KwaZulu-Natal Business 2021-22

christoffscholtz

The 2021/22 edition of KwaZulu-Natal Business is the 13th issue of this unique guide to business and investment in KwaZulu-Natal Province in South Africa. Launched in 2008, this annual journal has established itself as the premier business and investment guide for the province.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special report on the prospect of increasing exports on the back of the signing of a continental free trade agreement. The province’s export infrastructure is examined and the diversity and export successes of several companies in a wide range of sectors are noted.
The increasing importance of the Oceans Economy to the future of the provincial and national economy is relevant to any examination of the economy of KwaZulu-Natal. This applies as much to trade and ship-repair as it does to the exciting gas discoveries which have been made off the coast of Mozambique and South Africa.
To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com

ole in the automotive sector while the Engen Oil

Refinery is a strategic asset.

The province’s existing infrastructure, good soils

and fine weather provide a solid base for future

growth. KwaZulu-Natal already has significant

capacity in heavy and light manufacturing, agriprocessing

and mineral beneficiation, all of which

is supported by South Africa’s two busiest ports

(Richards Bay and Durban), the country’s busiest

highway (the N3), a modern international airport

and pipelines that carry liquids of all types to and

from the economic powerhouse of the country

around Johannesburg in the interior.

Sappi’s dissolving pulp mill at Umkomaas

south of Durban (below) is one of the province’s

most significant industrial sites as it produces huge

quantities of a material that is used in viscose staple

fibre, which in turn is used in clothing and textiles.

Together with production volumes from Sappi’s

mill in neighbouring Mpumalanga province, the

company is the world’s largest manufacturer of

dissolving pulp. Sugar, tourism and forestry an

paper are other important sectors driving growt

and employment in KwaZulu-Natal.

In his 2020 State of the Province addres

Premier Sihle Zikalala listed the sectors which are

be targeted for investment in the future. These are

• Aloe processing

• Bio-ethanol

• Renewable energy

• Fish processing

• Innovation hubs

• Oceans Economy.

KwaZulu-Natal has a long coastline that stretche

from Port Edward in the south to the iSimangalis

Wetland Park in the north. The province’s conta

with the sea has brought obvious benefits: fishin

fine beaches enjoyed by millions of tourists an

two great ports.

These ports export vast quantities of minera

(mostly through Richards Bay) and manufacture

goods (Durban) and serve as an important condu

KWAZULU-NATAL

BUSINESS

2021/22 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT IN

THE KWAZULU-NATALPROVINCE

SPECIAL FEATUR

Automotive

Toyota is to spend R2.4-billion on a new vehicle line.

OVERVIEW

JOIN US ONLINE

In a year in which South Africa’s total

vehicle exports topped 350 000, it was

perhaps not surprising that Durban’s Car

Terminal boasted a record of putting

more than 500 000 fully-built-up units (FBUs)

through the port in 2018/19. The figure includes

FBUs that are not motor vehicles and

includes vehicle imports.

Toyota’s popular Fortuner is exported at a

rate of about 150 per month. The company’s

plant, just a few kilometres south of the

harbour at Prospecton, is to receive a R2.4

billion investment injection in order to produce

a new passenger vehicle from the end of 2020. The Toyota Hybrid

Synergy Drive vehicle will be produced as a variant. Toyota sells about

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

proportion of export volumes. The company’s total investment of R4.2-

billion between 2019 and 2021 includes other manufacturing projects

and a huge increase in warehousing capabilities.

The other large-scale original equipment manufacturer in the

province is Bell Equipment. Between the Toyota plant and the Richards

Bay facility of heavy-equipment manufacturer Bell Equipment,

upwards of 11 000 people are employed. In 2019 Bell won the

“Major Contributor to Innovation and Technological Advancement

in KZN” award and the “Exporter of the Year” award. Exports to more

than 80 countries make up about 40% of the company’s turnover

and local content of those exports is at 70%. Bell is best known for

its heavy equipment which is primarily used in the mining and

construction sectors.

Another manufacturer of earthmoving equipment is Dezzi, with

18 offices and branches. In 2018 AIH Logistics started assembling

Mahindra and Bolero bakkies from kits imported from India on a 5

000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant

at Hammars-dale has increased capacity to 150 000 used truck tyres

per year and should exceed 200 000 soon, while Powerstar assembles

Online Resources

Image: Bell Equipment

Sector Insight

Bell Equipment is

scooping awards.

WWW.GLOBALAFRICANETWORK.COM | WWW.KWAZULUNATALBUSINESS.CO.ZA

E S T 1 8 5 6

trucks in Pietermaritzburg on a

site formerly used by Super

Group. KwaZulu-Natal’s substantial

automotive components

sector includes large manufacturers

such as GUD Filters, while

39 companies (with 17 000

employees) are members of the

Durban Automotive Cluster.

Trade and Investment

KwaZulu-Natal estimates that

the province’s component

automotive manufacturers

enjoy a combined turnover

approaching R10-billion.

The Behr Group has an

air-conditioning and cooling

systems factory in Durban.

DURBAN CHAMBER

OF COMMERCE AND

INDUSTRY NPC

WHO WE ARE

13 KWAZULU-NATAL BUSINESS 2020/

Policy and advocacy are at the heart of our work and we assist m

HR consultancy and more) across a broad spectrum of sectors, e

thought leadership through forum webinars and other networki

The Durban Chamber advocates and influences policy decisions


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Let’s come together and heal as a nation.

Let’s focus on Renewing, Restoring and Rebuilding

successful partnerships and investment opportunities so we

can get back to promoting our city as the ideal destination

for business and pleasure to the rest of the world.

Your support coupled with our world-class infrastructure,

innovative business environment and ever evolving

investment opportunities, means we can get back to

‘connecting continents’ in no time.

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Tel: +27 31 311 4227

Email: invest@durban.gov.za

web: invest.durban

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The city of

Durban (eThekwini

Municipality) is South

Africa’s second most

important economic

region

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road, rail, sea and air

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Dube

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and King

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Airport - 60-

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Plan - driving

growth of

aerotropolis,

or airport

city

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Rated in top 5

‘Quality of Living’

cities in Africa and

Middle East by

Mercer Consulting in

2015

Named one of the

New 7 Wonders Cities

by the Swiss-based

New 7 Wonders

Foundation in 2014

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DURBAN CHAMBER

OF COMMERCE AND

INDUSTRY NPC

WE CAN HELP

YOUR BUSINESS

A: 101 Isaiah Ntshangase Road, Durban 4001 | E: info@durbanchamber.co.za

W: www.durbanchamber.co.za | T: +27 31 335 1000 | F: +27 31 303 1149


WHO WE ARE

Policy and advocacy are at the heart of our work and we assist members

HR consultancy and more) across a broad spectrum of sectors, engaging

thought leadership through forum webinars and other networking events,

The Durban Chamber advocates and influences policy decisions that affect the

our strategic purpose is to help create a conducive economic and business

environment to facilitate and promote economic growth in the region in

partnership with key stakeholders.

SOME OF OUR SERVICES

OFFERING BUSINESS SUPPORT SERVICES AND ADVICE

Business and Personal

Credit Reports

•Import and Export assistance

•Workshops and Seminars

PROVIDING BUSINESS INFORMATION RELEVANT TO BUSINESS

•Policy Focus Updates

•Industry-Specific Economic Data

ADVOCATING AND INFLUENCING POLICY DECISIONS THAT AFFECT

THE INTERESTS OF BUSINESS

•Economic Research

InBusinessForABetterWorld


CONTENTS

CONTENTS

KwaZulu-Natal 2021/22 Edition

Introduction

Foreword 8

A unique guide to business and investment in KwaZulu-Natal.

Special features

Regional overview of KwaZulu-Natal 10

Infrastructure projects will help the province build back better.

Ports and exports: KwaZulu-Natal has

an abundance of both 18

Companies in a wide range of sectors are seeing potential

in Africa and China.

Economic sectors

Agriculture 26

A Value Chain Master Plan promises solutions for

the sugar industry.

Forestry and paper 30

A beekeeping project has reduced forest fires.

Mining 31

Coal mining and processing has resumed.

Engineering 32

A respected university unit is expanding its brief.

Oil and gas 33

A new tanker will improve port services.

KWAZULU-NATAL BUSINESS 2021/22

4


Inspiring hope and enabling dreams

Growing with KwaZulu-Natal since 1863.

s

tandard Bank has a long and storied history

in KwaZulu-Natal where we have had a presence

for more than 150 years. In 1863 the bank

opened its third South African branch in Durban.

Over the decades Standard Bank has continued

to evolve and adapt with South Africa’s sociopolitical

and structural changes. Under the

new dispensation Standard Bank has enjoyed

strong and cordial working relationships with

government and municipalities in KwaZulu-Natal.

Africa is our home, we drive her growth, and we do

this by being a catalyst for inclusive and sustainable

economic growth in the countries in which we

operate, and by making life better for our fellow

Africans by doing business the right way.

We want to fulfil dreams, help people take steps in life

and organise and execute our strategies at the right

time, on the right channels while fulfilling humanity.

This means evolving to being a platform business.

And our platform’s purpose is to match the

individual needs of users and facilitate the

exchange of goods and services, enabling value

creation for all participants. Client centricity places

our clients at the centre of everything we do.

Driving growth

Our people and processes are outwardly focused on

our clients as their needs and expectations change.

Standard Bank’s business activities have social,

economic and environmental (SEE) impact in

the economies and communities in which we

operate. There are seven specific areas in which

we believe we can best drive Africa’s growth,

while making a positive impact on society, the

economy, and the environment:

• Financial inclusion.

• Job creation and enterprise development.

• Infrastructure.

• Africa trade and investment.

• Climate change and sustainable finance.

• Education and skills development.

• Health.

We are in the business of inspiring hope and

enabling dreams. We believe that dreams

matter because they fuel our growth.

Soon we will be the most truly digital, the

most truly human, the most competitive, the

most profitable, and the most purpose-driven

services group in the history of Africa. ■

Image by Captureson Photography on Unsplash


CONTENTS

Construction and property 36

The north coast continues to attract high prices.

Tourism 37

Dedicated funds are promoting transformation.

Manufacturing 38

Cellphones are now made in KwaZulu-Natal.

Automotive 39

Stanger will host a new battery factory.

Education and training 40

An ambitious scheme aims to prepare young people

for the world of work.

Water 44

Waste-water works are being upgraded.

Energy 45

Toyota dealers are using less energy.

Banking and financial services 46

Choices for South African financial consumers are expanding.

Development finance and SMME support 48

Exxaro and Bell are teaming up to help SMMEs.

References

Key sector contents 24

Overviews of the main economic sectors of KwaZulu-Natal.

Index

IBC

ABOUT THE COVER:

Rich agricultural soil supports the

intensive cultivation of sugarcane

in the iLembe District Municipality.

Located north of Durban with excellent

connections to the port of that city and

Richards Bay, iLembe is also host to the

King Shaka International Airport and the

Dube TradePort. Several companies have

their national headquarters in Ballito.

Credit: Enterprise iLembe.

KWAZULU-NATAL BUSINESS 2021/22

6


EBH South Africa

Trusted ship repair, marine and industrial

engineering for over 140 years.

Elgin Brown and Hamer, having been founded in 1878, is

still regarded as one of the oldest shipyards in Southern

Africa. Since the takeover by new management in 2018

the goal was to sustain the reputation of the company in

servicing the marine and industrial sectors, with high-quality

facilities and on-time delivery.

Services

The Elgin Brown and Hamer Group comprises eight companies under

the group holding. We have several strategic subsidiaries who carry

out specific divisional work rendering a full in-house service in all

aspects of ship repair and industrial engineering as follows:

• Steel Repairs and Steel Fabrication

• Mechanical Repairs (Diesel and Turbo)

• Blasting and Coating (PMC)

• Pipe Fabrications and Repairs

• Machining and Hydraulics (M&H)

• Electrical Repairs and Renewals (Electro Marine)

• Carpentry and Insulation

• Scaffolding

We are committed to superior engineering solutions by providing

diverse and innovative services to all our clients.

DURBAN HEAD OFFICE

Lower Bremen Road, Bayhead, Durban

PO Box 29079, Maydon Wharf, 4057

Tel: +27 31 205 6391

Email: shiprep@ebh.co.za

Website: www.ebh.co.za

What sets us apart?

EBH South Africa has a privatelyowned

floating dock in the Port

of Durban with a lifting capacity

of 8 500 tons, a floating crane

with a lifting capacity of 60

tons at 10 metres, barges, and

a launch. Our workshops are

fully equipped and have the

capacity to undertake various

engineering works, both marine

and industrial, at any given time.

The company’s commitment to

safety and quality is evident in

its certification with the Bureau

Veritas ISO 9001:2015 quality

management system, which

is complemented by ISO 3834

accreditation. The company is

also a Level 2 B-BBEE contributor.

Achievements

In 2020, EBH SA was pleased

to announce our association

with CR Ocean as a Southern

African Region Agent for the

Marine Exhaust Gas Scrubbers.

Our subsidiary company

Marine & Hydraulics was also

named as the distributor for

sales of original Syncrolift®

products in South Africa. EBH

(Pty) Ltd recently installed

Ballast Water Treatment

System (BWTS) on various drydocking

vessels in the yard

which was a success and to

the customers’ satisfaction.

We are available to assist in

the ports of Durban, Richards Bay,

Cape Town, Saldanha Bay, Port

Elizabeth and East London. ■

7 KWAZULU-NATAL BUSINESS 2021/22


FOREWORD

KwaZulu-Natal Business

A unique guide to business and investment in KwaZulu-Natal.

Credits

Publishing director:

Chris Whales

Editor: John Young

Managing director: Clive During

Online editor: Christoff Scholtz

Designer: Simon Lewis

Production: Aneeqah Solomon

Ad sales:

Gavin van der Merwe

Sam Oliver

Jeremy Petersen

Gabriel Venter

Vanessa Wallace

Shiko Diala

Administration & accounts:

Charlene Steynberg

Kathy Wootton

Printing: FA Print

The 2021/22 edition of KwaZulu-Natal Business is the 13th issue of

this highly successful publication that, since its launch in 2008, has

established itself as the premier business and investment guide

for the KwaZulu-Natal Province.

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

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

the prospect of increasing exports on the back of the signing of a

continental free trade agreement. The province’s export infrastructure is

examined and the diversity and export successes of several companies

in a wide range of sectors is noted.

The increasing importance of the Oceans Economy to the future

of the provincial and national economy is relevant to any examination

of the economy of KwaZulu-Natal. This applies as much to trade and

ship-repair as it does to the exciting gas discoveries which have been

made off the coast of Mozambique and South Africa.

To complement the extensive local, national and international

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

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

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

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

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

our flagship South African Business title and the addition to our list of

publications, African Business, which was launched in 2020. ■

Chris Whales

Publisher, Global Africa Network Media | Email: chris@gan.co.za

DISTRIBUTION

KwaZulu-Natal Business is distributed internationally on

outgoing and incoming trade missions, through trade and

investment agencies; to foreign offices in South Africa’s

main trading partners around the world; at top national

and international events; through the offices of foreign

representatives in South Africa; as well as nationally and

regionally via chambers of commerce, tourism offices, airport

lounges, provincial government departments, municipalities

and companies.

Member of the Audit Bureau

of Circulations

COPYRIGHT | KwaZulu-Natal Business is an independent publication

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

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

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

permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Academy of Digital Arts, African Marine Solutions, Bell

Equipment, Collins Residential, Enterprise iLembe, Kevin Folk on Unsplash,

Hodari Properties, Hulamin Rolled Products, Isandlwana Battlefields Route,

KWAZULU-NATAL BUSINESS 2021/22

8

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

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

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

ISSN 1995-1310

Mark Harpur on Unsplash, Mondi, OL architects, SA Canegrowers, Sappi, Anton

Swanepoel, South32, Toyota SA, Transnet National Ports Authority, Transnet Port

Terminals, Umgeni Water, University of KZN, Viking Sun/Philip Wilson.

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

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

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

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

completeness of the information. Global Africa Network will not accept

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

any reliance placed on such information.


SMME VIRTUAL

ROADSHOW

PRACTICAL AND USEFUL

INFORMATION ON SMALL,

MEDIUM AND MICRO-BUSINESS

IN SOUTH AFRICA.

TO REGISTER:

Visit www.gan.co.za

and then SMME Virtual

Roadshow

Since 2014, the SMME Roadshow has supported small

business in South Africa. Following the unprecedented

challenges of 2020, Global Africa Network is relaunching

the SMME Roadshow in a fully virtual, nationwide format.

The SMME Virtual Roadshow, brought to you by Global

Africa Network Media with Nemesis Accounting, SME

Warrior and Aurum Wealth Creators, takes the form of

presentations and practical guidance from thought

leaders and experts in their fields.

Presentations are pre-recorded for quality and convenience

and presenters and their teams will be on hand to engage

and interact with delegates. Delegates will also be able to

network with other delegates.

Who should attend?

SMMEs requiring support and guidance on the following

topics should attend:

ABOUT GLOBAL AFRICA NETWORK

Global Africa Network Media (GAN) is an established

authority on business development in South

Africa’s nine provinces. GAN’s online products

include its well-established B2B portal, www.

globalafricanetwork.com, and its monthly business

and investment e-newsletters, with a reach of over

53 000 subscribers.

Each of the nine titles and the national journal,

South African Business, has been utilised by all

levels of government, parastatals, corporates,

and national and provincial businesses. GAN is a

specialist in small and developing business, and the

company is a trusted partner of business chambers

and other representatives of organised business in

each province.

• Access to funding

• Access to markets

Business revival

• Training and skills development

• Compliance and regulatory

• Technology support

• Running a business

Each of South Africa’s nine provinces will be represented at

the Roadshow, and will showcase incentives, services and

opportunities available to SMMEs.

For information on sponsorship opportunities, email

info@gan.co.za


A REGIONAL OVERVIEW OF

KWAZULU-NATAL

Infrastructure projects will help the province build back better.


By John Young

Business events to be hosted in 2020/21 are

expected to inject an estimated R1.2-billion

into the local economy.” When the Premier

of KwaZulu-Natal, Sihle Zikalala, spoke these

words on 4 March 2020 at the Royal Show Grounds

in Pietermaritzburg, business tourism and tourism in

general were projected to be significant earners for

the province.

A day later, on Thursday 5 March, the National

Institute for Communicable Diseases confirmed

that a suspected case of Covid-19, a person recently

returned from a trip to Italy, had tested positive. And

that was the end of tourism for the foreseeable – or

unforeseeable – future.

The first half of 2019 brought in a total of R14.4-billion

in tourist spending and the year as a whole delivered an

increase of 8% in international visitor numbers. The newlycreated

Cruise Ship Terminal at the Port of Durban was

ready to welcome guests, but it would be at least a year

before cruises could resume.

Tourism is a key sector in the KwaZulu-Natal

economy and provides livelihoods to many

thousands of families in urban and rural areas. The

closing of borders brought real hardship to many

areas in the province.

Infrastructure

The other good news in the Premier’s State of the

Province address was not subject to the spread

of deadly viruses. This related to infrastructure

spending plans which give hope for the province’s

ability to “build back better”.

Some of the infrastructure plans include:

• A housing project in Msunduzi comprising 25 000

units. The R2.5-billion Vulindlela project provided

employment for 1 713 people and is in the final

phase of construction.

• New bridges to enable scholars to get to school

safely. There are many rivers in the province so

the 2020/21 budget makes provision for seven

vehicular bridges and 12 Bailey bridges to be

built in rural areas in partnership with the South

African National Defence Force (SANDF).

• •Upgrade of the N3/N2. The South African

KWAZULU-NATAL BUSINESS 2021/22

10


SPECIAL FEATURE

A wetland conservation project run by Mondi,

the packaging and paper company.

National Roads Agency will spend R35-bllllon

on this multi-phase project.

• The launch of the Durban Aerotropolis Master

Plan. The plan is to develop an airport city

centred on King Shaka International Airport.

• The Department of Economic Development,

Tourism and Environmental Affairs (DEDTEA) has

allocated R30-million towards the construction

of a terminal building at Mkhuze airport following

its runway upgrade. The department is also

working with Ray Nkonyeni Local Municipality to

upgrade the terminal building at Margate airport.

• Creation of an automotive supplier park.

DEDTEA, Dube TradePort and eThekwini

Municipality have signed a memorandum of

understanding.

• The provincial government intends contracting

Broadband lnfraco to provide network

services to be used by Dube TradePort to roll

out more than 810 WiFi hotspots at 405 sites

across the province.

• The Isandlwana Heritage Project. It may seem

ironic to be building tourism infrastructure at

this time, but the future will include tourism.

The Department of Transport and SANRAL are

consulting local communities about further

developing this historic site.

Investment

Between May 2019 and February 2020, inward

investment commitments to the value of more than

R15-billion were made. These included amounts

pledged in most of the priority sectors identified by

the provincial government, namely agro-processing,

healthcare, manufacturing, renewable energy and

tourism and property development.

Other priority sectors include aloe processing,

bio-ethanol fuel, fish processing and, more broadly,

the Oceans Economy.

The Special Economic Zones (SEZs) at Richards

Bay and King Shaka International Airport (the

Dube TradePort) are key components of the

strategy of attracting investors to the province.

Dube TradePort attracted R7-billion between

2012 and 2019 and the same amount is expected

to accompany the development of Phase 1A

and Phase 1F of the Richards Bay Industrial

Development Zone (RBIDZ). Two investors in 2019

were edible oils manufacturer Wilmar Processing

SA, which is investing more than R1-billion in

a plant, and Elegant Afro Line, which will spend

about R900-million on its chemicals plant.

There are plans to establish a clothing and

textiles SEZ in the province to build on the

province’s established strength in the sector and an

automotive supplier park will soon be in operation.

Toyota and Bell Equipment play a big role in the

automotive sector while the Engen Oil Refinery is a

strategic asset.

The province’s existing infrastructure, good soils

and fine weather provide a solid base for future

growth. KwaZulu-Natal already has significant

capacity in heavy and light manufacturing, agriprocessing

and mineral beneficiation, all of which

is supported by South Africa’s two busiest ports

(Richards Bay and Durban), the country’s most active

highway (the N3), a modern international airport and

pipelines that carry liquids of all types to and from

the economic powerhouse of the country around

Johannesburg in the interior.

Sappi’s dissolving pulp mill at Umkomaas

south of Durban is one of the province’s most

significant industrial sites as it produces huge

quantities of a material that is used in viscose

staple fibre, which in turn is used in clothing

11 KWAZULU-NATAL BUSINESS 2021/22


Durban Container Terminal. Credit: TPT

and textiles. Together with production volumes

from Sappi’s mill in neighbouring Mpumalanga

province, the company is the world’s largest

manufacturer of dissolving pulp. Mondi is the

province’s other global giant in forestry, paper

and packaging.

Oceans Economy

KwaZulu-Natal province has a long coastline that

stretches from the Mtamvuna River in the south

to the Isimangaliso Wetland Park in the north.

The province’s contact with the sea has brought

obvious benefits: fishing, fine beaches enjoyed

by millions of tourists and two great ports. These

ports export vast quantities of minerals (mostly

through Richards Bay) and manufactured goods

(Durban) and serve as an important conduit for

imports of all sorts.

The Richards Bay Coal Terminal exports massive

quantities of coal while the Port of Durban is the

busiest port in Africa.

However, planners want to expand the economic

benefits that the ocean can bring. An Oceans

Economy Review Workshop has come up with a

range of sub-sectors that can help grow the provincial

economy and invite foreign direct investment:

• Marine transport and manufacturing.

• Offshore oil and gas exploration.

• Aquaculture.

• Marine protection and ocean governance.

• Small harbours.

• Coastal and marine tourism.

Strategies to grow the Oceans Economy

dovetail with ongoing projects to boost

the capacity of the province’s ports and to

explore for gas and oil in the Indian Ocean.

If oil rigs were to start visiting the KZN

coastline on a regular basis, the ship-repair

industry would grow exponentially.

The Oceans Economy is one of the focus

areas that has been chosen by national

government to be part of Operation

Phakisa, a focused, goal-driven attempt

to jump-start a specific economic sector.

Overall, Phakisa intends creating a million

jobs by 2033 and injecting R177-billion into

national GDP.

The decision to build a cruise-ship

terminal at the Port of Durban is a good

example of the kind of decision that is in line

with an “Oceans Economy” approach.

KWAZULU-NATAL BUSINESS 2021/22

12


SPECIAL FEATURE

Geography

The mixed topography of the province allows

for varied agriculture, animal husbandry and

horticulture. The lowland area along the Indian

Ocean coastline is made up of subtropical

thickets and Afromontane Forest. High humidity

is experienced, especially in the far north and this

is a summer rainfall area. The centrally-located

Midlands is on a grassland plateau among rolling

hills. Temperatures generally get colder in the far

west and northern reaches of the province.

The mountainous area in the west – the

Drakensberg – comprises solid walls of basalt and

is the source of the region’s many strongly running

rivers. Regular and heavy winter snowfalls support

tourist enterprises. The Lubombo mountains in the

north are granite formations that run in parallel.

Regions

KwaZulu-Natal has 10 district municipalities and a

metropolitan municipality, the most of any province

in South Africa. In economic terms, the province

offers diverse opportunities.

Southern region

This area is the province’s most populous. The

city of Durban has experienced booms in sectors

such as automotive, ICT, film and call centres.

The promenade now reaches all the way to the

harbour and the Point development will benefit.

Major investments are taking place at the Port of

Durban with the current centrepiece being the

Durban Cruise Terminal. The Container Terminal is

also undergoing an extensive overhaul. Durban’s

conference facilities are well utilised, but many

opportunities still exist in chemicals and industrial

chemicals, food and beverages, infrastructure

development and tourism. Further south, Margate’s

airport and Port Shepstone’s beachfront are assets.

Western region

Also known as the Midlands, this is a fertile

agricultural region which hosts the popular

annual Royal Show. It produces sugarcane, fruit,

animal products, forestry and dairy products.

Pietermaritzburg is the provincial capital and

home to a major aluminium producer along with

several manufacturing concerns, including textiles,

furniture, leather goods and food. The city has good

transport links along the N3 national highway,

excellent schools and a lively arts scene. The

Midlands Meander is a popular tourist destination.

Eastern region

Although most of this area is rural, Richards Bay is

one of the country’s industrial hot spots because of

its coal terminal, port and aluminium smelters. The

Richards Bay Industrial Development Zone (RBIDZ)

is a major economic node and with the possibility of

a power plant being built, the RBIDZ could become

an energy hub. Mining is an important sector in this

region. The other major urban centre is Empangeni

which has several educational institutions. The King

Shaka International Airport is adjacent to the Dube

TradePort, a Special Economic Zone (SEZ) which is

attracting investors.

Northern region

The economic powerhouse is Newcastle in the

north-west: coal-mining, steel processing and

manufacturing are major activities. Some old coal

mines are being reopened by new coal companies

to cater for the country’s power stations’ demand

for the fuel. Game farms, trout fishing and hiking

are part of an attractive package for tourists, and

Zululand is a popular destination for cultural

experiences. The region is rich in Anglo-Boer

War history which includes battle sites such as

Isandlwana and Rorke’s Drift. ■

Credit: Isandlwana Battlefields Route

13 KWAZULU-NATAL BUSINESS 2021/22


KwaZulu-Natal Provincial Local Government

Government

LISTING

A guide to KwaZulu-Natal's municipalities.

LISTING

KwaZulu-Natal Provincial Local Government

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

in ETHEKWINI Pietermaritzburg METROPOLITAN (code 3201) MUNICIPALITY

unless stated otherwise. uMzimkhulu Visit Municipality www.kznonline.gov.za.

263 Dr Pixley ka Seme Street, Durban 4001

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

Office of the Premier

Education

A Tel: guide +27 31 311 to 1111 KwaZulu-Natal's | Fax: +27 31 311 2170 municipalities. Website: www.umzimkhululm.gov.za

Government

Premier: Sihle Zikalala

MEC: Kwazikwenkosi Innocent Mshengu

Website: www.durban.gov.za

5th LISTING

Floor, floor, Telkom Moses Building, Mabhida 300 Building, Langalibalele 300 Langalibalele Street Street

Anton Lembede Building, 247 Burger Street

A Tel: AMAJUBA guide +27 33 341 to 3300 KwaZulu-Natal’s DISTRICT MUNICIPALITY provincial government Tel: ILEMBE +27 departments. 33 846 DISTRICT 5000 | Fax: +27 All MUNICIPALITY

33 addresses 355 1293 are LISTING located

in Fax: ETHEKWINI Unit Pietermaritzburg +27 B9356, 33 331 Ithala 7368 Building, METROPOLITAN Section (code 1, Main 3201) Street, MUNICIPALITY

Madadeni unless Township, stated otherwise. Website: uMzimkhulu 59/61 Mahatma www.kzneducation.gov.za

Visit Gandhi Municipality

St, www.kznonline.gov.za.

KwaDukuza 4450

KwaZulu-Natal 263 Newcastle Dr Pixley 2940 ka Seme Street, Durban 4001

Tel: +27 32 39437 2599300 5000 | | Fax: Fax: +27 +27 3239 437259 9587 0427

Office Agriculture Provincial

of the and Premier Rural Development Local Education

Health Government

Tel: +27 31 34 311 3291111 7200 | | Fax: +27 31 34311 314 2170 3785

Website: www.ilembe.gov.za

www.umzimkhululm.gov.za

Premier: MEC:

A

Sihle Zikalala

Kwazikwenkosi Innocent Mshengu

Website: guide

Bongiwe

www.durban.gov.za

www.amajuba.gov.za to

Nomusa

KwaZulu-Natal's

Sithole-Moloi

municipalities.

MEC: Nomagugu Simelane-Zulu

Government

Cedara 5th Floor, College, Telkom Moses Cedara Building, Mabhida Road 300 Building, Langalibalele 300 Langalibalele Street Street

Anton 1st Natalie KwaDukuza Floor, Lembede Building, 330 Langalibalele Building, 11th Municipality

floor, 247 Street 330 Burger Langalibalele Street Street

Tel: AMAJUBA Dannhauser +27 33 341 335 3300 9100 DISTRICT Municipality MUNICIPALITY

Tel: ILEMBE Tel: +27 +27 33 32846 395 437 DISTRICT 2111 5000 5000 | Fax: +27 MUNICIPALITY

33 355 1293

A Fax: Unit Tel: guide +27 B9356, 33 34331 621 Ithala to 7368 8255 2666 KwaZulu-Natal’s Building, | Fax: Section +27 341, 621 Main 3114 Street, provincial Madadeni Township, government Website: 59/61 Fax: +27 departments. Mahatma www.kzneducation.gov.za

www.kznhealth.gov.za

32 437 Gandhi 5098 St, KwaDukuza All addresses 4450 are located

in Website: ETHEKWINI Newcastle Pietermaritzburg www.kzndard.gov.za

www.dannhauser.gov.za

2940 METROPOLITAN (code 3201) MUNICIPALITY

unless stated otherwise. uMzimkhulu

Tel: Website: +27 32 www.kwadukuza.gov.za

437 Visit 9300

Municipality

| Fax: www.kznonline.gov.za.

+27 32 437 9587

Agriculture

263

and Rural Development

Tel: Dr +27 Pixley 34 329 ka Seme 7200 Street, | Fax: +27 Durban 34 314 4001

Health Human

3785

Tel: Website: +27 39

Settlements

www.ilembe.gov.za

259 5000 | Fax: +27

and

39 259

Public

0427

Works

Office MEC: Arts Bongiwe Nomusa Sithole-Moloi

Website: eMadlangeni and of the Culture Premier

www.amajuba.gov.za (Utrecht) Municipality

Education

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

MEC:

Website: Mandeni Nomagugu Neliswa

www.umzimkhululm.gov.za

Municipality

Peggy Simelane-Zulu

Nkonyeni

Premier: Cedara MEC: Hlengiwe College, Sihle Cedara Zikalala Goodness Road Slindile Mavimbela

MEC:

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

1st 203 Natalie KwaDukuza Tel: Floor, Church Kwazikwenkosi

+27 Building, 330 32 Street Langalibalele 11th Municipality

Floor,

Innocent Street 330 Langalibalele

Mshengu

Website: www.durban.gov.za

456 8200

Street

5th Tel: 222 Dannhauser Website: Floor, +27 floor, Jabu 33 Telkom Ndlovu www.emadlangeni.gov.za

Moses 335 9100 Building, Street Mabhida Municipality

300 Building, Langalibalele 300 Langalibalele Street Street

Anton Tel: Tel: Fax: +27 +27 Lembede 33 32395 392 437 456 Building, 2111 6400 5000 2504| Fax: 247 +27 Burger 33 392 Street 6490

Tel: Fax: AMAJUBA Tel: +27 +27 33 33 34341 264 6213300

3400 8255 2666 DISTRICT | Fax: +27 34 MUNICIPALITY

621 3114

Tel: Website: ILEMBE Fax: +27 +27 33 www.kznhealth.gov.za

www.kznworks.gov.za

www.mandeni.gov.za

32 846 437 DISTRICT 5000 5098| Fax: +27 MUNICIPALITY

33 355 1293

Fax: Website: Unit Newcastle +27 B9356, 33 www.kzndard.gov.za

www.dannhauser.gov.za

331 Ithala 3947368

2237 Building, Municipality

Section 1, Main Street, Madadeni Township, Website: 59/61 Website: Mahatma www.kzneducation.gov.za

www.kwadukuza.gov.za

Gandhi St, KwaDukuza 4450

Website: Newcastle

Human Settlements and Public Works

Tel: +27 www.kzndac.gov.za

342940

Provincial

328 7600 | Fax: +27 34 312 1570

Tel: Maphumulo +27 32 437 9300

Treasury Municipality

| Fax: +27 32 437 9587

Agriculture Arts eMadlangeni and Culture and (Utrecht) Rural Development

Municipality

Health

Tel:

MEC: Mandeni Neliswa Municipality

Peggy Nkonyeni

Website: +27 34 www.newcastle.gov.za

329 7200 | Fax: +27 34 314 3785

Website:

for

Tel: +27 www.ilembe.gov.za

Finance: Ravigasen Ranganathan Pillay

32 481 4500

MEC: Community Bongiwe Hlengiwe Nomusa Goodness Safety Sithole-Moloi and Slindile Liaison Mavimbela

MEC:

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

203 Treasury Tel: Church Nomagugu

Fax: +27 House, 32 Street 456 481145 Simelane-Zulu

Website: www.amajuba.gov.za

8200 2053 Chief Albert Luthuli Street,

Cedara 222 MEC: Website: HARRY Jabu Bheki Thomas College, Ndlovu www.emadlangeni.gov.za

Ntuli GWALA Cedara Mxolisi StreetRoad

Kaunda DISTRICT MUNICIPALITY 1st Natalie Tel: KwaDukuza

Fax: Website: Floor, +27 +27 Building, 330 www.maphumuloonline.gov.za

32392 897 Langalibalele 4566400 4200 2504 11th Municipality

| floor, Fax: Street +27 33033 Langalibalele 342 3922486

6490 Street

Tel: 179 Dannhauser

40 +27 Main Jabu 33 Street, Ndlovu 335 2649100

3400 Ixopo Street Municipality

3276

Tel: Website: Tel: +27 +27 33 www.kznworks.gov.za

32 www.kzntreasury.gov.za

www.mandeni.gov.za

395 4372111

5000

Fax: Tel: Newcastle +27 + +27 33 34 33 39343 621 394 341 834 8255 2666 2237 9300 8700 Municipality

| Fax: +27 34 621 3114

Website: Fax: Ndwedwe +27 www.kznhealth.gov.za

32 437 5098 Municipality

Website: Fax: Tel: www.kzndac.gov.za

Provincial

34 328 7600 | Fax: +27 34 312 1570

Maphumulo Treasury

Fax: + +27 www.kzndard.gov.za

www.dannhauser.gov.za

33 39342 8346345

Sport

1701

Website: Tel: +27 www.kwadukuza.gov.za

and Recreation

32 532 5000Municipality

Website: for Finance: Ravigasen Ranganathan Pillay

www.kzncomsafety.gov.za

Human MEC: Hlengiwe Settlements Goodness Slindile and Public Mavimbela Works

www.newcastle.gov.za

www.harrygwaladm.gov.za

Tel: Fax: +27 32481 5324500

5031/2

Arts Community eMadlangeni and Culture Safety (Utrecht) and Liaison Municipality

MEC: Treasury 135 Mandeni

Fax: Website: Pietermaritz Neliswa

+27 House, www.ndwedwe.gov.za

32 481

Municipality

145 Peggy Street 2053 Chief Nkonyeni Albert Luthuli Street,

MEC: Cooperative HARRY Dr Dlamini Hlengiwe Bheki Thomas GWALA Ntuli Mxolisi Goodness Zuma Governance Kaunda DISTRICT Municipality

Slindile Mavimbela

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

and MUNICIPALITY

Traditional

203 Tel: Website: Church +27 33 32 www.maphumuloonline.gov.za

Street

897 4564200 9400 8200 | Fax: +27 33 342 2486

222 179 Affairs

Website: 40 Tel: Jabu Main + 27 Ndlovu www.emadlangeni.gov.za

Street, 39 833 Street Ixopo 10383276

| Fax: + 27 39 833 1179

Tel: Website: Fax: +27 +27 33 www.kzntreasury.gov.za

www.kzn.dsr.gov.za

32392 4566400 2504| Fax: +27 33 392 6490

Tel: MEC:

Tel: Website: +27 + Sipho

+27 33 33 39 www.ndz.gov.za

264 341 Hlomuka

834 3400 9300 8700

Website: Ndwedwe KING www.kznworks.gov.za

www.mandeni.gov.za

CETSHWAYO Municipality DISTRICT MUNICIPALITY

Fax: 330 Newcastle

Fax: +27 Langalibalele + +27 33 33 39 394 342 834 2237 Municipality

Street 6345

Sport Social and Development

Recreation

1701

Tel: King +27 Cetshwayo 32 532 5000 House, Kruger Rand Rd, Richards Bay 3900

Website: Tel: Website: Greater +27 www.kzndac.gov.za

33 www.kzncomsafety.gov.za

Hlengiwe Goodness Slindile Mavimbela

www.harrygwaladm.gov.za

395 Kokstad 2831 Municipality

Provincial

34 328 7600 | Fax: +27 34 312 1570

MEC: Maphumulo Nonhlanhla Treasury Mildred Khoza

Fax: Tel: +27 32 35532 7995031/2

2500 Municipality

Fax: Tel: +27 33 39345 7976432

MEC

6600 | Fax: +27 39 727 5501

135 208 Website: Fax: Pietermaritz Hoosen for Finance: www.ndwedwe.gov.za

35 Haffejee 789 Street Ravigasen

1641 Street Ranganathan Pillay

Website: www.newcastle.gov.za

Tel: +27 32 481 4500

Community Cooperative Website: Dr Dlamini Zuma Governance Municipality and Traditional

www.kzncogta.gov.za Safety and Liaison

www.kokstad.gov.za

Treasury Tel: Fax: Website: +27 House, 33 32 www.kingcetshwayo.gov.za

897 264 481145 9400 5402 2053 Chief Albert Luthuli Street,

MEC: Affairs HARRY Tel: +

Bheki Thomas

27 39

Ntuli GWALA Mxolisi Kaunda

833 1038 | DISTRICT Fax: + 27 39 833 MUNICIPALITY

1179

Tel: Fax: Website: +27 33 www.kzn.dsr.gov.za

33 www.maphumuloonline.gov.za

897 3414200 9610 | Fax: +27 33 342 2486

179 MEC: Economic

40

Sipho Hlomuka

Website: uBuhlebezwe Main Jabu Street, Ndlovu Development,

www.ndz.gov.za

Ixopo Street3276

Municipality Tourism and

Website: KING City of www.kzntreasury.gov.za

www.kzndsd.gov.za

www.kzndsr.gov.za

CETSHWAYO uMhlathuze DISTRICT Municipality MUNICIPALITY

Tel: 330 Land

Tel: Langalibalele Affairs Street

Social Development

+ +27 33 39 341 834 9300 8700 7700 | Fax: +27 39 834 1168

Ndwedwe King Tel: +27 Cetshwayo 35 907 5000 Municipality

House, | Fax: Kruger +27 Rand 35 907 Rd, 5444 Richards Bay 3900

Fax: Tel: MEC: Greater Fax: +27 Nomsa 33 395 Kokstad Dube-Ncube

2831 Municipality

MEC: Transport Nonhlanhla Mildred Khoza

Website: + +27 33 www.ubuhlebezwe.gov.za

39342 8346345

Sport and Recreation

1701

Tel: Website: +27 32 www.umhlathuze.gov.za

35532 7995000

2500

Website: Fax: 270 Tel: Jabu +27 www.kzncomsafety.gov.za

33 Ndlovu www.harrygwaladm.gov.za

39345 7976432

Street

MEC:

6600 | Fax: +27 39 727 5501

208 MEC: Fax: Hoosen Hlengiwe

+27

Thomas Bheki 32 35 Haffejee Ntuli 532

Mxolisi Goodness

7895031/2

1641 Street Kaunda Slindile Mavimbela

Website: Tel: +27 33 www.kzncogta.gov.za

www.kokstad.gov.za

264 2500 | Fax: +27 331 310 5416

135 Tel: 172 Website: Pietermaritz +27 Burger 33 www.ndwedwe.gov.za

www.kingcetshwayo.gov.za

264 Street 5402 Street

Cooperative Dr Website:

KWAZULU-NATAL Dlamini www.kzndedt.gov.za

www.kznedtea.gov.za

Zuma Governance BUSINESS Municipality and 2019/20 Traditional 60Tel: Fax: +27 + 27 33 33 897 341 355 9400 9610 8600

Affairs Economic

Tel: uBuhlebezwe + 27 39 833

Development,

1038 Municipality

| Fax: + 27 39 833

Tourism

1179

and

Website: Fax: City + 27 of www.kzn.dsr.gov.za

www.kzndsd.gov.za

www.kzndsr.gov.za

33 uMhlathuze 355 8092 Municipality

MEC: Land Sipho

Website:

Affairs Hlomuka

Tel: +27 www.ndz.gov.za

39 834 7700 | Fax: +27 39 834 1168

Web: KING Tel: +27 www.kzntransport.gov.za

35 CETSHWAYO 907 5000 | Fax: +27 DISTRICT 35 907 5444 MUNICIPALITY

330 MEC: Nomsa Dube-Ncube

Transport

Website: Langalibalele www.ubuhlebezwe.gov.za

Street

Social Development

King Website: Cetshwayo www.umhlathuze.gov.za

House, Kruger Rand Rd, Richards Bay 3900

Tel: 270 Greater +27 Jabu 33 Ndlovu 395 Kokstad 2831 Street Municipality

MEC: Nonhlanhla Thomas Bheki Ntuli

Tel: +27 35 799

Mxolisi Mildred

2500

Kaunda Khoza

Fax: Tel: +27 33 39264 345 7976432

2500 6600 | | Fax: Fax: +27 +27 331 39310 7275416

5501

208

172

172 Fax: Hoosen

Burger

Burger +27 35 Street Haffejee

Street

789 1641 Street

Website: KWAZULU-NATAL www.kzndedt.gov.za

www.kznedtea.gov.za

BUSINESS 2019/20

www.kzncogta.gov.za

www.kokstad.gov.za

60Tel: + 27 33 355 8600 | Fax: + 27 33 355 8092

Website: +27 2733 33 www.kingcetshwayo.gov.za

264 355 5402 8600

Website: www.kzntransport.gov.za

Fax: +27 + 2733 3341 355 9610 8092

Economic uBuhlebezwe Development, Municipality Tourism and

Website: Web: City www.kzntransport.gov.za

of www.kzndsd.gov.za

www.kzndsr.gov.za

uMhlathuze Municipality

Land Affairs

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

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


tourist enterprises. The Lubombo Mountains in the

north are granite formations that run in parallel.

Regions

KwaZulu-Natal Provincial

Government

KwaZulu-Natal metropolitan

Convention Centre Complex, which hosts the

and district municipalities

KwaZulu-Natal has 11 district municipalities, the

most of any province in South Africa and, in economic

terms, the province offers diverse opportunities.

annual Tourism Indaba.

Southern region

The province's climate lends itself to every kind of This area is the province’s most populous. The city of

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

outdoor pursuit and its excellent beaches are always Durban has experienced booms in sectors such as

in Pietermaritzburg Durban popular. is the Big sports principal (code 3201)

events city unless

are regularly of the stated province’s otherwise.

hosted only metropolitan Visit www.kznonline.gov.za.

automotive, ICT, film and municipality,

call centres. Major investments

are taking place at the Port of Durban and

eThekwini KwaZulu-Natal, Metropolitan which has become Municipality. something of

Office of the Premier

Education

a home to mass-participation events such as the there is a possibility that the old airport south of the

Premier: Sihle Zikalala

MEC: Kwazikwenkosi Innocent Mshengu

Comrades Marathon and the Dusi Canoe race. The city could become another port, if the money can be

5th Floor, Telkom province Building, has 300 excellent Langalibalele game Street and nature reserves. Anton Lembede Building, 247 Burger Street

N17

N17 Bethal

Tel: DISTRICT +27 33 341 3300 Isimangaliso MUNICIPALITY Wetland PRINCIPAL Park is a World CITY Heritage Site Tel: +27 33 846 5000 | Fax: +27 33 355 1293 SWAZILAND

KWAZULU-NATAL ErmeloPROVINCE

Fax: +27 33 331 and 7368 helps to fund 80 small businesses associated Website: www.kzneducation.gov.za

Standerton

Mpumalanga

Piet Retief

N11

Amajuba with its business as a tourist Newcastle site.

N2

Agriculture The and building Rural Development

of the King Shaka International Health

Volksrust

Paulpietersburg

Vrede

Pongola

MEC: Bongiwe Airport Nomusa to the Sithole-Moloi north of Durban allows tourists to get MEC: Nomagugu Simelane-ZuluR33

Utrecht

Harry Gwala

Ixopo

R69

Mkuze

to superb beaches and game farms very quickly,

R66

Newcastle

R34

Cedara College, Cedara Road

1st Floor, 330 Langalibalele Street

Vryheid

Free State

Nongoma

Tel:

and the airport has its own industrial development

N3

R34

iLembe +27 33 335 9100

KwaDukuza

Tel: +27 33 395 2111

Dundee

Hluhluwe

Hlabisa

zone, the Dube TradePort. New international direct

Harrismith Glencoe

R65

N2

Fax: +27 33 343 8255

Website: N5www.kznhealth.gov.za

N11

R68 uLundi

St Lucia

flights have been announced; 4.5-million passengers

passed through the airport in 2014/15, almost

R74

R33

Mtubatuba

Website: King www.kzndard.gov.za

Cetshwayo

Richards Bay

Ladysmith

Melmoth

Human Settlements

Bergville

N3 Colenso

and Public Works

eMpangeni

300 000 of whom were foreign visitors or tourists (ACSA).

R74

Winterton

Kranskop

Richards Bay

Arts Uguand Culture

Port Shepstone

MEC: Neliswa Peggy Nkonyeni

Estcourt

Greytown

Gingindlovu

MEC: Hlengiwe Goodness Slindile Mavimbela

203 Church Street Mooi River

R33

KwaDukuza Stanger Darnall

Howick

N2

222 uMgungundlovu

Jabu Ndlovu Geography

Street

Pietermaritzburg

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

Tongaat

Ballito

Tel: +27 33 264 3400

Website: www.kznworks.gov.za

PIETERMARITZBURG

N3

uMhlanga

Underberg

Pinetown

Fax: uMkhanyakude

+27 33 394 The 2237 mixed topography of Mkuze the province allows for varied

agriculture, animal husbandry and horticulture.

iXopo

DURBAN

R56

aManzimtoti

Website: www.kzndac.gov.za

Provincial Treasury

uMzinto uMkomaas

uMzinyathi The lowland area along Dundee the Indian Ocean coastline MEC for Finance: Ravigasen Ranganathan Pillay

N2

Kokstad

INDIAN OCEAN

Harding

Community is made Safety up of subtropical and Liaison thickets and Afromontane

Hibberdene

Treasury House, 145 Chief Albert Luthuli Street,

N

uMtentweni

Forest. High humidity is experienced, especially in

N2

Port Shepstone

MEC: uThukela Thomas Mxolisi Kaunda Ladysmith

Tel: +27 33 897 4200 | Fax: +27 Margate 33 342 2486

Southbroom

179 Jabu Ndlovu

the

Street

far north, and this is a summer rainfall area. The

Website: www.kzntreasury.gov.za Port Edward

Eastern Cape

Motorway

Main Road

Zululand centrally located Midlands Ulundi is on a grassland plateau

among rolling hills. Temperatures generally

Railway

Tel: + 27 33 341 9300

Fax: + 27 33 342 6345

Sport and Recreation

Website: www.kzncomsafety.gov.za

MEC: Hlengiwe Goodness Slindile Mavimbela

KWAZULU-NATAL BUSINESS 2016/17

13514

Pietermaritz Street

Cooperative Governance and Traditional

Tel: +27 33 897 9400

Affairs

Website: www.kzn.dsr.gov.za

MEC: Sipho Hlomuka

330 Langalibalele Street

Tel: +27 33 395 2831

Fax: +27 33 345 6432

Website: www.kzncogta.gov.za

Economic Development, Tourism and

Land Affairs

MEC: Nomsa Dube-Ncube

270 Jabu Ndlovu Street

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

Website: www.kzndedt.gov.za

LESOTHO

DRAKENSBERG

Social Development

MEC: Nonhlanhla Mildred Khoza

208 Hoosen Haffejee Street

Tel: +27 33 264 5402

Fax: +27 33 341 9610

Website: www.kzndsd.gov.za

Transport

MEC: Thomas Mxolisi Kaunda

LISTING

172 Burger Street

Tel: + 27 33 355 8600

Fax: 15 + 27 33 355 8092KWAZULU-NATAL BUSINESS 2021/22

Web: www.kzntransport.gov.za

MOZAMBIQUE


TRANSFORMING TO A PLATFORM

Standard Bank is investing heavily in digital transformation.

What we do

At Standard Bank we have begun the important

journey towards being a platform business

which provides a holistic ecosystem of products

and services to our customer. This is driven by

extensive investments in digital transformation,

partnerships, and modern and advanced ways

of working.

We have entrenched new, more effective, and

agile ways of working with cross-functional

teams that embrace a growth mindset and

who are constantly hungry to learn new skills.

Investments in technology infrastructure have

taken us towards being a platform provider

and we continue to invest to complete this

transformation.

KwaZulu-Natal Standard Bank’s commercial

success, social relevance and sustainability

depends on having a deep understanding of

our clients’ business. This places a responsibility

on us to focus on solving for the customer in

everything we do.

Imraan Noorbhai, Head

Consumer Client Coverage

Hameed Noormahomed, Head

Business Clients Coverage

Nathan Govender, Head

Commercial Client Coverage

Image by Caspar Camille Rubin on Unsplash


Key sectors

Our Business Clients segment strategically spans

the entire KwaZulu-Natal, across all municipal

boundaries covering key sectors such as Public

Sector, Education, Agriculture, Franchising,

Shari’ah, Chinese Banking and an Africa China

Agent Proposition. Through our dedicated,

specialised and highly-skilled teams, we can

deliver a holistic customer-value proposition to

our Business and Small Enterprise Banking clients

as their trusted advisors.

Our Commercial Banking segment offers

holistic banking solutions across sectors to

mid-corporate entities including growth

opportunities into African and Chinese markets.

Through our extensive network in Africa, China

(in partnership with ICBC) and global strategic

banking relationships, we work to understand

the needs of our clients and to provide trusted

advice and appropriate solutions that consider

the risks, regulatory environment and realities in

these markets.

Our Consumer and High Net Worth Division aims

to deliver a Universal Financial Services Offering

with a wide range of solutions that are tailored to

suit individual client needs throughout all journeys

in their lives. Our solutions range from Student

Banking to Young Professionals, Elite, Prestige

and Private Banking as well as High Net Worth

Individuals.

Standard Bank Insurance, Assets Management and

Fiduciary Services in KwaZulu-Natal seamlessly

deliver customised solutions to our clients to

protect, grow and manage their individual needs.

Our purpose is to provide peace of mind by

enabling our clients to achieve their personal

ambitions through best of breed solutions

through the various businesses within the Group:

Insurance (Standard Bank Financial Planning

Services, Standard Bank Insurance Brokers,

Standard Bank’s Direct Life Insurance Services),

Assets Management (Investment Planning,

Offshore Investing, Online Share Trading) and

Fiduciary Services (Estate Planning, Wills Drafting

and Safe Keeping, Estate Administration, and

Trust Services and Beneficiary Care).

What matters most

Focussing on what matters most to our clients

lies at the heart of our business. Standard Bank

KwaZulu-Natal is constantly striving to create

exceptional client experiences which are built

on confidence, trust, thought leadership and an

unwavering commitment to solutioning for our

clients’ needs in the most appropriate way.

Our heritage and intimate knowledge of the

region and its socio-economic circumstances

combined with the knowledge and expertise

of our team of bankers and the wide range of

services on offer means Standard Bank KwaZulu-

Natal is perfectly placed to realise our vision of

being the leading financial services organisation

in, for and across Africa, delivering exceptional

client experiences and superior value. ■

Sidney Reddy, Head Business

Clients, Region Coverage

Jean Hattingh, Head Consumer

Clients, Region Coverage

Mano Singh, Head Insurance,

Assets Management & Fiduciary


SPECIAL FEATURE

Ports and exports: KwaZulu-Natal

has an abundance of both

Companies in a wide range of sectors are seeing potential in Africa and China.

A

new era in trade and export has begun

and the traders, logistics operators

and ports of KwaZulu-Natal

are in pole position to take up new

opportunities. Not only is the province strategically

located on the Indian Ocean but it

already has excellent infrastructure which is

being upgraded and improved.

The official date for the new era was 1 January

2021 for that date marked the launch of the

African Continental Free Trade Area (AfCFTA).

All but one of Africa’s 54 countries have signed

the agreement and a majority of countries have

ratified it. Implementation was postponed for six

months because of Covid-19.

Tariffs on 90% of items are due to be reduced

in the next decade although more time has been

allocated to poorer countries to allow them time

to adapt.

The African market of 1.3-billion people is

expected to grow to 2.5-billion by 2050 but the key

statistic targeted by AfCFTA is intra-African trade.

Credit: TNPA

Exports to the rest of the world made up between

80% and 90% of Africa’s total trade from 2000 to

2017 (UNCTAD). In 2019 about 27% of South Africa’s

exports were delivered to the rest of the continent.

As part of the Southern African Development

Community (SADC) and the Common Market for

Eastern and Southern Africa (COMESA), South

Africa is already part of the most active regional

bodies which are promoting integration and

intra-regional trade. These regional groupings

are best placed to start thinking beyond tariffs:

more efficient customs posts, lower air-freight

costs, better-run ports, regulatory alignment and

improved rail and road infrastructure.

Even before AfCFTA was signed, one of the

largest independent wire manufacturers in

the country, Hendok Group, set about steadily

increasing its exports to other African countries.

With more than 1 000 employees at the factory

in the Phoenix Industrial Park in Durban, the

company makes a number of types of wires and

is the country’s biggest producer of nails.

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SPECIAL FEATURE

Donald Trump’s interests did not stretch

to Africa during his presidency of the US but

he preferred bilateral, rather than regional

agreements so it is surprising that the African

Growth and Opportunity Act (AGOA) survived

the Trump years. The deal, which gives duty-free

access to about 6 500 products from 39 Sub-

Saharan countries, is due to expire in 2025.

As much as African countries’ trade within the

continent will grow, exports will remain key to

adding value and attracting good prices. Trade

between the US and Africa in 2018 was valued at

$41.2-billion.

Awards and China

Opening up new markets is a priority for local

business leaders. The Durban Chamber of

Commerce and Industry partners with Transnet

Port Terminals (TPT) in hosting the annual

KwaZulu-Natal (KZN) Exporter of the Year

Awards. At the 2019 ceremony, Durban Chamber

Deputy President Gladwin Malishe said, “With

the global economy in a state of flux and

several developed economies becoming more

protectionist, KwaZulu-Natal and our emerging

exporters need to scout for non-traditional

points of entry into the global market, which are

more open and have more liberal trade policies

and procedures such as China. This is an ideal

time to visit a growth market like China if you

have export aspirations, hence the theme for

our event being Shanghai Nights.”

The award winners on that occasion offer a

good sample of the strength and variety of the

provincial economy. Winners included Imperial

Armour (body armour), Sappi (forestry and paper),

Sumitomo Rubber (tyres) and the Mediterranean

Shipping Company. Finalists came from sectors as

diverse as engineering, condiment-making and

boat-building.

Approximately 220 TEU equivalent containers

(20-foot containers) of Sappi products pass

through the Port of Durban every day.

At the awards evening, the Emerging

Exporters Development Programme was

launched, a joint initiative by TPT and the Durban

Chamber to develop emerging exporters. The

first beneficiaries were Get2Natural Beauty; Gugu

Mobile Boutique; Samac Engineering Solutions;

Siyazenzela Trailers & Truck Bodies and Zikhe.

The award for small and medium exports

(a new category) was sponsored by the Small

Enterprise Development Agency (Seda KZN).

One of the event sponsors, Trade & Investment

KwaZulu-Natal (TIKZN), is an agency dedicated

to promoting the province as an investment

destination and to facilitating trade by helping

local companies to gain access to international

markets.

In 2020, 103 export opportunities were

created with 20 companies enrolling for the

exporter competitiveness programme. This

initiative sustained 1 605 jobs, according to the

Provincial Government of KwaZulu-Natal.

Another awards ceremony, organised by

the South African Capital Equipment Export

Council (SACEEC) and Specialised Exhibitions

Montgomery as part of the Southern African

Local Manufacturing Expo, saw Bell Equipment

win the “Exporter of the Year” in the large

category (over R200-million turnover). Exports

to more than 80 countries make up about 40%

of the company’s turnover and local content of

those exports is at 70%. Bell is best known for its

heavy equipment which is primarily used in the

mining and construction sectors.

Infrastructure

With two of Africa’s biggest ports in Durban

and Richards Bay (pictured) and the King

Shaka International Airport and associated

Dube TradePort, KwaZulu-Natal has superb

infrastructure to support trade and export

activity. The N3 highway linking Durban with the

Highveld and the industrial hub of South Africa is

the country’s busiest road.

Durban harbour is South Africa’s premier

multi-cargo port and is Africa’s busiest, handling

in excess of 80-million tons of cargo per annum

(StatsSA). The Port of Durban is a key hub in the

transport and logistics chain, with 60% of all

imports and exports passing through it.

The Port of Durban exports a broad range

of products, including automotive vehicles. In

2018/19, the year in which South Africa’s total

vehicle exports topped 350 000, Durban’s Car

19 KWAZULU-NATAL BUSINESS 2021/22


SPECIAL FEATURE

Credit: Anton Swanepoel

Terminal boasted a record of putting more than

500 000 fully-built-up units (FBUs) through the

port. The figure includes FBUs that are not motor

vehicles and includes vehicle imports. Toyota’s

popular Fortuner is exported at a rate of about

150 per month.

All aspects of the port are expanding or

being upgraded. Within the Port of Durban

there are a number of specialised facilities.

Several projects are underway to increase

capacity. Transnet National Ports Authority

(TNPA) and Transnet Port Terminals (TPT) are

combining to upgrade infrastructure and buy

new equipment to improve efficiencies at the

Ro-Ro terminal (vehicles and break bulk) and

Maydon Wharf (mixed cargo and agriculture)

but the biggest project is at the Durban

Container Terminal (DCT).

DCT has a capacity of 3.6-million TEUs

(twenty-foot equivalent unit) and the current

project aims to extend that beyond five-million

TEUs. The Brics New Development Bank has

approved a loan of $200-million for the DCT

expansion project.

TNPA states that the multiplier effect in the

marine sector creates five jobs for every direct

job. A large drydock project created direct jobs

for 29 skilled employees.

The Port of Richards Bay, 160km to the

north-east of Durban and 465km south of the

Mozambican capital of Maputo, handles more

than 80-million tons of bulk cargo every year.

Richards Bay is a deepwater port. Among its 13

berths are terminals that handle dry-bulk ores,

minerals and break-bulk cargo.

The Richards Bay Coal Terminal (RBCT), with

capacity of 91-million tons per year, is South

Africa’s primary portal for the export of coal. In

2020, 65 collieries delivered coal to RBCT. The

quay of the RBCT is 2.2km long with six berths

and four ship-loaders. The 276ha site contains a

stockyard that can store 8.2-million tons while the

terminal itself has a design capacity of 91-million

tons per year. More than 900 ships visit RBCT

every year.

In 2020, 92% of South African coal went to

Asia, with India and Pakistan being the biggest

importers. Africa imported less than the previous

KWAZULU-NATAL BUSINESS 2021/22

20


SPECIAL FEATURE

year and made up a total of 5% of volumes while

3% went to Europe.

Among the exporters which use RBCT

are Anglo Operations, ARM Coal, Exxaro Coal,

Glencore Operations South Africa, Kangra Coal,

Koornfontein Mines, Mbokodo, Optimum Coal

Terminal, Sasol Mining, South African Coal Mine

Holdings, South Dunes Coal Terminal, South32

Coal Holdings (which is selling to Seriti), Tumelo

Coal Mines and Umcebo Mining. Several junior

miners also have rights.

TNPA has approved in principle the

construction of a floating dock near the existing

Small Craft quay. TNPA will have to create new

onshore infrastructure and do some dredging

before it can call for tenders from the private

sector to build the dock, which would be able to

handle large and ultra-large cargo vessels.

The authority that runs the ports at Durban

and Richards Bay, TNPA, and Transnet Freight Rail

(TFR) have been working with the private sector to

try to improve efficiencies at both ports. Backlogs

at Durban in particular have proved frustrating

for exporters. Logistics company OneLogix has

opened its own distribution hub in Umlaas

because of crowded conditions and slow loading.

The other entity involved in the loading and

unloading equation, TPT, is investing R2-billion

in new equipment to improve coordination

between truckers, tax authorities, port staff and

ship’s captains.

Dube TradePort has facilities devoted to

logistics, warehousing and export support.

Proximity to the airport is vital and freight

volumes are growing.

Financing

Four countries currently account for 41.7% of

intra-African trade, according to the Export Credit

Insurance Corporation of South Africa (ECIC). The

ECIC has invested in the African Export Import Bank

to boost intra-continental trade to $250-billion.

The South Africa-Africa Trade and Investment

Promotion Programme has the same goal.

The ECIC provides export credit and

investment guarantees, stepping in where

commercial banks might be risk-averse to

support private investment.

Standard Bank has launched a product

to assist African importers in evaluating

and choosing Chinese suppliers. Faced with

daunting variety, language and cultural

differences, the prospect of having to pay cash

upfront to unseen suppliers or limiting supply

choices to a small group of previously used

suppliers, African importers can use the Africa

China Agent Proposition (ACAP) to validate

quality while having sight of the logistics

process. Standard Bank is using its partnership

with shareholder the Industrial and Commercial

Bank of China (ICBC) to create the ACAP, which

puts importers in touch with agents and is

underpinned by a letter of credit. Standard Bank

is Africa’s biggest bank and ICBC is the world’s

biggest bank.

In preparation for AfCFTA, development

finance institutions and banks have been

developing methods of trading in local

currencies, rather than hard currencies like the

US dollar. The African Virtual Trade-Diplomacy

Platform (AVDP) is a private-sector initiative by

more than 20 companies (in partnership with

the AU Commission) which will support the

AfCFTA by enabling member states to participate

effectively and securely.

Banking groups such as Citi have been

investing heavily in digital platforms related to

payments infrastructure. Many African traders

already do their banking on hand-held devices

and so the market is ready for more innovation

in taking digital payments further into the

world of trade.

Developing reliable cross-border payment

platforms will be vital in supporting increased

intra-African trade.

The European Investment Bank is the

investment arm of the European Union and often

partners with African institutions.

China has a wide range of financial entities

which are active across a range of sectors in Africa.

These entities include the China Development

Bank (CDB), the China International Trade and

Investment Corporation (CITIC), China Export

and Credit Insurance Corporation (CECIC), China

Export Credit Insurance Corporation (Sinosure)

and the China Export-Import Bank. ■

21 KWAZULU-NATAL BUSINESS 2021/22


FOCUS

iLembe District is packed with

investment opportunities

Enterprise iLembe is driving economic development

through trade and investment.

Enterprise iLembe is an Economic Development

Agency of the iLembe District Municipality with

a mandate to drive economic development and

to promote trade and investment in the region.

Vision

To be a leading economic development agency

that enables the iLembe District to be a destination

of choice for investment, business and tourism.

Mission

Working with business, communities and

government to drive economic development in

the iLembe District to ensure inclusive economic

growth and job creation.

The philosophy that drives Enterprise iLembe

is built on promoting a participatory process

where local people from all sectors work together

to stimulate local commercial activity, resulting in

a resilient and sustainable economy. The iLembe

district is located in KwaZulu-Natal and is made up

of four local municipalities, namely KwaDukuza,

Maphumulo, Mandeni and Ndwedwe.

Being strategically located between the two

major South African harbours of Durban and

Richards Bay, iLembe District is the highestpriority

development corridor in the province of

KwaZulu-Natal. The close proximity to the King

Shaka International Airport and Dube TradePort

also connects the district directly to international

markets.

These are all major factors in the development

of projects that will take the economy of the

district to new heights, and the role of Enterprise

iLembe is to ensure that the business environment

is conducive to investment and business activity.

Enterprise iLembe partners with various

stakeholders such as Trade and Investment KZN,

the iLembe Chamber of Commerce, various

King Shaka International Airport

KWAZULU-NATAL BUSINESS 2021/22

22


FOCUS

Sugarcane fields

sector departments as well as the family of local

municipalities to position the iLembe District as

an investment destination of choice.

The agency works with iLembe Chamber

of Commerce in a programme called iLembe

Business Confidence Index aimed at providing

a picture of the business confidence in

the iLembe District, as well as an overall

business outlook. This biannual research

helps stakeholders to draw intelligence for

investment promotion, business retention and

business activities.

The establishment of a district Business

Incubator Facility is aimed at providing

assistance for the start-up and growth stages of

entrepreneurs or SMMEs in the district, assisting

them with access to technical and businessrelated

skills, necessary for the business growth

process. It is essentially the one-stop shop

for all business-related information, ensuring

compliance with all necessary regulations and

also facilitating access to funding for SMMEs

within the district. ■

Contact details

Manager: Tourism and Investment

Cheryl Peters

Physical address: Corner Ballito Drive and Link

Road, Ballito, KwaZulu-Natal, North Coast

Postal address: PO Box 593, Ballito 4420

Tel: +27 32 946 1256

Email: cheryl@enterpriseilembe.co.za

Website: www.enterpriseilembe.co.za

23 KWAZULU-NATAL 2021/22


KEY SECTORS

Overviews of the main economic

sectors of Kwazulu-Natal

Agriculture 26

Foresty and paper 30

Mining 31

Engineering 32

Oil and gas 33

Construction and property 36

Tourism 37

Manufacturing 38

Automotive 39

Education and training 40

Water 44

Energy 45

Banking and financial services 46

Development finance and

SMME support 48

The Richards Bay Coal Terminal has the design capacity of 91-million tons of coal per annum. In 2020,

70.2-million tons of coal was exported, mostly to Asia. Shareholders include all of South Africa’s biggest

coal-mining companies. Credit: Richards Bay Coal Terminal. Credit: RBCT


OVERVIEW

Agriculture

A Value Chain Master Plan promises solutions for the sugar industry.

KwaZulu-Natal is South Africa’s major sugar-producing province.

A start has been made on tackling the many challenges

faced by the sugar industry: in 2020 the Sugarcane

Value Chain Master Plan 2030 was signed by two national

government ministers and various sector participants. Among

the steps to be taken include diversifying revenue streams and an

agreement by users and retailers to buy more South African sugar.

Imports have a devastating impact on the local industry.

Two mills have recently closed, the Umzimkulu mill run by Illovo

Sugar and Tongaat Hulett’s Darnall mill. With a good crop expected

in 2020/21, this will put additional pressure on the country’s

remaining 12 mills.

An important part of the transformation of the sugar industry

involves supporting small-scale farmers. Of the 10 443 farmers who

supply Tongaat Hulett, 94% are small-scale farmers. The Illovo Small-

Scale Grower Cane Development Project used 119 local contractors

to develop the fields of 1 630 new growers on 3 000ha. Production

sent to the company’s Sezela factory more than doubled and income

for the growers is expected to be about R64-million annually. National

Treasury and the SA Canegrowers were partners in the project.

SA Canegrowers represents 23 866 growers and is responsible

for the production of 18.9-million cane tons. A 2019 project, in

which five commercial sugarcane farmers donated 10 tons each of

seedcane to five small-scale farmers has been a success. Lilian Dube

(pictured), was one of the recipients in the Amatikulu region and she

has prospered with the addition of sugarcane to the variety of crops

on her farm.

Neither of the Big Two companies relies exclusively on South

African sugar earnings: Tongaat Hulett has a big property portfolio

and Illovo draws most of its profit from operations elsewhere in

Africa. Diversification is vital for the future of sugar producers and

power generation will be an important part of that.

The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and

can store more than half-a-million tons of sugar. It also has a molasses

mixing plant.

Agricultural assets

Of KwaZulu-Natal’s 6.5-million hectares of agricultural land, 18% is arable

and the balance is suitable for the rearing of livestock. The province’s

forests occur mostly in the southern and northern edges of the province.

SECTOR INSIGHT

Commercialisation of goat

farming will benefit smallscale

farmers.

The coastal areas lend

themselves to sugar production

and fruit, with subtropical fruits

doing particularly well in the

north. KwaZulu-Natal produces

7% of South Africa’s citrus fruit.

The Coastal Farmers Co-operative

represents 1 400 farmers.

TWK is a R6-billion operation

that originated in forestry (as

Transvaal Wattlegrowers Cooperative)

but which is now a

diverse agricultural company

with seven operating divisions.

It has 19 trade outlets in the

province and 21 in Swaziland

and Mpumalanga.

Beef originates mainly in the

Highveld and Midlands areas,

with dairy production being

undertaken in the Midlands and

south. The province produces

18% of South Africa’s milk.

KwaZulu-Natal’s subsistence

farmers hold 1.5-million cattle,

which represents 55% of the

provincial beef herd, and their

goat herds account for 74%

of the province’s stock. The

Midlands is also home to some

of the country’s finest racehorse

stud farms. The area around

Camperdown is one of the

country’s most important areas

for pig farming. Vegetables

grow well in most areas, and

KWAZULU-NATAL BUSINESS 2021/22

26


Amatikulu small-scale farmer Lilian Dube and SA Canegrowers’ Area Manager Sinenhlanhla Njoko

admire Dube’s seedcane plot. The seed was donated by commercial growers in the northern region.

Credit: SA Canegrowers.

some maize is grown in the north-west. Nuts such as pecan and

macadamia thrive.

KwaZulu-Natal has two colleges offering higher qualifications in

agriculture, Cedara in the Midlands and the Owen Sitole College of

Agriculture near Empangeni.

Enterprise iLembe is the development arm of the iLembe

District Municipality and is looking for investors to further develop

an agro-processing hub near the King Shaka International Airport

and Dube TradePort.

So-called superfoods have potential to grow the agricultural

sector via greatly increased exports: these include avocados, pecans

and dates. Another possibility is macadamia nuts (already a thriving

sector in other parts of the country) and in new areas such as the

farming of rabbits.

Among the new lines of agricultural produce being investigated

is cannabis. The provincial government initiated a feasibility study to

identify opportunities in the production of cannabis and downstream

beneficiation. A Cannabis Investor Protocol has been developed and

a dedicated Cannabis Unit has been established within the Moses

Kotane Institute to assist emerging cultivators and entrepreneurs

with infrastructure assistance, funding and licensing.

Another initiative of the Department of Agriculture and Rural

Development (DARD) is to promote the commercialisation of goat

farming. In 2020/21, DARD assisted farmers to plant 10 658ha for food

security and R30-million has been set aside for the establishment

of five large nurseries to produce seedlings and fruit trees. The

ONLINE RESOURCES

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

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

Milk Producers Organisation: www.mpo.co.za

South African Canegrowers Association: www.sacanegrowers.co.za

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

programme will employ 290

agricultural graduates.

The National Department

of Rural Development and Land

Reform (DRDLR) has launched an

Agri-parks programme to support

small-scale farmers and to boost

other businesses related to

agriculture such as abattoirs and

transport operators. KwaZulu-

Natal is one of four provinces

where pilot projects have been

carried out. The plan is to have an

Agri-park in each of South Africa’s

44 district municipalities with

farmers owning at least 70% of

the venture.

There are three components

to the fully realised Agri-park

concept:

• Farmer Production Support

Unit: links farmer with markets,

collection and short-term storage,

local processing and the

introduction of mechanisation.

• Agri-hub: equipment-hire,

processing, packaging,

logistics and training.

• Rural Urban Market Centre:

contract-based links to local

and international markets,

long-term storage and market

intelligence. ■

27 KWAZULU-NATAL BUSINESS 2021/22


Producing crops that

feed our country’s growth

Standard Bank supports the full agribusiness value chain.

I

n KwaZulu-Natal sugar is like gold. Large-scale

sugar production has always played an important

role in KwaZulu-Natal’s history and the sugar industry

is a significant part of South Africa’s economy

given its agricultural and industrial investment

and significance as a foreign exchange earner.

A R16-billion industry, it is a large employer with

85 000 direct jobs and an estimated 350 000

jobs indirectly attributable to sugar production.

KwaZulu-Natal is responsible for nearly 80% of the

country’s sugar production, with 20 000 growers

producing 1.68-million tons of sugar annually.

Standard Bank provides banking services and

finance to the entire value chain of this vital

industry, from input suppliers such as cooperatives

and chemical companies to contractors

and transporters, as well as specialist services and

the growers and millers.

We consider all types of agricultural finance, from

tailor-made long-term products for purchases of

fixtures and property, mid-term asset finance as

well as looking after short-term working capital

needs for operational costs and seasonal expenses.

Transactional banking, hire purchase, credit and

fleet management are also vital for cane hauliers.

Agribusiness offering

While many sectors in South Africa struggled in

2020 because of Covid-19 restrictions, agriculture

enjoyed a strong year. According to Statistics South

Africa the agriculture, forestry and fisheries sector’s

Q3 2020 seasonally adjusted and annualised growth

rate was 18.5% and was valued at R79.4-billion.

While agriculture remains the biggest contributor to

South Africa’s GDP, it is easy to forget its importance

and the impact it has on our lives – producing crops

that are crucial to our country’s growth.

That’s why Standard Bank is committed to providing

farmers with a full banking suite. Agriculture is a

specialised sector with more than 30 sub-industries,

and a vast field of knowledge is required to

understand each subsector and how each of these

industries’ cycles are integrated.

With 35 in-field agents located in all provinces

who are experts in those specific geographical

areas, we are able to assist with cash flow and

financial planning.

Standard Bank continues to prioritise providing a

world-class service, knowledge and expertise. We

believe that when a farmer wins, we all win. ■

Image by Jan Kopřiva on Unsplash


OUR FARMERS

ARE A REAL

TREAT.

Their hard work and

dedication sweeten

the deal.

That’s why Standard Bank supports farmers, offering a full banking suite

that includes everything from agricultural production loans to crop insurance.

Find out more at standardbank.co.za/agribusiness

29 KWAZULU-NATAL BUSINESS 2021/22

Standard Bank is an authorised financial services and registered credit provider (NCRCP15).

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). GMS-17909 02/21


OVERVIEW

Forestry and paper

A beekeeping project has reduced forest fires.

SECTOR INSIGHT

Nampak produces crêpe

paper at Verulam.

Since Sappi started allowing an organisation to place hives

in its forests five years ago, the concept has grown into a

fully-fledged beekeeping programme that sustains families

– and reduces uncontrolled fires.

Prior to inviting African Honey Bee onto its properties, Sappi

often had to deal with fires caused by people trying to find honey

by smoking out hives. A formal training programme has created

entrepreneurs who are now reaping the rewards. In 2017, African

Honey Bee purchased five tons of honey from 120 beekeepers. This

grew to 10 tons from 500 beekeepers in 2019 and training has been

offered in vegetable and poultry farming. The honey is packaged and

sold throughout South Africa as Sizana traceable honey.

Sappi has 19 production facilities on three continents (of

which five are in Southern Africa) and 12 800 employees in over 35

countries. Sappi’s Stanger Mill is situated close to sugar fields from

which it takes bagasse (dry sugar cane pulp) for use in its production

processes. Typek office paper is made at this mill, which has the

capacity to produce 80 000 tons of paper and 30 000 tons of tissue.

At the company’s Tugela Mill up to 200 000 tons per annum of

containerboard (corrugating medium) can be manufactured from

recycled and virgin fibre. The giant Sappi Saiccor mill 50km south of

Durban is the world’s biggest manufacturer of dissolving wood pulp.

The Mondi Group has grown into an international behemoth with

26 000 employees and operations in more than 30 countries. In 2019

Mondi announced that its primary listing would be in London and the

JSE will carry the company’s secondary listing.

Mondi’s Merebank Mill produces a range of office paper products

including the well-known brand, Mondi Rotatrim. Uncoated woodfree reels

ONLINE RESOURCES

Credit: Sappi

Forestry South Africa: www.forestry.co.za

Sizana honey: www.peels.co.za

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

Technical Association of the Pulp and Paper Industry of South Africa:

www.tappi.org

are manufactured for the South

African and Sub-Saharan African

markets. At Richards Bay, eucalyptus

fibre is used to make a premier-grade

bleached hardwood pulp and a white

top kraft linerboard is also produced.

Major investments at Richards Bay

have improved air quality, reduced

water consumption and reduced the

amount of solid waste.

Nampak produces crêpe paper

at Verulam and Rafalo produces

tissue paper. SA Paper Mills is

another paper producer.

Mpact’s upgrade of its Felixton

mill has increased capacity and

improved efficiency. The project

cost R765-million and takes overall

production up to 215 000 tons

and a lightweight containerboard

option has been included in the

product lines.

Mpact has plastics and paper

operations, with the paper section

divided into three divisions: paper

manufacturing, corrugated and

converted paper products and

recycling efficiency. The project

cost R765-million and takes overall

production up to 215 000 tons

and a lightweight containerboard

option has been included in the

product lines.

Mpact has plastics and

paper operations, with the

paper section divided into three

divisions: paper manufacturing,

corrugated and converted paper

products and recycling. ■

KWAZULU-NATAL BUSINESS 2021/22 30


OVERVIEW

Mining

Coal mining and processing has resumed.

South32’s Hillside aluminium smelter at Richards Bay produced

a record amount of saleable product in the year

to June 2020, despite variable energy supply.

The Covid pandemic in 2020 added to the

ongoing problem of reliable electricity supply, which is a

critical issue for a big energy user like a smelter. The crisis

affecting South Africa’s power utility, Eskom, is causing

South32, the Australian owner of the Hillside aluminium

smelter to rethink their operations there. In 2019

about 400 workers took early retirement or voluntary

retrenchment packages. In early 2021, a new contract

with Eskom was still under discussion.

Most of the product from the smelter (high-quality

primary aluminium ingot) is exported but some liquid metal

form is sent to Isizinda Aluminium which supplies Hulamin, a

company that has had a rolling mill in Pietermaritzburg since

1949. Hulamin is the only major aluminium rolling operator

in the region and it makes rolled products and extrusions.

Other processing facilities in the province include the

steel plant owned by Arcelor Mittal in Newcastle and Safa Steel’s metalcoating

factory in Cato Manor.

Coal mining resumed in northern KwaZulu-Natal at the start of

2021, after an enforced period under care and maintenance because

of the pandemic. Three shafts owned by Zululand Anthracite Colliery

(ZAC) are currently functioning and a fourth is expected to come

on stream in 2022, when the mine should be able to produce onemillion

tons of coal.

Some of the coalfields of the province have been revived.

Petmin’s Somkhele Anthracite Mine, north of Richards Bay, has one

of the biggest reserves of open-pit anthracite in South Africa, with

measured and indicated reserves of more than 51-million tons across

its four areas.

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

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

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

Luxembourg-based Traxys Africa, which has chrome mines in

ONLINE RESOURCES

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

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

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

SECTOR INSIGHT

KZN Sands offers

learnerships.

Credit: South32

Mpumalanga and Limpopo

provinces, runs a high-carbon

ferrochrome plant at Richards Bay.

The KZN Sands mineral sands

operation comprises a central

processing complex in Empangeni

and the Fairbreeze Mine.

Expenditure over several years is

expected to rise to R5-billion as it

expands. Tronox, which is listed on

the New York Stock Exchange, is the

major shareholder in KZN Sands.

KZN Sands offers learnerships at

Mtunzini and Empangeni.

Finnish company Metso is

spending about R53-million on

building a second furnace at its

Isithebe foundry in the iLembe

District Municipality. This is in

response to increased demand

for large crusher wear parts. The

KwaZulu-Natal foundry is one of

five foundries the company runs

on four continents. ■

31

KWAZULU-NATAL BUSINESS 2021/22


OVERVIEW

Engineering

A respected university unit is expanding its brief.

SECTOR INSIGHT

The steel industry is

under pressure.

Credit: WASH Centre

The Pollution Research Group (PRG) at the University

of KwaZulu-Natal (UKZN) has a new name and an

extended brief. It has been re-established as the Water,

Sanitation and Hygiene Research and Development

Centre (WASH R&D Centre).

The unit (pictured) continues to fall under Chemical Engineering,

where 34 staff contribute to lecture modules in a variety of fields

but which now go far beyond the original brief of water in industry.

Having seen a total of 22 PhD and 93 Masters’ students graduate under

the supervision of unit staff, the WASH R&D Centre has expanded

its research scope to include agricultural economics, crop and

soil sciences, microbiology, mechanical and civil engineering and

development studies. The Bill & Melinda Gates Foundation is among

the unit’s funders.

In addition to Chemical Engineering, the School of Engineering

offers a range of degree options in nine areas of specialisation including

Bioresources, Electronic and Computer Engineering and Land Surveying.

All of the province’s biggest industries require sophisticated

engineering skills: aluminium smelters in Richards Bay and steel works

in Newcastle, Richards Bay and Cato Ridge. There are also chemicals

and plastics production plants, and large automotive works.

Marine repair and engineering are important, with established

companies such as EBH South Africa offering comprehensive services

at the ports of Durban and Richards Bay.

Dormac, which is headquartered in the Bayhead area of the

Port of Durban, is best known for its marine engineering but it

ONLINE RESOURCES

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

South African Wire Association: www.sawa.co.za

Southern African Institute for Industrial Engineering: www.saiie.co.za

Wash R&D Centre: www.washcentre.ukzn.ac.za

offers specialised services to

the sugar industry and provides

machinery for industrial giants

like Toyota and Defy.

One of the largest

independent wire manufacturers

in the country, Hendok Group,

is steadily increasing its exports

to other African countries. With

more than 1 000 employees

at the factory in the Phoenix

Industrial Park in Durban, the

company makes a wide variety of

wires and is the country’s biggest

producer of nails.

ArcelorMittalSA is Africa’s

biggest steelmaker and it has a

plant at Newcastle, but tough

times in the steel business have

meant that the company has shut

down some of its facilities. The first

to be shuttered was Saldanha in

the Western Cape and an analysis

of the profitability of other centres

is underway.

A big project that has created

a lot of work for engineers is the

multi-year Western Aqueduct

project to bring fresh water to

greater Durban.

The Transnet Engineering

(TE) plant in the Port of Durban

houses six business units and

has 3 555 employees. The Port

Equipment Maintenance unit

and units specialising in wheels

and locomotive overhaul are

other entities. ■

KWAZULU-NATAL BUSINESS 2021/22

32


OVERVIEW

Oil and gas

A new tanker will improve port services.

African Marine Solutions has acquired a new tanker to

deliver oil to ships in the Port of Durban. The vessel

will deliver high and low sulphur oil and fuel oil in

Africa’s busiest port as part of a contract which the

company has signed with Shell Downstream South Africa.

The Port of Richards Bay is also investing in new infrastructure. The

supply of liquid petroleum gas (LPG) is set to be made much easier and

more reliable with the erection of the 22 600-ton Mounded LPG Facility

at Richards Bay.

Bidvest Tank Terminals has constructed the R1-billion storage facility

for Petredec, which trades, transports and distributes LPG and other

commodities. South Africa’s annual consumption of LPG, currently at

400 000 tons, is expected to rise to 600 000 tons.

KwaZulu-Natal is home to two major oil refineries and is the first link

in the pipeline chain that links Gauteng province, the industrial heartland

of South Africa, with vital fuels. The Port of Durban handles 80% of South

Africa’s fuel imports.

If a private partner can be found, an LNG plant will produce 2 000MW at

Richards Bay. This forms part of national government’s allocation of 3 126MW

to natural gas in its medium-term energy policy to 2030. The National

Department of Mineral Resources and Energy (DMRE) allocated one of the

first two gas-to-power plants to be constructed under the Independent

Power Producer Procurement Programme to Richards Bay. This has the

potential to turn the Richards Bay Industrial Development Zone (RBIDZ)

into an energy hub. The fact that neighbouring Mozambique has significant

offshore deposits is a factor in this plan. To produce its allocation of 2 000MW,

the plant would have to use a million tons a year of LNG.

ONLINE RESOURCES

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

Petroleum Agency SA: www.petroleumagencysa.com

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

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

SECTOR INSIGHT

Two oil refineries are located

in KwaZulu-Natal.

Credit: African Marine Solutions

Eni, one of the world’s biggest

energy companies, has an

agreement with Sasol Petroleum

International to explore for

hydrocarbons off the coast of

KwaZulu-Natal.

The regulator and promoter

of oil and gas exploration in South

Africa, Petroleum Agency South

Africa, has awarded coalbedmethane-gas

exploration rights

in KwaZulu-Natal to NT Energy

Africa, which has a partnership

with the Central Energy Fund.

These awards are for onshore

exploration. The Petroleum

Agency SA is an agency of the

National Department of Energy.

Getting fuel to the province

of Gauteng is the key mission of

the new multi-purpose pipeline

(NMPP). Refined products such as

jet fuel, sulphur diesel and both

kinds of octane petrol are carried.

The infrastructure of Transnet

Pipelines is said to reduce the

number of fuel tankers on South

African roads by about 60%. ■

33 KWAZULU-NATAL BUSINESS 2021/22


FOCUS

Gas discoveries are a boost

to the Oceans Economy

KwaZulu-Natal stands to benefit from significant finds

off the east coast of Africa

KwaZulu-Natal’s long coastline already

reaps enormous benefits for the economy

of the province through its sophisticated

port infrastructure, trade

opportunities and fishing opportunities but

recent gas discoveries off the coasts of Mozambique

and South Africa stand to make the

benefits of the Oceans Economy very real for

the coastal province’s residents.

The Oceans Economy is part of the nationallydriven

Operation Phakisa, a focused, goaloriented

jump-starting of a specific economic

sector. Operation Phakisa intends creating a

million jobs by 2033 and injecting R177-billion

into national GDP.

Major steps have been taken in the creation

of a South African gas market with two major

discoveries off the South African coast near

Mossel Bay. Says the CEO of Petroleum Agency

SA, Dr Phindile Masangane, “The recent discovery

by Total and its JV partners in Block 11B/12B

(Brulpadda) is the first giant step in that direction.”

Odfjell’s Deepsea Stavanger semisubmersible

oil rig relocated from Norway to

South Africa in June 2020 to start exploratory

drilling at the Brulpadda site. Having found good

quantities of light oil and gas condensate at

Brulpadda, the team returned in October to drill

at another site called Luiperd – and found even

more gas reserves. Analysts believe that these

two finds could be game-changers for the South

African economy as gas currently occupies a tiny

part of the country’s energy mix.

Early reports suggest that Luiperd might

have gas reserves twice as plentiful as the earlier

discovery, although they are similar in terms of

the liquids’ gas mix.

The exploration drilling is in deep waters similar

to where the gigantic Mozambique Rovuma Basin

gas discoveries were made in 2010. The drilling

campaign has long-term benefits to South Africa

which include introducing frontier deep-water

exploration drilling, building confidence and

potentially shifting petroleum exploration activities

to private international oil companies (IOCs), derisking

deep-water acreage which is believed to be

prospective for large oil and gas resources.

There is potential for gas to be sent by

undersea pipeline to Mossel Bay and to

support the country’s switch from coal.

“Further development of the discovery is

highly dependent on the success of this further

drilling,” comments Dr Masangane. “Possible

development could see condensate being piped

to the PetroSA facility in Mossel Bay,” she adds,

“but these decisions are ultimately up to the

operator, Total and its partners.”

Africa Energy holds a 4.9% effective interest

in the Exploration Right for Block 11B/12B.

The Company owns 49% of the shares in Main

Street 1549 Proprietary Limited, which has a

10% participating interest in the block. Total

as operator holds a 45% participating interest

in Block 11B/12B, while Qatar Petroleum (25%)

and CNR (20%) are the other participants.


FOCUS

Petroleum Agency SA: promoting and

regulating exploration and production.

Petroleum Agency SA evaluates, promotes and

regulates oil and gas exploration and production

activities in South Africa and archives all relevant

geotechnical data. The Agency acts as an advisor

to the government and carries out special

projects at the request of the Minister of Mineral

Resources and Energy.

South Africa’s energy mix is changing

to include more gas through importing

liquefied natural gas (LNG), using shale gas if

reserves prove commercial, and developing

infrastructure for the import of LNG. Petroleum

Agency SA plays an important role in developing

South Africa’s gas market by attracting qualified

and competent companies to explore for gas.

Another major focus is increasing the inclusion

of historically disadvantaged South Africanowned

entities in the upstream industry.

Currently, natural gas supplies just 3% of South

Africa’s primary energy. A significant challenge

facing the development of a major gas market

is the dominance of coal. Opportunities for gas

lie in the realisation of South Africa’s National

Development Plan (NDP) and the Integrated

Resource Plan (IRP).

As custodian, Petroleum Agency SA

ensures that companies applying for gas rights

are vetted to make sure they are financially

qualified and technically capable, as well

having a good environmental track record. Oil

and gas exploration requires enormous capital

outlay and can represent a risk to workers,

communities and the environment. Applicants

are therefore required to prove their capabilities

and safety record and must carry insurance for

environmental rehabilitation. ■

Contact details

Telephone: +27 21 938 3500

Email: plu@petroleumagencysa.com

Website: www.petroleumagency.com

PASA’S NEW CEO HAS A BACKGROUND IN ENERGY POLICY AND STRATEGY

Dr Phindile Masangane was appointed as the

CEO of the South African upstream oil and gas

regulatory authority, Petroleum Agency South

Africa, in May 2020. Before then, Dr Masangane

was an executive at the South African state-owned

energy company, CEF (SOC) Ltd, which is the

holding company of PASA.

Dr Masangane was responsible for clean,

renewable and alternative energy projects.

In partnership with private companies, she

led the development of energy projects

including the deal structuring, project

economic modelling and financing on

behalf of the CEF Group of Companies. Her

responsibilities also included supporting the

national government in developing energy

policy and regulations for diversifying the

country’s energy mix.

In 2019, Dr Masangane was Head of Strategy for

the CEF Group of Companies where she led the

development of the group’s long-term strategic

plan, Vision 2040+ as well as the group’s gas strategy.

From 2010 to 2013, Dr Masangane was a partner

and director at KPMG, responsible for the Energy

Advisory Division. She successfully led the capital

raising of $2-billion for hydro and coal power

plants expansion programmes of the

Zimbabwean power utility, ZESA/ZPC.

An alumnus of three

universities, Dr Masangane has a

BSc (mathematics and chemistry)

from the University of Swaziland,

a PhD in Chemistry from Imperial

College, London and an MBA

from the University of the

Witwatersrand. ■


OVERVIEW

Construction and property

The north coast continues to attract high prices.

SECTOR INSIGHT

Durban has an inner-city

revival plan.

The Dolphin Coast continues to attract high-end investors.

Seaton, The Bay, in Sheffield Beach Estate, north of Ballito

and Simbithi Eco-Estate, distinguishes itself from its neighbours

by offering direct access to the beach.

Collins Residential reported R179-million in sales in two months

in late 2020, for the first two parts of the development. Owners

are expected to take up residence early in 2022. Further south,

Zimbali is another estate holding its own in terms of value, as

the Sunday Times reported in September 2020. Seeff Zimbali sold

two properties for a combined R44.5-million and Pam Golding

Properties were selling plots at Signature Sibaya for prices ranging

from R5-million to R12-million.

A programme that aims to make Durban’s inner city “Africa’s leading,

most vibrant, liveable, walkable City Centre” could provide some impetus

to the construction sector.

The Inner City Local Area Plan (LAP) for Durban has been developed

for the Strategic Planning unit of the eThekwini Municipality by a joint

venture called IPPU.

A major milestone was reached in November 2019 when the

beachfront promenade extension reached the harbour. This means that

residents anywhere in the city can now step onto the promenade, from

the harbour in the south to Blue Lagoon in the north. The project began

in early 2018 and cost R400-million.

ONLINE RESOURCES

Credit: Collins Residential

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

Master Builders Association KwaZulu-Natal: www.mba-kzn.co.za

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

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

According to the organisers of

the 2019 KZN Construction Expo,

infrastructure will attract more

than R200-billion in investment

over seven years and R35-billion

will be spent over 15 years at the

Port Waterfront development.

The King Shaka International

Airport and Dube TradePort are also

attracting property investments.

Two new industrial parks are being

developed: Cornubia is part of

a larger project near Umhlanga

and Clairwood in Durban South

will offer more than 300 000m² of

A-grade industrial space.

Tongaat Hulett Developments

(THD) has for some years

been rolling out a series of

developments on land it owns

north of Durban and it has

launched the nTshongweni Urban

Development on either side of the

busy N3 highway west of the city.

KwaZulu-Natal has a number

of brick companies and four

cement factories. Three of these

are run by NPC at Simuma,

Durban and Newcastle, and

the company has a further six

sites for concrete and two for

aggregate. NPC is part of the

Intercement group. Lafarge has

several aggregate quarries and

eight Readymix plants around the

province. The company’s grinding

operation in Richards Bay closed

in 2017. ■

KWAZULU-NATAL BUSINESS 2021/22

36


OVERVIEW

Tourism

Dedicated funds are promoting transformation.

SECTOR INSIGHT

KwaZulu-Natal expected

more than R1-billion from

events in 2020.

The Tourism Transformation Fund, created by the

National Department of Tourism and the National

Empowerment Fund (NEF), has disbursed several grants

to KwaZulu-Natal operations.

These include the Rhino Ridge Lodge in Hluhluwe and the Jozini

Tiger Lodge, located on Lake Jozini with views of the Lebombo

Mountains. The latter lodge is a community-owned initiative which

employs 96 local people, mostly women.

The provincial government has invested in maintenance and

upgrades of facilities such as the caves at Ngodini and Ndumo and

the Bhanga Nek Campsite. There are plans to upgrade the Mandela

Capture Site near Howick.

The combined contribution of retail and tourism to provincial

GDP is 14%.

The province anticipated income injection from business events

to be hosted in 2020/2021 to be about R1.2-billion. All of that fell

away because of the global Covid-19 epidemic. The meetings,

incentives, conferences and exhibitions (MICE) sector is likely to be

the hardest hit by the lockdowns and it is difficult to anticipate when

it will recover.

ONLINE RESOURCES

Credit: Kevin Folk on Unsplash

Durban International Convention Centre: www.icc.co.za

Ezemvelo KZN Wildlife: www.kznwildlife.com

Moses Mabhida Stadium: www.mmstadium.com

Tourism KwaZulu-Natal: www.zulu.org.za

Similarly, the investment

of R220-million into the

construction of a cruise terminal

is unlikely to see a return for

some time.

Adventures don’t come

more hair-raising than throwing

yourself into the void above a

sports stadium, but that’s what

thousands of visitors to the

Moses Mabhida Stadium have

been doing for a decade.

The SkyCar, a funicular trip

over the top of the roof and

bungy-jumping are popular,

as is the “Adventure Walk” on

the south side of the stadium.

The 56 000-capacity stadium is

home to a professional soccer

team and forms part of a

sporting precinct that includes

the province’s professional

rugby franchise, the Kings

Park Stadium, and has greatly

increased KwaZulu-Natal’s

ability to host big events such

as the Fact Durban Rocks and

the Monster Jam.

The upgrading of the

Point area between the beach

and the Port of Durban has

resulted in major investments.

The Docklands Hotel at the

Durban Waterfront is a fourstar

Signature development

that cost about R100-million

to develop. ■

37 KWAZULU-NATAL BUSINESS 2021/22


OVERVIEW

Manufacturing

Cellphones are now made in KwaZulu-Natal.

The Mara Group has invested more than R1-billion in a

factory to manufacture cellphones at the Dube Trade-

Port which is linked to the King Shaka International

Airport. More than 300 permanent jobs will be created.

Dube TradePort attracted R7-billion in private and public sector

investment between 2012 and 2019 and, with its ideal position for

logistics operations, is expected to attract much more.

The province’s other Special Economic Zone (SEZ), the Richards

Bay Industrial Development Zone (RBIDZ), has attracted a further

R7-billion through four recent investments: Ubuhle Towels is a

towel manufacturer; Elegant Afro Line makes chemicals and Wilmar

SA is a manufacturer of edible oils. Nyanza Light Metal is investing

R4.5-billion in the production of titanium dioxide pigments.

A new plant to make washing machines has created 75

jobs at the Durban plant of white-goods manufacturer Defy.

The R121-million investment is part of a R1.2-billion investment

programme which Arçelik Global, the Turkish company, has been

following since it acquired Defy. The company has another plant

in KwaZulu-Natal at Ezakheni (near Ladysmith) and at East London

in the Eastern Cape.

Cipla, the Indian manufacturer of generic drugs, is building a

new facility at Dube TradePort to complement its existing factory in

Durban. LG Electronics South Africa has opened a R21-million factory

and distribution centre in Cornubia, north of Durban.

Expansion of production normally heralds an uptick in the

economy. Unfortunately, the fact that more aluminium products are

going to be made by Hulamin’s extrusion facility in Pietermaritzburg

reflects the fact that the company has closed one of its factories in

another province. The company believes that its restructuring is

working well, and its beverage business is thriving. Hulamin also makes

rolled products at Edendale, Pietermaritzburg and Camps Drift.

The manufacturing sector contributes 17.7% to the provincial

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

export sectors are base-metals (32% including aluminium), mineral

products such as ores, vehicles and chemical products.

ONLINE RESOURCES

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

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

Enterprise iLembe: www.enterpriseilembe.org.za

Plastics SA: www.plasticsinfo.co.za

SECTOR INSIGHT

Richards Bay Industrial

Development Zone is set

to receive R7-billion in

investments.

Credit: Hulamin Rolled Products

New opportunities in the

Blue Economy (ship-building

and maintenance, oil-rig

repair and servicing) and the

Green Economy (solar panel

manufacture, solar, biogas and

wind energy plant construction,

management and maintenance,

heating and cooling devices) are

set to grow in KwaZulu-Natal with

the allocation of geographical

hubs to support these sectors,

and the introduction of policies

to make them competitive.

Two large oil refineries

and a sophisticated sugar

milling and refining industry

underpin provincial chemical

manufacturing. The chemicals

and petrochemicals subsector

makes up 17% of the

manufacturing output of

KwaZulu-Natal, with industrial

chemicals accounting for nearly

a third. Steel and aluminium

are other heavy manufacturing

products. Newcastle is a

chemical manufacturing hub. ■

KWAZULU-NATAL BUSINESS 2021/22

38


Automotive

Stanger will host a new battery factory.

OVERVIEW

SECTOR INSIGHT

Toyota is to start

producing a sports-utility

vehicle in 2021.

Credit: Toyota

More than 3 000 jobs will be created by battery manufacturer

Metair as it responds to the winning of a big contract

from Ford Motor Company South Africa. Stanger in

northern KwaZulu-Natal will be the site of a new factory

and a further investment in logistics will take place in Gauteng.

KwaZulu-Natal has a substantial automotive components sector

which includes large manufacturers such as GUD Filters. Thirtynine

companies are currently members of the Durban Automotive

Cluster which is funded by the municipality. Together, these firms

have about 17 000 employees.

In line with the policy of developing Industrial Economic

Hubs, the Durban Automotive Supplier Park is being built at

Illovo, south of Durban and near to the Toyota manufacturing

plant. The Dube TradePort Corporation will manage the project,

which covers 1 013ha. Other partners are the eThekwini

Municipality, Toyota and the provincial government.

Toyota’s plant, just a few kilometres south of the harbour at

Prospecton, has received a R2.4-billion investment to produce a new

passenger vehicle. The Corolla Cross (pictured) will start production

in the final quarter of 2021. A sports-utility vehicle, the Cross will also

be available as a hybrid.

Toyota sells about a quarter of the vehicles sold in South

Africa, and accounts for the same proportion of export volumes.

The company’s total investment of R4.2-billion between 2019 and

2021 includes other manufacturing projects and a huge increase in

warehousing capabilities.

The other large-scale original equipment manufacturer in

the province is Bell Equipment. Between the Toyota plant and the

ONLINE RESOURCES

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

Durban Automotive Cluster: www.dbnautocluster.org.za

National Association of Automotive Component and Allied Manufacturers

(NAACAM): www.naacam.co.za

Richards Bay facility of heavyequipment

manufacturer Bell

Equipment, upwards of 11 000

people are employed.

Another manufacturer of

earthmoving equipment can

be found at Port Shepstone

on the south coast. Dezzi is

part of the Desmond Group of

companies that was founded

in 1973 and now has 18 offices

and branches. The Dezzi CMI

backhoe loader is a popular part

of the company’s range.

In 2018 AIH Logistics

started assembling Mahindra

and Bolero bakkies from kits

imported from India on a

site at the Dube TradePort.

The 5 000m² plant is owned

by Automotive Investment

Holdings (AIH), which formed

AIH Logistics specifically to deal

with the Mahindra contract.

The intention is to make 2 500

bakkies per year, with an option

to expand production to 4 000

and to increase sales of bakkies

in the South African market.

The Mathe Group’s tyre

recycling plant at Hammarsdale

has quickly increased capacity

to 150 000 used truck tyres

per year and intends going

past 200 000 soon. Other

applications include modified

bitumen and as a component

of artificial grass. ■

39 KWAZULU-NATAL BUSINESS 2021/22


OVERVIEW

Education and training

An ambitious scheme aims to prepare young people for the world of work.

SECTOR INSIGHT

A skills audit of municipal

officials is underway.

Universities

The AFDA campus in Durban caters for film, television and arts

students. Credit: AFDA

The Sukuma 100 000 programme was launched in 2020

by the Provincial Government of KwaZulu-Natal with the

goal of helping young people make the transition from an

educational environment into the world of work.

With the assistance of the private sector, the Youth Directorate

in the Office of the Premier wants 100 000 young people to benefit

every year from in-service training, apprenticeships and internships.

State-owned entities and government departments will also

participate in the programme, which is scheduled to last five years.

In another initiative related to competencies, a skills audit is

to be conducted among senior officials across the province. The

audit began in municipalities and will be extended to provincial

departments and agencies of the province in due course.

KwaZulu-Natal has nine Technical and Vocational Education and

Training (TVET) Colleges with a total enrolment of about 80 000.

Coastal KZN TVET College gives students practical experience

through facilities such as the Nongalo Industrial Park. The college

hosts the Samsung Engineering Academy, a Tooling Centre of

Excellence and a manufacturing plant for sanitary towels. The college

has several sites on the South Coast and caters for 15 400 students.

Majuba TVET College is a Centre of Specialisation for boilermaking.

The Mnambithi TVET College is located in the Battlefields

Route tourism area and offers National Diploma courses in tourism,

among other qualifications. A satellite campus operates at Estcourt.

There are two universities and

two universities of technology in

KwaZulu-Natal, and the national

distance university, the University

of South Africa (Unisa), has a

presence in five locations. USB

Executive Development offers

business courses for executives.

UKZN has close to 40 000

students studying on five

campuses in two cities. Greater

Durban hosts Howard College,

Berea (environment, engineering,

law, humanities) and the Nelson

Mandela School of Medicine at

Congella. The UKZN administration

and the Graduate School of

Business are based at Westville (also

science, engineering: and health)

whereas the Edgewood, Pinetown,

campus focusses on and education.

The Pietermaritzburg

campus offers a broad academic

programme but its specialities are

fine art, theology and agriculture.

UKZN also hosts the National

Research Foundation.

The Durban University of

Technology (DUT) has six faculties

operating in seven campuses in

Durban and in the Midlands. DUT

is well known for its outstanding

graphic-design school and offers

one of only two chiropractic

programmes in South Africa.

KWAZULU-NATAL BUSINESS 2021/22

40


OVERVIEW

The University of Zululand offers diploma and degree courses on

two campuses at Empangeni and Richards Bay.

Several provincial government departments make tertiary

bursaries available to qualifying students, including Agriculture and

Rural Development, Human Settlements, Public Works, Transport

and the Treasury. The National Student Financial Aid Scheme (NSFAS)

supports 26 public universities across the country in advancing

payment of registration fees for poor students.

The private sector also actively supports education through

bursaries. A crowdfunding platform set up by Standard Bank, the

Feenix Trust, raised more than R35-million in three years to support

more than 1 000 students. The bank’s Ikusasa Student Financial Aid

Programme (ISFAP) provides bursaries for students from families

earning less than R600 000 per annum.

Schools

KwaZulu-Natal has 2.8-million school pupils, many of whom are

in rural areas. With 30% of South Africa’s pupils in its schools, the

province’s results have a big bearing on how the nation fares in

annual examinations.

There is now near universal access to primary and secondary

schooling and a new drive to enrol pre-school children in Grade R has

achieved a 70% success rate. The province has 1 689 early childhood

development centres.

Transport is provided to 350 schools, covering 59 000

pupils and 2 400 bicycles have been made available under the

Shovakalula programme.

The Anton Lembede Mathematics, Sciences and

Technology Academy in La Mercy north of Durban welcomed

its first Grade 8 pupils in 2021. Enrolment is expected to

reach 600 for the school, which caters to grades 8 to 12. The

long-planned project cost R255-million and is part of a wider

provincial programme that includes a Special School for

Autism and two Schools of Excellence scheduled to be started

ONLINE RESOURCES

Council of Higher Education: www.che.ac.za

Independent Schools Association of Southern Africa: www.isasa.org

KwaZulu-Natal Department of Education: www.kzneducation.gov.za

National Research Foundation: www.nrf.ac.za

National Skills Authority: www.nationalskillsauthority.org.za

in 2021, for Agriculture

in Umgungundlovu and

Maritime studies in Umlazi.

A primary school in the

Harry Gwala District was

the site of the launch of an

e-learning infrastructure

programme that is intended

to be rolled out to rural areas

throughout the province.

Digital access will allow

pupils in remote areas to

be connected to the best

teachers in the province.

The unbundling from the

successful Curro group of a

separate tertiary entity which

listed on the JSE as Stadio

Holdings is a good indicator

of the growth of the private

sector in education. Stadio

currently has three institutions:

Southern Business School,

AFDA (the School for the

Creative Economy) and the

Embury Institute for Higher

Education which has a campus

in Musgrave, Durban. There are

seven schools in KwaZulu-Natal

operating under Curro brands.

Advtech, the other big

private company in the

sector, already has 27 tertiary

campuses nationally, in

addition to its 78 schools

operating under a variety

of labels. Advtech operates

10 educational sites in

KwaZulu-Natal, including

schools such as Crawford and

Trinity House, a chefs school

(Capsicum), three Varsity

Colleges and the Design

School for Southern Africa. ■

41 KWAZULU-NATAL BUSINESS 2021/22


REALISING DREAMS

THROUGH QUALITY EDUCATION

Standard Bank’s commitment to education in South Africa

The power of education to drive change in

South Africa remains undeniable. Unfortunately,

many in our country, because of their

personal circumstances still struggle to access

a quality education. Standard Bank takes an active role

in helping these young people realise their dreams

through financial support and training initiatives. We believe

that all South Africans deserve a quality education.

Standard Bank invests in improved educational

outcomes and skills development in multiple

ways. We prioritise education in our corporate

social investment (CSI) programmes and invest in

work readiness programmes through our internal

learnership and graduate programmes.

We work with partners in government and the

corporate sector to address the challenge of

affordable and accessible student finance.

ECD and Foundation Phase

In 2019 we developed a refreshed CSI strategy, which

focuses specifically on Early Childhood Development

(ECD) and Foundation Phase education.

Extensive research demonstrates that developmental

stimulation during the early years of childhood are critical

to future intellectual, emotional and physical wellbeing.

In 2020, in the wake of the Covid-19 pandemic,

we supported our existing ECD partners and we

worked closely with NGO partners identified by the

Department of Basic Education.

Feenix crowdfunding

Standard Bank South Africa launched Feenix Trust

in 2017 to make tertiary education more accessible

for economically disadvantaged students. In its first

three years, Feenix raised over R35-million, providing

support for over 1 000 students.

The platform enables university students to

create profiles and request donations toward

their education journey and enables individuals

and businesses to take meaningful action to

solve social problems. To qualify, students

need to be registered at a South African public

university and have an annual household income

of below R600 000. Academic achievement is not

a criterion.

Bursary Programmes

In South Africa, the Ikusasa Student Financial Aid

Programme (ISFAP) is part of the effort to solve

the funding challenge faced by “missing middle”

students. The programme funds the tertiary

studies of students from households that earn up

to R600 000 per year.

ISFAP focuses on students studying toward

jobs in high-demand sectors, scarce skills, and

professional degrees. It covers the full cost of

study, together with “wrap-around support”,

which includes additional academic, social and

psychological support such as mentoring and

life-skills training. ■

Image by Ben White on Unsplash


CONGRATS TO THE

CLASS OF 2020

The work is done and the results

are in – now it’s time to build

the future you want.

After waiting so long to find out how you did

in the exams, it’s nice to know that it only takes a

few minutes to secure your future with a Student Loan.

Drop the stress and start the dream. Apply online today at

standardbank.co.za to find out if you qualify, and access

affordable repayments and low interest rates*.

#LetsPush

*Ts&Cs apply.

Standard Bank is an authorised financial services and registered credit provider (NCRCP15).

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). GMS-17909 02/21


OVERVIEW

Water

Waste-water works are being upgraded.

A

new tender was issued in 2020 for the completion

of a 35-megalitre-per-day upgrade of the Darvill

Waste-Water Works. The facility receives and treats

both domestic and industrial waste-water from the

city of Pietermaritzburg.

A provincial Water Intervention Plan is being rolled out in

hotspots where municipalities are struggling to provide consistent

services. The water-stressed districts to benefit from this project

are Ugu, uThukela, uMzinyathi, Amajuba, Zululand, uMkhanyakude

and Harry Gwala. The main pipelines of Kokstad and Underberg are

receiving upgrades, as are the water supply systems at Bergville,

Skhemelele and Moyeni Zwelisha.

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

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

office and accommodation projects going ahead simultaneously.

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

buildings also create pressure on infrastructure.

The multi-year, R250-million Northern Aqueduct Augmentation

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

underway. This will provide water for Durban North, Umhlanga,

Newlands, KwaMashu, Phoenix and Cornubia.

Two new dams will add 800-million litres of water per day to the

available supply in KwaZulu-Natal. As part of the lower uMkhomazi

bulk water scheme, utility Umgeni Water will spend about R26-billion

on the Smithfield Dam and R2.4-billion on the Ngwadini Dam.

Umgeni Water currently supplies more than 472-million cubic

metres of potable water to its six large municipal customers:

eThekwini Metropolitan Municipality, iLembe District Municipality,

Sisonke District Municipality, Umgungundlovu District Municipality,

Ugu District Municipality and Msunduzi Local Municipality. The

company has five dams, 10 waterworks, five water-treatment plants

and two waste-water works, including Darvill.

Large parts of the northern part of the province are served by

Mhlathuze Water. The utility has assets valued at more than R3-billion

and its area of supply covers 37 000m².

ONLINE RESOURCES

Mhlathuze Water: www.mhlathuze.co.za

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

Umgeni Water: www.umgeni.co.za

Water Research Commission: www.wrc.org.za

SECTOR INSIGHT

Water hotspots are

getting urgent relief.

New technology has

been installed at the Verulam

Wastewater Treatment Works

of the eThekwini Municipality.

Murray & Roberts Water and its

European technology partner,

Organica Water, has installed an

environmentally-friendly system.

Richards Bay has installed a

10-container desalination plant

next to the municipal water

treatment plant at Alkanstrand.

The first mobile sea water

purification unit in South Africa,

it comprises 10 containers

and is located adjacent to

the water treatment plant at

Alkantstrand. It can deliver 10

megalitres of drinking water.

However, the high cost of

electricity means that the unit

is used sparingly. Solar energy

is being investigated as a

possible alternative.

In 2018 JG Afrika delivered

a R72-million desalination plant

to South32’s Hillside aluminium

smelter in the same town. ■

KWAZULU-NATAL BUSINESS 2021/22

44


Energy

Toyota dealers are using less energy.

OVERVIEW

SECTOR INSIGHT

Sugar producers want to sell

electricity.

Credit: Toyota SA

In terms of Toyota’s Dealer Environmental Risk Audit Programme

(DERAP), dealers do audits twice a year to check

their compliance with various environmental and energy

standards. One checkpoint relates to generating less energy.

The national winner of the DERAP award installed 288 solar

panels on the roof, uses LED lights in the workshop and natural

light is utilised via louvres.

The managing director of Illovo Sugar SA, Mamongae Mahlare,

has told the Sunday Times that the sugar industry is in real need of

some other source of income to offset tough times. Selling energy

to the grid (and investigating biofuel and bio-energy) are “key”

to the sector’s future, she told the newspaper. At the company’s

Eswatini mill, Ubombo, it has a commercial supply agreement

with the Eswatini Electricity Company.

The province’s other sugar giant, Tongaat Hulett, produces

between 12MW and 14MW of power at its mills and believes that the

national sugar industry could generate between 700MW and 900MW.

A 17MW biomass project represents the province’s only

approved project in terms of the national Renewable Energy

Independent Power Producer Procurement Programme (REIPPPP).

An open cycle gas turbine plant at Shakaskraal in the iLembe

District Municipality can be converted to gas-fired technology, a

method which energy planners are encouraging. The 670MW plant

came on stream in 2017. Its project company, Avon Peaking Power,

is jointly owned by a community trust, Mitsui (Japan), Legend

ONLINE RESOURCES

National Department of Energy: www.energy.gov.za

National Energy Regulator: www.nersa.org.za

South African National Energy Development Institute:

www.sanedi.org.za

Power Solutions (South Africa)

and ENGIE of France.

As part of the provincial

government’s strategy to

boost regional development,

the iLembe District has

been named as an Industrial

Economic Hub (IEH) for the

renewable energy sector.

Khanyisa Projects has set

up 26 biodigesters which

produce gas for cooking at

Ndwedwe in the iLembe

District. The project forms

part of the Working for

Energy programme of the

South African National

Energy Development Institute

(SANEDI) which promotes

the use of sustainable clean

energy in rural areas.

The Richards Bay Industrial

Development Zone (RBIDZ)

has been named as the site

for 2 000MW liquefied natural

gas (LNG) plant in terms of

national government’s gas-topower

plan. RBIDZ is also the

site of a new biomass plant.

Biomass technology is at

the centre of the conversion

scheme of South African

Breweries at its Prospecton

plant south of Durban.

Methane-gas emissions from

a nearby effluent plant are

piped to the plant where they

are converted to electricity. ■

45 KWAZULU-NATAL BUSINESS 2021/22


OVERVIEW

Banking and financial services

Choices for South African financial consumers are expanding.

Aspen has taken a secondary listing on the A2X. Credit: Hodari Properties

Aspen Pharmacare is a speciality pharmaceuticals

company with a presence in more than 50 countries

and nearly 9 000 employees. The company’s

headquarters are in La Lucia Ridge north of Durban.

Aspen’s production facilities are elsewhere, but the global

headquarters offer a grand view of the Indian Ocean (and the roof of

the headquarters of another giant South African company, Unilever

South Africa) in an area popular with tax consultants and stock brokers.

Aspen’s revenue in 2020 increased to R38.6-billion.

Aspen’s decision to register a second listing on one of South

Africa’s newest stock exchanges (the primary listing remains on the

JSE) was a boost for A2X, which set out to attract secondary listings.

Patrice Motsepe’s African Rainbow Capital is an investor in A2X.

The announcement in December 2020 that Prosus was going

to take a secondary listing on A2X raised the bourse’s total market

capitalisation to nearly R5-trillion across 40 companies. Prosus, a

consumer Internet group and technology investor, has a market cap

of R2.7-trillion.

Of the four new exchanges, Equity Express Securities Exchange

(EESE) trades in Black Economic Empowerment (BEE) while ZARX

and 4AX are targeting companies that are not listed elsewhere.

ZARX has agricultural holding companies like TWK and Senwes

among its first clients.

SECTOR INSIGHT

MyMo is Standard Bank’s

newest low-cost bank account.

Together with real estate

and general business, the

financial sector in KwaZulu-

Natal accounts for 18% of gross

domestic product (GDP).

Big strides have been made

in providing banking services

to the previously unbanked but

there is still a long way to go. The

widespread use of smartphones

is creating new opportunities for

banks and other financial service

providers to further close the gap.

Standard Bank introduced

the low-cost MyMo account

in KwaZulu-Natal in 2020. With

free electronic transactions,

unlimited card swipes and a low

KWAZULU-NATAL BUSINESS 2021/22

46


OVERVIEW

monthly fee, the MyMo account is ideal for low-income earners, microentrepreneurs

and the poor. Customers do not have to visit branches

to sign up for the account. They can take a selfie on the mobile app.

Says Imraan Noorbhai, Provincial Head of Standard Bank KZN,

“Given South Africa’s history and current economy, financial inclusion

is extremely important for us, and with the MyMo account, we want

our customers to thrive financially.”

Shariah-compliant banking is provided by alBaraka Bank which has

its headquarters at Kingsmead in Durban, which is also the site of its

corporate-banking division. In 2020 the bank announced plans for a

comprehensive Shariah-compliant banking app, enabling clients to

do transactions via mobile devices. Other technological updates are

being explored to allow customers to open bank accounts from the

comfort of their own homes.

HBZ Bank, a wholly-owned subsidiary of Habib Bank and AG

Zurich, has branches in Westville, Durban and Pietermaritzburg.

In 2017 Tyme Digital received a licence to run a bank. By early

2019, TymeBank was available in 500 Pick n Pay and Boxer stores and

more than 50 000 customers had an account. Tyme stands for Take

Your Money Everywhere; the bank does not have a branch network.

African Rainbow Capital began as the venture’s BEE partner but in

2018 bought out the Commonwealth Bank of Australia.

Tyme reported in October 2020 that it had 2.4-million customers,

up from 1.4-million at the end of March. A 400% increase in the use of

services such as airtime and electricity purchases was also noted.

Second to market among the country’s new banks was Discovery

Bank, which officially launched in 2019 and is experiencing rapid

growth with retail deposits at the end of 2020 of R5.7-billion. Discovery

Bank is applying the behavioural model it uses in its health business

to reward good financial behaviour. The Discovery group is already

a giant on the JSE with a market value of R83-billion and access to

millions of customers.

Development loans

The Brics New Development Bank has made a $200-million loan for

the expansion of the container terminal in Durban. The busy port is

currently stretched beyond capacity and waiting time for trucks can

be extremely long.

Activist groups in Durban’s

southern suburbs are opposing

the loan and the expansion,

saying that further development

will increase pollution in the

area and lead to even more

dangerous traffic congestion.

Up the coast at Richards Bay,

the World Bank’s International

Finance Corporation (IFC)

has committed $2-million

to a feasibility study on the

construction of a liquefied

natural gas (LNG) storage and

regasification terminal. The

study’s costs are shared with

Transnet and a private investor

will be sought if the feasibility

study is positive.

The Chartered Institute of

Government Finance, Audit and

Risk Officers (Cigfaro) advises

institutions, trains its members in

public finance and promotes the

interests of professionals in the

public sector. It also develops

and assesses qualifications and

advises tertiary institutions on

the requirements for courses.

The South African Institute

for Chartered Accountants

International provides training

in financial reporting standards

for SMMEs while the Insurance

Institute of KwaZulu-Natal

(IISA) holds regular education

workshops. The institute’s

mentorship programme is run in

association with the Musifunde

Training Centre. ■

ONLINE RESOURCES

Association for Savings and Investment South Africa: www.asisa.org.za

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

Insurance Institute of South Africa (KwaZulu-Natal): www.iikzn.co.za

South African Institute for Chartered Accountants: www.saica.co.za

47 KWAZULU-NATAL BUSINESS 2021/22


OVERVIEW

Development finance and

SMME support

Exxaro and Bell are teaming up to help SMMEs.

SECTOR INSIGHT

Provincial government funds are

available for entrepreneurs.

Agreeing to work together: Mzila Mthenjane (Executive Head: Stakeholder Affairs,

Exxaro) and Duncan Mashika (MD, Bell Equipment Sales South Africa).

Resources company Exxaro has signed an agreement with

KwaZulu-Natal company Bell Equipment which gives access

to contractors to mining equipment at affordable prices, as

part of Exxaro’s enterprise and supplier development (ESD).

Advice and support to the new owners of equipment will also be

available in terms of the partnership.

The Provincial Government of KwaZulu-Natal made available

through the Operation Vula Fund the sum of R150-million in the

2020/21 financial year in support of enterprise development.

Similarly, the KZN Youth Empowerment Fund has provided R71-million

to 55 youth-owned enterprises, including Uthandimvelo Trading, a supplier

to the Tongaat Hullet Mill. A R1.45-million grant assisted in the creation of 10

permanent jobs and 25 temporary jobs.

Funding from the National Department of Trade, Industry and

Competition’s (dtic) Black Industrialist Programme and from the

Industrial Development Corporation (IDC) secured 70% of Newcastlebased

Boschpick Engineering for entrepreneurs Bongani Khumalo and

Phillip Majali and their company

Lipsobex. The IDC provides finance

across a range of sectors from

agriculture to tourism.

The Small Enterprise

Development Agency (Seda) is

active in supporting entrepreneurs.

Seda gives non-financial support

through training, assistance with

filling in forms, marketing and

creating business plans.

In KwaZulu-Natal, Seda runs

12 Incubators which either help

new businesses get started or

with the rehabilitation of existing

enterprises. Three models are

used: Technology Demonstration

Centres (demonstration and

training); Technology Incubators

(where the focus is rehabilitation);

Hybrid Centres, which combine

elements of the other two models.

The KwaZulu-Natal incubators

include ICT and construction

(three centres each), furniture and

hi-tech (two each) and chemicals,

and essential oils. ■

ONLINE RESOURCES

National Department of Small Business Development: www.dsbd.gov.za

SA SME Fund: www.sasmefund.co.za

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

KWAZULU-NATAL BUSINESS 2021/22

48


INDEX

INDEX

Citiq Prepaid ............................................................................................................................................................. OBC

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

EBH SA ................................................................................................................................................................................. 7

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

Petroleum Agency South Africa ........................................................................................................................34

Invest Durban.........................................................................................................................................................IFC, 1

Standard Bank...........................................................................................................................................5, 16, 28, 42

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