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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KWAZULU-NATAL<br />
BUSINESS<br />
<strong><strong>20</strong>19</strong>/<strong>20</strong> EDITION<br />
THE GUIDE TO BUSINESS AND INVESTMENT<br />
IN KWAZULU-NATAL PROVINCE<br />
JOIN US ONLINE WWW.GLOBALAFRICANETWORK.CO.ZA | WWW.KWAZULUNATALBUSINESS.CO.ZA
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 />
INVEST IN DURBAN<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 />
DURBAN CHAMBER<br />
OF COMMERCE AND<br />
INDUSTRY NPC<br />
LET’S PUT YOUR<br />
BUSINESS ON THE MAP<br />
#DurbanMustRise
WHO WE ARE AND WHAT<br />
WE ARE ABOUT<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 />
MISSION<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 />
AN ORGANISATION OF GROWTH<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 />
ADVOCATING AND<br />
INFLUENCING POLICY<br />
DECISIONS THAT AFFECT THE<br />
INTERESTS OF BUSINESS<br />
LABOUR LAW<br />
TAXATION<br />
BUSINESS REGULATIONS<br />
BUSINESS RESEARCH<br />
MARKET ANALYSIS<br />
OFFERING BUSINESS<br />
SUPPORT SERVICES<br />
AND ADVICE<br />
CERTIFICATE OF ORIGIN<br />
ITC CHECKS<br />
NETWORKING OPPORTUNITIES<br />
COMPANY REGISTRATION<br />
WORKSHOPS AND SEMINARS<br />
BUSINESS CONSULTATION<br />
PROVIDING BUSINESS<br />
INFORMATION RELEVANT<br />
TO BUSINESS<br />
INDUSTRY SPECIFIC ECONOMIC<br />
DATA<br />
DURBAN CHAMBER ONLINE<br />
NEWSLETTER<br />
AFRICA DISPUTE RESOLUTION<br />
(ADR)<br />
POLICY FOCUS WEEKLY UPDATE<br />
Chamber Square, Lion Match<br />
Office Park, 892 Umgeni Rd<br />
Durban, 4001<br />
www.durbanchamber.co.za +27 31 335 1000
CONTENTS<br />
Introduction<br />
CONTENTS<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 />
4
• 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 />
www.unizulu.ac.za
CONTENTS<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 />
6
DURBAN ICC<br />
INJECTS<br />
MILLIONS INTO<br />
THE LOCAL<br />
ECONOMY<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 />
CHANGING<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 />
DURBAN ICC<br />
INTERNATIONAL CONVENTION CENTRE<br />
INKOSIALBERTLUTHULIICCCOMP'LEX<br />
SOUTHAFRICA<br />
9 45 Bram Fischer Road<br />
Durban, 4001<br />
P.O. Box 155<br />
Durban, 4001<br />
South Africa
CREDITS<br />
<strong>KwaZulu</strong>-<strong>Natal</strong><br />
<strong>Business</strong><br />
A unique business and investment guide.<br />
CREDITS<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 />
DISTRIBUTION<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is distributed internationally on<br />
outgoing and incoming trade missions; to foreign offices<br />
in South Africa’s main trading partners; at top national and<br />
international events; through the offices of foreign representatives<br />
in South Africa; as well as nationally and regionally<br />
via chambers of commerce, tourism offices, trade and<br />
investment agencies, provincial government departments,<br />
municipalities, airport lounges and companies.<br />
COPYRIGHT | <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is an independent publication<br />
published by Global Africa Network Media (Pty) Ltd. Full copyright to<br />
the publication vests with Global Africa Network Media (Pty) Ltd. No part<br />
of the publication may be reproduced in any form without the written<br />
permission of Global Africa Network Media (Pty) Ltd.<br />
PHOTO CREDITS | Pictures supplied by: 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 />
PUBLISHED BY<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 />
8
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SPECIAL FEATURE<br />
A REGIONAL OVERVIEW OF<br />
KWAZULU-NATAL<br />
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 />
10
SPECIAL FEATURE<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>
SPECIAL FEATURE<br />
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 />
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SPECIAL FEATURE<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>
SPECIAL FEATURE<br />
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 />
14
SPECIAL FEATURE<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 />
16
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 />
Tel: 035 901 8760 | Email: Tebogo@blackumbrellas.org | Website: www.blackumbrellas.org
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 />
18
SPECIAL FEATURE<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 />
MEETINGS AND EVENTS<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>
SPECIAL FEATURE<br />
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 />
<strong>20</strong>
SPECIAL FEATURE<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 />
ANNUAL SPORTING EVENTS AND EXHIBITIONS<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>
INTERVIEW<br />
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 />
BIOGRAPHY<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 />
22
INTERVIEW<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 />
CONTACT INFO<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>
ADVERTORIAL<br />
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Nedbank’s new brand promise focuses on client<br />
engagement Nedbank’s that new will brand create a promise better understanding<br />
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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 />
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Our expertise will help clients navigate<br />
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Nedbank continues to build on its clientcentred<br />
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<strong>KwaZulu</strong>-<strong>Natal</strong>. This has seen the bank<br />
simplify and enhance its product offering<br />
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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 />
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businesses to the next level.<br />
This is a unique service for clients, with financial<br />
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Nedbank Ke Yona Plus transactional account, which<br />
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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 />
www.nedbank.co.za.
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<strong>Business</strong> focuses Banking on client engagement that<br />
Siphamandla Ndhlovu, <strong>KwaZulu</strong>-<strong>Natal</strong> Provincial <strong>Business</strong> Banking<br />
will create a better understanding<br />
Manager, explains how Nedbank can help business owners see money<br />
differently. Kevin de Beer, Nedbank Provincial General Manager in the<br />
Free State and Northern Cape, explains how Nedbank<br />
works with communities to deliver banking helps solutions. with continuity in case there is a change of<br />
relationship from a <strong>Business</strong> Manager point of view.<br />
Our approach is to understand the client’s business<br />
holistically and from that understanding, design tailormade<br />
banking solutions to suit the business needs<br />
of the client. Our “Wholeview Banking” approach<br />
enables us to understand the client’s cash receipts and<br />
payment cycle, their global trade transactions, foreign<br />
exchange hedging transactions and transactional<br />
banking needs which include cash handling. From this<br />
information, we are able to provide banking, payment<br />
and funding solutions that meet the client’s needs. We<br />
are therefore seen as a trusted partner by the business<br />
we serve as our banking solutions match the client’s<br />
needs and means.<br />
“At Nedbank <strong>Business</strong> Banking we<br />
believe that you need a financial<br />
partner who not only understands your<br />
circumstances and aspirations, but also<br />
provides you with relevant solutions<br />
and a banking experience that is hasslefree.<br />
This allows you to concentrate on<br />
what’s most important to you – running<br />
your business,” says Ndhlovu.<br />
At the core of our <strong>Business</strong> Banking offering in<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> is a relationship-based model. We<br />
believe in building a relationship with our client<br />
which helps elevate trust which becomes the solid<br />
foundation on which our banking decisions are made.<br />
A <strong>Business</strong> Manager is the key entry point into the<br />
bank. The <strong>Business</strong> Manager is supported by a Client<br />
Service team who ensure delivery of the facilities<br />
the client is afforded. The Client Service team also<br />
becomes a repository of client information where<br />
the client history and track record are held. This<br />
Our banking offering covers a broad range of financial<br />
and advisory services to small and medium businesses<br />
in all sectors of the economy including Agriculture.<br />
We pride ourselves in our ability to make quick credit<br />
decisions as our Credit teams are located in the<br />
markets that we serve as opposed to being at a central<br />
location that is removed from the local market.<br />
Furthermore, based on the relationship foundation<br />
and our understanding of the client’s needs, we are<br />
able to extend our offering to the business owner<br />
in their personal capacity, their family and staff. In<br />
doing this, we answer Nedbank’s call to use our<br />
financial expertise to do good for individuals, families,<br />
businesses and communities within which we operate.<br />
Should you be interested in taking your business to its<br />
next level and improving staff engagement, and for more<br />
information about Nedbank’s specialised service offering<br />
please call Siphamandla Ndhlovu on +27 83 637 8552<br />
or visit www.nedbank.co.za.
ADVERTORIAL<br />
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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 />
Melanier@nedbank.co.za.
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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).
KEY SECTORS<br />
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
OVERVIEW<br />
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 />
ONLINE RESOURCES<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 />
SECTOR INSIGHT<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 />
30
Sugar<br />
OVERVIEW<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> leads in sugar production.<br />
SECTOR INSIGHT<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 />
ONLINE RESOURCES<br />
South African Cane Growers’ Association:<br />
www.sacanegrowers.co.za<br />
South African Sugar Association: www.sasa.org.za<br />
South African Sugar Technologists Association: 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 />
32
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 />
4. FOCUS ON OPERATION<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 />
5. OUR PRODUCTS AND SERVICE OFFERINGS<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.
OVERVIEW<br />
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 />
SECTOR INSIGHT<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 />
34
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 />
WWW.KEMTEK.CO.ZA<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>
OVERVIEW<br />
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 />
ONLINE RESOURCES<br />
Forestry South Africa: www.forestry.co.za<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Agriculture and Rural<br />
Development: www.kzndard.gov.za<br />
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 />
36
PROFILE<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 />
38
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 />
40
FOCUS<br />
R8-BILLION INVESTMENT OVER FIVE YEARS<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 />
PART OF THE SOLUTION<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>
OVERVIEW<br />
Mining<br />
Second smelter to be activated at Isithebe foundry.<br />
SECTOR INSIGHT<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 />
ONLINE RESOURCES<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 />
42
Engineering<br />
OVERVIEW<br />
Construction is booming north of Durban.<br />
SECTOR INSIGHT<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 />
ONLINE RESOURCES<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>
OVERVIEW<br />
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 />
ONLINE RESOURCES<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 />
SECTOR INSIGHT<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 />
44
OVERVIEW<br />
Construction and property<br />
Infrastructure and multi-use developments are forging ahead.<br />
SECTOR INSIGHT<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 />
ONLINE RESOURCES<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 />
48
Water<br />
OVERVIEW<br />
South Africa’s first mobile desalination plant has been installed.<br />
SECTOR INSIGHT<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 />
ONLINE RESOURCES<br />
Mhlathuze Water: www.mhlathuze.co.za<br />
National Department of Water and Sanitation: www.dwa.gov.za<br />
Umgeni Water: www.umgeni.co.za<br />
Water 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>
OVERVIEW<br />
Manufacturing<br />
The Blue and Green economies hold potential for KZN manufacturers.<br />
SECTOR INSIGHT<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 />
50
OVERVIEW<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 />
ONLINE RESOURCES<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>
CREDIT BELL EQUIPMENT<br />
OVERVIEW<br />
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 />
SECTOR INSIGHT<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 />
52
OVERVIEW<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 />
ONLINE RESOURCES<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>
OVERVIEW<br />
ICT<br />
Port Shepstone has a new incubator.<br />
SECTOR INSIGHT<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 />
ONLINE RESOURCES<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 />
54
Education and training<br />
University research is linked to development issues.<br />
OVERVIEW<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 />
ONLINE RESOURCES<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 />
SECTOR INSIGHT<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>
OVERVIEW<br />
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 />
ONLINE RESOURCES<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 />
SECTOR INSIGHT<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 />
56
Development finance and<br />
SMME support<br />
OVERVIEW<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 />
ONLINE RESOURCES<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 />
SECTOR INSIGHT<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>
INTERVIEW<br />
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 />
BIOGRAPHY<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 />
58
<strong>KwaZulu</strong>-<strong>Natal</strong> Provincial<br />
Government<br />
LISTING<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
LISTING<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> Local Government<br />
A guide to <strong>KwaZulu</strong>-<strong>Natal</strong>'s municipalities.<br />
ETHEKWINI METROPOLITAN MUNICIPALITY<br />
263 Dr Pixley ka Seme Street, Durban 4001<br />
Tel: +27 31 311 1111 | Fax: +27 31 311 2170<br />
Website: www.durban.gov.za<br />
AMAJUBA DISTRICT MUNICIPALITY<br />
Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township,<br />
Newcastle 2940<br />
Tel: +27 34 329 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 />
HARRY GWALA DISTRICT MUNICIPALITY<br />
40 Main Street, Ixopo 3276<br />
Tel: +27 39 834 8700<br />
Fax: +27 39 834 1701<br />
Website: www.harrygwaladm.gov.za<br />
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 />
ILEMBE DISTRICT MUNICIPALITY<br />
59/61 Mahatma Gandhi St, KwaDukuza 4450<br />
Tel: +27 32 437 9300 | Fax: +27 32 437 9587<br />
Website: www.ilembe.gov.za<br />
KwaDukuza Municipality<br />
Tel: +27 32 437 5000<br />
Fax: +27 32 437 5098<br />
Website: www.kwadukuza.gov.za<br />
Mandeni Municipality<br />
Tel: +27 32 456 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 DISTRICT MUNICIPALITY<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 />
60
LISTING<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 />
UGU DISTRICT MUNICIPALITY<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 />
UMGUNGUNDLOVU DISTRICT<br />
MUNICIPALITY<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>
LISTING<br />
UMKHANYAKUDE DISTRICT MUNICIPALITY<br />
Stand 13433, Kingfisher Road, Mkuze 3965<br />
Tel: +27 35 573 8600 | Fax: +27 35 573 1094<br />
Website: www.ukdm.gov.za<br />
Big 5 Hlabisa Municipality<br />
Tel: +27 35 838 8500 | Fax: +27 35 838 1015<br />
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 />
UMZINYATHI DISTRICT MUNICIPALITY<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 />
UTHUKELA DISTRICT MUNICIPALITY<br />
33 Forbes Street, Ladysmith 3370<br />
Tel: +27 36 638 5100 / 2400 | Fax: +27 36 637 5608 / 635 5501<br />
Website: www.uthukela.gov.za<br />
Alfred Duma Municipality<br />
Tel: +27 36 637 2231 | Fax: +27 36 631 1400<br />
Website: www.alfredduma.gov.za<br />
Inkosi Langalibalele Municipality<br />
Tel: +27 36 353 0693/0681/0691 | Fax: +27 36 353 6661<br />
Website: www.umtshezi.co.za<br />
Okhahlamba Municipality<br />
Tel: +27 36 448 8000 | Fax: +27 36 448 1986<br />
Website: www.okhahlamba.org.za<br />
ZULULAND DISTRICT MUNICIPALITY<br />
B400 Gagane Street, Ulundi 3838<br />
Tel: +27 35 874 5500<br />
Fax: +27 35 874 5589<br />
Website: www.zululand.org.za<br />
Abaqulusi Municipality<br />
Tel: +27 34 982 2133 | Fax: +27 34 980 9637<br />
Website: www.abaqulusi.gov.za<br />
eDumbe Municipality<br />
Tel: +27 34 995 1650 | Fax: +27 34 995 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 />
62
SAVE THE DATE<br />
FUTURE EVENTS<br />
East london icc<br />
AUDIT&RISK<br />
INDABA<br />
10-12<br />
april<br />
<strong><strong>20</strong>19</strong><br />
PUBLIC SECTOR<br />
FINANCE GRAP<br />
SEMINAR<br />
8-9 JULY <strong><strong>20</strong>19</strong><br />
EKURHULENI<br />
7-9 OCTOBER <strong><strong>20</strong>19</strong><br />
CIGFARO<br />
ANNUAL<br />
CONFERENCE<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 />
64
LEVEL1 B-BBEE<br />
CONTRIBUTOR<br />
RN Software is the largest SYSPRO value-added<br />
reseller in <strong>KwaZulu</strong>-<strong>Natal</strong> with offi ces in Durban and<br />
Sandton with the vision of becoming the largest<br />
reseller nationally.<br />
We assess and determine corrective action in the IT<br />
sector supplying ERP services to government agencies<br />
and mid to large-sized businesses.<br />
We specialize in industry-specifi c consulting, IT<br />
services, ERP business process implementation,<br />
infrastructure and full development centre.<br />
We have completed in excess of 130 installed sites.<br />
We specialize in niche software and mobile<br />
application development to provide an end-to-end<br />
business digitalization that integrates fully with<br />
SYSPRO ERP system.<br />
We programme current business reporting into<br />
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integrated into the ERP. We provide analytical business<br />
insights and sequential upgrades to SYSPRO version 8.<br />
Industry and target market, specialising in<br />
manufacturing and distribution: automotive<br />
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and equipment, metal fabrication, electronic<br />
manufacture, plastic and rubber manufacturing,<br />
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and packaging manufacturing.<br />
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OFFERINGS<br />
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• <strong>Business</strong> process modelling<br />
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• SYSPRO version 8 upgrades<br />
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CONTACT US<br />
Durban:<br />
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Sandton:<br />
42 Tenth Avenue I Rivonia I Sandton<br />
+27 (31) 702 6087 | info@rnsoftware.co.za | mnayagar@rnsoftware.co.za<br />
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