KwaZulu-Natal Business 2017-18 edition
KwaZulu-Natal Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2008, established itself as the premier business and investment guide to the KwaZulu-Natal Province. The 2017/18 edition includes special features on the Richards Bay area and its increasingly important Industrial Development Zone, the investment appeal of Durban and the growing maritime economy. Up-to-date overviews on the province’s economic sectors provide unique insights. Global Africa Network Media (www.gan.co.za), the publisher of KwaZulu-Natal Business, specialises in business-to-business print and electronic publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.
KwaZulu-Natal Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2008, established itself as the premier business and investment guide to the KwaZulu-Natal Province.
The 2017/18 edition includes special features on the Richards Bay area and its increasingly important Industrial Development Zone, the investment appeal of Durban and the growing maritime economy. Up-to-date overviews on the province’s economic sectors provide unique insights.
Global Africa Network Media (www.gan.co.za), the publisher of KwaZulu-Natal Business, specialises in business-to-business print and electronic publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.
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KWAZULU-NATAL
BUSINESS
2017/18 EDITION
THE GUIDE TO BUSINESS AND INVESTMENT
IN KWAZULU-NATAL PROVINCE
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Welcome
to Durban!
A lifestyle of business and pleasure together.
Facilitating sustainable investment in Durban
for the benefit of all
Invest Durban (previously DIPA) is an
entity of the eThekwini Municipality,
recommended by the Durban City Council
and organised private business as the
most appropriate vehicle to promote and
facilitate new investment into the Durban
metropolitan area.
Invest Durban’s primary objective is to
accelerate sustainable investment in
Durban for the benefit of all through the:
• Proactive investment promotion
and marketing of Durban Metro as a
premium investment destination
• Proactive communication and
marketing of the City’s large investment
projects and core strategies
• Identification and development of new
investment opportunities, especially
for previously disadvantaged groups
• Attraction, support and facilitation
for prospective foreign investors
in Durban
• Improvement in the investment and
economic development environment,
in partnership with National, Provincial,
City and Business Authorities.
Invest Durban offers FREE:
• Investment Information and
Facilitation Services
• Immigration, Import and Legal Services
• Business Establishment and Incentives
• Investor Administration Services
Doing business in Durban
Durban has been developed around a
natural ocean port, major industrial base
and scenic tourism assets which play key
roles in the city, plus across Africa.
Strategic location
The port of Durban is modern and wellequipped.
It offers investors a range of
competitive and strategic advantages. The
city has emerged as the de facto coastal
trade ‘gateway’ to Southern Africa. It boasts
the largest port in Africa, as regards value of
cargo, and is South Africa’s premier general
cargo and container port. It is positioned
to access international shipping links to the
Americas, Europe, the Persian Gulf, South
East Asia, the Pacific Rim and Australia/New
Zealand and perfectly located for the transshipment
of cargoes between Eastern,
Middle-Eastern and Western economies.
Infrastructure and business
Durban offers established and advanced
road, rail, sea, air and ICT network
infrastructure. This underpins the second
largest industrial base in SA.
Quality logistics systems include:
• Port operation facilities
• Rail network – cargo and passenger
• International airport with air cargo
facilities
• Extensive road network with national and
regional linkages
• Oil/petroleum pipeline to Gauteng and
Free State Provinces
• Gas pipeline emanating from Sasol, in
Mpumalanga province
• Metro-wide fibre-optic systems.
Durban provides a number of new
opportunity areas for investors, both large
and small.
Investment opportunities may be
categorised into the following fields:
• Agri-processing
• Auto and allied manufacturing
• ICT, BPO and shared service centres
• Medical devices, health services and
pharmaceutical manufacturing
• Logistics and maritime
All of the above driven by world-class
innovation and holistic sustainability
Invest Durban, eThekwini Municipality
11th Floor, 41 Margaret Mncadi Avenue (old Vic. Embankment),
Durban, 4001 South Africa
Tel: +27 31 311 4227 | Email: invest@durban.gov.za
Website: www.durban.gov.za
#DurbanMustRise
The Durban Chamber of Commerce and Industry (DCCI) has mushroomed, from its
small beginnings in 1856 to a substantial association, respected by its sister
chambers throughout the country. Currently the oldest and largest metropolitan
chamber in Africa, we add value to our chamber members through our robust
interactions and partnerships with both the private and public sector.
These initiatives are in addition to the many great services offered, such as the
business information we distribute to our members and the entire Durban business
community, as well as the system of standing committees, also known as forums,
that meet regularly to consider relevant issues within the sectors that the various
committees represent.
DCCI Vision:
To be recognised as a world-class business chamber and a united voice of business
in the eThekwini Municipal area and beyond.
DCCI Mission:
To contribute towards creating a conducive economic and business environment
in eThekwini Municipal area and beyond, as well as providing services specifically
relevant to small and large businesses operating in the region.
Services offered by the Durban Chamber of Commerce and Industry
1. Enterprise Development Beneficiary Status
2. Fully equipped Conference Centre
3. CIPC services
4. Durban Chamber Procurement Portal
5. Certificates of Origin
6. ATA Carnet
7. Carnet de Commerce
8. Credit Reference Checks
9. First line HR/IR advice and support
10. Seminars and Workshops
11. Policy and Advocacy Department providing reliable and relevant policy
perspective
12. Employee Health, Wellness, Safety Advice and Support
CONTENTS
CONTENTS
KwaZulu-Natal Business 2017/18 Edition.
Introduction
Foreword10
KwaZulu-Natal’s unique guide to business and investment.
Special features
Regional overview 12
KwaZulu-Natal is wooing investors in a wide range of sectors,
from liquid gas and titanium dioxide to pharmaceuticals and
pipe manufacturing.
South African economy at a glance 18
Insight into the performance of the South African
economy is provided through these graphical
representations of key statistics.
Investing in Durban 22
Strong policy frameworks and priority projects are
attracting investors to Africa’s biggest port city.
Richards Bay 29
Richards Bay holds great promise for growth.
KWAZULU-NATAL BUSINESS 2017/18
4
UIF SAVING JOBS
THROUGH SOCIALLY
RESPONSIBLE INVESTMENTS
The National Development Plan is a blueprint serving as
a guideline to government departments and state entities
on how they can play a role in government wide efforts
of creating decent work, reducing unemployment and
poverty. The Unemployment Insurance Fund is among
the leading state entities in the implementation of the
provisions of the NDP to address the slow economic
growth, unemployment and poverty in South Africa.
The UIF social investment mandate ensures that,
additional to earning good financial returns, investments
must be supportive of long term economic, social and
adhere to sustainable environmental outcomes. The
investments must also yield a good social return for the
country. These investments have sustained 6 860 jobs of
which 3 024 are permanent, 3 836 are temporary/seasonal
and 195 are new jobs created during the financial year
ending in March 2016.
UIF INVESTMENTS IN RENEWABLE ENERGY
The UIF investments are contributing to the energy
requirements of South Africa and the investments in the
renewable energy sector provides a total capacity of 192
megawatt of electricity of which 117 megawatt is solar
energy and 27 megawatt is wind generated electricity.
The De Aar project is a shining example of the UIF energy
investments and this project produces 90 megawatt of
electricity and was completed in April 2016. The solar plant
in the area generates enough electricity to power 15 000
houses. Another mainstay project is the Phakwe Group ran
projects undertaken in the Northern and Eastern Cape.
INVESTMENT IN FOOD SECURITY
The UIF investments in this regard are undertaken under
the banner of the UIF Agri-Fund in partnership with
Futuregrowth and Day Breaker Poultry Project. The UIF
Agri-Fund has invested in 4 farms situated in Mable Hall
in Limpopo. One of the farms is a cash crop farm spanning
450 hectares. The farm in the last financial year produced
235 hectares of white maize, and cotton was planted in an
area covering 28 hectares.
A further three farms are located in the Saron area in the
Western Cape. In this project a total of 178 hectares has
been used to plant grapes, 37 hectares has been used to
pant citrus fruit. Furthermore, there is potential to plant an
additional 92 hectares of grapes. The Daybreaker Poultry
project operates in Gauteng, Limpopo and Mpumalanga
and the combined projects have facilities to grow 1.6
million broiler chickens.
INVESTMENTS IN HEALTH CARE FACILITIES
The UIF concluded two investments in this regard that
include a BEE hospital manager, Busamed to build a
private hospital in Modderfontein and Fund Manager
Razorite Heatlhcare that focus on the provision of
affordable heathcare facilities that include rehabilitation
and sub-acute centres.
The Modderfontein hospital is a 220 hospital bed with subacute
facilities. This hospital is under construction. While
the RH Fund Manager has concluded seven investments
that include:
• Busamed with four hospital facilities
• HealthMed with two facilities
INVESTMENTS IN EDUCATION
UIF has invested in three investments that play a role
to unlock access to education. The investments were
concluded with Eduloan – an organisation that provides
financial support to tertiary students and South Point and
Educor organisations that provide student accommodation.
By March 2016, Eduloan had disbursed about R446 986.64
benefiting 34 047 students, whiles South Point provided
about 10 000 student with accommodation.
UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT
The UIF has concluded two investments with the aim of
supporting small and medium enterprises. In this regard
the PIC on behalf of UIF has concluded investment deals
with Musa Capital and TOSACO.
The investments will support more than 250 SMMEs across
various sectors inclusive of agriculture and affordable
housing. Musa Capital for example has a supply chain of
over 250 SMME’s that have facilitated the creation of 2 500
jobs.
TOSACO investments is planning to advance capital to
young black entrepreneurs who aspire to own and manage
Total Filling stations around the country.
For more information:
Call: 0800 843 843 or
visit: www.labour.gov.za
CONTENTS
Growing the maritime economy 40
Building a Smart Port City at Durban.
Economic sectors
Mining60
Miners and processors are investing in new mines
and plants.
Agriculture62
Heavy rains have returned to boost agricultural
production.
Sugar64
A British company has bought Illovo.
Manufacturing65
Big new plants are opening in KwaZulu-Natal.
Forestry and paper 72
Companies are investing heavily in processing capacity.
Agriprocessing 74
Food and beverages are produced on a large scale.
Automotive75
Durban hosts the first NAACAM Show.
Oil and gas 76
Richards Bay is set to become an energy hub.
Water78
New dams and water pipelines are under construction.
Energy80
Alternative energy sources are being rolled out.
KWAZULU-NATAL BUSINESS 2017/18
6
CONTENTS
Tourism82
KwaZulu-Natal is targeting conferences as a
priority sector.
Education and training 84
KwaZulu-Natal has 30% of South Africa’s schoolchildren.
Banking and financial services 86
Three new banks are set to join the sector.
Development finance and SMME support 88
Small businesses have multiple financing options.
Government
South Africanl Government 92
A guide toSouth Africa’s national government
departments.
KwaZulu-Natal Provincial Government 96
A guide to KwaZulu-Natal’s provincial government
departments.
KwaZulu-Natal Local Government 97
A guide to metropolitan, district and local municipalities
in KwaZulu-Natal.
References
Sector contents 58
ZIMBABWE
Index100
NAMIBIA
BOTSWANA
North West
Limpopo
Mpumalanga
Gauteng
SWAZI-
LAND
MOZAMBIQUE
Maps
KwaZulu-Natal regional map. 17
Northern Cape
Western Cape
Free State
KWAZULU-
KwaZulu-
Natal
LESOTHO NATAL
Eastern Cape
KWAZULU-NATAL BUSINESS 2017/18
8
CREDITS
KwaZulu-Natal
Business
A unique business and investment guide.
KwaZulu-Natal Business 2017/18 is the ninth edition of this highly
successful publication that has, since its launch in 2008, established
itself as the premier business and investment guide to
the KwaZulu-Natal Province.
The 2017/18 edition includes special features on the Richards Bay area
and its increasingly important Industrial Development Zone, the investment
appeal of Durban and the growing maritime economy. Up-to-date
overviews on the province’s economic sectors provide unique insights.
Global Africa Network Media (www.gan.co.za), the publisher of
KwaZulu-Natal Business, specialises in business-to-business print and
electronic publications, producing a series of region-specific, annual
print journals. Every province in South Africa is covered by this unique
range of journals and websites, complemented by a national business
guidebook, South African Business.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
ABOUT THE COVER
The cover photograph was shot by Brad Hunter
(www.bradhuntermedia.co.za) from the top of 88 Joe Slovo
Street in Durban. The building was designed by German-born
American architect Helmut Jahn and is a landmark and external
focus for the CBD of Durban. It has also contributed towards
the City Council’s rejuvenation plans for the “new-look” Durban.
CREDITS
Publisher: Chris Whales
Publishing director:
Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Colin Carter
Production: Lizel Olivier
Ad sales: Sydwell Adonis, Nigel
Williams, Gavin van der Merwe,
Sam Oliver, Gabriel Venter,
Siyawamkela Sthunda and
Jeremy Petersen
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
KwaZulu-Natal Business is distributed internationally on outgoing
and incoming trade missions; to foreign offices in South
Africa’s main trading partners; 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, airport
lounges and companies.
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, BHP
Billiton, Pexels, Ngage Media, Berea Mail, Roy Reed, Khanyisa Projects,
The Misty Blue Group, South African Tourism, Paul Chinn, KZN Provincial
Legislature, Durban Chamber of Commerece and Industry and iStock.
PUBLISHED BY
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: info@gan.co.za | Website: www.gan.co.za
ISSN 1993-0127
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.
KWAZULU-NATAL BUSINESS 2017/18
10
Alfred Duma
Local Municipality
“Service Delivery Beyond Expectation”
An Attractive Investment Destination
Central Location
The Alfred Duma Local Municipality is known for its history
in the promotion of industrial development since the early
19th century. It is home to the largest tyre and appliances
manufacturing companies in the world, Sumitomo Rubber
Industries and Defy. To further promote industrial activity
in the town, the Municipality adopted an Incentives
Policy for new and expanding businesses, and a Business
Retention and Expansion Programme.
Alfred Duma Local Municipality offers several industrial
areas, such as Acaciavale and between the towns Danskraal
and Colenso, with the largest being the Ithala Industrial
Estate, a short distance from the CBD. Factories, industrial
sites and skilled labour are readily available since the town
is home to three TVET Colleges serving the Northern KZN
Region. The industrial stand sizes vary from 2000 to 8000
square metres. Subdivisions and stand sizes can be negotiated
to meet your particular requirements. Assistance is
also provided with rezoning and EIA applications.
Alfred Duma Local Municipality has a well-established
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 institutions
which includes TVET Colleges and nursing schools.
All these sites are easily accessible by road and rail.
The town has a mini airport which is designed to serve
goods and small passenger planes.
Alfred Duma Local Municipality is a major agricultural
zone for dry crops and livestock, and has abundant water
resources with the large UThukela River running through
the town.
Alfred Duma Local Municipality
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 easy access to neighbouring
towns, provinces and
countries.
Tourism Attractions
Mayor: Alfred Duma
Local Municipality
Cllr MV Madlala
Alfred Duma Local Municipality rests on the open flood
plains 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, set in some of the most scenic areas
in the country. Alfred Duma Local Municipality 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 of the multi Grammy Award winning
Isicathamiya Group, Ladysmith Black Mambazo.
It has several attractions like the Long Tom Cannon
in front of the majestic and historical Town Hall, the
Soofie Mosque, Battlefields Route and Siege Museum.
It also hosts major events like the Ladysmith Show, the
Arthur Creswell Marathon, Battlefields Festival and
many more.
CONTACT DETAILS
Ladysmith Office: Mr T B Xaba • Tel: 036 637 2104/2090 • Cell: 082 317 2857
Email: tbxaba@alfredduma.gov.za • Website: www.ladysmith.co.za
Drakensberg
To Johannesburg
N
2
SPIOENKOP
N
R
74
2
DAM
Alfred
Bergville Duma
R
Winterton
74
To Newcastle
Ladysmith
To
Durban
TUGELA
RIVER
A REGIONAL OVERVIEW OF
KWAZULU-NATAL
KwaZulu-Natal is wooing investors in a wide range of sectors, from liquid gas and titanium dioxide
to pharmaceuticals and pipe manufacturing.
By John Young
In November 2017, the KwaZulu-Natal Investment Conference will outline to a wide
range of potential investors all the benefits that the coastal province, the secondbiggest
contributor to South Africa’s gross domestic product (GDP), has to offer. The
province’s existing infrastructure, good soils and fine weather provide a solid base for
SPECIAL FEATURE
future growth. KwaZulu-Natal already has significant
capacity in heavy and light manufacturing, agriprocessing
and mineral beneficiation, all of which
is supported by South Africa’s two busiest ports
(Richards Bay and Durban), the country’s busiest
highway (the N3), a modern international airport
(King Shaka International) and pipelines that carry
liquids of all types to and from the economic stronghold
of Gauteng province in the interior. Toyota and
Bell Equipment play a big role in the automotive sector
while the Engen Oil Refinery is a strategic asset.
Sugar, tourism and forestry and paper are the other
important sectors driving growth and employment
in KwaZulu-Natal.
A number of bodies support investment into the
province. Chief among these is Trade & Investment
KwaZulu-Natal (TIKZN), which offers expert advice
and support in every aspect that potential investors
might need. Support is also offered to existing
investors who might want to expand their business
or start exporting products.
A Provincial One-Stop-Shop is being established
to facilitate getting all the paperwork done as fast as
possible for new investors. Bodies such as the South
African Revenue Service (SARS) and Home Affairs will
be involved in this process.
Three entities that work hard to attract investment
in their own right are Richards Bay Industrial
Development Zone (RBIDZ), Dube TradePort
and eThekwini Municipality. The latter body’s
dedicated unit is called Durban Investment
Promotion (DIP), which in turn works with bodies
such as the Durban Chamber of Commerce
and Industry and TIKZN.
In his 2016 State of the Province address, Premier
Mchunu announced these investments in the
RBIDZ: titanium plant (R4.5-billion); biomass plant
(R2-billion); pipe manufacturing plant (R300-
million); paint manufacturing (R16-million);
logistics services (R20-million).
A number of big projects have been undertaken
in recent years in the province, or have
been approved for implementation in the near
future. These so-called “catalytic projects” are
big enough to stimulate other sectors of the
economy and to contribute significantly to
regional GDP.
Perhaps the biggest recent announcement
was the decision by the national Department of
Energy (DoE) that one of the country’s first two
gas-to-power plants to be constructed under the
Independent Power Producer Programme, is to
be allocated to Richards Bay. A private partner
will invest in and run the plant which will be
located within the RBIDZ.
This is not only big news in terms of the amount
of money being invested and the number of jobs
that will be created, it has the potential to create
a whole string of downstream businesses supplying
gas, servicing gas and fired by gas.
KWAZULU-NATAL BUSINESS 2017/18
14
SPECIAL FEATURE
The variety of sectors into which these catalytic
projects are taking place shows that KwaZulu-
Natal has a diverse economy. Three examples
illustrate this:
• Colenso Smelter Park Project (R39-billion in first
phase, power generation)
• Point Waterfront Development (luxury apartments,
hospitality, offices, retail)
• Cipla at Dube TradePort (R1.3-billion, bio-similar
pharmaceutical manufacturing plant).
New sectors
Two new sectors are catching the eye of investors
in KwaZulu-Natal. One relates to the ocean, and the
other is energy generation.
KwaZulu-Natal has a long coastline that stretches
from Port Shepstone in the south to 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 – the ports of 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 subsectors that can help 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 ports at Durban and Richards
Bay and to explore for gas and oil in the Indian Ocean.
Ship-building and ship repairs is an existing industry
but it is currently not very big. If oil rigs were
to start visiting the KZN coastline on a regular basis,
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.
The KwaZulu-Natal Maritime Institute is part of
a restructured Sharks Board offering training programmes
with national ports and logistics operator,
Transnet. 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, a hope partly based
on the close vicinity of the
vast gas fields off the coast of
Mozambique.
If energy does not come from
the sea through offshore drilling
for oil or gas, there is plenty of
potential on land. So far KwaZulu-
Natal has trailed the rest of South
Africa when it comes to the innovative
and exciting REIPPPP. Tens
of billions of rands and hundreds
15 KWAZULU-NATAL BUSINESS 2017/18
SPECIAL FEATURE
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 projects
in the Northern Cape and wind farms 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 biomass 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.
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.
Geography
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
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.
Regions
KwaZulu-Natal has 10 district municipalities, the
most of any province in South Africa. 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
becomes another port, if the money can be 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
KWAZULU-NATAL BUSINESS 2017/18
16
everages, infrastructure development and tourism.
Further south, plans are in place to upgrade Margate’s
airport and Port Shepstone’s beachfront.
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 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.
Standerton
N5
Vrede
Harrismith
Volksrust
Newcastle
Glencoe
N11
Paulpietersburg
Utrecht
Dundee
Vryheid
uLundi
Pongola
Nongoma
Hlabisa
Mtubatuba
SPECIAL FEATURE
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 and 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. King Shaka
International Airport and associated Dube TradePort
is kick-starting massive new investment in the area.
The Ilembe District Municipality is particularly active
in seeking out new investors.
Mkuze
Hluhluwe
Ladysmith
R74
Melmoth
Bergville
N3 Colenso
eMpangeni
R74
Winterton
Kranskop
Richards Bay
Estcourt
Greytown
Gingindlovu
Mooi River
R33
Stanger Darnall
Howick
N2
Tongaat
Ballito
PIETERMARITZBURG
N3
uMhlanga
Underberg
Pinetown
LESOTHO
Free State
DRAKENSBERG
Kokstad
N2
N17
Bethal
Eastern Cape
Ermelo
Mpumalanga
iXopo
N17
KWAZULU-NATAL PROVINCE
N3
N11
R56
Piet Retief
R34
R33
uMzinto
R33
R68
N2
Harding
Hibberdene
uMtentweni
Port Shepstone
Margate
Southbroom
Port Edward
N2
R34
DURBAN
aManzimtoti
uMkomaas
SWAZILAND
R69
R65
R66
INDIAN OCEAN
N2
Motorway
Main Road
Railway
MOZAMBIQUE
St Lucia
N
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 country’s
power stations’ demand
for the fuel. 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.
17 KWAZULU-NATAL BUSINESS 2017/18
SPECIAL FEATURE
South African economy at a glance
Insight into the performance of the South African economy is provided through these
graphical representations of key statistics.
ZIMBABWE
NAMIBIA
BOTSWANA
Limpopo
0.9% (7.1%)
MOZAMBIQUE
North West
-3.6% (6.5%)
Gauteng
2.1%
(34.3%)
Mpumalanga
2.7%
(7.5%)
SWAZI-
LAND
Northern Cape
2.8% (2.1%)
Free State
1.8%
(5%)
LESOTHO
KwaZulu-
Natal
2.3%
(16.1%)
Western Cape
2.0% (13.6%)
Eastern Cape
1.0% (7.6%)
SA GDP: Percentage of growth per province (2014) and percentage
contribution to national GDP (figures in brackets).
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND
Eastern Cape Bhisho
Phumulo
Masualle
6 916 200 168 966km 2 R289.9
Free State Bloemfontein
Elias Sekgobelo
"Ace" Magashule
2 817 900 129 825km 2 R189.1
Gauteng Johannesburg David Makhura 13 200 300 18 178km 2 R1 305.6
KwaZulu-
Natal
Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1
Limpopo Polokwane
Stanley
Mathabatha
5 726 800 125 754km 2 R271.5
Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2
North West Mahikeng
Supra
Mahumapelo
3 707 000 104 882km 2 R249.5
Northern Cape Kimberley Sylvia Lucas 1 185 600 372 889km 2 R79.9
Western Cape Cape Town Helen Zille 6 200 100 129 462km ² R518.1
Snapshot of South Africa’s provinces
SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA
KWAZULU-NATAL BUSINESS 2017/18
18
SPECIAL FEATURE
How South Africa’s economy performed in 2015. *
* PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA
Agriculture 2.5 2.8 0.4 2.1 3.8 4.3 6.0 7.5 3.5
Mining 29.4 24.9 3.3 33.6 1.9 13.3 26.7 0.2 0.3
Manufacturing 2.5 11.5 13.5 4.4 15.8 8.5 2.1 12.2 11.8
Electricity 2.8 5.4 2.4 1.4 2.5 3.1 3.0 1.4 2.0
Construction 2.5 3.3 4.3 2.6 3.0 2.0 1.6 2.1 4.3
Wholesale 10.8 10.3 14.2 9.3 15.5 12.3 9.9 14.7 17.0
Transport 5.4 5.8 8.3 6.1 11.9 7.1 7.8 7.9 9.1
Finances 14.0 10.9 22.8 11.1 16.5 14.2 11.6 18.6 26.6
Personal
Services
Government
Services
3.8 4.3 3.6 7.0 5.8 10.2 8.1 9.1 5.1
16.0 10.5 17.0 12.1 13.3 14.7 12.8 22.0 10.2
Taxes 10.3 10.3 10.1 10.3 10.0 10.3 10.2 10.2 10.0
Gross Domestic Product by province, percentage contribution.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1
19 KWAZULU-NATAL BUSINESS 2017/18
SPECIAL FEATURE
7%
6%
5%
4%
3%
2%
1%
0
2011 2012 2013 2014 2015 2016
CPI (percentages in order from 2011 to 2016)
PPI (percentages in order from 2011 to 2016)
denotes data for September 2016 rather than the average for the full year.
**
Inflation rate 2011 to 2016
SOURCE: WWW.STATSSA.GOV.ZA
Mineral products 20.41%
Precious metals 18.24%
Vehicles, aircraft and vessels 12.57%
Products iron and steel 12.02%
Machinery 9.69%
Chemicals 6.47%
Vegetables (including fruit, nuts and cereals) 4.96%
Prepared foodstuff (including beverages) 4.29%
Plastic and rubber 2.11%
Wood pulp and paper 1.92%
South Africa’s top 10 export commodity categories: 2015
SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA
Machinery 25.02%
Mineral products 16.12%
Vehicles, aircraft and vessels 10.4%
Chemicals 10.37%
Equipment components 7.3%
Products iron and steel 5.54%
Plastic and rubber 4.13%
Textiles 3.72%
Prepared foodstuff (including beverages) 2.93%
Photographic, medical equipment 2.71%
South Africa’s top 10 import commodity categories: 2015
SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA
KWAZULU-NATAL BUSINESS 2017/18
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SPECIAL FEATURE
Million Rand
R600 000
R400 000
R200 000
R0
Africa
Europe
America
Asia
Oceania
Other
unclassified
2010 2011 2012 2013 2014 2015 2016
Exports year on year world zone comparison (Including BLNS) 2010 to 2016
PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA
Million Rand
R600 000
R400 000
R200 000
R0
Africa
Europe
America
Asia
Oceania
Other
unclassified
2010 2011 2012 2013 2014 2015 2016
Imports year on year world zone comparison (Including BLNS) 2010 to 2016
PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA
21 KWAZULU-NATAL BUSINESS 2017/18
Investing in Durban
Strong policy frameworks and priority projects are attracting investors to
Africa’s biggest port city.
The business case for Durban is a strong one. The
continent’s busiest port serves a city with excellent
infrastructure and a varied and sophisticated
economy while excellent schools, superb beaches,
a warm climate and well-organised sports, leisure and
cultural programmes contribute to making the eastcoast
city a destination of choice for investors.
A modern fibre optic network enables good
telecommunications and the Dube TradePort at
King Shaka International Airport supports imports
and exports. The University of KwaZulu-Natal is a
well-established institution and several campuses
of Technical and Vocational Education and Training
(TVET) colleges also contribute to a skilled potential
workforce. The city is also a leading tourism destination
and the Inkosi Albert Luthuli International Convention
Centre Complex in the heart of Durban is at the core
of a strong Meetings, Incentives, Conferences and
Events (MICE) sector. The manufacturing sector is varied,
ranging from an oil refinery and a large automotive
manufacturing plant to chemicals and textiles.
Durban Investment Promotion (DIP) is a collaboration
between the private sector and the eThekwini
Municipality which offers assistance to potential investors
and actively promotes the city. It works together
with organisations such as the Durban Chamber
of Commerce and Industry and TIKZN (Trade and
Investment KZN).
The thrust of Durban’s pitch to attract investors
can be put into two broad categories:
• Catalytic Projects, which have the potential to shift
the socio-economic landscape and trigger a series
of investments across several sectors
• Key Sectors, which receive the focus of planners in
a variety of ways, including the creation of Special
Purpose Vehicles (SPVs), clusters and the development
of value chains to promote new ventures
and investment opportunities.
Catalytic projects
Durban is working on a number of large-scale projects
that have the potential to make a regional
KWAZULU-NATAL BUSINESS 2017/18
22
Get in touch with Sareeka I E: Brijlals@durbanchamber.co.za I T: 031 335 1000
SPECIAL FEATURE
impact. The location of these projects is vital. They
must either be on national trade routes or they should
help to break down the old apartheid living/working
dynamics. Projects are selected for their scale in
terms of job creation, investment size and potential
revenue creation. Ideally, the projects should include
a combination of functions (retail, commercial and
housing, for example) and they should fit in with the
UNO’s Sustainable Development Goals.
The Point Waterfront Development fits very
well into the category of a catalytic project. Some
projections put the potential investment value at
R40-billion and the number of permanent jobs to
be created at 6 750. It is an ambitious plan that is
already linking the city’s beach promenade and
the harbour. It offers a property use mix of office
space, retail shops, residential dwellings and leisure
options. The 55ha site has already seen significant
investment. A proposed cruise terminal in the harbour
backing on to the Point will dovetail well with
the new atmosphere of the precinct.
Other major projects include:
• the Warwick Junction transport interchange
which has already received road upgrades but
could be an even greater enabler of trade
• the Centrum Government Precinct which would
formalise the relationship between buildings
such as the International Convention Centre
(and extensions) and a related hotel, the library,
council chambers and the redevelopment of
Gugu Dlamini Park
• the Cornubia integrated human settlement development
north of Durban, on 1 300ha, a partnership
between Tongaat Hulett Development,
the human settlement departments at national
and provincial level and eThekwini municipality
• Dube TradePort, the multi-modal facility at King
Shaka International Airport.
Key sectors
Durban already has a very diverse economic landscape,
within which there are some large-scale enterprises.
Cooperation between the public and private
sectors is illustrated by the large number of cluster
initiatives which aim to draw to together experience
and expertise from commerce and industry, labour
organisations, government and academia.
Research aims to find out how best to grow
particular economic sectors, and in-depth discussions
are held about how to develop and grow
value chains. The mineral and agricultural wealth
of KwaZulu-Natal is mostly consumed or exported
in its raw state – much more could be done to add
wealth through processing.
The three broad focus categories are manufacturing,
services and the green economy. Some of
these initiatives play to the existing strengths of
the regional economy, some seek to exploit newer
avenues as in the emphasis on the environment
and a growing interest in the Oceans Economy.
Under manufacturing, the following clusters or
programmes are active:
• KZN Clothing and Textile Cluster (KZN CTC)
• Durban Automotive Cluster (DAC)
• Durban Chemical Cluster (DCC)
• eThekwini Maritime Cluster (EMC)
• KZN Furniture Incubator
• Agro-processing (Edamame Development
Programme).
In services the focus areas are Business
Processing Outsourcing (BPO) and ICT. The
SmartXchange is an SPV to develop skills in the
ICT sector and to help small businesses to get
started, 50 of which are already using the service.
The creation of a more skilled workforce
and a larger number of ICT companies will create
a smarter province which will make it more
attractive to investors.
Green economy:
• a variety of projects linking tourism, environmental
clean-ups and alien eradication, recycling
and job creation
• eThekwini Waste Materials Recovery Industry
Development Cluster (USE-IT).
There are various other broader programmes
which have their own goals but there will be
positive spin-offs for the targeted sectors. These
schemes include the drive to increase local content,
boosting metal fabrication across sectors,
the promotion of black industrialists, promoting
exports and the over-arching eThekwini Industrial
Development Policy Action Plan.
KWAZULU-NATAL BUSINESS 2017/18
24
PROFILE
Msunduzi Municipality:
City of Pietermaritzburg
Msunduzi Municipality incorporates Pietermaritzburg,
the capital city of the province of KwaZulu-Natal.
Geography and location
Msunduszi Municipality is 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
Msunduzi has a diverse economy with a robust manufacturing
sector including an aluminium rolling mill
and downstream aluminium products, automotive
components, leather-ware and shoes, carpets, furniture,
forestry and timber, as well as one of the largest
fresh produce markets in the country and a thriving
agricultural sector. Emerging sectors include business
process outsourcing, the private health care
sector with two new hospitals under construction,
food processing and the creative arts sectors. As
the main commercial hub for the KwaZulu-Natal
Midlands it serves a population base of approximately
one-million in the city and surrounding smaller
towns. It has the benefit of being the seat of the
Provincial Parliament and the Provincial High Court,
which facilitates easy access to all government departments.
Main resources/attractions
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 schools and health
facilities, and has campuses for two universities plus
several colleges, ensuring the availability of a highly
skilled workforce. It has excellent road networks and
an airport with five flights daily to Johannesburg plus
one to Cape Town. 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 implementation
KWAZULU-NATAL BUSINESS 2017/18
26
PROFILE
of an airport precinct plan and an airport technology
hub including an innovation centre. The rejuvenation
of Imbali and Edendale township centres and
a new leather hub in Plessislaer, being driven by the
KwaZulu-Natal Provincial Department of Economic
Development, will open up further opportunities to
the west of the city. Massive new commercial, residential
and light industrial centres being planned
alongside the N3 to the east will bring the city closer
to the planned freight / logistics centre. 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. The sale of industrial and commercial land
is being driven by a new Land Management Office,
and an Investment Facilitation Committee provides
a Local Government “one-stop-shop” for investors
and developers.
Tourism
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, 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.
Key facts and figures
District municipality:
Umgungundlovu District Municipality
Population: 670 000
Area covered: 650km²
Key infrastructure
Main roads: Excellent national, provincial and local
road network
Railways: On the main line between Durban and
Johannesburg
Airports: Pietermaritzburg Airport, with five daily
flights between the city and OR Tambo Airport,
Johannesburg, and one daily flight to Cape Town
Ports: 45 minutes drive from the Port of Durban
Contact details
Key personnel
Mayor: Councillor Themba Njilo
Municipal Manager: Mr Sizwe Hadebe
Key contact people
Senior Manager: Local Economic Development
(acting), Ms Nombuso Hlophe
General Manager: Development Services,
Dr Ray Ngcobo
Tel: +27 33 392 2600 | Fax: +27 33 392 2726
Email: nombuso.hlophe@msunduzi.gov.za
Physical address: Professor Nyembezi Building,
341 Church Street, Pietermaritzburg 3200
Postal address: PO Box 85, Pietermaritzburg 3200
Website: www.msunduzi.gov.za
27 KWAZULU-NATAL BUSINESS 2017/18
INTERVIEW
Msunduzi Municipality:
City of Pietermaritzburg
Executive Mayor of the Msunduzi Municipality, Councillor
Themba Njilo, explains why investors are heading for this
well-resourced city.
Cllr Themba Njilo
What are the goals of your municipality?
We aim to be a safe, vibrant city in which to live, learn, raise a family,
work, play and do business. Our goal is to have a well serviced city with
the necessary infrastructure, accessibility and connectivity to attract
investment and development that will result in jobs being created to
reduce poverty and unemployment. Our goal is make the city safe, clean
and friendly, and to strive for financial viability and good governance.
Do you have specific projects under way to improve the city?
One of the biggest projects is the Integrated Rapid Passenger Transport
Network (IRPTN) which is going to revolutionise public transport. Other
planned projects include the Youth Enterprise Park in Imbali, a Light
Industrial Park, a Technology Hub and a huge project in Edendale, the
Town Centre development. The project includes rezoning for business,
land acquisition, road improvements and landscaping.
BIOGRAPHY
Councillor Themba Njilo is a
reputable businessman and
passionate community activist
who is the founder of Themba
Njilo Foundation that is involved
in developing the community
and assisting the underprivileged.
The institution runs many
drug rehabilitation programmes.
He is the owner of Induduzo
Funeral Homes and the founder
of UHOLOGO Productions that
manages many recording artists.
Councillor Njilo holds a
Diploma in Marketing and Sales
Management.
What are the economic strengths of the area?
The services and government sectors remain very strong but the manufacturing
sector is robust, with a number of big manufacturing enterprises,
and retail and wholesale also contribute substantially to the city’s GDP.
The city is home to the KZN Provincial Government, the
Umgungundlovu District government, the provincial Deeds Office
and the Supreme Court, all of which makes investment and development
easier. Pietermaritzburg is a centre of educational excellence.
How important is the municipality’s location on the N3?
The N3 is the key transportation corridor connecting Gauteng with
the Durban harbour. We have already seen major investments and
development along the N3 including Motor City and two new hotels.
Please tell us about other recent investments.
The city has attracted large scale investments from the private sector
and national government. Liberty Midlands Mall is now expanding
and further down the N3 the Phase 1 of the Ibhubesi Industrial Park is
now complete, both multi-million rand investments.
KWAZULU-NATAL BUSINESS 2017/18
28
Richards Bay holds great promise
for growth in multiple sectors
Richards Bay plays a vital role in South Africa’s
economy as a port, a mining destination and
as a growing centre of large-scale industrial
development, but it also a hub for tourism
and leisure serving the Zululand tourism region, with
the St Lucia wetlands and the Elephant Coast just a
short distance away to the north.
The City of uMhlathuze encompasses the two main
centres of Richards Bay and Empangeni as well as a
number of smaller settlements and traditional councils.
With a population of about 350 000, the area has
good communications (the Port of Richards Bay, the
N2 highway and an airport), the headquarters of the
University of Zululand and several campuses of the
uMfolozi TVET College.
Richards Bay has its own tourism attractions, which
include the Tuzi Gazi Waterfront and game fishing.
The hills of Zululand host many cultural villages where
traditional culture can be experienced, and where the
sites can be seen of old battles between Zulu, Boer
and Brit. Wonderful safaris are on offer at Thanda,
Thula Thula, Hluhluwe-Imfolozi, Ithala, Opathe and
the Zululand Rhino Reserve.
The Umfolozi Hotel Convention Resort will host
the Pan-African Health Tourism Congress, the first of
its kind, in June 2017. The congress will investigate how
this growing sector can develop even further with
sessions on investment, destinations and education.
Port of opportunity
The Port of Richards Bay has been expanding its capacity
at a fast rate. In dealing with 80-million tons of
cargo annually (60% of South Africa’s seaborne cargo),
it is not only the leading port in terms of volume, it is
also the largest port in South Africa.
A strong selling point for the port is its deepwater
infrastructure, encompassing a maximum permissible
draught of 17.5 metres. Together with excellent terminal
infrastructure and professional management, this
allows for quick turnarounds.
The Port has six cargo handling terminals and
covers 2 174ha of land.
The Richards Bay Coal Terminal (RBCT) has the
capacity to export 91-million tons of coal in a year. In
November 2016 a new monthly record of over 8 000Mt
was set. If that rate of export was extended over a year,
97Mt/a could be handled through the RBCT.
The Port of Richards Bay is also associated with the
Richards Bay Industrial Development Zone (RBIDZ).
Recent developments at RBIDZ have seen an investment
in an oil and gas facility and it is hoped that
the ocean will yield finds of gas to provide cheap
feedstock. Mozambique has very strong reserves of
offshore gas.
The decision by the national Department of
Energy to allocate to Richards Bay a 2 000MW power
29 KWAZULU-NATAL BUSINESS 2017/18
SPECIAL FEATURE
plant to be fired by Liquefied Natural Gas (LNG) is
a potential game-changer. Investors still have to be
found, but the potential spin-offs of such a plant
are obvious, and would make the RBIDZ even more
attractive to processors of minerals and manufacturers
of every sort.
The RBIDZ has secured or is working on an investment
pipeline in sectors that include titanium
processing, paint manufacturing, machinery and
equipment assembling (for example, pipes), solar
water heater manufacturing and services such
as logistics.
Construction on the R3-billion titanium pigment
plant will begin in 2018. A number of incentives were
helpful in persuading the investors (Nyanza Light
Metals and Avertana) to choose RBIDZ, including
accelerated depreciation, an investment allowance
and a tax allowance. Excellent rail infrastructure linking
the port to the mining areas of Mpumalanga
and the proximity of the plant of phosphoric acid
producer Foskor also contributed to the positive
investment decision. The project will create about
550 permanent jobs and between 800 and 1 200
temporary jobs during the construction phase.
The RBIDZ has been working for some time on
positioning itself to take advantage of the opportunities
in the Oceans Economy. RBIDZ sees itself
getting involved in ship and rig repair, boat building
and other opportunities such as aquaculture.
INDABA LODGE RICHARDS BAY
Catering to both business and leisure travellers,
the Indaba Lodge Richards Bay is situated
in the leafy suburb of Meerensee. The
66-bedroom Indaba Lodge is ideally located for
both the corporate and leisure traveller within
easy reach of the CBD, airport, harbour and
waterfront, and it’s only a five-minute walk
to Alkantsrand Blue Flag Beach.
This vibrant Lagoon City encourages visitors to
combine business with pleasure as they enjoy
the lush beauty of this subtropical paradise
combined with tranquil walks on miles of pristine
beaches along the TuziGazi Coast. Richards
Bay is the gateway to the famous Elephant
Coast, Hluhluwe Umfolozi Big 5 Game Reserve
and the Isimangaliso Wetland Park, a World
Heritage Site.
Towering Leopard Trees frame the modern
facade of the hotel and give a deep shade
appreciated by guests as they arrive at the
Indaba Lodge Richards Bay. Fully air-conditioned
rooms ensure that guests stay cool even
in the summer months. The Lodge’s popular
Trevally’s Restaurant offers a seasonal dinner
buffet or a bistro-style à la carte menu. For a
more informal option, light meals are offered
on the deck or a craft beer or a sundowner
cocktail can be enjoyed at the ice-top bar. Braai
facilities are available on the pool deck.
KWAZULU-NATAL BUSINESS 2017/18
30
Make UNIZULU your University of choice
The University of Zululand (UNIZULU) prides itself in having produced academic
excellence since its inception in 1960. The University has produced leaders in
government, community development, education, science, law, commerce and
industry.
UNIZULU offers a variety of degree and diploma programmes across its Science
and Agriculture; Commerce, Administration and Law; Humanities and Social
Sciences and Education faculties. All programmes offered at the University’s
KwaDlangezwa and Richards Bay campuses are internationally recognised and
students have access to state-of-the-art academic and sports and recreational
facilities. Through its International Linkages Office (ILO), UNIZULU students
can also benefit from intercontinental collaborative projects, partnerships,
scholarships, exchange programmes and experiental learning programmes.
RESTRUCTURED FOR RELEVANCE
Reasons to Study @UNIZULU
• It is the only comprehensive university north of the uThukela River
• It aspires to be a leading comprehensive university providing quality education
• It has the best Science Centre in Africa
• It undertakes research relevant to local communities
• It is responsive to the developmental needs of local communities
• It recognises academic excellence through scholarships
• It is internationally recognised
UNIZULU also recognises academic excellence through scholarships to deserving students.
Furthermore, financial aid is also available to qualifying students.
Want career advice? Call us!
Faculty of Commerce, Administration and Law: (035) 902 6172
Faculty of Arts: (035) 902 6087
Faculty of Science and Agriculture: (035) 902 6282
Faculty of Education: (035) 902 6348
KwaDlangezwa Campus: (035) 902 6051
Richards Bay Campus: (035) 902 6923
Admissions contact details
Tel: (+27) 035 902 6030
Fax: (+27) 086 631 7922
Central Applications Office
Share Call: 086 086 0226
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The Richards Bay Industrial
Development Zone
Company (SOC) Ltd (RBIDZ)
The Richards Bay Industrial Development
Zone Company (SOC) Ltd (RBIDZ) is a purposebuilt
and secure industrial estate on the northeastern
coast of KwaZulu-Natal, linked to the international
deep-water port of Richards Bay. It is tailored for
the manufacturing of goods and production of services
to boost beneficiation, investment, economic growth
and the development of skills and employment.
The RBIDZ is deemed to be a Special Economic
Zone (SEZ) that aims to encourage international
competitiveness through world-class infrastructure
as well as tax, VAT and duty-free incentives to qualifying
investors.
The RBIDZ strategy is geared to provide significant
contribution to the country’s economic growth
through creation of employment opportunities, upgrading
the skills, technology transfer, deepening
economic empowerment of historically disadvantaged
individuals and broadening of South Africa’s
basket of export products.
The RBIDZ’s objectives:
• To attract local and foreign direct investment;
• To attract advanced foreign production and technology
methods in order to gain experience in
global manufacturing and production networks;
• To develop linkages between domestic and zonebased
industries;
• To provide world–class industrial infrastructure.
The RBIDZ’s key focus sectors:
• Metals Beneficiation (Aluminium, Iron Ore,
Titanium)
• ICT (Techno–parks , Innovation Hubs)
• Renewable Energy (Solar , Fuel Cells, Biomass)
• Agro-Processing
• Marine Industry Development
Incentives provided by RBIDZ to investors
• Reduction in corporate income tax from 28%
to 15%.
• VAT exemption for supplies procured in South
Africa.
• Duty-free on imports for production-related raw
materials including machinery and assets used in
production.
• Location in a secured and Customs Controlled
Area (CCA)
• World–class industrial infrastructure.
Physical address: 150A Pioneer Road, Captains Walk Building, Tuzi Gazi, Waterfront,
Richards Bay, 3900 | Postal address: Private Bag x 1005, Richards Bay 3900
Gateway to World Markets
Vision
To be the preferred Special Economic Zone for
quality investments while delivering value to our
stakeholders.
Mission
To utilise the competitive advantage of the Richards
Bay area to attract sustainable investments that stimulate
economic growth, job creation, beneficiation of
resources and the empowerment of people.
Company profile
Company Name: Richards Bay Industrial
Development Zone SOC
Ltd (RBIDZ)
Industry sector : Manufacturing
Date established: Year – 2002
Key personnel: CEO – Pumi Motsoahae
Telephone: +27 35 788 0571 | Fax: +27 35 788 0578
Email: info@rbidz.co.za | Website: www.rbidz.co.za
INTERVIEW
An energy hub for the
country
Pumi Motsoahae, CEO of Richards Bay Industrial
Development Zone, explains why the allocation of a gas
plant could be a game-changer.
Pumi Motsoahae
BIOGRAPHY
Pumi Motsoahae has extensive
experience in ports, shipping,
logistics, freight transportation,
infrastructure, property acquisition
and project management.
He began his studies at the
National University of Lesotho
(BA Administration), gained his
Masters in Town and Regional
Planning from the University of
Natal (1993 – 1994) and studied
in the Netherlands for a Post-
Graduate Diploma in Shipping,
Transportation and Logistics.
He has also completed an
Executive Development Programme
(Supply-chain Management)
at the Gordon Institute
of Business Science.
Does the RBIDZ have a role in promoting industrialisation?
We are at the heart of the government’s programme of industrialisation.
At the onset of the democratic dispensation, there were enduring
questions on the economic side. Empowerment and enterprise
development arose out of that, and then there was a programme to
promote industrialisation.
What are your focus sectors?
While investigating the features that would attract investors we
looked at metals beneficiation, given the heritage of the area with
Richards Bay being the home to the largest aluminium smelter in the
Southern Hemisphere (South32) and two heavy sands mines (Rio Tinto
and Tronox).
We are very strong in the ICT sector. We are spearheading an effort
to create a pilot TechnoPark. Hosting the Maritime Academy, together
with a focus on ICT, affords the opportunity for innovation and for
creative young minds to flourish.
The Richards Bay area is surrounded by high-yielding agricultural
lands. We can harness that potential through agro-processing. We have
set aside a notional 10ha area for a processing plant.
Are you looking at renewable energy?
Absolutely. We want Richards Bay to be the energy hub of the country.
In April 2015, we signed Byromate (Ptd) Ltd to produce 60MW from
biomass. We are targeting companies to manufacture solar panels
here. There is a phenomenal opportunity to become an energy hub
because of our geographic location near offshore gas fields. Last year
we were awarded the production of 2 000MW from gas by the IPP
office of the Department of Energy. We are quite excited about that.
Please tell us about your most recent inward investments?
We have quite a healthy investment pipeline. A total of R11.9-billion
has been approved since 2013. Recent investments include Nyanza
Light Metals (titanium dioxide plant, R4.5-billion), Sizabantu Piping
System – SPS Molecor (comprehensive range of high-pressure PVC -O
pipes, R300-million) and in other sectors such as logistics (Lovemore
Brothers) and paint manufacturer (Prostar Paints).
KWAZULU-NATAL BUSINESS 2017/18
34
RICHARDS BAY
A unique and inviting retreat just two hours north of Durban, come and experience the
relaxed hospitality and convenience of this centrally situated hotel. Indaba Lodge
Richards Bay combines the beauty of this warm, lush, subtropical region with the rolling
savannah of the many game reserves. Take in the experience of Zulu traditionalism along
with tranquil walks on miles of pristine beaches along the TuziGazi Coast.
BOARDROOM
À LA CARTE MENU
DELUXE ROOMS
. 66 en-suite Bedrooms . Fully Airconditioned .
. Secure on Site Parking .
. Trevallys Restaurant .
. Pool & Pool Deck . Cocktail Bar .
. Wi-Fi throughout .
. 18 Hour Room Service .
. Walking distance from Alkantstrand Beach .
WE LOOK FORWARD TO WELCOMING YOU TO YOUR
Home Away from Home
INDABA LODGE, RICHARDS BAY І C/O LAUNDER & DAVIDSON LANE, MEERENSEE, RICHARDS BAY
Phone: +27 35 753 1350 | Email: gm@indabarichardsbay.co.za | Website: www.indabarichardsbay.co.za
PROFILE
Moving forward
“Coal to the world, growth to the nation”
Richards Bay Coal Terminal
(RBCT) is one of the leading
coal export terminals
in the world. RBCT celebrated
its 40th anniversary
in 2016. This export
coal terminal opened on
1 April 1976 and has grown
into an advanced 24-hour
Alan Waller, CEO
operation that has expanded
from an original
capacity of 12-million tons per annum to a design
capacity of 91-million tons per annum. To date the
terminal has moved over two-billion tons of coal.
Positioned at one of the world’s deep-sea ports,
RBCT is able to handle large ships and large volumes.
As such, the terminal has gained a reputation for
operating efficiently as well as reliably. The 276-hectare
site currently boasts a 2.2km-long quay with six
berths and four ship loaders, and has a stockyard
capacity of 8.2-million tons. RBCT shares a strong cooperative
relationship with South Africa’s national
utility Transnet, which provides the railway services
linking the coal mines to the port, and the shipping
coordination of more than 900 ships per annum.
New Record
The November 2016 export tonnage of 8,023Mt
broke the previous record of 7,556Mt (2015) by 466
218-tons, demonstrating that the terminal remains
RELIABLE. This performance once again reaffirms
the RBCT’s capacity to handle 91Mt/a. The new
KWAZULU-NATAL BUSINESS 2017/18
36
PROFILE
monthly record translated to an
annualised rate of 97.62Mt/a.
Providing a safe
working environment
Moving coal in a safe, costeffective
and efficient manner,
safeguarding the environment and stakeholders
is RBCT’s mission. RBCT’s coal logistics activities
are conducted within the framework of ISO
14001:2004 and a site-specific Environmental
Management Programme. Compliance with ISO
14001:2004 is audited annually and re-certified
every three years. Protection of the environment
and compliance to environmental legislation
remains paramount to RBCT.
RBCT has a strong focus on safety, health and wellbeing
of employees as well as on environmental
stewardship. On 19 May 2016, RBCT achieved a
significant milestone in safety performance, with the
landmark of five-million LTI-free man hours.
Excellence Awards
RBCT was honoured as the most-awarded business
in Richards Bay in the 2016 Zululand Chamber of
Commerce and Industry Business Excellence Awards.
RBCT not only excelled in four critical areas of the
business but also was awarded the Premium Award
– for achievements across the supply chain, operations,
people and safety.
RBCT was the winner in the following categories:
• Logistics Business of the Year
• Safety Awareness, and
• SABCOHA Wellness Award
RBCT was a runner-up in the following:
• Employer of the Year
• Corporate Social Responsibility Award
Servicing the mining houses
The terminal provides mining houses with a worldclass
logistics service to export coal efficiently to
Asian and European markets, among others. RBCT
throughputs are directly impacted by the upstream
logistics infrastructure and continue to fully utilise the
terminal’s design capacity. RBCT prides itself on being
an efficiently run and reliable export coal terminal.
RBCT people
Over 90% of RBCT staff took part in the 2016
Organisational Health Survey. This is a survey
aimed at assessing the organisational health as
felt, perceived and experienced by all employees.
The results improved from 2015 by 5.8%. Over 75%
of respondents said they believe strongly in RBCT’s
strategic direction, leadership, are motivated to
work for RBCT, and are willing to go the extra mile to
make RBCT sustainable. RBCT continuously aims to
engage, nurture and develop its people to enable
the terminal to perform at its best.
Community development
RBCT continues to plan and participate in a number
of social economic development programmes. In
year 2016, a total of R3.1-million was invested in the
Community Social Investment (CSI) projects. CSI projects
are integral to RBCT as they live out our slogan:
“Coal to the world, growth to the nation”.
CONTACT INFO
Physical address: Richards Bay Coal Terminal
(Pty) Ltd., South Dunes, Richards Bay Harbour
Postal address: PO Box 56, Richards Bay
3900
Tel: +27 35 904 4911
Website: www.rbct.co.za
37 KWAZULU-NATAL BUSINESS 2017/18
KAEFER holds a worldwide leading position as provider for plant integrity services and solutions,
specialising in Insulation, Access, Surface Protection, Passive Fire Protection, as well as Interior Outfitting.
With an annual turnover of around €1.5 billion, KAEFER’s business is carried out in its Industry, Marine &
Offshore and Construction divisions. Headquartered in Bremen, in the north of Germany, the company has
operations in over 40 countries, a current workforce of 28,000 and is led by Peter Edelmann (CEO). Further
information can be found on www.kaefer.co.za
Tel: 011 974 8123 | Fax: 011 974 4628 | E-mail: info@kaefer.co.za | Website: www.kaefer.co.za
KAEFER
Your partner in Industry solutions
While we are a global player, we adopt a very strong local focus and ensure that we make an indelible footprint in all the
locations where we are active.
KAEFER team with their 3rd
consecutive award for Painting
Contractor of the Year at RBCT.
Since its inception in 1918 in Bremen, a small town in
Germany, KAEFER has developed into a market leader for
plant integrity services and solutions in Industry, Marine &
Offshore and Construction. With over 28,000 employees in
40 countries at 2000 locations, we are a true global player
– there for you all over the world
In addition to insulation, we offer access solutions, surface
protection, passive fire protection & asbestos removal to
the South African and Sub-Saharan market. In everything
we do, the client takes centre stage and we take pride
in our efficient and innovative approach to overcoming
challenges and providing services and solutions.
“Our mission is to support our clients’ success by
delivering highly professional plant integrity services
and solutions for the Industry, Marine & Offshore, and
Construction business worldwide.”
We also pride ourselves in doing things the KAEFER way.
It’s what makes us Recognised, Efficient and Different
(RED) and is seen clearly in our consistent safety record,
cutting-edge technical expertise and strong ethical values
that guide us in everything we do. Furthermore, we’re
driven by innovation and by doing things differently. We
develop new and tailored solutions that benefit our clients
and are frontrunners in digitalisation in our industry. We
also assure quality, safety, cost-efficiency and continuous
improvement with our substantial in-house expertise and
fully integrated services.
We have the pleasure to work with and contribute to the
success of projects and maintenance contracts for clients
such as SAPREF and Richard’s Bay Coal Terminal (RBCT)
in the KZN region as well as Eskom power stations in
Mpumalanga and Limpopo, namely Tutuka, Majuba &
Matimba and Medupi power station amongst others.
“Increasing our competitive strength by being
recognised, more efficient and different.”
As part of our commitment to corporate social
responsibility, we have completed several community
projects in the KZN, Mpumalanga and Limpopo provinces
where we operate. We strongly believe that sustainable
empowerment is achieved through education; children are
the leaders of tomorrow. With this focus on impacting
South Africa’s future through education, KAEFER has,
among other community projects:
› Partnered with SAPREF by contributing towards a
project that saw the building of two science labs at
the Ogwini and Menzi High schools in Umlazi. The
project, owned and driven by SAPREF, involved
converting a classroom at both schools into a fully
equipped science laboratory complete with
workbenches, cupboards, Bunsen burners, science kits
and chemicals. Other teaching aids were also donated
to the schools.
› Given Phegelelo High School in Lephalale a much
needed facelift to their facilities including classroom
blocks, toilets and sports grounds.
At KAEFER, we rely on our long history and business
continuity which gives us stability and orientation. Our
successful track record speaks for itself. And it also serves
as a testament to the strength of our strategy, and our
vision – to eliminate the energy waste.
FOCUS
Sappi
Evolving into the new future.
Sappi Saiccor Mill.
Sappi is a global leader in dissolving wood pulp, paper
and paper pulp solutions. Sappi Limited (listed and in the
Top 40 on the JSE) is headquartered in Johannesburg,
South Africa; has over 12 000 employees; manufacturing
operations on three continents, in seven countries (seven mills in
Europe, three mills in America and four mills in South Africa) and
customers in over 150 countries worldwide.
Sappi has continued to deliver solid results driven by strong
global demand on the back of strategic shifts in business focus.
Coupled with strong cash generation and cost management initiatives
to reduce variable costs, Sappi is well positioned to achieve its
2020 targets.
2020Vision
The company has repositioned itself with the 2020Vision as a diversified
woodfibre group targeting US$1-billion in EBITDA through
an expanded product portfolio with increased margins, providing
enhanced rewards to all its stakeholders. Optimising woodfibre is at
the core of this new vision and the group is leveraging its existing
strengths to realise opportunities
and guide investments. The
change in strategy has shifted
focus from Graphic paper to
Specialised Cellulose (Dissolving
pulp) and Speciality Packaging
grades.
Sustainability
Sustainability is probably the biggest
driver of business change
around the globe. Sappi’s business
relies on natural capital, particularly
on woodfibre, land and
water. Accordingly, the company
focuses closely on responsible
management of these resources.
Sappi owns or manages hundreds
of thousands of hectares of
KWAZULU-NATAL BUSINESS 2017/18
40
FOCUS
commercial plantations, many of
which are based in the KwaZulu-
Natal area that are constantly
repopulated, thereby ensuring
that its renewable raw material is
inherently sustainable. These forest
plantations are actively managed
to enhance biodiversity
and restrict harmful processes
like pests and disease and 100%
of our owned and leased plantations
are FSC®-certified.
Value adding products
KwaZulu-Natal is home to SAPPI
SAICCOR MILL which manufactures
dissolving wood pulp, a
growth area, resulting in investments
made to increase capacity
and output. Dissolving wood
pulp products are used worldwide
by converters to create viscose
fibre for fashionable clothing
and textiles, acetate tow,
pharmaceutical products as well as a wide range of consumer and
household products. Unlike synthetic fabrics derived from nonrenewable
fossil fuels, cellulosic fabrics made from dissolving wood
pulp breathe like natural fibres, have a soft natural feel and offer
high levels of absorbency. Our competitive cost position provides
Sappi with the platform to build the business further with our key
strategic partners, while providing our customers with unmatched
quality, consistency and scale.
Sappi has also invested in its Speciality Packaging portfolio. SAPPI
TUGELA MILL, situated in Mandeni near the Tugela River in KwaZulu-
Natal, produces pulp for its own consumption, containerboard and
lignosulphonate for export. The mill is located near the ports of
Richards Bay and Durban, allowing for easy access to global markets.
Containerboard is used for agricultural and industrial packaging.
Agricultural uses include packaging for citrus and subtropical fruits,
frozen foods and long stem flowers; industrial uses include packaging
for electronics, household goods, car parts and other heavy-duty
applications. The Tugela Mill plays a major role in leading packaging innovation
in South Africa that allows customers to develop lightweight
boxes which will retain their strength in cold-storage conditions. In
doing so we contribute to GDP as the exports from South Africa
increase into the world markets.
Tugela Mill’s lignosulphonate product is an exciting addition to the
product range and we supply to the concrete admixture manufacturing,
clay brick/ceramic tile manufacturing and road dust suppression
markets. This forms part of Sappi’s new business segment of
Biomaterials with an exciting future.
KwaZulu-Natal also houses SAPPI STANGER MILL, unique in
South Africa in that it uses bagasse as its basic raw material in the
manufacture of office paper and tissue wadding. Situated along
the North Coast of KwaZulu-Natal, the mill is ideally situated to take
advantage of the ready supply of bagasse from the neighbouring
Gledhow Sugar Company.
The well-known consumer office paper brand Typek, with its distinctive
red and white packaging, is manufactured
at Stanger. A R100-million strategic investment in
sheeting and finishing equipment upgrades has
ensured a quality product which is used in offices,
schools and other business environments. Paper
made from renewable resources remains an important
communication and creative medium that will
continue to support office workers and children in
a fast-paced world.
Sappi remains relevant in a changing world set
to deliver value-adding products to its customers.
Website: www.sappi.com
41 KWAZULU-NATAL BUSINESS 2017/18
KwaZulu-Natal is ideally
situated to grow its
maritime economy
Building a Smart Port City at Durban.
National government wants to see the
Oceans Economy contribute R29-billion
to the national gross domestic product by
2019 and a possible R177-billion by 2033.
This is part of the broader National Development
Plan (NDP).
Important sectors that could contribute to economic
growth and increased employment are shipbuilding
(something that KwaZulu-Natal already does),
the creation of a merchant fleet and the development
of South Africa’s small harbours into engines of economic
growth and opportunity. The last-named idea
is the subject of a major project being driven by the
national Department of Public Works. An important
element in securing all of this growth will be the creation
of reliable marine governance and security.
Other important sectors that fall under the Oceans
Economy are the oil and gas sector (including the servicing
of rigs and vessels) and aquaculture. Several
fish-farming projects are planned for KwaZulu-Natal
(mostly with kob) and a catfish feasibility study is
under way.
Advantages
With its two important ports, KwaZulu-Natal is ideally
located to take advantage of the focus on the maritime
economy. Between them, Durban and Richards
Bay handle 78% of South Africa’s cargo tonnage.
The Dube TradePort located inland expands the
capacity of the province to import and export goods.
KWAZULU-NATAL BUSINESS 2017/18
42
SPECIAL FEATURE
The principal component of the Dube TradePort is a
new international passenger and cargo airport but
rail and road links up and down the coast to the
two major sea ports make it easy to switch cargo
between different modes of transport. Large quantities
that arrive by sea can be dispersed in smaller
volumes at speed by air.
Durban’s annual throughput of containers is
about one-million, more than 60% of the country’s
total. A priority is to improve loading and unloading
times: there is a Back-of-Port Interface Local Area
Plan which would turn much of the area south of
the port into a logistics section.
As part of the national plan that aims to get
things done in a targeted way (Operation Phakisa)
the Port of Durban is upgrading its dry dock and
buying new cranes to speed up operations.
There is also an ambitious plan to dig out the
old airport south of the city, connect the big hole
to the sea and make it a harbour – this would allow
Toyota to roll their new vehicles directly from the
factory floor to the hold of a ship.
The Port of Durban is already home to a variety of
maritime companies. South African Shipyards (SAS)
is an experienced manufacturer of ship hulls. To
improve their competitiveness, three South African
shipbuilders (SAS, Damen Shipyards Cape Town and
Nautic Africa) have agreed to pool their resources
on contracts. Luxury boat-builder Austral Marine
has been acquired by Nautic Africa which is known
for its military boats.
Cooperation pacts like this one might be a good
template for the nation’s ports and the rig/boat
repair and servicing sector. With the Angolan and
Mozambique oil and gas industries growing bigger
every day, it is unlikely that one port could cope
with demand anyway. The creation of a marine
manufacturing and repair cluster at Richards Bay is
being considered.
Richards Bay, apart from being the country’s
main site for the export of coal, is also a registered
Industrial Development Zone (IDZ) and consequently
attracts a range of investors. The fact that
port IDZs are a key plank in national energy policy
(which links to the Oceans Economy plan) was emphasised
in late 2016 with the allocation by the
Department of Energy of two Liquefied Natural
Gas (LNG) plants: one option for private investors
to build and operate such a plant is at the Port
of Richards Bay in KwaZulu-Natal. The other option
has been allocated to the Coega Industrial
Development Zone.
The Port of Richards Bay has added a new
berth on average every second year. A strong
selling point for the port is its deep-water infrastructure,
encompassing a maximum permissible
draught of 17.5 metres and the huge Richards Bay
Coal Terminal, which is the country’s primary site
of export for coal. The Port of Richards Bay has
six cargo-handling terminals and handles 60% of
South Africa’s seaborne cargo.
Planning ahead
Delegates to the second annual Durban Maritime
Summit in 2017 came from a wide variety of sectors
including government, academia, shipping,
logistics companies, port management, project
financing, insurance and international maritime
organisations.
The topics covered at the first such event in
2016 illustrate how all-encompassing is the relatively
new field of the “Oceans Economy”, and what great
potential there is for economic growth and job creation
through maritime activity. Subjects included:
maritime skills development and training, maritime
security, maritime enterprise development, making
the marine manufacturing and the transport sectors
more competitive.
The development of the cruise-liner industry is
also under the spotlight. The conference is a joint
venture between the eThekwini Maritime Cluster
and the eThekwini Municipality. The annual conference
is intended to position Durban as a Smart Port
City in line with the National Government Growth
Plan (NGP) 2030.
The Maritime School of Excellence trains students
for the Sharks Board, Transnet Port Terminals
(TPT), Transnet National Ports Authority (TNPA) and
for the wider field of maritime and logistics employers.
More than 250 students graduated in 2016 as
cargo coordinators, marine pilots, tug masters and
operators of lifting equipment.
43 KWAZULU-NATAL BUSINESS 2017/18
PROFILE
A global leader
in bather protection
Keeping bathers safer for five decades.
The KwaZulu-Natal Sharks Board is a public entity
(under the auspices of the KwaZulu-Natal
Department of Economic Development, Tourism &
Environmental Affairs). The KwaZulu-Natal Sharks
Board Maritime Centre of Excellence (KZNSB) is a
global leader in bather protection against sharks
while minimising environmental impact.
The KZNSB with over 50 years of experience, is
the oldest and only organisation in South Africa
dedicated to providing bather protection against
sharks. Key supporting activities include educational
outreach and marine tourism programmes
to create awareness about safe bathing and the
marine environment.
The KZN Sharks Board Maritime Centre of Excellence:
• Protects bathers against shark attacks
• Conducts biological research on sharks
• Educates the public about the activities of the
KZN Sharks Board
• Informs the public about the role of sharks in the
marine environment
• Facilitates skills development, enterprise development
and community engagement.
Triple Helix Model
Skills Development
The KZNSB has achieved multiple accreditations.
Accreditation is an affirmation of KZNSB’s
highest standards of teaching and learning
and bestows our graduates with internationally
recognised certificates.
The student and graduate placement remains a
key differentiator between KZNSB and other institutions.
The Co-operative Education Unit has
successfully gained industry recognition resulting
in a high percentage of students and graduates
attaining work placements.
Community Engagement
Community Engagement remains central to the
“Triple Helix” model and several key projects have
been delivered including boatbuilding projects
at Enkovukeni and EMdlebeni. Careers expos have
been held in almost every district in the province.
The Umfolozi River project funded to the tune of
R6.1-million demonstrates our leading position of
being a community-oriented organisation.
Enterprise Development
The Maritime Centre of Excellence’s Enterprise
Development’s overall objective is to contribute
towards the creation, growth and sustainability
of small businesses in the maritime sector thereby
creating jobs and resulting in the growth of
the maritime sector’s contribution towards the
province and country’s GDP.
CONTACT INFO
Address: 1a Herrwood Drive, Umhlanga,
KwaZulu-Natal, South Africa
Tel: +27 31 566 0400 | Fax: +27 31 566 0493
Website: www.shark.co.za
KWAZULU-NATAL BUSINESS 2017/18
44
INTERVIEW
Mthokozisi Radebe
BIOGRAPHY
Keeping bathers safe
and promoting skills
development for the
Oceans Economy
The CEO of the KwaZulu-Natal Sharks Board Maritime
Centre of Excellence, Mr Mthokozisi Radebe, shares insights
into how the role of his organisation is expanding to meet
new demands.
Please tell us about the training function of the KZNSB.
The initial focus of Maritime Centre of Excellence was on maritime skills
development. The evolution of national priorities such as Operation
Phakisa – Oceans Economy has seen its operating model reshaped
into the “Triple Helix” of Skills Development, Enterprise Development
and Community Engagement.
Skills Development centres on the enrolment into maritime occupations,
graduate placements and the development of maritime
teaching practitioners. The enrolments into maritime have topped 1
500 since 2012. KZNSB has achieved multiple accreditations from the
Transport Education Training Authority (TETA), ICDL Foundation, ETDP
SETA, and (merSETA) among other training quality assurance bodies.
Student and graduate placement remains a key differentiator between
MCoE and other institutions. The Co-operative Education
Mthokozisi “Mthoko” Radebe
is the current CEO of the
KwaZulu-Natal Sharks Board
Maritime Centre of Excellence,
and the first black person to
occupy this office. He oversaw
the establishment of the Maritime
Centre of Excellence Unit.
Mthoko earned an LLB degree
from the University of KwaZulu-
Natal and is currently studying
towards a Master’s in Maritime
Law. He has served as Director
and Partner at Norton Rose
Fulbright and been a director,
CEO or chairman of several
regulatory and business bodies.
KWAZULU-NATAL BUSINESS 2017/18
46
INTERVIEW
Unit within MCoE has achieved successes in
gaining industry recognition. The ongoing
National Skills Fund (NSF) Graduate and Student
Placement Project is one of many placement
projects underway. Graduate and Learner placements
for students with commercial diving and
boatbuilding (both hearing and deaf) stands at an
unprecedented 100%.
Community Engagement remains central to the
“Triple Helix” model and several key projects have
been delivered including boatbuilding projects at
Enkovukeni and Emdlebeni. Career expos have been
held in almost every district in the province.
In terms of Enterprise Development, a funded
project to build 21 boats for use for business purposes
has been approved. Furthermore, KZNSB will
be staging an Ocean Festival in September 2017. An
incubation programme especially for women- and
youth-owned businesses is being designed.
How do you maintain safe swimming while
at the same time reducing fatality rates of
fish and dolphins?
In October 2015 the KZNSB Operations Division
rolled out the mixed gear concept of reducing the
number of nets at a protected beach and replacing
them with drumlines.
This has reduced the capture of non-target species
by up to 50% during the nine years that it has
been in place at 20 beaches. The latest change
resulted in the total length of netting along the KZN
coast being reduced from 23.27km to 22.12km. The
number of drumlines deployed increased from 79
to 107. The division is currently in discussions in an
effort to reduce the capture of humpback dolphins.
What are some of the achievements of the
KZNSB?
The last shark attack/incident to take place off a protected
beach in KZN occurred in 1999. This incident
was not fatal. There have not been any fatal shark
attacks off KZN’s protected beaches since shark
safety gear was first introduced in the late 1950s.
We reached a significant milestone in August 2014
when we celebrated 50 years of bather protection
in KwaZulu-Natal.
How important is research in the business
of the KZNSB?
The Research Division is one of the most important
divisions as it conducts and facilitates various
scientific activities, which include monitoring,
documenting and dissecting all catches, collecting
biological samples, investigating shark attacks and
investigating new non-lethal alternatives to the current
shark safety gear. The research results address
bather protection, recording of catches, reduction
in environmental impact and biological research.
Please expand on the value of partnerships
to the KZNSB.
The Transport Education Training Authority
(TETA) funded Freight and Customs Compliance
learnerships and the training of 30 deaf students
that KZNSB is undertaking in
collaboration with Whisper
Boatbuilding Academy for the
Deaf. A community development
programme is underway
at Enkovukeni in partnership
with SA Maritime Safety
Authority (SAMSA). There are
many other strategic partnerships
including the Commercial
Diver Programme in partnership
with the Sub-tech Group
and KwaDukuza Municipality,
Maritime Programme with
EThekwini TVET College.
47 KWAZULU-NATAL BUSINESS 2017/18
INTERVIEW
Member-oriented
scheme strengthened
by high reserves
Christo Becker, Principal Officer of Selfmed, shares some
insights on the medical insurance industry.
Christo Becker
BIOGRAPHY
After completing his studies in
1996, Christo worked as a paramedic
in Cape Town and Port
Elizabeth (where he was seconded
to run the Eastern Cape
operation for Netcare911). He
furthered his career in healthcare
when he was appointed as
hospital manager for a hospital
in the Netcare Group. Christo
went on to manage a number
of other hospitals before joining
Selfmed Medical Scheme as the
Principal Officer in 2014.
Please provide an overview of Selfmed, including the
history and size of the organisation.
Selfmed Medical Scheme was established more than 50 years ago and
it is one of the older schemes in South Africa.
Providing coverage for about 8 000 principal members and 13 500
beneficiaries, we are one of the smaller schemes and we focus on providing
individual attention to our members. Our size allows us to do this.
Could you outline the different options?
Members are able to choose one of five medical aid options:
SelfNET – this entry-level product is our most affordable as it covers
a narrow band of benefits.
MedXX1 – a hospital plan that extends beyond the prescribed minimum
benefits and pays out at 100% of scheme rates for covered
in-hospital treatment and in-hospital doctor’s consultations.
Selfsure – an option that provides in-hospital and out-of-hospital
benefits and is a great choice for a family with young children.
Med Elite – a broader hospital plan that covers additional conditions
including greater coverage for oncology expenses, hip, knee and
back operations.
Selfmed 80% – 80% of bills relating to a wide range of conditions
are covered.
What is the solvency ratio of Selfmed and how does this
compare to other medical aid schemes?
Selfmed has a solvency ratio of 100.37%, which is way more than the
25% mandatory requirement. We are one of the top schemes in the
country in terms of our reserves.
What differentiates your offerings from those of your
competitors?
Selfmed has a very strong member focus. As someone who has
previously worked as a paramedic and a hospital manager, I’m
passionate about healthcare. All of us share the passion and want
KWAZULU-NATAL BUSINESS 2017/18
48
INTERVIEW
to ensure our Selfmed members
receive good healthcare.
We are able to attend to requests
for ex-gratia payments
on a case-by-case basis and our
members appreciate knowing
that their health conditions are
not compared to other people’s,
but are evaluated individually.
Furthermore, because our
cash reserves are so high and
our systems (administration, call
centre and marketing, etc) are
managed internally, members
feel confident about the level of
service we can provide.
What is your view of the
National Health Insurance
(NHI) scheme and how do
you think it will impact private
healthcare in South
Africa?
We all support the idea that
healthcare should be accessible
to all, however, a number of issues
weren’t addressed in the White
Paper. These include what the basket of care will
look like and who will provide the care.
This is the first phase of a 14-year implementation
period and it is likely that the parameters of the NHI
will change during its implementation.
A specific risk for private healthcare providers
relates to the introduction of a one-payer system.
I don’t think people are going to be happy to take
the money they usually pay into a medical aid and
pay it into a centralised state-run system.
Given that the UK, with its lower unemployment
rate and higher number of taxpayers and health
professionals, struggles to deliver the desired level of
care via its National Health Service, it is unlikely that
that South Africa will have the reserves to roll out a
system that will rival private healthcare.
How does the South African healthcare
system compare internationally?
I believe that the private healthcare system in South
Africa – private medical care and medical insurance –
is equal to the best in the world. Many of our doctors
and medical professionals go overseas for training or
to attend medical conferences and we have some of
the most advanced medical equipment in the world
in our private hospitals. Furthermore, in countries like
the USA, medical care is far more expensive than it
generally is in South Africa.
Ideally, representatives of the entire healthcare
industry here should get together to discuss challenges
and collaborate on viable ways to solve
these so that quality healthcare can be made
accessible to more people.
Increased legislation, particularly legislation
relating to prescribed minimum benefits, has
meant that medical schemes are under increased
pressure though.
www.selfmed.co.za
49 KWAZULU-NATAL BUSINESS 2017/18
ADVERTORIAL
ADVERTORIAL
Nedbank’s new brand promise focuses on client
engagement Nedbank’s that new will brand create a promise better understanding
across focuses clients’ on personal client engagement and business banking thatneeds
will create a better understanding
Siphamandla Ndhlovu, Provincial General Manager in KwaZulu-
Natal, Kevin explains de Beer, how Nedbank Nedbank Provincial works General with communities Manager in the to deliver
banking Free State solutions. and Northern Cape, explains how Nedbank
works with communities to deliver banking solutions.
Our expertise will help clients navigate
challenges and meet their goals
Nedbank continues to build on its clientcentred
strategy aimed at delivering
distinctive experiences and channels
of choice for businesses and clients in
KwaZulu-Natal. This has seen the bank
simplify and enhance its product offering
in line with its 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.
Since 2012 Nedbank has launched several first-tomarket
innovations, such as the award-winning
Nedbank App Suite, the home loans online
digital channel and Market Edge, as well as New
Image outlets concept in communities locally and
nationally. “Working with communities is entrenched
in our values through community development, skills
development, education and job creation, as well as
environmental conservation. These play a vital role in
building a sustainable economy and vibrant society.
We believe our fast-growing presence in communities
goes a long way towards enabling greater financial
inclusion while contributing towards economic
growth,” concludes Ndhlovu.
Nedbank also leverages its strong market positioning
with businesses and the public sector, encouraging
them to bank their employees through its employee
banking offering. This forms part of Nedbank’s
Banking and Beyond philosophy, which is aimed
at supporting business owners to make informed
decisions that will enable them to grow and take their
businesses to the next level.
This is a unique service for clients, with financial
fitness training a key aspect of the offering. Our
wide range of products and services include the
Nedbank Ke Yona Plus transactional account, which
comprises funeral cover, a personal loan facility, the
JustSave Account and the Send-iMali money transfer
solution, enabling clients to transact, borrow, save
and take out cover.
To encourage the youth to save and build their
financial fitness from an early age the Nedbank 4me
offering enables the youth to transact and save with
the benefit of earning preferential interest. Nedbank
4me comprises a full transactional banking account
with no monthly fees, free initial transactions and
thereafter reduced pay-as-you-use pricing, free
eNotes and self-service banking.
This wide range of offerings from Nedbank makes
banking more accessible to all.
Nedbank has also invested in innovative alternative
distribution outlets through its strategic partnership
with Boxer stores. These partnerships, which span
over 15 years, enable communities to get access to
financial services every day of the week, even Sundays
and public holidays.
Should you be interested in learning more about how
Nedbank can assist you grow your wealth and see money
differently, for more information call Siphamandla
Ndhlovu on +27 83 637 8552 or visit
www.nedbank.co.za.
ADVERTORIAL
ADVERTORIAL
Making Nedbank’s it easier new to brand do business promise with Nedbank
Business focuses Banking on client engagement that
Siphamandla Ndhlovu, KwaZulu-Natal Provincial Business Banking
will create a better understanding
Manager, explains how Nedbank can help business owners see money
differently. Kevin de Beer, Nedbank Provincial General Manager in the
Free State and Northern Cape, explains how Nedbank
works with communities to deliver banking helps solutions. with continuity in case there is a change of
relationship from a Business Manager point of view.
Our approach is to understand the client’s business
holistically and from that understanding, design tailormade
banking solutions to suit the business needs
of the client. Our “Wholeview Banking” approach
enables us to understand the client’s cash receipts and
payment cycle, their global trade transactions, foreign
exchange hedging transactions and transactional
banking needs which include cash handling. From this
information, we are able to provide banking, payment
and funding solutions that meet the client’s needs. We
are therefore seen as a trusted partner by the business
we serve as our banking solutions match the client’s
needs and means.
“At Nedbank Business Banking we
believe that you need a financial
partner who not only understands your
circumstances and aspirations, but also
provides you with relevant solutions
and a banking experience that is hasslefree.
This allows you to concentrate on
what’s most important to you – running
your business,” says Ndhlovu.
At the core of our Business Banking offering in
KwaZulu-Natal is a relationship-based model. We
believe in building a relationship with our client
which helps elevate trust which becomes the solid
foundation on which our banking decisions are made.
A Business Manager is the key entry point into the
bank. The Business Manager is supported by a Client
Service team who ensure delivery of the facilities
the client is afforded. The Client Service team also
becomes a repository of client information where
the client history and track record are held. This
Our banking offering covers a broad range of financial
and advisory services to small and medium businesses
in all sectors of the economy including Agriculture.
We pride ourselves in our ability to make quick credit
decisions as our Credit teams are located in the
markets that we serve as opposed to being at a central
location that is removed from the local market.
Furthermore, based on the relationship foundation
and our understanding of the client’s needs, we are
able to extend our offering to the business owner
in their personal capacity, their family and staff. In
doing this, we answer Nedbank’s call to use our
financial expertise to do good for individuals, families,
businesses and communities within which we operate.
Should you be interested in taking your business to its
next level and improving staff engagement, and for more
information about Nedbank’s specialised service offering
please call Siphamandla Ndhlovu on +27 83 637 8552
or visit www.nedbank.co.za.
ADVERTORIAL
ADVERTORIAL
Nedbank’s new brand promise
focuses Expertise on in small client business engagement aimed at that stimulating
will growth create a better understanding
Kevin de Beer, Nedbank Provincial General Manager in the
Nedbank’s Melanie Reddy, Provincial Retail Relationship Banking Manager,
Free
explains
State
how
and
Nedbank
Northern
is committed
Cape, explains
to partnering
how Nedbank
with small businesses
works for growth. with communities to deliver banking solutions.
For example, the Small Business Friday initiative, in
association with the National Small Business Chamber,
seeks to encourage everyone in South Africa to rally
behind and support small businesses. The initiative
calls on everyone to make a conscious decision to
vote for small businesses through their hearts, feet
and wallets; not only on Small Business Friday which is
one particular Friday in a year, but every day.
“Small businesses are the mainstay of the
economy. Nedbank has, over the years,
instituted various interventions aimed at
giving support to the small-business sector.
Over and above our small-business services
solutions, we provide small-business
owners with support that goes beyond
banking, freeing up their time to truly focus
on running their businesses,” says Reddy.
Nedbank has built a solid reputation as a bank for
small businesses through initiatives such as Small
Business Friday, free small-business seminars and
the SimplyBiz.co.za platform – all geared to support
the small- and medium-sized enterprises sector.
Our offering expands to the Professional Banking
segment of the market. 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.
SimplyBiz.co.za is a free-to-join value networking
portal designed especially for small businesses. The
online portal helps small businesses improve their
business administration skills, keep up with the latest
trends, network with other small businesses and
share ideas.
Should you wish to tap into our small business expertise
to help your business goals, why not get in touch with
Nedbank’s Small Business Services. Call Melanie Reddy
on +27 31 364 2045 or send an email to
Melanier@nedbank.co.za.
ADVERTORIAL
ADVERTORIAL
Nedbank’s new brand promise
Making focuses banking on client accessible engagement to all that
will create a better understanding
At Nedbank we believe in delivering a choice of distinctive clientcentred
Kevin de banking Beer, Nedbank experiences Provincial that create General deep, enduring Manager relationships
in the
with Free our State clients, and Northern says Sean John, Cape, Provincial explains Sales how Nedbank Manager, KwaZulu-
Natal works Branch with communities Networks. to deliver banking solutions.
Our distribution presence in KZN sees us with 85
traditional branches, 32 kiosks in Boxer stores and 33
New Image branches. Nedbank has embarked on a
distribution strategy to convert all our branches to
New Image outlets. We have also increased our ATM
distribution to 630 and Intelligent Depositors to 90 in
the province for your convenience.
To make banking convenient we have eight Sundaytrading
branches in key centres in the province.
Nedbank’s client-centred approach has seen the bank
intensify its efforts in delivering a distinctive client
experience through innovation.
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.
“Since 2012 Nedbank has launched several firstto-market
innovations, such as the award-winning
Nedbank App Suite, the home loans online digital
channel and Market Edge, as well as New Image
branch outlets,” adds John.
For more information on our offerings please contact
Sean John at SeanJ@nedbank.co.za,
+27 31 364 1933.
As such the bank’s strong relations with government,
organised business and communities remain a key focus
in growing its client base.
Our presence in the KZN community goes a long way in
allowing for greater financial inclusion while contributing
to social upliftment and economic development.
Nedbank Ltd Reg No 1951/000009/06. Authorised financial
services and registered credit provider (NCRCP16).
OLD MUTUAL ENABLING
POSITIVE FUTURES
IN KWAZULU-NATAL (KZN)
Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling
positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span
investment, life assurance, asset management, banking, healthcare and general insurance.
To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership
boards in each province to serve as links between the province and our business. These Provincial Management
Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a
positive impact on the future of this province and its people.
MEET AJ DLAMINI
KZN Provincial Management Board, Chairperson
” People don’t care how much you know until they know how
much you care” by Dr John C Maxwell
As the KZN chairperson, I undertake to:
• Ensure that collaboration is driven in the true sense of its meaning, outside of boardroom discussions.
• Working toward a unified Old Mutual with multiple business units working toward the common goal
of providing financial solutions to individuals.
• Ensure that the KZN province gets even more involved in the communities in which we work.
GET IN TOUCH: email KZNPMB@oldmutual.com
ombds 4.17.10479.02
INVESTMENTS I SAVINGS I PROTECTION
Old Mutual is a Licensed Financial Services Provider
OUR BEST ADVICE TO YOU IS:
ADVICE MATTERS
As custodians of the savings and
investments of millions of South
Africans, we know that ADVICE
MATTERS when making financial
decisions.
How to choose the right financial adviser
A good financial adviser is a professional who
considers all your financial needs and goals, and has
the knowledge, experience and support to give you
Advice That Matters.
1. Ask to see the adviser’s training credentials and FAIS
accreditation.
2. Choose a financial adviser who represents a
respected financial institution.
3. Look for a financial adviser who has access to a
range of specialist support services.
NEED HELP WITH RETIREMENT AND RISK
COVER OPTIONS FOR YOUR EMPLOYEES?
Old Mutual Corporate provides
industry-leading retirement fund
solutions, pre- and post-retirement
investments, group death, disability,
critical illness and funeral cover
as well as financial education and
consulting services to a broad range
of public and private businesses and
institutions, from small businesses to
large corporates.
This can also be accessed via
Old Mutual SuperFund, which provides a comprehensive
employee benefit solution that is flexible enough to meet
the needs of all types of businesses and their employees.
NEED A ONE-STOP-SHOP INTEGRATED
FINANCIAL SERVICE?
The Old Mutual Mass Foundation Cluster (MFC) has an
integrated approach to financial services and offers
customers solutions to meet their needs. This spans a
transactional account called the Old Mutual Money
Account, savings products, life and disability cover, as
well as funeral cover, debt management solutions and
short-term insurance. Our aim is to
help our customers manage their
finances and to plan and provide
a better future for themselves and
their loved ones.
NEED DIRECT CAR & HOME INSURANCE?
Old Mutual iWYZE offers affordable and reliable
insurance cover to protect everything you’ve worked
for. The wide range includes car insurance, home
insurance as well as value-added products
such as iWYZE Scratch
& Dent and iWYZE
Tyre & Rim Cover.
iWYZE, the wise
insurance choice.
NEED FUNERAL COVER?
With Old Mutual’s range of
Funeral Plans (Care, Standard and
Comprehensive+) customers can cover
themselves, their spouse/partner,
children, parents, parents-in-law and
extended family members. We also
have a plan for single parents to
cover themselves and their dependent
children without having to pay for a spouse they do not
have.
You can choose the amount of cover you need, who
you’d like to cover and whether you’d like to add
additional benefits. You can get funeral cover for up to
R70 000.
NEED HELP WITH SAVING FOR BOTH
LONG AND SHORT TERM?
To make it easy for customers to
save from as little as R170 a month,
Old Mutual offers the innovative
2-IN-ONE SAVINGS PLANS.
This product with its two pockets allows customers
to save for their long-term goals, like their children’s
tertiary education, while they have access to their funds
in emergencies.
NEED HELP WITH HOLISTIC FINANCIAL
PLANNING AND SAVING?
Old Mutual Personal Finance specialises in providing
holistic financial planning - Advice That Matters. We
offer a wide range of wealth creation and protection
products. For example:
Old Mutual Invest Tax-Free Savings Plan, which offers
a low, entry-level premium and refunds you 50%
of admin charges when you reach your maximum
premium limit in a year.
NEED LIFE AND DISABILITY COVER?
Old Mutual Personal Finance marketleading
risk protection range offers
the most comprehensive illness range
with clear claim definitions, including
GREENLIGHT.
NEED TO PROTECT YOUR BUSINESS?
Old Mutual Insure are experts in agriculture,
engineering and marine insurance. We
offer a range of insurance solutions to
protect your business against everything
from fire and theft to business interruption and legal
liability costs.
NEED DEBT CONSOLIDATION AND
TRANSACTIONAL BANKING?
Through Old Mutual Finance you can gain access to:
• My Money Plan, which enables
you to consolidate your debt, and
choose from a range of personal
loans at a fixed interest rate.
• Money Account, which links a
transactional (SWIPE) account and an investment
(SAVE) account so you automatically invest a
set amount into a unit trust every time you make
a purchase with your card. *(In association with
Bidvest Bank Ltd)
NEED HELP WITH INVESTING?
Old Mutual Wealth is a fully integrated, advice-led
wealth management business. We
have a personalised and integrated
approach to grow and preserve
your wealth over time. Our specialist
capabilities include Private Client
Securities, Old Mutual Multi-Managers, Fiduciary
Services and Offshore Investing.
We partner with leading financial planners to provide
you with a tailored lifetime wealth plan to help you
achieve the best outcome in line with your objectives,
goals and aspirations.
NEED A FINANCIAL PARTNER THAT
MAKES A POSITIVE IMPACT ON SOCIETY?
Old Mutual is deeply committed to playing a significant
role in building a strong and financially inclusive South
Africa.
As a responsible business committed to caring for our
communities, the Old Mutual Foundation
addresses socio-economic challenges
through investing in:
• Small business development and
entrepreneurship
• Youth unemployment through skills training
• Strategic education initiatives
• Caring for vulnerable communities
In 2016 alone the Old Mutual Foundation invested
R25 686 172 in various community projects across our
nation (actual grant funding payments made during
2016).
In KZN the Old Mutual Foundation invested a
total of R5 304 869 across its various community
empowering portfolios in the region.
Our staff are the hearts and hands of Old Mutual
in the communities we operate in, and we support
our staff volunteers through various programmes.
In KZN, 36 organisations have received a total
R1 411 520 as a result of staff volunteering efforts.
INVESTMENTS I SAVINGS I PROTECTION
ombds 4.17.10479.02
Old Mutual is a Licensed Financial Services Provider
OLD MUTUAL FOUNDATION CASE STUDIES IN KZN
The Clothing Bank (TCB), a non-profit organisation started in 2010, has
quickly grown into one of the most successful social enterprises in South
Africa, winning international awards and recognition for their work. Their
straightforward business model recruits unemployed mothers and teaches
them to set up and manage their own small micro-enterprises using donated
clothing and accessories from major retailers as start-up stock. Not only
does their enterprise training cover core business principles, but more
importantly most women are supported out of debt and deep personal
crisis with counselling and critical life skills. The Old Mutual Foundation has
assisted The Clothing Bank to set up branches in Paarl, Gauteng and most
recently provided R500 000 to open up a successful branch in Durban.
The MASISIZANE FUND focuses on enterprise
development and job creation to help alleviate poverty
and improve food security in South Africa. This is
achieved through encouraging entrepreneurship and
capacity development and financing of micro, small
and medium enterprises (SMMEs). Preference is given
to SMMEs with 51% plus ownership by women, youth
or people with disabilities.
Masisizane Fund disbursed R147m worth of funds
in 2016 through soft loans in the three high-impact
sectors and facilitated the creation of 862 jobs against
a target of 625 jobs.
In KZN Masisizane disbursed funds of R26m across
7 clients creating 227 new jobs.
MASISIZANE CASE STUDY IN KZN
LHL Engineering Natal (Pty) Ltd is a 100% black owned
steel engineering company. The operations are based
in New Germany industrial area, KwaZulu-Natal. The
business was acquired by the current owner in May
2015 which has transformed the company to a level 1
B-BBEE company.
LHL was established in 1969 with a focus on the
manufacturing of steel tanks, pressure vessels, reactors,
condense columns and heat exchangers. Since the
business was acquired, there has been a move towards
structural and general steel fabrication.
The company is 100% black owned. One of the owners
is a chemical engineer with 30 years’ experience in the
chemical industry. The other is the managing director
and has been with LHL since 1981 when he started as
a design draughtsman.
Masisizane Fund Loan - R4.98 m
Number of Jobs - 49 Jobs Facilitated
Geographic Location - Urban
Sector - Supply Chain
WANT TO HELP BUILD THE PLATFORM
FOR FINANCIAL INCLUSION?
Financial education is the gateway to financial
inclusion.
The Old Mutual Financial Wellbeing programme
promotes financial literacy and awareness across
market segments in line with the Financial Sector
Charter. We offer highly effective financial education
and support programmes to help South Africans take
control of their finances.
Between 2007 and end of 2016 more than 589 808
people were reached through face-to-face workshops
held for communities as well as employees in the public
and private sector.
In 2016 more than 88 000 individuals participated in
our On the Money workshops nationally, with 24 674
participating in our Fin360 programmes.
In KZN, 18 569 individuals were trained in our
Old Mutual On the Money programmes.
For more information, contact AJ Dlamini at
email KZNPMB@oldmutual.com
KEY SECTORS
Overview of the main economic
sectors of KwaZulu-Natal
Mining 60
Agriculture 62
Sugar 64
Manufacturing 65
Forestry and paper 72
Agriprocessing 74
Automotive 75
Oil and gas 76
Water 78
Energy 80
Tourism 82
Education and training 84
Banking and financial services 86
Development finance and
SMME support 88
OVERVIEW
Mining
Miners and processors are investing in new mines and plants.
SECTOR INSIGHT
A R4.5-billion titanium dioxide
pigment plant will open
in the Richards Bay Industrial
Development Zone.
• Tronox has launched a
multi-billion-rand mine.
• A provincial Mining
Beneficiation Strategy is
being finalised.
KwaZulu-Natal’s mining sector is concentrated near Richards
Bay where mineral sands are mined and in the north-west of
the province where coal is found around towns like Dundee
and the aptly named Newcastle.
The Port of Richards Bay also plays a major role in the national
mineral sector in that the Richards Bay Coal Terminal is the country’s
main export portal.
The development of a titanium dioxide pigment plant was announced
in 2017 by Nyanza Light Metals and its technology partner,
Avertana of New Zealand. The use of stockpiled waste slag (from mines
in Mpumalanga) sets this R4.5-billion project apart. Normally the process
requires feedstock made up of high-grade rutile and ilmenite, but
the new technology works with a much lower grade of titanium dioxide
pigment content. Other products will include gypsum, aluminium
sulphate and magnesium sulphate. Construction will begin in 2018.
Tronox, which is listed on the New York Stock Exchange, officially
opened its new KZN Sands Fairbreeze Mine south-west of Richards
Bay in April 2016 with the Premier of the province in attendance.
Tronox makes pigment which is used in paint and plastics. Fairbreeze
and the associated Central Processing Complex in Empangeni will
produce titanium dioxide. South African resources company Exxaro is
a 45% shareholder in Tronox. The
initial value of the investment is
R3.3-billion but further monies
may be committed to the
processing plant.
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.
Feedstock for the slag furnaces
near Empangeni is ilmenite and
it produces zircon and pig iron,
among other mineral products.
China is an enthusiastic buyer of
zircon but growth in that country
has slowed.
A new name appeared in the
mining environment in 2015, but
KWAZULU-NATAL BUSINESS 2017/18
60
OVERVIEW
South32 is simply an offshoot of
BHP Billiton, so the Hillside aluminium
smelter at Richards Bay
run by South Africa Aluminium is
now a 100% South32 asset. Most
of the product (high-quality primary
aluminium ingot) is exported
but some liquid metal form
is sent to Isizinda Aluminium
which supplies Hulamin, a
company that has had a rolling
mill in Pietermaritzburg since
1949. Hulamin is the only major
aluminium rolling operator in
the region and it makes rolled
products and extrusions.
The provincial government
has developed a KwaZulu-Natal
Mineral Beneficiation Strategy
which will be presented to provincial
government departments
in the course of 2017. Coal and
phosphate are thought to be the
first areas of focus.
Other processing facilities in
the province include the steel
plant owned by Arcelor Mittal in
Newcastle and Safa Steel’s metalcoating
factory in Cato Manor.
Tata Steel KZN’s high-carbon
ferrochrome plant at Richards
Bay went into business rescue
and then liquidation before
being bought by Luxembourgbased
Traxys Africa in the middle
of 2016, after a court ruled in its
favour. Traxys has chrome mines
in Mpumalanga and Limpopo
provinces. Tata Steel did not have
its own mines.
RBM mines the mineral
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.
Coal
Some of the coalfields of the province have been revived and the
export facilities at Richards Bay make a massive contribution to the
functioning of the country’s mining sector.
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).
Buffalo Coal Corporation (which used to be called Forbes Coal) has
Canadian roots and has two assets near Dundee: Magdalena Colliery
and Aviemore Colliery. The company has two processing plants.
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 marble.
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.
CONTACT INFO
Chamber of Mines South Africa: www.bullion.org.za
Council for Geoscience: www.geoscience.org.za
Geological Sciences, University of KZN: www.geology.ukzn.ac.za
National Department of Mineral Resources: www.dmr.gov.za
Southern African Institute of Mining and Metallurgy:
www.saimm.co.za
61 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Agriculture
Heavy rains have returned to boost agricultural production.
The long-term drought which came to a very wet end in KwaZulu-
Natal nevertheless had very serious effects on the agricultural
sector. The provincial government reported that 6.3% fewer
households were directly involved in agriculture in 2016 compared
to 2011, and this was largely attributed to drought conditions.
Despite this setback, the KwaZulu-Natal’s agricultural sector is
very strong, taking advantage as it does of the province’s fertile and
varied soils. Eighteen percent of KwaZulu-Natal’s 6.5-million hectares
of agricultural land is arable and the balance is suitable for the rearing
of livestock.
Vegetables 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. The sugar sector is dealt with separately in this publication.
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 Mpumalanga.
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.
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
SECTOR INSIGHT
Agri-villages and agri-parks
are planned to boost rural
economies.
• 18% of South Africa’s milk
comes from KwaZulu-
Natal.
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.
Enterprise iLembe, the development
arm of the iLembe
KWAZULU-NATAL BUSINESS 2017/18
62
OVERVIEW
District Municipality, is looking
for investors to further develop
an agri-processing hub 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.
Plans to grow
Five co-operatives in the
Mzimkhulu area have received
R34-million to help them plant
and work soya beans on 1 500ha.
The money was made available
by the Masisizane Fund and the
KZN Department of Agriculture
and Rural Development. There
are plans to double the size of the
land to be planted.
Masisizane has an agribusiness
development unit that not only
loans money to small farmers but
also provides research and sets up
agricultural clusters so that farmers,
processors and traders can
benefit from being in proximity
to one another.
The national Department of
Rural Development and Land
Reform (DRDLR) has launched an
Agri-parks programme to support
small-scale farmers and to boost
other businesses related to agriculture
such as abattoirs and transport
operators. KwaZulu-Natal is
one of four provinces where pilot
projects have been carried out.
The plan is to have an agri-park in
each of South Africa’s 44 district
municipalities with ownership
vesting at least 70% with farmers.
There are three components to the fully realised agri-park concept:
• The Farmer Production Support Unit: links farmers with markets,
collection and short-term storage, local processing, mechanisation
• The Agri-hub: equipment hire, processing, packaging,
logistics, training
• The Rural Urban Market Centre: contract-based links to local and
international markets, long-term storage, market intelligence.
The Kwa-Zulu-Natal Provincial Government allocated R1.2-billion
to its Agri-villages programme in 2016/17 which has resulted in some
investment into previously ignored areas.
Good news on the land claims front came in the form of a 50/50
voluntary land share programme between the Muden community and
the local farmer. Delays in the implementation of the Upgrade of Land
Tenure Programme have been the cause of some frustration. Without
title deeds it is very difficult, if not impossible, to get loans, and without
loans it is very difficult for farmers to buy the sort of machinery or storage
facilities that would allow them to expand and enter the formal economy.
A KwaZulu-Natal Department of Agriculture and Rural Development
(KDARD) 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.
The Premier of KwaZulu-Natal, Willies Mchunu, has committed his
government to Operation Vula which aims to create economic opportunities
for social enterprises and co-operatives, led by African
people in particular. They are to benefit from state-led infrastructure
programmes, as well as from the buying power of the state through
the supply chain.
CONTACT INFO
Coastal Farmers Co-operative: www.coastals.co.za
Fresh Produce Exporters Forum: www.fpef.co.za
KwaZulu-Natal Agricultural Union: www.kwanalu.co.za
KwaZulu-Natal Department of Agriculture and Rural
Development: www.kzndard.gov.za
Milk Producers Organisation: www.mpo.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
Royal Agricultural Society of Natal: www.royalshow.co.za
TWK: www.twkagri.com
63 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Sugar
A British company has bought Illovo.
In 2016 there was a change in ownership of a well-known South
African brand. ABF, which used to be Associated British Foods,
purchased the sugar company Illovo. ABF bought the remainder
of shares that it did not already own in Illovo in April 2016 for
R5.6-billion. ABF has big operations in Europe (sugar and bioethanol)
and a huge production stream of sugar from beet from two plants
in China (180 000tpa).
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.
Another major player in the South African market is Tongaat Hulett
whose headquarters are about 50km north of Umhlanga. After a slow
2015, the company’s sugar divisions turned an operating profit of
R1.3-billion for 2016/17. This was partly because of better import protection
in the countries where Tongaat Hulett operates and because of
higher export prices generated into the EU and other Africancountries.
Tongaat Hullet Sugar has agreed to a R52-million sugar cane growing
project which will see co-operatives and contract farmers plant
cane on 3 000ha at Felixton, Maidstone and Darnall.
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.
Overall production volumes have been down in recent years
because of the severe drought. Total saleable sugar in the South
African market (for domestic use and export) was over two-million
tons in the 2013/14 and 2014/15 seasons. The figure for 2016/17 was
1.54-million tons.
CONTACT INFO
South African Cane Growers’ Association:
www.sacanegrowers.co.za
South African Sugar Association: www.sasa.org.za
South African Sugar Technologists Association:
www.sasta.co.za
Sugar Milling Research Institute: www.smri.org
SECTOR INSIGHT
Tongaat Hullet Sugar has set
aside 3 000ha for emerging
growers.
About 40% of local production
is exported. The South African
Cane Growers’ Association represents
about 24 000 growers
who produce about 20-million
tons of cane.
Illovo and Tongaat Hulett are
the major operators of sugar mills.
Twelve of South Africa’s 14 mills
are located in KwaZulu-Natal.
Other millers are Gledhow, ULC,
Umfolozi and Tsb (which 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.
KWAZULU-NATAL BUSINESS 2017/18
64
Manufacturing
Big new plants are opening in KwaZulu-Natal.
OVERVIEW
SECTOR INSIGHT
Hulamin’s production of
rolled products increased by
19%.
• A Halaal Manufacturing
Park is planned.
In order to take advantage of the existing strengths of cities and districts
in the province, a network of Industrial Economic Hubs (IEHs) is being
developed in KwaZulu-Natal by the provincial government.
Leading the process is the Department of Economic Development,
Tourism & Environmental Affairs (DEDTEA). The plan links sectors and
local economies as follows:
• Clothing and Textiles: Amajuba District
• Leather Processing: uMgungundlovu District
• Renewable Energy: iLembe District
• Auto Supplier Park: eThekwini Metro
• Agri-processing: Zululand District
• Electronics: uThukela District
• Perishables Processing: Ugu District
• Wood Processing: Harry Gwala District.
The focus sectors for the municipalities of uMzinyathi and
uMkhanyakude are still under discussion. A Halaal Manufacturing Park
is being considered by DEDTEA, finance institution Ithala, the South
African National Halaal Authority and business leaders. A location near
a good road or national highway and within easy reach of the Port of
Durban would be ideal. It is expected that investors will find this an
attractive proposition.
Another provincial effort to boost manufacturing is the KwaZulu-
Natal Mineral Beneficiation Strategy. The plan is to ensure that business
opportunities and jobs can be created along the value chain.
A new smelter park project at Colenso and various titanium dioxide
plants in the Richards Bay Industrial Development Zone (RBIDZ) reflect
this thinking.
Overall, the manufacturing sector contributes 17.7% 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.
An area of anticipated growth
and a focus of policy interventions
is the marine manufacturing
sector. The RBIDZ has already
welcomed SPS Manufacturing,
a pipe manufacturer which
will invest R300-million in
uMhlathuze, creating 87
permanent jobs.
Dube TradePort has attracted
several new investments:
Samsung Electronics South Africa
(televisions) and Cipla (biosimilar
pharmaceuticals).
Hulamin is a leader in aluminium
finished products. The
company makes rolled products
at Edendale, Pietermaritzburg
and Camps Drift while its
Pietermaritzburg facility for making
extrusions is one of the three
in the country. Rolled product
production increased in 2016
65 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
by 19% and revenue from the
same source went up by 23%.
These products make up 91% of
the company’s output. Extruded
products make up the remainder.
Previous problems that the company
experienced in getting LPG
have been resolved and exports
to the automotive industry in the
USA are on the increase.
Two large oil refineries and a
sophisticated sugar milling and
refining industry underpin provincial
chemical manufacturing.
The chemicals and petrochemicals
subsector makes up 17%
of the manufacturing output
of KwaZulu-Natal, with industrial
chemicals accounting for
nearly a third.
The group headquarters of
Africa’s biggest pharmaceutical
manufacturer, Aspen, are located
in La Lucia Ridge.
German chemicals group
Lanxess has built a carbon dioxide
concentration unit at its existing
plant in Newcastle. The company
makes tanning raw materials at
Merebank in Durban and rubber
chemicals in Isithebe north of
Durban.
Newcastle is a chemical manufacturing
hub. The big steel
works of Arcelor Mittal produce
by-products such as ammonium
sulphate, and large companies
such as Karbochem, Bayer, African
Amines and SA Calcium Carbide
also operate in the area.
AECI has a big presence
in the province under the
Chemical Services banner.
Chemical Initiatives runs an
elemental-nutrient sulphur
plant in Umbogintwini. SA Paper
Chemicals operates a big plant at
Isithebe. Protea Chemicals, has a large manufacturing plant at Mobeni.
Sappi Saiccor’s Umkomaas plant is the biggest producer of specialised
cellulose in the world with production edging upwards every year
towards full capacity of 800 000 tons per annum. Illovo Sugar manufactures
downstream products such furfural (used in lubrication oil),
furfuryl alcohol, diacetyl (a flavouring in margarine) and ethyl alcohol.
Kynoch makes fertilizer at plants in Durban and Richards Bay. Foskor’s
acid division manufactures sulphuric acid, phosphoric acid and granular
fertilizer in Richards Bay. ChemSpec makes paint at Canelands.
KwaZulu-Natal produces nearly a third of South Africa’s plastic
requirements. Nampak has several packaging facilities in the province
and MPact’s Pinetown facility specialises in FMCG containers. Mcbean
Beier Plastics and PCI also operate out of Pinetown.
Textiles
Shanghai, with which KwaZulu-Natal has signed a new memorandum
of understanding, has agreed to run an exchange programmes focussing
on clothing and textiles. Thirty local students will study in Shanghai
in the first phase of the project.
Canvas and Tent Manufacturing has more than 400 employees in
Ladysmith. There are 219 clothing companies in the province (Coface).
Ninian & Lester has about 1 500 employees.
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 employed in making
2 700 leather shoes every day.
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.
Carpet manufacturers Belgotex Floorcoverings and Ulster Carpets
have facilities in Pietermaritzburg and Durban respectively. Home appliance
manufacturer Defy, which became part of Turkish group Arçelik
in 2011, employs about 2 600 people. Böhler Uddeholm in Pinetown
produces tooling materials and welding consumables.
CONTACT INFO
Aluminium Federation of South Africa: www.afsa.org.za
Chemical and Allied Industries’ Association: www.caia.co.za
Manufacturing Circle: www. manufacturingcircle.co.za
National Association of Pharmaceutical Manufacturers:
www.napm.org.za
National Department of Trade and Industry: www.thedti.gov.za
Plastics SA: www.plasticsinfo.co.za
KWAZULU-NATAL BUSINESS 2017/18
66
In touch every day
FOCUS
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 2016, Mondi had
revenues of €6.6-billion and
a return on capital employed
of 20.3%.
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
Richards Bay mill.
pharmaceutical; packaging and paper converting; pet care; and office
and professional printing.
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 South Africa
Our South African business sustainably manages plantation forests and
manufactures and sells pulp, virgin containerboard and uncoated fine
paper. We own and manage one of the largest Forestry Stewardship
FSC®-certified plantation units in the world.
We have 1 700 employees working across three divisions: Forestry
operations, a pulp and linerboard mill, and an uncoated fine paper
and newsprint mill.
CONTACT INFO
Physical address: Travancore Drive, Merebank 4052
Postal address: PO Box 31024, Merebank 4059
Tel: +27 31 451 2111 | Website: www.mondigroup.com
67 KWAZULU-NATAL BUSINESS 2017/18
PROFILE
Mondi Group
South Africa
Operational excellence boosted by Richards Bay mill upgrade.
Business priorities
We are focused on leveraging our strong domestic
market position and the global competitiveness of
our Richards Bay mill. With a history spanning 50
years, we understand the value of being efficient,
cost-competitive and customer-focused.
There are three strategic value drivers for our business
in Mondi South Africa. 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.
Towards the end of 2016 we completed the investment
project to upgrade our woodyard at
our Richards Bay mill, allowing for improved
efficiencies in wood handling processes in
our forests and providing higher-quality fibre.
Additional benefits include reduced maintenance
costs, improved reliability, and some
energy savings.
Our investment to expand our product range by
producing unbleached kraftliner in addition to
white-top kraftliner at our Richards Bay mill gives
us the opportunity to supply our customers with
this specialised product.
We manage about 250,000 hectares of plantation
forests in South Africa and maintain 100% FSC certification
of our forests – including the identification
and protection of high conservation value areas.
In addition to certification and sustainable procurement
practices, we focus on the proactive and
responsible stewardship of forests and freshwater
ecosystems, and the maintenance of biodiversity
and important habitats.
New woodyard at Richards Bay mill.
Partnering with our customers to
develop innovative solutions
At our Merebank operation, we have made the
decision to restart our second uncoated fine
paper machine to meet domestic demand
for reels and, at the same time, reduce our
KWAZULU-NATAL BUSINESS 2017/18
68
PROFILE
production of newsprint in response to declining
demand.
We conducted a customer survey during 2016, and
we remain the supplier of choice to our domestic
customers who appreciate our reliable products,
long-term relationships, and the value we add to
their businesses. We have worked closely with our
newsprint customers to enhance the quality of
our product.
Uncoated fine paper machine, Merebank.
Growing responsibly and inspiring
our people for long-term success
The extended drought in South Africa remains a
significant challenge. We are working with government
and other industries in the region to find
potential solutions to this challenge. Plans include
reducing total water consumption, the municipality
increasing the volume of water piped from the
Tugela River to the supply dam, and investigating
further recycling of water.
We continue to focus on the efficient use of water
at all our operations, and have reduced freshwater
consumption by 12% compared to 2015. We
place great importance on proactive and responsible
stewardship of forests as well as freshwater
ecosystems and maintaining biodiversity
and habitats.
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 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.
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. Through the REAP (Rural Educational
Access Programme) we supported 59 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 2016, the six clinics
received 80 709 visits by forestry contractors and
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.
69 KWAZULU-NATAL BUSINESS 2017/18
Mondi Rotatrim:
Celebrating over 30 years
of office paper excellence
Mondi Rotatrim is celebrating
more than 30 years in the South
African market.
A distinguished leader among
office paper brands, Mondi
Rotatrim is known as a superior
multi-functional office paper that
runs smoothly through photocopiers,
laser and inkjet printers.
Mondi Rotatrim is produced at
the Merebank mill in Durban
and supplied country wide and
into Africa. Our brand carries
the Forest Stewardship Council
Chain-Of-Custody certification,
an independent international
accreditation providing assurance
to customers that Mondi
Rotatrim is produced from responsibly
managed forests.
Made from Elemental Chlorine
Free (ECF) pulp, Mondi Rotatrim
is the only locally manufactured
paper with a 160CIE rating for superior
whiteness. It is a product
that delivers better office performance,
better quality and better
environmental performance.
At the heart of the production
process is our 6-meter-wide
Voith Paper Machine – one of the
most technologically advanced
in the southern hemisphere –
which enables optimum process
control and analysis.
Equipped with state of the art
technology, Paper Machine
31 produces high quality uncoated
wood-free grades with
copy paper forming the bulk of
production. This production line
is supported by modern converting
equipment.
To support our high-quality
and well invested operations,
the right skills are essential. We
maintain a consistently high level
of training in our operations and
in 2017 seven of our papermakers
successfully completed their
international Pulp and Paper
Craftsman qualification in
Europe, becoming the second
group on the African continent
to hold this top internationally
accepted qualification in papermaking.
Our unrelenting drive to deliver
the highest quality in everything
we do, from managing our forests
www.mondigroup.com
Sustainable development makes good business sense. We don't
just talk about it; we make it part of the way we work every day
Our long-standing working relationship with
WWF through our sponsorship and support
(since 2001) of the WWF-Mondi Wetlands
Programme (WWF-MWP) and direct participation
in its activities is testament to our commitment
to addressing sustainability challenges.
The programme celebrated its 25 year anniversary
in 2016 and has catalyzed wetlands
conservation in South Africa through effective
partnerships with government, nongovernment
organisations and companies.
As a result 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.
SUSTAINING
ECOSYSTEMS
THROUGH
RESPONSIBLE
BUSINESS PRACTICES
Mondi Rotatrim: Progress through the Years
1970's
1980's
1990's
Mondi Rotatrim registered
Moved away from guillotine cutting
to precision rotary cutting
Changed from acid-based to alkalinebased
formulation, setting the benchmark
for a new environmentally
friendly production process
2000's
ISO accreditation achieved in
Environment, Quality and Safety.
At a cost of R1,53 billion Paper
Machine 31 was commissioned,
delivering consistently excellent quality
Brand new Cut Size 5 line was installed
at a cost of R177 million Multi-fuel
boiler installed at a cost of R470 million
Continued investment ensures our top quality product into the future ...
to producing quality pulp and paper
products for our customers
has enabled us to make products
that are household names today.
Mondi Group's consistent and
focused long-term strategy has
positioned us as a leading international
packaging and paper
group, with a strong platform
for growth.
With this backing, it is little wonder
that Mondi Rotatrim has
become a market leader among
office paper brands over the past
30 years.
Looking forward to the next 30 years ...
www.mondigroup.com
FOCUS
Forestry and paper
Companies are investing heavily in processing capacity.
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%).
The KwaZulu-Natal Provincial Government’s strategy
of creating Industrial Economic Hubs (IEHs) includes the development
and expansion of wood processing in the Harry Gwala District
Municipality. This is in the wooded south-western part of the
province and contains the main towns of Kokstad, Harding, Ixopo
and Underberg.
Processing
KwaZulu-Natal is a major centre for the beneficiation of timber
products, with more than half the country’s timber coming from
the province.
Mondi’s Richards Bay facilities produce pulp, linerboard and wood
chips and its paper mill at Merebank, south of Durban. It produces
SECTOR INSIGHT
In 2016 Mondi completed
the investment project to
upgrade the woodyard at
its Richards Bay mill.
258 000 tons of uncoated, woodfree
paper per year.
Nampak produces crêpe paper
at Verulam and Rafalo produces
tissue paper. SA Paper Mills
is another paper producer.
A business rescue plan was
put into operation in 2016 to
try to save a hardboard manufacturer
in Estcourt. Masonite SA
was renamed Evowood when
KWAZULU-NATAL BUSINESS 2017/18 72
OVERVIEW
investors bought the company
out of business rescue in August
2016. The plant comprises a coating
plant, softboard line, wood
yard, chipping operation, refining
department and four hardboard
production presses. The mill had
an annual capacity of 30-million
m² of hardboard and softboard
but at the time of writing a labour
dispute had brought production
to a halt. The new investors and
the workers could not agree on
what steps were needed to make
the mill profitable again.
Mpact’s upgrade of its
Felixton mill will be completed
in 2017 which will increase capacity
and improve efficiency. The
R765-million upgrade will
take overall production up to
215 000 tons (from 60 000) and
include for the first time a lightweight
containerboard option.
This is in response to market
demand for lighter packaging.
The first phase of the upgrade
began in 2015 with the development
of a recycled fibre (RCF)
plant and improvements to the
paper machine.
Mpact has plastics and paper
operations, with the paper section
divided into three divisions:
paper manufacturing, corrugated
and converted paper products,
and recycling.
The Merensky Group operates
one softwood sawmill and
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 Richmond.
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 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.
Timber
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 South
Africa devoted to forestry – 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 Africa.
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 000ha of land, while Sappi manages and owns about 230 000ha.
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.
CONTACT INFO
Forestry South Africa: www.forestry.co.za
KwaZulu-Natal Department of Agriculture and Rural
Development: www.kzndard.gov.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
Paper Manufacturers of South Africa:
www.thepaperstory.co.za
South African Institute of Forestry: www.saif.org.za
Technical Association of the Pulp and Paper Industry of South
Africa: www.tappsa.co.za
73 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Agriprocessing
Food and beverages are produced on a large scale in KwaZulu-Natal.
Turning agricultural products into tasty food and beverages is
done on a large scale in KwaZulu-Natal.
Dairy company Clover SA is one of several big brands that
originated in KwaZulu-Natal. 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;
in Estcourt, milk powder is manufactured. Clover buys nearly 30% of
all milk produced by South Africa’s farmers. Dairybelle makes milk and
milk products at Pinetown.
International giant Unilever is strongly associated with KwaZulu-
Natal. The South African company’s headquarters are in La Lucia.
In 2016, Nestlé South Africa invested R1.2-billion in adding instant
coffee to the products made at its plant in Estcourt. The company
makes infant formula at Harrismith.
Two of RCL’s four processing plants (dealing with four-million chickens
per week) are in KwaZulu-Natal. RCL used to be Rainbow Chickens
but the base of the new company is still in Westville, about 12km west
of Durban. The Remgro Group is a 75.9% shareholder in RCL Foods.
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 money 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 local farmers will provide
feedstock to the plant.
CONTACT INFO
Agricultural Research Council: www.arc.agric.za
Food & Beverage Reporter: www.fbreporter.com
Milk Producers Organisation: www.mpo.co.za
National Agricultural Marketing Council: www.namc.co.za
SECTOR INSIGHT
Nestlé South Africa has a
new instant coffee plant in
Estcourt.
Edible oil products are made
by the Willowton Group at its
national headquarters and plant
in Pietermaritzburg. Other wellknown
food producers include:
Sasko (Estcourt and Durban),
Beacon (Jacobs), Nature’s Source
and National Brands (both
Durban) and Snackworks biscuits
(Westmead, Pinetown).
The South African Breweries
plant at Prospecton is one of
the biggest producers in the
region. Bergville subsistence
farmers have contracts to supply
SAB with yellow maize, an arrangement
that will allow them
to plan ahead and to invest in
production.
Coca-Cola has a plant in
Durban and a large bottling
plant, run by Amalgamated
Beverage Industries, at Phoenix.
The Ceres Beverage Company
has a plant in Durban and bottled-water
company aQuelle is
based at Kranskop.
KWAZULU-NATAL BUSINESS 2017/18
74
Automotive
Durban hosts the first NAACAM Show.
OVERVIEW
As part of attempts to boost the city of Durban as a destination
for automotive investment, the first National Association
of Automotive Components and Allied Manufactures
(NAACAM) Show was held in Durban in April 2017. Future
events will rotate between other major centres in South Africa.
In line with the policy of developing Industrial Economic Hubs,
the Durban Automotive Supplier Park is being built at Illovo, south of
Durban and near to the Toyota plant.
An amount of R11.5-billion will be invested in three phases, with
the first allocation amounting to R4.3-billion. The Dube TradePort
Corporation will manage the project, which covers 1 013ha. Other
partners are the eThekwini Municipality, Toyota and the provincial
government. The aim is to attract car assembly and component
manufacturing companies.
Thirty-nine companies are currently members of the Durban
Automotive Cluster which is funded by the municipality. Together,
these firms have about 17 000 employees.
In 2016, Toyota invested a further R6.1-billion into its already large
plant at Prospecton. The company regularly sells about a quarter of
the vehicles sold in South Africa, and the same proportion of exports
volumes. The Corolla car, the Hilux bakkie and the Fortuner SUV are
manufactured at the plant.
KwaZulu-Natal’s other automotive giant is Bell Equipment. Between
the Toyota plant at Prospecton south of Durban and the Richards Bay
facility of heavy-equipment 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.
The province also has a substantial and varied automotive-supply
sector. Trade and Investment KwaZulu-Natal (TIKZN) estimates that
CONTACT INFO
Automotive Industry Export Council: www.aiec.co.za
National Association of Automotive Component and Allied
Manufacturers (NAACAM): www.naacam.co.za
National Association of Automobile Manufacturers of South
Africa (NAAMSA): www.naamsa.co.za
SECTOR INSIGHT
An Automotive Supplier Park
is to be built south of Durban.
the province’s component automotive
manufacturers enjoy a
combined turnover approaching
R10-billion.
Powerstar trucks 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.
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.
Keeping MAN and Toyota
supplied is the R300-million operation,
Duys Engineering Group.
International company GUD Filters
has a big presence in the province.
Indian-owned Apollo Tyres
SA makes Dunlop products at
two large factories in the province.
The Behr Group makes airconditioning
and cooling systems
in Durban. Ramsay Engineering
supplies cross-car beams for BMW
and Ford.
75 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Oil and gas
Richards Bay is set to become an energy hub.
National government’s allocation of 3 126MW to natural gas
in its medium-term energy policy to 2030 could set Richards
Bay on the path to becoming an energy hub.
In 2016 it was decided by the national Department of
Energy (DoE) that one of the first two gas-to-power plants to be constructed
under the Independent Power Producer Programme (IPPP),
would be allocated to Richards Bay. A private partner will invest in and
run the plant. To produce its allocation of 2 000MW, the plant would
have to use a million tons a year of liquid natural gas (LNG).
A new unit within the national Department of Trade and Industry
(dti) will focus on importing LNG, with Mozambique and Botswana
being the most likely initial sources. Local demand for LNG is expected
to increase to more than 10-million tons per annum.
The fact that neighbouring Mozambique has significant offshore
deposits is relevant in the view of the CEO of the Richards Bay Industrial
Development Zone (RBIDZ), Pumi Motsoahae. As he says, “We recognise
that Richards Bay is geographically well advantaged, located as it
is on the east coast. Richards Bay possesses a phenomenal opportunity
to become an energy hub.”
SECTOR INSIGHT
Liquid natural gas is the next
big thing.
• 75% of Chevron has been
sold for R12.6-billion.
The RBIDZ signed an agreement
in 2015 with Byromate to
produce 60MW from a biomass
plant, and manufacturing in the
solar sector is another option
within the broader energy field.
The regulator and promoter of
oil and gas exploration in South
Africa, Petroleum Agency South
Africa, has awarded coalbedmethane-gas
exploration rights
in KwaZulu-Natal to NT Energy
KWAZULU-NATAL BUSINESS 2017/18
76
OVERVIEW
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.
Sinopec of China has bought a
75% share in Chevron South Africa
for R12.6-billion. Assets include a
lubricants plant in Durban, an oil
refinery in Cape Town and 820
petrol stations across South Africa
and Botswana.
Assets
KwaZulu-Natal is home to two
major oil refineries, and is the first
link in the pipeline chain that links
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.
KwaZulu-Natal’s two oil refineries
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.
South Africa’s biggest refinery
is Sapref. Owned jointly by Shell SA
Refining (25%), Thebe Investments
(25%) and BP Southern Africa (50%),
it has the capacity to produce
180 000 barrels per day. The refinery
also makes propylene feedstock,
solvents, sulphur, asphalt,
industrial-processing oils and
liquefied petroleum gas.
Sapref has started a clean-fuels
project, aiming to reduce sulphur
and benzene levels, 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 more than 72-million litres of finished
lubricants annually.
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%).
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
2012. 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 apparently reduces
the number of fuel tankers on South African roads by about 60%.
The liquid fuels and gas networks of Transnet Pipelines traverses
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 Durban.
CONTACT INFO
Independent Power Producer Programme:
www.ipp-projects.co.za
National Department of Trade and Industry: www.thedti.gov.za
National Energy Regulator of South Africa: www.nersa.org.za
Petroleum Agency SA: www.petroleumagencysa.com
South African National Energy Association: www.sanea.org.za
South African Petroleum Industry Association:
www.sapia.co.za
Transnet Pipelines: www.transnetpipelines.net
77 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Water
New dams and water pipelines are under construction.
SECTOR INSIGHT
KwaZulu-Natal will host the
AfriWater Conference in
2017.
• Nedbank is sponsoring
water conservation
efforts.
• Groundwater is becoming
more important to
planners.
Heavy rains fell in KwaZulu-Natal in 2017, finally breaking a long
drought. Over two years, the national Department of Water
and Sanitation spent R1.2-billion on drought alleviation in
the province. The KwaZulu-Natal Department of Agriculture
and Rural Development found R220-million in the most recent budget
to provide lifelines to affected farmers and communities.
Interventions included the drilling of new boreholes, the installation
of mobile packaged plants, the purchase of new water tankers and the
creation of off-channel water storage to supplement raw water supply.
One of the many challenges faced by the South African water sector
is a shortage of engineers. A study jointly commissioned by the
Water Research Commission and the SA Local Government Association
(SALGA) found that the country’s four-in-a-million ratio of engineers is
a long way from the required 50 per million.
One response at national level was the importation of Cuban engineers
to assist in the short term. The Danish government has an
agreement to help the South African government with water management
and water efficiency. Companies such as smart-meter specialist
Kamstrup are already active in the country. A local solution was put in
place in September 2015 when the first batch 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.
About 34% of the country’s water
is lost due to leakage and water
to the value of R7-billion is lost
every year (National Department
of Water and Sanitation).
South Africa has adopted a
National Water Resource Strategy
which takes into account groundwater
to a far greater degree than
previous plans. This despite many
rural settlements depending almost
entirely on this resource.
KWAZULU-NATAL BUSINESS 2017/18
78
OVERVIEW
South Africa is using something
between 2-4-million m³ every
year, against a potential resource
of 7-10-million m³. Extracting
groundwater takes skill and money,
so it has mostly been neglected
but with persistent droughts
afflicting the country it is likely to
become a much higher priority in
water planning.
Water harvesting (including
installing tanks to collect rain
water from roofs) is another area
that has not been comprehensively
exploited. Innovators and
investors in the sector have a lot
of scope to develop products
and systems to help South Africa
secure better water supplies
in future.
Infrastructure
The first phase of the Spring
Grove Dam in the Mooi River area
was completed on schedule and
increased water supply in the
Umgeni River catchment area.
Spring Grove takes to five the
number of dams in the Mooi-
Mgeni system (including Midmar,
Albert Falls, Nagle and Inanda
dam), which serve more than
five-million people in Durban,
Pietermaritzburg and 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. A new reservoir
(Waterloo) near the King Shaka
International Airport, and serving
this northern area, has been
constructed as part of the master
plan that 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 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 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
Municipality. The company has five dams, 10 waterworks, five watertreatment
plants and two waste-water works.
Large parts of the northern part of the province are served by
Mhlathuze Water. The utility has assets valued at more than R3-billion
and its area of supply covers 37 000m².
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 & Investment
KwaZulu-Natal.
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 area.
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 Umnengi and uMsunduzi Rivers. A Green Corridor
initiative is one of the projects.
CONTACT INFO
Duzi Umngeni Conservation Trust: www.duct.org.za
Mhlathuze Water: www.mhlathuze.co.za
National Department of Water and Sanitation: www.dwa.gov.za
Umgeni Water: www.umgeni.co.za
Water Balance Programme: www.wwf.org.za
Water Institute of Southern Africa: www.ewisa.org.za
Water Research Commission: www.wrc.org.za
79 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Energy
Alternative energy sources are being rolled out.
SECTOR INSIGHT
Biodigesters are working well
in rural areas.
• Durban is running a pilot
solar panel project.
As part of the provincial government’s strategy to boost regional
development, the iLembe District has been named
as an Industrial Economic Hub (IEH) for the renewable
energy sector.
With the King Shaka International Airport (KSIA) and the Dube
TradePort lying just south of the iLembe District in the eThekwini
Municipality, a partnership has been created between the two municipalities
and the provincial government to develop a renewable energy
technology innovation hub. Technical input from Korean and German
companies will occur in a phased development. In the first phase, the
Durban University of Technology (DUT) will assist in the establishment
of an International Academy for Renewable Energy, Research and
Development. A technology park will comprise the second phase,
with research and development, manufacturing, technical support
and a training centre specific to the renewable energy sector being
developed. The third and final phase will see power plants built within
the zone capable of generating 260MW.
Enterprise iLembe is a private company which is wholly owned by
the municipal entity of the iLembe District Municipality and which
seeks to drive investment into the area.
Ndwedwe in the iLembe district is where Khanyisa Projects has
set up 26 biodigesters which produce gas for cooking. The project
forms part of the Working for Energy programme of the South African
National Energy Development
Institute (SANEDI) which targets
the use of sustainable clean
energy in rural areas.
The other area attracting energy
investors is the Richards Bay
Industrial Development Zone
(RBIDZ) which has been named
as the site for 2 000MW liquefied
natural gas (LNG) plant in
terms of national government’s
gas-to-power plan. The initiative
was only announced in late 2016
so an investor is still to be found
for the project, but the move to
support the LNG sector has been
very positively received as South
Africa moves to diversify its energy
sources. RBIDZ is also the site of a
new biomass plant. 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
with power. The investing company
Byromate, which has wind
and solar projects elsewhere in
South Africa, expects to start
delivering power in 2018.
KWAZULU-NATAL BUSINESS 2017/18
80
OVERVIEW
The provincial government
wants to see the RBIDZ become
a hub for renewable energy, and
this bio-gas project is expected to
be the first of many in solar power,
wind and other types of renewable
energy. The huge forestry, timber,
paper and pulp industries of the
province carry with them the potential
to provide feedstock for the
renewable energy sector.
KwaZulu-Natal’s most widely
grown 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
34MW of electricity.
Sugar grower and producer
Tongaat Hulett believes that the
national sugar industry could
generate between 700MW
and 900MW.
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.
The Provincial Planning
Commission is investigating wind
channels and sunlight intensity
levels in KwaZulu-Natal.
Thirty-seven 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 have the potential for
creating 100 jobs.
Solar
Municipal buildings in the eThekwini metro are being fitted with solar
panels. The Ushaka Marine World Theme Park is one of several facilities
to receive solar PV panels intended to reduce demand from the grid.
Altogether, the pilot programme should save the city 426.75MWh, or
about R330 000 in its first year of operation.
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.
Cogeneration
Cogeneration (combining heat and power) is gaining in popularity,
especially in the sugar milling industry. Calcium carbide producer SA
Calcium Carbide has launched its R115-million plant, with the help of the
Green Industries Strategic Business Unit of the Industrial Development
Corporation (IDC). The plant will generate 8MW and reduce by 20% SACC’s
dependence on the national grid.
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 active in Brazil in turning pulp, paper
and sugar into fuel.
CONTACT INFO
National Department of Energy: www.energy.gov.za
National Energy Regulator: www.nersa.org.za
Renewable Energy Center of Research and Development:
www.record.org.za
South African National Energy Association: www.sanea.org.za
South African National Energy Development Institute:
www.sanedi.org.za
South African Wind Energy Association: www.sawea.org.za
Southern African Bioenergy Association: www.saba.za.org
Southern African Energy Efficiency Confederation:
www.saee.org.za
81 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Tourism
KwaZulu-Natal is targeting conferences as a priority sector.
SECTOR INSIGHT
Investors are sought for
the Drakensberg Cable Car
project.
• Durban will host the
Tourism Indaba until 2022.
The province of KwaZulu-Natal has some of the most attractive
and varied tourist destinations imaginable, from superb beaches
and towering mountains to black rhinos and acclaimed wetlands.
The province’s fine beaches stretch from the popular South
Coast, through the perfect surfing spots in Durban to the wetlands
of the north. The combined contribution of retail and tourism to the
province’s GDP is 14%.
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. In 2016, a further 18 872ha at two sites was added to
the province’s formal nature conservation holdings, at two sites. The
province’s conservation agency is Ezemvelo KZN Wildlife.
Airbnb is a fast-growing option in South Africa. The Airbnb visitors
to South Africa in 2016 engaged in R2.4-billion worth of economic
activity. Durban had the largest increase in Airbnb bookings from
the previous year.
MICE
The meetings, incentives, conference and exhibition sector (MICE) is
one where KwaZulu-Natal excels. It has been declared a priority sector
by the provincial government.
A dedicated unit within the
KZN Tourism Authority, the
Convention Bureau, has booked
more than 50 events and conferences
since 2012, bringing about
R3-billion into the provincial
economy.
Durban’s hosting of the
Tourism Indaba further supports
the idea that the province is a
major conference destination.
More than 7 000 delegates are
annually attracted to the Durban
International Convention Centre
to exhibit South Africa’s assets
to international tour operators.
The city has secured the Tourism
Indaba until 2022.
The range of topics covered
by recent conferences held in
KwaZulu-Natal is wide and includes
the World Economic Forum,
the World News Media Congress,
the Pan-African Health Tourism
Congress, the National Association
of Automotive Components and
Allied Manufactures (NAACAM)
Show and the Durban Maritime
Summit.
International conferences
held in the 2016/17 financial year
include:
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• 2016 International HIV and
AIDS Conference
• World Leisure Congress
• International Society of
City and Regional Planners
(ISOCARP) Summit
• 5th African Internet
Governance Forum
• World Federation of Trade
Unions Congress
• General Assembly of the
International Association for
the Prevention of Blindness
• World Hospital Congress.
A more local focussed conference
took place in June 2016. The
aim was to find investors for the
Drakensberg Cable Car project.
Thirteen technical reports have
been completed and the project
has now reached the stage where
the private sector can invest.
Many thousands of visitors
to KwaZulu-Natal arrive by road,
and the Mooi River toll plaza
is one of the major transport
intersections in the country, but
an important arrival method for
tourists at the high-end of the
market is by cruise liner. The Port
of Durban envisages a 32 000m²
area that will cater for two ships
and at least 5 000 passengers.
South Africa attracts 0.5% of the
world’s cruise-ship market which
comprises about 15.4-million passengers
annually.
Another potential growth
area is health tourism. Upwards
of seven-million people travel the
world annually for procedures,
and South Africa is well placed to
receive a percentage of this market.
A conference held in Richards
Bay in 2017 put the focus on issues
such as investment, training and
the development of products.
Hotels
Research by Tourism KwaZulu-Natal shows that the coastal province
consistently has the best hotel occupancies in the country.
Tsogo Sun runs 14 hotels in KwaZulu-Natal, five of which are
Garden Courts. Six hotels are 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. Protea Hotels has 18 properties in the province, with
seven in Durban including the Protea Hotel Edward.
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 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 and Gooderson Leisure has a varied portfolio.
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).
CONTACT INFO
Amafa/Heritage KwaZulu-Natal: www.emakhosini.co.za
Ezemvelo KZN Wildlife: www.kznwildlife.com
Hospitality Investment Conference Africa: www.hica.co.za
Inkosi Albert Luthuli International Convention Centre
Complex: www.icc.co.za
KwaZulu-Natal Tourism Authority: www.zulu.org.za
KZN Gambling Board: www.kzngambling.co.za
South African National Parks: www.sanparks.co.za
South African Tourism: www.southafrica.net
Tourism KwaZulu-Natal: www.zulu.org.za
83 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Education and training
KwaZulu-Natal has 30% of South Africa’s schoolchildren.
SECTOR INSIGHT
Curro plans a tertiary listing
on the JSE.
• The KZN Provincial
Government has paid out
R1.5-billion in bursaries.
Education faces big challenges in South Africa. KwaZulu-Natal,
with a population of more than 10-million, more than half of
whom live in rural areas which suffered decades of neglect,
has made significant strides in providing access to education.
With 30% of South Africa’s pupils in its schools, the province’s results
have a big bearing on how the nation fares in annual examinations.
There is now near universal access to primary and secondary
schooling and a new drive to enrol pre-school children in Grade R has
achieved a 70% success rate. The province has 1 689 early childhood
development centres.
Access to tertiary education has also increased exponentially in
South Africa in the last two decades. There were some alarming
scenes on South African university campuses in 2016, with students
organising under the banner of #FeesMustFall. There are some serious
issues that South Africa’s educational planners need to tackle, not least
the issue of funding, but this should not obscure the fact that access
has improved. Before the end of January 2017, the National Student
Financial Aid Scheme (NSFAS) had paid R1.3-billion to 26 public universities
to advance payment of registration fees for poor students.
The provincial government of KwaZulu-Natal bursary programme
paid out R1.5-billion in the three years to 2016 and more than 5 000
graduate interns obtained jobs at provincial government departments
at a cost to government of more than R100-million.
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.
In this context, educational analyst
Nic Spaull put some myths to
bed in an important article in the
Mail & Guardian in 2016. Despite
being highly critical of the education
system and arguing strongly
that “meaningful reform” is
needed, he tackled the false idea
that somehow “black youths are
regressing educationally”. Spaull
pulled together a series of studies
to show that:
• between 1986 and 2012 the
number of black university
graduates increased sixteenfold
• between 2004 and 2014 the
number increased by 137%
(against a black population
rise of 16%)
• graduate unemployment is
low at 6% (although worse for
blacks than whites).
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There are two universities and
two universities of technology in
KwaZulu-Natal, and the national
distance university, the University
of South Africa (Unisa), has a
presence in five locations. USB
Executive Development offers
business courses for executives.
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 Durban University of
Technology (DUT) has six faculties
operating in seven campuses
in Durban and the Midlands. DUT
is well known for its outstanding
graphic-design school and offers
one of only two chiropractic
programmes in South Africa.
The University of Zululand offers
diploma and degree courses
on two campuses at Empangeni
and Richards Bay.
Private
There has been a strong trend in
recent years towards the opening
of private or independent
schools, and not necessarily in the
very expensive bracket. Curro believes it will be running 200 schools
in South Africa by 2020, double its current number. There are six Curro
schools in KwaZulu-Natal.
Curro’s purchase of Embury, the teacher-training college in Durban,
launched the company’s entry into the tertiary sector. It is now planning
to list its tertiary division on the Johannesburg Stock Exchange (JSE).
Advtech, the other big private company, already has 27 tertiary
campuses nationally, in addition to its 78 schools operating under a
variety of labels. Advtech operates 10 educational sites in KwaZulu-
Natal, including schools such as Crawford and Trinity House, a chefs’
school (Capsicum), three Varsity Colleges and the Design School for
Southern Africa.
Training
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 in 2016.
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.
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 qualifications.
CONTACT INFO
Council of Higher Education: www.che.ac.za
Independent Schools Association of Southern Africa:
www.isasa.org
KwaZulu-Natal Department of Education:
www.kzneducation.gov.za
National Department of Basic Education: www.education.gov.za
National Department of Higher Education and Training:
www.dhet.gov.za
National Research Foundation: www.nrf.ac.za
85 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Banking and financial services
Three new banks are set to join the sector.
SECTOR INSIGHT
Gap insurance is an innovative
new product.
• KZN banks are financing
mega-projects.
No fewer than three new banks are set to make their debuts
on the South African market in the near future, with one of
them based in KwaZulu-Natal.
All are state-related enterprises: Ithala, Postbank and a
Human Settlements Development Bank. The Ithala Development
Finance Corporation has functioned for many years in the province
as the provider of funds for small enterprises, especially in areas where
infrastructure is poor and access to traditional banking services is not
good. The provincial government, which runs Ithala, aims to have a
banking licence for the entity by the end of 2017.
In 2016, Postbank (part of the South African Post Office, SAPO)
received a first-level licence. Once a board of directors has been appointed
and a company formed, the Reserve Bank is likely to grant
the full licence. The current Postbank focusses on taking deposits and
savings accounts. Postbank has secured a R3.7-billion loan to enable
it to open its own loan book.
Three state entities are merging
to create the new Human
Settlements Development Bank:
the National Housing Finance
Corporation, the Housing Loan
Fund and the National Urban
Reconstruction and Housing
Agency.
The focus will be on financing
housing for poorer households
and for large state-funded housing
projects. Part of the drive is to
integrate cities better and to combat
the legacy of the spatial divide
that apartheid left behind. Privatesector
investment will be sought.
For many decades South
Africa had a retail banking Big
Four – Standard Bank, Nedbank,
Absa/Barclays and First National
Bank. All of them have a strong
presence in the province, but the
big news in the retail sector since
2001 has been the emergence of
Capitec Bank. Based on Capitec’s
results for 2015/16, BusinessTech
published a chart giving Capitec
the fourth-most customers.
Merchant banking and investment
banking are the most com-
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86
OVERVIEW
petitive sectors within banking. In
KwaZulu-Natal, banks have been
vital in getting 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 continuing infrastructure
upgrades.
The European Investment
Bank 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.
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.
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 grew from 50% to 80%;
in the “banked’”category (more
traditional but including new devices),
the percentage grew from 46% to 75%. This is partly because
South Africa’s formal banking sector has such excellent infrastructure.
Nedbank has Approve-it, which allows customers to accept or
reject an Internet transaction by cellphone. Nedbank also has partnerships
with shops such as Boxer Stores and Pick n Pay where customers
can have access to financial services in previously unserviced areas
and also on all days of the week such as public holidays and Sundays.
Some of Nedbank’s other innovations include Home Loans Online
Digital Channel and Market Edge, together with the Nedbank App
Suite. The Nedbank@Work product offers targeted service to employees
of companies that bank with Nedbank, including free advice.
The Keyona Plus account includes funeral cover, a loan facility and a
method of transferring money. The Nedbank4me account is tailored
to the youth market.
Financial services group Old Mutual (a 54% stakeholder in Nedbank)
is set to create four stand-alone businesses out of the Old Mutual Group.
This will allow the UK-based wealth management business and the New
York-based asset manager to be free of linkages to the rand, while the
South African businesses, Nedbank and Old Mutual Emerging Markets,
can focus on their specialities.
With business size and nature being so complex, flexibility is vital
for financial service providers. Old Mutual has an employee retirement
scheme called the Old Mutual Super Fund which is able to cater for
different levels of retirement funding and risk cover. Linked employee
benefits make it possible for employers to integrate the scheme with
the company’s payroll.
The insurance market has become more varied over time, with a
greater variety of products now available to more market segments,
including middle-income earners. A typical example of a specific product
that is responding to new realities is Old Mutual’s iWYZE medical
gap cover, designed to pay the difference between what medical aid
scheme is willing to pay and what the hospital or doctor is charging.
CONTACT INFO
Auditor-General South Africa: www.agsa.co.za
Association for Savings and Investment South Africa:
www.asisa.org.za
Financial Services Board: www.fsb.co.za
Insurance Institute of South Africa: www.iisa.co.za
Insurance South Africa: www.insurance.za.org
JSE Limited: www.jse.co.za
Post Bank: www.postbank.co.za
South African Institute for Chartered Accountants:
www.saica.co.za
South African Reserve Bank: www.resbank.co.za
87 KWAZULU-NATAL BUSINESS 2017/18
OVERVIEW
Development finance and
SMME support
Small businesses have multiple financing options.
SECTOR INSIGHT
Seda’s incubators assist
entrepreneurs in six sectors.
• Ithala is building storage
hubs to help SMMEs.
Operation Vula is a provincial government initiative to ensure
that co-operatives and small businesses get a leg up
into the formal economy through state-led infrastructure
programmes that assist them, and through procurement
policies that favour them.
The Coastal KZN TVET College has been training members of
co-operatives and people working in small, medium and micro-enterprises
(SMMEs) in the skills that will help them do well in business.
Training young people is an important part of the plan to boost
SMMEs. A provincial Youth Economic Empowerment plan allocates
R94-million over three years to training 3 425 young people in technical
skills such as brick-laying, working with concrete, diesel mechanics,
boiler-making, fitter and turning, and plumbing. Trainees are given
placements after the training is
complete. In 2015, 1 050 young
people were trained; the figure
in 2016 was 1 125.
An active national agency in
supporting entrepreneurs is the
Small Enterprise Development
Agency (Seda). Seda gives nonfinancial
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
with the rehabilitation of existing
enterprises. Three models are
used: Technology Demonstration
Centres (demonstration and
training); Technology Incubators
(where the focus is rehabilitation);
Hybrid Centres, which combine
elements of the other two models.
The incubators in KwaZulu-
Natal include ICT and construction
(three centres each), furniture
and hi-tech (two each), chemicals
and essential oils.
The provincial government
controls two important develop-
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88
OVERVIEW
ment funding institutions, both of
which report to the Department
of Economic Development,
Tourism and Environmental
Affairs (DEDTEA):
• Ithala Development Finance
Corporation
• KZN Growth Fund.
Ithala is in the process of applying
for a full banking licence. In
2015/16 Ithala financed 336 businesses
and co-operatives, which
led to an estimated 2 618 jobs being
created. The agricultural sector
was a particular focus area for
the corporation. As of December
2016, a total of 129 businesses had
been financed by Ithala, which
also has a home-loan offering.
Ithala’s commercial and industrial
property portfolio of over onemillion
square metres of lettable
space makes it one of the biggest
operators in the province.
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, further
assisting small enterprises.
Another initiative aims to get
small traders organised through
the establishment of a provincial
small traders’ association.
The KZN Growth Fund Trust
operates as a Debt Fund and
an Equity Fund with a total of
R1.1-billion worth of assets under management. Among the Growth
Fund’s most recent funding projects 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).
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, 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.
All of the major banks have SMME offerings. Nedbank has an
enterprise-development product that supports businesses with a
turnover up to R35-million with at least 25% black ownership.
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.
The Masisizane Fund makes loan financing available in sectors
such as agriculture and agri-processing, commercial, supply chain
and manufacturing. It also offers training and technical support and
funding to help businesses to comply with legislation.
CONTACT INFO
Business Partners: www.businesspartners.co.za
Department of Small Business Development: www.dsbd.gov.za
Development Bank of Southern Africa: www.dbsa.org
Industrial Development Corporation: www.idc.co.za
Ithala Development Finance Corporation: www.ithala.co.za
KZN Growth Fund: www.kzngrowthfund.co.za
KwaZulu-Natal Department of Economic Development and
Tourism: www.kznded.gov.za
National Empowerment Fund: www.nefcorp.co.za
Small Enterprise Development Agency: www.seda.co.za
Small Enterprise Finance Agency: www.sefa.org.za
89 KWAZULU-NATAL BUSINESS 2017/18
MASISIZANE FUND
A JOURNEY TO SUSTAINABLE
LIVELIHOODS FOR UMZIMKULU
SMALLHOLDER FARMERS
The Masisizane Fund was established in
2007 as an initiative of the Old Mutual
Group with a mandate to contribute
measurably to job creation which in turn
helps eradicate poverty in South Africa. Its
success is driven by a focused approach on
high impact industry sectors, coupled with
a comprehensive SMME finance solution
that includes business support and loan
finance in the following sectors:
Agribusiness
Franchising
Supply Chain
Cluster Development Flagship initiative
in KwaZulu-Natal and Eastern Cape
In 2015/16 more than just a new planting
season started for five co-operatives in
uMzimkulu, in the Harry Gwala Municipal
district. This season was different as they
worked in partnership with the Masisizane
Fund, adopting a cluster development
approach in order to address the agricultural
challenges faced in the rural areas and to
ensure socio-economic transformation.
With 76% of the 180 302 people in
uMzimkulu living below the poverty line,
Masisizane together with KZN Department
of Agriculture and Rural Development
were prompted to address the challenge
and have been working systematically
toward changing this shocking statistic.
This initiative is funded on a 50% grant,
50% loan basis and co-operatives are
responsible for repaying the loans once
they have harvested.
During the first phase of the initiative soya
and dry beans were planted, the next phase
was to bring about mechanisation. Each
co-operative received one mechanisation
combo comprising a tractor, planter,
trailer, boom sprayer disc, and plough. A
single harvester was bought to be shared
by the five co-operatives.
As this initative grows, Silos will be
installed in a central place to support grain
production in the district. Drak Oil Mill, the
off-taker and processor of soybean for all
the farmers involved is a valued partner in
this cluster development initiative.
Old Mutual is a Licensed Financial Services Provider
“Success can be interpreted in
different ways but when you see
optimal use of rural infrastructure to
support production, more people
employed, learning opportunities,
dignity, pride and harmony restored
in a community, it is worth working
through all the daily challenges”
Newly planted land
Sifiso Myeni,
Provincial Manager, KwaZulu-Natal.
Beans growing well
Mechanisation in action
Final produce ready for market
Masisizane provides non-financial, value
adding, post investment services including
capacity development, business management
and technical support, financial education,
market development as well as product/
service quality standards and compliance.
Masisizane has its head office in Gauteng (011 217 1746) with regional offices in:
Eastern Cape 043 704 0116
KwaZulu-Natal 031 335 0402
Limpopo 015 287 4279
Western Cape 021 509 5074
A flagship office has been established in Kokstad (039 727 3100) to oversee all activities
in the Eastern Cape Flagship Programme.
More information on Masisizane can also be accessed from our
website: www.masisizane.co.za
An initiative of the
Group
LISTING
South African National Government
An overview of South Africa’s national government departments.
President
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
Website: www.thepresidency.gov.za
Website: www.economic.gov.za
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
Website: www.thepresidency.gov.za
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
Website: www.thepresidency.gov.za
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
Website: www.daff.gov.za
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
Website: www.dac.gov.za
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
Website: www.education.gov.za
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
Website: www.doc.gov.za
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
Website: www.cogta.gov.za
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
Website: www.dcs.gov.za
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
Website: www.economic.gov.za
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Department of Defence
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
Website: www.dod.mil.za
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
Website: www.energy.gov.za
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
Website: www.environment.gov.za
Department of Finance (National Treasury)
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
Website: www.treasury.gov.za
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
Website: www.doh.gov.za
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
Website: www.dhet.gov.za
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
Website: www.dha.gov.za
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
Website: www.dhs.gov.za
Department of International Relations and
Cooperation
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
Website: www.dirco.gov.za
Department of Justice and Constitutional
Development
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
Website: www.doj.gov.za
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
Website: www.labour.gov.za
Department of Military Veterans
Address: 328 Festival Street, Hatfield, Pretoria 0001
Postal address: Private Bag X943, Pretoria 0001
Tel: 080 232 3244 (SA only)
Website: www.dmv.gov.za
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
Website: www.dmr.gov.za
Department of Police (Civilian Secretariat for
Police Service)
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
Website: www.saps.gov.za
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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
Website: www.dpe.gov.za
Department of Public Service and
Administration
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
Website: www.dpsa.gov.za
Department of Public Works
Address: 7th Floor, CGO Building, cnr Bosman and Madiba Streets,
Pretoria Central
Postal address: Private Bag X65, Pretoria 0001
Tel: +27 12 406 21978
Fax: +27 086 276 8757
Website: www.publicworks.gov.za
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
Website: www.ruraldevelopment.gov.za
Department of Science and Technology
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
Website: www.dst.gov.za
Department of Small Business Development
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
Website: www.dsbd.gov.za
Department of Social Development
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
Website: www.dsd.gov.za
Department of State Security
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
Website: www.ssa.gov.za
Department of Sport and Recreation
South Africa
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
Website: www.srsa.gov.za
Department of Tourism
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
Website: www.tourism.gov.za
Department of Trade and Industry
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
Website: www.thedti.gov.za
Department of Transport
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
Website: www.transport.gov.za
Department of Telecommunications and
Postal Services
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
Website: www.dtps.gov.za
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Department of Water and Sanitation
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
Website: www.dwa.gov.za
Department of Women
Address: 36 Hamilton Street, Arcadia Pretoria 0001
Postal address: Private Bag X931, Pretoria 0001
Tel: +27 12 359 0000
Fax: 086 765 3365
Website: www.women.gov.za
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.
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KwaZulu-Natal Provincial
Government
A guide to KwaZulu-Natal’s provincial government departments. All addresses are located
in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kwazulunatal.gov.za.
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
Website: www.kwazulunatal.gov.za
Agriculture and Rural Development
MEC: Mr Thembu Mthembu
Cedara College, Cedara Road
Tel: +27 33 343 8240
Fax: +27 33 343 8255
Website: www.kzndard.gov.za
Arts and Culture
MEC: Bongiwe Sithole-Moloi
222 Jabu Ndlovu Street
Tel: +27 33 264 3400
Fax: +27 33 394 2237
Website: www.kzndac.gov.za
Community Safety and Liaison
MEC: Thomas Mxolisi Kaunda
179 Jabu Ndlovu Street
Tel: + 27 33 341 9300
Fax: + 27 33 342 6345
Website: www.kzncomsafety.gov.za
Cooperative Governance and Traditional
Affairs
MEC: Nomsa Dube-Ncube
330 Langalibalele Street
Tel: +27 33 264 2500
Fax: +27 33 264 6672
Website: www.kzncogta.gov.za
Economic Development, Tourism and
Land Affairs
MEC: Sihle Zikalala
270 Jabu Ndlovu Street
Tel: +27 33 264 2500 | Fax: +27 331 310 5416
Website: www.kzndedt.gov.za
Education
MEC: Mthandeni Dlungwane
Anton Lembede Building, 247 Burger Street
Tel: +27 33 392 1004 | Fax: +27 33 392 1203
Website: www.kzneducation.gov.za
Health
MEC: Dr Sibongiseni Maxwell Dhlomo
1st Floor, 330 Langalibalele Street
Tel: +27 33 395 2111
Website: www.kznhealth.gov.za
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
Website: www.kznworks.gov.za
Provincial Planning Commission
Chairperson: Prof Bonke Dumisa
Moses Mabhida Building, 300 Langalibalele Street
Tel: +27 33 341 4765
Website: www.kznppc.gov.za
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
Website: www.kzntreasury.gov.za
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Social Development
MEC: Weziwe Gcotyelwa Thusi
208 Hoosen Haffejee Street
Tel: +27 33 341 9600
Fax: +27 33 341 9616
Website: www.kzndsd.gov.za
Transport
MEC: Thomas Mxolisi Kaunda
172 Burger Street
Tel: + 27 33 355 8600
Fax: + 27 33 355 8092
Web: www.kzntransport.gov.za
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
Website: www.durban.gov.za
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
Website: www.amajuba.gov.za
Dannhauser Municipality
Tel: +27 34 621 2666 | Fax: +27 34 621 3114
Website: www.dannhauser.gov.za
eMadlangeni (Utrecht) Municipality
Tel: +27 34 331 3041 | Fax: +27 34 331 4312
Website: www.emadlangeni.gov.za
Newcastle Municipality
Tel: +27 34 328 7600 | Fax: +27 34 312 1570
Website: www.newcastle.gov.za
ILEMBE DISTRICT MUNICIPALITY
59/61 Mahatma Gandhi St, KwaDukuza 4450
Tel: +27 32 437 9300 | Fax: +27 32 437 9587
Website: www.ilembe.gov.za
KwaDukuza Municipality
Tel: +27 32 437 5000
Fax: +27 32 437 5098
Website: www.kwadukuza.gov.za
Mandeni Municipality
Tel: +27 32 456 8200
Fax: +27 32 456 2504
Website: www.mandeni.gov.za
Maphumulo Municipality
Tel: +27 32 481 4500
Fax: +27 32 481 2053
Website: www.maphumuloonline.gov.za
Ndwedwe Municipality
Tel: +27 32 532 5000
Fax: +27 32 532 5031/2
Website: www.ndwedwe.gov.za
HARRY GWALA DISTRICT MUNICIPALITY
40 Main Street, Ixopo 3276
Tel: +27 39 834 8700
Fax: +27 39 834 1701
Website: www.harrygwaladm.gov.za
Greater Kokstad Municipality
Tel: +27 39 797 6600 | Fax: +27 39 727 5501
Website: www.kokstad.gov.za
Dr Dlamini Zuma Municipality
Tel: + 27 39 833 1038 | Fax: + 27 39 833 1179
Website: www.ndz.gov.za
uBuhlebezwe Municipality
Tel: +27 39 834 7700 | Fax: +27 39 834 1168
Website: www.ubuhlebezwe.gov.za
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uMzimkhulu Municipality
Tel: +27 39 259 5000 | Fax: +27 39 259 0223
Website: www.umzimkhululm.gov.za
UGU DISTRICT MUNICIPALITY
28 Connor Street, Port Shepstone 4240
Tel: +27 39 688 5700 | Fax: +27 39 682 4820
Website: www.ugu.gov.za
Ray Nkonyeni Municpality
Tel: +27 39 688 2000 | Fax: + 27 39 682 0327
Web: www.hcm.gov.za
Umdoni Municipality
Tel: +27 39 978 4313 | Fax: +27 39 976 2020
Website: www.umdoni.gov.za
uMuziwabantu Muncipality
Tel: +27 39 433 1205 | Fax: +27 39 433 1208
Website: www.umuziwabantu.gov.za
Umzumbe Municipality
Tel: +27 39 972 0005 | Fax: +27 39 972 0099
Website: www.umzumbe.gov.za
UMGUNGUNDLOVU DISTRICT
MUNICIPALITY
242 Longmarket Street, Pietermaritzburg 3201
Tel: +27 33 897 6700
Fax: +27 33 342 5502
Website: www.umdm.gov.za
Impendle Muncipality
Tel: +27 33 996 6000 | Fax: +27 33 996 0852
Website: www.impendle.gov.za
Mkhambathini Municipality
Tel: +27 31 785 9300 | Fax: +27 31 785 2121
Website: www.mkhambathini.gov.za
Mpofana Municipality
Tel: +27 33 263 1221 | Fax: +27 33 263 1127
Website: www.mpofana.gov.za
Msunduzi Municipality
Tel: +27 33 392 3000 | Fax: +27 33 345 2397
Website: www.msunduzi.gov.za
Richmond Municipality
Tel: +27 33 212 2155 | Fax: +27 33 212 2102
Website: www.richmond.gov.za
uMngeni Muncipality
Tel: +27 33 239 9200
Fax: +27 33 330 4183
Website: www.umngeni.gov.za
uMshwathi Municipality
Tel: +27 33 815 2249
Fax: +27 33 502 0286
Website: www.umshwathi.gov.za
UMKHANYAKUDE DISTRICT MUNICIPALITY
Stand 13433, Kingfisher Road, Mkuze 3965
Tel: +27 35 573 8600 | Fax: +27 35 573 1094
Website: www.ukdm.gov.za
Big 5 False Bay Municipality
Tel: +27 35 838 8500 | Fax: +27 35 838 1015
Website: www.bigfive.org.za
Jozini Municipality
Tel: +27 35 572 1292 | Fax: +27 35 572 1266
Website: www.jozini.gov.za
Mtubatuba Municipality
Tel: +27 35 550 0069 | Fax: +27 35 550 0060
Website: www.mtubatuba.org.za
uMhlabuyalingana Muncipality
Tel: +27 35 592 0680 | Fax: +27 35 592 0672
Website: www.umhlabuyalingana.gov.za
UMZINYATHI DISTRICT MUNICIPALITY
Princess Magogo Bld, 39 Victoria St, Dundee 3000
Tel: +27 34 219 1500 | Fax: +27 34 219 1940
Website: www.umzinyathi.gov.za
Endumeni Municipality
Tel: +27 34 212 2121 | Fax: +27 34 212 3856
Website: www.endumeni.gov.za
Nquthu Municipality
Tel: +27 34 271 6100 | Fax: +27 34 271 6111
Website: www.nquthu.gov.za
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Msinga Municipality
Tel: +27 33 493 0761 | Fax: +27 33 493 0766
Website: www.msinga.org.za
uMvoti Municipality
Tel: +27 33 413 9100 | Fax: +27 33 417 1393
Website: www.umvoti.gov.za
UTHUKELA DISTRICT MUNICIPALITY
Physical address: 33 Forbes Street, Ladysmith 3370
Tel: +27 36 638 5100 / 2400 | Fax: +27 36 637 5608 / 635 5501
Website: www.uthukeladm.co.za
Alfred Duma Municipality
Tel: +27 36 637 2231 | Fax: +27 36 631 1400
Website: www.alfredduma.gov.za
Inkosi Langalibalele Municipality
Tel: +27 36 353 0693/0681/0691 | Fax: +27 36 353 6661
Website: www.umtshezi.co.za
Okhahlamba Municipality
Tel: +27 36 448 8000 | Fax: +27 36 448 1986
Website: www.okhahlamba.org.za
KING CETSHWAYO DISTRICT MUNICIPALITY
Uthungulu House, Kruger Rand Rd, Richards Bay 3900
Tel: +27 35 799 2500
Fax: +27 35 789 1641
Website: www.uthungulu.org.za
uMfolozi Municipality
Tel: +27 35 580 1421 | Fax: +27 35 580 1141
Website: www.umfolozi.gov.za
Mthonjaneni Municipality
Tel: +27 35 450 2082 | Fax: +27 35 450 2056
Website: www.mthonjaneni.org.za
Nkandla Municipality
Tel: +27 35 833 2000 | Fax: +27 35 833 0920
Website: www.nkandla.org.za
City of uMhlathuze Municipality
Tel: +27 35 907 5100 | Fax: +27 35 907 5444
Website: www.umhlathuze.gov.za
uMlalazi Muncipality
Tel: +27 35 473 3300 | Fax: +27 35 474 4733
Website: www.umlalazi.gov.za
ZULULAND DISTRICT MUNICIPALITY
B400 Gagane Street, Ulundi 3838
Tel: +27 35 874 5500
Fax: +27 35 874 5589
Website: www.zululand.org.za
Abaqulusi Municipality
Tel: +27 34 982 2133 | Fax: +27 34 980 9637
Website: www.abaqulusi.gov.za
eDumbe Municipality
Tel: +27 34 995 1650 | Fax: +27 34 995 1192
Website: www.edumbe.gov.za
Nongoma Municipality
Tel: +27 35 831 7500 | Fax: +27 35 831 3152
Website: www.nongoma.org.za
Ulundi Municipality
Tel: +27 35 874 5100 | Fax: +27 35 870 1164
Website: www.ulundi.gov.za
uPhongolo Municipality
Tel: +27 34 413 1223
Fax: +27 34 413 1706
Website: www.uphongoloonline.gov.za
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INDEX
Alfred Duma Local Municipality ................................................................................................... 11
Durban Chamber of Commerce and Industry ....................................................... 2, 7, 23, 25
Durban International Conference Centre ................................................................................... 9
Durban Investment Promotion (DIP) .................................................................................. IFC, 1
Global Africa Network (GAN).................................................................................................... OBC
Indaba Lodge Richards Bay .......................................................................................................... 35
Kaefer Thermal Contracting Services ........................................................................................ 38
KwaZulu-Natal Sharks Board Maritime Centre of Excellence ................................... 44 - 47
Masisizane Fund............................................................................................................................... 90
Mondi Group South Africa ................................................................................................... 67 - 71
Msunduzi Local Municipality............................................................................................... 26 - 28
Nedbank...................................................................................................................................... 50 - 53
Old Mutual................................................................................................................................. 54 - 57
Richards Bay Coal Terminal........................................................................................................... 36
Richards Bay Industrial Development Zone (RBIDZ)....................................... ........... 32 - 34
Sappi................................................................................................................................. ........... 40 - 41
Selfmed......................................................................................................................................48, OBC
Unemployment Insurance Fund (UIF).......................................................................................... 5
University of Zululand.................................................................................................................... 31
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Global Africa Network
Promoting business, trade and investment in SA’s nine provinces
www.gan.co.za
www.southafricanbusiness.co.za
www.easterncapebusiness.co.za
www.freestatebusiness.co.za
www.gautengbusinessguide.co.za
www.kwazulunatalbusiness.co.za
www.limpopobusiness.co.za
www.mpumalangabusiness.co.za
www.northerncapebusiness.co.za
www.northwestbusiness.co.za
www.westerncapebusiness.co.za
NETWORK MEDIA
Tel 021 657 6200
Email sales@gan.co.za
Web www.gan.co.za