2018/2019 THE CITY FOR ALL REASONS - Invest Western Cape
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THE CITY FOR ALL REASONS
2018/2019
contact us for more information THE CITY FOR ALL REASONS INVESTMENT QUERIES Pedro Oliphant Tel: +2744 801 9089 E-mail: ploliphant@george.gov.za INVESTMENT PROMOTION Tel: +2721 487 8600 E-mail: invest@wesgro.co.za James Milne Tel: +2721 487 8678 E-mail: james@wesgro.co.za RESEARCH Jodie Posen Tel: +2721 487 8614 E-mail: jodie@wesgro.co.za We would like to acknowledge the contribution of Latecia Phillips of Wesgro IQ for tourism research and Janine Botha of Wesgro IQ for editing.
Table of Contents
INTRODUCTION 1
FOREWORD 2-3
1. SOUTH AFRICA AT A GLANCE 4
1.1 Competitiveness 4
2. GEORGE: A FIRST-CLASS CITY 5
3. GEORGE AT A GLANCE 6
3.1 Education and skills 7
3.2 Employment profile 8
3.3 George’s economy 9-11
3.4 Trade and Foreign Direct Investment profile 12
4.4.1 Exports and imports 12-16
4.4.2 Foreign direct investments(FDI) 16
3.5 Good Governance 17
3.6 George Initiatives 17
3.7 Infrastructure and Costs 18
3.7.1 Transport infrastructure: Road, Railway, Airport and Port 18-20
3.7.2 Information technology infrastructure 21
3.7.3 Electricity and water 21
3.7.4 Building plans, office space and industrial land 22-23
3.8 George Accolades and Cost of Living 24-25
4. SECTORAL POCKETS OF EXCELLENCE 26
4.1 Financial and Business Services 26-27
4.1.1 Business Process Outsourcing 28-29
4.1.2 Information Communication Technology 29-30
4.2 Food and Beverages/ Agri-processing 30-31
4.3 Manufacturing 32
4.3 Film and Multimedia 32-33
4.4 Hospitality and Tourism 34-37
4.4 Real Estate 38
4.5 Renewable Energy 39-40
5. REGULATIONS & LEGISLATION 41
6. ACCESS TO INTERNATIONAL MARKETS 42
7. KEY INCENTIVES 43-44
8. KEY CONTACTS 46-47
introduction
This document has been developed to showcase the high growth sectors for investment. Facilitated by
current investment climate within George for potential the combined efforts of the general public, private
investors. This will enable more enlightened business sector and public sector; these incentives, devel-
decisions. The document identifies the opportunities opments and growth sectors present current and
afforded to businesses; and provides information on future investors with a resource to inform decisions
five identified sectors of the economy that present and promote engagement.
page 1
George Executive Mayor:
Melvin naik
“ George Municipality is still the
largest economy in the Garden “
Route and potential for growth
remains positive.
George as a city is on the cusp of greatness. The partners, reliable infrastructure, favourable real estate
people of George are exceptionally fortunate to live, values and pro-business positioning. George also boasts
work, and play in this great city. top quality trails, parks, recreation and sporting facilities
that businesses value for their employees.
George Municipality is still the largest economy in
the Garden Route and potential for growth remains Ongoing investment in one of the best run transport
positive. services, the Go George, will also improve people’s
access to urban opportunities.
The prospect of establishing a University of the
Southern Cape in George has been widely welcomed The municipality’s human settlements section has
and this bodes well for the region. We live in an age already identified development zones to accommodate
of great possibility, one of new technology, informa- the much-needed middleincome housing market.
tion systems and intense global competition. Thus, a
University will be a significant investment in our city George Municipality is business-ready for partnerships
with vast new opportunities. in promoting the agri-processing sector, the municipality
promotes the green economy and would like to see
The George Municipality is progressive in creating an greater investment in biomass and solar energy.
environment for growth and the creation of jobs. We
will continue to provide access to sufficient water, I wish to remind all potential investors that we are
sewer reticulation and electricity services. financially and politically stable.
Our unique strengths as a city include our strategic Melvin Naik
location, access to industrial and urban markets, a George Executive Mayor
progressive labour force, passionate community
page 2
George has emerged as an economic hub and driver
of growth in the Garden Route district of the Western
Cape. As the third largest municipality in the province, it
continues to attract top financial and business services,
contributing to the Cape’s growing services sector.
The natural beauty of George, coupled with its world-
class infrastructure have helped put the city on the map
in South Africa. George’s natural scenic appeal with a
beautiful coastline and the famous Outeniqua Mountains
makes it an obvious choice as a destination for tourists
and businesspeople alike. This has resulted in global
companies deciding to do business in the municipality.
Wesgro’s trade promotion programme has also helped
position the Western Cape as a key gateway to the rest
of Africa, with a consumer market expected to reach
over 2 billion people by 2050. This bodes well for George,
given its key position in the Western Cape.
Indeed, during the last financial year (2017/2018), the
Trade team facilitated a total of 53 business agreements
with an estimated economic value of R2.8 billion resulting
in 679 jobs. In addition, the unit facilitated a total of six
“Outward Foreign Direct Investment” projects into Africa
to the value of R190 million.
Wesgro’s investment unit continues to be at the forefront
of proactively recruiting investments into the Cape. The
unit realised a total of 12 investment projects, to the
Wesgro chief Executive officer:
tim harris
value of more than R2 billion during the financial year
2017-2018. This has assisted in the facilitation of 1,014
jobs and helped to grow the Western Cape’s industrial
base.
A collaborative public-private partnership, which we are
very proud of, is the Cape Town Air Access initiative.
This project has seen 13 new routes and 18 route
expansions, adding over 1,5 million two-way seats to
Cape Town International Airport, over the past three
years. George Airport has also experienced just over
9% growth per year over the past 5 years and we
anticipate greater passenger and cargo traffic in the fu-
ture through this logistics and tourism hub.
The hub of the Garden Route also enjoys the strategic
advantage of being situated on the major transport routes
“
between Cape Town in the South and Port Elizabeth in
the East. This location is advantageous for investment, The natural beauty of George,
particularly for manufacturing, logistics, warehousing,
tourism and lifestyle. coupled with its world-class
I’m confident that with all that George has to offer, along infrastructure have helped
“
with their willing and helpful municipality, this city will
continue to be an inspiring place to do business in Africa. put the city on the map in
South Africa.
Tim Harris
Chief Executive Officer
page 3
1.
South 1.1 Competitiveness
In 2017, South Africa was the 36 th largest global
destination market for greenfield investment out of 162
africa
countries monitored globally. The country was the largest
destination and source market for greenfield investment
on the African continent (FDI Markets, 2018). The 2019
Doing Business Report ranked South Africa as the
82nd most competitive country out of 190 nations
surveyed. South Africa performed relatively well in
at a glance
the following indicators: protecting minority investors
(23rd) paying taxes (46th) and resolving insolvency (66th).
The table below highlights key competitive indicators
across the BRICS countries. South Africa is the branch
of the bloc on the African continent.
KEY COMPETITIVE INDICATORS, 2017
INDICATOR SOUTH AFRICA BRAZIL CHINA INDIA RUSSIA
DEMOGRAPHICS
Population (millions) 54.8 207.4 1 379.3 1 281.9 142.26
Life Expectancy at birth (years) 2017 64 74 76 69 71
Unemployment rate (%) 27.6 11.8 4 8.8 5.5
THE ECONOMY
GDP (PPP USD, bn) 766 3 240 23 160 9 459 4 008
GDP per capita (USD) 13 500 15 600 16 700 7 200 27 800
Total Investment (% of GDP) 2017 20 15.6 43.3 27.5 21.1
Gross national savings (% of GDP) 16 15 46 30 27
Inflation average consumer prices (%) 5.3 3.4 1.6 3.6 3.7
Source: CIA World Factbook (2018)
page 4
2. GEORGE: A FIRST-CLASS CITY
George has a sophisticated, diverse and dynamic transport hub along the N2 and is the 4th most im-
economy, and is a hub for entrepreneurship and in- portant contributor to provincial employment among
novation in the Garden Route, which makes up 40% the Western Cape’s 25 municipalities. George has
of the district economy. George, as well as being the also consistently recorded higher economic growth
main economic base for the Garden Route, also had rates than the district economy, the provincial econo-
the highest average economic growth rates over my and the national economy in the past 5 years with
the past 5 years. an average growth of 2.64% p.a., showing impres-
sive resilience during a challenging period for South
George is the 3rd largest municipality in the Western Africa. The municipality also boasts a trade surplus,
Cape after the City of Cape Town and Drakenstein, however it accounts for the lowest value exports out
and is larger than Stellenbosch and Saldanha Bay. of the four municipalities tabled below.
George is strategically located as a logistics and
table 1: Key economic indicators of George
Population (2017) 218 678
Gross Domestic Product - Regional (GDPR) R16 bn
(current prices), 2016
Inflation (2017 average for Western Cape) 6.3%
Coloured (55.78%), Black (24.40%), White (19.74%) and
Ethnic Groups of Garden Route
Indian and Asian (0.08%)
GDPR Growth 2017e 1.4%
HDI 0.72
Source: Quantec, 2018
Table 2: Comparative analysis of George and other Western Cape Municipalities
Indicators Cape Town Drakenstein George Stellenbosch Breede Valley
Population (‘000) (2017) 4,174 280 208 176 201
GVA at current prices 380 20 16 14.6 11.7
2016 (R bn)
Average annual GDPR 2.04% 2.06% 2.64% 2.12% 2.41%
growth (constant prices,
2011-2016)
Imports (Rbn, 2017) 148.68 4.97 0.55 3.30 19.74
Exports (Rbn, 2017) 82.43 13.70 0.66 11.47 1.66
Source: Quantec, 2018
page 5
3.
george
at a glance
George is a local municipality located within
the Garden Route District in the Western
Cape. It is bordered by the Eastern Cape in
the North and East, Knysna and the Indian
Ocean in the South, and Oudtshoorn in the
West. George has spectacular natural scenery
and is a renowned tourist and lifestyle desti-
nation. The hub of the Garden Route also
enjoys the strategic advantage of being situa-
ted on the major transport routes between
Cape Town in the South and Port Elizabeth
in the East. This location is advantageous
for investment, particularly for manufacturing,
logistics, warehousing, tourism and lifestyle.
The municipal area is 5,190.43 km²
and includes the following:
• City of George;
• Villages of Wilderness and Herold’s Bay;
• Various coastal resorts, such as Kleinkrantz and
Victoria Bay;
• Rural areas, such as the area around Rondevlei (east
of Wilderness), Geelhoutboom, Herold, Hansmoeskraal
and Waboomskraal, as well as Uniondale and Haarlem.
page 63.1 Education and Skills
George achieved high matric pass rates of above 80% from 2012 to 2017, which indicates positive education
outcomes for the area. The City of George is home to the following higher education institutions:
• Nelson Mandela University George campus (NMU);
• University of South Africa (Unisa) - open distance learning institution;
• South Cape College;
• Rundle College;
• Boston City Campus & Business College;
• Africa Skills Village; and
• other private colleges.
NMU brings together the best traditions of technicon and university education. QS Top Universities ranked
NMU in the top 200 Universities of the BRICS countries’ universities (Brazil, Russia, India, China and South
Africa). NMU’s George campus offers four faculties, namely Business and Economic Sciences; Science; Law;
and the faculty of Engineering, Built Environment and Information Technology. Unisa, South Africa’s biggest
distance learning institution, has a strong presence with a service centre in George. The establishment of a
Garden Route University would be catalytic in addressing the demand for a tertiary institution in the region,
and given the position of George, it is an ideal location to invest in a facility of this nature. The municipality
also encourages investment into skills development and incubators for scarce-skill development.
The table below indicates the skills levels of formally employed workers in the George municipal area.
Table 3: George Skills Level, 2016
Formal employment Skill level contribution (%) Average growth (%) Number of jobs
by skill 2016 2006 - 2016 2013 - 2017e 2016 2017e
Skilled 31.8 3.9 3.1 18 835 19 176
Semi-skilled 40.0 1.1 1.6 23 689 23 697
Low-skilled 28.2 -0.6 1.5 16 685 16 575
Formal employment Skill level contribution (%) Average growth (%) Number of jobs
by skill 2016 2006 - 2016 2013 - 2017e 2016 2017e
Total 100 1.3 2.0 59 209 59 448
Source: Quantec, 2018 (e denotes estimate)
In 2016, 59,209 workers in the George municipal area were formally employed. This is estimated to have in-
creased slightly to 59,448 in 2017, mainly due to an increase in semi-skilled workers, which is in line with the
large estimated increase of wholesale and retail trade, catering and accommodation sector workers in 2017.
In the last five years, the number of skilled workers has increased by an average rate of 3.1% p.a. in George.
In 2016, 31.8% of workers were skilled. Together with the above average growth rate in this skills category,
it is indicative of a higher demand for skilled workers in the area which is in line with the urbanisation of the
George municipal area, tertiary sector job creation as well as economic growth (MERO, 2018).
page 73.2 Employment Profile
Table 4: George’s Employment Indicators, 2017
Working age population 139,666
Labour Force Participation Rate 68.9%
Employed 80,884
Strictly Unemployed 15,199
Not Economically Active 43,583
Strict unemployment rate 15.8%
Source: Quantec,2018
George had a lower unemployment rate than the City wholesale, retail, catering and accommodation. The
of Cape Town, the Western Cape and South Africa in finance and business services sector employed the
2017. George contributes 36% towards employment largest number of skilled individuals in 2017 (6,255)
in the Garden Route district and has the third lowest and the wholesale, retail, catering and accommo-
unemployment rate in the district after Hessequa and dation sector employed the largest number of semi-
Kannaland. George’s top formal employing sectors skilled individuals (6,373).
were finance, real estate and business services and
Figure 1: Sectoral Employment Split in George, 2017
Wholesale, retail trade, catering and accommodation
Finance, insurance, real estate & business services
Community, social & personal services
Agriculture, forestry & fishing
Manufacturing
General government
Construction
Transport, storage & communication
Electricity, gas & water
Mining
0 5000 10 000 15 000 20 000 25 000
Skilled Semi-skilled Low skilled Informal
Source: Quantec,2018
page 83.3 George’s Economy
George, the hub of the Garden Route is a magnet for national economy. The city’s GDPR grew by an average
talent, investment and production, utilising economies of 2,25% between 2013 and 2017, on average grow-
of scale to grow faster than the broader region in which ing 0,7 percentage points faster than the national
it is located. The city, nevertheless, as shown in Figure 2 economy during this time.
below, finds itself affected by economic shocks to the
Figure 2: Growth in GDPR at constant 2010 prices in South Africa (%), 2013-2017e
GDP growth, 2013 - 2017e
3.50
GDP growth (%)
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2013 2014 2015 2016 2017e
George 3.12 2.88 2.08 1.73 1.43
South Africa 2.56 1.95 1.25 0.66 1.33
Garden Route 2.86 2.62 1.49 1.22 1.16
Western Cape 2.63 2.36 1.49 1.25 1.03
City of Cape Town 2.47 2.01 1.50 1.47 0.72
Source: Quantec,2018
The George municipal area had a GDPR of R16bn in 2016. The economy grew by a rate of 1.7% in 2016,
which is slower than the 2.1% recorded in 2015. The slower GDPR growth can be attributed to the contraction
of the primary sector, mainly agriculture. Of the main economic sectors in the George municipal area, the
finance, insurance, real estate and business services sector recorded the strongest growth in 2016 (3.7%),
followed by transport, storage and communication (2.2%) and manufacturing (2.1%).
page 9Table 5: Breakdown of George’s GVA by sector (2011-2016, R millions)
Contribution Rm Trend Real GDPR growth (%)
Sector GDPR value
(%) 2016 2016 2006 - 2016 2013 - 2017e 2012 2013 2014 2015 2016 2017e
Primary Sector 4.3 680.6 1.8 0.3 1.2 1.8 6.9 -2.6 -7.7 3.0
Agriculture, forestry
4.1 652.9 1.8 0.2 1.2 1.7 6.9 -2.7 -7.9 2.8
and fishing
Mining and quarrying 0.2 27.7 1.2 4.4 2.0 3.9 7.9 0.5 1.2 8.5
Secondary Sector 24.1 3 858.8 2.0 1.1 2.1 2.0 1.1 0.7 1.2 0.4
Manufacturing 15.0 2 391.2 2.4 1.5 2.8 2.0 1.2 1.0 2.1 1.1
Electricity, gas 3.5 554.0 -1.7 -1.7 -0.9 -1.7 -1.7 -2.5 -2.7 -0.1
and water
Construction 5.7 913.6 3.5 1.3 1.7 3.9 2.4 1.5 0.2 -1.4
Tertiary Sector 71.6 11 448.7 3.7 2.7 3.9 3.6 3.1 2.8 2.5 1.6
Wholesale and retail
trade, catering and 18.3 2 920.2 2.7 1.6 4.2 2.6 1.7 2.1 2.1 -0.6
accommodation
Transport, storage 11.5 1 845.1 4.1 3.1 3.5 3.9 4.7 2.3 2.2 2.7
and communication
Finance, insurance,
real estate and 26.7 4 275.5 4.9 4.0 4.7 4.4 4.0 4.6 3.7 3.2
business services
General government 8.9 1 425.4 2.5 1.0 2.3 3.3 2.3 0.1 0.2 -0.7
Community, social
6.1 982.5 2.0 1.5 2.3 2.2 1.6 1.0 1.5 1.1
and personal services
Total George 100 15 988.1 3.2 2.3 3.4 3.1 2.9 2.1 1.7 1.4
Source: Quantec, 2018; note: “e” denotes estimate
It is estimated that the agriculture, forestry and fishing sector grew by 2.8% in 2017. The transport, storage
and communication sector also had a higher estimated GDPR growth rate compared to 2016 at 2.7% growth,
highlighting the important linkages between these two sectors.
page 10Detailed sectoral breakdowns
George’s food, beverages and tobacco sub-sector was the largest manufacturing component in 2017
accounting for an estimated 32% of total manufacturing. This was followed by petroleum, rubber and plastic
products (18%) and metals, machinery and equipment (14%). The pie below shows the composition of
the manufacturing sector in George in 2017.
Figure 3: Sub-sectoral breakdown of the manufacturing sector, 2017e
Electrical machinery & apparatus
2% Radio, TV, instruments,
Other non-metal watches & clocks
mineral products 2%
3%
Textiles, clothing Food, beverages
& leather goods & tobacco
3% 32%
Transport equipment
6%
Furniture; other
manufacturing
9%
Wood & paper;
publishing & printing
11%
Petroleum products,
Metals, metal products,
chemicals, rubber & plastic
machinery & equipment
18%
14%
Source: Quantec, 2018, note: “e” denotes estimate
The largest sub-sectors of the tertiary sector in George were wholesale and retail trade (24%), business
services (24%) and finance and insurance (14%).
Figure 4: Sub-sectoral breakdown of the tertiary sector, 2017e
Catering & accommodation services
1% Education (Private)
Health & social 1%
work (Private)
3% Wholesale & retail trade
Communication 24%
4%
Other community, social
& personal services
5%
General government
12%
Transport &
storage
12%
Business services
24%
Finance & insurance
14% Source: Quantec, 2018
page 113.4 Trade and Foreign Direct
Investment profile
3.4.1 Exports and Imports
George accounted for 19.5% of the Garden Route’s exports and 40% of imports in 2017, with
annual average growth in exports of 35% p.a. between 2013 and 2017. Exports from George were
worth R658m in 2017, resulting in a R104m trade surplus.
Figure 5: George Trade, 2009-2017
800
600
400
Value (ZARm)
200
0
-200
-400
2009 2010 2011 2012 2013 2014 2015 2016 2017
Export (ZARm) 55 93 143 163 186 261 488 622 658
Import (ZARm) 175 204 274 258 375 496 734 638 544
Trade Balance (ZARm) -121 -111 -131 -95 -189 -234 -246 -17 104
Source: Quantec, 2018
page 12Figure 6: George Global Export Regions, 2017
Oceania
1%
america
7%
asia
12%
europe
13% Africa
67%
Source: Quantec,2018
In 2017, George’s major export regions were Africa (67%),
Europe (13%) and Asia (12%).
In 2017, the top export destinations for George were
Namibia (R148m), Lesotho (R85m) and Zambia (R62m).
In 2017, cheese and curd was the largest exported product from George at a value of R63m. This was
followed by coal, briquettes and coal fuels at a value of R49m, and cars worth R48m. Approximately
25% of all exports from George are from the textile and leather goods sector, followed by the food
and beverages sector (15%).
page 13Figure 7: George’s Top 10 Exported Products, 2017
70
60
50
40
Value (ZARm)
30
20
10
0
Cheese & Coal; Motor Clothing Other Equipment Prepared Skins & Fruit & Parts of
curd briquettes, cars accesso- footwear for photo- leather other parts vegetable aircraft or
ovoids & ries graphic after of birds/ juices spacecraft
fuels labs, tanning or feathers
screens crusting
ZARm 62.88 48.70 48.26 42.58 39.62 39.18 35.54 20.31 18.83 18.32
Source: Quantec,2018
page 14Figure 8: George’s Top 10 Imported Products, 2017
90
80
70
60
Value (ZARm)
50
40
30
20
10
0
Prepared
New Harvesting Unglazed
leather Natural Parts of
Frozen Knitted pneumatic Other or ceramic
after rubber & aircrafts Centrifuges
fish T-shirts rubber aircrafts threshing flags and
tanning or gums
tyres machinery paving
crusting
ZARm 78.18 46.77 38.80 20.83 20.56 18.29 17.82 16.24 14.97 13.19
Source: Quantec, 2018
R78 million
knitted
t-shirts
R47 million
R39 million
In 2017, frozen fish was the largest imported
product into George at a value of R78m,
followed by knitted T-shirts (R47m) and
prepared leather (R39m).
page 15In 2017, George exported almost all of the Garden radio, TV, instruments, watches and clocks. George
Route’s mining and quarrying, 88% of the Garden also exported 58.8% of the Garden Route’s transport
Route’s other non-metal mineral products and 80% of equipment in 2017.
Table 6: Key Commodities Exported by George, 2017
SOUTH WESTERN GARDEN GEORGE %
TOP 10 EXPORTS AFRICA CAPE ROUTE GEORGE OF GARDEN
(Rbn) (Rbn) (Rm) (Rm) ROUTE
Total 1180.00 125.00 3370.00 658.00 19.5
Textiles, clothing and leather goods 18.60 5.07 591.00 162.00 27.4
Food, beverages and tobacco 68.00 26.90 410.00 95.35 23.3
Transport equipment 127.00 3.23 143.00 84.06 58.8
Agriculture, forestry and fishing 68.90 36.30 1500.00 67.65 4.5
Mining and quarrying 431.00 15.80 48.91 48.88 99.9
Radio, TV, instruments, watches
16.30 3.19 60.00 48.15 80.3
and clocks
Metals, metal products, machinery 239.00 14.70 117.00 44.05 37.6
and equipment
Furniture and other manufacturing 54.60 5.44 255.00 37.57 14.7
Petroleum products, chemicals,
101.00 10.00 173.00 25.71 14.9
rubber and plastic
Wood, paper, publishing and printing 32.00 2.13 33.54 17.68 52.7
Other non-metal mineral products 7.33 0.69 18.52 16.26 87.8
Electrical machinery and apparatus 11.90 1.02 15.55 10.17 65.4
Electricity and gas 8.60 0.00 0.00 0.00 -
Source: Quantec, 2018
3.4.2 Foreign Direct Investment (FDI)
FDI Markets, owned by the Financial Times (2018) recorded one major investment into George by Walmart
(United States) subsidiary Builders Warehouse in a retail project worth an estimated R483m, which created
around 179 jobs.
The top source markets for FDI into the Western Cape from 2003 to September 2018, were as follows:
• United Kingdom (25% of projects and 12% of capital expenditure (capex);
• United States (22% of projects and 22% of capex);
• Germany (8% of projects and 7% of capex); and
• Netherlands (5% of projects and 6% of capex).
Source: FDIMarkets (2018)
page 163.5 good governance
George is one of the municipal entities in South Africa
to have taken several important measures to ensure
good governance such as anti-fraud and anti-corruption
measures. Ascribing to the King IV Code of Gover-
nance principals, George recognises the active role
of municipalities in maintaining a code of ethics and
sound governance. In this vein, George has a whistle-
blowing policy to ensure fraud and corruption are
promptly addressed.
In 2016, George was rated highly for its sound fiscal
position and prudent financial management by Good
Governance Africa (GGA, 2016). The survey affirmed
George’s position as the 18th best performing local
municipality out of South Africa’s 234 municipalities.
George has also achieved its fifth consecutive clean
audit report.
3.6 George Initiatives
George is home to several initiatives aimed at expan-
ding its functionality, attractiveness and efficiency as
an investment destination, including:
• Garden Route university/ research institute/ tertiary
academy, including ancillary projects are being
initiated;
• George Integrated Public Transport Network project
(GO GEORGE), including Urban Design projects have
already commenced;
• Establishment of a Garden Route International
Convention Centre;
• George Airport Commercial Expansion;
• 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/ Business Process
Outsourcing hub;
• ICT incubator and broadband expansion;
• Tourism and business hub – the Destiny Africa
eco-sphere project; and
• The establishment of an agri-park.
page 173.7 3.7.1 Transport Infrastructure: Road,
Railway, Airport and Port
infrastructure George enjoys the strategic advantage of being situated
on the major transport routes between Cape Town in
& costs
the south and Port Elizabeth in the east. This creates
investment opportunities, particularly with regard to
manufacturing, logistics and warehousing.
An excellent system of highways and national roads
links George to Cape Town (420 km) and Port Elizabeth
(320 km). George is well connected through the national
bus service routes, with transport available to and from
major centres in the country.
In support of infrastructure growth and recognising the
important correlation between infrastructure investment
and standard of living, George, through an inter-
governmental agreement with the Western Cape was
allocated R340.9m for infrastructure development over
the 2017 Medium Term Expenditure Framework (MTEF).
During the 2015-2016 and 2016-2017 financial years,
R18m was spent on the resealing of road infrastructure
and a further R40m has been used for maintenance.
A clear emphasis is placed on the importance of the
existing road network as a key enabler of growth for the
economy. To this extent, the city directed R497m
towards the George Integrated Public Transport Network
(GIPTN).
Some companies in George have let us know about
their reason for investing in George. Below find some
questions answered by Distell, who focus on logistics at
their facility in the region.
page 18what is the nature The Distell Sales and Distribution facility in George is predominantly
of your business used to distribute all our products in the Garden Route.
in George?
1. Our strength as a company is in the products we make, the brands
we grow, and the people and relationships we build. We pride
ourselves in crafting inspiring experiences and advantages of
What are the top having a footprint in George is that it is central to the Garden Route
advantages of with a high tourism and holiday destination attraction and footprint.
2. George is alive with an abundance of festivals as well as outdoor
being in George? activities and events.
3. For our staff, living in George offers high quality service delivery,
it is safe and the schooling at all levels provides the highest quality
education.
Railway
George boasts a sophisticated air, road and rail link
to all the major cities of South Africa, making it the
ideal corporate and holiday destination. The Outeniqua
Transport Museum, which houses an array of steam
locomotives and carriages from days gone by, is a
railway museum located in George.
Transnet announced its intention to re-introduce the
Outeniqua railway service between George and Knysna
in November 2017. This will add great tourism value to
the region, as well as being a viable commercial
proposition for transporting a variety of cargo, including
household waste.
page 19Airport
George Airport was recently voted the “2018 Best Airport by Region” in the Africa category for airports with
under two million passengers. George Airport also came out tops in the Airports Council International’s (ACI)
annual Airport Service Quality Awards for 2018. George Airport was the winner of the Best Airport in Africa
over 20 000 air traffic miles. George Airport is one of the gateways for international tourists to easily access
the Garden Route.
• George Airport (Airports Company South Africa) is situated 7 km from the George city centre and is
the largest airport in the Garden Route District. It caters for both passengers and commercial cargo;
• Four passenger airlines operate from the airport (Airlink, Kulula, Mango and South African Express), flying
between George and either Johannesburg (O. R. Tambo International Airport) or Cape Town (Cape Town
International Airport);
• The airport exports locally produced goods such as fresh cut flowers, oysters, herbs and ferns;
• Passenger transport has increased significantly over the past few years – up to 700 000 passengers per
annum (47% of these travellers come to George for business and 27% are holidaymakers);
• Terminals are becoming too small and are being enlarged. The runway is 2km long and needs to be ex-
panded to at least 3 km in the future.
The rise of online retail and e-commerce has led to a greater demand for short delivery times. Air transport
serves as a means of addressing this trend. Warehousing services provided in conjunction with air transport
also help to reduce retail and distribution costs.
Over the last five years, George Airport has maintained a steady flow of passenger movement and reflected
a positive annual average growth rate of 9.1% p.a. across the period. 2017 marked the highest number of
arrivals through the airport, while the highest year-on-year growth was achieved in 2015 (+17.3%).
Figure 10: Passenger Movement Through the George Airport, 2013-2017
450 000 20.0%
17.3%
400 000 18.0%
350 000 393 057 16.0%
348 146 356 479 14.0%
Number of passengers
300 000
250 000
296 911 12.0%
279 180
10.3% 10.0%
200 000
8.0%
150 000
6.4%
6.0%
100 000 2.4% 4.0%
50 000 2.0%
0 0.0%
2013 2014 2015 2016 2017
Source: ACSA, 2018
page 203.7.2 Information Technology Infrastructure
Information Technology (IT) infrastructure is well established in George. George has a strong Information
Communication Technology (ICT) industry comprised of a diverse network of companies focusing on soft-
ware and hardware development.
The Garden Route ICT incubator will not only help train up new skilled workers in the region, but will also
attract new work to the region. As a result, it will catalyze growth in the ICT industry and assist with other
economic development spin-offs. George’s ICT sector, in cooperation with Dark Fibre Africa (DFA), Neotel,
MTN and BBI, has deployed 52km of fibre infrastructure to the value of R15m. The new fibre infrastructure
will assist in attracting investment into the city and supporting entrepreneurial growth.
George has taken advantage of the high growth in cellphone usage in South Africa and has launched a
municipal app. In strengthening George’s strategic objective of good governance, this app allows for easy
and direct communication with the municipality, increasing engagement in matters that affect citizens and
enables effective and relevant service delivery.
3.7.3 Electricity and Water
Extensive investment in electricity infrastructure across
the country is apparent, whereby a large proportion of
the focus is on renewables. Although electricity costs
in South Africa are increasing, the country retains a
relatively low position in terms of global electricity
pricing. George municipality was fortunate not to have
experienced any load shedding in recent years and
Eskom has indicated that they do not foresee any in
the coming years. A number of consumers are moving
to other forms of energy and are considering gene-
rating their own renewable electricity. The city invested
R20.4m on electricity infrastructure development and
maintenance in the 2017 financial year alone. The new
25 MVA transformer for the George sub-station has
also been commissioned.
George’s Water and Sanitation Directorate has re-
ceived numerous awards, such as “Best Wastewater
Pond System” and “Best Internal Wastewater Labo-
ratory”. Additionally, they have received two winning
trophies from the Water Institute of Southern Africa
(WISA) for excellence in the treatment and provision
of clean and safe drinking water. The bulk resources
are sufficient and purification capacity is adequate to
accommodate growth and development.
The City of George can ensure investors that you will
have access to clean, potable water that is adequate
for both agricultural and industrial use. George’s dam
level reading over the last three years have been esti-
mated at around 87%.
Recent developments include, but are not limited to,
the construction of a 12.5 million litre reservoir, as well
as the expansion of a telemetric system. Furthermore,
R54m was spent on water infrastructure development
and maintenance in the 2017 financial year.
page 213.7.4 Building Plans, Office Space and Industrial Land
George has evolved into a business services destination, offering a high quality and modern environment for
business and innovation. The total current value of property in the Central Business District (CBD) amounts
to over R1bn (George Central and George South, Municipal General Valuation, 2018). George approved
1,761 building plans from January to October 2018. In this period the majority of building plans were ap-
proved within 30 days of having been submitted.
Figure 11: George Municipality Building Plans Approved Jan-October 2018
less than 30 days less than 60 days Outside stipulated timeframe
44%
54%
2%
Source: George Directuate - Planning and Developments
Office developments in George have grown, particularly in the CBD. York Street and surrounds are the main
nodes for offices, as they provide accessibility to the main areas of town. Dynarc Capital, formerly based in
Bloemfontein, relocated their head office to the George CBD, investing R60m into this new project, demon-
strating its confidence in the future of the CBD. The current office trends are shown in the table below:
Table 7: George Office Trends
George CBD George Decentralised
2
Average Rentals R65/m R50/m2
Vacancies 20% 25%
Preferred Size Mostly small office spaces between 50m and 140m2
2
Source: Local Brokers, 2015
There is a demand for small, medium density, A-grade offices, located adjacent to or on the two
major roads, York and surrounds, within the George CBD area. The space demand is estimated at
between 5,900m2 Gross Lettable Area (GLA) and 8,900m2 GLA in 2018 in the CBD.
page 22Table 8: Office Space Demand Potential
Cumulative Additional Space Demand Up to 2018 2023 2028
Finance and insurance (sqm GLA) 5 713 14 101 20 769
Business services (sqm GLA) 24 079 50 551 77 885
Total: George 29 792 64 652 98 653
CBD nodal share (min) 5 958 12 930 19 731
CBD nodal share (max) 8 937 19 396 29 596
Average 7 448 16 163 24 663
The City of George supports residential densification zoned and serviced industrial properties available in
within the CBD and along major transport corridors. Pacaltsdorp industria. The precinct is strategically
The Local Spatial Development Framework (LSDF) located close to the railway line to facilitate rail
for the CBD indicates that at densities of 80 units/ha, freight. It is the primary industrial node of the city
an additional 4,000 households can be accommo- and is identified as an essential development node,
dated over the next 15 years and, over the long term, offering 59 hectares of municipal-owned land for
possibly up to 28,000 households. A range of housing industrial zone 1 light and general. This site is loca-
types are to be accommodated, including government- ted close to N2 highway intersections and is readily
led social housing and private sector delivery of “gap” accessible to the airport, and is therefore suitable
housing. for attracting industrial and commercial investments.
This includes a zone for the noxious industry, as
To meet the high demand for residential apartments well as an identified hub for manufacturing green
within the CBD, particularly from people who want technologies, which is a part of the catalytic projects
to work, live and play within the CBD, the municipality proposed in George.
supports developers in their applications for higher
density projects. Restructuring sites have been identi- Other key industrial areas include the proposed
fied in the CBD where partially subsidised high-density Western Gateway industrial area where future in-
developments will be established to bring workers dustrial expansion will be facilitated, and a new
closer to places of employment and increase consumer sub-regional commercial node near the N2 and
thresholds in the CBD. A range of incentives are airport. This is targeted at South Cape manufac-
offered for development in this area. These include turing, freight, logistics, and service industries that
amongst others building plan approvals within a support the airport usage. A number of city incentive
shorter period, lower parking ratios and financial in- schemes for the growth of industry operations are
centives. available, as outlined in Section 7.
The city is host to diversified and vibrant industrial
areas. Land north of Pacaltsdorp offers several vacant,
page 233.8
george
accolades
and cost of living
The City of George receives regular accolades and awards, which are related to lifestyle,
opportunities, service offerings and overall living standards, including (but not limited to):
• George Municipality is the first B-municipality to roll • Western Cape Govan Mbeki Award 2016 for Best
out a fully integrated public transport service (GO Rural Housing Programme;
GEORGE,) winning the Certificate of Outstanding
• 2017 Award for the Best Waste Water Pond System
Achievement for an Innovation Project in 2015;
for the Herolds Bay Waste Water Treatment Works
• 2015 Institute of Municipal Finance Officers Award
• 2017 Award for Best Internal Waste Water Labora-
for Clean Audit;
tory for Outeniqua Waste Water Treatment Works
• 2015 Certificate of Recognition from the Minister of
• 2017 Runner up Award: Best Water Treatment
Cooperative Governance and Traditional Affairs,
Works for Wilderness Water Treatment Works
Pravin Gordon for Outstanding Services Rendered
in Firefighting; • 2017 Runner up Award: Best Wastewater Treat-
ment Works for Kleinkrantz Wastewater Treatment
• Energy Game Changer Participation Award for the
Works
Implementation of Solar on Rooftops;
• SAICA Southern Cape Award - Most Outstanding
• Nominated for Municipality of the Year (Planning
Civil Engineering Achievement 2018: Community-
and Service Delivery Section) by African Utility Week
Based Project, Thembalethu Pipe Bridge No.5
• Certificate of Registration of Commitment and Un-
• SAICA Southern Cape Award - Most Outstanding
dertaking for electrical candidate engineers and
Civil Engineering Achievement 2018: New 12,5ml
establishing a mentorship scheme in accordance
Reservoir at George Old Water Treatment Works
with ECSA’s training requirements in 2015;
• 2015 ACSA Feather Awards; • Best Enhanced People`s Housing Process
Programme – Protea Park Project
• Certificate of Recognition for Greenest Municipa-
lity in 2015; • Best Emerging Youth Contractor – Haarlem Farm
Workers Project
• Certificate of Outstanding Achievement for the Most-
Improved Municipality for Leadership, Compliance,
The George Business Chamber was awarded the
Institutional Arrangements and Public Participation
Ahi National Award for the best Business Chamber in
in 2015;
South Africa in 2014 and 2016, with second place in
• Western Cape Govan Mbeki Award 2016 for Best 2015. George has won numerous awards based on
Enhanced People’s Housing Process Project their level of service delivery. The table below gives
(Uniondale Housing Project); George Municipality service delivery indicators.
page 24Table 9: Service Delivery Indicators
Electricity 96%
Water in urban area 100%
Water in rural area by means of water tanks 80%
Sanitation in urban area 100%
Refuse removal and waste in urban and rural areas 100%
T/A time to fix potholes (scheduled) 2 weeks
T/A time to fix potholes after a complaint 2 days
T/A time from complaint to repair of broken traffic lights 1/2 days
Service Delivery Team (sanitation/water/electricity) Available 24 hours
Source: George Municipality, 2018
In terms of total cost of living, George is 21% cheaper than the City of Cape Town and 9% cheaper than Port
Elizabeth.
Table 10: Cost of Living Indicators, George compared to
Cape Town and Port Elizabeth
Cities George: Cape Town George: Port Elizabeth
Food -20% -14%
Housing -49% -23%
Clothes -18% -7%
Transportation 12% -0%
Personal care -5% 4%
Entertainment -7% 3%
Total cost of living -21% -9%
Source: Expatistan, 2018
page 254. SECTORAL POCKETS OF EXCELLENCE
4.1 Financial and Business Services
The business services sector including Business Process Outsourcing (BPO) and Information Technology
(IT) contributed an estimated 24% (R2.9bn) to the tertiary sector in George in 2017, while finance and insu-
rance contributed 14% (R1.7bn). Between 2013 and 2017 the finance, insurance, real estate and business
services sector grew at a rate of almost double the total George economy (2.3% p.a.) of 4% p.a. This sector
employs 20% of the skilled workforce in George and 16,524 skilled and unskilled people. In 2017, it was es-
timated that George contributed 43% to the Garden Route finance, insurance and real estate sector.
Table 11: Finance, Insurance, Real Estate and Business Services in George
Contribution Rm Growth Trend Real GDPR growth (%)
Sector to GDPR (%) value 2006 – 2016 2013 - 2017e
2016 2016 (av. % p.a.) (av. % p.a.) 2012 2013 2014 2015 2016 2017e
Finance, insurance,
real estate and 26.7 26.7 26.7 4.0 4.7 4.4 4.0 4.6 3.7 3.2
business services
Source: Quantec, 2018
A significant amount of private investment and asset ment Services, Kruger International, Moore Stephens
management services, as well as insurance and George, IFA Office and Ecsponent Financial Services
personal service companies have relocated to George are also based in the city. The five major South African
as it is a significant financial and business services banks (First National Bank, ABSA, Standard Bank,
hub in the Garden Route. Top insurance companies Nedbank and Capitec Bank) have branches and ser-
such as Old Mutual Brokers, Santam, Metropolitan, vices located throughout George. In the real estate
Alexander Forbes, Boshoff Visser Property Group and industry companies such as Sotheby’s Realty, Pam
Sanlam have branches in George. Renowned invest- Golding, Remax Property, Just Letting, etc. operate
ment and financial advisors such as Citadel Invest- in the city.
Opportunities and Advantages of George as
a Financial and Business Services Location
• The city’s urban development node incentives are a contributing factor to the promotion of the redevelop-
ment and regeneration of the growing financial and business district within the CBD.
• Broadened access to banking services to low-income areas through reduced infrastructure costs and more
accessible broadband.
• Strengthening credit extension for working capital to SMMEs, such as construction firms for contracts on the
continent. The city and the private sector are working together to find ways of increasing business lending
through the Small Enterprise Finance Agency (SEFA).
• Established business culture and clustering of financial institutions.
• A relatively compact and relaxed CBD environment with easy access and less congestion than Cape Town.
page 26Some companies in George have let us know about their reason for investing in George. Below find some
questions answered by Task Applied Science, who focus on clinical trials at their new facility in the region.
1. The availability of infrastructure – especially concerning medical
facilities and transport.
What motivated
2. The availability of skills also played a role.
your decision
3. The relevant role-players in George that we have been in contact
to invest in George? with are all positive in wanting to contribute to the community and
welcoming growth and further investment in community health.
What, in your
opinion, are the top 2 1. Access to health facilities and skills.
advantages of being 2. Access to transport infrastructure i.e. the GO GEORGE Bus system
in George?
What has your
In the past 5 years we have grown from 45 to 175 staff members.
average growth This growth has been stimulated by establishing our brand and
been over the past through high quality work.
5 years?
Are you planning
to expand in the Yes. The George site is part of our expansion.
next 5 years?
1. Stability funding – the world of clinical trials can be quite volatile
due to changes in regulations and funding. This causes lulls in new
What are the top studies starting. During these quiet times it is necessary for us to
challenges your have investors allowing us to sustain the developed skills.
company is facing? 2. Negative perception towards clinical trials from the community and
health facilities due to people not being informed about clinical trials.
We hope that George will be a research-friendlier environment.
page 274.1.1 Business Process Outsourcing
The Global Sourcing Association (GSA) conference in 2018 named South Africa the “Global Destination of
the Year” for offshoring (the relocation of business processes). This marked South Africa’s fifth award since
2012 making South Africa and her cities leading offshore business process services (BPS) destinations. The
South African Offshore BPS market has experienced a near 20% year-on-year compounded average growth
since 2012.
Figure 12: Service Function Breakdown of BPO in the Western Cape in 2017
2% 2% Inbound customer service
3% 5% Inbound sales
Outbound service
Debt collection
Legal process outsourcing
16% Shared services centre
48% Finance and accounting
Other back office processing (document
processing, research, etc.)
15% Other
9%
Source: BPESA, 2018
The South African government has identified Business Process Outsourcing (BPO)/contact centres as a key
sector for job creation for the large population of unemployed South African youth. Eleven percent of the
major BPOs in the Western Cape are located in George. The major BPO companies located in George in-
clude:
• Merchants – Asda, iiNet and EE provide BPO services in Customer Relations Management. Their source
market is the United Kingdom.
• Solluco – provide BPO services in Customer Relations Management (and supply chain management services).
Their source market is the United Kingdom.
• Oakhurst Insurance – provides BPO services in knowledge processing outsourcing. Their source market
is South Africa.
Second to the City of Cape Town, George is the most important market for BPO growth and investment.
There are already well-established companies operating in the municipality. To support the growth in this
sector, the George municipality supports the infrastructure for high-speed internet connections. There is
also a drive to solicit highly skilled and innovative IT technicians that will assist the BPO market.
page 28Opportunities and Advantages of George as a BPO Business Location
• A rich talent pool with a predominantly English-speaking workforce that are able to engage with international
clients.
• The same time zone as Europe, ensuring that working hours overlap.
• George’s natural appeal, with its beaches and mountains provides for a quality enhanced lifestyle, a big
draw card for mobile investors.
• There are strong data protection laws and standards in South Africa, similar to those in Europe, which gives
prospective businesses information security.
• There is good availability of quality technology services.
• George has relatively low costs of doing business, compared to other cities and Cape Town.
• Complementary and supporting industries like the finance and ICT industries are strong in George.
• The Western Cape is home to 61% of BPO endeavors in South Africa, with clustering advantages.
4.1.2 Information Communication Technology Africa
As part of the Western Cape government’s (WCG) 27 wards in George, of which five contain a WCG
aim to improve business competitiveness and the Wi-Fi hotspot. The picture below shows that apart
livelihoods of citizens through various broadband for the City of Cape Town, George is the second
initiatives by 2020, free Wi-Fi has been installed in largest WiFi hotspot cluster in the province.
Western Cape
Tourism Information
Cape Town Tourism:
Tel: +27 86 132 2223
info@capetown.travel
www.capetown.travel
Cape West Coast:
Tel: +27 22 433 8505
tourism@wcdm.co.za
www.capewestcoast.org
Cape Winelands
Tel: +27 21 888 5100
tourism@capewinelands.gov.za
www.tourismcapewinelands.co.za
Cape Garden Route
+27 44 803 1416
amagene@edendm.co.za
www.tourismcapegardenroute.co.za
Cape Karoo
+27 23 449 1000
jjonkers@skdm.co.za
www.tourismcentralkaroo.co.za
Cape Overberg
www.tourismcapeoverberg.co.za
Southernmost tip of Africa
Source: Western Cape Government, 2018
Southernmost tip of Africa
Private companies, Cloud Connect and Fibrehood are also rolling out fibre for residential use and public insti-
tutions. There is also a Garden Route ICT incubator, which supports this growing sector in the municipality.
Table 12: Selected IT/support companies in George
Western Cape Digital Communication Cloud Connect Networks
Gigabug.co.za B360 Wireless
Vox Independent Dealer PYXL Intermatic CC
Digital Village vanTo Corp PTY (LTD)
VTS Communications Bover Technologies
We Fix Garden Route.com
page 29Competitive advantages of George as an ICT location
• The industry is largely supply driven and the availability of ICT skills and, the prevalence of an entrepre-
neurial culture, are key aspects.
• There are benefits of agglomeration and clustering in George with over 50 ICT companies in different
sub-sectors.
• In a highly mobile sector, George’s natural beauty which allows for a better working environment and life
style, is a strong pull factor to skilled employees.
• The diverse eco-system of companies across the value chain and, a strong presence of supporting institu-
tions, provide for ease of business operations.
• The Garden Route ICT incubator provides infrastructure support and incubation for tech and tech-enabled
businesses to grow and connect in George.
4.2
food and
beverages/
agri-processing
The Western Cape is Africa’s agribusiness hub, with Breweries (SAB). The vegetable industry holds po-
the province contributing close to 49% of the country’s tential for expansion in its processing capacity, and the
commercial agricultural exports (Quantec, 2018).This berry sector has opportunities for agro-processing,
is attributed to the Western Cape’s high level of agri- exports and tourism. There is a growing trend for
cultural development and expertise, the quality of its fresh and delivered produce in George, where 35
infrastructure, access to market and services. hectares of land have been secured for a hydro-
ponics facility to grow fresh produce for commercial
The industry is one of the few manufacturing indus- exports.
tries where the Western Cape has a positive trade
balance and it is a very important earner of foreign George is one of the key strategic locations for timber
exchange. The main agricultural activities in the George in the Western Cape. Timber is a traditional industry
municipal area are farming mixed vegetables, live- in the Garden Route and extensive plantations still
stock, honeybush, dairy, essential oils, berry fruits such exist. International players such as Cape Pine have
as blueberries, and other tree produce such as mac- relocated their headquarters to George. Timber is
adamia nuts. Due to the favourable climate, George predominantly used in the construction industry and
hosts the sole hops farming area in the country, in specialised furniture manufacturing.
garnering significant investment from South African
page 30Key interventions to promote the sector include an agro-processing facility and the establishment of an
agri-park (5 000 square metres that has been approved by council). This park will function as an innovation
system of agro-production, agro-processing, logistics and warehousing, cold storage, packing, canning,
marketing, training and extension services to commercial and emerging farmers.
Table 13: Selected agro-processing companies in George:
South African Breweries – Hop Farms Tikketia PTY LTD
Lancewood Haygrown Eden Packhouse
Morning Milk Golden Harvest FPM
Competitive advantages of the Food and Beverages industry in George
• George has access to the rich crops of hops, berries and vegetables.
• Cape Town and its broader region provides a fast growing consumer market.
• George Airport and a well-integrated road network supports national consumption and exports.
• Logistics and storage companies are well established in the region.
• The ecological agriculture programme at the Nelson Mandela University (NMU) School of Natural Resource
Management facilities agriculture science and innovation.
• George is particularly well suited for aquaponics, hydroponics and other “new generation techniques such
as Controlled Environment Agriculture (CEA).
• The establishment of an agri-park which will be approximately 5 000 square metres of industrial-zoned land
in close proximity to the N2 and the airport comprising of two vacant plots situated in an industrial area in
George.
• Committed timber industry that is seeking to re-establish the timber, furniture and the design industry.
Some companies in George have let us know about their reason for investing in George. Below find some
questions answered by Morning Milk, who focus on dairy manufacturing at their facility in the region.
What is the nature
of your business We are dairy manufacturers, employing between 40-50 people.
in george?
What are the 1. The location and proximity to many dairy farmers from Tsitsikamma
through to Cape Town means there is stock availability for our
top 2 advantages of manufacturing.
being in george? 2. Access to transport infrastructure i.e. the Go George Bus system
page 314.3 Manufacturing
The manufacturing industry made up R2.4bn (or 15%) of George’s GDP in 2016. The industry experienced
growth of 2.1% in 2016. The manufacturing industry employed 9.5% of George’s workforce. Unsurprisingly,
the food, beverages and tobacco sub-sector made up 32% of manufacturing in George with manufacturers
such as Lancewood and Morning Milk. Other manufacturers are in the petroleum, rubber and plastic products
(18%) and metals, machinery and equipment (14%). The fastest growth in 2016 was seen in the manufacture
of transport equipment.
Opportunities and Advantages for Investors in the Manufacturing Sector
• Development opportunities within the manufacturing sector include agro-processing, waste recycling, timber-
related products (prefabricated homes, coffins, school desks, etc.) and niche products (such as vintage
cars and drones).
• A major beverage manufacturing hub already exists encouraging clustering opportunities.
• Potential for manufacturing bio-plastics from indigenous plants.
• Opportunities using natural fibres and biomass, manufacturing diesel/ bioenergy from plastic waste and up-
scaling recycling initiatives and linkages with the BioWise programme.
• The use of vermiculture as means of reducing organic waste.
• Potential for manufacturing products from waste exists.
• Re-establishment of the FurnTech furniture manufacturing plant and design centre.
4.4 Film and Multimedia
The Garden Route boasts a remarkably diverse range of filming locations to suit the varied needs of the film,
television and advertising industries. World-renowned as a tourist destination with a Mediterranean climate,
George is an ideal location for productions. It has an abundance of diverse, scenic landscapes in close geo-
graphic proximity to the George CBD and well-developed infrastructure.
A fully equipped studio was established by Garden Route Film Studios (GRFS) to support this sector. A
former George cinema complex (over 1,000m² in size) was converted into a sound-proof studio, and in-
cludes a workshop for set building, storage rooms, offices and smaller studios to shoot film, advertising
and locally-produced TV series. Garden Route Film Studios can assist with in-depth local knowledge and
provide producers or scouts with professional and friendly location services.
Table 14: Recent shoots in George and the surrounding district
Klein Karoo (movie)
The Breed
Knysna (movie)
Hidden City (1992 - 1995’s TV show in Harkerville)
The First Man (2016)
The Bachelor (2016)
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