KwaZulu-Natal Business 2016-17 edition


The 2016-17 edition of KwaZulu-Natal Business is the eighth issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide to the KwaZulu-Natal province in South Africa.

The province is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.

To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), the full content can also be viewed online at

Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at, in addition to our other business-to-business titles that cover all nine provinces, complemented by our flagship publication, South African Business.



2016/17 EDITION











KwaZulu-Natal Business 2016/17 Edition


Foreword 9

Welcome to KwaZulu-Natal, one of Africa's

tourism and trade powerhouses.


Regional overview of KwaZulu-Natal 10

Energy generation and the Oceans Economy

hold great promise in KwaZulu-Natal.






Introducing the province of KwaZulu-Natal 18

The second-largest provincial economy has much

to offer local and international investors.

Major events promoting KwaZulu-Natal

as a trade and investment destination 26

The east3ROUTE initiative is playing a major role in

boosting trade and investment in the province.

Commonwealth Games 2022 50

For the first time in its 85-year history, the

Commonwealth Games will be held in Africa.

A period of positive growth and development 54

An overview of South Africa's social, political

and economic progress and potential.

Growing agri-business in KZN 58

Agri-parks and trade agreements form

the backbone of the province's future.

Economic sectors

Agriculture 62

The diversity of KwaZulu-Natal's agricultural sector is providing

new sources of income.




Forestry and paper 64

KwaZulu-Natal makes huge amounts of dissolving wood pulp

and paper.

Sugar 72

Sugar production levels have been affected by the drought.

Oil and gas 74

Oil and gas companies are exploring off the coast of


Mining 78

The rich mineral sands of northern KwaZulu-Natal underpin

the province's mining sector.

Manufacturing 80

KwaZulu-Natal makes aluminium, steel, chemicals, vehicles

and footwear.

Automotive 84

Bell Equipment and Toyota anchor a strong automotive sector.

Water 86

New dams and pipelines are under construction in


Renewable energy 88

Bio-mass is leading the way in KwaZulu-Natal.

Banking and financial services 90

Merchant banking is very competitive in KwaZulu-Natal.




Your Partner in Growth and Prosperity


By 2020 the Emnambithi/Ladysmith Municipality will be KwaZulu-Natal’s vibrant, industrial,

commercial, trade and tourism interlink, where all residents enjoy a prosperous, caring, safe

and secure environment which promotes cultural diversity.


To provide a well-serviced, safe, healthy and economically viable environment that enables

all residents to take action so that all communities can enjoy a high quality of life.


Emnambithi/Ladysmith is situated halfway between South Africa’s key domestic markets

in Gauteng, Bloemfontein and the major export harbour in Durban. The N3 and the N11

national roads provide an easy access to all neighbouring provinces and countries.

ELM Mayor:

Cllr M V Madlala


The Emnambithi/Ladysmith town is known for its history in the Promotion of Industrial

Development since the early nineteenth century. This is demonstrated through the

Municipality’s Incentive Policy for new and expanding businesses, as well as for its Business

Retention and Expansion Programme.

Ladysmith offers several industrial areas, such as Acaciavale, Danskraal and Colenso, with

the largest being the Ithala Industrial Estate located a short distance from the CBD. Factories,

industrial sites and affordable labour are readily available and industrial stand sizes vary

from 2 000 to 8 000 square metres. The town is a major agricultural zone for dry crops and

has abundant water resources, with the largest river (the UThukela River) running through

the town. These sites are all easily accessible by road and rail, although the town also has a

mini-airport which is designed to serve transportation of goods and small passenger planes.

Subdivisions and stand sizes can be negotiated to meet your particular requirements.

Assistance will be provided with rezoning and EIA applications. Ladysmith has a wellestablished

commercial and social infrastructure. Its residential areas are situated away

from the commercial and industrial centres to ensure quiet and pleasant living conditions,

it has an array of top schools and Higher Education Institutes which include TVET Colleges,

Nursing Schools and so on.


Ladysmith rests on the open floodplains of the Klip River in the foothills of the mighty

Drakensberg. It forms a natural gateway to many mountain resorts and the Okhahlamba

Drakensberg World Heritage Site is set in some of the most scenic areas in the country.

Ladysmith forms part of the heart of the KwaZulu-Natal, “The Kingdom of the Zulus”.

The Town is known as the “City of Music” because it’s the birthplace for the multi-Grammy

Award winning Isicathamiya Group known as Ladysmith Black Mambazo. It also has various

attraction sites such as the Long Tom Cannon in front of the Majestic and Historical Town

Hall. Ladysmith lies in the heart of the Battlefields Route and has the province’s greatest

number of Battlefields sites and memorials. These sites are brought to life for visitors when

accompanied by the qualified tour guides. Major events include the Ladysmith Show,

Arthur Creswell Marathon, Van Reenen / Swirnburne Yenza Community Festival, the Annual

Battlefields Festival, Nyusi Volume and the Annual Heritage Festival, which provide a vibrant

events tourism platform for the town to showcase its rich historical and cultural heritage.


Ithala Industrial Estate

Mr T E Ndlovu

Assistant Manager:

Local Economic Development

Tel: 036 637 2104 / 2090

Cell: 082 497 8743


Mrs R Thomas

Assistant Manager:


Tel: 036 637 2231 / 2992

Cell: 083 633 7462



Development finance and SMME support 102

Funds are available for entrepreneurs in KwaZulu-Natal.

Education and training 104

The education sector in KwaZulu-Natal needs to grow.

Tourism 106

Two international airlines have announced new routes

connecting to Durban.


South African National Government 110

KwaZulu-Natal Provincial Government 114

KwaZulu-Natal Local Government 115












Sector contents 58

Index 120


Locator map 13

Regional map 14

Municipal map 117







The Big

Free State
























uThungulu uMhlathuze













iLembe Mandeni



























Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: Simon Lewis

Writing: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Oliver

Ad sales: Sam Oliver,

Gabriel Venter, Jeremy Petersen,

Nigel Williams, Veronica Dean-

Boshoff and Sydwell Adonis

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print



A unique guide to business and investment

in KwaZulu-Natal.


The 2016 edition of KwaZulu-Natal Business is the eighth

issue of this highly successful publication that, since its

launch in 2008, has established itself as the premier

business and investment guide to the KwaZulu-Natal

province. The province is unique in terms of its abundant natural

and human resources, and is also one of the key drivers behind

the South African economy.

To complement the extensive local, national and international

distribution of the print edition of the magazine

(15 000 copies), the full content can also be viewed online at Updated information on

KwaZulu-Natal is also available through our monthly e-newsletter,

which you can subscribe to online at,

in addition to our other business-to-business titles that cover

all nine provinces, complemented by our flagship publication,

South African Business.

Chris Whales

Publisher, Global Africa Network Media


KwaZulu-Natal Business is distributed internationally on outgoing and

incoming trade missions, through trade and investment agencies;

to foreign offices in South Africa’s main trading partners around the

world; at top national and international events; through the offices

of foreign representatives in South Africa; as well as nationally and

regionally via chambers of commerce, tourism offices, trade and

investment agencies, provincial government departments, municipalities

and companies.


Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

Tel: +27 21 657 6200 | Fax: +27 21 674 6943

Email: | Website:

COPYRIGHT | KwaZulu-Natal Business is an independent publication

published by Global Africa Network Media (Pty) Ltd. Full copyright to

the publication vests with Global Africa Network Media (Pty) Ltd. No part

of the publication may be reproduced in any form without the written

permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Pictures supplied by, Wikimedia Commons,,, Rio Tinto, SA Tourism, Skyscrapercity, Jackson's

African Safaris and Pixabay. Cover image: Grant Pitcher Photography.

DISCLAIMER | While the publisher, Global Africa Network Media

(Pty) Ltd, has used all reasonable efforts to ensure that the information

contained in KwaZulu-Natal Business is accurate and up-to-date, the

publishers make no representations as to the accuracy, quality, timeliness,

or completeness of the information. Global Africa Network will

not accept responsibility for any loss or damage suffered as a result of

the use of or any reliance placed on such information.






Energy generation and the Oceans Economy hold great promise in KwaZulu-Natal.

By John Young

Two of the most important ports in South Africa are at the heart of KwaZulu-Natal's central

position in the nation's transport and logistics network. As the second-biggest contributor to

national gross domestic product (GDP) after Gauteng (and a major manufacturer and exporter

of goods), the KwaZulu-Natal province lends itself to potential investments in many spheres.



In recent months, Samsung Electrics has chosen

the province as the site of a $20-million television

factory, a Chinese company intends establishing a

multi-billion-rand steel plant at Richards Bay and a

pipe-manufacturing concern has put R300-million

into a new plant.

Provincial exports rose to R92-billion in 2013 (up

from R85-billion in 2012) and will have done even

better in 2015 because of the relatively weaker rand.

Steel, iron and aluminium account for nearly a third

of exports, followed by metal products. The third

sector making a big contribution is the automotive

and automotive components sector, with about

18%. Chemicals is the other major export-driver.

In the base-metals and metal products sectors,

giant companies such as BHP Billiton, Hulamin,

Arcelor Mittal and Assmang have a big presence in

the province. Toyota and Bell Equipment play a big

role in the automotive sector, while the Engen Oil

Refinery and dissolving pulp manufacturer Sappi

are amongst other strategically important entities

in the provincial economy.

Sugar, tourism and forestry and paper are the

other important sectors driving growth and employment

in KwaZulu-Natal and these will be referred to

again later in this article.

The King Shaka International Airport (with its

own trade port and industrial development zone) is

another of the province's logistics key points which

has the potential to boost the regional economy in

a number of sectors, particularly agricultural export

and tourism.

The province's other zone is the Richards Bay

Industrial Development Zone (RBIDZ). In his State

of the Province address in February 2016, Premier

Mchunu announced these recent investments:

titanium plant (R4.5-billion); bio-mass plant (R2-

billion); pipe manufacturing plant (R300-million);

paint manufacturing (R16-million); logistics services


New opportunities

KwaZulu-Natal province has a very long coastline

that stretches from Port Shepstone in the south

to the Kosi Bay Nature Reserve in the north. The

province's contact with the sea has brought obvious

benefits: fishing, fine beaches enjoyed by

millions of tourists, and two great ports located at

Durban and Richards Bay. These ports export vast

quantities of minerals (mostly through Richards

Bay) and manufactured goods (Durban) and serve

as an important conduit for imports of all sorts.

The Richards Bay Coal Terminal exports massive

quantities of coal, while the Port of Durban is the

busiest port in Africa.

However, planners want to massively increase

the economic benefits that the ocean can bring.

An Oceans Economy Review Workshop has come

up with a range of sub-sectors that can help to

grow the provincial economy and invite foreign

direct investment:

• Marine Transport and Manufacturing

• Offshore Oil and Gas Exploration

• Aquaculture

• Marine Protection and Ocean Governance

• Small Harbours

• Coastal and Marine Tourism

Strategies to grow the so-called Oceans Economy

will easily dovetail with any and all of the plans to

boost the capacity of the harbours at Durban and

Richards Bay, as well as to explore for gas and oil

in the Indian Ocean.

Ship-building and ship repairs is an existing

industry but it is not very big in the province at this

stage. If oil rigs were to start visiting the KZN coastline

on a regular basis then this industry would

grow exponentially.




The Oceans Economy is one of the focus areas

that has been chosen by national government to

be part of Operation Phakisa, a focused, goal-driven

attempt to jump-start a specific economic sector.

Overall, Phakisa intends creating a million jobs by

2033 and injecting R177-billion into national GDP.

The decision to build a cruise-ship terminal at

the Port of Durban is a good example of the kind

of decision that is nicely in line with an 'Oceans

Economy' approach.

By mid-2016 a bill will be put before the provincial

legislature to bring into existence the KwaZulu-Natal

Maritime Institute. This will be run out of the restructured

Sharks Board and training programmes will be

coordinated with Transnet to make sure that relevant

courses are offered. Since 2012, 800 students have

been studying maritime-related courses.

The other big potential growth area in KwaZulu-

Natal is energy. Several licences have been granted

for offshore exploration and the hope exists that

something will be found – the vast gas fields off the

coast of Mozambique are so close after all!

However, if energy does not come from the sea

through offshore drilling for oil or gas, there remains

plenty of potential on land. So far KwaZulu-Natal

has trailed the rest of South Africa when it comes

to the innovative and exciting Renewable Energy

Independent Power Producers Programme (REIPPP).

Tens of billions of rands and hundreds of megawatt

hours have been allocated to dozens of projects

(some of which are already connected to the grid)

but these have mostly been solar in the Northern

Cape and wind in the Eastern Cape.

KwaZulu-Natal is anxious to get with the programme

and is targeting the forestry sector (waste

and pulp) and sugar sector (cane and beet) to provide

feedstock for bio-mass energy generation. One

project that is part of the national programme is

under way using these materials, but many more

are planned.

The forestry and sugar sectors in the province

actually generate enough of their own power that

they could be selling power to the grid, but the

framework does not yet exist for that to happen. The

creation of that legislation or regulation must be a

priority. The Mondi Group are leading the way with

58% of the fuel consumption of their operations

being derived from renewable sources.

Although the forestry and paper sector and the

sugar sector are grounded in the agricultural sector,

the leading companies' processing plants and

downstream beneficiation also make them major

components of the manufacturing sector and big

contributors to the province's export basket.

In addition, Tongaat-Hulett is a major property

company and Illovo is a continent leader in sugar

production. Sappi's export of dissolving wood pulp

makes it a world leader in its field.


Tourism plays a vital role in the economy of the

region, with the conference and events sector

supported by excellent facilities. The jewel in the

crown is the huge Albert Luthuli International


Northern Cape

Western Cape


North West

Free State

Eastern Cape













get colder in the far west and northern reaches of

the province.

The mountainous area in the west – the

Drakensberg – comprises solid walls of basalt and

is the source of the region’s many strongly running

rivers. Regular and heavy winter snowfalls support

tourist enterprises. The Lubombo Mountains in the

north are granite formations that run in parallel.


Convention Centre Complex, which hosts the

annual Tourism Indaba.

The province's climate lends itself to every kind of

outdoor pursuit and its excellent beaches are always

popular. Big sports events are regularly hosted in

KwaZulu-Natal, which has become something of

a home to mass-participation events such as the

Comrades Marathon and the Dusi Canoe race. The

province has excellent game and nature reserves.

Isimangaliso Wetland Park is a World Heritage Site

and helps to fund 80 small businesses associated

with its business as a tourist site.

The building of the King Shaka International

Airport to the north of Durban allows tourists to get

to superb beaches and game farms very quickly,

and the airport has its own industrial development

zone, the Dube TradePort. New international direct

flights have been announced; 4.5-million passengers

passed through the airport in 2014/15, almost

300 000 of whom were foreign visitors or tourists (ACSA).


The mixed topography of the province allows for varied

agriculture, animal husbandry and horticulture.

The lowland area along the Indian Ocean coastline

is made up of subtropical thickets and Afromontane

Forest. High humidity is experienced, especially in

the far north, and this is a summer rainfall area. The

centrally located Midlands is on a grassland plateau

among rolling hills. Temperatures generally

KwaZulu-Natal has 11 district municipalities, the

most of any province in South Africa and, in economic

terms, the province offers diverse opportunities.

Southern region

This area is the province’s most populous. The city of

Durban has experienced booms in sectors such as

automotive, ICT, film and call centres. Major investments

are taking place at the Port of Durban and

there is a possibility that the old airport south of the

city could become another port, if the money can be





Free State











Eastern Cape





Mooi River




















Piet Retief













Port Shepstone



Port Edward






























Richards Bay


Main Road



St Lucia





found to dig it up and let the sea in. Durban's conference

facilities are well-utilised, but many opportunities

still exist in chemicals and industrial chemicals,

food and beverages, infrastructure development

and tourism. Further south, plans are in place to

upgrade Margate’s airport and Port Shepstone’s


Western region

Also known as the Midlands, this is a fertile agricultural

region, producing sugar cane, fruit, animal products,

forestry and dairy products. Pietermaritzburg

is the provincial capital and is home to a major aluminium

producer, along with several manufacturing

concerns, including textiles, furniture, leather goods

and food. The city has good transport links along

the N3 national highway, excellent schools and a

lively arts scene. The Midlands Meander is a popular

tourist destination.

Eastern region

Although most of this area is very rural, Richards Bay

is one of the country’s industrial hotspots because of

its coal terminal, port and aluminium smelters. The

Richards Bay Industrial Development Zone (RBIDZ)

is a major economic node in itself: the 62-hectare

first phase is almost fully subscribed, with the investment

value of the two phases (some having already

been secured for phase two) at R6.8-billion. Mining

is an important sector in this region. The other major

urban centre is Empangeni, which has several educational

institutions. The newly completed King Shaka

International Airport is kick-starting massive new investment

in the area. The Ilembe District Municipality

is particularly active in seeking out new investors.

Northern region

The economic powerhouse is Newcastle in the

north-west: coal-mining, steel processing and

manufacturing are major activities. Some old coal

mines are being reopened by new coal companies

to cater for the demand for the fuel from the country's

power stations. Game farms, trout fishing and

hiking are part of an attractive package for tourists,

and Zululand is a popular destination for cultural

experiences. The whole region is rich in Anglo-Boer

War history.



Trade & Investment


Your knowledge partner in business.

South Africa is rated among the top 10 in the world

in the category of investor protection and good fiscal

governance, and the World Bank has rated South

Africa among the top 30 countries in terms of its ease

of doing business. South Africa is also regarded as one

of the least costly areas in which to establish a business.

In line with this, the province of KwaZulu-Natal has established

itself as a premier domestic and international

investment and tourist destination.

With two of the busiest ports on the Sub-Saharan

African continent, in addition to its world-class road and

rail infrastructure, KwaZulu-Natal enjoys the strategic

and competitive advantage of being a global gateway

for trade into Southern Africa and to the world.

Its strategic location and highly developed industrial

sector ensure a competitive edge for both local and

foreign investors and offer unique advantages for

local exporters.

Investment in KwaZulu-Natal continues to emerge as

a major contributor to South Africa’s growing economy,

with the province’s contribution to national GDP

amounting to 16%, and it is statistically the secondlargest

GDP per region in South Africa.

The favourable business environment has made the

province a sound investment destination for investors

from around the world.


Trade & Investment KwaZulu-Natal is a South African

trade and inward-investment promotion agency that

was established to promote the province of KwaZulu-

Natal as an investment destination and to facilitate

trade by assisting local companies to access international

markets. The organisation identifies, develops

and packages investment opportunities in KwaZulu-

Natal and provides a professional service to all its clientele.

It also brands and markets KwaZulu-Natal as

an investment destination, retains and expands trade

and export activities and links opportunities to the developmental

needs of the KwaZulu-Natal community.


To be the leader in developing and promoting export

trade in KwaZulu-Natal and to position the

Province as a premier destination for investment.


• Identify and package investment opportunities

in KwaZulu-Natal.

• Brand and market KwaZulu-Natal as an investment


• Link opportunities to the developmental needs of

the KwaZulu-Natal community.

• Ensure easy access to investment and export trade






Trade & Investment KwaZulu-Natal’s business

objectives include:

• To meet shareholder and stakeholder expectations,

TIKZN aims to deliver exceptional professional

service levels and support to clients and

stakeholders through the following initiatives:

• Attracting, developing and retaining highperformance

employees with skills and competencies

to manage key internal business

processes, including marketing TIKZN as an

investment promotion agency.

• Enhancing TIKZN’s research and knowledge

capabilities and using technology as an enabler

for its business.

• Ensuring corporate governance and finance

reporting standards compliance.

• Advocating for a conducive business environment

in KwaZulu-Natal, in addition to

marketing the province as a premier business


Key activities

Trade & Investment KwaZulu-Natal undertakes a diverse

range of key activities, all designed to ensure

the successful promotion of business investment and

trade development.

Such activities include:

• The facilitation of joint ventures.

• The facilitation of business linkages between small

and big business.

• The timely provision of relevant and reliable information

to both potential and existing investors

and traders.

• Assistance to existing and new investors regarding

applications for investment as well as exportmarketing


• Assistance to foreign investors in terms of applications

for business permits.

• Negotiations for local government incentives on

behalf of investors.

• The provision of project support and aftercare

services to investors.

• The provision of assistance to emerging international


• Assistance with international trade enquiries.

• Assistance to investors with regard to locating

suitable premises.

• Assistance to investors in terms of securing project

and operational finance.

The key priority sectors of focus for the organisation


• ICT and Business Process Outsourcing

• Transport, Maritime and Logistics

• Infrastructure Development

• Agriculture (Primary and Secondary)

• Manufacturing

• Mining

• Renewable Energy

• Tourism Development

Municipal involvement

Trade & Investment KwaZulu-Natal (TIKZN) continues

to stamp its authority on the trade and investment

sector and has been partnering with all

spheres of government to support local trade and

businesses to create and sustain employment for

the people of KwaZulu-Natal. The organisation embarks

on municipal roadshows aimed at promoting

districts as an investment and trade destination in

order to strengthen relationships and the flow of

communication between TIKZN and all spheres

of government.


Durban Office:

Physical address: Trade & Investment House,

1 Arundel Close, Kingsmead Office Park,

Durban 4001

Tel: +27 31 368 9600 | Fax: +27 31 368 5888


Gauteng Office:

Physical address: 99 George Storrar Avenue,

Groenkloof, Pretoria 0181

Tel: +27 12 346 4386 / 6763 | Fax: +27 12 501 1788


Export Portal:




Introducing the

province of KwaZulu-Natal

The second-largest provincial economy has much to offer local

and international investors.

South Africa is one of the world’s top business

destinations and is strongly supported

by well-developed infrastructure; the

province is equipped with every convenience

and delivers high levels of service expected

by the business world. South Africa is rated number

one in obtaining credit and is also rated among

the top 10 in the world in the category of investor

protection and good fiscal governance. The

World Bank has rated South Africa among the top

35 countries for ease of doing business. It is also

regarded as one of the least costly areas in which

to establish a business.

KwaZulu-Natal is a major role-player in the manufacturing

and transport and logistics sectors in South

Africa and is a premier domestic and international

tourist destination. Dube TradePort Aerotropolis,

which includes King Shaka International Airport,

the Inkosi Albert Luthuli International Convention

Centre and two of the largest ports on the Sub-

Saharan African continent (the ports of Richards Bay

and Durban), are proof of the province’s world-class


Investment in KwaZulu-Natal continues to

emerge as a major contributor to South Africa’s

growing economy and its favourable business environment

has made the province a sound investment

destination for investors around the world.

Economic overview

The province of KwaZulu-Natal has South Africa’s

second-largest local economy, contributing 16% to

the national economy, and is deemed to be one of




the country’s leading economic and business hubs.

According to Statistics South Africa’s 2011 population

census, the province of KwaZulu-Natal is the

second most populous province following Gauteng


KwaZulu-Natal at a glance

Capital city: Pietermaritzburg

Main cities and towns: Durban, Ladysmith,

Newcastle, Port Shepstone and Richards Bay

Provincial head: Mr ES Mchunu

Population: 10.3-million (census – 2011)

Economically active population: 3.3-million

(Q4 2015)

Unemployment rate: 23.2% (Q1 2016)

Area: 94 361km 2

Real GDPR: R480.3-billion (US$37.7-billion)

GDPR growth: 2.1% (2014)

Per capital GDPR: R44 880 (US$3 520) (2014)

CPI: 6.7 (March 2016)

Exports: R116.9-billion (US$9.2-billion) (2015)

Main ports: Port of Durban, Port of Richards Bay,

King Shaka International Airport

Doing business in KwaZulu-Natal

KwaZulu-Natal is an important hub of industrial

development in Sub-Saharan Africa thanks to its

rich natural resources and well-developed infrastructure.

Economic activities in the province are

mainly concentrated around the Port of Durban

and the inland city of Pietermaritzburg, with further

significant contributions in the Richards Bay/

Empangeni area, the Ladysmith/Ezakheni area and

the Newcastle/Madadeni regions, as well as in the

Ugu/Port Shepstone region.

KwaZulu-Natal is a competitive region for foreign

investment, and more especially export opportunities

through the Port of Durban. The province

has identified prime targets for inward investment,

including textiles, clothing, plastic products, chemicals,

fabricated-metal products, automotive components,

wood and wood products, footwear, machinery

and appliances, business process outsourcing

and boatbuilding. The ease with which primary and

processed aluminum can be obtained from local

suppliers at world-competitive prices, provides a real

opportunity for investors in these sectors.


Richards Bay is the centre of operations for South

Africa’s aluminium industry. The Richards Bay Coal

Terminal is the second-biggest exporter of steam

coal in the world and the world’s largest single coal

terminal, while Richards Bay Minerals is the largest

sand-mining and mineral-processing operation

in the world.

The vehicle manufacturing industry has created

a considerable multiplier effect in terms of

component manufacturing and aftermarket service.

The automotive leather industry has grown

rapidly, with exports significantly boosting foreign

exchange earnings.

KwaZulu-Natal has also recently benefited

from rapid industrialisation, thanks to its abundant

labour resources and Sub-Saharan Africa’s

economic expansion. Numerous industries

are located at Newcastle, Ladysmith, Dundee,

Richards Bay, Durban, Hammarsdale, Richmond,

Pietermaritzburg and Mandeni. The King Shaka

International Airport became operational in May

2010, and planning is progressing aggressively to

implement Africa’s first green aerotropolis around

this airport.


Tourism is a key driver of the KwaZulu-Natal economy.

The province’s tourism attractions are structured

around eight tourism destinations, namely Durban,

Dolphin Coast (North), South Coast, Zululand,

Pietermaritzburg and Midlands, Drakensberg,

Elephant Coast and Battlefields. Better known by

tourists as the 'Zulu Kingdom', KwaZulu-Natal is

a tapestry of warm, subtropical coastal areas, Big

Five game reserves, two World Heritage Sites (the

uKhahlamba-Drakensberg Park and the Isimangaliso

Wetlands Park), authentic cultural routes and worldrenowned

historical battlefields.

The province enjoys the lion’s share of the domestic

tourism market and a growing share of South

Africa’s international tourism market, attracting


approximately one-million foreign visitors and

10.9-million domestic tourists annually.

Tourism growth is underpinned by innovative

tourism marketing, new and existing tourism-product

development and a well-established tourism

service industry.

Reasons to invest in KwaZulu-Natal

• Two of the largest and busiest ports in Sub-

Saharan Africa – Durban and Richards Bay

• Large labour pool

• Diverse culture

• Idyllic climate

• Access to basic services

• Excellent infrastructure and logistics

• Gateway to other African countries.

KwaZulu-Natal’s Information Communication and

Technology, machinery and equipment sector absorbs

roughly half of the total investment flowing

into the region while manufacturing attracts about

a third of all investment.

Tourism is a key driver of economic growth

and an important catalyst for future economic


Investment opportunities

The province of KwaZulu-Natal offers competitive

investment advantages and opportunities, enhancing

this region’s status as a preferred investment


Dube TradePort

KwaZulu-Natal’s continued success in international

trade is enhanced through improved transport and

logistics infrastructure.

The Dube TradePort, which is home to the King

Shaka International Airport, incorporates an industrial

development zone and will be linked with the existing

sea ports of Durban and Richards Bay.

This new development will include key components

such as a cargo terminal, Tradezone, support

zones and the Agrizone. It will present a new-generation,

multi-faceted economic hub for the province

and the country at large. The multi-nodal, integrated

logistics platform bodes well for sustainable job creation

and the attraction of further fixed investment.

The expanded capability of the new international

airport, a key component of the development, will

create enhanced levels of service in the movement

of time-sensitive manufactured goods and perishables

to the global market.

Durban harbour

The Durban harbour is one of the busiest in Sub-

Saharan Africa and has one of the world’s largest

and best-equipped container terminals, handling

3.6-million TEUs (twenty-foot equivalent units) a



Ports Authority with great potential

to play a key role in the shaping

of South Africa’s future growth

and prosperity.

The combination of specialised

cargo-handling facilities, fast

vessel turnaround, deep-water

infrastructure, excellent rail links

to the hinterland and the large

greenfield development potential,

has made the port one of

the world’s leading bulk ports,

handling in excess of 80-million

tons annually, representing approximately

60% of South Africa’s

seaborne cargo.

year. The harbour’s motor vehicle terminal handles

two-thirds of all motor vehicles entering or leaving

South Africa. In February 2013, the terminal set a

new record in Transnet Por Terminal’s automotive

history handling 39 749 units in a single month. The

port also boasts a sugar terminal that is responsible

for 65% of all the country’s sugar exports. Durban’s

direct link to worldwide ports and its reputation for

serving the shipping industry is unmatched by any

other port in South Africa.

Richards Bay harbour

The port is one of South Africa’s eight operational

commercial ports under the auspices of the National

Special Economic Zones

Special Economic Zones (SEZs)

are loosely defined as designated areas in countries

that possess special economic regulations that are

different from other areas in the same city. Moreover,

these regulations tend to contain measures that are

conducive to foreign direct investment. Conducting

business in an SEZ usually means that a company

will receive tax incentives and the opportunity to

pay lower taxes.

In KZN, SEZs are viewed as critical, not only in stimulating

export growth, but also job creation, foreign

exchange earnings, industrial decentralisation, access

to foreign manufacturing technology and know-how.

The approach to growing the KZN economy

firmly revolves around infrastructure development,



enterprise support, investment and trade linkages,

and support to key priority sectors (manufacturing,

agriculture, tourism, ICT and the green economy).

SEZs provide opportunities to exporters located

throughout the province – businesses do not necessarily

have to be next to the sea and airport to benefit.

Simply put, the theory of comparative advantage

would position each of the 11 identified districts, so

that there is at least one area of economic activity

which, relative to other districts, has an advantage

by having a lower opportunity cost of production.

Some examples of SEZs are Industrial Development

Zones, Free Ports, Industrial Parks/Estates, Science and

Technology Parks, Sector Development Zones and

Spatial Development Corridors.

The Oceans Economy

The KwaZulu-Natal province is ideally situated to capitalise

on the blue economy, as it boasts two of the

Sub-Saharan continent's largest ports as well as vast

unexploited inland waterways, and incorporating a

600km coastline. Studies have shown that the country’s

oceans could generate an estimated GDP contribution

of between R129- and R177-billion by 2033.

Freight and logistics are centred primarily around

two major transport hubs, namely the ports of

Richards Bay and Durban, which are in turn connected

to national and regional road and rail networks.

Present estimates indicate that the local shipbuilding

sector currently generates in excess of

R1-billion per annum of which 68% is in foreign

currency. KZN is the country’s second most prolific

boat-building province and close to 6 000 vessels

visit the ports of Durban and Richards Bay each year,

thereby providing a steady stream of potential vessel

repair opportunities.

KZN is growing in the freshwater aquaculture

sector; most of the trout farms are located within

the Midlands, while ornamental koi carp, catfish and

tilapia are also evident throughout the province.

The province’s large number of inland cold water

tributaries is another contributing factor towards its

potential status as a prominent aquaculture centre.


KwaZulu-Natal's manufacturing sector forms part of

a significant share of the South Africa economy and

is the second largest in South Africa, and is geared

for export, with nearly a third of South Africa's manufactured

exports being produced in KwaZulu-Natal.

Its diversified nature is significant in the KwaZulu-

Natal's economic growth rate, and generates 20 % of

provincial employment. Manufacturing production

increased by 1.9% in February 2016 compared with

February 2015.

The largest manufacturing industries are the automobile

and component sector, pulp and paper

products, chemicals and petrochemicals, and food

and beverages. The mining sector, which includes

titanium dioxide, zircon along with iron, steel and

ferroalloys is important.

The automotive manufacturing industry in

KwaZulu-Natal is largely concentrated within

the eThekwini Municipality, but includes firms in

Pietermaritzburg, Stanger, Ladysmith and Richards

Bay. The industry employs approximately 20 000

people and contributes roughly R21-billion to the

local economy per annum. The key automotive

player in the province is Toyota South Africa, which

has been the market leader for 30 years, and is

the number one-selling vehicle brand in South

Africa, and is gearing up for a major vehicle export

programme. The current production capacity of

Toyota South Africa's plant in Durban is in excess of

100 000 vehicles annually. The South African operation

now exports built-up units to both Australia

and Europe.



Renewable energy

Globally, the case for the green economy is being

made abundantly clear. Renewable energy is the only

electricity-generation technology whose price has

decreased dramatically, solar PV module prices have

fallen by 80% over the last five years while wind turbines

have become 30% less expensive. South Africa’s

wind resource is regarded as among the top five in

the world and could sustain 25% of our grid’s capacity.

The province’s renewable energy sector incorporates

a whole host of sustainable solutions and

includes the installation and supply of solar water

heaters and heat pumps, solar energy, biomass, biogas,

biofuels, wind, hydro, and energy-efficiency

measures. This is further stimulated by publicsector

initiatives and research services that incentivise

investment in the renewable sector. Major solar,

biogas and hydropower projects are also paving

the way for future development and investment

and currently, the net cumulative value of potential

renewable energy investments in KZN stands at


Possibly the biggest competitive advantage that

the province possesses is that which emanates from

the sugar and timber industries, which are among

the largest in the country. The South African Sugar

Association (SASA) is ready to engineer an investment

of R20bn-R30bn that would not only maintain

sugar production but result in two major new energy

industries: electricity cogeneration and fuel-ethanol

production and would lead to the creation of numerous

jobs in the rural community.


Water is now regarded as the highest global risk

in terms of devastation, ahead of nuclear war or

a global pandemic. South Africa, the 30th-driest

country in the world, not only experiences extreme

climate and rainfall fluctuations but its average annual

rainfall is half the global average. This rainfall is

unevenly distributed throughout a country which

currently has access to surface water (77% of total

use), groundwater (9% of total use) and recycled

water (14% of total use). Water is not only a crucial

component for food production, but is also integral

to the country’s industrial, mining and powergeneration


It is predicted that over the next five years there

will be significant growth in the water infrastructure,

wastewater treatment and water recycling

sectors. This will become particularly prevalent as

the debilitating effects of climate change become

more pronounced and the global water industry

changes. Consequently the KZN province is investing

more in water technologies and infrastructure.

Similarly, smart water meters will replace existing

ones and huge investments to be made in water

infrastructure that includes pumps, pipes, valves,



irrigation equipment, filtration and membrane

technology. While it is envisaged that rain and

grey water harvesting will be practised countrywide,

another area of possible investment will be

in wastewater treatment plants that are located in

every municipality and which can be retrofitted

to produce energy.

Living in KwaZulu-Natal

KwaZulu-Natal represents a microcosm of the economic

and social conditions of South Africa as a

whole. In an idyllic climate that lends itself to an

enviable, relaxed lifestyle, the business-friendly

environment includes cutting-edge financial institutions,

providing specialised and professional

business services in all fields. Combined with its

abundant natural resources and diverse cultures,

KwaZulu-Natal offers a world-class business destination,

where doing business is a pleasure.

Housing and accommodation

Most homes in KwaZulu-Natal are sold or leased

through a licensed real-estate agent. A list of estate

agents per geographic area may be found on www. or


KwaZulu-Natal has two universities, including one

of the country’s largest universities, the University

of KwaZulu-Natal, it spans five campuses, one in

Pietermaritzburg and the remainder in the greater

Durban area. There are several technical colleges,

the flagship being the Durban University of


There are also a large number of training institutions

offering career training.

Elementary, primary and secondary schools may

be found throughout every urban neighbourhood

in KwaZulu-Natal, some of which are ranked among

South Africa’s best schools.

For further information, see www.kzneducation. or

Health and welfare

Throughout South Africa, both public and private

healthcare is offered. Many corporate employers




offer a subscription or a partially subsidised subscription

to a medical insurance fund or medical aid fund.

Primary healthcare is available free of charge at

all government hospitals.

For more information on the KwaZulu-Natal

Health Department, you can visit www.kznhealth.


KwaZulu-Natal’s subtropical coastline is washed by

the warm waters of the Indian Ocean, the hinterland

is swept by sweet savannah and the province

is protected by the towering magnificence of the

Drakensberg Mountains.

The province generously caters for almost every

taste imaginable from historical sites, game reserves

and country meanders to arts and crafts, the infamous

bunny chow and fascinating cultural experiences.

KwaZulu-Natal is also home to award-winning

golf courses and a host of world-class festivals and




Major events promoting

KwaZulu-Natal as a trade

and investment destination


The east3ROUTE started five years ago and included

KZN, Mozambique and Swaziland. The initiative facilitates

cross-border tourism for economic development

and job creation.

The member countries are united by regional

geographic proximity as well as their respective

developmental agendas. East3ROUTE is not just

about trade and tourism. It is about creating trade

corridors and commercial platforms that require

infrastructure, and it is about these platforms and

infrastructure requiring the employment of our

people. Ultimately this manifests in job creation,

economic development, the reduction of budget

deficits, improving the quality of spending, reducing

economic constraints and improved support for

KZN Export Week

The KZN Export week is an annual flagship event

hosted by Trade & Investment KwaZulu-Natal that

was developed to recognise, promote and assist with

growing KwaZulu-Natal’s export businesses and industries.

Through the comprehensive programme of

activities, it provides professional development and

information on growth sectors and market opportunities

to KwaZulu-Natal’s new and existing exporters

and internationally focused businesses.

The essence of this week is to establish an understanding

and awareness of exporting and its importance

in the economy. The motive behind Export

Week is to encourage more companies, especially

small companies, to export more and diminish the

trade deficit. Exporting creates many opportunities

for the company and the economy. Other benefits

include: the advantages of a larger market with greater

economies of scale it provides an opportunity to grow

programmes that benefit society.

For the first time, the

east3ROUTE investment seminar

was staged as a standalone event

in the Mahé Island, Seychelles, on

the 31 July 2015. The role of the

east3ROUTE Investment Seminar

is to provide a platform for engagement

on tourism and related economic activities

in this region. Key to this is creating a dialogue

between economic role-players in the public and

private sectors, thus enabling debate on the key issues

facing development in the cross-border regions.

Tourism and trade have been identified as the central

aspects of this debate with related sectors such as

infrastructure development, services, retail and entertainment

providing important contributions.

and sustain business operations; it

enables the Province of KwaZulu-

Natal to attract investments and

new business, thereby creating

employment opportunities.

Some of the topics covered in

the 2015 Export Week programme were:

• Trade agreements and their impact on Africa.

• Emerging African export markets.

• Blue economy relevant to a KZN trade perspective.

• Export climate statistics

Keynote speakers are invited to the summit to

impart their expertise; these include representatives

from Trade and Economic Councils, Consul Generals

and country representatives, both private and public,

captains of industry and industry associates.

Export Week highlights the significance of exporting

to the KwaZulu-Natal economy and aims at recognising

the success of KwaZulu-Natal exporters. Export

Week will be held in October 2016.






w w w . e x p o r t k z n . c o . z a

The export sector is one of the critical pillars underpinning

the economic growth trajectory in KwaZulu-Natal.

Exports play a fundamental role in making business

thrive both domestically and on a global scale, and

are critical not only for foreign exchange earnings but

also employment creation and poverty alleviation. It is in

this vein that the KwaZulu-Natal Information Portal has

been developed, to be a conduit towards the

improvement of provincial export promotion efforts,

and to act as a one-stop information shop for

export role-players in the province.

The KwaZulu-Natal Export Information Portal is an easyto-use

online resource that not only showcases products

and services that are exportable from KwaZulu-Natal but

also provides a streamlined access point to acquire

all relevant export-related information.

The KwaZulu-Natal Export Information Portal is funded

by the Department of Economic Development, Tourism

and Environmental Affairs (EDTEA) and implemented

by Trade & Investment KwaZulu-Natal (TIKZN). The

key deliverable of the project is the development of the

web portal that will support the drive to promote export

activity and thus increase the generation of foreign

revenue for the province and for South Africa.

Some of the key features of the portal include:

• Product and sector fact sheets

• Information on INCOTERMS

• Useful export journals

• Trade tariffs

• Country profi les and information on trade blocs

• Information on export councils and industry


• The opportunity to upload company profi les

• Products and services on a self-managed platform

• Online trade enquires routed directly to the company

of interest

• Search capability for exporters, freight forwarders

and handling agents, etc.

The portal will also provide access to useful export

tracking tools and a calendar of export-related events.

Key features of the portal include multi-level search

capabilities, effi cient access to resource information

and an easy-to-use interface.

To register on the Export Information Portal

go to


Managing the

Port of Durban

Moshe Motlohi, Transnet National Ports

Authority’s Port Manager: Port of Durban,

provides an overview of the Port’s infrastructure

and economic potential.

Moshe Motlohi


Motlohi is a graduate of Wits

Business School's Advanced

Management Programme and

holds an Executive MBA from

Graduate School of Business at

the University of Cape Town. He

has operated in the field of logistics

for 17 years after beginning

his career in the corporate world

as an Ops trainee at South African

Breweries in 1996, where he

worked for seven years as Distribution

Manager, Warehouse

Manager and Depot Manager.

He joined Transnet Port Terminals

as Chief Ops Manager in

Port Elizabeth before being promoted

to head a more complex

operation in the Durban Container

Terminal, later heading up

their new People Transformation

and Development Unit. He was

later appointed to Head of Strategy

at Transnet Port Terminals

and Port Manager of the Port

of Durban.

How did you get to the position of Port Manager?

I am not new to the port environment and logistics space. Over the last

11 years I have held some key positions in the field of Port Operations.

I held the following positions at our sister division, Transnet Port

Terminals: Chief Operations Manager, Terminal Executive Manager,

Head of People Development and Divisional Head of Strategy. Before

that I held managerial positions with one of South Africa’s bluechip

companies, South African Breweries, where I was a Distribution

Manager, Warehouse Manager and Depot Manager.

Where do you see potential areas for growth and

expansion at the Port of Durban?

At this point the liquid bulk precinct is poised to grow, and this will

be followed by the auto sector. Containers will continue following the

shifts and performance of the country's GDP. Our ship-repair business

is reawakening and is poised to be a game-changer for the Port. Lastly,

the passenger cruiseliner business is a growing sector and it is one area

where there will be expansion.

What are the major investment drives that the Port is


Transnet is currently in the fourth year of its Market Demand Strategy

(MDS), which aims to significantly contribute to the growth of the

South African economy. Transnet has budgeted to spend in excess of

R300-billion in capital investment over the seven years from 2012 to

2019, of which TNPA’s investment in the South African port system over

the next 10 years is estimated at around R56-billion.

The South African government’s focus on the Oceans Economy

under its Operation Phakisa initiative will be a major driver to invest

in the port system.

In terms of section 56 of the National Ports Act 12 of 2005, TNPA is

mandated to enter into agreements with companies to design, develop,

construct, maintain and operate facilities to ensure the provision of port

services. The proposed new state-of-the-art Durban cruise terminal is

one of the Section 56 initiatives that Transnet National Ports Authority




has identified to encourage private sector participation

as a key element of the MDS. This project is open

to investors to come and bid for this opportunity.

We also have a few Section 56 opportunities in

the bulk liquid precinct.

What are some of the Port’s major


Durban has been making strides towards being

a smart people's Port. We have launched an electronic

data interface system called the Integrated

Port Management System (IPMS). This is a single

point of interface for all shipping-related Port

activities. We have recently launched the Port Joint

Operations Centre. This is designed to house all

Port users so that vessel planning and monitoring

can be done optimally. We are monitoring Port

efficiencies and have implemented performance

operating standards for all operations at the terminal,

marine, haulier / road and rail interfaces.

We are exploring ways to re-integrate our Port

with the city and communities. Transformation

of the Port system is another priority and all new

Port projects, contracts and leases are subject to

strict transformation criteria. We are developing

our suppliers and trying to ensure that the Port

provides opportunities to local suppliers and the

previously disadvantaged.

What is the Port of Durban’s competitive


This Port is in a city that has a well-developed logistics

services sector. It is one of the most connected

ports in the world, with the best railway and road

networks to the country's economic hub, Gauteng.

Lastly, the Port of Durban has knowledgeable and

engaged employees.

What features of the Port do you feel are

most important to highlight for the overseas


The Port has state-of-the-art equipment and is the

most connected port in the country. It is a one-stop

port that offers full services to calling ships. Durban

is the most attractive port (businesswise) because of

its close proximity to South Africa’s economic hub.

Even for the cruise sector, Durban is the closest port

to most potential tourists.



The Port of Durban

Often referred to as Durban Harbour, the Port of Durban is

the largest (and busiest) shipping terminal in sub-Saharan

Africa, handling 80-million tons of cargo each year.

What infrastructural improvements

have been created in the last few


Completed work:

• Reconstruction of Island View Berths (2, 5 & 6)

• Pipe racking expansion at Island View and


• Repairs to the Outer Caisson at the Prince Edward

Graving Dry Dock (part of Operation Phakisa)

• Urgent remedial repairs at the BAT Centre, an arts

and cultural centre in the Port of Durban

• Procurement of a 6-Ton Forklift for the Prince

Edward Graving Dry Dock (Operation Phakisa)




• Procurement of Welding Equipment Set for Shop

24 (Operation Phakisa)

• Bayhead Road Upgrade (From Langeberg Road

to Pier 1) and Truck Staging Areas

Ongoing Execution:

• Reconstruction of Sheet-Pile Quay Walls at

Maydon Wharf

• Permanent sand supply system

• Firefighting infrastructure at Berth 9 Island View

• Replacement of Potable Water Pipe at Island View

• Dry dock concrete repair (Operation Phakisa)

• Electrical Upgrade on Two Overhead Cranes at

Shop 24 (Operation Phakisa)

• Upgrade of Remainder of Port HV Electrical

Infrastructure Phase 2

What future developments

are on the cards?

• DCT berth deepening 203 to 205

• Pier 1 Phase 2 Infill (Salisbury Island)

• Roads Upgrade Projects

• Upgrade of employee facilities

• Security infrastructure fencing in the Port of


• Tug Jetty Extension

• M and L Shed Structural Repairs

• Upgrade Island View sea walls FEL3

• Island View berth 1 Upgrade

• Replace Water Pipelines & Billing System

• Operation Phakisa Projects

Note: not all projects in the corporate plan have

been included.

What are some of the Port’s

success stories?

In terms of people, the Port boasts the first Black

Female Engineer with a Government Certificate of

Competency (GCC), one of only two engineers in

the Port of Durban to have this highest academic

qualification in engineering.

Our system successes include being the first South

African Port to go live with the Integrated Port



Management System (IPMS) and Joint Operations

Centre (JOC). Completing the Caisson repair project

at the Prince Edward Graving Dry Dock was another

tremendous achievement.

What are the logistical advantages

of your Port for the international

shipping industry?

Logistics Industry

• Durban has one of the best developed logistics


• Durban has the best rail and road networks

• Durban has direct shipping connectivity to all of

SA’s major trading partners

What have been some of the

important milestones for the Port?

Dry Dock

• First SA Port to go live with the Integrated Port

Management System (IPMS) & Joint Operations

Centre (JOC)

• Outer caisson refurbishment at Prince Edward

Graving Dry Dock






Theoretical Berth Capacity

(Installed Capacity 3 400 000)

3 500 000

Dry Bulk

Theoretical Berth Capacity

(Also Installed Capacity)

12 100 000

Bulk Liquid (Kilolitres) Theoretical Berth Capacity 19 500 000


Theoretical Berth Capacity

(Installed Capacity 520 000)

900 000

Break Bulk

Theoretical Berth Capacity

(Also Installed Capacity)

4 000 000

Present capacity of Port of Durban, measured per commodity.



Port of Durban

Transnet National Ports Authority

Tel: 031 361 8527




Port of

Richards Bay

Preston Khomo, Port Manager of the Port of Richards Bay,

sees the potential for his deep-sea port to claim a large

slice of the international logistics market.

Preston Khomo


A qualified geologist, teacher

and community leader, (born

and bred in Port Shepstone,

KwaZulu-Natal), Preston Khomo

was previously Chief Executive

Officer at the Phalaborwa

Municipality, he holds a B.Sc

Honours from the University of

Fort Hare, and a MBA from De

Montfort University, Leicester

in United Kingdom, and M.S

from Alabama, USA. Preston

has undergone a number of

marine-related and executive

leadership courses, including

the Executive Development

Programme at the Gordon

Institute of Business Science

(GIBS). Served Transnet at different

OD’s, Terminal Manager

at (SAPO) TPT, TNPA Head of

Infrastructure and Port Operations

Portcon and Senior Manager

at the Port of Durban. As

from mid-2012 was appointed

as Port Manager.

How did you reach the position of Port Manager?

I spent some time teaching and working as a management consultant

in South Africa and around the world as a qualified geologist. In 2002

I joined the port environment as Terminal Manager, Transnet Port

Terminals, which was then known as South African Port Operations. In

July 2004 I was appointed as Head of Infrastructure Development: Port

Operations and Consulting, TNPA, Richards Bay. Thereafter, I moved

to the Port of Durban as Real Estate Manager. Prior to taking up the

position as Port Manager, TNPA, Port of Richards Bay, I was in charge

of the TNPA Ship Repair Business Unit at the Port of Durban.

What is the present capacity of your Port?

The Port of Richards Bay currently imports and exports a capacity of

over 80-million tons per annum in commodity volumes across our terminals.

The Port of Richards Bay has set itself up as a Port of continuous

growth within South Africa. The potential areas for growth and expansion

lie in the South African ocean economy, focusing on development

as well as technology, thereby ensuring that the port contributes

towards the development of the country's economy. Hence, it is poised

to become one of the largest freight logistics groups and freight hubs.

What major investment drives is the Port promoting?

Transnet is investing more than R15-billion on immediate and mediumto

long-term capacity improvement initiatives in order to expand

and upgrade the Port of Richards Bay to ensure that the bulk port

accommodates the growth in export demand. The intention for the

investment is to expand the country’s main bulk port up until 2020.

The investment opportunities range from agro-processing, chemicals

and allied industries, aluminium production, metals, energy, mineral

processing and forestry to timber-related products.

What are some of the Port’s major successes?

I am proud that the Port is enjoying the success of handling more

than 60% of South Africa's seaborne cargo and is continuing to grow

from strength to strength, in addition to introducing the National Ports




Authority into separate landlord and operator businesses.

A multi award-recipient port, I am also proud of

its successful contribution in the development of the

country's economy as it has taken two schools under

its wing. Prompted by the development of the Port,

it has been able to increase their staff complement at

these schools by a desirable number, in the process

creating huge employment opportunities for the local

and surrounding communities.

What is the Port of Richards Bay's competitive


The Port’s advantages are its connectivity in addition

to top-notch infrastructure such as roads, rail, telecommunications,

electricity, gas, water and accessibility

to international air and sea ports, all of which

reinforces the Port of Richards Bay’s prestige as a

preferred investment hub in the mind of investors.

Facing the trading currents of the Indian Ocean, its

convenient location brings it nearer to some of the

major international trade routes linking the rapidly

growing economies of China and India. Investors

seeking efficiency and wishing to utilise South Africa

will find that Richards Bay offers an all-in-one official

gateway to well-off African markets.

What features of the Port are most important

for the overseas market?

Positioned at one of the world’s few deep-sea ports,

the Port has a comprehensive range of covered and

open storage facilities. It has set a world record by

loading 409 809 tons of coal and exporting it within

a 24-hour period. Over the last decade Transnet has

entrenched itself as a monolithic company with five

distinct operating divisions, including port divisions

Transnet National Ports Authority and Transnet Port

Terminals. It recommenced an upgrade of the surrounding

roads and completed its Truck Staging

area for the convenient buffering of trucks in order

to improve port efficiency. Other infrastructure

upgrades include the implementation of energy

saving initiatives and a 132Kv upgrade to the harbour’s

west substation. Most recently, the Port of

Richards Bay is benefitting from TNPA’s continued

drive towards creating ‘smartpeoplesPORTS’ — aiming

to foster progressive

and sustainable ports

that co-exist and evolve

with their surrounding




The Port of Richards Bay

A catalyst for growth – ‘From Fishing Village to Port City'.

Forty years ago ‘A Giant Arose’ and

‘Continues to Soar!’

The Port of Richards Bay began its trajectory when

the first phase of the harbour was officially opened

on 1 April 1976, primarily for the export of coal.

Anchor terminal operators were the then South

African Railways and Harbours and the Richards Bay

Coal Terminal Company Limited (RBCT), which later

became the largest single coal terminal exporter in

the world.

Three possible sites for a new harbour had been

considered including: Kosi Bay, Sodwana Bay and

Richards Bay. Richards Bay was selected due to the

large lagoon; ease of dredging; its direct link to the

national rail network; the bay’s proximity to the town

of Empangeni to stimulate initial development and

the availability of ample fresh water.

The Port, which commemorated its 40th Anniversary

on 1 April 2016, has developed Richards Bay from a

small fishing village into an internationally recognised




industrial hub and Port City, thanks to the efforts of

key role-players over the past four decades.

Today the Port of Richards Bay is South African’s largest

Port in terms of volumes, importing and exporting

more than 60% of South Africa’s seaborne cargo, having

achieved almost 100-million tons in 2015/16, with

a turnover in excess of R1-billion. It is also the largest

Port in South Africa in terms of size, covering an area of

3 773 hectares – a large portion of which is still undeveloped,

providing great potential for future growth.

Initially established to export 26-million tons of coal

over the first 10 years, the Port has diversified its operations

to handle other cargoes and provides a worldclass

service to ensure clients can compete locally,

nationally and internationally, playing a key role in

shaping South Africa’s future growth and prosperity.

Coal, however, remains the single largest commodity

in terms of volumes and is the second-largest foreign

exchange earner for the South African economy

after gold.

The Port currently hosts six licensed cargohandling


• Dry Bulk Terminal, operated by Transnet Port

Terminals – handles a large variety of ores, minerals

and woodchips

• Break Bulk Terminal, also operated by Transnet

Port Terminals – handles a diversity of loose bulk

and break bulk cargoes, as well as heavy lifts and

abnormal loads

• Richards Bay Coal Terminal – with the capacity to

export 91-million tons per annum

• Bulk liquid terminal, operated by Bidvest Tank

Terminals – handles a wide range of bulk liquids

• Richards Bay Bunker Terminal, operated by Engen –

imports bunker fuel from Durban and Cape Town.

Bunkering is also carried out by a bunker barge

operating in the Port



• Liquid Pitch Import Terminal, operated by Hillside


The Port also boasts a phosphoric acid export loading

facility and a liquid pitch import facility.

The combination of specialised cargo handling

facilities, fast vessel turnaround, deep-water infrastructure,

excellent rail links to the hinterland and

the large greenfield development potential contributes

positively to the Port’s logistical advantages. In

addition, the Port has a 300m-wide entrance channel.

The deep-water Port is also able to handle Cape

Sized Vessels.

Milestones: 2006 to 2015

Milestones achieved over the past decade include:

• RBCT Phase V expansion project

• Acquisition of a new helicopter (ZS-RRB)

• Commissioning of coal berth – Berth 306

• Commissioning of liquid bulk berth – Berth 208

• Acquisition of a new tug “Lilani”

• Opening of a rail line between Swaziland and

the Port

• Construction of breakwater floating pontoons

– erosion control structures to protect the area

from the full force of incoming waves – a first for

South Africa

• ISPS Compliance

• Upgrade of roads

• A fully operational Truck Staging Area to improve

Port efficiency and productivity – a first for South

African ports

• A 132Kv upgrade to the harbour’s west substation

– a first in the port system

• Initiatives to reduce consumption of water and


• Implemented an Integrated Port Management

System and Joint Operations Centre – enabling

port users to track their cargo from port of origin

to destination, amongst other functions

• Revival of the Port Festivals

• Corporate Social Investment projects

The Port is driven by the Port Development

Framework which is updated annually. Over time

the Port will develop into one of the largest global

ports through expansion alongside the Mhlathuze

River floodplain, towards the N2 highway, bringing

with it economic growth and upliftment.

Numerous capital investment programmes are in

the pipeline to enhance the capacity of the Port,

especially in the area of liquid bulk.

Future plans under consideration include:

• Development of the South Dunes Precinct

• Richards Bay Clean Cargo Rail Yard Port Expansion

• Power Barges



• LNG Facility

• Tidal Bridge Upgrades

• Ship Repair Facility

Transnet National Ports Authority, Port of Richards Bay,

is committed to protecting both the environment

and the health and safety of its employees, contractors

and other stakeholders. Echwebeni (Zulu word

meaning “at the Port”), a 54ha mangrove swamp site,

was declared a Site of Conservation Significance by

Ezemvelo KZN Wildlife in 2005. Initiatives are in place

to entrench a safe working environment.



1976 2015/16

Vessels entered the


136 2 000

Million tons of cargo


6.9 99

Cargo berths 5 23

Leased sites 2 82

Water surface area 14 38.5 1 746.6

Ha of land 2 107 2 026

Total quay length in


1 500 6 389

Total length of

conveyor belting for

bulk cargo




Transnet’s Market Demand Strategy (MDS) will expand

and modernise the country’s ports, pipelines and rail

infrastructure to promote economic growth in South

Africa. The MDS will enable the ports to transport

goods in a reliable, efficient and cost effective manner.

To the next 40 years!


Port Manager: Preston Khomo

Harbour Master: Captain Sabelo Mdlalose

Customer Relations Manager: Sinamile Zuma

Physical address: Bayvue Centre, Ventura

Road, Port of Richards Bay

Postal address: PO Box 181, Richards Bay, 3900

Tel: +27 35 905 3440 | Fax: +27 35 905 3199





Financing KZN businesses

to grow the economy

Pat Moodley, Regional Manager of the Industrial Development Corporation's (IDC)

KwaZulu-Natal region, shares his insight on the potential for small and large

businesses in the province.

The IDC is South Africa’s largest development finance

institution. Since its inception in 1940, it has

helped to build the industrial capacity that fuels

the country’s economic growth by funding viable

businesses. For more than 75 years, the IDC has

been instrumental in implementing South Africa’s

industrial policy, establishing some of the industries

that have since become the cornerstone of

the country’s manufacturing sector. Apart from

large industrial projects, the IDC has also been

instrumental in the establishment of other industries,

such as fabricated metals, agro-industries,

clothing and textiles, to name but a few.


Pat Moodley, Regional Manager of the IDC for the

KwaZulu-Natal region, states that the corporation's

mission has always been to be the primary

driving force of commercially sustainable industrial

development and innovation for the benefit

of South Africa, in addition to the rest of the

African continent. The IDC strives to contribute

to the generation of balanced, sustainable economic

growth and the economic empowerment

of South Africans.

The IDC has undergone numerous changes

since its inception and Moodley affirms that,

“although our priorities have evolved in line with

policy direction over the years, we remain committed

to developing the country’s industrial

capacity and, in doing so, playing a major role

in job creation.”

Rapid growth

In recent years, KwaZulu-Natal (KZN) has experienced

rapid economic growth and the province's

Pat Moodley is the Regional Manager of the

Industrial Development Corporation (IDC) for

the KwaZulu-Natal Region. He has been with

the IDC for 10 years and is passionate about

economic development in the KZN province.

He previously worked for a commercial bank,

specialising in the SME market prior to joining

the IDC. Moodley holds a B Com degree in accounting

and a National Diploma in Commerce.

He is presently completing his MBA.




Opus1 & Mooi River Textiles, a home textiles company in Tongaat, KwaZulu-Natal.

economy is now the second-largest provincial

economy, with growing tourism, manufacturing

and agro-processing sectors.

“The provincial government of KZN has recognised

that investment is critical for the growth of the province's

economy. It therefore aims to create an

environment that is conducive for investment.

Both the provincial and local government have

invested in infrastructure to promote a supportive

environment for businesses and entrepreneurship

to flourish.

"The KZN economy is driven largely by manufacturing,

which includes key economic sectors

such as metals, chemicals, textiles, tourism and

agro-processing,” says Moodley.

Despite the numerous activities taking place in

KZN, like the rest of the South African economy,

the province is experiencing a sluggish economic

performance. The KwaZulu-Natal Treasury reported

during the March 2016 Budget Vote, that the province’s

economy is expected to grow by 0.6% in

2016, gradually improving to 1.3% in 2017.

The IDC aims to provide further funding in support

of industrial capacity development as this is

a key component for future growth of our economy.

According to Moodley, the IDC’s mission

in KwaZulu-Natal is to promote entrepreneurship

through building competitive industries and

enterprises based on sound business principles.

“The IDC has been stimulating KZN's economy

by extending its reach and focusing on smaller

municipalities in rural and outlying areas within the

province. We work closely with key stakeholders

to be at the centre of industrial development and

job creation across the province,” says Moodley.



Somta Tools, a cutting tool manufacturer in Pietermaritzburg.

Forward planning

The IDC has identified numerous projects across the

entire province as possible funding opportunities to

be pursued within the coming months.

“We will continue to partner with local and provincial

government, organised business, chambers of commerce

and other provincial development finance

institutions to provide funding for businesses,” says

Moodley. Consequently, he is confident that the

IDC’s strategy of proactively identifying and funding

high-impact projects in KZN, using the organisation’s

diverse industry expertise, will bear fruit in

creating viable industries.

Sector-specific workshops, presentations, training

and coaching consultants who work closely with

the IDC’s KZN office, further strengthens the corporation's


Another key focus for the IDC in KZN is to support

women and the youth entrepreneurs in the


“Our focus is definitely geared to getting more

women and young people into the mainstream

economic activities of the economy. We have

various initiatives within the IDC to assist women-

and youth-owned businesses to

enable them to access funding

from the IDC. In addition, the

IDC provides business support

to offer guidance on essential

business skills to its clients. This

support is available during the

pre- and post-approval stages

and includes assistance to distressed

clients,” says Moodley.

Working with the National Youth

Development Agency (NYDA)

and other stakeholders enables

us to identify business opportunities

to assist emerging young

entrepreneurs to access funding

from the IDC,” he adds.

“We welcome all stakeholders to engage with

the IDC in KwaZulu-Natal, at any of our offices in

Durban, Pietermaritzburg or Richards Bay. We have a

team of highly skilled and dedicated staff with vast

experience, who are committed to fulfilling the

IDC's mandate of driving industrial development

and job creation and growing the local economy.”


KwaZulu-Natal: Durban

Physical address: Suite 2101,

21st Floor, The Embassy Building,

199 Anton Lembede Street, Durban

Postal address: PO Box 2411, Durban 4000

Tel: 031 337 4455 | Fax: 031 337 4790

KwaZulu-Natal: Pietermaritzburg

Physical address: 1st Floor, ABSA Building,

15 Chatterton Road, Pietermaritzburg

Postal address: PO Box 2411, Durban 4000

Tel: 033 328 2560 | Fax: 033 342 5341





Making the right

things happen


Innovation, technological advancement and well-trained

staff are keys to Nedbank’s success.

Nedbank continues to build on its client-centred strategy,

which is aimed at delivering distinctive experiences and

channels of choice. This has seen the bank simplify and

enhance its product offering in line with its great-value

banking philosophy, based on simplicity, transparency and affordability.

Innovation and technological advancements as well as training

and development of staff have been key pillars in achieving the bank’s

objectives. Nedbank has also placed emphasis on client engagement

to better understand the diverse and individual client needs across its

personal and business banking base.

"Innovation is an integral component of a holistic approach that

encompasses our systems and processes and these enable us to

deliver distinctive client experiences. Despite the tough economic

environment, Retail and Business Banking have delivered value to

our shareholders while significantly improving our client experience.

Through these milestones, we are well geared to weather the persisting

macroeconomic environment, and highly competitive business conditions,"

says Fayzel Omar: Regional General Manager of KZN at Nedbank.

Dedicated Business Managers and Product Specialists working

through an empowered "Client Service Team" ensure service delivery

with significant benefits.

In KwaZulu-Natal we have two regional head offices based in

Durban (headed up by Regional Business Head Siphamandla Ndlovu)

and Pietermaritzburg (headed up by Regional Business Head John

Bush) with further offices situated in Richards Bay, Port Shepstone,

Newcastle and Pongola. We service small and medium privately owned

businesses and agricultural farming entities throughout the province.

To this end, Nedbank has launched several first-in-the-marketplace

innovations such as the award-winning Nedbank App Suite, Home

Loans Online Digital Channel and Market Edge, as well as the "Branch

of the Future" concept in communities and nationally.

"Working with communities is entrenched in our values through

community development, skills development, education and job creation

as well as environmental conservation. We believe our fast-growing

presence in the province goes a long way in enabling greater financial

inclusion while contributing towards economic growth," says Omar.

Siphamandla Ndlovu,

Regional Business Head


John Bush, Regional

Business Head


These are just a few of the

ways that Nedbank continues to

make the things that really matter

with businesses and communities






onsite banking

Nedbank is happy to help its clients learn

to better manage their money.

Nedbank@Work aims to make a difference in the communities

in which we operate through financial wellness education

for all employees in both the private sector and government.

This is done through tailored financial fitness and consumer

education training. Our continuous involvement in corporate social

programmes in communities throughout KZN also supports growth

and development.

How Nedbank@Work works for you, the employee

It’s hard to focus on anything if you are having personal financial challenges

like needing a personal loan, providing for school or university

fees, or for unexpected costs like funerals.

Unfortunately, dealing with a lot of these worrying financial issues

takes time and energy, and more often than not they can only be sorted

out during office hours, when you don’t have time.

That’s where Nedbank@Work comes in:

Nedbank@Work makes convenient banking at your workplace possible.

But, we offer more than just the convenience of having a relationship

banker on site to open accounts and address queries; we also help

you understand your financial position and work with you on a plan

to reach financial fitness.

What are the benefits of Nedbank@Work?

• You have access to a dedicated sales consultant, whose role is to

establish convenience and ensure the best service delivery for all


• Our financial fitness and consumer education training provides you

with the services and expert advice you need to help you better

manage your personal finances, make provision for unexpected

circumstances, provide for your children’s education, etc.

• The Financial Fitness Trainer will also be able to assist you when it

comes to improving your credit ratings and managing your budget.

• You also get great-value banking products as well as immediate

Amrith Bishoon, Regional

Relationship Manager

access to your salary if your

company banks with Nedbank.

• Peace of mind as a result of

financial well-being.

• We’re continuously there on

site, making it that much easier

to access and expand on and/

or enhance your existing suite

of banking products.

• And because we bring the

bank to your workplace, you

don’t have to waste your

lunchtime by going to the

bank to wait in long queues.

Any company or government

department interested in offering

the Nedbank@Work value

to their employees can contact

the Regional Relationship

Manager, Amrith Bishoon,

on +27 31 364 1082 or email



Banking on relationships

with corporate clients


End-to-end banking services are provided for Nedbank’s corporate

and public sector clients.

Nedbank Corporate and Investment Banking’s KZN operation

is based at Kingsmead and provides end-to-end banking

services, funding and transactional banking capabilities to

all corporate clients and industries across the province. The

team is committed to providing excellent client service – a commitment

that is confirmed by the high ratings consistently provided in

client surveys. The business is focused on JSE-listed companies, large

unlisted companies, branches or subsidiaries of inbound multinational

entities and public sector entities.

What we do differently

The business provides a differentiated client value proposition, based

on established relationships and an in-depth understanding of clients’

businesses and the industries in which they operate. It provides a fullservice

wholesale banking offering – including lending, deposit-taking,

transactional banking, global trade services and asset finance – by

way of dedicated corporate bankers who are the clients’ window into

Nedbank. We also have a dedicated team of specialists focusing on

public sector needs.

Specific solutions

The business provides a variety of funding solutions amounting to

between R50-million and several billion rand from short-term and

working capital facilities, trade finance and letters of credit and guarantees,

to vanilla and complex term debt structures by way of bilateral,

club and syndicated transactions. The business assists with the issuance

of corporate paper and other debt instruments. Leveraged buyouts

(LBOs) and management buyouts (MBOs) are also funded, with NCIB

acting as lead arranger, co-arranger or facility agent.

Our transactional banking offering consists of the full-spectrum

domestic clearing bank services, including current accounts, cash management

and electronic banking, through our scalable internet-based

NetBank Business system. The high-volume host-to-host platform,

Ebrahim Shaik, Divisional

Executive: Client Coverage

Corporate Payments System, and

a full range of cross-border and

international transactions are

part of the offering. The deposittaking

and treasury franchise is

strong, with a range of investment

offerings. We pride ourselves in

providing tailor-made solution

across private equity, investment

banking and capital markets.

Commitment to the


We try to make a difference in the

larger KZN community through

the Nedbank Foundation.

Contact Ebrahim Shaik, Divisional

Executive: Client Coverage

Tel: +27 31 364 3348 or email:



Making banking

accessible to all

At Nedbank we believe in delivering a choice of distinctive client-centred

banking experiences that create deep enduring relationships with our clients.

Our clients are engaged by skilled, enabled and productive

staff who, through meaningful conversations, ensure we

deliver to our clients’ needs and aspirations. As a bank

for all, Nedbank realises that, if it wants to make banking

more accessible to all in South Africa, it has to start working with

the communities in which it operates. As such the bank's strong

relations with government, organised business and communities

remain a key focus in growing its client base of over seven million.

Our presence in the KZN community goes a long way in allowing

for greater financial inclusion while contributing to social upliftment

and economic development.

Our growth in distribution will provide accessible banking to all

South Africans. Our distribution presence in KZN sees us with 88

traditional branches, 30 kiosks in Boxer stores and six personal loan

branches. Nedbank has embarked on a distribution strategy to convert

all our branches to "Branch(es) of the Future". We currently have

23 "Branch of the Future" stores in KZN. To make banking convenient

we have eight Sunday-trading branches in key centres in the province.

We have also increased our ATM distribution to 630 and Intelligent

Depositors to 90 in the province for your convenience.

Nedbank’s client-centred approach has seen the bank intensify

its efforts in delivering a distinctive client experience through innovation.

The introduction of the award-winning Nedbank App Suite

is evidence of the bank’s progress and its understanding of client

needs. The App Suite serves as a virtual extension of our distribution

network operating from the palm of your hands. “It makes it easy for

clients to do their banking securely – from anywhere, anytime,” says

Fayzel Omar: Regional General Manager of KZN Branch Networks

at Nedbank.

Our offering in Retail expands to Small Business and Professional

Banking. We believe that small business is a critical segment of our

economy and plays a key role in job creation. To support small business

we have initiatives like "Small Business Friday", free small business

seminars and

Fayzel Omar, Regional

General Manager of KZN

Branch Networks at Nedbank

In Professional Banking we realise

that time is of the essence

in your professions and hence

we offer you a dedicated banker

with a strong support team to

take care of the needs of you,

your business and your household.

For more information on our

offerings in:

Retail, please contact Jason

Barron at Jasonba@nedbank. +27 31 364 1000

Small Business and Professional

Banking, please contact Melanie

Reddy at Melanier@nedbank. +27 31 364 1000.



Make the most of your

money with our local and

international expertise

At Nedbank Financial Planning and Nedbank Private Wealth

we care about your financial security and goals.


This means ensuring that you have a plan to cater for your

circumstances as your needs evolve and change. We provide

clients with holistic financial planning and a range of

services to support this. As our client, you can build wealth

by aligning your decisions with your deepest values and highest

aspirations. We offer financial advice that is customised to each client’s

needs. For some clients, this is about establishing a financial

plan, and for others it may be about customised international estate

planning structures and intergenerational wealth transfers.

Based on your needs and circumstances, a Nedbank Financial

Planner or a dedicated Wealth Manager can help you make the

most of your money. To become a Nedbank Private Wealth client,

you need to earn at least R1.5-million per year and/or have R5-million

of investable assets. But if you don’t yet qualify, you can still benefit

from our specialist expertise through Nedbank Financial Planning.

We are here to help put a plan in place to grow your money to

achieve your financial aspirations.

Your Nedbank Financial Planner and Nedbank Private Wealth

Manager have access to specialist teams who can help you:

• Structure sound estate and succession plans to protect your own

interests and the interest of your family

• Grow your money by investing in a range of top local and offshore

investments, including using our specialist stockbroking service

• Protect your personal and business assets against life’s uncertainties

through short- and long-term insurance solutions

• Access your money whenever and wherever it suits you through

a full range of local and international banking services available

through a single point of contact;

• Give your wealth a life beyond yours by leaving a legacy with our

philanthropy services

Surita Vithal, Head Nedbank

Private Wealth KZN

Janet Esterhuizen, Regional

Head of Financial Planning

Nedbank KZN

Contact Nedbank Financial

Planning on 0861 238 887 or

contact Nedbank Private Wealth

on 0860 111 263.






Masisizane Fund:

empowering small





Sifiso Myeni, the KwaZulu-Natal Provincial Manager of the

Masisizane Fund, sees huge potential for the growth of

SMMEs, with collaboration of private and public sectors.

Please could you give us an overview of the Masisizane

partnerships with Omnia, Gra

Sifiso Myeni

Fund’s work in KwaZulu-Natal?

Association and municipalities, th

their planting significantly in 2014

Masisizane has invested over R60-million and funded more



towards Grain Co as

50 clients in the province. The Fund’s role is so much more than

The Masisizane Fund (NPC), is an initiative just giving of Old loans Mutual – South a key Africa, component established of our work is helping Masisizane small opera

in 2007 following the closure of the Unclaimed business Shares owners Trust. This to find was done solutions in consultation for ways in which they nationally can grow with it

with the National Treasury of South Africa. The mandate of the Fund at inception was

their businesses. We also work with partners such as the provincial Gauteng and r

and remains to contribute meaningfully to employment creation, poverty eradication

and national government, in addition to their own development offices in KwaZu

and reduction of inequality, economic growth and the attraction of investment. This is


agencies. Through these relationships we have been able Limpopo, to ensure Eastern

done mainly through promotion of entrepreneurship, enterprise finance and support to

that more resources are being made available to SMMEs. Although

small, micro and medium enterprises (SMME’s).

Western Cape.

Sifi so Myeni is the Masisizane we only have one office in the province, which is located in Durban,

The process to follow when apply

Fund’s KwaZulu-Natal Provincial

Manager. Previously he Some interesting case studies that we are particularly Submit proud the following of documents fo

we cover the entire KZN province and will assist wherever from we the can. Masisizane Fund is:

The Fund provides loan finance in the following sectors:

• Agriculture

relevant provincial office:

was the Head of Agribusiness relate • Manufacturing to businesses such as City of Choice Travel and Tours, which is

• Comprehensive business plan

• Supply Chain

Development and a member of a business that, like many others, started from humble beginnings. projections;

• Franchising

the Old Mutual Masisizane Fund In its early stages this business was operating from a garage • For established yet businesses –

• Commercial Enterprise

three years) and the latest man

Executive Management Team. managing to create a turnover of close to R1-million per annum.

Non-financial value adding services include capacity

• For start-up businesses – financ

His career started in 2000 with Through the dedication of its entrepreneur – as well as the financial

development, business management and technical support,

• Tax clearance certificate;

the SA Sugarcane Research and non-financial education, assistance market development from and the product/ Masisizane Fund –• the Off take business

agreements and/or l

Institute, and in 2005 he joined

the Organic Farms Group

and in 2009 he joined the Old

Mutual Masisizane Fund.

He obtained his B.Sc Agriculture

Degree from the University

of Zululand and his Master’s

Degree in Sustainable Agriculture

from the University of the

Free State. He is a 2nd-year

PhD student with UKZN.

service has quality grown standards to the and point compliance. where A it Business now has turnover • figures Signed consent in for a credit ch

excess of R30-million.

Another interesting case relates to the agri-cluster model that

Masisizane is implementing within the agriculture space. This approach

has necessitated the collaboration of other stakeholders. It is through

the meaningful collaboration of the private and public sector that we

were able to finance five co-operatives within the Mzimkhulu area. These

farmers were financed with inputs, tractors and working capital to enable

them to plant, cultivate and sell soya beans. To date the project has

been working well, albeit the harsh climate conditions have stunted the

anticipated results. Over R34-million has been invested in this project

The target market is enterprises that are 51% or more owned

by the previously disadvantaged individual(s) giving priority

to rural and peri-urban/township areas. Masisizane funding

is biased towards 51% plus owned women, youth and

people with disabilities. Masisizane will target productive

and labour absorbing sectors as approved by the Board of

Directors from time to time.

The Fund’s success is driven through a focused approach on

high impact industry sectors, coupled with a comprehensive

SMME finance solution that includes business support.

Acceleration Program has been e

clients receive training and suppo

eligible to receive financial suppo

The growth of the Masisizane Fu

inception. Although the initial foc

the fund has gradually grown to b

fund with the vision of being able

as a sustainable entity and thereb

for many years to come. The fu

R1b and it plans to invest R420

SMME’s by the end of 2017.

The development of agri-clusters

Masisizane Fund’s approach in

entail the clustering of small sca

the farmers benefit from economi

on value chain financing, agro-p


In 2013 the Fund initiated a p

Harry Gwala municipalities co

trading in grain and dairy prod

focused on development of value

mechanization, storage and micro




alone on a 50:50 basis (half comprised of a loan from

the Masisizane Fund and the other half as a grant

from the KZN Department of Agriculture and Rural

Development). The project has created more than

150 job opportunities, including seasonal workers,

and more jobs will be created as we expand from

1 500 hectares to 3 000 hectares in the next two years.

Could you offer some insight into the focus

of your agribusiness development unit?

The Masisizane agribusiness development unit

consists of dedicated, experienced hands-on individuals

who are tasked to ensure the successful

running of the Masisizane Fund’s investment into

the agri-clusters and turnkey solutions. The agriunit

is responsible for six specific functions:

• Establishment of Agri-Clusters.

• Value chain-orientated development in agriclusters.

• Partnerships and leveraging on partner programmes

– grants, loans and technical expertise.

• Sector intelligence, which includes providing

technical expertise to pre- and post-investment

units, markets trends and so on.

• Turnkey solutions.

• Managing the agri-loan book.

The implementation of the flagship initiative started in

earnest in 2015, when an amount of R100-million was

approved to be disbursed over a three-year period.

To date a total of R24.8-million has been disbursed.

What are the specific ways in which you

assist your clients?

The Masisizane Fund measures its impact in three

ways – development impact, financial growth and

the sustainability of businesses assisted. As such,

the assistance we provide is through financial as

well as non-financial support. The non-financial,

value-adding services include:

• Capacity development (business management

and technical support).

• Financial education.

• Market development.

• Product and service quality standards and


Financial support comprises loan financing

(provided by the Masisizane Fund) and grants

provided through strategic partners such as the Old

Mutual Foundation and others.

What sort of trends are you seeing in

terms of SMME businesses?

In general there has been a rise in the number

of small businesses, but what is important is for

those SMMEs to remain in business. We are seeing

a far greater focus being given to small businesses

in particular by government; one example is the

establishment of the Department of Small Business

Development. When SMMEs are supported in

terms of resources, skills and markets it creates

a real opportunity for them to assist in creating

much-needed jobs in South Africa. The private

sector and government naturally have a significant

role to play in advancing SMME development. Be

that as it may, it has been a tough economic climate

for most SMMEs and emerging businesses. This is

more so the case in the agriculture sector due to

drought, rising inputs, etc.

What makes a successful SMME?

Although there is no one-size-fits-all when it comes

to success, there is a general success trait that most

entrepreneurs show. These usually are people who

are hands-on in their business and know how their

business operates (or should operate), who have

a thorough understanding of the strengths and

weaknesses within their business. This is very important

as it should feed into the approach an

entrepreneur will take in trying to grow their business

while still ensuring that it is sustainable. When

entrepreneurs are financially disciplined they are

more likely to succeed.


Physical address: 21st Floor, Old Mutual

Centre, 303 West Street, Durban

Tel: +27 31 302 5415





Games Durban 2022

For the first time in its 85-year history, the Commonwealth Games will be held in Africa,

and Durban's successful bid is set to further boost jobs and tourism.

Do visitors look forward to visiting London

or Middlesex? Sydney or New South

Wales? Cities are among the most important

marketing tools that regions and

countries have. Good branding has become a huge

issue for the world's great cities, and many of these

urban giants are vital to the economic future of

regions, and countries. Hosting events is one of the

best ways of getting a city's brand into the consciousness

of future tourists and potential investors.

The City of Durban will have that opportunity in

July 2022 – it will host the Commonwealth Games.

In hosting upwards of 4 500 athletes from 71

countries and territories from throughout the

Commonwealth, Durban will be hoping to imprint

a positive message about the city in the hearts of

tens of thousands of visitors, in addition to millions

of television viewers.

The secretary-general of the United Nations

has appointed former New York mayor Michael

Bloomberg as a special envoy to look at the future

of cities. His Future Cities forums look into a range

of issues, including climate change. The planners

behind the successful bid for Durban to host the

Commonwealth Games clearly see in the future

of this east coast city a role in transforming the

economy of KwaZulu-Natal.

They are also following international best practice.

According to the Institute of International Trade,

the areas that are most affected in a city that hosts

big events are transport systems, telecommunications,

sports facilities, housing provision and urban

culture. An improvement in each of these sectors

will materially improve the lives of Durban's citizens.

The bid put forward by eThekwini (the municipality

which runs Durban) has five big goals, all of which

are aligned with the National Development Plan:

• Improving infrastructure and accelerating the

rate of development.

• Re-engineering spatial patterns (changing where

people live).

• Uniting all South Africans around a common




programme to achieve prosperity and equity.

• Bringing about faster economic growth, and

higher investment.

• Focusing on key capabilities of people and the


Two of the measurements that will be used to

judge a successful games are tourist numbers and

new inward investment. Interestingly, on the website

of the Glasgow 2014 Commonwealth Games, the

first item under 'Legacy' is 'International business

profile.' Glasgow set out to use the international

sporting event to 'showcase Scotland's good and

services and to build strong relationships with international

markets.' Like Scotland, Durban will be

looking to improve its 'reputation as an excellent

place to do business.'


Writing for, Sarah Juggins says it is

'nigh on impossible to quantify the impact of major

sporting events on a country's economy, and

the economic rationale is often questionable.' She

goes on, however, to give details of a very successful

project carried out by the city of Manchester, host

of the Games in 2002. The aim was that disadvantaged

communities would benefit from the hosting,

and they did, as 6 300 jobs were created; local construction

and tourism companies had big increases

in turnover; visitor numbers to the area grew by

300 000 annually in the years after the Games, and

these visitors spent about £18-million.

This is certainly the kind of broad base of new

opportunity which the South African bid team will

want to emulate. Juggins points to other successful

legacies in former host cities: thousands of metres of

fibre optic cable laid by Manchester; huge improvements

to Melbourne's sports facilities; Delhi's better

roads and airport, as well as its newly established

business hubs.

Tourism in South Africa was greatly boosted by

the 2010 Soccer World Cup. The BBC reported after

the Glasgow Games of 2014 that 690 000 people

travelled to the city and hotels had an occupancy

level of 95% for the duration of the Games. One

research team calculated the tourism impact at


Durban's bid team are hoping that visitor spend

(as it affects GDP) will amount to R6.1-billion when

the Games come to South Africa. An estimated extra

R20-billion would be delivered to the national

economic output, translating into an additional

R11-billion in GDP growth.

There will be 1 000 full-time staff and about

10 000 volunteers, all of whom would gain valuable

work experience and exposure. Reduced crime resulting

from heightened security during the Games

will have positive spin-offs for the local population

and help to improve the region's 'investability.'

One of the unique features of Durban's plan

is the concept of a 'Compact Games.' Durban is

already blessed with a sporting precinct on the

coastal plain between the sea and the Berea which

contains important sporting venues: Greyville

horse-racing track; Moses Mabhida Stadium; Sahara

Stadium Kingsmead (cricket); Royal Durban Golf

Club; Growthpoint Kings Park rugby stadium and

Durban Country Club. The Umgeni River marks the

northern edge of this sporting zone, and it is also

where the climax is reached of the famous FNB

Dusi Canoe Marathon.

The Durban Commonwealth Games will have

80% of its activities in a 2.5km radius and this will

help to position the former World Cup soccer stadium

venue, Moses Mabhida, as a mega multi-sport

events precinct and Durban as a highly desirable

venue for future global events.

Some sports must be offered at every Games

(the so-called 'core' sports), but hosts have a certain

amount of leeway to offer other sports. Rugby

Sevens is a 'core' sport and South Africa are often

in the medals in that discipline; hockey is too, but

Australia looms large in that sport, as they do in so

many others. Cricket has only been offered once

before, at the Kuala Lumpur Games in Malaysia

in 1998. That was the first time ever that South

Africa's cricketers got to wear gold medals – and the

team they beat in the final was Australia! Perhaps

the Durban committee can be persuaded to offer

cricket again.



Durban Chamber of

Commerce and Industry

The Durban Chamber of Commerce and Industry aims to create a business environment

conducive to investment and growth.

The Durban Chamber of Commerce and Industry

contributes towards creating an investment-friendly

economic and business environment in eThekwini

and provides services relevant to the needs of the

business community.

Main objectives

The Durban Chamber aims to achieve the following:

• Provide an investor- and business-friendly


• Facilitate economic and business growth

• Provide relevant services to maintain and attract


• Maintain and sustain its membership

• Promote the development of small businesses

• Engage in influential advocacy on behalf of business


The Durban Chamber provides a broad range of

services and opportunities for businesses, especially

members of the chamber. These include:

• Networking platforms/events such as breakfast

and lunch networking functions

Business support, including mentoring, basic

human resources advice, HIV and Aids advice and

support, and assistance with access to finance and

procurement opportunities

• Lobbying and representation on behalf of

Chamber members

• Sourcing of trade leads and local or foreign suppliers

or service providers

• Local and international credit reference checks


• Procurement portal

• ATA Carnet

• Carnet de Commerce

• Certificates of origin

• Conference centre

• Direct promotion via adverts in the Chamber Digest,

an electronic daily newsletter, free website classifieds,

member-to-member discounts, print membership

directory and online member directory

In December 2014 the Durban Chamber gained status

of being an Enterprise Development Beneficiary.

Through this status the Chamber is able to raise and

administer funds to advance enterprise development

programmes, while at the same time contributions

made to the Chamber qualify for BEE credits on the

Transformation Scorecard.

Working with government

The Chamber’s relationship with the local and provincial

governments has proven to be positive and

fruitful. The Chamber has made significant input

into the development of the Provincial Growth and

Development Strategy, while maintaining a constant

and constructive relationship with the leaders of the

eThekwini Municipality.

In addition, having received contributions from

member companies, the chamber has made submissions

on many proposed policies that will affect

business through legislation.


Physical address: Chamber Square, Lion

Match Office Park, 892 Umgeni Road,

Durban, 4001

Postal address: PO Box 1506, Durban 4000

Tel: +27 31 335 1000 | Fax: +27 31 332 1288






The Durban Chamber of Commerce and

Industry is calling for nominations for the

KZN Exporter of the Year Awards 2016 based

on total turnover and within the following


• Category A - exporting for less than

3 years.

• Categories B-D - exporting for more

than 3 years.

• Category E - exports into the African


• Category F - for service providers.

All KZN based Exporters are eligible to

participate in these Awards, irrespective of

whether or not they are Durban Chamber

of Commerce and Industry members.

The closing date for ENTRIES is:

16h00, 31 August 2016

Please forward entries for:


Attention: Ms Rokeya Valli

Durban Chamber of Commerce and

Industry, P O Box 1506, Durban, 4000

Physical Address: Lion Match Office Park,

Chamber Square, 892 Umngeni Road


Tel: 031-335 1000 | Fax: 086 742 2381



Entries and the intellectual property of the entrants will be

treated in the strictest confidence.

Entries will be judged in two stages by an independent and

impartial panel of judges. The initial stage will be based on

a written submission from which the finalists will be chosen.

The award winners will be announced at the KZN Exporter

of the Year Awards 2016 Gala Dinner to be held on the 20th

October 2016 at the Durban International Convention Centre.

Winners may be requested to participate in post event publicity.

Entries are open to all exporters within KwaZulu-Natal and

NOT restricted to Durban Chamber members only.

Applicants must be authorised to enter their organisation

into the awards programme.

Entries should preferably be in typed format.

All entries will be acknowledged on receipt. Information

included in entries will become the property of the Durban

Chamber of Commerce and Industry. Entries will not be returned.

The organisers reserve the right to withdraw an award from

any applicant supplying false information within their entry.

The Award is held on an annual basis and the ‘floating’

trophies are returnable to the Durban Chamber of Commerce

and Industry at a stipulated date prior to the next event.

The closing date for entries is 31st Augusy 2016 by which

date entries must have been received at the offices of the

Durban Chamber of Commerce and Industry.

The judges’ decision is final and no correspondence will

be entered into.

The declaration by the financial manager must accompany

each entry form. By registering and completing an entry for

the awards you agree to these terms and conditions.


A period of positive

growth and development

The year 2015 marked 60 years since South Africans from all walks of life adopted the

Freedom Charter in 1955, in Kliptown, Soweto, as well as the 25-year anniversary of the

release of Nelson Mandela from prison and the unbanning of the liberation movements.

“They declared amongst other things, that South Africa belongs to all who live in it, black

and white, and that no government can justly claim authority unless it is based on the will

of all the people,” said President Jacob Zuma.




In a year that saw world economic and political

uncertainty, South Africans still had much cause to

celebrate. Great strides have been made nationwide

in building schools and hospitals, major efforts are

underway in terms of job creation, skills development,

SMME growth, the empowerment of women as well

as innovation. After a tough period of loadshedding

and energy instability, Eskom seems to have the

national grid stabilised as well as solid plans for the

expansion of our infrastructure.

South Africa also hit the world headlines through

the discovery of a new species of human relative

("Homo naledi") at the Cradle of Humankind

World Heritage Site, a local doctor successfully

completed the world’s first penis transplant, and

Trevor Noah captured a slice of America’s cultural

empire by taking over as host of Comedy

Central’s The Daily Show.

National priorities

In his State of the Nation Address in early 2015,

President Jacob Zuma said that it had been the

year of rededicating ourselves to eradicate racism

and all related intolerances in our country.

Zuma added that the country’s ambition of

achieving a growth target of 5% by 2019 is at risk

because of slow global growth as well as domestic

constraints in energy, skills, transport and logistics

amongst other factors. However, the situation

was more promising on the jobs front as Statistics

South Africa’s report on the last quarter of 2014

showed that there are now 15.3-million people

who are employed in South Africa. "Jobs grew by

203 000," said Zuma, adding that the economy

still needed a major push forward. Zuma also presented

government’s nine-point plan to ignite

growth and create jobs.

National Government’s nine-point growth plan

1. Resolving the energy challenge.

2. Revitalising agriculture and the agro-processing

value chain.

3. Advancing beneficiation or adding value to our

mineral wealth.

4. More effective implementation of a higher impact

Industrial Policy Action Plan.

5. Encouraging private sector investment.

6. Moderating workplace conflict.

7. Unlocking the potential of small, medium and micro

enterprises (SMMEs), co-operatives, township and

rural enterprises.

8. State reform and boosting the role of state-owned

companies, information and communications technology

(ICT) infrastructure or broadband roll-out,

water, sanitation and transport infrastructure.

9. Operation Phakisa, which is aimed at growing the

ocean economy and other sectors.

"A lot has been achieved in the past year. We believe

that our nine-point economic intervention plan on

the economy will consolidate the achievements,

and ignite much-needed growth," said Zuma.

South Africa has the 24th largest economy in

the world and contributes 30% of Sub-Saharan

GDP despite having only 6.5% of the population.

Sound financial management has seen South

Africa’s macro-economic fundamentals become

very strong off the shaky base that the apartheid regime

created. In particular, prudent controls meant

that South Africa was able to withstand the shockwaves

sent around the world by the international

financial-sector meltdown.

The country is renowned for an abundance

of mineral resources, accounting for a significant

proportion of both world production and

reserves, and South African mining companies

dominate many sectors in the global industry.

South Africa produces 10% of the world’s gold (it

is estimated that about one-third of the world’s

unmined gold still remains in South Africa) and

there has been an increase in the beneficiated

minerals industry, which the government has

targeted as a growth sector.


The discovery of diamonds and gold in the 19th

century laid the platform for the development of

South Africa as an industrialised economy. Wool,

wine and mohair were the country’s only exports

before minerals were discovered.



Although mining plays a far

smaller role in the economy than

it used to, it still contributes significantly

to GDP, employment

and taxation income. Demand

for platinum, iron ore and manganese

from the new global

powerhouses of China and India

is motivating investment in the

sector in South Africa.

Mining companies account

for about a third of the market

capitalisation (R1.86-trillion) of the

country’s stock exchange, the JSE.

One of South Africa’s fastestgrowing

manufacturing sectors,

catalytic converters, also owes

its existence to the minerals that

make up the converters, and one of the central

planks of the South African government’s economic

policy is to ensure that value is added to the

country’s mineral resources. The country already

has many steel mills and aluminium smelters,

but many thousands of tons of raw materials are

exported in their raw state. A number of Industrial

Development Zones and Special Economic Zones

have been set up and promulgated in order to attract

investment as well as to increase local manufacturing


The automotive industry is one of South Africa’s

most important sectors and accounts for about 12%

of South Africa’s manufacturing exports, with many of

the major multinationals using South Africa to source

components and assemble vehicles for both local and

international markets.

Dube TradePort's head office, 29 0 South.

The country has been through a challenging period

during which there have been serious energy constraints.

These have proved to be an impediment

to economic growth and a major inconvenience to

everyone in the country. Overcoming the challenge

was uppermost in government’s programme.

"Government is doing everything within its

power to deal with the problem of energy shortage

in the country. We are quite aware of the fact

that this is indeed a difficult period, but it shall pass

because we do have strategies in place to deal with

this matter," Zuma said.

Government has developed a sustainable plan

that involves short-, medium- and long-term capacity

and infrastructure development, beginning with a

plan for improved maintenance of existing Eskom

power stations, enhancing the electricity generation

capacity and managing the electricity demand. The

long-term plan involves finalising South Africa’s longterm

energy security master plan.

"As a priority we are going to stabilise Eskom’s

finances to enable the utility to manage the current

period," said Zuma, adding that government

was supporting Eskom with R23-billion for the 2016

fiscal year.



Agriculture is a catalyst for growth and food security

and there is a strong public-private sector drive to

develop an Agricultural Policy Action Plan aimed

at bringing one-million hectares of under-utilised

land into full production over the next three years.

"Among key interventions this year, we will promote

the establishment of agri-parks or cooperatives

and clusters in each of the 27 poorest district




municipalities to transform rural economies," said

Zuma. An initial funding of R2-billion was made available

for the agri-park initiative, while the country’s

agro-processing exports are attracting positive interest

in new markets through Africa and China for the

export of South African maize and apples to China.

Apple exports alone are projected to yield R500-

million in foreign exchange over the next three years.


The National Infrastructure Development programme

continues to be a key job driver and catalyst

for economic growth. Major projects include the

Umzimvubu Water Project in the Eastern Cape, Jozini

Dam in Umkhanyakude in KwaZulu-Natal and projects

in Bushbuckridge in Mpumalanga and phase

one of the Mokolo Crocodile Water Augmentation

in Limpopo.

Progress to improve the water supply to areas

affected by shortages are underway, but the

war against water losses (which costs the country

R7-billion a year) is being waged through the

Department of Water and Sanitation’s plan to train

15 000 artisans and plumbers who will fix leaking

taps in their local communities.

Internal affairs

Cabinet has adopted vigorous and integrated interventions

to combat the vicious rhino poaching in the

country, including continuous joint operations with

key neighbouring countries, improved intelligence

gathering as well as enhancing protection in parks

and provincial reserves where rhino are present.

Government has also made substantial progress in

establishing a border management agency to manage

all ports of entry and improve security.

To further improve access to identity documents,

citizens will now be able to apply for the new Smart

ID Card at their local bank due to a partnership between

the Department of Home Affairs and some

banks in the country.

In December 2014, Cabinet released the draft

National Disability Rights Policy for public comment.

'Local government is everybody’s business. We

have to make it work. We have launched the "Back

to Basics" programme to promote good governance

and effective administration through cutting

wastage, spending public funds prudently, hiring

competent staff, and to ensure transparency and

accountability in municipalities,' said Zuma.


One of South Africa’s premier museums and tourist

attractions is The Cradle of Humankind, an ancient

destination that celebrates the fact that present-day

South Africa has been home to the human species

for thousands of years.

Early on 2015 a team of archeologists, led by

Professor Lee Berger of the University of the

Witwatersrand, made a discovery that would pose

new and vital questions about the origins of the human

species and shake up our understanding of the

progress of human evolution. Two years after they

were tipped off by cavers plumbing the depths of

the limestone tunnels in the Rising Star Cave outside

Johannesburg, Berger and his team discovered

what they say is a new addition to our family tree.

The team is calling this new species of human relative

"Homo naledi," and they believe that part of

their tribal culture was the practice of burying their

dead – a behaviour scientists previously thought

was limited to humans.

The team believes that the chamber, located

30 metres underground in the Cradle of Humanity

World Heritage Site, was a burial ground - and that

Homo naledi could have used fire for light. The

discovery was poignant considering South Africa’s

energy crisis, but it was also cause for celebration

of South Africa’s position in the story of mankind,

starting from the birthplace of man to the evolution

of one of the greatest stories of democracy ever told.

What lies ahead is an exciting period of growth as

the country strives to realise its potential to be the

gateway to Africa and, in so doing, helping to unlock

the enormous economic and social potential within

the continent.

Sources: SouthAfricaInfo, BrandSA, Media Club

South Africa, State of the Nation Address.


Growing agri-business in KZN

Agri-parks and trade agreements form the backbone of the province’s agricultural future,

and will be instrumental in facilitating joint ventures between communities and investors.

As South Africa continues to seek market access

for agricultural products, an agreement

with the US secured its position as an African

Growth and Opportunity Act (AGOA)


Through the AGOA agreement exports of agricultural

goods are facilitated, although cheaper US

chicken imports continue to threaten the local poultry

industry. The KwaZulu-Natal Executive Council has

identified key commodities such as red meat, chicken

meat, dairy and dairy products, vegetables, dry beans

and soya beans as focus commodities that have the

potential to become self-sufficient industries and eventually

enter the export market.

In his 2015 budget address, Agriculture and Rural

Development MEC Cyril Xaba stated that agriculture

should be viewed as a business that extends across

the entire food and agricultural chain, from farmers

all the way through to consumers. The development

of Agri-parks was proposed in a bid to attract new

business opportunities and investors. An Agri-park is

a networked innovation system of agro-production,

processing, logistics, marketing, training and extension

services, all of which is located within a District


A total of 10 Agri-parks are planned for KwaZulu-

Natal at a cost of R45-million per park, and each will

centre on the dominant commodity of the surrounding

area. Agri-parks represent a 10-year programme and

are envisaged to be fully functional by the year 2025.

Farmer production as the primary unit

A strong Agri-park base of primary production is necessary

for the success of this initiative, and this will

enable the parks to feed into the value chain and,

in so doing, ensure participation in the agricultural

economy by the Agri-parks. At present there are 321

national rural development projects, 157 of which

are concentrated in KwaZulu-Natal, and these cover

7 235.5 hectares and total 5 446 small-hold farmers. At

the ground level, these production sites will be controlled

by various forms of enterprise that are owned

by local producers, smallholder farmers and manufacturers,

all of whom will hold shares in the Agri-parks.

One such enterprise (and the first basic component

of Agri-parks) is the South African Farmer

Development Association (FPSU). As its name suggests,

it aims to see growers develop from smallscale

to larger operations and, in so doing, to find

their place in the first economy. The FPSU is a rural

small-holding farmer outreach and capacitybuilding

unit that links with farmers and markets.

The FPSU does primary collection and some storage,

in addition to some processing for the local

market, along with extension services such as


In March 2016, the Department of Rural

Development and Land Reform (DRDLR) handed

over R74.5-million towards addressing the needs

of distressed small-scale growers. The agricultural

economy can expect contraction as a result of the

droughts this past year, and in KZN 153 000 farmers

were affected by the drought, with 35 731 reported

livestock losses.

To date 4 750 farmers have been provided with

assistance. Measures for farmer relief and recovery

in the province started on 11 January 2016 and included

feed and medicines to the value of R36-

million, with R2.1-million in livestock water provided

for the drilling and installation of boreholes, in so

doing equipping 75 dams and drilling 62 boreholes.

Importantly, the DRDLR has taken essential steps




to mitigate drought damage in

sites identified for Agri-park areas.

These identified sites or affected

areas are tabled for each district.

The Agro-Processing Unit

The second component of the

Agri-parks is referred to as the

Agro-processing Unit, where primary

products are processed to

add value and bring more revenue

into the area. These ‘agrihubs’ (as

they are also referred to) are defined

as production, equipment

hire, processing, packaging, logistics,

innovation and training units.

The agrihubs have received

funding approved by the DRDLR

to counter drought damage

across all districts, and this includes

R80 000 towards auction

sale facilities, R8.3-million for feedlots

and handling facilities, and

R1.1-million towards irrigation


Efficient irrigation practices,

technical assistance to farmers

and increased investment in research

and development are all

proposed measures for enhancing

the resilience of the agricultural

sector against future losses.

Rural Urban Market

Centre (RUMC)

far end of the agro-processing value chain this would include the speed

that products go through port, decreased export tariffs through trade

agreements, advancing capital investment, and increasing market development.

This falls under the responsibility of the third component

arm of Agri-parks, namely the RUMC.

The RUMC has three main purposes:

• Linking and contracting rural, urban and international markets

through contracts.

• To act as a holding facility, releasing produce to urban markets

based on seasonal trends.

• Providing market intelligence and information feedback to the

agrihubs and the FPSU, using the latest information and communication


Developing Agri-park management structures

Governance structures for Agri-parks have already been established,

and on 11 December 2015 the District Agri-parks Management Councils

(DAMC) and the National Agri-parks Management Councils (NAMC) were

launched. In their March 2016 meeting MEC Xaba met with the newly

appointed governing bodies for a workshop to address progress. The

MEC reminded the DAMCs that Agri-parks had been introduced to kickstart

rural economy development and that, should they fail, then they

would be failing the poor and the people of the province as a whole.

Production programmes

Production plans are currently being implemented, with some plans

having to be realigned to address prevailing drought conditions. Agripark

construction (Farmer Production Support Units and agri hubs) has

commenced in seven of 27 priority districts, although this does not

yet include KwaZulu-Natal. The districts are busy completing their own

business plans in order to show linkages between farmers, the FPSU,

agrihubs and the RUMC.


Developments in the province

around agri-business are effectively

incorporating measures to

buffer against future economic

losses sustained by drought and

are geared towards achieving the

agreed 0.5% additional contribution

to economic growth. At the

CF can use the Agripark

process established

as depicted.

However due to their

existing experience

and product volumes

they may choose to

enter the AP process

at the AH, RUMC or

even go directly to

the Market.

Commercail Farmer (CF)


Small Product Support Unit


Agri-Hub (AH)

Rural Urban Market Centre



Small Holder Farmer (SHF)


SHF's will be encouraged to use

the Agri-park process established

as depicted. It is within this process

that SHF will be supported

over the next 10 years. SHF will

be able to move produce from

the FPSU to the RUMC without

going through the AH, if no further

value-added of packaging

is required. The efficiency of the

Agri-park process will determine

its use by farmers.




Overview of the main economic

sectors of KwaZulu-Natal

Agriculture 62

Forestry and paper 64

Sugar 72

Oil and gas 74

Mining 78

Manufacturing 80

Automotive 84

Water 86

Renewable energy 88

Banking and financial services 90

Development finance and

SMME support 102

Education and training 104

Tourism 106



The diversity of KwaZulu-Natal's agricultural sector is providing new sources of income.


• RCL Foods Ltd has become

a major player in the

food sector

• A new marula processing

plant promises increased

incomes for farmers

• An ethanol from sugar

project could create jobs

near Jozin

What used to be Rainbow Chickens is now the rapidly

expanding 'RCL Foods Ltd', but the base of the new

company is still in Westville, about 12km west of Durban.

Having purchased Vector Logistics in 2004, RCL made

two large investments in 2013, a majority share of Foodcorp and a 49%

stake in Zam Chick of Zambia. The Remgro Group is a 75.9% shareholder

in RCL Foods, which for the six months ended 31 December 2015 had

revenue of R12.9-billion, which was 7% down on the previous year.

The diversification that came with the purchase of Foodcorp means

that a large number of brands are now housed in the company – Nola,

Yum Yum, Sunbake bread, Farmer Brown, Ouma rusks, A1 Maize Meal,

for example – and this spread helped to counter events such as the

national drought and the importation of 65 000 tons of poultry from

the United States of America. The special trade deal between the USA

and South Africa (AGOA) was a cause of tension recently, and poultry

by-products were one of the key issues. The trade agreement has

since been renewed.

KwaZulu-Natal is also home to Clover, one of South Africa's most

important agri-processing firms in the dairy sector. In Pinetown

Clover has a long-life UHT milk processing and packaging facility;

a Queensburgh factory makes

fresh pasteurised milk, juice,

dairy mix and fermented products;

Escourt manufactures milk

powder. Revenue for the six

months to 31 December 2015

was up nearly 8% to R5-billion

but the lack of feed caused by

the drought will affect all milk

producers in South Africa. Clover

buys nearly 30% of all milk produced

by South Africa's farmers.

KwaZulu-Natal has a large

number of food and beverage

producers, but there are countless

opportunities that still remain

in the agri-processing

sector. Agri-processing will no

longer be the preserve of big

companies, thanks to a provincial

government initiative in

Ngwanase in the uMkhanyakude

District Municipality. R30-million

has been invested in a marula

processing plant, designed to




produce jams and oils. Most of

the funding came from the KZN

Department of Agriculture and

Rural Development (KDARD) with

the national Department of Rural

Development and Land Reform

contributing a R5-million de-stoner

machine. Forty-nine areas will

supply primary stock to the plant.

Vegetables also grow well in

most areas, and some maize is

grown in the north-west. Nuts

such as pecan and macadamia

thrive. The province’s forests occur

mostly in the southern and

northern edges of the province.

TWK is a R6-billion operation

that originated in forestry

(as Transvaal Wattlegrowers

Co-operative) but which is now

a diverse agricultural company

with seven operating divisions. It

has 19 trade outlets in the province

and 21 in Swaziland and


The coastal areas lend themselves

to sugar production and

fruit growing, with subtropical

fruits doing particularly well in the

north. KwaZulu-Natal produces

7% of South Africa’s citrus fruit.

The Coastal Farmers Co-operative

represents 1 400 farmers.

Eighteen percent of Kwa-

Zulu-Natal’s 6.5-million hectares

of agricultural land is arable and

the balance is suitable for the

rearing of livestock. Beef originates

mainly in the Highveld

and Midlands areas, with dairy

production being undertaken

in the Midlands and south. The

province produces 18% of South

Africa’s milk. The Orange Grove

Dairy Farm near Dundee has one

of the biggest pedigree Jersey

herds in the country.

KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle,

which represents 55% of the provincial beef herd, and their goat

herds account for 74% of the province’s stock. The Midlands is also

home to some of the country’s finest racehorse stud farms. The area

around Camperdown is one of the country’s most important areas

for pig farming.

Upliftment and investment

A KwaZulu-Natal Department of Agriculture and Rural Development

initiative to help small farmers become commercial farmers has 3 483

participants and 122 communal estates have been registered as legal

entities. Another upliftment project will see R14-million spent on assisting

five small-grower collectives to become effective sugar-cane

farmers at Qoloqolo (uMzumbe Local Municipality).

Massmart, the retail group that has been bought by US giant

Walmart, will invest R15-million to 2017 in creating opportunities in

its food chain for emerging farmers. TechnoServe, a non-governmental

organisation, will oversee the programme.

A South African/Brazilian company called Silvapen is set to develop

an ethanol-from-sugar plant near Jozini on the Makhatini Flats. The

premier of the province announced that the project's value is R1.2-

billion and it could create 1 000 jobs.

Enterprise iLembe, the development arm of the iLembe District

Municipality, is looking for investors to further develop an agri-processing

hub that is taking shape near the King Shaka International

Airport and Dube TradePort.

KwaZulu-Natal has two colleges offering higher qualifications in

agriculture, Cedara in the Midlands and the Owen Sitole College of

Agriculture near Empangeni.


Citrus Growers’ Association:

Coastal Farmers Co-operative:

Dry Beans Producers’ Organisation:

Fresh Produce Exporters Forum:

KwaZulu-Natal Agricultural Union:

KwaZulu-Natal Department of Agriculture and Rural


Milk Producers Organisation:

National Department of Agriculture, Forestry and Fisheries:

Royal Agricultural Society of Natal:




Forestry and paper

KwaZulu-Natal makes huge amounts of dissolving wood pulp and paper.


• Sappi has transferred production

of Typek paper to

its Stanger mill.

• Durban hosted the World

Forestry Conference in


• Mpact recently invested

an additional R200-

million in production


• South Africa is set to have

many more small-growers

in the near future.

For the first time an African country hosted the World Forestry

Conference, when thousands of delegates descended on

Durban in September 2015.

Topics such as climate change, food security, plantations,

water supply and conservation (and how these issues relate to forests)

were given a full airing at the conference.

In her address to the conference, South Africa's Minister of Water

and Sanitation, Nomvula Mokonyane, stressed the threat posed by

invasive alien plant species to the country’s biological diversity, water

security and the productive use of land. She pointed out that alien

plants consume 30% of the country's water.

Deputy State President Cyril Ramaphosa told delegates that South

Africa's forestry sector will, look different in a few years time. Although

there are already 24 000 'small growers', this number is set to rise significantly

as land restitution claims are settled: Ramaphosa said that '50

to 60% of our plantation land' is under land claims, and he pointed out

that these new farmers will need support. This will present an opportunity

for entrepreneurs or companies in the agricultural services sector.

KwaZulu-Natal is a national

leader in the forestry and paper

sector. The forest-product export

sector in South Africa is made

up of paper (45.2%), solid wood

(23.3%) and pulp (28.9%).

Mpact, the paper manufacturing

and plastics packager that

was spun out of Mondi, invested

a further R200-million in its waste

paper and recycling operation

at Empangeni. The company

collects more than 450 000 tons

every year.

Mondi and Sappi are both

large international companies

and both have long-standing

ties with KwaZulu-Natal. Sappi

Southern Africa currently contributes

a quarter of the group’s

sales. The pulp and paper sector

makes a direct contribution to

South Africa’s balance of payments

of R4.5-billion, largely due




to Sappi’s dissolving wood pulp


In 2015 Sappi moved the production

of its Typek paper from a

mill in Gauteng (which it has sold)

to its Stanger facility, where office

and tissue paper are the key



Timber plantations are found in

five parts of the province: northern

KwaZulu-Natal, Midlands, southern

KwaZulu-Natal, Zululand and

Maputaland. Close to half a million

hectares – 38.5% of the land in the

province – is allocated to timber

plantations. Of this area, 70% is devoted

to hardwoods and the balance

to pine, the only softwood

grown in large quantities in South


The percentage of privately

owned forest land is 93.4%.

Merensky has plantations in the

Dargle forest, while Sappi and

Mondi have holdings across the

province. Mondi has 220 000

plantation hectares on 330 000

hectares of land, while Sappi

manages and owns about

230 000 hectares.

The South African forestry industry

is valued at R40-billion per

year. The National Department of

Agriculture, Forestry and Fisheries

reports that South Africa has a

shortage of sawn timber and that

this problem is set to get worse.

Labour writer and researcher

Terry Bell reports that 82% of the

forestry workforce on the 17 largest

operations (36 025 employees)

are employed on contract

through labour brokers (Business

Times). With a further 5% on fixed-term contracts, Bell believes this has

the potential to increase tension between employer and employee.


KwaZulu-Natal is a major centre for the beneficiation of timber products,

with more than half the country’s timber coming from the province.

The Sappi mill at KwaDukuza produces 110 000 tons of paper and

60 000 tons of pulp annually, and is the only producer of coated graphic

paper in the country. Its Tugela Mill, at Mandeni, is the only one in the

country to manufacture high-performance containerboard packaging.

The giant Sappi Saiccor mill 50km south of Durban is the world's

biggest manufacturer of dissolving wood pulp. The mill's capacity is

800 000 tons. Dissolving wood pulp is sold as a raw material to converters

around the world who produce from it a range of products such as

textiles, cellophane wrap and pharmaceuticals.

The country’s largest hardboard plant is at Estcourt and South Africa’s

only woodchip export plants are located at Richards Bay.

Mondi’s Richards Bay facilities produce pulp, linerboard and wood

chips and its paper mill at Merebank, south of Durban, has a capacity

of 600 tons per day. It produces 400 000 tons of uncoated, wood-free

paper per year.

Nampak produces crêpe paper at Verulam and Rafalo produces

tissue paper. SA Paper Mills is another paper producer.

The Merensky Group operates one softwood sawmill in addition

to a panel-processing plant in Kokstad that is geared to manufacture

according to customers’ needs in any sector. Export is done through

the Port of Durban.

NCT Forestry Co-op Limited is a key timber-marketing entity with

more than 2 000 members and three wood-chipping mills. R&B Timber

Group has three pole treatment plants and is headquartered in Harding.

Flaxton Timbers operates out of Ixopo and Natal Forest Products is in



Forestry South Africa:

KwaZulu-Natal Department of Agriculture and Environmental


National Department of Agriculture, Forestry and Fisheries:

Paper Manufacturers of South Africa:

South African Institute of Forestry:

Technical Association of the Pulp and Paper Industry of South




We are Mondi:

In touch every day

At Mondi, our products protect and preserve the things that matter.

Mondi is an international

packaging and paper

Group, employing

around 25 000 people

across more than 30 countries. Our

key operations are located in central

Europe, Russia, North America

and South Africa. We offer over

100 packaging and paper products,

customised into more than

100 000 different solutions for customers,

end consumers and industrial

end uses – touching the lives of

millions of people every day. In 2015,

Mondi had revenues of €6.8-billion

and a return on capital employed

of 20.5%.

The Mondi Group is fully integrated

across the packaging and paper

value chain – from managing forests

and producing pulp, paper and

compound plastics, to developing

effective and innovative industrial

and consumer packaging solutions.

Our innovative technologies and

products can be found in a variety

of applications including hygiene

components, stand-up pouches,

super-strong cement bags, clever

retail boxes and office paper. Our

key customers are in industries

such as automotive; building and

construction; chemicals; food and

beverage; home and personal

care; medical and pharmaceutical;

packaging and paper converting;

pet care; and office and professional


Richards Bay mill.

Mondi has a dual listed company structure, with a primary listing on the JSE

Limited for Mondi Limited under the ticker code MND and a premium listing

on the London Stock Exchange for Mondi plc, under the ticker code MNDI.

For us, acting sustainably makes good business sense and is part of the

way we work every day. We have been included in the FTSE4Good Index

Series since 2008 and the JSE’s Socially Responsible Investment (SRI) Index

since 2007.

Mondi's South Africa Division

In South Africa our business manages upstream forestry operations and

manufactures and sells a range of pulp, virgin containerboard, uncoated

fine paper (UFP) and newsprint products.

We own and manage one of the largest Forestry Stewardship FSC®-certified

plantation units in the world. The internationally recognised FSC® accreditation

recognises that our plantations are managed in a responsible and

sustainable manner.

We have 1 600 employees working across three divisions: Forestry operations,

a pulp and linerboard mill, and an uncoated fine paper and

newsprint mill.


Key personel: CEO Mondi South Africa, Ron Traill

Physical address: Travancore Drive, Merebank 4052

Postal address: PO Box 31024, Merebank 4059

Tel: +27 31 451 2111 | Website:



Mondi Group

South Africa


Ron Traill, Chief Executive Officer of Mondi SA, talks

about how the group achieved its recent strong results

while ensuring sustainable development of their

forests and local communities.

Ron Traill, CEO of Mondi

South Africa


Ron joined Mondi in 2003 as

managing director of the Štetí

pulp and paper mill in the ˇ

Czech Republic, also assuming

responsibility for the Mondi

packaging paper business in

Ružomberok, Slovakia. He

then relocated to SA, being

appointed CEO of the South

Africa Division in January 2008.

Ron has over 34 years’ experience

in the paper industry. He

began his career as an industrial

engineer with DRG Packaging

Group, working in its Scottish

paper mill. He went on to hold

a succession of posts within

the company, leading ultimately

to his appointment as general

manager. Following DRG’s acquisition

by Sappi in 1990, he

worked for 10 years in a number

of general management roles.

What makes KwaZulu-Natal such a good business

location for Mondi South Africa?

Durban is a large business hub with good road and rail infrastructure

for our domestically focused business. The location and proximity of

the largest port in Africa offers strategic advantages for our export

products while the province’s northern and central areas offer a very

good climate and environment which is well-suited to a commercial

forestry business. Our Richards Bay mill is also very well situated to

export products from the Richards Bay port.

Mondi South Africa had exceptionally good financial

results. How important to your financial performance

was the successful repositioning of your business?

There are three strategic value drivers for our business in Mondi

South Africa. Firstly, maintaining a high-quality, low-cost asset base,

keeping a strong focus on performance and the development of

our people.

We have a philosophy of continuous improvement and a constant

focus on operational excellence. The fundamental principle behind

operational excellence at Mondi is the desire to do more with less.

We continue to invest in and manage our business to ensure that

our manufacturing operations maintain their high-quality and low-cost

advantages and are well-positioned for growth opportunities. In 2016,

we will be focusing on the completion of our strategic investments

in the woodyard and brown kraftliner production at our Richards Bay

mill. The ability to produce both white top and a brown liner will offer

us additional market flexibility. In our graphic paper and newsprint

business at Merebank the focus remains on continuing to run our

operations well and delivering consistent quality to our customers.

In our forestry business, the modernisation of our operations

has been a key focus in recent years. We are dependent on low-cost

timber from sustainably managed forests. Our research activities

focus on increasing the resistance of our trees to pests and diseases,

improving their ability to withstand drought conditions and



Uncoated fine paper machine, Merebank.

increasing the rate of growth and yield. As a result

of our nursery modernisation investments, we have

reduced the time to market and delivered a 10-15%

improvement in our timber yield.

Another important area is the development of

our people. This is evident in the consistently high

level of training in our operations. A highlight in

2015 was that four of our employees received their

international Pulp and Paper Craftsman qualification

in Europe. By investing in our people, our operations

have become safer and our people are more

skilled, more effective and more productive. Our

productivity has improved by 90% over the last

three years.

What measures have you put in place to

ensure the sustainability of your plantations

as well as consideration for the


We are well aware of our responsibility to mitigate

the impact of our business on the environment,

including limiting our water consumption.

Water is crucial throughout the paper production

process, from growing trees to processing fibre into

products and for ‘non-contact’ purposes such as

cooling water in our production facilities. We have

invested around R5-million in projects to reduce

water consumption in our production processes at

the Richards Bay mill resulting in a 15% reduction in

water consumption in 2015. At our Merebank mill we

have replaced more than 90% of the potable water

use with second-class treated water and made further

investments to reduce the remaining potable

water, resulting in a 60% reduction in potable water

consumption since 2010.











Wetland, Mondi Gilboa.

Modernised forestry operations.

We place great importance on proactive and

responsible stewardship of forests as well as freshwater

ecosystems and maintaining biodiversity and


Responsible forest management involves increasing

long-term productivity and preserving

ecosystem values in rural landscapes, and protecting

high conservation value areas such as wetlands.

The Mondi Group is also a long-standing supporter

of the WWF-Mondi Wetlands Programme

(WWF-MWP), which celebrates its 25th anniversary

in 2016. The programme focuses on managing

and rehabilitating wetlands with different groups

of land-users (including Mondi) where we have

improved wetland management on our forestry

land while removing commercial trees from riparian

zones and wetlands. The WWF-MWP is now

part of our global partnership with WWF. The

programme’s focus is shifting to catalysing water

stewardship at the landscape scale, ensuring collaboration

and action by different land-users in

the uMngeni and Mvoti River catchments, both

of which are strategically important water-supply

areas for KZN’s economic hubs.

To what extent do you engage with local

communities and play a role in development

and upliftment of those communities?

We engage with a wide range of stakeholders,

including government, NGOs, suppliers and communities,

and the latter are a major focus of our

investment in health, education and local enterprise.



Mondi’s Sizwe Mtengu with Moses Ntombela, Chairperson of the kwaZiqongwana Community Trust

forestry business, Babanango Zululand.

Mondi Career Guidance, Science and FET Skills

Centre, Piet Retief.

Mondi Zimele, our local enterprise initiative, has an

excellent track record of creating sustainable businesses

and jobs. In addition, it helps to maintain a

steady supply of high-quality fibre from a network

of small forest enterprises, and this has continued

to make a positive impact on the lives of people

in our rural communities.

Health and education are key community investment

priorities. We have continued to support

REAP (Rural Educational Access Programme) which

provides bursaries as well as access to tertiary

education in rural forestry areas. Our mobile clinics

operate in partnership with local NGOs and

the Department of Health, and these continue to

provide high-quality healthcare for our contractors

and communities. In 2015, the clinics received

54 369 visits, which included 8 498 visits by forestry

contractors and 45 871 visits by local communities.

Our wider community investments continue to

assist and empower schools, university students,

forest smallholders and entrepreneurs, as well as

provide healthcare and support.



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initiatives and emerging markets in South Africa?

Global Africa Network publishes a broad range of print and electronic

publications highlighting trade, investment and local government projects

in emerging markets.

Contact us for more information on how to participate in

our publications, or receive a complimentary copy.

Global Africa Network Media

Tel: +27 21 657 6200





Sugar production levels have been affected by the drought.

Illovo Sugar Limited has a presence in six African countries and is

the continent's biggest sugar producer. The group's head office is in

Umhlanga Rocks, close to the heart of South Africa's sugar industry

in northern KwaZulu-Natal.

Tongaat-Hulett's headquarters are about 50km north of Umhlanga,

close to the King Shaka International Airport.

The South African Sugar Association has offices, research laboratories

and sugar-cane testing facilities at nearby Mount Edgecombe. Various

divisions of SASA are housed in a building called Kwa-Shukela, as are

the following organisations: the SA Cane Growers' Association, the SA

Sugar Millers' Association, the National Bargaining Council for Sugar,

Grocane Fire Insurance, and TSB Sugar (Durban office).

The Sugar Milling Research Institute conducts research for each of

the 14 raw sugar factories in South Africa and the central refinery of the

Tongaat-Hulett Group, all of which are full members of the SMRI. The

Institute also provides technical services to some affiliated member mills

in Swaziland, Mozambique, Zimbabwe, Malawi, Zambia and Tanzania.

Neither of the Big Two companies relies exclusively on South African

sugar earnings: Tongaat-Hulett has a big property portfolio and Illovo

draws most of its profit from operations elsewhere in Africa.

Both companies reported reduced production volumes in 2015

because of the drought in South Africa. Tongaat-Hulett's Darnall mill

did not open for the season. The Illovo group reported a 10% downturn

in production in September 2015. Operating profit for the six months

dropped to R881-million, a fall of 36.7%.

About 40% of local production is exported. There are six sugar

producers who can collectively produce about two-million tons. The

general trend has for less sugar to be produced.

The South African Cane Growers' Association represents about

24 000 growers who produce about 20-million tons of cane.

Fluctuating weather conditions in recent seasons have contributed

to overall South African production of sugar declining, but the industry

has a strong infrastructure, particularly in KwaZulu-Natal, the province

where most of the country's sugar is grown, crushed and processed.

Mpumalanga is the other province with significant capacity.

Total saleable sugar production dropped below two-million tons

for the first time in many years in the 2010/11 season, but has since

recovered. Saleale sugar within South Africa fell from 1.649-million tons

in 2014/15 to 1.620-million tons in 2015/16.


The R14-million Qoloqolo

Sugar Cane project will

boost co-operatives in the

uMzumbe local Municipality.

• The SA Cane Growers'

Association represents

nearly 24 000 growers,

who produce in the region

of 20-million tons of cane.

• Illovo and Tongaat-Hulett

are the two giants in the

sugar sector.

The biggest challenge to

South Africa’s sugar industry is the

huge subsidies available to sugar

producers in the northern hemisphere.

In addition to this, the

countries of the Southern African




Development Community have

not successfully bargained with

Europe as a unit, with the result

that individual countries have

gained preferential rights. This

does not include South Africa.

Small growers

Despite government and industry

efforts to promote small sugarcane

growers, many of these

small-scale farmers are finding

conditions very difficult.

In the 2000/01 season, farmers

in the Umfolozi district produced

more than 400 000 tons

of cane; by 2008/09 that figure

had dropped to 142 846 tons.

Poor rainfall and high input costs

threaten the viability of many

small farms, which are often located

on land controlled by tribal

authorities. The average size of a

small farm is 4.74 hectares.

Land reform (including the

distribution of land to new small

growers) is part of the policy of

provincial and national government.

The South African Sugar

Association (SASA) reports that

some 21% of freehold land under

cane has been transferred from

white owners to black owners

since 1994 off a base of 5%. With

a number of land claims still outstanding,

it is clear that this number

is set to grow.

In 2015 SASA teamed up with

the provincial government to support

the Qoloqolo Sugar Cane project.

This will see R14-million spent

in support of co-operatives in the

uMzumbe Local Municipality area

on fencing, introducing methods

for better yields and more costeffective

harvesting, in addition to expanding the amount of cane

under management.


Three mills in Zululand cater for 4.2-million tons, three North Coast

mills take care of 3.2-million tons, the three Midlands facilities crush

3.5-million tons and the South Coast's two mills handle 3.2-million tons.

Illovo and Tongaat Hulett are the major operators of sugar mills, and

12 of South Africa’s 14 mills are located in KwaZulu-Natal. Each of these

companies operates one mill in the province: Gledhow, ULC, Umfolozi

and TSB (the latter has a further two mills in Mpumalanga).

Illovo has four mills, three sugar-cane estates, four sugar factories,

a refinery and three downstream operations that make products such

as furfural, furfuryl alcohol, ethyl alcohol and lactulose.

The four mills run by Tongaat Hulett are located on the North

Coast, while the central refinery is in Durban and the animal feed

plant, Voermol, is near Tongaat.

The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and

can store more than half-a-million tons of sugar. It also has a molasses

mixing plant.



Tons produced in SA for SA and export

2008/09 2 260 244

2009/10 2 178 543

2010/11 1 909 236

2011/12 1 822 488

2012/13 1 951 518

2013/14 2 343 650

2014/15 2 110 550



South African Cane Growers’ Association: www.sacanegrowers.

South African Sugar Association:

South African Sugar Technologists Association:

Sugar Milling Research Institute:



Oil and gas

Oil and gas companies are exploring off the coast of KwaZulu-Natal.


• Statoil has acquired 35%

of oil exploration rights

in the Tugela South field.

• A gas-to-power project

is mooted for the

Richards Bay Industrial

Development Zone.

• Vopak has increased its

storage capacity.

• Sasol and Eni are working

together in offshore


The search is on for oil off the coast of KwaZulu-Natal. Tugela

South is an area off the coast where exploration rights were

first granted to Impact Oil & Gas in 2011. Various studies have

been done and ExxonMobil came on board as a shareholder

and later, as operator in 2013: they were joined in 2015 by Statoil.

The Tugela South Exploration Right covers in the region of 2.8-

million acres and future rights encompass an additional 16-million

acres offshore (SAinfo).

Rhino Oil and Gas and Sungu Sungu Gas are also actively exploring

for oil and gas in the province, while Sasol has a three-year permit

to explore off the coast of the province. Sasol has signed a partnership

for Italian multinational company Eni to be the operator of the

exploration effort.

KwaZulu-Natal is home to two major oil refineries and is the first link

in the pipeline chain that connects the Gauteng province (the industrial

heartland of South Africa), with vital fuels. The Port of Durban handles

80% of South Africa's fuel imports. KwaZulu-Natal is thus a key player

in the country’s oil and gas industry.

Royal Vopak, which runs a large terminal at the Port of Durban, has

expanded capacity to 174 000m³ and is planning to grow its ability

to store fuel still further. It is also

planning a new storage facility

at Heidelberg that will cater for

petroleum and chemicals. Towns

along the N3 highway are increasingly

receiving investments in the

logistics sector.

Getting fuel to the province

of Gauteng is the key mission of

the new multi-purpose pipeline

(NMPP) which started delivering

fluids in early 2012, with the full

first phase coming on line a year


The NMPP terminals allow

for greater flexibility in supply.

Refined products such as jet fuel,

sulphur diesel and both kinds of

octane petrol are carried. The infrastructure

of Transnet Pipelines

reportedly reduces the number

of fuel tankers on South African

roads by about 60%.

The liquid fuels and gas networks

of Transnet Pipelines trav-




erses KwaZulu-Natal from west

to east and north to south. The

petroleum network has intake

stations at both Durban refineries,

while the gas pipeline runs

from Secunda to Durban, with

diversions to the manufacturing

hubs of Newcastle and Richards

Bay, and along the coast between

Durban and Empangeni.

Transnet Pipelines employs

658 staff, with about 200 located

at the head office in Anton

Lembede Street in downtown


(among other things) in fuel products. The modifications to the refinery

will bring it into line with the tougher legislation regarding fuel

production that is in the pipeline.

The Enref refinery owned by Engen can produce 135 000 barrels

per day. This sophisticated refinery can convert light and heavy crude

oil into high-value products that include jet and diesel fuel, solvents,

bitumen, sulphur, bunker oil and aviation gasoline.

Safor is a base-oil production facility (jointly owned by Engen, Caltex

and Total, but operated by Engen) that produces 45% of Southern

Africa’s base oils. Engen also owns the adjoining Lube Oil Blend Plant,

which produces in excess of 72-million litres of finished lubricants

every year.

KwaZulu-Natal has the second-highest consumption of diesel fuel

of South Africa’s provinces (17.8%) and the third-highest consumption

of petrol (15.4%).


KwaZulu-Natal’s two oil refineries

produce large volumes of a

wide range of products. They are

important regional and national

assets as their joint production

accounts for more than 300 000

of the 700 000 barrels of refined

crude oil that South Africa produces.

BP, one of the joint operators of

the Sapref refinery located south

of Durban, spent R1.4-billion on

energy infrastructure in South

Africa in the period to 2013.

South Africa’s biggest refinery

is Sapref. Owned jointly by

Shell SA Refining (25%), Thebe

Investments (25%) and BP

Southern Africa (50%), it has a capacity

to produce 180 000 barrels

per day. The refinery also makes

propylene feedstock, solvents,

sulphur, asphalt, industrial-processing

oils and liquefied petroleum


Sapref has started a 'cleanfuels'

project, aiming to reduce

sulphur and benzene levels


In the Richards Bay Industrial Development Zone a gas-to-power

project has been proposed by the zone's managers. The plan involves

importing gas from the nearby Mozambique gas fields by ship or

pipeline. An even more attractive option would be if gas were found

off the coast of Richards Bay.

The regulator and promoter of oil and gas exploration in South

Africa, Petroleum Agency South Africa, has awarded coalbed-methanegas

exploration rights in KwaZulu-Natal to NT Energy Africa, which

has a partnership with the Central Energy Fund. These awards are for

onshore exploration. The Petroleum Agency SA is an agency of the

National Department of Energy.

Plants in Durban, Pietermaritzburg and Richards Bay produce a

variety of industrial, household and medical gases. End products include

acetylene welding products and compressed-oxygen cylinders.

Air Liquide is spending R100-million on expanding its liquid-nitrogen

plant in Richards Bay, and Afrox has budgeted R500-million for

moving its headquarters to an 111 000m² site at Cornubia Industrial

Estate near Umhlanga. Operations will be moved from the Port of

Durban, Pinetown and Seaview. The new plant will be expected to fill

5 000 cylinders every day.


National Energy Regulator of South Africa:

Petroleum Agency SA:

South African National Energy Association:

South African Petroleum Industry Association:

Transnet Pipelines:


RBM050-40 HALOMEDIA 2016

T: +27 (0)35 901 3111






The rich mineral sands of northern KwaZulu-Natal underpin the province's mining sector.

Mining was responsible for about 2% of KwaZulu-Natal's

gross domestic product (GDP) in 2013, which is to say R9.3-

billion. Half of the province's mining output (and 3.3% of

South Africa's) comes from Richards Bay Minerals (RBM).

RBM mines the minerals sands of the northern KwaZulu-Natal coast

and operates out of Richards Bay. The main products of the RBM mine

are zircon, rutile, titania slag, titanium dioxide feedstock and high-purity

iron. Of the approximately two-million tons of product that RBM has

the capacity to produce annually, 95% is exported.

Titanium dioxide adds opacity to paints, fibres and plastics and it

is also vital to the pigment industry.

Rio Tinto owns 74% of RBM. Weak global demand meant that

overall production of titanium dioxide slag by Rio Tinto (including

their Canadian operations) was down 25% in 2015. One of the four

furnaces at RBM has been idled in response to this reduced demand.

Since the deal to develop the Fairbreeze mine and smelter was

signed between Canadian company Tronox and South African resources

company Exxaro in 2012, $225-million has been spent on the

project. The mine came on line in the fourth quarter of 2015, on budget

and ahead of schedule, replacing the closed-down Hillendale mine.

The final $50-million will be spent in the course of 2016. Feedstock for

the slag furnaces near Empangeni is ilmenite and it produces zircon

and pig iron, amongst other mineral products. China is an enthusiastic

buyer of zircon, but growth in that country has not been as fast in

recent months as was the case for several years up to 2015.


The Fairbreeze mine and

smelter started operating

in 2015.

• The community in which

Petmin's Somkhele coal

mine operates are now

partners in the business.

• A feasibility study recommends

establishing a provincial

Metals Hub.

• Tronox will spend $50-million

at Fairbreeze in 2016.


KwaZulu-Natal is home to one

aluminium smelter (there were

two in Richards Bay until Bayside

closed in 2015), Arcelor Mittal

has a large steel-making plant

in Newcastle and Tata Steel

KZN manufactures high-carbon




ferrochrome at Richards Bay.

Safa Steel has a fairly new metalcoating

factory in Cato Manor.

Hulamin makes rolled products at

three sites in the province while

the Pietermartizburg facility also

makes extrusion products.

The provincial government

is keen to promote the downstream

beneficiation of metals

within the Richards Bay area. A

feasibility study on establishing

a Metals Hub returned a positive


A small-scale mining Imbizo

was held in August 2015 to

look into regulations, access to

funding, and technical support

mechanisms for small-scale

mining. Since then, the province

has produced the KZN Mineral

Beneficiation Strategy. The first

area of focus is coal and phosphate.

There is a provincial commitment

to using waste material

from the mineral sector as a

source for beneficiated building

materials and five commodity

value chains are going to

be examined in detail, namely

Aluminium, Coal, Iron and Steel,

Phosphates and Mineral Sands.


Some of the province’s coalfields

have been revived and the export

facilities at Richards Bay make a

massive contribution to the functioning

of the country’s mining


Petmin's Somkhele Anthracite

Mine, north of Richards Bay, has

one of the biggest reserves of

open-pit anthracite in South

Africa, with measured and indicated reserves of more than 51-

million tons across its four areas.

In 2015 the local community of about 175 000 became 20% shareholders

in the mine. The Petmin holding company is already 'empowered'

(ie, 26% black ownership).

Although the second six months of 2015 saw some reduction in

production due to geological conditions, the mine still produced more

in the year than the benchmarked annual figure of 1.2-million tons of

metallurgical anthracite for ferro-alloy smelting. Somkhele also mines a

lower-grade coal, what is known as 'energy coal'. Its annual capacity for this

type of coal is about 350 000 tons: in the six months to December 2015,

production was 8% down on the previous year (namely 157 000 tons).

Buffalo Coal Corporation (formerly Forbes Coal) has Canadian roots

and has two assets near Dundee: Magdalena Colliery (production capacity

of 100 000 tons of saleable bituminous coal per month) and Aviemore

Colliery (45 500 tons of anthracite coal). The company has two processing


Other minerals

Idwala Industrial Holdings quarries and mills white calcitic and dolomitic

limestone near Port Shepstone, where NPC Cimpor also runs a

quarry which produces sand, shale and limestone.

Umzimkhulu Industrial Holdings obtained new mining rights in the

course of 2015, from the national Department of Mineral Resources.

The company has the rights to mine near Port Shepstone and the

provincial government put the value of the investment at R187-million,

with the creation of 48 jobs.

The northern region has deposits of aluminium and calcitic marbles.

Some low-grade bauxite is found. Vein gold mining is undertaken

near the northern border with Mozambique. The Umzinto goldfield

has several sites, but mining has only ever been on a small scale. Sand

and aggregate are produced by Vryheid-based WH Lemmon-Warde

Holdings, Lafarge and Afrisam. Corobrik has several facilities in and

around Durban.


Chamber of Mines South Africa:

Council for Geoscience:

Geological Sciences, University of KZN:

Geological Society of South Africa:

National Department of Mineral Resources:

Southern African Institute of Mining and Metallurgy:




KwaZulu-Natal makes aluminium, steel, chemicals, vehicles and footwear.


Hulamin spent nearly a billion

rand on expanding capacity.

• Marine manufacturing is

set to grow.

• Ladysmith-based Canvas

and Tent were Exporters

of the Year in 2014/15.

• Samsung is building a

television factory.

The estimated export value of KwaZulu-Natal business in

2014 was R112.4-billion, according to the MEC of Economic

Development, Tourism and Environmental Affairs, Michael

Mabuyakhulu. The sector contributes 16.5% to the provincial

gross domestic product (GDP).

The strongest export sectors are base-metals (32% including aluminium),

mineral products such as ores, vehicles and chemical products.

Manufacturing contributes 21.5% of the gross regional product


An area of anticipated growth and a focus of policy interventions

is in the marine manufacturing sector. Sectors such as oil and gas,

ship-building and rig repair are being targeted.

In 2015 the Richards Bay Industrial Development Zone (RBIDZ)

welcomed SPS Manufacturing (Pty) Ltd, a pipe manufacturer which

will invest R300-million in uMhlathuze, in so doing creating 87 permanent


Investment agency Trade and Investment KwaZulu-Natal brokered

R1.7-billion in new investment in the province in 2014/15, much of it in

the manufacturing sector, and the Services SETA set aside R41-million to

encourage young entrepreneurs

to make things.

Samsung Electronics South

Africa is spending $20-million on

a television manufacturing plant

in the Dube TradePort.

Hulamin is a leader in the sophisticated

aluminium finishedproduct

sector. The company

makes rolled products at Edendale,

Pietermaritzburg and at Camps

Drift, while its Pietermaritzburg

facility for making extrusions is

one of three in the country. The

company's expenditure of R970-

million has expanded its rolledproducts


The KwaZulu-Natal Clothing

and Textile Cluster is upbeat

about the sector in the province

because of the support

of the national Department of

Trade and Industry’s Competitive

Improvement Programme (CTCIP).

The Textile and Clothing Unit

within the Industrial Development




Corporation (IDC) has been very

active in the province.

Canvas and Tent

Manufacturing (Pty) Ltd has

more than 400 employees in

Ladysmith and won the title of

Exporter of the Year in 2014/15.

There are 219 clothing companies

in the province (Coface).

Ninian & Lester is one of the

larger employers in the textile

sector, with 1 500 people making

clothing (including the

Jockey brand), textiles and polypropylene.

The footwear sector is showing

good recovery after taking a

battering from Chinese imports.

The purchase of 39% of Eddels

Shoes by management and

staff has paid off, with 385 staff

now employed in making 2 700

leather shoes on a daily basis.

Two international safety

footwear firms operate out of

Pinetown: Bata Industrial and

Beier. The latter company joined

forces with three other South

African safety footwear manufacturers

in 2014 to form the

BBF Safety Group, in the process

making them more competitive.

Carpet manufacturers

Belgotex Floorcoverings and

Ulster Carpets have facilities in

Pietermaritzburg and Durban


Turkish group Arçelik purchased

home appliance manufacturer

Defy in 2011 for R2.5-

billion. Defy employs about

2 600 people.

Companies like Böhler

Uddeholm in Pinetown produce

downstream products such as

tooling materials and welding


Sustainable manufacturing

Hulamin has been recycling its own scrap aluminium for the past 75

years. It has always been of great importance to Hulamin to ensure

that the community they are in is taken care of sustainably. The environment

has always been of great importance to the way Hulamin

runs its business

In the period between 2013-2014 aluminium demand peaked,

increasing their market share growth. Their revenue went from

R7 560 000 in 2013 to R8 039 000 in 2014. Hulamin took this as an

opportunity to expand, thereby launching a recycling operation that

would save 95% of energy used during primary aluminium production.

In 2015 the company secured a five-year R270m loan from Nedbank

for its new recycling plant. The company’s goal for this recycling plant

is to quintuple the recycled content of its aluminium to more than

25% by 2018.

The recycling facilities will not only be recycling Hulamin scrap

but also extending to cans, aluminium foil, windowpanes, automotive

parts and window frames.

The company being a primary aluminium producer would benefit

from the consistent recycled supply in the country


Aluminium Federation of South Africa:

Chemical and Allied Industries’ Association:

Manufacturing Circle: www.

National Department of Trade and Industry:




We are an independent, mid-stream aluminium semi-fabricator

and fabricator of aluminium products. Hulamin is committed

to a future with aluminium.

Hulamin is situated in South Africa,

where there are large quantities

of aluminium products, much of

which is exported at little added


Hulamin creates value for its

stakeholders through meeting

customers’ needs for high-value

aluminium semi-fabricated

products. In doing so, it brings

economic activity to the province

of KwaZulu-Natal, stimulating

business activities, creating

employment and contributing to

the upliftment of the region.

We remain committed to grow

aluminium usage in South Africa

through our role as both supplier

and customer, in addition to our role as a responsible

leader in sustainable development in southern Africa.

Each of our businesses shares a passion for aluminium,

which is a truly unique metal that offers a superior

range of benefits and endless application possibilities.

We have grown and expanded our operations

over the last 20 years as a result of significant

investments in order to ensure the future of our

company and to promote the supply and use

of aluminium. As South Africa underwent the

transition to a democracy and the world markets

opened up in the 1990s, we committed ourselves

to unprecedented transformation. This included a

R2.4-billion expansion project in 1996 that improved

manufacturing processes and enabled us to invest

heavily in production, facilities and equipment. The

ambitious expansion unleashed enormous potential

at the company and, by the year 2000, turnover

had doubled. Rolled products

today contribute the bulk of

the company’s turnover.

In 2006, we expanded our rolled

products capacity as a result of

a R940-million investment that

increased production capacity

and improved the company’s

ability to deliver higher value

products. This expansion

increased our rolled products

capacity by 25%, increasing

its competitiveness, especially

in the foil and plate product


The recent investment of

the recycling plant followed

a conversion of the local

beverage can market from steel to aluminium in

2013. The R300-million state-of-the art facility was

built to recycle used aluminium beverage cans. The

expansion sees us providing aluminium can body

stock for the manufacture of all-aluminium beverage

cans to the local market.

In 2015 we ensured our future as a leading player in

the aluminium industry when we became a strategic

partner with Bingelela Capital, a BEE entity in Isizinda

Aluminium to acquire and operate the Bayside

casthouse located in Richards Bay.

As we look back to our 76 years of contributing to both

community building and economic activity in South

Africa, we also continue to explore new opportunities

and partnerships to the benefit of all our stakeholders.

Think Future. Think Aluminium. Think Hulamin.





Bell Equipment and Toyota anchor a strong automotive sector.

Toyota, which has a large factory in Durban south, sold 22.4% of

the vehicles sold in South Africa in 2015, thus taking numberone

spot. The company is also responsible for about onequarter

of the vehicles exported by South Africa.

In the month of January 2016, Toyota sold 2 773 Hiluxes, having

been the country's best-selling vehicle in 2015. In November 2015 a

record was broken when 3 938 units were sold. The Corolla car, the

Hilux bakkie and the Fortuner SUV are manufactured at the company’s

large Prospecton plant south of Durban.

KwaZulu-Natal's other automotive giant is Bell Equipment. Between

the Toyota plant at Prospecton and the Richards Bay facility of heavyequipment

manufacturer Bell Equipment, upwards of 11 000 people

are employed: both companies are market leaders. The sector accounts

for 17.7% of the province's export basket.

Despite tough global conditions, Bell managed to turn a record

profit in 2015, largely due to cost-cutting and the depreciation of the

rand. Bell has a global footprint, with South African sales accounting

for about 40% of group revenue (43% in 2014; 41% in 2015).

The province also has a substantial and varied automotive-supply

sector. Trade and Investment KwaZulu-Natal (TIKZN) estimates that


The weakening rand has

helped exports.

• Bell Equipment recorded

a record after-tax profit

in 2015.

• The automotive sector

contributes 17% to

provincial exports.

the province's component automotive

manufacturers enjoy a

combined turnover approaching


Powerstar trucks are assembled

in Pietermaritzburg on a site

formerly used by Super Group.

China North Vehicle Corporation

(Norinco Motors) and BEIBEN




produce about 60 000 heavyduty

commercial duty vehicles

every year at their plant in Inner

Mongolia and the Powerstar

brand has already been shown

at the Johannesburg Motor Show.

Two other global truck

marques have assembly plants

in the province: Volvo in Durban,

and MAN Truck and Bus South

Africa in Pinetown. MAN’s assembly

plant makes front-engine bus

chassis. The company is a major

supplier of buses to the South

African market and includes

Volkswagen buses and trucks

among its products.

Keeping MAN and Toyota

supplied is the R300-million operation,

Duys Engineering Group. This diverse group of companies

includes in its brief the supply of truck bodies and truck components

and has production plants at New Germany (Pinetown) and Richards

Bay. Toyota Boshoku manufactures seats and does the interior trim

on contract for Toyota.

International manufacturer GUD Filters has a large presence in the

province. Indian-owned Apollo Tyres SA makes Dunlop products at two

large factories in the province. The Behr Group makes air-conditioning

and cooling systems in Durban. Ramsay Engineering supplies cross-car

beams for BMW and Ford.


Automotive Industry Export Council:

National Association of Automotive Component and Allied

Manufacturers (NAACAM):

National Association of Automobile Manufacturers of South

Africa (NAAMSA):




New dams and pipelines are under construction in KwaZulu-Natal.

South Africa is a water-scarce country and in early 2016 the

drought in most parts of the country had reached serious


This problem is made worse by the fact that a lot of water

is lost through leaky pipes and inefficient metering. According to Water

Wheel magazine (December 2014), 37% of water delivered to the nation's

municipalities is lost. This challenge presents an opportunity for

companies who could solve the problems, for example by providing

better pipes, connections and smart metering.

In September 2015 the city of Durban lost more than 40% of its water,

despite water restrictions being imposed in the northern parts of the city.

The Mercury reported that the losses amounted to R602.6-million per year.

A related problem concerns a shortage of engineers, with the national

Department of Water and Sanitation importing Cuban engineers to assist

in the short term. A local solution was put in place in September 2015

when the first group of young people started training to become Water

Agents, Plumbers and Artisans. The goal for the first phase is to train

15 000 young people.

Umgeni Water, the province’s biggest water utility, has launched the

Adopt-a-River Project, which aims to keep rivers clean, raise awareness

and create jobs. On the Ncandu River that runs through Newcastle, 49

people received training in various skills such as first aid, herbicide application

and alien plant identification. One person received a bursary

from the national department to study at the University of KwaZulu-Natal.

Purification, desalination, water-leakage management and wastewater

treatment are some of the issues facing South Africans, and experienced

international companies are showing an interest in the country. American

companies with a presence in South Africa include the Hach Corporation,

Harvard Corporation, Nalco and the Adel Wiggins Group.

In 2015 the Danish government signed an agreement to help the

South African government with water management and water efficiency.

Companies such as smart-meter specialists Kamstrup are already active

in the country.


The first phase of the Spring Grove Dam in the Mooi River area has

been completed on schedule and has increased water supplies in the

Umgeni River catchment area.


The Tugela Bulk Water

Scheme will supply water to

the North Coast.

• Phase One of the Spring

Grove Dam is complete.

• Smart metering could

reduce the huge water

losses being experienced

by municipalities.

• Umgeni Water has

launched the Adopt-a-

River Project.

Spring Grove takes to five

the number of dams in the

Mooi-Mgeni system (including

the Midmar, Albert Falls, Nagle

and Inanda dams), which serve

more than five-million people

in Durban, Pietermaritzburg and

their surrounding towns. When

Spring Grove is complete, the

total system yield will rise to

394-million m 3 /year.

A new dam is being built at

Smithfield and the wall of the

Hazelmere Dam is being raised to

increase capacity. Unfortunately,

levels in 2015 and 2016 dropped

to alarming levels in the latter

dam, but the larger dam will be

necessary when the rains come


Construction of the new

Waterloo reservoir near the

King Shaka International Airport

(and serving this northern area)

was completed in late 2011.



The master plan will see water

delivered to this reservoir

from the Northern Aqueduct

Augmentation Project.

The Western Aqueduct project

(valued at R864-million) and the

associated Northern Aqueduct

Augmentation Project will inject

water into the rapidly developing

area north of Durban.

The Tugela Bulk Water Scheme

(valued at R1.4-billion) will supply

water to KwaZulu-Natal's North

Coast. Water flows are expected

to begin in the middle of 2016 in

this nationally funded project.

The eThekwini Municipality

is spending R600-million on

water and sanitation in 317 informal


The provincial government

committed R872-million to water

infrastructure projects for the

2015/16 financial year. This money

was allocated from the Municipal

Infrastructure Grant.

Water boards

Talks have begun to rationalise

the province's water boards into

one body. The aim is to achieve

economies of scale and efficiency

and to make it easier to raise funds

for large projects.

Umgeni Water currently supplies

more than 400-million

cubic metres of potable water

to its six large municipal customers:

eThekwini Metropolitan

Municipality, iLembe District

Municipality, Sisonke District

Municipality, Umgungundlovu

District Municipality, Ugu District

Municipality and Msunduzi Local


Construction of the Spring Grove Dam.

The company has five dams, 10 waterworks, five water-treatment

plants and two wastewater works.

Large parts of the northern part of the province are served by

Mhlathuze Water, which has built inter-basin transfer schemes, watertreatment

plants and sewerage plants which it operates on behalf of

local municipalities. The utility has assets valued at more than R3-billion

and its area of supply covers 37 000 square kilometres.

The Bill & Melinda Gates Foundation has made a difference in the

lives of 200 households in the uThungulu District by making clean

water available. This project was facilitated by Trade and Investment


Another project in this district is the extension of the Sundumbili

water-treatment works. This plant treats water from the Tugela River.

Engineering and environmental consultancy Royal HaskoningDHV is

leading the R17-million project.

Nedbank is putting R9-million over five years into clearing alien

vegetation in the country's water-catchment areas, including in

KwaZulu-Natal. The Nedbank sponsorship of the WWF's Water Balance

Programme has seen water flowing more freely in the Umgeni catchment


The WWF Nedbank Green Trust is one of the major sponsors behind

the Dusi uMnengi Conservation Trust, which works for the environmental

health of the uMngeni and uMsunduzi Rivers. A Green Corridor

initiative is one of the projects. The Dusi Canoe Marathon is a major

income-generator, but if the river is clogged up and dirty then that

income becomes threatened.


Duzi uMngeni Conservation Trust:

Mhlathuze Water:

National Department of Water and Sanitation:

Umgeni Water:

Water Balance Programme:

Water Institute of Southern Africa:

Water Research Commission:



Renewable energy

Bio-mass is leading the way in KwaZulu-Natal.


Richards Bay is set to be a

renewable energy hub.

• St Lucia may get a wind


• Sugar cane is a good crop

for feedstock for bio fuel.

Massive wind farm projects are planned for St Lucia.

South Africa has embarked on a very successful campaign to

get private companies to provide power to the national grid

using renewable resources such as wind, the sun and water

power. KwaZulu-Natal has so far received only one of these

licences, and is determined to catch up.

Since 2011 dozens of projects, particularly solar and onshore wind

projects, have been approved, adding more than 5 000MW to the potential

of the national grid and bringing in investment worth more than


The only project approved in KwaZulu-Natal as part of the Renewable

Energy Independent Power Producer Programme (REIPPP) is a 16.5-megawatt

(MW) bio-mass project which is to be built on the North Coast of


The huge forestry, timber, paper and pulp industries of the province

carry with them the potential to provide feedstock for the renewable

energy sector.

Forestry waste, sugar cane and agricultural waste will provide the

feedstock for a R2-billion facility that will largely supply the tenants of

the Richards Bay Industrial Development Zone (RBIDZ) with power. The

company Byromate, which has wind and solar projects elsewhere in

South Africa, expects to start delivering power in 2018.

The provincial government wants to see the RBIDZ become a hub for

renewable energy, and this bio-mass project is expected to be just the

first of many in solar power, wind and other types of renewable energy.

KwaZulu-Natal's most prevalent crops, sugar cane and sugar beet,

are among the most efficient and cost-effective feedstock for the

creation of biofuel. A R1.8-billion

project is planned for the northern

area of Makhathini. The Industrial

Development Corporation (IDC) is

the major investor in this scheme

which is intended to produce

72-million litres of ethanol and 34

megawatts of electricity.

Sugar grower and producer

Tongaat-Hulett believes that the

national sugar industry could

generate between 700MW and


An entrepreneur in the

Midlands makes biodiesel from

used oil. Darryl Melrose's company,

Bio Diesel SA, produces 20 000

litres of diesel every month.

Although it is not part of the

REIPPP, one of the country's biggest

RE projects is in fact in KwaZulu-

Natal: the Ingula pumped-storage

scheme in the northern reaches

of the province will generate

1 332MW when the R16.6-billion

facility is fully operational. This is

a 'peak' power station that only

comes into operation demand

peaks: water is pumped to the upper

reservoirs before it is released

to create power as it falls to the



lower level. New transmission

power lines from Mpumalanga

are also being built, and the

national Department of Energy

is investing in an open-cycle gas

turbine plant.


Cogeneration (combining heat

and power) is gaining in popularity,

especially in the sugar-milling


Calcium carbide producer

SA Calcium Carbide opened

its R115-million plant in March

2013, with the help of the Green

Industries Strategic Business Unit

of the Industrial Development

Corporation. The plant will generate

8MW and reduce by 20%

SACC’s dependence on the national


Zest WEG Group is targeting

the cogeneration sector in the

province because of the company's

special skills in this area,

acquired when WEG bought Zest

in 2010. WEG has been very active

in Brazil in turning pulp, paper

and sugar into fuel.


The growing popularity of solar

water heaters has encouraged

Durban manufacturer Solar Beam

to spend R2.5-million on expanding

its premises.

A Solar Energy Institute is to

be established in the province,

a joint initiative between the

University of KwaZulu-Natal and

the Georgia Technology Institute

of the USA.



The Provincial Planning Commission is investigating wind channels and

sunlight intensity levels in KwaZulu-Natal, and 37 turbines are proposed

for a wind farm to be run by St Lucia Wind Farms Ltd near Hluhluwe.

The Premier's office calculates this will carry an investment value of

R150-million and has the potential for creating 100 jobs.


Biomass technology is at the centre of the conversion scheme of South

African Breweries at its Prospecton plant south of Durban. Methane-gas

emissions from a nearby effluent plant are piped to the plant where

they are converted to electricity.

The eThekwini Municipality is spending R140-million on a plant

that will convert methane gas from its major landfill sites. Lanele

Resources and Amatala Resources have plans to produce fuel from

municipal waste.

Sea power

A unique project is planned for the sea off the coast of Durban. Floridabased

Hydro Alternative Energy Inc (HAE) believes that its Oceanus (TM)

system will allow it to harness the power of the strong Agulhas current

that runs along the KwaZulu-Natal coast. Previous sea-power systems

have sought to use the power of tides. The R155-million project, which

must still pass the scrutiny of environmental studies, has the support

of Durban Investment Promotion and private companies.



KZN Energy:

National Department of Energy:

Southern African Bioenergy Association:

Southern African Solar Thermal and Electricity Association:

South African Wind Energy Association:

Sustainable Energy Africa:

Sustainable Energy Research Group:

Sustainable Energy Society of Southern Africa:



Banking and financial services

Merchant banking is very competitive in KwaZulu-Natal.

Together with real estate and general business, the financial

sector in KwaZulu-Natal accounts for 18% of gross domestic

product (GDP). With the renewable energy sector being

actively pursued in KwaZulu-Natal, the creation by Investec

and the European Investment Bank of a renewable-energy fund of

€100-million will create many options for investors.

The four major national retail banks (Absa, Standard Bank, First

National Bank and Nedbank) are well represented in KwaZulu-Natal,

while relative newcomer Capitec Bank has shown remarkable growth

with its low-cost offerings: a cheque account, a savings account and

an unsecured loan.

Capitec was established in 2001 and listed on the JSE in 2002. As

of August 2015, Capitec had 691 branches, a rapid increase over the

benchmark figure of 500 that was achieved in January 2012. With 133

branches in KwaZulu-Natal, and in the context of other banks closing

down some rural branches, this is a banking business that is clearly on

the move. Capitec customers can also draw cash in retail stores such

as Pick n Pay, Boxer and Shoprite.

In 2015 the bank had 6.7-million clients, up from 3.7-million just

three years earlier. Capitec has 11 000 employees.


€100-million is available to

renewable energy investors.

• Capitec now has 133

branches in KwaZulu-


• Old Mutual has announced

plans to separate its four


In the retail banking sector,

despite really tough economic

conditions in recent months

and years, South Africa's Big

Four (Standard Bank, Absa, First

National Bank and Nedbank)

increased headline earnings by

12.5% to R33.8-billion in the second

six months of 2015. Profits




across the Big Four totalled R73.8-

billion for the year, according to a

survey done by PWC (Major Banks


Some of the figures published

reflect the strain that consumers

are feeling: credit impairments

went up by 10.8% and nonperforming

loans also grew.

Competition is stiff in developing

new strategies to incorporate

the emerging second economy

and the largely rural 'unbanked'

communities. These new banking

means and methods are developing

the sector and giving it new

flexibility, diversity and range.

alBaraka Bank has its headquarters

at Kingsmead in Durban,

which is also the site of its corporate-banking

division. HBZ Bank,

a wholly owned subsidiary of

Habib Bank and AG Zurich, operates

an Islamic branch in Westville

and has branches in Durban and


In the sector catering to highnet-worth

individuals, Nedbank

has adopted a new strategy by

combining BoE Private Clients

(South African clients) and

Fairbairn Private Bank (international

clients). All of these clients

are now be served by Nedbank

Private Wealth.

Absa's British investor, Barclays,

has indicated it is aiming to sell its

stake in African operations and financial

services group Old Mutual

(54% stakeholder in Nedbank)

and has announced its plan to

create four stand-alone businesses

out of the Old Mutual Group.

This would allow the UK-based

wealth management business

and the New York-based asset

managers to be free of linkages

to the rand, while the South African businesses (Nedbank and Old

Mutual Emerging Markets) would be free to focus on their specialities.

Project funding

Merchant banking and investment banking are the most competitive

sectors within banking. In KwaZulu-Natal, banks have been vital

in getting really big infrastructure projects under way, a trend that is

set to continue for some time to come, with provincial and national

government committed to a comprehensive infrastructure upgrade.

The European Investment Bank has extended a €50m long-term

loan through Rand Merchant Bank to fund the massive water systems

upgrade being undertaken by the eThekwini Municipality. The investment

programme encompasses two new aqueducts and the replacement

of 1 600km of old asbestos water mains.

RMB was also involved in several Tongaat-Hulett and Richards Bay

Coal Terminal projects, two major players in the provincial economy.

Nedbank Capital supported Seacom’s R240-million undersea-cable

project, and has signed a three-year funding agreement with healthcare

group Netcare to the value of R1-billion.

Absa’s public-sector division holds the provincial government banking


The KZN Growth Fund is a project-finance facility supported

by the KwaZulu-Natal Provincial Government, Standard Bank, the

Development Bank of Southern Africa and the Infrastructure

Corporation. The fund is capitalised to the extent of R5-billion.

New customers, new technology

Despite the incredible strides that have been made in providing banking

services to the previously unbanked, there is still a long way to

go. MasterCard, for example, has pointed out that only 2% of retail

transactions on the continent of Africa are conducted electronically.

The consulting firm McKinsey puts the figure for Africa's population

not connected to formal banking at close to 80%: this presents an opportunity

for South African banks in Africa. South Africa has the highest

connection rate in Africa.

Finscope's 2014 survey of South African banking and financial surveys

shows that between 2004 and 2014 a remarkable eight-million people

were connected to the financial system in some way. Overall, the

'financially included' reached 31.4-million (up from 17.7-million in 2004).

In a category called 'formally served' which includes services other than

formal banks with branch networks, the percentage of South Africans so

served grew from 50% to 80%; in the 'banked' category (more traditional

but including new devices), the percentage grew from 46% to 75%.



With cellphone access in that time having grown from 42% to 90%,

one would expect that to have been the main reason for this growth,

but that is not the case. James Francis, writing for Brainstorm, points

out that of the nine-million South Africans who use mobile money,

only 3% fall in the LSM 1-4 category, ie poorer people. He writes that

'mobile money in South Africa has been catastrophic'. However, the

South African banking sector's excellent infrastructure (plus the efforts

of the Big Four and Capitec to reach out to new markets) has made up

for this failure.

Among recent innovations designed to reach the unbanked were

Teba Bank allowing customers to deposit at supermarkets, Pick n Pay

Go Banking (a division of Nedbank), 70% of Absa's new ATMs (400 in

one year) in poorer areas and Absa launched two mobile banks, FNB

also created mobile branches and most of Standard Bank's new sites

were planned for townships (Finscope).


Auditor-General South Africa:

Banking Association South Africa:

Financial Services Board:

Insurance South Africa:

KZN Growth Fund:

Post Bank:

South African Reserve Bank:

Absa’s partnership with

Thumbzup allows shops to accept

card payments with smartphones

and tablets. Introduced

in 2012, the device turns phones

into terminals. In 2012, Absa took

over Edcon’s card portfolio, massively

increasing the bank’s reach

(Edcon brands include Edgars,

CNA and Jet).

Absa’s Entry Level and Inclusive

Banking (Elib) branches have

proved popular, accounting for

an increasingly high percentage

of the bank’s loans, despite still

representing quite a small number

of actual branches.

In 2012, Nedbank launched

Approve-it, which allows customers

to accept or reject an

Internet transaction by cellphone.

FNB has a wide range of cellphone-banking

options and a

Facebook application whereby

cellphone vouchers can be posted

on the social-networking site.

The eWallet application converts

the voucher into cash or airtime.

Standard Bank’s communitybanking

initiative offers a lowcost

cellphone-banking service.

Retailers can act as agents for the

bank, even in very remote rural

areas. Shops such as Shoprite,

Pep and Spar are connected, as

are certain spazas.

Another area where banks are

growing new markets is in affordable

housing. In the context of a

large backlog, Standard Bank announced

that it was setting aside

R2-billion for the affordable segment.

The municipality of eThekwini

has 430 informal settlements,

accounting for more than 252 000




Seda Offerings

Seda branches provide offerings that assist businesses

in various phases of their life cycle.

Seda Business Talk –

Offerings focusing on clients who want information on starting a business

Assistance Provided:

Business Advice and Information

• Small Enterprise Training

Business Registration

Seda Business Start –

Provides tools and techniques for clients who are ready to start a business

and want assistance and direction.

Assistance Provided:

Business Planning

Business Counseling

• Facilitation of Access to Finance

Business Support

Seda Business Build –

Offerings focusing on clients who want skills to sustain and strengthen

their businesses.

Assistance Provided:

• Capacity Building Systems

• Mentorship

• Tender Advice / Procurement

• Export Readiness

• Franchising

Seda Business Grow –

Offerings focusing on clients who want to grow their businesses

and expand nationally and internationally.

Assistance provided:

Business Systems Development

• Cooperative Support

• Growth Strategies

For more information contact us at: 031 2779500 or visit our website:



Standard Bank,


Personal and Business Banking

Standard Bank KwaZulu-Natal has an extensive footprint throughout the province,

with particularly effective and innovative Personal and Business Banking divisions.

Behind the bank

Standard Bank’s Personal, Business and

Commercial Banking divisions offer banking and

other financial services to individual customers

and businesses ranging from small to large enterprises

in South Africa, in addition to 20 countries

in sub-Saharan Africa.

“We strive to maintain high standards of service

to our customers,” says Imraan Noorbhai, the

provincial head of Standard Bank's KwaZulu-

Natal operations.

Imraan Noorbhai is supported by an enthusiastic

leadership team comprising Ian Shibe (Head,

Retail Banking), Hameed Noormahomed (Head

Business Banking) and Nathan Govender (Head

Commercial Banking).

“Through these dedicated units with specialist

staff, we offer a range of solutions to our customers

from the most basic to the most sophisticated

of financial services. Our aim is to ensure that our

customer’s requirements are always met through

the most cost-effective and convenient methods

we can offer them,” adds Noorbhai.

Today, Standard Bank Group prides itself on being

a global bank with African roots. The largest

African bank by assets and earnings, it operates

in 20 countries on the African continent, including

South Africa, as well as in other selected

emerging markets. The Group’s aim is to grow

their presence selectively in high potential markets

in Africa and in other emerging markets,

either organically or, where appropriate, by





“Standard Bank KwaZulu-Natal’s ‘Every Child Must

Read’ campaign was launched in Durban in March

2016, and this represents a typical example of

the concrete way in which Standard Bank is contributing

to the societies which they serve. The

mobile library campaign will bring books to many

communities and children who need them,” says


Contact us

Imraan Noorbhai,

Provincial Head



Hameed Noormahomed,

Head Business Banking



“We uphold high standards of corporate governance

and are committed to advancing the principles

and practice of sustainable development.

Our success and growth over the long term is

built on making a difference in the communities

in which we operate. We are committed to moving

Africa forward,” says Noorbhai.

The Group’s social compact commits them to

contributing to the socioeconomic development

of countries in which they operate in a way that

is consistent with the nature and size of their respective

operations. This commitment translates

into providing financial services and products

responsibly, with due consideration for the needs

of the society, customers, staff, shareholders and

the environment, as well as with the thought of

future generations in mind.

Ian Shibe, Head Retail

Banking KwaZulu-Natal


Nathan Govender, Head

Commercial Banking





Celebrating 153 years of moving

South Africa forward

Having put down its roots in the Eastern Cape in

1862, Standard Bank is one of South Africa's oldest

companies. When it was established, the vision was

for a bank that understood its customers better, had

people with strong knowledge of local business

conditions and would do a better job of connecting

borrowers with lenders. This vision created the

platform for the kind of bank it would become and

the qualities on which its customers would come to

rely. Over its history, Standard Bank has grown from

a mere few staff members to over 48 000 today, at

the same time extending its roots deep into the

fabric of South African society. The Group has also

evolved and adapted along with their customers, in

the process growing a rich heritage while nurturing

and protecting their reputation.

Personal Banking

Whether you want to transact, save or borrow,

Standard Bank Personal Banking have the financial

solution for you, including innovative products

and services designed to evolve with the changing

needs of their clients.

Their transactional banking solutions have been developed

to meet the individual needs of clients, and

these come with a range of features and benefits

designed to add real value to your life.

Products available include transactional

accounts, savings, investment

and lending and mortgage

loans. Credit cards and vehicle

financing is also available, while

short- and long-term insurance

offerings include home-owners'

insurance, funeral cover, household

contents and even loan

protection. Life cover, disability

insurance and investment policies

are provided by qualified

intermediaries. Standard Bank

Personal Banking also offer

financial planning and fiduciary advice and are able

to provide personalised and qualified assistance

with personal matters such as will drafting, trust

and estate administration.

Private Banking

Standard Bank Private Banking matches the needs

of their clients by providing successful and highly

accomplished individuals with personalised financial

solutions. Their highly qualified Private Banking team

will deliver the personal attention you deserve with

a comprehensive offering that encompasses status

and priority. For such individuals a full suite of products

and services are available that enable them to

access their funds at their convenience, in addition

to a credit portfolio and a balanced wealth creation

and preservation portfolio. Products include wealth

management, investment and advisory services, tailored

banking as well as specialised solutions for high

net worth individuals, both onshore and offshore.


Sidney Reddy

Business Banking

As South Africa’s leading Business Bank, Standard Bank

understands what it means to do business in Africa

and beyond. To provide this reliable service they have

developed a specialist product expertise in addition

to strong local capacity and global distribution reach.




Their Business Banking solutions have been developed

to meet the business needs of each client and

they offer a range of products and services designed

to add real value to every business. These include

transactional accounts and lending facilities, structured

working capital finance, commercial property

finance, merchant transaction solutions, fleet finance,

insurance and financial planning and fiduciary advice.

Standard Bank has five Business Banking Suites in



Southway Suite

Candice Gerritsen

Gateway Suite

Karen Eccles

Highway Suite

Srinivasen Naicker

Ukhahlamba Suite

Lyle Collins

Nyakatho Suite

Mthuthuzeli Makoba

Commercial Banking

Standard Bank is aware of the importance of entrepreneurial

growth within South Africa, and to

support this growing economic

phenomenon they create and

deliver value to their entrepreneurial

clients by providing

them with the financial and

non-financial solutions they

need that offer support and

growth opportunities for their

clients’ businesses, whether they

are located within South Africa

or beyond our borders. Foreign

exchange falls within the ambit

of this section, as does liquidity

management, trade, investment

and payment solutions through a variety of

transactional products.

Standard Bank offers lending within the Commercial

Banking section ranging from working capital required

to borrowing to acquire commercial property

and finance fleets. Merchant services are also offered

to commercial enterprises, and a full suite of insurance

products – ranging from simple and complex product

offerings – is available from the Group’s specialist staff.


Head Commercial Banking

Nathan Govender,

Financial Consultancy

Louise Nel

Vehicle & Asset Finance

Shaun Wood

Sales & Service

Nicky Thompson


Sarah van der Merwe

Public Sector

Nelisiwe Mkhize






Generation 8 – creating human, simple and honest experiences.

The Standard Bank Group has international representation

in Angola, Botswana, Brazil, China (including

Hong Kong), Democratic Republic of Congo, Ghana,

Isle of Man, Ivory Coast, Japan, Jersey, Kenya, Lesotho,

Malawi, Mauritius, Mozambique, Namibia, Nigeria,

Singapore, South Africa, South Sudan, Swaziland,

Taiwan, Tanzania, Uganda, United Arab Emirates,

United Kingdom, United States of America, Zambia

and Zimbabwe.

Small and medium enterprises

Standard Bank is committed to being the bank that

partners with clients in order to help them to realise

their entrepreneurial dreams, whether you have just

started your own business, want to manage your

business more effectively or even want to take your

business to the next level.

Dedicated business bankers instore at individual

branches are supported by specialists whose mission

it is to ensure that you get the best banking

services available. These specialist bankers are

equipped to answer any questions you have and

will also be able to assist in setting up accounts and

arranging finance for all your small business needs.


Allan Ambrose

Standard Bank has six regions in KwaZulu-

Natal where qualified specialists are on

hand to advise SMME customers:

Moving forward

also means giving back.

Chatsworth/Port Shepstone/Pinetown


Jean Hattingh

Pietermaritzburg Region

Sibusiso Majola

Newcastle Region

Marlon Reddy

Kingsmead/Westville Region

Rajan Govender

Umhlanga/Phoenix Region

Garrett Johnson

Richards Bay Region

Rogers Blose

Moving Forward





In 2015 global economic growth remained moderate

at 3.1%, and the International Monetary

Fund anticipates that growth in emerging markets

and developing economies will decline for

the fifth consecutive year. A modest recovery

has continued in advanced economies, with

a gradual monetary tightening in the United

States as several other major advanced economy

central banks continue to ease monetary policy.

Market concerns regarding the outlook for the

Chinese economy have affected other economies

through commodity prices, diminishing

confidence and increasing volatility in financial

markets. Manufacturing activity and trade remained

weak globally, not only due to developments

in China, but also because of subdued

global demand and investment.

Sub-Saharan Africa’s economic growth is

estimated to have reduced sharply to 3.5% in

2015 from 5.0% in 2014 as lower commodity

prices have impacted on net exports, in the process

placing pressure on economic activity even

though lower oil prices have eased energy import

costs. While economic activity remains more


robust than in many other developing regions

of the world, the strong growth momentum

evident in the region in recent years has not been

maintained, particularly within oil-exporting


The 2015 economic growth forecasts for

South Africa were marked down progressively

during the year as the full impact of commodity

price deflation and weakening business and

consumer confidence limited demand. Although

there was notable stabilisation of electricity

supply in the second half of 2015, unfolding

drought conditions, higher interest rates and

policy uncertainty subdued investment and

cyclical consumption; economic growth is expected

to have been 1.3% in 2015, down from

1.5% in 2014. A sharply weaker exchange rate (in

response to investment portfolio outflows) and

a continued current account deficit accompanied

a broad acceleration in market volatility towards

the end of the year. This was exacerbated

by market concerns related to the unexpected

removal of South Africa’s Minister of Finance

in December.



Excellence and caring –

a successful combination

Standard Bank wins major awards and puts literacy on the front foot in KwaZulu-Natal.

The recent award of best "Professional Services'" to

Standard Bank by the Durban Chamber of Commerce

and Industry (DCCI) came on top of a hat-full of awards

which the banking group won in the Banker Africa

awards in early 2016.

For the children of six schools in areas where Standard

Bank KwaZulu-Natal has provided mobile libraries,

Standard Bank is a certified winner as a corporate citizen

which cares for the communities in which it operates.

The launch of the Standard Bank “Every Child Must

Read” campaign was held at the bank’s regional office

in the Kingsmead Office Park on 29 March 2016,

with the Deputy Minister of the Department of Basic

Education, Mr Enver Surty, in attendance.

The project provides mobile libraries to six deserving

schools located in the vicinity of the bank's major

branches in KwaZulu-Natal. These areas are Newcastle,

Pietermaritzburg, Richards Bay, Durban/Westville,

Phoenix/Umhlanga and Chatsworth/Pinetown.

The provincial head of Standard Bank KwaZulu-Natal,

Mr Imraan Noorbhai, spoke at the launch, where he

made the link between education and prosperity. “A

literate, educated society is a safer, healthier and more

prosperous society. So by promoting reading, writing,

and other academic subjects it will lead the way in promoting

prosperity through knowledge,” said Noorbhai.

“It is envisaged that the introduction of these mobile

libraries to the six previously disadvantaged schools

will go a long way towards improving the literacy rate

in our province.”

Deputy Minister Surty praised Standard Bank for this

initiative and urged all South Africans to come on board

with support.

Deputy Minister of the Department of Basic Education

Mr Enver Surty, Ahmed Motala Chief Executive

Officer of NAEF (New Africa Education Foundation)

and Imraan Noorbhai.

A mobile library from the Every Child Must Read project.




“We need to give books as gifts, we need to read to

our children and get them to read to us. This cannot be

done in schools alone we need to read in our homes

as well,” said Minister Surty.

Winners in KZN

At its annual awards ceremony, the Durban Chamber

of Commerce and Industry chose Standard Bank KZN

as the best business in the "Professional Services" sector.

This includes financial services and banking and

investment, but the category is a broad one, and the

bank was also competing against businesses from the

professional services, automotive, travel and transport,

skills and development sectors.

region's people, businesses and economies. They also

reflect the core philosophy of the magazine's publisher,

CPI Financial, of identifying and promoting excellence

and best practice in financial services.

"In such a competitive market such as Southern Africa,

and with the recent economic climate across several

countries in the region, their performance stands

out," says Robin Amiot, Chief Executive Officer: CPI


Mr Muhammad Seedat, the vice-president in charge

of finance at the DCCI, said that celebrating business

and its efforts in driving the economy was a highlight

of the organisation's 160th annual gala dinner. Seedat,

who headed the judging panel, said that innovation

and the ability to adapt to change while staying ahead

of competitors were the most important elements in

choosing the winners.

Winners in Africa

After more than 3 500 votes were cast across 29 categories

by the readers of the CPI Financial magazine

and registered users of the financial news website, Standard Bank came out as a

mulitiple winner in the Banker Africa Southern Africa

awards. All 29 award winners were chosen from more

than 120 nominations across all the categories by their

peers in the industry.

Standard Bank took the headline category of Best

Regional Bank for Southern Africa as well as the

prominent recognition of Best Retail Bank in the region,

while Standard Bank's Corporate and Investment

Banking (CIB) arm was voted Best Investment Bank for

the region.

The Banker Africa Southern Africa Awards, now in their

fourth year, are designed to reward excellence in financial

services, identifying the key players working to

help create a prosperous, diversified future for all of the

Imraan Noorbhai, with the Business Excellence

Awards 2016 trophy, which Standard Bank won

in the "Professional Services" category.



Development finance and

SMME support

Funds are available for entrepreneurs in KwaZulu-Natal.


mainstay of funding for small and medium enterprises

in KwaZulu-Natal is the provincial government's Ithala

Development Finance Corporation (Ithala). A total of 114 new

enterprises received R276-million to help them get started in

the 2014/15 financial year.

The fund could claim the creation of 880 jobs on various projects,

two of the biggest of which were the Ithala Trade Centre and the Mount

Edgecombe Light Industrial Park. The former is designed as a 'one-stopshop'

for all matters relating to the provincial Department of Economic

Development, Tourism and Environmental Affairs (under which Ithala

falls). The Light Industrial Park aims to integrate township businesses

with 'upmarket' enterprises, especially with regard to supply chains.

An amount of R61-million was set aside to create the infrastructure for

the park.

As a way of boosting township and rural communities, district warehousing

facilities are being built using municipal and Ithala properties

around the province. Small farmers and traders often struggle with

storage so this solution will go a long way to assisting them to buy in

bulk and, consequently, get some discounts on their purchases. The

Small Business Growth Enterprise (SBGE) will run a pilot project which

will also contain a bulk-buying component, thereby further assisting

small enterprises.

Another initiative aims to get small traders organised through the

setting of a provincial small traders' association.

Other provincial government initiatives promoting small business

include the creation of the KZN Fashion Council (to support designers),

the KwaZulu-Natal Furniture Initiative (aimed at 200 businesses)

and industrial parks that will provide hubs for automotive supply and

chemical enterprises.

An active national agency in supporting entrepreneurs is the Small

Enterprise Development Agency (Seda). Seda gives non-financial support

through training, assistance with filling in forms, marketing and

creating business plans.

In KwaZulu-Natal, Seda runs 12 incubators which either help new

businesses get started or assist with the rehabilitation of existing enterprises.

Three models are used: Technology Demonstration Centres

(demonstration and training); Technology Incubators (where the focus

is rehabilitation); and Hybrid Centres, which combine elements of the

other two models. The incubators in KwaZulu-Natal include ICT and


The KZN Growth Fund has

to date disbursed over halfa-billion


• Absa's SME fund finances

projects from R5 000 to


• Seda has 12 Incubators in


• Joint warehousing facilities

are being offered to

small traders.

construction (three centres each),

furniture and hi-tech (two each)

and chemicals, and essential oils.

Although Seda is not a financial

institution in itself, in 2013/14

it helped 1 379 small businesses




get work from government to the

value of R33.9-million. The agency

served more than 10 000 enterprises

in the same period, most

of which increased their turnover

and employment numbers. The

incubation programme worked

with 1 587 businesses and created

nearly 3 000 jobs.

Research by Absa shows that

SMMEs were supporting 60% of

the country’s employable population

in 2011, against a figure of just

18% in 1998. The 2012 Absa SME

Index noted that of the country's

700 000 businesses, only 270 000

employ more than five staff members.

The average number of people

employed is 11.

Larger projects

The KZN Growth Fund will end

its mandate in August 2016: this

project-finance debt fund of

R787.5-million was underwritten

by the Development Bank of

South Africa, Standard Bank and

the KZN Department of Economic

Development, Tourism and

Environmental Affairs.

In funding large private projects,

the expectation was (and

is) that smaller suppliers down

the value chain will also benefit.

Among the Growth Fund's most

recent projects to be funded are:

• SA Shipyards expansion,

R42.8-million (150 jobs)

• Dark Fibre Africa telecoms cabling

installation, R193-million

(4 201 jobs)

• Link Africa telecoms, R65-

million (500 jobs)

• Mpact plant expansion,

R200-million (1 760 jobs).

National government has created a new agency to spur the development

of SMMEs, the Small Enterprise Finance Agency (Sefa),

which falls under the Industrial Development Corporation, one of the

biggest and most significant agencies in economic development in

the country.

The IDC provides finance across a range of sectors from agriculture

to tourism. It has holdings in several companies with a presence in

KwaZulu-Natal: 42.6% in Hans Merensky (Pty) Ltd, a plantation and

timber mill operator; 100% in Prilla 2000, a cotton-milling operation;

and 85% in Foskor, which has a phosphoric acid plant in Richards Bay.

The IDC also funds local development agencies such as the Hibiscus

Coast Development Agency.

The IDC will spend R102-billion to 2016, of which R22.4-billion has

been set aside for 'green economy' initiatives and a total of R20.8-billion

for manufacturing support.

All of the major banks have SMME offerings. Absa Bank’s SME Fund

is driven by its Small Business Division and the Enterprise Development

unit. Absa's SME fund is available to fund projects from R5 000 to

R3-million, and it can be given to start-ups or existing businesses.

The target market is black-owned businesses which don't have access

to normal lending or banking channels. The Absa Development

Credit Fund, a partnership with the United States Development Credit

Authority, is another avenue for entrepreneurs.

Standard Bank’s Community Investment Fund (CIF) initiative

extends loans to informal businesses. The CIF has distributed more

than R7-million to more than 630 businesses through its six funds in

three provinces.

Nedbank has an enterprise-development product that supports

businesses with a turnover up to R35-million with at least 25%

black ownership.


Business Partners:

Development Bank of Southern Africa:

Industrial Development Corporation:

Ithala Development Finance Corporation:

KZN Growth Fund:

KwaZulu-Natal Department of Economic Development and


National Department of Trade and Industry:

National Empowerment Fund:

Small Enterprise Development Agency:

Small Enterprise Finance Agency:

South African Institute of Entrepreneurship:



Education and training

The education sector in KwaZulu-Natal needs to grow.

The desire to learn is strong in KwaZulu-Natal. For the 2016 academic

year the University of KwaZulu-Natal (UKZN) received

more than 84 000 applications for the 8 770 spaces available

in its first-year undergraduate programmes.

With 30% of South Africa's school pupils in its schools, the province's

results have a big bearing on how the nation fares. Recent results in

the matriculation examination (Grade 12) have caused consternation,

coming off a high of almost 80% success (in 2013) to just over 60% in

2015. The Premier of the province has set up a task team to come up

with solutions, most of which involve teacher training.

There are two universities in addition to two universities of technology

in KwaZulu-Natal, while the national distance university, the

University of South Africa (Unisa), has a presence in five locations.

UKZN has close to 40 000 students studying on five campuses

in two cities. Greater Durban hosts Howard College, Berea (environment,

engineering, law, humanities) and the Nelson Mandela School

of Medicine at Congella. The UKZN administration and the Graduate

School of Business are based at Westville (also science, engineering,

health), whereas the Edgewood, Pinetown, campus focusses

on education.

The Pietermaritzburg campus offers a broad academic programme

but its specialities are fine art, theology and agriculture. UKZN also

hosts the National Research Foundation.

The most popular first-year courses applied for in 2016 were Social

Work, Education and all programmes in Health Sciences (Medicine,

Nursing, Optometry, Pharmacy, Sport Science, Physiotherapy).

In 2014 KZN published the most 'output units' of any South African

university for the third year in a row. It has the second-most postdoctoral

students in the country and in 2015 awarded all five researchers

of its South African Research Chairs Initiative (SARChi) programme to

women researchers.

The Durban University of Technology (DUT) has six faculties operating

in seven campuses in Durban and in the Midlands. DUT is

well-known for its outstanding graphic-design school and offers one

of only two chiropractic programmes in South Africa.

Varsity Colleges has campuses in Durban North, Westville and



The University of KwaZulu-

Natal is top of the class in


• Training colleges have

been re-branded.

• JSE-listed private schools

are a growth sector.


National and provincial government

are investing heavily in

training. Various provincial government

departments awarded

about R316-million in support

and bursaries for more then

5 000 students across the province.

There is a National Student

Aid Financial Aid Scheme which

is under pressure following a

concentrated protest across

South Africa against high university

fees. Bursaries are also

available under the National

Skills Fund.

What for several years were

known as Further Education and

Training Colleges (FET) have now

been re-branded as Technical

and Vocational Education

and Training (TVET) Colleges.

KwaZulu-Natal has nine such

colleges with a total enrolment

of about 80 000 students.




Coastal KZN TVET College

gives students practical experience

through facilities such as the

Nongalo Industrial Park, where

school furniture is repaired and

burglar bars and computer tables

are made. The college has several

sites on the South Coast and caters

for 15 400 students.

Majuba TVET College has a

focus on engineering as the coal

and steel industries are prominent

in Newcastle. Some of their

engineering students have done

apprenticeships on Sibanye gold

mines in Gauteng. The Mnambithi

TVFET College is located in the

Battlefields Route tourism area

and offers National Diploma

courses in tourism, among other


The Premier's office in 2015

collaborated with the Municipal

Infrastructure Support Agency

and the KZN Academy to recruit

and place 86 young learners

from TVET colleges in eight municipalities

to enable them to gain

workplace experience in technical


A bigger programme, the R74-

million Public Sector Internship

Programme, saw 1 237 graduates

gain experience while the Work

Integrated Learning Programme

(of the national Department of

Higher Education) placed 255

TVET students in provincial departments

and private companies.

In addition, 680 apprentices

(including 200 in 35 private companies)

are learning on-site skills

as fitter machinists, tool-jig-anddie-makers,

welders, bricklayers,

spray painters, plumbers and

carpenters, in addition to many

other jobs.

A R22-million project of the provincial government will in 2016 offer

short technical courses to 100 apprentices and 850 unemployed young

people. The funding will come from MERSETA (the manufacturing,

engineering and related skills education training authority).


Although KwaZulu-Natal is home to some of South Africa’s oldest and

most expensive private schools, the backlog of its infrastructure at the

poorer public schools is still formidable. The provincial government is

spending heavily on providing classrooms, toilets and other facilities

in rural areas.

There are 1.9-million children who benefit from the national school

feeding programme in KwaZulu-Natal. A total of 4 747 schools are classified

as no-fee schools, accounting for about 80% of the province’s

public schools.

There are approximately 26 000 public schools in South Africa. There

were 44% more private schools in South Africa in 2010 than there were in

2001 (South African Institute of Race Relations). Some of the new private

schools are small and modest, but the sector is also attracting investors.

JSE-listed ADvTECH has two Crawford Colleges in the province.

Curro Holdings is also listed on the JSE and is rapidly growing its

portfolio of schools. This is partly due to acquisitions such as that of

Curro Embury College in Morningside. There are other Curro schools

at Hillcrest and Mount Richmore (North Coast).

A funding agreement with Old Mutual Investment Group SA

(OMIGSA) and the Public Investment Corporation (PIC) will see Curro

roll out 11 low-fee independent schools in the years to 2019. These will

be called Meridian Independent Schools.


Council of Higher Education:

Independent Schools Association of Southern Africa:

KwaZulu-Natal Department of Education:

National Department of Basic Education:

National Department of Higher Education and Training:

National Research Foundation:




Two international airlines have announced new routes connecting to Durban.

KwaZulu-Natal has a very varied tourism offering – mountains,

heritage, beaches, conventions, sports – and the tourists who

enjoy visiting the province are almost as varied.

In 2015, a new venture between the provincial department

of tourism, local tour operator Akilanga and a Polish charter company

called Rainbow Tours saw 2 500 Polish tourists visit KwaZulu-Natal.

Qatar Airways launched their third route to South Africa with

a Durban-Doha offering, close followed by the announcement of a

Turkish Airlines Durban-Istanbul flight. This is likely to further diversify and

increase the number of tourists visiting KwaZulu-Natal.

Arrivals at King Shaka International Airport between January and

September 2015 were at 1 717 721, compared to 1 648 285 in 2014.

National figures for 2013 put the total number of tourists visiting

South Africa at 9.6-million (out of 14.8-million visitors). Increases were

recorded from these regions: the UK, SA's biggest market (1%, a figure

which probably reflects a degree of saturation); Europe (7%); rest of Africa

(4%) including an increase of 15.4% among Nigerians; North America

(6.7%); Australasia (4%); Asia (34%) and Central and South America (37%).

The numbers for the last two regions clearly show that the focus

on China and Brazil that has been part of SA's country marketing is

paying off.

According to StatsSA, tourism's direct contribution to GDP accounted

for 3% of GDP in 2012, an amount of R93.3-billion. There were

617 287 direct jobs in that sector, 4.6% of employment in the country.

In KwaZulu-Natal, the combined contribution of retail and tourism

to GDP is 14%. Many thousands of visitors to KwaZulu-Natal arrive by

road, and the statistics for January-October 2015 show that 1.65-million

motorists passed through the Mooi River toll plaza, but a very

important arrival method for tourists in the high-end of the market is

by cruise liner. After many delays, tenders have been called for the construction

of a terminal that will be dedicated to receiving cruise liners.

The Port of Durban envisages a 32 000m² area that will cater for

two ships and at least 5 000 passengers. The number of cruise-ship

passengers attracted to Durban grew from 42 000 in 2004/05 to 157 000

in 2010/11. South Africa attracts 0.5% of the world’s cruise-ship market,

which comprises about 15.4-million passengers annually.

One of the tender competitors will be MSC Cruises, which itself

dealt with about 90 000 cruise passengers through Durban harbour

in 2014. In the summer months the MSC Sinfonia and MSC Opera sail

from Durban to Mozambique, in addition to other destinations in


Hotel occupancy rose to

63.8% in 2015.

• The Loeries Creative

Week will boost the regional

economy for the

next three years.

• Tenders have been invited

to build a cruise ship

terminal in Durban.

the Indian Ocean. It is expected

that Transnet will also bid for the

right to build the much-needed



Research by Tourism KwaZulu-

Natal (TKZN) shows that the

coastal province consistently has

the best hotel occupancies in the

country. Hotel occupancy in the

province rose to 63.8% in 2015

compared to 60.7% in 2014.

Tsogo Sun runs 14 hotels in

KwaZulu-Natal, five of which are

Garden Courts. Six hotels are located

in Durban with a further

four in nearby Umhlanga, where

one of the group’s most luxurious

hotels, the 89-room Beverly Hills,

is located.

A new 'mega-hotel' has been

created by Tsogo Sun, with the

amalgamation of the Southern

Sun North Beach and Southern

Sun Elangeni hotels. With




734 rooms, the Southern Sun

Elangeni & Maharani will boast

the most accommodation in the

province. It has nine restaurants

and bars.

Protea Hotel Hospitality Group

announced in 2011 that the

group had set up a fund to buy

distressed hotels. Protea already

has more hotel beds in South

Africa than any other group and

by 2012 had spent about R1.5-

billion on upgrades to hotels in

its portfolio.

Protea Hotels has 18 properties

in the province, with seven

in Durban including the Protea

Hotel Edward.

Hilton Durban opened a new

venue in October 2015, the 'Big

Easy Wine Bar and Grill', a collaboration

with world-renowned

golfer Ernie Els, and previously

best known off the golf course

for his wine range.

The upgrading of the Point

area between the beach and

the Port of Durban has resulted

in major investments. The

Docklands Hotel at the Durban

Waterfront is a four-star Signature

development that cost about

R100-million to develop. The

Quays on Timeball Square offers

luxury apartments and six penthouses

in a canal setting with

views of the Atlantic Ocean.

The iconic Royal Hotel in the

heart of Durban is one of eight

Three Cities Group hotels in the

province. The Golden Horse

Casino Hotel is a Three Cities

property, and the Group administers

the International Hotel

School in Westville that is also

home to the Christine Martin

School of Food and Wine.

IFA Hotels & Resorts runs several luxury properties including the

Zimbali Coastal Resort and Zimbali Lakes Resort. Signature Life Hotels

has 13 properties ranging from Tala Game Reserve in its lodge portfolio

to five Signature Hotels. Gooderson Leisure has a varied portfolio, including

the Tropicana and Beach hotels in Durban, lodges in Hluhluwe

and the Drakensberg Gardens Golf & Spa Resort.

Sibaya Casino and Entertainment Kingdom, a Sun International

property, is north of Durban between Umdloti and Umhlanga. The

casinos in Newcastle (Century City), Empangeni (Tusk Umfolozi Casino)

and Pietermaritzburg (Golden Horse Casino) are run by Century Casinos

Newcastle, Peermont Global and Akani Msunduzi Management respectively.

Durban’s Golden Mile is the site of the province’s biggest

casino complex: the Sun Coast Casino and Entertainment World

(Tsogo Sun) has 1 330 slot machines, 12 restaurants and eight cinemas.


KwaZulu-Natal has great beaches along the entire coastline, from

the popular South Coast, through the perfect surfing spots in

Durban to the wetlands of the north.

The iSimangaliso Wetland and the uKhahlamba Drakensberg

Park are World Heritage Sites. The province has six Ramsar wetlands

and more than 100 nature reserves controlled by the provincial

authority. The province is also famous for its luxurious private game

reserves and lodges that offer unique viewings of black rhino.

The rolling hills that Alan Paton made famous in Cry, the Beloved

Country contrast with the coastal plains, the sheer walls of basalt

that make up the Drakensberg in the east and the volcanic

Lebombo mountain range in the north.

The warm current allows for year-round swimming. Along the

coast the climate ranges from mild tropical in the south to fully

tropical in the north. It can get very humid in the north while the

interior regions are cooler. The high-lying interior parts get snow

in winter.

Zulu heritage is celebrated on King Shaka Day in September

with an impressive ceremony and draws many tourists. Important

sites include the eMakhosini Heritage Park, Ulundi and Nongoma,

where the current Zulu king resides.

The Freedom Route celebrates great characters who fought for

freedom from apartheid, including Chief Albert Luthuli, Mahatma

Gandhi, Dr John Dube and Alan Paton.

The Battlefields Route caters to thousands of local and foreign

enthusiasts and providing much-needed employment in the north

of the province.

Indian temples in Durban and on the North Coast provide superb

architecture to admire while there are several sites, particularly



around Pietermaritzburg, where Mahatma Gandhi’s stay in South

Africa can be traced.

Many tourism operators cooperate with one another, for example,

in the N3 Gateway Tourism Association, which is a transprovincial

initiative. With more than 2 500 associations, routes

and co-operatives participating, the Gateway programme includes

groups such as the Midlands Meander Association, the

Grasslands Tourism Association, Mooi River Tourism and the

uMngeni Footprint Route.

Events and conferences

When travel agents hold conferences in your city, you know you are

on the right track. The 2015 conference of the Association of Southern

African Travel Agents was held in May at the Southern Sun Elangeni

and the Maharani with about 200 delegates.

Another big win for Durban was the decision of the Loeries Creative

Week (the advertising industry's awards festival) to sign to visit Durban

for three years. More than 5 000 delegates are expected to attend the

awards ceremonies, exhibitions and seminars. A 2011 survey of the

economic impact of the awards estimated something in the region of

R100-million for accommodation, restaurants and transport.

Durban is the home of the Tourism Indaba, one of the industry's

most important annual tourism exhibitions and the continent's biggest

tourism marketing event. In 2015, a total of 20 African countries were

represented and a new app allowed buyers and sellers to plan their

programmes well in advance. As a result, there was a 69% increase

in meetings held over the previous year, rising to an amazing figure

of 29 058.

Durban's Inkosi Albert Luthuli International Convention Centre

Complex (ICC) regularly wins awards and, together with the Durban

Exhibition Centre and the Durban Arena, the ICC helps to position

Durban and KwaZulu-Natal as a leader in the Meetings, Incentives,

Conferences and Exhibitions

(Mice) sector.

The ICC has been World Travel

Awards' 'Africa’s Leading Meetings

and Conference Centre”'14 times

in the last 15 years and has been

rated amongst the World’s Top

15 convention centres by AIPC

(International Association of

Convention Centres). There are 3

600 hotel rooms within a 10-minute

walk of the ICC, while the airport

is 30 minutes away.

In the 2015 financial year, the

ICC generated R157-million, an

increase of R5.3-million and a

20% growth in number of events

hosted. Net profit increased by

32%. The ICC is a body within

the eThekwini Municipality, and

despite the difficult general economic

climate it made a significant

economic contribution to

the city and the province, adding

R4.6-billion to the national Gross

Domestic Product (GDP) – a 47%

increase – and R4.5-billion to the

province’s Gross Geographic

Product (GGP). It has also created

10 874 direct and indirect jobs.

Most of KwaZulu-Natal's hotels

and lodges have conference

facilities, ranging from bushveld

lodges catering for 20 people to

hotels such as the 440-bedroom

Southern Sun Elangeni on Durban

beachfront, which can host up to

600 delegates in 10 venues.

There's a buzz around

Durban’s conference, meetings

and events market as Tsogo Sun

hotels are making serious inroads

into becoming the preferred

choice among local organisers.

Recognising the functionality and

versatility benefits of these properties,

organisers are enticed by




the “one-stop solution” equipped

to meet their individual needs.

Tsogo Sun hotels offer excellent

facilities, good infrastructure and

comfortable accommodation at

competitive rates. The hotels are

a preferred choice as they offer

distinct advantages including

a wide range of well-equipped

venues, world-class infrastructure

and exclusively tailored services.

'Tsogo Sun hotels have an enviable

reputation of hosting corporate

and business events that

stretches back decades. From

high-profile gatherings to company

functions and group incentives,

our Durban hotels have the

right ingredients to make such

occasions a success,' said Mike

Jackson, Director of Operations,

Tsogo Sun Hotels, KZN.

He added that the wide

range of hotels and price points

from Garden Court to the flagship

Southern Sun Elangeni and

Maharani, to the luxury Beverly

Hills made it easy to see why

Tsogo Sun’s hotels are fast becoming

leading contenders in the

conference and incentive market.

Overlooking the city of Durban

is a very intimate venue, the

Audacia Manor, which is geared

to smaller gatherings. This African

Pride hotel has a small conference

room and a book-lined boardroom

with a mahogany table around

which 16 delegates can be seated.

Localities outside of Durban

offer a great variety of experiences:

the Royal Showgrounds in

Pietermaritzburg hosts up to 50

functions per month; the Cathedral

Peak Hotel has 94 hotel rooms to

support its conference venue in

a dramatic, mountainous setting;

Tala Private Game Reserve offers wedding guests or delegates the chance

to relax in 5 000 acres of natural beauty; the Imbizo Conference Centre

north of Durban can accommodate 1 500 conference-goers, while the

South Coast from Amanzimtoti to Port Edward venues cater to a wide

variety of tastes.

Sporting events

KwaZulu-Natal has developed a healthy reputation as a venue for

sporting events, although in some cases the events are so extreme

that non-sporting people sometimes wonder just how healthy they

are. Whatever the case may be, there is no doubt that sports races and

tournaments make for a healthier provincial economy.

Several KwaZulu-Natal sporting events have become internationally

famous and now play a crucial role in boosting local, regional

and national economies. The Durban July is the country's premier

horse-racing gala event. Some 55 000 spectators spend about R85-

million before and during the event. The Dusi Canoe Marathon brings

an estimated R30-million into the region’s economy region through

money spent on accommodation, refreshments and the like. By moving

the event to January, the organisers have successfully extended

the Christmas season for local tourism and hospitality operators. The

Comrades Marathon is another ultra-event that has a huge following

locally as well as internationally.

The Sharks rugby franchise has a fanatical following and soccer

matches regularly draw big crowds to the area just north of Durban's

CBD, one that is increasingly becoming a sporting mecca. With several

stadia located here, including the superb new Moses Mabhida Stadium,

this area is set to become the focus of future bids to host events such

as the Commonwealth Games.


Amafa/Heritage KwaZulu-Natal:

Ezemvelo KZN Wildlife:

Hotel Investment Conference Africa:

Inkosi Albert Luthuli ICC Complex:

KwaZulu-Natal Tourism Authority:

KZN Gambling Board:

KZN Literary Tourism:

N3 Gateway Tourism Association:



South African National Government

An overview of South Africa’s national government departments.


Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 323 8246



Deputy President

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 323 8246


Minister in the Presidency

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 300 5795


Ministry in the Presidency responsible

for Women (Minister of Women in the


Address: East Wing, Union Buildings, Pretoria 0001

Postal address: Private Bag X931, Pretoria 0001

Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473


Minister for Public Service & Administration

Address: 123 Poyntons Building, West Block, cnr Schubart and Church

streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111


Dept of Agriculture, Forestry and Fisheries

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street

and Soutpansberg Road, Arcadia, Pretoria

Postal address: Private Bag X250, Pretoria

Tel: +27 12 319 7319 | Fax: +27 12 319 6681


Department of Arts and Culture

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza

Bopape streets, Arcadia, Pretoria 0001

Postal address: Private Bag X899, Pretoria 0001

Tel: +27 12 441 3000

Fax: +27 12 440 4485


Department of Basic Education

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001

Postal address: Private Bag X9034, 8000

Tel: +27 12 357 3000

Fax: +27 12 323 5989


Department of Communications

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival

Street), Hatfield, Pretoria 0001

Postal address: Private Bag X745, Pretoria 0001

Tel: +27 12 473 0000 | Fax: +27 12 462 1646


Department of Cooperative Governance and

Traditional Affairs

Address: 87 Hamilton Street, Arcadia, Pretoria 0083

Postal address: Private Bag X802, Pretoria 0001

Tel: +27 12 334 0705 | Fax: +27 12 326 4478


Department of Correctional Services

Address: 123 Poyntons Building, West Block,

cnr Schubart and Church streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111


Department of Economic Development

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &

Esselen streets, Sunnyside, Pretoria 0001

Postal address: Private Bag X149, Pretoria 0001

Tel: +27 12 394 1006 | Fax: +27 12 394 0255





Department of Defence

and Military Veterans

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001

Postal address: Private Bag X427, Pretoria 0001

Tel: +27 12 355 6101 | F ax: +27 12 347 0118


Department of Energy

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001

Postal address: Private Bag X96, Pretoria 0001

Tel: +27 12 406 8000

Fax: +27 12 319 6681


Department of Environmental Affairs

Address: Environment House, 473 Steve Biko and Soutpansberg Road,

Arcadia, 0083

Postal address: Private Bag X447, Pretoria 0001

Tel: +27 12 310 3537 | Fax: +27 086 593 6526


Department of Finance

Address: 40 WF Nkomo Street,

Old Reserve Bank Building, 2nd Floor, Pretoria

Postal address: Private Bag X115, Pretoria 0001

Tel: +27 12 323 8911 | Fax: +27 12 323 3262


Department of Health

Address: 20th Floor, Civitas Building, cnr Struben and Andries streets,

Pretoria 0001

Postal address: Private Bag X399, Pretoria 0001

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165


Department of Higher Education

and Training

Address: 123 Francis Baard Street, Pretoria 0001

Postal address: Private Bag X893, Pretoria 0001

Tel: +27 12 312 5555 | Fax: +27 12 323 5618


Department of Home Affairs

Address: 909 Arcadia Street, Hatfield 0083

Postal address: Private Bag X114, Pretoria 0001

Tel: +27 12 432 6648 | Fax: +27 12 432 6675


Department of Human Settlements

Address: Govan Mbeki House, 240 Justice Mahomed,

Sunnyside, Pretoria 0001

Postal address: Private Bag X644, Pretoria 0001

Tel: +27 12 421 1310

Fax: +27 12 341 8513


Department of International Relations and


Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,

Pretoria 0001

Postal address: Private Bag X152, Pretoria 0001

Tel: +27 12 351 1000

Fax: +27 12 329 1000


Department of Justice and Correctional


Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard

Streets, Pretoria 0001

Postal address: Private Bag X276,

Pretoria 0001

Tel: +27 12 406 4669 | Fax: +27 12 406 4680


Department of Labour

Address: 215 Laboria House, cnr Francis Baard and

Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X499, Pretoria 0001

Tel: +27 12 392 9620 | Fax: +27 12 320 1942


Department of Mineral Resources

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007

Postal address: Private Bag X59, Pretoria 0001

Tel: +27 12 444 3000

Fax: +27 86 624 5509


Department of Police

Address: Wachthuis Building, 7th Floor, 231 Pretorius

Street, Pretoria 0001

Postal address: Private Bag X463, Pretoria 0001

Tel: +27 12 393 2800

Fax: +27 12 393 2812




Department of Public Enterprises

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001

Postal address: Private Bag X15, Hatfield 0028

Tel: +27 12 431 1000

Fax: +27 12 431 1039


Department of Public Service and


Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria

Postal address: Private Bag X884, Pretoria 0001

Tel: +27 12 336 1700

Fax: +27 12 336 1809


Department of Public Works

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street

Postal address: Private Bag X65, Pretoria 0001

Tel: +27 12 406 21978

Fax: +27 086 276 8757


Department of Rural Development and

Land Reform

Address: 184 Old Building, cnr Jeff Masemola

and Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X833, Pretoria 0001

Tel: +27 12 312 9300

Fax: +27 12 323 3306


Department of Science and Technology

Physical address: DST Building, Building No 53, CSIR South Gate

Entrance, Meiring Naude Road, Brummeria, Pretoria 0001

Postal address: Private Bag X727, Pretoria 0001

Tel: +27 12 843 6300

Fax: +27 12 349 1041/8


Department of Small Business Development

Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street,

Sunnyside, Pretoria 0001

Postal address: Private Bag X84,

Pretoria 0001

Tel: +27 12 394 1006

Fax: +27 12 394 1006


Department of Social Development

Physical address: HSRC Building, North Wing,

134 Pretorius Street, Pretoria 0001

Postal address: Private Bag X904, Pretoria 0001

Tel: +27 12 312 7479

Fax: +27 086 715 0829


Department of State Security

Physical address: Bogare Building, 2 Atterbury Road, Menlyn,

Pretoria 0001

Postal address: PO Box 1037, Menlyn 0077

Tel: +27 12 367 0700 | Fax: +27 12 367 0749


Department of Sport and Recreation South


Physical address: Regent Place, 66 cnr Madiba and

Florence Ribeiro Street, Pretoria 0001

Postal address: Private Bag X896, Pretoria 0001

Tel: +27 12 304 5000

Fax: +27 12 323 7196 / 086 644 9583


Department of Tourism

Physical address: 17 Trevena Street, Tourism House,

Sunnyside, Pretoria 0001

Postal address: Private Bag X424, Pretoria 0001

Tel: +27 12 444 6780

Fax: +27 12 444 7027


Department of Trade and Industry

Physical address: The dti,

77 Meintjie Street, Block A, Floor 3,

Sunnyside, Pretoria 0001

Postal address: Private Bag X274,

Pretoria 0001

Tel: +27 12 394 1568 | Fax: +27 12 394 0337


Department of Transport

Physical address: Forum Building, 159 Struben Street,

Room 4111, Pretoria 0001

Postal address: Private Bag X193, Pretoria 0001

Tel: +27 12 309 3131 | Fax: +27 12 328 3194





Telecommunications and Postal Services

Physical address: Iparioli Office Park, 399 Jan Shoba Street,

Hatfield, Pretoria 0001

Postal address: Private Bag X860, Pretoria 0001

Tel: +27 12 427 8000 Fax: +27 12 427 8016


Department of Water and Sanitation

Physical address: Sedibang Building, 185 Frances Baard Street,

Pretoria 0001

Postal address: Private Bag X313, Pretoria 0001

Tel: +27 12 336 8733 Fax: +27 12 336 8850


National coat of arms

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which

are described as the circle of foundation and the circle of ascendance.

Circle of foundation

Shield – The two Khoisan figures on the shield are taken from a

Bushman rock painting known as the Linton stone, and represent the

common humanity and heritage of South Africans. Depicted in an attitude

of greeting, the figures symbolise unity. Spear and knobkierie

– Together, these objects symbolise defence and authority, but the flat

angle at which they lie symbolises peace.

Wheat – The ears of wheat, as emblems of fertility, represent germination,

growth and the development of potential, as well as nourishment

and agriculture. Elephant tusks – Elephants symbolise wisdom,

strength, power, authority, moderation and eternity, and the use

of tusks is a tribute to the world’s largest land mammal, Loxodonta

Africana, which is found in South Africa. Motto – Taken from the language

of the now extinct /Xam Bushmen, the motto translated means

‘people who are different come together’ or ‘diverse people unite’.

Circle of ascendance

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the

secretary bird represents growth and speed, and is a symbol of divine majesty and protection.

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for

a country characterised by sunshine and warmth.



KwaZulu-Natal Provincial


A guide to KwaZulu-Natal's provincial government departments. All addresses are located

in Pietermaritzburg (code 3201) unless stated otherwise. Visit

Office of the Premier

Premier: Dr ZL Mkhize

5th Floor, Telkom Building, 300 Langalibalele Street

Tel: +27 33 341 3300 | Fax: +27 33 341 3442


Agriculture and Rural Development

MEC: Mr Cyril Xaba

Cedara College, Cedara Road

Tel: +27 33 343 8240 | Fax: +27 33 343 8255


Arts and Culture

MEC: Ntombikayise Sibhidla-Saphetla

222 Jabu Ndlovu Street

Tel: +27 33 264 3400 | Fax: +27 33 394 2237


Cooperative Governance

and Traditional Affairs

MEC: Nomsa Dube-Ncube

330 Langalibele Street

Tel: +27 33 264 2500 | Fax: +27 33 264 6672


Economic Development, Tourism

and Land Affairs

MEC: Mike Mabuyakhulu

270 Jabu Ndlovu Street

Tel: +27 33 264 2500

Fax: +27 331 310 5416



MEC: NP Nkonyeni

Anton Lembede Building, 247 Burger Street

Tel: +27 33 392 1004

Fax: +27 33 392 1203



MEC: Dr Sibongiseni Maxwell Dhlomo

1st Floor, 330 Langalibalele Street

Tel: +27 33 395 2111


Human Settlements and Public Works

MEC: Ravi Pillay

Tolaram House, 2 Aliwal Street, Durban 4000

Tel: +27 31 336 5300

Fax: +27 31 336 5114


Social Development

MEC: Weziwe Gcotyelwa Thusi

208 Hoosen Haffejee Street

Tel: +27 33 341 9600

Fax: +27 33 341 9616





Transport, Community, Safety

and Liaison

MEC: Thembinkosi Willies Mchunu

179 Jabu Ndlovu

Tel: +27 33 341 9300 | Fax: +27 33 342 6345


KwaZulu-Natal Legislature

Speaker: Hon L Johnson

239 Langalibalele Street

Tel: +27 33 355 7600 | Fax: +27 33 355 7011 / 7099


Provincial Treasury

MEC for Finance: Belinda Francis Scott

Treasury House, 145 Chief Albert Luthuli Street,

Tel: +27 33 846 6800

Fax: +27 33 846 6801


Provincial Planning Commission

Chairperson: Prof Prof Bonke Dumisa

Moses Mabhida Building, 300 Langalibalele Street

Tel: +27 31 341 4765


KwaZulu-Natal Local Government

A guide to KwaZulu-Natal's local government.

eThekwini Metropolitan Municipality

263 Dr Pixley ka Seme Street, Durban 4001

Tel: +27 31 311 1111 | Fax: +27 31 311 2170


Amajuba District Municipality

Unit B9356, Ithala Building, Section 1, Main Street,

Madadeni Township, Newcastle 2940

Tel: +27 34 329 7200 | Fax: +27 34 314 3785


Dannhauser Municipality

Tel: +27 34 621 2666 | Fax: +27 34 621 3114

eMadlageni (Utrecht) Municipality

Tel: +27 34 331 3041 | Fax: +27 34 331 4312

Newcastle Municipality

Tel: +27 34 328 7600 | Fax: +27 34 312 1570

iLembe District Municipality

59/61 Mahatma Gandhi St, KwaDukuza 4450

Tel: +27 32 437 9300 | Fax: +27 32 437 9587


KwaDukuza Municipality

Tel: +27 32 437 5000

Fax: +27 32 437 5098

Mandeni (eNdondakusuka) Municipality

Tel: +27 32 456 8200

Fax: +27 32 456 2504

Maphumulo Municipality

Tel: +27 32 481 4500

Fax: +27 32 481 2053

Ndwedwe Municipality

Tel: +27 32 532 5000

Fax: +27 32 532 5031/2



Harry Gwala District Municipality

40 Main Street, Ixopo 3276

Tel: +27 39 834 8700 | Fax: +27 39 834 1701


Greater Kokstad Municipality

Tel: +27 39 797 6600 | Fax: +27 39 727 5501

Kwa Sani Municipality

Tel: +27 33 702 1060 | Fax: +27 33 702 1148

uBuhlebezwe Municipality

Tel: +27 39 834 7700 | Fax: +27 39 834 1168

uMzimkhulu Municipality

Tel: +27 39 259 5000 | Fax: +27 39 259 0223

Ugu District Municipality

28 Connor Street, Port Shepstone 4240

Tel: +27 39 688 5700 | Fax: +27 39 682 4820


Hibiscus Coast Muncipality

Tel: +27 39 688 2000 | Fax: +27 39 682 0327

Umdoni Municipality

Tel: +27 39 978 4313 | Fax: +27 39 976 2020

uMuziwabantu Muncipality

Tel: +27 39 433 1205 | Fax: +27 39 433 1208

Umzumbe Municipality

Tel: +27 39 972 0005 | Fax: +27 39 972 0099

Vulamehlo Municipality

Tel: +27 39 974 0553 | Fax: +27 39 974 0432

uMgungundlovu District Municipality

242 Longmarket Street, Pietermaritzburg 3201

Tel: +27 33 897 6700 | Fax: +27 33 342 5502


Impendle Muncipality

Tel: +27 33 996 6000 | Fax: +27 33 996 0852

Mkhambathini Municipality

Tel: +27 31 785 9300 | Fax: +27 31 785 2121

Mpofana Municipality

Tel: +27 33 263 1221 | Fax: +27 33 263 1127

Msunduzi Municipality

Tel: +27 33 392 3000 | Fax: +27 33 345 2397

Richmond Municipality

Tel: +27 33 212 2155 | Fax: +27 33 212 2102

uMngeni Muncipality

Tel: +27 33 239 9200 | Fax: +27 33 330 4183

uMshwathi Municipality

Tel: +27 33 815 2249 | Fax: +27 33 502 0286

uMkhanyakude District Municipality

Stand 13433, Kingfisher Road, Mkuze 3965

Tel: +27 35 573 8600 | Fax: +27 35 573 1094

Hlabisa Municipality

Tel: +27 35 838 8500 | Fax: +27 35 838 1015

Jozini Municipality

Tel: +27 35 572 1292 | Fax: +27 35 572 1266

Mtubatuba Municipality

Tel: +27 35 550 0069 | Fax: +27 35 550 0060

The Big Five False Bay Municipality

Tel: +27 35 562 0040 | Fax: +27 35 562 0988

uMhlabuyalingana Muncipality

Tel: +27 35 592 0680 | Fax: +27 35 592 0672

uMzinyathi District Municipality

Princess Magogo Bld, 39 Victoria St, Dundee 3000

Tel: +27 34 219 1500

Fax: +27 34 219 1940


Endumeni Municipality

Tel: +27 34 212 2121 | Fax: +27 34 212 3856




Nquthu Municipality

Tel: +27 34 271 6100 | Fax: +27 34 271 6111

Msinga Municipality

Tel: +27 33 493 0761 | Fax: +27 33 493 0766

uMvoti Municipality

Tel: +27 33 413 9100 | Fax: +27 33 417 1393

uThukela District Municipality

Physical address: 33 Forbes Street, Ladysmith 3370

Tel: +27 36 638 5100 / 2400

Fax: +27 36 637 5608 / 635 5501


Emnambithi/Ladysmith Municipality

Tel: +27 36 637 2231 | Fax: +27 36 631 1400

Imbabazane Municipality

Tel: +27 36 353 0681 | Fax: +27 36 353 6661

Indaka Municipality

Tel: +27 34 261 1000 | Fax: +27 34 261 2035

Okhahlamba Municipality

Tel: +27 36 448 8000 | Fax: +27 36 448 1986

Umtshezi Municipality

Tel: +27 36 342 7800 | Fax: +27 36 352 5829

uMhlathuze Municipality

Tel: +27 35 907 5100 | Fax: +27 35 907 5444

uMlalazi Muncipality

Tel: +27 35 473 3300 | Fax: +27 35 474 4733

Zululand District Municipality

B400 Gagane Street, Ulundi 3838

Tel: +27 35 874 5500 | Fax: +27 35 874 5589


Abaqulusi Municipality

Tel: +27 34 982 2133 | Fax: +27 34 980 9637

eDumbe Municipality

Tel: +27 34 995 1650 | Fax: +27 34 995 1192

Nongoma Municipality

Tel: +27 35 831 7500 | Fax: +27 35 831 3152

Ulundi Municipality

Tel: +27 35 874 5100 | Fax: +27 35 870 1164

uPhongola Municipality

Tel: +27 34 413 1223 | Fax: +27 34 413 1706





uThungulu District Municipality





Uthungulu House, Kruger Rand Rd, Richards Bay


Tel: +27 35 799 2500

Fax: +27 35 789 1641


uMfolozi Municipality

Tel: +27 35 580 1421 | Fax: +27 35 580 1141

Mthonjaneni Municipality

Tel: +27 35 450 2082 | Fax: +27 35 450 2056

Nkandla Municipality

Tel: +27 35 833 2000 | Fax: +27 35 833 0920






The Big

Free State
























uThungulu uMhlathuze













iLembe Mandeni


















Eastern Cape




Ugu Umdoni



Hibiscus Coast



Metropolitan/District Municipality Boundary

Local Municipality Boundary

District Municipality


Local Municipality




Msunduzi Municipality:

City of Pietermaritzburg

The Msunduzi Municipality incorporates Pietermaritzburg,

the capital city of KwaZulu-Natal.

Geography and location

Pietermaritzburg is the capital city of the province

of KwaZulu-Natal, and situated strategically on the

N3 highway, 80km inland from Durban – the biggest

port in Africa. The N3 corridor is the busiest development

corridor in South Africa, linking Durban

through Pietermaritzburg to Johannesburg and the

rest of Africa. The Municipality is also the economic

hub for the central part of the Province.

Main industries/business sectors

As well as being the seat of the Provincial Parliament,

home to all government departments and the

Provincial High Court, Msunduzi also has a diverse

economy with a robust manufacturing sector including

aluminium products, automotive components,

leatherware and shoes, furniture, timber, as

well as one of the largest fresh produce markets in

the country and a thriving agricultural sector. It is

the main commercial hub for the KwaZulu-Natal


Main resources/


Enjoying a warm, subtropical climate.

Pietermaritzburg is a green and attractive

city with numerous parks, pleasant residential

suburbs and is within easy reach of both

beaches and the Drakensberg mountains.

It is renowned for its excellent public and

private schools and has campuses for two

universities (the University of KwaZulu-Natal

and the Durban University of Technology),

ensuring the availability of a highly skilled workforce.

It has excellent road and rail networks, and

a recently expanded airport with five flights daily

to Johannesburg. Having numerous restaurants,

museums, shopping centres and social amenities,

it also hosts major events such as the Comrades

Marathon, Dusi Canoe Marathon, Edendale and

Mandela Marathons, the Midmar Mile swim, the

Royal Agricultural Show, and it is also known as the

Bike City of Africa hosting international BMX and

mountain-biking championships.

Key development objectives

and strategies

The Municipality aims to promote investment that

will take advantage of its strategic location on the

N3 development corridor and close to the proposed

freight dry port halfway between Durban

and Pietermaritzburg in Cato Ridge. Its key sector

plans are around aluminium beneficiation, the ex-




Albert Falls Amble and Boston-Bulwer Beat, where

recreational activities, arts and craft outlets and

fine dining restaurants abound. It has a beautiful

National Botanical Garden, parks, and numerous

entertainment and sporting events throughout the

year, including Cars in the Park and Art in the Park,

along with the nearby Hilton Arts Festival. With

its Victorian architecture, township tours and rich

heritage of South African Indian and Zulu culture it

exemplifies a warm, friendly, diverse yet integrated

South African city.

pansion of Pietermaritzburg Airport (and an exciting

airport technology hub which will drive innovation),

the rejuvenation of Imbali and Edendale town

centres, and a new leather hub in Plessislaer which

is being driven by the KwaZulu-Natal Provincial

Department of Economic Development. Massive

new commercial, residential and light industrial

centres are being planned alongside the N3 around

Ashburton to the east. Further commercial developments

alongside the N3 are planned around

the new Brookside Mall and polocrosse fields in

the central area.

An Integrated Rapid Passenger Transport Network is

at an advanced planning and early implementation

stage which, in addition to the Pietermaritzburg

Urban Renewal Programme of beautification, will

revitalise the city centre and connect economic

zones. A new municipal office has been established

to fast-track the sale of industrial and commercial

land, together with the re-establishment of the

Investment Facilitation Committee, which will provide

a “one-stop-shop” for investors and developers.


Msunduzi has something for everyone. For those

interested in our complex history, major tourist

attractions include several museums, the Tatham

Art Gallery and historical buildings, including links

with former icons President Nelson Mandela and

Mahatma Gandhi. It is a hub for several tourist routes

including the Freedom Route, Midlands Meander,

Key facts and figures

District municipality (for local municipalities):

Umgungundlovu District Municipality

Population: 670 000

Area covered: 650km 2

Key infrastructure

Main roads: Excellent national, provincial and local

road network

Railways: On the main line between Durban and


Airports: Pietermaritzburg Airport, with five daily

flights between the city and OR Tambo Airport,


Ports / harbours: 45 minutes drive from the Port

of Durban

Contact details

Key personnel

Mayor: Councillor Chris Ndlela

Municipal Manager: Mr Mxolisi Nkosi

Key contact people

Mr Sipho Zimu – Process Manager: Investment

Attraction, Retention and Expansion

Dr Ray Ngcobo – Deputy Municipal Manager:

Development Services

Tel: +27 33 392 2465 | Fax: +27 33 392 2726



Physical address: Professor Nyembezi Building, 341

Church Street, Pietermaritzburg 3200

Postal address: PO Box 85, Pietermaritzburg 3200




Durban Chamber of Commerce and Industry .................................................................................................................52

Durban Investment Promotion (DIP) ...................................................................................................................................... 1

Emnambithi Ladysmith Municipality .................................................................................................................................... 7

Hulamin ..............................................................................................................................................................................................82

Industrial Development Corporation (IDC) ......................................................................................................................40

KZN Growth Fund .......................................................................................................................................................................... 3

Masisizane Fund ..............................................................................................................................................................................48

Mondi Group South Africa ................................................................................................................................................. 66-68

Msunduzi Municipality ..............................................................................................................................................................118

Nedbank .......................................................................................................................................................................................43-47

Port of Durban .......................................................................................................................................................................... 28-33

Port of Richards Bay ................................................................................................................................................................34-39

Richards Bay Minerals ...................................................................................................................................................................76

Standard Bank ...............................................................................................................................................................94-101, IBC

Trade & Investment KwaZulu-Natal (TIKZN) .................................................................................................... 16-27, OBC

Transnet National Ports Authority (TNPA) ...................................................................................................................28-39

Tsogo Sun ............................................................................................................................................................................................ 5



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*Terms and conditions apply. Authorised financial services and registered credit provider (NCRCP15). The Standard Bank

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