KwaZulu-Natal Business 2022-23

The 2022/23 edition of KwaZulu-Natal Business is the 14th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on national government’s campaign to encourage private investment in ports. The vital role of the ports of Durban and Richards Bay in the South African economy cannot be understated and putting them in a better position to deal with commodities and cargoes of every sort is clearly in the national interest. A special purpose vehicle is to be created within Transnet to make dealing with private companies less complicated. 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.

The 2022/23 edition of KwaZulu-Natal Business is the 14th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on national government’s campaign to encourage private investment in ports. The vital role of the ports of Durban and Richards Bay in the South African economy cannot be understated and putting them in a better position to deal with commodities and cargoes of every sort is clearly in the national interest. A special purpose vehicle is to be created within Transnet to make dealing with private companies less complicated.
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.


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<strong>2022</strong>/<strong>23</strong> EDITION<br />





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The Durban Chamber o<br />

is the oldest and larges<br />

eThekwini business com<br />

The Durban Chamber d

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important economic<br />

region<br />

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Dube<br />

TradePort<br />

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Shaka<br />

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Airport - 60-<br />

year Master<br />

Plan - driving<br />

growth of<br />

aerotropolis,<br />

or airport<br />

city<br />

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Rated in top 5<br />

‘Quality of Living’<br />

cities in Africa and<br />

Middle East by<br />

Mercer Consulting in<br />

2015<br />

Named one of the<br />

New 7 Wonders Cities<br />

by the Swiss-based<br />

New 7 Wonders<br />

Foundation in 2014<br />

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

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

successful partnerships and investment opportunities so we<br />

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

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

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

innovative business environment and ever evolving<br />

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

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

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Tel: +27 31 311 4227<br />

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

web: invest.durban<br />


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

W: www.durbanchamber.co.za | T: +27 31 335 1000<br />

@DurbanChamber<br />

@DurbanChamber<br />

Durban Chamber of Commerce and Industry NPC<br />




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

is the oldest and largest metropolitan chamber in Africa. As a business-based and<br />

eThekwini business community.<br />

The Durban Chamber does this by:<br />

policy decisions that affect<br />

the interests of business<br />

(labour laws, tax and business<br />

with both private and public sector.<br />

• Offering business support<br />

services and advice (CIPC,<br />

Human Resources/Capital,<br />

relevant to decision-making<br />

process.<br />

more); and<br />





<strong>KwaZulu</strong>-<strong>Natal</strong> <strong>2022</strong>/<strong>23</strong> Edition<br />

Introduction<br />

Foreword 7<br />

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

Special features<br />

Regional overview of <strong>KwaZulu</strong>-<strong>Natal</strong> 8<br />

Stability has been restored after a turbulent 2021 and companies<br />

are looking at investing in increasing capacity. Provincial and<br />

national government are ramping up spending on infrastructure.<br />

Private investments in ports are<br />

gathering speed 14<br />

Upgrades at <strong>KwaZulu</strong>-<strong>Natal</strong>’s two big ports will mean South Africa<br />

is better prepared for the next commodity boom.<br />

Economic sectors<br />

Agriculture 28<br />

Packaging firm expands on increased agricultural production.<br />

Forestry and paper 30<br />

A campaign to plant 10-million trees has begun.<br />

Mining 31<br />

Operations at Richards Bay Minerals have resumed.<br />

Engineering 32<br />

UCL’s expansion included three large projects.<br />

Oil and gas 33<br />

South Africa’s largest crude oil refinery is likely to come<br />

on the market.<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />



The Durban International Convention<br />

Centre (Durban ICC) prides itself on<br />

being leading venue for meetings,<br />

business events, conferences and<br />

exhibitions on the African continent.<br />

However, this is not their own opinion,<br />

but rather the overwhelming feedback<br />

received from their clients who have<br />

voted it in the top 1% of Convention<br />

Centres worldwide, as well as “Africa’s<br />

Leading Meetings and Convention<br />

Centre” no fewer than 17 times!<br />

The Durban ICC is a versatile venue<br />

of enormous dimensions, flexible<br />

enough to meet any need, no matter<br />

how extraordinary. The Centre offers<br />

the largest column-free, multipurpose<br />

event space on the African continent.<br />

International and national conventions,<br />

exhibitions, sporting events, concerts<br />

and special occasions of every kind<br />

can be accommodated. Flexibility and<br />

versatility are key factors in the design<br />

of this state-of-the-art, technologydriven<br />

Centre. The Centre also offers<br />

a range of innovative solutions such<br />

as Live-streaming events, Remotepresentation<br />

events, Hybrid events,<br />

and Video-on-Demand.<br />

The Durban ICC’s highly experienced<br />

and friendly team will ensure that<br />

your event is seamlessly executed<br />

giving you complete peace of mind.<br />

Providing exceptional customer<br />

service remains the heartbeat of the<br />

Durban ICC, striving to ensure that<br />

every delegate who walks through<br />

the five-star facility has a memorable<br />

experience.<br />

Delegates visiting the Centre can<br />

look forward to superb standards of<br />

culinary excellence and hospitality.<br />

As part of the Durban ICC’s gourmet<br />

evolution over the past decades in<br />

the industry, they are completely<br />

reinventing their culinary offering<br />

in order to showcase some of<br />

Durban’s authentic African Cuisines.<br />

Furthermore a wide range of new<br />

innovative packages have been<br />

designed to meet the unique needs<br />

of each target market, at the best<br />

possible rates.<br />

Demonstrating its commitment to<br />

quality, the Durban ICC is five-star<br />

graded by the Tourism Grading<br />

Council of South Africa and maintains<br />

its ISO9001, ISO14001 and ISO22000<br />

certifications ensuring the highest<br />

international standards in Quality<br />

Management, Environmental<br />

Responsibility, Food Safety and Health<br />

and Safety.<br />

The DURBAN ICC offers you first-world<br />

convenience and a proudly African<br />

meetings experience. The Centre is<br />

fully Wi-Fi enabled and connectivity<br />

is complimentary to its delegates and<br />

guests.<br />

Durban ICC Fast Facts<br />

• Located in Durban, known as<br />

South Africa’s entertainment<br />

“playground”.<br />

• Durban International Convention<br />

Centre (Durban ICC) comprised<br />

of the Durban ICC Arena and the<br />

Durban Exhibition Centre.<br />

• Voted “Africa’s Leading Meetings<br />

and Conference Centre” by the<br />

World Travel Awards no fewer<br />

than 17 times and continuously<br />

strives to deliver excellent service<br />

• Largest flat floor, column-free<br />

multi-purpose event space in<br />

Africa.<br />

• Ranked in the world’s Top 15<br />

Convention Centres by the<br />

International Association of<br />

Congress Centres (AIPC).<br />

• The Centre is located 30-minutes<br />

from the King Shaka International<br />

Airport and over 3,600 Hotel<br />

rooms are within a 10-minute walk<br />

of the Centre.

E S T 1 8 5 6<br />

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

is the oldest and largest metropolitan chamber in Africa. As a business-based and<br />

eThekwini business community.<br />

The Durban Chamber does this by:<br />

policy decisions that affect<br />

the interests of business<br />

(labour laws, tax and business<br />

• Offering business support<br />

services and advice (CIPC,<br />

Human Resources/Capital,<br />

more); and<br />

with both private and public sector.<br />

relevant to decision-making<br />

process.<br />


Energy 36<br />

eThekwini plans to sign up independent power producers.<br />

Construction and property 37<br />

R6-billion business and logistics park for Umhlanga.<br />

Water 38<br />

Bulkwater schemes are coming on line.<br />

Tourism 40<br />

Resumed flights augur well for the economy.<br />

ICT 41<br />

Infrastructure has to be rebuilt after severe flooding.<br />

Manufacturing 42<br />

Sappi’s giant plant at Umkomaas is set to grow again.<br />

Education and training 44<br />

New streams are being introduced at schools.<br />

Development finance and SMME support 46<br />

Billion-rand plan to transform the sugar industry will benefit the<br />

SMME sector.<br />

Banking and financial services 48<br />

Financing of infrastructure is becoming a priority.<br />

References<br />

Key sector contents 22<br />

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

rate<br />

r<br />

connectedKZN@mtn.com<br />


<strong>2022</strong>/<strong>23</strong><br />






<strong>2022</strong>/<strong>23</strong> EDITION<br />








Top left then clockwise to the right: Mark Harpour on Unsplash; Mondi;<br />

International Convention Centre; Transnet Port Terminals; Bell Equipment;<br />

Durban, Captureson Photography on Unsplash; rhinos, Kevin Folk on Unsplash.

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

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


Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Tyra Martin<br />

Production: Yonella Ngaba<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Tahlia Wyngaard<br />

Tennyson Naidoo<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Shiko Diala<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2022</strong>/<strong>23</strong> edition of <strong>KwaZulu</strong>-<strong>Natal</strong> <strong>Business</strong> is the 14th issue of<br />

this highly successful publication that, since its launch in 2008,<br />

has established itself as the premier business and investment<br />

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

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

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

government’s campaign to encourage private investment in ports. The vital<br />

role of the ports of Durban and Richards Bay in the South African economy<br />

cannot be understated and putting them in a better position to deal with<br />

commodities and cargoes of every sort is clearly in the national interest. A<br />

special purpose vehicle is to be created within Transnet to make dealing with<br />

private companies less complicated.<br />

The increasing importance of the Oceans Economy to the future of<br />

the provincial and national economy is relevant to any examination of the<br />

economy of <strong>KwaZulu</strong>-<strong>Natal</strong>. This applies as much to trade and ship-repair<br />

as it does to the exciting gas discoveries which have been made off the<br />

coast of Mozambique and South Africa.<br />

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

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

www.kwazulunatalbusiness.co.za. Updated information on <strong>KwaZulu</strong>-<strong>Natal</strong> is<br />

also available through our monthly e-newsletter, which you can subscribe<br />

to online at www.gan.co.za, in addition to our complementary business-tobusiness<br />

titles that cover all nine provinces, our flagship South African <strong>Business</strong><br />

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

launched in 2020. ■<br />

Chris Whales<br />

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


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

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

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

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

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

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

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

lounges, provincial government departments, municipalities<br />

and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

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

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

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

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

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

PHOTO CREDITS | Bosch Holdings; Department of Forestry, Fisheries<br />

and the Environment; Dormac; Dube TradePort; Engie Peakers<br />

Operations; Enterprise iLembe; Hesto Harnesses; Hillside Aluminium;<br />

KZN Department of Education; RBCT; Richards Bay Minerals; SA<br />


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

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

Directors: Clive During, Chris Whales<br />

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

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

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

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

ISSN 1995-1310<br />

Canegrowers Assocation; Sappi; Sapref; The Brickworks; Transnet<br />

National Ports Authority; Qatar Airways; UCL Tetra Pak; Umgeni Water.<br />

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

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

contained in <strong>KwaZulu</strong>-<strong>Natal</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.



Stability has been restored after a turbulent 2021 and companies are looking<br />

at investing in increasing capacity. Provincial and national government are<br />

ramping up spending on infrastructure. The province’s ports are the focus of<br />

programmes designed to encourage private investment.<br />

By John Young<br />

In 2021, citizens and businesses in <strong>KwaZulu</strong>-<strong>Natal</strong><br />

were starting to get used to the disruptions caused<br />

by Covid-19 when in July, a series of riots broke out.<br />

The other province hit by riots was Gauteng.<br />

Thankfully the riots lasted less than a week but,<br />

like Covid-19, they brought tragedy in their wake.<br />

Some have claimed that the riots were linked to<br />

the court case of former President Zuma, being<br />

pursued in various cases linking him to alleged<br />

corruption during his terms of office as president<br />

and deputy president. While it is true that many<br />

of his supporters took to social media to stoke up<br />

violent sentiment, nothing happened at the courts<br />

where Zuma was appearing or at the jail to which<br />

he had been consigned. Foreign truckers were<br />

attacked on the N3 (a recurrence of earlier attacks)<br />

and shops were looted and burnt.<br />

The resilience of <strong>KwaZulu</strong>-<strong>Natal</strong> residents and<br />

business owners was tested. Many insurance claims<br />

have been lodged but some businesses, such as<br />

the packaging business burnt to the ground in the<br />

course of the riots, have closed their doors.<br />

Companies in the logistics and storage sector<br />

were boosted by the move to home shopping that<br />

came with the Covid-induced lockdowns. This is a<br />

trend that had been growing for some time and<br />

that was accelerated by the pandemic.<br />

On the energy front, President Cyril Ramaphosa’s<br />

announcement that private investors could<br />

generate up to 100MW without having to go<br />

through a tangled web of licence procedures was<br />

a boon for the province’s larger companies. The<br />

likes of Sappi and Mondi produce great quantities<br />

of biomass waste and all of the province’s sugar<br />

producers are potentially generators of electricity.<br />

Many of them already are producing power for their<br />

own use, now they can sell it to the grid.<br />

The signing of a long-term contract for energy<br />

supply by Eskom and South32 for its Hillside<br />

Aluminium smelter was another very welcome step<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />



King Shaka International Airport.<br />

in the energy field. The deal expires in 2031.<br />

The first steps in a move by national government<br />

to partner with the private sector in boosting<br />

efficiency at ports were taken in <strong>2022</strong>: deals were<br />

signed at the Port of Durban and at Richards Bay.<br />

A 15-year concession for the loading of grain at<br />

one of Durban’s agricultural terminals was won by<br />

Afgri, one of South Africa’s biggest agricultural firms.<br />

Afgri will deal with the operation and maintenance<br />

of all landside operations, and the deal includes<br />

a similar arrangement at East London. The other<br />

two terminals in Durban are operated by SA Bulk<br />

Terminals and Bidvest Bulk Terminals.<br />

Tourism is a key sector in the <strong>KwaZulu</strong>-<strong>Natal</strong><br />

economy and provides livelihoods to many<br />

thousands of families in urban and rural areas. The<br />

closing of borders brought real hardship to many<br />

areas. The first half of 2019 brought in a total of<br />

R14.4-billion in tourist spending and the year as a<br />

whole delivered an increase of 8% in international<br />

visitor numbers. The newly-created Cruise Ship<br />

Terminal at the Port of Durban was ready to<br />

welcome guests, but it would be at least a year<br />

before cruises could resume.<br />

Investment<br />

Between May 2019 and February 2020, inward<br />

investment commitments to the value of more than<br />

R15-billion were made. These included amounts<br />

pledged in most of the priority sectors identified by<br />

the provincial government, namely agro-processing,<br />

healthcare, manufacturing, renewable energy and<br />

tourism and property development.<br />

Other priority sectors include aloe processing,<br />

bio-ethanol fuel, fish processing and, more broadly,<br />

the Oceans Economy.<br />

In his 2021 State of the Province Address (SOPA),<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Premier Sihle Zikalala announced that<br />

through the two SEZs and investment drives the<br />

province had secured the following projects:<br />

• Coconathi, a R50-million agro-processing factory<br />

specialising in healthcare products, Dube<br />

TradePort<br />

• Ubuhle Towels, a R130-million investment has<br />

created 200 permanent jobs in Richards Bay<br />

• Ndumo Retail Development, a R100-million<br />

investment project in a shopping centre, taxi<br />

rank and service station. The project is expected<br />

to create 400 construction jobs<br />

• Vodacom South Africa, R1-billion 5G network<br />

rollout in Durban. The company also spent<br />

R320-million in 2020/21 on building new longterm<br />

evolution (LTE) base station sites in urban<br />

and rural areas<br />

• Unitrade, a R105-million investment for the<br />

manufacture of Ford Ranger and VW Amarok<br />

components, KwaDukuza<br />

• The Frymax potato chips company, a R380-<br />

million investment, 600 new jobs created in<br />

Verulam<br />

• Goodlife Foods, a R70-million investment<br />

• Hesto Harnesses, a R900-million investment in<br />

support of a big order from Ford Motor Company<br />

Southern Africa which will support 3 300 jobs,<br />

Stanger<br />

These investment projects will produce a total<br />

3 435 permanent jobs. Beside these projects, the<br />

provincial government is working on an investment<br />

pipeline, through the SEZs, of R22-billion.<br />

Special Economic Zones (SEZs)<br />

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

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

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

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

9 KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

Agro-processing of the province’s abundant natural<br />

resources is a major economic sector and the source of<br />

many jobs. Pioneer Food’s Sasko bakery at Shakaskraal<br />

north of Durban is the primary source of bread for<br />

the company in the province, and its distribution hub.<br />

Credit: Enterprise iLembe<br />

Dube TradePort attracted R7-billion between<br />

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

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

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

Development Zone (RBIDZ). Investors include<br />

edible oils manufacturer Wilmar Processing SA,<br />

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

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

R900-million on its chemicals plant.<br />

Milestones have been reached in the plan for<br />

creating a provincial Clothing and Textile SEZ. A<br />

business case has been completed by units within<br />

the provincial government and land at Ezakheni<br />

(Ladysmith) in the uThukela District has been identified<br />

and secured. Dube TradePort will be the SEZ operator<br />

and R780-million in investments has been pledged by<br />

companies keen to relocate to the SEZ.<br />

To spread the benefits of the SEZ, the concept<br />

of “The Textile Belt” will be followed. The corridor<br />

approach will leverage comparative advantages<br />

of various regions in the clothing and textile<br />

value chain. This belt will start from Newcastle<br />

and link Ladysmith, Mooi River, Pietermaritzburg,<br />

Hammarsdale, Durban, Isithebe and the<br />

Dube TradePort to the Richards Bay Industrial<br />

Development Zone.<br />

Infrastructure<br />

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

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

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

capacity in heavy and light manufacturing,<br />

agro-processing and mineral beneficiation, all<br />

of which is supported by South Africa’s two<br />

busiest ports (Richards Bay and Durban), the<br />

country’s most active highway (the N3), a<br />

modern international airport and pipelines<br />

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

the economic powerhouse of the country<br />

around Johannesburg in the interior.<br />

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

south of Durban is one of the province’s most<br />

significant industrial sites as it produces huge<br />

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

staple fibre, which in turn is used in clothing<br />

and textiles. Together with production<br />

volumes from Sappi’s mill in neighbouring<br />

Mpumalanga province, the company is the<br />

world’s largest manufacturer of dissolving<br />

pulp. Mondi is the province’s other global<br />

giant in forestry, paper and packaging.<br />

Toyota and Bell Equipment are dominant<br />

players in the automotive sector.<br />

Oceans Economy<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> province, has a long coastline<br />

that stretches from the Mtamvuna River in the<br />

south to the Isimangaliso Wetland Park in the<br />

north. The province’s contact with the sea has<br />

brought obvious benefits: fishing, fine beaches<br />

enjoyed by millions of tourists and two great<br />

ports. These ports export vast quantities of<br />

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

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

important conduit for imports of all sorts. The<br />

Richards Bay Coal Terminal exports massive<br />

quantities of coal while the Port of Durban is<br />

the busiest port in Africa.<br />

However, planners want to expand the<br />

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

Strategies to grow the Oceans Economy dovetail<br />

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

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

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

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

ship-repair industry would grow exponentially.<br />

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

areas that has been chosen by national<br />

government to be part of Operation Phakisa,<br />

a focused, goal-driven attempt to jump-start<br />

a specific economic sector. Overall, Phakisa<br />

intends creating a million jobs by 2033 and<br />

injecting R177-billion into national GDP.<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />



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

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

that is in line with an “Oceans Economy” approach.<br />

Geography<br />

The mixed topography of the province allows for<br />

varied agriculture, animal husbandry and horticulture.<br />

The lowland area along the Indian Ocean coastline<br />

is made up of subtropical thickets and Afromontane<br />

Forest. High humidity is experienced, especially in<br />

the far north and this is a summer rainfall area. The<br />

centrally-located Midlands is on a grassland plateau<br />

among rolling hills. Temperatures generally get colder<br />

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

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

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

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

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

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

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

Regions<br />

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

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

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

offers diverse opportunities.<br />

Southern region<br />

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

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

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

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

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

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

Durban with the current centrepiece being the<br />

Durban Cruise Terminal. The Container Terminal is<br />

also undergoing an extensive overhaul. Durban’s<br />

conference facilities are well utilised, but many<br />

opportunities still exist in chemicals and industrial<br />

chemicals, food and beverages, infrastructure<br />

development and tourism. Further south, Margate’s<br />

airport and Port Shepstone’s beachfront are assets.<br />

Western region<br />

Also known as the Midlands, this is a fertile<br />

agricultural region which hosts the popular<br />

annual Royal Show. It produces sugar cane, fruit,<br />

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

Pietermaritzburg is the provincial capital and<br />

home to a major aluminium producer along<br />

with several manufacturing concerns, including<br />

textiles, furniture, leather goods and food.<br />

The city has good transport links along the N3<br />

national highway, excellent schools and a lively<br />

arts scene. The Midlands Meander is a popular<br />

tourist destination.<br />

Eastern region<br />

Although most of this area is rural, Richards Bay is<br />

one of the country’s industrial hotspots because<br />

of its coal terminal, port and aluminium smelters.<br />

The Richards Bay Industrial Development<br />

Zone is a major economic node and with the<br />

possibility of a power plant being built, the<br />

RBIDZ could become an energy hub. Mining<br />

is an important sector in this region. The other<br />

major urban centre is Empangeni which has<br />

several educational institutions. The King Shaka<br />

International Airport is adjacent to the Dube<br />

TradePort, a Special Economic Zone (SEZ) which<br />

is attracting investors.<br />

Northern region<br />

The economic powerhouse is Newcastle in the<br />

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

manufacturing are major activities. Some old coal<br />

mines are being reopened by new coal companies<br />

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

for the fuel. Game farms, trout fishing and hiking<br />

are part of an attractive package for tourists, and<br />

Zululand is a popular destination for cultural<br />

experiences. The region is rich in Anglo-Boer<br />

War history which includes battle sites such as<br />

Islandlwana and Rorke’s Drift. ■<br />

The province’s substantial rivers flow from the<br />

Drakensberg mountains to the Indian Ocean.<br />

11 KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

FOCUS<br />

MTN invests in<br />

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

Keeping the province connected, even during times of crisis.<br />

MTN SA is investing<br />

in modernising its<br />

existing network<br />

and is deploying<br />

new network infrastructure across<br />

the <strong>KwaZulu</strong>-<strong>Natal</strong> Province. The<br />

R700-million investment, which<br />

is an addition to the R500-million<br />

invested in 2021, is going toward<br />

MTN’s “Modernisation of Network<br />

South Africa project” (MONZA)<br />

Matthew Khumalo, as well as expanded rural reach,<br />

KZN General Manager 5G expansion and restoration of<br />

Regional Operations vandalised network infrastructure.<br />

The KZN investment forms<br />

part of plans to modernise the entire MTN network,<br />

68% of which has already been completed nationally.<br />

An additional 1 350 sites are still to be finalised across<br />

South Africa by the end of <strong>2022</strong>. The project will<br />

increase network coverage and improve throughputs<br />

and customer experience in the region. Previously<br />

unconnected areas in the province will have a<br />

broadband platform for the first time.<br />

MTN has over 1 400 active 5G sites across the<br />

country. The extension of MTN’s 5G connectivity in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has seen over 100 live 5G sites added<br />

and more are planned for <strong>2022</strong>.<br />

A vital component of the deployment of 5G is<br />

the emphasis on previously underserved areas. The<br />

company is not only deploying 5G in ultra-urban<br />

areas. In recent months, MTN has rolled out 5G in<br />

areas such as Chatsworth and uMhlanga. Urban areas<br />

such as Pietermaritzburg and Durban central have<br />

also received attention.<br />

devastating consequences on business operations and<br />

in emergencies. MTN urges community members across<br />

the country to continue being vigilant and report any<br />

incident of vandalism and theft at network towers.<br />

In 2020 the company began its optimisation and<br />

resilience programme on backup power and security.<br />

The programme is aimed at stabilising the network.<br />

Some of the actions taken include beefing up security<br />

significantly, hiring the private security company<br />

Bidvest, installing CCTV and the introduction of cement<br />

and steel safehouse carriages.<br />

The heavy rains in <strong>KwaZulu</strong>-<strong>Natal</strong> caused<br />

widespread infrastructure damage and power outages<br />

resulting in over 500 MTN sites going down in the region.<br />

Due to the serious nature of the outages, MTN activated<br />

contingency plans for site restoration. MTN also donated<br />

a total of R1-million to the flood-relief efforts. To assist<br />

families and friends to keep in touch during this trying<br />

time MTN also provided a free SMS bundle, for 50 SMSs<br />

valid for three days, to all <strong>KwaZulu</strong>-<strong>Natal</strong> customers.<br />

We rerouted traffic and put 190 generators at<br />

numerous sites to bypass this part of the fibre. This<br />

would have impacted over 200 000 customers.<br />

MTN also enabled functionality on the mobile<br />

payment app, MoMo, which allowed users to donate<br />

to the flood-relief efforts. The funds go directly to Gift<br />

of the Givers in support of their efforts in the region. ■<br />

Staying connected<br />

Network towers keep customers connected. If they<br />

don’t work, the network doesn’t work and South<br />

Africans will have no network signal. This can have<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

MTN – trusted by businesses<br />

and government<br />

FOCUS<br />

Helping students and healthcare workers connect to improve service delivery.<br />

As an official mobile provider to SA<br />

government, MTN <strong>Business</strong> has been key<br />

in driving several government initiatives.<br />

As South Africa’s and Durban’s best network,<br />

more businesses and government entities<br />

are showing an interest in our services.<br />

Through MTN <strong>Business</strong>, we have been<br />

connecting more enterprise clients, particularly<br />

government entities, thanks to the National<br />

Treasury’s RT15.<br />

In 2021, the National Treasury RT15 bid-evaluation<br />

committee appointed MTN SA as a service provider to<br />

government, through its new mobile communication<br />

services contract, known as RT15-2021.<br />

The RT15-2021 transversal contract allows for<br />

all entities of state to utilise the contract for mobile<br />

communication services, which will further assist<br />

with cost containment.<br />

The scale of the government’s requirements has<br />

allowed MTN to develop industry-leading systems<br />

and innovative pricing and products that will not<br />

only add value to the state but will also significantly<br />

improve on existing mobile telecommunications<br />

service delivery. This also allows for a high degree of<br />

control of spending by the individual entities.<br />

Education and health<br />

MTN <strong>Business</strong>’s cost-effective and<br />

quality solutions have enabled remote<br />

learning for thousands of South African<br />

students during the lockdown.<br />

MTN <strong>Business</strong> has also aided state<br />

employees to collect revenue quickly<br />

and effectively, courtesy of the leading<br />

technology provider’s extensive range<br />

of digital solutions and connectivity<br />

products. On revenue collection, the<br />

state is enabled with the necessary<br />

technology tools to improve the lives of South<br />

Africans through provision of essential services.<br />

Another area of importance is strong health<br />

services in South Africa and MTN <strong>Business</strong> has<br />

played a key role in assisting this sector.<br />

Access to uncapped data is not only<br />

available to healthcare workers but is also<br />

available to other state departments that sign<br />

up with MTN <strong>Business</strong>.<br />

Doing more<br />

MTN <strong>Business</strong> is committed to doing even<br />

more to help government improve the lives of<br />

South Africans.<br />

There are big plans to partner with more state<br />

entities and departments to help them improve<br />

their operations with cutting-edge and robust<br />

digital solutions.<br />

This is because South Africans deserve the<br />

benefits of a modern connected life and MTN<br />

<strong>Business</strong> is proud to be working with the government<br />

to deliver this.<br />

13<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

FOCUS<br />

Two unique offerings<br />

As part of its bid to empower the nation, MTN<br />

<strong>Business</strong> has developed two unique offerings that<br />

are available to qualifying state employees to enjoy:<br />

• Uncapped data with no Fair Usage Policy (FUP)<br />

• Uncapped Closed User Group (CUG) minutes<br />

• Uncapped Closed User Group (CUG) SMSs<br />

• Voice minutes to call other networks<br />

• Variety of smartphones<br />

• Enterprise Sharing is a customisable and scalable<br />

solution that lets state institutions size their<br />

shared voice, data, Closed User Group voice<br />

usage and SMS bundles at cost-effective rates.<br />

Key benefits of MTN Enterprise Sharing include:<br />

Standard billing: removes the need for complex<br />

review processes<br />

Improved scalability: additional users can be<br />

added at no extra cost<br />

Top-up: users can use their own money once their<br />

allocation is finished<br />

All-in-one: personal and business usage happens<br />

on the same SIM and device<br />

Separate limits: if you max out your limit in one<br />

area, it does not affect your other resources<br />

Simple invoicing: each department will receive a<br />

single invoice that covers all employees<br />

Enterprise Sharing also comes in three forms:<br />

Services-only, device-only and both services and device.<br />

<strong>Business</strong> All Day<br />

The second solution is called <strong>Business</strong> All Day,<br />

and lets users pay for the resources they use on a<br />

monthly basis. This package is based on flat rates<br />

that are set for voice, data, SMS and Closed User<br />

Group voice usage.<br />

Government entities can also configure spend<br />

limits for each user and can monitor and manage<br />

these at an institutional level. Users get access to a<br />

selection of services on demand and can monitor<br />

their own spending limits through alerts.<br />

Both of these offerings will involve MTN<br />

<strong>Business</strong> splitting the state employee’s SIM card into<br />

an enterprise wallet and a personal wallet, with the<br />

state institution allocating resources and managing<br />

the enterprise wallet.<br />

The personal wallet is then the responsibility of<br />

the user and is what they will use for their non-work<br />

mobile costs.<br />

These products are available through a<br />

standardised billing structure that is scalable and<br />

simple to manage. ■<br />

MTN Enterprise Sharing can provide each<br />

department up to 47% more value for the same<br />

spend, saving state entities a lot on communication<br />

spend while still striving to enable service delivery<br />

to all citizens.<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


FOCUS<br />

Helping small business<br />

get connected<br />

MTN’s new Flagship store at Gatemax allows SMME<br />

owners to experience the latest in technology.<br />

Customers can get information and see demonstrations<br />

of a wide range of 5G services in-store:<br />

• Cloud solutions<br />

• Managed networks<br />

• Unified communications<br />

• Security as a service<br />

• Enterprise mobility<br />

• Software as a service<br />

• Mobile solutions<br />

• IOT<br />

Two dynamic new stores have been added to<br />

MTN’s <strong>KwaZulu</strong>-<strong>Natal</strong> range, offering state-ofthe-art<br />

innovation and services at the Pavilion<br />

Shopping Centre and Gatemax in Umhlanga.<br />

Umhlanga<br />

MTN opened the doors to its flagship Enterprise <strong>Business</strong><br />

Unit (EBU) store in Gatemax on 1 April <strong>2022</strong>. This MTN<br />

store is dedicated to SMMEs, where both new and<br />

existing clients come to experience a range of ICT<br />

solutions to meet their business and personal needs.<br />

The first of its kind in South Africa, this store boasts<br />

solution stations where our enterprise and consumer<br />

clientele can interact with our latest products and services.<br />

SMMEs can book and utilise any of the available<br />

meeting rooms or hot desk workstations should they<br />

require a venue for a meeting. This provides an attractive<br />

solution to alleviate some of the impact on business<br />

operations during load-shedding.<br />

Experiencing Centre<br />

Our aim is for this store to be an Experiencing<br />

Centre. It will showcase MTN’s latest products and<br />

services with live demo units for both Enterprise and<br />

Consumer clientele.<br />

If customers require a venue for a meeting, we<br />

encourage them to have their meetings at the store so our<br />

customers (or potential customers) can experience our<br />

products. You can contact the store to book a boardroom.<br />

This idea of experiencing the product will give added<br />

value in that our Enterprise customers will be able to<br />

experience our products before purchasing. It will also<br />

serve as a learning platform to new solutions that we<br />

have on offer, that could add value to their business.<br />

Consumer customers<br />

The store will still have all the type of service a<br />

consumer customer has come to expect. There will be<br />

dedicated counter spaces for consumers and they will<br />

receive the same service they would at any other MTN<br />

store. We have enhanced the consumer experience by<br />

adding a dedicated counter for our Fintech solution,<br />

MoMo, in the store.<br />

The sales and distribution team have done<br />

outstanding work on this store, and MTN is looking<br />

forward to them rolling out this experience to the rest<br />

of the regions. If you are ever in Umhlanga, stop by this<br />

masterpiece and enjoy the experience. ■<br />

15<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

Leading digital solutions<br />

for Africa’s progress<br />

Ambition 2025 underpins MTN’s new strategy to expand<br />

across many platforms and drive growth across the continent.<br />

MTN has, over the years, been connecting millions of<br />

South Africans. Currently, MTN shares the benefits of<br />

a modern connected life with 33-million customers<br />

across South Africa.<br />

Our “Ambition 2025: Leading digital solutions for<br />

Africa’s progress” is driving accelerated growth and<br />

faster deleveraging, positioning MTN for greater<br />

relevance to 2025.<br />

Our brand refreshed is inspired by our new strategy,<br />

Ambition 2025. MTN is ushering in a new look that is<br />

aligned to our evolution from a telecommunications<br />

company to a technology company underpinned<br />

by one simple, consistent, yet striking brand.<br />

As a platform business we build digital platforms<br />

that enable Africa’s progress across the telecom,<br />

fintech, fibre-data, API and content and<br />

messaging ecosystem.<br />

The new brand identity is modern, simple,<br />

bold and digitally dynamic. It kicks off with a<br />

provocative and simple question, “What are we<br />

doing today?”<br />

With a clear and concise brand strategy that<br />

Opportunity + Energy = Progress, MTN understands<br />

that to truly unlock the full benefits and potential of<br />

the digital world people require a combination of<br />

drive, progressive thinking and the right tools.

Bill<br />

Thrive with<br />

productivity<br />

that is<br />

always on<br />

MTN <strong>Business</strong> Work from home solutions<br />

Doing works everywhere—thanks to a range of MTN <strong>Business</strong> hybrid connectivity<br />

solutions designed to reduce the cost of remote working and to ensure team connectivity.<br />

Build your bundle with any of our offerings today<br />

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So. What are we doing today?<br />

Call 087 743 3718 Visit mtnbusiness.co.za Email getconnectedKZN@mtn.com


Private investments in ports<br />

are gathering speed<br />

Upgrades at <strong>KwaZulu</strong>-<strong>Natal</strong>’s two big ports will mean South Africa is better<br />

prepared for the next commodity boom.<br />

Exports from the Hillside Aluminium smelter keep cranes busy on the docks. Credit: Hillside Aluminium<br />

A<br />

sharp spike in commodity prices in 2021<br />

meant that the South African government<br />

collected R120-billion more in tax<br />

revenue than it had thought it would.<br />

But it could have been much more.<br />

The country’s ports are not as efficient as<br />

they might be, and to address this the National<br />

Department of Public Enterprises has announced<br />

a plan to bring private investors into port and<br />

logistics operations to a greater extent. Opening<br />

third-party access to the country’s freight rail<br />

network is part of the same plan.<br />

Transnet National Ports Authority (TNPA) is<br />

on a path to become an independent subsidiary<br />

of the state entity Transnet. This will enable it to<br />

partner more efficiently with private companies.<br />

Plans have been presented for turning the<br />

Port of Durban, already a large and busy harbour,<br />

into a “super terminal” that would deal with more<br />

volumes of cargo than any other harbour in Africa.<br />

Private investors are being encouraged<br />

to investment an amount of R100-billion into<br />

the port in the next decade. In early <strong>2022</strong>, two<br />

companies stepped up.<br />

Dormac Marine Engineering has renewed its<br />

leases and is undertaking investment in expanding<br />

infrastructure its machine shops and cranes. This<br />

follows a R400-million investment in a new floating<br />

dock which has a lifting capacity of 8 500 tons.<br />

Dormac employs 136 employees and the<br />

rental paid for the company’s facilities contribute<br />

significantly to Transnet’s income and to the economy<br />

of the eThekwini Metropolitan Municipality.<br />

A new liquid bulk terminal at the Maydon Wharf 6<br />

in the Port of Durban will be developed and operated<br />

by Mnambithi Terminals. The investment is worth<br />

R1.5-billion and will create more than 1 500 temporary<br />

direct and other indirect job opportunities.<br />

A $26-million chemical tanker forms part of the<br />

investment. The vessel is the first such vessel to be<br />

acquired by a South African company and will be<br />

flagged locally.<br />

Also at Durban, TNPA and the <strong>KwaZulu</strong> Cruise<br />

Terminal (KCT) consortium – in which MSC Cruises<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />



is a partner alongside empowered investment<br />

entity Africa Armada Consortium – the new R200-<br />

million Cruise Terminal Facility is functioning.<br />

In Richards Bay, home to the Richards Bay Coal<br />

Terminal which exports most of the country’s<br />

coal, Hillside Aluminium, the largest aluminium<br />

smelter in the southern hemisphere, announced<br />

in early <strong>2022</strong> that it would renew existing leases<br />

in the Port of Richards Bay, benefiting Transnet<br />

and the municipality with a revenue stream of<br />

R338-million and local procurement spend in the<br />

amount of R2-billion a year.<br />

Transnet and the International Finance<br />

Corporation (IFC) are undertaking processes to<br />

conduct a feasibility study that will determine<br />

the viability of a natural gas hub in Richards Bay.<br />

The two bodies have agreed a commitment of<br />

R28-million as part of the cost-sharing agreement<br />

towards the liquefied natural gas (LNG) storage<br />

and regasification terminal to be established at<br />

the Port of Richards Bay by 2024.<br />

Existing infrastructure<br />

The focus on new investment in the ports at<br />

Durban and Richards Bay also serves as a reminder<br />

of the other strengths of <strong>KwaZulu</strong>-<strong>Natal</strong> as a<br />

logistics hub, with the King Shaka International<br />

Airport and associated Dube TradePort also<br />

playing key roles. The N3 highway linking Durban<br />

with the Highveld and the industrial hub of South<br />

Africa is the country’s busiest road.<br />

Durban harbour is South Africa’s premier<br />

multi-cargo port and is Africa’s busiest,<br />

handling in excess of 80-million tons of cargo<br />

per annum (StatsSA). The Port of Durban is a<br />

key hub in the transport and logistics chain,<br />

with 60% of all imports and exports passing<br />

through it.<br />

The Port of Durban exports a broad range<br />

of products, including automotive vehicles. In<br />

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

vehicle exports topped 350 000, Durban’s Car<br />

Terminal boasted a record of putting more than<br />

500 000 fully-built-up units (FBUs) through the<br />

port. The figure includes FBUs that are not motor<br />

vehicles and includes vehicle imports. Toyota’s<br />

popular Fortuner is exported at a rate of about<br />

150 per month.<br />

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

of specialised facilities. Several projects are<br />

underway to increase capacity. Transnet National<br />

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

are combining to upgrade infrastructure and<br />

buy new equipment to improve efficiencies at<br />

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

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

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

Terminal (DCT).<br />

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

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

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

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

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

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

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

job. A large drydock project created direct jobs<br />

for 29 skilled employees.<br />

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

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

Durban Cruise Terminal and started operating<br />

in 2019, shortly before the Covid-19 epidemic<br />

temporarily put an end to cruises.<br />

The cruise terminal is an important step<br />

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

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

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

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

Cruises SA and Africa Armada Consortium, KCT<br />

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

construction‚ maintenance and operation of the<br />

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

The cruise terminal covers 32 000m² and<br />

caters for two ships and at least 5 000 passengers.<br />

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

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

The number of annual passengers is expected<br />

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

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

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

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

market which comprises about 15.4-million<br />

passengers annually.<br />

The Port of Richards Bay, 160km to the<br />

north-east of Durban and 465km south of the<br />

Mozambican capital of Maputo, handles more<br />

than 80-million tons of bulk cargo every year.<br />

19<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

The deepwater port at Richards Bay handles a variety of cargo and hosts the Richard Bay Coal Terminal. Credit: TNPA<br />

Richards Bay is a deepwater port. Among its 13<br />

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

minerals and break-bulk cargo.<br />

The Richards Bay Coal Terminal (RBCT), with<br />

capacity of 91-million tons per year, is South Africa’s<br />

primary portal for the export of coal. In 2020, 65<br />

collieries delivered coal to RBCT. The quay of the<br />

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

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

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

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

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

In 2020, 92% of South African coal went to<br />

Asia, with India and Pakistan being the biggest<br />

importers. Africa imported less than the previous<br />

year and made up a total of 5% of volumes while<br />

3% went to Europe.<br />

Among the exporters which use RBCT are<br />

ARM Coal, Exxaro Coal, Glencore Operations<br />

South Africa, Kangra Coal, Koornfontein Mines,<br />

Mbokodo, Optimum Coal Terminal, Sasol Mining,<br />

South African Coal Mine Holdings, South Dunes<br />

Coal Terminal, Seriti, Thungela, Tumelo Coal<br />

Mines and Umcebo Mining. Several junior miners<br />

also have rights.<br />

TNPA has approved in principle the<br />

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

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

onshore infrastructure and do some dredging<br />

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

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

handle large and ultra-large cargo vessels.<br />

The authority that runs the ports at Durban<br />

and Richards Bay, TNPA, and Transnet Freight<br />

Rail have been working with the private sector<br />

to try to improve efficiencies at both ports.<br />

Backlogs at Durban in particular have proved<br />

frustrating for exporters. Logistics company<br />

OneLogix has opened its own distribution hub<br />

in Umlaas because of crowded conditions and<br />

slow loading.<br />

The other entity involved in the loading and<br />

unloading equation, Transnet Port Terminals<br />

(TPT), is investing R2-billion in new equipment<br />

to improve coordination between truckers, tax<br />

authorities, port staff and ships’ captains.<br />

Dube TradePort has facilities devoted to<br />

logistics, warehousing and export support.<br />

Proximity to the airport is vital and freight<br />

volumes are growing. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Offering a wide range of<br />

services to boost small business<br />

Cedric Mnguni, Provincial Manager for Seda, reports on the opportunities for<br />

small business in <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />


What is the mandate of Seda <strong>KwaZulu</strong>-<strong>Natal</strong>?<br />

The Small Enterprise Development Agency (Seda) is an agency of<br />

the Department of Small <strong>Business</strong> Development. It is mandated to<br />

implement government’s small business strategy; design and implement<br />

a standardised delivery network for small enterprise development and<br />

integrate government-funded small enterprise support agencies.<br />

Seda’s mission is to develop, support and promote small enterprises,<br />

ensuring their growth and sustainability in coordination and<br />

partnership with various role-players, including global partners, who<br />

make international best practices available to local entrepreneurs.<br />

Cedric Mnguni, Provincial<br />

Manager<br />


Cedric Mnguni has degrees in<br />

Electrical Engineering (Wits) and<br />

<strong>Business</strong> Management (Durban<br />

University of Technology) and a postgraduate<br />

diploma in management<br />

from the University of <strong>KwaZulu</strong>-<strong>Natal</strong>.<br />

He studied production management<br />

in Japan on a JICA bursary. Prior to<br />

working at Seda, Cedric was active<br />

in the fast-moving consumer goods<br />

(FMCG) environment, where he held<br />

management positions at Sasol<br />

and National Sorghum Breweries.<br />

His passion lies in packaging small<br />

enterprise development programmes.<br />

Where are your regional branches located?<br />

eThekwini, Port Shepstone, Richards Bay, Ixopo, Pietermaritzburg,<br />

Ladysmith and Newcastle.<br />

Are there particular economic sectors in which you specialise?<br />

Seda offers non-financial assistance to all forms of small businesses and<br />

in all sectors. These include manufacturing, ICT, agriculture and agroprocessing,<br />

tourism, textiles and clothing, health and wellness, arts and<br />

crafts and various other sectors. Our main priority target groups are<br />

women- and youth-owned businesses and in particular, township- and<br />

rural-based small businesses.<br />

What are the major challenges that small businesses face in<br />

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

Small business in <strong>KwaZulu</strong>-<strong>Natal</strong> have been adversely affected by the<br />

outbreak of Covid-19 and the restrictions that were introduced which<br />

hampered their sales revenue and ultimately their growth. The July 2021<br />

unrest dealt small businesses a huge blow and the recent floods in April<br />

had a devastating impact on small businesses. In all these challenges,<br />

Seda has responded with interventions and assistance in trying to help<br />

the SMMEs recover and rebuild their businesses.<br />

Where are the best opportunities in KZN?<br />

Durban remains the economic powerhouse in the province and its<br />

geographical location enables many sectors to flourish. This includes<br />

manufacturing, logistics, tourism, wholesale and retail and ICT. Richards<br />

Bay continues to expand and it is developing in the mining and<br />

production sector. The province is also very rich in agriculture.<br />

What is Seda doing to encourage business competitiveness and viability?<br />

Seda offers a wide range of services including business diagnostics,<br />

information dissemination and training. ■

FOCUS<br />

Fashion business turnover increased<br />

nearly 100% after focussed interventions<br />

Seda helped fashion designer Lindiwe Makhoba take her<br />

Colenso-based business to another level.<br />

Fashion design business Unalisa was<br />

established and registered by Lindiwe<br />

Makhoba in 2016. The business operates<br />

from the founder’s home and is located in<br />

Narrow Lane in Colenso in the uThukela District.<br />

Lindiwe is a self-taught designer who<br />

provides beauty and fashion products. As the<br />

entrepreneur who started the business, Lindiwe<br />

aimed from the beginning to serve customers<br />

with simple, elegant and stylish fashion.<br />

The fashion-designing idea came about<br />

while Lindiwe was studying in Durban. She<br />

would often do fashion consulting and offer<br />

advice to friends and fellow students. The next<br />

step was to establish relationships with other<br />

small sewing businesses in Tsakane to do the<br />

sewing after the design phase.<br />

Unalisa has been represented at various<br />

trade fairs in <strong>KwaZulu</strong>-<strong>Natal</strong> and in Mpumalanga<br />

since it was established.<br />

As part of the business idea was to offer<br />

beauty products to her customers, Lindiwe<br />

signed up for training in perfume and lotion<br />

manufacturing. After this training, these<br />

products were added to Unalisa’s offering to<br />

the market.<br />

Intervention and solutions<br />

The business was assisted with access to the<br />

Royal Show in Pietermaritzburg (Trade Exhibition)<br />

for more exposure to the market.<br />

In May 2021 Unalisa (Pty) Ltd received<br />

funding of R93 000 from Sefa and this was used<br />

to purchase five pieces of industrial sewing<br />

equipment and two over-lockers.<br />

Seda’s interventions benefitted the client in<br />

the following ways:<br />

• The number of employees doubled from two<br />

to four.<br />

• The Sefa funding came through to boost the<br />

business.<br />

• Annual turnover increased by 98%.<br />

Through the trade exhibition the following<br />

improvements were noted:<br />

• Unalisa was noted by TIKZN and the business<br />

was later assisted to exhibit at the London<br />

Fashion Week.<br />

• A contract was secured to supply Superbalist,<br />

an online shop, with designer clothing.<br />

Challenges<br />

An assessment of the business conducted by<br />

Seda revealed the following challenges facing<br />

the business:<br />

• Lack of business exposure, marketing<br />

• Lack of finance to purchase equipment<br />

“I am very delighted about the help I got from Seda and wish other businesses<br />

could be helped like I was.”<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


FOCUS<br />

An interactive website propelled a<br />

tourism business to success<br />

PSN Travel Frenzy gained access to multiple markets<br />

after Seda gave advice.<br />

PSN Travel Frenzy is a black-, female-owned<br />

business established and registered in<br />

2017. It is currently run by the youthful<br />

owner, Pretty Ngubane, and is based at<br />

No 86 Ceramic Curve, Unit 7, Alton, Richards Bay.<br />

The business provides travel management<br />

services (local and international), tourism<br />

marketing for township-based hospitality<br />

establishments, tour operator services and events<br />

management. Its focus is on historical, industrial,<br />

cultural heritage and township tourism.<br />

The business works hand-in-hand with<br />

prominent events management companies,<br />

game reserves and hospitality establishments in<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, Gauteng and Limpopo in order to<br />

gain a sustainable market and promote its brand.<br />

It is affiliated to the Umhlathuze Community<br />

Tourism Organisation and Tourism <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> to have access to industry-related market<br />

information, compliance information, advocacy<br />

and marketing platforms, as well as continuous<br />

training and development.<br />

Challenges<br />

PSN Travel Frenzy was initially assisted by<br />

the uThungulu branch of Seda with the first<br />

intervention in September 2019 through a trade<br />

exhibition. An assessment was conducted and it<br />

was found that the business needed assistance<br />

with access to markets. There was limited exposure<br />

of the business to customers and no platform for<br />

customers to access information that could be<br />

used to improve its base. The business also had<br />

very limited marketing material to put into effect<br />

the marketing strategy it had adopted.<br />

Interventions and solutions<br />

Seda recommended e-marketing through<br />

website development. The website was designed<br />

and developed to have a responsive and<br />

mobile-friendly eight-page website, allowing<br />

tour-package bookings (including booking<br />

forms, automated responses and a secure<br />

online paygate), flight bookings, car rentals<br />

and accommodation. The digital platform was<br />

developed for the client to tap into the national<br />

and international markets.<br />

Seda’s interventions benefitted the client in the<br />

following ways:<br />

• Revenue increased by 109%. This was as a result<br />

of online presence which allowed accommodation<br />

establishments to secure shuttle as well as<br />

car-hire services offered by the client.<br />

• The number of employees remained at two<br />

(including a tourism intern).<br />

“The intervention is assisting a lot in terms of generating leads and I can interact<br />

directly with customers while they are busy viewing the website.”<br />

<strong>23</strong> KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

FOCUS<br />

Kerry opens largest and most<br />

advanced taste facility in Africa<br />

New Durban facility will produce sustainable nutrition<br />

solutions for consumers across the continent.<br />

Deputy Minister Nomalungelo Gina and the <strong>KwaZulu</strong>-<strong>Natal</strong> MEC for Economic Development,<br />

Tourism and Environmental Affairs, Ravi Pillay, join the Irish Ambassador, Fionnuala Gilsenan,<br />

and Kerry Foods executives at the official opening of the Kerry Foods plant based in Hammarsdale<br />

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

Kerry, the world’s leading taste and<br />

nutrition company, officially opened<br />

the largest and most advanced taste<br />

manufacturing facility on the African<br />

continent on Tuesday, 10 May <strong>2022</strong>. The new<br />

R650-million facility is located in Hammarsdale,<br />

Durban, and will produce sustainable nutrition<br />

solutions that will be consumed across the<br />

African continent.<br />

The official opening was attended by Deputy<br />

Minister of Trade, Industry and Competition (DTIC),<br />

Nomalungelo Gina, <strong>KwaZulu</strong>-<strong>Natal</strong> Economic<br />

Development, Tourism and Environmental Affairs MEC,<br />

Ravi Pillay, and Ambassador of Ireland to the Republic<br />

of South Africa, Her Excellency Fionnuala Gilsenan,<br />

plus eThekwini Municipality’s Executive Committee<br />

Member and Chairperson of the Governance<br />

Committee, Councillor Nkosenhle Madlala.<br />

The 10 000m2 facility is one of the company’s most<br />

environmentally efficient manufacturing sites with<br />

numerous sustainability features including low energy<br />

usage equipment, solar power generation to reduce<br />

consumption from the local grid, waste heat capture<br />

and efficient water capture, reuse and reduction.<br />

Commenting on the opening, Edmond<br />

Scanlon, CEO Kerry Group, said, “The opening of<br />

the facility in Hammarsdale is a significant step<br />

forward in helping to realise our vision of creating<br />

a world of sustainable nutrition. For 50 years, Kerry<br />

has focused on meeting local consumer needs<br />

grounded in great taste, one of the most important<br />

criteria in any food or beverage. Our suite of worldleading<br />

technologies combined with our expertise<br />

and now this state-of-the-art manufacturing<br />

facility ensures that we can continue to work with<br />

our customers to produce great-tasting, nutritious<br />

products that are respectful of our planet.”<br />

The project is recognised as a key strategic<br />

investment in the Durban region and within South<br />

Africa’s food manufacturing industry. It has been<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


FOCUS<br />

included as part of the South African presidential<br />

investment drive to stimulate sustainable,<br />

equitable and inclusive growth as the foundation<br />

for socio-economic transformation in the country.<br />

“As the DTIC, we are excited about this<br />

investment because it aligns very well with our<br />

reimagined industrial strategy. As a department,<br />

we undertook to support improved industrial<br />

performance through localisation, dynamism and<br />

the competitiveness of local companies,” said Gina.<br />

“Our economic vision is to lift the rate of inclusive<br />

economic growth and investments such as this<br />

will assist us to achieve these objectives.”<br />

Invest Durban together with other spheres<br />

of government and organised business bodies<br />

played key roles in positioning the region as an<br />

attractive Metro destination for high-value-add,<br />

export-oriented production.<br />

The eThekwini Metropolitan Municipality<br />

declared itself pleased with these efforts for and<br />

by a global firm like Kerry Foods. The Kerry Group’s<br />

first enquiries involved teams from Invest Durban<br />

directly and the council and its agency have both<br />

been intimately involved in all aspects of building<br />

construction, local supplier engagement, local<br />

finance arrangements and tax and customs support<br />

through to the final factory launch. Invest Durban<br />

will continue to work with Kerry Foods as part of the<br />

City’s Key Investor Aftercare Programme.<br />

Kerry is also expanding its Development<br />

and Application Centre in Nairobi, Kenya, to<br />

further support customers in East Africa and the<br />

development of sustainable food processing<br />

for the continent. Paul Hewitt, Vice President,<br />

Sub Saharan Africa Kerry Group said, “Kerry<br />

has had a presence in South Africa since 2011<br />

and our success has been based on our ability<br />

to deliver truly authentic African taste by<br />

identifying traditional food and flavours and<br />

reimagining it into today’s modern context.<br />

More than understanding consumer taste, we<br />

are committed to predicting global and regional<br />

trends and innovating with our customers to<br />

lead the industry towards the next generation<br />

of sustainable African food and nutrition.<br />

South Africa is in a unique position to service<br />

East, Central as well as West Africa and we look<br />

forward to working with food and beverage<br />

companies to create products that will be<br />

enjoyed across the continent.”<br />

With Kerry’s innovation expertise, solutions<br />

portfolio and sustainability commitments,<br />

the company ultimately aims to decrease<br />

the environmental and social impacts of the<br />

food industry value chain so that consumers<br />

everywhere can make better, healthier choices<br />

and leave a better world for future generations. ■<br />

About Kerry Group<br />

Kerry is the world’s leading taste and nutrition<br />

partner for the food, beverage and pharmaceutical<br />

markets. We innovate with our customers to create<br />

great-tasting products with improved nutrition<br />

and functionality, while ensuring better impact<br />

for the planet. Our leading consumer insights,<br />

global RD&A team of more than 1 000 food<br />

scientists and extensive global footprint enable us<br />

to solve our customers’ complex challenges with<br />

differentiated solutions. At Kerry, we are driven to<br />

be our customers’ most valued partner, creating a<br />

world of sustainable nutrition, and will reach over<br />

two-billion consumers with sustainable nutrition<br />

solutions by 2030. For more information, visit<br />

http://www.kerrygroup.com<br />

25<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>


Overviews of the main economic<br />

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

Agriculture 28<br />

Forestry and paper 30<br />

Mining 31<br />

Engineering 32<br />

Oil and gas 33<br />

Energy 36<br />

Construction and property 37<br />

Water 38<br />

Tourism 40<br />

ICT 41<br />

Manufacturing 42<br />

Education and training 44<br />

Development finance and SMME support 46<br />

Banking and financial services 48<br />

Feasibility studies are underway on constructing a plant to produce furfural at Sappi’s already large Saiccor Mill at<br />

Umkomaas. The pilot plant will be erected in the course of <strong>2022</strong>. Sappi’s two South African mills and its US plant are<br />

responsible for the company being the world’s largest manufacturer of dissolving pulp. The product is used in a wide<br />

range of consumer products, especially for viscose staple fibre (VSF), which is used in clothing and textiles. Credit: SAPPI


Agriculture<br />

Packaging firm expands on increased agricultural production.<br />

The decision by processing and packaging company<br />

Tetra Pak to spend R500-million on expanding capacity<br />

at its packaging material plant in Pinetown indicates an<br />

uptick in agricultural production.<br />

The new plant allows the company to increase its local content<br />

to 80% and to make the Pinetown plant a production hub for the<br />

region. Among the company’s clients are dairy companies such as<br />

Clover and Woodlands Dairy which package milk for major retailers.<br />

The Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> has announced<br />

that nurseries are to be the focus of targeted development: the<br />

Makhathini Nursery will be brought to full operational status during<br />

<strong>2022</strong>, and two new large nurseries are to be built at Cedara and<br />

Dundee. These nurseries will produce varieties of seedlings for<br />

distribution to small-scale farmers.<br />

The Department of Agriculture and Rural Development (DARD)<br />

has been working with the Tembe Traditional Council to bring<br />

a marula-processing plant near Manguzi in the municipality of<br />

Umhlabuyalingana into production. There are an estimated twomillion<br />

fruit-bearing trees in <strong>KwaZulu</strong>-<strong>Natal</strong>, and DARD estimates that<br />

they have the potential to create 1 000 seasonal fruit-harvesting jobs.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> is South Africa’s major sugar-producing province.<br />

A start has been made on tackling the many challenges faced by<br />

the sugar industry: in 2020 the Sugarcane Value Chain Master Plan<br />

2030 was signed by two national government ministers and various<br />

sector participants. Among the steps to be taken include diversifying<br />

revenue streams and an agreement by users and retailers to buy<br />

more South African sugar. Imports have a devastating impact on the<br />

local industry.<br />

Two mills have recently closed, the Umzimkulu mill run by Illovo<br />

Sugar and Tongaat Hulett’s Darnall mill. This will put additional<br />

pressure on the country’s remaining 12 mills.<br />

Neither of the Big Two companies relies exclusively on South<br />

African sugar earnings: Tongaat Hulett has a big property portfolio<br />

and Illovo draws most of its profit from operations elsewhere in<br />

Africa. Diversification is vital for the future of sugar producers and<br />

power generation will be an important part of that.<br />

Tongaat Hulett continues to search for ways to reduce its huge<br />

debt. Shareholders were faced with tough choices in 2021 and <strong>2022</strong><br />

as what the Financial Times called “an opportunistic new investor”,<br />

Magister Investments, made a play for the group.<br />

An important part of the transformation of the sugar industry<br />

involves supporting small-scale farmers. Of the 10 443 farmers who<br />


New nurseries will supply<br />

high-quality seed.<br />

supply Tongaat Hulett, 94%<br />

are small-scale farmers. The<br />

Illovo Small-Scale Grower Cane<br />

Development Project used 119<br />

local contractors to develop the<br />

fields of 1 630 new growers on<br />

3 000ha. Production sent to the<br />

company’s Sezela factory more<br />

than doubled and income for<br />

the growers is expected to be<br />

about R64-million annually.<br />

National Treasury and the SA<br />

Canegrowers were partners in<br />

the project.<br />

SA Canegrowers represents<br />

<strong>23</strong> 866 growers and is<br />

responsible for the production<br />

of 18.9-million cane tons.<br />

The Sugar Terminal at<br />

Maydon Wharf, Durban, serves<br />

11 mills and can store more than<br />

half-a-million tons of sugar. It also<br />

has a molasses mixing plant.<br />

Agricultural assets<br />

Of <strong>KwaZulu</strong>-<strong>Natal</strong>’s 6.5-million<br />

hectares of agricultural land,<br />

18% is arable and the balance<br />

is suitable for the rearing<br />

of livestock. The province’s<br />

forests occur mostly in the<br />

southern and northern edges<br />

of the province.<br />

The coastal areas lend<br />

themselves to sugar production<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Select milk dairy equipment. Credit: Tetra Pak Group<br />


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

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

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

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

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

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

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

Farmers Co-operative represents 1 400 farmers.<br />

TWK is a R6-billion operation that originated in forestry (as<br />

Transvaal Wattlegrowers Co-operative) but which is now a diverse<br />

agricultural company with seven operating divisions. It has 19 trade<br />

outlets in the province and 21 in Swaziland and Mpumalanga.<br />

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

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

province produces 18% of South Africa’s milk.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>’s subsistence farmers hold 1.5-million cattle,<br />

which represents 55% of the provincial beef herd, and their goat<br />

herds account for 74% of the province’s stock. The Midlands is also<br />

home to some of the country’s finest racehorse stud farms. The area<br />

around Camperdown is one of the country’s most important areas for<br />

pig farming. Vegetables grow well in most areas, and some maize is<br />

grown in the north-west. Nuts such as pecan and macadamia thrive.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has two colleges offering higher qualifications in<br />

agriculture, Cedara in the Midlands and the Owen Sitole College of<br />

Agriculture near Empangeni.<br />

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

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

hub near the King<br />

Shaka International Airport and<br />

Dube TradePort.<br />

So-called superfoods have<br />

potential to grow the agricultural<br />

sector via greatly increased exports:<br />

these include avocados, pecans<br />

and dates. Another possibility is<br />

macadamia nuts (already a thriving<br />

sector in other parts of the country)<br />

and in new areas such as the<br />

farming of rabbits.<br />

Among the new lines of<br />

agricultural produce being<br />

investigated is cannabis.<br />

The provincial government<br />

initiated a feasibility study to<br />

identify opportunities in the<br />

production of cannabis and<br />

downstream beneficiation.<br />

A Cannabis Investor Protocol<br />

has been developed and a<br />

dedicated Cannabis Unit has<br />

been established within the<br />

Moses Kotane Institute to<br />

assist emerging cultivators<br />

and entrepreneurs with<br />

infrastructure assistance,<br />

funding and licensing. ■<br />

29<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>


Forestry and paper<br />

A campaign to plant 10-million trees has begun.<br />

The National Department of Forestry, Fisheries and the<br />

Environment has set a target for South Africa to plant<br />

10-million trees, two-million per year for five years.<br />

The National Arbour Month campaign was held in 2021<br />

under the title “Forest Restoration: a path to recovery and wellbeing”,<br />

signifying the importance of protecting and conserving the<br />

country’s biodiversity.<br />

Sappi has 19 production facilities on three continents (of which<br />

five are in Southern Africa) and 12 800 employees in over 35 countries.<br />

Sappi’s Stanger Mill is situated close to sugar cane fields from which it<br />

takes bagasse (dry sugar cane pulp) for use in its production processes.<br />

Typek office paper is made at this mill, which has the capacity to<br />

produce 80 000 tons of paper and 30 000 tons of tissue.<br />

At the company’s Tugela Mill up to 200 000 tons per annum of<br />

containerboard (corrugating medium) can be manufactured from<br />

recycled and virgin fibre. The giant Sappi Saiccor mill 50km south of<br />

Durban is the world’s biggest manufacturer of dissolving wood pulp.<br />

<strong>Business</strong> Times reports that Sappi’s December 2021 results showed a<br />

26% improvement in sales, driven largely by containerboard, consumer<br />

packaging and self-adhesives. Journalist Thabiso Mochiko further<br />

stated that South Africa’s printing industry is experiencing something<br />

of a revival because of some unforeseen features of the move to online<br />

shopping. These include security features on labels and a future trend<br />

called printed electronics. Digital print, outdoor signage, billboard<br />

advertising and vehicle wraps are other markets doing well.<br />

The Mondi Group has grown into an international behemoth with<br />

26 000 employees and operations in more than 30 countries. In 2019<br />

Mondi announced that its primary listing would be in London and the<br />

JSE will carry the company’s secondary listing.<br />

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

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

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

Saharan African markets.<br />

Nampak produces crêpe paper at Verulam and Rafalo produces<br />

tissue paper. SA Paper Mills is another paper producer.<br />

In 2015, Australian packaging company Amcor purchased flexible<br />


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

National Department of Forestry, Fisheries and the Environment:<br />

www.dffe.gov.za<br />

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


Sappi reports an uptick in<br />

packaging and speciality<br />

paper sales.<br />

The 10-million Trees Programme<br />

has begun. Credit: DFFE<br />

packaging manufacturer Nampak<br />

Flexibles for about R250-million.<br />

This included production facilities<br />

in three provinces but in July<br />

2021, rioters burnt the Pinetown<br />

factory to the ground. It has not<br />

reopened.<br />

Mpact’s upgrade of its Felixton<br />

mill has increased capacity and<br />

improved efficiency. The project<br />

cost R765-million and takes overall<br />

production up to 215 000 tons<br />

and a lightweight containerboard<br />

option has been included in the<br />

product lines.<br />

Mpact has plastics and<br />

paper operations, with the<br />

paper section divided into three<br />

divisions: paper manufacturing,<br />

corrugated and converted paper<br />

products and recycling. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Mining<br />


Operations at Richards Bay Minerals have started again.<br />

Richards Bay Minerals (RBM), a subsidiary of the Rio Tinto<br />

Group, resumed operations at its mineral sands plant and<br />

refinery in August 2021 but has not yet committed to<br />

continuing to invest in a major minelife extension.<br />

Operations were suspended because of violence<br />

specific to the mine, quite apart from the riots which<br />

affected parts of Gauteng and <strong>KwaZulu</strong>-<strong>Natal</strong> in July<br />

2021. The suspension of the proposed $463-million<br />

Zulti South development remains in place. It is<br />

estimated that if the project were to go ahead, its value<br />

to the national economy over 25 years would be about<br />

R100-billion. The main products of the RBM mine are<br />

zircon, rutile, titania slag, titanium dioxide feedstock<br />

and high-purity iron.<br />

Since 2018, titanium dioxide producer Tronox<br />

Holdings has contributed R22-million per year to local<br />

communities, including through local procurement<br />

opportunities. Tronox exports titanium ore, zircon and<br />

other materials to its pigment plants around the world<br />

where titanium dioxide pigment is produced for use in paints, plastics<br />

and paper. About 21% of the company’s workforce is made up of<br />

women. The KZN Sands mineral sands operation comprises a central<br />

processing complex in Empangeni and the Fairbreeze Mine.<br />

The Covid pandemic in 2020 added to the ongoing problem of reliable<br />

electricity supply, which is a critical issue for a big energy user like a smelter.<br />

After extended negotiations, South32 and Eskom have signed a long-term<br />

energy supply agreement for the Hillside Aluminium smelter to 2031.<br />

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

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

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

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

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

and extrusions.<br />

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

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

factory in Cato Manor.<br />


Council for Geoscience: www.geoscience.org.za<br />

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

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


South32 and Eskom have<br />

finally signed an energysupply<br />

agreement.<br />

Credit: Richards Bay Minerals<br />

Some of the coalfields of<br />

the province have been revived.<br />

Petmin’s Somkhele Anthracite<br />

Mine, north of Richards Bay, has<br />

one of the biggest reserves of<br />

open-pit anthracite in South<br />

Africa, with measured and<br />

indicated reserves of more than<br />

51-million tons.<br />

Luxembourg-based Traxys<br />

Africa, which has chrome mines<br />

Mpumalanga and Limpopo<br />

provinces, runs a high-carbon<br />

ferrochrome plant at Richards Bay.<br />

Finnish company Metso is<br />

spending about R53-million on<br />

building a second furnace at its<br />

Isithebe foundry in the iLembe<br />

District Municipality. This is in<br />

response to increased demand<br />

for large crusher wear parts. The<br />

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

five foundries the company runs<br />

on four continents. ■<br />

31<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>


Engineering<br />

UCL’s expansion included three large projects.<br />


The School of Engineering at<br />

UKZN offers nine specialisations.<br />

UCL hired Bosch Projects to expand its factory. Credit: Bosch Holdings<br />

Bosch Projects recently undertook three projects at the<br />

Dalton factory of sugar producer and wattle-bark miller<br />

UCL Company.<br />

The projects were completed over a nine-month period<br />

which included parts of the Covid-19 lockdown. Cane input was<br />

increased by 25% through a widening of the chainless diffuser, a<br />

procedure that the company claimed as a world-first. UCL Company<br />

manufactures wattle tannin extracts, sugar and pine lumber.<br />

All of the province’s biggest industries require sophisticated<br />

engineering skills: aluminium smelters in Richards Bay and steel works<br />

in Newcastle, Richards Bay and Cato Ridge. There are also chemicals<br />

and plastics production plants, and large automotive works.<br />

Marine repair and engineering are important, with established<br />

companies such as EBH South Africa offering comprehensive services<br />

at the ports of Durban and Richards Bay.<br />

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

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

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

industrial giants like Toyota and Defy.<br />

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

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

countries. With more than 1 000 employees at the factory in the<br />

Phoenix Industrial Park in Durban, the company makes a wide variety<br />

of wires and is the country’s biggest producer of nails.<br />

ArcelorMittalSA is Africa’s biggest steelmaker and it has a plant<br />

at Newcastle, but tough times in the steel business have meant that<br />


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

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

WASH R&D Centre: www.washcentre.ukzn.ac.za<br />

the company has shut down<br />

some of its facilities. The first to<br />

be shuttered was Saldanha in the<br />

Western Cape and an analysis of<br />

the profitability of other centres is<br />

underway.<br />

A big project that has created<br />

a lot of work for engineers is the<br />

multi-year Western Aqueduct<br />

project to bring fresh water to<br />

greater Durban.<br />

The Transnet Engineering (TE)<br />

plant in the Port of Durban houses<br />

six business units and has 3 555<br />

employees. The Port Equipment<br />

Maintenance unit and units<br />

specialising in wheels and locomotive<br />

overhaul are other entities.<br />

The Pollution Research<br />

Group (PRG) at the University of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> (UKZN) has a new<br />

name and an extended brief. It has<br />

been re-established as the Water,<br />

Sanitation and Hygiene Research<br />

and Development Centre (WASH<br />

R&D Centre).<br />

The unit continues to fall under<br />

Chemical Engineering, where 34<br />

staff contribute to lecture modules<br />

in a variety of fields but which now<br />

go far beyond the original brief of<br />

water in industry. In addition to<br />

Chemical Engineering, the School of<br />

Engineering offers a range of degree<br />

options in nine areas of specialisation<br />

including Bioresources, Electronic<br />

and Computer Engineering and<br />

Land Surveying. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Oil and gas<br />

South Africa’s largest crude oil refinery is likely to come on the market.<br />



Petroleum Agency SA<br />

has awarded gas<br />

exploration rights.<br />

Shell Downstream South Africa and bp Southern Africa<br />

announced in February <strong>2022</strong> a “spend freeze” and paused<br />

operations at the SAPREF oil refinery in Durban.<br />

The refinery, pictured, accounts for roughly 35% of the<br />

country’s refinery capacity and is likely to be offered for sale. The first<br />

announcement of the “pause” did not give reasons for the decision but it<br />

is likely that the violent riots of July and the decision by a court to block<br />

Shell’s offshore seismic surveys in December 2021 played a role.<br />

Durban’s other oil refinery, Enref, was hit by a fire in December 2020<br />

and there are plans to convert it to a storage facility. South Africa is<br />

a net importer of fuel and the Port of Durban handles 80% of South<br />

Africa’s fuel imports.<br />

The regulator and promoter of oil and gas exploration in South<br />

Africa, Petroleum Agency South Africa, has awarded coalbed-methanegas<br />

exploration rights in <strong>KwaZulu</strong>-<strong>Natal</strong> to NT Energy Africa, which has a<br />

partnership with the Central Energy Fund. These awards are for onshore<br />

exploration. The Petroleum Agency SA is an agency of the National<br />

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

The Port of Richards Bay is investing in new infrastructure. The supply<br />

of liquid petroleum gas (LPG) is set to be made much easier and more<br />

reliable with the erection of the 22 600-ton Mounded LPG Facility at<br />

Richards Bay.<br />

Bidvest Tank Terminals has constructed the R1-billion storage facility<br />

for Petredec, which trades, transports and distributes LPG and other<br />


National Energy Regulator of South Africa: www.nersa.org.za<br />

Petroleum Agency SA: www.petroleumagencysa.com<br />

South African National Energy Association: www.sanea.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

commodities. South Africa’s<br />

annual consumption of LPG,<br />

currently at 400 000 tons, is<br />

expected to rise to 600 000 tons.<br />

If a private partner can be found,<br />

an LNG plant will produce 2 000MW<br />

at Richards Bay. This forms part of<br />

national government’s allocation<br />

of 3 126MW to natural gas in its<br />

medium-term energy policy to<br />

2030. The National Department<br />

of Mineral Resources and Energy<br />

allocated one of the first two gasto-power<br />

plants to be constructed<br />

under the Independent Power<br />

Producer Procurement Programme<br />

to Richards Bay. This has the potential<br />

to turn the Richards Bay Industrial<br />

Development Zone (RBIDZ) into an<br />

energy hub.<br />

Eni, one of the world’s biggest<br />

energy companies, has an<br />

agreement with Sasol Petroleum<br />

International to explore for<br />

hydrocarbons off the coast of<br />

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

Getting fuel to the province<br />

of Gauteng is the key mission of<br />

the new multi-purpose pipeline<br />

(NMPP). Refined products such as<br />

jet fuel, sulphur diesel and both<br />

kinds of octane petrol are carried.<br />

The infrastructure of Transnet<br />

Pipelines is said to reduce the<br />

number of fuel tankers on South<br />

African roads by about 60%. ■<br />

33 KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>

FOCUS<br />

Offshore exploration will<br />

benefit the <strong>KwaZulu</strong>-<strong>Natal</strong><br />

economy<br />

The CEO of Petroleum Agency South Africa CEO,<br />

Dr Phindile Masangane, explains how gas can drive<br />

economic growth and play a role in the transition to<br />

a clean energy future.<br />

Today the biggest threat to humanity is<br />

climate change and the biggest threat<br />

to South Africa’s social stability is the<br />

high unemployment rate, which has<br />

primarily been caused by economic stagnation.<br />

As the global economy recovers from the<br />

devastating effects of Covid-19, demand for oil and<br />

gas has gone up significantly. If there was ever a<br />

need for proof that oil and gas still drive the global<br />

economy, recent statistics demonstrate the trend.<br />

The world’s developed economies<br />

industrialised on the back of oil and gas production<br />

and use. Now, just as Africa is on the cusp of being<br />

a significant gas producer and is making plans to<br />

use such gas for power generation, industrialisation<br />

and economic growth, the negative effect of<br />

greenhouse gas emissions on the environment has<br />

become undeniable.<br />

The urgency for action to mitigate the risk of<br />

climate change is no longer debatable. Between<br />

1990 and 2018 the top five emitters have<br />

produced more than 50% of greenhouse gas<br />

emissions. During the same period South Africa has<br />

contributed 1% to global emissions. This is by no<br />

measure insignificant, and as a responsible global<br />

citizen South Africa must take steps to reduce its<br />

carbon footprint.<br />

The UN Framework Convention on Climate<br />

Change was established in 1992 to coordinate the<br />

global response to mitigate the threat of climate<br />

change, and specifically to get countries to commit<br />

to policies and plans that will ensure that the<br />

average global temperature rise is kept less than<br />

1.5°C above pre-industrial levels.<br />

The International Energy Agency (IEA) proposes<br />

that to achieve this goal the world’s energy sector<br />

must reach net zero emissions by 2050. In its<br />

global energy net zero 2050 pathway, the IEA<br />

acknowledges that there is no single pathway to<br />

this goal, as developed and developing countries<br />

face different socioeconomic challenges and have<br />

contributed disproportionately to greenhouse gas<br />

emissions to date.<br />

Country-specific pathways<br />

What a number of environmental interest groups<br />

seem to be ignoring in the IEA “Net Zero by 2050”<br />

report is the acknowledgment that there will be a<br />

differentiated approach to a clean energy future,<br />

taking into consideration the cost of the new<br />

clean energy technologies and the economic<br />

consequences of transitioning for each country. The<br />

IEA emphasises that each country must develop its<br />

own pathway to a net zero emission future.<br />

South Africa’s economy has been<br />

predominantly powered by coal, which is also a<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong> 34

significant contributor to the country’s economy<br />

in terms of GDP as well as employment. Of<br />

all primary energy resources coal is the most<br />

carbon-intensive, and South Africa therefore<br />

has a relatively high carbon-intensive economy,<br />

contributing about 1% of annual global<br />

greenhouse gas emissions.<br />

In addition to coal, South Africa imports oil, gas<br />

and petroleum products for its energy needs as the<br />

upstream petroleum industry is still at a nascent<br />

stage. The two recent world-class gas discoveries<br />

in the Outeniqua basin off the south coast of the<br />

country are the biggest petroleum discoveries<br />

made in South Africa.<br />

The development of these discoveries has<br />

the potential to replace more than 2 300MW of<br />

diesel-fired electricity generation in Gourikwa,<br />

Dedisa and Ankerlig, thereby reducing the carbon<br />

emissions from these plants by more than 50%<br />

while eliminating sulphur oxide and nitrogen<br />

oxide emissions, which are also harmful to the<br />

environment. Gas is therefore an obvious bridge to<br />

a lower carbon future in South Africa.<br />

Importantly, these gas discoveries could<br />

restore the gas-to-liquid refinery in Mossel Bay<br />

to full production and profitability, saving about<br />

1 200 direct jobs. A complete shutdown and<br />

abandonment of this refinery would not only<br />

lead to job losses at the refinery, but the effects<br />

would reverberate throughout the town of<br />

Mossel Bay and the Southern Cape region, since<br />

the refinery contributes about R2-billion a year,<br />

or 26% of the Mossel Bay economy, and 6% to<br />

the Southern Cape economy when producing at<br />

full capacity.<br />

The Petroleum Agency South Africa awaits the<br />

licensee of these gas discoveries submitting its<br />

production right and environmental authorisation<br />

applications when the exploration right expires, or<br />

earlier. The agency expects the licensee to use worldclass<br />

technologies and standards to minimise the<br />

effects of the gas and gas condensate production on<br />

the environment, while maximising the in-country<br />

benefit or local content from this development to<br />

support South Africa’s economic recovery.<br />

These discoveries could indeed support both<br />

the country’s economic recovery and its transition<br />

to a clean energy future. ■<br />

Database management<br />

The continental shelf of the Republic of South Africa<br />

covers some 200 000km² and the country has a<br />

coastline approximately 3 000km in length.<br />

Petroleum Agency SA is responsible for the<br />

archive and management of the national hydrocarbon<br />

exploration database on behalf of the State. It has<br />

digitised, indexed and archived all of the data and<br />

reports resulting from the drilling of more than 300<br />

offshore and some 200 onshore boreholes.<br />

The exploration database also include seismic field<br />

and processed data for more than 300 000km of 2D<br />

and 40 000km² of 3D seismic data that was acquired<br />

offshore and some 9 800km of seismic processed<br />

data that was acquired during the late 1960s in the<br />

Karoo, Algoa and Zululand onshore basins.<br />

Being the custodian of the National Petroleum<br />

Exploration and Production Database of South Africa,<br />

the Agency relies on a sustainable and effective<br />

Information Management Infrastructure in order to<br />

comply with its mandate to:<br />

• Archive and maintain a database on petroleum<br />

exploration and production data.<br />

• Provide access to existing data, cores, well samples,<br />

information and literature on request.<br />

• Add value and incorporate new as well as interpreted<br />

data into the database.<br />

• Maintain records of all hydrocarbon exploration and<br />

production activities.<br />


Tel: +27 21 938 3500<br />

Email: plu@petroleumagencysa.com<br />

Website: www.petroleumagencysa.com<br />

35<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>


Energy<br />

eThekwini plans to sign up independent power producers.<br />

The eThekwini Metropolitan Municipality has entered the<br />

field of renewable energy provision with the publication<br />

of its eThekwini Integrated Resource Plan (EIRP). This<br />

document outlines the steps the city will take towards<br />

its cleaner energy goals.<br />

Before launching a bidding process for independent power<br />

producers, the municipality will formally adopt the energy policy<br />

as a council and then assess the market. Goals include being<br />

carbon neutral by 2050 and having renewable energy provide<br />

40% of the metro’s power by 2030.<br />

Food packaging and processing company Tetra Pak has also<br />

set ambitious goals when it comes to energy. A new plant being<br />

built in Pinetown has reduced carbon emissions, which will<br />

help the company on its way to carbon neutrality by 2030. New<br />

technology is being used at the plant which will advance the goal<br />

of using sugarcane to produce a bio-based plastic.<br />

Illovo Sugar SA is keen to produce biofuel and bio-energy<br />

and at the company’s Eswatini mill, Ubombo, it has a commercial<br />

supply agreement with the Eswatini Electricity Company.<br />

The province’s other sugar giant, Tongaat Hulett, produces<br />

between 12MW and 14MW of power at its mills and believes<br />

that the national sugar industry could generate between 700MW<br />

and 900MW. A 17MW biomass project represents the province’s<br />

only approved project in terms of the national Renewable Energy<br />

Independent Power Producer Procurement Programme (REIPPPP).<br />

An open cycle gas turbine plant at Shakaskraal in the iLembe<br />

District Municipality can be converted to gas-fired technology, a<br />

method which energy planners are encouraging. The 670MW plant<br />

came on stream in 2017. Its project company, Avon Peaking Power,<br />

is jointly owned by a community trust, Mitsui (Japan), Legend Power<br />

Solutions (South Africa) and ENGIE of France.<br />

As part of the provincial government’s strategy to boost regional<br />

development, the iLembe District has been named as an Industrial<br />

Economic Hub (IEH) for the renewable energy sector.<br />

Khanyisa Projects has set up 26 biodigesters which produce gas for<br />


National Department of Energy: www.energy.gov.za<br />

National Energy Regulator: www.nersa.org.za<br />

South African National Energy Development Institute:<br />

www.sanedi.org.za<br />


The iLembe District is an<br />

Industrial Economic Hub<br />

(IEH) for the renewable<br />

energy sector.<br />

The Avon Peaking Power Plant in<br />

the iLembe District Municipality.<br />

Credit: ENGIE Peakers Operations<br />

cooking at Ndwedwe in the<br />

iLembe District. The project forms<br />

part of the Working for Energy<br />

programme of the South African<br />

National Energy Development<br />

Institute (SANEDI) which promotes<br />

the use of sustainable clean energy<br />

in rural areas.<br />

The Richards Bay Industrial<br />

Development Zone (RBIDZ)<br />

has been named as the site<br />

for 2 000MW liquefied natural<br />

gas (LNG) plant in terms of<br />

national government’s gas-topower<br />

plan. RBIDZ is also the<br />

site of a new biomass plant.<br />

Biomass technology is at<br />

the centre of the conversion<br />

scheme of South African<br />

Breweries at its Prospecton<br />

plant south of Durban.<br />

Methane-gas emissions from<br />

a nearby effluent plant are<br />

piped to the plant where they<br />

are converted to electricity. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


Construction and property<br />

R6-billion business and logistics park for Umhlanga.<br />


Investec Property is behind a major new development, The<br />

Brickworks, strategically located between the Port of Durban<br />

and King Shaka International Airport.<br />

The R2-billion first phase, on which<br />

construction will start in the middle of<br />

<strong>2022</strong>, will see the old Corobrik factory site<br />

transformed into a business and logistics park.<br />

Once the project is complete there will be<br />

more than 450 000m² of leasable space.<br />

This investment is especially welcome for<br />

the property and logistics sector which was<br />

badly hit by the riots which took place in and<br />

around Durban in July 2021.<br />

A major milestone was reached in<br />

November 2019 when Durban’s beachfront<br />

promenade extension reached the harbour.<br />

This means that residents anywhere in the city<br />

can now step onto the promenade, from the harbour in the south<br />

to Blue Lagoon in the north. The project began in early 2018 and<br />

cost R400-million.<br />

According to the organisers of the 2019 KZN Construction Expo,<br />

infrastructure will attract more than R200-billion in investment over<br />

seven years and R35-billion will be spent over 15 years at the Port<br />

Waterfront development.<br />

The King Shaka International Airport and Dube TradePort are<br />

also attracting property investments. Two new industrial parks are<br />

being developed: Cornubia is part of a larger project near Umhlanga<br />

and Clairwood in Durban South will offer more than 300 000m² of<br />

A-grade industrial space.<br />

Tongaat Hulett Developments (THD) has for some years been rolling<br />

out a series of developments on land it owns north of Durban and it has<br />

launched the nTshongweni Urban Development on either side of the<br />

busy N3 highway west of the city.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has a number of brick companies and four cement<br />

factories. Three of these are run by NPC at Simuma, Durban and<br />


Construction Industry Development Board: www.cidb.org.za<br />

Master Builders Association <strong>KwaZulu</strong>-<strong>Natal</strong>: www.mba-kzn.co.za<br />

SA Estate Agency Affairs Board: www.eaab.org.za<br />

SA Institute of Valuers: www.saiv.org.za<br />


Infrastructure spending is<br />

set to grow.<br />

Newcastle, and the company<br />

has a further six sites for concrete<br />

and two for aggregate. NPC is<br />

part of the Intercement group.<br />

Lafarge has several aggregate<br />

quarries and eight Readymix<br />

plants around the province. The<br />

company’s grinding operation in<br />

Richards Bay has closed.<br />

The Dolphin Coast<br />

continues to attract high-end<br />

investors. Seaton, The Bay, in<br />

Sheffield Beach Estate, north of<br />

Ballito and Simbithi Eco-Estate,<br />

distinguishes itself from its<br />

neighbours by offering direct<br />

access to the beach.<br />

Collins Residential reported<br />

R179-million in sales in two<br />

months in late 2020, for the first<br />

two parts of the development.<br />

Owners are expected to take<br />

up residence early in <strong>2022</strong>.<br />

Further south, Zimbali is<br />

another estate holding its own<br />

in terms of value. ■<br />

37 KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>


Water<br />

Bulkwater schemes are coming on line.<br />

The R50-million uMshwathi Bulkwater Scheme was officially<br />

inaugurated in November 2020 as part of a broader scheme<br />

to improve water supplies across the province. Two new<br />

dams will add 800-million litres of water per day to the<br />

available supply in <strong>KwaZulu</strong>-<strong>Natal</strong>. As part of the lower uMkhomazi<br />

scheme, utility Umgeni Water will spend about R26-billion on the<br />

Smithfield Dam and R2.4-billion on the Ngwadini Dam.<br />

The provincial government has listed some major projects<br />

currently in progress:<br />

• Lower uMkhomazi Bulkwater Scheme, Umgeni Water, R3-billion,<br />

estimated to be completed in 20<strong>23</strong><br />

• Cwabeni Project, R1-billion estimate, completion in <strong>2022</strong><br />

• Stephen Dlamini Dam, R1-billion estimate, completion 20<strong>23</strong><br />

• uMkhomazi Water Project, R<strong>23</strong>-billion, once phase two is complete,<br />

it will be one of the biggest water transfer schemes in the country<br />

A new tender was issued in 2020 for the completion of a<br />

35-megalitre-per-day upgrade of the Darvill Waste-Water Works. The<br />

facility receives and treats both domestic and industrial wastewater<br />

from the city of Pietermaritzburg.<br />

A provincial Water Intervention Plan is being rolled out in<br />

hotspots where municipalities are struggling to provide consistent<br />

services. The main pipelines of Kokstad and Underberg are receiving<br />

upgrades, as are the water supply systems at Bergville, Skhemelele<br />

and Moyeni Zwelisha.<br />

The area north of the Durban central business district is one of the<br />

fastest-growing urban areas in South Africa, with a number of large<br />

office and accommodation projects going ahead simultaneously.<br />

This is a welcome development for the economy, but the new<br />

buildings also create pressure on infrastructure.<br />

The multi-year, R250-million Northern Aqueduct Augmentation<br />

project was initiated in 2014 and the fifth phase of the project is<br />

underway. This will provide water for Durban North, Umhlanga,<br />

Newlands, KwaMashu, Phoenix and Cornubia.<br />

Umgeni Water currently supplies more than 400m³ of potable<br />

water to its six large municipal customers. The company has five dams,<br />

10 waterworks, five water-treatment plants and two wastewater works,<br />

including Darvill.<br />


Mhlathuze Water: www.mhlathuze.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Umgeni Water: www.umgeni.co.za<br />

Water Research Commission: www.wrc.org.za<br />


The Northern Aqueduct<br />

Augmentation project is a<br />

massive undertaking.<br />

Anaerboic digesters at<br />

Darvill Waste-Water Works.<br />

Credit: Umgeni Water<br />

Large parts of the northern<br />

part of the province are served<br />

by Mhlathuze Water. The utility<br />

has assets valued at more than<br />

R3-billion and its area of supply<br />

covers 37 000m².<br />

New technology has<br />

been installed at the Verulam<br />

Wastewater Treatment Works<br />

of the eThekwini municipality.<br />

Murray & Roberts Water and its<br />

European technology partner,<br />

Organica Water, has installed an<br />

environmentally-friendly system<br />

that uses 30% less energy and<br />

produces 30% less sludge.<br />

Richards Bay has installed a<br />

10-container desalination plant<br />

next to the municipal water<br />

treatment plant at Alkanstrand. The<br />

first mobile sea water purification<br />

unit in South Africa, it comprises 10<br />

containers and is located adjacent<br />

to the water treatment plant at<br />

Alkantstrand. It can deliver 10<br />

megalitres of drinking water. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


The CSIR Water Centre has<br />

the capabilities to support<br />

the water sector<br />

Touching lives through innovation.<br />

FOCUS<br />

network can be identified and repairs done at the<br />

same time.<br />

Legally, water incidents should be recorded as part<br />

of a Risk Abatement Plan. A Corrective Action Request<br />

and Report System (CARRS) application is used for<br />

water incident reporting.<br />

The Water Centre of the Council for Scientific<br />

and Industrial Research (CSIR) is wellequipped<br />

to support agencies and utilities<br />

working in the water sector. Some of the<br />

problems of water supply and distribution came<br />

into sharp focus in the wake of the <strong>2022</strong> floods in<br />

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

Pinpointing water infrastructure damage<br />

ICT-based Dynamic Hydraulic Models (DHM)<br />

with real time/near real time data are used for the<br />

optimisation of water distribution networks (faulty<br />

pipeline diagnostics).<br />

Pressure monitoring and control are used<br />

to reduce the amount of non-revenue water<br />

due to dilapidated water treatment plant (WTP)<br />

infrastructure. Therefore, damages on the distribution<br />

Water quality monitoring and treatment<br />

A decentralised (mobile) water and wastewater<br />

treatment system (WWTS) is used to as an emergency<br />

or temporary treatment system directly from source.<br />

Water is treated at the source for human use.<br />

The CSIR Laboratory has the capability to test water<br />

quality as per the drinking water standard (SANS 241).<br />

Through this testing procedure, acceptable water<br />

quality can be guaranteed.<br />

Amadrum is a point-of-use water treatment system<br />

which treats raw water to an acceptable drinking<br />

quality.<br />

The CSIR can prepare comprehensive assessments<br />

and monitor water resources over a period of time.<br />

Additionally, drinking water pollution incidents which<br />

are caused by interruptions in water supply can be<br />

addressed.<br />

Decentralised wastewater treatment systems<br />

Decentralised systems can be used to augment<br />

existing WWTSs. Decentralised wastewater treatment<br />

systems (DEWATS) are renowned for low operation<br />

and maintenance requirements. They require<br />

smaller-scale investment commitments compared to<br />

centralised solutions. ■<br />

Contact: Manager, Water Research<br />

Centre, Dr Rembu Magoba<br />

Email: RMagoba@csir.co.za


Tourism<br />

Resumed flights augur well for the economy.<br />


The KZN Tourism Relief Fund<br />

is helping Covid-stressed<br />

businesses.<br />

Both Qatar Airways and SAA had resumed flights to King<br />

Shaka International Airport by early March <strong>2022</strong>, a good<br />

sign for the recovery of the regional economy. SAA is<br />

flying three times a week while the Doha-based airline<br />

is offering four flights per week.<br />

The KZN Tourism Relief Fund was put in place to provide relief<br />

to majority black-owned tourism businesses. The R20-million<br />

fund, modelled on the National Tourism Relief Fund, was capped<br />

at R50 000 per business.<br />

Rural tourism, as well as women- and youth-owned businesses,<br />

are at the centre of the provincial government’s Tourism Recovery<br />

Plan. The projects include the development of a tourism precinct at<br />

Howick Falls in uMgungundlovu District Municipality, improvements<br />

at KwaXolo Caves Adventures in Ugu District Municipality and the<br />

construction of uMtubatuba Tourism Information and SMME Centre<br />

in uMkhanyakude District Municipality.<br />

The combined contribution of retail and tourism to provincial GDP<br />

is 14%. Research by Tourism <strong>KwaZulu</strong>-<strong>Natal</strong> shows that the coastal<br />

province consistently has the best hotel occupancies in the country.<br />

The Docklands Hotel at the Durban Waterfront is a four-star<br />

Signature development that cost about R100-million to develop.<br />

Tsogo Sun has spent R1.6-billion on refurbishing its Suncoast<br />

complex on Durban’s Golden Mile. Suncoast Casino Hotels &<br />

Entertainment covers a huge area and offers a wide variety of<br />

entertainment options.<br />

Tsogo Sun has four other hotels on the Golden Mile and six hotels<br />

in Durban with a further four in nearby Umhlanga, where one of the<br />

group’s most luxurious hotels, the 89-room Beverly Hills, is located.<br />

A “mega-hotel” was created with the amalgamation of the Southern<br />


Durban International Convention Centre: www.icc.co.za<br />

Ezemvelo KZN Wildlife: www.kznwildlife.com<br />

Tourism <strong>KwaZulu</strong>-<strong>Natal</strong>: www.zulu.org.za<br />

Credit: Qatar Airways<br />

Sun North Beach and Southern<br />

Sun Elangeni hotels.<br />

Premier Hotels & Resorts will<br />

spend about R420-million on two<br />

new hotels at Umhlanga. The 207-<br />

room Hilton Garden Inn has been<br />

operating at Umhlanga Arch<br />

since 2020. The new Radisson<br />

Blu Oceans Umhlanga Hotel is<br />

expected to open in <strong>2022</strong>. The<br />

Royal Hotel in the heart of Durban<br />

is one of eight Three Cities Group<br />

hotels in the province. The Golden<br />

Horse Casino Hotel is a Three<br />

Cities property, and the Group<br />

administers the International<br />

Hotel School in Westville that also<br />

hosts the Christine Martin School<br />

of Food and Wine.<br />

IFA Hotels & Resorts runs<br />

several luxury properties including<br />

the Zimbali Coastal Resort and<br />

Zimbali Lakes Resort. Signature<br />

Life Hotels has 13 properties and<br />

Gooderson Leisure has a varied<br />

portfolio. Sibaya Casino and<br />

Entertainment Kingdom, a Sun<br />

International property, is north<br />

of Durban between Umdloti<br />

and Umhlanga. The casinos<br />

in Newcastle (Century City),<br />

Empangeni (Tusk Umfolozi Casino)<br />

and Pietermaritzburg (Golden<br />

Horse Casino) are run by Century<br />

Casinos Newcastle, Peermont<br />

Global and Akani Msunduzi<br />

Management respectively. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


ICT<br />


Infrastructure has to be rebuilt after severe flooding.<br />

One of the results of the violent floods that affected<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> in <strong>2022</strong> was the destruction of ICT<br />

infrastructure. Mobile operator MTN lost connections<br />

to 500 sites through a combination of towers being<br />

knocked down and interrupted electricity supply. Some fibre<br />

ducts also became water-logged. The major<br />

telecoms companies worked quickly to restore<br />

connectivity and donated blankets and other<br />

supplies to affected communities.<br />

More than 500 SMMEs are expected to participate<br />

in a rollout of more than 20 000 public hotspots<br />

across the province. Key areas will include taxi ranks,<br />

schools and public health facilities. More than 140 sites<br />

have been successfully connected in several districts<br />

through the SA Connect programme.<br />

A provincial strategy for creating smart cities is<br />

targeting three districts: Ugu (Ray Nkonyeni Local<br />

Municipality as anchor); iLembe (KwaDukuza); Richards<br />

Bay (uMhlathuze).<br />

Broadband Infraco is providing layer two<br />

network services to Dube TradePort (pictured) to<br />

provide over 810 WiFi hotspots at 405 selected sites<br />

across the province.<br />

Over the next five years, the Moses Kotane Institute, another<br />

subsidiary of the KZN Department of Economic Development,<br />

Tourism and Environmental Affairs, will connect several rural<br />

communities. Hubs are expected to be functional in Community<br />

Service Centres to improve public access to digital services.<br />

South African Vanguard of Technology (Savant) is a Department<br />

of Trade, Industry and Competition (dtic) programme. It is the<br />

marketing and awareness programme for the South African ICT and<br />

electronics sector. The aim is to develop South African exports and to<br />

attract foreign investment. It houses a venture fund and an incubator.<br />

A SmartXchange SMME Incubator has been launched in<br />

Port Shepstone on the South Coast. The concept of ICT has been<br />


Dube TradePort: www.dubetradeport.co.za<br />

Information Technology Association of South Africa: www.ita.org.za<br />

SmartExchange: www.smartxchange.co.za<br />

South African Vanguard of Technology: www.savant.co.za<br />


Dube TradePort is a<br />

provincial leader in<br />

digital technology.<br />

expanded to include media and<br />

electronics, so the hub is called an<br />

MICTe Incubator.<br />

The province’s SmartXchange is<br />

an example of a successful publicprivate<br />

partnership that supports<br />

businesses in the information<br />

technology and communications<br />

sector. Incubation strategies for<br />

start-ups and skills development<br />

(including links to educational<br />

institutions) are important parts of<br />

the organisation’s brief.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has an<br />

established skills base in<br />

microprocessors and radiobased<br />

systems and a strong<br />

manufacturing base. ■<br />

41 KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>


Manufacturing<br />

Sappi’s giant plant at Umkomaas is set to grow again.<br />


Hulamin is supplying a US<br />

electric car manufacturer.<br />

EBH has extensive facilities in the Port of Durban.<br />

Sappi’s massive Saiccor Mill on <strong>KwaZulu</strong>-<strong>Natal</strong>’s south coast is<br />

on course to grow even bigger. The company is conducting<br />

feasibility studies to construct a plant to produce furfural. The<br />

pilot plant will be erected in the course of <strong>2022</strong>.<br />

The Saiccor mill has the capacity to produce approximately<br />

800 000 tons of dissolving pulp per annum, mostly export.<br />

Capacity will rise above 900 000 tons once an expansion project<br />

is complete.<br />

Aluminium producer Hulamin experienced reduced demand<br />

during the Covid-19 lockdowns but has secured a number of good<br />

orders, including to supply product to a US manufacturer of electric<br />

vehicles. Hulamin had previously laid off some workers and closed<br />

one of its factories in another province. The company believes that<br />

its restructuring is working well, and its beverage business is thriving.<br />

Hulamin also makes rolled products at Edendale, Pietermaritzburg<br />

and at Camps Drift.<br />

Dube TradePort attracted R7-billion in private and public sector<br />

investment between 2012 and 2019 and, with its ideal position for<br />

logistics operations, is expected to attract much more.<br />

The province’s other Special Economic Zone (SEZ), the Richards<br />

Bay Industrial Development Zone (RBIDZ), is attracting investments<br />

in a wide range of sectors.<br />

Cipla, the Indian manufacturer of generic drugs, is building a<br />

new facility at Dube TradePort to complement its existing factory in<br />

Durban. LG Electronics South Africa has opened a R21-million factory<br />

and distribution centre in Cornubia, north of Durban.<br />

The manufacturing sector contributes 17.7% to the provincial<br />

Gross Domestic Product (GDP) of <strong>KwaZulu</strong>-<strong>Natal</strong>. The strongest<br />


Aluminium Federation of South Africa: www.afsa.org.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

Enterprise iLembe: www.enterpriseilembe.org.za<br />

export sectors are base metals<br />

(32% including aluminium),<br />

mineral products such as ores,<br />

vehicles and chemical products.<br />

New opportunities in<br />

the Blue economy (shipbuilding<br />

and maintenance,<br />

oil-rig repair and servicing)<br />

and the Green economy (solar<br />

panel manufacture, solar,<br />

biogas and wind energy plant<br />

construction, management<br />

and maintenance, heating<br />

and cooling devices) are set to<br />

grow in <strong>KwaZulu</strong>-<strong>Natal</strong> with the<br />

allocation of geographical hubs<br />

to support these sectors, and<br />

the introduction of policies and<br />

incentives designed to make<br />

them competitive.<br />

Two large oil refineries<br />

and a sophisticated sugar<br />

milling and refining industry<br />

underpin provincial chemical<br />

manufacturing although the<br />

SAPREF refinery announced<br />

a suspension of operations<br />

in February <strong>2022</strong>. The<br />

chemicals and petrochemicals<br />

subsector makes up 17% of<br />

the manufacturing output of<br />

<strong>KwaZulu</strong>-<strong>Natal</strong>, with industrial<br />

chemicals accounting for nearly<br />

a third. Steel and aluminium<br />

are other heavy manufacturing<br />

products. Newcastle is a<br />

chemical manufacturing hub. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


31391<br />

Commercial Banking<br />

Nedbank partners<br />

with the automotive industry<br />

to drive competitiveness<br />

amid turbulence<br />

By Amith Singh, National Manager Manufacturing<br />

The South African automotive industry,<br />

which generates around 18,7% of domestic<br />

manufacturing output, plays a significant role<br />

in our country’s economy, with a GDP contribution<br />

comparable to that of mining and agriculture.<br />

The <strong>2022</strong> Automotive Export Manual released<br />

by the Automotive Industry Export Council earlier<br />

this year also revealed that vehicle and automotive<br />

component exports increased by 18,1% in 2021<br />

to comprise 12,5% of total South African exports.<br />

Unfortunately, the industry has been hit hard<br />

by recent global and local events, including<br />

global supply chain disruptions and operational<br />

efficiencies at South African ports that are well<br />

below international standards, further exacerbated<br />

by riots and cyberattacks. More recently<br />

the flooding in automotive-intensive <strong>KwaZulu</strong>-<br />

<strong>Natal</strong> and onerous load-shedding schedules<br />

resulted in the manufacturing production figures<br />

released for April <strong>2022</strong> showing a substantial<br />

decline of 7,8% year-on-year.<br />

With most of these setbacks hopefully behind<br />

us, and efforts being made to stabilise electricity<br />

supply and improve the situation at our ports,<br />

savvy automotive manufacturing firms should<br />

consider the five trends that Deloitte’s <strong>2022</strong><br />

manufacturing industry outlook pinpointed<br />

to watch. With business agility critical for<br />

organisations to operate through unprecedented<br />

turbulence, the report identifies key strategies<br />

to drive competitiveness. These include<br />

embracing technology to create more connected,<br />

reliable, efficient and predictive processes;<br />

carefully reviewing cyberdefences and resilience<br />

in the event of cyberattacks; and closely<br />

monitoring the fast-evolving environmental,<br />

social and governance (ESG) landscape and<br />

adjusting operations accordingly. Proactive<br />

approaches to these challenges will help<br />

automotive manufacturers mitigate setbacks<br />

while creating a competitive advantage.<br />

Nedbank’s deep understanding<br />

of the manufacturing industry has enabled<br />

us to develop tailor-made solutions in this field,<br />

making us the expert strategic banking partner<br />

to grow our clients’ businesses. The bedrock<br />

of our manufacturing portfolio is the deep,<br />

lasting and value-adding relationships<br />

we develop with our clients and key industry<br />

stakeholders. These solutions are underpinned<br />

by our continuous drive to innovate our<br />

financial and administrative functions, enabling<br />

you to take your business to the next level.<br />

Through this profound insight we provide<br />

bespoke, innovative financial solutions<br />

to help grow our clients’ businesses<br />

and strengthen their competitiveness in<br />

the market. For example, because we know<br />

that present macroeconomic challenges<br />

coupled with power supply issues lead<br />

to having cash flow constraints that could<br />

prohibit delivery and growth, we have a range<br />

of solutions to mitigate that risk. Similarly,<br />

as the green bank, we offer a comprehensive<br />

range of solutions to promote the sustainability<br />

of clients’ businesses, giving them the<br />

competitive advantage that is so vital<br />

in the market.<br />

Our vast experience in global trade<br />

enables quicker, more efficient cross-border<br />

transactions when importing and exporting,<br />

and easy access to funds smooths out cash<br />

flow fluctuations between production cycles,<br />

enabling clients to take advantage<br />

of discounts and bulk offers.<br />

But the real value we offer is our partnership<br />

approach, which means clients benefit<br />

from a committed partner with industry<br />

expertise who will advise on growth,<br />

investment and financial strategies based<br />

on our deep insight into each client’s unique<br />

financial situation.<br />

For more information about our specialist<br />

manufacturing services, email us at<br />

manufacturing@nedbank.co.za.<br />

Singh is Nedbank Commercial Banking’s<br />

national manager for the manufacturing<br />

sector. He holds a degree in business<br />

management from the University of Cape<br />

Town, a postgraduate degree in sales<br />

management, and is a qualified Neethling<br />

Brain Institute practitioner. He has been<br />

in banking for 19 years.<br />

Nedbank Ltd Reg No 1951/000009/06. Licensed financial services and registered credit provider (NCRCP16).


Education and training<br />

New streams are being introduced at schools.<br />


Coding and Robotics are part of<br />

the programme at 200 schools.<br />

Science on show at the Anton Lembede Mathematics, Science<br />

and Technology Academy. Credit: KZN Department of Education<br />

The first school in <strong>KwaZulu</strong>-<strong>Natal</strong> to focus exclusively<br />

on Maths, Science and Technology opened in 2021<br />

when the Anton Lembede Mathematics, Science and<br />

Technology Academy was launched.<br />

A three-pathways approach has been adopted for future<br />

educational planning. Three broad streams can be followed:<br />

academic, technical/vocational and technical/occupational.<br />

Within that structure, various schools of excellence will be<br />

established: an Agricultural School of Excellence in uMgungundlovu<br />

District, a Maritime School of Excellence and a School of Autism.<br />

In <strong>2022</strong> four new schools will implement the teaching of technical<br />

occupational subjects which was piloted in 2020.<br />

More than 200 schools will soon start to offer Coding and<br />

Robotics as part of the curriculum in Grades 8 and 9. A pilot<br />

programme teaching entrepreneurship was piloted in 2021 in the<br />

King Cetshwayo District and will now be rolled out in other areas.<br />

The Sukuma 100 000 programme was launched in 2020 by the<br />

Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> with the goal of helping<br />

young people make the transition from an educational environment<br />

into the world of work.<br />

With the assistance of the private sector, the Youth Directorate in<br />

the Office of the Premier wants 100 000 young people to benefit every<br />

year from in-service training, apprenticeships and internships. Stateowned<br />

entities and government departments will also participate in<br />

the programme, which is scheduled to last five years.<br />

In another initiative related to competencies, a skills audit is to<br />

be conducted among senior<br />

officials across the province. The<br />

audit began in municipalities and<br />

will be extended to provincial<br />

departments and agencies of the<br />

province in due course.<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has nine<br />

Technical and Vocational<br />

Education and Training (TVET)<br />

Colleges with a total enrolment of<br />

about 80 000.<br />

Coastal KZN TVET College<br />

gives students practical<br />

experience through facilities such<br />

as the Nongalo Industrial Park.<br />

The college hosts the Samsung<br />

Engineering Academy, a Tooling<br />

Centre of Excellence and a<br />

manufacturing plant for sanitary<br />

towels. The college has several<br />

sites on the South Coast and<br />

caters for 15 400 students.<br />

Majuba TVET College is<br />

a Centre of Specialisation for<br />

boiler-making. The Mnambithi<br />

TVFET College is located in the<br />

Battlefields Route tourism area<br />

and offers National Diploma<br />

courses in tourism, among other<br />

qualifications. A satellite campus<br />

operates at Estcourt.<br />

Universities<br />

There are two universities and<br />

two universities of technology in<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />



<strong>KwaZulu</strong>-<strong>Natal</strong>, and the national distance university, the University of<br />

South Africa (Unisa), has a presence in five locations. USB Executive<br />

Development offers business courses for executives.<br />

UKZN has close to 40 000 students studying on five campuses<br />

in two cities. Greater Durban hosts Howard College, Berea<br />

(environment, engineering, law, humanities) and the Nelson<br />

Mandela School of Medicine at Congella. The UKZN administration<br />

and the Graduate School of <strong>Business</strong> are based at Westville (also<br />

science, engineering and health) whereas the Edgewood, Pinetown,<br />

campus focusses on education.<br />

The Pietermaritzburg campus offers a broad academic<br />

programme but its specialities are fine art, theology and agriculture.<br />

UKZN also hosts the National Research Foundation.<br />

The Durban University of Technology (DUT) has six faculties<br />

operating in seven campuses in Durban and in the Midlands. DUT is<br />

well known for its outstanding graphic-design school and offers one<br />

of only two chiropractic programmes in South Africa.<br />

The University of Zululand offers diploma and degree courses on<br />

two campuses at Empangeni and Richards Bay.<br />

Several provincial government departments make tertiary<br />

bursaries available to qualifying students, including Agriculture and<br />

Rural Development, Human Settlements, Public Works, Transport<br />

and the Treasury. The National Student Financial Aid Scheme (NSFAS)<br />

supports 26 public universities across the country in advancing<br />

payment of registration fees for poor students.<br />

The private sector also actively supports education through<br />

bursaries. A crowdfunding platform set up by Standard Bank, the<br />

Feenix Trust, raised more than R35-million in three years to support<br />

more than 1 000 students. The bank’s Ikusasa Student Financial Aid<br />

Programme (ISFAP) provides bursaries for students from families<br />

earning less than R600 000 per annum.<br />

Schools<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> has 2.8-million school pupils, many of whom are<br />

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

province’s results have a big bearing on how the nation fares in<br />

annual examinations.<br />

There is now near universal access to primary and secondary<br />

schooling and a new drive to enrol pre-school children in Grade R<br />


Council of Higher Education: www.che.ac.za<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Education: www.kzneducation.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

National Skills Authority: www.nationalskillsauthority.org.za<br />

has achieved a 70% success<br />

rate. The province has 1 689<br />

early childhood development<br />

centres.<br />

Transport is provided to<br />

350 schools, covering 59 000<br />

pupils, and 2 400 bicycles have<br />

been made available under the<br />

Shovakalula programme.<br />

A primary school in the<br />

Harry Gwala District was the site<br />

of the launch of an e-learning<br />

infrastructure programme that<br />

is intended to be rolled out<br />

to rural areas throughout the<br />

province. Digital access will<br />

allow pupils in remote areas<br />

to be connected to the best<br />

teachers in the province.<br />

The unbundling from the<br />

successful Curro group of a<br />

separate tertiary entity which<br />

listed on the JSE as Stadio<br />

Holdings is a good indicator<br />

of the growth of the private<br />

sector in education. Stadio<br />

currently has three institutions:<br />

Southern <strong>Business</strong> School,<br />

AFDA (the School for the<br />

Creative Economy) and the<br />

Embury Institute for Higher<br />

Education which has a campus<br />

in Musgrave, Durban. There are<br />

seven schools in <strong>KwaZulu</strong>-<strong>Natal</strong><br />

operating under Curro brands.<br />

Advtech, the other big<br />

private company in the sector,<br />

already has 27 tertiary campuses<br />

nationally, in addition to its<br />

78 schools operating under<br />

a variety of labels. Advtech<br />

operates 10 educational sites<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong>, including<br />

schools such as Crawford and<br />

Trinity House, a chefs’ school<br />

(Capsicum), three Varsity<br />

Colleges and the Design School<br />

for Southern Africa. ■<br />

45 KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong>


Development finance and<br />

SMME support<br />

Billion-rand plan to transform the sugar industry will benefit the SMME sector.<br />

The sugar industry’s R1-billion five-year plan to transform<br />

the sector will have positive spinoffs for small-scale<br />

growers and distributors.<br />

Contributions from millers and growers have allowed for sums<br />

of R165-million (transformation) and R60-million (Value Chain Masterplan)<br />

to be allocated as the first part of the scheme. National government<br />

supported these measures with initiatives of its own, including providing<br />

input vouchers to small-scale growers. The aim is to reach up to 250 000<br />

small-scale farmers (including the 21 000 contributing to the sugarcane<br />

value chain), in partnership with the private sector.<br />

The provincial government’s Sukuma 100 000 surpassed<br />

its target by creating 137 000 job opportunities in 2021, with<br />

all government departments participating in focussing on<br />

opportunities for youth employment.<br />

Examples of companies that received support under the<br />

project are Gelanison Agric, an agricultural initiative that produces<br />

high-value crops using the hydroponic system, and AdNotes, a<br />

telecommunications company which is 100% black and youth<br />

owned. The company received funding from the KZN Youth Fund and<br />

provides Internet services in the Ugu and King Cetshwayo Districts<br />

and eThekwini Metro.<br />

Operation Vula Fund is an SMME grant funding scheme run by the<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> Department of Economic Development, Tourism and<br />

Environmental Affairs (DEDTEA). A total of 961 applications to the value<br />

of R305-million have been approved to date.<br />

Funding from the National Department of Trade, Industry and<br />

Competition’s (dtic) Black Industrialist Programme and from the<br />

Industrial Development Corporation (IDC) secured 70% of Newcastlebased<br />

Boschpick Engineering for entrepreneurs Bongani Khumalo and<br />

Phillip Majali and their company Lipsobex. The IDC provides finance<br />

across a range of sectors from agriculture to tourism.<br />

The Small Enterprise Development Agency (Seda) is active in<br />

supporting entrepreneurs. Seda gives non-financial support through<br />


National Department of Small <strong>Business</strong> Development: www.dsbd.gov.za<br />

SA SME Fund: www.sasmefund.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />


Operation Vula Fund disburses<br />

grant money to SMMEs.<br />

training, assistance with filling in<br />

forms, marketing and creating<br />

business plans.<br />

In <strong>KwaZulu</strong>-<strong>Natal</strong>, Seda runs<br />

12 Incubators which either help<br />

new businesses get started or<br />

with the rehabilitation of existing<br />

enterprises. Three models are<br />

used: Technology Demonstration<br />

Centres (demonstration and<br />

training); Technology Incubators<br />

(where the focus is rehabilitation);<br />

Hybrid Centres, which combine<br />

elements of the other two models.<br />

The <strong>KwaZulu</strong>-<strong>Natal</strong> Incubators<br />

include ICT and construction<br />

(three centres each), furniture and<br />

hi-tech (two each) and chemicals<br />

and essential oils.<br />

Sappi is helping honey-makers<br />

make money. A project run jointly<br />

by Sappi and the African Honey<br />

Bee programme is supporting<br />

about 100 beekeepers in northern<br />

<strong>KwaZulu</strong>-<strong>Natal</strong> and encouraging<br />

them to invest in sources of<br />

income such as vegetable gardens<br />

that can keep their families going<br />

between honey harvests. A<br />

benefit to Sappi is that fires which<br />

used to be used as a method of<br />

smoking out bees has largely<br />

been eliminated, reducing the risk<br />

to Sappi’s plantation assets. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


SEDA<br />

Seda offices<br />

Seda contacts<br />


Provincial Office<br />

Koenie Slabbert - Provincial Manager<br />

Tel:<br />

Provincial<br />

Seda Limpopo<br />

+27 15 287<br />

Manager:<br />

Provincial<br />

2940<br />

Mr Cedric Mnguni<br />

Mopani Branch<br />

Fax: Physical<br />

Office<br />

+27 15 297 address: 4022 46 Essex Terrace,<br />

(located<br />

Essex Park<br />

in Tzaneen)<br />

Email: Ground Mr kslabbert@seda.org.za<br />

Koenie Floor, Slabbert: Block Provincial B, Westville 3629 Ms Maseje Nchabeleng: Branch<br />

2nd Tel: Manager Floor (031) Suite 6, 277 Maneo 9500 Building, | Email: 73 Biccard cmnguni@seda.org.za<br />

Street, Manager Polokwane 0700<br />

Postnet Tel: Suite +27 15 32287 Private 2940 Bag X 9307 Polokwane 0700 Tel: +27 15 306 6400<br />

Branch Fax: +27 Manager: 15 297 4022 Sibongile Sabela Fax: +27 15 307 2<strong>23</strong>3<br />

Seda Physical Email: Vhembe kslabbert@seda.org.za<br />

address: Branch 46 Essex Terrace, Email: Essex Park<br />

Mr Ground Marcus Physical Mukumela Floor, address: Block - Branch 2nd Floor B, Manager Westville 3629 mnchabeleng@seda.org.za<br />

Tel: Tel: +27 15 960 8700<br />

Nictus (031) Building 277 9500 | Email: ssabela@seda.org.za<br />

Physical address: 2nd Floor<br />

Fax: 086 634 8964<br />

68 Hans van Rensburg Street ABSA Building<br />

Email: mmukumela@seda.org.za<br />

Branch<br />

Old Polokwane Manager: Michael Zondo<br />

Mutual Building, Old Group Scheme Offices, Mphephu 13 Danie Road, Joubert Thohoyandou Street 7950<br />

Physical 0699 address: 283 Langalibalele Tzaneen Street<br />

Seda The Capricorn Tourism Branch Hub, 2nd Floor, Pietermaritzburg 0850 3201<br />

Mr Tel: Peter Capricorn (033) Maredi 264 - Branch 3100 Manager | Email: mzondo@seda.org.za<br />

Tel: (located +27 15 290 8720 in Polokwane) Waterberg Branch<br />

Fax: Branch Mr.<br />

+27<br />

Peter<br />

15 Manager: 290<br />

Maredi:<br />

8736<br />

Branch Dennis Manager Ndlovu (located in Mokopane)<br />

Email: Physical pmaredi@seda.org.za<br />

Tel: +27 15<br />

address:<br />

290 8720<br />

LOT 611<strong>23</strong>7, Via Verbena<br />

Mr Steve Botha: Branch Manager<br />

1st Veldenvlei, Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699<br />

Fax: +27 15 290<br />

Richards<br />

8736<br />

Bay 3900<br />

Tel: +27 15 492 9600<br />

Tel: (035) 901 2660 | Email: dndlovu@seda.org.za<br />

Seda Email: Waterberg pmaredi@seda.org.za<br />

Branch<br />

Fax: +27 15 491 7361<br />

Mr Steve Physical Botha address: - Branch 1st Manager Floor<br />

Email: sbotha@seda.org.za<br />

Branch Manager: Thembinkosi Kunene<br />

Tel: Nictus +27 15 Building 492 9600<br />

Physical address: Old Nedbank<br />

Physical address: 28 Bazley Street, Office 4<br />

Fax: 68 +27 Hans 15 491 van 7361 Rensburg Street Building<br />

Email:<br />

First<br />

Polokwane sbotha@seda.org.za<br />

Flood, Port Shepstone 4240<br />

40 Retief Street<br />

Old Tel:<br />

0699<br />

Nedbank (039) Building, 688 1560 40 Retief | Email: Street, Mokopane tkunene@seda.org.za<br />

Mokopane<br />

0600<br />

Seda Branch Mopani Manager: Branch Justice Shange<br />

Vhembe Branch<br />

Martin Physical Rafferty address: - Acting Branch 48 Margaret Manager Street<br />

(located in Thohoyandou) Sekhukhune Branch<br />

Tel: Ixopo +27 153276<br />

306 6400<br />

Fax: Mr +27 Marcus 15 307 Mukumela: 2<strong>23</strong>3 Branch (located in Groblersdal)<br />

Tel: (039) 834 7100 | Email: jshange@seda.org.za<br />

Email: Manager mrafferty@seda.org.za<br />

Mr Sabelo Ntshangase<br />

27<br />

Branch<br />

Peace Tel: +27 Street,<br />

Manager: 15 960 1st Floor, 8700Thanda Prosperitas<br />

Khathi<br />

Building, Tzaneen Tel: +27 0850 13 262 9430<br />

Physical Fax: +27 15 address: 962 4285 94/96 Murchison Fax: Street +27 13 262<br />

Seda Sekhukhune Branch<br />

Ladysmith Email: mmukumela@seda.org.za<br />

3371<br />

Email: sntshangase@seda.org.za<br />

Mr Sabelo Ntshangase - Branch Manager<br />

Physical address: Bindulavhathu Physical address:<br />

Tel: Tel: +27 (036) 13 262638 94309780 | Email: tkhathi@seda.org.za<br />

Email: Office sntshangase@seda.org.za<br />

Building<br />

Mutual Building<br />

Bareki Branch 3rd Mall, Floor Shop Manager: No. 20B, Dumisani Cnr Chris Wild Zikalala and Van Shop Riebeek 4 and Street, Office Groblersdal 10, 12 0407<br />

Physical Thohoyandou address: 28 Scott Street Hereford Street<br />

Newcastle 0950 2940<br />

Groblersdal<br />

Tel: (034) 328 0620 | Email: dzikalala@seda.org.za<br />

0470<br />

We have built a strong team in the province made up of 16 <strong>Business</strong><br />

Advisors, two Regional Facilitators and five Information Officers who have<br />

Our goal the responsibility is to make of measurable making measurable differences differences in the in the businesses businesses that<br />

we assist. they assist. The Seda This team team of <strong>Business</strong> of <strong>Business</strong> Advisors Advisors works works closely closely with a team with of<br />

a team<br />

carefully<br />

of carefully<br />

selected<br />

selected<br />

service providers<br />

service<br />

who<br />

providers<br />

possesses<br />

who<br />

expert<br />

posses<br />

knowledge<br />

expert<br />

in<br />

knowledge in different areas of business and industry sectors.<br />

different functional areas of business and industry sectors.<br />

For more information contact contact us at: us 015 at 287 031 2940 277 9500 or visit or our visit website: our website: www.seda.org.za www.seda.org.za<br />


“Together advancing small enterprise development”


Banking and financial services<br />

Financing of infrastructure is becoming a priority.<br />

The launch by Sanlam Investments of a Sustainable Infrastructure<br />

Fund is a sign of the times. The South African state and<br />

the Provincial Government of <strong>KwaZulu</strong>-<strong>Natal</strong> have promised<br />

a huge infrastructure drive but in the context of climate<br />

change caused by the use of fossil fuels, the investment community<br />

is increasingly putting emphasis on sustainability. Sanlam Group will<br />

invest R6-billion in the fund and aims to attract a further R5-billion from<br />

institutional investors. Investments will be made in housing, transport,<br />

health, water, waste, communication, conventional energy and renewable<br />

energy, a fast-growing sector with enormous potential.<br />

The Brics New Development Bank has made a $200-million loan<br />

for the expansion of the container terminal in Durban. The busy port<br />

is currently stretched beyond capacity and waiting time for trucks<br />

can be extremely long.<br />

Activist groups in Durban’s southern suburbs are opposing<br />

the loan and the expansion, saying that further development will<br />

increase pollution in the area and lead to even more dangerous<br />

traffic congestion.<br />

Up the coast at Richards Bay, the World Bank’s International<br />

Finance Corporation (IFC) has committed $2-million to a feasibility<br />

study on the construction of a liquefied natural gas (LNG) storage<br />

and regasification terminal. The study’s costs are shared with Transnet<br />

and a private investor will be sought if the feasibility study is positive.<br />

Aspen Pharmacare is a speciality pharmaceuticals company with<br />

a presence in more than 50 countries and nearly 9 000 employees.<br />

The company’s headquarters are in La Lucia Ridge north of Durban.<br />

Aspen’s decision to register a second listing on one of South Africa’s<br />

newest stock exchanges (the primary listing remains on the JSE) was<br />

a boost for A2X, which set out to attract secondary listings.<br />

Of the four new exchanges that South Africa has seen since 2017,<br />

ZARX has been suspended and 4AX has rebranded as the Cape Town<br />

Stock Exchange. Equity Express Securities Exchange (EESE) trades in<br />

Black Economic Empowerment (BEE).<br />

Together with real estate and general business, the financial sector<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> accounts for 18% of gross domestic product (GDP).<br />


Association for Savings and Investment South Africa: www.asisa.org.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

South African Institute for Chartered Accountants: www.saica.co.za<br />


Aspen has launched<br />

a secondary stock<br />

exchange listing.<br />

Credit: Unsplash<br />

Big strides have been made<br />

in providing banking services<br />

to the previously unbanked<br />

but there is still a long way<br />

to go. The widespread use of<br />

smartphones is creating new<br />

opportunities for banks and<br />

other financial service providers<br />

to further close the gap.<br />

Standard Bank introduced<br />

the low-cost MyMo account<br />

in <strong>KwaZulu</strong>-<strong>Natal</strong> in 2020. With<br />

free electronic transactions,<br />

unlimited card swipes and a low<br />

monthly fee, the MyMo account<br />

is ideal for low-income earners,<br />

micro-entrepreneurs and the<br />

poor. Customers do not have to<br />

visit branches to sign up for the<br />

account. They can take a selfie<br />

on the mobile app. ■<br />

KWAZULU-NATAL BUSINESS <strong>2022</strong>/<strong>23</strong><br />


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