KwaZulu-Natal Business 2019-20 edition

KWAZULU-NATAL 

BUSINESS 

2019/20 EDITION 

THE GUIDE TO BUSINESS AND INVESTMENT 

IN KWAZULU-NATAL PROVINCE 

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

New team boosts 

Durban’s prospects 

A lifestyle of business and pleasure together, 

Durban has the perfect mix for investors. 

Team Durban has a new and dynamic team to 

drive investment into the city. In September 

2018, eThekwini Mayor Zandile Gumede inducted 

the new members of Team Durban. 

The team will provide strategic Foreign Direct 

Investment (FDI) advice to the city leadership and the 

new Invest Durban Unit on business and investment 

promotion matters. 

Mayor Gumede thanked the newly nominated 

members of the team for agreeing to help accelerate 

investment growth while looking to improve the 

business environment of the city region. 

The Deputy City Manager of Economic Development 

and Planning Phillip Sithole will provide liaison and administrative 

support to Team Durban. Sithole will also 

provide progress reports to council on the functioning 

and outputs of Team Durban. Members of the Team 

Durban Advisory Forum from the Municipality comprise 

eThekwini Mayor Zandile Gumede, who will serve as the 

Chairperson of the Forum, Chairperson of the Economic 

Development and Planning Committee Sipho Kaunda, 

and City Manager Sipho Nzuza. 

The external members are representatives of some 

the biggest business in the city as well as representatives 

from civil society, including youth and academia. 

They are: Suben Moodley, Senior Vice President for 

Corporate Affairs Toyota South Africa; Mike Deighton, 

Managing Director Tongaat Hulett Developments; 

Themba Ngcobo, Founder and Director Exel Petroleum; 

Musa Makhunga, Managing Director of HR Matters and 

President of the Durban Chamber of Commerce and 

Industry; Sandile Zungu, Corporate Director Zungu 

Investments Company Limited (ZICO); Steven Saad, Chief 

Executive of Aspen Pharmacare; Mlungisi Ntombela, 

General Manager eThekwini Disability Sport Forum; 

Faisal Mkhize, KZN Provincial Managing Executive of 

Absa; Zanamuhla Khanyile, Department of Correctional 

Services; Samukelisiwe Nzimande, Managing Director 

K2M Financial Services; Howard Arrand, Provincial Head 

FNB; Manto Madlala, acting CEO Premier Soccer League; 

Thulisa Ndlela Chair of Ayigobi Investments. 

The non-executive members have been appointed 

to serve on Team Durban for a period of three years 

effective from 1 July 2018 to 30 June 2021.

Their service will be on a voluntary basis but the 

municipality will cover their travel and accommodation 

expenses where required and in accordance with travel 

policy. 

At the function to introduce the new team, Russell 

Curtis, Head of Department, Invest Durban said, “Team 

Durban marks the further sophistication of the city.” 

He explained that the goal of Team Durban was to 

improve partnerships and strengthen relationships 

between different sectors in society. This forum he 

said was a significant step change for Durban and in 

line with global best practice. 

INVEST IN DURBAN 

Durban’s investment agency has a refreshed brand 

name of “Invest Durban”. A partnership between the 

Metro City Council and the private business sector, 

Invest Durban offers a free investor advisory service 

plus key promotion, facilitation, aftercare services 

between all investment stakeholders. 

Invest Durban was recommended by the Durban 

City Council and organised private business as the 

“First Stop Shop” to stimulate economic growth and 

new investment in the Durban metropolis. 

Main Purpose 

To facilitate sustainable investment in Durban for 

the benefit of all through the: 

• expansion, retention and aftercare of existing 

foreign corporate business 

• proactive investment promotion and marketing 

of Durban Metro 

• proactive connection to, and marketing of the 

city’s large investment projects 

• attraction of prospective new foreign investors 

Invest Durban works closely with the Department 

of Trade and Industry including Invest SA, Trade and 

Investment KZN (TIKZN), the Durban Chamber of 

Commerce and Industry, the KZN Growth Coalition, 

and State-Owned-Enterprises such as Dube 

TradePort, the DBSA, IDC, Eskom and others. Key 

partners include the largest banks, audit and advisory 

firms, plus sector-based organised business bodies 

working in concert to promote investment in Durban. 

Physical address: Invest Durban, 

eThekwini Municipality 

11th Floor, 41 Margaret Mncadi Avenue 

Durban 4001, South Africa 

Tel: +27 31 311 4227 

Email: invest@durban.gov.za 

Website: www.invest.durban

EST 1856 

DURBAN CHAMBER 

OF COMMERCE AND 

INDUSTRY NPC 

LET’S PUT YOUR 

BUSINESS ON THE MAP 

#DurbanMustRise

WHO WE ARE AND WHAT 

WE ARE ABOUT 

The Durban Chamber of Commerce and Industry was established in 1856 and is 

the oldest and largest metropolitan chamber in Africa. As a business-based and 

member-focused organisation, we work to protect and promote the interests of 

the eThekwini business community. 

VISION 

In Business for a Better World 

To be recognised as a world-class business chamber and a united voice of 

business in the eThekwini Municipal area and beyond. 

MISSION 

To contribute towards creating a conducive economic and business environment in 

the eThekwini Municipal area and beyond, as well as providing services specifically 

relevant to small and large businesses operating in the region. 

AN ORGANISATION OF GROWTH 

#DURBANMUSTRISE - the Durban Chamber official hashtag - signifies working 

towards achieving joint goals to move local businesses forward. The Durban Chamber 

represents leading multi-nationals; large corporates; small, medium and micro-sized 

enterprises (SMMEs); and start-ups in promoting inclusive and sustainable economic 

growth and development in eThekwini and beyond. 

ADVOCATING AND 

INFLUENCING POLICY 

DECISIONS THAT AFFECT THE 

INTERESTS OF BUSINESS 

LABOUR LAW 

TAXATION 

BUSINESS REGULATIONS 

BUSINESS RESEARCH 

MARKET ANALYSIS 

OFFERING BUSINESS 

SUPPORT SERVICES 

AND ADVICE 

CERTIFICATE OF ORIGIN 

ITC CHECKS 

NETWORKING OPPORTUNITIES 

COMPANY REGISTRATION 

WORKSHOPS AND SEMINARS 

BUSINESS CONSULTATION 

PROVIDING BUSINESS 

INFORMATION RELEVANT 

TO BUSINESS 

INDUSTRY SPECIFIC ECONOMIC 

DATA 

DURBAN CHAMBER ONLINE 

NEWSLETTER 

AFRICA DISPUTE RESOLUTION 

(ADR) 

POLICY FOCUS WEEKLY UPDATE 

Chamber Square, Lion Match 

Office Park, 892 Umgeni Rd 

Durban, 4001 

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

CONTENTS 

Introduction 

CONTENTS 

KwaZulu-Natal Business 2019/20 Edition 

Foreword8 

KwaZulu-Natal’s unique guide to business and investment. 

Special features 

Regional overview of KwaZulu-Natal 10 

The oceans economy holds great promise in KwaZulu-Natal. 

Investors are showing confidence in the 

KwaZulu-Natal economy 14 

Private and public entities are expanding operations and creating 

new opportunities. 

Massive investments in tourism are paying off 18 

New direct international flights, upgraded facilities and new 

hotels all point to growing confidence in the tourism sector. 

Economic sectors 

Agriculture30 

New crops are adding to the export basket. 

Sugar31 

KwaZulu-Natal leads in sugar production. 

Forestry and paper 34 

Diversification is a growing trend. 

Mining42 

Second smelter to be activated at Isithebe foundry. 

Engineering43 

Construction is booming north of Durban. 

Oil and gas 44 

Italian company Eni has offshore prospecting rights. 

Construction and property 48 

Infrastructure and multi-use developments are forging ahead. 

KWAZULU-NATAL BUSINESS 2019/20 

4

• We boast of producing graduates who have gone on to occupy key positions 

both in public and private sectors 

• We undertake research relevant to local communities 

• We have the best Science Centre in Africa 

2019 Graduation Period: 13 – 17 May 2019 

University Chancellor: Proud Alumnus, his Honourable Deputy 

Chief Justice, Judge Raymond Zondo 

www.unizulu.ac.za

CONTENTS 

Water49 

South Africa’s first mobile desalination plant has been installed. 

Manufacturing50 

The Blue and Green economies hold potential for KZN 

manufacturers. 

Automotive 52 

Mahindra bakkies are being assembled at the Dube TradePort. 

ICT54 

Port Shepstone has a new incubator. 

Education and training 55 

University research is linked to development issues. 

Banking and financial services 56 

New banks are changing the face of the sector. 

Development finance and SMME support 57 

Support is available for entrepreneurs. 

Government 

KwaZulu-Natal Provincial Government 59 

A guide to KwaZulu-Natal’s provincial government 

departments. 

KwaZulu-Natal Local Government 60 

A guide to KwaZulu-Natal’s metropolitan, district and local 

municipalities. 

References 

Sector contents 28 

Index64 


6

DURBAN ICC 

INJECTS 

MILLIONS INTO 

THE LOCAL 

ECONOMY 

The Durban International Convention Centre (DURBAN 

ICC) has over the past 21 years facilitated socio-economic 

transformation and contributed billions of rands into South 

Africa's Gross Domestic Product (GDP). 

As a pioneer in the South African events sector, 

the DURBAN ICC continues to excel in driving local 

economic growth, having contributed over R4.7 billion 

to the country's GDP last year while creating inspiring 

convention, exhibition and entertainment experiences for 

its guests. 

The vast majority of this impact was felt in KwaZulu-Natal, 

where R4.6 billion was added to our Gross Geographic 

Product. The DURBAN ICC remains committed to 

broadening the economic impact of the events and 

tourism sector through contributing to inclusive economic 

growth as well as social development. As such, over 

9 000 jobs were created as a result of the DURBAN ICC's 

activities over the past financial year. 

In order to ensure that that the centre maintains its status 

as a world-class facility, in the past year, the company 

invested significantly in a number of key projects to 

enhance the guest experience and provide a safe and 

secure venue for our visitors. 

Opened in 1997 by the first democratic President of 

South Africa, Dr Nelson Mandela, the DURBAN ICC is the 

country's very first international convention centre and has 

played a pioneering role in attracting high-profile events 

to the country. 

Delegates visiting the Centre can look forward to superb 

standards of culinary excellence and hospitality. As part 

of the DURBAN ICC's gourmet evolution over the past 21 

years in the industry, they are completely reinventing their 

culinary offering in order to showcase some of Durban's 

authentic African Cuisines. Furthermore a wide range of 

new innovative packages have been designed to meet the 

unique needs of each target market, at the best possible 

rates. 

The five-star graded centre has also received a number of 

accolades among them being ranked in the world's Top 17 

Convention Centres which is an outstanding achievement 

in the global meetings industry. The Centre was the only 

centre in Africa to have made the list despite several other 

entries from the continent. 

This accolade serves to affirm the DURBAN ICC's position 

as Africa's leading convention centre - a reputation they 

work hard to uphold every day. 

The DURBAN ICC prides itself on being a leading 

venue for meetings, business events, conferences and 

exhibitions on the African continent. However, this is not 

their own opinion, but rather the overwhelming feedback 

received from their clients who have voted it in the top 

1% of Convention Centres worldwide, as well as "Africa's 

Leading Meetings and Convention Centre" no fewer than 

17times! 

The DURBAN ICC is one of the most flexible and versatile 

venues in the world. The Centre's main convention area 

of 11,600m 2 can be opened up to form one enormous 

venue or subdivided using operable walls into 22 separate 

convention halls of various sizes. 

As a venue that takes pride in the fact that we are a worldclass 

convention, exhibition and entertainment centre, our 

primary goal is to enhance our guests' experience. 

21 

YEARS OF 

CHANGING 

LIVES 

1997-2018 

+27 (0)31 360 l 000 

114 sales@icc.co.za 

® www.icc.co.za 

DURBAN ICC 

INTERNATIONAL CONVENTION CENTRE 

INKOSIALBERTLUTHULIICCCOMP'LEX 

SOUTHAFRICA 

9 45 Bram Fischer Road 

Durban, 4001 

P.O. Box 155 

Durban, 4001 

South Africa

CREDITS 

KwaZulu-Natal 

Business 

A unique business and investment guide. 

CREDITS 

Publisher: Chris Whales 

Publishing director: Robert Arendse 

Editor: John Young 

Online editor: Christoff Scholtz 

The 2019/20 edition of KwaZulu-Natal Business is the 11th issue 

of this highly successful publication that, since its launch 

in 2008, has established itself as the premier business and 

investment guide for the KwaZulu-Natal Province. 

In addition to the regular articles providing insight into each of the 

key economic sectors of the province, there is a special feature on the 

surge in investment in new tourism projects, from casino expansions to 

the building of a dedicated cruise-liner terminal. Another special feature 

surveys other large investments in a wide variety of sectors, showing 

the diversity and strength of the provincial economy. 

To complement the extensive local, national and international 

distribution of the print edition, the full content can also be viewed 

online at www.kwazulunatalbusiness.co.za. Updated information on 

KwaZulu-Natal is also available through our monthly e-newsletter, 

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

complementary business-to-business titles that cover all nine provinces 

as well as our flagship South African Business title. 

Chris Whales 

Publisher, Global Africa Network Media 

Email: chris@gan.co.za 

Art director: Brent Meder 

Design: Tyra Martin 

Production: Lizel Olivier 

Ad sales: Gavin van der Merwe, 

Sam Oliver,Gabriel Venter, Jeremy 

Petersen, Shiko Diala, Vanessa 

Wallace, Reginald Motsoahae and 

Sandile Koni. 

Managing director: Clive During 

Administration & accounts: 

Charlene Steynberg and 

Natalie Koopman 

Distribution & circulation 

manager: Edward MacDonald 

Printing: FA Print 

DISTRIBUTION 

KwaZulu-Natal Business is distributed internationally on 

outgoing and incoming trade missions; to foreign offices 

in South Africa’s main trading partners; at top national and 

international events; through the offices of foreign representatives 

in South Africa; as well as nationally and regionally 

via chambers of commerce, tourism offices, trade and 

investment agencies, provincial government departments, 

municipalities, airport lounges and companies. 

COPYRIGHT | KwaZulu-Natal Business is an independent publication 

published by Global Africa Network Media (Pty) Ltd. Full copyright to 

the publication vests with Global Africa Network Media (Pty) Ltd. No part 

of the publication may be reproduced in any form without the written 

permission of Global Africa Network Media (Pty) Ltd. 

PHOTO CREDITS | Pictures supplied by: ABC, Avon Peaking Power, Bell 

Equipment, Dube TradePort, Durban ICC, EBH, iStock, JG Afrika, Tongaat 

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

PUBLISHED BY 

Global Africa Network Media (Pty) Ltd 

Company Registration No: 2004/004982/07 

Directors: Clive During, Chris Whales 

Physical address: 28 Main Road, Rondebosch 7700 

Postal address: PO Box 292, Newlands 7701 

Tel: +27 21 657 6200 | Fax: +27 21 674 6943 

Email: info@gan.co.za | Website: www.gan.co.za 

ISSN 1993-0127 

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) 

Ltd, has used all reasonable efforts to ensure that the information contained 

in KwaZulu-Natal Business is accurate and up-to-date, the publishers 

make no representations as to the accuracy, quality, timeliness, or 

completeness of the information. Global Africa Network will not accept 

responsibility for any loss or damage suffered as a result of the use of or 

any reliance placed on such information. 

KWAZULU-NATALBUSINESS 2019/20 

8

UNPACK YOUR POTENTIAL 

WITH KEMTEK 

For more than 30 years, Kemtek Imaging Systems has been providing quality-driven 

advanced technologies in the commercial print, industrial print, 3D print/additive 

manufacturing, auto identification, bar coding and labelling sectors. 

As such, we are proud to be the sole distributor in Southern Africa for many of the leading 

internationally-renowned brands in those sectors in which we operate, such as HP Indigo, 

Komori, Flint, Fujifilm, Argox, CipherLab, Datalogic and Brother. 

And, with a focus always on providing highly skilled services and post-sales support, we’re 

ensuring our customers are maximising their potential for growth and profit - day in, day out! 

NATIONAL: 0861 KEMTEK • JHB: +27 (0)11 624 8000 • PTA: +27 (0)12 804 1410 

• DBN: +27 (0)31 700 9363 • CPT: +27 (0)21 521 9600 • PE: +27 (0)41 364 3690 

WWW.KEMTEK.CO.ZA 

J25589

SPECIAL FEATURE 

A REGIONAL OVERVIEW OF 

KWAZULU-NATAL 

The oceans economy holds great promise in KwaZulu-Natal. 

By John Young 

Two of the most important ports in South 

Africa are at the heart of KwaZulu-Natal's 

central position in the nation's transport 

and logistics network. As the secondbiggest 

contributor (16%) to national gross 

domestic product (GDP) after Gauteng and a 

major manufacturer and exporter of goods, the 

KwaZulu-Natal province lends itself to potential 

investments in many spheres. 

A new national focus on trying to develop 

the country’s maritime potential is playing to 

KwaZulu-Natal’s strengths. 

KwaZulu-Natal province has a long coastline 

that stretches from Port Edward in the south to the 

Kosi Bay Nature Reserve in the north. The province's 

contact with the sea has brought obvious benefits: 

fishing, fine beaches enjoyed by millions of tourists, 

and two great ports – the Port of Durban and Richards 

Bay. These ports export vast quantities of minerals 

(mostly through Richards Bay) and manufactured 

goods (Durban) and serve as an important conduit 

for imports of all sorts. The Richards Bay Coal Terminal 

exports coal while the Port of Durban is the busiest 

port in Africa. 

However, planners want to increase the 

economic benefits that the ocean can bring. An 

Oceans Economy Review Workshop has come up 

with a range of subsectors that can help grow 

the provincial economy and invite foreign direct 

investment: 

• marine transport and manufacturing 

• offshore oil and gas exploration 

• aquaculture 

• marine protection and ocean governance 

• small harbours 

• coastal and marine tourism. 

Strategies to grow the Oceans Economy dovetail 

with plans to boost the capacity of the ports at 

Durban and Richards Bay and to explore for gas and 

oil in the Indian Ocean. 

Ship-building and ship repairs is an existing 

industry, but it is currently not very big. If oil rigs 

were to start visiting the KZN coastline on a regular 

basis, this industry will grow exponentially. 

The Oceans Economy is one of the focus areas 

that has been chosen by national government to 

be part of Operation Phakisa, a focused, goal-driven 


10


attempt to jump-start a specific economic sector. 

Overall, Phakisa intends creating a million jobs by 

2033 and injecting R177-billion into national GDP. 

The decision to build a cruise-ship terminal at the 

Port of Durban is a good example of the kind of decision 

that dovetails with the vision for an Oceans Economy. 

Another big potential growth area in KwaZulu- 

Natal is energy. Several licences have been granted 

for off-shore exploration and the hope exists that 

something will be found – the vast gas fields off the 

coast of Mozambique are close. 

The King Shaka International Airport (with its own 

trade port and industrial development zone called 

the Dube TradePort) is another of the province's 

logistics key points, which has the potential to boost 

the regional economy in several sectors, particularly 

agricultural export and tourism. 

The province's other zone is the Richards Bay 

Industrial Development Zone (RBIDZ). In recent 

years, investments into the RBIDZ have included: 

a titanium plant (R4.5-billion); a biomass plant (R2- 

billion); a pipe manufacturing plant (R300-million); 

paint manufacturing (R16-million); and logistics 

services (R20-million). 

In the base-metals and metal-products sectors, 

giant companies such as BHP Billiton, Hulamin, 

Arcelor Mittal and Assmang have a big presence in 

the province. Steel, iron and aluminium account for 

nearly a third of exports followed by metal products. 

The third sector making a big contribution is the 

automotive and automotive components sector, with 

about 18%. Chemicals is the other major export driver. 

Toyota and Bell Equipment play a vital role 

in the automotive sector while the Engen Oil 

Refinery, paper and packaging group Mondi and 

dissolving pulp manufacturer Sappi are among other 

strategically important entities in the provincial 

economy. Sappi's export of dissolving pulp makes 

it a world leader in its field. 

Although the forestry and paper sector and 

the sugar sector are grounded in the agricultural 

sector, the leading companies' processing plants and 

downstream beneficiation also make them major 

components of the manufacturing sector and big 

contributors to the province's export basket. 

In addition, Tongaat-Hulett is a major property 

company and Illovo is a continental leader in 

sugar production. 

Tourism 

Tourism plays a vital role in the economy of the 

region, with the conference and events sector 

supported by excellent facilities. The jewel in the 

crown is the huge Albert Luthuli International 

11 KWAZULU-NATAL BUSINESS 2019/20


Convention Centre Complex which hosts the annual 

Tourism Indaba. 

The province's excellent climate lends itself 

to every kind of outdoor pursuit and its excellent 

beaches are always popular. Big sports events are 

regularly hosted in KwaZulu-Natal which has become 

something of a home to mass participation events 

such as the Comrades Marathon and Dusi Canoe race. 

The province has excellent game and nature reserves. 

Isimangaliso Wetland Park is a World Heritage Site 

and helps to fund 80 small businesses associated 

with its business as a tourist site. 

New international direct flights have been 

announced by King Shaka International Airport, 

including a direct flight to London with British Airways. 

Geography 

The mixed topography of the province allows 

for varied agriculture, animal husbandry and 

horticulture. The lowland area along the Indian 

Ocean coastline is made up of subtropical 

thickets and Afromontane Forest. High humidity 

is experienced, especially in the far north and this 

is a summer rainfall area. The centrally located 

Midlands is on a grassland plateau among rolling 

hills. Temperatures generally get colder in the far 

west and northern reaches of the province. 

The mountainous area in the west – the 

Drakensberg – comprises solid walls of basalt and 

is the source of the region’s many strongly running 

rivers. Regular and heavy winter snowfalls support 

tourist enterprises. The Lubombo mountains in the 

north are granite formations that run in parallel. 

Plans for Durban 

Six years ago, the eThekwini Municipality adopted a 

densification strategy which entails careful planning 

along three main urban corridors which connect to 

the city centre. Land-use management along these 

corridors will encourage diverse investments while 

at the same time introducing an Integrated Rapid 

Public Transport Network (IRPTN). 

An Inner City Local Area Plan (LAP) for Durban 

has been developed that aims to make the inner city 

of Durban “Africa’s leading, most vibrant, liveable, 

walkable City Centre”. 

Developed for the Strategic Planning unit of the 

eThekwini Municipality by a Joint Venture called 

IPPU, the LAP is based on four main principles: 

• The connected city: tackling the legacy of 

the disconnected city of apartheid, the plan 

promotes the integration of different modes of 

transport (bus, taxi, pedestrian, rail, etc). 

• The walkable city: the aim is for residents to be 

five minutes’ walk from public transport, shops, 

schools and healthcare facilities. A good variety 

of residential accommodation is key. 

• Land use intensity: the plan proposes that 

land use approvals be more flexible, allowing 

for more variety and greater density. The plan 

cites an example of art gallery at street level, 

with offices above and accommodation on 

top. If more people live in an area, then shops 

become more viable and it is easier to provide 

bulk services. 

• Starting with small projects and finding ways of 

championing the development of the inner city. 


12


The IPPU Joint Venture comprises Iliso, TPI, PMSA, 

UrbanEcon including Cox Architecture, Urban 

Solutions, Urban Earth, Jo Lees and Joe Kitching. 

The Point Waterfront Development is a major 

project that is in the process of transforming what 

was an under-utilised and somewhat rundown part 

of the city into a vibrant, multi-use precinct. 

Some projections put the total potential investment 

value of the project at R40-billion and the number of 

permanent jobs to be created at 6 750. It is an ambitious 

plan that links the city's beach promenade and the 

harbour. It offers a property use mix of office space, 

retail shops, residential dwellings and leisure options. 

The 55ha site has already seen significant investment. A 

cruise terminal in the harbour backing on to the Point 

has been approved. 

Other major projects in the inner city include: 

• The Warwick Junction transport interchange 

which has received road upgrades but could be 

an even greater enabler of trade. 

• The Centrum Government Precinct which will 

formalise the relationship between buildings 

such as the International Convention Centre and 

a related hotel, the library, council chambers and 

the redevelopment of Gugu Dlamini Park. 

Regions 

KwaZulu-Natal has 11 district municipalities, the 

most of any province in South Africa. In economic 

terms, the province offers diverse opportunities. 

Southern region 

This area is the province’s most populous. The city 

of Durban has experienced booms in sectors such 

as automotive, ICT, film and call centres. Major 

investments are taking place at the Port of Durban and 

there is a possibility that the old airport south of the 

city becomes another port, if the money can be found 

to dig it up and let the sea in. Durban's conference 

facilities are well utilised, but many opportunities still 

exist in chemicals and industrial chemicals, food and 

beverages, infrastructure development and tourism. 

Further south, plans are in place to upgrade Margate’s 

airport and Port Shepstone’s beachfront. 

Western region 

Also known as the Midlands, this is a fertile agricultural 

region, producing sugar cane, fruit, animal products, 

forestry and dairy products. Pietermaritzburg is the 

provincial capital and home to a major aluminium 

producer along with several manufacturing concerns, 

including textiles, furniture, leather goods and food. 

The city has good transport links along the N3 national 

highway, excellent schools and a lively arts scene. The 

Midlands Meander is a popular tourist destination. 

Eastern region 

Although most of this area is very rural, Richards Bay is 

one of the country’s industrial hotspots because of its 

coal terminal and port and aluminium smelters. The 

Richards Bay Industrial Development Zone (RBIDZ) is 

a major economic node in itself: the 62-hectare first 

phase is almost fully subscribed with the investment 

value of the two phases (some having already been 

secured for phase two) at R6.8-billion. Mining is an 

important sector in this region. The other major urban 

centre is Empangeni which has several educational 

institutions. The newly completed King Shaka 

International Airport is kick-starting massive new 

investment in the area. The ilembe District Municipality 

is particularly active in seeking out new investors. 

Northern region 

The economic powerhouse is Newcastle in the 

north-west: coal-mining, steel processing and 

manufacturing are major activities. Some old coal 

mines are being reopened by new coal companies 

to cater for the country's power stations’ demand for 

the fuel. Game farms, trout fishing and hiking are part 

of an attractive package for tourists, and Zululand is 

a popular destination for cultural experiences. The 

whole region is rich in Anglo-Boer War history. 

13 

KWAZULU-NATAL BUSINESS 2019/20


Investors are showing 

confidence in KZN 

Private and public entities are expanding operations and 

creating new opportunities. 

Harbour expansions, a new film studio, infrastructure spending 

by major cities and the state and several city-sized property 

developments – these are some of the big investments into 

the KwaZulu-Natal economy currently underway. 

The scale and variety of these investments illustrate the size and 

diversity of the regional economy which ranges from mining, steel 

and chemical manufacturing to automotive works, agri-processing 

and clothing and textiles. Recent investments in the expanding 

tourism sector are covered in a separate article. 

The New Development Bank, a BRICS initiative, has approved a 

loan of $200-million in support of the reconstruction of the Durban 

Container Terminal berth. This will allow Transnet to expand the 

capacity of the port and to cater for bigger vessels. At Richards Bay, 

Transnet has committed to investment of R7.5-billion to 2023. Money 

has been allocated to improving the coal rail line, expanding the 

rail yard and the port itself. There will be 45 projects in all. 

The Richards Bay Industrial Development Zone (RBIDZ) 

is attracting investment as a node of development as it offers 

attractive incentives and support for investors. Sectors being 

targeted include agri-processing, ICT and telecommunications, 

manufacturing (proximity to aluminium works opens possibility 

for the manufacture of discs, pistons and beverage cans), logistics 

and renewable energy. RBIDZ 

has been named as the site for 

2 000MW liquefied natural gas 

(LNG) plant in terms of national 

government's gas-to-power plan. 

RBIDZ is also the site of a new 

biomass plant. 

Film-maker Anant Singh has 

plans to transform the old Natal 

Command site at North Beach 

into eThekwini Film City. He 

owns most of the land and the 

municipality is in favour of the 

project. Singh told City Press that 

the projected cost of the project 

is R7.5-billion. 

Two of the province’s biggest 

companies, Sappi and Mondi, are 

diversified global operators and 

they have both recently made 

major investment commitments. 

Responding to President 

Cyril Ramaphosa’s appeal for 

investments to drive the South 

African economy in 2018, Sappi 

committed to R7-billion and 

Mondi to R8-billion. Sappi spent 

R4.3-billion on increasing its 

capacity in dissolving pulp in the 

six years to 2018 and will spend 

R2.7-billion on its Saiccor plant in 

KwaZulu-Natal. Mondi noted that 

its exports from KwaZulu-Natal 

annually earned about R4-billion. 

A new plant to make washing 

machines has created 75 jobs at 

the Durban plant of white goods 

manufacturer Defy. The R121-million 


14


investment is part of a R1.2-billion investment programme which Arçelik 

Global, the Turkish company, has been following since it bought Defy 

in 2011. The company has another plant in KwaZulu-Natal in Ezakheni 

(near Ladysmith) and in East London in the Eastern Cape. 

In 2018 the eThekwini Metropolitan Municipality decided 

to apply for a R1-billion load for capital projects. The city’s 

integrated development plan will include expenditure on water 

and sanitation infrastructure, roads and electrification projects. 

Infrastructure throughout the province will attract more than 

R200-billion to 2025 according to information supplied by the 

KZN Construction Expo. 

Major developments north of the city of Durban continue 

to transform the economy and the landscape. The King Shaka 

International Airport and the associated Dube TradePort has made 

a big impact, as has the conversion by sugar giant Tongaat Hulett 

of its land holdings into property developments. 

Dube TradePort is a 3 000-hectare development that 

encompasses the airport and is ideally situated for any logistics 

business due to its proximity to Africa’s busiest cargo port (at 

Durban) and 140km from the deepest natural harbour in the 

southern hemisphere where the Port of Richards Bay and the 

Richards Bay Industrial Development Zone are located. 

Dube TradePort is a Special Economic Zone which has: 

• Dube Cargo Terminal. 

• Dube Tradezone: Suitable for warehousing, manufacturing, 

assembling, cargo distribution, etc. 

• Dube City: 12 hectares of office, retail and hospitality space. 

• Dube Agrizone: intended to support growing, packaging and 

distribution high-value perishables and horticultural products. 

• Dube iConnect: the precinct’s dedicated IT and telecommunications 

provider and the only locally-hosted cloud service in the province. 

Industrial parks 

The Provincial Government of KwaZulu-Natal intends establishing 

one industrial park within each of the province’s 10 district 

municipalities, focussing on existing strengths. These industryfocused 

hubs will attract new investments and help existing 

businesses through economies of scale and by improving access 

to markets and supply chains. 

There is one metropolitan municipality in KwaZulu-Natal. 

Construction on the industrial park in the eThekwini Metropolitan 

Municipality, an automobile supplier park, is expected to begin 

in 2019. 

In most of the other areas, land has been secured and feasibility 

studies have been completed. The design of the parks and the 

provision of infrastructure is 

currently underway and some 

tenants have been identified. 

The Department of Economic 

Development, Tourism and 

Environmental Affairs is the 

implementing agency on behalf 

of the Provincial Government. 

By way of example, the 

iLembe District Municipality 

will be the focus of investment 

in renewable energy. The N2 

is the main arterial running 

through the district, giving 

excellent access to both 

Durban and Richards Bay. The 

Dolphin Coast is a major node 

for tourism. With the King Shaka 

International Aiport (KSIA) and 

the Dube TradePort lying just 

south of the iLembe District in 

the eThekwini Municipality, a 

partnership has been created 

between the two municipalities 

and the provincial government 

to develop a renewable energy 

technology innovation hub. 

Enterprise iLembe (Pty) Ltd 

drives investment into the area. 

At Ndwedwe 26 biodigesters 

produce gas for cooking as 

part of the Working for Energy 

programme of the South African 

National Energy Development 

Institute (SANEDI). 

The Small Harbours and State 

Coastal Property unit of the 

National Department of Public 

Works wants to see coastal 

properties revitalised. Initiatives 

are under discussion for Port 

Edward (new harbour, fish 

processing, fishing and leisure), 

Hibberdene (waterfront and a 

Music City) and Port Shepstone 

(boat building and repairs and 

a new economic zone). 


16

Making a real impact 

As Black Umbrellas, we are passionate about the socio-economic impact we make to 

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

must yield a positive result and tangible impact. The SMEs we support continue to 

make significant positive strides to the outlook of this country. 

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

incubation programme so that they are able to emerge as independent, viable businesses. 

KwaZulu-Natal power milestones collectively achieved by our SME clients 

Turnover Net Profit Jobs Created Salaries Paid Net Asset Value 

R530 435 388 R65 202 494 1704 R134 118 299 R211 091 877 

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

Commerce and Industry (ZCCI) and Business Women’s Association (BWA). Here a number of our clients 

have scooped prestigious awards such as the BWA Zululand Emerging Entrepreneur of the year (2016/ 

2017), ZCCI Emerging Business of the year (2017), ZCCI Micro Business of the year (2017) as well as the 

People’s Choice Award at Black Umbrellas’ National Enterprise Development Awards (2018). 

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

Tel: 035 901 8760 | Email: Tebogo@blackumbrellas.org | Website: www.blackumbrellas.org

Massive investments in 

tourism are paying off 

New direct international flights, upgraded facilities and new hotels 

all point to growing confidence in the tourism sector. 

Major investments are being made into 

getting tourists to KwaZulu-Natal 

and new hotels are being built to 

accommodate the increased number 

of visitors. Durban’s casino has had a major refit 

and the Durban International Convention Centre 

(pictured) is constantly upgrading its facilities to 

cope with demand. 

In terms of the vital transportation of 

tourists into the province, the most significant 

developments are: 

• The decision to go ahead with the construction 

of a dedicated cruise-liner terminal in the Port 

of Durban. 

• The announcement in 2018 of a new direct British 

Airways (BA) flight between Heathrow Airport 

in London and King Shaka International Airport 

(KSIA). 

• Africa’s longest suspension bridge has 

dramatically reduced travel times between 

tourist hotspots in northern KwaZulu-Natal 

and neighbouring country Mozambique. The 

Maputo-Catembe bridge forms part of a new 

road from Maputo to Kosi Bay which was officially 

opened in November 2018. 

KwaZulu-Natal offers astonishing variety for the 

visitor. Awesome natural beauty extends from the 

beaches all along the coastline to the iSimangaliso 

(Greater St Lucia) Wetland Park and the spectacular 

mountainous scenery of the Ukhahlamba- 

Drakensberg Park. The history of the Zulu kingdom 

includes a number of battlefield sites outlining famous 

clashes with the British Empire such as Isandlwana. 

Mahatma Gandhi lived in the province and the site 

of Nelson Mandela’s arrest is commemorated. Big 

sporting events such as the Dusi Canoe Marathon, the 

Durban July Handicap and the Comrades Marathon 

attract thousands of participants and supporters 

every year. 

In KwaZulu-Natal, the combined contribution of 

retail and tourism to GDP is 14%. Many thousands 

of visitors to KwaZulu-Natal arrive by road, and 

the statistics show that the Mooi River toll plaza 

bringing visitors from Gauteng Province is a vital 

portal. 

Improving access 

In 2018 Transnet National Ports Authority (TNPA) 

and the KwaZulu Cruise Terminal (KCT) signed an 

agreement for the construction of a cruise-ship 

terminal in the Port of Durban that will be completed 

by late 2020. 

KCT, a joint venture between MSA Cruises SA 

and Africa Armada Consortium, will spend R175- 

million on the financing‚ construction‚ maintenance 

and operation of a cruise terminal for a 25-year 

concession period. 


18


The number of cruise-ship passengers attracted to 

Durban grew from 42 000 in 2004/05 to 157 000 in 

2010/11 and the new terminal is expected to radically 

improve these numbers. The number of annual 

passengers is expected to grow from the current 

200 000 to more than 700 000 by 2040. South Africa 

attracts 0.5% of the world’s cruise-ship market which 

comprises about 15.4-million passengers annually. 

Durban’s hosting of 60 ships per annum will rise to 

150 or more. 

The decision by BA to introduce a direct 

London flight is a major boost for KwaZulu-Natal’s 

main airport. Although Qatar Airways, Emirates 

Airlines and Turkish Airlines provide direct flights 

to their own hubs (Doha, Dubai and Istanbul), a 

direct link with London will be very attractive to 

tourists and to importers and exporters. KSIA is 

within the Dube TradePort and cargo volumes 

have been increasing steadily every year. 

The opening of the ambitious Maputo-Catembe 

bridge has opened up a number of possibilities 

for tour operators in northern KwaZulu-Natal. 

With access to Mozambique no longer involving 

a tortuous process of driving through Swaziland, 

the chances of tourists wanting to combine a 

visit to the parks in South Africa with a visit to 

Mozambique’s vibrant capital are much higher. It is 

possible that the bridge itself will become a tourist 

attraction. The improved roads connecting Kosi Bay 

to Maputo will also mean increased trade, with the 

Richards Bay Industrial Development Zone only 

about 250km further south from Kosi Bay. 

New and improved 

Tsogo Sun has spent R1.6-billion on refurbishing its 

Suncoast complex on Durban’s Golden Mile. Suncoast 

Casino Hotels & Entertainment covers a huge area 

and offers a wide variety of entertainment options. 

The recent upgrade included the addition 

of seven new restaurants, new retail outlets, a 

new theatre and an event venue, and increased 

space at the casino. More underground parking 

was created and the whole complex was given 

a fresh look. 

MEETINGS AND EVENTS 

Facts about the Inkosi Albert Luthuli ICC 

Complex 

• The ICC can seat 5 000 delegates 

• Raked seating for 1 800 can be lifted to 

the ceiling to clear floor space 

• 10 000 delegates can be accommodated 

when combined with the Durban 

Exhibition Centre (DEC) 

• The ICC offers 70 000 square metres of 

column-free space 

• 23 meeting rooms and undercover 

parking for 1 200 cars 

• Three courtyards, one central kitchen 

and 12 satellite kitchens 

• Albert Luthuli was president of the 

African National Congress and received 

the Nobel Peace Prize in 1960 

Tsogo Sun has four other hotels on the Golden Mile 

and more than 100 hotels and 14 casino and entertainment 

destinations in South Africa, Africa and the 

Seychelles. Tsogo Sun runs 14 hotels in KwaZulu- 

Natal, five of which are Garden Courts. Six hotels are 

in Durban with a further four in nearby Umhlanga, 

where one of the group’s most luxurious hotels, the 

89-room Beverly Hills, is located. 

A new “mega-hotel” has been created by Tsogo 

Sun, with the amalgamation of the Southern Sun 

North Beach and Southern Sun Elangeni hotels. 

A key reason for Durban’s high ranking in the 

meetings, incentives, conferencing and exhibitions 

sector (MICE) is the Durban International 

Convention Centre (Durban ICC). Located within 

the Albert Inkosi ICC Complex in downtown 

Durban, the venue will spend R27.3-million in 2019 

on capital projects. 

The Durban ICC is one of the most flexible 

and versatile venues in the world. The main 

convention area of 11 600m² can be opened up 

to form one large venue or subdivided into 22 

separate convention halls of various sizes. The 

refurbishment of seats in Hall 1, which can seat up 

to 1 680 delegates, will cost R6-million. 

19 



the hotel and the shopping mall sections of the 

planned complex are going ahead. 

A 207-room Hilton Garden Inn will be operating 

at Umhlanga Arch by 2020. Hilton Durban 

acquired a new owner in 2018 when Bin Otaiba 

Hotels bought it, together with four hotels in 

Johannesburg, Port Elizabeth and Cape Town. 

Hotels 

More than 20 000 delegates will use the Durban 

ICC in 2019. In the 2017/18 financial year, the venue 

hosted 450 events, contributed R4.7-billion to 

South Africa’s Gross Domestic Product and created 

9 474 jobs. 

Durban's hosting of the Tourism Indaba 

further supports the idea that the province is a 

major conference destination. More than 7 000 

delegates are annually attracted to exhibit South 

Africa's assets to international tour operators. The 

city has secured the Tourism Indaba until 2022. 

The range of topics covered by recent 

conferences held in KwaZulu-Natal is wide and 

includes the World News Media Congress, the 

Pan-African Health Tourism Congress, the National 

Association of Automotive Components and 

Allied Manufactures (NAACAM) Show and the 

Durban Maritime Summit. 

Premier Hotels & Resorts will spend about 

R420-million on two new hotels at Umhlanga. 

Currently under construction, the hotel complex 

is located alongside the Gateway Theatre of 

Shopping next to Umhlanga Ridge. The four-star 

Premier Hotel will have 130 rooms while the threestar 

Splendid Inn by Premier will be equipped with 

64 bedrooms. The group has hotels and resorts 

in six provinces. 

A new Radisson Blu Hotel will open in Umhlanga 

Rocks as part of the ambitious R3-billion Oceans 

Umhlanga development. Some construction work 

has been halted because of problems experienced 

by construction companies, but it seems that 

Research by Tourism KwaZulu-Natal shows that the 

coastal province consistently has the best hotel 

occupancies in the country. 

Protea Hotels has 18 properties in the province, 

with seven in Durban including the Protea Hotel 

Edward. The upgrading of the Point area between 

the beach and the Port of Durban has resulted 

in major investments. The Docklands Hotel at 

the Durban Waterfront is a four-star Signature 

development that cost about R100-million to 

develop. 

The Royal Hotel in the heart of Durban is 

one of eight Three Cities Group hotels in the 

province. The Golden Horse Casino Hotel is a 

Three Cities property, and the Group administers 

the International Hotel School in Westville that 

is also home to the Christine Martin School of 

Food and Wine. 

IFA Hotels & Resorts runs several luxury 

properties including the Zimbali Coastal Resort 

and Zimbali Lakes Resort. Signature Life Hotels 

has 13 properties and Gooderson Leisure has a 

varied portfolio. 

Sibaya Casino and Entertainment Kingdom, 

a Sun International property, is north of Durban 

between Umdloti and Umhlanga. The casinos 

in Newcastle (Century City), Empangeni (Tusk 

Umfolozi Casino) and Pietermaritzburg (Golden 

Horse Casino) are run by Century Casinos 

Newcastle, Peermont Global and Akani Msunduzi 

Management respectively. 

Airbnb is a fast-growing option in South Africa. 

The Airbnb visitors to South Africa in 2016 engaged 

in R2.4-billion worth of economic activity. Durban 

had the largest increase in Airbnb bookings from 

the previous year. 


20


Regions 

Several of KwaZulu-Natal’s regions are investing in 

tourism projects. 

Harry Gwala 

Dramatic mountain landscapes and a plentiful 

supply of water help make this district perfectly 

suited to tourism. The main towns are Kokstad 

and Ixopo. The Drakensberg Mountains define 

the district’s western boundary. The Harry Gwala 

Development Agency believes that niche sectors 

such as avi-tourism (birding), rail tourism and mission 

tourism hold great potential. 

Umkhanyakude 

The Isimangaliso Wetland Park extends 220km 

along the northern reaches of the province, to the 

border with Mozambique, and offers unrivalled 

birding, game viewing, deep-sea fishing, turtle 

tours, kayaking and whale-watching. It is a World 

Heritage Site and, together with the HluhluweuMfolozi 

Game Reserve, forms the core of the 

tourism and conservation offering in the province. 

With agriculture the other dominant economic 

activity in the area, any new investment would have 

to be ecologically sensitive. A new entertainment 

complex at Hlungweni Peninsula within the Tembe 

Tribal Authority, 30km north of Sodwana Bay, is 

being contemplated. 

Uthukela 

Larger towns include Estcourt, Colenso and 

Ladysmith. Predominantly rural, the district 

encompasses two of the greatest natural assets 

in the province in the Thukela River and a part of 

ANNUAL SPORTING EVENTS AND EXHIBITIONS 

January. Dusi Canoe Marathon, 

Pietermaritzburg to Durban. 

February. Midmar Mile, Midmar Dam. 

April. Durban International Boat and 

Leisure Show, Durban. 

May. Tourism Indaba, Durban. Comrades 

Marathon, Pietermaritzburg to Durban. 

June. Mr Price Pro international surfing 

contest, Ballito. 

July. The Durban July, Greyville. 

August. Durban International Film 

Festival, Durban. 

September. Dolphin Coast Ultra, North 

Coast. KZN Music Imbizo, Durban. 

October. Zululand Expo. Richards Bay. 

Berg and Bush bicycle race, Drakensberg. 

the Drakensberg mountain range, which attracts 

hundreds of thousands of visitors. A cableway 

system in the Drakensberg (near Bergville) with 

entertainment and accommodation facilities has 

been mooted. 

Zululand 

Zululand is a popular destination for cultural 

experiences and the area is rich in Zulu history 

and Anglo-Boer War history. Vryheid and Ulundi 

are the main towns. A possible development of a 

heritage site at Nongoma has been suggested to 

serve as a catalyst for other sites to offer traditional 

Zulu experiences, including arts and crafts, agriprocessing, 

traditional medicines and cosmetics 

and leveraging the profusion of aloe plants in the 

district. 

21 


INTERVIEW 

Enterprise iLembe 

Nathi Nkomzwayo, CEO of Enterprise iLembe, reveals how this 

east coast region is packed with opportunity, from agriculture 

and manufacturing to tourism, commerce and services. 

Nathi Nkomzwayo, 

Chief Executive Officer 

BIOGRAPHY 

Nathi has more than 18 years’ 

experience in the manufacturing 

industry, 10 of those at senior 

management and executive 

level. With a degree in 

engineering and an MBA, his 

career highlights include the 

successful implementation of 

a R400-million project for a 

large smelter and the design 

and execution of a range of 

programmes from skills transfer 

to asset care strategies. As a 

board and executive committee 

member, Nathi has experience 

in company policy formulation, 

corporate governance and 

relationship management. 

What is Enterprise iLembe? 

We are the Economic Development Agency of the iLembe District 

Municipality and our mandate is to drive economic development as 

well as to promote trade and investment in the region. We do this 

through the development of the economic development strategy 

that guides economic activities and programmes. The philosophy that 

drives Enterprise iLembe is built on promoting a participatory process 

where local people work together to stimulate local commercial activity, 

resulting in a resilient and sustainable economy. 

With our partners such as Trade and Investment KZN and the iLembe 

Chamber we aim to position the district as the investment destination. 

Programmes include biannual business confidence reports and an 

overall business outlook. 

Where do you operate? 

The iLembe District is made up four local municipalities, KwaDukuza, 

Maphumulo, Mandeni and Ndwedwe. They are different in terms 

of their economic outlook and their developmental needs with the 

coastline on one end and agricultural space on the other. Our strategy 

needs to zoom in on the development needs of the individual local 

municipal areas while ensuring broader alignment and integration. We 

need to be conscious of the unequal business environment. 

How does Enterprise iLembe identify and develop projects? 

In most cases we are guided by our strategic geographic location and 

economic sectors that are most viable in our region. These sectors are 

Agriculture, Manufacturing, Tourism, Oceans economy, Renewable 

energy as well as Commerce and Services. Being strategically located 

between the two major South African harbours in Durban and Richards 

Bay, iLembe District is the highest-priority development corridor in 

the province. The close proximity to the King Shaka International 

Airport and the Dube TradePort also connects the district directly to 

international markets. 

We have established a Business Incubator Facility. The objective 

is to provide assistance for SMMEs. Working in the partnership with 

Invotech and Africa Ignite, the project assists with access to technical 

and business-related skills. It is the one-stop shop for all business 

information and facilitating access to funding for SMMEs. Enterprise 

iLembe has also finalised a Broadband Masterplan. 


22

INTERVIEW 

How has tourism contributed 

to economic development 

and job creation? 

The past year saw a record of 

over 800 000 tourists visiting 

the iLembe District, contributing 

over R3-billion to the economy of 

the region. Attractions such as 

the Ballito Junction Mall remain 

key drivers. 

The mall attracted 12-million 

visitors during its first year of 

operation. There are many 

other tourist offerings besides 

shopping. These includes the 

beaches, cultural, history and 

adventure tourism. 

How do you work with investors? 

We continuously engage with potential investors through various 

platforms and sign MOUs that lead to direct investment across all sectors 

with key focus on job creation, skills development and the overall 

contribution to the economy. More recent investments are focused in 

the renewable and green energy sector. The investment opportunities 

are outlined in the iLembe investor prospectus for the region. 

As Enterprise iLembe, we believe that collaboration and partnerships 

with key stakeholders is key. It is to this end that we work closely 

with partners such as Trade & Investment KZN, Tourism KwaZulu-Natal, 

local municipalities as well as private-sector partners. 

Other partners such as Dube TradePort and the Isithebe Industrial 

Estate have also created immense opportunities for growth and stimulation 

of economic initiatives. Our focus is to work with potential investors 

to facilitate and ensure that their investment in the iLembe District is 

not only seamless and smooth, but also sustainable in the long term. 

CONTACT INFO 

Tel: 032 946 1256 

Email: info@enterpriseilembe.co.za 

Website: www.enterpriseilembe.co.za 

Facebook: Enterprise iLembe | NORTHCOASTKZN 

Twitter: EnterpriseiL 

How does the flagship 

National Schools Nutrition 

Programme benefit farmers 

and learners? 

As per our mandate, Enterprise 

iLembe procures vegetables 

from farmers to supply to 

schools for the National Schools 

Nutrition Programme (NSNP). 

Currently approximately 63% 

of the 180 tons required for the 

programme are procured from local 

farmers. A total of 119 farmers 

supply fresh produce to the 406 

schools in the district. 

This has been achieved 

through the setting up of agrihubs 

in Mandeni, Maphumulo 

and Ndwedwe. This is a key 

programme for Enterprise 

iLembe as it talks directly to 

the empowerment of local 

communities. Agriculture has 

been proven to be one of 

the most sustainable sectors 

provided there is a market for 

SMMEs to supply their fresh 

produce, and the NSNP creates 

that market space. 

23 


ADVERTORIAL 

ADVERTORIAL 

Nedbank’s new brand promise focuses on client 

engagement Nedbank’s that new will brand create a promise better understanding 

across focuses clients’ on personal client engagement and business banking thatneeds 

will create a better understanding 

Siphamandla Ndhlovu, Provincial General Manager in KwaZulu- 

Natal, Kevin explains de Beer, how Nedbank Nedbank Provincial works General with communities Manager in the to deliver 

banking Free State solutions. and Northern Cape, explains how Nedbank 

works with communities to deliver banking solutions. 

Our expertise will help clients navigate 

challenges and meet their goals 

Nedbank continues to build on its clientcentred 

strategy aimed at delivering 

distinctive experiences and channels 

of choice for businesses and clients in 

KwaZulu-Natal. This has seen the bank 

simplify and enhance its product offering 

in line with its value-banking philosophy 

based on simplicity, transparency and 

affordability. Innovation and technological 

advancements, as well as training and 

development of staff, have been key pillars 

in achieving the bank’s objectives. 

Since 2012 Nedbank has launched several first-tomarket 

innovations, such as the award-winning 

Nedbank App Suite, the home loans online 

digital channel and Market Edge, as well as New 

Image outlets concept in communities locally and 

nationally. “Working with communities is entrenched 

in our values through community development, skills 

development, education and job creation, as well as 

environmental conservation. These play a vital role in 

building a sustainable economy and vibrant society. 

We believe our fast-growing presence in communities 

goes a long way towards enabling greater financial 

inclusion while contributing towards economic 

growth,” concludes Ndhlovu. 

Nedbank also leverages its strong market positioning 

with businesses and the public sector, encouraging 

them to bank their employees through its employee 

banking offering. This forms part of Nedbank’s 

Banking and Beyond philosophy, which is aimed 

at supporting business owners to make informed 

decisions that will enable them to grow and take their 

businesses to the next level. 

This is a unique service for clients, with financial 

fitness training a key aspect of the offering. Our 

wide range of products and services include the 

Nedbank Ke Yona Plus transactional account, which 

comprises funeral cover, a personal loan facility, the 

JustSave Account and the Send-iMali money transfer 

solution, enabling clients to transact, borrow, save 

and take out cover. 

To encourage the youth to save and build their 

financial fitness from an early age the Nedbank 4me 

offering enables the youth to transact and save with 

the benefit of earning preferential interest. Nedbank 

4me comprises a full transactional banking account 

with no monthly fees, free initial transactions and 

thereafter reduced pay-as-you-use pricing, free 

eNotes and self-service banking. 

This wide range of offerings from Nedbank makes 

banking more accessible to all. 

Nedbank has also invested in innovative alternative 

distribution outlets through its strategic partnership 

with Boxer stores. These partnerships, which span 

over 15 years, enable communities to get access to 

financial services every day of the week, even Sundays 

and public holidays. 

Should you be interested in learning more about how 

Nedbank can assist you grow your wealth and see money 

differently, for more information call Siphamandla 

Ndhlovu on +27 83 637 8552 or visit 

www.nedbank.co.za.

ADVERTORIAL 

ADVERTORIAL 

Making Nedbank’s it easier new to brand do business promise with Nedbank 

Business focuses Banking on client engagement that 

Siphamandla Ndhlovu, KwaZulu-Natal Provincial Business Banking 


Manager, explains how Nedbank can help business owners see money 

differently. Kevin de Beer, Nedbank Provincial General Manager in the 

Free State and Northern Cape, explains how Nedbank 

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

relationship from a Business Manager point of view. 

Our approach is to understand the client’s business 

holistically and from that understanding, design tailormade 

banking solutions to suit the business needs 

of the client. Our “Wholeview Banking” approach 

enables us to understand the client’s cash receipts and 

payment cycle, their global trade transactions, foreign 

exchange hedging transactions and transactional 

banking needs which include cash handling. From this 

information, we are able to provide banking, payment 

and funding solutions that meet the client’s needs. We 

are therefore seen as a trusted partner by the business 

we serve as our banking solutions match the client’s 

needs and means. 

“At Nedbank Business Banking we 

believe that you need a financial 

partner who not only understands your 

circumstances and aspirations, but also 

provides you with relevant solutions 

and a banking experience that is hasslefree. 

This allows you to concentrate on 

what’s most important to you – running 

your business,” says Ndhlovu. 

At the core of our Business Banking offering in 

KwaZulu-Natal is a relationship-based model. We 

believe in building a relationship with our client 

which helps elevate trust which becomes the solid 

foundation on which our banking decisions are made. 

A Business Manager is the key entry point into the 

bank. The Business Manager is supported by a Client 

Service team who ensure delivery of the facilities 

the client is afforded. The Client Service team also 

becomes a repository of client information where 

the client history and track record are held. This 

Our banking offering covers a broad range of financial 

and advisory services to small and medium businesses 

in all sectors of the economy including Agriculture. 

We pride ourselves in our ability to make quick credit 

decisions as our Credit teams are located in the 

markets that we serve as opposed to being at a central 

location that is removed from the local market. 

Furthermore, based on the relationship foundation 

and our understanding of the client’s needs, we are 

able to extend our offering to the business owner 

in their personal capacity, their family and staff. In 

doing this, we answer Nedbank’s call to use our 

financial expertise to do good for individuals, families, 

businesses and communities within which we operate. 

Should you be interested in taking your business to its 

next level and improving staff engagement, and for more 

information about Nedbank’s specialised service offering 

please call Siphamandla Ndhlovu on +27 83 637 8552 

or visit www.nedbank.co.za.

ADVERTORIAL 

ADVERTORIAL 

Nedbank’s new brand promise 

focuses Expertise on in small client business engagement aimed at that stimulating 

will growth create a better understanding 

Kevin de Beer, Nedbank Provincial General Manager in the 

Nedbank’s Melanie Reddy, Provincial Retail Relationship Banking Manager, 

Free 

explains 

State 

how 

and 

Nedbank 

Northern 

is committed 

Cape, explains 

to partnering 

how Nedbank 

with small businesses 

works for growth. with communities to deliver banking solutions. 

For example, the Small Business Friday initiative, in 

association with the National Small Business Chamber, 

seeks to encourage everyone in South Africa to rally 

behind and support small businesses. The initiative 

calls on everyone to make a conscious decision to 

vote for small businesses through their hearts, feet 

and wallets; not only on Small Business Friday which is 

one particular Friday in a year, but every day. 

“Small businesses are the mainstay of the 

economy. Nedbank has, over the years, 

instituted various interventions aimed at 

giving support to the small-business sector. 

Over and above our small-business services 

solutions, we provide small-business 

owners with support that goes beyond 

banking, freeing up their time to truly focus 

on running their businesses,” says Reddy. 

Nedbank has built a solid reputation as a bank for 

small businesses through initiatives such as Small 

Business Friday, free small-business seminars and 

the SimplyBiz.co.za platform – all geared to support 

the small- and medium-sized enterprises sector. 

Our offering expands to the Professional Banking 

segment of the market. In Professional Banking we 

realise that time is of the essence in your professions 

and hence we offer you a dedicated banker with a 

strong support team to take care of the needs of you, 

your business and your household. 

SimplyBiz.co.za is a free-to-join value networking 

portal designed especially for small businesses. The 

online portal helps small businesses improve their 

business administration skills, keep up with the latest 

trends, network with other small businesses and 

share ideas. 

Should you wish to tap into our small business expertise 

to help your business goals, why not get in touch with 

Nedbank’s Small Business Services. Call Melanie Reddy 

on +27 31 364 2045 or send an email to 

Melanier@nedbank.co.za.

ADVERTORIAL 

ADVERTORIAL 

Nedbank’s new brand promise 

Making focuses banking on client accessible engagement to all that 


At Nedbank we believe in delivering a choice of distinctive clientcentred 

Kevin de banking Beer, Nedbank experiences Provincial that create General deep, enduring Manager relationships 

in the 

with Free our State clients, and Northern says Sean John, Cape, Provincial explains Sales how Nedbank Manager, KwaZulu- 

Natal works Branch with communities Networks. to deliver banking solutions. 

Our distribution presence in KZN sees us with 85 

traditional branches, 32 kiosks in Boxer stores and 33 

New Image branches. Nedbank has embarked on a 

distribution strategy to convert all our branches to 

New Image outlets. We have also increased our ATM 

distribution to 630 and Intelligent Depositors to 90 in 

the province for your convenience. 

To make banking convenient we have eight Sundaytrading 

branches in key centres in the province. 

Nedbank’s client-centred approach has seen the bank 

intensify its efforts in delivering a distinctive client 

experience through innovation. 

Our clients are engaged by skilled, enabled 

and productive staff who, through 

meaningful conversations, ensure we 

deliver to our clients’ needs and aspirations. 

As a bank for all, Nedbank realises that, if 

it wants to make banking more accessible 

to all in South Africa, it has to start working 

with the communities in which it operates. 

“Since 2012 Nedbank has launched several firstto-market 

innovations, such as the award-winning 

Nedbank App Suite, the home loans online digital 

channel and Market Edge, as well as New Image 

branch outlets,” adds John. 

For more information on our offerings please contact 

Sean John at SeanJ@nedbank.co.za, 

+27 31 364 1933. 

As such the bank’s strong relations with government, 

organised business and communities remain a key focus 

in growing its client base. 

Our presence in the KZN community goes a long way in 

allowing for greater financial inclusion while contributing 

to social upliftment and economic development. 

Nedbank Ltd Reg No 1951/000009/06. Authorised financial 

services and registered credit provider (NCRCP16).

KEY SECTORS 

Overviews of the main economic 

sectors of KwaZulu-Natal 

Agriculture 30 

Sugar 31 

Forestry and paper 34 

Mining 42 

Engineering 43 

Oil and gas 44 

Construction and property 48 

Water 49 

Manufacturing 50 

Automotive 52 

Information and communication 

technology 54 

Education and training 55 

Banking and financial services 56 

Development finance and SMME 

support 57

OVERVIEW 

Agriculture 

New crops are adding to the export basket. 

The award of Toyota SA/Agri SA Young Farmer of the Year for 

2017 went to a Richmond farmer who is one of only four 

farmers in the province cultivating golden kiwifruit. There 

are only 16 farmers in all of South Africa doing what Ross 

Lowe does, but he believes that the particular strain of kiwifruit he has 

chosen is the best in terms of taste and yield. Typically for the modern 

KwaZulu-Natal farmer, he also intends to increase his export volumes. 

So-called superfoods have potential to grow the agricultural 

sector via greatly increased exports: these include avocados, 

pecans and dates. The province’s Premier has mentioned 

possibilities in macadamia nuts (already a thriving sector in other 

parts of the country) and in new areas such as cannabis and the 

farming of rabbits. The opening of a R99-million cold-storage 

facility at the Dube TradePort in 2017 has given farmers and 

exporters additional flexibility, allowing them to store chilled and 

frozen perishable goods. 

Eighteen percent of KwaZulu-Natal’s 6.5-million hectares of 

agricultural land is arable, and the balance is suitable for the rearing 

of livestock. The province’s forests occur mostly in the southern and 

northern edges of the province. 

In 2018, a summit was held at which consultation took place 

towards the creation of an Agricultural Development Masterplan 

for the province. The resulting plan includes priorities such as the 

expansion of irrigable land, improving market access for producers 

and adding value to agricultural products before they reach local 

and international markets. 

The Agribusiness Development Agency (ADA) works with 

Department of Agriculture and Rural Development (DARD) to 

stimulate agribusiness that covers the entire value chain and 

promotes development in all areas. The coastal areas lend themselves 

to sugar production and fruit growing, with subtropical fruits doing 

particularly well in the north. KwaZulu-Natal produces 7% of South 

Africa’s citrus fruit. 

ONLINE RESOURCES 

Fresh Produce Exporters Forum: www.fpef.co.za 

KwaZulu-Natal Agricultural Union: www.kwanalu.co.za 

KwaZulu-Natal Department of Agriculture and Rural 

Development: www.kzndard.gov.za 

SECTOR INSIGHT 

Increased agricultural freight 

volumes are expected at the 

Dube TradePort. 

Beef originates mainly in the 

Highveld and Midlands areas, with 

dairy production being undertaken 

in the Midlands and south. The 

province produces 18% of South 

Africa’s milk. 

KwaZulu-Natal’s subsistence 

farmers hold 1.5-million cattle, 

which represents 55% of the 

provincial beef herd, and their 

goat herds account for 74% 

of the province’s stock. The 

Midlands is also home to some 

of the country’s finest racehorse 

stud farms. The area around 

Camperdown is one of the 

country’s most important areas 

for pig farming. 

Enterprise iLembe, the 

development arm of the iLembe 

District Municipality, is looking 

for investors to further develop 

an agri-processing hub near the 

King Shaka International Airport 

and Dube TradePort. 


30

Sugar 

OVERVIEW 

KwaZulu-Natal leads in sugar production. 


Times are tough in the sugar 

industry. 

For the first time in nearly a decade, some commercial sugar 

farmers in the Pongola area have returned to planting cotton as 

a rotational crop. This is according to the 2018 annual report of 

the KwaZulu-Natal Agricultural Union. Diversification is a good 

thing, but this move perhaps also points to the downward trend in 

overall sugar production. 

KwaZulu-Natal is South Africa’s biggest sugar producer. Most 

of South Africa's 14 sugar mills are in KwaZulu-Natal, as are the 

headquarters of the biggest companies. 

The South Africa Cane Growers’ Association (SACGA) described 

the 2017/18 season as “one of the toughest in the history of the 

South African sugar industry”. Although more land was cultivated 

(after the drought) and revenue was up, the price of sugar was so 

low that some growers were said to be at risk of business failure. 

Fourteen sugar mills crushed a total crop of 17 388 177 tons of 

cane to produce 1 994 607 tons of sugar during the 2017/18 crushing 

season. The cane crop was 2 313 567 tons larger than the 2016/17 

crop of 15 074 610 tons. 

About 40% of local production is exported. The SACGA represents 

about 24 000 growers who produce about 20-million tons of cane. 

A new industry structure, allowing for multiple grower associations, 

has been agreed to by the SACGA, the Department of Trade and Industry 


South African Cane Growers’ Association: 

www.sacanegrowers.co.za 

South African Sugar Association: www.sasa.org.za 

South African Sugar Technologists Association: www.sasta.co.za 

Sugar Milling Research Institute: www.smri.org 

(dti) and the relevant parliamentary 

portfolio committee. 

Neither of the Big Two companies 

relies exclusively on South 

African sugar earnings: Tongaat 

Hulett has a big property portfolio 

and Illovo draws most of its 

profit from operations elsewhere 

in Africa. 

Tongaat Hullet Sugar has 

agreed to a R52-million sugarcane-growing 

project which will 

see co-operatives and contract 

farmers plant cane on 3 000ha at 

Felixton, Maidstone and Darnall. 

Illovo and Tongaat Hulett are 

the major operators of sugar mills. 

Other millers are Gledhow, ULC, 

Umfolozi and Tsb (which has a 

further two mills in Mpumalanga). 

Illovo has four mills, three sugarcane 

estates, four sugar factories, 

a refinery and three downstream 

operations that make products 

such as furfural, furfuryl alcohol, 

ethyl alcohol and lactulose. 

The four mills run by Tongaat 

Hulett are located on the North 

Coast while the central refinery 

is in Durban and the animal feed 

plant, Voermol, is near Tongaat. 

The Sugar Terminal at Maydon 

Wharf, Durban, serves 11 mills 

and can store more than half-amillion 

tons of sugar. It also has a 

molasses mixing plant. 

31 


FOCUS 

Stimulating the agri 

sector in KwaZulu-Natal 

The new CEO of the Agribusiness Development Agency, 

Zenzele Ndlela, is upbeat about the ADA’s new mandate. 

Africa has been identified as a sleeping 

economic giant in terms of its resource 

potential. Agriculture has the potential to 

transform the African continent provided 

all the African countries can work together towards 

providing support to farmers. 

This is according to the newly appointed CEO, 

Zenzele Ndlela, of the Agribusiness Development 

Agency (ADA). “We all need to put our heads together 

and stimulate this sector in order to eradicate the 

twin problems of poverty and food crisis,” he says. 

ADA is a public entity that was established as a 

“one-stop-shop” to assist entrant black commercial 

farmers who had acquired land through the Land 

Reform Programme. However, the entity has taken 

on a new strategic direction and aligned its services 

with those of the Department of Agriculture and 

Rural Development (DARD). “We seek to promote, 

establish, facilitate and support the growth of blackowned 

and managed agricultural enterprises along 

agricultural value chains in KwaZulu-Natal through 

partnerships with individuals, communities, the 

private sector and other public sector institutions in 

order to achieve a transformed agribusiness sector,” 

Ndlela says. 

“There was a need to have a separate entity that 

would accelerate the provision of a comprehensive 

support package to black commercial farmers” says 

Ndlela. ADA has positioned itself to resuscitate as 

well as develop commercial agriculture and has 

been able to increase the value of farms owned 

by black commercial farmers, reduce the number 

of farms being repossessed as well as deal with the 

declining local economies of rural towns that relied 

on commercial agriculture. 

Ndlela notes, “It must be noted that we have 

reviewed our mandate and shifted our strategic 

focus to the entire value chain in agri-business. 

Our interventions have changed the agricultural 

landscape in the province. Providing funding to 

beneficiaries improved their agribusinesses and 

welfare and enabled them to gain access to markets 

through capacity building programmes. 

“The positive attitude and optimism among our 

beneficiaries towards farming is linked to the newly 

gained confidence in their skills (farming techniques, 

marketing, value addition, etc.) which they received 

from ADA,” says Ndlela. “We have turned around 

ailing farms including dairies, piggeries, grain 

farms, vegetable farms and livestock farms from 

zero production levels to where they are able to 

consistently supply the market.” 

The ADA has trained 1 726 individuals and 

created and/or sustained a total of 2 250 jobs during 

the construction of physical infrastructure, planting 

and harvesting seasons, all within the Enterprise and 

Value Chain Development Programme. 


32

1. VISION 

“A diverse, deracialised, prosperous, and sustainable agribusiness sector in KwaZulu-Natal.” 

2. MISSION 

The ADA strives to promote, establish, facilitate and support the growth of black owned and managed agricultural enterprises along 

agricultural value chains in KwaZulu-Natal through partnerships with individuals, communities, private sector and other public sector 

institutions in order to achieve a transformed agribusiness sector in the province. 

3. OUR VALUES 

Organisational values define the key principles and associated behaviours that are required by employees when executing the strategy and 

functions of the organisation and state what the beneficiaries and stakeholders can expect from the organisation. The values of the ADA are: 

• Integrity: We commit ourselves to ensuring that our purpose, practices and values are ethically sound, at all times 

• Accountability: We take accountability for all our actions in dealing with our Clients and Stakeholders and are mindful of possible 

consequences emanating from our decisions 

• Excellence: We commit to providing quality services and products to all our clients at all times consistent with the spirit of Batho-Pele 

• Innovation: We commit to strive for continuous improvements through innovation and promoting a learning organisational culture 

4. FOCUS ON OPERATION 

In keeping with the outcome of the alignment process between DARD and ADA, the Agency will concentrate on the following: 

• agribusiness development and in particular on agro-processing 

• on high impact and complex projects that will assist in unlocking public and private resources, as well as assistance in turning 

around declining industries 

• look at niche and new products that support import substitution and exports 

5. OUR PRODUCTS AND SERVICE OFFERINGS 

We have developed products and services according to four broad areas in supporting agribusiness development: 

Knowledge and Information Services – these include design and dissemination of agribusiness models, agribusiness training modules 

and business leadership development; 

Financial Resources Mobilisation – these include targeted development finance and investments; 

Agribusiness Facilitation Services – these include connecting agribusiness entrepreneurs to information, technological 

innovations and markets; 

Agribusiness Market Infrastructure Services – these include agribusiness capacity and systems development; as well as 

investments in infrastructure.

OVERVIEW 

Forestry and paper 

Diversification is a growing trend. 

Big forestry and paper companies have been preparing 

themselves for change for many years now. The computer 

age and digitalisation presented complicated challenges 

to paper manufacturers and companies. In response, Sappi 

and Mondi, global leaders in paper and packaging with strong roots 

in KwaZulu-Natal, have embraced diversification. 

Sappi has a strong emphasis on dissolving wood pulp and Mondi 

reports growing demand in its packaging divisions. Although Mondi 

closed one machine at its Durban plant in 2018, it will continue to 

make uncoated fine paper for the domestic market at the plant. 

Recent upgrades to Mondi’s woodyard at Richards Bay have made a 

big impact on efficiencies. The addition of an unbleached kraftliner 

product has expanded the company’s range. Three investments 

in eastern Europe will see the company’s saleable pulp and paper 

production go up by about 9% overall. 

Sappi makes paper at two mills in South Africa: the mill at Tugela 

makes 185 000 tons of speciality paper per annum. A big focus for 

the company is dissolving wood pulp, made at one site in America 

and two in South Africa. 

Dissolving wood pulp is sold as a raw material to converters 

around the world who produce from it a range of products such 

as textiles, cellophane wrap and pharmaceuticals. 


TWK is the latest agricultural 

company to list on a stock 

exchange. 

The giant Sappi Saiccor mill 50km 

south of Durban is the world's biggest 

manufacturer of dissolving 

wood pulp. The mill's capacity is 

800 000 tons, which makes it the 

biggest of its kind in the world. 

Sappi is actively looking into the 

new fields of bio-materials and 

bio-energy. 

Both company’s investments 

in the province are outlined in a 

special feature elsewhere in this 

publication. 

National production figures 

in the forestry sector declined 


34

manufacturing, auto identification, bar coding and labelling sectors. 

As such, we are proud to be the sole distributor in Southern Africa for many of the leading 

internationally-renowned brands in those sectors in which we operate, such as HP Indigo, 

Komori, Flint, Fujifilm, Argox, CipherLab, Datalogic and Brother. 

Kemtek pursues 

continual growth 

Kemtek keeps abreast of industry developments and potential 

new markets while offering the best solutions to customers. 

FOCUS 

And, with a focus always on providing highly skilled services and post-sales support, we’re 

ensuring our customers are maximising their potential for growth and profit - day in, day out! 

NATIONAL: 0861 KEMTEK • JHB: +27 (0)11 624 8000 • PTA: +27 (0)12 804 1410 

• DBN: +27 (0)31 700 9363 • CPT: +27 (0)21 521 9600 • PE: +27 (0)41 364 3690 

WWW.KEMTEK.CO.ZA 

J25589 

J25589_Kemtek_Propak_Advert_FA.indd 1 2019/02/14 16:12 

Targeted industry events and product demonstrations are proving highly popular with Kemtek 

customers and prospective customers alike. 

Long-established in the lithographic, 

flexographic, digital and large-format 

printing and packaging arenas, Kemtek has 

evolved over time into a multi-pronged 

organisation, entrusted with channel responsibility 

by many of the world’s leading brands in the 

barcoding and labelling sectors through widespread 

professional resellers, plus 3D printing, through its 

joint venture partner Rapid 3D. 

Aligning with internationally-acclaimed brands is 

one aspect of Kemtek's continued success, coupled 

with expert sales and service support, and an agile 

and specialised national distribution network, 

annually achieving some 15 000 deliveries. 

This fast-growing enterprise also represents 

specialist additive manufacturing equipment and 

materials providers in multiple sectors including 

aerospace, automotive, manufacturing, medical, 

dental and jewellery, with brands such as EOS, 

Envisiontec, MCor and Zortrax. 

Building on core strengths 

Creating value on a sustainable basis is Kemtek’s 

marketing approach that's based on a detailed 

understanding of markets and the needs of the 

end user. These needs are then married to the 

technologies provided by Kemtek's principal 

brands. Providing a winning edge for all Kemtek's 

customers means delivering the most advanced 

technological equipment and service, backed by a 

total commitment to service excellence. 

With digital printing firmly growing in Southern 

Africa, Kemtek and partner, HP Indigo, have recently 

expanded their labels and packaging portfolio 

with technology solutions to drive printing and 

converting toward more flexible, productive and 

profitable digital printing. 

Taking digital finishing to the next level is the 

ability to integrate the Indigo 6900 with an HP 

Indigo GEM digital embellishment unit – a onepass 

label printing and embellishment system for 

spot, tactile, foil, holograms, mini textures and 

lamination. 

In the packaging sector, Kemtek’s alliance with 

Flint Flexographic products goes from strength to 

strength. Flint has extended the range with nyloflex 

FTF-UV plates, designed for high-resistance to UVbased 

inks, and nyloflex FTP for paper packaging 

applications such as multiwall sacks and liquid 

dairy cartons. Another important development 

between Kemtek and Flint Group is a distribution 

agreement that allows Kemtek to supply the full 

range of ThermoflexX laser imaging systems in 

South Africa. 

For more information, visit www.kemtek.co.za. 

35 


OVERVIEW 

in 2017 for the third year in a row. Forestry SA reports that 

tonnage sales were nearly 2% down on the previous year, at 

15-million tons. Wattle showed the largest decrease while 

pulpwood was the only category to increase, but by less 

than 2%. The National Department of Agriculture, Forestry 

and Fisheries reports that South Africa has a shortage of 

sawn timber and anticipates further shortages in the future. 

Despite this overall trend in the national forestry picture, 

TWK has announced that it wants to buy 11 000 hectares of 

forest land to support its wood chip sales (especially to China 

and Japan) and timber exports. TWK is an agricultural company 

that grew out of the Transvaal Wattlegrowers Cooperative and 

which became the latest such company to be listed when it 

joined the ZAR X in 2017. 

The KwaZulu-Natal provincial government's strategy of creating 

Industrial Economic Hubs (IEHs) includes the development 

and expansion of wood processing in the Harry Gwala District 

Municipality. This is in the wooded south-western part of the 

province and includes the towns of Kokstad, Harding, Ixopo and 

Underberg. 

Nampak produces crêpe paper at Verulam and Rafalo produces 

tissue paper. SA Paper Mills is another paper producer. 

Mpact's upgrade of its Felixton mill has increased capacity 

and improved efficiency. The project cost R765-million and 

takes overall production up to 215 000 tons and a lightweight 

containerboard option has been included in the product lines. 

This is in response to market demand for lighter packaging. 

Mpact has plastics and paper operations, with the paper 

section divided into three divisions: paper manufacturing, 

corrugated and converted paper products and recycling. 

The Merensky Group operates one softwood sawmill and a 

panel-processing plant in Kokstad that is geared to manufacture 

according to customers’ needs in any sector. Export is done 

through the Port of Durban. 

NCT Forestry Co-op Limited is a key timber-marketing entity 

with more than 2 000 members and three wood-chipping mills. 


Forestry South Africa: www.forestry.co.za 

KwaZulu-Natal Department of Agriculture and Rural 

Development: www.kzndard.gov.za 

South African Institute of Forestry: www.saif.org.za 

Technical Association of the Pulp and Paper Industry of South 

Africa: www.tappsa.co.za 

R&B Timber Group has three 

pole treatment plants and is 

headquartered in Harding. 

Flaxton Timbers operates 

out of Ixopo and Natal Forest 

Products is in Richmond. 

Timber 

Timber plantations are 

found in five parts of the 

province: northern KwaZulu- 

Natal, Midlands, southern 

KwaZulu-Natal, Zululand and 

Maputaland. Close to half-amillion 

hectares – 38.5% of the 

land in South Africa devoted to 

forestry – is allocated to timber 

plantations. Of this area, 70% 

is devoted to hardwoods and 

the balance to pine, the only 

softwood grown in large 

quantities in South Africa. 

The percentage of privately 

owned forest land is 93.4%. 

Merensky has plantations in the 

Dargle forest while Sappi and 

Mondi have holdings across 

the province, and in other parts 

of South Africa. 

Management of the 251 

000 hectares of the plantation 

forest that Mondi has under 

management is done in line 

with sustainable forest management 

principles and the 

company is engaged in a partnership 

with the WWF to get 

different types of water users 

to work together in improving 

how water is used. Mondi has 

reduced its own consumption 

of fresh water by 12% in comparison 

to its use in 2015. 


36

PROFILE 

Sustainable growth 

Mondi is a global leader with a culture that delivers 

sustainable growth. 

Mondi is a global leader in packaging and 

paper, delighting its customers and 

consumers with innovative and sustainable 

packaging and paper solutions. 

Mondi is fully integrated across the packaging 

and paper value chain – from managing forests and 

producing pulp, paper and plastic films, to developing 

and manufacturing effective industrial and consumer 

packaging solutions. Sustainability is embedded in 

everything Mondi does. 

In 2018, Mondi had revenues of €7.48-billion and 

underlying EBITDA of €1.76-billion. 

Mondi globally is leading the response of the 

packaging and paper industry in developing 

sustainable solutions to address key environmental 

and social challenges. The group is taking a sciencebased 

approach and working with partners across 

the value chain to develop innovative sustainable 

solutions that are fit for a circular economy. By taking 

a holistic view, Mondi believes it can meet the needs 

of each customer, their products and the planet to 

contribute to a better world. 

Peter Oswald, Mondi Group CEO, commented: 

“As a global packaging and paper group, it is 

essential for our business, as well as the planet, 

to drive innovation and change throughout the 

value chain. We don’t see sustainability as a trend, 

it’s a requirement. Mondi’s unique offering of highperformance 

paper, plastic and hybrid solutions 

means that we can find the most sustainable fit for 

each application.” 

Mondi South Africa 

Our South African business sustainably manages 

some 250 000 hectares of plantation forests and 

manufactures and sells pulp, virgin containerboard 

and uncoated fine paper products. We have around 

1 500 employees working in our forestry operations 

and two mills located in Richards Bay and Merebank, 

Durban. 

Strategic advantages 

Our focus is on leveraging our strong domestic market 

position and the global competitiveness of our 

Richards Bay mill. With a history spanning more than 

50 years, we understand the value of being efficient, 

cost-competitive and customer-focused. 

Our passion for performance will always be central 

to the way we run our business and is demonstrated 

through a continuous focus on quality, productivity 

and efficiency. The fundamental principle behind 

operational excellence at Mondi is the desire to do 

more with less. 

We invest in and manage our business to ensure 

that our manufacturing operations maintain their 

cost advantage, that our forestry operations are 

managed sustainably for a secure timber supply, 

that we support our customers' success and invest in 

the development of our people and communities. 


FOCUS 

Developing innovative solutions 

for a circular economy 

Mondi is committed to best practice in forestry 

management and production. 

Mondi South Africa is at the forefront of sustainable 

business practices. “It’s exciting to be playing a 

lead role in Mondi’s sustainability story. There are 

so many areas we are proud of but three stand 

out for me. From the work we are doing to reduce our water 

impact, to managing water catchment areas and wetlands 

through our work with partners, to using significantly less 

water in our operations. Second is the progress we have 

made in becoming a diverse and inclusive workplace, where 

people can grow to their full potential and contribute to our 

success. And then of course our globally competitive operations 

that produce high-quality, fully-recyclable products 

from sustainably sourced fibre,” explains Viv McMenamin, 

CEO Mondi South Africa. 

Sustainable fibre 

The sustainable management of our forestry operations is 

key in managing our overall environmental impact, helping 

to protect ecosystems, and developing 

resilient landscapes. 

Wood is one of the primary raw materials 

and our staff work hard to provide the 

best assurance for our stakeholders that 

the wood and fibre we use comes from 

responsible sources. 

Plantation forests in South Africa are 

managed in a way that secures their longterm 

biological integrity, social value and 

productivity. 

Maintaining FSC certification of forests 

is also an important part of our management 

approach. It assures compliance with globally 

recognised standards for sustainable forest 

management. 

Water as a constrained resource 

Given the critical importance of water to business, 

to local communities and to other stakeholders, 

we strive to manage water use wisely 

and efficiently – especially in water-stressed 

regions. We are committed to reducing the 

specific contact water consumption of our 

pulp and paper mills by 5% by 2020, against 

a 2015 baseline. 

Drought conditions in South Africa 

remain a concern and we continue to look 

for opportunities to improve water security 

in the areas where we operate. The focus 

is on reducing water consumption, in 

particular at the Richards Bay mill. 


38

Biodiversity and ecosystems 

FOCUS 

WWF-Mondi Water Stewardship 

Programme 

Mondi promotes a landscape approach to freshwater 

stewardship. The focus of the long-standing WWF- 

Mondi Water Stewardship Programme (previously 

the WWF-Mondi Wetlands Programme) has grown 

from managing and rehabilitating wetlands with 

different groups of land-users (including Mondi) 

to catalysing water stewardship at the landscape 

scale, including ensuring collaboration and action by 

different land-users in the uMngeni and Mvoti River 

catchments, both of which are strategically important 

water-supply areas for KZN’s economic hubs. 

In 2014, following many years of collaboration, 

Mondi Group and WWF launched a global 

partnership to promote responsible forestry and a 

sustainable pulp and packaging sector. 

In 2017, this global partnership was extended for 

another three years and the WWF-Mondi Wetlands 

Programme was renamed the WWF-Mondi Water 

Stewardship Partnership, reflecting its broadening 

focus on catchment-based water stewardship. Water 

stewardship assessments were conducted for the 

Richards Bay mill and plantations in South Africa. This was 

measured against the international Alliance for Water 

Stewardship Standard, a globally-applicable framework 

for major water users to understand their water use 

and impacts. The outcomes are now being used to 

investigate meaningful, cost-effective improvements to 

management systems to meet the core requirements 

and to advance some of the requirements. 

In 2018, Mondi joined the WWF Climate Saver's 

Programme, WWF's global platform to engage 

businesses and industries on climate and energy. 

Responsible forest management involves increasing 

the long-term productivity and preserving ecosystem 

values in rural landscapes and protecting 

high conservation value areas such as wetlands. 

Degradation of ecosystems and loss of habitats 

and species has a significant negative effect on the 

ecosystems that both communities and business 

rely on. We are committed to protecting biodiversity 

and ecosystem services in our forestry operations. 

Maintaining an effective network of highconservation 

value areas and valuable habitats, 

and on imitating natural dynamics for key types of 

ecosystems where possible, is another focus. 

Eco-efficient products 

The investment to expand our product range by 

producing unbleached kraftliner in addition to 

white-top kraftliner at the Richards Bay mill has 

been welcomed by customers. Baywhite, Baycel 

and Baykraft products are certified for food 

packaging (ISEGA) and Mondi has adopted Good 

Manufacturing Practice (externally certified). 


FOCUS 

Inspiring Mondi people for 

long-term success 

Leading the way in transformation and enterprise development. 

has over 30 contractors as enrolled small businesses, 

with a focus on growing skills, management capability 

and improving their operational know-how. 

We are able to maintain a steady supply of highquality 

fibre from a network of small forest enterprises 

with on average 87 000 tonnes of the timber supplied 

to our Richards Bay mill coming from these suppliers. 

Mondi’s significant activities in a number 

of key areas reflect a strong commitment 

to transformation and B-BBEE. This 

is confirmed by Mondi’s Level One 

contributor status under the under the Forestry 

Sector Broad Based Economic Empowerment codes, 

as verified by an independent assessment. 

Enterprise development 

Mondi Zimele, established in 2007, is our small 

business development organisation. Its initial focus 

was on accelerating black economic empowerment 

in the forestry value chain. In 2012 the focus 

expanded to incorporate support for communitybased 

small businesses around Mondi’s operations. 

This was enabled through the establishment of the 

Mondi Zimele Jobs Fund, an enterprise development 

initiative co-funded by the Jobs Fund. 

Since 2012, Mondi Zimele has provided 

approximately R100-million in loan funding to assist 

over 200 local businesses in the creation of more than 

2 800 jobs. Mondi Zimele has also been instrumental in 

the establishment of several land claimant community 

contractors where we continue to emphasise 

productivity improvement, business administration 

and compliance as the key to success for these SMEs. 

The Mondi Zimele and Department of Trade and 

Industry (dti) Forestry Contractor Incubator Programme 

Land claims 

An innovative sale and leaseback model has 

been developed with a successful mechanism for 

settling claims with and supporting land-claimant 

communities. Following a successful land-claims 

process, communities have ownership of the land 

and associated rental revenues but also receive 

assistance to develop sustainable forestry enterprises 

and forestry-related skills. In this way communities 

immediately derive a rental income from their land 

but also develop the know-how to potentially farm 

timber for themselves into the future. Approaching 

land reform in this developmental and inclusive way 

means we are able to retain a sustainable source of 

wood supply into the future. 

Skills and people development 


40

FOCUS 

R8-BILLION INVESTMENT OVER FIVE YEARS 

At the President’s Investment Summit in 

2018, Viv McMenamin, CEO Mondi South 

Africa, announced, “We focus on investing 

in our world-class assets to maintain our 

cost advantage. Over the next five years we 

will be investing a total of around R8-billion 

in our South African operations, which 

includes ongoing investment in our forestry 

assets and the modernisation of our pulp, 

containerboard and paper assets, subject to 

approval by the Mondi boards.” 

the recently expanded Ligbron E-learning system is 

now operational in a further three rural schools. Each 

e-learning classroom has an e-Boxx with a SMART 

interactive whiteboard, a digital camera, sound system 

and alarm system. This technology facilitates the weekly 

live streaming of mathematics and science lessons that 

are shared by using video conferencing and desktop 

sharing. During live streaming, the image of the teachers/ 

learners from linked schools is visible on the SMART 

board. The SMART boards display the presentation and 

any student and teacher can write on the SMART board 

and ask questions from their own school. 

Mondi believes strongly that by working in 

partnerships with government, communities and NGOs 

we will be able to find sustainable land reform solutions. 

We believe that being part of the solution to global 

challenges will secure the long-term success of our 

business and the wellbeing of our communities and 

other stakeholders. 

www.mondigroup.com 

We invest significantly in skills and leadership development, 

offering talented individuals interesting careers as part of 

a global group. We are particularly proud of the progress 

women are making in Mondi South Africa, holding 

positions such as CFO, Procurement Director, Head of 

Mondi Zimele and as artisans, foresters, safety managers, 

nursery manager and in the fields of engineering, finance, 

human resources and more. 

Community development 

Our well-established approach is focused on investing 

in communities living on our land or near operations. 

A leading community development initiative is 

the Mkondo Development Project (Piet Retief), a 

pioneering public-private partnership focused on 

improving the living conditions of people in isolated 

villages on forestry land, and to find sustainable 

solutions to alleviate poverty and offering security 

of tenure. The pilot Jabulani Agri-village has been 

completed and eight other Agri-villages are in progress. 

The commitment to education is widespread and 

PART OF THE SOLUTION 

Viv McMenamin, CEO Mondi South Africa, adds: 

“Our South African business continues to be 

a strong contributor to Mondi’s success story. 

From our sustainably managed forests, to our 

world-class pulp and containerboard operation 

in Richards Bay, to being the number one office 

paper producer in South Africa. We believe in the 

value of being part of the solution to global and 

local sustainability challenges and I am proud 

of the work we are doing in partnership with 

our communities, government and other key 

stakeholders. This gives me great confidence in 

the future of Mondi South Africa!” 

41 


OVERVIEW 

Mining 

Second smelter to be activated at Isithebe foundry. 


Most of South Africa’s export 

coal passes through the 

Richards Bay Coal Terminal. 

Finnish company Metso will spend about R53-million on building 

a second furnace at its Isithebe foundry in the iLembe District 

Municipality. This is in response to increased demand for large 

crusher wear parts. The KwaZulu-Natal foundry is one of five 

foundries the company runs on four continents. 

The renovated foundry will be able to manufacture wear parts for 

the Nordberg® MP2500 cone crusher as well as for Metso and third-party 

primary gyratory wear parts. The first products from the new furnace 

are scheduled for May 2019. 

RBM mines the minerals sands of the northern KwaZulu-Natal coast 

and operates out of Richards Bay. The main products of the RBM mine are 

zircon, rutile, titania slag, titanium dioxide feedstock and high-purity iron. 

Tata Steel KZN's high-carbon ferrochrome plant at Richards Bay 

went into business rescue and then liquidation before being bought 

by Luxembourg-based Traxys Africa in the middle of 2016, after a court 

ruled in its favour. Traxys has chrome mines Mpumalanga and Limpopo 

provinces. Tata Steel did not have its own mines. 

The KZN Sands mineral sands operation comprises a central 

processing complex in Empangeni and the Fairbreeze Mine. Expenditure 

over several years (which started in 2016) is expected to rise to R5-billion 

as it expands. Tronox, which is listed on the New York Stock Exchange, 

is the major shareholder in KZN Sands. 

The development of a new titanium dioxide pigment plant was 

announced in 2017 by Nyanza Light Metals and its technology partner, 


Geological Sciences, University of KZN: www.geology.ukzn.ac.za 

Minerals Council South Africa: www.mineralscouncil.org.za 

National Department of Mineral Resources: www.dmr.gov.za 

Avertana of New Zealand. The use of 

stockpiled waste slag (from mines in 

Mpumalanga) sets this R4.5-billion 

project apart. Other products 

will include gypsum, aluminium 

sulphate and magnesium sulphate. 

Production was scheduled to begin 

in 2019. 

The Hillside aluminium smelter 

at Richards Bay run by South Africa 

Aluminium is now a 100% South32 

asset. Most of the product (highquality 

primary aluminium ingot) 

is exported but some liquid metal 

form is sent to Isizinda Aluminium 

which supplies Hulamin, a 

company that has had a rolling 

mill in Pietermaritzburg since 

1949. Hulamin is the only major 

aluminium rolling operator in the 

region and it makes rolled products 

and extrusions. 

Other processing facilities in 

the province include the steel 

plant owned by Arcelor Mittal in 

Newcastle and Safa Steel's metalcoating 

factory in Cato Manor. 

Some of the coalfields of the 

province have been revived. 

Petmin's Somkhele Anthracite Mine, 

north of Richards Bay, has one of 

the biggest reserves of open-pit 

anthracite in South Africa, with 

measured and indicated reserves 

of more than 51-million tons across 

its four areas. 


42

Engineering 

OVERVIEW 

Construction is booming north of Durban. 


Marine engineering is a 

provincial strength. 

Property company Tongaat Hulett Developments won Visionary 

Client of the Year at an engineering awards event in 2017, a 

recognition of how much construction is underway north of 

Durban on land that used to be covered in sugar cane. 

The South African construction sector is experiencing tough times, 

with more than one company going into business rescue in 2018, 

which could explain why the annual Cesa Aon Engineering Excellence 

Awards acknowledged the developer of eight large projects covering 

commercial, industrial, retail and residential. 

The other mega-project that has created a lot of work for engineers 

has been the multi-year Western Aqueduct project to bring fresh water 

to greater Durban. 

The Western Aqueduct Joint Venture comprising three companies, 

Knight Piésold Consulting, Naidu Consulting and Royal Haskoning DHV, 

acted as agents for eThekwini Water and Sanitation. Stefanutti Stocks 

Pipelines played a big role, and there were opportunities for excellence 

and innovations in areas such as break-pressure tanks which were 

designed by Royal Haskoning DHV and built by ICON Construction. 

Marine repair and engineering form a significant sector in the 

province, with established companies such as EBH South Africa offering 

comprehensive services at the ports of Durban and Richards Bay 

(pictured). Both ports are expanding (Durban is building a cruise liner 

terminal, for example) and will continue to attract engineers. 


Consulting Engineers South Africa: www.cesa.co.za 

Engineering Council of South Africa: www.ecsa.co.za 

South African Forum of Civil Engineering Contractors: 

www.safcec.org.za 

Southern African Institute for Industrial Engineering: 

www.saiie.co.za 

Dormac, which is headquartered 

in the Bayhead area of the Port of 

Durban, is best known for its marine 

engineering but it offers specialised 

services to the sugar industry and 

provides machinery for industrial 

giants like Toyota and Defy. 

All of the province's biggest 

industries require sophisticated 

engineering skills: aluminium 

smelters in Richards Bay and steel 

works in Newcastle, Richards Bay 

and Cato Ridge. There are also 

chemicals and plastics production 

plants, and large automotive works. 

The Transnet Engineering (TE) 

plant in the Port of Durban houses 

six business units and has 3 555 

employees. The Coach unit upgrades 

coaches and the Auxiliary 

business is the main supplier of 

rail wagon tarpaulins to Transnet 

Freight Rail. The Port Equipment 

Maintenance unit and units specialising 

in wheels and locomotive 

overhaul are other entities. There 

are a further six depots located 

around the province. 

The School of Engineering at the 

University of KwaZulu-Natal offers a 

variety of degree options, ranging 

from undergraduate qualifications 

to doctorates. The School offers 

eight areas of specialisation 

including Bioresources, Electronic 

and Computer Engineering, and 

Land Surveying. 

43 


OVERVIEW 

Oil and gas 

Italian company Eni has offshore 

prospecting rights. 

Eni, one of the world’s biggest energy companies, has an 

agreement with Sasol Petroleum International to explore for 

hydrocarbons off the coast of KwaZulu-Natal. The permit 

was granted in 2013 but moves to start operations in 2018 

attracted the attention of concerned environmentalists. Eni, which 

has headquarters in Rome and operates in 71 countries, has several 

projects off the coasts of Mozambique and Kenya. 

The regulator and promoter of oil and gas exploration in South 

Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas 

exploration rights in KwaZulu-Natal to NT Energy 

Africa, which has a partnership with the Central Energy Fund. These 

awards are for onshore exploration. The Petroleum Agency SA is an 

agency of the National Department of Energy. 

If a private partner can be found, a liquid natural gas (LNG) plant 

will produce 2 000MW on a site in Richards Bay. This forms part of 

national government's allocation of 3 126MW to natural gas in its 

medium-term energy policy to 2030. 

The National Department of Energy (DoE) decided in 2016 

that one of the first two gas-to-power plants to be constructed 

under the Independent Power Producer Procurement Programme 

would be allocated to Richards Bay. This has the potential to 

turn the Richards Bay Industrial Development Zone (RBIDZ) into 

an energy hub. The fact that neighbouring Mozambique has 

significant offshore deposits is a factor in this ambition. To produce 

its allocation of 2 000MW, the plant would have to use a million 

tons a year of liquid natural gas (LNG). 


National Energy Regulator of South Africa: www.nersa.org.za 

Petroleum Agency SA: www.petroleumagencysa.com 

South African National Energy Association: www.sanea.org.za 

South African Petroleum Industry Association: www.sapia.co.za 


A liquid natural gas plant is 

planned for Richards Bay. 

A new unit within the National 

Department of Trade and Industry 

(dti) is focussed on importing LNG, 

particularly from Mozambique and 

Botswana. Local demand for LNG is 

expected to increase to more than 

10-million tons per annum. 

Getting fuel to the province 

of Gauteng is the key mission of 

the new multi-purpose pipeline 

(NMPP) which started delivering 

fluids in 2012. Refined products 

such as jet fuel, sulphur diesel 

and both kinds of octane petrol 

are carried. The infrastructure of 

Transnet Pipelines is said to reduce 

the number of fuel tankers on 

South African roads by about 60%. 

KwaZulu-Natal is home to two 

major oil refineries and is the first 

link in the pipeline chain that links 

Gauteng province, the industrial 

heartland of South Africa, with 

vital fuels. The Port of Durban 

handles 80% of South Africa's fuel 

imports. KwaZulu-Natal is thus a 

key player in the country’s oil and 

gas industry. 


44

OVERVIEW 

Construction and property 

Infrastructure and multi-use developments are forging ahead. 


Development on the N3 is 

underway. 

Job losses and business rescues were recurring themes in 

the South African construction sector in 2017 and 2018. The 

announcement in late 2018 that work on the R4.3-billion Oceans 

Umhlanga project had been halted confirmed that KwaZulu- 

Natal was not immune to these trends, but indications were that work 

on the residential, hotel and retail mall development will resume in 2019. 

A number of other large projects in the province are bucking the 

national trend. According to the organisers of the KZN Construction 

Expo, which was held in February 2019, infrastructure will attract more 

than R200-billion over seven years and R35-billion will be spent over 

15 years at the Port Waterfront development. 

The King Shaka International Airport and associated Dube TradePort 

are also attracting property investments. Two new industrial parks are 

being developed: Cornubia is part of a larger project near Umhlanga 

and Clairwood in Durban South will offer more than 300 000m² of 

A-grade industrial space. 

Tongaat Hulett has for several years been rolling out a series of 

developments on land it owns north of Durban, but in 2018 it launched 

the nTshongweni Urban Development on either side of the busy N3 

highway west of the city. Land use will be housing, light industry and 

logistics with a private developer, Fundamentum Asset Management, 

committed to building a shopping mall in the central business district. 

The website of Tongaat Hulett Developments (THD) lists 16 

completed projects, including La Lucia Ridge and the Zimbali Coastal 


Construction Industry Development Board: www.cidb.org.za 

Master Builders Association KwaZulu-Natal: 

www.mba-kzn.co.za 

SA Estate Agency Affairs Board: www.eaab.org.za 

SA Institute of Valuers: www.saiv.org.za 

Resort. Some current projects are 

massive in scale. Cornubia covers 

1 300 hectares about 7km from 

the airport and encompasses 

industrial, commercial, residential 

sections. 

The Sibaya Casino and 

Entertainment World is located 

within the Sibaya Coastal Precinct 

which THD is building as seven 

distinct nodes along 1 000 hectares 

of coast. Bridge City (pictured) is one 

of the most ambitious projects: 

a joint venture between the 

eThekwini Municipality and Tongaat 

Hulett, it is a presidential project that 

combines industrial, commercial, 

retail and residential opportunities 

located between Pinetown and 

Umhlanga Ridge. 

KwaZulu-Natal has a number of 

brick companies and four cement 

factories. Three of these are run by 

NPC-Cimpor (at Simuma, Durban 

and Newcastle), and the company 

has a further six sites for concrete 

and two for aggregate. Lafarge has 

a large depot and cement clinkergrinding 

operation in Richards Bay, 

six aggregate quarries and eight 

Readymix plants around the province. 

The Supreme Award for 

Excellence in Construction 

(Master Builders KwaZulu-Natal) 

was awarded in 2018 to WBHO 

Construction for the Absa Regional 

Office KwaZulu-Natal. 


48

Water 

OVERVIEW 

South Africa’s first mobile desalination plant has been installed. 


Durban wastewater is to get 

new technology. 

Richards Bay has installed a 10-container desalination plant 

next to the municipal water treatment plant at Alkanstrand. 

The first mobile sea water purification unit in South Africa, it 

comprises 10 containers and is located adjacent to the water 

treatment plant at Alkantstrand. It can deliver 10 megalitres of drinking 

water. However, the high cost of electricity means that the unit is used 

sparingly. Solar energy is being investigated as a possible alternative. 

In 2018 JG Afrika delivered a R72-million desalination plant (pictured) 

to South32's Hillside aluminium smelter in the same town. 

New technology has been installed at the Verulam Wastewater 

Treatment Works of the eThekwini Municipality. Murray & Roberts Water 

and its European technology partner, Organica Water, has installed 

an environmentally-friendly system that uses 30% less energy and 

produces 30% less sludge. 

The area north of the Durban central business district is one of the 

fastest-growing urban areas in South Africa, with a number of large 

office and accommodation projects going ahead simultaneously. This 

is a welcome development for the economy, but the new buildings 

also create pressure on infrastructure. 

The multi-year, R250-million Northern Aqueduct Augmentation 

project was initiated in 2014 and the fifth phase of the project has 

recently begun. This will provide water for Durban North, Umhlanga, 

Newlands, KwaMashu, Phoenix and Cornubia. 


Mhlathuze Water: www.mhlathuze.co.za 

National Department of Water and Sanitation: www.dwa.gov.za 

Umgeni Water: www.umgeni.co.za 

Water Research Commission: www.wrc.org.za 

One of the many challenges faced 

by the South African water sector 

is a shortage of engineers. A study 

jointly commissioned by the Water 

Research Commission and the 

South African Local Government 

Association (SALGA) found that the 

country's four-in-a-million ratio of 

engineers is a long way from the 

required 50-per-million. 

Umgeni Water currently supplies 

more than 400m³ of potable water 

to its six large municipal customers: 

eThekwini Metropolitan Municipality, 

iLembe District Municipality, Sisonke 

District Municipality, Umgungundlovu 

District Municipality, Ugu District 

Municipality and Msunduzi Local 

Municipality. The company has five 

dams, 10 waterworks, five watertreatment 

plants and two wastewater 

works. 

Large parts of the northern part of 

the province are served by Mhlathuze 

Water. The utility has assets valued at 

more than R3-billion and its area of 

supply covers 37 000m². 

Nedbank is putting R9-million 

over five years into clearing alien 

vegetation in the country's watercatchment 

areas, including in 

KwaZulu-Natal. The Nedbank 

sponsorship of the WWF's Water 

Balance Programme has seen water 

flowing more freely in the Umgeni 

catchment area. 


OVERVIEW 

Manufacturing 

The Blue and Green economies hold potential for KZN manufacturers. 


ArcelorMittal SA turned a 

profit for the first time since 

2010. 

• Africa Bespoke Apparel has 

opened in Verulam. 

The manufacturing sector contributes 17.7% to the provincial 

Gross Domestic Product (GDP) of KwaZulu-Natal. The 

strongest export sectors are base metals (32% including 

aluminium), mineral products such as ores, vehicles and 

chemical products. 

New opportunities in the Blue economy (ship-building and 

maintenance, oil rig repair and servicing) and the Green economy (solar 

panel manufacture, solar, biogas and wind energy plant construction, 

management and maintenance, heating and cooling devices) are set 

to grow in KwaZulu-Natal with the allocation of geographical hubs to 

support these sectors, and the introduction of policies and incentives 

designed to make them competitive. 

The Richards Bay Industrial Development Zone has been identified as 

an area that can attract investment in both of these sectors while the Port 

of Durban already has a strong boat-building and maintenance sector. 

The nine-tug contract put out by Transnet National Ports Authority 

(TNPA) is worth R1.4-billion and was won by Durban-based Southern 

African Shipyards in Durban. Most of the tugs have been built and sent 

to ports around the country. 

iLembe District Municipality is intended as the renewable energy 

hub of the province, with renewable energy components manufacturing 

as a key subsector. 

The first beneficiary of national government’s black industrialist 

support programme was revealed in January 2019 when Africa Bespoke 

Apparel launched its R81-million factory (pictured) in Verulam. Various 

interventions in the textile, footwear and clothing sector have helped 

to revive the industry. 

The footwear sector in particular is showing good recovery after 

taking a battering from Chinese imports. The purchase of 39% of 

Eddels Shoes by management and 

staff has paid off, with 385 staff 

employed in making 2 700 leather 

shoes every day. Two international 

safety footwear firms operate out 

of Pinetown: Bata Industrial and 

Beier. The latter company has joined 

forces with three other South African 

safety footwear manufacturers to 

form the BBF Safety Group. 

Shanghai, with which 

KwaZulu-Natal has signed a 

memorandum of understanding, 

has agreed to run an exchange 

programme focussing on 

clothing and textiles. 

Canvas and Tent Manufacturing 

(Pty) Ltd has more than 400 

employees in Ladysmith. There 

are 219 clothing companies in the 

province (Coface). Ninian & Lester 

has about 1 500 employees. 

Carpet manufacturers Belgotex 

Floorcoverings and Ulster Carpets 

have facilities in Pietermaritzburg 

and Durban respectively. Home 

appliance manufacturer Defy, which 

is part of the Turkish group Arçelik, 

employs about 2 600 people. Böhler 

Uddeholm in Pinetown produces 

tooling materials and welding 

consumables. 


50

OVERVIEW 

Chemical assets 

Two large oil refineries and a sophisticated sugar milling and refining 

industry underpin provincial chemical manufacturing. The chemicals 

and petrochemicals subsector makes up 17% of the manufacturing 

output of KwaZulu-Natal, with industrial chemicals accounting for 

nearly a third. Steel and aluminium are other heavy manufacturing 

products. The automotive industry is covered in a separate article. 

Newcastle is a chemical manufacturing hub. The big steel works 

of ArcelorMittal SA produce by-products such as ammonium sulphate, 

and large companies such as Karbochem, Bayer, African Amines and 

SA Calcium Carbide also operate in the area. ArcelorMittal SA turned a 

profit in 2018 for the first time since 2010, based on increased demand 

from other parts of Africa. 

To take advantage of the existing strengths of cities and districts 

in the province, a network of Industrial Economic Hubs (IEHs) is being 

developed in KwaZulu-Natal. Leading the process is the Department 

of Economic Development, Tourism & Environmental Affairs (DEDTEA). 

A Halaal Manufacturing Park is being considered by DEDTEA, 

finance institution Ithala, the South African National Halaal Authority 

and business leaders. 

Hulamin is a leader in aluminium finished products. The company 

makes rolled products at Edendale, Pietermaritzburg and Camps Drift 

while its Pietermaritzburg facility for making extrusions is one of the 

three in the country. 

The group headquarters of Africa’s biggest pharmaceutical 

manufacturer, Aspen, are in La Lucia Ridge. German chemicals group 

Lanxess has built a carbon dioxide concentration unit at its existing 

plant in Newcastle. The company makes tanning raw materials at 

Merebank in Durban and rubber chemicals in Isithebe north of Durban. 

AECI has a big presence in the province under the Chemical Services 


Aluminium Federation of South Africa: www.afsa.org.za 

Chemical and Allied Industries’ Association: www.caia.co.za 

Enterprise iLembe: www.enterpriseilembe.org.za 

Manufacturing Circle: www. manufacturingcircle.co.za 

Plastics SA: www.plasticsinfo.co.za 

banner. Chemical Initiatives runs 

an elemental-nutrient sulphur 

plant in Umbogintwini. SA Paper 

Chemicals operates a big plant 

at Isithebe. Protea Chemicals, 

has a large manufacturing plant 

at Mobeni. 

Sappi Saiccor's Umkomaas 

plant is the biggest producer 

of specialised cellulose in the 

world with production edging 

upwards every year towards 

full capacity of 800 000 tons 

per annum. Illovo Sugar 

manufactures downstream 

products such as furfural (used 

in lubrication oil), furfuryl 

alcohol, diacetyl (a flavouring 

in margarine) and ethyl alcohol. 

Kynoch makes fertilizer at 

plants in Durban and Richards 

Bay. Foskor's acid division 

manufactures sulphuric acid, 

phosphoric acid and granular 

fertilizer in Richards Bay. 

ChemSpec makes paint at 

Canelands. 

KwaZulu-Natal produces 

nearly a third of South Africa’s 

plastic requirements. Nampak 

has several packaging facilities 

in the province and MPact’s 

Pinetown facility specialises 

in FMCG containers. Macbean 

Beier Plastics and PCI also 

operate out of Pinetown. 

Packaging and paper 

group Mondi’s Richards Bay 

mill and its paper plant at 

Merebank are among the 

province’s most significant 

manufacturing sites. 


CREDIT BELL EQUIPMENT 

OVERVIEW 

Quality throughout 

Automotive 

Mahindra bakkies are being assembled at the Dube TradePort. 

In 2018 AIH Logistics started assembling Mahindra and Bolero 


bakkies With an from annual kits capacity imported of 60 000 from units India per year on a and site their at position the Dube as a globally respected extra heavy 

TradePort. duty truck The design 5 000m² and manufacturing plant is owned company, by Automotive KAMAZ relies Investment on strong strategic • The partnerships Bag Ladies with have a 

Holdings premium (AIH), original which component formed manufacturers AIH Logistics to specifically ensure quality, to deal and with the ongoing success new home of their on vehicles. the site of 

the Mahindra contract. 

a tow bar manufacturer. 

The air-suspended seats and cabs create industry-leading comfort that drives productivity, safety and 

The ensures intention driver satisfaction. is to make 2 500 bakkies per year, with an option 

to expand production to 4 000 and to increase sales of bakkies in 

the South Well matched African engines market. and The drivetrains company bolster sold performance 4 650 bakkies and in the 2018, ability to Richards deliver results Bay while facility stronger of heavyequipment 

manufacturer Bell 

about 

fabricated 

half of its 

structures 

vehicle 

promote 

sales in 

durability. 

South Africa. 

Brink Towing Systems is not just supporting a local SMME, it Equipment, upwards of 11 000 

is hosting one in its Pietermaritzburg factory. Brink has recently people are employed. Both 

increased annual capacity to 100 000 units which will mean more companies are market leaders. 

work 

Industry 

for The Bag Ladies, who 

leading 

produce protective 

components 

bags for the tow Bell is in the process of 

bars. The Bag Ladies previously repaired clothing and did some bag transferring production of its 

making, but with their own premises within the Brink facility (and current truck range to its factory 

advice on business management and the purchase of industrialstrength 

sewing machines), they can now set their sights higher. in size to accommodate the 

in Germany, which will double 

Brink’s largest customer is the Ford Ranger. 

growing demand for trucks in 

The Mathe Group’s tyre recycling plant at Hammarsdale has Europe and America. The shift 

quickly increased capacity to 150 000 used truck tyres per year and will not affect employment 

Over 2 million engines built Inter-wheel and inter-axle Durable ZF gearboxes deal with Air-conditioned ergonomic 

intends prove going strength past and reliability. 200 000 differential soon. A lock quarter for increased of the harsh rubber environments. crumb levels cabs at with the air-suspended Richards seats Bay 

product goes to Van Dyck Floors. 

traction. 

Other applications include modified site 

for 

because 

operator comfort. 

Bell will start 

bitumen and as a component of artificial grass. 

assembling Kamaz heavy-duty 

www.bellequipment.com l 3 

Toyota South Africa and Bell Equipment are manufacturing giants. trucks in 2019 for the African 

Between the Toyota plant at Prospecton south of Durban and the market. Kamaz (pictured), a 


52

OVERVIEW 

Russian brand that has won 14 Dakar rallies, is known for its reliability 

in tough conditions. Bell’s intention is to increase the percentage 

of local components over time. 

Bell is best known for its heavy equipment which is primarily 

used in the mining and construction sectors. The listed company 

reported a 6% rise in revenue for the six months to June 2018, an 

amount of R3.7-billion. 

Toyota recently invested a further R6.1-billion into its already 

very large plant at Prospecton. The company regularly sells about 

a quarter of the vehicles sold in South Africa, and accounts for 

the same proportion of export volumes. The Corolla car, the Hilux 

bakkie and the Fortuner SUV are manufactured at the plant. 

Powerstar, a Chinese state-owned brand, assembles trucks 

in Pietermaritzburg on a site formerly used by Super Group. 

The companies that make Powerstar in Asia are the China North 

Vehicle Corporation (Norinco Motors) and BEIBEN, who produce 

about 60 000 heavy-duty commercial duty vehicles every year 

at their plant in Inner Mongolia. 

Automotive components 

KwaZulu-Natal has a substantial and varied automotive components 

sector which includes large manufacturers such as Apollo Tyres and 

GUD Filters. Thirty-nine companies are currently members of the 

Durban Automotive Cluster which is funded by the municipality. 

Together, these firms have about 17 000 employees. 

In line with the policy of developing Industrial Economic Hubs, 

the Durban Automotive Supplier Park is being built at Illovo, south 

of Durban and near to the Toyota plant. The Dube TradePort 

Corporation will manage the project, which covers 1 013ha. Other 

partners are the eThekwini Municipality, Toyota and the provincial 

government. The aim is to attract car assembly and component 

manufacturing companies. 

Trade and Investment KwaZulu-Natal (TIKZN) estimates that 

the province's component automotive manufacturers enjoy a 

combined turnover approaching R10-billion. 


Automotive Industry Development Centre: www.aidc.co.za 

Africa (NAAMSA): www.naamsa.co.za 

Durban Automotive Cluster: www.dbnautocluster.org.za 

Manufacturers (NAACAM): www.naacam.co.za 

National Association of Automotive Component and Allied 

National Association of Automobile Manufacturers of South 

Keeping MAN and Toyota supplied 

is the R300-million operation, 

Duys Engineering Group. 

This diverse group of companies 

includes in its business plan the 

supply of truck bodies and truck 

components and has production 

plants at New Germany 

(Pinetown) and Richards Bay, 

from where it services the mining 

industry. Toyota Boshoku 

manufactures seats and does 

the interior trim on contract for 

Toyota. 

International company GUD 

Filters has a big presence in 

the province. Headquartered in 

Prospecton, where more than 

1 500 people work at one of 

its factories, the company has 

another plant in Pietermaritzburg 

and a distribution centre in 

Pinetown that concentrates on 

exports. 

Indian-owned Apollo Tyres SA 

makes Dunlop products at two 

large factories in the province: 

truck tyres are made in Durban 

where 840 workers are employed 

and a passenger car tyre plant in 

Ladysmith (1160 employees). The 

Durban factory devotes 40% of 

production to supplying the truck 

and earthmoving market. Both 

plants make about 25 000 tons of 

tyres with half of the passenger 

tyres being exported. 

The Behr Group (airconditioning 

and cooling systems) 

has a factory and its headquarters 

in Durban. Ramsay Engineering 

supplies cross-car beams for BMW 

and Ford. Funding was received 

from the Industrial Development 

Corporation (IDC) to buy new 

tool-making technology to make 

this possible. 

53 


OVERVIEW 

ICT 

Port Shepstone has a new incubator. 


Dube iConnect is an accredited 

service provider. 

A 

SmartXchange SMME Incubator has been launched in Port 

Shepstone on the South Coast. The concept of ICT has been 

expanded to include media and electronics, so the hub is 

called an MICTe Incubator. 

The province’s SmartXchange is an example of a successful publicprivate 

partnership that supports businesses in the information 

technology and communications sector. Incubation strategies for startups 

and skills development (including links to educational institutions) 

are important parts of the organisation’s brief. After the successful 

launch of the first such incubator outside Durban in the Ray Nkonyeni 

Local Municipality, there are now plans to establish three more, at 

Newcastle, Richards Bay and Pietermaritzburg. 

Spending on information and communications technology (ICT) 

has been steadily increasing in the private and public sectors in recent 

years in KwaZulu-Natal. 

The eThekwini Metropolitan Municipality, which administers 

Durban, has actively been promoting ICT since the launch of its 

MetroConnect programme in 2008. A key component of the strategy 

has been the sale at hugely discounted rates of spare capacity on the 

municipal fibre network. 

The Dube TradePort (pictured) has spent more than R100-million on 

ICT infrastructure that includes two data centres. Dube iConnect has 

a licence from the Independent Communications Authority of South 

Africa to be a service provider. An advanced metro Ethernet network 

connects businesses within the precinct and surrounding areas with 

one another and with the world. 


Dube TradePort: www.dubetradeport.co.za 

Information Technology Association of South Africa: 

www.ita.org.za 

SmartExchange: www.smartxchange.co.za 

South African Vanguard of Technology: www.savant.co.za 

KwaZulu-Natal has an established 

skills base in microprocessors and 

radio-based systems and a strong 

manufacturing base. 

Some companies within the 

domestic sector specialise in supporting 

specific systems. In the case of 

Pinetown-based RN Software, support 

is provided for Syspro, an enterprise 

resource software (ERP) system most 

commonly applied to manufacturing 

and logistics to enhance performance 

and control costs. 

South African Vanguard 

of Technology (Savant) is a 

Department of Trade and Industry 

(dti) programme. It is the marketing 

and awareness programme for the 

South African ICT and electronics 

sector. The aim is to develop South 

African exports and to attract foreign 

investment. 

The State Information Technology 

Agency (SITA) is a state-owned 

enterprise that provides ICT services 

to government and leads projects 

in the sector. 

Sentech is the state agency that 

provides broadband infrastructure 

and signals for the country's 

broadcasters. Internet connectivity 

is provided to government 

departments, municipalities and 

other institutions through a VSAT 

service. 


54

Education and training 

University research is linked to development issues. 

OVERVIEW 

The reputation of the University of KwaZulu-Natal (UKZN) as a 

leading research institution was enhanced in 2018 with the 

opening of a Chemistry Postgraduate Research Facility at the 

School of Chemistry and Physics in Pietermaritzburg. 

The university aims to align its research programme with important 

areas of development such as food security, health, liveable cities and 

climate change. The R30-million facility was funded mainly by the 

National Department of Higher Education and Training (DHET). UKZN 

also hosts the National Research Foundation. 

There are two universities and two universities of technology in 

KwaZulu-Natal, and the national distance university, the University of 

South Africa (Unisa), has a presence in five locations. USB Executive 

Development offers business courses for executives. 

The Durban University of Technology (DUT) has six faculties 

operating in seven campuses in Durban and in the Midlands. DUT is 

well known for its outstanding graphic-design school and offers one 

of only two chiropractic programmes in South Africa. 

The University of Zululand offers diploma and degree courses on 

two campuses at Empangeni and Richards Bay. 

The unbundling from the successful Curro group of a separate 

tertiary entity which listed on the JSE as Stadio Holdings is a good 

indicator of the growth of the private sector in education. Stadio 

currently has three institutions: Southern Business School, AFDA (the 

School for the Creative Economy) and the Embury Institute for Higher 

Education which has recently opened a campus in Musgrave, Durban. 

There are six Curro schools in KwaZulu-Natal. 

Advtech, the other big private company, has 27 tertiary campuses 

nationally, in addition to its 78 schools operating under a variety of 

labels. Advtech operates 10 educational sites in KwaZulu-Natal. 

The Provincial Government of KwaZulu-Natal, through the national 

Expanded Public Works Programme (EPWP) and other job creation 

programmes has committed to providing training to marginalised 


Independent Schools Association of Southern Africa: 

www.isasa.org 

KwaZulu-Natal Department of Education: 

www.kzneducation.gov.za 

National Research Foundation: www.nrf.ac.za 


Training is part of the Expanded 

Public Works Programme. 

communities to help people 

become more employable. In 

2018, more than 41 000 full-time 

equivalent jobs and 166 000 work 

opportunities were offered, and 

this is set to increase. 

Technical and Vocational 

Education and Training (TVET) 

Colleges are tasked with bridging 

the skills gap. TVET colleges are 

concentrating on 13 trade areas, 

including bricklayers, millwrights, 

boilermakers and riggers. KwaZulu- 

Natal has nine such colleges with 

a total enrolment of about 80 000. 

R16.5-billion has been allocated 

by national government to skills 

development and infrastructure 

over the medium term. 

Coastal KZN TVET College gives 

students practical experience 

through facilities such as the 

Nongalo Industrial Park, where 

school furniture is repaired, and 

burglar bars and computer tables 

are made. The college has several 

sites on the South Coast and caters 

for 15 400 students. 

Majuba TVET College focuses 

on engineering as the coal and 

steel industries are prominent in 

Newcastle. The Mnambithi TVET 

College is located in the Battlefields 

Route tourism area and offers 

National Diploma courses in tourism, 

among other qualifications. 

55 


OVERVIEW 

Banking and financial services 

New banks are changing the face of the sector. 

When Capitec was granted a banking licence in 1999, it was 

a rare event. Since 2017, a number of new entrants have 

started to change the face of South African banking. 

Tyme, or Take Your Money Everywhere, was granted 

a licence in 2017. 

Other prospective new banks are state-related enterprises: Ithala, 

Postbank and a Human Settlements Development Bank. The Ithala 

Development Finance Corporation has functioned for many years in 

the province as the provider of funds for small enterprises, especially 

in areas where infrastructure is poor and access to traditional banking 

services is not good. The provincial government, which runs Ithala, 

wants to launch it as a bank. 

Three state entities are merging to create the new Human 

Settlements Development Bank: the National Housing Finance 

Corporation, the Housing Loan Fund and the National Urban 

Reconstruction and Housing Agency. 

The focus will be on financing housing for poorer households and 

for large state-funded housing projects. Part of the drive is to integrate 

cities better and to combat the legacy of the spatial divide that apartheid 

left behind. Private sector investment will be sought. 

The Chartered Institute of Government Finance, Audit and Risk Officers 


Association for Savings and Investment South Africa: 

www.asisa.org.za 

Chartered Institute of Government Finance, Audit and Risk 

Officers: www.cigfaro.co.za 

Financial Sector Conduct Authority: www.fsca.co.za 

Insurance Institute of South Africa (KwaZulu-Natal): 

www.iikzn.co.za 

South African Institute for Chartered Accountants: 

www.saica.co.za 


Cigfaro's annual conference is 

in Durban in 2019. 

(Cigfaro) advises institutions, trains 

its members in public finance 

and promotes the interests of 

professionals in the public sector. 

It also develops and assesses 

qualifications and advises tertiary 

institutions on the requirements for 

course. Cigfaro also runs Public Sector 

Audit and Risk training sessions and 

the national conference will be held 

in Durban in October 2019. 

The South African Institute for 

Chartered Accountants International 

will provide training in KwaZulu- 

Natal (Umhlanga) in financial 

reporting standards for SMMEs 

while the the Insurance Institute of 

KwaZulu-Natal (IISA) holds regular 

education workshops. One such 

meeting, a legislative workshop, is 

jointly hosted by IISA, the Financial 

Sector Conduct Authority and the 

South African Institute for Chartered 

Accountants. The institute’s 

mentorship programme is run in 

association with the Musifunde 

Training Centre. 


56

Development finance and 

SMME support 

OVERVIEW 

Support is available for entrepreneurs. 

A 

small business can become a substantial business quite 

quickly with the right support. Programmes such as the Black 

Umbrellas offer different levels of support, from early advice 

about business plans through office support to mentoring. 

Civtech Engineers, a Richards Bay consultancy, has grown its 

revenue and staffing levels as a result of being on the full incubation 

programme of Black Umbrellas. 

Agriculture is the focus of a wide-ranging initiative in the Ulundi 

district. A grouping called ULUMA has been formed which aims to help 

farmers, SMMEs and co-operatives to benefit in a holistic way from the 

produce they farm. The Zululand District Farmers Association, several 

other NGOs and Standard Bank are working together with the likes of 

Mangosuthu University of Technology (MUT) and the Innovation and 

Technology Business Incubator (Invotech) to expose farmers to new 

issues and techniques. 

Operation Vula is a provincial government initiative to ensure 

that co-operatives and small businesses get a leg-up into the formal 

economy through state-led infrastructure programmes that assist 

them, and through procurement policies that favour them. 

The Coastal KZN TVET College has been training members of cooperatives 

and people working in small, medium and micro-enterprises 

(SMMEs) in the skills that will help them do well in business. 

The Small Enterprise Development Agency (Seda) is active in 

supporting entrepreneurs. Seda gives non-financial support through 

training, assistance with filling in forms, marketing and creating 

business plans. 

In KwaZulu-Natal, Seda runs 12 Incubators which either help new 

businesses get started or with the rehabilitation of existing enterprises. 


KwaZulu-Natal Department of Economic Development and 

Tourism: www.kznedtea.gov.za 

National Department of Small Business Development: 

www.dsbd.gov.za 

Small Enterprise Development Agency: www.seda.co.za 

Small Enterprise Finance Agency: www.sefa.org.za 


The Coastal KZN TVET College 

offers business skills training. 

Three models are used: Technology 

Demonstration Centres (demonstration 

and training); Technology 

Incubators (where the focus is rehabilitation); 

and Hybrid Centres, 

which combine elements of the 

other two models. The KwaZulu- 

Natal incubators include ICT and 

construction (three centres each), 

furniture and hi-tech (two each), 

chemicals and essential oils. 

The IDC provides finance across 

a range of sectors from agriculture 

to tourism. It has holdings in several 

companies with a presence in 

KwaZulu-Natal: 42.6% in Hans 

Merensky (Pty) Ltd, a plantation 

and timber mill operator; 100% 

in Prilla 2000, a cotton-milling 

operation; and 85% in Foskor, 

which has a phosphoric acid plant 

in Richards Bay. 

All of the major banks have 

SMME offerings. Nedbank has an 

enterprise-development product 

that supports businesses with a 

turnover up to R35-million with at 

least 25% black ownership. 

Toyota South Africa Motors is 

funding the newly created Toyota 

Empowerment Trust (TET) to the 

tune of R42-million. 


INTERVIEW 

Selfmed Medical Scheme 

Christo Becker, the Principal Officer at Selfmed Medical Scheme, 

outlines the advantages of a self-administered scheme. 

Christo Becker 

BIOGRAPHY 

Christo started his 21-year 

career in healthcare as a 

paramedic in Fire and Disaster 

Management Services. In 2001 

he completed an MBA with the 

intention of moving his career 

towards hospital management. 

He has worked as hospital 

manager in several private 

facilities. His passion for people 

and strategy has ensured that the 

hospitals he has managed have 

grown rapidly while focusing 

on sustainability. With selfmotivation 

and a commitment to 

continual improvement, Christo 

implements positive changemanagement. 

How did Selfmed begin and how has it evolved? 

The Scheme initially formed part of the Sanlam Life Insurance stable, created 

in 1965 and formally registered in 1972. This makes Selfmed one of the most 

experienced medical aid schemes in the industry. At Selfmed we have a handson 

approach, and this resulted in our taking control of our own Client Services 

Centre, or Excellence Centre in 2006. We thereafter progressed to taking over 

the full administration function in 2010; also recently bringing our Managed 

Healthcare inhouse. 

What is your market? 

Historically membership comprised individuals and their families. The introduction 

of the Selfnet options in 2015 and 2016 allowed us to reach a younger 

audience. This was also the opportunity to branch out into corporate marketing, 

offering membership to blue-collar employees. We have seen great success in 

this area. 

Is there flexibility for clients? 

The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med 

XXI, and Selfnet and Selfnet Essential. Each product is designed specifically for 

a life stage, as the needs of a member changes. As the person advances in life 

and starts a family they will move towards the Med XXI or Selfsure options, for 

example, which have a wider range of benefits relevant to a young family. 

How is Selfmed handling ever-rising costs? 

The biggest challenge facing the healthcare industry is the significant rise in 

healthcare costs, with healthcare inflation exceeding general inflation. This 

compels us to proactively introduce mechanisms to manage these costs. Selfmed 

is applying machine learning to the claims database to draw a more accurate 

picture of a member’s specific needs. The information can then be used to 

engage members on an individual basis – if we can intervene early it is to the 

benefit of all parties. 

How does Selfmed Medical Scheme differentiate from its 

competitors? 

In a traditional medical aid/administrator environment all administered functions 

rest with an administrator. As such, a medical aid would be fully dependent on 

its outsourced administrator to inform it of any issues relating to its members. 

Being fully self-administered allows Selfmed to take total ownership of all its 

member interactions and address any administrative problems or complaints 

immediately. We do not have an electronic routing system; you speak to an 

individual. This personalised hands-on approach is fundamental to our model 

of building a credible member experience. 


58

KwaZulu-Natal Provincial 

Government 

LISTING 

A guide to KwaZulu-Natal’s provincial government departments. All addresses are located 

in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kznonline.gov.za. 

Office of the Premier 

Premier: Sihle Zikalala 

5th Floor, Telkom Building, 300 Langalibalele Street 

Tel: +27 33 341 3300 

Fax: +27 33 331 7368 

Agriculture and Rural Development 

MEC: Bongiwe Nomusa Sithole-Moloi 

Cedara College, Cedara Road 

Tel: +27 33 335 9100 

Fax: +27 33 343 8255 

Website: www.kzndard.gov.za 

Arts and Culture 

MEC: Hlengiwe Goodness Slindile Mavimbela 

222 Jabu Ndlovu Street 

Tel: +27 33 264 3400 

Fax: +27 33 394 2237 

Website: www.kzndac.gov.za 

Community Safety and Liaison 

MEC: Thomas Mxolisi Kaunda 


Tel: + 27 33 341 9300 

Fax: + 27 33 342 6345 

Website: www.kzncomsafety.gov.za 

Cooperative Governance and Traditional 

Affairs 

MEC: Sipho Hlomuka 

330 Langalibalele Street 

Tel: +27 33 395 2831 

Fax: +27 33 345 6432 

Website: www.kzncogta.gov.za 

Economic Development, Tourism and 

Land Affairs 

MEC: Nomsa Dube-Ncube 


Tel: +27 33 264 2500 | Fax: +27 331 310 5416 

Website: www.kzndedt.gov.za 

Education 

MEC: Kwazikwenkosi Innocent Mshengu 

Anton Lembede Building, 247 Burger Street 

Tel: +27 33 846 5000 | Fax: +27 33 355 1293 

Website: www.kzneducation.gov.za 

Health 

MEC: Nomagugu Simelane-Zulu 

1st Floor, 330 Langalibalele Street 

Tel: +27 33 395 2111 

Website: www.kznhealth.gov.za 

Human Settlements and Public Works 

MEC: Neliswa Peggy Nkonyeni 

203 Church Street 

Tel: +27 33 392 6400 | Fax: +27 33 392 6490 

Website: www.kznworks.gov.za 

Provincial Treasury 

MEC for Finance: Ravigasen Ranganathan Pillay 

Treasury House, 145 Chief Albert Luthuli Street, 


Website: www.kzntreasury.gov.za 

Sport and Recreation 

MEC: Hlengiwe Goodness Slindile Mavimbela 

135 Pietermaritz Street 

Tel: +27 33 897 9400 

Website: www.kzn.dsr.gov.za 

Social Development 

MEC: Nonhlanhla Mildred Khoza 

208 Hoosen Haffejee Street 

Tel: +27 33 264 5402 

Fax: +27 33 341 9610 

Website: www.kzndsd.gov.za 

Transport 

MEC: Thomas Mxolisi Kaunda 

172 Burger Street 

Tel: + 27 33 355 8600 

Fax: + 27 33 355 8092 

Web: www.kzntransport.gov.za

LISTING 

KwaZulu-Natal Local Government 

A guide to KwaZulu-Natal's municipalities. 

ETHEKWINI METROPOLITAN MUNICIPALITY 

263 Dr Pixley ka Seme Street, Durban 4001 

Tel: +27 31 311 1111 | Fax: +27 31 311 2170 

Website: www.durban.gov.za 

AMAJUBA DISTRICT MUNICIPALITY 

Unit B9356, Ithala Building, Section 1, Main Street, Madadeni Township, 

Newcastle 2940 


Website: www.amajuba.gov.za 

Dannhauser Municipality 

Tel: +27 34 621 2666 | Fax: +27 34 621 3114 

Website: www.dannhauser.gov.za 

eMadlangeni (Utrecht) Municipality 

Tel: +27 34 331 3041 | Fax: +27 34 331 4312 

Website: www.emadlangeni.gov.za 

Newcastle Municipality 

Tel: +27 34 328 7600 | Fax: +27 34 312 1570 

Website: www.newcastle.gov.za 

HARRY GWALA DISTRICT MUNICIPALITY 

40 Main Street, Ixopo 3276 

Tel: +27 39 834 8700 

Fax: +27 39 834 1701 

Website: www.harrygwaladm.gov.za 

Dr Dlamini Zuma Municipality 

Tel: + 27 39 833 1038 | Fax: + 27 39 833 1179 

Website: www.ndz.gov.za 

Greater Kokstad Municipality 

Tel: +27 39 797 6600 | Fax: +27 39 727 5501 

Website: www.kokstad.gov.za 

uBuhlebezwe Municipality 

Tel: +27 39 834 7700 | Fax: +27 39 834 1168 

Website: www.ubuhlebezwe.gov.za 

uMzimkhulu Municipality 

Tel: +27 39 259 5000 | Fax: +27 39 259 0427 

Website: www.umzimkhululm.gov.za 

ILEMBE DISTRICT MUNICIPALITY 

59/61 Mahatma Gandhi St, KwaDukuza 4450 

Tel: +27 32 437 9300 | Fax: +27 32 437 9587 

Website: www.ilembe.gov.za 

KwaDukuza Municipality 

Tel: +27 32 437 5000 

Fax: +27 32 437 5098 

Website: www.kwadukuza.gov.za 

Mandeni Municipality 

Tel: +27 32 456 8200 

Fax: +27 32 456 2504 

Website: www.mandeni.gov.za 

Maphumulo Municipality 

Tel: +27 32 481 4500 

Fax: +27 32 481 2053 

Website: www.maphumuloonline.gov.za 

Ndwedwe Municipality 

Tel: +27 32 532 5000 

Fax: +27 32 532 5031/2 

Website: www.ndwedwe.gov.za 

KING CETSHWAYO DISTRICT MUNICIPALITY 

King Cetshwayo House, Kruger Rand Rd, Richards Bay 3900 

Tel: +27 35 799 2500 

Fax: +27 35 789 1641 

Website: www.kingcetshwayo.gov.za 

City of uMhlathuze Municipality 

Tel: +27 35 907 5000 | Fax: +27 35 907 5444 

Website: www.umhlathuze.gov.za 


60

LISTING 

Mthonjaneni Municipality 

Tel: +27 35 450 2082 | Fax: +27 35 450 3224 

Website: www.mthonjaneni.org.za 

Nkandla Municipality 

Tel: +27 35 833 2000 | Fax: +27 35 833 0920 

Website: www.nkandla.org.za 

uMfolozi Municipality 

Tel: +27 35 580 1421 | Fax: +27 35 580 1141 

Website: www.umfolozi.gov.za 

uMlalazi Municipality 

Tel: +27 35 473 3300 | Fax: +27 35 474 4733 

Website: www.umlalazi.gov.za 

UGU DISTRICT MUNICIPALITY 

28 Connor Street, Port Shepstone 4240 

Tel: +27 39 688 5700 | Fax: +27 39 682 1720 

Website: www.ugu.gov.za 

Ray Nkonyeni Municipality 

Tel: +27 39 688 2000 | Fax: + 27 39 682 0327 

Web: www.rnm.gov.za 

Umdoni Municipality 

Tel: +27 39 978 4313 | Fax: +27 39 976 2020 

Website: www.umdoni.gov.za 

uMuziwabantu Municipality 

Tel: +27 39 433 3500 | Fax: +27 39 433 1208 

Website: www.umuziwabantu.gov.za 

Umzumbe Municipality 

Tel: +27 39 972 0005 | Fax: +27 39 972 0099 

Website: www.umzumbe.gov.za 

UMGUNGUNDLOVU DISTRICT 

MUNICIPALITY 

242 Langalibalele Street, Pietermaritzburg 3201 

Tel: +27 33 897 6700 

Fax: +27 33 342 5502 

Website: www.umdm.gov.za 

Impendle Muncipality 

Tel: +27 33 996 6000 | Fax: +27 33 996 0852 

Website: www.impendle.gov.za 

Mkhambathini Municipality 

Tel: +27 31 785 9300 | Fax: +27 31 785 2121 

Website: www.mkhambathini.gov.za 

Mpofana Municipality 

Tel: +27 33 263 1221 | Fax: +27 33 263 1127 

Website: www.mpofana.gov.za 

Msunduzi Municipality 

Tel: +27 33 392 3000 | Fax: +27 33 345 2397 

Website: www.msunduzi.gov.za 

Richmond Municipality 

Tel: +27 33 212 2155 | Fax: +27 33 212 2102 

Website: www.richmond.gov.za 

uMngeni Municipality 

Tel: +27 33 239 9200 

Fax: +27 33 330 4183 

Website: www.umngeni.gov.za 

uMshwathi Municipality 

Tel: +27 33 816 6800 

Fax: +27 33 502 0286 

Website: www.umshwathi.gov.za 

61 


LISTING 

UMKHANYAKUDE DISTRICT MUNICIPALITY 

Stand 13433, Kingfisher Road, Mkuze 3965 

Tel: +27 35 573 8600 | Fax: +27 35 573 1094 

Website: www.ukdm.gov.za 

Big 5 Hlabisa Municipality 

Tel: +27 35 838 8500 | Fax: +27 35 838 1015 

Jozini Municipality 

Tel: +27 35 572 1292 | Fax: +27 35 572 1266 

Website: www.jozini.gov.za 

Mtubatuba Municipality 

Tel: +27 35 550 0069 | Fax: +27 35 550 0060 

Website: www.mtubatuba.org.za 

uMhlabuyalingana Municipality 

Tel: +27 35 592 0680 | Fax: +27 35 592 0672 

Website: www.umhlabuyalingana.gov.za 

UMZINYATHI DISTRICT MUNICIPALITY 

Princess Magogo Bld, 39 Victoria St, Dundee 3000 

Tel: +27 34 219 8000 | Fax: +27 34 219 1940 

Website: www.umzinyathi.gov.za 

Endumeni Municipality 

Tel: +27 34 212 2121 | Fax: +27 34 212 3856 

Website: www.endumeni.gov.za 

Msinga Municipality 

Tel: +27 33 493 0761 | Fax: +27 33 493 0766 

Website: www.msinga.org.za 

Nquthu Municipality 

Tel: +27 34 271 6100 | Fax: +27 34 271 6111 

Website: www.nquthu.gov.za 

uMvoti Municipality 

Tel: +27 33 413 9100 | Fax: +27 33 417 1393 

Website: www.umvoti.gov.za 

UTHUKELA DISTRICT MUNICIPALITY 

33 Forbes Street, Ladysmith 3370 

Tel: +27 36 638 5100 / 2400 | Fax: +27 36 637 5608 / 635 5501 

Website: www.uthukela.gov.za 

Alfred Duma Municipality 

Tel: +27 36 637 2231 | Fax: +27 36 631 1400 

Website: www.alfredduma.gov.za 

Inkosi Langalibalele Municipality 

Tel: +27 36 353 0693/0681/0691 | Fax: +27 36 353 6661 

Website: www.umtshezi.co.za 

Okhahlamba Municipality 

Tel: +27 36 448 8000 | Fax: +27 36 448 1986 

Website: www.okhahlamba.org.za 

ZULULAND DISTRICT MUNICIPALITY 

B400 Gagane Street, Ulundi 3838 

Tel: +27 35 874 5500 

Fax: +27 35 874 5589 

Website: www.zululand.org.za 

Abaqulusi Municipality 

Tel: +27 34 982 2133 | Fax: +27 34 980 9637 

Website: www.abaqulusi.gov.za 

eDumbe Municipality 

Tel: +27 34 995 1650 | Fax: +27 34 995 1192 

Website: www.edumbe.gov.za 

Nongoma Municipality 

Tel: +27 35 831 7500 | Fax: +27 35 831 3152 

Website: www.nongoma.org.za 

Ulundi Municipality 

Tel: +27 35 874 5100 | Fax: +27 35 870 1164 

Website: www.ulundi.gov.za 

uPhongolo Municipality 

Tel: +27 34 413 1223 

Fax: +27 34 413 1706 

Website: www.uphongoloonline.gov.za 


62

SAVE THE DATE 

FUTURE EVENTS 

East london icc 

AUDIT&RISK 

INDABA 

10-12 

april 

2019 

PUBLIC SECTOR 

FINANCE GRAP 

SEMINAR 

8-9 JULY 2019 

EKURHULENI 

7-9 OCTOBER 2019 

CIGFARO 

ANNUAL 

CONFERENCE 

dURBAN icc

INDEX 

INDEX 

Agribusiness Development Agency (ADA)..............................................................................32 

Black Umbrellas..................................................................................................................................17 

Chartered Institute of Finance Audit and Risk Officers (CIGFARO)..................................63 

Durban Chamber of Commerce and Industry.......................................................................... 2 

Durban International Convention Centre (Durban ICC) ....................................................... 7 

Enterprise iLembe.............................................................................................................................22 

Invest Durban.................................................................................................................................. IFC 

Kemtek Imaging Systems.......................................................................................................... 9, 35 

Mondi Group South Africa...................................................................................................... 37-41 

Nedbank........................................................................................................................................ 24-27 

Petroleum Agency SA......................................................................................................................15 

RN Software....................................................................................................................................... IBC 

Selfmed......................................................................................................................................58, OBC 

Transnet Pipelines...................................................................................................................... 45-47 

University of Zululand ...................................................................................................................... 5 


64

LEVEL1 B-BBEE 

CONTRIBUTOR 

RN Software is the largest SYSPRO value-added 

reseller in KwaZulu-Natal with offi ces in Durban and 

Sandton with the vision of becoming the largest 

reseller nationally. 

We assess and determine corrective action in the IT 

sector supplying ERP services to government agencies 

and mid to large-sized businesses. 

We specialize in industry-specifi c consulting, IT 

services, ERP business process implementation, 

infrastructure and full development centre. 

We have completed in excess of 130 installed sites. 

We specialize in niche software and mobile 

application development to provide an end-to-end 

business digitalization that integrates fully with 

SYSPRO ERP system. 

We programme current business reporting into 

business intelligence and graphical dashboards 

integrated into the ERP. We provide analytical business 

insights and sequential upgrades to SYSPRO version 8. 

Industry and target market, specialising in 

manufacturing and distribution: automotive 

parts and accessories, industrial machinery 

and equipment, metal fabrication, electronic 

manufacture, plastic and rubber manufacturing, 

food and beverage manufacture and distribution, 

and packaging manufacturing. 

SERVICE 

OFFERINGS 

SERVICE OFFERINGS 

• Business process modelling 

• Gap analysis 

• System integration 

• Project management 

• Operating procedure manuals 

• Classroom-style training 

• Call centre 

• SYSPRO version 8 upgrades 

• Programming with the use 

of SYSPRO API 

• Barcode scan solution 

• Mobile services 

• Web interface trading 

CONTACT US 

Durban: 

15 Paradise Place I Cowies Hill I Pinetown 

Sandton: 

42 Tenth Avenue I Rivonia I Sandton 

+27 (31) 702 6087 | info@rnsoftware.co.za | mnayagar@rnsoftware.co.za 

www.rnsoftware.co.za

Plan for the 

unplanned. 

Get medical 

aid cover. 

Meet Joe. 

His smart phone is insured. 

His body? Not so much. 

Don’t be like Joe. 

Get cover that matters. 

Get medical aid. 

! 

SMS “SAmed” to 45738 today!

KwaZulu-Natal Business 2019-20 edition

Create successful ePaper yourself

Delete template?

Save as template?