KwaZulu-Natal Business 2020-21 edition

KWAZULU-NATAL
BUSINESS
2020/21 EDITION
THE GUIDE TO BUSINESS AND INVESTMENT
IN KWAZULU-NATAL PROVINCE
JOIN US ONLINE WWW.GLOBALAFRICANETWORK.CO.ZA |
WWW.KWAZULUNATALBUSINESS.CO.ZA
EST 1856
DURBAN CHAMBER
OF COMMERCE AND
INDUSTRY NPC

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Let’s come together and heal as a nation.
Let’s focus on Renewing, Restoring and Rebuilding
successful partnerships and investment opportunities so we
can get back to promoting our city as the ideal destination
for business and pleasure to the rest of the world.
Your support coupled with our world-class infrastructure,
innovative business environment and ever evolving
investment opportunities, means we can get back to
‘connecting continents’ in no time.
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Tel: +27 31 311 4227
Email: invest@durban.gov.za
web: invest.durban
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The city of
Durban (eThekwini
Municipality) is South
Africa’s second most
important economic
region
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Extensive first-world
road, rail, sea and air
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Dube
TradePort
and King
Shaka
International 1
Airport - 60-
year Master
Plan - driving
growth of
aerotropolis,
or airport
city
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Rated in top 5
‘Quality of Living’
cities in Africa and
Middle East by
Mercer Consulting in
2015
Named one of the
New 7 Wonders Cities
by the Swiss-based
New 7 Wonders
Foundation in 2014
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E S T 1856
E S T 1856
E S T 1856
DURBAN CHAMBER
DURBAN CHAMBER
OF COMMERCE AND
OF DURBAN COMMERCE CHAMBER AND
INDUSTRY NPC
INDUSTRY OF COMMERCE NPC AND
INDUSTRY NPC
#InBusinessForABetterWorld
2
#InBusinessForABetterWorld

WHO WE ARE AND WHAT
WE ARE ABOUT
WHO WE ARE AND WHAT
WE ARE ABOUT
The Durban Chamber of Commerce and Industry was established in 1856 and is
one of the oldest and largest metropolitan chambers in Africa. As a business-based
and member-focused The Durban Chamber organisation, of Commerce we and work Industry to protect was established and promote in 1856 the interests and is
of the one eThekwini of the oldest business and largest community metropolitan and to chambers facilitate in and Africa. promote As a business-based
economic growth
in the and region member-focused in partnership organisation, with key stakeholders.
we work to protect and promote the interests
of the eThekwini business community and to facilitate and promote economic growth
in the region in partnership with key stakeholders.
VISION
VISION
In Business for a Better World
To be In recognised Business for as a Better a world-class World business chamber and a united voice of
business To be in recognised the eThekwini as a world-class Municipal area business and chamber beyond. and a united voice of
business in the eThekwini Municipal area and beyond.
MISSION
MISSION
To contribute towards creating a conducive economic and business environment
in the To eThekwini contribute Municipal towards creating area and a conducive beyond, as economic well as and providing business services environment
specifically in the eThekwini relevant Municipal to small and area large and beyond, businesses as well operating as providing in the services region.
specifically relevant to small and large businesses operating in the region.
AN AN ORGANISATION ORGANISATION OF OF GROWTH
The Durban
The Durban
Chamber
Chamber
represents
represents
leading
leading
multi-nationals,
multi-nationals,
large
large corporates,
corporates,
small,
small,
medium medium and and micro-sized micro-sized enterprises enterprises (SMMEs) (SMMEs) and and start-ups in promoting inclusive inclusive
and sustainable and sustainable economic economic growth growth and and development in in eThekwini and beyond.
Join Join the Durban the Durban Chamber and and take take advantage of of our exclusive member benefits
and and business-focused services to to grow your business.
ADVOCATING ADVOCATING AND AND
INFLUENCING
INFLUENCING
POLICY
POLICY
DECISIONS THAT AFFECT THE
DECISIONS THAT AFFECT THE
INTERESTS OF BUSINESS
INTERESTS OF BUSINESS
Legislation and By-laws
Legislation and By-laws
Business Regulations
Business
Marketing
Regulations
Analysis and Research
Marketing Analysis and Research
OFFERING OFFERING BUSINESS BUSINESS
SUPPORT SERVICES
SUPPORT SERVICES
AND ADVICE
AND ADVICE
Business and Personal Credit Reports
Business and Personal Credit Reports
Networking Opportunities
Networking
Company
Opportunities
Registration
Company Workshops Registration and Seminars
Workshops Business and Consultation Seminars
Business Consultation
PROVIDING BUSINESS
INFORMATION RELEVANT
INFORMATION RELEVANT
TO BUSINESS
TO BUSINESS
Durban Chamber Online Newsletter
Durban Chamber Online Newsletter
Dispute Resolution
Dispute
Policy Focus
Resolution
Weekly Update
Policy Focus Weekly Update
Chamber Square, Lion Match,
Office Park, 892 Umgeni Road
Chamber Square, Lion Match,
Durban, 4001
Office Park, 892 Umgeni Road
Durban, 4001
www.durbanchamber.co.za
3
www.durbanchamber.co.za
+27 31 335 1000
+27 31 335 1000

Excellent service in
your time of need
matters to us.
Metropolitan has been awarded the leader classification for the
fourth year in a row by the South African Customer Satisfaction
Index (SACSI). Furthermore, we have also been recognised
by Ask Afrika as the 2019 Industry Winner in their
Orange Index for Service Excellence.
For your trust and continued partnership in
helping us achieve what matters to you,
we say thank you!
Find out more at
metropolitan.co.za
Winner of multiple awards for
service excellence.
2016
2017
2018
2019
2018
2019
Metropolitan is part of Momentum Metropolitan Life Limited, an authorised

financial services (FSP 44673) and registered credit provider (NCRCP173).
23595/E BLACK RIVER F.C.

Petroleum Agency SA is a key
player in a vital sector
South Africa’s oil and gas exploration and
production sector an excellent investment
As stated in the National Development Plan (NDP), the
government’s intention is to “enable exploratory drilling
to identify economically recoverable coal seam and
shale gas reserves, while environmental investigations
will continue to ascertain whether sustainable
exploitation of these resources is possible.
“If gas reserves are proven and environmental concerns
alleviated, then development of these resources and
gas-to power projects should be fast-tracked.”
The plan also calls for the need to incorporate a greater
share of gas in South Africa’s energy mix, through
importing liquefied natural gas (LNG), using shale gas if
reserves prove commercial, and developing infrastructure
for the import of LNG, mainly for power production,
over the short to medium term.
Petroleum Agency SA plays an important role in developing
South Africa’s gas market by attracting qualified
and competent companies to explore for gas in the
country, as well as monitoring and regulating their
activities. In addition to ensuring operators always
comply with the law, a major area of focus is increasing
the inclusion of historically disadvantaged South
African-owned entities in the upstream industry. South
Africa needs large discoveries of indigenous gas as well
as fair access to opportunities and social licence to
develop a healthy gas market.
Currently, natural gas supplies about just 3% of South
Africa’s primary energy. A significant challenge facing
the development of a major gas market in South Africa
is the extreme dominance of coal as a primary energy
source, and industry’s historic reliance on coalgenerated
electricity.
A lack of extensive gas transport and reticulation
infrastructure goes hand in hand with this, while
other challenges include uncertainty about volumes of
indigenous gas available to industry; security of supply;
switching and conversion costs; gas pricing; and negativity
around the ongoing use of fossil fuels. End users
require certainty before committing, while explorers
look for a guaranteed market.
On a more positive note, opportunities for gas lie in the
realisation of South Africa’s NDP and the Integrated
Resource Plan (IRP). Both call for indigenous hydrocarbons
– conventional and unconventional – and
independent power production to play an increasing
role in the nation’s energy mix.
The national power utility also intends to replace coalfired
power stations with gas-fired counterparts, in line
with the vision of the NDP. The advent of gas-fired power
stations will represent a ready, indigenous market for
operators that make discoveries of gas in South Africa,
ensuring it will be far easier to monetise smaller discoveries
that may otherwise have remained undeveloped.
As custodian, Petroleum Agency SA ensures that
companies applying for gas rights are vetted to make
sure they are financially qualified and technically
capable. Applicants also need to have a good track
record in terms of oil and gas exploration activity, as
well as regard for the environment. This applies to both
local and foreign companies. Oil and gas exploration
requires enormous capital outlay and can represent
a risk to workers, communities and the environment.
Applicants are therefore required to prove their capabilities
and safety record and must carry insurance for
environmental rehabilitation.

Driving South Africa’s emerging gas sector while ensuring a well-regulated
and responsible environment is a key mandate of Petroleum Agency SA, as is
assisting operators with monetising smaller discoveries that may otherwise
remain undeveloped, through advertising these opportunities to potential partners.
OUR VISION
A diverse upstream industry
contributing to energy security
through sustainable growth in
exploration and development
of oil and gas.
OUR MISSION
To promote, facilitate and regulate
exploration and sustainable develop-
ment of oil and gas contributing
to energy security in South Africa.
SOCIAL AND LABOUR PLANS
In addition, all planned activities can only be carried
out after completion of an environmental impact
assessment and under an approved environmental
management plan, after consultation with the public
as well as interested and affected parties. Explorers
are also required to contribute to skills development
through the agency’s Upstream Training Trust.
Oil and gas exploration in South Africa is regulated
in terms of the Mineral and Petroleum Resources
Development Act (MPRDA) of 2002, which stipulates
that applicants for production rights are required to
submit social and labour plans (SLPs) to assist in
transforming the industry, promoting employment and
advancing social and economic welfare in South Africa.
Applicants must develop and implement, where
applicable, comprehensive SLPs that cover human
resources-development programmes, community
development, housing and living conditions, and
employment equity.
In addition to the MPRDA, other acts also regulate
the sector – including the National Environmental
Management Act, the Royalties Act, the Mining Titles
Registration Act and the National Water Act. These
acts and regulations have served the upstream industry
well and are all in line with international standards.
Minister of Mineral Resources Gwede Mantashe and
President Cyril Ramaphosa have recently stated that
oil and gas exploration and production activities should
have their own standalone legislation, separate from
that applicable to hard mineral mining. This legislation
is being drafted and the agency is part of the team at
the Department of Mineral Resources working on it.
In today’s world, oil and gas remain the most critical of
energy resources, and Petroleum Agency SA is in full
support of those entering the South African oil and gas
exploration and production industries. The Agency is
fully committed to ensuring that our government and
policy-makers sustain the sector for the benefit
of all involved and will do everything in its power
to advance the industry.
ABOUT PETROLEUM AGENCY SA
Petroleum Agency SA was established in 1999 by Ministerial directive and is
mandated through the Mineral and Petroleum Resources Development
Act, 2002 (Act No.28 of 2002) together with the National Environmental
Management Act, 1998 (Act No.107 of 1998). These Acts provide for
Petroleum Agency SA to evaluate and promote oil and gas potential
exploration and production activities in South Africa, to regulate oil and gas
exploration and the production industry and to archive all geotechnical data
produced through oil and gas exploration. The Agency acts as an advisor to
the government on issues regarding oil and gas exploration and production
and carries out special projects at the request of the Minister.

CONTENTS
CONTENTS
KwaZulu-Natal Business 2020/21 Edition
Foreword 10
A unique guide to business and investment in KwaZulu-Natal.
Special features
Regional overview of KwaZulu-Natal 12
Manufacturers are investing and export volumes are on the rise.
KwaZulu-Natal’s ports are shaping up 18
Construction of the Durban Cruise Terminal got underway in 2019.
Economic sectors
Agriculture 26
Sugar 28
Forestry and paper 29
Mining 32
Engineering 33
Oil and gas 34
Construction and property 35
Tourism 36
Manufacturing 40
Automotive 41
Energy 42
Water 43
Banking and financial services 44
Education and training 45
ABOUT THE COVER: The Port of Durban
handles containers, automotive imports
and exports, break-bulk and agricultural
commodities. Transnet reported that the
port handled 2.96-million twenty-foot
equivalent units (TEUs) in 2018. The
figure of 487 000 vehicles handled
by the port in the same year was the
highest since 2013. Photo: Transnet
KWAZULU-NATAL BUSINESS 2020/21
8

Africa Biomass Company
Your caring family trading as world leaders in the wood chipping industry.
WP CHIPPER HIRE & SALES trading
as Africa Biomass Company (ABC)
is a wood chipping company that
provides wood recycling services,
supplying biomass according to specification.
ABC is one of the best go-to wood chipper
equipment sales and services agents.
Wood chipper services
• Agricultural: orchard / vineyard recycling and
mulch spreading
• Biomass for generation
Company
of heat or electricity
Slogan
• Site clearing and preparation
Buy your own Bandit wood chipper
or hire us to deal with your biomass
Bandit the only logical choice for wood chippers in
Africa, which are now fitted on SABS-approved trailers.
ABC understands wood recycling
With a comprehensive understanding of the operational
challenges of wood recycling in South Africa,
Company
ABC has established state-of-the-art Slogan facilities to service,
repair and rebuild wood chipper equipment of
any brand and size. ABC’s facilities are operated by a
remarkable team of very experienced and suitably
qualified engineers, technicians and artisans.
An equally remarkable team of field-service
technicians deliver repairs, maintenance and parts
A small selection of Bandit wood chippers (from left to right): Model 75XP Engine; Model 65XP PTO
and the Intimidator 12XPC.
• River rehabilitation in riparian zones
to clients’ sites to optimise uptime and efficiency.
Africa Biomass Company is the authorised dealer Become an owner of a Bandit chipper
• Workshop, field services, parts and spares For more information on the Bandit, see page 27.
for Bandit Industries in Southern Africa.
All existing and new customers are welcome
• Operator training services: SETA-certified
ABC has built up a substantial fleet of Bandit to contact us if they want to become the
• Manufacturing workshop wood chippers for use by the company The most as part experienced
owner of the top-class range of Bandit
of our wood recycling services, but ABC also
biomass producer equipment. in Bandit Africa Industries have delivered
offers a whole range of Bandit wood chippers successful recycling solutions to basically
The X-factor in wood chippers to clients who want to invest in the Bandit range. every corner of the planet.
Bandit chippers are designed Dimensional with quality, wood chips are produced by the removal
ABC is the authorised dealer for Bandit production wood and chippers longevity in mind. of alien Hand-fed invasive A trees commitment in riparian to zones, support previously
chippers are mounted on custom-built, SABSapproved
trailers. Owning a Bandit wood Africa Biomass Company is fully equipped
in Africa. Bandit combines first-world technology and deemed as impossible. ABC, however, now has
experience with third-world functionality. chipper will always This makes put you in the front knowledge seat of and and stocked technology to service and to get repair the any job Bandit
reliable wood chipping operations.
machine anywhere in South Africa. We own
done. These wood chips are then used
In many cases, the Bandit wood chipper sets a fully-equipped parts warehouse (650m²),
the benchmark for other brands in the wood in agri-industrial manufacturing applications department as as well a greener
alternative services to ensure to coal that for parts either are always heat readily or
as field
chipping industry. We are ready to supply the
right Bandit wood chipping solution with advice available and our own, as well as our clients’
electricity production.
and aftercare to your doorstep. All existing and Bandit wood chippers are not out of commission
new customers are welcome to contact us to longer than they have to be.
become the owner of Bandit equipment. Geographical www.abc.co.za footprint
ABC is located in Worcester (Western
Cape), Kirkwood (Eastern Cape),
Nelspruit (Mpumalanga) and Upington
(Northern Cape).
We operate in all nine provinces in
South Africa and also across the
borders into Sub-Saharan Africa, including
Namibia, Botswana, Zimbabwe,
Mozambique, Zambia, Malawi,
Tanzania, Kenya and Nigeria. ■
9 WESTERN CAPE BUSINESS 2020
www.abc.co.za

FOREWORD
KwaZulu-Natal Business
A unique guide to business and investment in KwaZulu-Natal.
Credits
Publisher: Chris Whales
Publishing director:
Robert Arendse
Editor: John Young
Managing director: Clive During
Online editor: Christoff Scholtz
Art director: Brent Meder
Designer: Simon Lewis
Production: Lizel Olivier
Ad sales: Gavin van der Merwe,
Sam Oliver, Jeremy Petersen
Gabriel Venter, Vanessa Wallace,
Themba Khumalo, Shiko Diala
and Sandile Koni.
Administration & accounts:
Charlene Steynberg
and Natalie Koopman
Distribution & circulation
manager: Edward MacDonald
Printing: FA Print
The 2020/21 edition of KwaZulu-Natal Business is the 12th
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
vital role played by ports in the province, from the coal exported from
Richards Bay to the new cruise liner terminal addition to the Port of
Durban. The 10th anniversary of the 2010 FIFA World Cup coincides
with the birthday of the Moses Mabhida Stadium, an iconic design that
has become a standard feature on the KwaZulu-Natal sporting and
events calendar. Likewise the Durban ICC which continues to burnish
the province’s reputation as meetings and convention centre.
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, our flagship South African Business title and the
new addition to our list of publications, African Business, which was
launched in 2020. ■
Chris Whales
Publisher, Global Africa Network Media | Email: chris@gan.co.za
DISTRIBUTION
KwaZulu-Natal Business is distributed internationally on
outgoing and incoming trade missions, through trade and
investment agencies; to foreign offices in South Africa’s
main trading partners around the world; 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, airport
lounges, provincial government departments, municipalities
and companies.
Member of the Audit Bureau
of Circulations
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 1995-1310
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 | Bell Equipment, Bidvest, Enterprise iLembe, eThekwini
Municipality, Hulamin, Illovo Sugar, iStock, KZN Department of Education,
Mondi, Moses Mabhida Stadium/Kevin Sawyer, MSC Cruises, RBM Mines,
KWAZULU-NATAL BUSINESS 2020/21
10
Transnet National Port Authority, Umgeni Water, WK Construction.
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.

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11 KWAZULU-NATAL BUSINESS 2020/21

SPECIAL FEATURE
A regional overview
of KwaZulu-Natal
By John Young
Manufacturers are investing in the province and export volumes are on
the rise as the province’s two main ports upgrade and expand.
Almost a third of South Africa’s
manufactured exports are produced in
KwaZulu-Natal. A number of domestic
and international manufacturers are
either buying into the province or building new
facilities in order to export finished goods.
The Mara Group’s R1-billion investment in
a smartphone factory at the Dube TradePort
is the latest in a string of inward investments
that KwaZulu-Natal has received. This includes
expenditure of more than R1.2-billion by Arçelik,
the Turkish owner of Defy, at the company’s three
South African plants (two of which are in the
province) and R4.5-billion by Nyanza Light Metal in
a titanium dioxide pigment plant at Richards Bay.
The Special Economic Zones (SEZs) at Richards
Bay and King Shaka International Airport (the
Dube TradePort) are key components of the
strategy of attracting investors to the province.
Dube TradePort attracted R7-billion between
2012 and 2019 and the same amount is expected
to accompany the development of Phase 1A
and Phase 1F of the Richards Bay Industrial
Development Zone (RBIDZ).
Two investors in 2019 were edible oils
manufacturer Wilmar Processing SA, which is
investing more than R1-billion in a plant, and
Elegant Afro Line, which will spend about R900-
million on its chemicals plant.
There are plans to establish a clothing and
textiles SEZ in the province to build on the
province’s established strength in the sector and
an automotive supplier park will be in operation
by 2021. Toyota and Bell Equipment play a big
KWAZULU-NATAL BUSINESS 2020/21
12

SPECIAL FEATURE
role in the automotive sector while the Engen Oil
Refinery is a strategic asset.
The province’s existing infrastructure, good soils
and fine weather provide a solid base for future
growth. KwaZulu-Natal already has significant
capacity in heavy and light manufacturing, agriprocessing
and mineral beneficiation, all of which
is supported by South Africa’s two busiest ports
(Richards Bay and Durban), the country’s busiest
highway (the N3), a modern international airport
and pipelines that carry liquids of all types to and
from the economic powerhouse of the country
around Johannesburg in the interior.
Sappi’s dissolving pulp mill at Umkomaas
south of Durban (below) is one of the province’s
most significant industrial sites as it produces huge
quantities of a material that is used in viscose staple
fibre, which in turn is used in clothing and textiles.
Together with production volumes from Sappi’s
mill in neighbouring Mpumalanga province, the
company is the world’s largest manufacturer of
dissolving pulp. Sugar, tourism and forestry and
paper are other important sectors driving growth
and employment in KwaZulu-Natal.
In his 2020 State of the Province address,
Premier Sihle Zikalala listed the sectors which are to
be targeted for investment in the future. These are:
• Aloe processing
• Bio-ethanol
• Renewable energy
• Fish processing
• Innovation hubs
• Oceans Economy.
KwaZulu-Natal has a long coastline that stretches
from Port Edward in the south to the iSimangaliso
Wetland Park 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.
These ports export vast quantities of minerals
(mostly through Richards Bay) and manufactured
goods (Durban) and serve as an important conduit
13 KWAZULU-NATAL BUSINESS 2020/21

SPECIAL FEATURE
for imports of all sorts. The Richards Bay Coal
Terminal exports massive quantities of coal while
the Port of Durban is the busiest port in Africa.
However, planners want to massively increase
the economic benefits that the ocean can bring.
An Oceans Economy Review Workshop has come
up with a range of sub-sectors 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 ongoing projects to boost the capacity of the
province’s ports and to explore for gas and oil in
the Indian Ocean. If oil rigs were to start visiting
the KZN coastline on a regular basis, the shiprepair
industry would 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, goaldriven
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 is in line with an “Oceans
Economy” approach.
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.
Regions
KwaZulu-Natal has 10 district municipalities and
a metropolitan municipality, 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.
The promenade now reaches all the way to the
KWAZULU-NATAL BUSINESS 2020/21
14

SPECIAL FEATURE
harbour and the Point development will benefit.
Major investments are taking place at the Port of
Durban with the current centrepiece being the
Convention
Durban Cruise
Centre
Terminal.
Complex,
The Container
which
Terminal
hosts the
is
annual also undergoing Tourism Indaba. an extensive overhaul.
The Durban’s province's conference climate lends facilities itself are to well every utilised, kind of
outdoor but many pursuit opportunities and its excellent still exist beaches in chemicals are always
popular. and industrial Big sports chemicals, events are food regularly and beverages, hosted in
KwaZulu-Natal, infrastructure development which has become and tourism. something Further of
a south, home plans to mass-participation are in place to upgrade events such Margate’s as the
Comrades airport and Marathon Port Shepstone’s and the Dusi beachfront. Canoe race. The
province has excellent game and nature reserves.
Western Isimangaliso region Wetland Park is a World Heritage Site
and helps to fund 80 small businesses associated
with Also its known business as as the a tourist Midlands, site. this is a fertile
agricultural The building region of the which King hosts Shaka the International popular
Airport
annual
to
Royal
the north
Show.
of
It
Durban
produces
allows
sugar
tourists
cane,
to
fruit,
get
animal products, forestry and dairy products.
to superb beaches and game farms very quickly,
Pietermaritzburg is the provincial capital and
and the airport has its own industrial development
home to a major aluminium producer along with
zone, the Dube TradePort. New international direct
several manufacturing concerns, including textiles,
flights
furniture,
have
leather
been
goods
announced;
and food.
4.5-million
The city has
passengers
good
transport
passed
links
through
along
the
the
airport
N3 national
in 2014/15,
highway,
almost
300 excellent 000 of whom schools were and foreign a lively visitors arts or tourists scene. (ACSA). The
Midlands Meander is a popular tourist destination.
Geography
Eastern region
The Although mixed topography most of this of area the province is very rural, allows Richards for varied
Bay agriculture, is one of animal the country’s husbandry industrial and horticulture. hotspots
The because lowland of area its coal along terminal, the Indian port Ocean and aluminium coastline
is smelters. made up The of subtropical Richards Bay thickets Industrial and Development
Afromontane
Forest. Zone High (RBIDZ) humidity is a major is experienced, economic node especially in itself in
the and far with north, the and possibility this is a summer of a power rainfall plant area. being The
centrally built, the located RBIDZ Midlands could become is on a an grassland energy hub. plateau
Mining
among
is an
rolling
important
hills.
sector
Temperatures
in this region.
generally
SPECIAL FEATURE
get colder in the far west and northern reaches of
the province. The other major urban
The mountainous centre area is in Empangeni the west which – the
Drakensberg – comprises has solid several walls educational
of basalt and
is the source of the region’s institutions. many strongly The running King
rivers. Regular and heavy Shaka winter International
snowfalls support
tourist enterprises. The Airport Lubombo is adjacent Mountains to in the the
north are granite formations Dube TradePort, that run in a parallel. Special
Economic Zone (SEZ) which
is attracting investors.
Regions
Northern region
KwaZulu-Natal has 11 district municipalities, the
The economic powerhouse is Newcastle in the
most of any province in South Africa and, in economic
north-west: coal mining, steel processing and
manufacturing
terms, the province
are major
offers
activities.
diverse
Some
opportunities.
old coal
Southern
mines are being
region
reopened by new coal companies
to cater for the country’s power stations’ demand
This for the area fuel. is the Game province’s farms, most trout populous. fishing and The hiking city of
Durban are part has of an experienced attractive package booms in for sectors tourists, such and as
automotive, Zululand is ICT, a popular film and destination call centres. for Major cultural investments
experiences. are taking The place region at the is rich Port in of Anglo-Boer Durban and
there War history a possibility which that includes the old battle airport sites south such of as the
city Islandlwana could become and Rorke’s another Drift. port, ■ if the money can be
Standerton
N5
LESOTHO
Vrede
Free State
Harrismith
Volksrust
Newcastle
Glencoe
N11
Paulpietersburg
Utrecht
Dundee
Vryheid
uLundi
Pongola
Nongoma
Hlabisa
Mtubatuba
Ladysmith
R74
Melmoth
Bergville
N3 Colenso
eMpangeni
R74
Winterton
Kranskop
Estcourt
Greytown
Gingindlovu
Mooi River
R33
Stanger Darnall
Howick
N2
Tongaat
Ballito
PIETERMARITZBURG
N3
uMhlanga
Underberg
Pinetown
DRAKENSBERG
Kokstad
N2
N17
Bethal
Eastern Cape
Ermelo
Mpumalanga
iXopo
Harding
N17
KWAZULU-NATAL PROVINCE
N3
N11
R56
Piet Retief
R34
R33
uMzinto
N2
R33
R68
Hibberdene
uMtentweni
Port Shepstone
Margate
Southbroom
Port Edward
N2
R34
DURBAN
aManzimtoti
uMkomaas
SWAZILAND
R69
R65
R66
INDIAN OCEAN
Mkuze
N2
Hluhluwe
Richards Bay
Motorway
Main Road
Railway
MOZAMBIQUE
St Lucia
N
KWAZULU-NATAL BUSINESS 2016/17
14 15 KWAZULU-NATAL BUSINESS 2020/21

SPECIAL FEATURE
KwaZulu-Natal’s ports are shaping
up to receive more ships
Construction of the Durban Cruise Terminal got underway in 2019.
MSC Orchestra arrives in Durban on maiden visit. Image: MSC Cruises
The KwaZulu Cruise Terminal (KCT)
consortium has won the contract from
Transnet National Ports Authority (TNPA)
to finance, build and run the new Durban
Cruise Terminal. The terminal is expected to start
functioning for the 2020/21 cruise season.
Within the Port of Durban there are a number
of specialised facilities. One of the busiest is the
Container Terminal and that is the subject of a
large upgrading project. The Port of Richards
Bay, the link to the world for South Africa’s coal
exporters, is constantly adding to its facilities, the
latest being a floating dock, for which approval has
been given to be constructed within the port.
The cruise terminal is an important step
forward for Durban and fits in well with the
larger project that links the port to the upgraded
southern end of the promenade, the Durban Point
Waterfront. A joint venture between MSC Cruises
SA and Africa Armada Consortium, KCT will spend
about R220-million on the financing‚ construction‚
maintenance and operation of the cruise terminal
for a 25-year concession period. Construction
began in 2019.
The cruise terminal will cover a 32 000m² area
that will cater for two ships and at least 5 000
passengers. A ship with 2 000 passengers is worth
in the region of R2-million per day for the host city.
The number of annual passengers is expected
to grow from the current 200 000 to more than
700 000 by 2040. Durban’s hosting of 60 ships
per annum is expected to rise to 150 or more.
South Africa attracts 0.5% of the world’s cruiseship
market which comprises about 15.4-million
passengers annually.
MSC Musica uses Durban as her base port
and is joined by MSC Opera during the summer
months, sailing from Durban to Mozambique and
KWAZULU-NATAL BUSINESS 2020/21
18

SPECIAL FEATURE
other destinations in the Indian Ocean. A popular
offering is the “Tour to Nowhere” cruise. In 2019
MSC Orchestra made its first visit to Durban.
Container terminal
Several projects are underway within the Port of
Durban to increase capacity. Transnet National
Ports Authority (TNPA) and Transnet Port Terminals
(TPT) are combining to upgrade infrastructure
and buy new equipment to improve efficiencies
at the Ro-Ro terminal (vehicles and break bulk)
and Maydon Wharf (mixed cargo and agriculture)
but the biggest project is at the Durban Container
Terminal (DCT).
DCT has a capacity of 3.6-million TEUs (twentyfoot
equivalent units) and the current project aims
to extend that beyond five-million TEUs. The Brics
New Development Bank has approved a loan of
$200-million for the DCT expansion project.
Drydock
Durban’s drydock complex is undergoing a series
of refurbishments and upgrades. The R48-million
35m outer caisson was the first project to be
completed and now it’s the turn for the inner
caisson and drive system to be fixed, at a cost of
R61.5-million. Two Durban companies, Lodemann
(Managing Contractor) and Channel Construction
(Design and Build), are responsible for the project,
which will ensure the sustainability of the shiprepair
sector within the port.
TNPA states that the multiplier effect in the
marine sector creates five jobs for every direct
job. The drydock project created direct jobs for 29
skilled employees.
Richards Bay
The Richards Bay Coal Terminal (RBCT) is the key
component of the port on the northern coast
of KwaZulu-Natal but the port’s managers and
associated Special Economic Zone (SEZ) are looking
to diversify beyond the other types of freight
which also form part of the port’s key mandate.
Chief among the diverse offerings being
looked at are alternative energy generation and
opportunities in the gas sector. A feasibility study
is being done on a gas-to-power plant and a large
new liquid petroleum gas import and storage
terminal was recently built for Petredec by Bidvest
Tank Terminals.
Ship repair is another option which will open
up other opportunities in marine manufacturing.
TNPA has approved in principle the
construction of a floating dock near the existing
Small Craft quay. TNPA will have to create new
onshore infrastructure and do some dredging
before it can call for tenders from the private sector
to build the dock, which would be able to handle
large and ultra-large cargo vessels (Capesize).
Richards Bay is a deepwater port. Among its
13 berths are terminals that handle dry-bulk ores,
minerals and break-bulk cargo.
The quay of the Richards Bay Coal Terminal
(RBCT) is 2.2km long with six berths and four shiploaders.
The 276ha site contains a stockyard that
can store 8.2-million tons while the terminal itself
has a design capacity of 91-million tons per year.
More than 900 ships visit RBCT every year. ■
Drydock construction. Image: Transnet
19 KWAZULU-NATAL BUSINESS 2020/21

ADVERTORIAL
see money differently
MONEY EXPERTS BRING
21ST CENTURY BANKING
TO ALL COMMUNITIES
At the heart of Nedbank’s business strategy is its belief that
its sustainability depends on its ability to integrate into the
communities in which it operates.
Siphamandla Ndhlovu, Provincial
General Manager for Retail and
Business Banking in KwaZulu-Natal
(KZN), explains: ‘Nedbank has continued to
deliver on its brand promise, which is to use
our financial expertise to do good for
individuals, families, businesses and
communities in which we operate. Our
client-centred strategy has enabled us to
reach out to our individual and business
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The Nedbank Contact Centre and advanced
digital innovation, including the awardwinning
Nedbank Money app, enabled the
bank to continue serving clients in the
comfort of their homes. Ndhlovu says that
for small- and medium-business clients,
Nedbank continues to deliver end-to-end
solutions through a dedicated business
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bank to deliver seamless banking solutions.
Our bigger-picture business approach
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vision, cashflow cycle, and transactional and
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‘…we made donations to
Doctors on Call and the Aurum
Institute to help kickstart
Covid-19 projects …
’
As a responsible corporate citizen, Nedbank
in KZN has sought partnerships with
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broad Covid-19 relief measures that all
commercial banks committed to, among
other initiatives we made donations to
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help kickstart Covid-19 projects that have
benefitted our communities immensely. We
also continue to participate in the
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Ndhlovu says.
If you are interested in taking your business
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Nedbank’s specialised service offering,
please call Siphamandla Ndhlovu on
+27 83 637 8552, sendanemailto
SiphamandlaN@Nedbank.co.za or visit
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ADVERTORIAL
see money differently
SOLUTIONS FOR SMALL BUSINESS
AIMED AT CREATING JOBS AND
GROWING THE ECONOMY
Nedbank’s Provincial Manager of Retail Relationship Banking
for KwaZulu-Natal, Melanie Reddy, explains how Nedbank is
committed to partnering with businesses for growth.
‘
Small businesses are the mainstay of
the economy and Nedbank provides
small-business owners with support
that goes beyond banking,’ she says.
‘Covid-19 has dealt entrepreneurs a major
blow and, naturally, they are overwhelmed
and anxious about the future of their
businesses. Since the lockdown many small
businesses have had no income, but
mounting operational expenses, and some
did not qualify for traditional funding nor
certain relief aids available. Nedbank is
proud to be involved in various ways to help
mitigate the economic impact of the crisis
on this vital sector.’
Through the launch of the South African
Future Trust (SAFT), established by Nicky
and Jonathan Oppenheimer, Nedbank
helped facilitate the distribution of loans to
small businesses on behalf of the SAFT. The
main aim of the SAFT is to keep companies
in business and protect jobs to fast-track
South Africa’s economic recovery after the
pandemic by extending direct financial
support to employees of South African
small and medium-sized enterprises (SMEs)
at risk of losing their jobs. In addition,
BackaBusiness is an innovative and relevant
‘
Nedbank helped facilitate
the distribution of loans to
small businesses on behalf
of the SAFT.
’
way in which Nedbank is helping small
businesses during this challenging time. It
offers an opportunity for people to show
their support for small businesses to ensure
their survival. Loyal customers, family and
friends, and society at large can join the
movement to pay now and redeem a reward
from the business owner once trading resumes.
‘Beyond this Covid-19 relief, our experts are
available to provide all the support you
need,’ says Reddy. Initiatives such as
SimplyBiz.co.za, The Essential Guide for
Small-business Owners, business registration
services and free small-business seminars
are all geared to support SMEs.
If you wish to tap into our small-business
expertise to reach your business goals,
please call Melanie Reddy on
+27 10 223 2823, sendanemailto
MelanieR@nedbank.co.za or visit
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ADVERTORIAL
see money differently
NEDBANK BUSINESS BANKING
AIMS TO SUPPORT ALL
BUSINESS SECTORS
Matthew Moore, Nedbank’s Provincial Business Banking
Manager for KwaZulu-Natal, says that his team are specialists
in commercial industries, agriculture and the public sector.
‘
At Nedbank Business Banking we
believe that you need a flexible,
resilient financial partner who not
only understands your circumstances and
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Our bigger-picture banking approach
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of your business and beyond. We know that
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rely on our additional support that is most
needed in times of change and uncertainty.
In the agricultural sector particularly,
Nedbank understands that if the various
challenges it faces are not addressed, it will
threaten economic growth, food security,
‘… Nedbank has developed
innovative funding solutions
designed to support
farmers …
’
employment and investment. ‘By using our
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with our agricultural clients to contribute to
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climate-resilient agricultural sector.’
To this end Nedbank has developed
innovative funding solutions designed to
support farmers with sustainable farming
interventions, ranging from water efficiency
mechanisms and cutting-edge irrigation to
renewable-energy financing. Moore says
that Nedbank’s leadership position in
renewable-energy finance is helping many
farmers and agribusinesses to benefit from
cleaner, more reliable and affordable power
generation than the national grid can provide.
If you are interested in taking your business
to the next level, please contact
Matthew Moore on +27 84 240 6799, send an
email to Matthewmo@nedbank.co.za or visit
www.nedbank.co.za/business.

ADVERTORIAL
see money differently
NEDBANK BUSINESS BANKING
HELPS PUBLIC SECTOR SEE
MONEY DIFFERENTLY
Nedbank is committed to delivering easy and innovative
banking solutions to government, municipalities and
state-owned enterprises throughout South Africa.
Sithembiso Cele, Nedbank's Provincial
Manager for the Public Sector in
KwaZulu-Natal, says that given the
strategic importance of the public sector to
the economy and the country at large,
Nedbank has a dedicated public sector
team to provide financial solutions that
enable the broader mandate of service
delivery. ‘We understand that the various
spheres of government and their agencies
face unique challenges, and are ready and
able to draw on the bank’s innovative,
seamless and hassle-free products to help
build a greater nation.’
But the bank's role goes beyond providing
banking solutions to these vital entities. As
money experts who do good, Nedbank
strives to empower the people behind the
public sector. 'We help them save time by
providing onsite help from our dedicated
teams and through our market-leading
Nedbank Money app and other digital
solutions. We also help them save money
through our preferential banking solutions
and our award-winning Financial Fitness and
Consumer Education Programme. The
programme helps them manage their
money better by providing budgeting and
‘
Nedbank strives to empower
the people behind the public
sector.
’
money management training, equipping
their staff members to deal with everyday
money management challenges better.'
With the exclusive benefits available to
municipal staff members who bank with
Nedbank, savings of more than R2 000 a
year in fees alone are made possible. These
staff members also enjoy free personal
card delivery and pay no initiation fees,
benefit from the Greenbacks Programme,
get free basic travel insurance and an
additional 20% discount on top-up travel
insurance, twelve airport lounge visits a
year and a free wills consultation and
drafting service.
To find out more about how Nedbank can
partner with your organisation togrowa
greater South Africa, please contact
Sithembiso Cele on +27 83 647 2486, send
an email to SithembisoC@nedbank.co.za or
visit www.nedbank.co.za/business.
Nedbank Ltd Reg No 1951/000009/06. Authorised financial
services and registered credit provider (NCRCP16).
SPO5997

OVERVIEW
KEY SECTORS
Overviews of the main economic sectors of KwaZulu-Natal
Agriculture 26
Sugar 28
Foresty and paper 29
Mining 32
Engineering 33
Oil and gas 34
Construction and property 35
Tourism 36
Manufacturing 40
Automotive 41
Energy 42
Water 43
Banking and financial services 44
Education and training 45
KWAZULU-NATAL BUSINESS 2020/21
24

OVERVIEW
Port of Richards Bay
Pic: Transnet National Ports Authority
25 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
Agriculture
Small-scale farmers are set to benefit from the value chain.
Sector Insight
South Africa gets 18% of its
milk from KwaZulu-Natal.
In 2018 a summit was held to draw up an Agricultural Development
Masterplan for the province. The 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 Provincial Government of KwaZulu-Natal wants to use
government’s buying power to develop agricultural value chains for
the benefit of new and small-scale farmers and producers. A pilot
programme is running in three districts and the eThekwini metro.
A group of women farmers from uMkhanyakude supply Enterprise
iLembe with 1 000 crates of tomatoes as part of the project.
Enterprise iLembe is the development arm of the iLembe District
Municipality and is looking for investors to further develop an agriprocessing
hub near the King Shaka International Airport and Dube
TradePort. Among the new lines of agricultural produce being
investigated is cannabis. A Cannabis Investor Protocol has been
launched and a unit established at the Moses Kotane Institute to assist
entrepreneurs and cultivators.
There are only 16 farmers in
all of South Africa doing what
Ross Lowe does on his farm in
Richmond, which is to cultivate
golden kiwifruit. He believes that
the particular strain of kiwifruit
he has chosen is the best in
terms of taste and yield and he
has awards to prove it. 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. Another
possibility is 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 National Department of
Rural Development and Land
Reform (DRDLR) has launched
an Agri-parks programme to
support small-scale farmers
and to boost other businesses
related to agriculture such
as abattoirs and transport
operators. KwaZulu-Natal is one
of four provinces where pilot
projects have been carried out.
The plan is to have an Agripark
in each of South Africa’s
44 district municipalities with
farmers owning at least 70% of
the venture.
KWAZULU-NATAL BUSINESS 2020/21
26

OVERVIEW
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There are three components
to the fully realised Agri-park
concept:
• Farmer Production Support
Unit: links farmer with
markets, collection and shortterm
storage, local processing
and mechanisation.
• Agri-hub: equipment-hire,
processing, packaging,
logistics and training.
• Rural Urban Market Centre:
contract-based links to local
and international markets,
long-term storage and
market intelligence.
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 Mangosuthu University
of Technology (MUT) and the
Innovation and Technology
Business Incubator (Invotech)
to expose farmers to new issues
and techniques.
Agricultural assets
Of KwaZulu-Natal’s 6.5-million hectares of agricultural land, 18%
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. The coastal areas lend themselves to sugar production
and fruit, with subtropical fruits doing particularly well in the north.
KwaZulu-Natal produces 7% of South Africa’s citrus fruit. The Coastal
Farmers Co-operative represents 1 400 farmers. TWK is a R6-billion
operation that originated in forestry (as Transvaal Wattlegrowers
Co-operative) but which is now a diverse agricultural company with
seven operating divisions. It has 19 trade outlets in the province and 21
in Swaziland and Mpumalanga.
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. Vegetables grow
well in most areas, and some maize is grown in the north-west. Nuts
such as pecan and macadamia thrive. KwaZulu-Natal has two colleges
offering higher qualifications in agriculture, Cedara in the Midlands and
the Owen Sitole College of Agriculture near Empangeni. ■
Online Resources
Fresh Produce Exporters Forum: www.fpef.co.za
KwaZulu-Natal Agricultural Union: www.kwanalu.co.za
KZN Dept of Agriculture & Rural Development: www.kzndard.gov.za
Milk Producers Organisation: www.mpo.co.za
National Dept of Agriculture, Forestry & Fisheries: www.daff.gov.za
Royal Agricultural Society of Natal: www.royalshow.co.za
27 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
Sugar
Tongaat Hulett is undergoing massive restructuring.
In June 2019 share trading in Tongaat Hulett was suspended. Many
accounting irregularities came to light and the upshot was that
the company was forced to restructure to pay off huge debts.
This comes at a time when the sugar industry is described in
Engineering News as being “in the intensive care unit” by the Executive
Director of the South African Sugar Association (SASA).
Sales into the Southern African Customs Union (SACU) have
markedly declined in recent years but under a SACU protocol, Eswatini
will sell about 500 000 tons to South Africa, free of any duty.
Among the measures taken by Tongaat Hulett are the sale of its
starch business to Barloworld (for R5.3-billion) and sale of 5.18% of the
company’s shares to Evanstan Investments, which now becomes one
of the company’s biggest investors.
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 industry employs 65 000
directly and indirect employment is estimated at 350 000. About 40%
of local production is exported. The SACGA represents in the region
of 23 000 growers (including 651 small-scale farmers) who produce
around 20-million tons of cane. In the 2019/20 season, about two-million
tons of saleable sugar was produced. A new industry structure, allowing
Online Resources
South African Cane Growers’ Association: www.sacanegrowers.co.za
South African Sugar Association: www.sasa.org.za
South African Sugar Technologists Association: www.sasta.co.za
Sugar Milling Research Institute: www.smri.org
Sector Insight
South Africa will receive
half-a-million tons of dutyfree
Eswatini sugar.
for multiple grower associations,
has been agreed to by the
SACGA, the Department of Trade,
Industry and Competition (dtic)
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. Diversification is vital for
the future of sugar producers
and power generation will be an
important part of that.
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. ■
KWAZULU-NATAL BUSINESS 2020/21
28

Forestry and paper
Mondi and Sappi are global giants.
OVERVIEW
Sector Insight
Mondi’s primary listing has
moved to London.
The Mondi Group, which has distinct KwaZulu-Natal roots, has
grown into an international behemoth with 26 000 employees
and operations in more than 30 countries. In 2019
Mondi announced that its primary listing will from now on be
in London and the JSE will carry the company’s secondary listing. The
company, whose forestry operations are shown here, will spend more
than R8-billion on its South African operations in the period to 2023.
Mondi’s Merebank Mill produces a range of office paper products
including the well-known brand, Mondi Rotatrim. Uncoated woodfree
reels are manufactured for the South African and Sub-Saharan African
markets. At Richards Bay, eucalyptus fibre is used to make a premiergrade
bleached hardwood pulp and a white top kraft linerboard is also
produced. Major investments at Richards Bay have not only increased
the number of products being made, but improved air quality, reduced
water consumption and reduced the amount of solid waste produced
on the site.
The export of about one-million tons of dissolving wood pulp
earned Sappi the winner’s trophy in the “Large Exporter” category
at the KZN Exporter of the Year Awards in 2019. Approximately 220
TEU equivalent containers (20-foot containers) of Sappi products pass
through the Durban Port every day.
The long-running awards ceremony is hosted by the Durban
Chamber of Commerce. Sappi was also a winner at the first KwaZulu-
Natal Investor Awards, a Trade and Investment KZN (TIKZN) event. On
that occasion Sappi won the category “Investor operating in KZN with
a Global Footprint.”
Sappi has a considerable global footprint:19 production facilities
on three continents (of which five are in Southern Africa) and 12 800
employees in over 35 countries.
Sappi’s Stanger Mill is
situated close to sugar fields
from which it takes bagasse
(dry sugar cane pulp) for use in
its production processes. Typek
office paper is made at this
mill, which has the capacity to
produce 80 000 tons of paper
and 30 000 tons of tissue.
At the company’s Tugela Mill
up to 200 000 tons per annum
of containerboard (corrugating
medium) can be manufactured
from recycled and virgin fibre.
It also produces 25 000 tons of
lignosulphonate in powder form
and 35 000 tons per annum of
liquid product.
A big focus for Sappi is
dissolving wood pulp which
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.
The giant Sappi Saiccor
mill 50km south of Durban is
the world’s biggest manufacturer
of dissolving wood pulp.
The mill’s capacity is being
increased to 890 000 tons via
a multi-year investment project
called Project Vulindlela.
A total of R7.7-billion has been
allocated to the project which
will result in more than 2 000
construction jobs and about 120
full-time jobs.
29 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
EXTENDED PRODUCER RESPONSIBILITY MAKES THE CIRCULAR ECONOMY BIGGER AND BETTER
By paying their dues towards an extended Pulp for rayon, sponges, and cellophane. Many
producer responsibility (EPR) programme, paper of these products are recyclable, which means
manufacturers, importers and brand owners can they can be diverted from landfill and made into
extend their producer responsibility beyond their new products. Process waste is used to make
own factories and their customers’ hands. compost, biochar and fertiliser for the agricultural
Pulp and paper products are made from sector and the young seedlings that
sustainably farmed trees. Certified to international are destined to replace
forestry standards, South Africa’s plantations are harvested trees.
the source of thousands of everyday products.
Copy paper. Newspapers. Tissue. Packaging. www.fibrecircle.co.za
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 container-board
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.
Timber
The National Department
of Agriculture, Forestry and
Fisheries reports that South
Africa has a shortage of sawn
timber. TWK has announced that
it wants to buy 11 000 hectares
of forest land to support its
woodchip sales and timber
exports. TWK, which listed on
ZAR X in 2017, runs a woodchip
production and export facility
in Richards Bay, with an annual
capacity of 900 000 tons of woodchips. Two kinds of woodchip are
produced: Acacia mearnsii and mixed eucalyptus. Exports are primarily
to pulp and paper producers in India, China and Japan. Demand for
woodchips was exceptionally high in the first half of 2019, but this led
to an oversupply and a dip in prices in the second half of the year.
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.
Timber plantations are found in five parts of the province: northern
KwaZulu-Natal, Midlands, southern KwaZulu-Natal, Zululand and
Maputaland. Close to half-a-million 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.
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 timber-marketing entity with 1 800
shareholding members, representing a total area of 300 000ha. R&B
Timber Group has three pole treatment plants and is headquartered in
Harding. Natal Forest Products, a Richmond-based company, is part of
the R&B Group. Flaxton Treated Timbers operates out of Ixopo. ■
Online Resources
Forestry South Africa: www.forestry.co.za
KwaZulu-Natal Department of Agriculture and Rural Development:
www.kzndard.gov.za
Paper Manufacturers of South Africa: www.thepaperstory.co.za
South African Institute of Forestry: www.saif.org.za
Technical Association of the Pulp and Paper Industry of South Africa:
www.tappi.org
KWAZULU-NATAL BUSINESS 2020/21
30

PRODUCER RESPONSIBILITY ORGANISATION
Is your brand going
to the dump?
Take responsibility for
your product's end-of-life.
Paper and paper packaging producers pay
voluntary extended producer responsibility fees.
Be part of the solution. Join Fibre Circle.
www.fibrecircle.co.za
• PAPER • BOXES • BAGS • BEVERAGE CARTONS • LABELS • PAPER CUPS • CARTONS • SACK KRAFT •

OVERVIEW
Mining
Titanium dioxide is made from minerals mined in northern KwaZulu-Natal.
The crisis affecting South Africa’s power utility, Eskom, is causing
South32, the Australian owners of the Hillside aluminium
smelter, to rethink their operations there. Some analysts
have suggested that part of the reason that Eskom is in crisis
is the bad pricing arrangements that were signed with the previous
owners of the smelter. If the advantageous rates that used to apply
are not repeated when the price is negotiated again in 2020, the
business model will have to change. In 2019 about 400 workers took
early retirement or voluntary retrenchment packages.
Images: RBM Mines
Most of the product from the smelter (high-quality 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 ArcelorMittal in Newcastle and Safa Steel’s metal-coating
factory in Cato Manor. 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 in Mpumalanga and
Limpopo provinces. Tata Steel did not have its own mines.
Online Resources
Geological Sciences, University of KZN: www.geology.ukzn.ac.za
Minerals Council South Africa: www.mineralscouncil.org.za
National Department of Mineral Resources: www.dmr.gov.za
Sector Insight
The Hillside aluminium
smelter is grappling with
electricity issues.
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.
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.
Finnish company Metso is
spending 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. ■
KWAZULU-NATAL BUSINESS 2020/21
32

Engineering
The engineering sector needs a reliable supply of steel.
One of the largest independent wire manufacturers in the
country, Hendok Group, is steadily increasing its exports to
other African countries. With more than 1 000 employees
at the factory in the Phoenix Industrial Park in Durban, the
company makes a wide variety of wires and is the country’s biggest
producer of nails. ArcelorMittalSA is Africa’s biggest steelmaker and it
has a plant at Newcastle, but tough times in the steel business have
meant that the company has shut down some of its facilities. The first
to be shuttered was Saldanha in the Western Cape and an analysis of
the profitability of other centres is underway.
Western Aqueduct project. Image: WK 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. Both ports are expanding and will continue to attract engineers.
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.
A big project that has created a lot of work for engineers is the multiyear
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
Online Resources
Consulting Engineers South Africa: www.cesa.co.za
Engineering Council of South Africa: www.ecsa.co.za
Southern African Institute for Industrial Engineering: www.saiie.co.za
South African Wire Association: www.sawa.co.za
OVERVIEW
Sector Insight
The School of Engineering
at UKZN offers great variety.
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.
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.
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. ■
33 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
Oil and gas
A huge LPG storage facility has been built at Richards Bay.
The supply of liquid petroleum gas (LPG) is set to be made easier
and more reliable with the erection of the 22 600-ton
Mounded LPG Facility at Richards Bay. Bidvest Tank Terminals
has constructed the R1-billion storage facility for Petredec,
which trades, transports and distributes LPG and other commodities.
South Africa’s annual consumption of LPG, currently at 400 000 tons,
is expected to rise to 600 000 tons. If a private partner can be found,
a liquid natural gas (LNG) plant will produce 2 000MW at 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 world’s four largest
LPG storage tanks at the
Bidvest Tank Terminals
site in Richards Bay.
Image: Bidvest
The National Department of Mineral Resources and Energy (DMRE)
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 LNG.
An indication of the scale of activity in Mozambique came in 2019
when Anadarko Petroleum, a US company, signed off on a $20-billion
project to build an LNG plant. The projected spin-offs for the South
African economy are estimated to top R7-billion.
Online Resources
National Energy Regulator of South Africa: www.nersa.org.za
Petroleum Agency SA: www.petroleumagencysa.com
South African National Energy Association: www.sanea.org.za
South African Petroleum Industry Association: www.sapia.co.za
Sector Insight
Italian company Eni is
looking for hydrocarbons.
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 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.
Getting fuel to the province
of Gauteng is the key mission of
the new multi-purpose pipeline
(NMPP). Refined products such
as jet fuel, sulphur diesel and
both kinds of octane petrol
are carried. The infrastructure
of Transnet Pipelines is said
to reduce the number of fuel
tankers on South African roads
by about 60%.
KwaZulu-Natal is home to
two major oil refineries and is
the first link in the pipeline chain
that links Gauteng province, the
industrial heartland of South
Africa, with vital fuels. The Port
of Durban handles 80% of South
Africa’s fuel imports. KwaZulu-
Natal is thus a key player in the
country’s oil and gas industry. ■
KWAZULU-NATAL BUSINESS 2020/21
34

Construction and property
OVERVIEW
Durban’s beachfront promenade now extends from the harbour to Blue Lagoon.
A
private company is tackling urban regeneration in Durban, one
building at a time. Serial property investor Jonny Friedman
of Urban Lime has carefully selected certain precincts with
potential for a mix of uses, including offices and accommodation.
Pioneer Place, Durban Club Chambers, 320 Pixley and Florida Road
are among their investments. Friedman is also invested in converted
warehouses in London and various Cape Town properties.
This private initiative chimes with a public programme that aims
to make Durban’s inner city “Africa’s leading, most vibrant, liveable,
walkable City Centre”. This is the Inner City Local Area Plan (LAP)
for Durban. Developed for the eThekwini Municipality by a Joint
Venture called IPPU, which comprises Iliso, TPI, PMSA, UrbanEcon
including Cox Architecture, Urban Solutions, Urban Earth, Jo Lees
and Joe Kitching. A major milestone was reached in November 2019
when the beachfront promenade extension reached the harbour.
This means that residents anywhere in the city can now step onto the
promenade, from the harbour in the south to Blue Lagoon in the north.
The project began in early 2018 and cost R400-million.
The Point Waterfront Development (directly behind the latest
extension to the promenade) is a major project that is 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 offers a 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, while other major projects in the inner city include the
Warwick Junction transport interchange and 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.
According to the organisers of the 2019 KZN Construction Expo,
infrastructure will attract more than R200-billion in investment over
seven years and R35-billion will be spent over 15 years at the Port
Waterfront development. The King Shaka International Airport and
Dube TradePort are also attracting property investments.
Online Resources
Construction Industry Development Board: www.cidb.org.za
Master Builders Association KwaZulu-Natal: www.mba-kzn.co.za
SA Estate Agency Affairs Board: www.eaab.org.za
SA Institute of Valuers: www.saiv.org.za
Sector Insight
Durban could become the
continent’s most liveable city.
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 Developments (THD)
launched the nTshongweni
Urban Development on either
side of the busy N3 highway
west of the city in 2018. The
Cornubia project covers 1 300ha
about 7km from the airport
and encompasses indust-rial,
commercial, residential sections.
The southern part of the project
will cater for 24 000 homes,
industrial development and
more than one-million square
metres of commercial floor
space, all complemented by
public open spaces (430ha) and
social and community facilities.
KwaZulu-Natal has a number
of brick companies and four
cement factories. Three of these
are run by NPC at Simuma,
Durban and Newcastle, and
the company has a further six
sites for concrete and two for
aggregate. NPC is part of the
Intercement group. Lafarge
has several aggregate quarries
and eight Readymix plants
around the province. The
company’s grinding operation
in Richards Bay closed in 2017. ■
35 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
Tourism
Hotel groups are investing in new properties and refurbishment.
Moses Mabhida Stadium. Image: Kevin Sawyer
A
dventures don’t come more hair-raising than throwing yourself
into the void above a sports stadium, but that’s what
thousands of visitors to the Moses Mabhida Stadium have
been doing for a decade.
The SkyCar, a funicular trip over the top of the roof, is under repair
but bungy-jumping is still very popular, as is the “Adventure Walk” on
the south side of the stadium. The 56 000-capacity stadium is home
to a professional soccer team and forms part of a sporting precinct
that includes the province’s professional rugby franchise, the Kings Park
Stadium, and has greatly increased KwaZulu-Natal’s ability to host big
events such as the Fact Durban Rocks and the Monster Jam.
The other major events asset in the province’s largest city is the
Durban International Convention Centre (Durban ICC). A major
international football conference was due to be held at the venue in
March 2020, with the FIFA secretary-general slated to speak. However,
the global health scare related to the Covid-19 virus saw that event
(and many others) postponed or cancelled.
The 2019 Africa’s Travel Indaba attracted 342 first-time buyers out
of a total of 1 663 buyers from more than 80 countries, cementing the
event as a major date on the tourism industry’s calendar.
The meetings, incentives, conference and exhibition sector (MICE)
is a priority sector for the provincial government. The Convention
Bureau has booked dozens of events and conferences since 2012,
bringing more than R3-billion into the provincial economy. More
than 7 000 delegates are annually attracted to Africa’s Travel Indaba
Sector Insight
Moses Mabhida Stadium
has become an iconic
symbol of KwaZulu-Natal.
to exhibit South Africa’s assets
to international tour operators.
The city has secured the Indaba
until 2022.
A number of new initiatives
are expanding options for visitors.
These include the creation
of a new Cruise Terminal (dealt
with separately in this journal),
the development of caves at
Ngodini and Ndumo, and the
upgrading of the Mandela
Capture Site near Howick.
Another potential growth
area is health tourism. Upwards
of seven-million people travel the
world annually for procedures,
and South Africa is well placed
to receive a percentage of this
KWAZULU-NATAL BUSINESS 2020/21
36

OVERVIEW
market. Richards Bay has hosted
a conference on issues such as
investment, training and the
development of products for this
growing sector. The combined
contribution of retail and tourism
to provincial GDP is 14%.
Hotels
Research by Tourism KwaZulu-
Natal shows that the coastal
province consistently has the best
hotel occupancies in the country.
Tsogo Sun 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.
Tsogo Sun has four other
hotels on the Golden Mile and
six hotels 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 “megahotel”
was created with the
amalgamation of the Southern
Sun North Beach and Southern
Sun Elangeni hotels.
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 three-star 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 the hotel and the
shopping mall sections of the planned complex are going ahead.
A 207-room Hilton Garden Inn planned to be operating at
Umhlanga Arch in 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.
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 hosts the Christine Martin School of
Food and Wine.
Drakensberg Amphitheatre.
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. ■
Online Resources
Durban International Convention Centre: www.icc.co.za
Ezemvelo KZN Wildlife: www.kznwildlife.com
Moses Mabhida Stadium: www.mmstadium.com
Tourism KwaZulu-Natal: www.zulu.org.za
37 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
Manufacturing
New factories are being built at Dube TradePort and Cornubia.
A
new plant to make washing machines has created 75 jobs
at the Durban plant of white-goods manufacturer Defy. The
R121-million investment is part of a R1.2-billion investment
programme which Turkish company Arçelik Global has been
following since it bought Defy in 2011. The company has another
plant in at Ezakheni (near Ladysmith) and one in the Eastern Cape.
Indian generic drug manufacturer Cipla is to build a new facility
at Dube TradePort to complement its existing factory in Durban.
LG Electronics South Africa has opened a R21-million factory and
distribution centre in Cornubia, north of Durban.
Expansion of production normally heralds an uptick in the
economy. Unfortunately, the fact that more aluminium products are
going to be made by Hulamin’s extrusion facility in Pietermaritzburg
reflects the fact that the company has closed one of factories in
another province. The company believes its restructuring is working
well, and its beverage business is doing well. Hulamin also makes rolled
products (pictured) at Edendale, Pietermaritzburg and at Camps Drift.
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 Durban. iLembe District Municipality is
intended as the renewable energy hub of the province, with renewable
energy components manufacturing as a key subsector.
Online Resources
Aluminium Federation of South Africa: www.afsa.org.za
Chemical and Allied Industries’ Association: www.caia.co.za
Enterprise iLembe: www.enterpriseilembe.org.za
Manufacturing Circle: www. manufacturingcircle.co.za
Plastics SA: www.plasticsinfo.co.za
Sector Insight
Defy is hiring.
There are 219 clothing
companies in the province.
Textile manufacturer Africa
Bespoke Apparel launched
its R81-million factory in
Verulam, while Canvas and Tent
Manufacturing has more than
400 employees in Ladysmith.
Carpet manufactur-ers Belgotex
Floorcoverings and Ulster Carpets
have facilities in Pietermaritzburg
and Durban respectively, while
Böhler Uddeholm produces
tooling materials and welding
consumables in Pinetown.
The chemicals and petrochemicals
subsector makes up
17% of the province’s manufacturing
output, with industrial
chemicals accounting for nearly
a third. Two large oil refineries
and a sophisticated sugar milling
and refining industry underpin
the provincial chemical manufacturing.
Steel and aluminium
are other heavy manufacturing
products. Sappi Saiccor’s
Umkomaas plant is the world’s
biggest producer of specialised
cellulose, with production edging
upwards every year towards full
capacity of more than 800 000
tons per annum. 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. ■
KWAZULU-NATAL BUSINESS 2020/21
40

Automotive
Toyota is to spend R2.4-billion on a new vehicle line.
In a year in which South Africa’s total
vehicle exports topped 350 000, it was
perhaps not surprising that Durban’s Car
Terminal boasted a record of putting
more than 500 000 fully-built-up units (FBUs)
through the port in 2018/19. The figure includes
FBUs that are not motor vehicles and
includes vehicle imports.
Toyota’s popular Fortuner is exported at a
rate of about 150 per month. The company’s
plant, just a few kilometres south of the
harbour at Prospecton, is to receive a R2.4
billion investment injection in order to produce
a new passenger vehicle from the end of 2020. The Toyota Hybrid
Synergy Drive vehicle will be produced as a variant. Toyota sells about
a quarter of the vehicles sold in South Africa, and accounts for the same
proportion of export volumes. The company’s total investment of R4.2-
billion between 2019 and 2021 includes other manufacturing projects
and a huge increase in warehousing capabilities.
The other large-scale original equipment manufacturer in the
province is Bell Equipment. Between the Toyota plant and the Richards
Bay facility of heavy-equipment manufacturer Bell Equipment,
upwards of 11 000 people are employed. In 2019 Bell won the
“Major Contributor to Innovation and Technological Advancement
in KZN” award and the “Exporter of the Year” award. Exports to more
than 80 countries make up about 40% of the company’s turnover
and local content of those exports is at 70%. Bell is best known for
its heavy equipment which is primarily used in the mining and
construction sectors.
Another manufacturer of earthmoving equipment is Dezzi, with
18 offices and branches. In 2018 AIH Logistics started assembling
Mahindra and Bolero bakkies from kits imported from India on a 5
000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant
at Hammars-dale has increased capacity to 150 000 used truck tyres
per year and should exceed 200 000 soon, while Powerstar assembles
Online Resources
Automotive Industry Development Centre: www.aidc.co.za
Durban Automotive Cluster: www.dbnautocluster.org.za
National Association of Automobile Manufacturers of South Africa
(NAAMSA): www.naamsa.co.za
National Association of Automotive Component and Allied
Manufacturers (NAACAM): www.naacam.co.za
Sector Insight
Bell Equipment is
scooping awards.
OVERVIEW
Image: Bell Equipment
trucks in Pietermaritzburg on a
site formerly used by Super
Group. KwaZulu-Natal’s substantial
automotive components
sector includes large manufacturers
such as GUD Filters, while
39 companies (with 17 000
employees) are members of the
Durban Automotive Cluster.
Trade and Investment
KwaZulu-Natal estimates that
the province’s component
automotive manufacturers
enjoy a combined turnover
approaching R10-billion.
The Behr Group has an
air-conditioning and cooling
systems factory 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. ■
41 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
Energy
The sugar industry is ready to sell excess power.
Sugar plant. Image: Illovo Sugar
South Africa’s shortage of reliable electricity supply came into
sharp focus in 2019. The country’s sugar industry, which is particularly
strong in KwaZulu-Natal, says it generates far more
power than it needs but national government is hesitating in
allowing companies to sell to the grid.
Encouraging signs were given that government was moving in
this direction in the President’s State of the Nation Address and in
remarks made by the Minister of Minerals Resources and Energy at the
Investing in African Mining Indaba in February 2020, but no licences or
concrete proposals were immediately forthcoming.
The managing director
of Illovo Sugar SA, Mamongae
Mahlare, told the Sunday
Times in March that the sugar
industry is in real need of
some other source of income
to offset tough times. Selling
energy to the grid (and
investigating biofuel and
bio-energy) are “key” to the
sector’s future, she told the
newspaper. At the company’s
Eswatini mill, Ubombo, it has
a commercial supply agreement
with the Eswatini
Electricity Company.
The province’s other
sugar giant, Tongaat Hulett, produces between 12MW and 14MW of
power at its mills and believes that the national sugar industry could
generate between 700MW and 900MW.
A 17MW biomass project represents the province’s only approved
project in terms of the national Renewable Energy Independent Power
Producer Procurement Programme (REIPPPP).
An open cycle gas turbine plant at Shakaskraal in the iLembe
District Municipality can be converted to gas-fired technology, a
method which energy planners are encouraging. The 670MW plant
came on stream in 2017. Its project company, Avon Peaking Power,
Online Resources
National Department of Energy: www.energy.gov.za
National Energy Regulator: www.nersa.org.za
South African National Energy Development Institute:
www.sanedi.org.za
Sector Insight
Richards Bay hopes to
attract LNG investors.
is jointly owned by a community
trust, Mitsui (Japan), Legend
Power Solutions (South Africa)
and ENGIE of France.
As part of the provincial
government’s strategy to
boost regional development,
the iLembe District has been
named as an Industrial
Economic Hub (IEH) for the
renewable energy sector.
Khanyisa Projects has set
up 26 biodigesters which
produce gas for cooking at
Ndwedwe in the iLembe District.
The project forms part of the
Working for Energy programme
of the South African National
Energy Development Institute
(SANEDI) which promotes the
use of sustainable clean energy
in rural areas.
The Richards Bay Industrial
Development Zone (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.
Biomass technology is at the
centre of the conversion scheme
of South African Breweries at
its Prospecton plant south of
Durban. Methane-gas emissions
from a nearby effluent plant are
piped to the plant where they
are converted to electricity. ■
KWAZULU-NATAL BUSINESS 2020/21
42

Water
Two new dams are under construction.
Two new dams will add 800-million litres of water per day
to the available supply in KwaZulu-Natal. As part of the lower
uMkhomazi bulk water scheme, utility Umgeni Water
will spend about R26-billion on the Smithfield Dam and
R2.4-billion on the Ngwadini Dam.
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 water-treatment plants and two waste-water 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.
Clearing pit toilets in remote rural areas and on steep inclines
presents an engineering challenge. In response to a Water Research
Commission project on the subject, Partners in Development, a
Pietermaritzburg-based engineering and project management
company, has developed the eVac pit-emptying machine. It’s
lightweight, mobile and has strong sucking power.
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.
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 to
South32’s Hillside aluminium smelter in the same town.
The area north of the Durban central business district is
one of the fastest-growing urban areas in South Africa, with a
Online Resources
Mhlathuze Water: www.mhlathuze.co.za
National Department of Water and Sanitation: www.dwa.gov.za
Partners in Development: www.pid.co.za
Umgeni Water: www.umgeni.co.za
Water Research Commission: www.wrc.org.za
OVERVIEW
Sector Insight
Pietermaritzburg engineers
are tackling pit toilet
clearance.
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.
Image: Umgeni Water
The multi-year, R250-
million Northern Aqueduct
Augmentation project was
initiated in 2014 and the fifth
phase of the project is underway.
This will provide water for
Durban North, Umhlanga,
Newlands, KwaMashu, Phoenix
and Cornubia.
Nedbank sponsors the
clearing of alien vegetation in
the country’s water-catchment
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. ■
43 KWAZULU-NATAL BUSINESS 2020/21

OVERVIEW
Banking and financial services
The Port of Durban will expand with a loan from the new Brics bank.
The Brics New Development Bank has made a $200-million loan
for the expansion of the container terminal in Durban. The
busy port is currently stretched beyond capacity and waiting
time for trucks can be extremely long.
Activist groups in Durban’s southern suburbs are opposing the
loan and the expansion, saying that further development will increase
pollution in the area and lead to even more dangerous traffic congestion.
Up the coast at Richards Bay, the World Bank’s International Finance
Corporation (IFC) has committed $2-million to a feasibility study on the
construction of a liquefied natural gas (LNG) storage and regasification
terminal. The study’s costs are shared with Transnet and a private investor
will be sought if the feasibility study is positive.
Durban Container Terminal.
Image: Transnet
In 2017 Tyme Digital received a licence to run a bank. By early
2019, TymeBank was available in 500 Pick n Pay and Boxer stores and
more than 50 000 customers had an account. Tyme stands for Take
Your Money Everywhere; the bank does not have a branch network.
African Rainbow Capital began as the venture’s BEE partner but in 2018
bought out the Commonwealth Bank of Australia.
Second to market among the country’s new banks was Discovery
Bank, which officially launched in March 2019. Discovery Bank will apply
the behavioural model it uses in its health business to reward good
financial behaviour. The Discovery group is already a giant on the JSE
with a market value of R83-billion and access to millions of customers.
Online Resources
Association for Savings & Investment South Africa: www.asisa.org.za
Financial Sector Conduct Authority: www.fsca.co.za
Insurance Institute of South Africa (KwaZulu-Natal): www.iikzn.co.za
South African Institute for Chartered Accountants: www.saica.co.za
Sector Insight
The International Finance
Corporation is investigating
energy options.
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 required.
The Chartered Institute of
Government Finance, Audit and
Risk Officers (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 courses.
The South African Institute
for Chartered Accountants
International provides training
in financial reporting standards
for SMMEs while the Insurance
Institute of KwaZulu-Natal
(IISA) holds regular education
workshops. The institute’s
mentorship programme is run in
association with the Musifunde
Training Centre. ■
KWAZULU-NATAL BUSINESS 2020/21
44

Education and training
Maths and science is in focus.
AMaths and Science School of Excellence is due to open in
2020 at La Mercy, north of Durban. The long-planned project
(pictured) on the site of a closed primary school is back
on track and is part of a wider provincial programme that
includes a Special School for Autism (2020) and two Schools of Excellence
scheduled to be started in 2021; for Agriculture
in Umgungundlovu and Maritime studies in Umlazi.
KwaZulu-Natal has 2.8-million school pupils,
many of whom are in rural areas. Transport is
provided to 350 schools, covering 59 000 pupils, and
2 400 bicycles have been made available under the
Shovakalula programme.
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 University of KwaZulu-Natal has opened a new
Chemistry Postgraduate Research Facility at the School of Chemistry
and Physics in Pietermaritzburg.
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 a campus in Musgrave, Durban.
There are seven schools in KwaZulu-Natal operating under Curro
brands. Advtech, the other big private company in the sector, already
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.
Online Resources
KwaZulu-Natal Department of Education: www.kzneducation.gov.za
National Department of Higher Education and Training:
www.dhet.gov.za
National Research Foundation: www.nrf.ac.za
Training
OVERVIEW
Sector Insight
Majuba TVET College is a
new Centre of Specialisation
for boiler-making.
Image: KZN Dept of Education
KwaZulu-Natal has nine Technical
and Vocational Education
and Training (TVET) Colleges with
a total enrolment around 80 000.
Coastal KZN TVET College gives
students practical experience
through facilities such as the
Nongalo Industrial Park. The
college hosts the Samsung
Engineering Academy, a Tooling
Centre of Excellence and
a manufacturing plant for
sanitary towels. The college has
several sites on the South Coast
and caters for 15 400 students.
Majuba TVET College has recently
been appointed as a Centre of
Specialisation for boiler-making.
The Mnambithi TVFET College is
located in the Battlefields Route
tourism area and offers National
Diploma courses in tourism and
other qualifications. A satellite
campus operates at Estcourt. ■
45 KWAZULU-NATAL BUSINESS 2020/21

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INDEX
INDEX
Africa Biomass Company …....................................................................................................................................9, 27
Citiq Prepaid............................................................................................................................................................................IBC
Chartered Institute of Finance Audit and Risk Officers (CIGFARO)..................................................... 11
Durban Chamber of Commerce and Industry ................................................................................................... 2
Durban International Convention Centre (Durban ICC) ..................................................................... OBC
Fibre Circle ........................................................................................................................................................................ 30, 31
Indaba Lodge, Richards Bay........................................................................................................................................... 38
Invest Durban ........................................................................................................................................................................IFC
Metropolitan.......................................................................................................................................................................4, 46
Nedbank .............................................................................................................................................................................20-23
Petroleum Agency South Africa ................................................................................................................................... 6
Transnet Pipelines ................................................................................................................................................................ 16
KWAZULU-NATAL BUSINESS 2020/21
48

AFRICA’S SMARTEST
CONVENTION CENTRE
The Durban ICC has always aimed
to position itself as “Africa’s Leading
Convention Centre” but having
invested in the latest, cutting-edge
meeting technology, the centre is
re-inventing itself as the continent’s
leading high-tech convention
centre. “Without moving away from
our existing market positioning
we are adding this competitive
edge and aiming to also be
recognised as “Africa’s Smartest
Convention Centre”, said Durban
ICC Chief Executive Officer, Lindiwe
Rakharebe.
The Centre is offering a range of innovative
solutions such as Hybrid events, Livestreaming,
Video-on-Demand, and Remotepresentation
events. For the uninitiated, a
Hybrid Event is simply the combination of a
traditional face-to-face event with an online
component, which extends the reach of
the conference to a wider audience using
technology like live-streaming.
The best part is that companies are taking
advantage of this kind of event solution even
during the lockdown by using the technology
on offer and not having to wait until live
events fully start up again. Some are even
able to reach much larger audiences by
taking their events online than they would
have with their traditional live event.
The virtual events offer a range of benefits, for instance, the
digital delegate can:
• Get all the content of the live event from the comfort and safety of
their homes
• Watch the speakers via the video feed and view any presentations
via the picture in picture mode
• Engage remotely with the event in real time via the event’s chat or
social media channels
• Share the content with others in their organisation directly without
having to repeat it themselves second-hand to their colleagues
• Choose to consume the event content at a later time if that suits
their schedule
• View selected elements from the event programme which pertain to
their area of interest.
While this is just the latest addition to
the ever-evolving range of tech offerings
available at the Durban ICC, as the Centre
has always taken pride in being on the
leading edge of the latest developments in
this space. The Durban ICC hosted its own
live-stream event in September 2019 and
has subsequently run several successful
events of this kind for its clients. “There is
no shortage of new innovations out there,
but it’s our job to incorporate the meaningful
ones which make our clients’ lives easier
into the Durban ICC customer experience”,
added Scott Langley, Durban ICC’s Director
of Marketing, Sales and Events.
The Durban ICC boasts the country’s fastest
convention centre Wi-Fi network and that
which is able to support the most concurrent
users. It was also the first centre in the
country to offer indoor Google Maps and to
incorporate the ‘whatthreewords’ navigation
system into their complex. The Centre has
also invested heavily in its massive video
screens and interactive digital totems in the
past year.
No wonder it is also being recognised as
Africa’s Smartest Convention Centre.