KwaZulu-Natal Business 2020-21 edition

The 2020/21 edition of KwaZulu-Natal Business is the 12th issue of this unique 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.

The 2020/21 edition of KwaZulu-Natal Business is the 12th issue of this unique 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.


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<strong>2020</strong>/<strong>21</strong> EDITION<br />





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Let’s come together and heal as a nation.<br />

Let’s focus on Renewing, Restoring and Rebuilding<br />

successful partnerships and investment opportunities so we<br />

can get back to promoting our city as the ideal destination<br />

for business and pleasure to the rest of the world.<br />

Your support coupled with our world-class infrastructure,<br />

innovative business environment and ever evolving<br />

investment opportunities, means we can get back to<br />

‘connecting continents’ in no time.<br />

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Tel: +27 31 311 4227<br />

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

web: invest.durban<br />


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The city of<br />

Durban (eThekwini<br />

Municipality) is South<br />

Africa’s second most<br />

important economic<br />

region<br />

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Extensive first-world<br />

road, rail, sea and air<br />

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Dube<br />

TradePort<br />

and King<br />

Shaka<br />

International 1<br />

Airport - 60-<br />

year Master<br />

Plan - driving<br />

growth of<br />

aerotropolis,<br />

or airport<br />

city<br />

001<br />

11<br />

01<br />

00<br />

Rated in top 5<br />

‘Quality of Living’<br />

cities in Africa and<br />

Middle East by<br />

Mercer Consulting in<br />

2015<br />

Named one of the<br />

New 7 Wonders Cities<br />

by the Swiss-based<br />

New 7 Wonders<br />

Foundation in 2014<br />

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<br />

<br />

#In<strong>Business</strong>ForABetterWorld<br />

2<br />






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

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

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<br />

of the one eThekwini of the oldest business and largest community metropolitan and to chambers facilitate in and Africa. promote As a business-based<br />

economic growth<br />

in the and region member-focused in partnership organisation, with key stakeholders.<br />

we work to protect and promote the interests<br />

of the eThekwini business community and to facilitate and promote economic growth<br />

in the region in partnership with key stakeholders.<br />

VISION<br />

VISION<br />

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

To be In recognised <strong>Business</strong> for as a Better a world-class World business chamber and a united voice of<br />

business To be in recognised the eThekwini as a world-class Municipal area business and chamber beyond. and a united voice of<br />

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



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

in the To eThekwini contribute Municipal towards creating area and a conducive beyond, as economic well as and providing business services environment<br />

specifically in the eThekwini relevant Municipal to small and area large and beyond, businesses as well operating as providing in the services region.<br />

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


The Durban<br />

The Durban<br />

Chamber<br />

Chamber<br />

represents<br />

represents<br />

leading<br />

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multi-nationals,<br />

multi-nationals,<br />

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large corporates,<br />

corporates,<br />

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small,<br />

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Join Join the Durban the Durban Chamber and and take take advantage of of our exclusive member benefits<br />

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POLICY<br />

POLICY<br />





Legislation and By-laws<br />

Legislation and By-laws<br />

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

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

Marketing<br />

Regulations<br />

Analysis and Research<br />

Marketing Analysis and Research<br />






<strong>Business</strong> and Personal Credit Reports<br />

<strong>Business</strong> and Personal Credit Reports<br />

Networking Opportunities<br />

Networking<br />

Company<br />

Opportunities<br />

Registration<br />

Company Workshops Registration and Seminars<br />

Workshops <strong>Business</strong> and Consultation Seminars<br />

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






Durban Chamber Online Newsletter<br />

Durban Chamber Online Newsletter<br />

Dispute Resolution<br />

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Policy Focus<br />

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Weekly Update<br />

Policy Focus Weekly Update<br />

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Petroleum Agency SA is a key<br />

player in a vital sector<br />

South Africa’s oil and gas exploration and<br />

production sector an excellent investment<br />

As stated in the National Development Plan (NDP), the<br />

government’s intention is to “enable exploratory drilling<br />

to identify economically recoverable coal seam and<br />

shale gas reserves, while environmental investigations<br />

will continue to ascertain whether sustainable<br />

exploitation of these resources is possible.<br />

“If gas reserves are proven and environmental concerns<br />

alleviated, then development of these resources and<br />

gas-to power projects should be fast-tracked.”<br />

The plan also calls for the need to incorporate a greater<br />

share of gas in South Africa’s energy mix, through<br />

importing liquefied natural gas (LNG), using shale gas if<br />

reserves prove commercial, and developing infrastructure<br />

for the import of LNG, mainly for power production,<br />

over the short to medium term.<br />

Petroleum Agency SA plays an important role in developing<br />

South Africa’s gas market by attracting qualified<br />

and competent companies to explore for gas in the<br />

country, as well as monitoring and regulating their<br />

activities. In addition to ensuring operators always<br />

comply with the law, a major area of focus is increasing<br />

the inclusion of historically disadvantaged South<br />

African-owned entities in the upstream industry. South<br />

Africa needs large discoveries of indigenous gas as well<br />

as fair access to opportunities and social licence to<br />

develop a healthy gas market.<br />

Currently, natural gas supplies about just 3% of South<br />

Africa’s primary energy. A significant challenge facing<br />

the development of a major gas market in South Africa<br />

is the extreme dominance of coal as a primary energy<br />

source, and industry’s historic reliance on coalgenerated<br />

electricity.<br />

A lack of extensive gas transport and reticulation<br />

infrastructure goes hand in hand with this, while<br />

other challenges include uncertainty about volumes of<br />

indigenous gas available to industry; security of supply;<br />

switching and conversion costs; gas pricing; and negativity<br />

around the ongoing use of fossil fuels. End users<br />

require certainty before committing, while explorers<br />

look for a guaranteed market.<br />

On a more positive note, opportunities for gas lie in the<br />

realisation of South Africa’s NDP and the Integrated<br />

Resource Plan (IRP). Both call for indigenous hydrocarbons<br />

– conventional and unconventional – and<br />

independent power production to play an increasing<br />

role in the nation’s energy mix.<br />

The national power utility also intends to replace coalfired<br />

power stations with gas-fired counterparts, in line<br />

with the vision of the NDP. The advent of gas-fired power<br />

stations will represent a ready, indigenous market for<br />

operators that make discoveries of gas in South Africa,<br />

ensuring it will be far easier to monetise smaller discoveries<br />

that may otherwise have remained undeveloped.<br />

As custodian, Petroleum Agency SA ensures that<br />

companies applying for gas rights are vetted to make<br />

sure they are financially qualified and technically<br />

capable. Applicants also need to have a good track<br />

record in terms of oil and gas exploration activity, as<br />

well as regard for the environment. This applies to both<br />

local and foreign companies. Oil and gas exploration<br />

requires enormous capital outlay and can represent<br />

a risk to workers, communities and the environment.<br />

Applicants are therefore required to prove their capabilities<br />

and safety record and must carry insurance for<br />

environmental rehabilitation.

Driving South Africa’s emerging gas sector while ensuring a well-regulated<br />

and responsible environment is a key mandate of Petroleum Agency SA, as is<br />

assisting operators with monetising smaller discoveries that may otherwise<br />

remain undeveloped, through advertising these opportunities to potential partners.<br />


A diverse upstream industry<br />

contributing to energy security<br />

through sustainable growth in<br />

exploration and development<br />

of oil and gas.<br />


To promote, facilitate and regulate<br />

exploration and sustainable develop-<br />

ment of oil and gas contributing<br />

to energy security in South Africa.<br />


In addition, all planned activities can only be carried<br />

out after completion of an environmental impact<br />

assessment and under an approved environmental<br />

management plan, after consultation with the public<br />

as well as interested and affected parties. Explorers<br />

are also required to contribute to skills development<br />

through the agency’s Upstream Training Trust.<br />

Oil and gas exploration in South Africa is regulated<br />

in terms of the Mineral and Petroleum Resources<br />

Development Act (MPRDA) of 2002, which stipulates<br />

that applicants for production rights are required to<br />

submit social and labour plans (SLPs) to assist in<br />

transforming the industry, promoting employment and<br />

advancing social and economic welfare in South Africa.<br />

Applicants must develop and implement, where<br />

applicable, comprehensive SLPs that cover human<br />

resources-development programmes, community<br />

development, housing and living conditions, and<br />

employment equity.<br />

In addition to the MPRDA, other acts also regulate<br />

the sector – including the National Environmental<br />

Management Act, the Royalties Act, the Mining Titles<br />

Registration Act and the National Water Act. These<br />

acts and regulations have served the upstream industry<br />

well and are all in line with international standards.<br />

Minister of Mineral Resources Gwede Mantashe and<br />

President Cyril Ramaphosa have recently stated that<br />

oil and gas exploration and production activities should<br />

have their own standalone legislation, separate from<br />

that applicable to hard mineral mining. This legislation<br />

is being drafted and the agency is part of the team at<br />

the Department of Mineral Resources working on it.<br />

In today’s world, oil and gas remain the most critical of<br />

energy resources, and Petroleum Agency SA is in full<br />

support of those entering the South African oil and gas<br />

exploration and production industries. The Agency is<br />

fully committed to ensuring that our government and<br />

policy-makers sustain the sector for the benefit<br />

of all involved and will do everything in its power<br />

to advance the industry.<br />


Petroleum Agency SA was established in 1999 by Ministerial directive and is<br />

mandated through the Mineral and Petroleum Resources Development<br />

Act, 2002 (Act No.28 of 2002) together with the National Environmental<br />

Management Act, 1998 (Act No.107 of 1998). These Acts provide for<br />

Petroleum Agency SA to evaluate and promote oil and gas potential<br />

exploration and production activities in South Africa, to regulate oil and gas<br />

exploration and the production industry and to archive all geotechnical data<br />

produced through oil and gas exploration. The Agency acts as an advisor to<br />

the government on issues regarding oil and gas exploration and production<br />

and carries out special projects at the request of the Minister.



<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> <strong>2020</strong>/<strong>21</strong> Edition<br />

Foreword 10<br />

A unique guide to business and investment in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Special features<br />

Regional overview of <strong>KwaZulu</strong>-<strong>Natal</strong> 12<br />

Manufacturers are investing and export volumes are on the rise.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s ports are shaping up 18<br />

Construction of the Durban Cruise Terminal got underway in 2019.<br />

Economic sectors<br />

Agriculture 26<br />

Sugar 28<br />

Forestry and paper 29<br />

Mining 32<br />

Engineering 33<br />

Oil and gas 34<br />

Construction and property 35<br />

Tourism 36<br />

Manufacturing 40<br />

Automotive 41<br />

Energy 42<br />

Water 43<br />

Banking and financial services 44<br />

Education and training 45<br />

ABOUT THE COVER: The Port of Durban<br />

handles containers, automotive imports<br />

and exports, break-bulk and agricultural<br />

commodities. Transnet reported that the<br />

port handled 2.96-million twenty-foot<br />

equivalent units (TEUs) in 2018. The<br />

figure of 487 000 vehicles handled<br />

by the port in the same year was the<br />

highest since 2013. Photo: Transnet<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Africa Biomass Company<br />

Your caring family trading as world leaders in the wood chipping industry.<br />

WP CHIPPER HIRE & SALES trading<br />

as Africa Biomass Company (ABC)<br />

is a wood chipping company that<br />

provides wood recycling services,<br />

supplying biomass according to specification.<br />

ABC is one of the best go-to wood chipper<br />

equipment sales and services agents.<br />

Wood chipper services<br />

• Agricultural: orchard / vineyard recycling and<br />

mulch spreading<br />

• Biomass for generation<br />

Company<br />

of heat or electricity<br />

Slogan<br />

• Site clearing and preparation<br />

Buy your own Bandit wood chipper<br />

or hire us to deal with your biomass<br />

Bandit the only logical choice for wood chippers in<br />

Africa, which are now fitted on SABS-approved trailers.<br />

ABC understands wood recycling<br />

With a comprehensive understanding of the operational<br />

challenges of wood recycling in South Africa,<br />

Company<br />

ABC has established state-of-the-art Slogan facilities to service,<br />

repair and rebuild wood chipper equipment of<br />

any brand and size. ABC’s facilities are operated by a<br />

remarkable team of very experienced and suitably<br />

qualified engineers, technicians and artisans.<br />

An equally remarkable team of field-service<br />

technicians deliver repairs, maintenance and parts<br />

A small selection of Bandit wood chippers (from left to right): Model 75XP Engine; Model 65XP PTO<br />

and the Intimidator 12XPC.<br />

• River rehabilitation in riparian zones<br />

to clients’ sites to optimise uptime and efficiency.<br />

Africa Biomass Company is the authorised dealer Become an owner of a Bandit chipper<br />

• Workshop, field services, parts and spares For more information on the Bandit, see page 27.<br />

for Bandit Industries in Southern Africa.<br />

All existing and new customers are welcome<br />

• Operator training services: SETA-certified<br />

ABC has built up a substantial fleet of Bandit to contact us if they want to become the<br />

• Manufacturing workshop wood chippers for use by the company The most as part experienced<br />

owner of the top-class range of Bandit<br />

of our wood recycling services, but ABC also<br />

biomass producer equipment. in Bandit Africa Industries have delivered<br />

offers a whole range of Bandit wood chippers successful recycling solutions to basically<br />

The X-factor in wood chippers to clients who want to invest in the Bandit range. every corner of the planet.<br />

Bandit chippers are designed Dimensional with quality, wood chips are produced by the removal<br />

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<br />

chippers are mounted on custom-built, SABSapproved<br />

trailers. Owning a Bandit wood Africa Biomass Company is fully equipped<br />

in Africa. Bandit combines first-world technology and deemed as impossible. ABC, however, now has<br />

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<br />

reliable wood chipping operations.<br />

machine anywhere in South Africa. We own<br />

done. These wood chips are then used<br />

In many cases, the Bandit wood chipper sets a fully-equipped parts warehouse (650m²),<br />

the benchmark for other brands in the wood in agri-industrial manufacturing applications department as as well a greener<br />

alternative services to ensure to coal that for parts either are always heat readily or<br />

as field<br />

chipping industry. We are ready to supply the<br />

right Bandit wood chipping solution with advice available and our own, as well as our clients’<br />

electricity production.<br />

and aftercare to your doorstep. All existing and Bandit wood chippers are not out of commission<br />

new customers are welcome to contact us to longer than they have to be.<br />

become the owner of Bandit equipment. Geographical www.abc.co.za footprint<br />

ABC is located in Worcester (Western<br />

Cape), Kirkwood (Eastern Cape),<br />

Nelspruit (Mpumalanga) and Upington<br />

(Northern Cape).<br />

We operate in all nine provinces in<br />

South Africa and also across the<br />

borders into Sub-Saharan Africa, including<br />

Namibia, Botswana, Zimbabwe,<br />

Mozambique, Zambia, Malawi,<br />

Tanzania, Kenya and Nigeria. ■<br />

9 WESTERN CAPE BUSINESS <strong>2020</strong><br />



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

A unique guide to business and investment in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

Credits<br />

Publisher: Chris Whales<br />

Publishing director:<br />

Robert Arendse<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Designer: Simon Lewis<br />

Production: Lizel Olivier<br />

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

Sam Oliver, Jeremy Petersen<br />

Gabriel Venter, Vanessa Wallace,<br />

Themba Khumalo, Shiko Diala<br />

and Sandile Koni.<br />

Administration & accounts:<br />

Charlene Steynberg<br />

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

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2020</strong>/<strong>21</strong> <strong>edition</strong> of <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is the 12th<br />

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

launch in 2008, has established itself as the premier business<br />

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

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

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

vital role played by ports in the province, from the coal exported from<br />

Richards Bay to the new cruise liner terminal addition to the Port of<br />

Durban. The 10th anniversary of the 2010 FIFA World Cup coincides<br />

with the birthday of the Moses Mabhida Stadium, an iconic design that<br />

has become a standard feature on the <strong>KwaZulu</strong>-<strong>Natal</strong> sporting and<br />

events calendar. Likewise the Durban ICC which continues to burnish<br />

the province’s reputation as meetings and convention centre.<br />

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

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

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

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

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

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

nine provinces, our flagship South African <strong>Business</strong> title and the<br />

new addition to our list of publications, African <strong>Business</strong>, which was<br />

launched in <strong>2020</strong>. ■<br />

Chris Whales<br />

Publisher, Global Africa Network Media | Email: chris@gan.co.za<br />


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

outgoing and incoming trade missions, through trade and<br />

investment agencies; to foreign offices in South Africa’s<br />

main trading partners around the world; at top national<br />

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

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

regionally via chambers of commerce, tourism offices, airport<br />

lounges, provincial government departments, municipalities<br />

and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />


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

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

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

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

Tel: +27 <strong>21</strong> 657 6200 | Fax: +27 <strong>21</strong> 674 6943<br />

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

ISSN 1995-1310<br />

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

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

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

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

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

PHOTO CREDITS | Bell Equipment, Bidvest, Enterprise iLembe, eThekwini<br />

Municipality, Hulamin, Illovo Sugar, iStock, KZN Department of Education,<br />

Mondi, Moses Mabhida Stadium/Kevin Sawyer, MSC Cruises, RBM Mines,<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />

10<br />

Transnet National Port Authority, Umgeni Water, WK Construction.<br />

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

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

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11 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


A regional overview<br />

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

By John Young<br />

Manufacturers are investing in the province and export volumes are on<br />

the rise as the province’s two main ports upgrade and expand.<br />

Almost a third of South Africa’s<br />

manufactured exports are produced in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>. A number of domestic<br />

and international manufacturers are<br />

either buying into the province or building new<br />

facilities in order to export finished goods.<br />

The Mara Group’s R1-billion investment in<br />

a smartphone factory at the Dube TradePort<br />

is the latest in a string of inward investments<br />

that <strong>KwaZulu</strong>-<strong>Natal</strong> has received. This includes<br />

expenditure of more than R1.2-billion by Arçelik,<br />

the Turkish owner of Defy, at the company’s three<br />

South African plants (two of which are in the<br />

province) and R4.5-billion by Nyanza Light Metal in<br />

a titanium dioxide pigment plant at Richards Bay.<br />

The Special Economic Zones (SEZs) at Richards<br />

Bay and King Shaka International Airport (the<br />

Dube TradePort) are key components of the<br />

strategy of attracting investors to the province.<br />

Dube TradePort attracted R7-billion between<br />

2012 and 2019 and the same amount is expected<br />

to accompany the development of Phase 1A<br />

and Phase 1F of the Richards Bay Industrial<br />

Development Zone (RBIDZ).<br />

Two investors in 2019 were edible oils<br />

manufacturer Wilmar Processing SA, which is<br />

investing more than R1-billion in a plant, and<br />

Elegant Afro Line, which will spend about R900-<br />

million on its chemicals plant.<br />

There are plans to establish a clothing and<br />

textiles SEZ in the province to build on the<br />

province’s established strength in the sector and<br />

an automotive supplier park will be in operation<br />

by 20<strong>21</strong>. Toyota and Bell Equipment play a big<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />



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

Refinery is a strategic asset.<br />

The province’s existing infrastructure, good soils<br />

and fine weather provide a solid base for future<br />

growth. <strong>KwaZulu</strong>-<strong>Natal</strong> already has significant<br />

capacity in heavy and light manufacturing, agriprocessing<br />

and mineral beneficiation, all of which<br />

is supported by South Africa’s two busiest ports<br />

(Richards Bay and Durban), the country’s busiest<br />

highway (the N3), a modern international airport<br />

and pipelines that carry liquids of all types to and<br />

from the economic powerhouse of the country<br />

around Johannesburg in the interior.<br />

Sappi’s dissolving pulp mill at Umkomaas<br />

south of Durban (below) is one of the province’s<br />

most significant industrial sites as it produces huge<br />

quantities of a material that is used in viscose staple<br />

fibre, which in turn is used in clothing and textiles.<br />

Together with production volumes from Sappi’s<br />

mill in neighbouring Mpumalanga province, the<br />

company is the world’s largest manufacturer of<br />

dissolving pulp. Sugar, tourism and forestry and<br />

paper are other important sectors driving growth<br />

and employment in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

In his <strong>2020</strong> State of the Province address,<br />

Premier Sihle Zikalala listed the sectors which are to<br />

be targeted for investment in the future. These are:<br />

• Aloe processing<br />

• Bio-ethanol<br />

• Renewable energy<br />

• Fish processing<br />

• Innovation hubs<br />

• Oceans Economy.<br />

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

from Port Edward in the south to the iSimangaliso<br />

Wetland Park in the north. The province’s contact<br />

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

fine beaches enjoyed by millions of tourists and<br />

two great ports.<br />

These ports export vast quantities of minerals<br />

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

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

13 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


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

Terminal exports massive quantities of coal while<br />

the Port of Durban is the busiest port in Africa.<br />

However, planners want to massively increase<br />

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

An Oceans Economy Review Workshop has come<br />

up with a range of sub-sectors that can help grow<br />

the provincial economy and invite foreign direct<br />

investment:<br />

• Marine transport and manufacturing<br />

• Offshore oil and gas exploration<br />

• Aquaculture<br />

• Marine protection and ocean governance<br />

• Small harbours<br />

• Coastal and marine tourism.<br />

Strategies to grow the Oceans Economy dovetail<br />

with ongoing projects to boost the capacity of the<br />

province’s ports and to explore for gas and oil in<br />

the Indian Ocean. If oil rigs were to start visiting<br />

the KZN coastline on a regular basis, the shiprepair<br />

industry would grow exponentially.<br />

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

that has been chosen by national government<br />

to be part of Operation Phakisa, a focused, goaldriven<br />

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

sector. Overall, Phakisa intends creating a million<br />

jobs by 2033 and injecting R177-billion into<br />

national GDP.<br />

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

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

kind of decision that is in line with an “Oceans<br />

Economy” approach.<br />

Geography<br />

The mixed topography of the province allows<br />

for varied agriculture, animal husbandry and<br />

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

Ocean coastline is made up of subtropical<br />

thickets and Afromontane forest. High humidity<br />

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

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

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

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

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

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

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

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

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

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

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

Regions<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has 10 district municipalities and<br />

a metropolitan municipality, the most of any<br />

province in South Africa. In economic terms, the<br />

province offers diverse opportunities.<br />

Southern region<br />

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

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

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

The promenade now reaches all the way to the<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />



harbour and the Point development will benefit.<br />

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

Durban with the current centrepiece being the<br />

Convention<br />

Durban Cruise<br />

Centre<br />

Terminal.<br />

Complex,<br />

The Container<br />

which<br />

Terminal<br />

hosts the<br />

is<br />

annual also undergoing Tourism Indaba. an extensive overhaul.<br />

The Durban’s province's conference climate lends facilities itself are to well every utilised, kind of<br />

outdoor but many pursuit opportunities and its excellent still exist beaches in chemicals are always<br />

popular. and industrial Big sports chemicals, events are food regularly and beverages, hosted in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, infrastructure development which has become and tourism. something Further of<br />

a south, home plans to mass-participation are in place to upgrade events such Margate’s as the<br />

Comrades airport and Marathon Port Shepstone’s and the Dusi beachfront. Canoe race. The<br />

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

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

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

with Also its known business as as the a tourist Midlands, site. this is a fertile<br />

agricultural The building region of the which King hosts Shaka the International popular<br />

Airport<br />

annual<br />

to<br />

Royal<br />

the north<br />

Show.<br />

of<br />

It<br />

Durban<br />

produces<br />

allows<br />

sugar<br />

tourists<br />

cane,<br />

to<br />

fruit,<br />

get<br />

animal products, forestry and dairy products.<br />

to superb beaches and game farms very quickly,<br />

Pietermaritzburg is the provincial capital and<br />

and the airport has its own industrial development<br />

home to a major aluminium producer along with<br />

zone, the Dube TradePort. New international direct<br />

several manufacturing concerns, including textiles,<br />

flights<br />

furniture,<br />

have<br />

leather<br />

been<br />

goods<br />

announced;<br />

and food.<br />

4.5-million<br />

The city has<br />

passengers<br />

good<br />

transport<br />

passed<br />

links<br />

through<br />

along<br />

the<br />

the<br />

airport<br />

N3 national<br />

in 2014/15,<br />

highway,<br />

almost<br />

300 excellent 000 of whom schools were and foreign a lively visitors arts or tourists scene. (ACSA). The<br />

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

Geography<br />

Eastern region<br />

The Although mixed topography most of this of area the province is very rural, allows Richards for varied<br />

Bay agriculture, is one of animal the country’s husbandry industrial and horticulture. hotspots<br />

The because lowland of area its coal along terminal, the Indian port Ocean and aluminium coastline<br />

is smelters. made up The of subtropical Richards Bay thickets Industrial and Development<br />

Afromontane<br />

Forest. Zone High (RBIDZ) humidity is a major is experienced, economic node especially in itself in<br />

the and far with north, the and possibility this is a summer of a power rainfall plant area. being The<br />

centrally built, the located RBIDZ Midlands could become is on a an grassland energy hub. plateau<br />

Mining<br />

among<br />

is an<br />

rolling<br />

important<br />

hills.<br />

sector<br />

Temperatures<br />

in this region.<br />

generally<br />


get colder in the far west and northern reaches of<br />

the province. The other major urban<br />

The mountainous centre area is in Empangeni the west which – the<br />

Drakensberg – comprises has solid several walls educational<br />

of basalt and<br />

is the source of the region’s institutions. many strongly The running King<br />

rivers. Regular and heavy Shaka winter International<br />

snowfalls support<br />

tourist enterprises. The Airport Lubombo is adjacent Mountains to in the the<br />

north are granite formations Dube TradePort, that run in a parallel. Special<br />

Economic Zone (SEZ) which<br />

is attracting investors.<br />

Regions<br />

Northern region<br />

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

The economic powerhouse is Newcastle in the<br />

most of any province in South Africa and, in economic<br />

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

manufacturing<br />

terms, the province<br />

are major<br />

offers<br />

activities.<br />

diverse<br />

Some<br />

opportunities.<br />

old coal<br />

Southern<br />

mines are being<br />

region<br />

reopened by new coal companies<br />

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

This for the area fuel. is the Game province’s farms, most trout populous. fishing and The hiking city of<br />

Durban are part has of an experienced attractive package booms in for sectors tourists, such and as<br />

automotive, Zululand is ICT, a popular film and destination call centres. for Major cultural investments<br />

experiences. are taking The place region at the is rich Port in of Anglo-Boer Durban and<br />

there War history a possibility which that includes the old battle airport sites south such of as the<br />

city Islandlwana could become and Rorke’s another Drift. port, ■ if the money can be<br />

Standerton<br />

N5<br />


Vrede<br />

Free State<br />

Harrismith<br />

Volksrust<br />

Newcastle<br />

Glencoe<br />

N11<br />

Paulpietersburg<br />

Utrecht<br />

Dundee<br />

Vryheid<br />

uLundi<br />

Pongola<br />

Nongoma<br />

Hlabisa<br />

Mtubatuba<br />

Ladysmith<br />

R74<br />

Melmoth<br />

Bergville<br />

N3 Colenso<br />

eMpangeni<br />

R74<br />

Winterton<br />

Kranskop<br />

Estcourt<br />

Greytown<br />

Gingindlovu<br />

Mooi River<br />

R33<br />

Stanger Darnall<br />

Howick<br />

N2<br />

Tongaat<br />

Ballito<br />


N3<br />

uMhlanga<br />

Underberg<br />

Pinetown<br />


Kokstad<br />

N2<br />

N17<br />

Bethal<br />

Eastern Cape<br />

Ermelo<br />

Mpumalanga<br />

iXopo<br />

Harding<br />

N17<br />


N3<br />

N11<br />

R56<br />

Piet Retief<br />

R34<br />

R33<br />

uMzinto<br />

N2<br />

R33<br />

R68<br />

Hibberdene<br />

uMtentweni<br />

Port Shepstone<br />

Margate<br />

Southbroom<br />

Port Edward<br />

N2<br />

R34<br />

DURBAN<br />

aManzimtoti<br />

uMkomaas<br />


R69<br />

R65<br />

R66<br />


Mkuze<br />

N2<br />

Hluhluwe<br />

Richards Bay<br />

Motorway<br />

Main Road<br />

Railway<br />


St Lucia<br />

N<br />


14 15 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


<strong>KwaZulu</strong>-<strong>Natal</strong>’s ports are shaping<br />

up to receive more ships<br />

Construction of the Durban Cruise Terminal got underway in 2019.<br />

MSC Orchestra arrives in Durban on maiden visit. Image: MSC Cruises<br />

The <strong>KwaZulu</strong> Cruise Terminal (KCT)<br />

consortium has won the contract from<br />

Transnet National Ports Authority (TNPA)<br />

to finance, build and run the new Durban<br />

Cruise Terminal. The terminal is expected to start<br />

functioning for the <strong>2020</strong>/<strong>21</strong> cruise season.<br />

Within the Port of Durban there are a number<br />

of specialised facilities. One of the busiest is the<br />

Container Terminal and that is the subject of a<br />

large upgrading project. The Port of Richards<br />

Bay, the link to the world for South Africa’s coal<br />

exporters, is constantly adding to its facilities, the<br />

latest being a floating dock, for which approval has<br />

been given to be constructed within the port.<br />

The cruise terminal is an important step<br />

forward for Durban and fits in well with the<br />

larger project that links the port to the upgraded<br />

southern end of the promenade, the Durban Point<br />

Waterfront. A joint venture between MSC Cruises<br />

SA and Africa Armada Consortium, KCT will spend<br />

about R220-million on the financing‚ construction‚<br />

maintenance and operation of the cruise terminal<br />

for a 25-year concession period. Construction<br />

began in 2019.<br />

The cruise terminal will cover a 32 000m² area<br />

that will cater for two ships and at least 5 000<br />

passengers. A ship with 2 000 passengers is worth<br />

in the region of R2-million per day for the host city.<br />

The number of annual passengers is expected<br />

to grow from the current 200 000 to more than<br />

700 000 by 2040. Durban’s hosting of 60 ships<br />

per annum is expected to rise to 150 or more.<br />

South Africa attracts 0.5% of the world’s cruiseship<br />

market which comprises about 15.4-million<br />

passengers annually.<br />

MSC Musica uses Durban as her base port<br />

and is joined by MSC Opera during the summer<br />

months, sailing from Durban to Mozambique and<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />



other destinations in the Indian Ocean. A popular<br />

offering is the “Tour to Nowhere” cruise. In 2019<br />

MSC Orchestra made its first visit to Durban.<br />

Container terminal<br />

Several projects are underway within the Port of<br />

Durban to increase capacity. Transnet National<br />

Ports Authority (TNPA) and Transnet Port Terminals<br />

(TPT) are combining to upgrade infrastructure<br />

and buy new equipment to improve efficiencies<br />

at the Ro-Ro terminal (vehicles and break bulk)<br />

and Maydon Wharf (mixed cargo and agriculture)<br />

but the biggest project is at the Durban Container<br />

Terminal (DCT).<br />

DCT has a capacity of 3.6-million TEUs (twentyfoot<br />

equivalent units) and the current project aims<br />

to extend that beyond five-million TEUs. The Brics<br />

New Development Bank has approved a loan of<br />

$200-million for the DCT expansion project.<br />

Drydock<br />

Durban’s drydock complex is undergoing a series<br />

of refurbishments and upgrades. The R48-million<br />

35m outer caisson was the first project to be<br />

completed and now it’s the turn for the inner<br />

caisson and drive system to be fixed, at a cost of<br />

R61.5-million. Two Durban companies, Lodemann<br />

(Managing Contractor) and Channel Construction<br />

(Design and Build), are responsible for the project,<br />

which will ensure the sustainability of the shiprepair<br />

sector within the port.<br />

TNPA states that the multiplier effect in the<br />

marine sector creates five jobs for every direct<br />

job. The drydock project created direct jobs for 29<br />

skilled employees.<br />

Richards Bay<br />

The Richards Bay Coal Terminal (RBCT) is the key<br />

component of the port on the northern coast<br />

of <strong>KwaZulu</strong>-<strong>Natal</strong> but the port’s managers and<br />

associated Special Economic Zone (SEZ) are looking<br />

to diversify beyond the other types of freight<br />

which also form part of the port’s key mandate.<br />

Chief among the diverse offerings being<br />

looked at are alternative energy generation and<br />

opportunities in the gas sector. A feasibility study<br />

is being done on a gas-to-power plant and a large<br />

new liquid petroleum gas import and storage<br />

terminal was recently built for Petredec by Bidvest<br />

Tank Terminals.<br />

Ship repair is another option which will open<br />

up other opportunities in marine manufacturing.<br />

TNPA has approved in principle the<br />

construction of a floating dock near the existing<br />

Small Craft quay. TNPA will have to create new<br />

onshore infrastructure and do some dredging<br />

before it can call for tenders from the private sector<br />

to build the dock, which would be able to handle<br />

large and ultra-large cargo vessels (Capesize).<br />

Richards Bay is a deepwater port. Among its<br />

13 berths are terminals that handle dry-bulk ores,<br />

minerals and break-bulk cargo.<br />

The quay of the Richards Bay Coal Terminal<br />

(RBCT) is 2.2km long with six berths and four shiploaders.<br />

The 276ha site contains a stockyard that<br />

can store 8.2-million tons while the terminal itself<br />

has a design capacity of 91-million tons per year.<br />

More than 900 ships visit RBCT every year. ■<br />

Drydock construction. Image: Transnet<br />

19 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


see money differently<br />


<strong>21</strong>ST CENTURY BANKING<br />


At the heart of Nedbank’s business strategy is its belief that<br />

its sustainability depends on its ability to integrate into the<br />

communities in which it operates.<br />

Siphamandla Ndhlovu, Provincial<br />

General Manager for Retail and<br />

<strong>Business</strong> Banking in <strong>KwaZulu</strong>-<strong>Natal</strong><br />

(KZN), explains: ‘Nedbank has continued to<br />

deliver on its brand promise, which is to use<br />

our financial expertise to do good for<br />

individuals, families, businesses and<br />

communities in which we operate. Our<br />

client-centred strategy has enabled us to<br />

reach out to our individual and business<br />

clients in time of need during the Covid-19<br />

national lockdown.’<br />

The Nedbank Contact Centre and advanced<br />

digital innovation, including the awardwinning<br />

Nedbank Money app, enabled the<br />

bank to continue serving clients in the<br />

comfort of their homes. Ndhlovu says that<br />

for small- and medium-business clients,<br />

Nedbank continues to deliver end-to-end<br />

solutions through a dedicated business<br />

manager. ‘Our business managers are<br />

supported by a team of experts across the<br />

bank to deliver seamless banking solutions.<br />

Our bigger-picture business approach<br />

ensures that we are able to take a holistic<br />

view of the business by understanding the<br />

vision, cashflow cycle, and transactional and<br />

capital expenditure needs of the business.<br />

‘…we made donations to<br />

Doctors on Call and the Aurum<br />

Institute to help kickstart<br />

Covid-19 projects …<br />

’<br />

As a responsible corporate citizen, Nedbank<br />

in KZN has sought partnerships with<br />

businesses in the province to respond to the<br />

Covid-19 challenges. ‘Over and above the<br />

broad Covid-19 relief measures that all<br />

commercial banks committed to, among<br />

other initiatives we made donations to<br />

Doctors on Call and the Aurum Institute to<br />

help kickstart Covid-19 projects that have<br />

benefitted our communities immensely. We<br />

also continue to participate in the<br />

discussions with local government to<br />

support local economic recovery initiatives,’<br />

Ndhlovu says.<br />

If you are interested in taking your business<br />

to its next level or need information about<br />

Nedbank’s specialised service offering,<br />

please call Siphamandla Ndhlovu on<br />

+27 83 637 8552, sendanemailto<br />

SiphamandlaN@Nedbank.co.za or visit<br />



see money differently<br />




Nedbank’s Provincial Manager of Retail Relationship Banking<br />

for <strong>KwaZulu</strong>-<strong>Natal</strong>, Melanie Reddy, explains how Nedbank is<br />

committed to partnering with businesses for growth.<br />

‘<br />

Small businesses are the mainstay of<br />

the economy and Nedbank provides<br />

small-business owners with support<br />

that goes beyond banking,’ she says.<br />

‘Covid-19 has dealt entrepreneurs a major<br />

blow and, naturally, they are overwhelmed<br />

and anxious about the future of their<br />

businesses. Since the lockdown many small<br />

businesses have had no income, but<br />

mounting operational expenses, and some<br />

did not qualify for traditional funding nor<br />

certain relief aids available. Nedbank is<br />

proud to be involved in various ways to help<br />

mitigate the economic impact of the crisis<br />

on this vital sector.’<br />

Through the launch of the South African<br />

Future Trust (SAFT), established by Nicky<br />

and Jonathan Oppenheimer, Nedbank<br />

helped facilitate the distribution of loans to<br />

small businesses on behalf of the SAFT. The<br />

main aim of the SAFT is to keep companies<br />

in business and protect jobs to fast-track<br />

South Africa’s economic recovery after the<br />

pandemic by extending direct financial<br />

support to employees of South African<br />

small and medium-sized enterprises (SMEs)<br />

at risk of losing their jobs. In addition,<br />

Backa<strong>Business</strong> is an innovative and relevant<br />

‘<br />

Nedbank helped facilitate<br />

the distribution of loans to<br />

small businesses on behalf<br />

of the SAFT.<br />

’<br />

way in which Nedbank is helping small<br />

businesses during this challenging time. It<br />

offers an opportunity for people to show<br />

their support for small businesses to ensure<br />

their survival. Loyal customers, family and<br />

friends, and society at large can join the<br />

movement to pay now and redeem a reward<br />

from the business owner once trading resumes.<br />

‘Beyond this Covid-19 relief, our experts are<br />

available to provide all the support you<br />

need,’ says Reddy. Initiatives such as<br />

SimplyBiz.co.za, The Essential Guide for<br />

Small-business Owners, business registration<br />

services and free small-business seminars<br />

are all geared to support SMEs.<br />

If you wish to tap into our small-business<br />

expertise to reach your business goals,<br />

please call Melanie Reddy on<br />

+27 10 223 2823, sendanemailto<br />

MelanieR@nedbank.co.za or visit<br />



see money differently<br />




Matthew Moore, Nedbank’s Provincial <strong>Business</strong> Banking<br />

Manager for <strong>KwaZulu</strong>-<strong>Natal</strong>, says that his team are specialists<br />

in commercial industries, agriculture and the public sector.<br />

‘<br />

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

believe that you need a flexible,<br />

resilient financial partner who not<br />

only understands your circumstances and<br />

aspirations, but also provides you with<br />

relevant solutions and a banking experience<br />

that is hassle-free, allowing you to<br />

concentrate on what’s most important to<br />

you – running your business,’ says Moore.<br />

Our bigger-picture banking approach<br />

enables us not only to provide you with the<br />

banking solutions you need, but also to give<br />

you a holistic view of how our products are<br />

connected to create a framework that<br />

yields maximum impact across every facet<br />

of your business and beyond. We know that<br />

success in business is about partnerships,<br />

and that is why we put the building of deep,<br />

lasting, value-adding relationships at the<br />

centre of everything we do. This means your<br />

goals are our goals, your vision is our vision,<br />

and your success is our success – while you<br />

rely on our additional support that is most<br />

needed in times of change and uncertainty.<br />

In the agricultural sector particularly,<br />

Nedbank understands that if the various<br />

challenges it faces are not addressed, it will<br />

threaten economic growth, food security,<br />

‘… Nedbank has developed<br />

innovative funding solutions<br />

designed to support<br />

farmers …<br />

’<br />

employment and investment. ‘By using our<br />

financial expertise to do good, we partner<br />

with our agricultural clients to contribute to<br />

a growing, competitive, transformed and<br />

climate-resilient agricultural sector.’<br />

To this end Nedbank has developed<br />

innovative funding solutions designed to<br />

support farmers with sustainable farming<br />

interventions, ranging from water efficiency<br />

mechanisms and cutting-edge irrigation to<br />

renewable-energy financing. Moore says<br />

that Nedbank’s leadership position in<br />

renewable-energy finance is helping many<br />

farmers and agribusinesses to benefit from<br />

cleaner, more reliable and affordable power<br />

generation than the national grid can provide.<br />

If you are interested in taking your business<br />

to the next level, please contact<br />

Matthew Moore on +27 84 240 6799, send an<br />

email to Matthewmo@nedbank.co.za or visit<br />



see money differently<br />




Nedbank is committed to delivering easy and innovative<br />

banking solutions to government, municipalities and<br />

state-owned enterprises throughout South Africa.<br />

Sithembiso Cele, Nedbank's Provincial<br />

Manager for the Public Sector in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, says that given the<br />

strategic importance of the public sector to<br />

the economy and the country at large,<br />

Nedbank has a dedicated public sector<br />

team to provide financial solutions that<br />

enable the broader mandate of service<br />

delivery. ‘We understand that the various<br />

spheres of government and their agencies<br />

face unique challenges, and are ready and<br />

able to draw on the bank’s innovative,<br />

seamless and hassle-free products to help<br />

build a greater nation.’<br />

But the bank's role goes beyond providing<br />

banking solutions to these vital entities. As<br />

money experts who do good, Nedbank<br />

strives to empower the people behind the<br />

public sector. 'We help them save time by<br />

providing onsite help from our dedicated<br />

teams and through our market-leading<br />

Nedbank Money app and other digital<br />

solutions. We also help them save money<br />

through our preferential banking solutions<br />

and our award-winning Financial Fitness and<br />

Consumer Education Programme. The<br />

programme helps them manage their<br />

money better by providing budgeting and<br />

‘<br />

Nedbank strives to empower<br />

the people behind the public<br />

sector.<br />

’<br />

money management training, equipping<br />

their staff members to deal with everyday<br />

money management challenges better.'<br />

With the exclusive benefits available to<br />

municipal staff members who bank with<br />

Nedbank, savings of more than R2 000 a<br />

year in fees alone are made possible. These<br />

staff members also enjoy free personal<br />

card delivery and pay no initiation fees,<br />

benefit from the Greenbacks Programme,<br />

get free basic travel insurance and an<br />

additional 20% discount on top-up travel<br />

insurance, twelve airport lounge visits a<br />

year and a free wills consultation and<br />

drafting service.<br />

To find out more about how Nedbank can<br />

partner with your organisation togrowa<br />

greater South Africa, please contact<br />

Sithembiso Cele on +27 83 647 2486, send<br />

an email to SithembisoC@nedbank.co.za or<br />

visit www.nedbank.co.za/business.<br />

Nedbank Ltd Reg No 1951/000009/06. Authorised financial<br />

services and registered credit provider (NCRCP16).<br />




Overviews of the main economic sectors of <strong>KwaZulu</strong>-<strong>Natal</strong><br />

Agriculture 26<br />

Sugar 28<br />

Foresty and paper 29<br />

Mining 32<br />

Engineering 33<br />

Oil and gas 34<br />

Construction and property 35<br />

Tourism 36<br />

Manufacturing 40<br />

Automotive 41<br />

Energy 42<br />

Water 43<br />

Banking and financial services 44<br />

Education and training 45<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />



Port of Richards Bay<br />

Pic: Transnet National Ports Authority<br />

25 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


Agriculture<br />

Small-scale farmers are set to benefit from the value chain.<br />

Sector Insight<br />

South Africa gets 18% of its<br />

milk from <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

In 2018 a summit was held to draw up an Agricultural Development<br />

Masterplan for the province. The plan includes priorities such as the<br />

expansion of irrigable land, improving market access for producers<br />

and adding value to agricultural products before they reach local<br />

and international markets.<br />

The Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> wants to use<br />

government’s buying power to develop agricultural value chains for<br />

the benefit of new and small-scale farmers and producers. A pilot<br />

programme is running in three districts and the eThekwini metro.<br />

A group of women farmers from uMkhanyakude supply Enterprise<br />

iLembe with 1 000 crates of tomatoes as part of the project.<br />

Enterprise iLembe is the development arm of the iLembe District<br />

Municipality and is looking for investors to further develop an agriprocessing<br />

hub near the King Shaka International Airport and Dube<br />

TradePort. Among the new lines of agricultural produce being<br />

investigated is cannabis. A Cannabis Investor Protocol has been<br />

launched and a unit established at the Moses Kotane Institute to assist<br />

entrepreneurs and cultivators.<br />

There are only 16 farmers in<br />

all of South Africa doing what<br />

Ross Lowe does on his farm in<br />

Richmond, which is to cultivate<br />

golden kiwifruit. He believes that<br />

the particular strain of kiwifruit<br />

he has chosen is the best in<br />

terms of taste and yield and he<br />

has awards to prove it. Typically<br />

for the modern <strong>KwaZulu</strong>-<strong>Natal</strong><br />

farmer, he also intends to<br />

increase his export volumes.<br />

So-called superfoods have<br />

potential to grow the agricultural<br />

sector via greatly increased<br />

exports: these include avocados,<br />

pecans and dates. Another<br />

possibility is macadamia nuts<br />

(already a thriving sector in other<br />

parts of the country) and in new<br />

areas such as cannabis and the<br />

farming of rabbits.<br />

The National Department of<br />

Rural Development and Land<br />

Reform (DRDLR) has launched<br />

an Agri-parks programme to<br />

support small-scale farmers<br />

and to boost other businesses<br />

related to agriculture such<br />

as abattoirs and transport<br />

operators. <strong>KwaZulu</strong>-<strong>Natal</strong> is one<br />

of four provinces where pilot<br />

projects have been carried out.<br />

The plan is to have an Agripark<br />

in each of South Africa’s<br />

44 district municipalities with<br />

farmers owning at least 70% of<br />

the venture.<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />




First-world technology and quality combined SABS-approved roadworthy trailers built at Africa<br />

with African simplicity. The main woodchipper Biomass Company in Worcester, South Africa.<br />

unit is manufactured by Bandit Industries, Inc. Engine-powered woodchippers are fitted<br />

with 35-plus years’ experience with Tier 3, South African standard, diesel or<br />

in innovation and international petrol engines, depending on the woodchippers’<br />

research. These units specification or clients’ preference. Electric and PTO<br />

are shipped to options are also available in various Bandit models.<br />

South Africa The add-ons are specifically handpicked to give<br />

where they are you the best set-up and will provide you with a<br />

fitted onto well-balanced woodchipper that will outperform<br />

most other chippers in Africa.<br />

www.abc.co.za<br />

There are three components<br />

to the fully realised Agri-park<br />

concept:<br />

• Farmer Production Support<br />

Unit: links farmer with<br />

markets, collection and shortterm<br />

storage, local processing<br />

and mechanisation.<br />

• Agri-hub: equipment-hire,<br />

processing, packaging,<br />

logistics and training.<br />

• Rural Urban Market Centre:<br />

contract-based links to local<br />

and international markets,<br />

long-term storage and<br />

market intelligence.<br />

Agriculture is the focus of a<br />

wide-ranging initiative in the<br />

Ulundi district. A grouping called<br />

ULUMA has been formed which<br />

aims to help farmers, SMMEs<br />

and co-operatives to benefit in<br />

a holistic way from the produce<br />

they farm. The Zululand District<br />

Farmers Association, several<br />

other NGOs and Standard Bank<br />

are working together with<br />

the Mangosuthu University<br />

of Technology (MUT) and the<br />

Innovation and Technology<br />

<strong>Business</strong> Incubator (Invotech)<br />

to expose farmers to new issues<br />

and techniques.<br />

Agricultural assets<br />

Of <strong>KwaZulu</strong>-<strong>Natal</strong>’s 6.5-million hectares of agricultural land, 18%<br />

is arable and the balance is suitable for the rearing of livestock. The<br />

province’s forests occur mostly in the southern and northern edges of<br />

the province. The coastal areas lend themselves to sugar production<br />

and fruit, with subtropical fruits doing particularly well in the north.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> produces 7% of South Africa’s citrus fruit. The Coastal<br />

Farmers Co-operative represents 1 400 farmers. TWK is a R6-billion<br />

operation that originated in forestry (as Transvaal Wattlegrowers<br />

Co-operative) but which is now a diverse agricultural company with<br />

seven operating divisions. It has 19 trade outlets in the province and <strong>21</strong><br />

in Swaziland and Mpumalanga.<br />

Beef originates mainly in the Highveld and Midlands areas, with<br />

dairy production being undertaken in the Midlands and south.<br />

The province produces 18% of South Africa’s milk. <strong>KwaZulu</strong>-<strong>Natal</strong>’s<br />

subsistence farmers hold 1.5-million cattle, which represents 55% of<br />

the provincial beef herd, and their goat herds account for 74% of the<br />

province’s stock. The Midlands is also home to some of the country’s<br />

finest racehorse stud farms. The area around Camperdown is one of<br />

the country’s most important areas for pig farming. Vegetables grow<br />

well in most areas, and some maize is grown in the north-west. Nuts<br />

such as pecan and macadamia thrive. <strong>KwaZulu</strong>-<strong>Natal</strong> has two colleges<br />

offering higher qualifications in agriculture, Cedara in the Midlands and<br />

the Owen Sitole College of Agriculture near Empangeni. ■<br />

Online Resources<br />

Fresh Produce Exporters Forum: www.fpef.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Agricultural Union: www.kwanalu.co.za<br />

KZN Dept of Agriculture & Rural Development: www.kzndard.gov.za<br />

Milk Producers Organisation: www.mpo.co.za<br />

National Dept of Agriculture, Forestry & Fisheries: www.daff.gov.za<br />

Royal Agricultural Society of <strong>Natal</strong>: www.royalshow.co.za<br />

27 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


Sugar<br />

Tongaat Hulett is undergoing massive restructuring.<br />

In June 2019 share trading in Tongaat Hulett was suspended. Many<br />

accounting irregularities came to light and the upshot was that<br />

the company was forced to restructure to pay off huge debts.<br />

This comes at a time when the sugar industry is described in<br />

Engineering News as being “in the intensive care unit” by the Executive<br />

Director of the South African Sugar Association (SASA).<br />

Sales into the Southern African Customs Union (SACU) have<br />

markedly declined in recent years but under a SACU protocol, Eswatini<br />

will sell about 500 000 tons to South Africa, free of any duty.<br />

Among the measures taken by Tongaat Hulett are the sale of its<br />

starch business to Barloworld (for R5.3-billion) and sale of 5.18% of the<br />

company’s shares to Evanstan Investments, which now becomes one<br />

of the company’s biggest investors.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is South Africa’s biggest sugar producer. Most<br />

of South Africa’s 14 sugar mills are in <strong>KwaZulu</strong>-<strong>Natal</strong>, as are the<br />

headquarters of the biggest companies. The industry employs 65 000<br />

directly and indirect employment is estimated at 350 000. About 40%<br />

of local production is exported. The SACGA represents in the region<br />

of 23 000 growers (including 651 small-scale farmers) who produce<br />

around 20-million tons of cane. In the 2019/20 season, about two-million<br />

tons of saleable sugar was produced. A new industry structure, allowing<br />

Online Resources<br />

South African Cane Growers’ Association: www.sacanegrowers.co.za<br />

South African Sugar Association: www.sasa.org.za<br />

South African Sugar Technologists Association: www.sasta.co.za<br />

Sugar Milling Research Institute: www.smri.org<br />

Sector Insight<br />

South Africa will receive<br />

half-a-million tons of dutyfree<br />

Eswatini sugar.<br />

for multiple grower associations,<br />

has been agreed to by the<br />

SACGA, the Department of Trade,<br />

Industry and Competition (dtic)<br />

and the relevant parliamentary<br />

portfolio committee. Neither of<br />

the Big Two companies relies<br />

exclusively on South African<br />

sugar earnings: Tongaat Hulett<br />

has a big property portfolio and<br />

Illovo draws most of its profit<br />

from operations elsewhere in<br />

Africa. Diversification is vital for<br />

the future of sugar producers<br />

and power generation will be an<br />

important part of that.<br />

Illovo and Tongaat Hulett are<br />

the major operators of sugar mills.<br />

Other millers are Gledhow, ULC,<br />

Umfolozi and Tsb (which has a<br />

further two mills in Mpumalanga).<br />

Illovo has four mills, three sugarcane<br />

estates, four sugar factories,<br />

a refinery and three downstream<br />

operations that make products<br />

such as furfural, furfuryl alcohol,<br />

ethyl alcohol and lactulose.<br />

The four mills run by Tongaat<br />

Hulett are located on the North<br />

Coast while the central refinery<br />

is in Durban and the animal-feed<br />

plant, Voermol, is near Tongaat.<br />

The Sugar Terminal at Maydon<br />

Wharf, Durban, serves 11 mills<br />

and can store more than half-amillion<br />

tons of sugar. It also has a<br />

molasses mixing plant. ■<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Forestry and paper<br />

Mondi and Sappi are global giants.<br />


Sector Insight<br />

Mondi’s primary listing has<br />

moved to London.<br />

The Mondi Group, which has distinct <strong>KwaZulu</strong>-<strong>Natal</strong> roots, has<br />

grown into an international behemoth with 26 000 employees<br />

and operations in more than 30 countries. In 2019<br />

Mondi announced that its primary listing will from now on be<br />

in London and the JSE will carry the company’s secondary listing. The<br />

company, whose forestry operations are shown here, will spend more<br />

than R8-billion on its South African operations in the period to 2023.<br />

Mondi’s Merebank Mill produces a range of office paper products<br />

including the well-known brand, Mondi Rotatrim. Uncoated woodfree<br />

reels are manufactured for the South African and Sub-Saharan African<br />

markets. At Richards Bay, eucalyptus fibre is used to make a premiergrade<br />

bleached hardwood pulp and a white top kraft linerboard is also<br />

produced. Major investments at Richards Bay have not only increased<br />

the number of products being made, but improved air quality, reduced<br />

water consumption and reduced the amount of solid waste produced<br />

on the site.<br />

The export of about one-million tons of dissolving wood pulp<br />

earned Sappi the winner’s trophy in the “Large Exporter” category<br />

at the KZN Exporter of the Year Awards in 2019. Approximately 220<br />

TEU equivalent containers (20-foot containers) of Sappi products pass<br />

through the Durban Port every day.<br />

The long-running awards ceremony is hosted by the Durban<br />

Chamber of Commerce. Sappi was also a winner at the first <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> Investor Awards, a Trade and Investment KZN (TIKZN) event. On<br />

that occasion Sappi won the category “Investor operating in KZN with<br />

a Global Footprint.”<br />

Sappi has a considerable global footprint:19 production facilities<br />

on three continents (of which five are in Southern Africa) and 12 800<br />

employees in over 35 countries.<br />

Sappi’s Stanger Mill is<br />

situated close to sugar fields<br />

from which it takes bagasse<br />

(dry sugar cane pulp) for use in<br />

its production processes. Typek<br />

office paper is made at this<br />

mill, which has the capacity to<br />

produce 80 000 tons of paper<br />

and 30 000 tons of tissue.<br />

At the company’s Tugela Mill<br />

up to 200 000 tons per annum<br />

of containerboard (corrugating<br />

medium) can be manufactured<br />

from recycled and virgin fibre.<br />

It also produces 25 000 tons of<br />

lignosulphonate in powder form<br />

and 35 000 tons per annum of<br />

liquid product.<br />

A big focus for Sappi is<br />

dissolving wood pulp which<br />

is sold as a raw material to<br />

converters around the world<br />

who produce from it a range<br />

of products such as textiles,<br />

cellophane wrap and pharmaceuticals.<br />

The giant Sappi Saiccor<br />

mill 50km south of Durban is<br />

the world’s biggest manufacturer<br />

of dissolving wood pulp.<br />

The mill’s capacity is being<br />

increased to 890 000 tons via<br />

a multi-year investment project<br />

called Project Vulindlela.<br />

A total of R7.7-billion has been<br />

allocated to the project which<br />

will result in more than 2 000<br />

construction jobs and about 120<br />

full-time jobs.<br />

29 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>



By paying their dues towards an extended Pulp for rayon, sponges, and cellophane. Many<br />

producer responsibility (EPR) programme, paper of these products are recyclable, which means<br />

manufacturers, importers and brand owners can they can be diverted from landfill and made into<br />

extend their producer responsibility beyond their new products. Process waste is used to make<br />

own factories and their customers’ hands. compost, biochar and fertiliser for the agricultural<br />

Pulp and paper products are made from sector and the young seedlings that<br />

sustainably farmed trees. Certified to international are destined to replace<br />

forestry standards, South Africa’s plantations are harvested trees.<br />

the source of thousands of everyday products.<br />

Copy paper. Newspapers. Tissue. Packaging. www.fibrecircle.co.za<br />

Nampak produces crêpe<br />

paper at Verulam and Rafalo<br />

produces tissue paper. SA Paper<br />

Mills is another paper producer.<br />

Mpact’s upgrade of its<br />

Felixton mill has increased capacity<br />

and improved efficiency.<br />

The project cost R765-million<br />

and takes overall production<br />

up to <strong>21</strong>5 000 tons and a<br />

lightweight container-board<br />

option has been included in the<br />

product lines. This is in response<br />

to market demand for lighter<br />

packaging. Mpact has plastics<br />

and paper operations, with the<br />

paper section divided into three<br />

divisions: paper manufacturing,<br />

corrugated and converted paper<br />

products and recycling.<br />

Timber<br />

The National Department<br />

of Agriculture, Forestry and<br />

Fisheries reports that South<br />

Africa has a shortage of sawn<br />

timber. TWK has announced that<br />

it wants to buy 11 000 hectares<br />

of forest land to support its<br />

woodchip sales and timber<br />

exports. TWK, which listed on<br />

ZAR X in 2017, runs a woodchip<br />

production and export facility<br />

in Richards Bay, with an annual<br />

capacity of 900 000 tons of woodchips. Two kinds of woodchip are<br />

produced: Acacia mearnsii and mixed eucalyptus. Exports are primarily<br />

to pulp and paper producers in India, China and Japan. Demand for<br />

woodchips was exceptionally high in the first half of 2019, but this led<br />

to an oversupply and a dip in prices in the second half of the year.<br />

The <strong>KwaZulu</strong>-<strong>Natal</strong> provincial government’s strategy of creating<br />

Industrial Economic Hubs (IEHs) includes the development and<br />

expansion of wood processing in the Harry Gwala District Municipality.<br />

Timber plantations are found in five parts of the province: northern<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, Midlands, southern <strong>KwaZulu</strong>-<strong>Natal</strong>, Zululand and<br />

Maputaland. Close to half-a-million hectares – 38.5% of the land in<br />

South Africa devoted to forestry – is allocated to timber plantations.<br />

Of this area, 70% is devoted to hardwoods and the balance to pine, the<br />

only softwood grown in large quantities in South Africa.<br />

The percentage of privately-owned forest land is 93.4%. Merensky<br />

has plantations in the Dargle forest while Sappi and Mondi have<br />

holdings across the province, and in other parts of South Africa.<br />

The Merensky Group operates one softwood sawmill and a<br />

panel-processing plant in Kokstad that is geared to manufacture<br />

according to customers’ needs in any sector. Export is done through<br />

the Port of Durban.<br />

NCT Forestry Co-op Limited is a timber-marketing entity with 1 800<br />

shareholding members, representing a total area of 300 000ha. R&B<br />

Timber Group has three pole treatment plants and is headquartered in<br />

Harding. <strong>Natal</strong> Forest Products, a Richmond-based company, is part of<br />

the R&B Group. Flaxton Treated Timbers operates out of Ixopo. ■<br />

Online Resources<br />

Forestry South Africa: www.forestry.co.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Agriculture and Rural Development:<br />

www.kzndard.gov.za<br />

Paper Manufacturers of South Africa: www.thepaperstory.co.za<br />

South African Institute of Forestry: www.saif.org.za<br />

Technical Association of the Pulp and Paper Industry of South Africa:<br />

www.tappi.org<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />



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www.fibrecircle.co.za<br />



Mining<br />

Titanium dioxide is made from minerals mined in northern <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

The crisis affecting South Africa’s power utility, Eskom, is causing<br />

South32, the Australian owners of the Hillside aluminium<br />

smelter, to rethink their operations there. Some analysts<br />

have suggested that part of the reason that Eskom is in crisis<br />

is the bad pricing arrangements that were signed with the previous<br />

owners of the smelter. If the advantageous rates that used to apply<br />

are not repeated when the price is negotiated again in <strong>2020</strong>, the<br />

business model will have to change. In 2019 about 400 workers took<br />

early retirement or voluntary retrenchment packages.<br />

Images: RBM Mines<br />

Most of the product from the smelter (high-quality primary<br />

aluminium ingot) is exported but some liquid metal form is sent to<br />

Isizinda Aluminium which supplies Hulamin, a company that has had<br />

a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major<br />

aluminium rolling operator in the region and it makes rolled products<br />

and extrusions.<br />

Other processing facilities in the province include the steel plant<br />

owned by ArcelorMittal in Newcastle and Safa Steel’s metal-coating<br />

factory in Cato Manor. RBM mines the minerals sands of the northern<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> coast and operates out of Richards Bay. The main<br />

products of the RBM mine are zircon, rutile, titania slag, titanium<br />

dioxide feedstock and high-purity iron.<br />

Tata Steel KZN’s high-carbon ferrochrome plant at Richards Bay<br />

went into business rescue and then liquidation before being bought<br />

by Luxembourg-based Traxys Africa in the middle of 2016, after a<br />

court ruled in its favour. Traxys has chrome mines in Mpumalanga and<br />

Limpopo provinces. Tata Steel did not have its own mines.<br />

Online Resources<br />

Geological Sciences, University of KZN: www.geology.ukzn.ac.za<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

Sector Insight<br />

The Hillside aluminium<br />

smelter is grappling with<br />

electricity issues.<br />

The KZN Sands mineral<br />

sands operation comprises a<br />

central processing complex in<br />

Empangeni and the Fairbreeze<br />

Mine. Expenditure over several<br />

years (which started in 2016) is<br />

expected to rise to R5-billion<br />

as it expands. Tronox, which is<br />

listed on the New York Stock<br />

Exchange, is the major shareholder<br />

in KZN Sands.<br />

Some of the coalfields of<br />

the province have been revived.<br />

Petmin’s Somkhele Anthracite<br />

Mine, north of Richards Bay,<br />

has one of the biggest reserves of<br />

open-pit anthracite in South Africa,<br />

with measured and indicated<br />

reserves of more than 51-million<br />

tons across its four areas.<br />

Finnish company Metso is<br />

spending about R53-million on<br />

building a second furnace at its<br />

Isithebe foundry in the iLembe<br />

District Municipality. This is in<br />

response to increased demand<br />

for large crusher wear parts. The<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> foundry is one of<br />

five foundries the company runs<br />

on four continents. ■<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Engineering<br />

The engineering sector needs a reliable supply of steel.<br />

One of the largest independent wire manufacturers in the<br />

country, Hendok Group, is steadily increasing its exports to<br />

other African countries. With more than 1 000 employees<br />

at the factory in the Phoenix Industrial Park in Durban, the<br />

company makes a wide variety of wires and is the country’s biggest<br />

producer of nails. ArcelorMittalSA is Africa’s biggest steelmaker and it<br />

has a plant at Newcastle, but tough times in the steel business have<br />

meant that the company has shut down some of its facilities. The first<br />

to be shuttered was Saldanha in the Western Cape and an analysis of<br />

the profitability of other centres is underway.<br />

Western Aqueduct project. Image: WK Construction<br />

Marine repair and engineering form a significant sector in the<br />

province, with established companies such as EBH South Africa<br />

offering comprehensive services at the ports of Durban and Richards<br />

Bay. Both ports are expanding and will continue to attract engineers.<br />

Dormac, which is headquartered in the Bayhead area of the Port<br />

of Durban, is best known for its marine engineering but it offers<br />

specialised services to the sugar industry and provides machinery for<br />

industrial giants like Toyota and Defy.<br />

A big project that has created a lot of work for engineers is the multiyear<br />

Western Aqueduct project to bring fresh water to greater Durban.<br />

The Western Aqueduct Joint Venture comprising three companies,<br />

Knight Piésold Consulting, Naidu Consulting and Royal Haskoning<br />

DHV, acted as agents for eThekwini Water and Sanitation. Stefanutti<br />

Online Resources<br />

Consulting Engineers South Africa: www.cesa.co.za<br />

Engineering Council of South Africa: www.ecsa.co.za<br />

Southern African Institute for Industrial Engineering: www.saiie.co.za<br />

South African Wire Association: www.sawa.co.za<br />


Sector Insight<br />

The School of Engineering<br />

at UKZN offers great variety.<br />

Stocks Pipelines played a big role,<br />

and there were opportunities<br />

for excellence and innovations<br />

in areas such as break-pressure<br />

tanks which were designed by<br />

Royal Haskoning DHV and built<br />

by ICON Construction.<br />

All of the province’s biggest<br />

industries require sophisticated<br />

engineering skills: aluminium<br />

smelters in Richards Bay and<br />

steel works in Newcastle,<br />

Richards Bay and Cato Ridge.<br />

There are also chemicals and<br />

plastics production plants, and<br />

large automotive works.<br />

The Transnet Engineering<br />

(TE) plant in the Port of Durban<br />

houses six business units and<br />

has 3 555 employees. The Coach<br />

unit upgrades coaches and the<br />

Auxiliary business is the main<br />

supplier of rail wagon tarpaulins<br />

to Transnet Freight Rail. The Port<br />

Equipment Maintenance unit<br />

and units specialising in wheels<br />

and locomotive overhaul are<br />

other entities.<br />

The School of Engineering<br />

at the University of <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> offers a variety of degree<br />

options, ranging from undergraduate<br />

qualifications to<br />

doctorates. The School offers<br />

eight areas of specialisation including<br />

Bioresources, Electronic<br />

and Computer Engineering and<br />

Land Surveying. ■<br />

33 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


Oil and gas<br />

A huge LPG storage facility has been built at Richards Bay.<br />

The supply of liquid petroleum gas (LPG) is set to be made easier<br />

and more reliable with the erection of the 22 600-ton<br />

Mounded LPG Facility at Richards Bay. Bidvest Tank Terminals<br />

has constructed the R1-billion storage facility for Petredec,<br />

which trades, transports and distributes LPG and other commodities.<br />

South Africa’s annual consumption of LPG, currently at 400 000 tons,<br />

is expected to rise to 600 000 tons. If a private partner can be found,<br />

a liquid natural gas (LNG) plant will produce 2 000MW at Richards Bay.<br />

This forms part of national government’s allocation of 3 126MW to<br />

natural gas in its medium-term energy policy to 2030.<br />

The world’s four largest<br />

LPG storage tanks at the<br />

Bidvest Tank Terminals<br />

site in Richards Bay.<br />

Image: Bidvest<br />

The National Department of Mineral Resources and Energy (DMRE)<br />

decided in 2016 that one of the first two gas-to-power plants to be<br />

constructed under the Independent Power Producer Procurement<br />

Programme would be allocated to Richards Bay. This has the potential<br />

to turn the Richards Bay Industrial Development Zone (RBIDZ) into an<br />

energy hub. The fact that neighbouring Mozambique has significant<br />

offshore deposits is a factor in this ambition. To produce its allocation<br />

of 2 000MW, the plant would have to use a million tons a year of LNG.<br />

An indication of the scale of activity in Mozambique came in 2019<br />

when Anadarko Petroleum, a US company, signed off on a $20-billion<br />

project to build an LNG plant. The projected spin-offs for the South<br />

African economy are estimated to top R7-billion.<br />

Online Resources<br />

National Energy Regulator of South Africa: www.nersa.org.za<br />

Petroleum Agency SA: www.petroleumagencysa.com<br />

South African National Energy Association: www.sanea.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

Sector Insight<br />

Italian company Eni is<br />

looking for hydrocarbons.<br />

Eni, one of the world’s biggest<br />

energy companies, has an<br />

agreement with Sasol Petroleum<br />

International to explore for<br />

hydrocarbons off the coast of<br />

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

The regulator and promoter<br />

of oil and gas exploration in South<br />

Africa, Petroleum Agency South<br />

Africa, has awarded coalbedmethane-gas<br />

exploration rights<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> to NT Energy<br />

Africa, which has a partnership<br />

with the Central Energy Fund.<br />

These awards are for onshore<br />

exploration. The Petroleum<br />

Agency SA is an agency of the<br />

National Department of Energy.<br />

Getting fuel to the province<br />

of Gauteng is the key mission of<br />

the new multi-purpose pipeline<br />

(NMPP). Refined products such<br />

as jet fuel, sulphur diesel and<br />

both kinds of octane petrol<br />

are carried. The infrastructure<br />

of Transnet Pipelines is said<br />

to reduce the number of fuel<br />

tankers on South African roads<br />

by about 60%.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is home to<br />

two major oil refineries and is<br />

the first link in the pipeline chain<br />

that links Gauteng province, the<br />

industrial heartland of South<br />

Africa, with vital fuels. The Port<br />

of Durban handles 80% of South<br />

Africa’s fuel imports. <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> is thus a key player in the<br />

country’s oil and gas industry. ■<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Construction and property<br />


Durban’s beachfront promenade now extends from the harbour to Blue Lagoon.<br />

A<br />

private company is tackling urban regeneration in Durban, one<br />

building at a time. Serial property investor Jonny Friedman<br />

of Urban Lime has carefully selected certain precincts with<br />

potential for a mix of uses, including offices and accommodation.<br />

Pioneer Place, Durban Club Chambers, 320 Pixley and Florida Road<br />

are among their investments. Friedman is also invested in converted<br />

warehouses in London and various Cape Town properties.<br />

This private initiative chimes with a public programme that aims<br />

to make Durban’s inner city “Africa’s leading, most vibrant, liveable,<br />

walkable City Centre”. This is the Inner City Local Area Plan (LAP)<br />

for Durban. Developed for the eThekwini Municipality by a Joint<br />

Venture called IPPU, which comprises Iliso, TPI, PMSA, UrbanEcon<br />

including Cox Architecture, Urban Solutions, Urban Earth, Jo Lees<br />

and Joe Kitching. A major milestone was reached in November 2019<br />

when the beachfront promenade extension reached the harbour.<br />

This means that residents anywhere in the city can now step onto the<br />

promenade, from the harbour in the south to Blue Lagoon in the north.<br />

The project began in early 2018 and cost R400-million.<br />

The Point Waterfront Development (directly behind the latest<br />

extension to the promenade) is a major project that is transforming<br />

what was an under-utilised and somewhat rundown part of the city<br />

into a vibrant, multi-use precinct. Some projections put the total<br />

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

number of permanent jobs to be created at 6 750. It offers a mix of<br />

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

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

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

approved, while other major projects in the inner city include the<br />

Warwick Junction transport interchange and the Centrum Government<br />

Precinct which will formalise the relationship between buildings such<br />

as the International Convention Centre and a related hotel, the library,<br />

council chambers and the redevelopment of Gugu Dlamini Park.<br />

According to the organisers of the 2019 KZN Construction Expo,<br />

infrastructure will attract more than R200-billion in investment over<br />

seven years and R35-billion will be spent over 15 years at the Port<br />

Waterfront development. The King Shaka International Airport and<br />

Dube TradePort are also attracting property investments.<br />

Online Resources<br />

Construction Industry Development Board: www.cidb.org.za<br />

Master Builders Association <strong>KwaZulu</strong>-<strong>Natal</strong>: www.mba-kzn.co.za<br />

SA Estate Agency Affairs Board: www.eaab.org.za<br />

SA Institute of Valuers: www.saiv.org.za<br />

Sector Insight<br />

Durban could become the<br />

continent’s most liveable city.<br />

Two new industrial parks<br />

are being developed: Cornubia<br />

is part of a larger project near<br />

Umhlanga and Clairwood in<br />

Durban South will offer more<br />

than 300 000m² of A-grade<br />

industrial space. Tongaat<br />

Hulett Developments (THD)<br />

launched the nTshongweni<br />

Urban Development on either<br />

side of the busy N3 highway<br />

west of the city in 2018. The<br />

Cornubia project covers 1 300ha<br />

about 7km from the airport<br />

and encompasses indust-rial,<br />

commercial, residential sections.<br />

The southern part of the project<br />

will cater for 24 000 homes,<br />

industrial development and<br />

more than one-million square<br />

metres of commercial floor<br />

space, all complemented by<br />

public open spaces (430ha) and<br />

social and community facilities.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a number<br />

of brick companies and four<br />

cement factories. Three of these<br />

are run by NPC at Simuma,<br />

Durban and Newcastle, and<br />

the company has a further six<br />

sites for concrete and two for<br />

aggregate. NPC is part of the<br />

Intercement group. Lafarge<br />

has several aggregate quarries<br />

and eight Readymix plants<br />

around the province. The<br />

company’s grinding operation<br />

in Richards Bay closed in 2017. ■<br />

35 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


Tourism<br />

Hotel groups are investing in new properties and refurbishment.<br />

Moses Mabhida Stadium. Image: Kevin Sawyer<br />

A<br />

dventures don’t come more hair-raising than throwing yourself<br />

into the void above a sports stadium, but that’s what<br />

thousands of visitors to the Moses Mabhida Stadium have<br />

been doing for a decade.<br />

The SkyCar, a funicular trip over the top of the roof, is under repair<br />

but bungy-jumping is still very popular, as is the “Adventure Walk” on<br />

the south side of the stadium. The 56 000-capacity stadium is home<br />

to a professional soccer team and forms part of a sporting precinct<br />

that includes the province’s professional rugby franchise, the Kings Park<br />

Stadium, and has greatly increased <strong>KwaZulu</strong>-<strong>Natal</strong>’s ability to host big<br />

events such as the Fact Durban Rocks and the Monster Jam.<br />

The other major events asset in the province’s largest city is the<br />

Durban International Convention Centre (Durban ICC). A major<br />

international football conference was due to be held at the venue in<br />

March <strong>2020</strong>, with the FIFA secretary-general slated to speak. However,<br />

the global health scare related to the Covid-19 virus saw that event<br />

(and many others) postponed or cancelled.<br />

The 2019 Africa’s Travel Indaba attracted 342 first-time buyers out<br />

of a total of 1 663 buyers from more than 80 countries, cementing the<br />

event as a major date on the tourism industry’s calendar.<br />

The meetings, incentives, conference and exhibition sector (MICE)<br />

is a priority sector for the provincial government. The Convention<br />

Bureau has booked dozens of events and conferences since 2012,<br />

bringing more than R3-billion into the provincial economy. More<br />

than 7 000 delegates are annually attracted to Africa’s Travel Indaba<br />

Sector Insight<br />

Moses Mabhida Stadium<br />

has become an iconic<br />

symbol of <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

to exhibit South Africa’s assets<br />

to international tour operators.<br />

The city has secured the Indaba<br />

until 2022.<br />

A number of new initiatives<br />

are expanding options for visitors.<br />

These include the creation<br />

of a new Cruise Terminal (dealt<br />

with separately in this journal),<br />

the development of caves at<br />

Ngodini and Ndumo, and the<br />

upgrading of the Mandela<br />

Capture Site near Howick.<br />

Another potential growth<br />

area is health tourism. Upwards<br />

of seven-million people travel the<br />

world annually for procedures,<br />

and South Africa is well placed<br />

to receive a percentage of this<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />



market. Richards Bay has hosted<br />

a conference on issues such as<br />

investment, training and the<br />

development of products for this<br />

growing sector. The combined<br />

contribution of retail and tourism<br />

to provincial GDP is 14%.<br />

Hotels<br />

Research by Tourism <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> shows that the coastal<br />

province consistently has the best<br />

hotel occupancies in the country.<br />

Tsogo Sun spent R1.6-billion<br />

on refurbishing its Suncoast<br />

complex on Durban’s Golden<br />

Mile. Suncoast Casino Hotels &<br />

Entertainment covers a huge<br />

area and offers a wide variety of<br />

entertainment options.<br />

The recent upgrade included<br />

the addition of seven new<br />

restaurants, new retail outlets, a<br />

new theatre and an event venue,<br />

and increased space at the casino.<br />

More underground parking was<br />

created and the whole complex<br />

was given a fresh look.<br />

Tsogo Sun has four other<br />

hotels on the Golden Mile and<br />

six hotels in Durban with a<br />

further four in nearby Umhlanga,<br />

where one of the group’s most<br />

luxurious hotels, the 89-room<br />

Beverly Hills, is located. A “megahotel”<br />

was created with the<br />

amalgamation of the Southern<br />

Sun North Beach and Southern<br />

Sun Elangeni hotels.<br />

Premier Hotels & Resorts will<br />

spend about R420-million on<br />

two new hotels at Umhlanga.<br />

Currently under construction,<br />

the hotel complex is located<br />

alongside the Gateway Theatre<br />

of Shopping next to Umhlanga<br />

Ridge. The four-star Premier<br />

Hotel will have 130 rooms while the three-star Splendid Inn by Premier<br />

will be equipped with 64 bedrooms. The group has hotels and resorts<br />

in six provinces.<br />

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

of the ambitious R3-billion Oceans Umhlanga development. Some<br />

construction work has been halted because of problems experienced<br />

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

shopping mall sections of the planned complex are going ahead.<br />

A 207-room Hilton Garden Inn planned to be operating at<br />

Umhlanga Arch in <strong>2020</strong>. Hilton Durban acquired a new owner in<br />

2018 when Bin Otaiba Hotels bought it, together with four hotels in<br />

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

The upgrading of the Point area between the beach and the Port<br />

of Durban has resulted in major investments. The Docklands Hotel at<br />

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

about R100-million to develop.<br />

The Royal Hotel in the heart of Durban is one of eight Three Cities<br />

Group hotels in the province. The Golden Horse Casino Hotel is a Three<br />

Cities property, and the Group administers the International Hotel<br />

School in Westville that is also hosts the Christine Martin School of<br />

Food and Wine.<br />

Drakensberg Amphitheatre.<br />

IFA Hotels & Resorts runs several luxury properties including the<br />

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

has 13 properties and Gooderson Leisure has a varied portfolio.<br />

Sibaya Casino and Entertainment Kingdom, a Sun International<br />

property, is north of Durban between Umdloti and Umhlanga. The<br />

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

Casino) and Pietermaritzburg (Golden Horse Casino) are run by<br />

Century Casinos Newcastle, Peermont Global and Akani Msunduzi<br />

Management respectively. ■<br />

Online Resources<br />

Durban International Convention Centre: www.icc.co.za<br />

Ezemvelo KZN Wildlife: www.kznwildlife.com<br />

Moses Mabhida Stadium: www.mmstadium.com<br />

Tourism <strong>KwaZulu</strong>-<strong>Natal</strong>: www.zulu.org.za<br />

37 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


Manufacturing<br />

New factories are being built at Dube TradePort and Cornubia.<br />

A<br />

new plant to make washing machines has created 75 jobs<br />

at the Durban plant of white-goods manufacturer Defy. The<br />

R1<strong>21</strong>-million investment is part of a R1.2-billion investment<br />

programme which Turkish company Arçelik Global has been<br />

following since it bought Defy in 2011. The company has another<br />

plant in at Ezakheni (near Ladysmith) and one in the Eastern Cape.<br />

Indian generic drug manufacturer Cipla is to build a new facility<br />

at Dube TradePort to complement its existing factory in Durban.<br />

LG Electronics South Africa has opened a R<strong>21</strong>-million factory and<br />

distribution centre in Cornubia, north of Durban.<br />

Expansion of production normally heralds an uptick in the<br />

economy. Unfortunately, the fact that more aluminium products are<br />

going to be made by Hulamin’s extrusion facility in Pietermaritzburg<br />

reflects the fact that the company has closed one of factories in<br />

another province. The company believes its restructuring is working<br />

well, and its beverage business is doing well. Hulamin also makes rolled<br />

products (pictured) at Edendale, Pietermaritzburg and at Camps Drift.<br />

The manufacturing sector contributes 17.7% to the provincial<br />

Gross Domestic Product (GDP) of <strong>KwaZulu</strong>-<strong>Natal</strong>. The strongest export<br />

sectors are base-metals (32% including aluminium), mineral products<br />

such as ores, vehicles and chemical products.<br />

New opportunities in the Blue economy (ship-building and<br />

maintenance, oil-rig repair and servicing) and the Green economy (solar<br />

panel manufacture, solar, biogas and wind energy plant construction,<br />

management and maintenance, heating and cooling devices) are set<br />

to grow in <strong>KwaZulu</strong>-<strong>Natal</strong> with the allocation of geographical hubs to<br />

support these sectors, and the introduction of policies and incentives<br />

designed to make them competitive.<br />

The Richards Bay Industrial Development Zone has been identified<br />

as an area that can attract investment in both of these sectors while the<br />

Port of Durban already has a strong boat-building and maintenance<br />

sector. The nine-tug contract put out by Transnet National Ports<br />

Authority (TNPA) is worth R1.4-billion and was won by Durban-based<br />

Southern African Shipyards Durban. iLembe District Municipality is<br />

intended as the renewable energy hub of the province, with renewable<br />

energy components manufacturing as a key subsector.<br />

Online Resources<br />

Aluminium Federation of South Africa: www.afsa.org.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

Enterprise iLembe: www.enterpriseilembe.org.za<br />

Manufacturing Circle: www. manufacturingcircle.co.za<br />

Plastics SA: www.plasticsinfo.co.za<br />

Sector Insight<br />

Defy is hiring.<br />

There are <strong>21</strong>9 clothing<br />

companies in the province.<br />

Textile manufacturer Africa<br />

Bespoke Apparel launched<br />

its R81-million factory in<br />

Verulam, while Canvas and Tent<br />

Manufacturing has more than<br />

400 employees in Ladysmith.<br />

Carpet manufactur-ers Belgotex<br />

Floorcoverings and Ulster Carpets<br />

have facilities in Pietermaritzburg<br />

and Durban respectively, while<br />

Böhler Uddeholm produces<br />

tooling materials and welding<br />

consumables in Pinetown.<br />

The chemicals and petrochemicals<br />

subsector makes up<br />

17% of the province’s manufacturing<br />

output, with industrial<br />

chemicals accounting for nearly<br />

a third. Two large oil refineries<br />

and a sophisticated sugar milling<br />

and refining industry underpin<br />

the provincial chemical manufacturing.<br />

Steel and aluminium<br />

are other heavy manufacturing<br />

products. Sappi Saiccor’s<br />

Umkomaas plant is the world’s<br />

biggest producer of specialised<br />

cellulose, with production edging<br />

upwards every year towards full<br />

capacity of more than 800 000<br />

tons per annum. <strong>KwaZulu</strong>-<strong>Natal</strong><br />

produces nearly a third of South<br />

Africa’s plastic requirements.<br />

Nampak has several packaging<br />

facilities in the province and<br />

Mpact’s Pinetown facility<br />

specialises in FMCG containers. ■<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Automotive<br />

Toyota is to spend R2.4-billion on a new vehicle line.<br />

In a year in which South Africa’s total<br />

vehicle exports topped 350 000, it was<br />

perhaps not surprising that Durban’s Car<br />

Terminal boasted a record of putting<br />

more than 500 000 fully-built-up units (FBUs)<br />

through the port in 2018/19. The figure includes<br />

FBUs that are not motor vehicles and<br />

includes vehicle imports.<br />

Toyota’s popular Fortuner is exported at a<br />

rate of about 150 per month. The company’s<br />

plant, just a few kilometres south of the<br />

harbour at Prospecton, is to receive a R2.4<br />

billion investment injection in order to produce<br />

a new passenger vehicle from the end of <strong>2020</strong>. The Toyota Hybrid<br />

Synergy Drive vehicle will be produced as a variant. Toyota sells about<br />

a quarter of the vehicles sold in South Africa, and accounts for the same<br />

proportion of export volumes. The company’s total investment of R4.2-<br />

billion between 2019 and 20<strong>21</strong> includes other manufacturing projects<br />

and a huge increase in warehousing capabilities.<br />

The other large-scale original equipment manufacturer in the<br />

province is Bell Equipment. Between the Toyota plant and the Richards<br />

Bay facility of heavy-equipment manufacturer Bell Equipment,<br />

upwards of 11 000 people are employed. In 2019 Bell won the<br />

“Major Contributor to Innovation and Technological Advancement<br />

in KZN” award and the “Exporter of the Year” award. Exports to more<br />

than 80 countries make up about 40% of the company’s turnover<br />

and local content of those exports is at 70%. Bell is best known for<br />

its heavy equipment which is primarily used in the mining and<br />

construction sectors.<br />

Another manufacturer of earthmoving equipment is Dezzi, with<br />

18 offices and branches. In 2018 AIH Logistics started assembling<br />

Mahindra and Bolero bakkies from kits imported from India on a 5<br />

000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant<br />

at Hammars-dale has increased capacity to 150 000 used truck tyres<br />

per year and should exceed 200 000 soon, while Powerstar assembles<br />

Online Resources<br />

Automotive Industry Development Centre: www.aidc.co.za<br />

Durban Automotive Cluster: www.dbnautocluster.org.za<br />

National Association of Automobile Manufacturers of South Africa<br />

(NAAMSA): www.naamsa.co.za<br />

National Association of Automotive Component and Allied<br />

Manufacturers (NAACAM): www.naacam.co.za<br />

Sector Insight<br />

Bell Equipment is<br />

scooping awards.<br />


Image: Bell Equipment<br />

trucks in Pietermaritzburg on a<br />

site formerly used by Super<br />

Group. <strong>KwaZulu</strong>-<strong>Natal</strong>’s substantial<br />

automotive components<br />

sector includes large manufacturers<br />

such as GUD Filters, while<br />

39 companies (with 17 000<br />

employees) are members of the<br />

Durban Automotive Cluster.<br />

Trade and Investment<br />

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

the province’s component<br />

automotive manufacturers<br />

enjoy a combined turnover<br />

approaching R10-billion.<br />

The Behr Group has an<br />

air-conditioning and cooling<br />

systems factory in Durban.<br />

Ramsay Engineering supplies<br />

cross-car beams for BMW and<br />

Ford. Funding was received from<br />

the Industrial Development<br />

Corporation (IDC) to buy new<br />

tool-making technology to make<br />

this possible. ■<br />

41 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


Energy<br />

The sugar industry is ready to sell excess power.<br />

Sugar plant. Image: Illovo Sugar<br />

South Africa’s shortage of reliable electricity supply came into<br />

sharp focus in 2019. The country’s sugar industry, which is particularly<br />

strong in <strong>KwaZulu</strong>-<strong>Natal</strong>, says it generates far more<br />

power than it needs but national government is hesitating in<br />

allowing companies to sell to the grid.<br />

Encouraging signs were given that government was moving in<br />

this direction in the President’s State of the Nation Address and in<br />

remarks made by the Minister of Minerals Resources and Energy at the<br />

Investing in African Mining Indaba in February <strong>2020</strong>, but no licences or<br />

concrete proposals were immediately forthcoming.<br />

The managing director<br />

of Illovo Sugar SA, Mamongae<br />

Mahlare, told the Sunday<br />

Times in March that the sugar<br />

industry is in real need of<br />

some other source of income<br />

to offset tough times. Selling<br />

energy to the grid (and<br />

investigating biofuel and<br />

bio-energy) are “key” to the<br />

sector’s future, she told the<br />

newspaper. At the company’s<br />

Eswatini mill, Ubombo, it has<br />

a commercial supply agreement<br />

with the Eswatini<br />

Electricity Company.<br />

The province’s other<br />

sugar giant, Tongaat Hulett, produces between 12MW and 14MW of<br />

power at its mills and believes that the national sugar industry could<br />

generate between 700MW and 900MW.<br />

A 17MW biomass project represents the province’s only approved<br />

project in terms of the national Renewable Energy Independent Power<br />

Producer Procurement Programme (REIPPPP).<br />

An open cycle gas turbine plant at Shakaskraal in the iLembe<br />

District Municipality can be converted to gas-fired technology, a<br />

method which energy planners are encouraging. The 670MW plant<br />

came on stream in 2017. Its project company, Avon Peaking Power,<br />

Online Resources<br />

National Department of Energy: www.energy.gov.za<br />

National Energy Regulator: www.nersa.org.za<br />

South African National Energy Development Institute:<br />

www.sanedi.org.za<br />

Sector Insight<br />

Richards Bay hopes to<br />

attract LNG investors.<br />

is jointly owned by a community<br />

trust, Mitsui (Japan), Legend<br />

Power Solutions (South Africa)<br />

and ENGIE of France.<br />

As part of the provincial<br />

government’s strategy to<br />

boost regional development,<br />

the iLembe District has been<br />

named as an Industrial<br />

Economic Hub (IEH) for the<br />

renewable energy sector.<br />

Khanyisa Projects has set<br />

up 26 biodigesters which<br />

produce gas for cooking at<br />

Ndwedwe in the iLembe District.<br />

The project forms part of the<br />

Working for Energy programme<br />

of the South African National<br />

Energy Development Institute<br />

(SANEDI) which promotes the<br />

use of sustainable clean energy<br />

in rural areas.<br />

The Richards Bay Industrial<br />

Development Zone (RBIDZ)<br />

has been named as the site for<br />

2 000MW liquefied natural gas<br />

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

government’s gas-to-power<br />

plan. RBIDZ is also the site of a<br />

new biomass plant.<br />

Biomass technology is at the<br />

centre of the conversion scheme<br />

of South African Breweries at<br />

its Prospecton plant south of<br />

Durban. Methane-gas emissions<br />

from a nearby effluent plant are<br />

piped to the plant where they<br />

are converted to electricity. ■<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Water<br />

Two new dams are under construction.<br />

Two new dams will add 800-million litres of water per day<br />

to the available supply in <strong>KwaZulu</strong>-<strong>Natal</strong>. As part of the lower<br />

uMkhomazi bulk water scheme, utility Umgeni Water<br />

will spend about R26-billion on the Smithfield Dam and<br />

R2.4-billion on the Ngwadini Dam.<br />

Umgeni Water currently supplies more than 400m³ of potable<br />

water to its six large municipal customers: eThekwini Metropolitan<br />

Municipality, iLembe District Municipality, Sisonke District Municipality,<br />

Umgungundlovu District Municipality, Ugu District Municipality<br />

and Msunduzi Local Municipality. The company has five dams, 10<br />

waterworks, five water-treatment plants and two waste-water works.<br />

Large parts of the northern part of the province are served by<br />

Mhlathuze Water. The utility has assets valued at more than R3-billion<br />

and its area of supply covers 37 000m².<br />

Clearing pit toilets in remote rural areas and on steep inclines<br />

presents an engineering challenge. In response to a Water Research<br />

Commission project on the subject, Partners in Development, a<br />

Pietermaritzburg-based engineering and project management<br />

company, has developed the eVac pit-emptying machine. It’s<br />

lightweight, mobile and has strong sucking power.<br />

New technology has been installed at the Verulam Wastewater<br />

Treatment Works of the eThekwini Municipality. Murray & Roberts<br />

Water and its European technology partner, Organica Water, has<br />

installed an environmentally-friendly system that uses 30% less energy<br />

and produces 30% less sludge.<br />

Richards Bay has installed a 10-container desalination plant next to<br />

the municipal water-treatment plant at Alkanstrand. The first mobile<br />

sea-water purification unit in South Africa, it comprises 10 containers<br />

and is located adjacent to the water-treatment plant at Alkantstrand. It<br />

can deliver 10 megalitres of drinking water. However, the high cost of<br />

electricity means that the unit is used sparingly. Solar energy is being<br />

investigated as a possible alternative.<br />

In 2018 JG Afrika delivered a R72-million desalination plant to<br />

South32’s Hillside aluminium smelter in the same town.<br />

The area north of the Durban central business district is<br />

one of the fastest-growing urban areas in South Africa, with a<br />

Online Resources<br />

Mhlathuze Water: www.mhlathuze.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Partners in Development: www.pid.co.za<br />

Umgeni Water: www.umgeni.co.za<br />

Water Research Commission: www.wrc.org.za<br />


Sector Insight<br />

Pietermaritzburg engineers<br />

are tackling pit toilet<br />

clearance.<br />

number of large office and<br />

accommodation projects going<br />

ahead simultaneously. This is<br />

a welcome development for<br />

the economy, but the new<br />

buildings also create pressure on<br />

infrastructure.<br />

Image: Umgeni Water<br />

The multi-year, R250-<br />

million Northern Aqueduct<br />

Augmentation project was<br />

initiated in 2014 and the fifth<br />

phase of the project is underway.<br />

This will provide water for<br />

Durban North, Umhlanga,<br />

Newlands, KwaMashu, Phoenix<br />

and Cornubia.<br />

Nedbank sponsors the<br />

clearing of alien vegetation in<br />

the country’s water-catchment<br />

areas, including in <strong>KwaZulu</strong>-<br />

<strong>Natal</strong>. The Nedbank sponsorship<br />

of the WWF’s Water Balance<br />

Programme has seen water<br />

flowing more freely in the<br />

Umgeni catchment area. ■<br />

43 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>


Banking and financial services<br />

The Port of Durban will expand with a loan from the new Brics bank.<br />

The Brics New Development Bank has made a $200-million loan<br />

for the expansion of the container terminal in Durban. The<br />

busy port is currently stretched beyond capacity and waiting<br />

time for trucks can be extremely long.<br />

Activist groups in Durban’s southern suburbs are opposing the<br />

loan and the expansion, saying that further development will increase<br />

pollution in the area and lead to even more dangerous traffic congestion.<br />

Up the coast at Richards Bay, the World Bank’s International Finance<br />

Corporation (IFC) has committed $2-million to a feasibility study on the<br />

construction of a liquefied natural gas (LNG) storage and regasification<br />

terminal. The study’s costs are shared with Transnet and a private investor<br />

will be sought if the feasibility study is positive.<br />

Durban Container Terminal.<br />

Image: Transnet<br />

In 2017 Tyme Digital received a licence to run a bank. By early<br />

2019, TymeBank was available in 500 Pick n Pay and Boxer stores and<br />

more than 50 000 customers had an account. Tyme stands for Take<br />

Your Money Everywhere; the bank does not have a branch network.<br />

African Rainbow Capital began as the venture’s BEE partner but in 2018<br />

bought out the Commonwealth Bank of Australia.<br />

Second to market among the country’s new banks was Discovery<br />

Bank, which officially launched in March 2019. Discovery Bank will apply<br />

the behavioural model it uses in its health business to reward good<br />

financial behaviour. The Discovery group is already a giant on the JSE<br />

with a market value of R83-billion and access to millions of customers.<br />

Online Resources<br />

Association for Savings & Investment South Africa: www.asisa.org.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

Insurance Institute of South Africa (<strong>KwaZulu</strong>-<strong>Natal</strong>): www.iikzn.co.za<br />

South African Institute for Chartered Accountants: www.saica.co.za<br />

Sector Insight<br />

The International Finance<br />

Corporation is investigating<br />

energy options.<br />

Three state entities<br />

are merging to create the<br />

new Human Settlements<br />

Development Bank: the National<br />

Housing Finance Corporation,<br />

the Housing Loan Fund and the<br />

National Urban Reconstruction<br />

and Housing Agency.<br />

The focus will be on financing<br />

housing for poorer households<br />

and for large state-funded<br />

housing projects. Part of the<br />

drive is to integrate cities better<br />

and to combat the legacy of<br />

the spatial divide that apartheid<br />

left behind. Private sector<br />

investment will be required.<br />

The Chartered Institute of<br />

Government Finance, Audit and<br />

Risk Officers (Cigfaro) advises<br />

institutions, trains its members in<br />

public finance and promotes the<br />

interests of professionals in the<br />

public sector. It also develops<br />

and assesses qualifications and<br />

advises tertiary institutions on<br />

the requirements for courses.<br />

The South African Institute<br />

for Chartered Accountants<br />

International provides training<br />

in financial reporting standards<br />

for SMMEs while the Insurance<br />

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

(IISA) holds regular education<br />

workshops. The institute’s<br />

mentorship programme is run in<br />

association with the Musifunde<br />

Training Centre. ■<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Education and training<br />

Maths and science is in focus.<br />

AMaths and Science School of Excellence is due to open in<br />

<strong>2020</strong> at La Mercy, north of Durban. The long-planned project<br />

(pictured) on the site of a closed primary school is back<br />

on track and is part of a wider provincial programme that<br />

includes a Special School for Autism (<strong>2020</strong>) and two Schools of Excellence<br />

scheduled to be started in 20<strong>21</strong>; for Agriculture<br />

in Umgungundlovu and Maritime studies in Umlazi.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has 2.8-million school pupils,<br />

many of whom are in rural areas. Transport is<br />

provided to 350 schools, covering 59 000 pupils, and<br />

2 400 bicycles have been made available under the<br />

Shovakalula programme.<br />

There are two universities and two universities<br />

of technology in <strong>KwaZulu</strong>-<strong>Natal</strong>, and the national<br />

distance university, the University of South Africa<br />

(Unisa), has a presence in five locations. USB<br />

Executive Development offers business courses<br />

for executives. The University of <strong>KwaZulu</strong>-<strong>Natal</strong> has opened a new<br />

Chemistry Postgraduate Research Facility at the School of Chemistry<br />

and Physics in Pietermaritzburg.<br />

The Durban University of Technology (DUT) has six faculties<br />

operating in seven campuses in Durban and in the Midlands. DUT is<br />

well known for its outstanding graphic-design school and offers one<br />

of only two chiropractic programmes in South Africa. The University<br />

of Zululand offers diploma and degree courses on two campuses at<br />

Empangeni and Richards Bay.<br />

The unbundling from the successful Curro group of a separate<br />

tertiary entity which listed on the JSE as Stadio Holdings is a good<br />

indicator of the growth of the private sector in education. Stadio<br />

currently has three institutions: Southern <strong>Business</strong> School, AFDA (the<br />

School for the Creative Economy) and the Embury Institute for Higher<br />

Education which has a campus in Musgrave, Durban.<br />

There are seven schools in <strong>KwaZulu</strong>-<strong>Natal</strong> operating under Curro<br />

brands. Advtech, the other big private company in the sector, already<br />

has 27 tertiary campuses nationally, in addition to its 78 schools<br />

operating under a variety of labels. Advtech operates 10 educational sites<br />

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

Online Resources<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Education: www.kzneducation.gov.za<br />

National Department of Higher Education and Training:<br />

www.dhet.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

Training<br />


Sector Insight<br />

Majuba TVET College is a<br />

new Centre of Specialisation<br />

for boiler-making.<br />

Image: KZN Dept of Education<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has nine Technical<br />

and Vocational Education<br />

and Training (TVET) Colleges with<br />

a total enrolment around 80 000.<br />

Coastal KZN TVET College gives<br />

students practical experience<br />

through facilities such as the<br />

Nongalo Industrial Park. The<br />

college hosts the Samsung<br />

Engineering Academy, a Tooling<br />

Centre of Excellence and<br />

a manufacturing plant for<br />

sanitary towels. The college has<br />

several sites on the South Coast<br />

and caters for 15 400 students.<br />

Majuba TVET College has recently<br />

been appointed as a Centre of<br />

Specialisation for boiler-making.<br />

The Mnambithi TVFET College is<br />

located in the Battlefields Route<br />

tourism area and offers National<br />

Diploma courses in tourism and<br />

other qualifications. A satellite<br />

campus operates at Estcourt. ■<br />

45 KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong>

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INDEX<br />

INDEX<br />

Africa Biomass Company …....................................................................................................................................9, 27<br />

Citiq Prepaid............................................................................................................................................................................IBC<br />

Chartered Institute of Finance Audit and Risk Officers (CIGFARO)..................................................... 11<br />

Durban Chamber of Commerce and Industry ................................................................................................... 2<br />

Durban International Convention Centre (Durban ICC) ..................................................................... OBC<br />

Fibre Circle ........................................................................................................................................................................ 30, 31<br />

Indaba Lodge, Richards Bay........................................................................................................................................... 38<br />

Invest Durban ........................................................................................................................................................................IFC<br />

Metropolitan.......................................................................................................................................................................4, 46<br />

Nedbank .............................................................................................................................................................................20-23<br />

Petroleum Agency South Africa ................................................................................................................................... 6<br />

Transnet Pipelines ................................................................................................................................................................ 16<br />

KWAZULU-NATAL BUSINESS <strong>2020</strong>/<strong>21</strong><br />




The Durban ICC has always aimed<br />

to position itself as “Africa’s Leading<br />

Convention Centre” but having<br />

invested in the latest, cutting-edge<br />

meeting technology, the centre is<br />

re-inventing itself as the continent’s<br />

leading high-tech convention<br />

centre. “Without moving away from<br />

our existing market positioning<br />

we are adding this competitive<br />

edge and aiming to also be<br />

recognised as “Africa’s Smartest<br />

Convention Centre”, said Durban<br />

ICC Chief Executive Officer, Lindiwe<br />

Rakharebe.<br />

The Centre is offering a range of innovative<br />

solutions such as Hybrid events, Livestreaming,<br />

Video-on-Demand, and Remotepresentation<br />

events. For the uninitiated, a<br />

Hybrid Event is simply the combination of a<br />

traditional face-to-face event with an online<br />

component, which extends the reach of<br />

the conference to a wider audience using<br />

technology like live-streaming.<br />

The best part is that companies are taking<br />

advantage of this kind of event solution even<br />

during the lockdown by using the technology<br />

on offer and not having to wait until live<br />

events fully start up again. Some are even<br />

able to reach much larger audiences by<br />

taking their events online than they would<br />

have with their traditional live event.<br />

The virtual events offer a range of benefits, for instance, the<br />

digital delegate can:<br />

• Get all the content of the live event from the comfort and safety of<br />

their homes<br />

• Watch the speakers via the video feed and view any presentations<br />

via the picture in picture mode<br />

• Engage remotely with the event in real time via the event’s chat or<br />

social media channels<br />

• Share the content with others in their organisation directly without<br />

having to repeat it themselves second-hand to their colleagues<br />

• Choose to consume the event content at a later time if that suits<br />

their schedule<br />

• View selected elements from the event programme which pertain to<br />

their area of interest.<br />

While this is just the latest addition to<br />

the ever-evolving range of tech offerings<br />

available at the Durban ICC, as the Centre<br />

has always taken pride in being on the<br />

leading edge of the latest developments in<br />

this space. The Durban ICC hosted its own<br />

live-stream event in September 2019 and<br />

has subsequently run several successful<br />

events of this kind for its clients. “There is<br />

no shortage of new innovations out there,<br />

but it’s our job to incorporate the meaningful<br />

ones which make our clients’ lives easier<br />

into the Durban ICC customer experience”,<br />

added Scott Langley, Durban ICC’s Director<br />

of Marketing, Sales and Events.<br />

The Durban ICC boasts the country’s fastest<br />

convention centre Wi-Fi network and that<br />

which is able to support the most concurrent<br />

users. It was also the first centre in the<br />

country to offer indoor Google Maps and to<br />

incorporate the ‘whatthreewords’ navigation<br />

system into their complex. The Centre has<br />

also invested heavily in its massive video<br />

screens and interactive digital totems in the<br />

past year.<br />

No wonder it is also being recognised as<br />

Africa’s Smartest Convention Centre.

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