A unique business and investment guide to KwaZulu-Natal Province in South Africa. The 2019/20 edition of KwaZulu-Natal Business is the 11th 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 is a special feature on the surge in investment in new tourism projects, from casino expansions to the building of a dedicated cruise-liner terminal. Another special feature surveys other large investments in a wide variety of sectors, showing the diversity and strength of the provincial economy.
For monthly updates about the region, subscribe at https://www.globalafricanetwork.com/subscribe/ or visit our portal at https://www.globalafricanetwork.com/category/regions/kwazulu-natal/
KWAZULU-NATAL
BUSINESS
2019/20 EDITION
THE GUIDE TO BUSINESS AND INVESTMENT
IN KWAZULU-NATAL PROVINCE
JOIN US ONLINE WWW.GLOBALAFRICANETWORK.CO.ZA | WWW.KWAZULUNATALBUSINESS.CO.ZA
New team boosts
Durban’s prospects
A lifestyle of business and pleasure together,
Durban has the perfect mix for investors.
Team Durban has a new and dynamic team to
drive investment into the city. In September
2018, eThekwini Mayor Zandile Gumede inducted
the new members of Team Durban.
The team will provide strategic Foreign Direct
Investment (FDI) advice to the city leadership and the
new Invest Durban Unit on business and investment
promotion matters.
Mayor Gumede thanked the newly nominated
members of the team for agreeing to help accelerate
investment growth while looking to improve the
business environment of the city region.
The Deputy City Manager of Economic Development
and Planning Phillip Sithole will provide liaison and administrative
support to Team Durban. Sithole will also
provide progress reports to council on the functioning
and outputs of Team Durban. Members of the Team
Durban Advisory Forum from the Municipality comprise
eThekwini Mayor Zandile Gumede, who will serve as the
Chairperson of the Forum, Chairperson of the Economic
Development and Planning Committee Sipho Kaunda,
and City Manager Sipho Nzuza.
The external members are representatives of some
the biggest business in the city as well as representatives
from civil society, including youth and academia.
They are: Suben Moodley, Senior Vice President for
Corporate Affairs Toyota South Africa; Mike Deighton,
Managing Director Tongaat Hulett Developments;
Themba Ngcobo, Founder and Director Exel Petroleum;
Musa Makhunga, Managing Director of HR Matters and
President of the Durban Chamber of Commerce and
Industry; Sandile Zungu, Corporate Director Zungu
Investments Company Limited (ZICO); Steven Saad, Chief
Executive of Aspen Pharmacare; Mlungisi Ntombela,
General Manager eThekwini Disability Sport Forum;
Faisal Mkhize, KZN Provincial Managing Executive of
Absa; Zanamuhla Khanyile, Department of Correctional
Services; Samukelisiwe Nzimande, Managing Director
K2M Financial Services; Howard Arrand, Provincial Head
FNB; Manto Madlala, acting CEO Premier Soccer League;
Thulisa Ndlela Chair of Ayigobi Investments.
The non-executive members have been appointed
to serve on Team Durban for a period of three years
effective from 1 July 2018 to 30 June 2021.
Their service will be on a voluntary basis but the
municipality will cover their travel and accommodation
expenses where required and in accordance with travel
policy.
At the function to introduce the new team, Russell
Curtis, Head of Department, Invest Durban said, “Team
Durban marks the further sophistication of the city.”
He explained that the goal of Team Durban was to
improve partnerships and strengthen relationships
between different sectors in society. This forum he
said was a significant step change for Durban and in
line with global best practice.
INVEST IN DURBAN
Durban’s investment agency has a refreshed brand
name of “Invest Durban”. A partnership between the
Metro City Council and the private business sector,
Invest Durban offers a free investor advisory service
plus key promotion, facilitation, aftercare services
between all investment stakeholders.
Invest Durban was recommended by the Durban
City Council and organised private business as the
“First Stop Shop” to stimulate economic growth and
new investment in the Durban metropolis.
Main Purpose
To facilitate sustainable investment in Durban for
the benefit of all through the:
• expansion, retention and aftercare of existing
foreign corporate business
• proactive investment promotion and marketing
of Durban Metro
• proactive connection to, and marketing of the
city’s large investment projects
• attraction of prospective new foreign investors
Invest Durban works closely with the Department
of Trade and Industry including Invest SA, Trade and
Investment KZN (TIKZN), the Durban Chamber of
Commerce and Industry, the KZN Growth Coalition,
and State-Owned-Enterprises such as Dube
TradePort, the DBSA, IDC, Eskom and others. Key
partners include the largest banks, audit and advisory
firms, plus sector-based organised business bodies
working in concert to promote investment in Durban.
Physical address: Invest Durban,
eThekwini Municipality
11th Floor, 41 Margaret Mncadi Avenue
Durban 4001, South Africa
Tel: +27 31 311 4227
Email: invest@durban.gov.za
Website: www.invest.durban
EST 1856
DURBAN CHAMBER
OF COMMERCE AND
INDUSTRY NPC
LET’S PUT YOUR
BUSINESS ON THE MAP
#DurbanMustRise
WHO WE ARE AND WHAT
WE ARE ABOUT
The Durban Chamber of Commerce and Industry was established in 1856 and is
the oldest and largest metropolitan chamber in Africa. As a business-based and
member-focused organisation, we work to protect and promote the interests of
the eThekwini business community.
VISION
In Business for a Better World
To be recognised as a world-class business chamber and a united voice of
business in the eThekwini Municipal area and beyond.
MISSION
To contribute towards creating a conducive economic and business environment in
the eThekwini Municipal area and beyond, as well as providing services specifically
relevant to small and large businesses operating in the region.
AN ORGANISATION OF GROWTH
#DURBANMUSTRISE - the Durban Chamber official hashtag - signifies working
towards achieving joint goals to move local businesses forward. The Durban Chamber
represents leading multi-nationals; large corporates; small, medium and micro-sized
enterprises (SMMEs); and start-ups in promoting inclusive and sustainable economic
growth and development in eThekwini and beyond.
ADVOCATING AND
INFLUENCING POLICY
DECISIONS THAT AFFECT THE
INTERESTS OF BUSINESS
LABOUR LAW
TAXATION
BUSINESS REGULATIONS
BUSINESS RESEARCH
MARKET ANALYSIS
OFFERING BUSINESS
SUPPORT SERVICES
AND ADVICE
CERTIFICATE OF ORIGIN
ITC CHECKS
NETWORKING OPPORTUNITIES
COMPANY REGISTRATION
WORKSHOPS AND SEMINARS
BUSINESS CONSULTATION
PROVIDING BUSINESS
INFORMATION RELEVANT
TO BUSINESS
INDUSTRY SPECIFIC ECONOMIC
DATA
DURBAN CHAMBER ONLINE
NEWSLETTER
AFRICA DISPUTE RESOLUTION
(ADR)
POLICY FOCUS WEEKLY UPDATE
Chamber Square, Lion Match
Office Park, 892 Umgeni Rd
Durban, 4001
www.durbanchamber.co.za +27 31 335 1000
CONTENTS
Introduction
CONTENTS
KwaZulu-Natal Business 2019/20 Edition
Foreword8
KwaZulu-Natal’s unique guide to business and investment.
Special features
Regional overview of KwaZulu-Natal 10
The oceans economy holds great promise in KwaZulu-Natal.
Investors are showing confidence in the
KwaZulu-Natal economy 14
Private and public entities are expanding operations and creating
new opportunities.
Massive investments in tourism are paying off 18
New direct international flights, upgraded facilities and new
hotels all point to growing confidence in the tourism sector.
Economic sectors
Agriculture30
New crops are adding to the export basket.
Sugar31
KwaZulu-Natal leads in sugar production.
Forestry and paper 34
Diversification is a growing trend.
Mining42
Second smelter to be activated at Isithebe foundry.
Engineering43
Construction is booming north of Durban.
Oil and gas 44
Italian company Eni has offshore prospecting rights.
Construction and property 48
Infrastructure and multi-use developments are forging ahead.
KWAZULU-NATAL BUSINESS 2019/20
4
• We boast of producing graduates who have gone on to occupy key positions
both in public and private sectors
• We undertake research relevant to local communities
• We have the best Science Centre in Africa
2019 Graduation Period: 13 – 17 May 2019
University Chancellor: Proud Alumnus, his Honourable Deputy
Chief Justice, Judge Raymond Zondo
www.unizulu.ac.za
CONTENTS
Water49
South Africa’s first mobile desalination plant has been installed.
Manufacturing50
The Blue and Green economies hold potential for KZN
manufacturers.
Automotive 52
Mahindra bakkies are being assembled at the Dube TradePort.
ICT54
Port Shepstone has a new incubator.
Education and training 55
University research is linked to development issues.
Banking and financial services 56
New banks are changing the face of the sector.
Development finance and SMME support 57
Support is available for entrepreneurs.
Government
KwaZulu-Natal Provincial Government 59
A guide to KwaZulu-Natal’s provincial government
departments.
KwaZulu-Natal Local Government 60
A guide to KwaZulu-Natal’s metropolitan, district and local
municipalities.
References
Sector contents 28
Index64
KWAZULU-NATAL BUSINESS 2019/20
6
DURBAN ICC
INJECTS
MILLIONS INTO
THE LOCAL
ECONOMY
The Durban International Convention Centre (DURBAN
ICC) has over the past 21 years facilitated socio-economic
transformation and contributed billions of rands into South
Africa's Gross Domestic Product (GDP).
As a pioneer in the South African events sector,
the DURBAN ICC continues to excel in driving local
economic growth, having contributed over R4.7 billion
to the country's GDP last year while creating inspiring
convention, exhibition and entertainment experiences for
its guests.
The vast majority of this impact was felt in KwaZulu-Natal,
where R4.6 billion was added to our Gross Geographic
Product. The DURBAN ICC remains committed to
broadening the economic impact of the events and
tourism sector through contributing to inclusive economic
growth as well as social development. As such, over
9 000 jobs were created as a result of the DURBAN ICC's
activities over the past financial year.
In order to ensure that that the centre maintains its status
as a world-class facility, in the past year, the company
invested significantly in a number of key projects to
enhance the guest experience and provide a safe and
secure venue for our visitors.
Opened in 1997 by the first democratic President of
South Africa, Dr Nelson Mandela, the DURBAN ICC is the
country's very first international convention centre and has
played a pioneering role in attracting high-profile events
to the country.
Delegates visiting the Centre can look forward to superb
standards of culinary excellence and hospitality. As part
of the DURBAN ICC's gourmet evolution over the past 21
years in the industry, they are completely reinventing their
culinary offering in order to showcase some of Durban's
authentic African Cuisines. Furthermore a wide range of
new innovative packages have been designed to meet the
unique needs of each target market, at the best possible
rates.
The five-star graded centre has also received a number of
accolades among them being ranked in the world's Top 17
Convention Centres which is an outstanding achievement
in the global meetings industry. The Centre was the only
centre in Africa to have made the list despite several other
entries from the continent.
This accolade serves to affirm the DURBAN ICC's position
as Africa's leading convention centre - a reputation they
work hard to uphold every day.
The DURBAN ICC prides itself on being a leading
venue for meetings, business events, conferences and
exhibitions on the African continent. However, this is not
their own opinion, but rather the overwhelming feedback
received from their clients who have voted it in the top
1% of Convention Centres worldwide, as well as "Africa's
Leading Meetings and Convention Centre" no fewer than
17times!
The DURBAN ICC is one of the most flexible and versatile
venues in the world. The Centre's main convention area
of 11,600m 2 can be opened up to form one enormous
venue or subdivided using operable walls into 22 separate
convention halls of various sizes.
As a venue that takes pride in the fact that we are a worldclass
convention, exhibition and entertainment centre, our
primary goal is to enhance our guests' experience.
21
YEARS OF
CHANGING
LIVES
1997-2018
+27 (0)31 360 l 000
114 sales@icc.co.za
® www.icc.co.za
DURBAN ICC
INTERNATIONAL CONVENTION CENTRE
INKOSIALBERTLUTHULIICCCOMP'LEX
SOUTHAFRICA
9 45 Bram Fischer Road
Durban, 4001
P.O. Box 155
Durban, 4001
South Africa
CREDITS
KwaZulu-Natal
Business
A unique business and investment guide.
CREDITS
Publisher: Chris Whales
Publishing director: Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
The 2019/20 edition of KwaZulu-Natal Business is the 11th 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 is a special feature on the
surge in investment in new tourism projects, from casino expansions to
the building of a dedicated cruise-liner terminal. Another special feature
surveys other large investments in a wide variety of sectors, showing
the diversity and strength of the provincial economy.
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.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
Art director: Brent Meder
Design: Tyra Martin
Production: Lizel Olivier
Ad sales: Gavin van der Merwe,
Sam Oliver,Gabriel Venter, Jeremy
Petersen, Shiko Diala, Vanessa
Wallace, Reginald Motsoahae and
Sandile Koni.
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
KwaZulu-Natal Business is distributed internationally on
outgoing and incoming trade missions; to foreign offices
in South Africa’s main trading partners; at top national and
international events; through the offices of foreign representatives
in South Africa; as well as nationally and regionally
via chambers of commerce, tourism offices, trade and
investment agencies, provincial government departments,
municipalities, airport lounges and companies.
COPYRIGHT | KwaZulu-Natal Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to
the publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Pictures supplied by: ABC, Avon Peaking Power, Bell
Equipment, Dube TradePort, Durban ICC, EBH, iStock, JG Afrika, Tongaat
Hulett Development, Tsogo Sun, Viking Ocean Cruises/Philip Wilson.
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 1993-0127
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information contained
in KwaZulu-Natal Business is accurate and up-to-date, the publishers
make no representations as to the accuracy, quality, timeliness, or
completeness of the information. Global Africa Network will not accept
responsibility for any loss or damage suffered as a result of the use of or
any reliance placed on such information.
KWAZULU-NATALBUSINESS 2019/20
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SPECIAL FEATURE
A REGIONAL OVERVIEW OF
KWAZULU-NATAL
The oceans economy holds great promise in KwaZulu-Natal.
By John Young
Two of the most important ports in South
Africa are at the heart of KwaZulu-Natal's
central position in the nation's transport
and logistics network. As the secondbiggest
contributor (16%) to national gross
domestic product (GDP) after Gauteng and a
major manufacturer and exporter of goods, the
KwaZulu-Natal province lends itself to potential
investments in many spheres.
A new national focus on trying to develop
the country’s maritime potential is playing to
KwaZulu-Natal’s strengths.
KwaZulu-Natal province has a long coastline
that stretches from Port Edward in the south to the
Kosi Bay Nature Reserve in the north. The province's
contact with the sea has brought obvious benefits:
fishing, fine beaches enjoyed by millions of tourists,
and two great ports – the Port of Durban and Richards
Bay. These ports export vast quantities of minerals
(mostly through Richards Bay) and manufactured
goods (Durban) and serve as an important conduit
for imports of all sorts. The Richards Bay Coal Terminal
exports coal while the Port of Durban is the busiest
port in Africa.
However, planners want to increase the
economic benefits that the ocean can bring. An
Oceans Economy Review Workshop has come up
with a range of subsectors that can help grow
the provincial economy and invite foreign direct
investment:
• marine transport and manufacturing
• offshore oil and gas exploration
• aquaculture
• marine protection and ocean governance
• small harbours
• coastal and marine tourism.
Strategies to grow the Oceans Economy dovetail
with plans to boost the capacity of the ports at
Durban and Richards Bay and to explore for gas and
oil in the Indian Ocean.
Ship-building and ship repairs is an existing
industry, but it is currently not very big. If oil rigs
were to start visiting the KZN coastline on a regular
basis, this industry will grow exponentially.
The Oceans Economy is one of the focus areas
that has been chosen by national government to
be part of Operation Phakisa, a focused, goal-driven
KWAZULU-NATAL BUSINESS 2019/20
10
SPECIAL FEATURE
attempt to jump-start a specific economic sector.
Overall, Phakisa intends creating a million jobs by
2033 and injecting R177-billion into national GDP.
The decision to build a cruise-ship terminal at the
Port of Durban is a good example of the kind of decision
that dovetails with the vision for an Oceans Economy.
Another big potential growth area in KwaZulu-
Natal is energy. Several licences have been granted
for off-shore exploration and the hope exists that
something will be found – the vast gas fields off the
coast of Mozambique are close.
The King Shaka International Airport (with its own
trade port and industrial development zone called
the Dube TradePort) is another of the province's
logistics key points, which has the potential to boost
the regional economy in several sectors, particularly
agricultural export and tourism.
The province's other zone is the Richards Bay
Industrial Development Zone (RBIDZ). In recent
years, investments into the RBIDZ have included:
a titanium plant (R4.5-billion); a biomass plant (R2-
billion); a pipe manufacturing plant (R300-million);
paint manufacturing (R16-million); and logistics
services (R20-million).
In the base-metals and metal-products sectors,
giant companies such as BHP Billiton, Hulamin,
Arcelor Mittal and Assmang have a big presence in
the province. Steel, iron and aluminium account for
nearly a third of exports followed by metal products.
The third sector making a big contribution is the
automotive and automotive components sector, with
about 18%. Chemicals is the other major export driver.
Toyota and Bell Equipment play a vital role
in the automotive sector while the Engen Oil
Refinery, paper and packaging group Mondi and
dissolving pulp manufacturer Sappi are among other
strategically important entities in the provincial
economy. Sappi's export of dissolving pulp makes
it a world leader in its field.
Although the forestry and paper sector and
the sugar sector are grounded in the agricultural
sector, the leading companies' processing plants and
downstream beneficiation also make them major
components of the manufacturing sector and big
contributors to the province's export basket.
In addition, Tongaat-Hulett is a major property
company and Illovo is a continental leader in
sugar production.
Tourism
Tourism plays a vital role in the economy of the
region, with the conference and events sector
supported by excellent facilities. The jewel in the
crown is the huge Albert Luthuli International
11 KWAZULU-NATAL BUSINESS 2019/20
SPECIAL FEATURE
Convention Centre Complex which hosts the annual
Tourism Indaba.
The province's excellent climate lends itself
to every kind of outdoor pursuit and its excellent
beaches are always popular. Big sports events are
regularly hosted in KwaZulu-Natal which has become
something of a home to mass participation events
such as the Comrades Marathon and Dusi Canoe race.
The province has excellent game and nature reserves.
Isimangaliso Wetland Park is a World Heritage Site
and helps to fund 80 small businesses associated
with its business as a tourist site.
New international direct flights have been
announced by King Shaka International Airport,
including a direct flight to London with British Airways.
Geography
The mixed topography of the province allows
for varied agriculture, animal husbandry and
horticulture. The lowland area along the Indian
Ocean coastline is made up of subtropical
thickets and Afromontane Forest. High humidity
is experienced, especially in the far north and this
is a summer rainfall area. The centrally located
Midlands is on a grassland plateau among rolling
hills. Temperatures generally get colder in the far
west and northern reaches of the province.
The mountainous area in the west – the
Drakensberg – comprises solid walls of basalt and
is the source of the region’s many strongly running
rivers. Regular and heavy winter snowfalls support
tourist enterprises. The Lubombo mountains in the
north are granite formations that run in parallel.
Plans for Durban
Six years ago, the eThekwini Municipality adopted a
densification strategy which entails careful planning
along three main urban corridors which connect to
the city centre. Land-use management along these
corridors will encourage diverse investments while
at the same time introducing an Integrated Rapid
Public Transport Network (IRPTN).
An Inner City Local Area Plan (LAP) for Durban
has been developed that aims to make the inner city
of Durban “Africa’s leading, most vibrant, liveable,
walkable City Centre”.
Developed for the Strategic Planning unit of the
eThekwini Municipality by a Joint Venture called
IPPU, the LAP is based on four main principles:
• The connected city: tackling the legacy of
the disconnected city of apartheid, the plan
promotes the integration of different modes of
transport (bus, taxi, pedestrian, rail, etc).
• The walkable city: the aim is for residents to be
five minutes’ walk from public transport, shops,
schools and healthcare facilities. A good variety
of residential accommodation is key.
• Land use intensity: the plan proposes that
land use approvals be more flexible, allowing
for more variety and greater density. The plan
cites an example of art gallery at street level,
with offices above and accommodation on
top. If more people live in an area, then shops
become more viable and it is easier to provide
bulk services.
• Starting with small projects and finding ways of
championing the development of the inner city.
KWAZULU-NATAL BUSINESS 2019/20
12
SPECIAL FEATURE
The IPPU Joint Venture comprises Iliso, TPI, PMSA,
UrbanEcon including Cox Architecture, Urban
Solutions, Urban Earth, Jo Lees and Joe Kitching.
The Point Waterfront Development is a major
project that is in the process of transforming what
was an under-utilised and somewhat rundown part
of the city into a vibrant, multi-use precinct.
Some projections put the total potential investment
value of the project at R40-billion and the number of
permanent jobs to be created at 6 750. It is an ambitious
plan that links the city's beach promenade and the
harbour. It offers a property use mix of office space,
retail shops, residential dwellings and leisure options.
The 55ha site has already seen significant investment. A
cruise terminal in the harbour backing on to the Point
has been approved.
Other major projects in the inner city include:
• The Warwick Junction transport interchange
which has received road upgrades but could be
an even greater enabler of trade.
• The Centrum Government Precinct which will
formalise the relationship between buildings
such as the International Convention Centre and
a related hotel, the library, council chambers and
the redevelopment of Gugu Dlamini Park.
Regions
KwaZulu-Natal has 11 district municipalities, the
most of any province in South Africa. In economic
terms, the province offers diverse opportunities.
Southern region
This area is the province’s most populous. The city
of Durban has experienced booms in sectors such
as automotive, ICT, film and call centres. Major
investments are taking place at the Port of Durban and
there is a possibility that the old airport south of the
city becomes another port, if the money can be found
to dig it up and let the sea in. Durban's conference
facilities are well utilised, but many opportunities still
exist in chemicals and industrial chemicals, food and
beverages, infrastructure development and tourism.
Further south, plans are in place to upgrade Margate’s
airport and Port Shepstone’s beachfront.
Western region
Also known as the Midlands, this is a fertile agricultural
region, producing sugar cane, fruit, animal products,
forestry and dairy products. Pietermaritzburg is the
provincial capital and home to a major aluminium
producer along with several manufacturing concerns,
including textiles, furniture, leather goods and food.
The city has good transport links along the N3 national
highway, excellent schools and a lively arts scene. The
Midlands Meander is a popular tourist destination.
Eastern region
Although most of this area is very rural, Richards Bay is
one of the country’s industrial hotspots because of its
coal terminal and port and aluminium smelters. The
Richards Bay Industrial Development Zone (RBIDZ) is
a major economic node in itself: the 62-hectare first
phase is almost fully subscribed with the investment
value of the two phases (some having already been
secured for phase two) at R6.8-billion. Mining is an
important sector in this region. The other major urban
centre is Empangeni which has several educational
institutions. The newly completed King Shaka
International Airport is kick-starting massive new
investment in the area. The ilembe District Municipality
is particularly active in seeking out new investors.
Northern region
The economic powerhouse is Newcastle in the
north-west: coal-mining, steel processing and
manufacturing are major activities. Some old coal
mines are being reopened by new coal companies
to cater for the country's power stations’ demand for
the fuel. Game farms, trout fishing and hiking are part
of an attractive package for tourists, and Zululand is
a popular destination for cultural experiences. The
whole region is rich in Anglo-Boer War history.
13
KWAZULU-NATAL BUSINESS 2019/20
SPECIAL FEATURE
Investors are showing
confidence in KZN
Private and public entities are expanding operations and
creating new opportunities.
Harbour expansions, a new film studio, infrastructure spending
by major cities and the state and several city-sized property
developments – these are some of the big investments into
the KwaZulu-Natal economy currently underway.
The scale and variety of these investments illustrate the size and
diversity of the regional economy which ranges from mining, steel
and chemical manufacturing to automotive works, agri-processing
and clothing and textiles. Recent investments in the expanding
tourism sector are covered in a separate article.
The New Development Bank, a BRICS initiative, has approved a
loan of $200-million in support of the reconstruction of the Durban
Container Terminal berth. This will allow Transnet to expand the
capacity of the port and to cater for bigger vessels. At Richards Bay,
Transnet has committed to investment of R7.5-billion to 2023. Money
has been allocated to improving the coal rail line, expanding the
rail yard and the port itself. There will be 45 projects in all.
The Richards Bay Industrial Development Zone (RBIDZ)
is attracting investment as a node of development as it offers
attractive incentives and support for investors. Sectors being
targeted include agri-processing, ICT and telecommunications,
manufacturing (proximity to aluminium works opens possibility
for the manufacture of discs, pistons and beverage cans), logistics
and renewable energy. RBIDZ
has been named as the site for
2 000MW liquefied natural gas
(LNG) plant in terms of national
government's gas-to-power plan.
RBIDZ is also the site of a new
biomass plant.
Film-maker Anant Singh has
plans to transform the old Natal
Command site at North Beach
into eThekwini Film City. He
owns most of the land and the
municipality is in favour of the
project. Singh told City Press that
the projected cost of the project
is R7.5-billion.
Two of the province’s biggest
companies, Sappi and Mondi, are
diversified global operators and
they have both recently made
major investment commitments.
Responding to President
Cyril Ramaphosa’s appeal for
investments to drive the South
African economy in 2018, Sappi
committed to R7-billion and
Mondi to R8-billion. Sappi spent
R4.3-billion on increasing its
capacity in dissolving pulp in the
six years to 2018 and will spend
R2.7-billion on its Saiccor plant in
KwaZulu-Natal. Mondi noted that
its exports from KwaZulu-Natal
annually earned about R4-billion.
A new plant to make washing
machines has created 75 jobs at
the Durban plant of white goods
manufacturer Defy. The R121-million
KWAZULU-NATAL BUSINESS 2019/20
14
SPECIAL FEATURE
investment is part of a R1.2-billion investment programme which Arçelik
Global, the Turkish company, has been following since it bought Defy
in 2011. The company has another plant in KwaZulu-Natal in Ezakheni
(near Ladysmith) and in East London in the Eastern Cape.
In 2018 the eThekwini Metropolitan Municipality decided
to apply for a R1-billion load for capital projects. The city’s
integrated development plan will include expenditure on water
and sanitation infrastructure, roads and electrification projects.
Infrastructure throughout the province will attract more than
R200-billion to 2025 according to information supplied by the
KZN Construction Expo.
Major developments north of the city of Durban continue
to transform the economy and the landscape. The King Shaka
International Airport and the associated Dube TradePort has made
a big impact, as has the conversion by sugar giant Tongaat Hulett
of its land holdings into property developments.
Dube TradePort is a 3 000-hectare development that
encompasses the airport and is ideally situated for any logistics
business due to its proximity to Africa’s busiest cargo port (at
Durban) and 140km from the deepest natural harbour in the
southern hemisphere where the Port of Richards Bay and the
Richards Bay Industrial Development Zone are located.
Dube TradePort is a Special Economic Zone which has:
• Dube Cargo Terminal.
• Dube Tradezone: Suitable for warehousing, manufacturing,
assembling, cargo distribution, etc.
• Dube City: 12 hectares of office, retail and hospitality space.
• Dube Agrizone: intended to support growing, packaging and
distribution high-value perishables and horticultural products.
• Dube iConnect: the precinct’s dedicated IT and telecommunications
provider and the only locally-hosted cloud service in the province.
Industrial parks
The Provincial Government of KwaZulu-Natal intends establishing
one industrial park within each of the province’s 10 district
municipalities, focussing on existing strengths. These industryfocused
hubs will attract new investments and help existing
businesses through economies of scale and by improving access
to markets and supply chains.
There is one metropolitan municipality in KwaZulu-Natal.
Construction on the industrial park in the eThekwini Metropolitan
Municipality, an automobile supplier park, is expected to begin
in 2019.
In most of the other areas, land has been secured and feasibility
studies have been completed. The design of the parks and the
provision of infrastructure is
currently underway and some
tenants have been identified.
The Department of Economic
Development, Tourism and
Environmental Affairs is the
implementing agency on behalf
of the Provincial Government.
By way of example, the
iLembe District Municipality
will be the focus of investment
in renewable energy. The N2
is the main arterial running
through the district, giving
excellent access to both
Durban and Richards Bay. The
Dolphin Coast is a major node
for tourism. With the King Shaka
International Aiport (KSIA) and
the Dube TradePort lying just
south of the iLembe District in
the eThekwini Municipality, a
partnership has been created
between the two municipalities
and the provincial government
to develop a renewable energy
technology innovation hub.
Enterprise iLembe (Pty) Ltd
drives investment into the area.
At Ndwedwe 26 biodigesters
produce gas for cooking as
part of the Working for Energy
programme of the South African
National Energy Development
Institute (SANEDI).
The Small Harbours and State
Coastal Property unit of the
National Department of Public
Works wants to see coastal
properties revitalised. Initiatives
are under discussion for Port
Edward (new harbour, fish
processing, fishing and leisure),
Hibberdene (waterfront and a
Music City) and Port Shepstone
(boat building and repairs and
a new economic zone).
KWAZULU-NATAL BUSINESS 2019/20
16
Making a real impact
As Black Umbrellas, we are passionate about the socio-economic impact we make to
our clients and partners. We believe that every rand invested by our partners/donors
must yield a positive result and tangible impact. The SMEs we support continue to
make significant positive strides to the outlook of this country.
Our model is aimed at supporting emerging and existing 100% black-owned businesses through a threeyear
incubation programme so that they are able to emerge as independent, viable businesses.
KwaZulu-Natal power milestones collectively achieved by our SME clients
Turnover Net Profit Jobs Created Salaries Paid Net Asset Value
R530 435 388 R65 202 494 1704 R134 118 299 R211 091 877
The success of our programme and SMEs has been recognised by entities such as Zululand Chamber of
Commerce and Industry (ZCCI) and Business Women’s Association (BWA). Here a number of our clients
have scooped prestigious awards such as the BWA Zululand Emerging Entrepreneur of the year (2016/
2017), ZCCI Emerging Business of the year (2017), ZCCI Micro Business of the year (2017) as well as the
People’s Choice Award at Black Umbrellas’ National Enterprise Development Awards (2018).
Contact us today to become an ESD partner as a mentor, donor or advisor:
Tel: 035 901 8760 | Email: Tebogo@blackumbrellas.org | Website: www.blackumbrellas.org
Massive investments in
tourism are paying off
New direct international flights, upgraded facilities and new hotels
all point to growing confidence in the tourism sector.
Major investments are being made into
getting tourists to KwaZulu-Natal
and new hotels are being built to
accommodate the increased number
of visitors. Durban’s casino has had a major refit
and the Durban International Convention Centre
(pictured) is constantly upgrading its facilities to
cope with demand.
In terms of the vital transportation of
tourists into the province, the most significant
developments are:
• The decision to go ahead with the construction
of a dedicated cruise-liner terminal in the Port
of Durban.
• The announcement in 2018 of a new direct British
Airways (BA) flight between Heathrow Airport
in London and King Shaka International Airport
(KSIA).
• Africa’s longest suspension bridge has
dramatically reduced travel times between
tourist hotspots in northern KwaZulu-Natal
and neighbouring country Mozambique. The
Maputo-Catembe bridge forms part of a new
road from Maputo to Kosi Bay which was officially
opened in November 2018.
KwaZulu-Natal offers astonishing variety for the
visitor. Awesome natural beauty extends from the
beaches all along the coastline to the iSimangaliso
(Greater St Lucia) Wetland Park and the spectacular
mountainous scenery of the Ukhahlamba-
Drakensberg Park. The history of the Zulu kingdom
includes a number of battlefield sites outlining famous
clashes with the British Empire such as Isandlwana.
Mahatma Gandhi lived in the province and the site
of Nelson Mandela’s arrest is commemorated. Big
sporting events such as the Dusi Canoe Marathon, the
Durban July Handicap and the Comrades Marathon
attract thousands of participants and supporters
every year.
In KwaZulu-Natal, the combined contribution of
retail and tourism to GDP is 14%. Many thousands
of visitors to KwaZulu-Natal arrive by road, and
the statistics show that the Mooi River toll plaza
bringing visitors from Gauteng Province is a vital
portal.
Improving access
In 2018 Transnet National Ports Authority (TNPA)
and the KwaZulu Cruise Terminal (KCT) signed an
agreement for the construction of a cruise-ship
terminal in the Port of Durban that will be completed
by late 2020.
KCT, a joint venture between MSA Cruises SA
and Africa Armada Consortium, will spend R175-
million on the financing‚ construction‚ maintenance
and operation of a cruise terminal for a 25-year
concession period.
KWAZULU-NATAL BUSINESS 2019/20
18
SPECIAL FEATURE
The number of cruise-ship passengers attracted to
Durban grew from 42 000 in 2004/05 to 157 000 in
2010/11 and the new terminal is expected to radically
improve these numbers. The number of annual
passengers is expected to grow from the current
200 000 to more than 700 000 by 2040. South Africa
attracts 0.5% of the world’s cruise-ship market which
comprises about 15.4-million passengers annually.
Durban’s hosting of 60 ships per annum will rise to
150 or more.
The decision by BA to introduce a direct
London flight is a major boost for KwaZulu-Natal’s
main airport. Although Qatar Airways, Emirates
Airlines and Turkish Airlines provide direct flights
to their own hubs (Doha, Dubai and Istanbul), a
direct link with London will be very attractive to
tourists and to importers and exporters. KSIA is
within the Dube TradePort and cargo volumes
have been increasing steadily every year.
The opening of the ambitious Maputo-Catembe
bridge has opened up a number of possibilities
for tour operators in northern KwaZulu-Natal.
With access to Mozambique no longer involving
a tortuous process of driving through Swaziland,
the chances of tourists wanting to combine a
visit to the parks in South Africa with a visit to
Mozambique’s vibrant capital are much higher. It is
possible that the bridge itself will become a tourist
attraction. The improved roads connecting Kosi Bay
to Maputo will also mean increased trade, with the
Richards Bay Industrial Development Zone only
about 250km further south from Kosi Bay.
New and improved
Tsogo Sun has spent R1.6-billion on refurbishing its
Suncoast complex on Durban’s Golden Mile. Suncoast
Casino Hotels & Entertainment covers a huge area
and offers a wide variety of entertainment options.
The recent upgrade included the addition
of seven new restaurants, new retail outlets, a
new theatre and an event venue, and increased
space at the casino. More underground parking
was created and the whole complex was given
a fresh look.
MEETINGS AND EVENTS
Facts about the Inkosi Albert Luthuli ICC
Complex
• The ICC can seat 5 000 delegates
• Raked seating for 1 800 can be lifted to
the ceiling to clear floor space
• 10 000 delegates can be accommodated
when combined with the Durban
Exhibition Centre (DEC)
• The ICC offers 70 000 square metres of
column-free space
• 23 meeting rooms and undercover
parking for 1 200 cars
• Three courtyards, one central kitchen
and 12 satellite kitchens
• Albert Luthuli was president of the
African National Congress and received
the Nobel Peace Prize in 1960
Tsogo Sun has four other hotels on the Golden Mile
and more than 100 hotels and 14 casino and entertainment
destinations in South Africa, Africa and the
Seychelles. Tsogo Sun runs 14 hotels in KwaZulu-
Natal, five of which are Garden Courts. Six hotels are
in Durban with a further four in nearby Umhlanga,
where one of the group’s most luxurious hotels, the
89-room Beverly Hills, is located.
A new “mega-hotel” has been created by Tsogo
Sun, with the amalgamation of the Southern Sun
North Beach and Southern Sun Elangeni hotels.
A key reason for Durban’s high ranking in the
meetings, incentives, conferencing and exhibitions
sector (MICE) is the Durban International
Convention Centre (Durban ICC). Located within
the Albert Inkosi ICC Complex in downtown
Durban, the venue will spend R27.3-million in 2019
on capital projects.
The Durban ICC is one of the most flexible
and versatile venues in the world. The main
convention area of 11 600m² can be opened up
to form one large venue or subdivided into 22
separate convention halls of various sizes. The
refurbishment of seats in Hall 1, which can seat up
to 1 680 delegates, will cost R6-million.
19
KWAZULU-NATAL BUSINESS 2019/20
SPECIAL FEATURE
the hotel and the shopping mall sections of the
planned complex are going ahead.
A 207-room Hilton Garden Inn will be operating
at Umhlanga Arch by 2020. Hilton Durban
acquired a new owner in 2018 when Bin Otaiba
Hotels bought it, together with four hotels in
Johannesburg, Port Elizabeth and Cape Town.
Hotels
More than 20 000 delegates will use the Durban
ICC in 2019. In the 2017/18 financial year, the venue
hosted 450 events, contributed R4.7-billion to
South Africa’s Gross Domestic Product and created
9 474 jobs.
Durban's hosting of the Tourism Indaba
further supports the idea that the province is a
major conference destination. More than 7 000
delegates are annually attracted to exhibit South
Africa's assets to international tour operators. The
city has secured the Tourism Indaba until 2022.
The range of topics covered by recent
conferences held in KwaZulu-Natal is wide and
includes the World News Media Congress, the
Pan-African Health Tourism Congress, the National
Association of Automotive Components and
Allied Manufactures (NAACAM) Show and the
Durban Maritime Summit.
Premier Hotels & Resorts will spend about
R420-million on two new hotels at Umhlanga.
Currently under construction, the hotel complex
is located alongside the Gateway Theatre of
Shopping next to Umhlanga Ridge. The four-star
Premier Hotel will have 130 rooms while the threestar
Splendid Inn by Premier will be equipped with
64 bedrooms. The group has hotels and resorts
in six provinces.
A new Radisson Blu Hotel will open in Umhlanga
Rocks as part of the ambitious R3-billion Oceans
Umhlanga development. Some construction work
has been halted because of problems experienced
by construction companies, but it seems that
Research by Tourism KwaZulu-Natal shows that the
coastal province consistently has the best hotel
occupancies in the country.
Protea Hotels has 18 properties in the province,
with seven in Durban including the Protea Hotel
Edward. The upgrading of the Point area between
the beach and the Port of Durban has resulted
in major investments. The Docklands Hotel at
the Durban Waterfront is a four-star Signature
development that cost about R100-million to
develop.
The Royal Hotel in the heart of Durban is
one of eight Three Cities Group hotels in the
province. The Golden Horse Casino Hotel is a
Three Cities property, and the Group administers
the International Hotel School in Westville that
is also home to the Christine Martin School of
Food and Wine.
IFA Hotels & Resorts runs several luxury
properties including the Zimbali Coastal Resort
and Zimbali Lakes Resort. Signature Life Hotels
has 13 properties and Gooderson Leisure has a
varied portfolio.
Sibaya Casino and Entertainment Kingdom,
a Sun International property, is north of Durban
between Umdloti and Umhlanga. The casinos
in Newcastle (Century City), Empangeni (Tusk
Umfolozi Casino) and Pietermaritzburg (Golden
Horse Casino) are run by Century Casinos
Newcastle, Peermont Global and Akani Msunduzi
Management respectively.
Airbnb is a fast-growing option in South Africa.
The Airbnb visitors to South Africa in 2016 engaged
in R2.4-billion worth of economic activity. Durban
had the largest increase in Airbnb bookings from
the previous year.
KWAZULU-NATAL BUSINESS 2019/20
20
SPECIAL FEATURE
Regions
Several of KwaZulu-Natal’s regions are investing in
tourism projects.
Harry Gwala
Dramatic mountain landscapes and a plentiful
supply of water help make this district perfectly
suited to tourism. The main towns are Kokstad
and Ixopo. The Drakensberg Mountains define
the district’s western boundary. The Harry Gwala
Development Agency believes that niche sectors
such as avi-tourism (birding), rail tourism and mission
tourism hold great potential.
Umkhanyakude
The Isimangaliso Wetland Park extends 220km
along the northern reaches of the province, to the
border with Mozambique, and offers unrivalled
birding, game viewing, deep-sea fishing, turtle
tours, kayaking and whale-watching. It is a World
Heritage Site and, together with the HluhluweuMfolozi
Game Reserve, forms the core of the
tourism and conservation offering in the province.
With agriculture the other dominant economic
activity in the area, any new investment would have
to be ecologically sensitive. A new entertainment
complex at Hlungweni Peninsula within the Tembe
Tribal Authority, 30km north of Sodwana Bay, is
being contemplated.
Uthukela
Larger towns include Estcourt, Colenso and
Ladysmith. Predominantly rural, the district
encompasses two of the greatest natural assets
in the province in the Thukela River and a part of
ANNUAL SPORTING EVENTS AND EXHIBITIONS
January. Dusi Canoe Marathon,
Pietermaritzburg to Durban.
February. Midmar Mile, Midmar Dam.
April. Durban International Boat and
Leisure Show, Durban.
May. Tourism Indaba, Durban. Comrades
Marathon, Pietermaritzburg to Durban.
June. Mr Price Pro international surfing
contest, Ballito.
July. The Durban July, Greyville.
August. Durban International Film
Festival, Durban.
September. Dolphin Coast Ultra, North
Coast. KZN Music Imbizo, Durban.
October. Zululand Expo. Richards Bay.
Berg and Bush bicycle race, Drakensberg.
the Drakensberg mountain range, which attracts
hundreds of thousands of visitors. A cableway
system in the Drakensberg (near Bergville) with
entertainment and accommodation facilities has
been mooted.
Zululand
Zululand is a popular destination for cultural
experiences and the area is rich in Zulu history
and Anglo-Boer War history. Vryheid and Ulundi
are the main towns. A possible development of a
heritage site at Nongoma has been suggested to
serve as a catalyst for other sites to offer traditional
Zulu experiences, including arts and crafts, agriprocessing,
traditional medicines and cosmetics
and leveraging the profusion of aloe plants in the
district.
21
KWAZULU-NATAL BUSINESS 2019/20
INTERVIEW
Enterprise iLembe
Nathi Nkomzwayo, CEO of Enterprise iLembe, reveals how this
east coast region is packed with opportunity, from agriculture
and manufacturing to tourism, commerce and services.
Nathi Nkomzwayo,
Chief Executive Officer
BIOGRAPHY
Nathi has more than 18 years’
experience in the manufacturing
industry, 10 of those at senior
management and executive
level. With a degree in
engineering and an MBA, his
career highlights include the
successful implementation of
a R400-million project for a
large smelter and the design
and execution of a range of
programmes from skills transfer
to asset care strategies. As a
board and executive committee
member, Nathi has experience
in company policy formulation,
corporate governance and
relationship management.
What is Enterprise iLembe?
We are the Economic Development Agency of the iLembe District
Municipality and our mandate is to drive economic development as
well as to promote trade and investment in the region. We do this
through the development of the economic development strategy
that guides economic activities and programmes. The philosophy that
drives Enterprise iLembe is built on promoting a participatory process
where local people work together to stimulate local commercial activity,
resulting in a resilient and sustainable economy.
With our partners such as Trade and Investment KZN and the iLembe
Chamber we aim to position the district as the investment destination.
Programmes include biannual business confidence reports and an
overall business outlook.
Where do you operate?
The iLembe District is made up four local municipalities, KwaDukuza,
Maphumulo, Mandeni and Ndwedwe. They are different in terms
of their economic outlook and their developmental needs with the
coastline on one end and agricultural space on the other. Our strategy
needs to zoom in on the development needs of the individual local
municipal areas while ensuring broader alignment and integration. We
need to be conscious of the unequal business environment.
How does Enterprise iLembe identify and develop projects?
In most cases we are guided by our strategic geographic location and
economic sectors that are most viable in our region. These sectors are
Agriculture, Manufacturing, Tourism, Oceans economy, Renewable
energy as well as Commerce and Services. Being strategically located
between the two major South African harbours in Durban and Richards
Bay, iLembe District is the highest-priority development corridor in
the province. The close proximity to the King Shaka International
Airport and the Dube TradePort also connects the district directly to
international markets.
We have established a Business Incubator Facility. The objective
is to provide assistance for SMMEs. Working in the partnership with
Invotech and Africa Ignite, the project assists with access to technical
and business-related skills. It is the one-stop shop for all business
information and facilitating access to funding for SMMEs. Enterprise
iLembe has also finalised a Broadband Masterplan.
KWAZULU-NATAL BUSINESS 2019/20
22
INTERVIEW
How has tourism contributed
to economic development
and job creation?
The past year saw a record of
over 800 000 tourists visiting
the iLembe District, contributing
over R3-billion to the economy of
the region. Attractions such as
the Ballito Junction Mall remain
key drivers.
The mall attracted 12-million
visitors during its first year of
operation. There are many
other tourist offerings besides
shopping. These includes the
beaches, cultural, history and
adventure tourism.
How do you work with investors?
We continuously engage with potential investors through various
platforms and sign MOUs that lead to direct investment across all sectors
with key focus on job creation, skills development and the overall
contribution to the economy. More recent investments are focused in
the renewable and green energy sector. The investment opportunities
are outlined in the iLembe investor prospectus for the region.
As Enterprise iLembe, we believe that collaboration and partnerships
with key stakeholders is key. It is to this end that we work closely
with partners such as Trade & Investment KZN, Tourism KwaZulu-Natal,
local municipalities as well as private-sector partners.
Other partners such as Dube TradePort and the Isithebe Industrial
Estate have also created immense opportunities for growth and stimulation
of economic initiatives. Our focus is to work with potential investors
to facilitate and ensure that their investment in the iLembe District is
not only seamless and smooth, but also sustainable in the long term.
CONTACT INFO
Tel: 032 946 1256
Email: info@enterpriseilembe.co.za
Website: www.enterpriseilembe.co.za
Facebook: Enterprise iLembe | NORTHCOASTKZN
Twitter: EnterpriseiL
How does the flagship
National Schools Nutrition
Programme benefit farmers
and learners?
As per our mandate, Enterprise
iLembe procures vegetables
from farmers to supply to
schools for the National Schools
Nutrition Programme (NSNP).
Currently approximately 63%
of the 180 tons required for the
programme are procured from local
farmers. A total of 119 farmers
supply fresh produce to the 406
schools in the district.
This has been achieved
through the setting up of agrihubs
in Mandeni, Maphumulo
and Ndwedwe. This is a key
programme for Enterprise
iLembe as it talks directly to
the empowerment of local
communities. Agriculture has
been proven to be one of
the most sustainable sectors
provided there is a market for
SMMEs to supply their fresh
produce, and the NSNP creates
that market space.
23
KWAZULU-NATAL BUSINESS 2019/20
ADVERTORIAL
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please call Siphamandla Ndhlovu on +27 83 637 8552
or visit www.nedbank.co.za.
ADVERTORIAL
ADVERTORIAL
Nedbank’s new brand promise
focuses Expertise on in small client business engagement aimed at that stimulating
will growth create a better understanding
Kevin de Beer, Nedbank Provincial General Manager in the
Nedbank’s Melanie Reddy, Provincial Retail Relationship Banking Manager,
Free
explains
State
how
and
Nedbank
Northern
is committed
Cape, explains
to partnering
how Nedbank
with small businesses
works for growth. with communities to deliver banking solutions.
For example, the Small Business Friday initiative, in
association with the National Small Business Chamber,
seeks to encourage everyone in South Africa to rally
behind and support small businesses. The initiative
calls on everyone to make a conscious decision to
vote for small businesses through their hearts, feet
and wallets; not only on Small Business Friday which is
one particular Friday in a year, but every day.
“Small businesses are the mainstay of the
economy. Nedbank has, over the years,
instituted various interventions aimed at
giving support to the small-business sector.
Over and above our small-business services
solutions, we provide small-business
owners with support that goes beyond
banking, freeing up their time to truly focus
on running their businesses,” says Reddy.
Nedbank has built a solid reputation as a bank for
small businesses through initiatives such as Small
Business Friday, free small-business seminars and
the SimplyBiz.co.za platform – all geared to support
the small- and medium-sized enterprises sector.
Our offering expands to the Professional Banking
segment of the market. In Professional Banking we
realise that time is of the essence in your professions
and hence we offer you a dedicated banker with a
strong support team to take care of the needs of you,
your business and your household.
SimplyBiz.co.za is a free-to-join value networking
portal designed especially for small businesses. The
online portal helps small businesses improve their
business administration skills, keep up with the latest
trends, network with other small businesses and
share ideas.
Should you wish to tap into our small business expertise
to help your business goals, why not get in touch with
Nedbank’s Small Business Services. Call Melanie Reddy
on +27 31 364 2045 or send an email to
Melanier@nedbank.co.za.
ADVERTORIAL
ADVERTORIAL
Nedbank’s new brand promise
Making focuses banking on client accessible engagement to all that
will create a better understanding
At Nedbank we believe in delivering a choice of distinctive clientcentred
Kevin de banking Beer, Nedbank experiences Provincial that create General deep, enduring Manager relationships
in the
with Free our State clients, and Northern says Sean John, Cape, Provincial explains Sales how Nedbank Manager, KwaZulu-
Natal works Branch with communities Networks. to deliver banking solutions.
Our distribution presence in KZN sees us with 85
traditional branches, 32 kiosks in Boxer stores and 33
New Image branches. Nedbank has embarked on a
distribution strategy to convert all our branches to
New Image outlets. We have also increased our ATM
distribution to 630 and Intelligent Depositors to 90 in
the province for your convenience.
To make banking convenient we have eight Sundaytrading
branches in key centres in the province.
Nedbank’s client-centred approach has seen the bank
intensify its efforts in delivering a distinctive client
experience through innovation.
Our clients are engaged by skilled, enabled
and productive staff who, through
meaningful conversations, ensure we
deliver to our clients’ needs and aspirations.
As a bank for all, Nedbank realises that, if
it wants to make banking more accessible
to all in South Africa, it has to start working
with the communities in which it operates.
“Since 2012 Nedbank has launched several firstto-market
innovations, such as the award-winning
Nedbank App Suite, the home loans online digital
channel and Market Edge, as well as New Image
branch outlets,” adds John.
For more information on our offerings please contact
Sean John at SeanJ@nedbank.co.za,
+27 31 364 1933.
As such the bank’s strong relations with government,
organised business and communities remain a key focus
in growing its client base.
Our presence in the KZN community goes a long way in
allowing for greater financial inclusion while contributing
to social upliftment and economic development.
Nedbank Ltd Reg No 1951/000009/06. Authorised financial
services and registered credit provider (NCRCP16).
KEY SECTORS
Overviews of the main economic
sectors of KwaZulu-Natal
Agriculture 30
Sugar 31
Forestry and paper 34
Mining 42
Engineering 43
Oil and gas 44
Construction and property 48
Water 49
Manufacturing 50
Automotive 52
Information and communication
technology 54
Education and training 55
Banking and financial services 56
Development finance and SMME
support 57
OVERVIEW
Agriculture
New crops are adding to the export basket.
The award of Toyota SA/Agri SA Young Farmer of the Year for
2017 went to a Richmond farmer who is one of only four
farmers in the province cultivating golden kiwifruit. There
are only 16 farmers in all of South Africa doing what Ross
Lowe does, but he believes that the particular strain of kiwifruit he has
chosen is the best in terms of taste and yield. Typically for the modern
KwaZulu-Natal farmer, he also intends to increase his export volumes.
So-called superfoods have potential to grow the agricultural
sector via greatly increased exports: these include avocados,
pecans and dates. The province’s Premier has mentioned
possibilities in macadamia nuts (already a thriving sector in other
parts of the country) and in new areas such as cannabis and the
farming of rabbits. The opening of a R99-million cold-storage
facility at the Dube TradePort in 2017 has given farmers and
exporters additional flexibility, allowing them to store chilled and
frozen perishable goods.
Eighteen percent of KwaZulu-Natal’s 6.5-million hectares of
agricultural land is arable, and the balance is suitable for the rearing
of livestock. The province’s forests occur mostly in the southern and
northern edges of the province.
In 2018, a summit was held at which consultation took place
towards the creation of an Agricultural Development Masterplan
for the province. The resulting plan includes priorities such as the
expansion of irrigable land, improving market access for producers
and adding value to agricultural products before they reach local
and international markets.
The Agribusiness Development Agency (ADA) works with
Department of Agriculture and Rural Development (DARD) to
stimulate agribusiness that covers the entire value chain and
promotes development in all areas. The coastal areas lend themselves
to sugar production and fruit growing, with subtropical fruits doing
particularly well in the north. KwaZulu-Natal produces 7% of South
Africa’s citrus fruit.
ONLINE RESOURCES
Fresh Produce Exporters Forum: www.fpef.co.za
KwaZulu-Natal Agricultural Union: www.kwanalu.co.za
KwaZulu-Natal Department of Agriculture and Rural
Development: www.kzndard.gov.za
SECTOR INSIGHT
Increased agricultural freight
volumes are expected at the
Dube TradePort.
Beef originates mainly in the
Highveld and Midlands areas, with
dairy production being undertaken
in the Midlands and south. The
province produces 18% of South
Africa’s milk.
KwaZulu-Natal’s subsistence
farmers hold 1.5-million cattle,
which represents 55% of the
provincial beef herd, and their
goat herds account for 74%
of the province’s stock. The
Midlands is also home to some
of the country’s finest racehorse
stud farms. The area around
Camperdown is one of the
country’s most important areas
for pig farming.
Enterprise iLembe, the
development arm of the iLembe
District Municipality, is looking
for investors to further develop
an agri-processing hub near the
King Shaka International Airport
and Dube TradePort.
KWAZULU-NATAL BUSINESS 2019/20
30
Sugar
OVERVIEW
KwaZulu-Natal leads in sugar production.
SECTOR INSIGHT
Times are tough in the sugar
industry.
For the first time in nearly a decade, some commercial sugar
farmers in the Pongola area have returned to planting cotton as
a rotational crop. This is according to the 2018 annual report of
the KwaZulu-Natal Agricultural Union. Diversification is a good
thing, but this move perhaps also points to the downward trend in
overall sugar production.
KwaZulu-Natal is South Africa’s biggest sugar producer. Most
of South Africa's 14 sugar mills are in KwaZulu-Natal, as are the
headquarters of the biggest companies.
The South Africa Cane Growers’ Association (SACGA) described
the 2017/18 season as “one of the toughest in the history of the
South African sugar industry”. Although more land was cultivated
(after the drought) and revenue was up, the price of sugar was so
low that some growers were said to be at risk of business failure.
Fourteen sugar mills crushed a total crop of 17 388 177 tons of
cane to produce 1 994 607 tons of sugar during the 2017/18 crushing
season. The cane crop was 2 313 567 tons larger than the 2016/17
crop of 15 074 610 tons.
About 40% of local production is exported. The SACGA represents
about 24 000 growers who produce about 20-million tons of cane.
A new industry structure, allowing for multiple grower associations,
has been agreed to by the SACGA, the Department of Trade and Industry
ONLINE RESOURCES
South African Cane Growers’ Association:
www.sacanegrowers.co.za
South African Sugar Association: www.sasa.org.za
South African Sugar Technologists Association: www.sasta.co.za
Sugar Milling Research Institute: www.smri.org
(dti) and the relevant parliamentary
portfolio committee.
Neither of the Big Two companies
relies exclusively on South
African sugar earnings: Tongaat
Hulett has a big property portfolio
and Illovo draws most of its
profit from operations elsewhere
in Africa.
Tongaat Hullet Sugar has
agreed to a R52-million sugarcane-growing
project which will
see co-operatives and contract
farmers plant cane on 3 000ha at
Felixton, Maidstone and Darnall.
Illovo and Tongaat Hulett are
the major operators of sugar mills.
Other millers are Gledhow, ULC,
Umfolozi and Tsb (which has a
further two mills in Mpumalanga).
Illovo has four mills, three sugarcane
estates, four sugar factories,
a refinery and three downstream
operations that make products
such as furfural, furfuryl alcohol,
ethyl alcohol and lactulose.
The four mills run by Tongaat
Hulett are located on the North
Coast while the central refinery
is in Durban and the animal feed
plant, Voermol, is near Tongaat.
The Sugar Terminal at Maydon
Wharf, Durban, serves 11 mills
and can store more than half-amillion
tons of sugar. It also has a
molasses mixing plant.
31
KWAZULU-NATAL BUSINESS 2019/20
FOCUS
Stimulating the agri
sector in KwaZulu-Natal
The new CEO of the Agribusiness Development Agency,
Zenzele Ndlela, is upbeat about the ADA’s new mandate.
Africa has been identified as a sleeping
economic giant in terms of its resource
potential. Agriculture has the potential to
transform the African continent provided
all the African countries can work together towards
providing support to farmers.
This is according to the newly appointed CEO,
Zenzele Ndlela, of the Agribusiness Development
Agency (ADA). “We all need to put our heads together
and stimulate this sector in order to eradicate the
twin problems of poverty and food crisis,” he says.
ADA is a public entity that was established as a
“one-stop-shop” to assist entrant black commercial
farmers who had acquired land through the Land
Reform Programme. However, the entity has taken
on a new strategic direction and aligned its services
with those of the Department of Agriculture and
Rural Development (DARD). “We seek to promote,
establish, facilitate and support the growth of blackowned
and managed agricultural enterprises along
agricultural value chains in KwaZulu-Natal through
partnerships with individuals, communities, the
private sector and other public sector institutions in
order to achieve a transformed agribusiness sector,”
Ndlela says.
“There was a need to have a separate entity that
would accelerate the provision of a comprehensive
support package to black commercial farmers” says
Ndlela. ADA has positioned itself to resuscitate as
well as develop commercial agriculture and has
been able to increase the value of farms owned
by black commercial farmers, reduce the number
of farms being repossessed as well as deal with the
declining local economies of rural towns that relied
on commercial agriculture.
Ndlela notes, “It must be noted that we have
reviewed our mandate and shifted our strategic
focus to the entire value chain in agri-business.
Our interventions have changed the agricultural
landscape in the province. Providing funding to
beneficiaries improved their agribusinesses and
welfare and enabled them to gain access to markets
through capacity building programmes.
“The positive attitude and optimism among our
beneficiaries towards farming is linked to the newly
gained confidence in their skills (farming techniques,
marketing, value addition, etc.) which they received
from ADA,” says Ndlela. “We have turned around
ailing farms including dairies, piggeries, grain
farms, vegetable farms and livestock farms from
zero production levels to where they are able to
consistently supply the market.”
The ADA has trained 1 726 individuals and
created and/or sustained a total of 2 250 jobs during
the construction of physical infrastructure, planting
and harvesting seasons, all within the Enterprise and
Value Chain Development Programme.
KWAZULU-NATAL BUSINESS 2019/20
32
1. VISION
“A diverse, deracialised, prosperous, and sustainable agribusiness sector in KwaZulu-Natal.”
2. MISSION
The ADA strives to promote, establish, facilitate and support the growth of black owned and managed agricultural enterprises along
agricultural value chains in KwaZulu-Natal through partnerships with individuals, communities, private sector and other public sector
institutions in order to achieve a transformed agribusiness sector in the province.
3. OUR VALUES
Organisational values define the key principles and associated behaviours that are required by employees when executing the strategy and
functions of the organisation and state what the beneficiaries and stakeholders can expect from the organisation. The values of the ADA are:
• Integrity: We commit ourselves to ensuring that our purpose, practices and values are ethically sound, at all times
• Accountability: We take accountability for all our actions in dealing with our Clients and Stakeholders and are mindful of possible
consequences emanating from our decisions
• Excellence: We commit to providing quality services and products to all our clients at all times consistent with the spirit of Batho-Pele
• Innovation: We commit to strive for continuous improvements through innovation and promoting a learning organisational culture
4. FOCUS ON OPERATION
In keeping with the outcome of the alignment process between DARD and ADA, the Agency will concentrate on the following:
• agribusiness development and in particular on agro-processing
• on high impact and complex projects that will assist in unlocking public and private resources, as well as assistance in turning
around declining industries
• look at niche and new products that support import substitution and exports
5. OUR PRODUCTS AND SERVICE OFFERINGS
We have developed products and services according to four broad areas in supporting agribusiness development:
Knowledge and Information Services – these include design and dissemination of agribusiness models, agribusiness training modules
and business leadership development;
Financial Resources Mobilisation – these include targeted development finance and investments;
Agribusiness Facilitation Services – these include connecting agribusiness entrepreneurs to information, technological
innovations and markets;
Agribusiness Market Infrastructure Services – these include agribusiness capacity and systems development; as well as
investments in infrastructure.
OVERVIEW
Forestry and paper
Diversification is a growing trend.
Big forestry and paper companies have been preparing
themselves for change for many years now. The computer
age and digitalisation presented complicated challenges
to paper manufacturers and companies. In response, Sappi
and Mondi, global leaders in paper and packaging with strong roots
in KwaZulu-Natal, have embraced diversification.
Sappi has a strong emphasis on dissolving wood pulp and Mondi
reports growing demand in its packaging divisions. Although Mondi
closed one machine at its Durban plant in 2018, it will continue to
make uncoated fine paper for the domestic market at the plant.
Recent upgrades to Mondi’s woodyard at Richards Bay have made a
big impact on efficiencies. The addition of an unbleached kraftliner
product has expanded the company’s range. Three investments
in eastern Europe will see the company’s saleable pulp and paper
production go up by about 9% overall.
Sappi makes paper at two mills in South Africa: the mill at Tugela
makes 185 000 tons of speciality paper per annum. A big focus for
the company is dissolving wood pulp, made at one site in America
and two in South Africa.
Dissolving wood pulp is sold as a raw material to converters
around the world who produce from it a range of products such
as textiles, cellophane wrap and pharmaceuticals.
SECTOR INSIGHT
TWK is the latest agricultural
company to list on a stock
exchange.
The giant Sappi Saiccor mill 50km
south of Durban is the world's biggest
manufacturer of dissolving
wood pulp. The mill's capacity is
800 000 tons, which makes it the
biggest of its kind in the world.
Sappi is actively looking into the
new fields of bio-materials and
bio-energy.
Both company’s investments
in the province are outlined in a
special feature elsewhere in this
publication.
National production figures
in the forestry sector declined
KWAZULU-NATAL BUSINESS 2019/20
34
manufacturing, auto identification, bar coding and labelling sectors.
As such, we are proud to be the sole distributor in Southern Africa for many of the leading
internationally-renowned brands in those sectors in which we operate, such as HP Indigo,
Komori, Flint, Fujifilm, Argox, CipherLab, Datalogic and Brother.
Kemtek pursues
continual growth
Kemtek keeps abreast of industry developments and potential
new markets while offering the best solutions to customers.
FOCUS
And, with a focus always on providing highly skilled services and post-sales support, we’re
ensuring our customers are maximising their potential for growth and profit - day in, day out!
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J25589
J25589_Kemtek_Propak_Advert_FA.indd 1 2019/02/14 16:12
Targeted industry events and product demonstrations are proving highly popular with Kemtek
customers and prospective customers alike.
Long-established in the lithographic,
flexographic, digital and large-format
printing and packaging arenas, Kemtek has
evolved over time into a multi-pronged
organisation, entrusted with channel responsibility
by many of the world’s leading brands in the
barcoding and labelling sectors through widespread
professional resellers, plus 3D printing, through its
joint venture partner Rapid 3D.
Aligning with internationally-acclaimed brands is
one aspect of Kemtek's continued success, coupled
with expert sales and service support, and an agile
and specialised national distribution network,
annually achieving some 15 000 deliveries.
This fast-growing enterprise also represents
specialist additive manufacturing equipment and
materials providers in multiple sectors including
aerospace, automotive, manufacturing, medical,
dental and jewellery, with brands such as EOS,
Envisiontec, MCor and Zortrax.
Building on core strengths
Creating value on a sustainable basis is Kemtek’s
marketing approach that's based on a detailed
understanding of markets and the needs of the
end user. These needs are then married to the
technologies provided by Kemtek's principal
brands. Providing a winning edge for all Kemtek's
customers means delivering the most advanced
technological equipment and service, backed by a
total commitment to service excellence.
With digital printing firmly growing in Southern
Africa, Kemtek and partner, HP Indigo, have recently
expanded their labels and packaging portfolio
with technology solutions to drive printing and
converting toward more flexible, productive and
profitable digital printing.
Taking digital finishing to the next level is the
ability to integrate the Indigo 6900 with an HP
Indigo GEM digital embellishment unit – a onepass
label printing and embellishment system for
spot, tactile, foil, holograms, mini textures and
lamination.
In the packaging sector, Kemtek’s alliance with
Flint Flexographic products goes from strength to
strength. Flint has extended the range with nyloflex
FTF-UV plates, designed for high-resistance to UVbased
inks, and nyloflex FTP for paper packaging
applications such as multiwall sacks and liquid
dairy cartons. Another important development
between Kemtek and Flint Group is a distribution
agreement that allows Kemtek to supply the full
range of ThermoflexX laser imaging systems in
South Africa.
For more information, visit www.kemtek.co.za.
35
KWAZULU-NATAL BUSINESS 2019/20
OVERVIEW
in 2017 for the third year in a row. Forestry SA reports that
tonnage sales were nearly 2% down on the previous year, at
15-million tons. Wattle showed the largest decrease while
pulpwood was the only category to increase, but by less
than 2%. The National Department of Agriculture, Forestry
and Fisheries reports that South Africa has a shortage of
sawn timber and anticipates further shortages in the future.
Despite this overall trend in the national forestry picture,
TWK has announced that it wants to buy 11 000 hectares of
forest land to support its wood chip sales (especially to China
and Japan) and timber exports. TWK is an agricultural company
that grew out of the Transvaal Wattlegrowers Cooperative and
which became the latest such company to be listed when it
joined the ZAR X in 2017.
The KwaZulu-Natal provincial government's strategy of creating
Industrial Economic Hubs (IEHs) includes the development
and expansion of wood processing in the Harry Gwala District
Municipality. This is in the wooded south-western part of the
province and includes the towns of Kokstad, Harding, Ixopo and
Underberg.
Nampak produces crêpe paper at Verulam and Rafalo produces
tissue paper. SA Paper Mills is another paper producer.
Mpact's upgrade of its Felixton mill has increased capacity
and improved efficiency. The project cost R765-million and
takes overall production up to 215 000 tons and a lightweight
containerboard option has been included in the product lines.
This is in response to market demand for lighter packaging.
Mpact has plastics and paper operations, with the paper
section divided into three divisions: paper manufacturing,
corrugated and converted paper products and recycling.
The Merensky Group operates one softwood sawmill and a
panel-processing plant in Kokstad that is geared to manufacture
according to customers’ needs in any sector. Export is done
through the Port of Durban.
NCT Forestry Co-op Limited is a key timber-marketing entity
with more than 2 000 members and three wood-chipping mills.
ONLINE RESOURCES
Forestry South Africa: www.forestry.co.za
KwaZulu-Natal Department of Agriculture and Rural
Development: www.kzndard.gov.za
South African Institute of Forestry: www.saif.org.za
Technical Association of the Pulp and Paper Industry of South
Africa: www.tappsa.co.za
R&B Timber Group has three
pole treatment plants and is
headquartered in Harding.
Flaxton Timbers operates
out of Ixopo and Natal Forest
Products is in Richmond.
Timber
Timber plantations are
found in five parts of the
province: northern KwaZulu-
Natal, Midlands, southern
KwaZulu-Natal, Zululand and
Maputaland. Close to half-amillion
hectares – 38.5% of the
land in South Africa devoted to
forestry – is allocated to timber
plantations. Of this area, 70%
is devoted to hardwoods and
the balance to pine, the only
softwood grown in large
quantities in South Africa.
The percentage of privately
owned forest land is 93.4%.
Merensky has plantations in the
Dargle forest while Sappi and
Mondi have holdings across
the province, and in other parts
of South Africa.
Management of the 251
000 hectares of the plantation
forest that Mondi has under
management is done in line
with sustainable forest management
principles and the
company is engaged in a partnership
with the WWF to get
different types of water users
to work together in improving
how water is used. Mondi has
reduced its own consumption
of fresh water by 12% in comparison
to its use in 2015.
KWAZULU-NATAL BUSINESS 2019/20
36
PROFILE
Sustainable growth
Mondi is a global leader with a culture that delivers
sustainable growth.
Mondi is a global leader in packaging and
paper, delighting its customers and
consumers with innovative and sustainable
packaging and paper solutions.
Mondi is fully integrated across the packaging
and paper value chain – from managing forests and
producing pulp, paper and plastic films, to developing
and manufacturing effective industrial and consumer
packaging solutions. Sustainability is embedded in
everything Mondi does.
In 2018, Mondi had revenues of €7.48-billion and
underlying EBITDA of €1.76-billion.
Mondi globally is leading the response of the
packaging and paper industry in developing
sustainable solutions to address key environmental
and social challenges. The group is taking a sciencebased
approach and working with partners across
the value chain to develop innovative sustainable
solutions that are fit for a circular economy. By taking
a holistic view, Mondi believes it can meet the needs
of each customer, their products and the planet to
contribute to a better world.
Peter Oswald, Mondi Group CEO, commented:
“As a global packaging and paper group, it is
essential for our business, as well as the planet,
to drive innovation and change throughout the
value chain. We don’t see sustainability as a trend,
it’s a requirement. Mondi’s unique offering of highperformance
paper, plastic and hybrid solutions
means that we can find the most sustainable fit for
each application.”
Mondi South Africa
Our South African business sustainably manages
some 250 000 hectares of plantation forests and
manufactures and sells pulp, virgin containerboard
and uncoated fine paper products. We have around
1 500 employees working in our forestry operations
and two mills located in Richards Bay and Merebank,
Durban.
Strategic advantages
Our focus is on leveraging our strong domestic market
position and the global competitiveness of our
Richards Bay mill. With a history spanning more than
50 years, we understand the value of being efficient,
cost-competitive and customer-focused.
Our passion for performance will always be central
to the way we run our business and is demonstrated
through a continuous focus on quality, productivity
and efficiency. The fundamental principle behind
operational excellence at Mondi is the desire to do
more with less.
We invest in and manage our business to ensure
that our manufacturing operations maintain their
cost advantage, that our forestry operations are
managed sustainably for a secure timber supply,
that we support our customers' success and invest in
the development of our people and communities.
37 KWAZULU-NATAL BUSINESS 2019/20
FOCUS
Developing innovative solutions
for a circular economy
Mondi is committed to best practice in forestry
management and production.
Mondi South Africa is at the forefront of sustainable
business practices. “It’s exciting to be playing a
lead role in Mondi’s sustainability story. There are
so many areas we are proud of but three stand
out for me. From the work we are doing to reduce our water
impact, to managing water catchment areas and wetlands
through our work with partners, to using significantly less
water in our operations. Second is the progress we have
made in becoming a diverse and inclusive workplace, where
people can grow to their full potential and contribute to our
success. And then of course our globally competitive operations
that produce high-quality, fully-recyclable products
from sustainably sourced fibre,” explains Viv McMenamin,
CEO Mondi South Africa.
Sustainable fibre
The sustainable management of our forestry operations is
key in managing our overall environmental impact, helping
to protect ecosystems, and developing
resilient landscapes.
Wood is one of the primary raw materials
and our staff work hard to provide the
best assurance for our stakeholders that
the wood and fibre we use comes from
responsible sources.
Plantation forests in South Africa are
managed in a way that secures their longterm
biological integrity, social value and
productivity.
Maintaining FSC certification of forests
is also an important part of our management
approach. It assures compliance with globally
recognised standards for sustainable forest
management.
Water as a constrained resource
Given the critical importance of water to business,
to local communities and to other stakeholders,
we strive to manage water use wisely
and efficiently – especially in water-stressed
regions. We are committed to reducing the
specific contact water consumption of our
pulp and paper mills by 5% by 2020, against
a 2015 baseline.
Drought conditions in South Africa
remain a concern and we continue to look
for opportunities to improve water security
in the areas where we operate. The focus
is on reducing water consumption, in
particular at the Richards Bay mill.
KWAZULU-NATAL BUSINESS 2019/20
38
Biodiversity and ecosystems
FOCUS
WWF-Mondi Water Stewardship
Programme
Mondi promotes a landscape approach to freshwater
stewardship. The focus of the long-standing WWF-
Mondi Water Stewardship Programme (previously
the WWF-Mondi Wetlands Programme) has grown
from managing and rehabilitating wetlands with
different groups of land-users (including Mondi)
to catalysing water stewardship at the landscape
scale, including ensuring collaboration and action by
different land-users in the uMngeni and Mvoti River
catchments, both of which are strategically important
water-supply areas for KZN’s economic hubs.
In 2014, following many years of collaboration,
Mondi Group and WWF launched a global
partnership to promote responsible forestry and a
sustainable pulp and packaging sector.
In 2017, this global partnership was extended for
another three years and the WWF-Mondi Wetlands
Programme was renamed the WWF-Mondi Water
Stewardship Partnership, reflecting its broadening
focus on catchment-based water stewardship. Water
stewardship assessments were conducted for the
Richards Bay mill and plantations in South Africa. This was
measured against the international Alliance for Water
Stewardship Standard, a globally-applicable framework
for major water users to understand their water use
and impacts. The outcomes are now being used to
investigate meaningful, cost-effective improvements to
management systems to meet the core requirements
and to advance some of the requirements.
In 2018, Mondi joined the WWF Climate Saver's
Programme, WWF's global platform to engage
businesses and industries on climate and energy.
Responsible forest management involves increasing
the long-term productivity and preserving ecosystem
values in rural landscapes and protecting
high conservation value areas such as wetlands.
Degradation of ecosystems and loss of habitats
and species has a significant negative effect on the
ecosystems that both communities and business
rely on. We are committed to protecting biodiversity
and ecosystem services in our forestry operations.
Maintaining an effective network of highconservation
value areas and valuable habitats,
and on imitating natural dynamics for key types of
ecosystems where possible, is another focus.
Eco-efficient products
The investment to expand our product range by
producing unbleached kraftliner in addition to
white-top kraftliner at the Richards Bay mill has
been welcomed by customers. Baywhite, Baycel
and Baykraft products are certified for food
packaging (ISEGA) and Mondi has adopted Good
Manufacturing Practice (externally certified).
39 KWAZULU-NATAL BUSINESS 2019/20
FOCUS
Inspiring Mondi people for
long-term success
Leading the way in transformation and enterprise development.
has over 30 contractors as enrolled small businesses,
with a focus on growing skills, management capability
and improving their operational know-how.
We are able to maintain a steady supply of highquality
fibre from a network of small forest enterprises
with on average 87 000 tonnes of the timber supplied
to our Richards Bay mill coming from these suppliers.
Mondi’s significant activities in a number
of key areas reflect a strong commitment
to transformation and B-BBEE. This
is confirmed by Mondi’s Level One
contributor status under the under the Forestry
Sector Broad Based Economic Empowerment codes,
as verified by an independent assessment.
Enterprise development
Mondi Zimele, established in 2007, is our small
business development organisation. Its initial focus
was on accelerating black economic empowerment
in the forestry value chain. In 2012 the focus
expanded to incorporate support for communitybased
small businesses around Mondi’s operations.
This was enabled through the establishment of the
Mondi Zimele Jobs Fund, an enterprise development
initiative co-funded by the Jobs Fund.
Since 2012, Mondi Zimele has provided
approximately R100-million in loan funding to assist
over 200 local businesses in the creation of more than
2 800 jobs. Mondi Zimele has also been instrumental in
the establishment of several land claimant community
contractors where we continue to emphasise
productivity improvement, business administration
and compliance as the key to success for these SMEs.
The Mondi Zimele and Department of Trade and
Industry (dti) Forestry Contractor Incubator Programme
Land claims
An innovative sale and leaseback model has
been developed with a successful mechanism for
settling claims with and supporting land-claimant
communities. Following a successful land-claims
process, communities have ownership of the land
and associated rental revenues but also receive
assistance to develop sustainable forestry enterprises
and forestry-related skills. In this way communities
immediately derive a rental income from their land
but also develop the know-how to potentially farm
timber for themselves into the future. Approaching
land reform in this developmental and inclusive way
means we are able to retain a sustainable source of
wood supply into the future.
Skills and people development
KWAZULU-NATAL BUSINESS 2019/20
40
FOCUS
R8-BILLION INVESTMENT OVER FIVE YEARS
At the President’s Investment Summit in
2018, Viv McMenamin, CEO Mondi South
Africa, announced, “We focus on investing
in our world-class assets to maintain our
cost advantage. Over the next five years we
will be investing a total of around R8-billion
in our South African operations, which
includes ongoing investment in our forestry
assets and the modernisation of our pulp,
containerboard and paper assets, subject to
approval by the Mondi boards.”
the recently expanded Ligbron E-learning system is
now operational in a further three rural schools. Each
e-learning classroom has an e-Boxx with a SMART
interactive whiteboard, a digital camera, sound system
and alarm system. This technology facilitates the weekly
live streaming of mathematics and science lessons that
are shared by using video conferencing and desktop
sharing. During live streaming, the image of the teachers/
learners from linked schools is visible on the SMART
board. The SMART boards display the presentation and
any student and teacher can write on the SMART board
and ask questions from their own school.
Mondi believes strongly that by working in
partnerships with government, communities and NGOs
we will be able to find sustainable land reform solutions.
We believe that being part of the solution to global
challenges will secure the long-term success of our
business and the wellbeing of our communities and
other stakeholders.
www.mondigroup.com
We invest significantly in skills and leadership development,
offering talented individuals interesting careers as part of
a global group. We are particularly proud of the progress
women are making in Mondi South Africa, holding
positions such as CFO, Procurement Director, Head of
Mondi Zimele and as artisans, foresters, safety managers,
nursery manager and in the fields of engineering, finance,
human resources and more.
Community development
Our well-established approach is focused on investing
in communities living on our land or near operations.
A leading community development initiative is
the Mkondo Development Project (Piet Retief), a
pioneering public-private partnership focused on
improving the living conditions of people in isolated
villages on forestry land, and to find sustainable
solutions to alleviate poverty and offering security
of tenure. The pilot Jabulani Agri-village has been
completed and eight other Agri-villages are in progress.
The commitment to education is widespread and
PART OF THE SOLUTION
Viv McMenamin, CEO Mondi South Africa, adds:
“Our South African business continues to be
a strong contributor to Mondi’s success story.
From our sustainably managed forests, to our
world-class pulp and containerboard operation
in Richards Bay, to being the number one office
paper producer in South Africa. We believe in the
value of being part of the solution to global and
local sustainability challenges and I am proud
of the work we are doing in partnership with
our communities, government and other key
stakeholders. This gives me great confidence in
the future of Mondi South Africa!”
41
KWAZULU-NATAL BUSINESS 2019/20
OVERVIEW
Mining
Second smelter to be activated at Isithebe foundry.
SECTOR INSIGHT
Most of South Africa’s export
coal passes through the
Richards Bay Coal Terminal.
Finnish company Metso will spend about R53-million on building
a second furnace at its Isithebe foundry in the iLembe District
Municipality. This is in response to increased demand for large
crusher wear parts. The KwaZulu-Natal foundry is one of five
foundries the company runs on four continents.
The renovated foundry will be able to manufacture wear parts for
the Nordberg® MP2500 cone crusher as well as for Metso and third-party
primary gyratory wear parts. The first products from the new furnace
are scheduled for May 2019.
RBM mines the minerals sands of the northern KwaZulu-Natal coast
and operates out of Richards Bay. The main products of the RBM mine are
zircon, rutile, titania slag, titanium dioxide feedstock and high-purity iron.
Tata Steel KZN's high-carbon ferrochrome plant at Richards Bay
went into business rescue and then liquidation before being bought
by Luxembourg-based Traxys Africa in the middle of 2016, after a court
ruled in its favour. Traxys has chrome mines Mpumalanga and Limpopo
provinces. Tata Steel did not have its own mines.
The KZN Sands mineral sands operation comprises a central
processing complex in Empangeni and the Fairbreeze Mine. Expenditure
over several years (which started in 2016) is expected to rise to R5-billion
as it expands. Tronox, which is listed on the New York Stock Exchange,
is the major shareholder in KZN Sands.
The development of a new titanium dioxide pigment plant was
announced in 2017 by Nyanza Light Metals and its technology partner,
ONLINE RESOURCES
Geological Sciences, University of KZN: www.geology.ukzn.ac.za
Minerals Council South Africa: www.mineralscouncil.org.za
National Department of Mineral Resources: www.dmr.gov.za
Avertana of New Zealand. The use of
stockpiled waste slag (from mines in
Mpumalanga) sets this R4.5-billion
project apart. Other products
will include gypsum, aluminium
sulphate and magnesium sulphate.
Production was scheduled to begin
in 2019.
The Hillside aluminium smelter
at Richards Bay run by South Africa
Aluminium is now a 100% South32
asset. Most of the product (highquality
primary aluminium ingot)
is exported but some liquid metal
form is sent to Isizinda Aluminium
which supplies Hulamin, a
company that has had a rolling
mill in Pietermaritzburg since
1949. Hulamin is the only major
aluminium rolling operator in the
region and it makes rolled products
and extrusions.
Other processing facilities in
the province include the steel
plant owned by Arcelor Mittal in
Newcastle and Safa Steel's metalcoating
factory in Cato Manor.
Some of the coalfields of the
province have been revived.
Petmin's Somkhele Anthracite Mine,
north of Richards Bay, has one of
the biggest reserves of open-pit
anthracite in South Africa, with
measured and indicated reserves
of more than 51-million tons across
its four areas.
KWAZULU-NATAL BUSINESS 2019/20
42
Engineering
OVERVIEW
Construction is booming north of Durban.
SECTOR INSIGHT
Marine engineering is a
provincial strength.
Property company Tongaat Hulett Developments won Visionary
Client of the Year at an engineering awards event in 2017, a
recognition of how much construction is underway north of
Durban on land that used to be covered in sugar cane.
The South African construction sector is experiencing tough times,
with more than one company going into business rescue in 2018,
which could explain why the annual Cesa Aon Engineering Excellence
Awards acknowledged the developer of eight large projects covering
commercial, industrial, retail and residential.
The other mega-project that has created a lot of work for engineers
has been the multi-year Western Aqueduct project to bring fresh water
to greater Durban.
The Western Aqueduct Joint Venture comprising three companies,
Knight Piésold Consulting, Naidu Consulting and Royal Haskoning DHV,
acted as agents for eThekwini Water and Sanitation. Stefanutti Stocks
Pipelines played a big role, and there were opportunities for excellence
and innovations in areas such as break-pressure tanks which were
designed by Royal Haskoning DHV and built by ICON Construction.
Marine repair and engineering form a significant sector in the
province, with established companies such as EBH South Africa offering
comprehensive services at the ports of Durban and Richards Bay
(pictured). Both ports are expanding (Durban is building a cruise liner
terminal, for example) and will continue to attract engineers.
ONLINE RESOURCES
Consulting Engineers South Africa: www.cesa.co.za
Engineering Council of South Africa: www.ecsa.co.za
South African Forum of Civil Engineering Contractors:
www.safcec.org.za
Southern African Institute for Industrial Engineering:
www.saiie.co.za
Dormac, which is headquartered
in the Bayhead area of the Port of
Durban, is best known for its marine
engineering but it offers specialised
services to the sugar industry and
provides machinery for industrial
giants like Toyota and Defy.
All of the province's biggest
industries require sophisticated
engineering skills: aluminium
smelters in Richards Bay and steel
works in Newcastle, Richards Bay
and Cato Ridge. There are also
chemicals and plastics production
plants, and large automotive works.
The Transnet Engineering (TE)
plant in the Port of Durban houses
six business units and has 3 555
employees. The Coach unit upgrades
coaches and the Auxiliary
business is the main supplier of
rail wagon tarpaulins to Transnet
Freight Rail. The Port Equipment
Maintenance unit and units specialising
in wheels and locomotive
overhaul are other entities. There
are a further six depots located
around the province.
The School of Engineering at the
University of KwaZulu-Natal offers a
variety of degree options, ranging
from undergraduate qualifications
to doctorates. The School offers
eight areas of specialisation
including Bioresources, Electronic
and Computer Engineering, and
Land Surveying.
43
KWAZULU-NATAL BUSINESS 2019/20
OVERVIEW
Oil and gas
Italian company Eni has offshore
prospecting rights.
Eni, one of the world’s biggest energy companies, has an
agreement with Sasol Petroleum International to explore for
hydrocarbons off the coast of KwaZulu-Natal. The permit
was granted in 2013 but moves to start operations in 2018
attracted the attention of concerned environmentalists. Eni, which
has headquarters in Rome and operates in 71 countries, has several
projects off the coasts of Mozambique and Kenya.
The regulator and promoter of oil and gas exploration in South
Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas
exploration rights in KwaZulu-Natal to NT Energy
Africa, which has a partnership with the Central Energy Fund. These
awards are for onshore exploration. The Petroleum Agency SA is an
agency of the National Department of Energy.
If a private partner can be found, a liquid natural gas (LNG) plant
will produce 2 000MW on a site in Richards Bay. This forms part of
national government's allocation of 3 126MW to natural gas in its
medium-term energy policy to 2030.
The National Department of Energy (DoE) decided in 2016
that one of the first two gas-to-power plants to be constructed
under the Independent Power Producer Procurement Programme
would be allocated to Richards Bay. This has the potential to
turn the Richards Bay Industrial Development Zone (RBIDZ) into
an energy hub. The fact that neighbouring Mozambique has
significant offshore deposits is a factor in this ambition. To produce
its allocation of 2 000MW, the plant would have to use a million
tons a year of liquid natural gas (LNG).
ONLINE RESOURCES
National Energy Regulator of South Africa: www.nersa.org.za
Petroleum Agency SA: www.petroleumagencysa.com
South African National Energy Association: www.sanea.org.za
South African Petroleum Industry Association: www.sapia.co.za
SECTOR INSIGHT
A liquid natural gas plant is
planned for Richards Bay.
A new unit within the National
Department of Trade and Industry
(dti) is focussed on importing LNG,
particularly from Mozambique and
Botswana. Local demand for LNG is
expected to increase to more than
10-million tons per annum.
Getting fuel to the province
of Gauteng is the key mission of
the new multi-purpose pipeline
(NMPP) which started delivering
fluids in 2012. Refined products
such as jet fuel, sulphur diesel
and both kinds of octane petrol
are carried. The infrastructure of
Transnet Pipelines is said to reduce
the number of fuel tankers on
South African roads by about 60%.
KwaZulu-Natal is home to two
major oil refineries and is the first
link in the pipeline chain that links
Gauteng province, the industrial
heartland of South Africa, with
vital fuels. The Port of Durban
handles 80% of South Africa's fuel
imports. KwaZulu-Natal is thus a
key player in the country’s oil and
gas industry.
KWAZULU-NATAL BUSINESS 2019/20
44
OVERVIEW
Construction and property
Infrastructure and multi-use developments are forging ahead.
SECTOR INSIGHT
Development on the N3 is
underway.
Job losses and business rescues were recurring themes in
the South African construction sector in 2017 and 2018. The
announcement in late 2018 that work on the R4.3-billion Oceans
Umhlanga project had been halted confirmed that KwaZulu-
Natal was not immune to these trends, but indications were that work
on the residential, hotel and retail mall development will resume in 2019.
A number of other large projects in the province are bucking the
national trend. According to the organisers of the KZN Construction
Expo, which was held in February 2019, infrastructure will attract more
than R200-billion over seven years and R35-billion will be spent over
15 years at the Port Waterfront development.
The King Shaka International Airport and associated Dube TradePort
are also attracting property investments. Two new industrial parks are
being developed: Cornubia is part of a larger project near Umhlanga
and Clairwood in Durban South will offer more than 300 000m² of
A-grade industrial space.
Tongaat Hulett has for several years been rolling out a series of
developments on land it owns north of Durban, but in 2018 it launched
the nTshongweni Urban Development on either side of the busy N3
highway west of the city. Land use will be housing, light industry and
logistics with a private developer, Fundamentum Asset Management,
committed to building a shopping mall in the central business district.
The website of Tongaat Hulett Developments (THD) lists 16
completed projects, including La Lucia Ridge and the Zimbali Coastal
ONLINE RESOURCES
Construction Industry Development Board: www.cidb.org.za
Master Builders Association KwaZulu-Natal:
www.mba-kzn.co.za
SA Estate Agency Affairs Board: www.eaab.org.za
SA Institute of Valuers: www.saiv.org.za
Resort. Some current projects are
massive in scale. Cornubia covers
1 300 hectares about 7km from
the airport and encompasses
industrial, commercial, residential
sections.
The Sibaya Casino and
Entertainment World is located
within the Sibaya Coastal Precinct
which THD is building as seven
distinct nodes along 1 000 hectares
of coast. Bridge City (pictured) is one
of the most ambitious projects:
a joint venture between the
eThekwini Municipality and Tongaat
Hulett, it is a presidential project that
combines industrial, commercial,
retail and residential opportunities
located between Pinetown and
Umhlanga Ridge.
KwaZulu-Natal has a number of
brick companies and four cement
factories. Three of these are run by
NPC-Cimpor (at Simuma, Durban
and Newcastle), and the company
has a further six sites for concrete
and two for aggregate. Lafarge has
a large depot and cement clinkergrinding
operation in Richards Bay,
six aggregate quarries and eight
Readymix plants around the province.
The Supreme Award for
Excellence in Construction
(Master Builders KwaZulu-Natal)
was awarded in 2018 to WBHO
Construction for the Absa Regional
Office KwaZulu-Natal.
KWAZULU-NATAL BUSINESS 2019/20
48
Water
OVERVIEW
South Africa’s first mobile desalination plant has been installed.
SECTOR INSIGHT
Durban wastewater is to get
new technology.
Richards Bay has installed a 10-container desalination plant
next to the municipal water treatment plant at Alkanstrand.
The first mobile sea water purification unit in South Africa, it
comprises 10 containers and is located adjacent to the water
treatment plant at Alkantstrand. It can deliver 10 megalitres of drinking
water. However, the high cost of electricity means that the unit is used
sparingly. Solar energy is being investigated as a possible alternative.
In 2018 JG Afrika delivered a R72-million desalination plant (pictured)
to South32's Hillside aluminium smelter in the same town.
New technology has been installed at the Verulam Wastewater
Treatment Works of the eThekwini Municipality. Murray & Roberts Water
and its European technology partner, Organica Water, has installed
an environmentally-friendly system that uses 30% less energy and
produces 30% less sludge.
The area north of the Durban central business district is one of the
fastest-growing urban areas in South Africa, with a number of large
office and accommodation projects going ahead simultaneously. This
is a welcome development for the economy, but the new buildings
also create pressure on infrastructure.
The multi-year, R250-million Northern Aqueduct Augmentation
project was initiated in 2014 and the fifth phase of the project has
recently begun. This will provide water for Durban North, Umhlanga,
Newlands, KwaMashu, Phoenix and Cornubia.
ONLINE RESOURCES
Mhlathuze Water: www.mhlathuze.co.za
National Department of Water and Sanitation: www.dwa.gov.za
Umgeni Water: www.umgeni.co.za
Water Research Commission: www.wrc.org.za
One of the many challenges faced
by the South African water sector
is a shortage of engineers. A study
jointly commissioned by the Water
Research Commission and the
South African Local Government
Association (SALGA) found that the
country's four-in-a-million ratio of
engineers is a long way from the
required 50-per-million.
Umgeni Water currently supplies
more than 400m³ of potable water
to its six large municipal customers:
eThekwini Metropolitan Municipality,
iLembe District Municipality, Sisonke
District Municipality, Umgungundlovu
District Municipality, Ugu District
Municipality and Msunduzi Local
Municipality. The company has five
dams, 10 waterworks, five watertreatment
plants and two wastewater
works.
Large parts of the northern part of
the province are served by Mhlathuze
Water. The utility has assets valued at
more than R3-billion and its area of
supply covers 37 000m².
Nedbank is putting R9-million
over five years into clearing alien
vegetation in the country's watercatchment
areas, including in
KwaZulu-Natal. The Nedbank
sponsorship of the WWF's Water
Balance Programme has seen water
flowing more freely in the Umgeni
catchment area.
49 KWAZULU-NATAL BUSINESS 2019/20
OVERVIEW
Manufacturing
The Blue and Green economies hold potential for KZN manufacturers.
SECTOR INSIGHT
ArcelorMittal SA turned a
profit for the first time since
2010.
• Africa Bespoke Apparel has
opened in Verulam.
The manufacturing sector contributes 17.7% to the provincial
Gross Domestic Product (GDP) of KwaZulu-Natal. The
strongest export sectors are base metals (32% including
aluminium), mineral products such as ores, vehicles and
chemical products.
New opportunities in the Blue economy (ship-building and
maintenance, oil rig repair and servicing) and the Green economy (solar
panel manufacture, solar, biogas and wind energy plant construction,
management and maintenance, heating and cooling devices) are set
to grow in KwaZulu-Natal with the allocation of geographical hubs to
support these sectors, and the introduction of policies and incentives
designed to make them competitive.
The Richards Bay Industrial Development Zone has been identified as
an area that can attract investment in both of these sectors while the Port
of Durban already has a strong boat-building and maintenance sector.
The nine-tug contract put out by Transnet National Ports Authority
(TNPA) is worth R1.4-billion and was won by Durban-based Southern
African Shipyards in Durban. Most of the tugs have been built and sent
to ports around the country.
iLembe District Municipality is intended as the renewable energy
hub of the province, with renewable energy components manufacturing
as a key subsector.
The first beneficiary of national government’s black industrialist
support programme was revealed in January 2019 when Africa Bespoke
Apparel launched its R81-million factory (pictured) in Verulam. Various
interventions in the textile, footwear and clothing sector have helped
to revive the industry.
The footwear sector in particular is showing good recovery after
taking a battering from Chinese imports. The purchase of 39% of
Eddels Shoes by management and
staff has paid off, with 385 staff
employed in making 2 700 leather
shoes every day. Two international
safety footwear firms operate out
of Pinetown: Bata Industrial and
Beier. The latter company has joined
forces with three other South African
safety footwear manufacturers to
form the BBF Safety Group.
Shanghai, with which
KwaZulu-Natal has signed a
memorandum of understanding,
has agreed to run an exchange
programme focussing on
clothing and textiles.
Canvas and Tent Manufacturing
(Pty) Ltd has more than 400
employees in Ladysmith. There
are 219 clothing companies in the
province (Coface). Ninian & Lester
has about 1 500 employees.
Carpet manufacturers Belgotex
Floorcoverings and Ulster Carpets
have facilities in Pietermaritzburg
and Durban respectively. Home
appliance manufacturer Defy, which
is part of the Turkish group Arçelik,
employs about 2 600 people. Böhler
Uddeholm in Pinetown produces
tooling materials and welding
consumables.
KWAZULU-NATAL BUSINESS 2019/20
50
OVERVIEW
Chemical assets
Two large oil refineries and a sophisticated sugar milling and refining
industry underpin provincial chemical manufacturing. The chemicals
and petrochemicals subsector makes up 17% of the manufacturing
output of KwaZulu-Natal, with industrial chemicals accounting for
nearly a third. Steel and aluminium are other heavy manufacturing
products. The automotive industry is covered in a separate article.
Newcastle is a chemical manufacturing hub. The big steel works
of ArcelorMittal SA produce by-products such as ammonium sulphate,
and large companies such as Karbochem, Bayer, African Amines and
SA Calcium Carbide also operate in the area. ArcelorMittal SA turned a
profit in 2018 for the first time since 2010, based on increased demand
from other parts of Africa.
To take advantage of the existing strengths of cities and districts
in the province, a network of Industrial Economic Hubs (IEHs) is being
developed in KwaZulu-Natal. Leading the process is the Department
of Economic Development, Tourism & Environmental Affairs (DEDTEA).
A Halaal Manufacturing Park is being considered by DEDTEA,
finance institution Ithala, the South African National Halaal Authority
and business leaders.
Hulamin is a leader in aluminium finished products. The company
makes rolled products at Edendale, Pietermaritzburg and Camps Drift
while its Pietermaritzburg facility for making extrusions is one of the
three in the country.
The group headquarters of Africa’s biggest pharmaceutical
manufacturer, Aspen, are in La Lucia Ridge. German chemicals group
Lanxess has built a carbon dioxide concentration unit at its existing
plant in Newcastle. The company makes tanning raw materials at
Merebank in Durban and rubber chemicals in Isithebe north of Durban.
AECI has a big presence in the province under the Chemical Services
ONLINE RESOURCES
Aluminium Federation of South Africa: www.afsa.org.za
Chemical and Allied Industries’ Association: www.caia.co.za
Enterprise iLembe: www.enterpriseilembe.org.za
Manufacturing Circle: www. manufacturingcircle.co.za
Plastics SA: www.plasticsinfo.co.za
banner. Chemical Initiatives runs
an elemental-nutrient sulphur
plant in Umbogintwini. SA Paper
Chemicals operates a big plant
at Isithebe. Protea Chemicals,
has a large manufacturing plant
at Mobeni.
Sappi Saiccor's Umkomaas
plant is the biggest producer
of specialised cellulose in the
world with production edging
upwards every year towards
full capacity of 800 000 tons
per annum. Illovo Sugar
manufactures downstream
products such as furfural (used
in lubrication oil), furfuryl
alcohol, diacetyl (a flavouring
in margarine) and ethyl alcohol.
Kynoch makes fertilizer at
plants in Durban and Richards
Bay. Foskor's acid division
manufactures sulphuric acid,
phosphoric acid and granular
fertilizer in Richards Bay.
ChemSpec makes paint at
Canelands.
KwaZulu-Natal produces
nearly a third of South Africa’s
plastic requirements. Nampak
has several packaging facilities
in the province and MPact’s
Pinetown facility specialises
in FMCG containers. Macbean
Beier Plastics and PCI also
operate out of Pinetown.
Packaging and paper
group Mondi’s Richards Bay
mill and its paper plant at
Merebank are among the
province’s most significant
manufacturing sites.
51 KWAZULU-NATAL BUSINESS 2019/20
CREDIT BELL EQUIPMENT
OVERVIEW
Quality throughout
Automotive
Mahindra bakkies are being assembled at the Dube TradePort.
In 2018 AIH Logistics started assembling Mahindra and Bolero
SECTOR INSIGHT
bakkies With an from annual kits capacity imported of 60 000 from units India per year on a and site their at position the Dube as a globally respected extra heavy
TradePort. duty truck The design 5 000m² and manufacturing plant is owned company, by Automotive KAMAZ relies Investment on strong strategic • The partnerships Bag Ladies with have a
Holdings premium (AIH), original which component formed manufacturers AIH Logistics to specifically ensure quality, to deal and with the ongoing success new home of their on vehicles. the site of
the Mahindra contract.
a tow bar manufacturer.
The air-suspended seats and cabs create industry-leading comfort that drives productivity, safety and
The ensures intention driver satisfaction. is to make 2 500 bakkies per year, with an option
to expand production to 4 000 and to increase sales of bakkies in
the South Well matched African engines market. and The drivetrains company bolster sold performance 4 650 bakkies and in the 2018, ability to Richards deliver results Bay while facility stronger of heavyequipment
manufacturer Bell
about
fabricated
half of its
structures
vehicle
promote
sales in
durability.
South Africa.
Brink Towing Systems is not just supporting a local SMME, it Equipment, upwards of 11 000
is hosting one in its Pietermaritzburg factory. Brink has recently people are employed. Both
increased annual capacity to 100 000 units which will mean more companies are market leaders.
work
Industry
for The Bag Ladies, who
leading
produce protective
components
bags for the tow Bell is in the process of
bars. The Bag Ladies previously repaired clothing and did some bag transferring production of its
making, but with their own premises within the Brink facility (and current truck range to its factory
advice on business management and the purchase of industrialstrength
sewing machines), they can now set their sights higher. in size to accommodate the
in Germany, which will double
Brink’s largest customer is the Ford Ranger.
growing demand for trucks in
The Mathe Group’s tyre recycling plant at Hammarsdale has Europe and America. The shift
quickly increased capacity to 150 000 used truck tyres per year and will not affect employment
Over 2 million engines built Inter-wheel and inter-axle Durable ZF gearboxes deal with Air-conditioned ergonomic
intends prove going strength past and reliability. 200 000 differential soon. A lock quarter for increased of the harsh rubber environments. crumb levels cabs at with the air-suspended Richards seats Bay
product goes to Van Dyck Floors.
traction.
Other applications include modified site
for
because
operator comfort.
Bell will start
bitumen and as a component of artificial grass.
assembling Kamaz heavy-duty
www.bellequipment.com l 3
Toyota South Africa and Bell Equipment are manufacturing giants. trucks in 2019 for the African
Between the Toyota plant at Prospecton south of Durban and the market. Kamaz (pictured), a
KWAZULU-NATAL BUSINESS 2019/20
52
OVERVIEW
Russian brand that has won 14 Dakar rallies, is known for its reliability
in tough conditions. Bell’s intention is to increase the percentage
of local components over time.
Bell is best known for its heavy equipment which is primarily
used in the mining and construction sectors. The listed company
reported a 6% rise in revenue for the six months to June 2018, an
amount of R3.7-billion.
Toyota recently invested a further R6.1-billion into its already
very large plant at Prospecton. The company regularly sells about
a quarter of the vehicles sold in South Africa, and accounts for
the same proportion of export volumes. The Corolla car, the Hilux
bakkie and the Fortuner SUV are manufactured at the plant.
Powerstar, a Chinese state-owned brand, assembles trucks
in Pietermaritzburg on a site formerly used by Super Group.
The companies that make Powerstar in Asia are the China North
Vehicle Corporation (Norinco Motors) and BEIBEN, who produce
about 60 000 heavy-duty commercial duty vehicles every year
at their plant in Inner Mongolia.
Automotive components
KwaZulu-Natal has a substantial and varied automotive components
sector which includes large manufacturers such as Apollo Tyres and
GUD Filters. Thirty-nine companies are currently members of the
Durban Automotive Cluster which is funded by the municipality.
Together, these firms have about 17 000 employees.
In line with the policy of developing Industrial Economic Hubs,
the Durban Automotive Supplier Park is being built at Illovo, south
of Durban and near to the Toyota plant. The Dube TradePort
Corporation will manage the project, which covers 1 013ha. Other
partners are the eThekwini Municipality, Toyota and the provincial
government. The aim is to attract car assembly and component
manufacturing companies.
Trade and Investment KwaZulu-Natal (TIKZN) estimates that
the province's component automotive manufacturers enjoy a
combined turnover approaching R10-billion.
ONLINE RESOURCES
Automotive Industry Development Centre: www.aidc.co.za
Africa (NAAMSA): www.naamsa.co.za
Durban Automotive Cluster: www.dbnautocluster.org.za
Manufacturers (NAACAM): www.naacam.co.za
National Association of Automotive Component and Allied
National Association of Automobile Manufacturers of South
Keeping MAN and Toyota supplied
is the R300-million operation,
Duys Engineering Group.
This diverse group of companies
includes in its business plan the
supply of truck bodies and truck
components and has production
plants at New Germany
(Pinetown) and Richards Bay,
from where it services the mining
industry. Toyota Boshoku
manufactures seats and does
the interior trim on contract for
Toyota.
International company GUD
Filters has a big presence in
the province. Headquartered in
Prospecton, where more than
1 500 people work at one of
its factories, the company has
another plant in Pietermaritzburg
and a distribution centre in
Pinetown that concentrates on
exports.
Indian-owned Apollo Tyres SA
makes Dunlop products at two
large factories in the province:
truck tyres are made in Durban
where 840 workers are employed
and a passenger car tyre plant in
Ladysmith (1160 employees). The
Durban factory devotes 40% of
production to supplying the truck
and earthmoving market. Both
plants make about 25 000 tons of
tyres with half of the passenger
tyres being exported.
The Behr Group (airconditioning
and cooling systems)
has a factory and its headquarters
in Durban. Ramsay Engineering
supplies cross-car beams for BMW
and Ford. Funding was received
from the Industrial Development
Corporation (IDC) to buy new
tool-making technology to make
this possible.
53
KWAZULU-NATAL BUSINESS 2019/20
OVERVIEW
ICT
Port Shepstone has a new incubator.
SECTOR INSIGHT
Dube iConnect is an accredited
service provider.
A
SmartXchange SMME Incubator has been launched in Port
Shepstone on the South Coast. The concept of ICT has been
expanded to include media and electronics, so the hub is
called an MICTe Incubator.
The province’s SmartXchange is an example of a successful publicprivate
partnership that supports businesses in the information
technology and communications sector. Incubation strategies for startups
and skills development (including links to educational institutions)
are important parts of the organisation’s brief. After the successful
launch of the first such incubator outside Durban in the Ray Nkonyeni
Local Municipality, there are now plans to establish three more, at
Newcastle, Richards Bay and Pietermaritzburg.
Spending on information and communications technology (ICT)
has been steadily increasing in the private and public sectors in recent
years in KwaZulu-Natal.
The eThekwini Metropolitan Municipality, which administers
Durban, has actively been promoting ICT since the launch of its
MetroConnect programme in 2008. A key component of the strategy
has been the sale at hugely discounted rates of spare capacity on the
municipal fibre network.
The Dube TradePort (pictured) has spent more than R100-million on
ICT infrastructure that includes two data centres. Dube iConnect has
a licence from the Independent Communications Authority of South
Africa to be a service provider. An advanced metro Ethernet network
connects businesses within the precinct and surrounding areas with
one another and with the world.
ONLINE RESOURCES
Dube TradePort: www.dubetradeport.co.za
Information Technology Association of South Africa:
www.ita.org.za
SmartExchange: www.smartxchange.co.za
South African Vanguard of Technology: www.savant.co.za
KwaZulu-Natal has an established
skills base in microprocessors and
radio-based systems and a strong
manufacturing base.
Some companies within the
domestic sector specialise in supporting
specific systems. In the case of
Pinetown-based RN Software, support
is provided for Syspro, an enterprise
resource software (ERP) system most
commonly applied to manufacturing
and logistics to enhance performance
and control costs.
South African Vanguard
of Technology (Savant) is a
Department of Trade and Industry
(dti) programme. It is the marketing
and awareness programme for the
South African ICT and electronics
sector. The aim is to develop South
African exports and to attract foreign
investment.
The State Information Technology
Agency (SITA) is a state-owned
enterprise that provides ICT services
to government and leads projects
in the sector.
Sentech is the state agency that
provides broadband infrastructure
and signals for the country's
broadcasters. Internet connectivity
is provided to government
departments, municipalities and
other institutions through a VSAT
service.
KWAZULU-NATAL BUSINESS 2019/20
54
Education and training
University research is linked to development issues.
OVERVIEW
The reputation of the University of KwaZulu-Natal (UKZN) as a
leading research institution was enhanced in 2018 with the
opening of a Chemistry Postgraduate Research Facility at the
School of Chemistry and Physics in Pietermaritzburg.
The university aims to align its research programme with important
areas of development such as food security, health, liveable cities and
climate change. The R30-million facility was funded mainly by the
National Department of Higher Education and Training (DHET). UKZN
also hosts the National Research Foundation.
There are two universities and two universities of technology in
KwaZulu-Natal, and the national distance university, the University of
South Africa (Unisa), has a presence in five locations. USB Executive
Development offers business courses for executives.
The Durban University of Technology (DUT) has six faculties
operating in seven campuses in Durban and in the Midlands. DUT is
well known for its outstanding graphic-design school and offers one
of only two chiropractic programmes in South Africa.
The University of Zululand offers diploma and degree courses on
two campuses at Empangeni and Richards Bay.
The unbundling from the successful Curro group of a separate
tertiary entity which listed on the JSE as Stadio Holdings is a good
indicator of the growth of the private sector in education. Stadio
currently has three institutions: Southern Business School, AFDA (the
School for the Creative Economy) and the Embury Institute for Higher
Education which has recently opened a campus in Musgrave, Durban.
There are six Curro schools in KwaZulu-Natal.
Advtech, the other big private company, has 27 tertiary campuses
nationally, in addition to its 78 schools operating under a variety of
labels. Advtech operates 10 educational sites in KwaZulu-Natal.
The Provincial Government of KwaZulu-Natal, through the national
Expanded Public Works Programme (EPWP) and other job creation
programmes has committed to providing training to marginalised
ONLINE RESOURCES
Independent Schools Association of Southern Africa:
www.isasa.org
KwaZulu-Natal Department of Education:
www.kzneducation.gov.za
National Research Foundation: www.nrf.ac.za
SECTOR INSIGHT
Training is part of the Expanded
Public Works Programme.
communities to help people
become more employable. In
2018, more than 41 000 full-time
equivalent jobs and 166 000 work
opportunities were offered, and
this is set to increase.
Technical and Vocational
Education and Training (TVET)
Colleges are tasked with bridging
the skills gap. TVET colleges are
concentrating on 13 trade areas,
including bricklayers, millwrights,
boilermakers and riggers. KwaZulu-
Natal has nine such colleges with
a total enrolment of about 80 000.
R16.5-billion has been allocated
by national government to skills
development and infrastructure
over the medium term.
Coastal KZN TVET College gives
students practical experience
through facilities such as the
Nongalo Industrial Park, where
school furniture is repaired, and
burglar bars and computer tables
are made. The college has several
sites on the South Coast and caters
for 15 400 students.
Majuba TVET College focuses
on engineering as the coal and
steel industries are prominent in
Newcastle. The Mnambithi TVET
College is located in the Battlefields
Route tourism area and offers
National Diploma courses in tourism,
among other qualifications.
55
KWAZULU-NATAL BUSINESS 2019/20
OVERVIEW
Banking and financial services
New banks are changing the face of the sector.
When Capitec was granted a banking licence in 1999, it was
a rare event. Since 2017, a number of new entrants have
started to change the face of South African banking.
Tyme, or Take Your Money Everywhere, was granted
a licence in 2017.
Other prospective new banks are state-related enterprises: Ithala,
Postbank and a Human Settlements Development Bank. The Ithala
Development Finance Corporation has functioned for many years in
the province as the provider of funds for small enterprises, especially
in areas where infrastructure is poor and access to traditional banking
services is not good. The provincial government, which runs Ithala,
wants to launch it as a bank.
Three state entities are merging to create the new Human
Settlements Development Bank: the National Housing Finance
Corporation, the Housing Loan Fund and the National Urban
Reconstruction and Housing Agency.
The focus will be on financing housing for poorer households and
for large state-funded housing projects. Part of the drive is to integrate
cities better and to combat the legacy of the spatial divide that apartheid
left behind. Private sector investment will be sought.
The Chartered Institute of Government Finance, Audit and Risk Officers
ONLINE RESOURCES
Association for Savings and Investment South Africa:
www.asisa.org.za
Chartered Institute of Government Finance, Audit and Risk
Officers: www.cigfaro.co.za
Financial Sector Conduct Authority: www.fsca.co.za
Insurance Institute of South Africa (KwaZulu-Natal):
www.iikzn.co.za
South African Institute for Chartered Accountants:
www.saica.co.za
SECTOR INSIGHT
Cigfaro's annual conference is
in Durban in 2019.
(Cigfaro) advises institutions, trains
its members in public finance
and promotes the interests of
professionals in the public sector.
It also develops and assesses
qualifications and advises tertiary
institutions on the requirements for
course. Cigfaro also runs Public Sector
Audit and Risk training sessions and
the national conference will be held
in Durban in October 2019.
The South African Institute for
Chartered Accountants International
will provide training in KwaZulu-
Natal (Umhlanga) in financial
reporting standards for SMMEs
while the the Insurance Institute of
KwaZulu-Natal (IISA) holds regular
education workshops. One such
meeting, a legislative workshop, is
jointly hosted by IISA, the Financial
Sector Conduct Authority and the
South African Institute for Chartered
Accountants. The institute’s
mentorship programme is run in
association with the Musifunde
Training Centre.
KWAZULU-NATAL BUSINESS 2019/20
56
Development finance and
SMME support
OVERVIEW
Support is available for entrepreneurs.
A
small business can become a substantial business quite
quickly with the right support. Programmes such as the Black
Umbrellas offer different levels of support, from early advice
about business plans through office support to mentoring.
Civtech Engineers, a Richards Bay consultancy, has grown its
revenue and staffing levels as a result of being on the full incubation
programme of Black Umbrellas.
Agriculture is the focus of a wide-ranging initiative in the Ulundi
district. A grouping called ULUMA has been formed which aims to help
farmers, SMMEs and co-operatives to benefit in a holistic way from the
produce they farm. The Zululand District Farmers Association, several
other NGOs and Standard Bank are working together with the likes of
Mangosuthu University of Technology (MUT) and the Innovation and
Technology Business Incubator (Invotech) to expose farmers to new
issues and techniques.
Operation Vula is a provincial government initiative to ensure
that co-operatives and small businesses get a leg-up into the formal
economy through state-led infrastructure programmes that assist
them, and through procurement policies that favour them.
The Coastal KZN TVET College has been training members of cooperatives
and people working in small, medium and micro-enterprises
(SMMEs) in the skills that will help them do well in business.
The Small Enterprise Development Agency (Seda) is active in
supporting entrepreneurs. Seda gives non-financial support through
training, assistance with filling in forms, marketing and creating
business plans.
In KwaZulu-Natal, Seda runs 12 Incubators which either help new
businesses get started or with the rehabilitation of existing enterprises.
ONLINE RESOURCES
KwaZulu-Natal Department of Economic Development and
Tourism: www.kznedtea.gov.za
National Department of Small Business Development:
www.dsbd.gov.za
Small Enterprise Development Agency: www.seda.co.za
Small Enterprise Finance Agency: www.sefa.org.za
SECTOR INSIGHT
The Coastal KZN TVET College
offers business skills training.
Three models are used: Technology
Demonstration Centres (demonstration
and training); Technology
Incubators (where the focus is rehabilitation);
and Hybrid Centres,
which combine elements of the
other two models. The KwaZulu-
Natal incubators include ICT and
construction (three centres each),
furniture and hi-tech (two each),
chemicals and essential oils.
The IDC provides finance across
a range of sectors from agriculture
to tourism. It has holdings in several
companies with a presence in
KwaZulu-Natal: 42.6% in Hans
Merensky (Pty) Ltd, a plantation
and timber mill operator; 100%
in Prilla 2000, a cotton-milling
operation; and 85% in Foskor,
which has a phosphoric acid plant
in Richards Bay.
All of the major banks have
SMME offerings. Nedbank has an
enterprise-development product
that supports businesses with a
turnover up to R35-million with at
least 25% black ownership.
Toyota South Africa Motors is
funding the newly created Toyota
Empowerment Trust (TET) to the
tune of R42-million.
57 KWAZULU-NATAL BUSINESS 2019/20
INTERVIEW
Selfmed Medical Scheme
Christo Becker, the Principal Officer at Selfmed Medical Scheme,
outlines the advantages of a self-administered scheme.
Christo Becker
BIOGRAPHY
Christo started his 21-year
career in healthcare as a
paramedic in Fire and Disaster
Management Services. In 2001
he completed an MBA with the
intention of moving his career
towards hospital management.
He has worked as hospital
manager in several private
facilities. His passion for people
and strategy has ensured that the
hospitals he has managed have
grown rapidly while focusing
on sustainability. With selfmotivation
and a commitment to
continual improvement, Christo
implements positive changemanagement.
How did Selfmed begin and how has it evolved?
The Scheme initially formed part of the Sanlam Life Insurance stable, created
in 1965 and formally registered in 1972. This makes Selfmed one of the most
experienced medical aid schemes in the industry. At Selfmed we have a handson
approach, and this resulted in our taking control of our own Client Services
Centre, or Excellence Centre in 2006. We thereafter progressed to taking over
the full administration function in 2010; also recently bringing our Managed
Healthcare inhouse.
What is your market?
Historically membership comprised individuals and their families. The introduction
of the Selfnet options in 2015 and 2016 allowed us to reach a younger
audience. This was also the opportunity to branch out into corporate marketing,
offering membership to blue-collar employees. We have seen great success in
this area.
Is there flexibility for clients?
The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med
XXI, and Selfnet and Selfnet Essential. Each product is designed specifically for
a life stage, as the needs of a member changes. As the person advances in life
and starts a family they will move towards the Med XXI or Selfsure options, for
example, which have a wider range of benefits relevant to a young family.
How is Selfmed handling ever-rising costs?
The biggest challenge facing the healthcare industry is the significant rise in
healthcare costs, with healthcare inflation exceeding general inflation. This
compels us to proactively introduce mechanisms to manage these costs. Selfmed
is applying machine learning to the claims database to draw a more accurate
picture of a member’s specific needs. The information can then be used to
engage members on an individual basis – if we can intervene early it is to the
benefit of all parties.
How does Selfmed Medical Scheme differentiate from its
competitors?
In a traditional medical aid/administrator environment all administered functions
rest with an administrator. As such, a medical aid would be fully dependent on
its outsourced administrator to inform it of any issues relating to its members.
Being fully self-administered allows Selfmed to take total ownership of all its
member interactions and address any administrative problems or complaints
immediately. We do not have an electronic routing system; you speak to an
individual. This personalised hands-on approach is fundamental to our model
of building a credible member experience.
KWAZULU-NATAL BUSINESS 2019/20
58
KwaZulu-Natal Provincial
Government
LISTING
A guide to KwaZulu-Natal’s provincial government departments. All addresses are located
in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kznonline.gov.za.
Office of the Premier
Premier: Sihle Zikalala
5th Floor, Telkom Building, 300 Langalibalele Street
Tel: +27 33 341 3300
Fax: +27 33 331 7368
Agriculture and Rural Development
MEC: Bongiwe Nomusa Sithole-Moloi
Cedara College, Cedara Road
Tel: +27 33 335 9100
Fax: +27 33 343 8255
Website: www.kzndard.gov.za
Arts and Culture
MEC: Hlengiwe Goodness Slindile Mavimbela
222 Jabu Ndlovu Street
Tel: +27 33 264 3400
Fax: +27 33 394 2237
Website: www.kzndac.gov.za
Community Safety and Liaison
MEC: Thomas Mxolisi Kaunda
179 Jabu Ndlovu Street
Tel: + 27 33 341 9300
Fax: + 27 33 342 6345
Website: www.kzncomsafety.gov.za
Cooperative Governance and Traditional
Affairs
MEC: Sipho Hlomuka
330 Langalibalele Street
Tel: +27 33 395 2831
Fax: +27 33 345 6432
Website: www.kzncogta.gov.za
Economic Development, Tourism and
Land Affairs
MEC: Nomsa Dube-Ncube
270 Jabu Ndlovu Street
Tel: +27 33 264 2500 | Fax: +27 331 310 5416
Website: www.kzndedt.gov.za
Education
MEC: Kwazikwenkosi Innocent Mshengu
Anton Lembede Building, 247 Burger Street
Tel: +27 33 846 5000 | Fax: +27 33 355 1293
Website: www.kzneducation.gov.za
Health
MEC: Nomagugu Simelane-Zulu
1st Floor, 330 Langalibalele Street
Tel: +27 33 395 2111
Website: www.kznhealth.gov.za
Human Settlements and Public Works
MEC: Neliswa Peggy Nkonyeni
203 Church Street
Tel: +27 33 392 6400 | Fax: +27 33 392 6490
Website: www.kznworks.gov.za
Provincial Treasury
MEC for Finance: Ravigasen Ranganathan Pillay
Treasury House, 145 Chief Albert Luthuli Street,
Tel: +27 33 897 4200 | Fax: +27 33 342 2486
Website: www.kzntreasury.gov.za
Sport and Recreation
MEC: Hlengiwe Goodness Slindile Mavimbela
135 Pietermaritz Street
Tel: +27 33 897 9400
Website: www.kzn.dsr.gov.za
Social Development
MEC: Nonhlanhla Mildred Khoza
208 Hoosen Haffejee Street
Tel: +27 33 264 5402
Fax: +27 33 341 9610
Website: www.kzndsd.gov.za
Transport
MEC: Thomas Mxolisi Kaunda
172 Burger Street
Tel: + 27 33 355 8600
Fax: + 27 33 355 8092
Web: www.kzntransport.gov.za
LISTING
KwaZulu-Natal Local Government
A guide to KwaZulu-Natal's municipalities.
ETHEKWINI METROPOLITAN MUNICIPALITY
263 Dr Pixley ka Seme Street, Durban 4001
Tel: +27 31 311 1111 | Fax: +27 31 311 2170
Website: www.durban.gov.za
AMAJUBA DISTRICT MUNICIPALITY
Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township,
Newcastle 2940
Tel: +27 34 329 7200 | Fax: +27 34 314 3785
Website: www.amajuba.gov.za
Dannhauser Municipality
Tel: +27 34 621 2666 | Fax: +27 34 621 3114
Website: www.dannhauser.gov.za
eMadlangeni (Utrecht) Municipality
Tel: +27 34 331 3041 | Fax: +27 34 331 4312
Website: www.emadlangeni.gov.za
Newcastle Municipality
Tel: +27 34 328 7600 | Fax: +27 34 312 1570
Website: www.newcastle.gov.za
HARRY GWALA DISTRICT MUNICIPALITY
40 Main Street, Ixopo 3276
Tel: +27 39 834 8700
Fax: +27 39 834 1701
Website: www.harrygwaladm.gov.za
Dr Dlamini Zuma Municipality
Tel: + 27 39 833 1038 | Fax: + 27 39 833 1179
Website: www.ndz.gov.za
Greater Kokstad Municipality
Tel: +27 39 797 6600 | Fax: +27 39 727 5501
Website: www.kokstad.gov.za
uBuhlebezwe Municipality
Tel: +27 39 834 7700 | Fax: +27 39 834 1168
Website: www.ubuhlebezwe.gov.za
uMzimkhulu Municipality
Tel: +27 39 259 5000 | Fax: +27 39 259 0427
Website: www.umzimkhululm.gov.za
ILEMBE DISTRICT MUNICIPALITY
59/61 Mahatma Gandhi St, KwaDukuza 4450
Tel: +27 32 437 9300 | Fax: +27 32 437 9587
Website: www.ilembe.gov.za
KwaDukuza Municipality
Tel: +27 32 437 5000
Fax: +27 32 437 5098
Website: www.kwadukuza.gov.za
Mandeni Municipality
Tel: +27 32 456 8200
Fax: +27 32 456 2504
Website: www.mandeni.gov.za
Maphumulo Municipality
Tel: +27 32 481 4500
Fax: +27 32 481 2053
Website: www.maphumuloonline.gov.za
Ndwedwe Municipality
Tel: +27 32 532 5000
Fax: +27 32 532 5031/2
Website: www.ndwedwe.gov.za
KING CETSHWAYO DISTRICT MUNICIPALITY
King Cetshwayo House, Kruger Rand Rd, Richards Bay 3900
Tel: +27 35 799 2500
Fax: +27 35 789 1641
Website: www.kingcetshwayo.gov.za
City of uMhlathuze Municipality
Tel: +27 35 907 5000 | Fax: +27 35 907 5444
Website: www.umhlathuze.gov.za
KWAZULU-NATAL BUSINESS 2019/20
60
LISTING
Mthonjaneni Municipality
Tel: +27 35 450 2082 | Fax: +27 35 450 3224
Website: www.mthonjaneni.org.za
Nkandla Municipality
Tel: +27 35 833 2000 | Fax: +27 35 833 0920
Website: www.nkandla.org.za
uMfolozi Municipality
Tel: +27 35 580 1421 | Fax: +27 35 580 1141
Website: www.umfolozi.gov.za
uMlalazi Municipality
Tel: +27 35 473 3300 | Fax: +27 35 474 4733
Website: www.umlalazi.gov.za
UGU DISTRICT MUNICIPALITY
28 Connor Street, Port Shepstone 4240
Tel: +27 39 688 5700 | Fax: +27 39 682 1720
Website: www.ugu.gov.za
Ray Nkonyeni Municipality
Tel: +27 39 688 2000 | Fax: + 27 39 682 0327
Web: www.rnm.gov.za
Umdoni Municipality
Tel: +27 39 978 4313 | Fax: +27 39 976 2020
Website: www.umdoni.gov.za
uMuziwabantu Municipality
Tel: +27 39 433 3500 | Fax: +27 39 433 1208
Website: www.umuziwabantu.gov.za
Umzumbe Municipality
Tel: +27 39 972 0005 | Fax: +27 39 972 0099
Website: www.umzumbe.gov.za
UMGUNGUNDLOVU DISTRICT
MUNICIPALITY
242 Langalibalele Street, Pietermaritzburg 3201
Tel: +27 33 897 6700
Fax: +27 33 342 5502
Website: www.umdm.gov.za
Impendle Muncipality
Tel: +27 33 996 6000 | Fax: +27 33 996 0852
Website: www.impendle.gov.za
Mkhambathini Municipality
Tel: +27 31 785 9300 | Fax: +27 31 785 2121
Website: www.mkhambathini.gov.za
Mpofana Municipality
Tel: +27 33 263 1221 | Fax: +27 33 263 1127
Website: www.mpofana.gov.za
Msunduzi Municipality
Tel: +27 33 392 3000 | Fax: +27 33 345 2397
Website: www.msunduzi.gov.za
Richmond Municipality
Tel: +27 33 212 2155 | Fax: +27 33 212 2102
Website: www.richmond.gov.za
uMngeni Municipality
Tel: +27 33 239 9200
Fax: +27 33 330 4183
Website: www.umngeni.gov.za
uMshwathi Municipality
Tel: +27 33 816 6800
Fax: +27 33 502 0286
Website: www.umshwathi.gov.za
61
KWAZULU-NATAL BUSINESS 2019/20
LISTING
UMKHANYAKUDE DISTRICT MUNICIPALITY
Stand 13433, Kingfisher Road, Mkuze 3965
Tel: +27 35 573 8600 | Fax: +27 35 573 1094
Website: www.ukdm.gov.za
Big 5 Hlabisa Municipality
Tel: +27 35 838 8500 | Fax: +27 35 838 1015
Jozini Municipality
Tel: +27 35 572 1292 | Fax: +27 35 572 1266
Website: www.jozini.gov.za
Mtubatuba Municipality
Tel: +27 35 550 0069 | Fax: +27 35 550 0060
Website: www.mtubatuba.org.za
uMhlabuyalingana Municipality
Tel: +27 35 592 0680 | Fax: +27 35 592 0672
Website: www.umhlabuyalingana.gov.za
UMZINYATHI DISTRICT MUNICIPALITY
Princess Magogo Bld, 39 Victoria St, Dundee 3000
Tel: +27 34 219 8000 | Fax: +27 34 219 1940
Website: www.umzinyathi.gov.za
Endumeni Municipality
Tel: +27 34 212 2121 | Fax: +27 34 212 3856
Website: www.endumeni.gov.za
Msinga Municipality
Tel: +27 33 493 0761 | Fax: +27 33 493 0766
Website: www.msinga.org.za
Nquthu Municipality
Tel: +27 34 271 6100 | Fax: +27 34 271 6111
Website: www.nquthu.gov.za
uMvoti Municipality
Tel: +27 33 413 9100 | Fax: +27 33 417 1393
Website: www.umvoti.gov.za
UTHUKELA DISTRICT MUNICIPALITY
33 Forbes Street, Ladysmith 3370
Tel: +27 36 638 5100 / 2400 | Fax: +27 36 637 5608 / 635 5501
Website: www.uthukela.gov.za
Alfred Duma Municipality
Tel: +27 36 637 2231 | Fax: +27 36 631 1400
Website: www.alfredduma.gov.za
Inkosi Langalibalele Municipality
Tel: +27 36 353 0693/0681/0691 | Fax: +27 36 353 6661
Website: www.umtshezi.co.za
Okhahlamba Municipality
Tel: +27 36 448 8000 | Fax: +27 36 448 1986
Website: www.okhahlamba.org.za
ZULULAND DISTRICT MUNICIPALITY
B400 Gagane Street, Ulundi 3838
Tel: +27 35 874 5500
Fax: +27 35 874 5589
Website: www.zululand.org.za
Abaqulusi Municipality
Tel: +27 34 982 2133 | Fax: +27 34 980 9637
Website: www.abaqulusi.gov.za
eDumbe Municipality
Tel: +27 34 995 1650 | Fax: +27 34 995 1192
Website: www.edumbe.gov.za
Nongoma Municipality
Tel: +27 35 831 7500 | Fax: +27 35 831 3152
Website: www.nongoma.org.za
Ulundi Municipality
Tel: +27 35 874 5100 | Fax: +27 35 870 1164
Website: www.ulundi.gov.za
uPhongolo Municipality
Tel: +27 34 413 1223
Fax: +27 34 413 1706
Website: www.uphongoloonline.gov.za
KWAZULU-NATAL BUSINESS 2019/20
62
SAVE THE DATE
FUTURE EVENTS
East london icc
AUDIT&RISK
INDABA
10-12
april
2019
PUBLIC SECTOR
FINANCE GRAP
SEMINAR
8-9 JULY 2019
EKURHULENI
7-9 OCTOBER 2019
CIGFARO
ANNUAL
CONFERENCE
dURBAN icc
INDEX
INDEX
Agribusiness Development Agency (ADA)..............................................................................32
Black Umbrellas..................................................................................................................................17
Chartered Institute of Finance Audit and Risk Officers (CIGFARO)..................................63
Durban Chamber of Commerce and Industry.......................................................................... 2
Durban International Convention Centre (Durban ICC) ....................................................... 7
Enterprise iLembe.............................................................................................................................22
Invest Durban.................................................................................................................................. IFC
Kemtek Imaging Systems.......................................................................................................... 9, 35
Mondi Group South Africa...................................................................................................... 37-41
Nedbank........................................................................................................................................ 24-27
Petroleum Agency SA......................................................................................................................15
RN Software....................................................................................................................................... IBC
Selfmed......................................................................................................................................58, OBC
Transnet Pipelines...................................................................................................................... 45-47
University of Zululand ...................................................................................................................... 5
KWAZULU-NATAL BUSINESS 2019/20
64
LEVEL1 B-BBEE
CONTRIBUTOR
RN Software is the largest SYSPRO value-added
reseller in KwaZulu-Natal with offi ces in Durban and
Sandton with the vision of becoming the largest
reseller nationally.
We assess and determine corrective action in the IT
sector supplying ERP services to government agencies
and mid to large-sized businesses.
We specialize in industry-specifi c consulting, IT
services, ERP business process implementation,
infrastructure and full development centre.
We have completed in excess of 130 installed sites.
We specialize in niche software and mobile
application development to provide an end-to-end
business digitalization that integrates fully with
SYSPRO ERP system.
We programme current business reporting into
business intelligence and graphical dashboards
integrated into the ERP. We provide analytical business
insights and sequential upgrades to SYSPRO version 8.
Industry and target market, specialising in
manufacturing and distribution: automotive
parts and accessories, industrial machinery
and equipment, metal fabrication, electronic
manufacture, plastic and rubber manufacturing,
food and beverage manufacture and distribution,
and packaging manufacturing.
SERVICE
OFFERINGS
SERVICE OFFERINGS
• Business process modelling
• Gap analysis
• System integration
• Project management
• Operating procedure manuals
• Classroom-style training
• Call centre
• SYSPRO version 8 upgrades
• Programming with the use
of SYSPRO API
• Barcode scan solution
• Mobile services
• Web interface trading
CONTACT US
Durban:
15 Paradise Place I Cowies Hill I Pinetown
Sandton:
42 Tenth Avenue I Rivonia I Sandton
+27 (31) 702 6087 | info@rnsoftware.co.za | mnayagar@rnsoftware.co.za
www.rnsoftware.co.za
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