding (MoU) between GRDM and Ithuba Savings and the ISC Bank eBanking and Investment Solutions. Signing the MoU is Mr Jean B. Bilala, President of Ithuba Savings, Cllr Memory Booysen, GRDM Executive Mayor (middle) and Mr Monde Stratu, GRDM Municipal Manager, were also signatories to the MoU.

The Group of Companies mainly focuses on technology, artificial intelligence and investment, and is a member of the prestige Bloomberg, as well as a lifetime member of International Securities Identification Number (ISIN).

The ISCC Group of Companies made the following proposal to GRDM:

  • To develop a sustainable smart town for industrial, commercial and residential development within the Garden Route District Municipality; and
  • The possible establishment of a manufacturing plant for electric cars of which the prototype was already developed and build in Germany (ISC Bank), within the Garden Route District.

During the visit, the delegation met with various business representatives in Indonesia, including businesses from India and Singapore, who indicated their intention or expanding and opening business in Africa.  The visit was concluded with the signing of a Memorandum of Understanding (MOU) between Ithuba Savings and Credit; Len24 GmbH ISC Bank; E-Banking and Investment Solutions and the GRDM. The purpose of this MOU is to facilitate collaboration between the different parties in matters of common interest, as well as working arrangements necessary, for the implementation of the memorandum.

The priority areas which forms part of this understanding as outlined in the MOU are:

  • Cooperation in establishing and identifying land and infrastructure required to implement investment goals; and
  • To exchange information and identification of business opportunities to enhance mutual interests for the Garden Route and Western Cape Province.

GRDM is committed to positioning itself as a destination of choice for national and international investment and has recently embarked on various high-level engagements to realize these objectives.