M AD IB A BAY H O LD IN G S (PTY) LTD
CO M PA N Y PRO FILE
M AD IB A BAY H O LD IN G S (PTY) LTD
CO N TEN T S
Value Statem ent Pg 3
Background Pg 4
Vision Pg 6
Location Pg 7
Catalyst Projects Pg 9
Core O bjectives Pg 10
Tim ing Pg 11
Ethos and Value System Pg 12
Value Charter Pg 13
Business M odel O verview Pg 16
Developm ent N odes Description Pg 18
Environm ental Im pact Assessm ent Pg 29
Benefits to the Econom y Pg 31
The Dir ectors Pg 36
Value Statem ent
M adiba Bay supports the grow th of tourism in the Eastern Cape through accountable developm ent, the liberation of our people,
the conservation of our envir onm ent and special heritage, and the prom otion of our unique region.
O ur passion is our integrity and belief in w hat w e do
O ur com m itm ent is to exceed custom er and stakeholder expectations
O ur focus is for excellence in our product
O ur edge is in our innovation
O ur success is in w alking the M adiba w ay – leading and serving for the comm on good.
M adiba Bay lives by the values of integrity, transparency, innovation, liberation, passion and ubuntu .
W e have shared our vision and talked the dream. N ow w e are ready to w alk the dream and in doing so, believe that w e w ill
exceed expectations in every respect.
Despite Port Eliz abeth being dubbed “The Friendly City”, the N elson M andela Bay M unicipality (N M BM ) does not have a single
unique “m ust-see” tourist attraction. The result is that m any visitors, particularly international holiday tourists, treat N M M as
an arrival or departure point and do not spend significant tim e in the area.
A key objective of M BLP is to capture this portion of the visitor m arket and increase dom estic visitors by creating a m ust-see-
attraction to draw additional visitors to the NM M .
The proposed M adiba Bay Leisure Park (M BLP) has evolved over a five year period from a R 50-m illion vision to w hat could
potentia lly be a m ulti-billion rand m ega project rolled out over a period of ten years. The project w as initiated by a broadly
based em pow erm ent group w ho liaised w ith the N elson M andela Bay M etropolitan M unicip ality (N M BM M ) and other key role-
players to utiliz e existing resources in the region to create a unique “must-see” attraction for the city.
This project is an attempt to stretch limited Rands by creating a w orld-class sustainable project utiliz ing existing assets and
com bining them in an appropria te location in such a w ay that it w ill provide a unique experience that cannot be repeated
anyw here else. Importantly, it w ill do so w ithout comprom ising the existing benefits of the area for local inhabitants.
M adiba Bay Leisure Park w ill contribute to the econom ic upliftm ent of the region through the enhancem ent of existing tourism
infrastructure, job creation and participation by previously disenfranchised individuals in the ow nership , developm ent and
operation of the project.
Analysis of the Eastern Cape’s econom y argues that sustained grow th in the tourism sector, w ith its w ell-established m ultip lier
effect on em ploym ent creation, is the key to regional econom ic developm ent and hence the resolution of the m yriad
consequences of poverty w hich confront the Eastern Cape, particularly in the rural areas.
If the region is to address these problem s effectively, it is clear that tourism infrastructure m ust be developed. It m ust not
only m eet the high expectations of the m odern traveler, but also draw upon those attributes and characteristics of the region
w hich set it aside from other destinations and thus provide a unique tourist experience not found elsew here in the w orld
It is for this reason that M adiba Bay proposes a num ber of initia tives w hich are designed deliberately to enhance N elson
M andela Bay’s standing as a unique tourism centre offering experiences and attractions uniquely of the Eastern Cape. At the
sam e tim e, the proposed projects have been carefully tailored to m eet key provincial and national developm ent goals.
It is im portant to em phasiz e that all the proposed precincts in the M adiba Bay Leisure Park constitute not only the creation of
new assets that stand alone in their ow n right, but also add value to existing infrastructure and facilities. This is in keeping
w ith our conviction that N elson M andela Bay’s tourism -grow th strategies should build upon those historical, cultural and
environm ental features w hich are currently underdeveloped and w ill create a destination for local, national and international
visitors seeking a distinctive Eastern Cape experience.
M adiba Bay’s vision is to create a “green lung” for the city – a leisure orientated coastal resort w ith tourist facilities and
activities, w ithin a w ildlife and conservation area, all w ithin m inutes of the city centre. The city-based leisure park concept w ill
incorporate aspects such as w ildlife, marine life, culture, outdoor adventure, agriculture, arts and crafts and other attraction
of the Eastern Cape Province, ensuring that visitors have a truly African experience. Each activity offered at M BLP w ill be
leisure orientated and w ill include empow erm ent, education, job creations, skills transfer and a developm ental component to
ensure the maxim um positive im pact for the region.
The park w ill serve as an attraction for people to visit the N elson M andela Bay area, spend m ore tim e in the city and provide
visitors w ith a taste of w hat can be experienced in the surrounding area.
The core attractions w ill be located in 16 separate precincts in an area approxim ately 5,577 hectares in extent. It w ill operate
on a sustainable developm ent m odel by creating and facilitating developm ent opportunities. In so doing, the project w ill create
job opportunities, provide education to the comm unity and em phasiz e conservation.
Additionally, the project w ill provide a “green lung” that w ill preserve the cities valuable land and coastline w hich is being
increasingly threatened by poaching, vandalism , haphazard developm ent, squatting and alien vegetation.
The proposed M BLP w ill be located on a large piece of land betw een the N M M international air port, the N elson M andela
M etropolitan U niversity, and the south east coastline of the Eastern Cape, stretching 30 kilom eters from Cape R eciefe in the
east to Sardinia Bay in the w est.
The site for M BLP is strategically located 5 kilom eters from the N M M city centre, prim e beachfront area, international airport
and am enities. The site occupies m ost of the land to the south of the Port Eliz abeth Airport and includes a long stretch of
M arine Drive that has over m any years provided a unique pleasure drive for all the inhabitants of the City as w ell as visitors to
the Eastern Cape.
The w hole lease area falls w ithin N elson M andela M etropolitan M unicip al area of jurisdiction and it stretches over three
different Allotm ent Areas, including a portion of W alm er, m ost of Schoenm akerskop and a portion of Sum m erstrand. The
project area is designated in the lease agreem ents betw een the N M BM and East Cape Show case (Pty) Ltd. Further agreem ents
deals w ith minor portions to include the W elcom e Precinct site as w ell as the Future W elcom e Precinct.
M ost of the Driftsands Area is vacant, consisting of undeveloped land in a natural state, invaded w ith alien vegetation, as a
result of the sand stabiliz ation that w as implem ented at the turn of the previous century. The area is served by M arine Drive
that is a public road providing access to all the existing tourist and recreational facilities and holiday resorts along M arine
The lease area is currently accessible via M arine Drive from Summ erstrand and from Victoria Drive at the Schoenmakerskop
R oad as w ell as from the Sardinia Bay R oad. The proposal w ill not impact on the current free public access to the coast. A
large section of M arine Drive is already subject to access control at al the resort areas. O ne of the aspects to be addressed as
part of the EIA and TIA is how the current M arine Drive w ill be used in future in relation to the developm ent proposals for the
The implem entation of M adiba Bay Leisure Park w ill take place in a phased manner. Five catalyst projects have been identified
as “m ust-have” projects to kick start the developm ent. The catalyst projects com prise the majority of the proposed
developm ent and include the follow ing:
o The W elcom e Centre
o M adiba Bay Safari Park (incorporating Big Cats, Big Five, Adventure and Eco Precincts)
o Coastal Leisure Club
o Golf Precinct
o M adiba Bay Leisure & R etail Tourism N ode
Core O bjectives
The developm ent is regarded as a project of M etropolitan importance, hence its inclusion in the 20/20 Vision of the Spatial
Developm ent Fram ew ork (SDF) for the N M BM w hich aim s to prom ote both tourism and sustainable developm ent. The South
African Governm ent has also identified the project as one of a handful of strategically im portant tourism developm ents that it
w ill prom ote internationally.
The core objectives underpinning the project are to:
o Establish an econom ic liberation m odel that provides the forem ost fram ew ork for econom ic, social and envir onm ental
o Achieve best corporate complia nce and governance in line w ith global best practice
o See dem and-driven business achieving inclusive ow nership , m anagem ent, co-operation and partnership
o Address poverty alleviation, joblessness and econom ic benefits w ithin and beyond our boundaries through an all inclusive
system that show cases the best of the best
o To consistently comm unicate our vision and objectives
The rollout program m e below includes currently identified m ilestones, w hich w ill be further inform ed by the EIA R ecord of
Decision (R O D) w hich is anticip ated to be received in the second quarter of 2006. Contingent thereon, the rollout is anticipated
as follow s:
o The W elcom e Centre: is scheduled to be trading by Decem ber 2006
o M adiba Bay Safari Park: com prising Big Cats, Big Five, Adventure & Eco Precincts is scheduled to
be operational by Decem ber 2007
o Coastal Leisure Club Phase 1 of 4: is scheduled to be operational by Decem ber 2008
o Golf Precinct Phase 1 of 4: is scheduled to be operational by Decem ber 2008
o M adiba Bay Leisure & R etail Tourism N ode: rollout tim ing to be confir m ed
Further projects w ill rollout thereafter cogniscent of the 2010 W orld Cup soccer and the NM B Vision 2020 – “The key to our
Ethos and Value System
“The truth is that w e are not yet free; w e have m erely achieved the freedom to be free, the right not to be oppressed. W e
have not taken the final step of our journey, but the fir st step on a longer and even m ore difficult road. For to be free is not
m erely to cast off one’s chains, but to live in a w ay that respects and enhances the freedom of others. The true test of our
devotion to freedom is just beginning.” – N elson M andela, Long W alk to Freedom
The nam e “M adiba” is synonym ous w ith N elson M andela, recogniz ed as the m ost loved and charismatic statesman and icon of our
tim es. He is a sym bol not only to South Africans but to all people. His life story tells the w orld of the overw helm ing pow er of
dignified, principled courage in the face of diversity and oppression.
The ethos of “M adiba” underpins South Africa’s value system ten years after the first dem ocratic and free elections. “M adiba”
the m an represents a unified nation of forgiveness, reconcilia tion, em bodim ent, faith and truth.
The m anner in w hich M adiba em pow ered South Africa through qualities of honesty, betterm ent, upliftm ent, creativity and
fairness is adm ir ed w orldw ide. There has alw ays been one golden thread running through the life of N elson M andela – service
to the people from w hich he derives his m assive support and m oral authority.
The aim of “M adiba Bay” is to implem ent this ethos, to be the first African econom ic, social and environm ental liberation m odel
that w ill ensure the creation of opportunities for em pow erm ent businesses to enter South Africa’s mainstream econom y in a
risk-free, managed environm ent.
It is M adiba Bay’s intention to w alk the dream and not m erely to talk it. U nderpinning the M BLP “ethos” is a value system that
instigates a paradigm shift in response to our changing w orld and to face critical challenges that individuals and nations face.
The M adiba Bay Leisure Park Charter recognizes that business princip les need to be demand driven and strongly supported by
transaction facilitation to create an African “footprint” and m ethodology – develop an “African solution for an African problem ”
– w hich w ill impact on the w ider continent.
The M adiba Bay Leisure Park Charter’s key strategic princip les are:
o Econom ic Em powerment is broad bases – The M BLP Charter seeks to accelerate the de-racialisation of the South
African economy and fast track the re-entry of historically marginaliz ed com m unities into the mainstream of the
o Econom ic Em powerm ent is an inclusive process – The M BLP Charter prom otes a m ore equitable econom y benefiting all
South Africans, individuals and enterprises. The process is an inclusive one, and all enterprises operating w ithin South
Africa can, and indeed should, particip ate in this process.
o Econom ic Empowerment is part of our growth strategy – This strategy stresses an econom ic empow erm ent process
that is associated w ith grow th, developm ent and enterprise developm ent, and not m erely the redistribution of existing
w ealth in a risk free environm ent. N ew , inclusive patterns of w ealth accum ulation m ust com e from both existing
econom ic activity and new economic activity. Thus w e need higher levels of investm ent that generate a substantial
volum e of new econom ic activities.
o Catalyse a sustainable m odel that fosters and enabling environm ent through –
Shared comm on resources
O ptim al operational efficiencies
Elimination of barriers to participation
M axim um return on investm ent at an acceptable risk
At the sam e tim e, cogniz ance m ust be taken of the need to change ow nership and partnership patterns. This has received
considerable attention, for it is the aim of M adiba Bay to develop a m odel that contributes in a truly m eaningful w ay. The
follow ing princip les have been developed to guide the im plem entation of all levels of M BLP:
o Fair share – All participants involved in a M adiba project activity should get their fair share of the incom e, in dir ect
proportion to their contribution of the activity
o Dem ocracy – All participants involved in a Madiba project activity should have the right and opportunity to particip ate in
decisions that concern them .
o Respect – Both host and visitor should have respect for human rights, culture and the environm ent. This includes issues
such as safe w orking conditions, the prom otion of gender equality, HIV/AIDS aw areness, etc.
o Reliability – The services delivered to M BLP should be reliable and consistent. Basic safety and security should also be
ensured by host and visitor
o Transparency – M BLP businesses should establish m echanism s of accountability. This includes clear definition of
business ow nership , sharing of profits, benefits and losses, access to information, etc.
o Sustainability – The M BLP businesses should strive to be sustainable. This includes issues such as econom ic viability
through responsible use of resources, reduction of buying pow er leakage, support of historically disadvantaged
entrepreneurs, improved know ledge, etc.
o Closed econom y – M BLP envisages operating as a closed econom y in w hich staff m em bers living on site spend m oney
w ithin the park. This w ill ensure that m oney is continuously circulated w ithin M BLP and leakages of expenditure are
o Lowering that breakeven point – M BLP w ill strive to low er the breakeven point of concessionair es by doing an analysis in
order to determ ine w here costs can be saved and by incorporating sustainable business practices. For example,
functions such as book keeping and m arketing w ill be outsourced, thereby leaving the concessionaries to focus on their
core function and thus saving costs.
o Leakage – M BLP are m aking efforts to increase the visitor num bers and reduce leakage of visitors to attractions outside
M BLP through the im plem entation of a coordinated approach to retain visitor interest. This effort is being coordinated
in conjunction w ith input from key concessionaries and professionals.
Business M odel O verview
The diagram below illustrates the main com ponents of the M BLP business m odel and how each institution structure relates
to each other and to the business m odel as a whole.
The key institutions included in the M BLP business m odel are:
o N elson M andela Bay M etropolitan M unicipality
o M adiba Bay Holdings (Pty) Ltd
o East Cape Show Case (Pty) Ltd
o M adiba Bay Em pow erm ent & Concession (Pty) Ltd
o M adiba Bay Developm ent Agency (Pty) Ltd
o M adiba Bay Projects (Pty) Ltd
o M adiba Bay Fund (Pty) Ltd
o M adiba Bay Asset M anagem ent (Pty) Ltd
o R M I Solutions (Pty) Ltd
M ost of these institutions have a dir ect relationship w ith the concessionaries responsible for operating the M adiba Bay Safari
Park, Coastal Leisure Club and each of the id entified 500 concessions w ithin M BLP. The roles, objectives, function and
interaction of each of these institutions are discussed in m ore detail in the follow ing section.
MADIBA BAY HOLDINGS (PTY)
* MANAGEMENT CONTRACT
* OWNER OF BRAND
* MEDICAL AID/PENSION
* SOLE RIGHTS &
ARRANGE FINANCE * EAST CAPE SHOWCASE
* LEASE MADIBA
* ROD 30% & CONCESSION
MANAGEMENT FEE 3% (PTY) LTD &
* CONCESSCION BROAD BASED
DEVELOPMENT MADIBA BAY MADIBA BAY
AGENCY PROJECTS (PTY) FRANCHISE FEE EQUITY PARTICIPATION
FUND (PTY) LTD
(SECTION 21) LTD
BIG CAT BIG ADVEN- ECO
MADIBA BAY SAFARI WORLD LEISURE CLUB
D evelopm ent N odes D escription
M BLP is com prised of 16 Developm ent N odes w ith various activities planned w ithin each precinct. These are:
1. W elcom e Centre
The w elcom e centre for M BLP (1,7 hectares) includes a very visible entrance point (Gatew ay), adm inistrative facilities, requir ed
services and an access road to the N orth Gate Precinct. The architecture w ill follow the African-them e, w hich w ill be the
predom inant them e throughout the park.
2. Big Cat Development N ode – 1 of 4 precincts com prising the M adiba Bay S afari Park
The Big Cat Developm ent N ode is an exclusive area (460 hectares) w here tourists w ill only be permitted to enter the area on
organiz ed excursions, giving them a four-hour experience of the “Big Cats” in 4 x 4 M adiba Bay vehicles and guided by a
know ledgeable driver/gam e guard.
The Big Cat Developm ent N ode w ill comprise of the follow ing components:
o Gam e Drives
o Day Camp
o Cat W alks and Breeding Facilities
3. Big Five Developm ent N ode – 1 of 4 precincts com prising the M adiba Bay S afari Park
This exclusive (770 hectare) node w ill offer visitors a 5-star safari experience, just m inutes aw ay from an international air port,
casino and beachfront playground. O n arrival visitors w ill be m et by a gam e ranger and driver w ho w ill w hisk them aw ay in an
open 9-seater gam e vehicle. The arm ed and equipped gam e ranger w ill prepare the safari group for a once-in-a-lifetim e
experience – com ing face to face w ith Africa’s five m ost priz ed w ild animals: the lion, the elephant, the rhinoceros, the leopard
and the buffalo.
The Big Five Developm ent N ode w ill com prise of the follow ing components:
o M ixed U se Centre
o Conference Centre
o African Cam p Site
o Gam e Drives
o R eception Area
4. A dventure Developm ent N ode 1 of 4 precincts com prising the M adiba Bay S afari Park
The Adventure Developm ent N ode, (690 hectares), w ill offer m ild to w ild outdoor adventure experiences for thrill seekers of
all ages. The developm ent node w ill aim to introduce the visitor to adventures involving close contact w ith different kinds of
buck and other sm all animals, as w ell as nature related experiences. M ajor m an-m ade landscape features w ill include: a low -
lying lake and canal w aterw ay linked to the higher inland ridges by a fast flow ing river, tw o dam s and 60km of contoured
adventure paths designed to accomm odate a variety of adventure activities.
The Adventure Developm ent N ode w ill comprise of the follow ing components:
o Adventure Trails
o African villages
o W ater Activities
o O ff R oad Adventure
o M ixed U se Centre
5. Coastal Leisure Precinct
The area to the south of M arine Drive (70 hectares) is allocated as the Costal Leisure Club Developm ent N ode. M ost of this
area has been used for holiday accomm odation purposes for m any years and includes various nodes of developm ent w ith
different kinds of facilities for holidaymakers as w ell as day visitors. The coastal leisure club developm ent node offers visitors
various types of accom m odation and targets specific m arkets such as ski boat ow ners, budget travelers, young fam ilies, etc.
The Coastal Leisure Club Developm ent N ode w ill comprise of the follow ing com ponents:
o Health Hydro
o Conference Centre
o M adiba Bay R esort
o Entertainm ent Centre
o Tim e Share Accom m odation
o M adiba Bay R esorts Caravan Park
o Student Accomm odation (gap year)
o Backpackers Accom m odation
o Vacation Club Accomm odation
o Ski Boat Accom m odation
o Spir itual R etreat
o Schoenies Camp & Caravan Site
o M angold Pool Caravan Park
6. Lakes Leisure Club
The Lakes Leisure Club Developm ent N ode (100 hectares) is situated around the proposed lakes that are envisaged to the north
of M arine Drive. Different types of holiday accom m odation are envisaged to com plim ent the accomm odation to the south and to
cater for the additional dem and for holiday accom m odation across the incom e groups.
The Lakes Leisure Club w ill com prise of the follow ing components:
o Group Accomm odation
o Holiday Accom m odation
o Caravan Park
o Tent Cam p Site
7. Golf Developm ent N ode
M adiba Bay Golf Developm ent N ode w ill comprise of an exclusive eco-links golf resort developm ent in one of the m ost
spectacular coastal golf course settings in the w orld. In addition, there w ill be a golf academ y and driving range on land
provided by the N elson M andel M etropolitan M unicipality.
The Golf Developm ent N ode w ill com prise of the follow ing components:
o Links Golf Course
o M ashie Golf Course
o Golf Health Hydro
8. M arine Developm ent N ode
This developm ent node should also becom e the hub of all w ater sports, such as Deep Sea Diving, W hale W atching, Deep Sea
Angling, R ock Angling, Snorkling, Surfing, Paddle Surfing, etc. A public line fishing area w ill rem ain open to the public for rock
and line fishing activities. Provision w ill be m ade for day picnic sites, parking areas for fisherm en and ablution facilities. In
addition to this, a concession w ill be given to ski boats for fishing licenses to that the low er end of the market can also benefit
from fishing, thus allow ing SM M E’s and BEE fishers to particip ate.
The M arine Developm ent N ode (90 hectares) w ill com prise of the follow ing com ponents:
o Holiday Accom m odation
o Fishing Harbour & Village
o Abalone-, Seaw eed, Fish Farm s
9. S outh Gate Developm ent N ode
The South Gate node (10 hectares) w ill be one of the tw o primary mixed-use nodes in the park and w ill form part of the M arine
Drive M eander. The South Gate node w ill offer access to many of the facilities offered at M adiba Bay Leisure Park. Because
individuals w ill not be allow ed to take private vehicles into m any of the precincts, this w ill becom e the arrivals and departure
point for all safaris off M arine Drive. The objective of the node is to create a m ore form al and up m arket m ixed use facility to
com plem ent the Lakes and Coastal Leisure Precincts and is envisaged to becom e the aquatic hub of M BLP.
The South Gate Developm ent N ode w ill com prise of the follow ing components:
o M ixed U se Area
o Exhibition Area
o Entertainm ent Area
10. Future W elcome
This area (1,7 hectares) is envisaged as a future w elcom e centre for w hen the bypass and new road proposals are im plem ented.
It w ill serve a sim ilar function as the current w elcom e centre, but m ay include a mixed use area.
In the case of the Future W elcom e Centre that w ill be situated at the entrance point on the edge of the Park, the retail and
office space com ponents in the m ixed use definition w ill have to be refined w hen the m ore detailed plans are prepared to
address the cir cum stances at the tim e, since it is a longer term proposal.
11. M adiba Bay Leisure and Retail Tourism Node in the N orth Gate Developm ent N ode
The N orth Gate Developm ent N ode (270 hectares) is envisaged to be the heart of M adiba Bay Leisure Park and w ill provide the
m ain access points to the Big Cats, Big 5 and A dventure Developm ent N odes. These developm ent nodes w ill all utiliz e this node
as their central hub w here facilities are provided and from w here the guided tours w ill start.
The ideals of education and empow erm ent are part and parcel of the different precincts at M adiba Bay. N o w here w ill this be
m ore apparent than in the N orthern N ode w here focus w ill be on the cultural centre and village to stage the cultural heritage
and diversity of the Eastern Cape. Attractions w ill be designed to appeal to tourists and to support organiz ed educational
program m es aim ed at young people. Highlights w ill include a traditional Xhosa cultural village, an Apartheid M useum , and O x
W agon Lager, as w ell as a variety of traditional food outlets.
Visitors w ill have the opportunity to explore num erous enticingly signposted lanes leading off of the main northern access road
and each lane w ill lead to ventures w here people live, w ork, train and produce agricultural products. Examples of these products
include: beer, cheese, butter, W it blitz , honey beer, horses dog school, ostriches, etc. The N orthern precinct w ill also be
w here m ost of the staff quarters are situated.
The N orthern Gate Developm ent N ode w ill comprise of the follow ing com ponents:
o M ixed U se Area
o Cultural Centre
o Cultural Villages
o Farm Product Display
o Caravan Park/Cam ping
o Look-Try and Buy Centre
o R etail Centre
o Sports and R ecreation Area
o Agri Industria l Area
o Touch Farm
o Fresh Veggie M arket
o Agridom e
o W ild O strich Farm
o Steam Train
12. A gri Developm ent N ode
Situated betw een the N orthern Gate, the Port Eliz abeth International Airport and W alm er Tow nship, the Agri Precinct w ill be
a show case for agriculture in the Eastern Cape. The area is 690 hectares in extent and w ill be a major empow erm ent initiative,
creating jobs and business opportunities for the residents of the depressed W alm er Estates Tow nship.
Various primary agricultural projects w ill be established, including fruit and vegetable production, aqua farm ing and hatcheries,
aloe farm ing, w ild fow l farming, ostrich farm ing, pig farm ing, dair y farming and com post (conventional and verm iculture)
Proposed activities for this developm ent node include:
o Anim al farm
o Plant cultivation
o Education farm and touch farm
o Fresh produce market
o N iche market agro-processing
o Depot for road transport link
o Depot for perishable product export
13. Edu Developm ent N ode
Stragetically situated adjacent to the N M MU campus (i.e. South of M arine Drive and north of the Cape R eciefe Nature
R eserve) on 30 hectares of land, M adiba Bay Edu developm ent node is intended to support the educational focus of M adiba Bay
Leisure Park. It w ill include educational, training and research and developm ent dim ensions.
The Edu developm ent node w ill also provide a new empow erm ent and employm ent creation bridge betw een business and higher
education in w hich business w ill identify current skills requir em ents and support research, developm ent and training programm es
designed to m eet those requir em ents.
The Edu Precinct w ill comprise of the follow ing com ponents:
The Edu Developm ent N ode w ill comprise of the follow ing components:
o Student Accomm odation
o Science Park
o High Performance Centre
14. Cape Receife Development N ode
The Cape R eceife Developm ent N ode (370 hectares) w ill focus on m aintaining and expanding existing facilities in the area. W ith
its com bination of rocky shoreline, gullies, w ide sandy beaches, dunes, w etlands, fynbos and lighthouse, it is an ideal location to
show case the coastal and maritim e diversity of the Eastern Cape. The developm ent node w ill reflect the com m ercial,
conservation and recreational dim ensions of the Eastern Cape coastal and m arine envir onm ents and be an important educational
The Cape R eceife Developm ent N ode w ill comprise of the follow ing components:
o SAM R EC Centre
o Bird Hide
o Pengiun R elease Facility
o Abalone R anching
o Bird Park
15. Eco Developm ent N ode 1 of 4 Precincts com prising the M adiba Bay S afari Park
The Eco Developm ent N ode is 1 200 hectares in siz e and includes the Sardinia Bay Nature R eserve as w ell as the area north of
it up to the boundary of the Lovem ore Park and Sardinia Bay residentia l areas. It is envisaged that this developm ent node w ill
not be developed extensively, but rather be maintained as a nature reserve and therefore viewed as a nature based escape from
the city. The precinct w ill include existing facilities such as the Sacram ento restaurant w here light m eals and drinks are
served. Horse rid ing, hiking and gam e view ings are just som e of the exciting projects that w ill be developed in the Eco
Developm ent N ode.
The Eco Developm ent N ode w ill comprise of the follow ing components:
o Hiking Trails
o Day Camp
o City Escape
o Infrastructural redevelopm ent of Sardinia Bay
16. A viation Developm ent N ode
Located just outside the original lease area (i.e. in the additional lease area) on 20 hectares of land, next to the airport
m useum s, the current land w ill be made available for aviation and logistics training.
The Aviation Developm ent N ode w ill com prise of the follow ing components:
o Air and Logistics School
o Student Accomm odation
Environm ental Im pact Assessm ent
The z oning of the site has been approved to Special Purposes Z one, w ith certain conditions attached, one of w hich is to
undertake an Envir onm ental Impact Assessm ent (EIA). The z oning allow s for identification of precincts w ith specified
“footprint areas” for construction of buildings and provision of facilities for the im plem entation of the project. Appropriate
arrangem ents are requir ed for the use of M arine Drive.
An independent consulting com pany has been appointed to undertake the Envir onm ental Impact Assessm ent in term s of The
Environm ental Conservation Act, 1989 for the follow ing tw o listed activities:
o The construction or upgrading of public and private resorts. This project falls into this category of listed activities,
both in that it proposes for the upgrade of a previously constructed resorts and the construction of proposed new
o The change of land use from agricultural or undeterm ined use to any other land use. The change in z oning from various
z oning (e.g. Comm unity, Special Purposes) to Specia l Purposes Z one has been authoriz ed. The change land use thus
requir ed that an EIA process be follow ed.
CES w ill undertake the EIA process in three phases:
o O pportunities and constraints assessm ent
o Scoping phase
o Environm ental Im pact Assessm ent
Newspaper adverts – 18 March 2005
BID circulation – 4 April 2005
Identify Interested and Affected
Public Meeting – 13 April 2005
Parties (IAPs) andStakeholders
Personal consultation with key IAPs
Issue & Response Telephonic communication with key organizations
Draft Scoping Report
Newspaper adverts – 30 May 2005
Issue & Response Public & Authority review – 30 May to 27 June 2005
Trail revised and Consultation meetings with key stakeholders
Written comments received
Final Scoping Report
Public Review Submission to DEAET
(18 August 2005)
Response from DEAET
(8 March 2006)
Response to DEAET’s
comments & submission of We are here
Plan of Study for EIR
(26 April 2006)
Benefits to the Econom y
An econom ic im pact m odeling exercise w as undertaken w hile developing the economic feasibility plan in order to represent the
potentia l econom ic impact that M BSP and the w hole M BLP project could have on N M BM and on the broader econom y. The
im pact analysis focuses on the direct, indir ect and induced effects on the local and regional econom y during the construction
phase and operational phase of the M BSP and M BLP.
The im pact analysis of M BLP is based on the proposed R 4 billion investm ent in the M BLP and the R 1 billion investm ent in the 500
M BLP concessions to derive dir ect and indir ect im pacts w hile the analysis of M BSP is based on a R 200 m illion investm ent.
Construction Phase Impact
The table illustrates the outcom e of the im pact analysis (construction phase) in tabular form at. The M BSP analysis makes up a
part of the M BLP analysis, but has also been presented separately so that it can stand alone if necessary. It is also im portant
to note that the table sum marises the anticipated benefits to the N M BM , w ith the exception of the grey shaded block, w hich is
a benefit to national governm ent through taxation.
Sum mary of Im pact M odelling Exercise – Construction Phase
Im pact Varia ble M BSP M BLP
Increase in new business sales R 432,549,000 R 10,703,530,000
Increase in tem porary em ploym ent 1,170 30,500
Increase in salaries & w ages R 47,666,000 R 1,242,572,000
Increase in GGP R 164,412,000 R 4,068,395
Increase in RSC levy R 839,000 R 16,793,000
Increase in rates and taxes - -
Incom e from lease fee - -
Increase in national taxable incom e R 9,535,000 R 248,514,000
Construction im pacts are temporary in nature for the duration of construction. The next table illustrates the outcom e of the
im pact analysis (operational phase) in tabular format.
O perational Phase Im pacts
Sum mary of Im pact M odelling Exercise – Construction Phase
Im pact Varia ble M BSP M BLP
Increase in new business sales R 35,797,000 R 1,144,063,000
Increase in tem porary em ploym ent 164 5,395
Increase in salaries & w ages R 6,087,000 R 219,792,000
Increase in GGP R 35,797,000 R 1,144,063,000
Increase in RSC levy R 23,000 R 1,214,000
Increase in rates and taxes R 3,670,608 R 122,353,609
Incom e from lease fee R 953,032 R 31,767,736
Increase in national taxable incom e R 1,217,000 R 43,958,000
O perational impacts are im pacts sustainable for the duration of the developm ent and it is evident that M BLP has the potential
to have a significant net im pact on N M BM , both during construction and after.
There are num erous other factors related to M BLP that can not be easily quantified, but w hich w ill also benefit the N M BM , for
exam ple black econom ic em pow erm ent, education and training and staff savings through live/w ork arrangem ents.
S um m ary of Benefits
M adiba Bay Leisure Park Benefits
The developm ent of the M BLP and the 500 concessions w ill result in the expansion of existing business, new business
investm ents, construction spending (in the N MM and the surrounding region) and operational incom e.
As a result of this stim ulation of business activity the follow ing econom ic benefits for N M M can be summ ariz ed:
o The total increase in dir ect and indir ect new business sales can be estim ated to be around R 11,8 billion
o As a result of the investm ent in M BLP, there w ill be an associa ted increase in direct and indirect temporary employm ent
by 30,500 and dir ect and indir ect perm anent jobs by 5,395 jobs (including concessionair e em ploym ent). The total
increase in em ploym ent for the M BLP can be estimated at 35,895 jobs.
o The increase in new business sales and em ploym ent (and associated salaries and w ages) through the investm ent in the
new developm ent w ill have a total increased salaries and w ages by R 1,4 billion.
o There w ill be an increase in the GGP of N M M of approxim ately R 5,2 billion and an increase to the respective econom ic
grow th rates.
o The M BLP and corresponding employm ent generation w ill result in an increase of the R SC levy of R 20,9 m illion during the
construction of the developm ent and approximately R 836,000 during the operational phase of the developm ent.
o There w ill be an increase in national taxable incom e of R 292,5 m illion.
It is clear from the economic impact analysis conducted above, that there are significant net econom ic benefits for N M M and
the surrounding region as a result of proposed M BLP.
M adiba Bay Safari Park Benefits
The developm ent of the M BSP w ill result in the expansion of existing businesses, new business investm ents, construction
spending (in the M etro and the surrounding region) and operational incom e.
As a result of this stim ulation of business activity the follow ing econom ic benefits for N M BM can be sum mariz ed:
o The total increase in dir ect and indir ect new business sales can be estim ated to be betw een R 468 m illion.
o As a result of the investm ent at the M BSP, there w ill be an associated increase in tem porary em ploym ent of 1,170 jobs
o The increase in new business sales and em ploym ent (and associated salaries and w ages) through the investm ent in the
new developm ent w ill have a total increased salaries and w ages of R 53,7 m illion.
o There w ill be an increase in the GGP of N M M of approxim ately R200 m illion during construction and operational phase of
the developm ent.
o The Safari Park and corresponding em ploym ent generation w ill result in a increase of the R SC levy of R 839,000 during
the construction of the developm ent and approxim ately R 23,000 during the operational phase of the developm ent.
o There w ill be an increase in national taxable incom e of R 10.8 m illion
It is clear that from the econom ic impact analysis conducted above, that there are net econom ic benefits from N M M and the
surrounding region as a result of proposed M BSP.
The D irectors
Lonwabo Fezekile M ahlati (Fez)
o M ore than 15 years experience in the financia l services sector
o CEO of Gem vest 3 (Pty) Ltd an organiz ation advising Southern African consortia on investm ents and transactions
o Founder and Dir ector of M adiba Bay Holdings (Pty) Ltd – the N elson M andela Bay M etropolitan show case for tourism in
the Eastern Cape
o Fez articled at Touche R oss (CA) (SA) – now Deloitte & Touche w hereafter he lectured accounting and auditing at the
U niversity of the W estern Cape
o His previous w ork experience includes Senior Investm ent Consultant for Seeff Financial Services, M arketing M anager
for Permanent Bank and Executive Dir ector at Alexander Forbes.
o Fez continues to provide consulting services to M ultinational com panies like R olls R oyce Aerospace
o He has helped established black empow erm ent initia tives such as The M Syndicate Investm ents (Pty) Ltd, Thebe
Investm ent Holdings and Kopana Ke M atla, a w holly ow ned investm ent company of the Congress of Southern African
Trade U nions (CO SATU )
Leandro M anual Sam uels (Lee)
o Lee has been responsible for developing housing sites and buildings for previously disadvantaged com m unities in East
London, U itenhage, Port Eliz abeth, George and Cape Tow n
o Lee w as Chairm an and M anaging Director of Cleary Park Properties (Pty) Ltd w hich developed the R 60m Cleary Park
shopping complex: the largest privately developed black shopping centre in South Africa at that tim e
o He established Radio Safari, the w orld’s first w ildlife safari
o Lee is one of the founder directors of Fieldstone Southern Africa w hich w as responsible for the N SB transaction
together w ith other pending mandates for m any South African and International Com panies
o He is also one of the dir ectors of M adiba Bay Holdings (Pty) Ltd
Johann Augustus D reyer
o J ohann w as also instrum ental in Cleary Park Properties (Pty) Ltd w hich developed the Cleary Park Shopping com plex: the
largest privately developed black shopping centre in South Africa.
o He has been at the forefront of Self-Catering Apartm ents on the Port Eliz abeth Beachfront as w ell as Holiday Flats.
o J ohann established self-catering apartm ent blocks Beacon Lodge, Crow ’s N est and Hornby Lodge through Hew son &
Dreyer (Pty) Ltd
o In addition King’s Tide Boutique Hotel w as developed by J ohann as an upm arket establishm ent in Port Elizabeth
o J ohann is the driving force behind M adiba Bay Holdings (Pty) Ltd and orchestrator of the 500 concessions available in
M adiba Bay Safari W orld.
Tum elo M otsisi (Tum i)
o W as appointed Dir ector of NBC at Alexander Forbes in 1996 but m oved to establish Kopano Ke M atla Investm ent
Com pany (KKM ), Cosatu’s investm ent arm
o Tum elo w as subsequently appointed KKM ’s Chief Executive O fficer
o He recently resigned his position as Executive Chair man of Prosperity Holdings, a financial services company established
betw een KKM , N BC Financia l Services and Peregrine Holdings in order to pursue his interests in the mining and energy
o Tum elo is a founding m em ber and dir ector of a variety of com panies including the “M ” Syndicate Investm ents, Laz ig (Pty)
Ltd, Energy & U tility (Pty) Ltd, Siz w e Fishing (Pty) Ltd and O ff-Shore Fishing (Pty) Ltd and Pelaw an Investm ents (Pty)
o Pelaw an Investm ents (Pty) Ltd is a BEE SPV established for the acquisition of m ineral rights under the Lebow a M inerals
Trust process. Pelaw an w as aw arded significant rights under this process
o He is also a dir ector of M adiba Bay Holdings (Pty) Ltd
M adiba Bay H oldings (Pty) Ltd
Fez 25 %
Fez 25 %
o M anagem ent Contract 31 % of
o Ow ner of Brand
Johann 25 %
J ohann 25 Lee 25 %
Lee 25 % o Tradem ark
% Madiba Bay Leisure Park
o M edical Aid/Pension
o Sole R ights and Arrange Finance
Tum elo 25 %