KwaZulu-Natal Business 2019-20 edition

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/

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/


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<strong><strong>20</strong>19</strong>/<strong>20</strong> EDITION<br />




New team boosts<br />

Durban’s prospects<br />

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

Durban has the perfect mix for investors.<br />

Team Durban has a new and dynamic team to<br />

drive investment into the city. In September<br />

<strong>20</strong>18, eThekwini Mayor Zandile Gumede inducted<br />

the new members of Team Durban.<br />

The team will provide strategic Foreign Direct<br />

Investment (FDI) advice to the city leadership and the<br />

new Invest Durban Unit on business and investment<br />

promotion matters.<br />

Mayor Gumede thanked the newly nominated<br />

members of the team for agreeing to help accelerate<br />

investment growth while looking to improve the<br />

business environment of the city region.<br />

The Deputy City Manager of Economic Development<br />

and Planning Phillip Sithole will provide liaison and administrative<br />

support to Team Durban. Sithole will also<br />

provide progress reports to council on the functioning<br />

and outputs of Team Durban. Members of the Team<br />

Durban Advisory Forum from the Municipality comprise<br />

eThekwini Mayor Zandile Gumede, who will serve as the<br />

Chairperson of the Forum, Chairperson of the Economic<br />

Development and Planning Committee Sipho Kaunda,<br />

and City Manager Sipho Nzuza.<br />

The external members are representatives of some<br />

the biggest business in the city as well as representatives<br />

from civil society, including youth and academia.<br />

They are: Suben Moodley, Senior Vice President for<br />

Corporate Affairs Toyota South Africa; Mike Deighton,<br />

Managing Director Tongaat Hulett Developments;<br />

Themba Ngcobo, Founder and Director Exel Petroleum;<br />

Musa Makhunga, Managing Director of HR Matters and<br />

President of the Durban Chamber of Commerce and<br />

Industry; Sandile Zungu, Corporate Director Zungu<br />

Investments Company Limited (ZICO); Steven Saad, Chief<br />

Executive of Aspen Pharmacare; Mlungisi Ntombela,<br />

General Manager eThekwini Disability Sport Forum;<br />

Faisal Mkhize, KZN Provincial Managing Executive of<br />

Absa; Zanamuhla Khanyile, Department of Correctional<br />

Services; Samukelisiwe Nzimande, Managing Director<br />

K2M Financial Services; Howard Arrand, Provincial Head<br />

FNB; Manto Madlala, acting CEO Premier Soccer League;<br />

Thulisa Ndlela Chair of Ayigobi Investments.<br />

The non-executive members have been appointed<br />

to serve on Team Durban for a period of three years<br />

effective from 1 July <strong>20</strong>18 to 30 June <strong>20</strong>21.

Their service will be on a voluntary basis but the<br />

municipality will cover their travel and accommodation<br />

expenses where required and in accordance with travel<br />

policy.<br />

At the function to introduce the new team, Russell<br />

Curtis, Head of Department, Invest Durban said, “Team<br />

Durban marks the further sophistication of the city.”<br />

He explained that the goal of Team Durban was to<br />

improve partnerships and strengthen relationships<br />

between different sectors in society. This forum he<br />

said was a significant step change for Durban and in<br />

line with global best practice.<br />


Durban’s investment agency has a refreshed brand<br />

name of “Invest Durban”. A partnership between the<br />

Metro City Council and the private business sector,<br />

Invest Durban offers a free investor advisory service<br />

plus key promotion, facilitation, aftercare services<br />

between all investment stakeholders.<br />

Invest Durban was recommended by the Durban<br />

City Council and organised private business as the<br />

“First Stop Shop” to stimulate economic growth and<br />

new investment in the Durban metropolis.<br />

Main Purpose<br />

To facilitate sustainable investment in Durban for<br />

the benefit of all through the:<br />

• expansion, retention and aftercare of existing<br />

foreign corporate business<br />

• proactive investment promotion and marketing<br />

of Durban Metro<br />

• proactive connection to, and marketing of the<br />

city’s large investment projects<br />

• attraction of prospective new foreign investors<br />

Invest Durban works closely with the Department<br />

of Trade and Industry including Invest SA, Trade and<br />

Investment KZN (TIKZN), the Durban Chamber of<br />

Commerce and Industry, the KZN Growth Coalition,<br />

and State-Owned-Enterprises such as Dube<br />

TradePort, the DBSA, IDC, Eskom and others. Key<br />

partners include the largest banks, audit and advisory<br />

firms, plus sector-based organised business bodies<br />

working in concert to promote investment in Durban.<br />

Physical address: Invest Durban,<br />

eThekwini Municipality<br />

11th Floor, 41 Margaret Mncadi Avenue<br />

Durban 4001, South Africa<br />

Tel: +27 31 311 4227<br />

Email: invest@durban.gov.za<br />

Website: www.invest.durban

EST 1856<br />









The Durban Chamber of Commerce and Industry was established in 1856 and is<br />

the oldest and largest metropolitan chamber in Africa. As a business-based and<br />

member-focused organisation, we work to protect and promote the interests of<br />

the eThekwini business community.<br />

VISION<br />

In <strong>Business</strong> for a Better World<br />

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

business in the eThekwini Municipal area and beyond.<br />


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

the eThekwini Municipal area and beyond, as well as providing services specifically<br />

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


#DURBANMUSTRISE - the Durban Chamber official hashtag - signifies working<br />

towards achieving joint goals to move local businesses forward. The Durban Chamber<br />

represents leading multi-nationals; large corporates; small, medium and micro-sized<br />

enterprises (SMMEs); and start-ups in promoting inclusive and sustainable economic<br />

growth and development in eThekwini and beyond.<br />























DATA<br />




(ADR)<br />


Chamber Square, Lion Match<br />

Office Park, 892 Umgeni Rd<br />

Durban, 4001<br />

www.durbanchamber.co.za +27 31 335 1000


Introduction<br />


<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> <strong><strong>20</strong>19</strong>/<strong>20</strong> Edition<br />

Foreword8<br />

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

Special features<br />

Regional overview of <strong>KwaZulu</strong>-<strong>Natal</strong> 10<br />

The oceans economy holds great promise in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Investors are showing confidence in the<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> economy 14<br />

Private and public entities are expanding operations and creating<br />

new opportunities.<br />

Massive investments in tourism are paying off 18<br />

New direct international flights, upgraded facilities and new<br />

hotels all point to growing confidence in the tourism sector.<br />

Economic sectors<br />

Agriculture30<br />

New crops are adding to the export basket.<br />

Sugar31<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> leads in sugar production.<br />

Forestry and paper 34<br />

Diversification is a growing trend.<br />

Mining42<br />

Second smelter to be activated at Isithebe foundry.<br />

Engineering43<br />

Construction is booming north of Durban.<br />

Oil and gas 44<br />

Italian company Eni has offshore prospecting rights.<br />

Construction and property 48<br />

Infrastructure and multi-use developments are forging ahead.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


• We boast of producing graduates who have gone on to occupy key positions<br />

both in public and private sectors<br />

• We undertake research relevant to local communities<br />

• We have the best Science Centre in Africa<br />

<strong><strong>20</strong>19</strong> Graduation Period: 13 – 17 May <strong><strong>20</strong>19</strong><br />

University Chancellor: Proud Alumnus, his Honourable Deputy<br />

Chief Justice, Judge Raymond Zondo<br />



Water49<br />

South Africa’s first mobile desalination plant has been installed.<br />

Manufacturing50<br />

The Blue and Green economies hold potential for KZN<br />

manufacturers.<br />

Automotive 52<br />

Mahindra bakkies are being assembled at the Dube TradePort.<br />

ICT54<br />

Port Shepstone has a new incubator.<br />

Education and training 55<br />

University research is linked to development issues.<br />

Banking and financial services 56<br />

New banks are changing the face of the sector.<br />

Development finance and SMME support 57<br />

Support is available for entrepreneurs.<br />

Government<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Provincial Government 59<br />

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

departments.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Local Government 60<br />

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

municipalities.<br />

References<br />

Sector contents 28<br />

Index64<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />







The Durban International Convention Centre (DURBAN<br />

ICC) has over the past 21 years facilitated socio-economic<br />

transformation and contributed billions of rands into South<br />

Africa's Gross Domestic Product (GDP).<br />

As a pioneer in the South African events sector,<br />

the DURBAN ICC continues to excel in driving local<br />

economic growth, having contributed over R4.7 billion<br />

to the country's GDP last year while creating inspiring<br />

convention, exhibition and entertainment experiences for<br />

its guests.<br />

The vast majority of this impact was felt in <strong>KwaZulu</strong>-<strong>Natal</strong>,<br />

where R4.6 billion was added to our Gross Geographic<br />

Product. The DURBAN ICC remains committed to<br />

broadening the economic impact of the events and<br />

tourism sector through contributing to inclusive economic<br />

growth as well as social development. As such, over<br />

9 000 jobs were created as a result of the DURBAN ICC's<br />

activities over the past financial year.<br />

In order to ensure that that the centre maintains its status<br />

as a world-class facility, in the past year, the company<br />

invested significantly in a number of key projects to<br />

enhance the guest experience and provide a safe and<br />

secure venue for our visitors.<br />

Opened in 1997 by the first democratic President of<br />

South Africa, Dr Nelson Mandela, the DURBAN ICC is the<br />

country's very first international convention centre and has<br />

played a pioneering role in attracting high-profile events<br />

to the country.<br />

Delegates visiting the Centre can look forward to superb<br />

standards of culinary excellence and hospitality. As part<br />

of the DURBAN ICC's gourmet evolution over the past 21<br />

years in the industry, they are completely reinventing their<br />

culinary offering in order to showcase some of Durban's<br />

authentic African Cuisines. Furthermore a wide range of<br />

new innovative packages have been designed to meet the<br />

unique needs of each target market, at the best possible<br />

rates.<br />

The five-star graded centre has also received a number of<br />

accolades among them being ranked in the world's Top 17<br />

Convention Centres which is an outstanding achievement<br />

in the global meetings industry. The Centre was the only<br />

centre in Africa to have made the list despite several other<br />

entries from the continent.<br />

This accolade serves to affirm the DURBAN ICC's position<br />

as Africa's leading convention centre - a reputation they<br />

work hard to uphold every day.<br />

The DURBAN ICC prides itself on being a leading<br />

venue for meetings, business events, conferences and<br />

exhibitions on the African continent. However, this is not<br />

their own opinion, but rather the overwhelming feedback<br />

received from their clients who have voted it in the top<br />

1% of Convention Centres worldwide, as well as "Africa's<br />

Leading Meetings and Convention Centre" no fewer than<br />

17times!<br />

The DURBAN ICC is one of the most flexible and versatile<br />

venues in the world. The Centre's main convention area<br />

of 11,600m 2 can be opened up to form one enormous<br />

venue or subdivided using operable walls into 22 separate<br />

convention halls of various sizes.<br />

As a venue that takes pride in the fact that we are a worldclass<br />

convention, exhibition and entertainment centre, our<br />

primary goal is to enhance our guests' experience.<br />

21<br />

YEARS OF<br />


LIVES<br />

1997-<strong>20</strong>18<br />

+27 (0)31 360 l 000<br />

114 sales@icc.co.za<br />

® www.icc.co.za<br />





9 45 Bram Fischer Road<br />

Durban, 4001<br />

P.O. Box 155<br />

Durban, 4001<br />

South Africa


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

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

A unique business and investment guide.<br />


Publisher: Chris Whales<br />

Publishing director: Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

The <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>edition</strong> of <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is the 11th issue<br />

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

in <strong>20</strong>08, has established itself as the premier business and<br />

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

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

key economic sectors of the province, there is a special feature on the<br />

surge in investment in new tourism projects, from casino expansions to<br />

the building of a dedicated cruise-liner terminal. Another special feature<br />

surveys other large investments in a wide variety of sectors, showing<br />

the diversity and strength of the provincial economy.<br />

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

distribution of the print <strong>edition</strong>, the full content can also be viewed<br />

online at www.kwazulunatalbusiness.co.za. Updated information on<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is also available through our monthly e-newsletter,<br />

which you can subscribe to online at www.gan.co.za, in addition to our<br />

complementary business-to-business titles that cover all nine provinces<br />

as well as our flagship South African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

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

Art director: Brent Meder<br />

Design: Tyra Martin<br />

Production: Lizel Olivier<br />

Ad sales: Gavin van der Merwe,<br />

Sam Oliver,Gabriel Venter, Jeremy<br />

Petersen, Shiko Diala, Vanessa<br />

Wallace, Reginald Motsoahae and<br />

Sandile Koni.<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

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

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />


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

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

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

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

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

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

investment agencies, provincial government departments,<br />

municipalities, airport lounges and companies.<br />

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

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

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

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

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

PHOTO CREDITS | Pictures supplied by: ABC, Avon Peaking Power, Bell<br />

Equipment, Dube TradePort, Durban ICC, EBH, iStock, JG Afrika, Tongaat<br />

Hulett Development, Tsogo Sun, Viking Ocean Cruises/Philip Wilson.<br />


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

Company Registration No: <strong>20</strong>04/004982/07<br />

Directors: Clive During, Chris Whales<br />

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

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

Tel: +27 21 657 6<strong>20</strong>0 | Fax: +27 21 674 6943<br />

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

ISSN 1993-0127<br />

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

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

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

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

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

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

any reliance placed on such information.<br />

KWAZULU-NATALBUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />




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The oceans economy holds great promise in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

By John Young<br />

Two of the most important ports in South<br />

Africa are at the heart of <strong>KwaZulu</strong>-<strong>Natal</strong>'s<br />

central position in the nation's transport<br />

and logistics network. As the secondbiggest<br />

contributor (16%) to national gross<br />

domestic product (GDP) after Gauteng and a<br />

major manufacturer and exporter of goods, the<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> province lends itself to potential<br />

investments in many spheres.<br />

A new national focus on trying to develop<br />

the country’s maritime potential is playing to<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s strengths.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> province has a long coastline<br />

that stretches from Port Edward in the south to the<br />

Kosi Bay Nature Reserve in the north. The province's<br />

contact with the sea has brought obvious benefits:<br />

fishing, fine beaches enjoyed by millions of tourists,<br />

and two great ports – the Port of Durban and Richards<br />

Bay. These ports export vast quantities of minerals<br />

(mostly through Richards Bay) and manufactured<br />

goods (Durban) and serve as an important conduit<br />

for imports of all sorts. The Richards Bay Coal Terminal<br />

exports coal while the Port of Durban is the busiest<br />

port in Africa.<br />

However, planners want to increase the<br />

economic benefits that the ocean can bring. An<br />

Oceans Economy Review Workshop has come up<br />

with a range of subsectors that can help grow<br />

the provincial economy and invite foreign direct<br />

investment:<br />

• marine transport and manufacturing<br />

• offshore oil and gas exploration<br />

• aquaculture<br />

• marine protection and ocean governance<br />

• small harbours<br />

• coastal and marine tourism.<br />

Strategies to grow the Oceans Economy dovetail<br />

with plans to boost the capacity of the ports at<br />

Durban and Richards Bay and to explore for gas and<br />

oil in the Indian Ocean.<br />

Ship-building and ship repairs is an existing<br />

industry, but it is currently not very big. If oil rigs<br />

were to start visiting the KZN coastline on a regular<br />

basis, this industry will grow exponentially.<br />

The Oceans Economy is one of the focus areas<br />

that has been chosen by national government to<br />

be part of Operation Phakisa, a focused, goal-driven<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



attempt to jump-start a specific economic sector.<br />

Overall, Phakisa intends creating a million jobs by<br />

<strong>20</strong>33 and injecting R177-billion into national GDP.<br />

The decision to build a cruise-ship terminal at the<br />

Port of Durban is a good example of the kind of decision<br />

that dovetails with the vision for an Oceans Economy.<br />

Another big potential growth area in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> is energy. Several licences have been granted<br />

for off-shore exploration and the hope exists that<br />

something will be found – the vast gas fields off the<br />

coast of Mozambique are close.<br />

The King Shaka International Airport (with its own<br />

trade port and industrial development zone called<br />

the Dube TradePort) is another of the province's<br />

logistics key points, which has the potential to boost<br />

the regional economy in several sectors, particularly<br />

agricultural export and tourism.<br />

The province's other zone is the Richards Bay<br />

Industrial Development Zone (RBIDZ). In recent<br />

years, investments into the RBIDZ have included:<br />

a titanium plant (R4.5-billion); a biomass plant (R2-<br />

billion); a pipe manufacturing plant (R300-million);<br />

paint manufacturing (R16-million); and logistics<br />

services (R<strong>20</strong>-million).<br />

In the base-metals and metal-products sectors,<br />

giant companies such as BHP Billiton, Hulamin,<br />

Arcelor Mittal and Assmang have a big presence in<br />

the province. Steel, iron and aluminium account for<br />

nearly a third of exports followed by metal products.<br />

The third sector making a big contribution is the<br />

automotive and automotive components sector, with<br />

about 18%. Chemicals is the other major export driver.<br />

Toyota and Bell Equipment play a vital role<br />

in the automotive sector while the Engen Oil<br />

Refinery, paper and packaging group Mondi and<br />

dissolving pulp manufacturer Sappi are among other<br />

strategically important entities in the provincial<br />

economy. Sappi's export of dissolving pulp makes<br />

it a world leader in its field.<br />

Although the forestry and paper sector and<br />

the sugar sector are grounded in the agricultural<br />

sector, the leading companies' processing plants and<br />

downstream beneficiation also make them major<br />

components of the manufacturing sector and big<br />

contributors to the province's export basket.<br />

In addition, Tongaat-Hulett is a major property<br />

company and Illovo is a continental leader in<br />

sugar production.<br />

Tourism<br />

Tourism plays a vital role in the economy of the<br />

region, with the conference and events sector<br />

supported by excellent facilities. The jewel in the<br />

crown is the huge Albert Luthuli International<br />

11 KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Convention Centre Complex which hosts the annual<br />

Tourism Indaba.<br />

The province's excellent climate lends itself<br />

to every kind of outdoor pursuit and its excellent<br />

beaches are always popular. Big sports events are<br />

regularly hosted in <strong>KwaZulu</strong>-<strong>Natal</strong> which has become<br />

something of a home to mass participation events<br />

such as the Comrades Marathon and Dusi Canoe race.<br />

The province has excellent game and nature reserves.<br />

Isimangaliso Wetland Park is a World Heritage Site<br />

and helps to fund 80 small businesses associated<br />

with its business as a tourist site.<br />

New international direct flights have been<br />

announced by King Shaka International Airport,<br />

including a direct flight to London with British Airways.<br />

Geography<br />

The mixed topography of the province allows<br />

for varied agriculture, animal husbandry and<br />

horticulture. The lowland area along the Indian<br />

Ocean coastline is made up of subtropical<br />

thickets and Afromontane Forest. High humidity<br />

is experienced, especially in the far north and this<br />

is a summer rainfall area. The centrally located<br />

Midlands is on a grassland plateau among rolling<br />

hills. Temperatures generally get colder in the far<br />

west and northern reaches of the province.<br />

The mountainous area in the west – the<br />

Drakensberg – comprises solid walls of basalt and<br />

is the source of the region’s many strongly running<br />

rivers. Regular and heavy winter snowfalls support<br />

tourist enterprises. The Lubombo mountains in the<br />

north are granite formations that run in parallel.<br />

Plans for Durban<br />

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

densification strategy which entails careful planning<br />

along three main urban corridors which connect to<br />

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

corridors will encourage diverse investments while<br />

at the same time introducing an Integrated Rapid<br />

Public Transport Network (IRPTN).<br />

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

has been developed that aims to make the inner city<br />

of Durban “Africa’s leading, most vibrant, liveable,<br />

walkable City Centre”.<br />

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

eThekwini Municipality by a Joint Venture called<br />

IPPU, the LAP is based on four main principles:<br />

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

the disconnected city of apartheid, the plan<br />

promotes the integration of different modes of<br />

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

• The walkable city: the aim is for residents to be<br />

five minutes’ walk from public transport, shops,<br />

schools and healthcare facilities. A good variety<br />

of residential accommodation is key.<br />

• Land use intensity: the plan proposes that<br />

land use approvals be more flexible, allowing<br />

for more variety and greater density. The plan<br />

cites an example of art gallery at street level,<br />

with offices above and accommodation on<br />

top. If more people live in an area, then shops<br />

become more viable and it is easier to provide<br />

bulk services.<br />

• Starting with small projects and finding ways of<br />

championing the development of the inner city.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



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

UrbanEcon including Cox Architecture, Urban<br />

Solutions, Urban Earth, Jo Lees and Joe Kitching.<br />

The Point Waterfront Development is a major<br />

project that is in the process of transforming what<br />

was an under-utilised and somewhat rundown part<br />

of the city into a vibrant, multi-use precinct.<br />

Some projections put the total potential investment<br />

value of the project at R40-billion and the number of<br />

permanent jobs to be created at 6 750. It is an ambitious<br />

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

harbour. It offers a property use mix of office space,<br />

retail shops, residential dwellings and leisure options.<br />

The 55ha site has already seen significant investment. A<br />

cruise terminal in the harbour backing on to the Point<br />

has been approved.<br />

Other major projects in the inner city include:<br />

• The Warwick Junction transport interchange<br />

which has received road upgrades but could be<br />

an even greater enabler of trade.<br />

• The Centrum Government Precinct which will<br />

formalise the relationship between buildings<br />

such as the International Convention Centre and<br />

a related hotel, the library, council chambers and<br />

the redevelopment of Gugu Dlamini Park.<br />

Regions<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has 11 district municipalities, the<br />

most of any province in South Africa. In economic<br />

terms, the province offers diverse opportunities.<br />

Southern region<br />

This area is the province’s most populous. The city<br />

of Durban has experienced booms in sectors such<br />

as automotive, ICT, film and call centres. Major<br />

investments are taking place at the Port of Durban and<br />

there is a possibility that the old airport south of the<br />

city becomes another port, if the money can be found<br />

to dig it up and let the sea in. Durban's conference<br />

facilities are well utilised, but many opportunities still<br />

exist in chemicals and industrial chemicals, food and<br />

beverages, infrastructure development and tourism.<br />

Further south, plans are in place to upgrade Margate’s<br />

airport and Port Shepstone’s beachfront.<br />

Western region<br />

Also known as the Midlands, this is a fertile agricultural<br />

region, producing sugar cane, fruit, animal products,<br />

forestry and dairy products. Pietermaritzburg is the<br />

provincial capital and home to a major aluminium<br />

producer along with several manufacturing concerns,<br />

including textiles, furniture, leather goods and food.<br />

The city has good transport links along the N3 national<br />

highway, excellent schools and a lively arts scene. The<br />

Midlands Meander is a popular tourist destination.<br />

Eastern region<br />

Although most of this area is very rural, Richards Bay is<br />

one of the country’s industrial hotspots because of its<br />

coal terminal and port and aluminium smelters. The<br />

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

a major economic node in itself: the 62-hectare first<br />

phase is almost fully subscribed with the investment<br />

value of the two phases (some having already been<br />

secured for phase two) at R6.8-billion. Mining is an<br />

important sector in this region. The other major urban<br />

centre is Empangeni which has several educational<br />

institutions. The newly completed King Shaka<br />

International Airport is kick-starting massive new<br />

investment in the area. The ilembe District Municipality<br />

is particularly active in seeking out new investors.<br />

Northern region<br />

The economic powerhouse is Newcastle in the<br />

north-west: coal-mining, steel processing and<br />

manufacturing are major activities. Some old coal<br />

mines are being reopened by new coal companies<br />

to cater for the country's power stations’ demand for<br />

the fuel. Game farms, trout fishing and hiking are part<br />

of an attractive package for tourists, and Zululand is<br />

a popular destination for cultural experiences. The<br />

whole region is rich in Anglo-Boer War history.<br />

13<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Investors are showing<br />

confidence in KZN<br />

Private and public entities are expanding operations and<br />

creating new opportunities.<br />

Harbour expansions, a new film studio, infrastructure spending<br />

by major cities and the state and several city-sized property<br />

developments – these are some of the big investments into<br />

the <strong>KwaZulu</strong>-<strong>Natal</strong> economy currently underway.<br />

The scale and variety of these investments illustrate the size and<br />

diversity of the regional economy which ranges from mining, steel<br />

and chemical manufacturing to automotive works, agri-processing<br />

and clothing and textiles. Recent investments in the expanding<br />

tourism sector are covered in a separate article.<br />

The New Development Bank, a BRICS initiative, has approved a<br />

loan of $<strong>20</strong>0-million in support of the reconstruction of the Durban<br />

Container Terminal berth. This will allow Transnet to expand the<br />

capacity of the port and to cater for bigger vessels. At Richards Bay,<br />

Transnet has committed to investment of R7.5-billion to <strong>20</strong>23. Money<br />

has been allocated to improving the coal rail line, expanding the<br />

rail yard and the port itself. There will be 45 projects in all.<br />

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

is attracting investment as a node of development as it offers<br />

attractive incentives and support for investors. Sectors being<br />

targeted include agri-processing, ICT and telecommunications,<br />

manufacturing (proximity to aluminium works opens possibility<br />

for the manufacture of discs, pistons and beverage cans), logistics<br />

and renewable energy. RBIDZ<br />

has been named as the site for<br />

2 000MW liquefied natural gas<br />

(LNG) plant in terms of national<br />

government's gas-to-power plan.<br />

RBIDZ is also the site of a new<br />

biomass plant.<br />

Film-maker Anant Singh has<br />

plans to transform the old <strong>Natal</strong><br />

Command site at North Beach<br />

into eThekwini Film City. He<br />

owns most of the land and the<br />

municipality is in favour of the<br />

project. Singh told City Press that<br />

the projected cost of the project<br />

is R7.5-billion.<br />

Two of the province’s biggest<br />

companies, Sappi and Mondi, are<br />

diversified global operators and<br />

they have both recently made<br />

major investment commitments.<br />

Responding to President<br />

Cyril Ramaphosa’s appeal for<br />

investments to drive the South<br />

African economy in <strong>20</strong>18, Sappi<br />

committed to R7-billion and<br />

Mondi to R8-billion. Sappi spent<br />

R4.3-billion on increasing its<br />

capacity in dissolving pulp in the<br />

six years to <strong>20</strong>18 and will spend<br />

R2.7-billion on its Saiccor plant in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>. Mondi noted that<br />

its exports from <strong>KwaZulu</strong>-<strong>Natal</strong><br />

annually earned about R4-billion.<br />

A new plant to make washing<br />

machines has created 75 jobs at<br />

the Durban plant of white goods<br />

manufacturer Defy. The R121-million<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



investment is part of a R1.2-billion investment programme which Arçelik<br />

Global, the Turkish company, has been following since it bought Defy<br />

in <strong>20</strong>11. The company has another plant in <strong>KwaZulu</strong>-<strong>Natal</strong> in Ezakheni<br />

(near Ladysmith) and in East London in the Eastern Cape.<br />

In <strong>20</strong>18 the eThekwini Metropolitan Municipality decided<br />

to apply for a R1-billion load for capital projects. The city’s<br />

integrated development plan will include expenditure on water<br />

and sanitation infrastructure, roads and electrification projects.<br />

Infrastructure throughout the province will attract more than<br />

R<strong>20</strong>0-billion to <strong>20</strong>25 according to information supplied by the<br />

KZN Construction Expo.<br />

Major developments north of the city of Durban continue<br />

to transform the economy and the landscape. The King Shaka<br />

International Airport and the associated Dube TradePort has made<br />

a big impact, as has the conversion by sugar giant Tongaat Hulett<br />

of its land holdings into property developments.<br />

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

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

business due to its proximity to Africa’s busiest cargo port (at<br />

Durban) and 140km from the deepest natural harbour in the<br />

southern hemisphere where the Port of Richards Bay and the<br />

Richards Bay Industrial Development Zone are located.<br />

Dube TradePort is a Special Economic Zone which has:<br />

• Dube Cargo Terminal.<br />

• Dube Tradezone: Suitable for warehousing, manufacturing,<br />

assembling, cargo distribution, etc.<br />

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

• Dube Agrizone: intended to support growing, packaging and<br />

distribution high-value perishables and horticultural products.<br />

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

provider and the only locally-hosted cloud service in the province.<br />

Industrial parks<br />

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

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

municipalities, focussing on existing strengths. These industryfocused<br />

hubs will attract new investments and help existing<br />

businesses through economies of scale and by improving access<br />

to markets and supply chains.<br />

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

Construction on the industrial park in the eThekwini Metropolitan<br />

Municipality, an automobile supplier park, is expected to begin<br />

in <strong><strong>20</strong>19</strong>.<br />

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

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

provision of infrastructure is<br />

currently underway and some<br />

tenants have been identified.<br />

The Department of Economic<br />

Development, Tourism and<br />

Environmental Affairs is the<br />

implementing agency on behalf<br />

of the Provincial Government.<br />

By way of example, the<br />

iLembe District Municipality<br />

will be the focus of investment<br />

in renewable energy. The N2<br />

is the main arterial running<br />

through the district, giving<br />

excellent access to both<br />

Durban and Richards Bay. The<br />

Dolphin Coast is a major node<br />

for tourism. With the King Shaka<br />

International Aiport (KSIA) and<br />

the Dube TradePort lying just<br />

south of the iLembe District in<br />

the eThekwini Municipality, a<br />

partnership has been created<br />

between the two municipalities<br />

and the provincial government<br />

to develop a renewable energy<br />

technology innovation hub.<br />

Enterprise iLembe (Pty) Ltd<br />

drives investment into the area.<br />

At Ndwedwe 26 biodigesters<br />

produce gas for cooking as<br />

part of the Working for Energy<br />

programme of the South African<br />

National Energy Development<br />

Institute (SANEDI).<br />

The Small Harbours and State<br />

Coastal Property unit of the<br />

National Department of Public<br />

Works wants to see coastal<br />

properties revitalised. Initiatives<br />

are under discussion for Port<br />

Edward (new harbour, fish<br />

processing, fishing and leisure),<br />

Hibberdene (waterfront and a<br />

Music City) and Port Shepstone<br />

(boat building and repairs and<br />

a new economic zone).<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Making a real impact<br />

As Black Umbrellas, we are passionate about the socio-economic impact we make to<br />

our clients and partners. We believe that every rand invested by our partners/donors<br />

must yield a positive result and tangible impact. The SMEs we support continue to<br />

make significant positive strides to the outlook of this country.<br />

Our model is aimed at supporting emerging and existing 100% black-owned businesses through a threeyear<br />

incubation programme so that they are able to emerge as independent, viable businesses.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> power milestones collectively achieved by our SME clients<br />

Turnover Net Profit Jobs Created Salaries Paid Net Asset Value<br />

R530 435 388 R65 <strong>20</strong>2 494 1704 R134 118 299 R211 091 877<br />

The success of our programme and SMEs has been recognised by entities such as Zululand Chamber of<br />

Commerce and Industry (ZCCI) and <strong>Business</strong> Women’s Association (BWA). Here a number of our clients<br />

have scooped prestigious awards such as the BWA Zululand Emerging Entrepreneur of the year (<strong>20</strong>16/<br />

<strong>20</strong>17), ZCCI Emerging <strong>Business</strong> of the year (<strong>20</strong>17), ZCCI Micro <strong>Business</strong> of the year (<strong>20</strong>17) as well as the<br />

People’s Choice Award at Black Umbrellas’ National Enterprise Development Awards (<strong>20</strong>18).<br />

Contact us today to become an ESD partner as a mentor, donor or advisor:<br />

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Massive investments in<br />

tourism are paying off<br />

New direct international flights, upgraded facilities and new hotels<br />

all point to growing confidence in the tourism sector.<br />

Major investments are being made into<br />

getting tourists to <strong>KwaZulu</strong>-<strong>Natal</strong><br />

and new hotels are being built to<br />

accommodate the increased number<br />

of visitors. Durban’s casino has had a major refit<br />

and the Durban International Convention Centre<br />

(pictured) is constantly upgrading its facilities to<br />

cope with demand.<br />

In terms of the vital transportation of<br />

tourists into the province, the most significant<br />

developments are:<br />

• The decision to go ahead with the construction<br />

of a dedicated cruise-liner terminal in the Port<br />

of Durban.<br />

• The announcement in <strong>20</strong>18 of a new direct British<br />

Airways (BA) flight between Heathrow Airport<br />

in London and King Shaka International Airport<br />

(KSIA).<br />

• Africa’s longest suspension bridge has<br />

dramatically reduced travel times between<br />

tourist hotspots in northern <strong>KwaZulu</strong>-<strong>Natal</strong><br />

and neighbouring country Mozambique. The<br />

Maputo-Catembe bridge forms part of a new<br />

road from Maputo to Kosi Bay which was officially<br />

opened in November <strong>20</strong>18.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> offers astonishing variety for the<br />

visitor. Awesome natural beauty extends from the<br />

beaches all along the coastline to the iSimangaliso<br />

(Greater St Lucia) Wetland Park and the spectacular<br />

mountainous scenery of the Ukhahlamba-<br />

Drakensberg Park. The history of the Zulu kingdom<br />

includes a number of battlefield sites outlining famous<br />

clashes with the British Empire such as Isandlwana.<br />

Mahatma Gandhi lived in the province and the site<br />

of Nelson Mandela’s arrest is commemorated. Big<br />

sporting events such as the Dusi Canoe Marathon, the<br />

Durban July Handicap and the Comrades Marathon<br />

attract thousands of participants and supporters<br />

every year.<br />

In <strong>KwaZulu</strong>-<strong>Natal</strong>, the combined contribution of<br />

retail and tourism to GDP is 14%. Many thousands<br />

of visitors to <strong>KwaZulu</strong>-<strong>Natal</strong> arrive by road, and<br />

the statistics show that the Mooi River toll plaza<br />

bringing visitors from Gauteng Province is a vital<br />

portal.<br />

Improving access<br />

In <strong>20</strong>18 Transnet National Ports Authority (TNPA)<br />

and the <strong>KwaZulu</strong> Cruise Terminal (KCT) signed an<br />

agreement for the construction of a cruise-ship<br />

terminal in the Port of Durban that will be completed<br />

by late <strong>20</strong><strong>20</strong>.<br />

KCT, a joint venture between MSA Cruises SA<br />

and Africa Armada Consortium, will spend R175-<br />

million on the financing‚ construction‚ maintenance<br />

and operation of a cruise terminal for a 25-year<br />

concession period.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



The number of cruise-ship passengers attracted to<br />

Durban grew from 42 000 in <strong>20</strong>04/05 to 157 000 in<br />

<strong>20</strong>10/11 and the new terminal is expected to radically<br />

improve these numbers. The number of annual<br />

passengers is expected to grow from the current<br />

<strong>20</strong>0 000 to more than 700 000 by <strong>20</strong>40. South Africa<br />

attracts 0.5% of the world’s cruise-ship market which<br />

comprises about 15.4-million passengers annually.<br />

Durban’s hosting of 60 ships per annum will rise to<br />

150 or more.<br />

The decision by BA to introduce a direct<br />

London flight is a major boost for <strong>KwaZulu</strong>-<strong>Natal</strong>’s<br />

main airport. Although Qatar Airways, Emirates<br />

Airlines and Turkish Airlines provide direct flights<br />

to their own hubs (Doha, Dubai and Istanbul), a<br />

direct link with London will be very attractive to<br />

tourists and to importers and exporters. KSIA is<br />

within the Dube TradePort and cargo volumes<br />

have been increasing steadily every year.<br />

The opening of the ambitious Maputo-Catembe<br />

bridge has opened up a number of possibilities<br />

for tour operators in northern <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

With access to Mozambique no longer involving<br />

a tortuous process of driving through Swaziland,<br />

the chances of tourists wanting to combine a<br />

visit to the parks in South Africa with a visit to<br />

Mozambique’s vibrant capital are much higher. It is<br />

possible that the bridge itself will become a tourist<br />

attraction. The improved roads connecting Kosi Bay<br />

to Maputo will also mean increased trade, with the<br />

Richards Bay Industrial Development Zone only<br />

about 250km further south from Kosi Bay.<br />

New and improved<br />

Tsogo Sun has spent R1.6-billion on refurbishing its<br />

Suncoast complex on Durban’s Golden Mile. Suncoast<br />

Casino Hotels & Entertainment covers a huge area<br />

and offers a wide variety of entertainment options.<br />

The recent upgrade included the addition<br />

of seven new restaurants, new retail outlets, a<br />

new theatre and an event venue, and increased<br />

space at the casino. More underground parking<br />

was created and the whole complex was given<br />

a fresh look.<br />


Facts about the Inkosi Albert Luthuli ICC<br />

Complex<br />

• The ICC can seat 5 000 delegates<br />

• Raked seating for 1 800 can be lifted to<br />

the ceiling to clear floor space<br />

• 10 000 delegates can be accommodated<br />

when combined with the Durban<br />

Exhibition Centre (DEC)<br />

• The ICC offers 70 000 square metres of<br />

column-free space<br />

• 23 meeting rooms and undercover<br />

parking for 1 <strong>20</strong>0 cars<br />

• Three courtyards, one central kitchen<br />

and 12 satellite kitchens<br />

• Albert Luthuli was president of the<br />

African National Congress and received<br />

the Nobel Peace Prize in 1960<br />

Tsogo Sun has four other hotels on the Golden Mile<br />

and more than 100 hotels and 14 casino and entertainment<br />

destinations in South Africa, Africa and the<br />

Seychelles. Tsogo Sun runs 14 hotels in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong>, five of which are Garden Courts. Six hotels are<br />

in Durban with a further four in nearby Umhlanga,<br />

where one of the group’s most luxurious hotels, the<br />

89-room Beverly Hills, is located.<br />

A new “mega-hotel” has been created by Tsogo<br />

Sun, with the amalgamation of the Southern Sun<br />

North Beach and Southern Sun Elangeni hotels.<br />

A key reason for Durban’s high ranking in the<br />

meetings, incentives, conferencing and exhibitions<br />

sector (MICE) is the Durban International<br />

Convention Centre (Durban ICC). Located within<br />

the Albert Inkosi ICC Complex in downtown<br />

Durban, the venue will spend R27.3-million in <strong><strong>20</strong>19</strong><br />

on capital projects.<br />

The Durban ICC is one of the most flexible<br />

and versatile venues in the world. The main<br />

convention area of 11 600m² can be opened up<br />

to form one large venue or subdivided into 22<br />

separate convention halls of various sizes. The<br />

refurbishment of seats in Hall 1, which can seat up<br />

to 1 680 delegates, will cost R6-million.<br />

19<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


the hotel and the shopping mall sections of the<br />

planned complex are going ahead.<br />

A <strong>20</strong>7-room Hilton Garden Inn will be operating<br />

at Umhlanga Arch by <strong>20</strong><strong>20</strong>. Hilton Durban<br />

acquired a new owner in <strong>20</strong>18 when Bin Otaiba<br />

Hotels bought it, together with four hotels in<br />

Johannesburg, Port Elizabeth and Cape Town.<br />

Hotels<br />

More than <strong>20</strong> 000 delegates will use the Durban<br />

ICC in <strong><strong>20</strong>19</strong>. In the <strong>20</strong>17/18 financial year, the venue<br />

hosted 450 events, contributed R4.7-billion to<br />

South Africa’s Gross Domestic Product and created<br />

9 474 jobs.<br />

Durban's hosting of the Tourism Indaba<br />

further supports the idea that the province is a<br />

major conference destination. More than 7 000<br />

delegates are annually attracted to exhibit South<br />

Africa's assets to international tour operators. The<br />

city has secured the Tourism Indaba until <strong>20</strong>22.<br />

The range of topics covered by recent<br />

conferences held in <strong>KwaZulu</strong>-<strong>Natal</strong> is wide and<br />

includes the World News Media Congress, the<br />

Pan-African Health Tourism Congress, the National<br />

Association of Automotive Components and<br />

Allied Manufactures (NAACAM) Show and the<br />

Durban Maritime Summit.<br />

Premier Hotels & Resorts will spend about<br />

R4<strong>20</strong>-million on two new hotels at Umhlanga.<br />

Currently under construction, the hotel complex<br />

is located alongside the Gateway Theatre of<br />

Shopping next to Umhlanga Ridge. The four-star<br />

Premier Hotel will have 130 rooms while the threestar<br />

Splendid Inn by Premier will be equipped with<br />

64 bedrooms. The group has hotels and resorts<br />

in six provinces.<br />

A new Radisson Blu Hotel will open in Umhlanga<br />

Rocks as part of the ambitious R3-billion Oceans<br />

Umhlanga development. Some construction work<br />

has been halted because of problems experienced<br />

by construction companies, but it seems that<br />

Research by Tourism <strong>KwaZulu</strong>-<strong>Natal</strong> shows that the<br />

coastal province consistently has the best hotel<br />

occupancies in the country.<br />

Protea Hotels has 18 properties in the province,<br />

with seven in Durban including the Protea Hotel<br />

Edward. The upgrading of the Point area between<br />

the beach and the Port of Durban has resulted<br />

in major investments. The Docklands Hotel at<br />

the Durban Waterfront is a four-star Signature<br />

development that cost about R100-million to<br />

develop.<br />

The Royal Hotel in the heart of Durban is<br />

one of eight Three Cities Group hotels in the<br />

province. The Golden Horse Casino Hotel is a<br />

Three Cities property, and the Group administers<br />

the International Hotel School in Westville that<br />

is also home to the Christine Martin School of<br />

Food and Wine.<br />

IFA Hotels & Resorts runs several luxury<br />

properties including the Zimbali Coastal Resort<br />

and Zimbali Lakes Resort. Signature Life Hotels<br />

has 13 properties and Gooderson Leisure has a<br />

varied portfolio.<br />

Sibaya Casino and Entertainment Kingdom,<br />

a Sun International property, is north of Durban<br />

between Umdloti and Umhlanga. The casinos<br />

in Newcastle (Century City), Empangeni (Tusk<br />

Umfolozi Casino) and Pietermaritzburg (Golden<br />

Horse Casino) are run by Century Casinos<br />

Newcastle, Peermont Global and Akani Msunduzi<br />

Management respectively.<br />

Airbnb is a fast-growing option in South Africa.<br />

The Airbnb visitors to South Africa in <strong>20</strong>16 engaged<br />

in R2.4-billion worth of economic activity. Durban<br />

had the largest increase in Airbnb bookings from<br />

the previous year.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Regions<br />

Several of <strong>KwaZulu</strong>-<strong>Natal</strong>’s regions are investing in<br />

tourism projects.<br />

Harry Gwala<br />

Dramatic mountain landscapes and a plentiful<br />

supply of water help make this district perfectly<br />

suited to tourism. The main towns are Kokstad<br />

and Ixopo. The Drakensberg Mountains define<br />

the district’s western boundary. The Harry Gwala<br />

Development Agency believes that niche sectors<br />

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

tourism hold great potential.<br />

Umkhanyakude<br />

The Isimangaliso Wetland Park extends 2<strong>20</strong>km<br />

along the northern reaches of the province, to the<br />

border with Mozambique, and offers unrivalled<br />

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

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

Heritage Site and, together with the HluhluweuMfolozi<br />

Game Reserve, forms the core of the<br />

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

With agriculture the other dominant economic<br />

activity in the area, any new investment would have<br />

to be ecologically sensitive. A new entertainment<br />

complex at Hlungweni Peninsula within the Tembe<br />

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

being contemplated.<br />

Uthukela<br />

Larger towns include Estcourt, Colenso and<br />

Ladysmith. Predominantly rural, the district<br />

encompasses two of the greatest natural assets<br />

in the province in the Thukela River and a part of<br />


January. Dusi Canoe Marathon,<br />

Pietermaritzburg to Durban.<br />

February. Midmar Mile, Midmar Dam.<br />

April. Durban International Boat and<br />

Leisure Show, Durban.<br />

May. Tourism Indaba, Durban. Comrades<br />

Marathon, Pietermaritzburg to Durban.<br />

June. Mr Price Pro international surfing<br />

contest, Ballito.<br />

July. The Durban July, Greyville.<br />

August. Durban International Film<br />

Festival, Durban.<br />

September. Dolphin Coast Ultra, North<br />

Coast. KZN Music Imbizo, Durban.<br />

October. Zululand Expo. Richards Bay.<br />

Berg and Bush bicycle race, Drakensberg.<br />

the Drakensberg mountain range, which attracts<br />

hundreds of thousands of visitors. A cableway<br />

system in the Drakensberg (near Bergville) with<br />

entertainment and accommodation facilities has<br />

been mooted.<br />

Zululand<br />

Zululand is a popular destination for cultural<br />

experiences and the area is rich in Zulu history<br />

and Anglo-Boer War history. Vryheid and Ulundi<br />

are the main towns. A possible development of a<br />

heritage site at Nongoma has been suggested to<br />

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

Zulu experiences, including arts and crafts, agriprocessing,<br />

traditional medicines and cosmetics<br />

and leveraging the profusion of aloe plants in the<br />

district.<br />

21<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Enterprise iLembe<br />

Nathi Nkomzwayo, CEO of Enterprise iLembe, reveals how this<br />

east coast region is packed with opportunity, from agriculture<br />

and manufacturing to tourism, commerce and services.<br />

Nathi Nkomzwayo,<br />

Chief Executive Officer<br />


Nathi has more than 18 years’<br />

experience in the manufacturing<br />

industry, 10 of those at senior<br />

management and executive<br />

level. With a degree in<br />

engineering and an MBA, his<br />

career highlights include the<br />

successful implementation of<br />

a R400-million project for a<br />

large smelter and the design<br />

and execution of a range of<br />

programmes from skills transfer<br />

to asset care strategies. As a<br />

board and executive committee<br />

member, Nathi has experience<br />

in company policy formulation,<br />

corporate governance and<br />

relationship management.<br />

What is Enterprise iLembe?<br />

We are the Economic Development Agency of the iLembe District<br />

Municipality and our mandate is to drive economic development as<br />

well as to promote trade and investment in the region. We do this<br />

through the development of the economic development strategy<br />

that guides economic activities and programmes. The philosophy that<br />

drives Enterprise iLembe is built on promoting a participatory process<br />

where local people work together to stimulate local commercial activity,<br />

resulting in a resilient and sustainable economy.<br />

With our partners such as Trade and Investment KZN and the iLembe<br />

Chamber we aim to position the district as the investment destination.<br />

Programmes include biannual business confidence reports and an<br />

overall business outlook.<br />

Where do you operate?<br />

The iLembe District is made up four local municipalities, KwaDukuza,<br />

Maphumulo, Mandeni and Ndwedwe. They are different in terms<br />

of their economic outlook and their developmental needs with the<br />

coastline on one end and agricultural space on the other. Our strategy<br />

needs to zoom in on the development needs of the individual local<br />

municipal areas while ensuring broader alignment and integration. We<br />

need to be conscious of the unequal business environment.<br />

How does Enterprise iLembe identify and develop projects?<br />

In most cases we are guided by our strategic geographic location and<br />

economic sectors that are most viable in our region. These sectors are<br />

Agriculture, Manufacturing, Tourism, Oceans economy, Renewable<br />

energy as well as Commerce and Services. Being strategically located<br />

between the two major South African harbours in Durban and Richards<br />

Bay, iLembe District is the highest-priority development corridor in<br />

the province. The close proximity to the King Shaka International<br />

Airport and the Dube TradePort also connects the district directly to<br />

international markets.<br />

We have established a <strong>Business</strong> Incubator Facility. The objective<br />

is to provide assistance for SMMEs. Working in the partnership with<br />

Invotech and Africa Ignite, the project assists with access to technical<br />

and business-related skills. It is the one-stop shop for all business<br />

information and facilitating access to funding for SMMEs. Enterprise<br />

iLembe has also finalised a Broadband Masterplan.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



How has tourism contributed<br />

to economic development<br />

and job creation?<br />

The past year saw a record of<br />

over 800 000 tourists visiting<br />

the iLembe District, contributing<br />

over R3-billion to the economy of<br />

the region. Attractions such as<br />

the Ballito Junction Mall remain<br />

key drivers.<br />

The mall attracted 12-million<br />

visitors during its first year of<br />

operation. There are many<br />

other tourist offerings besides<br />

shopping. These includes the<br />

beaches, cultural, history and<br />

adventure tourism.<br />

How do you work with investors?<br />

We continuously engage with potential investors through various<br />

platforms and sign MOUs that lead to direct investment across all sectors<br />

with key focus on job creation, skills development and the overall<br />

contribution to the economy. More recent investments are focused in<br />

the renewable and green energy sector. The investment opportunities<br />

are outlined in the iLembe investor prospectus for the region.<br />

As Enterprise iLembe, we believe that collaboration and partnerships<br />

with key stakeholders is key. It is to this end that we work closely<br />

with partners such as Trade & Investment KZN, Tourism <strong>KwaZulu</strong>-<strong>Natal</strong>,<br />

local municipalities as well as private-sector partners.<br />

Other partners such as Dube TradePort and the Isithebe Industrial<br />

Estate have also created immense opportunities for growth and stimulation<br />

of economic initiatives. Our focus is to work with potential investors<br />

to facilitate and ensure that their investment in the iLembe District is<br />

not only seamless and smooth, but also sustainable in the long term.<br />


Tel: 032 946 1256<br />

Email: info@enterpriseilembe.co.za<br />

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

Facebook: Enterprise iLembe | NORTHCOASTKZN<br />

Twitter: EnterpriseiL<br />

How does the flagship<br />

National Schools Nutrition<br />

Programme benefit farmers<br />

and learners?<br />

As per our mandate, Enterprise<br />

iLembe procures vegetables<br />

from farmers to supply to<br />

schools for the National Schools<br />

Nutrition Programme (NSNP).<br />

Currently approximately 63%<br />

of the 180 tons required for the<br />

programme are procured from local<br />

farmers. A total of 119 farmers<br />

supply fresh produce to the 406<br />

schools in the district.<br />

This has been achieved<br />

through the setting up of agrihubs<br />

in Mandeni, Maphumulo<br />

and Ndwedwe. This is a key<br />

programme for Enterprise<br />

iLembe as it talks directly to<br />

the empowerment of local<br />

communities. Agriculture has<br />

been proven to be one of<br />

the most sustainable sectors<br />

provided there is a market for<br />

SMMEs to supply their fresh<br />

produce, and the NSNP creates<br />

that market space.<br />

23<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>



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

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

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

will create a better understanding<br />

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

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

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

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

Our expertise will help clients navigate<br />

challenges and meet their goals<br />

Nedbank continues to build on its clientcentred<br />

strategy aimed at delivering<br />

distinctive experiences and channels<br />

of choice for businesses and clients in<br />

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

simplify and enhance its product offering<br />

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

based on simplicity, transparency and<br />

affordability. Innovation and technological<br />

advancements, as well as training and<br />

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

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

Since <strong>20</strong>12 Nedbank has launched several first-tomarket<br />

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

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

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

Image outlets concept in communities locally and<br />

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

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

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

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

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

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

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

inclusion while contributing towards economic<br />

growth,” concludes Ndhlovu.<br />

Nedbank also leverages its strong market positioning<br />

with businesses and the public sector, encouraging<br />

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

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

Banking and Beyond philosophy, which is aimed<br />

at supporting business owners to make informed<br />

decisions that will enable them to grow and take their<br />

businesses to the next level.<br />

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

fitness training a key aspect of the offering. Our<br />

wide range of products and services include the<br />

Nedbank Ke Yona Plus transactional account, which<br />

comprises funeral cover, a personal loan facility, the<br />

JustSave Account and the Send-iMali money transfer<br />

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

and take out cover.<br />

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

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

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

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

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

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

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

eNotes and self-service banking.<br />

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

banking more accessible to all.<br />

Nedbank has also invested in innovative alternative<br />

distribution outlets through its strategic partnership<br />

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

over 15 years, enable communities to get access to<br />

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

and public holidays.<br />

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

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

differently, for more information call Siphamandla<br />

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




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

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

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

will create a better understanding<br />

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

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

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

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

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

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

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

banking solutions to suit the business needs<br />

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

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

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

exchange hedging transactions and transactional<br />

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

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

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

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

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

needs and means.<br />

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

believe that you need a financial<br />

partner who not only understands your<br />

circumstances and aspirations, but also<br />

provides you with relevant solutions<br />

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

This allows you to concentrate on<br />

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

your business,” says Ndhlovu.<br />

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

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

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

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

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

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

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

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

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

becomes a repository of client information where<br />

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

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

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

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

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

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

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

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

Furthermore, based on the relationship foundation<br />

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

able to extend our offering to the business owner<br />

in their personal capacity, their family and staff. In<br />

doing this, we answer Nedbank’s call to use our<br />

financial expertise to do good for individuals, families,<br />

businesses and communities within which we operate.<br />

Should you be interested in taking your business to its<br />

next level and improving staff engagement, and for more<br />

information about Nedbank’s specialised service offering<br />

please call Siphamandla Ndhlovu on +27 83 637 8552<br />

or visit www.nedbank.co.za.



Nedbank’s new brand promise<br />

focuses Expertise on in small client business engagement aimed at that stimulating<br />

will growth create a better understanding<br />

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

Nedbank’s Melanie Reddy, Provincial Retail Relationship Banking Manager,<br />

Free<br />

explains<br />

State<br />

how<br />

and<br />

Nedbank<br />

Northern<br />

is committed<br />

Cape, explains<br />

to partnering<br />

how Nedbank<br />

with small businesses<br />

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

For example, the Small <strong>Business</strong> Friday initiative, in<br />

association with the National Small <strong>Business</strong> Chamber,<br />

seeks to encourage everyone in South Africa to rally<br />

behind and support small businesses. The initiative<br />

calls on everyone to make a conscious decision to<br />

vote for small businesses through their hearts, feet<br />

and wallets; not only on Small <strong>Business</strong> Friday which is<br />

one particular Friday in a year, but every day.<br />

“Small businesses are the mainstay of the<br />

economy. Nedbank has, over the years,<br />

instituted various interventions aimed at<br />

giving support to the small-business sector.<br />

Over and above our small-business services<br />

solutions, we provide small-business<br />

owners with support that goes beyond<br />

banking, freeing up their time to truly focus<br />

on running their businesses,” says Reddy.<br />

Nedbank has built a solid reputation as a bank for<br />

small businesses through initiatives such as Small<br />

<strong>Business</strong> Friday, free small-business seminars and<br />

the SimplyBiz.co.za platform – all geared to support<br />

the small- and medium-sized enterprises sector.<br />

Our offering expands to the Professional Banking<br />

segment of the market. In Professional Banking we<br />

realise that time is of the essence in your professions<br />

and hence we offer you a dedicated banker with a<br />

strong support team to take care of the needs of you,<br />

your business and your household.<br />

SimplyBiz.co.za is a free-to-join value networking<br />

portal designed especially for small businesses. The<br />

online portal helps small businesses improve their<br />

business administration skills, keep up with the latest<br />

trends, network with other small businesses and<br />

share ideas.<br />

Should you wish to tap into our small business expertise<br />

to help your business goals, why not get in touch with<br />

Nedbank’s Small <strong>Business</strong> Services. Call Melanie Reddy<br />

on +27 31 364 <strong>20</strong>45 or send an email to<br />




Nedbank’s new brand promise<br />

Making focuses banking on client accessible engagement to all that<br />

will create a better understanding<br />

At Nedbank we believe in delivering a choice of distinctive clientcentred<br />

Kevin de banking Beer, Nedbank experiences Provincial that create General deep, enduring Manager relationships<br />

in the<br />

with Free our State clients, and Northern says Sean John, Cape, Provincial explains Sales how Nedbank Manager, <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> works Branch with communities Networks. to deliver banking solutions.<br />

Our distribution presence in KZN sees us with 85<br />

traditional branches, 32 kiosks in Boxer stores and 33<br />

New Image branches. Nedbank has embarked on a<br />

distribution strategy to convert all our branches to<br />

New Image outlets. We have also increased our ATM<br />

distribution to 630 and Intelligent Depositors to 90 in<br />

the province for your convenience.<br />

To make banking convenient we have eight Sundaytrading<br />

branches in key centres in the province.<br />

Nedbank’s client-centred approach has seen the bank<br />

intensify its efforts in delivering a distinctive client<br />

experience through innovation.<br />

Our clients are engaged by skilled, enabled<br />

and productive staff who, through<br />

meaningful conversations, ensure we<br />

deliver to our clients’ needs and aspirations.<br />

As a bank for all, Nedbank realises that, if<br />

it wants to make banking more accessible<br />

to all in South Africa, it has to start working<br />

with the communities in which it operates.<br />

“Since <strong>20</strong>12 Nedbank has launched several firstto-market<br />

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

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

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

branch outlets,” adds John.<br />

For more information on our offerings please contact<br />

Sean John at SeanJ@nedbank.co.za,<br />

+27 31 364 1933.<br />

As such the bank’s strong relations with government,<br />

organised business and communities remain a key focus<br />

in growing its client base.<br />

Our presence in the KZN community goes a long way in<br />

allowing for greater financial inclusion while contributing<br />

to social upliftment and economic development.<br />

Nedbank Ltd Reg No 1951/000009/06. Authorised financial<br />

services and registered credit provider (NCRCP16).


Overviews of the main economic<br />

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

Agriculture​ 30<br />

Sugar​ 31<br />

Forestry and paper​ 34<br />

Mining 42<br />

Engineering ​ 43<br />

Oil and gas​ 44<br />

Construction and property​ 48<br />

Water​ 49<br />

Manufacturing​ 50<br />

Automotive​ 52<br />

Information and communication<br />

technology 54<br />

Education and training​ 55<br />

Banking and financial services​ 56<br />

Development finance and SMME<br />

support​ 57


Agriculture<br />

New crops are adding to the export basket.<br />

The award of Toyota SA/Agri SA Young Farmer of the Year for<br />

<strong>20</strong>17 went to a Richmond farmer who is one of only four<br />

farmers in the province cultivating golden kiwifruit. There<br />

are only 16 farmers in all of South Africa doing what Ross<br />

Lowe does, but he believes that the particular strain of kiwifruit he has<br />

chosen is the best in terms of taste and yield. Typically for the modern<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> farmer, he also intends to increase his export volumes.<br />

So-called superfoods have potential to grow the agricultural<br />

sector via greatly increased exports: these include avocados,<br />

pecans and dates. The province’s Premier has mentioned<br />

possibilities in macadamia nuts (already a thriving sector in other<br />

parts of the country) and in new areas such as cannabis and the<br />

farming of rabbits. The opening of a R99-million cold-storage<br />

facility at the Dube TradePort in <strong>20</strong>17 has given farmers and<br />

exporters additional flexibility, allowing them to store chilled and<br />

frozen perishable goods.<br />

Eighteen percent of <strong>KwaZulu</strong>-<strong>Natal</strong>’s 6.5-million hectares of<br />

agricultural land is arable, and the balance is suitable for the rearing<br />

of livestock. The province’s forests occur mostly in the southern and<br />

northern edges of the province.<br />

In <strong>20</strong>18, a summit was held at which consultation took place<br />

towards the creation of an Agricultural Development Masterplan<br />

for the province. The resulting plan includes priorities such as the<br />

expansion of irrigable land, improving market access for producers<br />

and adding value to agricultural products before they reach local<br />

and international markets.<br />

The Agribusiness Development Agency (ADA) works with<br />

Department of Agriculture and Rural Development (DARD) to<br />

stimulate agribusiness that covers the entire value chain and<br />

promotes development in all areas. The coastal areas lend themselves<br />

to sugar production and fruit growing, with subtropical fruits doing<br />

particularly well in the north. <strong>KwaZulu</strong>-<strong>Natal</strong> produces 7% of South<br />

Africa’s citrus fruit.<br />


Fresh Produce Exporters Forum: www.fpef.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Agricultural Union: www.kwanalu.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Agriculture and Rural<br />

Development: www.kzndard.gov.za<br />


Increased agricultural freight<br />

volumes are expected at the<br />

Dube TradePort.<br />

Beef originates mainly in the<br />

Highveld and Midlands areas, with<br />

dairy production being undertaken<br />

in the Midlands and south. The<br />

province produces 18% of South<br />

Africa’s milk.<br />

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

farmers hold 1.5-million cattle,<br />

which represents 55% of the<br />

provincial beef herd, and their<br />

goat herds account for 74%<br />

of the province’s stock. The<br />

Midlands is also home to some<br />

of the country’s finest racehorse<br />

stud farms. The area around<br />

Camperdown is one of the<br />

country’s most important areas<br />

for pig farming.<br />

Enterprise iLembe, the<br />

development arm of the iLembe<br />

District Municipality, is looking<br />

for investors to further develop<br />

an agri-processing hub near the<br />

King Shaka International Airport<br />

and Dube TradePort.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Sugar<br />


<strong>KwaZulu</strong>-<strong>Natal</strong> leads in sugar production.<br />


Times are tough in the sugar<br />

industry.<br />

For the first time in nearly a decade, some commercial sugar<br />

farmers in the Pongola area have returned to planting cotton as<br />

a rotational crop. This is according to the <strong>20</strong>18 annual report of<br />

the <strong>KwaZulu</strong>-<strong>Natal</strong> Agricultural Union. Diversification is a good<br />

thing, but this move perhaps also points to the downward trend in<br />

overall sugar production.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is South Africa’s biggest sugar producer. Most<br />

of South Africa's 14 sugar mills are in <strong>KwaZulu</strong>-<strong>Natal</strong>, as are the<br />

headquarters of the biggest companies.<br />

The South Africa Cane Growers’ Association (SACGA) described<br />

the <strong>20</strong>17/18 season as “one of the toughest in the history of the<br />

South African sugar industry”. Although more land was cultivated<br />

(after the drought) and revenue was up, the price of sugar was so<br />

low that some growers were said to be at risk of business failure.<br />

Fourteen sugar mills crushed a total crop of 17 388 177 tons of<br />

cane to produce 1 994 607 tons of sugar during the <strong>20</strong>17/18 crushing<br />

season. The cane crop was 2 313 567 tons larger than the <strong>20</strong>16/17<br />

crop of 15 074 610 tons.<br />

About 40% of local production is exported. The SACGA represents<br />

about 24 000 growers who produce about <strong>20</strong>-million tons of cane.<br />

A new industry structure, allowing for multiple grower associations,<br />

has been agreed to by the SACGA, the Department of Trade and Industry<br />


South African Cane Growers’ Association:<br />

www.sacanegrowers.co.za<br />

South African Sugar Association: www.sasa.org.za<br />

South African Sugar Technologists Association: www.sasta.co.za<br />

Sugar Milling Research Institute: www.smri.org<br />

(dti) and the relevant parliamentary<br />

portfolio committee.<br />

Neither of the Big Two companies<br />

relies exclusively on South<br />

African sugar earnings: Tongaat<br />

Hulett has a big property portfolio<br />

and Illovo draws most of its<br />

profit from operations elsewhere<br />

in Africa.<br />

Tongaat Hullet Sugar has<br />

agreed to a R52-million sugarcane-growing<br />

project which will<br />

see co-operatives and contract<br />

farmers plant cane on 3 000ha at<br />

Felixton, Maidstone and Darnall.<br />

Illovo and Tongaat Hulett are<br />

the major operators of sugar mills.<br />

Other millers are Gledhow, ULC,<br />

Umfolozi and Tsb (which has a<br />

further two mills in Mpumalanga).<br />

Illovo has four mills, three sugarcane<br />

estates, four sugar factories,<br />

a refinery and three downstream<br />

operations that make products<br />

such as furfural, furfuryl alcohol,<br />

ethyl alcohol and lactulose.<br />

The four mills run by Tongaat<br />

Hulett are located on the North<br />

Coast while the central refinery<br />

is in Durban and the animal feed<br />

plant, Voermol, is near Tongaat.<br />

The Sugar Terminal at Maydon<br />

Wharf, Durban, serves 11 mills<br />

and can store more than half-amillion<br />

tons of sugar. It also has a<br />

molasses mixing plant.<br />

31<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>

FOCUS<br />

Stimulating the agri<br />

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

The new CEO of the Agribusiness Development Agency,<br />

Zenzele Ndlela, is upbeat about the ADA’s new mandate.<br />

Africa has been identified as a sleeping<br />

economic giant in terms of its resource<br />

potential. Agriculture has the potential to<br />

transform the African continent provided<br />

all the African countries can work together towards<br />

providing support to farmers.<br />

This is according to the newly appointed CEO,<br />

Zenzele Ndlela, of the Agribusiness Development<br />

Agency (ADA). “We all need to put our heads together<br />

and stimulate this sector in order to eradicate the<br />

twin problems of poverty and food crisis,” he says.<br />

ADA is a public entity that was established as a<br />

“one-stop-shop” to assist entrant black commercial<br />

farmers who had acquired land through the Land<br />

Reform Programme. However, the entity has taken<br />

on a new strategic direction and aligned its services<br />

with those of the Department of Agriculture and<br />

Rural Development (DARD). “We seek to promote,<br />

establish, facilitate and support the growth of blackowned<br />

and managed agricultural enterprises along<br />

agricultural value chains in <strong>KwaZulu</strong>-<strong>Natal</strong> through<br />

partnerships with individuals, communities, the<br />

private sector and other public sector institutions in<br />

order to achieve a transformed agribusiness sector,”<br />

Ndlela says.<br />

“There was a need to have a separate entity that<br />

would accelerate the provision of a comprehensive<br />

support package to black commercial farmers” says<br />

Ndlela. ADA has positioned itself to resuscitate as<br />

well as develop commercial agriculture and has<br />

been able to increase the value of farms owned<br />

by black commercial farmers, reduce the number<br />

of farms being repossessed as well as deal with the<br />

declining local economies of rural towns that relied<br />

on commercial agriculture.<br />

Ndlela notes, “It must be noted that we have<br />

reviewed our mandate and shifted our strategic<br />

focus to the entire value chain in agri-business.<br />

Our interventions have changed the agricultural<br />

landscape in the province. Providing funding to<br />

beneficiaries improved their agribusinesses and<br />

welfare and enabled them to gain access to markets<br />

through capacity building programmes.<br />

“The positive attitude and optimism among our<br />

beneficiaries towards farming is linked to the newly<br />

gained confidence in their skills (farming techniques,<br />

marketing, value addition, etc.) which they received<br />

from ADA,” says Ndlela. “We have turned around<br />

ailing farms including dairies, piggeries, grain<br />

farms, vegetable farms and livestock farms from<br />

zero production levels to where they are able to<br />

consistently supply the market.”<br />

The ADA has trained 1 726 individuals and<br />

created and/or sustained a total of 2 250 jobs during<br />

the construction of physical infrastructure, planting<br />

and harvesting seasons, all within the Enterprise and<br />

Value Chain Development Programme.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


1. VISION<br />

“A diverse, deracialised, prosperous, and sustainable agribusiness sector in <strong>KwaZulu</strong>-<strong>Natal</strong>.”<br />

2. MISSION<br />

The ADA strives to promote, establish, facilitate and support the growth of black owned and managed agricultural enterprises along<br />

agricultural value chains in <strong>KwaZulu</strong>-<strong>Natal</strong> through partnerships with individuals, communities, private sector and other public sector<br />

institutions in order to achieve a transformed agribusiness sector in the province.<br />

3. OUR VALUES<br />

Organisational values define the key principles and associated behaviours that are required by employees when executing the strategy and<br />

functions of the organisation and state what the beneficiaries and stakeholders can expect from the organisation. The values of the ADA are:<br />

• Integrity: We commit ourselves to ensuring that our purpose, practices and values are ethically sound, at all times<br />

• Accountability: We take accountability for all our actions in dealing with our Clients and Stakeholders and are mindful of possible<br />

consequences emanating from our decisions<br />

• Excellence: We commit to providing quality services and products to all our clients at all times consistent with the spirit of Batho-Pele<br />

• Innovation: We commit to strive for continuous improvements through innovation and promoting a learning organisational culture<br />


In keeping with the outcome of the alignment process between DARD and ADA, the Agency will concentrate on the following:<br />

• agribusiness development and in particular on agro-processing<br />

• on high impact and complex projects that will assist in unlocking public and private resources, as well as assistance in turning<br />

around declining industries<br />

• look at niche and new products that support import substitution and exports<br />


We have developed products and services according to four broad areas in supporting agribusiness development:<br />

Knowledge and Information Services – these include design and dissemination of agribusiness models, agribusiness training modules<br />

and business leadership development;<br />

Financial Resources Mobilisation – these include targeted development finance and investments;<br />

Agribusiness Facilitation Services – these include connecting agribusiness entrepreneurs to information, technological<br />

innovations and markets;<br />

Agribusiness Market Infrastructure Services – these include agribusiness capacity and systems development; as well as<br />

investments in infrastructure.


Forestry and paper<br />

Diversification is a growing trend.<br />

Big forestry and paper companies have been preparing<br />

themselves for change for many years now. The computer<br />

age and digitalisation presented complicated challenges<br />

to paper manufacturers and companies. In response, Sappi<br />

and Mondi, global leaders in paper and packaging with strong roots<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong>, have embraced diversification.<br />

Sappi has a strong emphasis on dissolving wood pulp and Mondi<br />

reports growing demand in its packaging divisions. Although Mondi<br />

closed one machine at its Durban plant in <strong>20</strong>18, it will continue to<br />

make uncoated fine paper for the domestic market at the plant.<br />

Recent upgrades to Mondi’s woodyard at Richards Bay have made a<br />

big impact on efficiencies. The addition of an unbleached kraftliner<br />

product has expanded the company’s range. Three investments<br />

in eastern Europe will see the company’s saleable pulp and paper<br />

production go up by about 9% overall.<br />

Sappi makes paper at two mills in South Africa: the mill at Tugela<br />

makes 185 000 tons of speciality paper per annum. A big focus for<br />

the company is dissolving wood pulp, made at one site in America<br />

and two in South Africa.<br />

Dissolving wood pulp is sold as a raw material to converters<br />

around the world who produce from it a range of products such<br />

as textiles, cellophane wrap and pharmaceuticals.<br />


TWK is the latest agricultural<br />

company to list on a stock<br />

exchange.<br />

The giant Sappi Saiccor mill 50km<br />

south of Durban is the world's biggest<br />

manufacturer of dissolving<br />

wood pulp. The mill's capacity is<br />

800 000 tons, which makes it the<br />

biggest of its kind in the world.<br />

Sappi is actively looking into the<br />

new fields of bio-materials and<br />

bio-energy.<br />

Both company’s investments<br />

in the province are outlined in a<br />

special feature elsewhere in this<br />

publication.<br />

National production figures<br />

in the forestry sector declined<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


manufacturing, auto identification, bar coding and labelling sectors.<br />

As such, we are proud to be the sole distributor in Southern Africa for many of the leading<br />

internationally-renowned brands in those sectors in which we operate, such as HP Indigo,<br />

Komori, Flint, Fujifilm, Argox, CipherLab, Datalogic and Brother.<br />

Kemtek pursues<br />

continual growth<br />

Kemtek keeps abreast of industry developments and potential<br />

new markets while offering the best solutions to customers.<br />

FOCUS<br />

And, with a focus always on providing highly skilled services and post-sales support, we’re<br />

ensuring our customers are maximising their potential for growth and profit - day in, day out!<br />

NATIONAL: 0861 KEMTEK • JHB: +27 (0)11 624 8000 • PTA: +27 (0)12 804 1410<br />

• DBN: +27 (0)31 700 9363 • CPT: +27 (0)21 521 9600 • PE: +27 (0)41 364 3690<br />


J25589<br />

J25589_Kemtek_Propak_Advert_FA.indd 1 <strong><strong>20</strong>19</strong>/02/14 16:12<br />

Targeted industry events and product demonstrations are proving highly popular with Kemtek<br />

customers and prospective customers alike.<br />

Long-established in the lithographic,<br />

flexographic, digital and large-format<br />

printing and packaging arenas, Kemtek has<br />

evolved over time into a multi-pronged<br />

organisation, entrusted with channel responsibility<br />

by many of the world’s leading brands in the<br />

barcoding and labelling sectors through widespread<br />

professional resellers, plus 3D printing, through its<br />

joint venture partner Rapid 3D.<br />

Aligning with internationally-acclaimed brands is<br />

one aspect of Kemtek's continued success, coupled<br />

with expert sales and service support, and an agile<br />

and specialised national distribution network,<br />

annually achieving some 15 000 deliveries.<br />

This fast-growing enterprise also represents<br />

specialist additive manufacturing equipment and<br />

materials providers in multiple sectors including<br />

aerospace, automotive, manufacturing, medical,<br />

dental and jewellery, with brands such as EOS,<br />

Envisiontec, MCor and Zortrax.<br />

Building on core strengths<br />

Creating value on a sustainable basis is Kemtek’s<br />

marketing approach that's based on a detailed<br />

understanding of markets and the needs of the<br />

end user. These needs are then married to the<br />

technologies provided by Kemtek's principal<br />

brands. Providing a winning edge for all Kemtek's<br />

customers means delivering the most advanced<br />

technological equipment and service, backed by a<br />

total commitment to service excellence.<br />

With digital printing firmly growing in Southern<br />

Africa, Kemtek and partner, HP Indigo, have recently<br />

expanded their labels and packaging portfolio<br />

with technology solutions to drive printing and<br />

converting toward more flexible, productive and<br />

profitable digital printing.<br />

Taking digital finishing to the next level is the<br />

ability to integrate the Indigo 6900 with an HP<br />

Indigo GEM digital embellishment unit – a onepass<br />

label printing and embellishment system for<br />

spot, tactile, foil, holograms, mini textures and<br />

lamination.<br />

In the packaging sector, Kemtek’s alliance with<br />

Flint Flexographic products goes from strength to<br />

strength. Flint has extended the range with nyloflex<br />

FTF-UV plates, designed for high-resistance to UVbased<br />

inks, and nyloflex FTP for paper packaging<br />

applications such as multiwall sacks and liquid<br />

dairy cartons. Another important development<br />

between Kemtek and Flint Group is a distribution<br />

agreement that allows Kemtek to supply the full<br />

range of ThermoflexX laser imaging systems in<br />

South Africa.<br />

For more information, visit www.kemtek.co.za.<br />

35<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


in <strong>20</strong>17 for the third year in a row. Forestry SA reports that<br />

tonnage sales were nearly 2% down on the previous year, at<br />

15-million tons. Wattle showed the largest decrease while<br />

pulpwood was the only category to increase, but by less<br />

than 2%. The National Department of Agriculture, Forestry<br />

and Fisheries reports that South Africa has a shortage of<br />

sawn timber and anticipates further shortages in the future.<br />

Despite this overall trend in the national forestry picture,<br />

TWK has announced that it wants to buy 11 000 hectares of<br />

forest land to support its wood chip sales (especially to China<br />

and Japan) and timber exports. TWK is an agricultural company<br />

that grew out of the Transvaal Wattlegrowers Cooperative and<br />

which became the latest such company to be listed when it<br />

joined the ZAR X in <strong>20</strong>17.<br />

The <strong>KwaZulu</strong>-<strong>Natal</strong> provincial government's strategy of creating<br />

Industrial Economic Hubs (IEHs) includes the development<br />

and expansion of wood processing in the Harry Gwala District<br />

Municipality. This is in the wooded south-western part of the<br />

province and includes the towns of Kokstad, Harding, Ixopo and<br />

Underberg.<br />

Nampak produces crêpe paper at Verulam and Rafalo produces<br />

tissue paper. SA Paper Mills is another paper producer.<br />

Mpact's upgrade of its Felixton mill has increased capacity<br />

and improved efficiency. The project cost R765-million and<br />

takes overall production up to 215 000 tons and a lightweight<br />

containerboard option has been included in the product lines.<br />

This is in response to market demand for lighter packaging.<br />

Mpact has plastics and paper operations, with the paper<br />

section divided into three divisions: paper manufacturing,<br />

corrugated and converted paper products and recycling.<br />

The Merensky Group operates one softwood sawmill and a<br />

panel-processing plant in Kokstad that is geared to manufacture<br />

according to customers’ needs in any sector. Export is done<br />

through the Port of Durban.<br />

NCT Forestry Co-op Limited is a key timber-marketing entity<br />

with more than 2 000 members and three wood-chipping mills.<br />


Forestry South Africa: www.forestry.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Agriculture and Rural<br />

Development: www.kzndard.gov.za<br />

South African Institute of Forestry: www.saif.org.za<br />

Technical Association of the Pulp and Paper Industry of South<br />

Africa: www.tappsa.co.za<br />

R&B Timber Group has three<br />

pole treatment plants and is<br />

headquartered in Harding.<br />

Flaxton Timbers operates<br />

out of Ixopo and <strong>Natal</strong> Forest<br />

Products is in Richmond.<br />

Timber<br />

Timber plantations are<br />

found in five parts of the<br />

province: northern <strong>KwaZulu</strong>-<br />

<strong>Natal</strong>, Midlands, southern<br />

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

Maputaland. Close to half-amillion<br />

hectares – 38.5% of the<br />

land in South Africa devoted to<br />

forestry – is allocated to timber<br />

plantations. Of this area, 70%<br />

is devoted to hardwoods and<br />

the balance to pine, the only<br />

softwood grown in large<br />

quantities in South Africa.<br />

The percentage of privately<br />

owned forest land is 93.4%.<br />

Merensky has plantations in the<br />

Dargle forest while Sappi and<br />

Mondi have holdings across<br />

the province, and in other parts<br />

of South Africa.<br />

Management of the 251<br />

000 hectares of the plantation<br />

forest that Mondi has under<br />

management is done in line<br />

with sustainable forest management<br />

principles and the<br />

company is engaged in a partnership<br />

with the WWF to get<br />

different types of water users<br />

to work together in improving<br />

how water is used. Mondi has<br />

reduced its own consumption<br />

of fresh water by 12% in comparison<br />

to its use in <strong>20</strong>15.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Sustainable growth<br />

Mondi is a global leader with a culture that delivers<br />

sustainable growth.<br />

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

paper, delighting its customers and<br />

consumers with innovative and sustainable<br />

packaging and paper solutions.<br />

Mondi is fully integrated across the packaging<br />

and paper value chain – from managing forests and<br />

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

and manufacturing effective industrial and consumer<br />

packaging solutions. Sustainability is embedded in<br />

everything Mondi does.<br />

In <strong>20</strong>18, Mondi had revenues of €7.48-billion and<br />

underlying EBITDA of €1.76-billion.<br />

Mondi globally is leading the response of the<br />

packaging and paper industry in developing<br />

sustainable solutions to address key environmental<br />

and social challenges. The group is taking a sciencebased<br />

approach and working with partners across<br />

the value chain to develop innovative sustainable<br />

solutions that are fit for a circular economy. By taking<br />

a holistic view, Mondi believes it can meet the needs<br />

of each customer, their products and the planet to<br />

contribute to a better world.<br />

Peter Oswald, Mondi Group CEO, commented:<br />

“As a global packaging and paper group, it is<br />

essential for our business, as well as the planet,<br />

to drive innovation and change throughout the<br />

value chain. We don’t see sustainability as a trend,<br />

it’s a requirement. Mondi’s unique offering of highperformance<br />

paper, plastic and hybrid solutions<br />

means that we can find the most sustainable fit for<br />

each application.”<br />

Mondi South Africa<br />

Our South African business sustainably manages<br />

some 250 000 hectares of plantation forests and<br />

manufactures and sells pulp, virgin containerboard<br />

and uncoated fine paper products. We have around<br />

1 500 employees working in our forestry operations<br />

and two mills located in Richards Bay and Merebank,<br />

Durban.<br />

Strategic advantages<br />

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

position and the global competitiveness of our<br />

Richards Bay mill. With a history spanning more than<br />

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

cost-competitive and customer-focused.<br />

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

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

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

and efficiency. The fundamental principle behind<br />

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

more with less.<br />

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

that our manufacturing operations maintain their<br />

cost advantage, that our forestry operations are<br />

managed sustainably for a secure timber supply,<br />

that we support our customers' success and invest in<br />

the development of our people and communities.<br />

37 KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>

FOCUS<br />

Developing innovative solutions<br />

for a circular economy<br />

Mondi is committed to best practice in forestry<br />

management and production.<br />

Mondi South Africa is at the forefront of sustainable<br />

business practices. “It’s exciting to be playing a<br />

lead role in Mondi’s sustainability story. There are<br />

so many areas we are proud of but three stand<br />

out for me. From the work we are doing to reduce our water<br />

impact, to managing water catchment areas and wetlands<br />

through our work with partners, to using significantly less<br />

water in our operations. Second is the progress we have<br />

made in becoming a diverse and inclusive workplace, where<br />

people can grow to their full potential and contribute to our<br />

success. And then of course our globally competitive operations<br />

that produce high-quality, fully-recyclable products<br />

from sustainably sourced fibre,” explains Viv McMenamin,<br />

CEO Mondi South Africa.<br />

Sustainable fibre<br />

The sustainable management of our forestry operations is<br />

key in managing our overall environmental impact, helping<br />

to protect ecosystems, and developing<br />

resilient landscapes.<br />

Wood is one of the primary raw materials<br />

and our staff work hard to provide the<br />

best assurance for our stakeholders that<br />

the wood and fibre we use comes from<br />

responsible sources.<br />

Plantation forests in South Africa are<br />

managed in a way that secures their longterm<br />

biological integrity, social value and<br />

productivity.<br />

Maintaining FSC certification of forests<br />

is also an important part of our management<br />

approach. It assures compliance with globally<br />

recognised standards for sustainable forest<br />

management.<br />

Water as a constrained resource<br />

Given the critical importance of water to business,<br />

to local communities and to other stakeholders,<br />

we strive to manage water use wisely<br />

and efficiently – especially in water-stressed<br />

regions. We are committed to reducing the<br />

specific contact water consumption of our<br />

pulp and paper mills by 5% by <strong>20</strong><strong>20</strong>, against<br />

a <strong>20</strong>15 baseline.<br />

Drought conditions in South Africa<br />

remain a concern and we continue to look<br />

for opportunities to improve water security<br />

in the areas where we operate. The focus<br />

is on reducing water consumption, in<br />

particular at the Richards Bay mill.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Biodiversity and ecosystems<br />

FOCUS<br />

WWF-Mondi Water Stewardship<br />

Programme<br />

Mondi promotes a landscape approach to freshwater<br />

stewardship. The focus of the long-standing WWF-<br />

Mondi Water Stewardship Programme (previously<br />

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

from managing and rehabilitating wetlands with<br />

different groups of land-users (including Mondi)<br />

to catalysing water stewardship at the landscape<br />

scale, including ensuring collaboration and action by<br />

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

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

water-supply areas for KZN’s economic hubs.<br />

In <strong>20</strong>14, following many years of collaboration,<br />

Mondi Group and WWF launched a global<br />

partnership to promote responsible forestry and a<br />

sustainable pulp and packaging sector.<br />

In <strong>20</strong>17, this global partnership was extended for<br />

another three years and the WWF-Mondi Wetlands<br />

Programme was renamed the WWF-Mondi Water<br />

Stewardship Partnership, reflecting its broadening<br />

focus on catchment-based water stewardship. Water<br />

stewardship assessments were conducted for the<br />

Richards Bay mill and plantations in South Africa. This was<br />

measured against the international Alliance for Water<br />

Stewardship Standard, a globally-applicable framework<br />

for major water users to understand their water use<br />

and impacts. The outcomes are now being used to<br />

investigate meaningful, cost-effective improvements to<br />

management systems to meet the core requirements<br />

and to advance some of the requirements.<br />

In <strong>20</strong>18, Mondi joined the WWF Climate Saver's<br />

Programme, WWF's global platform to engage<br />

businesses and industries on climate and energy.<br />

Responsible forest management involves increasing<br />

the long-term productivity and preserving ecosystem<br />

values in rural landscapes and protecting<br />

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

Degradation of ecosystems and loss of habitats<br />

and species has a significant negative effect on the<br />

ecosystems that both communities and business<br />

rely on. We are committed to protecting biodiversity<br />

and ecosystem services in our forestry operations.<br />

Maintaining an effective network of highconservation<br />

value areas and valuable habitats,<br />

and on imitating natural dynamics for key types of<br />

ecosystems where possible, is another focus.<br />

Eco-efficient products<br />

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

producing unbleached kraftliner in addition to<br />

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

been welcomed by customers. Baywhite, Baycel<br />

and Baykraft products are certified for food<br />

packaging (ISEGA) and Mondi has adopted Good<br />

Manufacturing Practice (externally certified).<br />

39 KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>

FOCUS<br />

Inspiring Mondi people for<br />

long-term success<br />

Leading the way in transformation and enterprise development.<br />

has over 30 contractors as enrolled small businesses,<br />

with a focus on growing skills, management capability<br />

and improving their operational know-how.<br />

We are able to maintain a steady supply of highquality<br />

fibre from a network of small forest enterprises<br />

with on average 87 000 tonnes of the timber supplied<br />

to our Richards Bay mill coming from these suppliers.<br />

Mondi’s significant activities in a number<br />

of key areas reflect a strong commitment<br />

to transformation and B-BBEE. This<br />

is confirmed by Mondi’s Level One<br />

contributor status under the under the Forestry<br />

Sector Broad Based Economic Empowerment codes,<br />

as verified by an independent assessment.<br />

Enterprise development<br />

Mondi Zimele, established in <strong>20</strong>07, is our small<br />

business development organisation. Its initial focus<br />

was on accelerating black economic empowerment<br />

in the forestry value chain. In <strong>20</strong>12 the focus<br />

expanded to incorporate support for communitybased<br />

small businesses around Mondi’s operations.<br />

This was enabled through the establishment of the<br />

Mondi Zimele Jobs Fund, an enterprise development<br />

initiative co-funded by the Jobs Fund.<br />

Since <strong>20</strong>12, Mondi Zimele has provided<br />

approximately R100-million in loan funding to assist<br />

over <strong>20</strong>0 local businesses in the creation of more than<br />

2 800 jobs. Mondi Zimele has also been instrumental in<br />

the establishment of several land claimant community<br />

contractors where we continue to emphasise<br />

productivity improvement, business administration<br />

and compliance as the key to success for these SMEs.<br />

The Mondi Zimele and Department of Trade and<br />

Industry (dti) Forestry Contractor Incubator Programme<br />

Land claims<br />

An innovative sale and leaseback model has<br />

been developed with a successful mechanism for<br />

settling claims with and supporting land-claimant<br />

communities. Following a successful land-claims<br />

process, communities have ownership of the land<br />

and associated rental revenues but also receive<br />

assistance to develop sustainable forestry enterprises<br />

and forestry-related skills. In this way communities<br />

immediately derive a rental income from their land<br />

but also develop the know-how to potentially farm<br />

timber for themselves into the future. Approaching<br />

land reform in this developmental and inclusive way<br />

means we are able to retain a sustainable source of<br />

wood supply into the future.<br />

Skills and people development<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


FOCUS<br />


At the President’s Investment Summit in<br />

<strong>20</strong>18, Viv McMenamin, CEO Mondi South<br />

Africa, announced, “We focus on investing<br />

in our world-class assets to maintain our<br />

cost advantage. Over the next five years we<br />

will be investing a total of around R8-billion<br />

in our South African operations, which<br />

includes ongoing investment in our forestry<br />

assets and the modernisation of our pulp,<br />

containerboard and paper assets, subject to<br />

approval by the Mondi boards.”<br />

the recently expanded Ligbron E-learning system is<br />

now operational in a further three rural schools. Each<br />

e-learning classroom has an e-Boxx with a SMART<br />

interactive whiteboard, a digital camera, sound system<br />

and alarm system. This technology facilitates the weekly<br />

live streaming of mathematics and science lessons that<br />

are shared by using video conferencing and desktop<br />

sharing. During live streaming, the image of the teachers/<br />

learners from linked schools is visible on the SMART<br />

board. The SMART boards display the presentation and<br />

any student and teacher can write on the SMART board<br />

and ask questions from their own school.<br />

Mondi believes strongly that by working in<br />

partnerships with government, communities and NGOs<br />

we will be able to find sustainable land reform solutions.<br />

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

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

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

other stakeholders.<br />

www.mondigroup.com<br />

We invest significantly in skills and leadership development,<br />

offering talented individuals interesting careers as part of<br />

a global group. We are particularly proud of the progress<br />

women are making in Mondi South Africa, holding<br />

positions such as CFO, Procurement Director, Head of<br />

Mondi Zimele and as artisans, foresters, safety managers,<br />

nursery manager and in the fields of engineering, finance,<br />

human resources and more.<br />

Community development<br />

Our well-established approach is focused on investing<br />

in communities living on our land or near operations.<br />

A leading community development initiative is<br />

the Mkondo Development Project (Piet Retief), a<br />

pioneering public-private partnership focused on<br />

improving the living conditions of people in isolated<br />

villages on forestry land, and to find sustainable<br />

solutions to alleviate poverty and offering security<br />

of tenure. The pilot Jabulani Agri-village has been<br />

completed and eight other Agri-villages are in progress.<br />

The commitment to education is widespread and<br />


Viv McMenamin, CEO Mondi South Africa, adds:<br />

“Our South African business continues to be<br />

a strong contributor to Mondi’s success story.<br />

From our sustainably managed forests, to our<br />

world-class pulp and containerboard operation<br />

in Richards Bay, to being the number one office<br />

paper producer in South Africa. We believe in the<br />

value of being part of the solution to global and<br />

local sustainability challenges and I am proud<br />

of the work we are doing in partnership with<br />

our communities, government and other key<br />

stakeholders. This gives me great confidence in<br />

the future of Mondi South Africa!”<br />

41<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Mining<br />

Second smelter to be activated at Isithebe foundry.<br />


Most of South Africa’s export<br />

coal passes through the<br />

Richards Bay Coal Terminal.<br />

Finnish company Metso will spend about R53-million on building<br />

a second furnace at its Isithebe foundry in the iLembe District<br />

Municipality. This is in response to increased demand for large<br />

crusher wear parts. The <strong>KwaZulu</strong>-<strong>Natal</strong> foundry is one of five<br />

foundries the company runs on four continents.<br />

The renovated foundry will be able to manufacture wear parts for<br />

the Nordberg® MP2500 cone crusher as well as for Metso and third-party<br />

primary gyratory wear parts. The first products from the new furnace<br />

are scheduled for May <strong><strong>20</strong>19</strong>.<br />

RBM mines the minerals sands of the northern <strong>KwaZulu</strong>-<strong>Natal</strong> coast<br />

and operates out of Richards Bay. The main products of the RBM mine are<br />

zircon, rutile, titania slag, titanium dioxide feedstock and high-purity iron.<br />

Tata Steel KZN's high-carbon ferrochrome plant at Richards Bay<br />

went into business rescue and then liquidation before being bought<br />

by Luxembourg-based Traxys Africa in the middle of <strong>20</strong>16, after a court<br />

ruled in its favour. Traxys has chrome mines Mpumalanga and Limpopo<br />

provinces. Tata Steel did not have its own mines.<br />

The KZN Sands mineral sands operation comprises a central<br />

processing complex in Empangeni and the Fairbreeze Mine. Expenditure<br />

over several years (which started in <strong>20</strong>16) is expected to rise to R5-billion<br />

as it expands. Tronox, which is listed on the New York Stock Exchange,<br />

is the major shareholder in KZN Sands.<br />

The development of a new titanium dioxide pigment plant was<br />

announced in <strong>20</strong>17 by Nyanza Light Metals and its technology partner,<br />


Geological Sciences, University of KZN: www.geology.ukzn.ac.za<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

Avertana of New Zealand. The use of<br />

stockpiled waste slag (from mines in<br />

Mpumalanga) sets this R4.5-billion<br />

project apart. Other products<br />

will include gypsum, aluminium<br />

sulphate and magnesium sulphate.<br />

Production was scheduled to begin<br />

in <strong><strong>20</strong>19</strong>.<br />

The Hillside aluminium smelter<br />

at Richards Bay run by South Africa<br />

Aluminium is now a 100% South32<br />

asset. Most of the product (highquality<br />

primary aluminium ingot)<br />

is exported but some liquid metal<br />

form is sent to Isizinda Aluminium<br />

which supplies Hulamin, a<br />

company that has had a rolling<br />

mill in Pietermaritzburg since<br />

1949. Hulamin is the only major<br />

aluminium rolling operator in the<br />

region and it makes rolled products<br />

and extrusions.<br />

Other processing facilities in<br />

the province include the steel<br />

plant owned by Arcelor Mittal in<br />

Newcastle and Safa Steel's metalcoating<br />

factory in Cato Manor.<br />

Some of the coalfields of the<br />

province have been revived.<br />

Petmin's Somkhele Anthracite Mine,<br />

north of Richards Bay, has one of<br />

the biggest reserves of open-pit<br />

anthracite in South Africa, with<br />

measured and indicated reserves<br />

of more than 51-million tons across<br />

its four areas.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Engineering<br />


Construction is booming north of Durban.<br />


Marine engineering is a<br />

provincial strength.<br />

Property company Tongaat Hulett Developments won Visionary<br />

Client of the Year at an engineering awards event in <strong>20</strong>17, a<br />

recognition of how much construction is underway north of<br />

Durban on land that used to be covered in sugar cane.<br />

The South African construction sector is experiencing tough times,<br />

with more than one company going into business rescue in <strong>20</strong>18,<br />

which could explain why the annual Cesa Aon Engineering Excellence<br />

Awards acknowledged the developer of eight large projects covering<br />

commercial, industrial, retail and residential.<br />

The other mega-project that has created a lot of work for engineers<br />

has been the multi-year Western Aqueduct project to bring fresh water<br />

to greater Durban.<br />

The Western Aqueduct Joint Venture comprising three companies,<br />

Knight Piésold Consulting, Naidu Consulting and Royal Haskoning DHV,<br />

acted as agents for eThekwini Water and Sanitation. Stefanutti Stocks<br />

Pipelines played a big role, and there were opportunities for excellence<br />

and innovations in areas such as break-pressure tanks which were<br />

designed by Royal Haskoning DHV and built by ICON Construction.<br />

Marine repair and engineering form a significant sector in the<br />

province, with established companies such as EBH South Africa offering<br />

comprehensive services at the ports of Durban and Richards Bay<br />

(pictured). Both ports are expanding (Durban is building a cruise liner<br />

terminal, for example) and will continue to attract engineers.<br />


Consulting Engineers South Africa: www.cesa.co.za<br />

Engineering Council of South Africa: www.ecsa.co.za<br />

South African Forum of Civil Engineering Contractors:<br />

www.safcec.org.za<br />

Southern African Institute for Industrial Engineering:<br />

www.saiie.co.za<br />

Dormac, which is headquartered<br />

in the Bayhead area of the Port of<br />

Durban, is best known for its marine<br />

engineering but it offers specialised<br />

services to the sugar industry and<br />

provides machinery for industrial<br />

giants like Toyota and Defy.<br />

All of the province's biggest<br />

industries require sophisticated<br />

engineering skills: aluminium<br />

smelters in Richards Bay and steel<br />

works in Newcastle, Richards Bay<br />

and Cato Ridge. There are also<br />

chemicals and plastics production<br />

plants, and large automotive works.<br />

The Transnet Engineering (TE)<br />

plant in the Port of Durban houses<br />

six business units and has 3 555<br />

employees. The Coach unit upgrades<br />

coaches and the Auxiliary<br />

business is the main supplier of<br />

rail wagon tarpaulins to Transnet<br />

Freight Rail. The Port Equipment<br />

Maintenance unit and units specialising<br />

in wheels and locomotive<br />

overhaul are other entities. There<br />

are a further six depots located<br />

around the province.<br />

The School of Engineering at the<br />

University of <strong>KwaZulu</strong>-<strong>Natal</strong> offers a<br />

variety of degree options, ranging<br />

from undergraduate qualifications<br />

to doctorates. The School offers<br />

eight areas of specialisation<br />

including Bioresources, Electronic<br />

and Computer Engineering, and<br />

Land Surveying.<br />

43<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Oil and gas<br />

Italian company Eni has offshore<br />

prospecting rights.<br />

Eni, one of the world’s biggest energy companies, has an<br />

agreement with Sasol Petroleum International to explore for<br />

hydrocarbons off the coast of <strong>KwaZulu</strong>-<strong>Natal</strong>. The permit<br />

was granted in <strong>20</strong>13 but moves to start operations in <strong>20</strong>18<br />

attracted the attention of concerned environmentalists. Eni, which<br />

has headquarters in Rome and operates in 71 countries, has several<br />

projects off the coasts of Mozambique and Kenya.<br />

The regulator and promoter of oil and gas exploration in South<br />

Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas<br />

exploration rights in <strong>KwaZulu</strong>-<strong>Natal</strong> to NT Energy<br />

Africa, which has a partnership with the Central Energy Fund. These<br />

awards are for onshore exploration. The Petroleum Agency SA is an<br />

agency of the National Department of Energy.<br />

If a private partner can be found, a liquid natural gas (LNG) plant<br />

will produce 2 000MW on a site in Richards Bay. This forms part of<br />

national government's allocation of 3 126MW to natural gas in its<br />

medium-term energy policy to <strong>20</strong>30.<br />

The National Department of Energy (DoE) decided in <strong>20</strong>16<br />

that one of the first two gas-to-power plants to be constructed<br />

under the Independent Power Producer Procurement Programme<br />

would be allocated to Richards Bay. This has the potential to<br />

turn the Richards Bay Industrial Development Zone (RBIDZ) into<br />

an energy hub. The fact that neighbouring Mozambique has<br />

significant offshore deposits is a factor in this ambition. To produce<br />

its allocation of 2 000MW, the plant would have to use a million<br />

tons a year of liquid natural gas (LNG).<br />


National Energy Regulator of South Africa: www.nersa.org.za<br />

Petroleum Agency SA: www.petroleumagencysa.com<br />

South African National Energy Association: www.sanea.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />


A liquid natural gas plant is<br />

planned for Richards Bay.<br />

A new unit within the National<br />

Department of Trade and Industry<br />

(dti) is focussed on importing LNG,<br />

particularly from Mozambique and<br />

Botswana. Local demand for LNG is<br />

expected to increase to more than<br />

10-million tons per annum.<br />

Getting fuel to the province<br />

of Gauteng is the key mission of<br />

the new multi-purpose pipeline<br />

(NMPP) which started delivering<br />

fluids in <strong>20</strong>12. Refined products<br />

such as jet fuel, sulphur diesel<br />

and both kinds of octane petrol<br />

are carried. The infrastructure of<br />

Transnet Pipelines is said to reduce<br />

the number of fuel tankers on<br />

South African roads by about 60%.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is home to two<br />

major oil refineries and is the first<br />

link in the pipeline chain that links<br />

Gauteng province, the industrial<br />

heartland of South Africa, with<br />

vital fuels. The Port of Durban<br />

handles 80% of South Africa's fuel<br />

imports. <strong>KwaZulu</strong>-<strong>Natal</strong> is thus a<br />

key player in the country’s oil and<br />

gas industry.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Construction and property<br />

Infrastructure and multi-use developments are forging ahead.<br />


Development on the N3 is<br />

underway.<br />

Job losses and business rescues were recurring themes in<br />

the South African construction sector in <strong>20</strong>17 and <strong>20</strong>18. The<br />

announcement in late <strong>20</strong>18 that work on the R4.3-billion Oceans<br />

Umhlanga project had been halted confirmed that <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> was not immune to these trends, but indications were that work<br />

on the residential, hotel and retail mall development will resume in <strong><strong>20</strong>19</strong>.<br />

A number of other large projects in the province are bucking the<br />

national trend. According to the organisers of the KZN Construction<br />

Expo, which was held in February <strong><strong>20</strong>19</strong>, infrastructure will attract more<br />

than R<strong>20</strong>0-billion over seven years and R35-billion will be spent over<br />

15 years at the Port Waterfront development.<br />

The King Shaka International Airport and associated Dube TradePort<br />

are also attracting property investments. Two new industrial parks are<br />

being developed: Cornubia is part of a larger project near Umhlanga<br />

and Clairwood in Durban South will offer more than 300 000m² of<br />

A-grade industrial space.<br />

Tongaat Hulett has for several years been rolling out a series of<br />

developments on land it owns north of Durban, but in <strong>20</strong>18 it launched<br />

the nTshongweni Urban Development on either side of the busy N3<br />

highway west of the city. Land use will be housing, light industry and<br />

logistics with a private developer, Fundamentum Asset Management,<br />

committed to building a shopping mall in the central business district.<br />

The website of Tongaat Hulett Developments (THD) lists 16<br />

completed projects, including La Lucia Ridge and the Zimbali Coastal<br />


Construction Industry Development Board: www.cidb.org.za<br />

Master Builders Association <strong>KwaZulu</strong>-<strong>Natal</strong>:<br />

www.mba-kzn.co.za<br />

SA Estate Agency Affairs Board: www.eaab.org.za<br />

SA Institute of Valuers: www.saiv.org.za<br />

Resort. Some current projects are<br />

massive in scale. Cornubia covers<br />

1 300 hectares about 7km from<br />

the airport and encompasses<br />

industrial, commercial, residential<br />

sections.<br />

The Sibaya Casino and<br />

Entertainment World is located<br />

within the Sibaya Coastal Precinct<br />

which THD is building as seven<br />

distinct nodes along 1 000 hectares<br />

of coast. Bridge City (pictured) is one<br />

of the most ambitious projects:<br />

a joint venture between the<br />

eThekwini Municipality and Tongaat<br />

Hulett, it is a presidential project that<br />

combines industrial, commercial,<br />

retail and residential opportunities<br />

located between Pinetown and<br />

Umhlanga Ridge.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a number of<br />

brick companies and four cement<br />

factories. Three of these are run by<br />

NPC-Cimpor (at Simuma, Durban<br />

and Newcastle), and the company<br />

has a further six sites for concrete<br />

and two for aggregate. Lafarge has<br />

a large depot and cement clinkergrinding<br />

operation in Richards Bay,<br />

six aggregate quarries and eight<br />

Readymix plants around the province.<br />

The Supreme Award for<br />

Excellence in Construction<br />

(Master Builders <strong>KwaZulu</strong>-<strong>Natal</strong>)<br />

was awarded in <strong>20</strong>18 to WBHO<br />

Construction for the Absa Regional<br />

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

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Water<br />


South Africa’s first mobile desalination plant has been installed.<br />


Durban wastewater is to get<br />

new technology.<br />

Richards Bay has installed a 10-container desalination plant<br />

next to the municipal water treatment plant at Alkanstrand.<br />

The first mobile sea water purification unit in South Africa, it<br />

comprises 10 containers and is located adjacent to the water<br />

treatment plant at Alkantstrand. It can deliver 10 megalitres of drinking<br />

water. However, the high cost of electricity means that the unit is used<br />

sparingly. Solar energy is being investigated as a possible alternative.<br />

In <strong>20</strong>18 JG Afrika delivered a R72-million desalination plant (pictured)<br />

to South32's Hillside aluminium smelter in the same town.<br />

New technology has been installed at the Verulam Wastewater<br />

Treatment Works of the eThekwini Municipality. Murray & Roberts Water<br />

and its European technology partner, Organica Water, has installed<br />

an environmentally-friendly system that uses 30% less energy and<br />

produces 30% less sludge.<br />

The area north of the Durban central business district is one of the<br />

fastest-growing urban areas in South Africa, with a number of large<br />

office and accommodation projects going ahead simultaneously. This<br />

is a welcome development for the economy, but the new buildings<br />

also create pressure on infrastructure.<br />

The multi-year, R250-million Northern Aqueduct Augmentation<br />

project was initiated in <strong>20</strong>14 and the fifth phase of the project has<br />

recently begun. This will provide water for Durban North, Umhlanga,<br />

Newlands, KwaMashu, Phoenix and Cornubia.<br />


Mhlathuze Water: www.mhlathuze.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Umgeni Water: www.umgeni.co.za<br />

Water Research Commission: www.wrc.org.za<br />

One of the many challenges faced<br />

by the South African water sector<br />

is a shortage of engineers. A study<br />

jointly commissioned by the Water<br />

Research Commission and the<br />

South African Local Government<br />

Association (SALGA) found that the<br />

country's four-in-a-million ratio of<br />

engineers is a long way from the<br />

required 50-per-million.<br />

Umgeni Water currently supplies<br />

more than 400m³ of potable water<br />

to its six large municipal customers:<br />

eThekwini Metropolitan Municipality,<br />

iLembe District Municipality, Sisonke<br />

District Municipality, Umgungundlovu<br />

District Municipality, Ugu District<br />

Municipality and Msunduzi Local<br />

Municipality. The company has five<br />

dams, 10 waterworks, five watertreatment<br />

plants and two wastewater<br />

works.<br />

Large parts of the northern part of<br />

the province are served by Mhlathuze<br />

Water. The utility has assets valued at<br />

more than R3-billion and its area of<br />

supply covers 37 000m².<br />

Nedbank is putting R9-million<br />

over five years into clearing alien<br />

vegetation in the country's watercatchment<br />

areas, including in<br />

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

sponsorship of the WWF's Water<br />

Balance Programme has seen water<br />

flowing more freely in the Umgeni<br />

catchment area.<br />

49 KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Manufacturing<br />

The Blue and Green economies hold potential for KZN manufacturers.<br />


ArcelorMittal SA turned a<br />

profit for the first time since<br />

<strong>20</strong>10.<br />

• Africa Bespoke Apparel has<br />

opened in Verulam.<br />

The manufacturing sector contributes 17.7% to the provincial<br />

Gross Domestic Product (GDP) of <strong>KwaZulu</strong>-<strong>Natal</strong>. The<br />

strongest export sectors are base metals (32% including<br />

aluminium), mineral products such as ores, vehicles and<br />

chemical products.<br />

New opportunities in the Blue economy (ship-building and<br />

maintenance, oil rig repair and servicing) and the Green economy (solar<br />

panel manufacture, solar, biogas and wind energy plant construction,<br />

management and maintenance, heating and cooling devices) are set<br />

to grow in <strong>KwaZulu</strong>-<strong>Natal</strong> with the allocation of geographical hubs to<br />

support these sectors, and the introduction of policies and incentives<br />

designed to make them competitive.<br />

The Richards Bay Industrial Development Zone has been identified as<br />

an area that can attract investment in both of these sectors while the Port<br />

of Durban already has a strong boat-building and maintenance sector.<br />

The nine-tug contract put out by Transnet National Ports Authority<br />

(TNPA) is worth R1.4-billion and was won by Durban-based Southern<br />

African Shipyards in Durban. Most of the tugs have been built and sent<br />

to ports around the country.<br />

iLembe District Municipality is intended as the renewable energy<br />

hub of the province, with renewable energy components manufacturing<br />

as a key subsector.<br />

The first beneficiary of national government’s black industrialist<br />

support programme was revealed in January <strong><strong>20</strong>19</strong> when Africa Bespoke<br />

Apparel launched its R81-million factory (pictured) in Verulam. Various<br />

interventions in the textile, footwear and clothing sector have helped<br />

to revive the industry.<br />

The footwear sector in particular is showing good recovery after<br />

taking a battering from Chinese imports. The purchase of 39% of<br />

Eddels Shoes by management and<br />

staff has paid off, with 385 staff<br />

employed in making 2 700 leather<br />

shoes every day. Two international<br />

safety footwear firms operate out<br />

of Pinetown: Bata Industrial and<br />

Beier. The latter company has joined<br />

forces with three other South African<br />

safety footwear manufacturers to<br />

form the BBF Safety Group.<br />

Shanghai, with which<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has signed a<br />

memorandum of understanding,<br />

has agreed to run an exchange<br />

programme focussing on<br />

clothing and textiles.<br />

Canvas and Tent Manufacturing<br />

(Pty) Ltd has more than 400<br />

employees in Ladysmith. There<br />

are 219 clothing companies in the<br />

province (Coface). Ninian & Lester<br />

has about 1 500 employees.<br />

Carpet manufacturers Belgotex<br />

Floorcoverings and Ulster Carpets<br />

have facilities in Pietermaritzburg<br />

and Durban respectively. Home<br />

appliance manufacturer Defy, which<br />

is part of the Turkish group Arçelik,<br />

employs about 2 600 people. Böhler<br />

Uddeholm in Pinetown produces<br />

tooling materials and welding<br />

consumables.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Chemical assets<br />

Two large oil refineries and a sophisticated sugar milling and refining<br />

industry underpin provincial chemical manufacturing. The chemicals<br />

and petrochemicals subsector makes up 17% of the manufacturing<br />

output of <strong>KwaZulu</strong>-<strong>Natal</strong>, with industrial chemicals accounting for<br />

nearly a third. Steel and aluminium are other heavy manufacturing<br />

products. The automotive industry is covered in a separate article.<br />

Newcastle is a chemical manufacturing hub. The big steel works<br />

of ArcelorMittal SA produce by-products such as ammonium sulphate,<br />

and large companies such as Karbochem, Bayer, African Amines and<br />

SA Calcium Carbide also operate in the area. ArcelorMittal SA turned a<br />

profit in <strong>20</strong>18 for the first time since <strong>20</strong>10, based on increased demand<br />

from other parts of Africa.<br />

To take advantage of the existing strengths of cities and districts<br />

in the province, a network of Industrial Economic Hubs (IEHs) is being<br />

developed in <strong>KwaZulu</strong>-<strong>Natal</strong>. Leading the process is the Department<br />

of Economic Development, Tourism & Environmental Affairs (DEDTEA).<br />

A Halaal Manufacturing Park is being considered by DEDTEA,<br />

finance institution Ithala, the South African National Halaal Authority<br />

and business leaders.<br />

Hulamin is a leader in aluminium finished products. The company<br />

makes rolled products at Edendale, Pietermaritzburg and Camps Drift<br />

while its Pietermaritzburg facility for making extrusions is one of the<br />

three in the country.<br />

The group headquarters of Africa’s biggest pharmaceutical<br />

manufacturer, Aspen, are in La Lucia Ridge. German chemicals group<br />

Lanxess has built a carbon dioxide concentration unit at its existing<br />

plant in Newcastle. The company makes tanning raw materials at<br />

Merebank in Durban and rubber chemicals in Isithebe north of Durban.<br />

AECI has a big presence in the province under the Chemical Services<br />


Aluminium Federation of South Africa: www.afsa.org.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

Enterprise iLembe: www.enterpriseilembe.org.za<br />

Manufacturing Circle: www. manufacturingcircle.co.za<br />

Plastics SA: www.plasticsinfo.co.za<br />

banner. Chemical Initiatives runs<br />

an elemental-nutrient sulphur<br />

plant in Umbogintwini. SA Paper<br />

Chemicals operates a big plant<br />

at Isithebe. Protea Chemicals,<br />

has a large manufacturing plant<br />

at Mobeni.<br />

Sappi Saiccor's Umkomaas<br />

plant is the biggest producer<br />

of specialised cellulose in the<br />

world with production edging<br />

upwards every year towards<br />

full capacity of 800 000 tons<br />

per annum. Illovo Sugar<br />

manufactures downstream<br />

products such as furfural (used<br />

in lubrication oil), furfuryl<br />

alcohol, diacetyl (a flavouring<br />

in margarine) and ethyl alcohol.<br />

Kynoch makes fertilizer at<br />

plants in Durban and Richards<br />

Bay. Foskor's acid division<br />

manufactures sulphuric acid,<br />

phosphoric acid and granular<br />

fertilizer in Richards Bay.<br />

ChemSpec makes paint at<br />

Canelands.<br />

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

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

plastic requirements. Nampak<br />

has several packaging facilities<br />

in the province and MPact’s<br />

Pinetown facility specialises<br />

in FMCG containers. Macbean<br />

Beier Plastics and PCI also<br />

operate out of Pinetown.<br />

Packaging and paper<br />

group Mondi’s Richards Bay<br />

mill and its paper plant at<br />

Merebank are among the<br />

province’s most significant<br />

manufacturing sites.<br />

51 KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>



Quality throughout<br />

Automotive<br />

Mahindra bakkies are being assembled at the Dube TradePort.<br />

In <strong>20</strong>18 AIH Logistics started assembling Mahindra and Bolero<br />


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<br />

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<br />

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<br />

the Mahindra contract.<br />

a tow bar manufacturer.<br />

The air-suspended seats and cabs create industry-leading comfort that drives productivity, safety and<br />

The ensures intention driver satisfaction. is to make 2 500 bakkies per year, with an option<br />

to expand production to 4 000 and to increase sales of bakkies in<br />

the South Well matched African engines market. and The drivetrains company bolster sold performance 4 650 bakkies and in the <strong>20</strong>18, ability to Richards deliver results Bay while facility stronger of heavyequipment<br />

manufacturer Bell<br />

about<br />

fabricated<br />

half of its<br />

structures<br />

vehicle<br />

promote<br />

sales in<br />

durability.<br />

South Africa.<br />

Brink Towing Systems is not just supporting a local SMME, it Equipment, upwards of 11 000<br />

is hosting one in its Pietermaritzburg factory. Brink has recently people are employed. Both<br />

increased annual capacity to 100 000 units which will mean more companies are market leaders.<br />

work<br />

Industry<br />

for The Bag Ladies, who<br />

leading<br />

produce protective<br />

components<br />

bags for the tow Bell is in the process of<br />

bars. The Bag Ladies previously repaired clothing and did some bag transferring production of its<br />

making, but with their own premises within the Brink facility (and current truck range to its factory<br />

advice on business management and the purchase of industrialstrength<br />

sewing machines), they can now set their sights higher. in size to accommodate the<br />

in Germany, which will double<br />

Brink’s largest customer is the Ford Ranger.<br />

growing demand for trucks in<br />

The Mathe Group’s tyre recycling plant at Hammarsdale has Europe and America. The shift<br />

quickly increased capacity to 150 000 used truck tyres per year and will not affect employment<br />

Over 2 million engines built Inter-wheel and inter-axle Durable ZF gearboxes deal with Air-conditioned ergonomic<br />

intends prove going strength past and reliability. <strong>20</strong>0 000 differential soon. A lock quarter for increased of the harsh rubber environments. crumb levels cabs at with the air-suspended Richards seats Bay<br />

product goes to Van Dyck Floors.<br />

traction.<br />

Other applications include modified site<br />

for<br />

because<br />

operator comfort.<br />

Bell will start<br />

bitumen and as a component of artificial grass.<br />

assembling Kamaz heavy-duty<br />

www.bellequipment.com l 3<br />

Toyota South Africa and Bell Equipment are manufacturing giants. trucks in <strong><strong>20</strong>19</strong> for the African<br />

Between the Toyota plant at Prospecton south of Durban and the market. Kamaz (pictured), a<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Russian brand that has won 14 Dakar rallies, is known for its reliability<br />

in tough conditions. Bell’s intention is to increase the percentage<br />

of local components over time.<br />

Bell is best known for its heavy equipment which is primarily<br />

used in the mining and construction sectors. The listed company<br />

reported a 6% rise in revenue for the six months to June <strong>20</strong>18, an<br />

amount of R3.7-billion.<br />

Toyota recently invested a further R6.1-billion into its already<br />

very large plant at Prospecton. The company regularly sells about<br />

a quarter of the vehicles sold in South Africa, and accounts for<br />

the same proportion of export volumes. The Corolla car, the Hilux<br />

bakkie and the Fortuner SUV are manufactured at the plant.<br />

Powerstar, a Chinese state-owned brand, assembles trucks<br />

in Pietermaritzburg on a site formerly used by Super Group.<br />

The companies that make Powerstar in Asia are the China North<br />

Vehicle Corporation (Norinco Motors) and BEIBEN, who produce<br />

about 60 000 heavy-duty commercial duty vehicles every year<br />

at their plant in Inner Mongolia.<br />

Automotive components<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a substantial and varied automotive components<br />

sector which includes large manufacturers such as Apollo Tyres and<br />

GUD Filters. Thirty-nine companies are currently members of the<br />

Durban Automotive Cluster which is funded by the municipality.<br />

Together, these firms have about 17 000 employees.<br />

In line with the policy of developing Industrial Economic Hubs,<br />

the Durban Automotive Supplier Park is being built at Illovo, south<br />

of Durban and near to the Toyota plant. The Dube TradePort<br />

Corporation will manage the project, which covers 1 013ha. Other<br />

partners are the eThekwini Municipality, Toyota and the provincial<br />

government. The aim is to attract car assembly and component<br />

manufacturing companies.<br />

Trade and Investment <strong>KwaZulu</strong>-<strong>Natal</strong> (TIKZN) estimates that<br />

the province's component automotive manufacturers enjoy a<br />

combined turnover approaching R10-billion.<br />


Automotive Industry Development Centre: www.aidc.co.za<br />

Africa (NAAMSA): www.naamsa.co.za<br />

Durban Automotive Cluster: www.dbnautocluster.org.za<br />

Manufacturers (NAACAM): www.naacam.co.za<br />

National Association of Automotive Component and Allied<br />

National Association of Automobile Manufacturers of South<br />

Keeping MAN and Toyota supplied<br />

is the R300-million operation,<br />

Duys Engineering Group.<br />

This diverse group of companies<br />

includes in its business plan the<br />

supply of truck bodies and truck<br />

components and has production<br />

plants at New Germany<br />

(Pinetown) and Richards Bay,<br />

from where it services the mining<br />

industry. Toyota Boshoku<br />

manufactures seats and does<br />

the interior trim on contract for<br />

Toyota.<br />

International company GUD<br />

Filters has a big presence in<br />

the province. Headquartered in<br />

Prospecton, where more than<br />

1 500 people work at one of<br />

its factories, the company has<br />

another plant in Pietermaritzburg<br />

and a distribution centre in<br />

Pinetown that concentrates on<br />

exports.<br />

Indian-owned Apollo Tyres SA<br />

makes Dunlop products at two<br />

large factories in the province:<br />

truck tyres are made in Durban<br />

where 840 workers are employed<br />

and a passenger car tyre plant in<br />

Ladysmith (1160 employees). The<br />

Durban factory devotes 40% of<br />

production to supplying the truck<br />

and earthmoving market. Both<br />

plants make about 25 000 tons of<br />

tyres with half of the passenger<br />

tyres being exported.<br />

The Behr Group (airconditioning<br />

and cooling systems)<br />

has a factory and its headquarters<br />

in Durban. Ramsay Engineering<br />

supplies cross-car beams for BMW<br />

and Ford. Funding was received<br />

from the Industrial Development<br />

Corporation (IDC) to buy new<br />

tool-making technology to make<br />

this possible.<br />

53<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


ICT<br />

Port Shepstone has a new incubator.<br />


Dube iConnect is an accredited<br />

service provider.<br />

A<br />

SmartXchange SMME Incubator has been launched in Port<br />

Shepstone on the South Coast. The concept of ICT has been<br />

expanded to include media and electronics, so the hub is<br />

called an MICTe Incubator.<br />

The province’s SmartXchange is an example of a successful publicprivate<br />

partnership that supports businesses in the information<br />

technology and communications sector. Incubation strategies for startups<br />

and skills development (including links to educational institutions)<br />

are important parts of the organisation’s brief. After the successful<br />

launch of the first such incubator outside Durban in the Ray Nkonyeni<br />

Local Municipality, there are now plans to establish three more, at<br />

Newcastle, Richards Bay and Pietermaritzburg.<br />

Spending on information and communications technology (ICT)<br />

has been steadily increasing in the private and public sectors in recent<br />

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

The eThekwini Metropolitan Municipality, which administers<br />

Durban, has actively been promoting ICT since the launch of its<br />

MetroConnect programme in <strong>20</strong>08. A key component of the strategy<br />

has been the sale at hugely discounted rates of spare capacity on the<br />

municipal fibre network.<br />

The Dube TradePort (pictured) has spent more than R100-million on<br />

ICT infrastructure that includes two data centres. Dube iConnect has<br />

a licence from the Independent Communications Authority of South<br />

Africa to be a service provider. An advanced metro Ethernet network<br />

connects businesses within the precinct and surrounding areas with<br />

one another and with the world.<br />


Dube TradePort: www.dubetradeport.co.za<br />

Information Technology Association of South Africa:<br />

www.ita.org.za<br />

SmartExchange: www.smartxchange.co.za<br />

South African Vanguard of Technology: www.savant.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has an established<br />

skills base in microprocessors and<br />

radio-based systems and a strong<br />

manufacturing base.<br />

Some companies within the<br />

domestic sector specialise in supporting<br />

specific systems. In the case of<br />

Pinetown-based RN Software, support<br />

is provided for Syspro, an enterprise<br />

resource software (ERP) system most<br />

commonly applied to manufacturing<br />

and logistics to enhance performance<br />

and control costs.<br />

South African Vanguard<br />

of Technology (Savant) is a<br />

Department of Trade and Industry<br />

(dti) programme. It is the marketing<br />

and awareness programme for the<br />

South African ICT and electronics<br />

sector. The aim is to develop South<br />

African exports and to attract foreign<br />

investment.<br />

The State Information Technology<br />

Agency (SITA) is a state-owned<br />

enterprise that provides ICT services<br />

to government and leads projects<br />

in the sector.<br />

Sentech is the state agency that<br />

provides broadband infrastructure<br />

and signals for the country's<br />

broadcasters. Internet connectivity<br />

is provided to government<br />

departments, municipalities and<br />

other institutions through a VSAT<br />

service.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Education and training<br />

University research is linked to development issues.<br />


The reputation of the University of <strong>KwaZulu</strong>-<strong>Natal</strong> (UKZN) as a<br />

leading research institution was enhanced in <strong>20</strong>18 with the<br />

opening of a Chemistry Postgraduate Research Facility at the<br />

School of Chemistry and Physics in Pietermaritzburg.<br />

The university aims to align its research programme with important<br />

areas of development such as food security, health, liveable cities and<br />

climate change. The R30-million facility was funded mainly by the<br />

National Department of Higher Education and Training (DHET). UKZN<br />

also hosts the National Research Foundation.<br />

There are two universities and two universities of technology in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, and the national distance university, the University of<br />

South Africa (Unisa), has a presence in five locations. USB Executive<br />

Development offers business courses for executives.<br />

The Durban University of Technology (DUT) has six faculties<br />

operating in seven campuses in Durban and in the Midlands. DUT is<br />

well known for its outstanding graphic-design school and offers one<br />

of only two chiropractic programmes in South Africa.<br />

The University of Zululand offers diploma and degree courses on<br />

two campuses at Empangeni and Richards Bay.<br />

The unbundling from the successful Curro group of a separate<br />

tertiary entity which listed on the JSE as Stadio Holdings is a good<br />

indicator of the growth of the private sector in education. Stadio<br />

currently has three institutions: Southern <strong>Business</strong> School, AFDA (the<br />

School for the Creative Economy) and the Embury Institute for Higher<br />

Education which has recently opened a campus in Musgrave, Durban.<br />

There are six Curro schools in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Advtech, the other big private company, has 27 tertiary campuses<br />

nationally, in addition to its 78 schools operating under a variety of<br />

labels. Advtech operates 10 educational sites in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

The Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong>, through the national<br />

Expanded Public Works Programme (EPWP) and other job creation<br />

programmes has committed to providing training to marginalised<br />


Independent Schools Association of Southern Africa:<br />

www.isasa.org<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Education:<br />

www.kzneducation.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />


Training is part of the Expanded<br />

Public Works Programme.<br />

communities to help people<br />

become more employable. In<br />

<strong>20</strong>18, more than 41 000 full-time<br />

equivalent jobs and 166 000 work<br />

opportunities were offered, and<br />

this is set to increase.<br />

Technical and Vocational<br />

Education and Training (TVET)<br />

Colleges are tasked with bridging<br />

the skills gap. TVET colleges are<br />

concentrating on 13 trade areas,<br />

including bricklayers, millwrights,<br />

boilermakers and riggers. <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> has nine such colleges with<br />

a total enrolment of about 80 000.<br />

R16.5-billion has been allocated<br />

by national government to skills<br />

development and infrastructure<br />

over the medium term.<br />

Coastal KZN TVET College gives<br />

students practical experience<br />

through facilities such as the<br />

Nongalo Industrial Park, where<br />

school furniture is repaired, and<br />

burglar bars and computer tables<br />

are made. The college has several<br />

sites on the South Coast and caters<br />

for 15 400 students.<br />

Majuba TVET College focuses<br />

on engineering as the coal and<br />

steel industries are prominent in<br />

Newcastle. The Mnambithi TVET<br />

College is located in the Battlefields<br />

Route tourism area and offers<br />

National Diploma courses in tourism,<br />

among other qualifications.<br />

55<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Banking and financial services<br />

New banks are changing the face of the sector.<br />

When Capitec was granted a banking licence in 1999, it was<br />

a rare event. Since <strong>20</strong>17, a number of new entrants have<br />

started to change the face of South African banking.<br />

Tyme, or Take Your Money Everywhere, was granted<br />

a licence in <strong>20</strong>17.<br />

Other prospective new banks are state-related enterprises: Ithala,<br />

Postbank and a Human Settlements Development Bank. The Ithala<br />

Development Finance Corporation has functioned for many years in<br />

the province as the provider of funds for small enterprises, especially<br />

in areas where infrastructure is poor and access to traditional banking<br />

services is not good. The provincial government, which runs Ithala,<br />

wants to launch it as a bank.<br />

Three state entities are merging to create the new Human<br />

Settlements Development Bank: the National Housing Finance<br />

Corporation, the Housing Loan Fund and the National Urban<br />

Reconstruction and Housing Agency.<br />

The focus will be on financing housing for poorer households and<br />

for large state-funded housing projects. Part of the drive is to integrate<br />

cities better and to combat the legacy of the spatial divide that apartheid<br />

left behind. Private sector investment will be sought.<br />

The Chartered Institute of Government Finance, Audit and Risk Officers<br />


Association for Savings and Investment South Africa:<br />

www.asisa.org.za<br />

Chartered Institute of Government Finance, Audit and Risk<br />

Officers: www.cigfaro.co.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

Insurance Institute of South Africa (<strong>KwaZulu</strong>-<strong>Natal</strong>):<br />

www.iikzn.co.za<br />

South African Institute for Chartered Accountants:<br />

www.saica.co.za<br />


Cigfaro's annual conference is<br />

in Durban in <strong><strong>20</strong>19</strong>.<br />

(Cigfaro) advises institutions, trains<br />

its members in public finance<br />

and promotes the interests of<br />

professionals in the public sector.<br />

It also develops and assesses<br />

qualifications and advises tertiary<br />

institutions on the requirements for<br />

course. Cigfaro also runs Public Sector<br />

Audit and Risk training sessions and<br />

the national conference will be held<br />

in Durban in October <strong><strong>20</strong>19</strong>.<br />

The South African Institute for<br />

Chartered Accountants International<br />

will provide training in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> (Umhlanga) in financial<br />

reporting standards for SMMEs<br />

while the the Insurance Institute of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> (IISA) holds regular<br />

education workshops. One such<br />

meeting, a legislative workshop, is<br />

jointly hosted by IISA, the Financial<br />

Sector Conduct Authority and the<br />

South African Institute for Chartered<br />

Accountants. The institute’s<br />

mentorship programme is run in<br />

association with the Musifunde<br />

Training Centre.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Development finance and<br />

SMME support<br />


Support is available for entrepreneurs.<br />

A<br />

small business can become a substantial business quite<br />

quickly with the right support. Programmes such as the Black<br />

Umbrellas offer different levels of support, from early advice<br />

about business plans through office support to mentoring.<br />

Civtech Engineers, a Richards Bay consultancy, has grown its<br />

revenue and staffing levels as a result of being on the full incubation<br />

programme of Black Umbrellas.<br />

Agriculture is the focus of a wide-ranging initiative in the Ulundi<br />

district. A grouping called ULUMA has been formed which aims to help<br />

farmers, SMMEs and co-operatives to benefit in a holistic way from the<br />

produce they farm. The Zululand District Farmers Association, several<br />

other NGOs and Standard Bank are working together with the likes of<br />

Mangosuthu University of Technology (MUT) and the Innovation and<br />

Technology <strong>Business</strong> Incubator (Invotech) to expose farmers to new<br />

issues and techniques.<br />

Operation Vula is a provincial government initiative to ensure<br />

that co-operatives and small businesses get a leg-up into the formal<br />

economy through state-led infrastructure programmes that assist<br />

them, and through procurement policies that favour them.<br />

The Coastal KZN TVET College has been training members of cooperatives<br />

and people working in small, medium and micro-enterprises<br />

(SMMEs) in the skills that will help them do well in business.<br />

The Small Enterprise Development Agency (Seda) is active in<br />

supporting entrepreneurs. Seda gives non-financial support through<br />

training, assistance with filling in forms, marketing and creating<br />

business plans.<br />

In <strong>KwaZulu</strong>-<strong>Natal</strong>, Seda runs 12 Incubators which either help new<br />

businesses get started or with the rehabilitation of existing enterprises.<br />


<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Economic Development and<br />

Tourism: www.kznedtea.gov.za<br />

National Department of Small <strong>Business</strong> Development:<br />

www.dsbd.gov.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

Small Enterprise Finance Agency: www.sefa.org.za<br />


The Coastal KZN TVET College<br />

offers business skills training.<br />

Three models are used: Technology<br />

Demonstration Centres (demonstration<br />

and training); Technology<br />

Incubators (where the focus is rehabilitation);<br />

and Hybrid Centres,<br />

which combine elements of the<br />

other two models. The <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> incubators include ICT and<br />

construction (three centres each),<br />

furniture and hi-tech (two each),<br />

chemicals and essential oils.<br />

The IDC provides finance across<br />

a range of sectors from agriculture<br />

to tourism. It has holdings in several<br />

companies with a presence in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>: 42.6% in Hans<br />

Merensky (Pty) Ltd, a plantation<br />

and timber mill operator; 100%<br />

in Prilla <strong>20</strong>00, a cotton-milling<br />

operation; and 85% in Foskor,<br />

which has a phosphoric acid plant<br />

in Richards Bay.<br />

All of the major banks have<br />

SMME offerings. Nedbank has an<br />

enterprise-development product<br />

that supports businesses with a<br />

turnover up to R35-million with at<br />

least 25% black ownership.<br />

Toyota South Africa Motors is<br />

funding the newly created Toyota<br />

Empowerment Trust (TET) to the<br />

tune of R42-million.<br />

57 KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Selfmed Medical Scheme<br />

Christo Becker, the Principal Officer at Selfmed Medical Scheme,<br />

outlines the advantages of a self-administered scheme.<br />

Christo Becker<br />


Christo started his 21-year<br />

career in healthcare as a<br />

paramedic in Fire and Disaster<br />

Management Services. In <strong>20</strong>01<br />

he completed an MBA with the<br />

intention of moving his career<br />

towards hospital management.<br />

He has worked as hospital<br />

manager in several private<br />

facilities. His passion for people<br />

and strategy has ensured that the<br />

hospitals he has managed have<br />

grown rapidly while focusing<br />

on sustainability. With selfmotivation<br />

and a commitment to<br />

continual improvement, Christo<br />

implements positive changemanagement.<br />

How did Selfmed begin and how has it evolved?<br />

The Scheme initially formed part of the Sanlam Life Insurance stable, created<br />

in 1965 and formally registered in 1972. This makes Selfmed one of the most<br />

experienced medical aid schemes in the industry. At Selfmed we have a handson<br />

approach, and this resulted in our taking control of our own Client Services<br />

Centre, or Excellence Centre in <strong>20</strong>06. We thereafter progressed to taking over<br />

the full administration function in <strong>20</strong>10; also recently bringing our Managed<br />

Healthcare inhouse.<br />

What is your market?<br />

Historically membership comprised individuals and their families. The introduction<br />

of the Selfnet options in <strong>20</strong>15 and <strong>20</strong>16 allowed us to reach a younger<br />

audience. This was also the opportunity to branch out into corporate marketing,<br />

offering membership to blue-collar employees. We have seen great success in<br />

this area.<br />

Is there flexibility for clients?<br />

The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med<br />

XXI, and Selfnet and Selfnet Essential. Each product is designed specifically for<br />

a life stage, as the needs of a member changes. As the person advances in life<br />

and starts a family they will move towards the Med XXI or Selfsure options, for<br />

example, which have a wider range of benefits relevant to a young family.<br />

How is Selfmed handling ever-rising costs?<br />

The biggest challenge facing the healthcare industry is the significant rise in<br />

healthcare costs, with healthcare inflation exceeding general inflation. This<br />

compels us to proactively introduce mechanisms to manage these costs. Selfmed<br />

is applying machine learning to the claims database to draw a more accurate<br />

picture of a member’s specific needs. The information can then be used to<br />

engage members on an individual basis – if we can intervene early it is to the<br />

benefit of all parties.<br />

How does Selfmed Medical Scheme differentiate from its<br />

competitors?<br />

In a traditional medical aid/administrator environment all administered functions<br />

rest with an administrator. As such, a medical aid would be fully dependent on<br />

its outsourced administrator to inform it of any issues relating to its members.<br />

Being fully self-administered allows Selfmed to take total ownership of all its<br />

member interactions and address any administrative problems or complaints<br />

immediately. We do not have an electronic routing system; you speak to an<br />

individual. This personalised hands-on approach is fundamental to our model<br />

of building a credible member experience.<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


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

Government<br />


A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>’s provincial government departments. All addresses are located<br />

in Pietermaritzburg (code 3<strong>20</strong>1) unless stated otherwise. Visit www.kznonline.gov.za.<br />

Office of the Premier<br />

Premier: Sihle Zikalala<br />

5th Floor, Telkom Building, 300 Langalibalele Street<br />

Tel: +27 33 341 3300<br />

Fax: +27 33 331 7368<br />

Agriculture and Rural Development<br />

MEC: Bongiwe Nomusa Sithole-Moloi<br />

Cedara College, Cedara Road<br />

Tel: +27 33 335 9100<br />

Fax: +27 33 343 8255<br />

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

Arts and Culture<br />

MEC: Hlengiwe Goodness Slindile Mavimbela<br />

222 Jabu Ndlovu Street<br />

Tel: +27 33 264 3400<br />

Fax: +27 33 394 2237<br />

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

Community Safety and Liaison<br />

MEC: Thomas Mxolisi Kaunda<br />

179 Jabu Ndlovu Street<br />

Tel: + 27 33 341 9300<br />

Fax: + 27 33 342 6345<br />

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

Cooperative Governance and Traditional<br />

Affairs<br />

MEC: Sipho Hlomuka<br />

330 Langalibalele Street<br />

Tel: +27 33 395 2831<br />

Fax: +27 33 345 6432<br />

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

Economic Development, Tourism and<br />

Land Affairs<br />

MEC: Nomsa Dube-Ncube<br />

270 Jabu Ndlovu Street<br />

Tel: +27 33 264 2500 | Fax: +27 331 310 5416<br />

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

Education<br />

MEC: Kwazikwenkosi Innocent Mshengu<br />

Anton Lembede Building, 247 Burger Street<br />

Tel: +27 33 846 5000 | Fax: +27 33 355 1293<br />

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

Health<br />

MEC: Nomagugu Simelane-Zulu<br />

1st Floor, 330 Langalibalele Street<br />

Tel: +27 33 395 2111<br />

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

Human Settlements and Public Works<br />

MEC: Neliswa Peggy Nkonyeni<br />

<strong>20</strong>3 Church Street<br />

Tel: +27 33 392 6400 | Fax: +27 33 392 6490<br />

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

Provincial Treasury<br />

MEC for Finance: Ravigasen Ranganathan Pillay<br />

Treasury House, 145 Chief Albert Luthuli Street,<br />

Tel: +27 33 897 4<strong>20</strong>0 | Fax: +27 33 342 2486<br />

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

Sport and Recreation<br />

MEC: Hlengiwe Goodness Slindile Mavimbela<br />

135 Pietermaritz Street<br />

Tel: +27 33 897 9400<br />

Website: www.kzn.dsr.gov.za<br />

Social Development<br />

MEC: Nonhlanhla Mildred Khoza<br />

<strong>20</strong>8 Hoosen Haffejee Street<br />

Tel: +27 33 264 5402<br />

Fax: +27 33 341 9610<br />

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

Transport<br />

MEC: Thomas Mxolisi Kaunda<br />

172 Burger Street<br />

Tel: + 27 33 355 8600<br />

Fax: + 27 33 355 8092<br />

Web: www.kzntransport.gov.za


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

A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>'s municipalities.<br />


263 Dr Pixley ka Seme Street, Durban 4001<br />

Tel: +27 31 311 1111 | Fax: +27 31 311 2170<br />

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


Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township,<br />

Newcastle 2940<br />

Tel: +27 34 329 7<strong>20</strong>0 | Fax: +27 34 314 3785<br />

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

Dannhauser Municipality<br />

Tel: +27 34 621 2666 | Fax: +27 34 621 3114<br />

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

eMadlangeni (Utrecht) Municipality<br />

Tel: +27 34 331 3041 | Fax: +27 34 331 4312<br />

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

Newcastle Municipality<br />

Tel: +27 34 328 7600 | Fax: +27 34 312 1570<br />

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


40 Main Street, Ixopo 3276<br />

Tel: +27 39 834 8700<br />

Fax: +27 39 834 1701<br />

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

Dr Dlamini Zuma Municipality<br />

Tel: + 27 39 833 1038 | Fax: + 27 39 833 1179<br />

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

Greater Kokstad Municipality<br />

Tel: +27 39 797 6600 | Fax: +27 39 727 5501<br />

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

uBuhlebezwe Municipality<br />

Tel: +27 39 834 7700 | Fax: +27 39 834 1168<br />

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

uMzimkhulu Municipality<br />

Tel: +27 39 259 5000 | Fax: +27 39 259 0427<br />

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


59/61 Mahatma Gandhi St, KwaDukuza 4450<br />

Tel: +27 32 437 9300 | Fax: +27 32 437 9587<br />

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

KwaDukuza Municipality<br />

Tel: +27 32 437 5000<br />

Fax: +27 32 437 5098<br />

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

Mandeni Municipality<br />

Tel: +27 32 456 8<strong>20</strong>0<br />

Fax: +27 32 456 2504<br />

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

Maphumulo Municipality<br />

Tel: +27 32 481 4500<br />

Fax: +27 32 481 <strong>20</strong>53<br />

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

Ndwedwe Municipality<br />

Tel: +27 32 532 5000<br />

Fax: +27 32 532 5031/2<br />

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


King Cetshwayo House, Kruger Rand Rd, Richards Bay 3900<br />

Tel: +27 35 799 2500<br />

Fax: +27 35 789 1641<br />

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

City of uMhlathuze Municipality<br />

Tel: +27 35 907 5000 | Fax: +27 35 907 5444<br />

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

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Mthonjaneni Municipality<br />

Tel: +27 35 450 <strong>20</strong>82 | Fax: +27 35 450 3224<br />

Website: www.mthonjaneni.org.za<br />

Nkandla Municipality<br />

Tel: +27 35 833 <strong>20</strong>00 | Fax: +27 35 833 09<strong>20</strong><br />

Website: www.nkandla.org.za<br />

uMfolozi Municipality<br />

Tel: +27 35 580 1421 | Fax: +27 35 580 1141<br />

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

uMlalazi Municipality<br />

Tel: +27 35 473 3300 | Fax: +27 35 474 4733<br />

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


28 Connor Street, Port Shepstone 4240<br />

Tel: +27 39 688 5700 | Fax: +27 39 682 17<strong>20</strong><br />

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

Ray Nkonyeni Municipality<br />

Tel: +27 39 688 <strong>20</strong>00 | Fax: + 27 39 682 0327<br />

Web: www.rnm.gov.za<br />

Umdoni Municipality<br />

Tel: +27 39 978 4313 | Fax: +27 39 976 <strong>20</strong><strong>20</strong><br />

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

uMuziwabantu Municipality<br />

Tel: +27 39 433 3500 | Fax: +27 39 433 1<strong>20</strong>8<br />

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

Umzumbe Municipality<br />

Tel: +27 39 972 0005 | Fax: +27 39 972 0099<br />

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



242 Langalibalele Street, Pietermaritzburg 3<strong>20</strong>1<br />

Tel: +27 33 897 6700<br />

Fax: +27 33 342 5502<br />

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

Impendle Muncipality<br />

Tel: +27 33 996 6000 | Fax: +27 33 996 0852<br />

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

Mkhambathini Municipality<br />

Tel: +27 31 785 9300 | Fax: +27 31 785 2121<br />

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

Mpofana Municipality<br />

Tel: +27 33 263 1221 | Fax: +27 33 263 1127<br />

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

Msunduzi Municipality<br />

Tel: +27 33 392 3000 | Fax: +27 33 345 2397<br />

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

Richmond Municipality<br />

Tel: +27 33 212 2155 | Fax: +27 33 212 2102<br />

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

uMngeni Municipality<br />

Tel: +27 33 239 9<strong>20</strong>0<br />

Fax: +27 33 330 4183<br />

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

uMshwathi Municipality<br />

Tel: +27 33 816 6800<br />

Fax: +27 33 502 0286<br />

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

61<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>



Stand 13433, Kingfisher Road, Mkuze 3965<br />

Tel: +27 35 573 8600 | Fax: +27 35 573 1094<br />

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

Big 5 Hlabisa Municipality<br />

Tel: +27 35 838 8500 | Fax: +27 35 838 1015<br />

Jozini Municipality<br />

Tel: +27 35 572 1292 | Fax: +27 35 572 1266<br />

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

Mtubatuba Municipality<br />

Tel: +27 35 550 0069 | Fax: +27 35 550 0060<br />

Website: www.mtubatuba.org.za<br />

uMhlabuyalingana Municipality<br />

Tel: +27 35 592 0680 | Fax: +27 35 592 0672<br />

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


Princess Magogo Bld, 39 Victoria St, Dundee 3000<br />

Tel: +27 34 219 8000 | Fax: +27 34 219 1940<br />

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

Endumeni Municipality<br />

Tel: +27 34 212 2121 | Fax: +27 34 212 3856<br />

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

Msinga Municipality<br />

Tel: +27 33 493 0761 | Fax: +27 33 493 0766<br />

Website: www.msinga.org.za<br />

Nquthu Municipality<br />

Tel: +27 34 271 6100 | Fax: +27 34 271 6111<br />

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

uMvoti Municipality<br />

Tel: +27 33 413 9100 | Fax: +27 33 417 1393<br />

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


33 Forbes Street, Ladysmith 3370<br />

Tel: +27 36 638 5100 / 2400 | Fax: +27 36 637 5608 / 635 5501<br />

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

Alfred Duma Municipality<br />

Tel: +27 36 637 2231 | Fax: +27 36 631 1400<br />

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

Inkosi Langalibalele Municipality<br />

Tel: +27 36 353 0693/0681/0691 | Fax: +27 36 353 6661<br />

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

Okhahlamba Municipality<br />

Tel: +27 36 448 8000 | Fax: +27 36 448 1986<br />

Website: www.okhahlamba.org.za<br />


B400 Gagane Street, Ulundi 3838<br />

Tel: +27 35 874 5500<br />

Fax: +27 35 874 5589<br />

Website: www.zululand.org.za<br />

Abaqulusi Municipality<br />

Tel: +27 34 982 2133 | Fax: +27 34 980 9637<br />

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

eDumbe Municipality<br />

Tel: +27 34 995 1650 | Fax: +27 34 995 1192<br />

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

Nongoma Municipality<br />

Tel: +27 35 831 7500 | Fax: +27 35 831 3152<br />

Website: www.nongoma.org.za<br />

Ulundi Municipality<br />

Tel: +27 35 874 5100 | Fax: +27 35 870 1164<br />

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

uPhongolo Municipality<br />

Tel: +27 34 413 1223<br />

Fax: +27 34 413 1706<br />

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

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />




East london icc<br />


INDABA<br />

10-12<br />

april<br />

<strong><strong>20</strong>19</strong><br />




8-9 JULY <strong><strong>20</strong>19</strong><br />


7-9 OCTOBER <strong><strong>20</strong>19</strong><br />


ANNUAL<br />


dURBAN icc

INDEX<br />

INDEX<br />

Agribusiness Development Agency​ (ADA)..............................................................................32<br />

Black Umbrellas..................................................................................................................................17<br />

Chartered Institute of Finance Audit and Risk Officers (CIGFARO)​..................................63<br />

Durban Chamber of Commerce​ and Industry.......................................................................... 2<br />

Durban International Convention Centre (Durban ICC) ​....................................................... 7<br />

Enterprise iLembe​.............................................................................................................................22<br />

Invest Durban.................................................................................................................................. ​IFC<br />

Kemtek Imaging Systems​.......................................................................................................... 9, 35<br />

Mondi​ Group South Africa...................................................................................................... 37-41<br />

Nedbank​........................................................................................................................................ 24-27<br />

Petroleum Agency SA......................................................................................................................​15<br />

RN Software....................................................................................................................................... ​IBC<br />

Selfmed​......................................................................................................................................58, OBC<br />

Transnet Pipelines​...................................................................................................................... 45-47<br />

University of Zululand ​...................................................................................................................... 5<br />

KWAZULU-NATAL BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />




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