What are the Priorities?
The following point allocations for locations indicate the prioritisation thereof:
· Any rural area within the Eastern Cape, Industrial Development Zone (IDZ) or area outside the urban edge of East London and Port Elizabeth (10 points)
· Any area within the urban edge of East London and Port Elizabeth (6 points)
Similarly, the following point allocations for locations indicate the prioritisation thereof:
· Agro-beneficiation[1] (20)
· Green Economy[2] (20)
· Tourism[3] (20)
· Manufacturing[4] (20)
· Petrochemicals[5] (20)
· Capital Goods[6] (20)
· ICT & electronics and BPO&O Services[7] (20)
· Any other industry (0)
1. Agro-beneficiation - Agro-Beneficiation refers to processing and/or manufacturing activities that are based on outputs from the primary production sector, including agriculture and aquaculture. Beneficiation is the process of value-addition to primary products through further processing, including preservation, canning and packaging. Agro-Beneficiation includes fruit and vegetables production and processing; flowers farming and plant nurseries; production/processing of meat and meat products, including hides/skins, wool, mohair from cattle, sheep, goats, pigs, poultry; and also extends to feedstocks for biofuel / ethanol production, such as canola, maize and sugar beet. The sector extends to aquaculture / fish-farming and breeding, including freshwater and ocean production or harvesting; indigenous medicinal herbs, essential oils and pharmaceutical industry inputs
2. Green Economy - The green economy generally incorporates energy generation based on renewable energy as a substitute for fossil fuels as well as energy conservation to promote efficient energy use. In this sense, the green economy seeks to create jobs, to ensure realistic sustainable economic growth and to prevent environmental pollution, resource depletion and environmental degradation.
Current approaches to defining the green economy tend to focus on six principal sectors or divisions in which there are growing opportunities for manufacturing, maintenance and research:
1.1 Renewable energy in the form of solar and wind energy, biofuels, fuel cells and marine energy from tidal and
wave action.
1.2 Green building construction and maintenance, including improved energy and water efficiency and the use of environmentally friendly building materials.
1.3 Cleaner transportation technology based on alternative fuels, hybrid and electric power used in vehicles and public transport systems.
1.4 Efficient water management in urban and rural applications, including water reclamation, grey-water and rainwater management systems, water purification and stormwater conservation management.
1.5 Waste management, including re-cycling, municipal solid waste reclamation, effective waste recovery techniques and sustainable packaging applications.
1.6 Land management through organic agriculture, environmental conservation and restoration, urban forestry and parks, afforestation and soil stabilisation. In terms of job creation, green industries are generally energy and technology driven and refer to jobs in the context of energy production and consumption, specifically the renewable energy (RE) and energy efficiency (EE) sectors. RE and EE technologies provide jobs and skills development in solar technologies, wind, fuel cells, biogas and biofuels, hydrogen fuel cells and tidal and wave energy technologies and nuclear energy.
3. Tourism – The most commonly accepted definition of tourism is that “tourism comprises the activities of persons travelling to and staying places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”. As a result, any company participating in this value chain will be considered as being a part of the tourism industry.
4. Manufacturing – Manufacturing refers to the process of taking raw and secondary goods and transforming them into finished or intermediary goods either for final consumption or for use in the development of final goods. For the purposes of this fund, manufacturing excludes OEM's eligible for other subsidies and/or incentives.
Motor Industry Components include the manufacturing and supply of motor vehicle components that are not provided for in terms of the DTI Automotive Production and Development Programme (APDP) and the Automotive Investment Scheme (AIS) which provide various incentives and facilities principally for motor vehicle manufacturers and assemblers and thus do not require additional assistance through the jobs fund. The motor industry component manufacturing and supply sector includes auto-related parts and accessories, and extends to motor vehicle body panel processing, the manufacture of plastic components, catalytic converters, exhaust systems, wheels, airbags, air conditioners, auto-related electronics, auto paint, diesel injectors and seat leather, among other components.
5. Petrochemicals – Petrochemical production represents a new industrial development opportunity for the Eastern Cape, particularly arising from the future availability of primary feedstock capacity emanating from the new PetroSA oil refinery to be established at the Coega IDZ. This will improve primary fuel production capacity with new upstream and downstream opportunities for associated products and chemical feedstock. Organic commodity products such as ethanol and other alcohol blends and olefins will also serve as feedstock inputs for downstream chemical production. In general, petrochemicals are chemical products derived from a petroleum source and include ethylene, polyethylene, polyprop-ylene, polyvinyl chloride capacity, polyolefins consumption, benzenes and a wide range of associated products.
6. Capital Goods - The Capital Goods sector refers to industries that are involved with national infrastructure develop-ment programmes and plans for long-term infrastructure investment. The capital goods industry is linked to substantial capital investment programmes for power generation and distribution (Eskom), railways and rolling stock (Transnet), roads development (SANRAL) and the new PetroSA refinery at Coega. Such developments result in increased prospects for sourcing capital procurement from local producers; particularly in association with Supplier Development Programmes set up by SOEs to promote local capacity.
7. ICT &, electronics and BPO&O Services – Business Process Outsourcing (BPO) refers to a category of outsourcing that includes the contracting http://en.wikipedia.org/wiki/Contracting of the operations and responsibilities of specific business functions (or processes) to third-party service providers. BPO often refers to outsourcing business processing services to an outside firm to replace in-house services with labour from an outside firm. BPO functions usually consist of back office outsourcing, which include internal business functions such as human resources or finance and accounting services; or front office outsourcing, which includes customer-related services such as contact or call centre services.
The Information and Communication Technology sector (ICT) is generally defined in terms of industrial classification terminology and includes manufacturing and service categories.
Manufacturing includes the manufacturing of office, accounting and computing machinery; television and radio transmitters and apparatus for line telephony and line telegraphy; television and radio receivers, sound or video recording or reproducing apparatus, and associated goods; instruments and appliances for measuring, checking, testing, navigating and industrial process equipment. ICT sector activities also include service sector activities such as wholesaling of computers, computer peripheral equipment and software; wholesaling of electronic and telecommunications parts and equipment; telecommunications; computer and telecommunication services and maintenance. Retail sales and IT and television-related training services do not qualify for consideration in terms of the job stimulus fund.
