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KwaZulu-Natal Business 2018-19 edition

The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the investment prospects of Durban (eThekwini) and on the specific attractions for investors of other regions throughout the province. We are pleased to include a survey of the province’s economy from Trade & Investment KwaZulu-Natal, the dedicated trade and inward investment promotion agency that promises to be “your knowledge partner in business”. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the investment prospects of Durban (eThekwini) and on the specific attractions for investors of other regions throughout the province.
We are pleased to include a survey of the province’s economy from Trade & Investment KwaZulu-Natal, the dedicated trade and inward investment promotion agency that promises to be “your knowledge partner in business”.
To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

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KWAZULU-NATAL<br />

BUSINESS<br />

<strong>2018</strong>/<strong>19</strong> EDITION<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN KWAZULU-NATAL PROVINCE<br />

JOIN US ONLINE WWW.GLOBALAFRICANETWORK.CO.ZA | WWW.KWAZULUNATALBUSINESS.CO.ZA


Welcome<br />

to Durban!<br />

A lifestyle of business and pleasure together.<br />

Facilitating sustainable investment in Durban<br />

for the benefit of all<br />

Invest Durban (DIPA) is an entity of the<br />

eThekwini Municipality, recommended by<br />

the Durban City Council and organised<br />

private business as the most appropriate<br />

vehicle to stimulate economic growth and<br />

new investment in the Durban metropolitan<br />

area.<br />

Invest Durban’s primary objective is<br />

to facilitate sustainable investment in<br />

Durban for the benefit of all through the:<br />

• Proactive investment promotion<br />

and marketing of Durban Metro as a<br />

premium investment destination<br />

• Proactive communication and<br />

marketing of the City’s large investment<br />

projects and core strategies<br />

• Identification and development of new<br />

investment and business infrastructure<br />

opportunities, especially for previously<br />

disadvantaged groups<br />

• Attraction, support and facilitation<br />

for prospective foreign investors in<br />

Durban<br />

• Improvement in the investment and<br />

economic development environment,<br />

in partnership with National, Provincial,<br />

City and <strong>Business</strong> Authorities.<br />

Invest Durban offers:<br />

• Investment Services<br />

• Destination Services<br />

• <strong>Business</strong> Establishment and<br />

• Administration Services


Doing business in Durban<br />

Durban has been developed around<br />

a natural ocean port, which plays a key<br />

role in the city’s economy and that of<br />

South Africa.<br />

Strategic location<br />

The port of Durban is modern and wellequipped.<br />

It offers investors a range of<br />

competitive and strategic advantages. The<br />

city has emerged as the de facto coastal<br />

trade ‘gateway’ to Southern Africa. It boasts<br />

the largest port in Africa, as regards value of<br />

cargo, and is South Africa’s premier general<br />

cargo and container port. It is positioned<br />

to access international shipping links to the<br />

Americas, Europe, the Persian Gulf, South<br />

East Asia, the Pacific Rim and Australia/New<br />

Zealand and perfectly located for the transshipment<br />

of cargoes between Eastern,<br />

Middle-Eastern and Western economies.<br />

Infrastructure<br />

Durban offers established and advanced<br />

road, rail, sea, air and ICT network<br />

infrastructure.<br />

Quality transport systems include:<br />

• Port operation facilities<br />

• Rail network – cargo and passenger<br />

• International airport with air cargo<br />

facilities<br />

• Extensive road network with national and<br />

regional linkages<br />

• Oil/petroleum pipeline to Gauteng and<br />

Free State Provinces<br />

• Gas pipeline emanating from Sasol, in<br />

Mpumalanga province.<br />

Durban provides a number of new<br />

opportunity areas for business investors,<br />

both large and small.<br />

Investment opportunities may be<br />

categorised into the following fields:<br />

• Agriculture<br />

• Property Development<br />

• Manufacturing<br />

• Knowledge Sector<br />

• Tourism<br />

• Commerce<br />

• Public-Private Partnerships.<br />

Invest Durban, eThekwini Municipality<br />

11th Floor, 41 Margaret Mncadi Avenue (old Vic. Embankment),<br />

Durban, 4001 South Africa<br />

Tel: +27 31 311 4227 | Email: invest@durban.gov.za<br />

Website: www.durban.gov.za


EST 1856<br />

DURBAN CHAMBER<br />

OF COMMERCE AND<br />

INDUSTRY NPC<br />

INCREASED INVESTMENT<br />

IN THE CITYʼS ECONOMY<br />

INSTITUTIONAL<br />

PARTNERSHIP &<br />

COLLABORATION<br />

SMME<br />

SKILLS DEVELOPMENT<br />

AND EDUCATION<br />

TO CREATE ECONOMIC<br />

GROWTH AND JOBS<br />

DEVELOPMENT OF<br />

VIBRANT SMALL<br />

BUSINESS SECTORS<br />

& SUSTAINABLE<br />

ENTERPRISES WITHIN IT<br />

PROVISION AND<br />

MAINTENANCE<br />

OF ADEQUATE<br />

INFRASTRUCTURE<br />

WORKING<br />

TOWARDS<br />

ACHIEVING<br />

DCCI<br />

CREATION OF<br />

MEANINGFUL<br />

EMPLOYMENT<br />

BUILDING<br />

AN ICONIC<br />

REPUTATION AS A<br />

GREEN CITY<br />

ACHIEVEMENT OF<br />

‘INTERNATIONAL<br />

DESTINATIONʼ<br />

STATUS FOR LEISURE,<br />

BUSINESS & TOURIST<br />

REJUVENATION OF<br />

THE INNER-CITY<br />

CRIME & GRIME<br />

FREE CITY<br />

1 GOAL TO MOVE OUR BUSINESS FORWARD<br />

www.durbanchamber.co.za<br />

g+


The Durban Chamber of Commerce and Industry NPC has<br />

mushroomed, from its small beginnings in 1856 to a substantial<br />

association, respected by its sister chambers throughout the<br />

country. Currently the oldest and largest metropolitan chamber<br />

in Africa, we add value to our chamber members through our<br />

robust interactions and partnerships with both the private and<br />

public sector. These initiatives are in addition to the many great<br />

services offered, such as the business information we distribute<br />

to our members and the entire Durban business community, as<br />

well as the system of standing committees, also known as forums,<br />

that meet regularly to consider relevant issues within the<br />

sectors that the various committees represent.<br />

DCCI NPC<br />

Vision:<br />

DCCI NPC<br />

Mission:<br />

To be recognised as a world-class business chamber and<br />

a united voice of business in the eThekwini Municipal<br />

area and beyond<br />

To contribute towards creating a conducive economic and<br />

business environment in Ethekwini Municipal area and<br />

beyond, as well as providing services specifically relevant<br />

to small and large businesses operating in the region.<br />

Services offered by the Durban Chamber of Commerce and Industry NPC:<br />

1 Enterprise Development Beneficiary Status<br />

2. Fully equipped Conference Centre<br />

3. CIPC services<br />

4. Durban Chamber Procurement Portal<br />

5. Certificates of Origin<br />

6. ATA Carnet<br />

7. Carnet de Commerce<br />

Call Us<br />

8. Credit Reference Checks<br />

9. First line HR/IR advice and support<br />

10. Seminars and Workshops<br />

11. Policy and Advocacy Department providing<br />

reliable and relevant policy perspective<br />

12. Employee Health, Wellness, Safety Advice and<br />

Support<br />

Today to become part of Durban business gateway<br />

to emerging markets.<br />

Chamber Square, Lion Match Office Park,<br />

892 Umgeni Rd, Durban, 4001<br />

P.O BOX 1506 Durban,<br />

4000, South Africa<br />

031 335 1000<br />

031 335 1288<br />

chamber@durbanchamber.co.za<br />

www.durbanchamber.co.za


CONTENTS<br />

CONTENTS<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> <strong>2018</strong>/<strong>19</strong> Edition<br />

Introduction<br />

Foreword8<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s unique guide to business and investment.<br />

Special features<br />

Trade & Investment <strong>KwaZulu</strong>-<strong>Natal</strong> 10<br />

Promoting the province as an investment destination and<br />

facilitating international trade.<br />

Introducing the province of <strong>KwaZulu</strong>-<strong>Natal</strong> 12<br />

Investment opportunities abound in a wide variety of sectors.<br />

Durban’s inner city is to be revitalised 22<br />

New plans and a North Coast boom offer investment<br />

opportunities in eThekwini.<br />

Supertech Group takes top honours 26<br />

The Supertech Group took top honours at the BMW SA<br />

National Dealer Awards.<br />

New areas are attracting investment 28<br />

Industrial parks are planned for every district in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Economic sectors<br />

Agriculture46<br />

A new cold-storage facility at Dube TradePort is good news<br />

for farmers.<br />

Sugar47<br />

Sugar production is on a downward trend.<br />

Forestry and paper 50<br />

South African companies have a global presence.<br />

Mining54<br />

Mineral sands are mined in the north.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

4


Support UNIZULU Students<br />

Invest in Future Leaders<br />

Established in <strong>19</strong>82, the UNIZULU (University of Zululand) Foundation is a non-profit<br />

organisation which seeks to support the University and community through initiating<br />

and sustaining long-term partnerships with donors based on identified specific needs<br />

of the two spheres.<br />

Through its constant efforts to obtain third-stream income (funds either than student<br />

fees and government grants or research awards) the Foundation has, over several<br />

years, secured funding that has culminated in countless student bursaries while also<br />

contributing towards the implementation of institutional projects.<br />

Why Support UNIZULU?<br />

UNIZULU is an institution with unique and compelling needs which include, among others,<br />

that:<br />

• 75% of our 17 544 students are financially needy.<br />

• There are inadequate student accommodation facilities on campus and in<br />

the region.<br />

• There is a lack of suitable postgraduate accommodation or study/research<br />

facilities.<br />

• 75% of our students are supported by the National Student Financial Aid<br />

Scheme (NSFAS) but only for undergraduate study. The reality about NSFAS<br />

support is that the applications of many more students are not processed<br />

thus these students require urgent support.<br />

The Foundation is appealing to private and public institutions, alumni and individuals for<br />

support in the form of donations, grants, bursaries, learnerships and Work-integrated<br />

Learning (WIL) programmes. The latter is vital for UNIZULU’s growth as a unique institution,<br />

in a rural context, with the potential to become a vibrant and value-adding economic hub.<br />

Banking Details:<br />

Location:<br />

University of Zululand Foundation<br />

T 12<br />

Account Number: 52165778105<br />

Thandanani Complex<br />

First National Bank, Empangeni<br />

Branch Code: 220130<br />

For further information email naikerp@unizulu.ac.za / israelc@unizulu.ac.za or call 035 902 6245


CONTENTS<br />

Oil and gas 55<br />

Richards Bay is set to host a liquid natural gas plant.<br />

Manufacturing60<br />

A Durban shipyard is making tugs for Transnet.<br />

Automotive 64<br />

An automotive supplier park is under construction.<br />

Energy70<br />

Biomass is producing energy in northern <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Water71<br />

New water infrastructure is being built.<br />

Tourism72<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is investing in tourism.<br />

Education and training 76<br />

The private sector is growing quickly.<br />

Banking and financial services 78<br />

Local finance agency aims to become a bank.<br />

Development finance and SMME support 80<br />

Agri-processing is lucrative for entrepreneurs.<br />

Government<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Provincial Government 83<br />

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>’s provincial government<br />

departments.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Local Government 84<br />

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>’s metropolitan, district and local<br />

municipalities.<br />

References<br />

Sector contents 44<br />

Index88<br />

Map<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> municipalities. 28<br />

<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

6


Unlocking Economic Potential<br />

The South Coast has many natural, economic<br />

and structural advantages:<br />

• Market access – gateway to the Eastern Cape,<br />

close proximity to Durban Harbour<br />

• Direct flights to Johannesburg daily from Margate<br />

Airport, and weekly to Cape Town<br />

• Skilled workforce<br />

• Ease of doing business, government committed to<br />

supporting business<br />

• Competitive operative environment – Ugu offers<br />

investors many advantages including competitive<br />

labour costs and low cost of living<br />

• Subtropical climate<br />

Let Ugu South Coast Development Agency<br />

assist you<br />

Ugu South Coast Development Agency is<br />

responsible for ensuring that foreign investors<br />

have the information and support they need to<br />

take advantage of the business opportunities in<br />

the following sectors:<br />

• Property Development<br />

• Agriculture<br />

• Tourism<br />

• Ocean Economy<br />

• Small-scale Mining<br />

• Manufacturing<br />

Endless Opportunities<br />

With abundant natural advantages, close proximity to<br />

fast-growing SA economies, a well-skilled workforce<br />

and a stable economy, Ugu represents an unrivalled<br />

investment destination.<br />

How we help investors<br />

We understand the complexities of investing and<br />

provide the information required for you to make good<br />

investment decisions in a coordinated approach that<br />

saves investors time and money.<br />

Our specialist investment team provides a range of<br />

business and investment services to investors:<br />

• Detailed industry knowledge about business costs<br />

• Preparing business cases<br />

• Arranging site visits<br />

• Introduction to industry and service providers<br />

• Government liaison<br />

• Market intelligence<br />

• Partnering with local councils, economic<br />

development agencies/departments and<br />

private service providers to identify investmentready<br />

projects.<br />

Snapshot of Ugu – South Coast Region<br />

Province: <strong>KwaZulu</strong>-<strong>Natal</strong><br />

Economic Hub/City: Port Shepstone<br />

Climate: Subtropical<br />

Summer: 20 O to 31 O C<br />

Winter: 15 O to 22 O C<br />

Coastline: 112km<br />

Total area: 5,047km 2 (1,949mi 2 )<br />

Population: 722,484<br />

Airport: Margate Airport<br />

www.uscda.org.za • info@uscda.org.za • 039 682 3881


CREDITS<br />

<strong>KwaZulu</strong>-<strong>Natal</strong><br />

<strong>Business</strong><br />

A unique business and investment guide.<br />

The <strong>2018</strong>/<strong>19</strong> <strong>edition</strong> of <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is the 10th issue of<br />

this highly successful publication that, since its launch in 2008,<br />

has established itself as the premier business and investment<br />

guide for the <strong>KwaZulu</strong>-<strong>Natal</strong> Province.<br />

In addition to the regular articles providing insight into each of the key<br />

economic sectors of the province, there are special features on the investment<br />

prospects of Durban (eThekwini) and on the specific attractions<br />

for investors of other regions throughout the province.<br />

We are pleased to include a survey of the province’s economy from<br />

Trade & Investment <strong>KwaZulu</strong>-<strong>Natal</strong>, the dedicated trade and inward investment<br />

promotion agency that promises to be “your knowledge partner<br />

in business”.<br />

To complement the extensive local, national and international distribution<br />

of the print <strong>edition</strong>, the full content can also be viewed online at www.<br />

kwazulunatalbusiness.co.za. Updated information on <strong>KwaZulu</strong>-<strong>Natal</strong> is also<br />

available through our monthly e-newsletter, which you can subscribe to<br />

online at www.gan.co.za, in addition to our complementary business-tobusiness<br />

titles that cover all nine provinces as well as our flagship South<br />

African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

Email: chris@gan.co.za<br />

CREDITS<br />

Publisher: Chris Whales<br />

Publishing director: Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Tyra Martin<br />

Production: Lizel Olivier<br />

Ad sales: Sydwell Adonis, Gavin<br />

van der Merwe, Sam Oliver,Gabriel<br />

Venter, Jeremy Petersen, Shiko<br />

Diala, Joseph Gumbo, Vanessa<br />

Wallace, Reginald Motsoahae and<br />

Siya Sthunda.<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

<strong>Natal</strong>ie Koopman<br />

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

DISTRIBUTION<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is distributed internationally on<br />

outgoing and incoming trade missions; to foreign offices<br />

in South Africa’s main trading partners; at top national and<br />

international events; through the offices of foreign representatives<br />

in South Africa; as well as nationally and regionally<br />

via chambers of commerce, tourism offices, trade and<br />

investment agencies, provincial government departments,<br />

municipalities, airport lounges and companies.<br />

COPYRIGHT | <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to<br />

the publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Pictures supplied by: <strong>Business</strong> Partners, Thinkstock,<br />

Coastal TVET College, Transnet National Ports Authority, Toyota and<br />

iStock.<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN <strong>19</strong>93-0127<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information contained<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.<br />

KWAZULU-NATALBUSINESS <strong>2018</strong>/<strong>19</strong><br />

8


TI<br />

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Petroleum Agency SA encourages investment in the oil and gas sector by assessing<br />

South Africa's oil and gas resources, and presenting these opportunities for exploration<br />

to oil and gas exploration and production companies.<br />

Compliance with all applicable legislation in place to protect the environment is very<br />

important, and rights cannot be granted without an approved Environmental<br />

Management Plan.<br />

Explorers must prove financial and technical ability to meet their commitments<br />

in safe-guarding and rehabilitation of the environment.<br />

Preparation of Environmental Management Plans requires public consultation<br />

and a clear demonstration that valid concerns will be addressed.<br />

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Petroleum Agency SA,<br />

based in Bellville, Cape Town,<br />

is responsible for the promotion<br />

and regulation of exploration<br />

and exploitation of oil<br />

and gas (petroleum) resources.<br />

Contact us to find out about:<br />

- Onshore or offshore exploration<br />

opportunities<br />

- Permits and rights<br />

- Availability of geotechnical data.<br />

+27 21 938 3500<br />

plu@petroleumagencysa.com<br />

www.petroleumagencysa.com


01<br />

PROFILE<br />

PIONEERING INVESTMENT IN<br />

KWAZULU-NATAL, GROWING<br />

THE PROVINCE’S COMPETITIVE<br />

ADVANTAGE AS A PREMIER<br />

INVESTMENT DESTINATION<br />

TRADE & INVESTMENT KWAZULU-NATAL<br />

YOUR KNOWLEDGE PARTNER IN BUSINESS.<br />

South Africa is rated among the top 10 in the world<br />

in the category of investor protection and good<br />

fi scal governance, and the World Bank has rated<br />

South Africa among the top 30 countries in terms<br />

of its ease of doing business. South Africa is also<br />

regarded as one of the least costly areas in which<br />

to establish a business.<br />

In line with this, the province of <strong>KwaZulu</strong>-<strong>Natal</strong><br />

has established itself as a premier domestic and<br />

international investment and tourist destination.<br />

With two of the busiest ports on the Sub-Saharan<br />

African Continent, in addition to its world-class road<br />

and rail infrastructure, <strong>KwaZulu</strong>-<strong>Natal</strong> enjoys the<br />

strategic and competitive advantage of being<br />

a global gateway for trade into Southern Africa<br />

and to the world. Its strategic location and highly<br />

developed industrial sector ensure a competitive<br />

edge for both local and foreign investors and offers<br />

unique advantages for local exporters.<br />

Investment in <strong>KwaZulu</strong>-<strong>Natal</strong> continues to<br />

emerge as a major contributor to South Africa’s<br />

growing economy, with the province’s contribution<br />

to national GDP amounting to 16%, and it is<br />

statistically the second-largest GDP per region in<br />

South Africa. The favourable business environment<br />

has made the province a sound investment<br />

destination for investors from around the world.<br />

MANDATE<br />

Trade & Investment <strong>KwaZulu</strong>-<strong>Natal</strong> is a South<br />

African trade and inward investment promotion<br />

agency, established to promote the province of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> as an investment destination and<br />

to facilitate trade by assisting local companies to<br />

access international markets. The organisation<br />

identifi es, develops and packages investment<br />

opportunities in <strong>KwaZulu</strong>-<strong>Natal</strong>; provides a<br />

professional service to all clientele; brands<br />

and markets <strong>KwaZulu</strong>-<strong>Natal</strong> as an investment<br />

destination; retains and expands trade and<br />

export activities; and links opportunities to the<br />

developmental needs of the <strong>KwaZulu</strong>-<strong>Natal</strong><br />

community.<br />

VISION<br />

“To be the leader in developing and promoting<br />

export trade in <strong>KwaZulu</strong>-<strong>Natal</strong> and to position the<br />

Province as a premier destination for investment.”<br />

MISSION<br />

• Identify and package investment opportunities<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong><br />

• Brand and market <strong>KwaZulu</strong>-<strong>Natal</strong> as an<br />

investment destination<br />

• Link opportunities to the developmental needs<br />

of the <strong>KwaZulu</strong>-<strong>Natal</strong> community<br />

• Ensure easy access to investment and export<br />

trade opportunities<br />

OBJECTIVES<br />

Trade & Investment <strong>KwaZulu</strong>-<strong>Natal</strong>’s business<br />

objectives include:<br />

• To meet shareholder and stakeholder<br />

expectations, TIKZN aims to deliver exceptional<br />

professional service levels and support to<br />

clients and stakeholders through the following<br />

initiatives:<br />

• Attracting, developing and retaining highperformance<br />

employees with skills and<br />

competencies to manage key internal<br />

business processes, including marketing<br />

TIKZN as an investment promotion agency<br />

• Enhancing TIKZN’s research and knowledge<br />

capabilities and using technology as an<br />

enabler for its business


SUCCESSFUL<br />

PROMOTION<br />

OF BUSINESS<br />

INVESTMENT AND TRADE<br />

DEVELOPMENT<br />

• Ensuring corporate governance and<br />

fi nance reporting standards compliance<br />

• Advocating for a conducive business<br />

environment in <strong>KwaZulu</strong>-<strong>Natal</strong>, in addition<br />

to marketing the province as a premier<br />

business destination<br />

DURBAN<br />

KEY<br />

ACTIVITIES<br />

Trade & Investment<br />

<strong>KwaZulu</strong>-<strong>Natal</strong><br />

undertakes a diverse<br />

range of key activities,<br />

all designed to<br />

ensure the successful<br />

promotion of business<br />

investment and trade<br />

development.<br />

Such activities include:<br />

• The facilitation of joint ventures<br />

• The facilitation of business linkages<br />

between small and big business<br />

• The timely provision of relevant and reliable<br />

information to both potential and existing<br />

investors and traders<br />

• Assistance to existing and new investors<br />

regarding applications for investment as<br />

well as export-marketing incentives<br />

• Assistance to foreign investors in terms of<br />

applications for business permits<br />

• Negotiations for local government<br />

incentives on behalf of investors<br />

• The provision of project support and<br />

aftercare services to investors<br />

• The provision of assistance to emerging<br />

international traders<br />

• Assistance with international trade<br />

enquiries.<br />

• Assistance to investors with regard to<br />

locating suitable premises<br />

• Assistance to investors in terms of<br />

securing project and operational fi nance<br />

The key priority sectors of focus for the<br />

Organisation include:<br />

• ICT and <strong>Business</strong> Process Outsourcing<br />

• Transport, Maritime and Logistics<br />

• Infrastructure Development<br />

• Agriculture (Primary and Secondary)<br />

• Manufacturing<br />

• Mining<br />

• Renewable Energy<br />

• Tourism Development<br />

MUNICIPAL INVOLVEMENT<br />

Trade & Investment <strong>KwaZulu</strong>-<strong>Natal</strong> (TIKZN)<br />

continues to stamp its authority on the<br />

trade and investment sector and have been<br />

partnering with all spheres of government<br />

to support local trade and businesses to<br />

create and sustain employment for the<br />

people of <strong>KwaZulu</strong>-<strong>Natal</strong>. The organisation<br />

embarks on municipal roadshows aimed at<br />

promoting districts as an investment and trade<br />

destination, to strengthen relationships and the<br />

fl ow of communication between TIKZN and all<br />

spheres of government.<br />

CONTACT INFO<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Office:<br />

Trade & Investment House, 1 Arundel Close,<br />

Kingsmead Offi ce Park, Durban, 4001<br />

Tel: +27 31 368 9600<br />

Fax: +27 31 368 5888<br />

Gauteng Office:<br />

99 George Storrar Avenue, Groenkloof,<br />

Pretoria, 0181<br />

Tel: +27 12 346 4386 / 6763<br />

Fax: +27 12 501 1788<br />

info@tikzn.co.za<br />

www.tikzn.co.za<br />

www.exportportal.co.za


02<br />

FOCUS<br />

INTRODUCING<br />

THE PROVINCE OF<br />

KWAZULU-NATAL<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is a coastal province<br />

and home to two of Africa’s largest and busiest seaports<br />

THE SECOND<br />

LARGEST<br />

provincial economy has<br />

much to offer local and<br />

international investors,<br />

contributing on average<br />

16% to the national GDP.<br />

South Africa is one of the world’s<br />

top business destinations and is<br />

strongly supported by well-developed<br />

infrastructure; the province is equipped<br />

with every convenience and delivers high<br />

levels of service expected by the business<br />

world. South Africa is rated number one in<br />

obtaining credit and is also rated among<br />

the top 10 in the world in the category<br />

of investor protection and good fiscal<br />

governance. The World Bank has rated<br />

South Africa among the top 35 countries<br />

for ease of doing business. It is also<br />

regarded as one of the least costly areas<br />

in which to establish a business.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is a major role-player in<br />

both the manufacturing, transport and<br />

logistics sectors in South Africa and is<br />

a premier domestic and international<br />

tourist destination. Dube TradePort<br />

Aerotropolis, which includes King Shaka<br />

International Airport, the Inkosi Albert<br />

Luthuli International Convention Centre<br />

and two of the largest ports on the Sub-<br />

Saharan African continent (the ports of<br />

Richards Bay and Durban), are proof of<br />

the province’s world-class infrastructure.<br />

Investment in <strong>KwaZulu</strong>-<strong>Natal</strong> continues<br />

to emerge as a major contributor to<br />

South Africa’s growing economy and its<br />

favourable business environment has<br />

made the province a sound investment<br />

destination for investors around the world.


KWAZULU-NATAL IS AN IMPORTANT<br />

HUB OF INDUSTRIAL DEVELOPMENT<br />

IN SUB-SAHARAN AFRICA THANKS TO<br />

ITS RICH NATURAL RESOURCES AND<br />

WELL-DEVELOPED INFRASTRUCTURE.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is located on the Eastern seaboard of<br />

South Africa, lapped by the waters of the Indian Ocean.<br />

DOING BUSINESS IN KWAZULU-NATAL<br />

Capital City<br />

Main Cities and Towns<br />

Provincial Head<br />

Pietermaritzburg<br />

Durban, Ladysmith, Newcastle, Port Shepstone, Richards Bay<br />

Mr T.W. Mchunu<br />

POPULATION:<br />

11.07<br />

MILLION<br />

(census – 2017)<br />

ECONOMICALLY ACTIVE<br />

POPULATION:<br />

3.36<br />

MILLION<br />

(Q3 2017)<br />

UNEMPLOYMENT<br />

RATE:<br />

24.6%<br />

MILLION<br />

(Q3 2017)<br />

AREA:<br />

94 361km 2<br />

REAL GDPR:<br />

R489,9 MILLION<br />

(2016)<br />

ECONOMIC<br />

OVERVIEW<br />

The province of <strong>KwaZulu</strong>-<strong>Natal</strong> has South<br />

Africa’s second-largest local economy,<br />

contributing 16% to the national economy,<br />

and is deemed to be one of the country’s<br />

leading economic and business hubs.<br />

According to Statistics South Africa’s<br />

2017 population census, the province<br />

of <strong>KwaZulu</strong>-<strong>Natal</strong> is the second most<br />

populous province following Gauteng<br />

Province.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is an important hub of<br />

industrial development in Sub-Saharan<br />

Africa thanks to its rich natural resources<br />

and well-developed infrastructure.<br />

Economic activities in the province<br />

are mainly concentrated around the<br />

Port of Durban and the inland city of<br />

Pietermaritzburg, with further signifi cant<br />

contributions in the Richards Bay/<br />

Empangeni area, the Ladysmith/Ezakheni<br />

area and the Newcastle/Madadeni regions,<br />

as well as in the Ugu/Port Shepstone<br />

region.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is a competitive region for<br />

foreign investment, and more especially<br />

export opportunities through the Port of<br />

Durban.<br />

The province has identifi ed prime targets<br />

for inward investment, including textiles,<br />

clothing, plastic products, chemicals,<br />

fabricated-metal products, automotive<br />

components, wood and wood products,<br />

footwear, machinery and appliances,<br />

business process outsourcing and<br />

boatbuilding. Of these, primary and<br />

processed aluminium at world-competitive<br />

prices from local suppliers provides a real<br />

opportunity for investors in these sectors.


Richard’s Bay being the largest bulk coal terminal in the world<br />

(more than 80 million tons of coal a year are routed through the port)<br />

TOURISM ATTRACTION STRUCTURED<br />

AROUND 8 TOURISM DESTINATIONS<br />

INDUSTRY<br />

Richards Bay is the<br />

centre of operations<br />

for South Africa’s<br />

aluminium industry.<br />

GDPR GROWTH:<br />

0.43%<br />

(2016)<br />

PER CAPITAL GDPR:<br />

R44 779<br />

(2016)<br />

CPI: 3.9%<br />

(NOVEMBER 2017)<br />

EXPORTS: R125.62<br />

BILLION<br />

The Richards Bay Coal Terminal<br />

is one of the leading coal export<br />

terminals in the world and the world’s<br />

largest single coal terminal, while<br />

Richards Bay Minerals is recognised<br />

as a world leader in sand mining and<br />

mineral processing operations.<br />

The vehicle manufacturing industry<br />

has created a considerable multiplier<br />

effect in terms of component<br />

manufacturing and aftermarket<br />

service. The automotive leather<br />

industry has grown rapidly, with<br />

exports signifi cantly boosting foreign<br />

exchange earnings.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has also recently<br />

benefi ted from rapid industrialisation,<br />

thanks to its abundant labour<br />

resources and Sub-Saharan Africa’s<br />

economic expansion. Numerous<br />

industries are located at Newcastle,<br />

Ladysmith, Dundee, Richards Bay,<br />

Durban, Hammarsdale, Richmond,<br />

Pietermaritzburg and Mandeni. The<br />

King Shaka International Airport<br />

became operational in May 2010, and<br />

planning is progressing aggressively<br />

to implement Africa’s fi rst green<br />

aerotropolis around this airport.<br />

TOURISM<br />

Tourism is a key driver of the<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> economy. The<br />

province’s tourism attractions are<br />

structured around eight tourism<br />

destinations, namely Durban,<br />

Dolphin Coast (North), South Coast,<br />

Zululand, Pietermaritzburg and<br />

Midlands, Drakensberg, Elephant<br />

Coast and Battlefi elds. Better known<br />

by tourists as the “Zulu Kingdom”,<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is a tapestry of warm,<br />

subtropical coastal areas, Big Five<br />

game reserves, two World Heritage<br />

Sites (the uKhahlamba-Drakensberg<br />

Park and the Isimangaliso Wetlands<br />

Park), authentic cultural routes and<br />

world-renowned historical battlefi elds.<br />

The province enjoys the lion’s share<br />

of the domestic tourism market<br />

and a growing share of South<br />

Africa’s international tourism market,<br />

attracting approximately one-million<br />

foreign visitors and 10.9-million<br />

domestic tourists annually.<br />

Tourism growth is underpinned<br />

by innovative tourism marketing,<br />

new and existing tourism-product<br />

development and a well-established<br />

tourism service industry.


SOUTH AFRICAN GATEWAY<br />

TO OTHER AFRICAN COUNTRIES<br />

The manufacturing sector is geared for export,<br />

with nearly a third of South Africa’s manufactured<br />

exports being produced in <strong>KwaZulu</strong>-<strong>Natal</strong><br />

TWO OF THE<br />

LARGEST AND<br />

BUSIEST PORTS<br />

IN SUB-SAHARAN AFRICA –<br />

DURBAN AND RICHARDS BAY<br />

REASONS TO INVEST IN KWAZULU-NATAL<br />

• Large labour pool<br />

• Diverse culture<br />

• Idyllic climate<br />

• Access to basic services<br />

• Excellent infrastructure and logistics<br />

• Gateway to other African countries<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s Information<br />

Communication and Technology,<br />

machinery and equipment sector<br />

absorbs roughly half of the total<br />

investment fl owing into the region<br />

while manufacturing attracts about a<br />

third of all investment.<br />

Tourism is a key driver of economic<br />

growth and an important catalyst for<br />

future economic development.<br />

INVESTMENT OPPORTUNITIES<br />

The province of <strong>KwaZulu</strong>-<strong>Natal</strong> offers<br />

competitive investment advantages<br />

and opportunities, enhancing<br />

this region’s status as a preferred<br />

investment destination.<br />

DUBE TRADEPORT<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s continued success<br />

in international trade is enhanced<br />

through improved transport and<br />

logistics infrastructure.<br />

The Dube TradePort, which is home<br />

to the King Shaka International<br />

Airport, incorporates an industrial<br />

development zone and will be linked<br />

with the existing seaports of Durban<br />

and Richards Bay.<br />

This new development will include<br />

key components such as a cargo<br />

terminal, Tradezone, support zones<br />

and the Agrizone. It will present<br />

a new-generation, multi-faceted<br />

economic hub for the province and<br />

the country at large. The multi-nodal,<br />

integrated logistics platform bodes<br />

well for sustainable job creation<br />

and the attraction of further fi xed<br />

investment.<br />

The expanded capability of the<br />

new international airport, a key<br />

component of the development, will<br />

create enhanced levels of service<br />

in the movement of time-sensitive<br />

manufactured goods and perishables<br />

to the global market.


DURBAN<br />

HARBOUR<br />

DURBAN HARBOUR IS SOUTH AFRICA’S<br />

PREMIER MULTI-CARGO PORT,<br />

HANDLING OVER 80M TONS OF CARGO<br />

PER ANNUM<br />

A catalyst for global trade in Africa that brings together<br />

an international airport, a cargo terminal, warehousing,<br />

offi ces, a retail sector, hotels and an agricultural area<br />

THE PORT OF<br />

DURBAN<br />

is South Africa’s premier<br />

multi-cargo port and<br />

is counted among the<br />

busiest ports in Africa,<br />

handling over 80 million<br />

tons of cargo per annum.<br />

The Port of Durban is the leading port in<br />

the SADC region and the premier trade<br />

gateway between South-South trade, Far<br />

East trade, Europe & USA, East & West<br />

Africa regional trade. It is the international<br />

commercial gateway to South Africa and<br />

is strategically positioned on the world<br />

shipping routes. It is one of the few ports<br />

in the world located in close proximity to<br />

the central business district.<br />

The Port of Durban occupies a focal point<br />

in the transport and logistics chain with<br />

60% of all imports and exports passing<br />

through the port, thus it assumes a<br />

leading role in facilitating economic growth<br />

in South Africa.<br />

RICHARDS BAY HARBOUR<br />

The port is one of South Africa’s eight<br />

operational commercial ports under<br />

the auspices of the Authority with great<br />

potential to play a key role in the shaping<br />

of South Africa’s future growth and<br />

prosperity.<br />

The combination of specialised cargo<br />

handling facilities, fast vessel turnaround,<br />

deep water infrastructure, excellent<br />

rail links to the hinterland and the large<br />

greenfi eld development potential,<br />

has made the port one of the world’s<br />

leading bulk ports, handling in excess<br />

of 80-million tons annually, representing<br />

approximately 60% of South Africa’s<br />

seaborne cargo.


SHIPBUILDING SECTOR GENERATES<br />

R1 BILLION PER ANNUM<br />

THE OCEAN<br />

ECONOMY<br />

The <strong>KwaZulu</strong>-<strong>Natal</strong> province is ideally<br />

situated to capitalise on the blue<br />

economy, as it boasts two of the Sub-<br />

Saharan continent’s largest ports as well<br />

as vast unexploited inland waterways,<br />

and incorporating a 600km coastline.<br />

Studies have shown that the country’s<br />

oceans could generate an estimated<br />

GDP contribution of between R129 and<br />

R177 billion, by 2033.<br />

Freight and logistics are centred<br />

primarily around two major transport<br />

hubs, namely the ports of Richards<br />

Bay and Durban, which are in turn<br />

connected to national and regional road<br />

and rail networks.<br />

Present estimates indicate that the local<br />

shipbuilding sector currently generates<br />

in excess of R1 billion per annum of<br />

which 68% is in foreign currency. KZN<br />

is the country’s second most prolifi c<br />

boat building province and close onto<br />

6 000 vessels visit the ports of Durban<br />

and Richards Bay, each year, thereby<br />

providing a steady stream of potential<br />

vessel repair opportunities.<br />

KZN is growing in the freshwater<br />

aquaculture sector, most of the trout<br />

farms are located within the midlands,<br />

while ornamental koi carp, catfi sh and<br />

tilapia are also evident throughout the<br />

province. The province’s large number<br />

of inland cold water tributaries is another<br />

contributing factor towards its<br />

potential status as a prominent<br />

aquaculture centre.


Pietermaritzburg campus, located in the scenic <strong>Natal</strong><br />

Midlands, is an example of rich architectural heritage with<br />

an innovative academic programme.<br />

LIVING IN<br />

KWAZULU-<br />

NATAL<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> represents a microcosm<br />

of the economic and social conditions<br />

of South Africa as a whole. In an<br />

idyllic climate that lends itself to an<br />

enviable, relaxed lifestyle, the businessfriendly<br />

environment includes cuttingedge<br />

fi nancial institutions, providing<br />

specialised and professional business<br />

services in all fi elds. Combined with its<br />

abundant natural resources and diverse<br />

cultures, <strong>KwaZulu</strong>-<strong>Natal</strong> offers a worldclass<br />

business destination, where doing<br />

business is a pleasure.<br />

HOUSING AND ACCOMMODATION<br />

Most homes in <strong>KwaZulu</strong>-<strong>Natal</strong> are<br />

sold or leased through a licensed realestate<br />

agent. A list of estate agents per<br />

geographic area may be found on<br />

www.propertywebsa.co.za or<br />

www.myproperty.co.za.<br />

EDUCATION<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has two universities,<br />

including one of the country’s largest<br />

universities, the University of <strong>KwaZulu</strong>-<br />

<strong>Natal</strong>, which spans fi ve campuses, one<br />

in Pietermaritzburg and the remainder<br />

in the greater Durban area. There<br />

are several technical colleges, the<br />

fl agship being the Durban University of<br />

Technology.<br />

There are also a large number of training<br />

institutions offering career training.<br />

Elementary, primary and secondary<br />

schools may be found throughout every<br />

urban neighbourhood in <strong>KwaZulu</strong>-<strong>Natal</strong>,<br />

some of which are ranked among South<br />

Africa’s best schools.<br />

For further information, see<br />

www.kzneducation.gov.za<br />

www.kzneducation.gov.za.


HOME TO AWARD-WINNING GOLF<br />

COURSES AND A HOST OF WORLD-CLASS<br />

FESTIVALS AND EVENTS<br />

HEALTH AND WELFARE<br />

Throughout South Africa, both public and<br />

private healthcare is offered. Many corporate<br />

employers offer a subscription or a partially<br />

subsidised subscription to a medical<br />

insurance fund or medical aid fund.<br />

Primary healthcare is available free of charge<br />

at all government hospitals.<br />

The province generously caters for almost<br />

every taste imaginable from historical sites,<br />

game reserves and country meanders to arts<br />

and crafts, the infamous bunny chow and<br />

fascinating cultural experiences. <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> is also home to award-winning golf<br />

courses and a host of world-class festivals<br />

and events.<br />

For more information on the <strong>KwaZulu</strong>-<strong>Natal</strong><br />

Health Department, you can visit<br />

www.kznhealth.gov.za.<br />

LEISURE<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s subtropical coastline is<br />

washed by the warm waters of the Indian<br />

Ocean, the hinterland is swept by sweet<br />

savannah and the province is protected<br />

by the towering magnifi cence of the<br />

Drakensberg Mountains.


INTERVIEW<br />

Improving valuations and rating<br />

Janet Channing, Managing Director of MetGovis, explains the<br />

importance of reliable property information.<br />

BIOGRAPHY<br />

Janet Channing, Managing<br />

Director of MetGovis, is a registered<br />

professional property<br />

valuer. Janet has extensive<br />

experience within local<br />

government, specifically in the<br />

areas of municipal valuation<br />

and rating. Janet is a member<br />

of the South African Council for<br />

the Property Valuers Profession<br />

and the South African Institute of<br />

Valuers, where she served on the<br />

KZN Branch Executive. Janet’s<br />

qualifications include a Master's<br />

in Applied Ethics, National<br />

Diploma in Real Estate, a project<br />

management diploma and a<br />

post-graduate diploma in human<br />

resources management. She is<br />

a RICS commercial mediator,<br />

an accredited trainer, moderator<br />

and assessor. She endorses the<br />

need for an accurate geospatial<br />

property register as the hub for<br />

all property related data within<br />

municipalities.<br />

What does MetGovis do?<br />

MetGovis provides property software and consultancy solutions to<br />

clients within the public sector. Our core business provides technology<br />

solutions to support municipal valuations and rating processes. The<br />

flagship solution is a valuation roll management system known as<br />

MetVal.<br />

This solution interfaces with the municipal billing systems and extracts<br />

business intelligence to inform and develop revenue management<br />

strategies for municipalities. The process starts with an assessment<br />

of how completely and correctly a municipality is currently billing,<br />

where there is “revenue slippage” and how it may be done better. The<br />

MetGovis InSight product provides accessible spatial reports showing<br />

the details decision-makers need. Pictures and maps are quick to<br />

interpret and understand.<br />

Why is the Municipal Regulations on a Standard Chart of<br />

Accounts (mSCOA) important?<br />

mSCOA prescribes the standardisation of local government budgeting,<br />

transacting and reporting to ensure transparency and improve<br />

account-ability in municipal finance management. The objective is<br />

better reporting uniformity and easier comparison of information<br />

in respect of revenue, expenditure, assets and liabilities.<br />

Valuation rolls are an important asset, containing as they do the<br />

market values for all registered properties. The valuation roll is<br />

housed and maintained within a valuation roll management system,<br />

such as MetVal.<br />

Why is an accurate spatial property register important?<br />

The spatial property register comprises all registered and unregistered<br />

properties within the municipal jurisdiction. This is the single<br />

version of the truth and the hub of all property-related data within<br />

the municipality. All revenue needs to be reported against its source<br />

and all expenditure should be reported against where the services<br />

are delivered. An accurate property register and the right software<br />

reporting platform is like having “municipal google in your pocket”.<br />

Where are you active?<br />

We have an extensive national footprint and our clients in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> include Newcastle, Msunduzi, uMhlathuze, Umvoti, Ulundi,<br />

Mthonjaneni and uPhongolo.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

20


WE MAKE IT EASY<br />

MetGovis is the leader in property<br />

& revenue management solutions<br />

ACCESSIBLE RESPONSIVE TECHNOLOGY PLATFORM<br />

MetVal<br />

mSCOA enabled and MPRA compliant Valuation Roll<br />

Management System to manage the entire valuations and<br />

rating process.<br />

MetVal integrates the consolidated financial and valuation rolls<br />

with the relevant municipal billing system on a roll-by-roll basis.<br />

MetVal uses an Automated Programmatic Interface (API) to achieve<br />

seamless integration.<br />

The system's CAMA provides regression modeling for the mass valuation<br />

of property for municipal rating purposes.<br />

MetVal provides a suite of standard reports including for all the statutory notices<br />

required by the MPRA under sections 49, 53 and 78.<br />

MetVal works in real-time to maximise municipal revenue by maintaining the valuation<br />

roll and integrating with the billing system.<br />

MetVal has a sophisticated audit trail and other security features that promote good<br />

governance, accountability and transparency for all users of the system.<br />

InSight<br />

OUR SERVICES<br />

MetVal Valuation Roll Management System<br />

mSCOA Enabled & MPRA Compliant<br />

Property Valuation and Consulting<br />

InSight - Revenue Management<br />

Training & Skills Development<br />

Rates Consultancy Services<br />

Software Development<br />

Asset Management<br />

Lease Management<br />

A toolkit that uses spatial reporting to identify billing discrepancies and sources of ‘unknown’ revenue<br />

thereby supporting effective municipal revenue management.<br />

Roll Validation<br />

GIS Services<br />

A complete and accurate geospatial property register will provide municipalities with the relevant spatial<br />

details to identify where arrears are being incurred, to map their debtor analysis and to acknowledge the origin<br />

of their revenue.<br />

The benefits to the municipality are a comprehensive spatial report indicating how completely and how correctly<br />

the municipality is billing. This revenue intelligence will support a Clean Audit result for the municipality.<br />

Please contact us on 033 343 2868, via email at<br />

admin@metgovis.co.za or visit our website at<br />

www.metgovis.co.za<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


SPECIAL FEATURE<br />

Durban’s inner city is to be<br />

revitalised<br />

New plans and a North Coast boom offer investment opportunities in eThekwini.<br />

The metropolitan municipality of eThekwini stretches from<br />

Umkomaas in the south to the King Shaka International Airport<br />

in the north, Cato Ridge on the N3 marks the western boundary<br />

with Durban’s harbour mouth the easternmost point.<br />

The city of Durban is growing fast and it is growing in two quite different<br />

ways – northwards in the vicinity of Umhlanga and the airport,<br />

and upwards in the inner city as densification becomes a key priority<br />

in boosting the city economy and improving the lives of its residents.<br />

The inner city re-imagined<br />

Six years ago, the eThekwini Municipality adopted a densification strategy<br />

which entails careful planning along three main urban corridors<br />

which connect to the city centre. Land-use management along these<br />

corridors will encourage diverse investments while at the same time<br />

introducing an Integrated Rapid Public Transport Network (IRPTN).<br />

An Inner City Local Area Plan (LAP) for Durban has been developed<br />

that aims to make the inner city of Durban “Africa’s leading, most<br />

vibrant, liveable, walkable City Centre”.<br />

Developed for the Strategic Planning unit of the eThekwini<br />

Municipality by a Joint Venture called IPPU, the LAP is based on four<br />

main principles:<br />

• the connected city: tackling the legacy of the disconnected city of<br />

apartheid, the plan promotes the integration of different modes of<br />

transport (bus, taxi, pedestrian, rail, etc).<br />

• the walkable city: the aim is for residents to be five minutes’ walk<br />

from public transport, shops, schools, healthcare facilities. A good<br />

variety of residential accommodation is key.<br />

• land-use intensity: the plan proposes that land-use approvals be<br />

more flexible, allowing for more variety and greater density. The<br />

plan cites an example of art gallery at street level, with offices above<br />

and accommodation on top. If more people live in an area, then<br />

shops become more viable and it is easier to provide bulk services.<br />

• starting with small projects and finding ways of championing the<br />

development of the inner city.<br />

The IPPU Joint Venture comprises Iliso, TPI, PMSA, UrbanEcon including<br />

Cox Architecture, Urban Solutions, Urban Earth, Jo Lees and Joe<br />

Kitching.<br />

The Point Waterfront Development is a major project that is in<br />

the process of transforming<br />

what was an under-utilised<br />

and somewhat rundown part<br />

of the city into a vibrant, multiuse<br />

precinct.<br />

Some projections put the total<br />

potential investment value of<br />

the project at R40-billion and the<br />

number of permanent jobs to be<br />

created at 6 750. It is an ambitious<br />

plan that links the city's beach<br />

promenade and the harbour. It<br />

offers a property use mix of office<br />

space, retail shops, residential<br />

dwellings and leisure options. The<br />

55ha site has already seen significant<br />

investment. A cruise terminal<br />

in the harbour backing on to the<br />

Point has been approved.<br />

Other major projects in the<br />

inner city include:<br />

• the Warwick Junction transport<br />

interchange which has<br />

received road upgrades but<br />

could be an even greater<br />

enabler of trade<br />

• the Centrum Government<br />

Precinct which will formalise<br />

the relationship between<br />

buildings such as the<br />

International Convention<br />

Centre and a related hotel, the<br />

library, council chambers and<br />

the redevelopment of Gugu<br />

Dlamini Park.<br />

Northwards<br />

Two things have changed the<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

22


SPECIAL FEATURE<br />

landscape of the area north of the city of Durban. The one<br />

is the building of the King Shaka International Airport and<br />

the associated Dube TradePort; the other is the conversion<br />

by sugar giant Tongaat Hulett of its land holdings<br />

into property developments.<br />

Dube TradePort is a 3 000-hectare development that<br />

encompasses the airport and is ideally situated for any<br />

logistics business as it is very close to Africa’s busiest cargo<br />

port (at Durban) and 140km from the deepest natural<br />

harbour in the southern hemisphere where the Port of<br />

Richards Bay and the Richards Bay Industrial Development<br />

Zone (RBIDZ) are located.<br />

Dube TradePort is a Special Economic Zone and it<br />

encompasses:<br />

• Dube Cargo Terminal.<br />

• Dube Tradezone: 77 hectares, with plans in place for 300<br />

hectares, fully-serviced industrial estate within the SEZ.<br />

Suitable for warehousing, manufacturing, assembling,<br />

cargo distribution, etc.<br />

• Dube City: 12 hectares of office, retail and hospitality<br />

space.<br />

• Dube Agrizone: intended to support<br />

growing, packaging and distribution<br />

of high-value perishables<br />

and horticultural products.<br />

• Dube iConnect: the precinct’s dedicated<br />

IT and telecommunications<br />

provider and the only locally hosted<br />

cloud service in the province.<br />

The 1 300-hectare Cornubia integrated<br />

human settlement development<br />

is a huge undertaking. Tongaat<br />

Hulett Development, the eThekwini<br />

Municipality and the national and<br />

provincial departments responsible<br />

for housing are working together on<br />

a series of developments that aim<br />

to integrate working and living so<br />

that people do not have to travel vast<br />

distances to and from work.<br />

The southern part of the project<br />

will cater for 24 000 homes, 170 hectares<br />

of industrial land and more<br />

than one-million square metres of<br />

commercial floor space. This will<br />

be complemented by public open<br />

spaces (430 hectares) and social and<br />

community facilities.<br />

The Cornubia Industrial and<br />

<strong>Business</strong> Estate is already almost<br />

sold out and the Cornubia Retail<br />

Park is likely to attract considerable<br />

interest because of its location on<br />

the M41.<br />

Two other Tongaat Hulett<br />

developments on the North Coast<br />

are progressing rapidly:<br />

• Sibaya: bisected by the M4, this<br />

area has the Sibaya Casino complex<br />

and is intended to cater for<br />

resort-style accommodation, hotels,<br />

conference and entertainment<br />

facilities and office parks.<br />

• Ridgeside: between the M4 freeway<br />

and the Umhlanga Ridge<br />

Town Centre, residential and office<br />

space.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

24


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FOCUS<br />

Supertech takes top honours<br />

The Supertech Group took top honours at the BMW SA National<br />

Dealer Awards.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s biggest BMW dealership group, Supertech<br />

Group, was a big winner at the BMW South African National<br />

Dealer Awards for 2017.<br />

With the acquisition of two new dealerships in Pietermaritzburg<br />

and Shelly Beach, 2017 was an exciting year for the Supertech Group. Group<br />

Chairman Shabir Tayob said he was proud of the three dealerships that<br />

took awards and looks forward to seeing the two new dealerships take<br />

awards at the next awards event.<br />

The group now has dealerships in Durban, Pinetown, Newcastle, Shelly<br />

Beach and Pietermaritzburg. Supertech also runs two BMW-approved<br />

repair centres in the province.<br />

Altogether, the Supertech Group won seven first-place awards with<br />

Supertech Durban winning the prestigious Retail Dealer of the Year<br />

(Large to Extra-Large) for the third consecutive year. Durban also won<br />

the M-Dealer of the Year and BMW Finance Dealer of the Year.<br />

The Supertech Newcastle dealership, which falls in the Extra Small-to-<br />

Medium Category, took the highly acclaimed Dealer of the Year and the<br />

Retail Dealer of the Year.<br />

Finally, Supertech<br />

Pinetown took the overall<br />

Best Customer Service<br />

Award in the country.<br />

The Pinetown team also<br />

received second place in<br />

the BMW Finance Dealer<br />

of the Year in the Extra<br />

Small-to-Medium dealer<br />

Supertech Group Managing Director M Ubaid Tayob (right) and<br />

Chairman Shabir Tayob accept the Dealer of the Year in the XL<br />

– L category from BMW SA and Sub Sahara Managing Director<br />

Tim Abbott and BMW SA and Sub Sahara Sales and Marketing<br />

Director Lou-Anne Fitzsimons.<br />

CONTACT INFO<br />

Physical address: 8 Cliff Crescent, Bellair, Durban<br />

Postal address: PO Box 41033, Rossburgh 4072<br />

Telephone: +27 31 465<strong>19</strong>81<br />

Email: yusuf.moolla1@bmwdealer.co.za<br />

Website: www.supertechgroup.co.za<br />

category.<br />

The Supertech<br />

Durban and Newcastle<br />

Aftersales teams also<br />

stole the show at the National<br />

Aftersales Awards held several days<br />

after the Sales Awards.<br />

Supertech Group Managing<br />

Director M Ubaid Tayob said he<br />

was extremely proud of his team<br />

for the wonderful achievements.<br />

“We would not be here if it was not<br />

for the support of our customers. For<br />

our loyal customers that have always<br />

been with Supertech, I thank you for<br />

always making the Supertech Group<br />

your preferred dealership, and for<br />

customers that have just joined the<br />

Supertech family through sales or<br />

service, I thank you for giving us the<br />

chance to give you excellent service<br />

and I hope that you stay with the<br />

Supertech family for many years to<br />

come.” He added that the Durban<br />

dealership is the only Extra-Large<br />

Dealership in the country, and as<br />

the flagship dealership, had to set<br />

the example for the group.<br />

He also shared his gratitude<br />

for the Group’s strong partnership<br />

with BMW Finance and thanked the<br />

finance team for their continued<br />

support. Mr Tayob thanked BMW<br />

SA and their directors for believing<br />

in his dream to grow the brand<br />

and putting their faith and support<br />

behind the Group.<br />

This is indeed a milestone as the<br />

group positions itself as the largest<br />

BMW Group in <strong>KwaZulu</strong>-<strong>Natal</strong> and<br />

one with a strong reputation of excellence<br />

in service while creating<br />

exciting experiences for each client.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

26


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1 Albert Wessels Drive, Newcastle<br />

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141 Josiah Gumede Road, Durban<br />

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SPECIAL FEATURE<br />

New areas are attracting<br />

investment<br />

Industrial parks are planned for every district in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

The large and busy ports of <strong>KwaZulu</strong>-<strong>Natal</strong> inevitably attract a<br />

good proportion of investor interest but the varied opportunities<br />

that the province holds for good business propositions<br />

goes far beyond Durban and Richards Bay, which is also home<br />

to the Richards Bay Industrial Development Zone.<br />

The Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> intends establishing<br />

one industrial park within each of the province’s 10 district municipalities,<br />

focussing on existing strengths. These industry-focused hubs will<br />

attract new investments and help existing businesses through economies<br />

of scale and by improving access to markets and supply chains.<br />

MUNICIPALITIES IN KWAZULU-NATAL<br />

There is one metropolitan municipality in <strong>KwaZulu</strong>-<strong>Natal</strong>. Construction<br />

on the industrial park in the eThekwini SWAZILAND Metropolitan Municipality, an<br />

automobile supplier park, is expected to begin in 20<strong>19</strong>.<br />

In most of the Mpumalanga other areas, land has been secured and feasibility studies<br />

have been completed. The design of the parks and the provision<br />

Umhlabuyalingana<br />

of infrastructure is currently under way and some tenants have been<br />

Jozini<br />

identified. The Department of eDumbe Economic Development, uPhongolo Tourism and<br />

Free State<br />

KZDMA23<br />

LESOTHO<br />

Ukhahlamba<br />

KZDMA23<br />

KZDMA22<br />

KZDMA43<br />

Greater<br />

Kokstad<br />

uThukela<br />

Sisonke<br />

eMadlageni<br />

Newcastle<br />

Amajuba<br />

Dannhauser<br />

Emnambithi/<br />

Ladysmith<br />

Imbabazane<br />

Kwa<br />

Sani<br />

Eastern Cape<br />

Endumeni<br />

Nqutu<br />

uMzinyathi<br />

Indaka<br />

uMtshezi<br />

Msinga<br />

Ugu<br />

Umzumbe<br />

uMvoti<br />

Nkandla<br />

Zululand<br />

Mthonjaneni<br />

uThungulu<br />

uMlalazi<br />

Ntambanana<br />

Mpofana<br />

KwaDukuza<br />

Maphumulo<br />

uMshwathi<br />

uMngeni<br />

iLembe Mandeni<br />

uMgungundlovu<br />

Impendle<br />

Msunduzi<br />

Maphumulo<br />

eThekwini<br />

Richmond<br />

Metropolitan<br />

Ingwe<br />

Municipality<br />

Mkhambathini<br />

uMzimkulu<br />

uMuziwabantu<br />

uBuhlebezwe<br />

Ezinqoleni<br />

Vulamehlo<br />

Hibiscus Coast<br />

Umdoni<br />

Abaqulusi<br />

Ulundi<br />

Nongoma<br />

KZDMA27<br />

uMkhanyakude<br />

Hlabisa<br />

Mbonambi<br />

uMhlathuze<br />

The Big<br />

Five<br />

False<br />

Bay<br />

Mtubatuba<br />

INDIAN OCEAN<br />

MOZAMBIQUE<br />

KZDMA27<br />

N<br />

Metropolitan/District Municipality Boundary<br />

Local Municipality Boundary<br />

District Municipality<br />

Amajuba<br />

Local Municipality<br />

uMlalazi<br />

Environmental Affairs is the implementing<br />

agency on behalf of the<br />

Provincial Government.<br />

Possible investment opportunities<br />

in these districts have been<br />

identified by Trade & Investment<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> (TIKZN).<br />

DISTRICT MUNICIPALITIES<br />

AMAJUBA<br />

Industrial park focus: clothing<br />

and textiles.<br />

The economic powerhouse is<br />

Newcastle: coal-mining, steel<br />

processing, chemicals and textile<br />

manufacturing are major activities.<br />

Some old coal mines are being reopened<br />

by new coal companies. The<br />

rail line to Gauteng runs through<br />

the area and the R34 carries road<br />

traffic to Richards Bay. Game farms,<br />

trout fishing and hiking are part of<br />

an attractive package for tourists,<br />

and Zululand is popular for cultural<br />

experiences and the area is rich in<br />

Anglo-Boer War history.<br />

Possible investment: the cultivation<br />

and processing of soya beans.<br />

South Africa has a high demand for<br />

oilseed cake but the country is a<br />

net importer of soybean products.<br />

HARRY GWALA<br />

Industrial park focus: furniture<br />

and dairy.<br />

Good soils, dramatic mountain<br />

landscapes and a plentiful supply<br />

of water help to make this district<br />

perfectly suited to dairy farming,<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

28


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SPECIAL FEATURE<br />

forestry and tourism. The main towns are Kokstad and Ixopo. The<br />

Drakensberg Mountains define the district’s western boundary. The<br />

Harry Gwala Development Agency facilitates investment.<br />

Possible investment: the HGDA believes that niche sectors such<br />

as avi-tourism (birding), rail tourism and mission tourism hold great<br />

potential. Ten percent of the milk produced in South Africa comes<br />

from this area, and volumes are set to grow.<br />

ILEMBE<br />

Industrial park focus: renewable energy.<br />

The N2 is the main arterial running through the district, giving excellent<br />

access to both Durban and Richards Bay. The Dolphin Coast is<br />

a major node for tourism. With the King Shaka International Aiport<br />

(KSIA) and the Dube TradePort lying just south of the iLembe District<br />

in the eThekwini Municipality, a partnership has been created between<br />

the two municipalities and the provincial government to develop a<br />

renewable energy technology innovation hub. Enterprise iLembe<br />

(Pty) Ltd drives investment into the area. At Ndwedwe, 26 biodigesters<br />

produce gas for cooking as part of the Working for Energy programme<br />

of the South African National Energy Development Institute (SANEDI).<br />

Possible investment: a 250-room resort, Nonoti Beach Resort, at<br />

KwaDukuza (formerly Stanger). This would include self-catering units,<br />

a conference facility and six restaurants.<br />

KING CETSHWAYO<br />

Industrial park: Richards Bay Industrial Development Zone<br />

The Richards Bay Industrial Development Zone (RBIDZ) is located<br />

within the district municipality and is a major economic node in itself<br />

because of its huge coal export terminal, deepsea port and aluminium<br />

smelters. Mining is an important sector in this region. The other major<br />

urban centre is Empangeni which has several educational institutions,<br />

including the University of Zululand.<br />

Possible investments: key sectors include agri-processing, ICT and<br />

telecommunications, manufacturing (proximity to aluminium works<br />

opens possibility for the manufacture of discs, pistons and beverage<br />

cans), logistics and renewable energy. The RBIDZ offers very attractive<br />

local and national incentives and support for investors.<br />

Shepstone and Margate, which<br />

has an airport. The Ugu South<br />

Coast Development Agency<br />

is dedicated to supporting<br />

inward investment. Bananas are<br />

the main product of a thriving<br />

agriculture sector. One banana<br />

farm has successfully been<br />

converted into a speciality<br />

coffee producer. Beaver Creak<br />

makes about seven tons of<br />

coffee every year near Port<br />

Edward, just south of which<br />

Caribbean Estates offers<br />

accommodation at the mouth<br />

of the Umtamvuna River on the<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>/Eastern Cape<br />

border.<br />

Possible investments, both at<br />

Umtentweni Beach: Hibberdene<br />

mixed-use development including<br />

a service station, residential<br />

and commercial components;<br />

John Mason Park, an area with sea<br />

frontage, conference and amphitheatre<br />

facilities, a 100-room hotel,<br />

residential units, a water park and<br />

a skate park. Ugu District has three<br />

industrial estates – Shelley Beach,<br />

Marburg and Ifafa (being developed).<br />

Furniture manufacturing<br />

could be a good option, taking<br />

advantage of the nearby plantations.<br />

In agri-processing there is<br />

scope for expansion of timber and<br />

sugar cane and for the processing<br />

of tea tree oil and aloe essential oils.<br />

The Umtamvuna River is one of the many<br />

tourist attractions in the Ugu District.<br />

UGU<br />

Industrial park focus:<br />

processed perishable goods.<br />

Excellent beaches, a subtropical<br />

climate and good<br />

tourism infrastructure<br />

make the South Coast a<br />

very attractive destination.<br />

Large towns include Port<br />

UMGUNGUNDLOVU<br />

Industrial park focus: leather<br />

processing.<br />

This is a fertile agricultural region,<br />

producing sugar cane, fruit,<br />

animal products, forestry and<br />

dairy products. Pietermaritzburg<br />

is the provincial capital and home<br />

to a major aluminium producer<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

30


FOCUS<br />

Pietermaritzburg’s Edendale Town<br />

Centre is being transformed to attract<br />

investment.<br />

along with several manufacturing<br />

concerns, including textiles,<br />

furniture, leather goods and food.<br />

The city has good transport links<br />

along the N3 national highway,<br />

excellent schools and a lively arts<br />

scene. The Midlands Meander is a<br />

popular tourist destination<br />

Possible investment: the<br />

manufacture of polysilicon for<br />

PV solar energy installations at<br />

Pietermaritzburg. The project is at the conceptual stage.<br />

UMKHANYAKUDE<br />

Industrial park focus: to be<br />

decided.<br />

The Isimangaliso Wetland Park extends<br />

220km along the northern reaches<br />

of the province, to the border with<br />

Mozambique, and offers unrivalled<br />

birding, game viewing, deep-sea fishing,<br />

turtle tours, kayaking and whale-watching. It is a World Heritage Site<br />

and, together with the Hluhluwe-uMfolozi Game Reserve, forms the core of<br />

the tourism and conservation offering in the province. With agriculture the<br />

other dominant economic activity in the area, any new investment would<br />

have to be ecologically sensitive.<br />

Possible investments: ethanol manufacturing plant near Jozini<br />

on the Makhatini Flats using sugar cane as a feed stock; an entertainment<br />

complex at Hlungweni Peninsula within the Tembe Tribal<br />

Authority, 30km north of Sodwana Bay.<br />

The Alfred Duma Local Municipality<br />

offers investors industrial space at<br />

good rates.<br />

UMZINYATHI<br />

Industrial Park focus: to be<br />

decided.<br />

The area hosts one of the most important<br />

historical sites from the colonial<br />

era, Isandlwana. The N3 highway,<br />

a vital corridor of trade and traffic between<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> and Gauteng,<br />

runs through the district and would<br />

support logistics operations. The<br />

chief town is Dundee which was founded because of the presence of<br />

coal. The Majuba TVET College has a campus in the town.<br />

Possible investment: the cultivation and processing of soya beans. South<br />

Africa has a high demand for oilseed cake but the country is a net importer<br />

of soybean products. This project is in the concept phase but initial thinking<br />

is to have facilities in two districts in the north of the province.<br />

UTHUKELA<br />

Industrial park focus: electronics.<br />

Larger towns include Estcourt,<br />

Colenso and Ladysmith.<br />

Predominantly rural, the district<br />

encompasses two of the greatest<br />

natural assets in the province<br />

in the Thukela River and a part<br />

of the Drakensberg mountain<br />

range, which attracts hundreds of<br />

thousands of visitors. Sumitomo<br />

Rubber Industries and Defy are<br />

manufacturing companies with a<br />

presence in the Alfred Duma Local<br />

Municipality, which also hosts<br />

TVET college facilities.<br />

Possible investment: the Alfred<br />

Duma Local Municipality offers<br />

industrial stands to new investors<br />

at good rates; the development<br />

of a cableway system in the<br />

Drakensberg (near Bergville) with<br />

entertainment and accommodation<br />

facilities.<br />

ZULULAND<br />

Industrial park focus: agriprocessing.<br />

Zululand is a popular destination for<br />

cultural experiences and the area is<br />

rich in Zulu history and Anglo-Boer<br />

War history. Vryheid and Ulundi are<br />

the main towns. Much of the area<br />

falls under traditional authorities<br />

and it is predominately rural.<br />

Possible investment: Agriprocessing<br />

and tourism are the<br />

main sectors that are most suitable<br />

for investment. Development of<br />

a heritage site at Nongoma to<br />

serve as a catalyst for other sites to<br />

offer traditional Zulu experience,<br />

encompassing arts and crafts, agriprocessing,<br />

traditional medicines<br />

and cosmetics and leveraging<br />

the profusion of aloe plants in the<br />

district.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

32


FOCUS<br />

Global leader<br />

Our strategy is to deliver sustainable value by providing<br />

high-quality packaging and paper solutions.<br />

Mondi is a global leader in packaging and paper, employing<br />

around 26 000 people in over 30 countries. We<br />

are fully integrated across the packaging and paper<br />

value-chain – from managing forests and producing<br />

pulp, paper and plastic films, to developing and manufacturing<br />

effective industrial and consumer packaging solutions.<br />

Sustainability is embedded in everything we do, with clearly<br />

defined commitments across 10 action areas.<br />

We delight our customers with our innovative and sustainable<br />

packaging and paper solutions.<br />

Our major operations are in central Europe, Russia, North America<br />

and South Africa. In 2017, Mondi had revenues of €7.1-billion and a<br />

return on capital employed of <strong>19</strong>.7%.<br />

Mondi has a dual listed company structure, with a primary listing<br />

on the JSE Limited for Mondi Limited and a premium listing<br />

on the London Stock Exchange for Mondi plc. We are a FTSE 100<br />

constituent and have been<br />

included in the FTSE4Good<br />

Index Series since 2008 and<br />

the JSE's Socially Responsible<br />

Investment (SRI) Index since<br />

2007.<br />

Mondi South Africa<br />

Our South African business sustainably<br />

manages plantation<br />

forests and manufactures and<br />

sells pulp, virgin containerboard<br />

and uncoated fine paper. We<br />

have around 1 500 employees<br />

working in our forestry operations<br />

and two mills.<br />

33 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


FOCUS<br />

Mondi South Africa<br />

Strategic advantages.<br />

Our focus is on leveraging our strong domestic<br />

market position and the global<br />

competitiveness of our Richards Bay mill.<br />

With a history spanning over 50 years,<br />

we understand the value of being efficient, costcompetitive<br />

and customer-focused.<br />

Our passion for performance will always be central<br />

to the way we run our business and is demonstrated<br />

through a continuous focus on quality, productivity<br />

and efficiency. The fundamental principle behind<br />

operational excellence at Mondi is the desire to do<br />

more with less.<br />

We invest in and manage our business to ensure<br />

that our manufacturing operations maintain<br />

producing unbleached kraftliner in addition to<br />

white-top kraftliner at our Richards Bay mill has<br />

been welcomed by our customers. Our Baywhite,<br />

Baycel and Baykraft products are certified for food<br />

packaging (ISEGA) and we have adopted Good<br />

Manufacturing Practice (externally certified).<br />

We manage about 251 000 hectares of certified<br />

plantation forests in South Africa in a way<br />

that secures their long-term biological integrity,<br />

social value and productivity. Credible third-party<br />

certification of our forests is an important part of<br />

our management approach. It assures compliance<br />

with globally recognised standards for sustainable<br />

forest management.<br />

New woodyard at Richards Bay mill.<br />

their cost advantages and are well-positioned for<br />

growth opportunities<br />

The new woodyard at our Richards Bay mill is contributing<br />

to improved efficiencies in wood handling processes<br />

in our forests and providing higher-quality fibre.<br />

The investment to expand our product range by<br />

Mondi Rotatrim.<br />

Growing responsibly and inspiring our people<br />

for long-term success<br />

We believe that being part of the solution to<br />

global challenges will secure the long-term success<br />

of our business and the wellbeing of our<br />

communities and other stakeholders.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

34


FOCUS<br />

Responsible forest management involves increasing long-term productivity<br />

and preserving eco-system values in rural landscapes and<br />

protecting high conservation value areas such as wetlands.<br />

We focus on maintaining an effective network of high conservation<br />

value areas and valuable habitats, and on imitating natural<br />

dynamics for key types of ecosystems where possible.<br />

We promote a landscape approach to freshwater stewardship.<br />

The focus of the long-standing WWF-Mondi Water Stewardship<br />

Programme (previously the WWF-Mondi Wetlands Programme) has<br />

grown from managing and rehabilitating wetlands with different<br />

groups of land-users (including Mondi) to catalysing water stewardship<br />

at the landscape scale, including ensuring collaboration<br />

and action by different land-users in the uMngeni and Mvoti River<br />

catchments, both of which are strategically important water-supply<br />

areas for KZN’s economic hubs.<br />

In 2014, following many years of collaboration, Mondi Group and<br />

WWF launched a global partnership to promote responsible forestry<br />

and a sustainable pulp and packaging sector. In 2017, this global<br />

partnership was extended for another three years.<br />

Mondi Zimele<br />

Our local enterprise initiative, Mondi Zimele, has an excellent track<br />

record of creating sustainable businesses and jobs. In addition, it<br />

helps to maintain a steady supply of high-quality fibre from a network<br />

of small forest enterprises, and this has continued to make a positive<br />

impact on the lives of people in our rural communities.<br />

Mondi Zimele assists small business, Amahlathi Ethu.<br />

Community investment<br />

Communities living near<br />

our mills and on our forestry<br />

land benefit from our<br />

extensive community engagement<br />

and investment<br />

programme. Health and<br />

education are key priorities<br />

for us.<br />

A leading initiative is<br />

the Mkondo Development<br />

Project, a pioneering publicprivate<br />

partnership focused<br />

on improving the living<br />

conditions of people living<br />

in households in isolated villages<br />

on our forestry land,<br />

and to find sustainable solutions<br />

to alleviate poverty<br />

and offering security of tenure.<br />

The pilot Jabulani Agrivillage<br />

has been completed<br />

and eight other agri-villages<br />

are in progress.<br />

A new exciting development<br />

in <strong>2018</strong> has been<br />

working with the Ligbron<br />

e-Learning System at rural<br />

schools, bringing innovative<br />

learning techniques<br />

and access to quality maths<br />

and science tuition to students<br />

to provide a good<br />

foundation on which to<br />

build their careers and the<br />

economy.<br />

Seven mobile clinics received<br />

82 230 visits by forestry<br />

contractors and local<br />

communities in 2017. Our<br />

wider community investments<br />

continue to assist and<br />

empower schools, university<br />

students, youth, forest smallholders<br />

and entrepreneurs,<br />

as well as provide healthcare<br />

and support.<br />

35 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


PROFILE<br />

Msunduzi Municipality:<br />

City of Pietermaritzburg<br />

Strategic location is driving economic growth.<br />

Vision<br />

A safe, vibrant city in which to live, work, play, and<br />

do business.<br />

Mission<br />

To ensure that the municipality functions effectively<br />

and in a sustainable manner in order to deliver<br />

service excellence to the community.<br />

The Msunduzi Municipality is the second<br />

largest in <strong>KwaZulu</strong>-<strong>Natal</strong> and is proudly the<br />

capital of the province, incorporating the<br />

picturesque city of Pietermaritzburg. The<br />

confirmation of capital status has entrenched the<br />

city’s role and position as the administrative and political<br />

hub of <strong>KwaZulu</strong>-<strong>Natal</strong>. Msunduzi is also moving<br />

in the direction of achieving metropolitan status.<br />

Key Development Projects at Msunduzi<br />

Municipality<br />

Manaye Hall Precinct<br />

This investment development seeks to enhance<br />

and empower the economy and entrepreneurs<br />

within the Imbali area and surrounds, and will<br />

further provide a link with the existing value chain<br />

in the area.<br />

The city is strategically located along the all-important<br />

Durban-Gauteng movement corridor, recognised in<br />

the National Development Plan for South Africa as<br />

Strategic Intervention Plan 2, commonly referred to<br />

as SIP2.<br />

Industrial development vision<br />

Msunduzi aims to see its industrial sector grow so that<br />

it remains the engine that powers the local economy,<br />

and that it does so with particular regard to providing<br />

dignified and safe work for its residents. Another goal<br />

is that the industrial and business sector stakeholders<br />

partner with the municipality in striving for a carbon<br />

neutral industrial future, which takes into account the<br />

critical need to prevent further climate change, and<br />

to ensure that there is protection of the environment<br />

comprising the people, the flora and the fauna that<br />

make up local ecosystems. This will ensure a truly<br />

sustainable future.<br />

Msunduzi Integrated Public Transport Network<br />

The overall goal of this initiative is to improve the<br />

quality of life for Msunduzi’s residents through<br />

the provision of an integrated public transport<br />

network that is rapid, safe and secure, convenient,<br />

clean, affordable, disability friendly and socially<br />

equitable. The dominant public transport<br />

corridor, starting in Edendale in the south-west,<br />

is routed through the CBD and across the N3<br />

freeway to Northdale, a distance of over 17km.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

36


PROFILE<br />

Neighbourhood Development and Partnership<br />

Grant<br />

The NDPG is driven by the notion that public<br />

investment and funding can be used creatively<br />

to attract private and community investment<br />

to unlock the social and economic potential<br />

within the targeted neglected townships and<br />

neighbourhoods. National Treasury has made<br />

successive allocations for this programme of<br />

R40-million (2017/<strong>2018</strong>) and R42.36-million<br />

(<strong>2018</strong>/20<strong>19</strong>).<br />

Liberty Midlands Mall Phase 3<br />

The Liberty Midlands Mall is a regional shopping<br />

centre, and given its position on the N3 national highway,<br />

the centre captures the wider regional market<br />

(Pietermaritzburg and surrounding area along the<br />

N3 corridor).<br />

Other projects which fall under the NDPG:<br />

• civic building<br />

• informal trading stalls; piazza<br />

• Mt Partridge<br />

• Thwala Road public realm<br />

• Promenade 1<br />

• Promenade 2<br />

Youth Enterprise Park<br />

This project, located in Pietermaritzburg city centre,<br />

is to assist with improving the regularisation of<br />

informal trade and to provide a more sophisticated<br />

space for businesses in this sector so that traders<br />

can move up from street trading.<br />

CONTACT INFO<br />

Key personnel<br />

Mayor: Councillor Themba Njilo<br />

Municipal Manager: Mr Sizwe Hadebe<br />

General Manager Sustainable<br />

Development and City Entities [Acting]:<br />

Mr Radha Gounden<br />

Senior Manager[Acting]:<br />

Ms Nombuso Hlophe<br />

Contact office: <strong>Business</strong> Retention and<br />

Expansion: Ms Mandisa Msimang<br />

Telephone: 033 392 3757/2493<br />

Email: mandisa.msimang@msunduzi.gov.za<br />

Website: www.msunduzi.gov.za<br />

37 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


PROFILE<br />

Award-winning<br />

terminal<br />

Richards Bay Coal Terminal wins Bulk Logistics Port/Terminal of the Year.<br />

Richards Bay Coal Terminal (RBCT) is a worldclass<br />

coal export terminal situated in the<br />

Port of Richards Bay. The terminal was<br />

opened in <strong>19</strong>76 with an original capacity<br />

of 12-million tons per annum (mt/a).<br />

The terminal provides South Africa’s Coal<br />

Exporting Parties (CEPs) with a world-class logistics<br />

service that facilitates the export of coal.<br />

Asia 81.6%<br />

Europe 10.1%<br />

Africa 7.8%<br />

South America 0.5%<br />

EXPORT DESTINATION PER CONTINENT<br />

RBCT is positioned at one of the world’s deepsea<br />

ports and handles large ships and large volumes of<br />

coal. The 276-hectare site currently boasts a quay that<br />

is 2.2km long with six berths and four ship loaders,<br />

with a stockyard capacity of 8.2-million tons.<br />

RBCT shares a strong cooperative relationship<br />

with South Africa’s national utility, Transnet, which<br />

provides the railway services linking the coal mines<br />

to the port, and the shipping coordination of more<br />

than 900 ships per annum.<br />

All RBCT’s operations and administrative functions<br />

are conducted in Richards Bay.<br />

Safety achievements<br />

On 23 December 2017, RBCT achieved a significant<br />

milestone in safety performance when two-million<br />

LTI-free man-hours were recorded. We are exceptionally<br />

proud of this significant safety achievement and<br />

attribute it to our continued pursuit of the goal of a<br />

safe workplace. This milestone was achieved at a time<br />

when RBCT commissioned two shiploaders, a massive<br />

machine project. Achieving this milestone is testament<br />

to a proactive safety culture that prevails in our<br />

work environment. This achievement is a combination<br />

of our collaborative safety efforts; it specifically points<br />

to the genuine care the employees and contractors<br />

have for each other.<br />

We have made impressive gains with the implementation<br />

of the leading indicators, such as the<br />

COBRA (Behaviour Based Safety) process, near missreporting,<br />

hazard identification, risk assessments<br />

and an overall interaction amongst the workforce<br />

on safety issues.<br />

As testament to our ongoing safety awareness,<br />

RBCT also won the 2017 <strong>Business</strong> Excellence Safety<br />

Award for the second year in a row. This award reaffirms<br />

RBCT’s diligence in upholding safety standards.<br />

Production records achieved<br />

The tonnage received in 2017 increased from 72.58Mt<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

38


PROFILE<br />

in 2016 to 75.60Mt (4% higher). The<br />

2017 tonnage is the highest tonnage<br />

delivered by Transnet Freight Rail<br />

(TFR) within a calendar year. The Train<br />

Turnaround Time (TTT) was four hours<br />

three minutes in 2017 against the RBCT<br />

internal target of three hours 54 minutes.<br />

TTT is a value-chain contracted<br />

duration for offloading and handing<br />

back of trains to TFR. The value chain<br />

TTT is reflected in the signed Service<br />

Level Agreement between RBCT and<br />

TFR and the target is an average of four<br />

hours 18 minutes.<br />

The figure for trains that were<br />

tipped and bypassed directly to the<br />

vessels was <strong>19</strong>% in 2017 compared to<br />

17% in 2016. We continue to be aligned<br />

with our business partner, TFR, to ensure<br />

the supply chain performs well<br />

and contributes to increasing volumes.<br />

Achievements<br />

In 2017 RBCT was nominated by<br />

Transnet National Ports Authority<br />

(TNPA), our strategic business partner,<br />

as the Bulk Logistics Port/Terminal of<br />

the Year and it is with great excitement<br />

that RBCT was declared the winner of<br />

this prestigious Award (Global Ports<br />

Forum International Award). Locally,<br />

RBCT was nominated for six Zululand<br />

Chamber of Commerce and Industry<br />

awards. RBCT won five awards and<br />

was a runner-up in the sixth category.<br />

The significance of these awards is<br />

that they were awarded in areas that<br />

matter the most to RBCT, people,<br />

safety, environment and logistics.<br />

Community development<br />

Our slogan, “Coal to the world, growth<br />

to the nation” depicts our sustainable<br />

commitment to community development<br />

over the years. Our aim is to participate<br />

in programmes that benefit<br />

the wider community and sustainable<br />

From left: Mr Jabu Mdaki, General Manager Operations, Mr Preston<br />

Khomo, Port Manager and Mr Alan Waller, CEO.<br />

projects that can build a better South Africa. In 2017 we recognised<br />

the need to focus on early childhood development, education and<br />

environment. Due to the water shortages we faced, we regarded<br />

this as an integral component in building a better future and life<br />

for all.<br />

In 2017, a total of R3.2-million was invested in Community Social<br />

Investment (CSI) projects.<br />

RBCT Executive Team<br />

CONTACT INFO<br />

Physical address: Richards Bay Coal Terminal (Pty) Ltd,<br />

South Dunes, Richards Bay Harbour<br />

Postal address: PO Box 56, Richards Bay 3900<br />

Tel: +27 35 904 4911<br />

Website: www.rbct.co.za<br />

39 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


ADVERTORIAL<br />

ADVERTORIAL<br />

Nedbank’s new brand promise focuses on client<br />

engagement Nedbank’s that new will brand create a promise better understanding<br />

across focuses clients’ on personal client engagement and business banking thatneeds<br />

will create a better understanding<br />

Siphamandla Ndhlovu, Provincial General Manager in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong>, Kevin explains de Beer, how Nedbank Nedbank Provincial works General with communities Manager in the to deliver<br />

banking Free State solutions. and Northern Cape, explains how Nedbank<br />

works with communities to deliver banking solutions.<br />

Our expertise will help clients navigate<br />

challenges and meet their goals<br />

Nedbank continues to build on its clientcentred<br />

strategy aimed at delivering<br />

distinctive experiences and channels<br />

of choice for businesses and clients in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>. This has seen the bank<br />

simplify and enhance its product offering<br />

in line with its value-banking philosophy<br />

based on simplicity, transparency and<br />

affordability. Innovation and technological<br />

advancements, as well as training and<br />

development of staff, have been key pillars<br />

in achieving the bank’s objectives.<br />

Since 2012 Nedbank has launched several first-tomarket<br />

innovations, such as the award-winning<br />

Nedbank App Suite, the home loans online<br />

digital channel and Market Edge, as well as New<br />

Image outlets concept in communities locally and<br />

nationally. “Working with communities is entrenched<br />

in our values through community development, skills<br />

development, education and job creation, as well as<br />

environmental conservation. These play a vital role in<br />

building a sustainable economy and vibrant society.<br />

We believe our fast-growing presence in communities<br />

goes a long way towards enabling greater financial<br />

inclusion while contributing towards economic<br />

growth,” concludes Ndhlovu.<br />

Nedbank also leverages its strong market positioning<br />

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them to bank their employees through its employee<br />

banking offering. This forms part of Nedbank’s<br />

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This is a unique service for clients, with financial<br />

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solution, enabling clients to transact, borrow, save<br />

and take out cover.<br />

To encourage the youth to save and build their<br />

financial fitness from an early age the Nedbank 4me<br />

offering enables the youth to transact and save with<br />

the benefit of earning preferential interest. Nedbank<br />

4me comprises a full transactional banking account<br />

with no monthly fees, free initial transactions and<br />

thereafter reduced pay-as-you-use pricing, free<br />

eNotes and self-service banking.<br />

This wide range of offerings from Nedbank makes<br />

banking more accessible to all.<br />

Nedbank has also invested in innovative alternative<br />

distribution outlets through its strategic partnership<br />

with Boxer stores. These partnerships, which span<br />

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financial services every day of the week, even Sundays<br />

and public holidays.<br />

Should you be interested in learning more about how<br />

Nedbank can assist you grow your wealth and see money<br />

differently, for more information call Siphamandla<br />

Ndhlovu on +27 83 637 8552 or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

ADVERTORIAL<br />

Making Nedbank’s it easier new to brand do business promise with Nedbank<br />

<strong>Business</strong> focuses Banking on client engagement that<br />

Siphamandla Ndhlovu, <strong>KwaZulu</strong>-<strong>Natal</strong> Provincial <strong>Business</strong> Banking<br />

will create a better understanding<br />

Manager, explains how Nedbank can help business owners see money<br />

differently. Kevin de Beer, Nedbank Provincial General Manager in the<br />

Free State and Northern Cape, explains how Nedbank<br />

works with communities to deliver banking helps solutions. with continuity in case there is a change of<br />

relationship from a <strong>Business</strong> Manager point of view.<br />

Our approach is to understand the client’s business<br />

holistically and from that understanding, design tailormade<br />

banking solutions to suit the business needs<br />

of the client. Our “Wholeview Banking” approach<br />

enables us to understand the client’s cash receipts and<br />

payment cycle, their global trade transactions, foreign<br />

exchange hedging transactions and transactional<br />

banking needs which include cash handling. From this<br />

information, we are able to provide banking, payment<br />

and funding solutions that meet the client’s needs. We<br />

are therefore seen as a trusted partner by the business<br />

we serve as our banking solutions match the client’s<br />

needs and means.<br />

“At Nedbank <strong>Business</strong> Banking we<br />

believe that you need a financial<br />

partner who not only understands your<br />

circumstances and aspirations, but also<br />

provides you with relevant solutions<br />

and a banking experience that is hasslefree.<br />

This allows you to concentrate on<br />

what’s most important to you – running<br />

your business,” says Ndhlovu.<br />

At the core of our <strong>Business</strong> Banking offering in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is a relationship-based model. We<br />

believe in building a relationship with our client<br />

which helps elevate trust which becomes the solid<br />

foundation on which our banking decisions are made.<br />

A <strong>Business</strong> Manager is the key entry point into the<br />

bank. The <strong>Business</strong> Manager is supported by a Client<br />

Service team who ensure delivery of the facilities<br />

the client is afforded. The Client Service team also<br />

becomes a repository of client information where<br />

the client history and track record are held. This<br />

Our banking offering covers a broad range of financial<br />

and advisory services to small and medium businesses<br />

in all sectors of the economy including Agriculture.<br />

We pride ourselves in our ability to make quick credit<br />

decisions as our Credit teams are located in the<br />

markets that we serve as opposed to being at a central<br />

location that is removed from the local market.<br />

Furthermore, based on the relationship foundation<br />

and our understanding of the client’s needs, we are<br />

able to extend our offering to the business owner<br />

in their personal capacity, their family and staff. In<br />

doing this, we answer Nedbank’s call to use our<br />

financial expertise to do good for individuals, families,<br />

businesses and communities within which we operate.<br />

Should you be interested in taking your business to its<br />

next level and improving staff engagement, and for more<br />

information about Nedbank’s specialised service offering<br />

please call Siphamandla Ndhlovu on +27 83 637 8552<br />

or visit www.nedbank.co.za.


ADVERTORIAL<br />

ADVERTORIAL<br />

Nedbank’s new brand promise<br />

focuses Expertise in on small client business engagement aimed at that stimulating<br />

will growth create a better understanding<br />

Kevin de Beer, Nedbank Provincial General Manager in the<br />

Nedbank’s Melanie Reddy, Provincial Retail Relationship Banking Manager,<br />

Free<br />

explains<br />

State<br />

how<br />

and<br />

Nedbank<br />

Northern<br />

is committed<br />

Cape, explains<br />

to partnering<br />

how Nedbank<br />

with small businesses<br />

works for growth. with communities to deliver banking solutions.<br />

For example, the Small <strong>Business</strong> Friday initiative, in<br />

association with the National Small <strong>Business</strong> Chamber,<br />

seeks to encourage everyone in South Africa to rally<br />

behind and support small businesses. The initiative<br />

calls on everyone to make a conscious decision to<br />

vote for small businesses through their hearts, feet<br />

and wallets; not only on Small <strong>Business</strong> Friday which is<br />

one particular Friday in a year, but every day.<br />

“Small businesses are the mainstay of the<br />

economy. Nedbank has, over the years,<br />

instituted various interventions aimed at<br />

giving support to the small-business sector.<br />

Over and above our small-business services<br />

solutions, we provide small-business<br />

owners with support that goes beyond<br />

banking, freeing up their time to truly focus<br />

on running their businesses,” says Reddy.<br />

Nedbank has built a solid reputation as a bank for<br />

small businesses through initiatives such as Small<br />

<strong>Business</strong> Friday, free small-business seminars and<br />

the SimplyBiz.co.za platform – all geared to support<br />

the small- and medium-sized enterprises sector.<br />

Our offering expands to the Professional Banking<br />

segment of the market. In Professional Banking we<br />

realise that time is of the essence in your professions<br />

and hence we offer you a dedicated banker with a<br />

strong support team to take care of the needs of you,<br />

your business and your household.<br />

SimplyBiz.co.za is a free-to-join value networking<br />

portal designed especially for small businesses. The<br />

online portal helps small businesses improve their<br />

business administration skills, keep up with the latest<br />

trends, network with other small businesses and<br />

share ideas.<br />

Should you wish to tap into our small business expertise<br />

to help your business goals, why not get in touch with<br />

Nedbank’s Small <strong>Business</strong> Services. Call Melanie Reddy<br />

on +27 31 364 2045 or send an email to<br />

Melanier@nedbank.co.za.


ADVERTORIAL<br />

ADVERTORIAL<br />

Nedbank’s new brand promise<br />

Making focuses banking on client accessible engagement to all that<br />

will create a better understanding<br />

At Nedbank we believe in delivering a choice of distinctive clientcentred<br />

Kevin de banking Beer, Nedbank experiences Provincial that create General deep, enduring Manager relationships<br />

in the<br />

with Free our State clients, and Northern says Sean John, Cape, Provincial explains Sales how Nedbank Manager, <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> works Branch with communities Networks. to deliver banking solutions.<br />

Our distribution presence in KZN sees us with 85<br />

traditional branches, 32 kiosks in Boxer stores and 33<br />

New Image branches. Nedbank has embarked on a<br />

distribution strategy to convert all our branches to<br />

New Image outlets. We have also increased our ATM<br />

distribution to 630 and Intelligent Depositors to 90 in<br />

the province for your convenience.<br />

To make banking convenient we have eight Sundaytrading<br />

branches in key centres in the province.<br />

Nedbank’s client-centred approach has seen the bank<br />

intensify its efforts in delivering a distinctive client<br />

experience through innovation.<br />

Our clients are engaged by skilled, enabled<br />

and productive staff who, through<br />

meaningful conversations, ensure we<br />

deliver to our clients’ needs and aspirations.<br />

As a bank for all, Nedbank realises that, if<br />

it wants to make banking more accessible<br />

to all in South Africa, it has to start working<br />

with the communities in which it operates.<br />

“Since 2012 Nedbank has launched several firstto-market<br />

innovations, such as the award-winning<br />

Nedbank App Suite, the home loans online digital<br />

channel and Market Edge, as well as New Image<br />

branch outlets,” adds John.<br />

For more information on our offerings please contact<br />

Sean John at SeanJ@nedbank.co.za,<br />

+27 31 364 <strong>19</strong>33.<br />

As such the bank’s strong relations with government,<br />

organised business and communities remain a key focus<br />

in growing its client base.<br />

Our presence in the KZN community goes a long way in<br />

allowing for greater financial inclusion while contributing<br />

to social upliftment and economic development.<br />

Nedbank Ltd Reg No <strong>19</strong>51/000009/06. Authorised financial<br />

services and registered credit provider (NCRCP16).


KEY SECTORS<br />

Overviews of the main economic<br />

sectors of <strong>KwaZulu</strong>-<strong>Natal</strong><br />

Agriculture 46<br />

Sugar 47<br />

Foresty and paper 50<br />

Mining 54<br />

Oil and gas 55<br />

Manufacturing 60<br />

Automotive 64<br />

Energy 70<br />

Water 71<br />

Tourism 72<br />

Education and training 76<br />

Banking and financial services 78<br />

Development finance and<br />

SMME support 80


OVERVIEW<br />

Agriculture<br />

A new cold-storage facility at Dube TradePort is good<br />

news for farmers.<br />

SECTOR INSIGHTS<br />

• Operation Vula will make<br />

co-operatives stronger.<br />

The Premier of <strong>KwaZulu</strong>-<strong>Natal</strong>, Willies Mchunu, has committed<br />

his government to Operation Vula which aims to<br />

create economic opportunities for social enterprises and<br />

co-operatives, led by African people. They are to benefit<br />

from state-led infrastructure programmes, as well as from the buying<br />

power of the state through the supply chain.<br />

Another initiative to support small-scale farmers resulted in the<br />

Masisizane Fund investing more than R100-million in the Harry Gwala<br />

and Alfred Nzo districts. Consulting company Agriculture House will<br />

assess the effectiveness of the programme.<br />

Despite a long drought which recently ended, the province's<br />

agricultural sector is very strong, taking advantage as it does of the<br />

province's fertile and varied soils. Eighteen percent of <strong>KwaZulu</strong>-<strong>Natal</strong>’s<br />

6.5-million hectares of agricultural land is arable and the balance is<br />

suitable for the rearing of livestock.<br />

Vegetables grow well in most areas, and some maize is grown in<br />

the north-west. Nuts such as pecan and macadamia thrive. The province’s<br />

forests occur mostly in the southern and northern edges of the<br />

province. The sugar sector is dealt with separately in this publication.<br />

The opening of a R99-million cold-storage facility at the Dube<br />

TradePort in 2017 gives farmers and exporters additional flexibility,<br />

ONLINE RESOURCES<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Agricultural Union: www.kwanalu.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Agricultureand Rural<br />

Development: www.kzndard.gov.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

allowing them to store chilled and<br />

frozen perishable goods.<br />

TWK is a R6-billion operation that<br />

originated in forestry (as Transvaal<br />

Wattlegrowers Co-operative) but<br />

which is now a diverse agricultural<br />

company with seven operating divisions.<br />

The coastal areas lend themselves<br />

to sugar production and fruit growing,<br />

with subtropical fruits doing particularly<br />

well in the north. <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> produces 7% of South Africa’s<br />

citrus fruit. The Coastal Farmers Cooperative<br />

represents 1 400 farmers.<br />

Beef originates mainly in the<br />

Highveld and Midlands areas, with<br />

dairy production being undertaken in<br />

the Midlands and south. The province<br />

produces 18% of South Africa’s milk.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s subsistence farmers<br />

hold 1.5-million cattle, which represents<br />

55% of the provincial beef herd, and<br />

their goat herds account for 74% of the<br />

province’s stock. The Midlands is also<br />

home to some of the country’s finest<br />

racehorse stud farms. The area around<br />

Camperdown is one of the country’s<br />

most important areas for pig farming.<br />

Enterprise iLembe, the development<br />

arm of the iLembe District<br />

Municipality, is looking for investors<br />

to further develop an agri-processing<br />

hub near the King Shaka International<br />

Airport and Dube TradePort.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

46


Sugar<br />

Sugar production is on a downward trend.<br />

OVERVIEW<br />

Most of South Africa's 14 sugar mills are in <strong>KwaZulu</strong>-<strong>Natal</strong>, as<br />

are the headquarters of the biggest companies.<br />

Overall production volumes have been down in recent<br />

years because of the severe drought. Total saleable sugar in<br />

the South African market (for domestic use and export) was over twomillion<br />

tons in the 2013/14 and 2014/15 seasons. The figure for 2016/17<br />

was 1.6-million tons. A proposed national sugar tax is being opposed<br />

by industry representatives.<br />

About 40% of local production is exported. The South African Cane<br />

Growers' Association represents about 24 000 growers who produce<br />

about 20-million tons of cane.<br />

Neither of the Big Two companies relies exclusively on South African<br />

sugar earnings: Tongaat Hulett has a big property portfolio and Illovo<br />

draws most of its profit from operations elsewhere in Africa.<br />

Illovo Sugar Limited has a presence in six African countries and<br />

is the continent's biggest sugar producer. The group's head office is<br />

in Umhlanga Rocks. In 2016 ABF, which used to be Associated British<br />

Foods, purchased Illovo.<br />

Tongaat Hulett’s headquarters are about 50km north of Umhlanga.<br />

The company's sugar divisions turned an operating profit of R1.3-billion<br />

ONLINE RESOURCES<br />

South African Cane Growers’ Association:<br />

www.sacanegrowers.co.za<br />

South African Sugar Association: www.sasa.org.za<br />

South African Sugar Technologists Association:<br />

www.sasta.co.za<br />

Sugar Milling Research Institute: www.smri.org<br />

SECTOR INSIGHT<br />

• A sugar tax has been<br />

proposed.<br />

for 2016/17, a notable improvement<br />

on the previous year. This<br />

was partly because of better import<br />

protection in the countries<br />

where Tongaat Hulett operates<br />

and because of higher export<br />

prices generated into the EU and<br />

other African countries.<br />

Tongaat Hullet Sugar has<br />

agreed to a R52-million sugar<br />

cane growing project which will<br />

see co-operatives and contract<br />

farmers plant cane on 3 000ha at<br />

Felixton, Maidstone and Darnall.<br />

Illovo and Tongaat Hulett are the<br />

major operators of sugar mills.<br />

Other millers are Gledhow, ULC,<br />

Umfolozi and Tsb (which has a<br />

further two mills in Mpumalanga).<br />

Illovo has four mills, three<br />

sugar-cane estates, four sugar<br />

factories, a refinery and three<br />

downstream operations that<br />

make products such as furfural,<br />

furfuryl alcohol, ethyl alcohol and<br />

lactulose.<br />

The four mills run by Tongaat<br />

Hulett are located on the North<br />

Coast while the central refinery<br />

is in Durban and the animal feed<br />

plant, Voermol, is near Tongaat.<br />

The Sugar Terminal at Maydon<br />

Wharf, Durban, serves 11 mills<br />

and can store more than half a<br />

million tons of sugar. It also has a<br />

molasses mixing plant.<br />

47 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


INTERVIEW<br />

Agriculture House<br />

Chief Executive Officer Sifiso Myeni explains how this<br />

agribusiness development company is giving small-scale<br />

farmers access to markets.<br />

CEO Sifiso Myeni<br />

BIOGRAPHY<br />

Sifiso is the founder and Chief<br />

Executive Officer at Agriculture<br />

House. His role is to drive<br />

strategy, investment decisions<br />

of the company, stakeholder<br />

relations and new business. He<br />

is responsible for sector intelligence,<br />

due diligence, transaction<br />

structuring and quality<br />

assurance. He has vast experience<br />

in the agricultural sector,<br />

having worked for companies<br />

such as Old Mutual Masisizane<br />

Fund, as the <strong>KwaZulu</strong>-<strong>Natal</strong><br />

Provincial Manager and as<br />

the Head of the Agribusiness<br />

Development Department.<br />

Please explain your business proposition.<br />

Agriculture House is a 100% black-owned specialist agribusiness development<br />

company established in 2007. Its core business has four divisions:<br />

• Consulting services in agribusiness value chain development. This<br />

includes but is not limited to: assessment of agricultural projects; turnaround<br />

strategies for farms and agribusinesses including asset management;<br />

due diligence; business planning and implementation; feasibility<br />

studies; sector intelligence; project implementation and monitoring;<br />

social facilitation and policy analysis and formulation.<br />

• Skills transfer and mentorship. This includes AgriSETA-accredited training<br />

offered through strategic partners.<br />

• Investments in our own farms and agri-processing factories.<br />

• Access to markets for small-scale vegetable farmers. Agriculture House<br />

currently buys fresh produce from small-scale farmers to supply to<br />

various customers. This programme was established to increase Agri-<br />

House’s fresh produce supply capacity and to provide access to market<br />

for small-scale farmers who cannot independently access formal<br />

markets. Most of the farmers are in Jozini and surrounding areas.<br />

How do you close the gap between commercial operations<br />

associated with large food value chains and small-scale farmers?<br />

Firstly, Agriculture House has identified access to market, inadequate skills<br />

and lack of production resources as major challenges facing small-scale<br />

farmers. Our contribution in resolving these challenges:<br />

• We are a market for small-scale farmers for fresh produce (vegetables)<br />

and eggs. We started in Jozini, Makhathini, eNdumo, Mhlabuyalingana<br />

and eThekwini (mainly egg farmers) and we are planning to expand to<br />

other areas in the province.<br />

• We are now exploring ways of improving the quality of fresh produce<br />

from these farmers. We have to put a production schedule in place<br />

for all farmers under our scheme, we have to train them, and we also<br />

have to provide production inputs. The Department of Agriculture<br />

and Rural Development is very supportive.<br />

How do you measure success?<br />

Our success is measured in three ways. Firstly, we have to be a profitable<br />

and sustainable business. Secondly, our customers must be<br />

satisfied with our products and services. Finally, when the farmers we<br />

seek to empower are running profitable small-scale farms.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

48


Helping agribusinesses grow<br />

Providing advice and services.<br />

FOCUS<br />

As it enters its second decade, Agriculture House is expanding<br />

its footprint to help small-scale farmers get their products to<br />

market, invest in its own farms and agri-processing plants,<br />

offer training through partnerships and widen the scope of<br />

its consulting services.<br />

Our Vision<br />

To be a trusted centre for knowledge in agribusiness value chain<br />

development.<br />

Our Mission<br />

Provide reliable, practical solutions and quality products to meet the<br />

needs of our customers.<br />

Farms<br />

Essiena Farm in Stanger has been converted from sugarcane to a fully<br />

irrigated vegetable farm where spinach, tomatoes, cabbage, green,<br />

red and yellow peppers are grown and packaged. A total of 43 job<br />

opportunities have been created.<br />

Agriculture House is leasing the 10-hectare Baconsfield Farm in<br />

Harding. We are growing cabbages under full irrigation and supplying<br />

chain stores and markets agents such as DELTA, Wenpro and Port <strong>Natal</strong>,<br />

and private customers such as Scottys and KZN Hospitals through PCK.<br />

The aim is to run a profitable vegetable enterprise while creating decent<br />

employment for the local communities.<br />

CONTACT DETAILS<br />

Suite A, 9 Brendon Lane, Westville, 3629, <strong>KwaZulu</strong>-<strong>Natal</strong><br />

Tel: +27 31 825 4894 | CEO: +27 31 266 0063<br />

Email: info@agrihouse.co.za<br />

Website: www.agrihouse.co.za<br />

Technical team<br />

The technical team consist of 10 agricultural<br />

specialists in various fields of<br />

specialisation such as fresh produce,<br />

grain handling and trading, poultry,<br />

and the red meat value chains. Our<br />

expertise also extends through<br />

working with a network of strategic<br />

partners and associates. Individual<br />

team members have over 20 years<br />

of practical work experience in the<br />

agricultural industry. The team is<br />

led by the CEO and founder, Sifiso<br />

Myeni, who has extensive experience<br />

in many aspects of the sector.<br />

Other key members are Senior<br />

Investment and Risk Officer, Rhonnie<br />

Manana and Sandile Myeni who is<br />

the Manager in charge for getting<br />

fresh produce to various markets.<br />

Major clients<br />

Agriculture House has the following<br />

clients. In fresh produce supply:<br />

Durban International Convention<br />

Centre (ICC): Bargain Group (11<br />

supermarkets): Pick n Pay: Boxer<br />

Stores. In consulting services: Old<br />

Mutual Masisizane Fund: eThekwini<br />

Municipality: Enterprise iLembe<br />

Economic Development<br />

Agency: Sheepcor SA (subsidiary of<br />

Nehawu Investment Holdings).<br />

49<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Forestry and paper<br />

South African companies have a global presence.<br />

The forestry and paper sector is one of the most important<br />

within the <strong>KwaZulu</strong>-<strong>Natal</strong> economy and the province is a<br />

national leader. The forest-product export sector in South<br />

Africa is made up of paper (45.2%), solid wood (23.3%) and<br />

pulp (28.9%).<br />

The <strong>KwaZulu</strong>-<strong>Natal</strong> Provincial Government's strategy of creating<br />

Industrial Economic Hubs (IEHs) includes the development and expansion<br />

of wood processing in the Harry Gwala District Municipality. This<br />

is in the wooded south-western part of the province and includes the<br />

towns of Kokstad, Harding, Ixopo and Underberg.<br />

The province’s two biggest companies in the sector, Sappi and<br />

Mondi, are both diversified global companies. Mondi is an integrated<br />

packaging and paper value company with more than 100 operations<br />

in more than 30 countries.<br />

Recent upgrades to Mondi’s woodyard at Richards Bay (shown<br />

above) have made a big impact on efficiencies. The addition of an<br />

unbleached kraftliner product has expanded the company’s range.<br />

Sappi makes paper at two mills in South Africa: the mill at Tugela<br />

makes 185 000 tons of speciality paper per annum. A big focus for the<br />

company is dissolving wood pulp, made at one site in America and<br />

two in South Africa.<br />

Dissolving wood pulp is sold as a raw material to converters around<br />

the world who produce from it a range of products such as textiles,<br />

cellophane wrap and pharmaceuticals.<br />

The giant Sappi Saiccor mill 50km south of Durban is the world's<br />

biggest manufacturer of dissolving wood pulp. The mill's capacity is<br />

800 000 tons, which makes it the biggest of its kind in the world. Sappi<br />

SECTOR HIGHLIGHTS<br />

• Mondi manages more than<br />

250 00 hectares of plantation<br />

in South Africa.<br />

• The Sappi Saiccor mill is the<br />

world’s biggest site for the<br />

manufacture of dissolving<br />

wood pulp.<br />

is actively looking into the new fields<br />

of bio-materials and bio-energy.<br />

Nampak produces crêpe paper<br />

at Verulam and Rafalo produces tissue<br />

paper. SA Paper Mills is another<br />

paper producer.<br />

Mpact's upgrade of its Felixton<br />

mill has increased capacity and<br />

improved efficiency. The project<br />

cost R765-million and takes overall<br />

production up to 215 000 tons<br />

(from 60 000) and a lightweight<br />

containerboard option has been<br />

included in the product lines. This<br />

is in response to market demand<br />

for lighter packaging. The first<br />

phase of the upgrade began in<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

50


OVERVIEW<br />

2015 with the development of a recycled fibre (RCF) plant and<br />

improvements to the paper machine.<br />

Mpact has plastics and paper operations, with the paper section<br />

divided into three divisions: paper manufacturing, corrugated and<br />

converted paper products and recycling.<br />

The Merensky Group operates one softwood sawmill and a panelprocessing<br />

plant in Kokstad that is geared to manufacture according<br />

to customers’ needs in any sector. Export is done through the Port<br />

of Durban.<br />

NCT Forestry Co-op Limited is a key timber-marketing entity with<br />

more than 2 000 members and three wood-chipping mills. R&B<br />

Timber Group has three pole treatment plants and is headquartered<br />

in Harding. Flaxton Timbers operates out of Ixopo and <strong>Natal</strong> Forest<br />

Products is in Richmond.<br />

Timber<br />

Timber plantations are found in five parts of the province: northern<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, Midlands, southern <strong>KwaZulu</strong>-<strong>Natal</strong>, Zululand and<br />

Maputaland. Close to half-a-million hectares – 38.5% of the land in<br />

South Africa devoted to forestry – is allocated to timber plantations.<br />

Of this area, 70% is devoted to hardwoods and the balance to pine, the<br />

only softwood grown in large quantities in South Africa.<br />

The percentage of privately owned forest land is 93.4%. Merensky<br />

has plantations in the Dargle forest while Sappi and Mondi have holdings<br />

across the province, and in other parts of South Africa.<br />

Management of the 251 000 hectares of the plantation forest that<br />

Mondi has under management is done in line with sustainable forest<br />

management principles and the company is engaged in a partnership<br />

with the WWF to get different types of water users to work together in<br />

improving how water is used. Mondi has reduced its own consumption<br />

of fresh water by 12% in comparison to its use in 2015.<br />

The company’s local enterprise initiative,<br />

Mondi Zimele, promotes<br />

small forest enterprises among<br />

other programmes in support<br />

of health and education. The<br />

Mkondo Development Project is<br />

tackling poverty.<br />

Sappi is working with regional<br />

and local government in<br />

the northern Eastern Cape and<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> to plant more<br />

plantations. The company’s Clan<br />

Nursery north of Pietermaritzburg<br />

has the capacity to look after<br />

17-million cuttings.<br />

The South African forestry industry<br />

is valued at R40-billion per<br />

year. The National Department of<br />

Agriculture, Forestry and Fisheries<br />

reports that South Africa has<br />

a shortage of sawn timber and<br />

anticipates further shortages in<br />

the future.<br />

ONLINE RESOURCES<br />

Forestry South Africa: www.forestry.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Agriculture and Rural<br />

Development: www.kzndard.gov.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

Paper Manufacturers of South Africa:<br />

www.thepaperstory.co.za<br />

South African Institute of Forestry: www.saif.org.za<br />

Technical Association of the Pulp and Paper Industry of South<br />

Africa: www.tappsa.co.za<br />

51 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


FOCUS<br />

Sappi<br />

Sappi’s strategic growth from dissolving wood pulp.<br />

Innovation is a cornerstone of the strategy and 2020Vision that Sappi<br />

has implemented and as a result experienced growth over the last<br />

few years. A major contributor to this growth has been the dissolving<br />

wood pulp (DWP) product with its differentiated market offering<br />

stemming from the Southern KZN region.<br />

What is dissolving wood pulp?<br />

Dissolving wood pulp is a purified cellulose pulp suitable for subsequent<br />

chemical conversion into a range of products and can be spun into<br />

textile fibres, cast into a film or regenerated into a sponge.<br />

Dissolving wood pulp (DWP) is locally manufactured at Sappi Saiccor<br />

Mill, situated in Umkomaas. With a capacity of 800 000 tons per annum<br />

of sulphite DWP, it is the world’s single largest manufacturing<br />

site for DWP.<br />

It also has a long history in DWP production, going back more than<br />

60 years to <strong>19</strong>55. Since Sappi acquired the mill in <strong>19</strong>89, Saiccor Mill has<br />

played a key role in establishing Sappi as the global market leader in<br />

DWP. Sappi’s competitive cost position provides it with the platform to<br />

build the business further with its key strategic partners, while providing<br />

customers with unmatched quality, consistency and scale. This is<br />

achieved through sustainable manufacturing and sourcing of certified<br />

raw materials (Hardwood woodfibre Eucalyptus and Acacia) from responsibly<br />

managed plantations. A truly sustainable raw material, DWP<br />

is noted for its versatility to create personalised solutions for customers<br />

across multiple sectors.<br />

Dissolving wood pulp applications<br />

Dissolving wood pulp is used to produce an array of intermediary<br />

products which in turn are used to produce a dynamic variety of<br />

final products.<br />

Fabrics<br />

Cellulosic based fabrics are<br />

breathable and offer a soft,<br />

natural feel with high levels of<br />

moisture absorbency. This is in<br />

contrast to most synthetic fibre<br />

based fabrics derived from nonrenewable<br />

fossil fuels.<br />

VSF (rayon)<br />

By far the most prominent of the<br />

wood-based cellulosic fabrics are<br />

those produced from viscose<br />

staple fibre (VSF), also known as<br />

rayon. VSF accounts for approximately<br />

70% of global DWP production<br />

and is most commonly<br />

used in fashion, home and decorating<br />

textiles.<br />

Lyocell<br />

Another key fibre produced from<br />

Sappi’s DWP is lyocell, which represents<br />

the next generation of sustainable<br />

wood-based cellulose fibres.<br />

It is a high-strength and absorbent<br />

material used for a variety of textile<br />

and non-woven applications, either<br />

on its own or as a blend with other<br />

compatible fibres.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

52


FOCUS<br />

Food, pharmaceuticals and other applications<br />

include:<br />

Microcrystalline cellulose<br />

A useful ingredient used by the pharmaceutical<br />

industry because of its excellent binding<br />

properties, microcrystalline cellulose (MCC) can<br />

be found in many prescription and over-thecounter<br />

tablets.<br />

Ethers<br />

Ethers derived from dissolving wood pulp are<br />

used widely in the production of food, pharmaceuticals<br />

and cosmetics. They also have more<br />

heavy industry-related applications, such as drilling<br />

fluids, mining flotation aids and detergents.<br />

Commonly produced ethers include CMC, MC<br />

and HEC.<br />

Cellophane<br />

Cellophane is used the world over for packaging<br />

in the food industry. It offers excellent<br />

breathability and non-static properties and<br />

has become essential for preserving freshness<br />

as well as for its visual appeal for certain<br />

food groups. Cellophane is also used in the<br />

production of alkaline batteries and lithographic<br />

masking tape.<br />

Acetate<br />

Acetate from dissolving wood pulp is used in<br />

the manufacture of fabrics and yarns as well<br />

as in plastic applications such as spectacle<br />

frames, photographic film and clothing buttons.<br />

It is mostly used for the manufacture of<br />

cigarette filters.<br />

Through continuous investment in this region<br />

and product, Sappi is set to deliver further results<br />

and remain relevant to customers by offering<br />

value-adding products. They are ready<br />

with a truly renewable natural fibre to face the<br />

challenges of global demands and meet customer<br />

needs.<br />

53 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Mining<br />

Mineral sands are mined in the north.<br />

Most of South Africa’s export coal passes through the Richards<br />

Bay Coal Terminal. The province’s mineral sands mines are<br />

near Richards Bay with several coalfields further inland.<br />

Having opened in 2016, the KZN Sands mineral sands operation<br />

comprises a central processing complex in Empangeni and the<br />

Fairbreeze Mine. Expenditure over several years is expected to rise to<br />

R5-billion as it expands. Tronox, which is listed on the New York Stock<br />

Exchange, is the major shareholder in KZN Sands.<br />

The development of a new titanium dioxide pigment plant was<br />

announced in 2017 by Nyanza Light Metals and its technology partner,<br />

Avertana of New Zealand. The use of stockpiled waste slag (from mines<br />

in Mpumalanga) sets this R4.5-billion project apart. Other products<br />

will include gypsum, aluminium sulphate and magnesium sulphate.<br />

Construction is set to begin in <strong>2018</strong>.<br />

A new name appeared in the mining environment in 2015, but<br />

South32 is simply an offshoot of BHP Billiton, so the Hillside aluminium<br />

smelter at Richards Bay run by South Africa Aluminium is now a<br />

100% South32 asset. Most of the product (high-quality primary aluminium<br />

ingot) is exported but some liquid metal form is sent to Isizinda<br />

Aluminium which supplies Hulamin, a company that has had a rolling mill<br />

in Pietermaritzburg since <strong>19</strong>49. Hulamin is the only major aluminium rolling<br />

operator in the region and it makes rolled products and extrusions.<br />

Other processing facilities in the province include the steel plant<br />

owned by Arcelor Mittal in Newcastle and Safa Steel's metal-coating<br />

factory in Cato Manor.<br />

Tata Steel KZN's high-carbon ferrochrome plant at Richards Bay<br />

went into business rescue and then liquidation before being bought<br />

by Luxembourg-based Traxys Africa in the middle of 2016, after a<br />

court ruled in its favour. Traxys has chrome mines in Mpumalanga<br />

and Limpopo provinces. Tata Steel did not have its own mines.<br />

RBM mines the minerals sands of the northern <strong>KwaZulu</strong>-<strong>Natal</strong><br />

coast and operates out of Richards Bay. The main products of the<br />

RBM mine are zircon, rutile, titania slag, titanium dioxide feedstock<br />

and high-purity iron.<br />

SECTOR INSIGHT<br />

• The KZN Sands Fairbreeze<br />

Mine will inject billions<br />

into the local economy.<br />

Some of the coalfields of the province<br />

have been revived. Petmin's<br />

Somkhele Anthracite Mine, north<br />

of Richards Bay, has one of the<br />

biggest reserves of open-pit<br />

anthracite in South Africa, with<br />

measured and indicated reserves<br />

of more than 51-million tons across<br />

its four areas.<br />

Buffalo Coal Corporation<br />

(which used to be called Forbes<br />

Coal) has Canadian roots and<br />

has two assets near Dundee:<br />

Magdalena Colliery and Aviemore<br />

Colliery. The company has two<br />

processing plants.<br />

ONLINE RESOURCES<br />

Chamber of Mines South Africa: www.chamberofmines.org.za<br />

Council for Geoscience: www.geoscience.org.za<br />

Geological Sciences, University of KZN: www.geology.ukzn.ac.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

54


Oil and gas<br />

Richards Bay is set to host a liquid natural gas plant.<br />

OVERVIEW<br />

SECTOR INSIGHT<br />

Transnet Pipelines’ new<br />

multi-purpose pipeline is the<br />

country’s energy lifeblood.<br />

• Petroleum Agency<br />

South Africa is awarding<br />

exploration rights in the<br />

province.<br />

If a private partner can be found, a liquid natural gas (LNG) plant will<br />

soon be producing 2 000MW on a site in Richards Bay. This forms<br />

part of national government's allocation of 3 126MW to natural gas<br />

in its medium-term energy policy to 2030.<br />

The National Department of Energy (DoE) decided in 2016 that one<br />

of the first two gas-to-power plants to be constructed under the<br />

Independent Power Producer Procurement Programme would be<br />

allocated to Richards Bay. This has the potential to turn the Richards<br />

Bay Industrial Development Zone (RBIDZ) into an energy hub. The fact<br />

that neighbouring Mozambique has significant offshore deposits is a<br />

factor in this ambition. To produce its allocation of 2 000MW, the plant<br />

would have to use a million tons a year of liquid natural gas.<br />

A new unit within the National Department of Trade and Industry<br />

(dti) is focussed on importing LNG, particularly from Mozambique and<br />

Botswana. Local demand for LNG is expected to increase to more than<br />

10-million tons per annum.<br />

The Richards Bay Industrial Development Zone signed an agreement<br />

in 2015 with Byromate to produce 60MW from a biomass plant<br />

and manufacturing in the solar sector is another option within the<br />

broader energy field.<br />

The regulator and promoter of oil and gas exploration in South<br />

Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas<br />

exploration rights in <strong>KwaZulu</strong>-<strong>Natal</strong> to NT Energy<br />

Africa, which has a partnership with the Central Energy Fund. These<br />

awards are for onshore exploration.<br />

The Petroleum Agency SA is an agency of the National<br />

Department of Energy.<br />

Sinopec of China has bought a 75% share in Chevron South Africa<br />

for R12.6-billion and the deal has been approved by regulators. Assets<br />

include a lubricants plant in<br />

Durban, an oil refinery in Cape<br />

Town and 820 petrol stations<br />

across South Africa and Botswana.<br />

Getting fuel to the province<br />

of Gauteng is the key mission of<br />

the new multi-purpose pipeline<br />

(NMPP) which started delivering<br />

fluids in 2012. The NMPP terminals<br />

allow for greater flexibility in supply.<br />

Refined products such as jet<br />

fuel, sulphur diesel and both kinds<br />

of octane petrol are carried. The<br />

infrastructure of Transnet Pipelines<br />

apparently reduces the number of<br />

fuel tankers on South African roads<br />

by about 60%.<br />

The liquid fuels and gas networks<br />

of Transnet Pipelines traverses<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> from west<br />

to east and north to south. The<br />

petroleum network has intake<br />

stations at both Durban refineries,<br />

while the gas pipeline runs<br />

from Secunda to Durban, with<br />

diversions to the manufacturing<br />

hubs of Newcastle and Richards<br />

Bay, and along the coast between<br />

Durban and Empangeni. Transnet<br />

55 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Pipelines employs 658 staff, with about 200 located at the head office<br />

in Anton Lembede Street in downtown Durban.<br />

Assets<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is home to two major oil refineries and is the first link in<br />

the pipeline chain that links Gauteng province, the industrial heartland<br />

of South Africa, with vital fuels. The Port of Durban handles 80% of South<br />

Africa's fuel imports. <strong>KwaZulu</strong>-<strong>Natal</strong> is thus a key player in the country’s<br />

oil and gas industry.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s two oil refineries are important regional and national<br />

assets as their joint production accounts for more than 300 000 of the<br />

700 000 barrels of refined crude oil that South Africa produces.<br />

South Africa’s biggest refinery is Sapref. Owned jointly by Shell SA<br />

Refining (25%), Thebe Investments (25%) and BP Southern Africa (50%), it<br />

has a capacity to produce 180 000 barrels per day. The refinery also makes<br />

ONLINE RESOURCES<br />

Independent Power Producers Programme:<br />

www.ipp-projects.co.za<br />

National Department of Trade and Industry: www.thedti.gov.za<br />

National Energy Regulator of South Africa: www.nersa.org.za<br />

Petroleum Agency SA: www.petroleumagencysa.com<br />

South African National Energy Association: www.sanea.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

Transnet Pipelines: www.transnetpipelines.net<br />

propylene feedstock, solvents,<br />

sulphur, asphalt, industrialprocessing<br />

oils and liquefied<br />

petroleum gas.<br />

Sapref has started a clean-fuels<br />

project, aiming to reduce sulphur<br />

and benzene levels, among<br />

other things, in fuel products.<br />

The modifications to the refinery<br />

will bring it into line with the<br />

tougher legislation regarding fuel<br />

production that is in the pipeline.<br />

The Enref refinery owned by<br />

Engen can produce 135 000 barrels<br />

per day. This sophisticated refinery<br />

can convert light and heavy<br />

crude oil into high-value products<br />

that include jet and diesel fuel,<br />

solvents, bitumen, sulphur, bunker<br />

oil and aviation gasoline.<br />

Safor is a base-oil production<br />

facility (jointly owned by Engen,<br />

Caltex and Total but operated<br />

by Engen) that produces 45%<br />

of Southern Africa’s base oils.<br />

Engen also owns the adjoining<br />

Lube Oil Blend Plant, which<br />

produces more than 72-million<br />

litres of finished lubricants<br />

annually.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has the<br />

second-highest consumption<br />

of diesel fuel of South Africa’s<br />

provinces (17.8%) and the thirdhighest<br />

consumption of petrol<br />

(15.4%).<br />

Royal Vopak, which runs a large<br />

terminal at the Port of Durban, has<br />

expanded capacity to 174 000m³<br />

and is planning to grow its ability<br />

to store fuel still further. It is also<br />

planning a new storage facility<br />

at Heidelberg that will cater<br />

for petroleum and chemicals.<br />

Towns along the N3 highway are<br />

increasingly receiving investments<br />

in the logistics sector.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

56


Transnet Pipelines owns, operates and maintains a 3 800km network of high pressure underground<br />

petroleum and gas pipelines. Established in <strong>19</strong>65, the company plays a strategic role in the supply of<br />

petroleum products to South Africa's economic hub in Gauteng. Ta ensure security of supply, a new<br />

24 inch Multi-Product Pipeline (MPP) was constructed and commissioned in 2012. Lennie Maadley,<br />

Chief Executive of Transnet Pipelines, discusses the latest milestone in the MPP project.<br />

Is the Multi-Product Pipeline working to<br />

expectations? Yes, since it was brought into<br />

operation in January 2012 it has transported over<br />

18 billion litres of diesel. We have now successfully<br />

brought it into multi-product operation. In addition<br />

to transporting two grades of diesel {D50 and<br />

D500) we are now transporting 93 and 95 unleaded<br />

petrol as well as jet fuel.<br />

Can you put a figure on the number of road trips<br />

(or number of tankers) that have been reduced<br />

because of the introduction of the Multi-Product<br />

Pipeline? Not directly as all modes of transport are<br />

required to service the market. pipelines are ideal<br />

for large volumes and long distance, whilst road<br />

and rail service other areas. We can however, say<br />

that if we did not have the Multi-Product Pipeline<br />

you would need an additional 1 ODO road tankers<br />

per day between Durban and Gauteng.<br />

What are current volumes of throughput in the<br />

various categories? The capacity of the line is<br />

1 080 cubic metres per hour and the average<br />

throughput is approximately 115 million litres per<br />

week. The volume split per product depends on<br />

weekly market demand and varies from week to<br />

week.<br />

Is TPL on target with regard to these volumes?<br />

The volumes are slightly behind target. but this is<br />

reflective of the lower demand in the market due to<br />

the slowdown of the economy. From a capacity and<br />

operational point of view TPL is able to meet the<br />

demand required by its customers.<br />

And the balance sheet? Pipelines is currently<br />

forecast to exceed financial targets in the 2017 /18<br />

year:<br />

• Revenue of R4.2bn<br />

• EBITDA margin of 74%<br />

• Return on assets of 6.7%<br />

• Asset base of R36bn excluding capital work in<br />

progress<br />

• Cash generated from operations of R3.lbn


Please tell us about your journey to the CEO's<br />

desk? What was your first job at TPL? Was there a<br />

moment/event where you thought, "Yes, pipelines<br />

is where I want to be"? My journey started in<br />

Transnet Pipelines in 2002 as an Executive<br />

<strong>Business</strong> Manager in charge of operations and<br />

has evolved through various roles since then.<br />

From the onset I knew this is where I want to be<br />

and approached each day with enthusiasm and<br />

determination. Pipelines is a fascinating, complex<br />

and challenging environment. In 2002, Transnet<br />

Pipelines, then known as Petronet, transmitted 334<br />

million m 3 of gas and 13.8 billion litres of fuel and<br />

our revenue was R7<strong>19</strong> million. In comparison to the<br />

previous year, we have transported 17 billion litres<br />

of fuel and our revenue was R4 285 million. I have<br />

aspirations of growing the company even further,<br />

with specific focus on diversification into the<br />

liquefied natural gas (LNG) market and expanding<br />

our footprint into Africa.<br />

Do you feel that your stint in Operations gives<br />

you an especially good perspective on the<br />

complexities of the business? Yes, it provides<br />

good insight into the operational and technical<br />

aspects of the business. It also provided great<br />

understanding into the various role- players in the<br />

market segment and the number of challenges<br />

faced by the industry. Furthermore, it empowers<br />

me to challenge views and make informed<br />

decisions.<br />

How much success is TPL having in terms of<br />

applying the relatively new policy of diversifying<br />

revenue streams? Please expand on which are<br />

working best, and give examples (eg, training in<br />

Africa). Our initiatives to diversify our revenue<br />

streams are at an infancy. However, we are<br />

confident that we will achieve our aspirations in the<br />

medium term. In addition to becoming a key player<br />

in the LNG market, Pipelines is also committed<br />

to operate and maintain pipelines, operate and<br />

maintain terminals in other African countries and<br />

provide pipeline-specific training to the oil and gas<br />

industry.<br />

How do you ensure security of supply? Our biggest<br />

challenge is to stay ahead of market demand and<br />

ensure efficient operations. We meet regularly<br />

with our customers to understand their market<br />

and needs and execute our plan accordingly, thus<br />

ensuring that their market demands are met and<br />

facilitating security of supply. We have pertinent<br />

KP ls that we track to ensure our performance is in<br />

line with what the market requires. In addition to<br />

just the pipeline as a mode of transport, we also use<br />

rail, our Transnet Value CC initiative, whereby areas<br />

not serviced by pipelines are still serviced by rail;<br />

one such example is the supply of jet fuel to ORTIA,<br />

whereby both rail and pipeline is used.<br />

How do you protect pipes from corrosion? In<br />

addition to the pipeline being coated, we have<br />

an extensive cathodic protection programme in<br />

place that monitors and deals with stray currents<br />

thus preventing corrosion. We also do periodic<br />

"intelligent pig" investigations to check the<br />

integrity of the pipeline.<br />

What risk is involved for the environment through<br />

which pipelines pass? Pipelines by their nature<br />

are a safe, environmentally friendly mode of<br />

transport. The biggest threat is unauthorised third<br />

party activities, encroachments and attempted<br />

pilferage. In saying this, incidents do happen;<br />

however, our track record to date is exemplary and<br />

we have an emergency response plan to react to<br />

any incident together with all stakeholders.<br />

Are you getting the rates you want<br />

from the National Energy Regulator<br />

of South Africa (NERSA)? Yes,<br />

the Regulator has an approved<br />

tariff methodology which<br />

we comply with that allows<br />

us a fair return on assets<br />

managed.<br />

Please outline TPL's<br />

skills development<br />

programmes? Most of<br />

our programmes are<br />

focussed on pipeline<br />

specific requirements,<br />

both technical and<br />

operational. But we also<br />

have specific courses<br />

such as the "Women in<br />

Pipelines" course which<br />

we are now going to<br />

expand to all employees<br />

in Pipelines to equip them<br />

with skills that will allow<br />

them to grow personally<br />

and in their careers, with<br />

specific focus on diversity,<br />

finance management, selfesteem<br />

and leadership skills.<br />

www.transnetpipelines.net


OVERVIEW<br />

Manufacturing<br />

A Durban shipyard is making tugs for Transnet.<br />

SECTOR INSIGHT<br />

Packaging company Mpact<br />

has increased capacity at<br />

Felixton by 35%.<br />

• Two special economic<br />

zones are designed to<br />

attract manufacturers.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is a key centre of manufacturing in the South<br />

African economy. Two large oil refineries and a sophisticated<br />

sugar milling and refining industry underpin provincial<br />

chemical manufacturing. The chemicals and petrochemicals<br />

subsector makes up 17% of the manufacturing output of <strong>KwaZulu</strong>-<br />

<strong>Natal</strong>, with industrial chemicals accounting for nearly a third. Steel and<br />

aluminium are other heavy manufacturing products. The automotive<br />

industry is covered in a separate article.<br />

The manufacturing sector contributes 17.7% to the provincial Gross<br />

Domestic Product (GDP). The strongest export sectors are base-metals<br />

(32% including aluminium), mineral products such as ores, vehicles<br />

and chemical products.<br />

The nine-tug contract put out by Transnet National Ports Authority<br />

(TNPA) is worth R1.4-billion and was won by Durban-based Southern<br />

African Shipyards in Durban. Most of the tugs have been built and sent<br />

to ports around the country.<br />

Paper and plastics packaging company Mpact recently invested<br />

R765-million on increasing capacity at its Felixton paper mill by 35%.<br />

The company has 21 manufacturing sites across Southern Africa.<br />

Special Economic Zones (SEZs) at Richards Bay and Dube<br />

TradePort are attracting manufacturers with zoned and serviced<br />

land and tax rebates. The provincial government is keen to link<br />

the agriculture sector with manufacturers and intends to use its<br />

Agri-Village Programme to pursue this goal. To take advantage<br />

of the existing strengths of cities and districts in the province, a<br />

network of Industrial Economic Hubs (IEHs) is being developed in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>. Leading the process is the Department of Economic<br />

Development, Tourism & Environmental Affairs (DEDTEA).<br />

A Halaal Manufacturing Park is<br />

being considered by DEDTEA, finance<br />

institution Ithala, the South<br />

African National Halaal Authority<br />

and business leaders. A location<br />

near a good road or national highway<br />

and within easy reach of the<br />

Port of Durban would be ideal.<br />

It is expected that investors will<br />

find this an attractive proposition.<br />

Hulamin is a leader in aluminium<br />

finished-products. The company<br />

makes rolled products<br />

at Edendale, Pietermaritzburg<br />

and at Camps Drift while its<br />

Pietermaritzburg facility for<br />

making extrusions is one of<br />

the three in the country. Rolled<br />

products make up 91% of the<br />

company's output. Extruded<br />

products make up the remainder.<br />

Exports to the automotive<br />

industry in the USA are on the<br />

increase.<br />

The group headquarters of<br />

Africa’s biggest pharmaceutical<br />

manufacturer, Aspen, are in La<br />

Lucia Ridge. German chemicals<br />

group Lanxess has built a carbon<br />

dioxide concentration unit at its<br />

existing plant in Newcastle. The<br />

company makes tanning raw<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

60


OVERVIEW<br />

USED JUICE AND MILK CARTONS NOW RECYCLABLE IN SA<br />

Juice and milk cartons have long been one of<br />

the contributors to waste in South Africa’s<br />

landfill sites. In a major development for the<br />

South African paper and packaging recycling<br />

market, Mpact Recycling recently announced<br />

that liquid cartons are now recyclable.<br />

John Hunt, managing director of Mpact<br />

Recycling, says it was previously not possible<br />

to recycle juice and milk cartons as they are<br />

not made of typical paperboard.<br />

This announcement follows the investment<br />

of R46-million in a Liquid Packaging recycling<br />

plant at Mpact’s Springs Paper Mill facility;<br />

the recycling plant has the capacity to recycle<br />

25 000 tonnes of used liquid cartons per annum<br />

which will be fed directly into the paper<br />

division for use in new paper products. Mpact<br />

Recycling’s role, through its extensive collection<br />

network of paper, containerboard, PET<br />

and now liquid packaging, is to supply its mills<br />

with sufficient volume to match its capacity.<br />

This is why Mpact has embarked on a campaign<br />

to raise consumer awareness that longlife<br />

milk and juice cartons are now recyclable.<br />

Consumers must ensure the cartons are empty<br />

and flattened. Where there is no kerbside collection,<br />

they can deliver their cartons to any of<br />

Mpact’s buy-back centres countrywide or to<br />

one of its seven Mpact Recycling operations<br />

for payment.<br />

“Liquid carton packaging provides a category<br />

of waste that can be recycled and will<br />

add considerably to land preservation in South<br />

Africa as consumers can redirect cartons away<br />

from limited landfill space.<br />

“Whether you finish a carton of milk at<br />

breakfast or enjoy a boxed fruit juice for lunch,<br />

place your flattened, used container into your<br />

nearest recycling bin, whether at home, school<br />

or work. This way South Africans will be not<br />

only be doing their bit to keep the environment<br />

clean, but will also be helping to continue creating<br />

sustainable job opportunities throughout<br />

the recycling value chain,” concludes Hunt.<br />

61 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


SPECIAL FEATURE<br />

materials at Merebank in Durban and rubber chemicals in Isithebe<br />

north of Durban.<br />

Newcastle is a chemical manufacturing hub. The big steel works<br />

of Arcelor Mittal produce by-products such as ammonium sulphate,<br />

and large companies such as Karbochem, Bayer, African Amines and<br />

SA Calcium Carbide also operate in the area.<br />

AECI has a big presence in the province under the Chemical Services<br />

banner. Chemical Initiatives runs an elemental-nutrient sulphur plant<br />

in Umbogintwini. SA Paper Chemicals operates a big plant at Isithebe.<br />

Protea Chemicals has a large manufacturing plant at Mobeni.<br />

Sappi Saiccor's Umkomaas plant is the biggest producer of specialised<br />

cellulose in the world with production edging upwards every year<br />

towards full capacity of 800 000 tons per annum. Illovo Sugar manufactures<br />

downstream products such furfural (used in lubrication oil),<br />

furfuryl alcohol, diacetyl (a flavouring in margarine) and ethyl alcohol.<br />

Kynoch makes fertilizer at plants in Durban and Richards Bay. Foskor's<br />

acid division manufactures sulphuric acid, phosphoric acid and granular<br />

fertilizer in Richards Bay. ChemSpec makes paint at Canelands.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> produces nearly a third of South Africa’s plastic<br />

requirements. Nampak has several packaging facilities in the province<br />

and MPact’s Pinetown facility specialises in FMCG containers. Mcbean<br />

Beier Plastics and PCI also operate out of Pinetown.<br />

Packaging and paper group Mondi is a major international company<br />

with its roots in <strong>KwaZulu</strong>-<strong>Natal</strong>. Mondi’s Richards Bay mill and its<br />

paper plant at Merebank are among the province’s most significant<br />

manufacturing sites.<br />

Textiles<br />

(Coface). Ninian & Lester has about<br />

1 500 employees.<br />

The footwear sector is showing<br />

good recovery after taking a<br />

battering from Chinese imports.<br />

The purchase of 39% of Eddels<br />

Shoes by management and staff<br />

has paid off, with 385 staff employed<br />

in making 2 700 leather<br />

shoes every day.<br />

Two international safety<br />

footwear firms operate out of<br />

Pinetown: Bata Industrial and<br />

Beier. The latter company joined<br />

forces with three other South<br />

African safety footwear manufacturers<br />

to form the BBF Safety<br />

Group in order to be able to compete<br />

with cheap imports.<br />

Carpet manufacturer Belgotex<br />

Floorcoverings and Ulster Carpets<br />

have facilities in Pietermaritzburg<br />

and Durban respectively. Home<br />

appliance manufacturer Defy,<br />

which is part of the Turkish group<br />

Arçelik, employs about 2 600 people.<br />

Böhler Uddeholm in Pinetown<br />

produces tooling materials and<br />

welding consumables.<br />

Shanghai, with which <strong>KwaZulu</strong>-<strong>Natal</strong> has signed a new memorandum<br />

of understanding, has agreed to run an exchange programme<br />

focussing on clothing and textiles. Thirty local students will study in<br />

Shanghai in the first phase of the project.<br />

Canvas and Tent Manufacturing (Pty) Ltd has more than 400 employees<br />

in Ladysmith. There are 2<strong>19</strong> clothing companies in the province<br />

ONLINE RESOURCES<br />

Aluminium Federation of South Africa: www.afsa.org.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

Manufacturing Circle: www. manufacturingcircle.co.za<br />

National Association of Pharmaceutical<br />

Manufacturers: www.napm.org.za<br />

National Department of Trade and Industry: www.thedti.gov.za<br />

Plastics SA: www.plasticsinfo.co.za<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

62


SPECIAL FEATURE<br />

63 KWAZULU-NATAL BUSINESS 2016/17


OVERVIEW<br />

Automotive<br />

An automotive supplier park is under construction.<br />

Toyota South Africa and Bell Equipment are manufacturing<br />

giants. Between the Toyota plant at Prospecton south of<br />

Durban and the Richards Bay facility of heavy-equipment<br />

manufacturer Bell Equipment, upwards of 11 000 people are<br />

employed. Both companies are market leaders.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> also has a substantial and varied automotive components<br />

sector which includes large manufacturers such as Apollo<br />

Tyres and GUD Filters. Thirty-nine companies are currently members<br />

of the Durban Automotive Cluster which is funded by the municipality.<br />

Together, these firms have about 17 000 employees.<br />

Bell is in the process of transferring production of its current truck<br />

range to its factory in Germany, which will double in size to accommodate<br />

the growing demand for trucks in Europe and America.<br />

Bell’s new European headquarters opened in Alsfeld in August<br />

2017. The shift will not affect employment levels at the Richards<br />

Bay site because Bell will start assembling Kamaz heavy-duty trucks<br />

(pictured above) in 20<strong>19</strong> for the African market. Kamaz, a Russian<br />

brand that has won 14 Dakar rallies, is known for its reliability in<br />

tough conditions. Bell’s intention is to increase the percentage of<br />

local components over time.<br />

SECTOR INSIGHT<br />

• Bell Equipment will make<br />

Kamaz trucks at Richards<br />

Bay.<br />

Bell is best known for its heavy<br />

equipment which is primarily<br />

used in the mining and construction<br />

sectors. The listed company<br />

reported a 13% rise in revenue in<br />

December 2017, to R6.7-billion.<br />

Toyota recently invested a<br />

further R6.1-billion into its already<br />

very large plant at Prospecton.<br />

The company regularly sells<br />

about a quarter of the vehicles<br />

sold in South Africa, and accounts<br />

for the same proportion of export<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

64


OVERVIEW<br />

volumes. The Corolla car, the Hilux bakkie and the Fortuner SUV are<br />

manufactured at the plant.<br />

Components<br />

To promote the city of Durban as a destination for automotive<br />

investment, the first National Association of Automotive Components<br />

and Allied Manufactures (NAACAM) Show was held in Durban in<br />

2017. Future events will rotate between other centres in South Africa.<br />

In line with the policy of developing Industrial Economic Hubs,<br />

the Durban Automotive Supplier Park is being built at Illovo, south of<br />

Durban and near to the Toyota plant.<br />

An amount of R11.5-billion will be invested in three phases, with<br />

the first allocation amounting to R4.3-billion. The Dube TradePort<br />

Corporation will manage the project, which covers 1 013ha. Other<br />

partners are the eThekwini Municipality, Toyota and the provincial<br />

government. The aim is to attract car assembly and component<br />

manufacturing companies.<br />

The province already has a substantial automotive-supply sector.<br />

Trade and Investment <strong>KwaZulu</strong>-<strong>Natal</strong> (TIKZN) estimates that the<br />

province's component automotive manufacturers enjoy a combined<br />

turnover approaching R10-billion.<br />

Powerstar, a Chinese state-owned brand, assembles trucks<br />

in Pietermaritzburg on a site formerly used by Super Group. The<br />

companies that make Powerstar in Asia are the China North Vehicle<br />

Corporation (Norinco Motors) and BEIBEN, who produce about 60<br />

000 heavy-duty commercial vehicles every year at their plant in Inner<br />

Mongolia.<br />

One car salesman who is ahead of the game in Newcastle is Xolani<br />

Khumalo of Supertech Newcastle. With a growing Chinese community<br />

in the area, the ability of the BMW salesman to interact in the language<br />

of his client base is a major advantage.<br />

Keeping MAN and Toyota supplied is the R300-million operation,<br />

Duys Engineering Group. This diverse group of companies includes<br />

in its business plan the supply of truck bodies and truck components<br />

ONLINE RESOURCES<br />

Automotive Industry Development Centre: www.aidc.co.za<br />

Automotive Industry Export Council: www.aiec.co.za<br />

Durban Automotive Cluster: www.dbnautocluster.org.za<br />

National Association of Automobile Manufacturers of South<br />

Africa (NAAMSA): www.naamsa.co.za<br />

National Association of Automotive Component and Allied<br />

Manufacturers (NAACAM): www.naacam.co.za<br />

and has production plants at New<br />

Germany (Pinetown) and Richards<br />

Bay, from where it services the<br />

mining industry. Toyota Boshoku<br />

manufactures seats and does<br />

the interior trim on contract for<br />

Toyota.<br />

International company GUD<br />

Filters has a big presence in<br />

the province. Headquartered in<br />

Prospecton, where more than<br />

1 500 people work at one of its<br />

factories, the company has another<br />

plant in Pietermaritzburg and a<br />

distribution centre in Pinetown that<br />

concentrates on exports.<br />

Indian-owned Apollo Tyres SA<br />

makes Dunlop products at two<br />

large factories in the province: truck<br />

tyres are made in Durban at an<br />

80 000m² plant where 840 workers<br />

are employed and a passenger car<br />

tyre plant in Ladysmith (77 000m²,<br />

1 160 employees). The Durban<br />

factory devotes 40% of production<br />

to supplying the truck and<br />

earthmoving market. Both plants<br />

make about 25 000 tons of tyres<br />

with half of the passenger tyres<br />

being exported.<br />

The Behr Group is another<br />

international company with a<br />

presence in the province. The airconditioning<br />

and cooling systems<br />

company has a factory and its<br />

headquarters in Durban.<br />

Ramsay Engineering supplies<br />

cross-car beams for BMW and<br />

Ford. Funding was received from<br />

the Industrial Development<br />

Corporation (IDC) to buy new<br />

tool-making technology to make<br />

this possible. The company,<br />

which has its headquarters in<br />

Pietermaritzburg, makes 150 000<br />

units per year for the two original<br />

equipment manufacturers.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

66


PROFILE<br />

Toyota<br />

Prestigious enhancements to Land Cruiser Prado.<br />

With an off-road heritage spanning more than<br />

65 years, Land Cruiser remains unique in<br />

its segment for its ability to combine outstanding<br />

quality, durability and reliability<br />

with unrivalled off-road performance and ever-greater levels<br />

of luxury, comfort and ownership prestige.<br />

Land Cruiser is the most widely available model in the<br />

global Toyota product range. Its unmatched off-road abilities<br />

have earned it a rock-solid reputation as one of the world’s<br />

toughest and most reliable 4x4s. In South Africa, the Land<br />

Cruiser range has a cult-like following with off-roading enthusiasts’<br />

admiration deeply rooted in its legendary robustness.<br />

The new Land Cruiser Prado enhances this reputation<br />

with more modern and robust exterior styling, a more sophisticated,<br />

comfortable and higher-quality interior, and<br />

improvements to its user-friendliness, both on and off-road.<br />

The body-on-frame build also efficiently isolates<br />

the cabin from suspension impacts, making<br />

even the most challenging off-road conditions<br />

more comfortable to negotiate for everyone<br />

on board. The all-terrain support systems help<br />

even unskilled drivers make the most of Land<br />

Cruiser’s off-road performance. They also make<br />

the Prado one of the most technically advanced,<br />

safe, pleasurable and easy-to-use 4x4 vehicles<br />

in the world.<br />

The Prado’s powerful road presence and high<br />

levels of on-board technology mark it down as a<br />

premium 4×4 with a perfect blend of go-anywhere<br />

capability, comfort and refinement.<br />

Where you want to go, Land Cruiser Prado will<br />

take you there – and bring you back.<br />

Unquestionable off-road prowess<br />

Land Cruiser’s peerless off-road<br />

capability is rooted in its highly<br />

durable and deformation-resistant<br />

body-on-frame construction,<br />

which is now unique in the<br />

large SUV segment. The vehicle’s<br />

combination of strength and<br />

durability provides a high level<br />

of damage protection and it is<br />

designed for easy maintenance and repairs. Significantly<br />

reduced levels of body twisting help the driver optimally<br />

position and control the vehicle.<br />

Grand Grade<br />

The Prado range has traditionally<br />

consisted of two<br />

grades, the mid-level TX<br />

and high-grade VX. For the<br />

first time, a new third grade,<br />

called VX-L has been added<br />

to the model line-up. The<br />

VX-L model combines all<br />

the features of the VX while<br />

adding a power-operated tilt-and-slide moonroof<br />

and comprehensive active safety assistance package<br />

to the mix.<br />

67 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


More dynamic, modern and robust styling<br />

The exterior design of successive Land Cruiser generations has combined the stylish<br />

aesthetics of a vehicle entirely at home in any environment with the robust image of<br />

durability and power expected of a genuine all-wheeldrive machine.<br />

The new Land Cruiser builds on this proven, trusted formula with a new design that is<br />

visually more agile and dynamic, yet which maintains three core strengths essential to the<br />

vehicle’s go-anywhere credentials: Total Practicality, with headlamps and cooling openings<br />

positioned to maximise protection and wading depth; Total Durability, with the powertrain<br />

and all functional parts well protected; and Total Capability, with a tight turning circle and<br />

generous ground clearance, essential for the most demanding off-road driving conditions.<br />

New-look frontal elements such as the bonnet, grille, headlamps, bumper and wings draw on structural elements<br />

from the model’s design heritage. The bonnet has been shaped to improve downward visibility at the centre and<br />

it is sandwiched by the sides of the bumper to help protect the engine bay.<br />

Higher-quality interior<br />

The top of the new centre console tower has been set lower for a sleeker appearance and<br />

better front-on visibility when driving off-road. It is fitted with a new eight-inch, full-colour<br />

multimedia screen, a flush-fitting air-conditioning control panel and the drivetrain-related<br />

instrument cluster.<br />

The controls for driving and comfort functions are in separate panels for ease of use,<br />

positioned behind a new, leather-trimmed gear lever. They include switches to operate new<br />

integrated heating and ventilation for the front seats. The luxury and sophistication of the<br />

interior are amplified by new white illumination for the instrument panel, centre console and<br />

door-mounted switches.<br />

Specification additions<br />

TX models inherit the much favoured “coolbox” located in the centre console binnacle.<br />

All models are now equipped with seat ventilation for driver and passenger in addition<br />

to the seat-heating function (for first- and second-row occupants).<br />

The top-tier VX and VX-L models are outfitted with Satellite Navigation<br />

and an enhanced surround-view Multi Terrain Monitor camera system which<br />

also includes Panoramic and overhead view modes. The 14-speaker Premium<br />

touchscreen infotainment system incorporates a tablet-like design and easy to<br />

operate switchgear.<br />

The standard convenience specification list is befitting the stature of the Land Cruiser<br />

Prado: automatic dual-zone climate control, six-speaker touch audio system, electrically<br />

adjustable driver’s seat, illuminated entry, cruise control, park distance control, keyless entry, three power outlets,<br />

Bluetooth connectivity, USB, third-row seating and reverse camera.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

68


Off-road technologies<br />

All Prado models feature Toyota’s Active Traction Control system, which actively regulates<br />

wheel-slip, by directing torque to the wheel with the most traction. The system<br />

can apply braking pressure to wheels individually to maximise traction. A low-range<br />

transmission with user-selectable rear and centre diff-locks and Hill Assist Control, forms<br />

part of the standard ensemble.<br />

The Multi-Terrain Select system (VX and VX-L only), operated by a centrally mounted<br />

rotary knob, allows the driver to select the correct mode depending on the “road” ahead.<br />

The system has five pre-configured modes to tailor the vehicle’s traction control, transmission<br />

characteristics, power delivery and suspension settings to the terrain at hand.<br />

Expanded range of safety features<br />

VX-L grade versions of the new 2017 Prado are equipped with Toyota Safety Sense active<br />

technologies to help prevent accidents from happening or mitigating the consequences if<br />

an impact does occur.<br />

The package includes a Pre-Collision System with pedestrian detection function, Adaptive<br />

Cruise Control, Lane Departure Alert and Automatic High Beam. The Adaptive Cruise Control<br />

system uses radar sensors in the front grille to monitor the distance to the vehicle in front<br />

and applies corrective action via both throttle and brake inputs to maintain a specified gap.<br />

Further driver support is provided in the form of a Blind Spot Monitor with Rear Cross<br />

Traffic Alert (both VX and VX-L) and an upgraded tyre pressure warning system – with digital<br />

read-out in the multi-information display.<br />

These active safety systems complement the standard seven airbags and comprehensive brake and<br />

stability control systems.<br />

Warranty and Service<br />

All Land Cruiser Prado models include a 5-year/90 000-kilometre service plan and 3-year/100 000-kilometre<br />

warranty.<br />

www.toyota.co.za<br />

69<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Energy<br />

Biomass is producing energy in northern <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

A<br />

17MW biomass project south-east of Pongola in the northern<br />

part of <strong>KwaZulu</strong>-<strong>Natal</strong> represents the province’s only<br />

approved project in terms of the national Renewable<br />

Energy Independent Power Producer Procurement<br />

Programme (REIPPPP) but provincial planners are keen to use the<br />

province’s ample supply of sun and wind to exploit the potential<br />

of this exciting sector.<br />

Municipal buildings in the eThekwini metro are being fitted with<br />

solar panels. The Ushaka Marine World Theme Park is one of several<br />

facilities to receive solar PV panels intended to reduce demand from<br />

the grid. The pilot programme should save the city 426.75MWh, or<br />

about R330 000 in its first year of operation.<br />

The growing popularity of solar water heaters has encouraged<br />

Durban manufacturer Solar Beam to spend R2.5-million on expanding<br />

its premises. A joint initiative between the University of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> and the Georgia Technology Institute of the USA<br />

will see the establishment of a Solar Energy Institute.<br />

As part of the provincial government's strategy to boost regional<br />

development, the iLembe District has been named as an Industrial<br />

Economic Hub (IEH) for the renewable energy sector. With the King<br />

Shaka International Airport (KSIA) and the Dube TradePort lying<br />

just south of the iLembe District in the eThekwini Municipality,<br />

a partnership has been created between the two municipalities<br />

and the provincial government to develop a renewable energy<br />

technology innovation hub.<br />

The other area attracting energy investors is the Richards Bay<br />

Industrial Development Zone (RBIDZ) which has been named as the<br />

site for 2 000MW liquefied natural gas (LNG) plant in terms of national<br />

government's gas-to-power plan. RBIDZ is also the site of a new<br />

biomass plant. Forestry waste, sugar cane and agricultural waste<br />

will provide the feedstock for a R2-billion facility that will largely<br />

supply the tenants of the Richards Bay Industrial Development<br />

Zone (RBIDZ) with power. The investing company Byromate, which<br />

ONLINE RESOURCES<br />

National Department of Energy: www.energy.gov.za<br />

National Energy Regulator: www.nersa.org.za<br />

Southern African Bioenergy Association: www.saba.za.org<br />

South African National Energy Association: www.sanea.org.za<br />

SECTOR INSIGHT<br />

• The iLembe District is set<br />

to become a renewable<br />

energy hub.<br />

has wind and solar projects elsewhere<br />

in South Africa, expects<br />

to start delivering power in <strong>2018</strong>.<br />

The provincial government<br />

wants to see the RBIDZ become<br />

a hub for renewable energy, and<br />

this bio-gas project is expected<br />

to be the first of many in solar<br />

power, wind and other types<br />

of renewable energy. The huge<br />

forestry, timber, paper and pulp<br />

industries of the province carry<br />

with them the potential to provide<br />

feedstock for the renewable<br />

energy sector.<br />

Sugar grower and producer<br />

Tongaat Hulett believes that the<br />

national sugar industry could<br />

generate between 700MW and<br />

900MW.<br />

Biomass technology is at the<br />

centre of the conversion scheme<br />

of South African Breweries at<br />

its Prospecton plant south of<br />

Durban. Methane-gas emissions<br />

from a nearby effluent plant are<br />

piped to the plant where they are<br />

converted to electricity.<br />

The eThekwini Municipality<br />

is spending R140-million on a<br />

plant that will convert methane<br />

gas from its major landfill sites.<br />

Lanele Resources and Amatala<br />

Resources have plans to produce<br />

fuel from municipal waste.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

70


Water<br />

New water infrastructure is being built<br />

SECTOR INSIGHT<br />

OVERVIEW<br />

• The fifth phase of the<br />

Northern Aqueduct<br />

Augmentation project<br />

has begun.<br />

The area north of the Durban central business district is one of the<br />

fastest-growing urban areas in South Africa, with a number of<br />

large office and accommodation projects going ahead simultaneously.<br />

This is obviously a welcome development for the<br />

economy, but the new buildings also create pressures on infrastructure.<br />

The multi-year, R250-million Northern Aqueduct Augmentation project<br />

was initiated in 2014 and the fifth phase of the project has recently<br />

begun. This will provide water for Durban North, Umhlanga, Newlands,<br />

KwaMashu, Phoenix and Cornubia. It is intended to be complete by<br />

the end of 20<strong>19</strong>. Apart from a number of pipelines that will serve these<br />

growing areas, a bridge across the Umgeni River will be constructed.<br />

Bosch Projects is responsible for design for eThekwini Water and<br />

Sanitation (EWS) and Gibb is doing the environmental impact assessment.<br />

JSE-listed civil engineering and construction group Esor has<br />

several pipelaying contracts within the overall project.<br />

One of the many challenges faced by the South African water sector<br />

is a shortage of engineers. A study jointly commissioned by the<br />

Water Research Commission and the South African Local Government<br />

Association (SALGA) found that the country's four-in-a-million ratio of<br />

engineers is a long way from the required 50-per-million.<br />

Umgeni Water, the province’s biggest water utility, has launched the<br />

Adopt-a-River Project, which aims to keep rivers clean, raise awareness<br />

and create jobs. The first phase of the Spring Grove Dam in the Mooi<br />

ONLINE RESOURCES<br />

Mhlathuze Water: www.mhlathuze.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Umgeni Water: www.umgeni.co.za<br />

Water Balance Programme: www.wwf.org.za<br />

River area has been completed on<br />

schedule and has increased water<br />

supplies in the Umgeni River<br />

catchment area.<br />

Spring Grove takes to five the<br />

number of dams in the Mooi-<br />

Mgeni system (including Midmar,<br />

Albert Falls, Nagle and Inanda<br />

dams), which serve more than<br />

five-million people in Durban,<br />

Pietermaritzburg and surrounding<br />

towns. When Spring Grove is<br />

complete, the total system yield<br />

will rise to 394-million m3/year.<br />

A new dam is being built at<br />

Smithfield and the wall of the<br />

Hazelmere Dam is being raised<br />

to increase capacity. A new reservoir<br />

(Waterloo) near the King<br />

Shaka International Airport,<br />

and serving this northern area,<br />

has been constructed as part<br />

of the master plan that will see<br />

water delivered to this reservoir<br />

from the Northern Aqueduct<br />

Augmentation project.<br />

The Western Aqueduct project<br />

(valued at R864-million) and the<br />

associated Northern Aqueduct<br />

Augmentation project will inject<br />

water into the rapidly developing<br />

area north of Durban. The Tugela<br />

Bulk Water Scheme (valued at<br />

R1.4-billion) will supply water to<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>'s North Coast.<br />

71 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Tourism<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is investing in tourism.<br />

SECTOR INSIGHT<br />

• Airport arrivals numbers<br />

are growing.<br />

• A cruise liner terminal<br />

will be operational before<br />

2020.<br />

Tourism is one of three priority sectors identified by the<br />

Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> as being the most<br />

likely to promote economic growth and create jobs.<br />

The most recent large investment in tourism infrastructure,<br />

the King Shaka International Airport (KSIA), has experienced good<br />

growth since its opening in 2010. Overall passenger growth in 2017 was<br />

6.4%, the best percentage growth performance in the national context.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a varied tourism offering – mountains, heritage,<br />

beaches, conventions, sports – and the tourists who enjoy visiting the<br />

province are almost as varied.<br />

In recent years, visitors from countries in Eastern Europe such as<br />

Poland have shown that there are new markets to be tapped while<br />

tourism from and to the Middle East and India has increased because<br />

of direct flights into KSIA. Emirates, Air Mauritius and British Airways<br />

are among the airlines flying into KSIA.<br />

In <strong>KwaZulu</strong>-<strong>Natal</strong>, the combined contribution of retail and tourism<br />

to GDP is 14%. Many thousands of visitors to <strong>KwaZulu</strong>-<strong>Natal</strong> arrive by<br />

road, and the statistics show that the Mooi River toll plaza bringing visitors<br />

from Gauteng Province is a vital portal, but a very important arrival<br />

method for tourists in the high end of the market is by cruise liner. A<br />

joint venture between MSA Cruises SA and Africa Armada Consortium<br />

will spend R175-million on the financing‚ construction‚ maintenance<br />

and operation of a cruise terminal for a 25-year concession period.<br />

The Port of Durban envisages a 32 000m² area that will cater<br />

for two ships and at least 5 000 passengers. The number of cruiseship<br />

passengers attracted to Durban grew from 42 000 in 2004/05<br />

to 157 000 in 2010/11. South Africa attracts 0.5% of the world’s<br />

cruise-ship market which comprises about 15.4-million passengers<br />

annually. The terminal should be operational in October 20<strong>19</strong>.<br />

MSC Cruises itself dealt with<br />

about 90 000 cruise passengers<br />

through Durban harbour in 2014.<br />

In the summer months the MSC<br />

Sinfonia and MSC Opera sail from<br />

Durban to Mozambique and other<br />

destinations in the Indian Ocean.<br />

Another potential growth<br />

area is health tourism. Upwards<br />

of seven-million people travel<br />

the world annually for procedures,<br />

and South Africa is well<br />

placed to receive a percentage<br />

of this market. A conference<br />

held in Richards Bay in 2017 put<br />

the focus on issues such as investment,<br />

training and the development<br />

of products.<br />

One of the goals with<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> tourism is to<br />

develop products to attract<br />

visitors to rural areas and to sites<br />

that are currently not on the<br />

tourist roster. The aim is to involve<br />

a broader cross-section of<br />

the population as active participants<br />

in the sector. A new and<br />

interesting project for investors<br />

is the Drakensberg Cable Car<br />

project. Thirteen technical reports<br />

have been completed and<br />

the project has now reached the<br />

stage where the private sector<br />

can invest.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

72


OVERVIEW<br />

INDABA LODGE RICHARDS BAY<br />

Catering to both business and leisure travellers,<br />

the Indaba Lodge Richards Bay is situated<br />

in the leafy suburb of Meerensee. The<br />

66-bedroom Indaba Lodge is ideally located for<br />

both the corporate and leisure traveller within<br />

easy reach of the CBD, airport, harbour and<br />

waterfront, and it’s only a five-minute walk<br />

to Alkantsrand Blue Flag Beach.<br />

This vibrant Lagoon City encourages visitors<br />

to combine business with pleasure as they enjoy<br />

the lush beauty of this subtropical paradise<br />

combined with tranquil walks on miles of<br />

pristine beaches along the TuziGazi Coast.<br />

Richards Bay is the gateway to the famous<br />

Elephant Coast, Hluhluwe Umfolozi Big 5 Game<br />

Reserve and the Isimangaliso Wetland Park, a<br />

World Heritage Site.<br />

Towering Leopard Trees frame the modernfacade<br />

of the hotel and give a deep shade<br />

appreciated by guests as they arrive at the<br />

Indaba Lodge Richards Bay. Fully air-conditioned<br />

rooms ensure that guests stay cool<br />

even in the summer months. The Lodge’s popular<br />

Trevally’s Restaurant offers a seasonal<br />

dinner buffet or a bistro-style à la carte menu.<br />

For a more informal option, light meals are offered<br />

on the deck or a craft beer or a sundowner<br />

cocktail can be enjoyed at the ice-top bar. Braai<br />

facilities are available on the pool deck.<br />

Hotels<br />

Research by Tourism <strong>KwaZulu</strong>-<strong>Natal</strong> shows that the<br />

coastal province consistently has the best hotel<br />

occupancies in the country.<br />

Tsogo Sun runs 14 hotels in <strong>KwaZulu</strong>-<strong>Natal</strong>, five<br />

of which are Garden Courts. Six hotels are in Durban<br />

with a further four in nearby Umhlanga, where one<br />

of the group’s most luxurious hotels, the 89-room<br />

Beverly Hills, is located.<br />

A “mega-hotel” has been created by Tsogo Sun,<br />

with the amalgamation of the Southern Sun North<br />

Beach and Southern Sun Elangeni hotels. Protea<br />

Hotels has 18 properties in the province, with seven<br />

in Durban including the Protea Hotel Edward.<br />

The upgrading of the Point area between the<br />

beach and the Port of Durban has resulted in major<br />

investments. The Docklands Hotel at the Durban<br />

Waterfront is a four-star Signature development<br />

that cost about R100-million to develop.<br />

The Royal Hotel in the heart of Durban is one of<br />

eight Three Cities Group hotels in the province. The<br />

Golden Horse Casino Hotel is a Three Cities property,<br />

and the Group administers the International<br />

Hotel School in Westville that is also hosts the<br />

Christine Martin School of Food and Wine.<br />

IFA Hotels & Resorts runs several luxury properties<br />

including the Zimbali Coastal Resort and<br />

Zimbali Lakes Resort. Signature Life Hotels has 13<br />

properties and Gooderson Leisure has a varied<br />

portfolio.<br />

Sibaya Casino and Entertainment Kingdom,<br />

a Sun International property, is north of Durban<br />

between Umdloti and Umhlanga. The casinos<br />

in Newcastle (Century City), Empangeni (Tusk<br />

Umfolozi Casino) and Pietermaritzburg (Golden<br />

Horse Casino) are run by Century Casinos Newcastle,<br />

Peermont Global and Akani Msunduzi Management<br />

respectively. Durban’s Golden Mile is the site of the<br />

province’s biggest casino complex: the Sun Coast<br />

Casino and Entertainment World (Tsogo Sun).<br />

Airbnb is a fast-growing option in South Africa.<br />

The Airbnb visitors to South Africa in 2016 engaged<br />

in R2.4-billion worth of economic activity. Durban<br />

had the largest increase in Airbnb bookings from<br />

the previous year.<br />

73 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Meetings and events<br />

ONE campaign panel on ending poverty through education, World<br />

Economic Forum, Durban, 2017.<br />

The meetings, incentives, conference and exhibition<br />

sector (MICE) has been strong in the province for some<br />

time and it was boosted by the hosting in May 2017 of<br />

the World Economic Forum on Africa, which attracted<br />

800 of the largest companies in Africa as well as several<br />

Fortune 500 businesses. The event showcased investment<br />

opportunities in <strong>KwaZulu</strong>-<strong>Natal</strong> to an elite group<br />

of potential investors.<br />

MICE has been declared a priority sector by the provincial<br />

government. A dedicated unit within the KZN<br />

Tourism Authority, the Convention Bureau, has booked<br />

more than 50 events and conferences since 2012, bringing<br />

about R3-billion into the provincial economy.<br />

Durban's hosting of the Tourism Indaba further supports<br />

the idea that the province is a major conference destination.<br />

More than 7 000 delegates are annually attracted to the<br />

Durban International Convention Centre to exhibit South<br />

Africa's assets to international tour operators. The city has<br />

ONLINE RESOURCES<br />

Ezemvelo KZN Wildlife: www.kznwildlife.com<br />

Hotel Investment Conference Africa: www.hica.co.za<br />

Inkosi Albert Luthuli International Convention Centre<br />

Complex: www.icc.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Tourism Authority: www.zulu.org.za<br />

South African National Parks: www.sanparks.co.za<br />

South African Tourism: www.southafrica.net<br />

Tourism <strong>KwaZulu</strong>-<strong>Natal</strong>: www.zulu.org.za<br />

ANNUAL SPORTING EVENTS AND EXHIBITIONS<br />

January: Dusi Canoe Marathon,<br />

Pietermaritzburg to Durban.<br />

February: Midmar Mile, Midmar<br />

Dam.<br />

April: Durban International Boat and<br />

Leisure Show, Durban.<br />

May: Tourism Indaba,<br />

Durban. Comrades Marathon,<br />

Pietermaritzburg to Durban.<br />

June: Mr Price Pro international<br />

surfing contest, Ballito.<br />

July: The Durban July, Greyville.<br />

August: Durban International Film<br />

Festival, Durban.<br />

September: Dolphin Coast Ultra,<br />

North Coast. KZN Music Imbizo,<br />

Durban.<br />

October: Zululand Expo, Richards<br />

Bay. Berg and Bush bicycle race,<br />

Drakensberg.<br />

secured the Tourism Indaba until 2022.<br />

The range of topics covered by recent<br />

conferences held in <strong>KwaZulu</strong>-<strong>Natal</strong><br />

is wide and includes the World News<br />

Media Congress, the Pan-African Health<br />

Tourism Congress, the National Association<br />

of Automotive Components and Allied<br />

Manufactures (NAACAM) Show and the<br />

Durban Maritime Summit.<br />

International conferences held in the<br />

2016/17 financial year include:<br />

• 2016 International HIV and Aids<br />

Conference<br />

• World Leisure Congress<br />

• International Society of City and<br />

Regional Planners (ISOCARP) Summit<br />

• 5th African Internet Governance<br />

Forum<br />

• World Federation of Trade Unions<br />

Congress<br />

• General Assembly of the International<br />

Association for the Prevention of<br />

Blindness<br />

• World Hospital Congress.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

74


Advancing economic<br />

transformation<br />

Black Management Forum <strong>KwaZulu</strong>-<strong>Natal</strong> has<br />

added a new branch to its network.<br />

Mr Clifford Zungu.<br />

Black Management Forum is an advocacy organisation<br />

with a sharp focus on managerial leadership, thought<br />

leadership and socio-economic development. As the<br />

BMF <strong>KwaZulu</strong>-<strong>Natal</strong>, we strive to ensure that our members<br />

are capacitated in these areas.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> province has seen some growth and changes<br />

over the past year, namely the election of the new provincial<br />

leadership and the launch of a new branch called eKasi branch<br />

(kwaMashu and surrounding townships). There are four BMF<br />

branches in KZN: Durban, North Coast (Richards Bay), Midlands<br />

(Pietermaritzburg and surrounding areas ) and the newly<br />

launched eKasi branch.<br />

This new branch was launched in December 2017 and is<br />

filled with young, energetic members with an entrepreneurial<br />

spirit. Since the launch of the branch under the Chairmanship of<br />

Lindani Hlongwane, the branch has partnered with the Ethekwini<br />

Municipality to launch the Youth in Agriculture programme which<br />

aims at providing information and opportunities to emerging<br />

farmers within the rural and urban areas. A Youth in Agribusiness<br />

programme was also launched, followed by an informative tour<br />

to the Inanda agricultural scheme.<br />

As part of the 2017 programme these are some of the activities<br />

undertaken by the province:<br />

• Corporate governance and supplier development training<br />

• Gala dinner in November 2017 where Mr Clifford Zungu, who<br />

is a BMF stalwart, talked about coaching and mentorship and<br />

Dr Dave Schwegmann of Nedbank spoke on the topic of<br />

"Leadership Excellence”.<br />

OVERVIEW<br />

In the course of <strong>2018</strong>, we will continue<br />

to pursue the BMF goals. The<br />

year began with the opening of<br />

applications for the BMF Young<br />

Professionals Management development<br />

programme. This is a nationwide<br />

initiative geared towards<br />

young people aspiring towards<br />

being excellent leaders. Some of<br />

the modules covered in the programme<br />

are self-mastery, problemsolving<br />

and decision-making, team<br />

dynamics, and leading people.<br />

eKasi members at the Youth Agri business<br />

launch.<br />

eKasi leadership at a team-building<br />

session.<br />

CONTACT INFO<br />

Postal and physical address:<br />

Durban Chamber of Commerce,<br />

892 Umgeni Road, Durban<br />

Email: bmfkzn@bmfonline.co.za<br />

Website: www.bmfonline.co.za<br />

75 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Education and training<br />

The private sector is growing.<br />

A new partnership has been announced between Coastal TVET College and the Moses Kotane Institute.<br />

The unbundling from the successful Curro group of a separate<br />

tertiary entity which listed on the JSE as Stadio Holdings is a<br />

good indicator of the growth of the private sector in education.<br />

Stadio currently has three institutions: Southern <strong>Business</strong> School,<br />

AFDA (the School for the Creative Economy) and the Embury Institute<br />

for Higher Education which has recently opened two new campuses,<br />

one in Pretoria and one in Musgrave, Durban. AFDA offers qualifications<br />

in film, radio and live performances. Its campus in north Durban hosts<br />

more than 200 students.<br />

There is a strong trend towards the opening of private or independent<br />

schools, and not necessarily in the very expensive bracket. Curro believes<br />

it will be running 200 schools in South Africa by 2020, double its current<br />

number. There are six Curro schools in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Advtech, the other big private company, already has 27 tertiary campuses<br />

nationally, in addition to its 78 schools operating under a variety of<br />

labels. Advtech operates 10 educational sites in <strong>KwaZulu</strong>-<strong>Natal</strong>, including<br />

schools such as Crawford and Trinity House, a chefs' school (Capsicum),<br />

three Varsity Colleges and the Design School for Southern Africa.<br />

There are two universities and two universities of technology in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, and the national distance university, the University of<br />

South Africa (Unisa), has a presence in five locations. USB Executive<br />

Development offers business courses for executives.<br />

UKZN has close to 40 000 students studying on five campuses in<br />

two cities. Greater Durban hosts Howard College, Berea (environment,<br />

engineering, law, humanities) and the Nelson Mandela School of<br />

SECTOR INSIGHT<br />

• Stadio Holdings is a new<br />

post-school JSE listing.<br />

• <strong>KwaZulu</strong>-<strong>Natal</strong> has 30%<br />

of South Africa’s schoolchildren.<br />

Medicine at Congella. The<br />

UKZN administration and the<br />

Graduate School of <strong>Business</strong> are<br />

based at Westville (also science,<br />

engineering, health) whereas the<br />

Edgewood, Pinetown, campus<br />

focusses on education.<br />

The Pietermaritzburg campus<br />

offers a broad academic programme<br />

but its specialities are<br />

fine art, theology and agriculture.<br />

UKZN also hosts the National<br />

Research Foundation.<br />

The Durban University of<br />

Technology (DUT) has six faculties<br />

operating in seven campuses in<br />

Durban and in the Midlands. DUT<br />

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76


OVERVIEW<br />

is well known for its outstanding graphic-design school and offers one<br />

of only two chiropractic programmes in South Africa.<br />

The University of Zululand offers diploma and degree courses on<br />

two campuses at Empangeni and Richards Bay.<br />

Education faces big challenges in South Africa. <strong>KwaZulu</strong>-<strong>Natal</strong>, with a<br />

population of more than 10-million, more than half of whom live in rural<br />

areas which suffered decades of neglect, has made significant strides<br />

in providing access to education. With 30% of South Africa's pupils in<br />

its schools, the province's results have a big bearing on how the nation<br />

fares in annual examinations.<br />

There is now near universal access to primary and secondary schooling<br />

and a new drive to enrol pre-school children in Grade R has achieved<br />

a 70% success rate. The province has 1 689 early childhood development<br />

centres.<br />

The provincial government of <strong>KwaZulu</strong>-<strong>Natal</strong> bursary programme<br />

paid out R1.5-billion in the three years to 2016 and more than 5 000<br />

graduate interns obtained jobs at provincial government departments<br />

at a cost to government of more than R100-million.<br />

For the 2016 academic year, the University of <strong>KwaZulu</strong>-<strong>Natal</strong> (UKZN)<br />

received more than 84 000 applications for the 8 770 spaces available<br />

in its first-year undergraduate programmes.<br />

Training<br />

Technical and Vocational Education and Training (TVET) Colleges are<br />

tasked with bridging the skills gap. TVET colleges are concentrating on 13<br />

trade areas, including bricklayers, millwrights, boilermakers and riggers.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has nine such colleges with a total enrolment of about<br />

80 000. R16.5-billion has been allocated by national government to skills<br />

development and infrastructure over the medium term.<br />

A range of other interventions have been launched including:<br />

• six of South Africa's biggest construction companies have established<br />

a R1.25-billion skills fund<br />

ONLINE RESOURCES<br />

Council of Higher Education: www.che.ac.za<br />

Independent Schools Association of Southern Africa:<br />

www.isasa.org<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Education:<br />

www.kzneducation.gov.za<br />

National Department of Basic Education: www.education.gov.za<br />

National Department of Higher Education and Training:<br />

www.dhet.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

• the National Department of<br />

Higher Education and Training<br />

(DHET) wants the country to<br />

produce 30 000 artisans per<br />

year by 20126 (the current figure<br />

is about 13 000)<br />

• Sector Education and Training<br />

Authorities (SETAs) collect dues<br />

from companies by industry<br />

for training<br />

• the National Skills Authority<br />

(NSA) works with SETAs in<br />

carrying out the National<br />

Skills Development Strategy<br />

(NSDS). The Human Resource<br />

Development Council of South<br />

Africa (HRDCSA) is an overarching<br />

body working on skills<br />

development and training.<br />

National and provincial government<br />

are investing heavily in<br />

training. Various provincial government<br />

departments awarded<br />

about R316-million in support and<br />

bursaries for more then 5 000 students<br />

across the province in 2016.<br />

Coastal KZN TVET College<br />

gives students practical experience<br />

through facilities such as<br />

the Nongalo Industrial Park, where<br />

school furniture is repaired, and<br />

burglar bars and computer tables<br />

are made. The college has several<br />

sites on the South Coast and caters<br />

for 15 400 students.<br />

Majuba TVET College has a focus<br />

on engineering as the coal and<br />

steel industries are prominent in<br />

Newcastle. Some of its engineering<br />

students have done apprenticeships<br />

on Sibanye gold mines<br />

in Gauteng. The Mnambithi TVFET<br />

College is located in the Battlefields<br />

Route tourism area and offers<br />

National Diploma courses in tourism,<br />

among other qualifications.<br />

77 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Banking and financial services<br />

A local agency aims to become a bank.<br />

South Africa’s banking and financial services sector is experiencing<br />

a surge of innovation with several new banking<br />

licences expected to be granted before the end of <strong>2018</strong>.<br />

One of these is based in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Tyme, which stands for Take Your Money Everywhere, was granted a<br />

licence in 2017. The name refers to the bank’s digital origins and its plans<br />

for the future which do not involve a branch network. Commonweath<br />

Bank of Australia bought a controlling share of Tyme when it was a loans<br />

company and African Rainbow Capital is the venture’s BEE partner. The<br />

banking licence is the first to be issued since Capitec was granted a<br />

licence by the South African Reserve Bank in <strong>19</strong>99.<br />

Capitec has since gone on to become a major player on the South<br />

African retail banking scene. It now merits inclusion in a new “Big Five”,<br />

with Standard Bank, Absa, FNB and Nedbank.<br />

Merchant banking and investment banking are the most competitive<br />

sectors with companies such as BoE Private Clients, Rand Merchant<br />

Bank and Investec prominent.<br />

The other prospective new entities are state-related enterprises:<br />

Ithala, Postbank and a Human Settlements Development Bank. The<br />

Ithala Development Finance Corporation has functioned for many<br />

years in the province as the provider of funds for small enterprises,<br />

SECTOR INSIGHT<br />

• New banking licences are<br />

being approved.<br />

• Standard Bank is financing<br />

renewable energy<br />

projects.<br />

especially in areas where infrastructure<br />

is poor and access to<br />

traditional banking services is not<br />

good. The provincial government,<br />

which runs Ithala, wants to launch<br />

it as a bank as soon as possible.<br />

In 2016 Postbank (part of the<br />

South African Post Office, SAPO)<br />

received a first-level licence. Once<br />

a board of directors has been appointed<br />

and a company formed,<br />

the Reserve Bank is likely to grant<br />

the full licence. The current<br />

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78


OVERVIEW<br />

Postbank focusses on taking deposits and savings accounts. Postbank<br />

has secured a R3.7-billion loan to enable it to open its own loan book.<br />

Three state entities are merging to create the new Human<br />

Settlements Development Bank: the National Housing Finance<br />

Corporation, the Housing Loan Fund and the National Urban<br />

Reconstruction and Housing Agency. The focus will be on financing<br />

housing for poorer households and for large state-funded housing<br />

projects. Part of the drive is to integrate cities better and to combat the<br />

legacy of the spatial divide that apartheid left behind. Private-sector<br />

investment will be sought.<br />

An entirely new economic sector has opened up in South Africa<br />

within the last decade – renewable energy. Financing for this investment<br />

push has come from South Africa’s sophisticated banking sector.<br />

The Power and Infrastructure division of Standard Bank, one of Africa’s<br />

biggest companies, was involved in about 40% of the projects approved<br />

within the first four rounds of bidding.<br />

In <strong>KwaZulu</strong>-<strong>Natal</strong>, banks have been vital in getting big infrastructure<br />

projects underway, a trend that is set to continue for some time<br />

to come, with provincial and national government committed to a<br />

continuing infrastructure upgrades.<br />

The European Investment Bank extended a €50m long-term loan<br />

through Rand Merchant Bank to fund the massive water systems<br />

upgrade being undertaken by the eThekwini Municipality. The investment<br />

programme encompasses two new aqueducts and the<br />

replacement of 1 600km of old asbestos water mains.<br />

RMB was also involved in several Tongaat Hulett and Richards Bay<br />

Coal Terminal projects, two major players in the provincial economy.<br />

Nedbank Capital supported Seacom’s R240-million undersea-cable<br />

project, and has signed a three-year funding agreement with healthcare<br />

group Netcare to the value of R1-billion.<br />

Finscope's 2014 survey of South African banking and financial surveys<br />

shows that between 2004 and 2014 a remarkable eight-million people<br />

ONLINE RESOURCES<br />

Auditor-General South Africa: www.agsa.co.za<br />

Association for Savings and Investment South Africa:<br />

www.asisa.org.za<br />

Chartered Institute of Government Finance, Audit and Risk<br />

Officers: www.cigfaro.co.za<br />

Financial Services Board: www.fsb.co.za<br />

Insurance Institute of South Africa: www.iisa.co.za<br />

Postbank: www.postbank.co.za<br />

South African Institute for Chartered Accountants:<br />

www.saica.co.za<br />

South African Reserve Bank: www.resbank.co.za<br />

were connected to the financial<br />

system. Overall, the financially<br />

included reached 31.4-million<br />

(up from 17.7-million in 2004). In<br />

a category called formally served<br />

which includes services other<br />

than formal banks with branch<br />

networks, the percentage of<br />

South Africans grew from 50%<br />

to 80%; in the banked category<br />

(more traditional but including<br />

new devices), the percentage<br />

grew from 46% to 75%.<br />

This is partly because South<br />

Africa's formal banking sector has<br />

such excellent infrastructure.<br />

Financial services group Old<br />

Mutual (a 54% stakeholder in<br />

Nedbank) is in the process of creating<br />

four stand-alone businesses<br />

out of the Old Mutual Group. This<br />

will allow the UK-based wealth<br />

management business and the<br />

New York-based asset managers<br />

to be free of linkages to the<br />

rand, while the South African<br />

businesses, Nedbank and Old<br />

Mutual Emerging Markets, can<br />

focus on their specialities.<br />

The Chartered Institute of<br />

Government Finance, Audit and<br />

Risk Officers (Cigfaro) advises<br />

institutions, trains it members<br />

in public finance and promotes<br />

the interests of professionals in<br />

the public sector. It also develops<br />

and assesses qualifications and<br />

advises tertiary institutions on the<br />

requirements for courses.<br />

In December 2017, Cigfaro ran<br />

budgeting training for municipal<br />

accounting officers who need<br />

to comply with all the requirements<br />

of the Municipal Finance<br />

Management Act. In March <strong>2018</strong>,<br />

a national Public Sector Audit and<br />

Risk Indaba was held.<br />

79 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Development finance and<br />

SMME support<br />

Agri-processing is lucrative for entrepreneurs.<br />

Toyota South Africa is funding the newly created Toyota<br />

Empowerment Trust (TET) to the tune of R42-million. Beginning<br />

in <strong>2018</strong>, the trust will at first train specialised automation technicians<br />

with the long-term intention of helping qualified technicians<br />

to start their own maintenance firms.<br />

In 2016/17, various government programmes, including the Expanded<br />

Public Works Programme (EPWP), created more than 41 000 full-time<br />

equivalent jobs and 166 000 work opportunities. The provincial government<br />

intends increasing this by 10% by 2020.<br />

In 2017/18, the Department of Economic Development, Tourism and<br />

Environmental Affairs (DEDTEA) allocated R57-million to helping emerging<br />

farmers get their products taken up in the food value chain. The<br />

programme is called Radical Agrarian Socio-Economic Transformation<br />

(RASET). A partnership with Spar aims to train rural shopkeepers to<br />

handle social grants. Other partnerships with TVET colleges (for business<br />

management training) and the Small Enterprise Development Agency<br />

(Seda), to provide mentorships, are planned.<br />

Operation Vula is a provincial government initiative to ensure that<br />

co-operatives and small businesses get a leg-up into the formal economy<br />

through state-led infrastructure programmes that assist them, and<br />

through procurement policies that favour them.<br />

<strong>Business</strong> Partners offers financial and non-financial help such as mentoring<br />

and consulting. The Property Management Services Division helps<br />

entrepreneurs acquire or manage property. Thara Singh (pictured above)<br />

is the managing director of HJ Shenton Valve Services in Pinetown,<br />

SECTOR INSIGHT<br />

The Toyota Empowerment<br />

Trust (TET) has been launched.<br />

• The KZN Provincial<br />

Government is supporting<br />

small-scale farmers.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>. When she had the<br />

opportunity to buy the business<br />

for which she had been working<br />

for many years, <strong>Business</strong> Partners<br />

assisted with a property purchase.<br />

The competitive valve engineering<br />

and manufacturing industry<br />

has traditionally been a maledominated<br />

sector.<br />

The Coastal KZN TVET College<br />

has been training members of<br />

co-operatives and people working<br />

in small, medium and microenterprises<br />

(SMMEs) in the skills<br />

that will help them do well in<br />

business. Training young people<br />

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80


OVERVIEW<br />

is an important part of the plan to boost SMMEs. A provincial Youth<br />

Economic Empowerment plan allocates R94-million over three years<br />

to training 3 425 young people in technical skills such as bricklaying,<br />

working with concrete, diesel mechanics, boiler making,<br />

fitter and turning and plumbing. Trainees are given placements<br />

after the training is complete.<br />

The Small Enterprise Development Agency is active in supporting<br />

entrepreneurs. Seda gives non-financial support through<br />

training, assistance with filling in forms, marketing and creating<br />

business plans.<br />

In <strong>KwaZulu</strong>-<strong>Natal</strong>, Seda runs 12 incubators which either help new<br />

businesses get started or with the rehabilitation of existing enterprises.<br />

Three models are used: Technology Demonstration Centres<br />

(demonstration and training); Technology Incubators (where the<br />

focus is rehabilitation); Hybrid Centres, which combine elements of<br />

the other two models. The <strong>KwaZulu</strong>-<strong>Natal</strong> incubators include ICT<br />

and construction (three centres each), furniture and hi-tech (two<br />

each), chemicals, and essential oils.<br />

The provincial government controls two important development<br />

funding institutions, both of which report to the DEDTEA:<br />

• Ithala Development Finance Corporation<br />

• <strong>KwaZulu</strong>-<strong>Natal</strong> Growth Fund.<br />

Ithala is in the process of applying for a full banking licence. In<br />

2015/16 Ithala financed 336 businesses and co-operatives, which<br />

led to an estimated 2 618 jobs being created. The agricultural sector<br />

was a strong focus area. Ithala's commercial and industrial property<br />

portfolio of over one-million square metres of lettable space makes<br />

it one of the biggest operators in the province.<br />

To support township and rural communities, district warehousing<br />

facilities are being built using municipal and Ithala properties. This<br />

will go a long way to assisting farmers and traders to buy in bulk and<br />

consequently get discounts on their purchases. The Small <strong>Business</strong><br />

Growth Enterprise (SBGE) will run a pilot project, which will also<br />

contain a bulk-buying component, further assisting small enterprises.<br />

ONLINE RESOURCES<br />

<strong>Business</strong> Partners: www.businesspartners.co.za<br />

Industrial Development Corporation: www.idc.co.za<br />

Ithala Development Finance Corporation: www.ithala.co.za<br />

KZN Growth Fund: www.kzngrowthfund.co.za<br />

National Department of Small <strong>Business</strong> Development:<br />

www.dsbd.gov.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

Small Enterprise Finance Agency: www.sefa.org.za<br />

Another initiative aims to get<br />

small traders organised through<br />

the establishment of a provincial<br />

small traders' association.<br />

The <strong>KwaZulu</strong>-<strong>Natal</strong> Growth<br />

Fund Trust operates as a Debt<br />

Fund and an Equity Fund with a<br />

total of R1.1-billion worth assets<br />

under management.<br />

The IDC provides finance<br />

across a range of sectors from<br />

agriculture to tourism. It has<br />

holdings in several companies<br />

with a presence in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong>: 42.6% in Hans Merensky<br />

(Pty) Ltd, a plantation and timber<br />

mill operator; 100% in Prilla<br />

2000, a cotton-milling operation;<br />

and 85% in Foskor, which<br />

has a phosphoric acid plant in<br />

Richards Bay. The IDC also funds<br />

local development agencies<br />

such as the Ugu South Coast<br />

Development Agency.<br />

All of the major banks have<br />

SMME offerings. Standard Bank’s<br />

Community Investment Fund<br />

(CIF) initiative extends loans to<br />

informal businesses. The CIF has<br />

distributed more than R7-million<br />

to more than 630 businesses<br />

through its six funds in three<br />

provinces.<br />

Nedbank has an enterprisedevelopment<br />

product that supports<br />

businesses with a turnover<br />

up to R35-million with at least<br />

25% black ownership.<br />

The Masisizane Fund makes<br />

loan financing available in sectors<br />

such as agriculture and<br />

agri-processing), commercial,<br />

supply chain and manufacturing.<br />

It also offers training and<br />

technical support and funding<br />

to help businesses to comply<br />

with legislation.<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

82


LISTING<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Provincial<br />

Government<br />

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>’s provincial government departments. All addresses are located<br />

in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kwazulunatal.gov.za.<br />

Office of the Premier<br />

Premier: Thembinkosi Willies Mchunu<br />

5th Floor, Telkom Building, 300 Langalibalele Street<br />

Tel: +27 33 341 3300<br />

Fax: +27 33 341 3442<br />

Website: www.kwazulunatal.gov.za<br />

Agriculture and Rural Development<br />

MEC: Thembu Mthembu<br />

Cedara College, Cedara Road<br />

Tel: +27 33 343 8240<br />

Fax: +27 33 343 8255<br />

Website: www.kzndard.gov.za<br />

Arts and Culture<br />

MEC: Bongiwe Sithole-Moloi<br />

222 Jabu Ndlovu Street<br />

Tel: +27 33 264 3400<br />

Fax: +27 33 394 2237<br />

Website: www.kzndac.gov.za<br />

Community Safety and Liaison<br />

MEC: Thomas Mxolisi Kaunda<br />

179 Jabu Ndlovu Street<br />

Tel: + 27 33 341 9300<br />

Fax: + 27 33 342 6345<br />

Website: www.kzncomsafety.gov.za<br />

Cooperative Governance and Traditional<br />

Affairs<br />

MEC: Nomsa Dube-Ncube<br />

330 Langalibalele Street<br />

Tel: +27 33 264 2500<br />

Fax: +27 33 264 6672<br />

Website: www.kzncogta.gov.za<br />

Economic Development, Tourism and<br />

Land Affairs<br />

MEC: Sihle Zikalala<br />

270 Jabu Ndlovu Street<br />

Tel: +27 33 264 2500 | Fax: +27 331 310 5416<br />

Website: www.kzndedt.gov.za<br />

Education<br />

MEC: Mthandeni Dlungwane<br />

Anton Lembede Building, 247 Burger Street<br />

Tel: +27 33 392 1004 | Fax: +27 33 392 1203<br />

Website: www.kzneducation.gov.za<br />

Health<br />

MEC: Dr Sibongiseni Maxwell Dhlomo<br />

1st Floor, 330 Langalibalele Street<br />

Tel: +27 33 395 2111<br />

Website: www.kznhealth.gov.za<br />

Human Settlements and Public Works<br />

MEC: Ravi Pillay<br />

Tolaram House, 2 Aliwal Street, Durban 4000<br />

Tel: +27 31 336 5300 | Fax: +27 31 336 5114<br />

Website: www.kznworks.gov.za<br />

Provincial Treasury<br />

MEC for Finance: Belinda Francis Scott<br />

Treasury House, 145 Chief Albert Luthuli Street,<br />

Tel: +27 33 846 6800 | Fax: +27 33 846 6801<br />

Website: www.kzntreasury.gov.za<br />

Sport and Recreation<br />

MEC: Bongiwe Sithole-Mooi<br />

135 Pietermaritz Street<br />

Tel: +27 33 897 9400<br />

Website: www.kzn.dsr.gov.za<br />

83<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


LISTING<br />

Social Development<br />

MEC: Weziwe Gcotyelwa Thusi<br />

208 Hoosen Haffejee Street<br />

Tel: +27 33 341 9600<br />

Fax: +27 33 341 9616<br />

Website: www.kzndsd.gov.za<br />

Transport<br />

MEC: Thomas Mxolisi Kaunda<br />

172 Burger Street<br />

Tel: + 27 33 355 8600<br />

Fax: + 27 33 355 8092<br />

Web: www.kzntransport.gov.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Local Government<br />

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>'s municipalities.<br />

ETHEKWINI METROPOLITAN MUNICIPALITY<br />

263 Dr Pixley ka Seme Street, Durban 4001<br />

Tel: +27 31 311 1111 | Fax: +27 31 311 2170<br />

Website: www.durban.gov.za<br />

AMAJUBA DISTRICT MUNICIPALITY<br />

Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township,<br />

Newcastle 2940<br />

Tel: +27 34 329 7200 | Fax: +27 34 314 3785<br />

Website: www.amajuba.gov.za<br />

Dannhauser Municipality<br />

Tel: +27 34 621 2666 | Fax: +27 34 621 3114<br />

Website: www.dannhauser.gov.za<br />

eMadlangeni (Utrecht) Municipality<br />

Tel: +27 34 331 3041 | Fax: +27 34 331 4312<br />

Website: www.emadlangeni.gov.za<br />

Newcastle Municipality<br />

Tel: +27 34 328 7600 | Fax: +27 34 312 1570<br />

Website: www.newcastle.gov.za<br />

ILEMBE DISTRICT MUNICIPALITY<br />

59/61 Mahatma Gandhi St, KwaDukuza 4450<br />

Tel: +27 32 437 9300 | Fax: +27 32 437 9587<br />

Website: www.ilembe.gov.za<br />

KwaDukuza Municipality<br />

Tel: +27 32 437 5000<br />

Fax: +27 32 437 5098<br />

Website: www.kwadukuza.gov.za<br />

Mandeni Municipality<br />

Tel: +27 32 456 8200<br />

Fax: +27 32 456 2504<br />

Website: www.mandeni.gov.za<br />

Maphumulo Municipality<br />

Tel: +27 32 481 4500<br />

Fax: +27 32 481 2053<br />

Website: www.maphumuloonline.gov.za<br />

Ndwedwe Municipality<br />

Tel: +27 32 532 5000<br />

Fax: +27 32 532 5031/2<br />

Website: www.ndwedwe.gov.za<br />

HARRY GWALA DISTRICT MUNICIPALITY<br />

40 Main Street, Ixopo 3276<br />

Tel: +27 39 834 8700<br />

Fax: +27 39 834 1701<br />

Website: www.harrygwaladm.gov.za<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

84


LISTING<br />

Dr Dlamini Zuma Municipality<br />

Tel: + 27 39 833 1038 | Fax: + 27 39 833 1179<br />

Website: www.ndz.gov.za<br />

Greater Kokstad Municipality<br />

Tel: +27 39 797 6600 | Fax: +27 39 727 5501<br />

Website: www.kokstad.gov.za<br />

uBuhlebezwe Municipality<br />

Tel: +27 39 834 7700 | Fax: +27 39 834 1168<br />

Website: www.ubuhlebezwe.gov.za<br />

uMzimkhulu Municipality<br />

Tel: +27 39 259 5000 | Fax: +27 39 259 0223<br />

Website: www.umzimkhululm.gov.za<br />

UGU DISTRICT MUNICIPALITY<br />

28 Connor Street, Port Shepstone 4240<br />

Tel: +27 39 688 5700 | Fax: +27 39 682 4820<br />

Website: www.ugu.gov.za<br />

Ray Nkonyeni Municipality<br />

Tel: +27 39 688 2000 | Fax: + 27 39 682 0327<br />

Web: www.hcm.gov.za<br />

Umdoni Municipality<br />

Tel: +27 39 978 4313 | Fax: +27 39 976 2020<br />

Website: www.umdoni.gov.za<br />

uMuziwabantu Municipality<br />

Tel: +27 39 433 1205 | Fax: +27 39 433 1208<br />

Website: www.umuziwabantu.gov.za<br />

Umzumbe Municipality<br />

Tel: +27 39 972 0005 | Fax: +27 39 972 0099<br />

Website: www.umzumbe.gov.za<br />

UMGUNGUNDLOVU DISTRICT<br />

MUNICIPALITY<br />

242 Longmarket Street, Pietermaritzburg 3201<br />

Tel: +27 33 897 6700<br />

Fax: +27 33 342 5502<br />

Website: www.umdm.gov.za<br />

Impendle Muncipality<br />

Tel: +27 33 996 6000 | Fax: +27 33 996 0852<br />

Website: www.impendle.gov.za<br />

Mkhambathini Municipality<br />

Tel: +27 31 785 9300 | Fax: +27 31 785 2121<br />

Website: www.mkhambathini.gov.za<br />

Mpofana Municipality<br />

Tel: +27 33 263 1221 | Fax: +27 33 263 1127<br />

Website: www.mpofana.gov.za<br />

Msunduzi Municipality<br />

Tel: +27 33 392 3000 | Fax: +27 33 345 2397<br />

Website: www.msunduzi.gov.za<br />

Richmond Municipality<br />

Tel: +27 33 212 2155 | Fax: +27 33 212 2102<br />

Website: www.richmond.gov.za<br />

uMngeni Municipality<br />

Tel: +27 33 239 9200<br />

Fax: +27 33 330 4183<br />

Website: www.umngeni.gov.za<br />

uMshwathi Municipality<br />

Tel: +27 33 815 2249<br />

Fax: +27 33 502 0286<br />

Website: www.umshwathi.gov.za<br />

UMKHANYAKUDE DISTRICT MUNICIPALITY<br />

Stand 13433, Kingfisher Road, Mkuze 3965<br />

Tel: +27 35 573 8600 | Fax: +27 35 573 1094<br />

Website: www.ukdm.gov.za<br />

Big 5 Hlabisa Municipality<br />

Tel: +27 35 838 8500 | Fax: +27 35 838 1015<br />

Website: www.bigfive.org.za<br />

Jozini Municipality<br />

Tel: +27 35 572 1292 | Fax: +27 35 572 1266<br />

Website: www.jozini.gov.za<br />

Mtubatuba Municipality<br />

Tel: +27 35 550 0069 | Fax: +27 35 550 0060<br />

Website: www.mtubatuba.org.za<br />

uMhlabuyalingana Municipality<br />

Tel: +27 35 592 0680 | Fax: +27 35 592 0672<br />

Website: www.umhlabuyalingana.gov.za<br />

85<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


LISTING<br />

UMZINYATHI DISTRICT MUNICIPALITY<br />

Princess Magogo Bld, 39 Victoria St, Dundee 3000<br />

Tel: +27 34 2<strong>19</strong> 1500 | Fax: +27 34 2<strong>19</strong> <strong>19</strong>40<br />

Website: www.umzinyathi.gov.za<br />

Endumeni Municipality<br />

Tel: +27 34 212 2121 | Fax: +27 34 212 3856<br />

Website: www.endumeni.gov.za<br />

Msinga Municipality<br />

Tel: +27 33 493 0761 | Fax: +27 33 493 0766<br />

Website: www.msinga.org.za<br />

Nquthu Municipality<br />

Tel: +27 34 271 6100 | Fax: +27 34 271 6111<br />

Website: www.nquthu.gov.za<br />

uMvoti Municipality<br />

Tel: +27 33 413 9100 | Fax: +27 33 417 1393<br />

Website: www.umvoti.gov.za<br />

UTHUKELA DISTRICT MUNICIPALITY<br />

33 Forbes Street, Ladysmith 3370<br />

Tel: +27 36 638 5100 / 2400 | Fax: +27 36 637 5608 / 635 5501<br />

Website: www.uthukela.gov.za<br />

Alfred Duma Municipality<br />

Tel: +27 36 637 2231 | Fax: +27 36 631 1400<br />

Website: www.alfredduma.gov.za<br />

Inkosi Langalibalele Municipality<br />

Tel: +27 36 353 0693/0681/0691 | Fax: +27 36 353 6661<br />

Website: www.umtshezi.co.za<br />

Okhahlamba Municipality<br />

Tel: +27 36 448 8000 | Fax: +27 36 448 <strong>19</strong>86<br />

Website: www.okhahlamba.org.za<br />

KING CETSHWAYO DISTRICT MUNICIPALITY<br />

Uthungulu House, Kruger Rand Rd, Richards Bay 3900<br />

Tel: +27 35 799 2500<br />

Fax: +27 35 789 1641<br />

Website: www.kingcetshwayo.gov.za<br />

Mthonjaneni Municipality<br />

Tel: +27 35 450 2082 | Fax: +27 35 450 2056<br />

Website: www.mthonjaneni.org.za<br />

Nkandla Municipality<br />

Tel: +27 35 833 2000 | Fax: +27 35 833 0920<br />

Website: www.nkandla.org.za<br />

uMfolozi Municipality<br />

Tel: +27 35 580 1421 | Fax: +27 35 580 1141<br />

Website: www.umfolozi.gov.za<br />

uMlalazi Municipality<br />

Tel: +27 35 473 3300 | Fax: +27 35 474 4733<br />

Website: www.umlalazi.gov.za<br />

ZULULAND DISTRICT MUNICIPALITY<br />

B400 Gagane Street, Ulundi 3838<br />

Tel: +27 35 874 5500<br />

Fax: +27 35 874 5589<br />

Website: www.zululand.org.za<br />

Abaqulusi Municipality<br />

Tel: +27 34 982 2133 | Fax: +27 34 980 9637<br />

Website: www.abaqulusi.gov.za<br />

eDumbe Municipality<br />

Tel: +27 34 995 1650 | Fax: +27 34 995 1<strong>19</strong>2<br />

Website: www.edumbe.gov.za<br />

Nongoma Municipality<br />

Tel: +27 35 831 7500 | Fax: +27 35 831 3152<br />

Website: www.nongoma.org.za<br />

Ulundi Municipality<br />

Tel: +27 35 874 5100 | Fax: +27 35 870 1164<br />

Website: www.ulundi.gov.za<br />

uPhongolo Municipality<br />

Tel: +27 34 413 1223<br />

Fax: +27 34 413 1706<br />

Website: www.uphongoloonline.gov.za<br />

City of uMhlathuze Municipality<br />

Tel: +27 35 907 5100 | Fax: +27 35 907 5444<br />

Website: www.umhlathuze.gov.za<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

86


INTERVIEW<br />

Msunduzi Municipality:<br />

City of Pietermaritzburg<br />

Executive Mayor of the Msunduzi Municipality, Councillor<br />

Themba Njilo, explains why investors are heading for this<br />

well-resourced city.<br />

Cllr Themba Njilo<br />

What are the goals of your municipality?<br />

We aim to be a safe, vibrant city in which to live, learn, raise a family,<br />

work, play and do business. Our goal is to have a well serviced city with<br />

the necessary infrastructure, accessibility and connectivity to attract<br />

investment and development that will result in jobs being created to<br />

reduce poverty and unemployment. Our goal is make the city safe, clean<br />

and friendly, and to strive for financial viability and good governance.<br />

Do you have specific projects under way to improve the city?<br />

One of the biggest projects is the Integrated Rapid Passenger Transport<br />

Network (IRPTN) which is going to revolutionise public transport. Other<br />

planned projects include the Youth Enterprise Park in Imbali, a Light<br />

Industrial Park, a Technology Hub and a huge project in Edendale, the<br />

Town Centre development. The project includes rezoning for business,<br />

land acquisition, road improvements and landscaping.<br />

BIOGRAPHY<br />

Councillor Themba Njilo is a<br />

reputable businessman and<br />

passionate community activist<br />

who is the founder of Themba<br />

Njilo Foundation that is involved<br />

in developing the community<br />

and assisting the underprivileged.<br />

The institution runs many<br />

drug rehabilitation programmes.<br />

He is the owner of Induduzo<br />

Funeral Homes and the founder<br />

of UHOLOGO Productions that<br />

manages many recording artists.<br />

Councillor Njilo holds a<br />

Diploma in Marketing and Sales<br />

Management.<br />

What are the economic strengths of the area?<br />

The services and government sectors remain very strong but the manufacturing<br />

sector is robust, with a number of big manufacturing enterprises,<br />

and retail and wholesale also contribute substantially to the city’s GDP.<br />

The city is home to the KZN Provincial Government, the<br />

Umgungundlovu District government, the provincial Deeds Office<br />

and the Supreme Court, all of which makes investment and development<br />

easier. Pietermaritzburg is a centre of educational excellence.<br />

How important is the municipality’s location on the N3?<br />

The N3 is the key transportation corridor connecting Gauteng with<br />

the Durban harbour. We have already seen major investments and<br />

development along the N3 including Motor City and two new hotels.<br />

Please tell us about other recent investments.<br />

The city has attracted large scale investments from the private sector<br />

and national government. Liberty Midlands Mall is now expanding<br />

and further down the N3 the Phase 1 of the Ibhubesi Industrial Park is<br />

now complete, both multi-million rand investments.<br />

87 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>


INDEX<br />

INDEX<br />

Agriculture House .....................................................................................................................................48<br />

Black Management Forum (BMF) .......................................................................................................75<br />

<strong>Business</strong> Partners .......................................................................................................................................29<br />

Durban Chamber of Commerce and Industry ...........................................................2, 23, 25, 81<br />

Invest Durban ........................................................................................................................................... IFC<br />

Indaba Lodge Richards Bay ...................................................................................................................31<br />

MetGovis Integrated Property Solutions .........................................................................................20<br />

Mondi Group South Africa ..............................................................................................................33-35<br />

Mpact .............................................................................................................................................................63<br />

Msunduzi Local Municipality .........................................................................................................36, 87<br />

Nedbank .................................................................................................................................................40-43<br />

Petroleum Agency South Africa ............................................................................................................9<br />

Richards Bay Coal Terminal ....................................................................................................................38<br />

Sappi ...............................................................................................................................................................52<br />

Supertech Group .......................................................................................................................26, 65, IBC<br />

Trade and Investment <strong>KwaZulu</strong>-<strong>Natal</strong> (TIKZN)............................................................10-<strong>19</strong>, OBC<br />

Transnet Pipelines ..............................................................................................................................57-59<br />

Toyota South Africa ...........................................................................................................................67-69<br />

Ugu South Coast Development Agency ............................................................................................7<br />

University of Zululand ...............................................................................................................................5<br />

KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong><br />

88


Supertech now offers five Approved BMW Dealerships and two BMW Approved Repair Centres<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong>. What does this mean for discerning drivers? If you want a dealership with decades<br />

of experience, a reliable network and one that’s close to home, you don’t need to travel too far.<br />

Visit Supertech in Durban, Pinetown, Newcastle as well as our new dealerships<br />

in Shelly Beach and Pietermaritzburg.<br />

Supertech Durban<br />

8 Cliff Crescent, Bellair, Durban • Tel. 031 941 3072 • www.bmw-supertech.co.za<br />

Supertech Newcastle<br />

1 Albert Wessels Drive, Newcastle • Tel. 034 940 0854 • www.bmw-supertechnewcastle.co.za<br />

Supertech Pietermaritzburg<br />

9 Armitage Road, Pietermaritzburg • Tel. 033 897 8800 • www.bmw-supertechpmb.co.za<br />

Supertech Pinetown<br />

135 Josiah Gumede Road, Durban • Tel. 031 941 3073 • www.bmw-supertechpinetown.co.za<br />

Supertech Shelly Beach<br />

55 Main Road, Shelly Beach • Tel. 039 315 0020 • www.bmw-supertechshellybeach.co.za


18<br />

16%<br />

GDP<br />

CONTRIBUTION<br />

KWAZULU-NATAL, WITH<br />

10,9 MILLION RESIDENTS,<br />

ACCOUNTED FOR 20% OF<br />

SOUTH AFRICA’S<br />

POPULATION IN 2014/15<br />

2<br />

INVEST WITH<br />

CONFIDENCE<br />

SECTORS:<br />

AGRICULTURE/<br />

BUSINESS SERVICES/<br />

MANUFACTURING/<br />

ENERGY AND WATER/<br />

MINING AND<br />

BENEFICIATION/<br />

TOURISM AND PROPERTY<br />

DEVELOPMENT<br />

Trade & Investment <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> is a South African<br />

trade and inward investment<br />

promotion agency (IPA)<br />

established to promote<br />

the province as a premier<br />

investment destination<br />

and to facilitate trade by<br />

assisting local companies to<br />

access international markets.

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