17
Cape Winelands May 2018 Executive Summary This destination fact sheet provides key trade and investment related statistics for the Cape Wineland district. Specifically, it shows the Cape Winelands area, employment, trade and investment trends with the rest of the world. The key highlights are provided below: Economy The Cape Winelands GDP grew from ZAR35.21bn in 2007 to ZAR43.79bn in 2016. The Drakenstein municipality was the largest contributor to the Cape Winelands district GDP in 2016 valued at ZAR14.35bn. The wholesale and retail trade, catering and accommodation sector was the largest employer with 85 339 people. In 2016 the finance, real estate and business services sector was the largest contributor towards the Cape Winelands GDP, accounting for 24.30%. The food, beverages and tobacco sub-sector was the largest contributor to Cape Winelands manufacturing sector, with a market share of 42 percent. The wholesale and retail trade sub-sector was the largest contributor to Cape Winelands services sector, accounting for 25%. Trade In 2017 the Cape Winelands was a net exporter of goods, the region exported goods to the value of ZAR28.93bn and imported goods valued at a ZAR28.27bn, representing a trade surplus of ZAR660m. The United Kingdom was the largest destination market for the Cape Winelands in 2017, accounting for 13.29% of exports, with a value of ZAR3.92bn. The leading source market for the Cape Winelands was Saudi Arabia, accounting for 22.15%, with a value of ZAR6.26bn. Wine was the leading export product from the Cape Winelands, accounting for 22.61%, with a value of ZAR6.01bn. Citrus fruit and grapes ranked second and third, accounting for 13.86% (ZAR4.01bn) and 12.13% (ZAR3.51bn) respectively. Investment According to FDI markets, the Cape Winelands attracted 9 FDI projects valued at ZAR3.41bn. All FDI projects were located in the town of Stellenbosch. There were furthermore 7 investments facilitated by the Wesgro Investment team into the Winelands. There were 19 FDI outward projects from the Cape Winelands valued at ZAR9.36bn. Tourism German visitors represented the largest share of overseas visitors to the Cape Winelands district in 2017, accounting for 17%, followed by the United Kingdom (13%) and the United States (17.5%). Visitors to Paarl and Wellington attracted a similar age segment, with most visitors between the age group of 36-50 years; while Tulbagh attracted a stronger share of travellers from the senior and retiree market (51-70 years; 34.6%).

Cape Winelands May 2018...The figure below shows the Cape Winelands population for the period of 2008 to 2017. Drakenstein and Breede Valley ranked as the most populous local municipalities

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Page 1: Cape Winelands May 2018...The figure below shows the Cape Winelands population for the period of 2008 to 2017. Drakenstein and Breede Valley ranked as the most populous local municipalities

Cape Winelands May 2018

Executive Summary

This destination fact sheet provides key trade and investment related statistics for the Cape Wineland district.

Specifically, it shows the Cape Winelands area, employment, trade and investment trends with the rest of the

world. The key highlights are provided below:

Economy

The Cape Winelands GDP grew from ZAR35.21bn in 2007 to ZAR43.79bn in 2016.

The Drakenstein municipality was the largest contributor to the Cape Winelands district GDP in 2016

valued at ZAR14.35bn.

The wholesale and retail trade, catering and accommodation sector was the largest employer with 85 339

people.

In 2016 the finance, real estate and business services sector was the largest contributor towards the Cape

Winelands GDP, accounting for 24.30%.

The food, beverages and tobacco sub-sector was the largest contributor to Cape Winelands

manufacturing sector, with a market share of 42 percent.

The wholesale and retail trade sub-sector was the largest contributor to Cape Winelands services sector,

accounting for 25%.

Trade

In 2017 the Cape Winelands was a net exporter of goods, the region exported goods to the value of

ZAR28.93bn and imported goods valued at a ZAR28.27bn, representing a trade surplus of ZAR660m.

The United Kingdom was the largest destination market for the Cape Winelands in 2017, accounting for

13.29% of exports, with a value of ZAR3.92bn.

The leading source market for the Cape Winelands was Saudi Arabia, accounting for 22.15%, with a value

of ZAR6.26bn.

Wine was the leading export product from the Cape Winelands, accounting for 22.61%, with a value of

ZAR6.01bn. Citrus fruit and grapes ranked second and third, accounting for 13.86% (ZAR4.01bn) and

12.13% (ZAR3.51bn) respectively.

Investment

According to FDI markets, the Cape Winelands attracted 9 FDI projects valued at ZAR3.41bn. All FDI

projects were located in the town of Stellenbosch. There were furthermore 7 investments facilitated by the

Wesgro Investment team into the Winelands.

There were 19 FDI outward projects from the Cape Winelands valued at ZAR9.36bn.

Tourism

German visitors represented the largest share of overseas visitors to the Cape Winelands district in 2017,

accounting for 17%, followed by the United Kingdom (13%) and the United States (17.5%).

Visitors to Paarl and Wellington attracted a similar age segment, with most visitors between the age group

of 36-50 years; while Tulbagh attracted a stronger share of travellers from the senior and retiree market

(51-70 years; 34.6%).

Page 2: Cape Winelands May 2018...The figure below shows the Cape Winelands population for the period of 2008 to 2017. Drakenstein and Breede Valley ranked as the most populous local municipalities

2

1. Area

The Cape Winelands District is situated in the Western Cape Province and is one of six districts in the province.

The district has five local municipalities: Stellenbosch, Drakenstein, Witzenberg, Breede Valley and Langeberg.

The Cape Winelands District is the second largest centre of economic activity in the Western Cape after the City

of Cape Town. The region is famous for its spectacular scenery of beautiful mountains, valleys, as well as wine

and fruit estates and attracts local and foreign tourists. The region is large, comprising an area over 22,309 km2,

with a population of 895 529 people.

The table below shows the key indicators for the Cape Winelands district. The literacy rate is used to indicate a

minimum education level attained. A simple definition of literacy is the ability to read and write, but the strict

definition is interpreted as the successful completion of a minimum of 7 years of formal education. The districts

literacy rate improved by 8.4 percent from 73.3 percent in 2007 to 81.7 percent in 2011.

CAPE WINELANDS KEY INDICATORS

Executive Mayor Alderman Dr H von Schilcht

Population (2017) 895 529

Population Density (2015) 35.8/km2

GDP (2016) ZAR43.79bn

GDP Growth (2016) 0.54%

Literacy rate (2011) 81.7%

Unemployment rate (2013) 10.66%

Ethnic groups (2015) Coloured (61.5%), Black African (27.1%), White (11%) & Asian (0.4%)

Languages (2011) Afrikaans (72.1%), Xhosa (16%), English (4.2%), Sotho (1.8%) & Other (0.4%)

Gini Coefficient (2014) 0.63

Human Development Index (2010 HDI) 0.61

Source: Quantec, 2018; Provincial Treasury, 2018; Cape Winelands District, 2018

2. Population

With a population of 895 529 in 2017, the Cape Winelands municipal area was the second most populous district

municipality in the Western Cape after the City of Cape Town, accounting for 13,6% of the Western Cape’s

population. The Cape Winelands population is estimated to have grown by an annual average growth rate of 2.38%

between 2013 and 2017.

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3

Source: Quantec, 2018

The table below shows Cape Winelands population breakdown by different ethnic groups. In 2017, the Coloured

population represented the largest ethnic group, accounting for 61.47%, followed by the Black African population

and White population, accounting for 27.11% and 11.04% respectively.

CAPE WINELAND’S POPULATION BREAKDOWN BY GROUP (2015-2017)

GROUP 2015 2016 2017 %

SHARE 2017

% CHANGE 2013-2017

Black African 227 621 235 610 242 822 27,11% 3,71%

Coloured 532 544 542 154 550 502 61,47% 2,23%

Indian or Asian 3 130 3 259 3 369 0,38% 4,14%

White 99 078 98 872 98 835 11,04% 0,15%

TOTAL 862 372 879 894 895 529 100,00% 2,38%

Source: Quantec, 2018

The figure below shows the Cape Wineland’s district population in 2017. According to Quantec,26% of Cape

Winelands population was below the working age of 15 and the region had one of lowest child dependency ratio.

Meaning there are less people dependent on those that are of a working age. The majority of the population that

reside in the region are between the ages of 20 and 24 years of age.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Population 739 777 752 014 765 791 780 980 799 592 819 030 834 450 862 372 879 894 895 529

Growth 0.45% 1.65% 1.83% 1.98% 2.38% 2.43% 1.88% 3.35% 2.03% 1.78%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

Grow

th, %P

opula

tio

n n

um

ber

CAPE WINELANDS POPULATION, 2008-2017

Page 4: Cape Winelands May 2018...The figure below shows the Cape Winelands population for the period of 2008 to 2017. Drakenstein and Breede Valley ranked as the most populous local municipalities

4

Source: Quantec, 2018

The figure below shows the Cape Winelands population for the period of 2008 to 2017. Drakenstein and Breede

Valley ranked as the most populous local municipalities respectively over the 2008 to 2017 period.

Source: Quantec, 2018

Education levels have a direct link to economic development and quality of life enjoyed by the residents of a

particular area. This is because education level influence the skills profile and the employability and innovation of

a population. The Cape Wineland’s educational output has been increasing from 2013 to 2017. The number of

students with postgraduate degrees increased by an average annual growth rate of 1.66% from 2014 to 2017 while

the number of students that obtained a bachelor’s degree increased by 1.47% during the same period. Furthermore,

the University of Stellenbosch is pioneering a project, which seeks to position the town as an innovation district.

Through the project, the town plans to design an innovative, connected, sustainable space and community.

-50 000 -40 000 -30 000 -20 000 -10 000 0 10 000 20 000 30 000 40 000 50 000

00-04 Year(s)

10-14 Year(s)

20-24 Year(s)

30-34 Year(s)

40-44 Year(s)

50-54 Year(s)

60-64 Year(s)

70-74 Year(s)

80+ Year(s)

CAPE WINELANDS POPULATION DISTRIBUTION BY AGE AND GENDER, 2016

Male Female

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Witzenberg 100 790 102 358 104 669 107 109 110 552 113 841 116 103 121 514 125 037 127 442

Drakenstein 231 850 236 005 240 716 245 441 250 696 255 968 260 770 267 549 273 221 277 899

Stellenbosch 146 733 149 581 152 322 155 461 158 744 162 436 165 630 170 028 173 092 176 279

Breede Valley 164 388 166 584 169 223 172 133 176 104 180 185 183 157 189 739 193 369 196 743

Langeberg 96 016 97 486 98 860 100 836 103 496 106 599 108 789 113 542 115 175 117 167

0

50 000

100 000

150 000

200 000

250 000

300 000

Po

pu

latio

n

CAPE WINELANDS POPULATION BY LOCAL MUNICIPALITY, 2008-2017

Page 5: Cape Winelands May 2018...The figure below shows the Cape Winelands population for the period of 2008 to 2017. Drakenstein and Breede Valley ranked as the most populous local municipalities

5

Source: Quantec, 2018

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

2013 2014 2015 2016 2017

LEVEL OF EDUCATION IN THE CAPE WINELANDS, 2013-2017

No Schooling Grade 1-7 Grade 8-11 Matric

Less than Matric Certificate with Matric Diploma with Matric Bachelors Degree

Degree and Diploma Postgraduate Degree Other/ Unspecified

Page 6: Cape Winelands May 2018...The figure below shows the Cape Winelands population for the period of 2008 to 2017. Drakenstein and Breede Valley ranked as the most populous local municipalities

6

3. Employment

The table below provides a snapshot of indicators for employment in the Cape Winelands in 2016. The

unemployment rate at this time was 10.66%, with 376 029 people employed from a working age population of 479

459 people.

EMPLOYMENT INDICATORS CAPE WINELANDS, 2016

Population aged 15-64 years (2017) 479 459

Labour force participation rate (2016) 68

Employed (2016) 376 029

Unemployed (2016) 44 941

Not economically active (2016) 189 568

Unemployment rate (2016) 10.66

Source: Quantec, 2018

Since the onset of the drought, employment in the agricultural sector has shrunk considerably resulting in

farmworker employment losses ranging between 28 000 and 35 000 jobs (BFAP, 2018). The Cape Winelands’

wholesale and retail trade, catering and accommodation sector was the largest employer with 87 339 people,

followed by agriculture, forestry and fishing and the community, social and personal services sectors employing

70 542 people and 53 914 people respectively.

Source: Quantec, 2018

4. Economic Overview

Agriculture forms the backbone of the Cape Winelands District Municipality’s economy, with approximately 80 000

hectares of cultivated and irrigated areas dedicated to the production of mostly deciduous fruit (apricots, nectarines,

pears and apples), table grapes, wine grapes and vegetables. Leading agricultural contributions to the district

economy originate from the Witzenberg and Drakenstein municipalities.

Nearly 70% of South Africa’s wine comes from the Cape Winelands. A good percentage of this wine is exported

and the wine estates themselves attract tourists with wine tasting and restaurants. More than one third (33%) of all

agricultural products in the Western Cape are produced within the Cape Winelands. Manufacturing is mainly

0 20000 40000 60000 80000 100000

Agriculture, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas and water

Construction

Wholesale and retail trade, catering and accommodation

Transport, storage and communication

Finance, insurance, real estate and business services

General government

Community, social and personal services

EMPLOYMENT IN CAPE WINELANDS SECTOR, 2017

Formal Highly-skilled Formal Semi-skilled Formal Low-skilled Informal

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7

concentrated on processing grapes and fruit into wine, juice, brandy, as well as dried and tinned fruit products.

Dairy manufacturing rose farming and thoroughbred horses are also present in the region.

Barring 2016, over the reviewed period the Cape Winelands GDP has been steadily increasing, achieving an

average growth rate of 2.87%.

Source: Quantec, 2018

The figure below shows the contribution share of Cape Winelands local municipalities to the regional GDP for the

period 2007 to 2016. The Drakenstein municipality was the largest contributor to the district GDP in 2016 valued

at ZAR14,35bn, Stellenbosch and Breede Valley were the second and third largest contributors to Cape Winelands

district, valued at ZAR10.59bn and ZAR8.43bn respectively.

Source: Quantec, 2018

The composition of the Cape Winelands economy in terms of GDP has not changed over the past five years. In

2016, the finance, real estate and business services sector was the largest sector in the Cape Winelands,

accounting for 23.4% of GDP, with a value of ZAR10.641bn. The wholesale and retail trade and the catering and

accommodation sector and manufacturing sector were the second and third largest contributors to the Cape

Winelands GDP in 2016, accounting for 17.7% (ZAR7.8bn) and 15.1% (ZAR6.6bn) respectively.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

GDP (ZARm) 35 212 37 405 36 694 37 593 38 958 40 235 41 478 42 846 43 559 43 793

Growth 6.45% 6.23% -1.90% 2.45% 3.63% 3.28% 3.09% 3.30% 1.66% 0.54%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

Gro

wth

, %

Valu

e (

ZA

Rm

)

CAPE WINELANDS GDP & GROWTH, 2007-2016

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Drakenstein 12 089 12 681 12 341 12 591 13 001 13 374 13 732 14 096 14 291 14 351

Stellenbosch 8 872 9 296 9 032 9 282 9 578 9 865 10 116 10 374 10 539 10 593

Breede Valley 6 695 7 176 7 096 7 247 7 504 7 749 7 994 8 272 8 399 8 432

Langeberg 3 510 3 804 3 725 3 819 3 955 4 092 4 225 4 389 4 474 4 478

Witzenberg 4 045 4 448 4 500 4 655 4 919 5 156 5 411 5 714 5 857 5 940

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Va

lue

(Z

AR

m)

LOCAL MUNICIPALIITY CONTRIBUTION FOR CAPE WINELANDS, 2007-2016

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8

CAPE WINELANDS GDP BY SECTOR, 2012-2016

SECTOR VALUE

2012 ZARm

VALUE 2013 ZARm

VALUE 2014 ZARm

VALUE 2015

ZARm

VALUE 2016 ZARm

% SHARE OF WC GDP,

2016

Finance, insurance, real estate and business services

9 046 9 442 9 804 10 285 10 640 9,01%

Wholesale and retail trade, catering and accommodation

6 873 7 130 7 354 7 575 7 763 12,35%

Manufacturing 6 814 6 749 6 725 6 684 6 612 11,25%

General government 4 265 4 362 4 701 4 544 4 127 9,78%

Transport, storage and communication 4 066 4 229 4 337 4 364 4 409 11,14%

Community, social and personal services 3 447 3 582 3 733 3 784 3 828 14,75%

Construction 3 062 3 170 3 243 3 300 3 341 19,62%

Agriculture, forestry and fishing 1 921 2 062 2 189 2 269 2 337 15,25%

Electricity, gas and water 668 675 679 672 661 9,49%

Mining and quarrying 73 75 81 80 75 7,92%

TOTAL 40 235 41 478 42 846 43 559 43 793 11,30%

Source: Quantec, 2018

The figure below shows the contribution share of Cape Winelands’ manufacturing sub-sectors to the district’s GDP

for 2016. The figure shows that:

Food, beverages and tobacco sub-sector was the largest contributor to Cape Winelands’ manufacturing

sector, with 42% market share followed by;

Petroleum products, chemicals, rubber and plastics Metals (14%);

The wood and paper, publishing and printing (12%).

Source: Quantec, 2018

The figure below shows the contribution share of the Cape Winelands services sub-sectors to the regions services

sector for the period 2016. The figure shows that:

The wholesale and retail trade sector sub-sector was the largest contributor to Cape Winelands services

sector, the business services sector accounted for 27% followed by,

Food, beverages and tobacco

42%

Petroleum products,

chemicals, rubber and plastic

14%

Wood and paper; publishing and

printing 12%

Metals, metal products,

machinery and equipment

10%

Furniture; other manufacturing

8%

Transport equipment

5%

Textiles, clothing and

leather goods4%

Other non-metal mineral products

3%Radio, TV,

instruments, watches and

clocks 1%

Electrical machinery and

apparatus 1%

SUB-SECTOR CONTRIBUTION TO THE CAPE WINELANDS MANUFACTURING SECTOR, 2016

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9

The business services sector, accounting for 22% and

General government services sector accounting for 16%.

Source: Quantec, 2018

Wholesale and retail trade

27%

Business services 22%

General government

16%

Transport and storage

12%

Community, social and personal

services 11%

Finance and insurance

8%

Communication 2%

Catering and accommodation

services 2%

CAPE WINELANDS SERVICES SECTORS BREAKDOWN, 2016

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10

5. Trade

The figure below shows Cape Winelands global trade for the period 2008 to 2017. The district exported goods to

the value of ZAR29.59bn in 2016 compared to ZAR28.93bn in 2017, representing a decline of 2.2%, while imported

goods were valued at ZAR32.65mn in 2016 compared to ZAR28.27bn in 2017, decreasing by 13.4%.

Source: Quantec, 2018

The United Kingdom was the largest export market for the Cape Winelands in 2017, accounting for 13.28%, with

a value of ZAR3.8bn. The Netherlands and Nambia ranked second and third valued at ZAR3.5bn and ZAR2.1bn

respectively. Other top export markets included Germany (ZAR1.7bn), Botswana (ZAR1.2bn) and the United States

(ZAR1.2bn).

The district exported 23.29% of the Western Cape’s total exports in 2017.

TOP 10 DESTINATION MARKETS FOR CAPE WINELANDS EXPORTS, 2017

RANK SOURCE MARKETS VALUE 20157

(ZARbn) % GROWTH 2013-

2017

1 United Kingdom 3,84 17,90%

2 Netherlands 3,49 9,20%

3 Namibia 2,14 -

4 Germany 1,67 11,07%

5 Botswana 1,23 -

6 United States 1,23 28,98%

7 United Arab Emirates 1,09 24,27%

8 Canada 1,07 44,99%

9 China 1,04 7,24%

10 Russian Federation 0,91 9,36%

TOTAL EXPORTS 28.93 15.97

Source: Quantec, 2018

The leading import market for the Cape Winelands district was Saudi Arabia, accounting for 22.15%, with a value

of ZAR6.26bn. The Angola and Nigeria rank second and third valued at ZAR3.03bn and ZAR2.92bn respectively.

Other top import markets include the India (ZAR2.61bn), China (ZAR1.1bn) and Netherlands (ZAR970m).

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exports (ZARbn) 10.38 11.26 12.81 13.88 14.38 20.46 22.21 27.14 29.59 28.93

Imports (ZARbn) 52.33 21.16 22.17 30.87 38.16 47.14 47.83 31.67 32.65 28.27

Trade balance -41.95 -9.91 -9.37 -16.99 -23.78 -26.68 -25.62 -4.54 -3.06 0.66

-60

-40

-20

0

20

40

60

Valu

e (

ZA

Rm

)

CAPE WINELANDS WITH THE WORLD, 2008-2017

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11

The district imported 15.28% of the Western Cape’s total imports in 2017.

Source: Quantec, 2018

The top 5 traded products for the top 5 export markets for the Cape Winelands district are shown below:

United Kingdom

Wine of fresh grapes (ZAR798m)

Grapes (ZAR574m)

Apricots, cherries, peaches (nectarines), plums and sloes, fresh (ZAR382m)

Citrus fruits (ZAR375m)

Other Fruits (ZAR334m)

Netherlands

Grapes (ZAR1.2bn)

Citrus fruit (ZAR683m)

Wine of fresh grapes (ZAR589m)

Apricots, cherries, peaches (including nectarines) plums and sloes (ZAR310m)

Apples, pears and quinces (ZAR287m)

Namibia

Wine of fresh grapes (ZAR427m)

Fruit juices (ZAR228m)

Undenatured ethyl alcohol (ZAR215m)

Other fermented beverages (ZAR149m)

Sauces and preparations thereof (ZAR101m)

Germany

Wines of fresh grapes (ZAR911m)

Fruit, nuts and other edible parts of nuts (ZAR198m)

Grapes (ZAR169m)

Undenatured ethyl alcohol (ZAR107m)

Apples, pears and quinces (ZAR72m)

Botswana

Fruit juices (ZAR261m)

Other fermented beverages (ZAR125m)

Milk and cream (ZAR119m)

Sauces and preparations thereof (ZAR119m)

Wine of fresh grapes (ZAR81m)

TOP 10 SOURCE MARKETS FOR CAPE WINELANDS IMPORTS, 2017

RANK DESTINATION MARKETS VALUE 2017

(ZARbn) % GROWTH 2013-2017

1 Saudi Arabia 6,26 -64.34%

2 Angola 3,03 -49.05%

3 Nigeria 2,92 -53.04%

4 India 2,61 -11.09%

5 China 1,11 96.81%

6 Netherlands 0,97 46.65%

7 Germany 0,91 -11.71%

8 Singapore 0,76 107.04%

9 United Arab Emirates 0,74 38.72%

0 United Kingdom 0,70 -26.41%

TOTAL IMPORTS 28,27 -45,65

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12

The Cape Winelands exported 23.21% of Western Cape’s total exports in 2017.The Cape Winelands top ten

exports amounted to 77% of total exports from the district in 2017. Wine was the leading export product from the

Cape Winelands, accounting for 21%, with a value of ZAR6.01bn. Citrus fruit and grapes, ranked second and third,

accounting for 14% (ZAR4bn) and 12% (ZAR3.51bn) respectively.

The Cape Winelands’ top ten imports accounted for 78% of total imports from the district in 2017. Crude petroleum

oils, was the leading import product accounting for 44.98%, with a value of ZAR12.72bn. Refined petroleum oil

and wheat and meslin ranked second and third accounting for 22.68% and 2.21% respectively.

TOP 10 EXPORT PRODUCTS FROM THE CAPE WINELANDS DISTRICT, 2017

TOP 10 IMPORT PRODUCTS TO THE CAPE WINELANDS DISTRICT, 2017

RANK PRODUCT VALUE,

2017 (ZARbn)

% GROWTH,201

3- 2017 RANK PRODUCT

VALUE, 2017

(ZARbn)

% GROWTH,2014- 2015

1 Wine 6,01 4,95% 1 Crude petroleum oils

12,72 -5,21%

2 Citrus fruit 4,01 27,54% 2 Refined petroleum oils

6,41 6,59%

3 Grapes 3,51 22,59% 3 Wheat and meslin 0,63 -0,30%

4 Apples, pears and quinces

2,19 17,26% 4 Fruit juices 0,55 9,19%

5 Fruit, nuts and other edible parts of plants

1,81 7,29% 5 Maize 0,48 103531,82%

6 Fruit juices 1,61 17,48% 6 Rice. 0,45 3282,04%

7 Undenatured ethyl alcohol

0,95 9,30% 7 Oil-cake 0,29 28,68%

8 Apricots, cherries, peaches

0,94 28,77% 8 Self-adhesive plates

0,23 35,53%

9 Other fruit, fresh 0,71 39,35% 9 Undenatured ethyl alcohol

0,20 2,94%

10 Other fermented beverages

0,57 18,24% 10 Harvesting or threshing machinery

0,19 43,59%

TOTAL EXPORTS 28,93 15,97% TOTAL IMPORTS 28,27 -3,82% Source: Quantec, 2018

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13

6. Investment

The table below shows the global inward FDI into the Cape Winelands. Between January 2003 and November

2017 the Cape Winelands attracted 9 FDI projects, valued at ZAR3.4bn and creating 221 jobs. All FDI projects

were into the town of Stellenbosch.

FDI INTO THE CAPE WINELANDS, JANUANRY 2003-NOVEMBER 2017

DATE INVESTING COMPANY

SOURCE COUNTRY

DESTINATION CITY

INDUSTRY SECTOR

SUB-SECTOR CAPEX (ZARm)

JOBS

Apr 2017 Nedbank Private Wealth (Fairbairn Private Bank)

London Stellenbosch Financial Services

Investment management

144,06 21,00

Jan 2017 Liquorice Paris Stellenbosch Business Services

Advertising, PR, & related

89,05 15,00

Jul 2012 Enza Zaden Enkhuizen Stellenbosch Biotechnology

In-Vitro diagnostic substances

557,89 50,00

Nov 2011 deVere & Partners (deVere Group)

Zurich Stellenbosch Financial Services

Corporate & investment banking

144,06 21,00

Aug 2011 Genetwister Africa

Wageningen Stellenbosch Chemicals Pesticide, fertilisers & other agricultural chemicals

134,89 35,00

Apr 2011 Artificial Life Hong Kong Stellenbosch Communications

Wireless telecommunication carriers

98,22 16,00

Feb 2011 Juwi Mainz Stellenbosch Alternative/Renewable energy

Wind electric power 2 036,44 22,00

May 2010 Genetwister Technologies

Wageningen Stellenbosch Chemicals Pesticide, fertilisers & other agricultural chemicals

134,89 35,00

Sep 2004 Alltech Nicholasville (KY)

Stellenbosch Chemicals Paints, coatings, additives & adhesives

65,48 6,00

TOTAL 3 404,99 221,00

Source: FDI Intelligence, 2018

The table below shows the global outward FDI from the Cape Winelands from January 2003 to November 2017.

There were 19 outward FDI projects from the region with some of the companies investing in varies projects and

markets. During the said period the region invested in projects valued at ZAR9.4bn creating a total of 2 997 jobs.

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14

FDI FROM THE CAPE WINELANDS, JANUANRY 2003-NOVEMBER 2017

DATE INVESTING COMPANY

SOURCE DESTINATION

COUNTRY SECTOR

SUB-SECTOR

CAPEX (ZARm) JOBS

Sep-17 Luno Stellenbosch United Kingdom, Singapore and Indonesia

Software & IT services

Software publishers, except video games

230,49 56

15-Jun Origin Wine Stellenbosch United States and Sweden

Food, Beverages & Tobacco

Wineries 497,65 22

May-15 PSG Konsult Stellenbosch Namibia Financial Services

Investment management

144,06 18

15-Apr Mediclinic Middle East

Stellenbosch UAE Life sciences

General medical & surgical hospitals

3 168,99 800

14-Oct Wines of South Africa

Stellenbosch Hong Kong Food, Beverages & Tobacco

Wineries 248,83 22

14-Jun Distell Group Stellenbosch Angola Food, Beverages & Tobacco

Breweries & distilleries

2 941,38 222

Jan 2014

Mxit Stellenbosch India Software & IT services

Internet publishing & broadcasting & web search

107,39 52

May 2013

Rainbow Chicken

Stellenbosch Zambia Food & Tobacco Animal production

421,69 429

Feb 2012

Entersekt Stellenbosch United Kingdom Software & IT services

Software publishers, except video games

159,77 97

Jan 2011

Booker Tate Stellenbosch Sri Lanka Food & Tobacco Sugar & confectionary products

1 440,57 400

Total 9 360,83 2 118,00

Source: FDI Intelligence, 2018

The table below shows a list of projects that were facilitated by Wesgro’s Investment Unit.

INVESTMENT PROJECTS INTO THE REGION THAT WERE FACILITATED BY WESGRO

NUMBER COMPANIES NAME SUB-SECTOR CAPEX (ZARm)

JOBS

1 Riviera Today Services 5 30

2 Groot Parys Estate (Pty) Ltd Other tourism 15 5

3 Turnaround Investment Accommodation 2 5

4 Breede Valley Fruit Processors Juice Manufacture 1 10

5 Nouvelle Mushrooms Agriculture 152 15

6 Montagu Dried Fruit Agri processing 20 70

7 Cence Community Development 110 250

TOTAL 305 385

Source: FDI Intelligence, 2018

6.1 Selected Initiatives & Opportunities in Cape Winelands

Selected initiatives in the Winelands are shown in the table below:

SELECTED ON-GOING AND APPROVED INITIATIVES IN THE CAPE WINELANDS

INITIATIVE OVERVIEW PROJECT PHASE

“Free Internet”: Free Wi-Fi hotspots

A public-private partnership (PPP) between the Stellenbosch Municipality and the social media network MXit has been established with the goal of providing free internet (Wi-Fi hotspots) to promote learning and communication for residents in the municipality.

Select hotspots operating. More hotspots to be created.

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SELECTED ON-GOING AND APPROVED INITIATIVES IN THE CAPE WINELANDS

INITIATIVE OVERVIEW PROJECT PHASE

Paarl CBD upgrade

Paarl is the economic centre of the Drakenstein municipality housing four major international companies, for example KWV and Heinz; and as a result, the relocation of businesses to the CBD and upgrade of the central town have been identified as an important project and economic opportunity.

Planning

Paarl waterfront development

Identified as a key catalytic project which will boost the tourism sector. The project consists of mixed use developments (including a hotel, restaurants, office blocks, sports science institute etc.) located on the Berg river.

Council Approved. In process of public approval.

Drakenstein Waste-to-Energy project

The municipality utilises the waste created by the area to generate electricity. The project will also extend the lifespan of the landfill site. This project has resulted in a number of awards and recognitions, winning the “Greenest Municipality” award in two consecutive years.

Tender awarded. Commence 2014

Source: Wesgro Invest in the Western Cape, 2014

According to Wesgro Invest in the Western Cape (2014) and the Local Government Handbook (2013), the following

selected investment opportunities exist in Cape Winelands:

• Value-adding in the agricultural sector with growth potential in essential oils, medicinal plants,

Buchu and olives etc;

• Electronics industry such as industrial and process automation;

• Future growth in the export-focused transport manufacturers;

• Paarl CBD Redevelopment;

• Call centres (business process outsourcing);

• Tourism (wine, leisure and sports tourism);

• Cleaning projects within different wards;

• There are many dams throughout the district wherein aquaculture may be investigated,

• Solar power grids for wine farms.

7. Companies

Below are some of the major business in the Cape Winelands:

MAJOR BUSINESSES IN THE CAPE WINELANDS, 2014

COMPANY LOCATION SECTOR ACTIVITY/INDUSTRY

Capitec Stellenbosch Business services Banking

Monis Paarl Agriculture Fruit-processing

South African Dried Fruits Wellington Agriculture Fruit-processing

Simonsberg Cheese Stellenbosch Agriculture Dairy-processing

Parmalat Stellenbosch Agriculture Dairy-processing

Rainbow Chickens Worcester Agriculture Food-processing

Ceres Fruit Juices Ceres Agriculture Fruit-processing

Nampak Paarl Manufacturing Paper

Coca Cola Paarl Manufacturing Beverages

Coca Cola Worcester Manufacturing Beverages

KWV Holdings Stellenbosch Manufacturing Beverages

Rembrandt Stellenbosch Manufacturing Tobacco

Distell Stellenbosch Manufacturing Beverages

Goudini Spa Rawsonville Tourism Accommodation

Montagu Springs Montagu Tourism Accommodation

L’ermitage Hotel Franschhoek Tourism Accommodation

Source: Winelands District Municipality, 2018

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8. Tourism The Cape Metropole Visitor Information Centres (VICs) recorded a total of 197,060 visitor engagements in 2017.

Visitor engagements at the VICs increased by a significant 14.0% when compared to 2016 (172,871). These trends

further demonstrate valuable insights into the markets visiting Cape Town.The top five international markets who

conducted bookings at the respective Cape Town VICs included Germany (17.0%), the United Kingdom (13.2%),

United States (7.5%), France (6.0%) and 4.8% from the Netherlands.

Source: Wesgro Cape Winelands Tourism Trends, 2018

This section provides key trends for towns which recorded a strong sample of responses for the purpose of analysis

by Cape Winelands town. The towns represented in this section includes Paarl, Tulbagh and Wellington.Trends by

town underlines the strength of the domestic market to the region. Over 70% of visitors to Wellington originated

from the domestic market, while Paarl recorded a higher share of respondents from the international market

(53.2%). The United Kingdom, Germany, Netherlands and France ranked amongst the top international markets

for the towns under review.Visitors to Paarl and Wellington attracted a similar age segment, with most visitors

between the age group of 36-50 years; while Tulbagh attracted a stronger share of travellers from the senior and

retiree market (51-70 years; 34.6%).

Source: Wesgro Cape Winelands Tourism Trends, 2018

17.0%

13.2%

7.5%

6.0%4.8%

4.3% 4.3%3.3% 3.2% 3.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

% o

f vis

ito

rs

TOP 10 INTERNATIONAL MARKETS TO THE CAPE METROPOLE VICs, 2017

46.8%52.6%

72.3%

53.2%47.4%

27.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Paarl Tulbagh Wellington

% o

f vis

ito

rs

CAPE WINELANDS VISTOR TOWN TRENDS, 2017

Overseas

Domestic

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9. Film

The Cape Winelands region is to the longest wine route in the world, the region attracts tourists, business travellers

and filmmakers alike. Furthermore the region is home to a number of studios which are located in one most scenic

and beautiful wine regions in the world, and features Cape Dutch buildings, world class golf courses, and

unsurpassed scenery.

Key Information

Filmmakers must complete the events application form and submit it in person or electronically. Indicate whether

road closure is required/ traffic assistance. Regarding municipal open space and parks, an application must be

made to the Community Services Department. The relevant municipality will coordinate this process to ensure one

point of entry.

Contact

Cape Winelands District Municipality Abel Sondlo

Tel: +27 21 888 5133 / +27 83 383 9425

Email: [email protected]

Wesgro Film and Media Promotion Unit

Tel: +27 21 487 8600

Email: [email protected] Website: www.wesgro.co.za

FILMS SHOT ON LOCATION

FILMS The Dark Tower, Mad Max: Fury Road, The Last House on the Left

TV SERIES Our Girl, Black Sails

For more information on this publication and other Wesgro publications please contact [email protected]. For more

publications like this visit the Wesgro publications portal on our website at http://wesgro.co.za/publications

Wesgro has taken every effort to ensure that the information in this publication is accurate. We provide said information without representation or

warranty whatsoever, whether expressed or implied. It is the responsibility of users of this publication to satisfy themselves of the accuracy of

information contained herein. Wesgro cannot be held responsible for the contents of the publication in any way.

© Wesgro, 2018