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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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KWAZULU-NATAL

BUSINESS

2022/23 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE KWAZULU-NATAL PROVINCE

JOIN US ONLINE

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

E S T 1 8 5 6

DURBAN CHAMBER

OF COMMERCE AND

INDUSTRY NPC

ABOUT THE

COMMERCE

The Durban Chamber o

is the oldest and larges

eThekwini business com

The Durban Chamber d


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The city of

Durban (eThekwini

Municipality) is South

Africa’s second most

important economic

region

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Extensive first-world

road, rail, sea and air

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Dube

TradePort

and King

Shaka

International 1

Airport - 60-

year Master

Plan - driving

growth of

aerotropolis,

or airport

city

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Rated in top 5

‘Quality of Living’

cities in Africa and

Middle East by

Mercer Consulting in

2015

Named one of the

New 7 Wonders Cities

by the Swiss-based

New 7 Wonders

Foundation in 2014

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BUY LOCAL

INVEST LOCAL

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Let’s come together and heal as a nation.

Let’s focus on Renewing, Restoring and Rebuilding

successful partnerships and investment opportunities so we

can get back to promoting our city as the ideal destination

for business and pleasure to the rest of the world.

Your support coupled with our world-class infrastructure,

innovative business environment and ever evolving

investment opportunities, means we can get back to

‘connecting continents’ in no time.

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Tel: +27 31 311 4227

Email: invest@durban.gov.za

web: invest.durban

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E S T 1 8 5 6

DURBAN CHAMBER

OF COMMERCE AND

INDUSTRY NPC

IN BUSINESS FOR A

BETTER WORLD

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

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

@DurbanChamber

@DurbanChamber

Durban Chamber of Commerce and Industry NPC

@durbanchamber


ABOUT THE DURBAN CHAMBER OF

COMMERCE AND INDUSTRY NPC

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

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

eThekwini business community.

The Durban Chamber does this by:

policy decisions that affect

the interests of business

(labour laws, tax and business

with both private and public sector.

• Offering business support

services and advice (CIPC,

Human Resources/Capital,

relevant to decision-making

process.

more); and

CLAIM YOUR EXCLUSIVE BUSINESS BENEFITS

InBusinessForABetterWorld


CONTENTS

CONTENTS

KwaZulu-Natal 2022/23 Edition

Introduction

Foreword 7

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

Special features

Regional overview of KwaZulu-Natal 8

Stability has been restored after a turbulent 2021 and companies

are looking at investing in increasing capacity. Provincial and

national government are ramping up spending on infrastructure.

Private investments in ports are

gathering speed 14

Upgrades at KwaZulu-Natal’s two big ports will mean South Africa

is better prepared for the next commodity boom.

Economic sectors

Agriculture 28

Packaging firm expands on increased agricultural production.

Forestry and paper 30

A campaign to plant 10-million trees has begun.

Mining 31

Operations at Richards Bay Minerals have resumed.

Engineering 32

UCL’s expansion included three large projects.

Oil and gas 33

South Africa’s largest crude oil refinery is likely to come

on the market.

KWAZULU-NATAL BUSINESS 2022/23

4


DURBAN ICC AFRICA’S LEADING CONVENTION CENTRE

The Durban International Convention

Centre (Durban ICC) prides itself on

being leading venue for meetings,

business events, conferences and

exhibitions on the African continent.

However, this is not their own opinion,

but rather the overwhelming feedback

received from their clients who have

voted it in the top 1% of Convention

Centres worldwide, as well as “Africa’s

Leading Meetings and Convention

Centre” no fewer than 17 times!

The Durban ICC is a versatile venue

of enormous dimensions, flexible

enough to meet any need, no matter

how extraordinary. The Centre offers

the largest column-free, multipurpose

event space on the African continent.

International and national conventions,

exhibitions, sporting events, concerts

and special occasions of every kind

can be accommodated. Flexibility and

versatility are key factors in the design

of this state-of-the-art, technologydriven

Centre. The Centre also offers

a range of innovative solutions such

as Live-streaming events, Remotepresentation

events, Hybrid events,

and Video-on-Demand.

The Durban ICC’s highly experienced

and friendly team will ensure that

your event is seamlessly executed

giving you complete peace of mind.

Providing exceptional customer

service remains the heartbeat of the

Durban ICC, striving to ensure that

every delegate who walks through

the five-star facility has a memorable

experience.

Delegates visiting the Centre can

look forward to superb standards of

culinary excellence and hospitality.

As part of the Durban ICC’s gourmet

evolution over the past decades in

the industry, they are completely

reinventing their culinary offering

in order to showcase some of

Durban’s authentic African Cuisines.

Furthermore a wide range of new

innovative packages have been

designed to meet the unique needs

of each target market, at the best

possible rates.

Demonstrating its commitment to

quality, the Durban ICC is five-star

graded by the Tourism Grading

Council of South Africa and maintains

its ISO9001, ISO14001 and ISO22000

certifications ensuring the highest

international standards in Quality

Management, Environmental

Responsibility, Food Safety and Health

and Safety.

The DURBAN ICC offers you first-world

convenience and a proudly African

meetings experience. The Centre is

fully Wi-Fi enabled and connectivity

is complimentary to its delegates and

guests.

Durban ICC Fast Facts

• Located in Durban, known as

South Africa’s entertainment

“playground”.

• Durban International Convention

Centre (Durban ICC) comprised

of the Durban ICC Arena and the

Durban Exhibition Centre.

• Voted “Africa’s Leading Meetings

and Conference Centre” by the

World Travel Awards no fewer

than 17 times and continuously

strives to deliver excellent service

• Largest flat floor, column-free

multi-purpose event space in

Africa.

• Ranked in the world’s Top 15

Convention Centres by the

International Association of

Congress Centres (AIPC).

• The Centre is located 30-minutes

from the King Shaka International

Airport and over 3,600 Hotel

rooms are within a 10-minute walk

of the Centre.


E S T 1 8 5 6

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

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

eThekwini business community.

The Durban Chamber does this by:

policy decisions that affect

the interests of business

(labour laws, tax and business

• Offering business support

services and advice (CIPC,

Human Resources/Capital,

more); and

with both private and public sector.

relevant to decision-making

process.

CONTENTS

Energy 36

eThekwini plans to sign up independent power producers.

Construction and property 37

R6-billion business and logistics park for Umhlanga.

Water 38

Bulkwater schemes are coming on line.

Tourism 40

Resumed flights augur well for the economy.

ICT 41

Infrastructure has to be rebuilt after severe flooding.

Manufacturing 42

Sappi’s giant plant at Umkomaas is set to grow again.

Education and training 44

New streams are being introduced at schools.

Development finance and SMME support 46

Billion-rand plan to transform the sugar industry will benefit the

SMME sector.

Banking and financial services 48

Financing of infrastructure is becoming a priority.

References

Key sector contents 22

Overviews of the main economic sectors of KwaZulu-Natal.

rate

r

connectedKZN@mtn.com

KWAZULU-NATAL BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN KWAZULU-NATAL

2022/23

KWAZULU-NATAL

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE KWAZULU-NATAL PROVINCE

JOIN US ONLINE

2022/23 EDITION

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

DURBAN CHAMBER

OF COMMERCE AND

INDUSTRY NPC

ABOUT THE DURBAN CHAMBER OF

COMMERCE AND INDUSTRY NPC

ABOUT THE COVER:

Top left then clockwise to the right: Mark Harpour on Unsplash; Mondi;

International Convention Centre; Transnet Port Terminals; Bell Equipment;

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


KwaZulu-Natal Business

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

FOREWORD

Credits

Publishing director:

Chris Whales

Editor: John Young

Managing director: Clive During

Online editor: Christoff Scholtz

Designer: Tyra Martin

Production: Yonella Ngaba

Ad sales:

Gavin van der Merwe

Sam Oliver

Tahlia Wyngaard

Tennyson Naidoo

Gabriel Venter

Vanessa Wallace

Shiko Diala

Administration & accounts:

Charlene Steynberg

Kathy Wootton

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print

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.

To complement the extensive local, national and international

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

www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is

also available through our monthly e-newsletter, which you can subscribe

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

titles that cover all nine provinces, our flagship South African Business

title and the addition to our list of publications, African Business, which was

launched in 2020. ■

Chris Whales

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

DISTRIBUTION

KwaZulu-Natal Business is distributed internationally on

outgoing and incoming trade missions, through trade and

investment agencies; to foreign offices in South Africa’s

main trading partners around the world; at top national

and international events; through the offices of foreign

representatives in South Africa; as well as nationally and

regionally via chambers of commerce, tourism offices, airport

lounges, provincial government departments, municipalities

and companies.

Member of the Audit Bureau

of Circulations

COPYRIGHT | KwaZulu-Natal Business is an independent publication

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

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

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

permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Bosch Holdings; Department of Forestry, Fisheries

and the Environment; Dormac; Dube TradePort; Engie Peakers

Operations; Enterprise iLembe; Hesto Harnesses; Hillside Aluminium;

KZN Department of Education; RBCT; Richards Bay Minerals; SA

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

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

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

ISSN 1995-1310

Canegrowers Assocation; Sappi; Sapref; The Brickworks; Transnet

National Ports Authority; Qatar Airways; UCL Tetra Pak; Umgeni Water.

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

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

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

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

completeness of the information. Global Africa Network will not accept

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

any reliance placed on such information.


A REGIONAL OVERVIEW OF

KWAZULU-NATAL

Stability has been restored after a turbulent 2021 and companies are looking

at investing in increasing capacity. Provincial and national government are

ramping up spending on infrastructure. The province’s ports are the focus of

programmes designed to encourage private investment.

By John Young

In 2021, citizens and businesses in KwaZulu-Natal

were starting to get used to the disruptions caused

by Covid-19 when in July, a series of riots broke out.

The other province hit by riots was Gauteng.

Thankfully the riots lasted less than a week but,

like Covid-19, they brought tragedy in their wake.

Some have claimed that the riots were linked to

the court case of former President Zuma, being

pursued in various cases linking him to alleged

corruption during his terms of office as president

and deputy president. While it is true that many

of his supporters took to social media to stoke up

violent sentiment, nothing happened at the courts

where Zuma was appearing or at the jail to which

he had been consigned. Foreign truckers were

attacked on the N3 (a recurrence of earlier attacks)

and shops were looted and burnt.

The resilience of KwaZulu-Natal residents and

business owners was tested. Many insurance claims

have been lodged but some businesses, such as

the packaging business burnt to the ground in the

course of the riots, have closed their doors.

Companies in the logistics and storage sector

were boosted by the move to home shopping that

came with the Covid-induced lockdowns. This is a

trend that had been growing for some time and

that was accelerated by the pandemic.

On the energy front, President Cyril Ramaphosa’s

announcement that private investors could

generate up to 100MW without having to go

through a tangled web of licence procedures was

a boon for the province’s larger companies. The

likes of Sappi and Mondi produce great quantities

of biomass waste and all of the province’s sugar

producers are potentially generators of electricity.

Many of them already are producing power for their

own use, now they can sell it to the grid.

The signing of a long-term contract for energy

supply by Eskom and South32 for its Hillside

Aluminium smelter was another very welcome step

KWAZULU-NATAL BUSINESS 2022/23

8


SPECIAL FEATURE

King Shaka International Airport.

in the energy field. The deal expires in 2031.

The first steps in a move by national government

to partner with the private sector in boosting

efficiency at ports were taken in 2022: deals were

signed at the Port of Durban and at Richards Bay.

A 15-year concession for the loading of grain at

one of Durban’s agricultural terminals was won by

Afgri, one of South Africa’s biggest agricultural firms.

Afgri will deal with the operation and maintenance

of all landside operations, and the deal includes

a similar arrangement at East London. The other

two terminals in Durban are operated by SA Bulk

Terminals and Bidvest Bulk Terminals.

Tourism is a key sector in the KwaZulu-Natal

economy and provides livelihoods to many

thousands of families in urban and rural areas. The

closing of borders brought real hardship to many

areas. The first half of 2019 brought in a total of

R14.4-billion in tourist spending and the year as a

whole delivered an increase of 8% in international

visitor numbers. The newly-created Cruise Ship

Terminal at the Port of Durban was ready to

welcome guests, but it would be at least a year

before cruises could resume.

Investment

Between May 2019 and February 2020, inward

investment commitments to the value of more than

R15-billion were made. These included amounts

pledged in most of the priority sectors identified by

the provincial government, namely agro-processing,

healthcare, manufacturing, renewable energy and

tourism and property development.

Other priority sectors include aloe processing,

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

the Oceans Economy.

In his 2021 State of the Province Address (SOPA),

KwaZulu-Natal Premier Sihle Zikalala announced that

through the two SEZs and investment drives the

province had secured the following projects:

• Coconathi, a R50-million agro-processing factory

specialising in healthcare products, Dube

TradePort

• Ubuhle Towels, a R130-million investment has

created 200 permanent jobs in Richards Bay

• Ndumo Retail Development, a R100-million

investment project in a shopping centre, taxi

rank and service station. The project is expected

to create 400 construction jobs

• Vodacom South Africa, R1-billion 5G network

rollout in Durban. The company also spent

R320-million in 2020/21 on building new longterm

evolution (LTE) base station sites in urban

and rural areas

• Unitrade, a R105-million investment for the

manufacture of Ford Ranger and VW Amarok

components, KwaDukuza

• The Frymax potato chips company, a R380-

million investment, 600 new jobs created in

Verulam

• Goodlife Foods, a R70-million investment

• Hesto Harnesses, a R900-million investment in

support of a big order from Ford Motor Company

Southern Africa which will support 3 300 jobs,

Stanger

These investment projects will produce a total

3 435 permanent jobs. Beside these projects, the

provincial government is working on an investment

pipeline, through the SEZs, of R22-billion.

Special Economic Zones (SEZs)

The Special Economic Zones (SEZs) at Richards

Bay and King Shaka International Airport (the

Dube TradePort) are key components of the

strategy of attracting investors to the province.

9 KWAZULU-NATAL BUSINESS 2022/23


Agro-processing of the province’s abundant natural

resources is a major economic sector and the source of

many jobs. Pioneer Food’s Sasko bakery at Shakaskraal

north of Durban is the primary source of bread for

the company in the province, and its distribution hub.

Credit: Enterprise iLembe

Dube TradePort attracted R7-billion between

2012 and 2019 and the same amount is expected

to accompany the development of Phase 1A

and Phase 1F of the Richards Bay Industrial

Development Zone (RBIDZ). Investors include

edible oils manufacturer Wilmar Processing SA,

which is investing more than R1-billion in a plant,

and Elegant Afro Line, which will spend about

R900-million on its chemicals plant.

Milestones have been reached in the plan for

creating a provincial Clothing and Textile SEZ. A

business case has been completed by units within

the provincial government and land at Ezakheni

(Ladysmith) in the uThukela District has been identified

and secured. Dube TradePort will be the SEZ operator

and R780-million in investments has been pledged by

companies keen to relocate to the SEZ.

To spread the benefits of the SEZ, the concept

of “The Textile Belt” will be followed. The corridor

approach will leverage comparative advantages

of various regions in the clothing and textile

value chain. This belt will start from Newcastle

and link Ladysmith, Mooi River, Pietermaritzburg,

Hammarsdale, Durban, Isithebe and the

Dube TradePort to the Richards Bay Industrial

Development Zone.

Infrastructure

The province’s existing infrastructure, good soils

and fine weather provide a solid base for future

growth. KwaZulu-Natal already has significant

capacity in heavy and light manufacturing,

agro-processing and mineral beneficiation, all

of which is supported by South Africa’s two

busiest ports (Richards Bay and Durban), the

country’s most active highway (the N3), a

modern international airport and pipelines

that carry liquids of all types to and from

the economic powerhouse of the country

around Johannesburg in the interior.

Sappi’s dissolving pulp mill at Umkomaas

south of Durban is one of the province’s most

significant industrial sites as it produces huge

quantities of a material that is used in viscose

staple fibre, which in turn is used in clothing

and textiles. Together with production

volumes from Sappi’s mill in neighbouring

Mpumalanga province, the company is the

world’s largest manufacturer of dissolving

pulp. Mondi is the province’s other global

giant in forestry, paper and packaging.

Toyota and Bell Equipment are dominant

players in the automotive sector.

Oceans Economy

KwaZulu-Natal province, has a long coastline

that stretches from the Mtamvuna River in the

south to the Isimangaliso Wetland Park in the

north. The province’s contact with the sea has

brought obvious benefits: fishing, fine beaches

enjoyed by millions of tourists and two great

ports. These ports export vast quantities of

minerals (mostly through Richards Bay) and

manufactured goods (Durban) and serve as an

important conduit for imports of all sorts. The

Richards Bay Coal Terminal exports massive

quantities of coal while the Port of Durban is

the busiest port in Africa.

However, planners want to expand the

economic benefits that the ocean can bring.

Strategies to grow the Oceans Economy dovetail

with ongoing projects to boost the capacity of

the province’s ports and to explore for gas and

oil in the Indian Ocean. If oil rigs were to start

visiting the KZN coastline on a regular basis, the

ship-repair industry would grow exponentially.

The Oceans Economy is one of the focus

areas that has been chosen by national

government to be part of Operation Phakisa,

a focused, goal-driven attempt to jump-start

a specific economic sector. Overall, Phakisa

intends creating a million jobs by 2033 and

injecting R177-billion into national GDP.

KWAZULU-NATAL BUSINESS 2022/23

10


SPECIAL FEATURE

The decision to build a cruise-ship terminal at the

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

that is in line with an “Oceans Economy” approach.

Geography

The mixed topography of the province allows for

varied agriculture, animal husbandry and horticulture.

The lowland area along the Indian Ocean coastline

is made up of subtropical thickets and Afromontane

Forest. High humidity is experienced, especially in

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

centrally-located Midlands is on a grassland plateau

among rolling hills. Temperatures generally get colder

in the far west and northern reaches of the province.

The mountainous area in the west – the

Drakensberg – comprises solid walls of basalt and

is the source of the region’s many strongly running

rivers. Regular and heavy winter snowfalls support

tourist enterprises. The Lubombo mountains in the

north are granite formations that run in parallel.

Regions

KwaZulu-Natal has 10 district municipalities and a

metropolitan municipality, the most of any province

in South Africa. In economic terms, the province

offers diverse opportunities.

Southern region

This area is the province’s most populous. The

city of Durban has experienced booms in sectors

such as automotive, ICT, film and call centres.

The promenade now reaches all the way to the

harbour and the Point development will benefit.

Major investments are taking place at the Port of

Durban with the current centrepiece being the

Durban Cruise Terminal. The Container Terminal is

also undergoing an extensive overhaul. Durban’s

conference facilities are well utilised, but many

opportunities still exist in chemicals and industrial

chemicals, food and beverages, infrastructure

development and tourism. Further south, Margate’s

airport and Port Shepstone’s beachfront are assets.

Western region

Also known as the Midlands, this is a fertile

agricultural region which hosts the popular

annual Royal Show. It produces sugar cane, fruit,

animal products, forestry and dairy products.

Pietermaritzburg is the provincial capital and

home to a major aluminium producer along

with several manufacturing concerns, including

textiles, furniture, leather goods and food.

The city has good transport links along the N3

national highway, excellent schools and a lively

arts scene. The Midlands Meander is a popular

tourist destination.

Eastern region

Although most of this area is rural, Richards Bay is

one of the country’s industrial hotspots because

of its coal terminal, port and aluminium smelters.

The Richards Bay Industrial Development

Zone is a major economic node and with the

possibility of a power plant being built, the

RBIDZ could become an energy hub. Mining

is an important sector in this region. The other

major urban centre is Empangeni which has

several educational institutions. The King Shaka

International Airport is adjacent to the Dube

TradePort, a Special Economic Zone (SEZ) which

is attracting investors.

Northern region

The economic powerhouse is Newcastle in the

north-west: coal-mining, steel processing and

manufacturing are major activities. Some old coal

mines are being reopened by new coal companies

to cater for the country’s power stations’ demand

for the fuel. Game farms, trout fishing and hiking

are part of an attractive package for tourists, and

Zululand is a popular destination for cultural

experiences. The region is rich in Anglo-Boer

War history which includes battle sites such as

Islandlwana and Rorke’s Drift. ■

The province’s substantial rivers flow from the

Drakensberg mountains to the Indian Ocean.

11 KWAZULU-NATAL BUSINESS 2022/23


FOCUS

MTN invests in

KwaZulu-Natal

Keeping the province connected, even during times of crisis.

MTN SA is investing

in modernising its

existing network

and is deploying

new network infrastructure across

the KwaZulu-Natal Province. The

R700-million investment, which

is an addition to the R500-million

invested in 2021, is going toward

MTN’s “Modernisation of Network

South Africa project” (MONZA)

Matthew Khumalo, as well as expanded rural reach,

KZN General Manager 5G expansion and restoration of

Regional Operations vandalised network infrastructure.

The KZN investment forms

part of plans to modernise the entire MTN network,

68% of which has already been completed nationally.

An additional 1 350 sites are still to be finalised across

South Africa by the end of 2022. The project will

increase network coverage and improve throughputs

and customer experience in the region. Previously

unconnected areas in the province will have a

broadband platform for the first time.

MTN has over 1 400 active 5G sites across the

country. The extension of MTN’s 5G connectivity in

KwaZulu-Natal has seen over 100 live 5G sites added

and more are planned for 2022.

A vital component of the deployment of 5G is

the emphasis on previously underserved areas. The

company is not only deploying 5G in ultra-urban

areas. In recent months, MTN has rolled out 5G in

areas such as Chatsworth and uMhlanga. Urban areas

such as Pietermaritzburg and Durban central have

also received attention.

devastating consequences on business operations and

in emergencies. MTN urges community members across

the country to continue being vigilant and report any

incident of vandalism and theft at network towers.

In 2020 the company began its optimisation and

resilience programme on backup power and security.

The programme is aimed at stabilising the network.

Some of the actions taken include beefing up security

significantly, hiring the private security company

Bidvest, installing CCTV and the introduction of cement

and steel safehouse carriages.

The heavy rains in KwaZulu-Natal caused

widespread infrastructure damage and power outages

resulting in over 500 MTN sites going down in the region.

Due to the serious nature of the outages, MTN activated

contingency plans for site restoration. MTN also donated

a total of R1-million to the flood-relief efforts. To assist

families and friends to keep in touch during this trying

time MTN also provided a free SMS bundle, for 50 SMSs

valid for three days, to all KwaZulu-Natal customers.

We rerouted traffic and put 190 generators at

numerous sites to bypass this part of the fibre. This

would have impacted over 200 000 customers.

MTN also enabled functionality on the mobile

payment app, MoMo, which allowed users to donate

to the flood-relief efforts. The funds go directly to Gift

of the Givers in support of their efforts in the region. ■

Staying connected

Network towers keep customers connected. If they

don’t work, the network doesn’t work and South

Africans will have no network signal. This can have

KWAZULU-NATAL BUSINESS 2022/23


MTN – trusted by businesses

and government

FOCUS

Helping students and healthcare workers connect to improve service delivery.

As an official mobile provider to SA

government, MTN Business has been key

in driving several government initiatives.

As South Africa’s and Durban’s best network,

more businesses and government entities

are showing an interest in our services.

Through MTN Business, we have been

connecting more enterprise clients, particularly

government entities, thanks to the National

Treasury’s RT15.

In 2021, the National Treasury RT15 bid-evaluation

committee appointed MTN SA as a service provider to

government, through its new mobile communication

services contract, known as RT15-2021.

The RT15-2021 transversal contract allows for

all entities of state to utilise the contract for mobile

communication services, which will further assist

with cost containment.

The scale of the government’s requirements has

allowed MTN to develop industry-leading systems

and innovative pricing and products that will not

only add value to the state but will also significantly

improve on existing mobile telecommunications

service delivery. This also allows for a high degree of

control of spending by the individual entities.

Education and health

MTN Business’s cost-effective and

quality solutions have enabled remote

learning for thousands of South African

students during the lockdown.

MTN Business has also aided state

employees to collect revenue quickly

and effectively, courtesy of the leading

technology provider’s extensive range

of digital solutions and connectivity

products. On revenue collection, the

state is enabled with the necessary

technology tools to improve the lives of South

Africans through provision of essential services.

Another area of importance is strong health

services in South Africa and MTN Business has

played a key role in assisting this sector.

Access to uncapped data is not only

available to healthcare workers but is also

available to other state departments that sign

up with MTN Business.

Doing more

MTN Business is committed to doing even

more to help government improve the lives of

South Africans.

There are big plans to partner with more state

entities and departments to help them improve

their operations with cutting-edge and robust

digital solutions.

This is because South Africans deserve the

benefits of a modern connected life and MTN

Business is proud to be working with the government

to deliver this.

13

KWAZULU-NATAL BUSINESS 2022/23


FOCUS

Two unique offerings

As part of its bid to empower the nation, MTN

Business has developed two unique offerings that

are available to qualifying state employees to enjoy:

• Uncapped data with no Fair Usage Policy (FUP)

• Uncapped Closed User Group (CUG) minutes

• Uncapped Closed User Group (CUG) SMSs

• Voice minutes to call other networks

• Variety of smartphones

• Enterprise Sharing is a customisable and scalable

solution that lets state institutions size their

shared voice, data, Closed User Group voice

usage and SMS bundles at cost-effective rates.

Key benefits of MTN Enterprise Sharing include:

Standard billing: removes the need for complex

review processes

Improved scalability: additional users can be

added at no extra cost

Top-up: users can use their own money once their

allocation is finished

All-in-one: personal and business usage happens

on the same SIM and device

Separate limits: if you max out your limit in one

area, it does not affect your other resources

Simple invoicing: each department will receive a

single invoice that covers all employees

Enterprise Sharing also comes in three forms:

Services-only, device-only and both services and device.

Business All Day

The second solution is called Business All Day,

and lets users pay for the resources they use on a

monthly basis. This package is based on flat rates

that are set for voice, data, SMS and Closed User

Group voice usage.

Government entities can also configure spend

limits for each user and can monitor and manage

these at an institutional level. Users get access to a

selection of services on demand and can monitor

their own spending limits through alerts.

Both of these offerings will involve MTN

Business splitting the state employee’s SIM card into

an enterprise wallet and a personal wallet, with the

state institution allocating resources and managing

the enterprise wallet.

The personal wallet is then the responsibility of

the user and is what they will use for their non-work

mobile costs.

These products are available through a

standardised billing structure that is scalable and

simple to manage. ■

MTN Enterprise Sharing can provide each

department up to 47% more value for the same

spend, saving state entities a lot on communication

spend while still striving to enable service delivery

to all citizens.

KWAZULU-NATAL BUSINESS 2022/23

14


FOCUS

Helping small business

get connected

MTN’s new Flagship store at Gatemax allows SMME

owners to experience the latest in technology.

Customers can get information and see demonstrations

of a wide range of 5G services in-store:

• Cloud solutions

• Managed networks

• Unified communications

• Security as a service

• Enterprise mobility

• Software as a service

• Mobile solutions

• IOT

Two dynamic new stores have been added to

MTN’s KwaZulu-Natal range, offering state-ofthe-art

innovation and services at the Pavilion

Shopping Centre and Gatemax in Umhlanga.

Umhlanga

MTN opened the doors to its flagship Enterprise Business

Unit (EBU) store in Gatemax on 1 April 2022. This MTN

store is dedicated to SMMEs, where both new and

existing clients come to experience a range of ICT

solutions to meet their business and personal needs.

The first of its kind in South Africa, this store boasts

solution stations where our enterprise and consumer

clientele can interact with our latest products and services.

SMMEs can book and utilise any of the available

meeting rooms or hot desk workstations should they

require a venue for a meeting. This provides an attractive

solution to alleviate some of the impact on business

operations during load-shedding.

Experiencing Centre

Our aim is for this store to be an Experiencing

Centre. It will showcase MTN’s latest products and

services with live demo units for both Enterprise and

Consumer clientele.

If customers require a venue for a meeting, we

encourage them to have their meetings at the store so our

customers (or potential customers) can experience our

products. You can contact the store to book a boardroom.

This idea of experiencing the product will give added

value in that our Enterprise customers will be able to

experience our products before purchasing. It will also

serve as a learning platform to new solutions that we

have on offer, that could add value to their business.

Consumer customers

The store will still have all the type of service a

consumer customer has come to expect. There will be

dedicated counter spaces for consumers and they will

receive the same service they would at any other MTN

store. We have enhanced the consumer experience by

adding a dedicated counter for our Fintech solution,

MoMo, in the store.

The sales and distribution team have done

outstanding work on this store, and MTN is looking

forward to them rolling out this experience to the rest

of the regions. If you are ever in Umhlanga, stop by this

masterpiece and enjoy the experience. ■

15

KWAZULU-NATAL BUSINESS 2022/23


Leading digital solutions

for Africa’s progress

Ambition 2025 underpins MTN’s new strategy to expand

across many platforms and drive growth across the continent.

MTN has, over the years, been connecting millions of

South Africans. Currently, MTN shares the benefits of

a modern connected life with 33-million customers

across South Africa.

Our “Ambition 2025: Leading digital solutions for

Africa’s progress” is driving accelerated growth and

faster deleveraging, positioning MTN for greater

relevance to 2025.

Our brand refreshed is inspired by our new strategy,

Ambition 2025. MTN is ushering in a new look that is

aligned to our evolution from a telecommunications

company to a technology company underpinned

by one simple, consistent, yet striking brand.

As a platform business we build digital platforms

that enable Africa’s progress across the telecom,

fintech, fibre-data, API and content and

messaging ecosystem.

The new brand identity is modern, simple,

bold and digitally dynamic. It kicks off with a

provocative and simple question, “What are we

doing today?”

With a clear and concise brand strategy that

Opportunity + Energy = Progress, MTN understands

that to truly unlock the full benefits and potential of

the digital world people require a combination of

drive, progressive thinking and the right tools.


Bill

Thrive with

productivity

that is

always on

MTN Business Work from home solutions

Doing works everywhere—thanks to a range of MTN Business hybrid connectivity

solutions designed to reduce the cost of remote working and to ensure team connectivity.

Build your bundle with any of our offerings today

SIP

Trunking

Direct

Team

Routing

Fixed

LTE

SD-WAN

Reverse

URL

APN

Perimeter

Antivirus

Exchange

Hosted

MS Office

365

Fixed Voice

Secure Broadband

Mobility

Security

Cloud

So. What are we doing today?

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


SPECIAL FEATURE

Private investments in ports

are gathering speed

Upgrades at KwaZulu-Natal’s two big ports will mean South Africa is better

prepared for the next commodity boom.

Exports from the Hillside Aluminium smelter keep cranes busy on the docks. Credit: Hillside Aluminium

A

sharp spike in commodity prices in 2021

meant that the South African government

collected R120-billion more in tax

revenue than it had thought it would.

But it could have been much more.

The country’s ports are not as efficient as

they might be, and to address this the National

Department of Public Enterprises has announced

a plan to bring private investors into port and

logistics operations to a greater extent. Opening

third-party access to the country’s freight rail

network is part of the same plan.

Transnet National Ports Authority (TNPA) is

on a path to become an independent subsidiary

of the state entity Transnet. This will enable it to

partner more efficiently with private companies.

Plans have been presented for turning the

Port of Durban, already a large and busy harbour,

into a “super terminal” that would deal with more

volumes of cargo than any other harbour in Africa.

Private investors are being encouraged

to investment an amount of R100-billion into

the port in the next decade. In early 2022, two

companies stepped up.

Dormac Marine Engineering has renewed its

leases and is undertaking investment in expanding

infrastructure its machine shops and cranes. This

follows a R400-million investment in a new floating

dock which has a lifting capacity of 8 500 tons.

Dormac employs 136 employees and the

rental paid for the company’s facilities contribute

significantly to Transnet’s income and to the economy

of the eThekwini Metropolitan Municipality.

A new liquid bulk terminal at the Maydon Wharf 6

in the Port of Durban will be developed and operated

by Mnambithi Terminals. The investment is worth

R1.5-billion and will create more than 1 500 temporary

direct and other indirect job opportunities.

A $26-million chemical tanker forms part of the

investment. The vessel is the first such vessel to be

acquired by a South African company and will be

flagged locally.

Also at Durban, TNPA and the KwaZulu Cruise

Terminal (KCT) consortium – in which MSC Cruises

KWAZULU-NATAL BUSINESS 2022/23

18


SPECIAL FEATURE

is a partner alongside empowered investment

entity Africa Armada Consortium – the new R200-

million Cruise Terminal Facility is functioning.

In Richards Bay, home to the Richards Bay Coal

Terminal which exports most of the country’s

coal, Hillside Aluminium, the largest aluminium

smelter in the southern hemisphere, announced

in early 2022 that it would renew existing leases

in the Port of Richards Bay, benefiting Transnet

and the municipality with a revenue stream of

R338-million and local procurement spend in the

amount of R2-billion a year.

Transnet and the International Finance

Corporation (IFC) are undertaking processes to

conduct a feasibility study that will determine

the viability of a natural gas hub in Richards Bay.

The two bodies have agreed a commitment of

R28-million as part of the cost-sharing agreement

towards the liquefied natural gas (LNG) storage

and regasification terminal to be established at

the Port of Richards Bay by 2024.

Existing infrastructure

The focus on new investment in the ports at

Durban and Richards Bay also serves as a reminder

of the other strengths of KwaZulu-Natal as a

logistics hub, with the King Shaka International

Airport and associated Dube TradePort also

playing key roles. The N3 highway linking Durban

with the Highveld and the industrial hub of South

Africa is the country’s busiest road.

Durban harbour is South Africa’s premier

multi-cargo port and is Africa’s busiest,

handling in excess of 80-million tons of cargo

per annum (StatsSA). The Port of Durban is a

key hub in the transport and logistics chain,

with 60% of all imports and exports passing

through it.

The Port of Durban exports a broad range

of products, including automotive vehicles. In

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

vehicle exports topped 350 000, Durban’s Car

Terminal boasted a record of putting more than

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

port. The figure includes FBUs that are not motor

vehicles and includes vehicle imports. Toyota’s

popular Fortuner is exported at a rate of about

150 per month.

Within the Port of Durban there are a number

of specialised facilities. Several projects are

underway to increase capacity. Transnet National

Ports Authority and Transnet Port Terminals (TPT)

are combining to upgrade infrastructure and

buy new equipment to improve efficiencies at

the Ro-Ro Terminal (vehicles and break bulk) and

Maydon Wharf (mixed cargo and agriculture) but

the biggest project is at the Durban Container

Terminal (DCT).

DCT has a capacity of 3.6-million TEUs (twentyfoot

equivalent unit) and the current project aims

to extend that beyond five-million TEUs. The Brics

New Development Bank has approved a loan of

$200-million for the DCT expansion project.

TNPA states that the multiplier effect in the

marine sector creates five jobs for every direct

job. A large drydock project created direct jobs

for 29 skilled employees.

The KwaZulu Cruise Terminal (KCT) won

the contract to finance, build and run the new

Durban Cruise Terminal and started operating

in 2019, shortly before the Covid-19 epidemic

temporarily put an end to cruises.

The cruise terminal is an important step

forward for Durban and fits in well with the

larger project that links the port to the upgraded

southern end of the promenade, the Durban

Point Waterfront. A joint venture between MSC

Cruises SA and Africa Armada Consortium, KCT

will spend about R220-million on the financing‚

construction‚ maintenance and operation of the

cruise terminal for a 25-year concession period.

The cruise terminal covers 32 000m² and

caters for two ships and at least 5 000 passengers.

A ship with 2 000 passengers is worth in the

region of R2-million per day for the host city.

The number of annual passengers is expected

to grow from the current 200 000 to more than

700 000 by 2040. Durban’s hosting of 60 ships

per annum is expected to rise to 150 or more.

South Africa attracts 0.5% of the world’s cruiseship

market which comprises about 15.4-million

passengers annually.

The Port of Richards Bay, 160km to the

north-east of Durban and 465km south of the

Mozambican capital of Maputo, handles more

than 80-million tons of bulk cargo every year.

19

KWAZULU-NATAL BUSINESS 2022/23


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

Richards Bay is a deepwater port. Among its 13

berths are terminals that handle dry-bulk ores,

minerals and break-bulk cargo.

The Richards Bay Coal Terminal (RBCT), with

capacity of 91-million tons per year, is South Africa’s

primary portal for the export of coal. In 2020, 65

collieries delivered coal to RBCT. The quay of the

RBCT is 2.2km long with six berths and four shiploaders.

The 276ha site contains a stockyard that

can store 8.2-million tons while the terminal itself

has a design capacity of 91-million tons per year.

More than 900 ships visit RBCT every year.

In 2020, 92% of South African coal went to

Asia, with India and Pakistan being the biggest

importers. Africa imported less than the previous

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

3% went to Europe.

Among the exporters which use RBCT are

ARM Coal, Exxaro Coal, Glencore Operations

South Africa, Kangra Coal, Koornfontein Mines,

Mbokodo, Optimum Coal Terminal, Sasol Mining,

South African Coal Mine Holdings, South Dunes

Coal Terminal, Seriti, Thungela, Tumelo Coal

Mines and Umcebo Mining. Several junior miners

also have rights.

TNPA has approved in principle the

construction of a floating dock near the existing

Small Craft quay. TNPA will have to create new

onshore infrastructure and do some dredging

before it can call for tenders from the private

sector to build the dock, which would be able to

handle large and ultra-large cargo vessels.

The authority that runs the ports at Durban

and Richards Bay, TNPA, and Transnet Freight

Rail have been working with the private sector

to try to improve efficiencies at both ports.

Backlogs at Durban in particular have proved

frustrating for exporters. Logistics company

OneLogix has opened its own distribution hub

in Umlaas because of crowded conditions and

slow loading.

The other entity involved in the loading and

unloading equation, Transnet Port Terminals

(TPT), is investing R2-billion in new equipment

to improve coordination between truckers, tax

authorities, port staff and ships’ captains.

Dube TradePort has facilities devoted to

logistics, warehousing and export support.

Proximity to the airport is vital and freight

volumes are growing. ■

KWAZULU-NATAL BUSINESS 2022/23

20


Offering a wide range of

services to boost small business

Cedric Mnguni, Provincial Manager for Seda, reports on the opportunities for

small business in KwaZulu-Natal.

INTERVIEW

What is the mandate of Seda KwaZulu-Natal?

The Small Enterprise Development Agency (Seda) is an agency of

the Department of Small Business Development. It is mandated to

implement government’s small business strategy; design and implement

a standardised delivery network for small enterprise development and

integrate government-funded small enterprise support agencies.

Seda’s mission is to develop, support and promote small enterprises,

ensuring their growth and sustainability in coordination and

partnership with various role-players, including global partners, who

make international best practices available to local entrepreneurs.

Cedric Mnguni, Provincial

Manager

BIOGRAPHY

Cedric Mnguni has degrees in

Electrical Engineering (Wits) and

Business Management (Durban

University of Technology) and a postgraduate

diploma in management

from the University of KwaZulu-Natal.

He studied production management

in Japan on a JICA bursary. Prior to

working at Seda, Cedric was active

in the fast-moving consumer goods

(FMCG) environment, where he held

management positions at Sasol

and National Sorghum Breweries.

His passion lies in packaging small

enterprise development programmes.

Where are your regional branches located?

eThekwini, Port Shepstone, Richards Bay, Ixopo, Pietermaritzburg,

Ladysmith and Newcastle.

Are there particular economic sectors in which you specialise?

Seda offers non-financial assistance to all forms of small businesses and

in all sectors. These include manufacturing, ICT, agriculture and agroprocessing,

tourism, textiles and clothing, health and wellness, arts and

crafts and various other sectors. Our main priority target groups are

women- and youth-owned businesses and in particular, township- and

rural-based small businesses.

What are the major challenges that small businesses face in

KwaZulu-Natal?

Small business in KwaZulu-Natal have been adversely affected by the

outbreak of Covid-19 and the restrictions that were introduced which

hampered their sales revenue and ultimately their growth. The July 2021

unrest dealt small businesses a huge blow and the recent floods in April

had a devastating impact on small businesses. In all these challenges,

Seda has responded with interventions and assistance in trying to help

the SMMEs recover and rebuild their businesses.

Where are the best opportunities in KZN?

Durban remains the economic powerhouse in the province and its

geographical location enables many sectors to flourish. This includes

manufacturing, logistics, tourism, wholesale and retail and ICT. Richards

Bay continues to expand and it is developing in the mining and

production sector. The province is also very rich in agriculture.

What is Seda doing to encourage business competitiveness and viability?

Seda offers a wide range of services including business diagnostics,

information dissemination and training. ■


FOCUS

Fashion business turnover increased

nearly 100% after focussed interventions

Seda helped fashion designer Lindiwe Makhoba take her

Colenso-based business to another level.

Fashion design business Unalisa was

established and registered by Lindiwe

Makhoba in 2016. The business operates

from the founder’s home and is located in

Narrow Lane in Colenso in the uThukela District.

Lindiwe is a self-taught designer who

provides beauty and fashion products. As the

entrepreneur who started the business, Lindiwe

aimed from the beginning to serve customers

with simple, elegant and stylish fashion.

The fashion-designing idea came about

while Lindiwe was studying in Durban. She

would often do fashion consulting and offer

advice to friends and fellow students. The next

step was to establish relationships with other

small sewing businesses in Tsakane to do the

sewing after the design phase.

Unalisa has been represented at various

trade fairs in KwaZulu-Natal and in Mpumalanga

since it was established.

As part of the business idea was to offer

beauty products to her customers, Lindiwe

signed up for training in perfume and lotion

manufacturing. After this training, these

products were added to Unalisa’s offering to

the market.

Intervention and solutions

The business was assisted with access to the

Royal Show in Pietermaritzburg (Trade Exhibition)

for more exposure to the market.

In May 2021 Unalisa (Pty) Ltd received

funding of R93 000 from Sefa and this was used

to purchase five pieces of industrial sewing

equipment and two over-lockers.

Seda’s interventions benefitted the client in

the following ways:

• The number of employees doubled from two

to four.

• The Sefa funding came through to boost the

business.

• Annual turnover increased by 98%.

Through the trade exhibition the following

improvements were noted:

• Unalisa was noted by TIKZN and the business

was later assisted to exhibit at the London

Fashion Week.

• A contract was secured to supply Superbalist,

an online shop, with designer clothing.

Challenges

An assessment of the business conducted by

Seda revealed the following challenges facing

the business:

• Lack of business exposure, marketing

• Lack of finance to purchase equipment

“I am very delighted about the help I got from Seda and wish other businesses

could be helped like I was.”

KWAZULU-NATAL BUSINESS 2022/23

22


FOCUS

An interactive website propelled a

tourism business to success

PSN Travel Frenzy gained access to multiple markets

after Seda gave advice.

PSN Travel Frenzy is a black-, female-owned

business established and registered in

2017. It is currently run by the youthful

owner, Pretty Ngubane, and is based at

No 86 Ceramic Curve, Unit 7, Alton, Richards Bay.

The business provides travel management

services (local and international), tourism

marketing for township-based hospitality

establishments, tour operator services and events

management. Its focus is on historical, industrial,

cultural heritage and township tourism.

The business works hand-in-hand with

prominent events management companies,

game reserves and hospitality establishments in

KwaZulu-Natal, Gauteng and Limpopo in order to

gain a sustainable market and promote its brand.

It is affiliated to the Umhlathuze Community

Tourism Organisation and Tourism KwaZulu-

Natal to have access to industry-related market

information, compliance information, advocacy

and marketing platforms, as well as continuous

training and development.

Challenges

PSN Travel Frenzy was initially assisted by

the uThungulu branch of Seda with the first

intervention in September 2019 through a trade

exhibition. An assessment was conducted and it

was found that the business needed assistance

with access to markets. There was limited exposure

of the business to customers and no platform for

customers to access information that could be

used to improve its base. The business also had

very limited marketing material to put into effect

the marketing strategy it had adopted.

Interventions and solutions

Seda recommended e-marketing through

website development. The website was designed

and developed to have a responsive and

mobile-friendly eight-page website, allowing

tour-package bookings (including booking

forms, automated responses and a secure

online paygate), flight bookings, car rentals

and accommodation. The digital platform was

developed for the client to tap into the national

and international markets.

Seda’s interventions benefitted the client in the

following ways:

• Revenue increased by 109%. This was as a result

of online presence which allowed accommodation

establishments to secure shuttle as well as

car-hire services offered by the client.

• The number of employees remained at two

(including a tourism intern).

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

directly with customers while they are busy viewing the website.”

23 KWAZULU-NATAL BUSINESS 2022/23


FOCUS

Kerry opens largest and most

advanced taste facility in Africa

New Durban facility will produce sustainable nutrition

solutions for consumers across the continent.

Deputy Minister Nomalungelo Gina and the KwaZulu-Natal MEC for Economic Development,

Tourism and Environmental Affairs, Ravi Pillay, join the Irish Ambassador, Fionnuala Gilsenan,

and Kerry Foods executives at the official opening of the Kerry Foods plant based in Hammarsdale

KwaZulu-Natal.

Kerry, the world’s leading taste and

nutrition company, officially opened

the largest and most advanced taste

manufacturing facility on the African

continent on Tuesday, 10 May 2022. The new

R650-million facility is located in Hammarsdale,

Durban, and will produce sustainable nutrition

solutions that will be consumed across the

African continent.

The official opening was attended by Deputy

Minister of Trade, Industry and Competition (DTIC),

Nomalungelo Gina, KwaZulu-Natal Economic

Development, Tourism and Environmental Affairs MEC,

Ravi Pillay, and Ambassador of Ireland to the Republic

of South Africa, Her Excellency Fionnuala Gilsenan,

plus eThekwini Municipality’s Executive Committee

Member and Chairperson of the Governance

Committee, Councillor Nkosenhle Madlala.

The 10 000m2 facility is one of the company’s most

environmentally efficient manufacturing sites with

numerous sustainability features including low energy

usage equipment, solar power generation to reduce

consumption from the local grid, waste heat capture

and efficient water capture, reuse and reduction.

Commenting on the opening, Edmond

Scanlon, CEO Kerry Group, said, “The opening of

the facility in Hammarsdale is a significant step

forward in helping to realise our vision of creating

a world of sustainable nutrition. For 50 years, Kerry

has focused on meeting local consumer needs

grounded in great taste, one of the most important

criteria in any food or beverage. Our suite of worldleading

technologies combined with our expertise

and now this state-of-the-art manufacturing

facility ensures that we can continue to work with

our customers to produce great-tasting, nutritious

products that are respectful of our planet.”

The project is recognised as a key strategic

investment in the Durban region and within South

Africa’s food manufacturing industry. It has been

KWAZULU-NATAL BUSINESS 2022/23

24


FOCUS

included as part of the South African presidential

investment drive to stimulate sustainable,

equitable and inclusive growth as the foundation

for socio-economic transformation in the country.

“As the DTIC, we are excited about this

investment because it aligns very well with our

reimagined industrial strategy. As a department,

we undertook to support improved industrial

performance through localisation, dynamism and

the competitiveness of local companies,” said Gina.

“Our economic vision is to lift the rate of inclusive

economic growth and investments such as this

will assist us to achieve these objectives.”

Invest Durban together with other spheres

of government and organised business bodies

played key roles in positioning the region as an

attractive Metro destination for high-value-add,

export-oriented production.

The eThekwini Metropolitan Municipality

declared itself pleased with these efforts for and

by a global firm like Kerry Foods. The Kerry Group’s

first enquiries involved teams from Invest Durban

directly and the council and its agency have both

been intimately involved in all aspects of building

construction, local supplier engagement, local

finance arrangements and tax and customs support

through to the final factory launch. Invest Durban

will continue to work with Kerry Foods as part of the

City’s Key Investor Aftercare Programme.

Kerry is also expanding its Development

and Application Centre in Nairobi, Kenya, to

further support customers in East Africa and the

development of sustainable food processing

for the continent. Paul Hewitt, Vice President,

Sub Saharan Africa Kerry Group said, “Kerry

has had a presence in South Africa since 2011

and our success has been based on our ability

to deliver truly authentic African taste by

identifying traditional food and flavours and

reimagining it into today’s modern context.

More than understanding consumer taste, we

are committed to predicting global and regional

trends and innovating with our customers to

lead the industry towards the next generation

of sustainable African food and nutrition.

South Africa is in a unique position to service

East, Central as well as West Africa and we look

forward to working with food and beverage

companies to create products that will be

enjoyed across the continent.”

With Kerry’s innovation expertise, solutions

portfolio and sustainability commitments,

the company ultimately aims to decrease

the environmental and social impacts of the

food industry value chain so that consumers

everywhere can make better, healthier choices

and leave a better world for future generations. ■

About Kerry Group

Kerry is the world’s leading taste and nutrition

partner for the food, beverage and pharmaceutical

markets. We innovate with our customers to create

great-tasting products with improved nutrition

and functionality, while ensuring better impact

for the planet. Our leading consumer insights,

global RD&A team of more than 1 000 food

scientists and extensive global footprint enable us

to solve our customers’ complex challenges with

differentiated solutions. At Kerry, we are driven to

be our customers’ most valued partner, creating a

world of sustainable nutrition, and will reach over

two-billion consumers with sustainable nutrition

solutions by 2030. For more information, visit

http://www.kerrygroup.com

25

KWAZULU-NATAL BUSINESS 2022/23


KEY SECTORS

Overviews of the main economic

sectors of KwaZulu-Natal

Agriculture 28

Forestry and paper 30

Mining 31

Engineering 32

Oil and gas 33

Energy 36

Construction and property 37

Water 38

Tourism 40

ICT 41

Manufacturing 42

Education and training 44

Development finance and SMME support 46

Banking and financial services 48

Feasibility studies are underway on constructing a plant to produce furfural at Sappi’s already large Saiccor Mill at

Umkomaas. The pilot plant will be erected in the course of 2022. Sappi’s two South African mills and its US plant are

responsible for the company being the world’s largest manufacturer of dissolving pulp. The product is used in a wide

range of consumer products, especially for viscose staple fibre (VSF), which is used in clothing and textiles. Credit: SAPPI


OVERVIEW

Agriculture

Packaging firm expands on increased agricultural production.

The decision by processing and packaging company

Tetra Pak to spend R500-million on expanding capacity

at its packaging material plant in Pinetown indicates an

uptick in agricultural production.

The new plant allows the company to increase its local content

to 80% and to make the Pinetown plant a production hub for the

region. Among the company’s clients are dairy companies such as

Clover and Woodlands Dairy which package milk for major retailers.

The Provincial Government of KwaZulu-Natal has announced

that nurseries are to be the focus of targeted development: the

Makhathini Nursery will be brought to full operational status during

2022, and two new large nurseries are to be built at Cedara and

Dundee. These nurseries will produce varieties of seedlings for

distribution to small-scale farmers.

The Department of Agriculture and Rural Development (DARD)

has been working with the Tembe Traditional Council to bring

a marula-processing plant near Manguzi in the municipality of

Umhlabuyalingana into production. There are an estimated twomillion

fruit-bearing trees in KwaZulu-Natal, and DARD estimates that

they have the potential to create 1 000 seasonal fruit-harvesting jobs.

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

A start has been made on tackling the many challenges faced by

the sugar industry: in 2020 the Sugarcane Value Chain Master Plan

2030 was signed by two national government ministers and various

sector participants. Among the steps to be taken include diversifying

revenue streams and an agreement by users and retailers to buy

more South African sugar. Imports have a devastating impact on the

local industry.

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

Sugar and Tongaat Hulett’s Darnall mill. This will put additional

pressure on the country’s remaining 12 mills.

Neither of the Big Two companies relies exclusively on South

African sugar earnings: Tongaat Hulett has a big property portfolio

and Illovo draws most of its profit from operations elsewhere in

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

power generation will be an important part of that.

Tongaat Hulett continues to search for ways to reduce its huge

debt. Shareholders were faced with tough choices in 2021 and 2022

as what the Financial Times called “an opportunistic new investor”,

Magister Investments, made a play for the group.

An important part of the transformation of the sugar industry

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

SECTOR INSIGHT

New nurseries will supply

high-quality seed.

supply Tongaat Hulett, 94%

are small-scale farmers. The

Illovo Small-Scale Grower Cane

Development Project used 119

local contractors to develop the

fields of 1 630 new growers on

3 000ha. Production sent to the

company’s Sezela factory more

than doubled and income for

the growers is expected to be

about R64-million annually.

National Treasury and the SA

Canegrowers were partners in

the project.

SA Canegrowers represents

23 866 growers and is

responsible for the production

of 18.9-million cane tons.

The Sugar Terminal at

Maydon Wharf, Durban, serves

11 mills and can store more than

half-a-million tons of sugar. It also

has a molasses mixing plant.

Agricultural assets

Of KwaZulu-Natal’s 6.5-million

hectares of agricultural land,

18% is arable and the balance

is suitable for the rearing

of livestock. The province’s

forests occur mostly in the

southern and northern edges

of the province.

The coastal areas lend

themselves to sugar production

KWAZULU-NATAL BUSINESS 2022/23

28


Select milk dairy equipment. Credit: Tetra Pak Group

ONLINE RESOURCES

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

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

Milk Producers Organisation: www.mpo.co.za

South African Cane Growers’ Association: www.sacanegrowers.co.za

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

and fruit, with subtropical fruits doing particularly well in the north.

KwaZulu-Natal produces 7% of South Africa’s citrus fruit. The Coastal

Farmers Co-operative represents 1 400 farmers.

TWK is a R6-billion operation that originated in forestry (as

Transvaal Wattlegrowers Co-operative) but which is now a diverse

agricultural company with seven operating divisions. It has 19 trade

outlets in the province and 21 in Swaziland and Mpumalanga.

Beef originates mainly in the Highveld and Midlands areas, with

dairy production being undertaken in the Midlands and south. The

province produces 18% of South Africa’s milk.

KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle,

which represents 55% of the provincial beef herd, and their goat

herds account for 74% of the province’s stock. The Midlands is also

home to some of the country’s finest racehorse stud farms. The area

around Camperdown is one of the country’s most important areas for

pig farming. Vegetables grow well in most areas, and some maize is

grown in the north-west. Nuts such as pecan and macadamia thrive.

KwaZulu-Natal has two colleges offering higher qualifications in

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

Agriculture near Empangeni.

Enterprise iLembe is the development arm of the iLembe District

Municipality and is looking for investors to further develop an agriprocessing

hub near the King

Shaka International Airport and

Dube TradePort.

So-called superfoods have

potential to grow the agricultural

sector via greatly increased exports:

these include avocados, pecans

and dates. Another possibility is

macadamia nuts (already a thriving

sector in other parts of the country)

and in new areas such as the

farming of rabbits.

Among the new lines of

agricultural produce being

investigated is cannabis.

The provincial government

initiated a feasibility study to

identify opportunities in the

production of cannabis and

downstream beneficiation.

A Cannabis Investor Protocol

has been developed and a

dedicated Cannabis Unit has

been established within the

Moses Kotane Institute to

assist emerging cultivators

and entrepreneurs with

infrastructure assistance,

funding and licensing. ■

29

KWAZULU-NATAL BUSINESS 2022/23


OVERVIEW

Forestry and paper

A campaign to plant 10-million trees has begun.

The National Department of Forestry, Fisheries and the

Environment has set a target for South Africa to plant

10-million trees, two-million per year for five years.

The National Arbour Month campaign was held in 2021

under the title “Forest Restoration: a path to recovery and wellbeing”,

signifying the importance of protecting and conserving the

country’s biodiversity.

Sappi has 19 production facilities on three continents (of which

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

Sappi’s Stanger Mill is situated close to sugar cane fields from which it

takes bagasse (dry sugar cane pulp) for use in its production processes.

Typek office paper is made at this mill, which has the capacity to

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

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

containerboard (corrugating medium) can be manufactured from

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

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

Business Times reports that Sappi’s December 2021 results showed a

26% improvement in sales, driven largely by containerboard, consumer

packaging and self-adhesives. Journalist Thabiso Mochiko further

stated that South Africa’s printing industry is experiencing something

of a revival because of some unforeseen features of the move to online

shopping. These include security features on labels and a future trend

called printed electronics. Digital print, outdoor signage, billboard

advertising and vehicle wraps are other markets doing well.

The Mondi Group has grown into an international behemoth with

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

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

JSE will carry the company’s secondary listing.

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

including the well-known brand, Mondi Rotatrim. Uncoated

woodfree reels are manufactured for the South African and Sub-

Saharan African markets.

Nampak produces crêpe paper at Verulam and Rafalo produces

tissue paper. SA Paper Mills is another paper producer.

In 2015, Australian packaging company Amcor purchased flexible

ONLINE RESOURCES

Forestry South Africa: www.forestry.co.za

National Department of Forestry, Fisheries and the Environment:

www.dffe.gov.za

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

SECTOR INSIGHT

Sappi reports an uptick in

packaging and speciality

paper sales.

The 10-million Trees Programme

has begun. Credit: DFFE

packaging manufacturer Nampak

Flexibles for about R250-million.

This included production facilities

in three provinces but in July

2021, rioters burnt the Pinetown

factory to the ground. It has not

reopened.

Mpact’s upgrade of its Felixton

mill has increased capacity and

improved efficiency. The project

cost R765-million and takes overall

production up to 215 000 tons

and a lightweight containerboard

option has been included in the

product lines.

Mpact has plastics and

paper operations, with the

paper section divided into three

divisions: paper manufacturing,

corrugated and converted paper

products and recycling. ■

KWAZULU-NATAL BUSINESS 2022/23

30


Mining

OVERVIEW

Operations at Richards Bay Minerals have started again.

Richards Bay Minerals (RBM), a subsidiary of the Rio Tinto

Group, resumed operations at its mineral sands plant and

refinery in August 2021 but has not yet committed to

continuing to invest in a major minelife extension.

Operations were suspended because of violence

specific to the mine, quite apart from the riots which

affected parts of Gauteng and KwaZulu-Natal in July

2021. The suspension of the proposed $463-million

Zulti South development remains in place. It is

estimated that if the project were to go ahead, its value

to the national economy over 25 years would be about

R100-billion. The main products of the RBM mine are

zircon, rutile, titania slag, titanium dioxide feedstock

and high-purity iron.

Since 2018, titanium dioxide producer Tronox

Holdings has contributed R22-million per year to local

communities, including through local procurement

opportunities. Tronox exports titanium ore, zircon and

other materials to its pigment plants around the world

where titanium dioxide pigment is produced for use in paints, plastics

and paper. About 21% of the company’s workforce is made up of

women. The KZN Sands mineral sands operation comprises a central

processing complex in Empangeni and the Fairbreeze Mine.

The Covid pandemic in 2020 added to the ongoing problem of reliable

electricity supply, which is a critical issue for a big energy user like a smelter.

After extended negotiations, South32 and Eskom have signed a long-term

energy supply agreement for the Hillside Aluminium smelter to 2031.

Most of the product from the smelter (high-quality primary

aluminium ingot) is exported but some liquid metal form is sent to

Isizinda Aluminium which supplies Hulamin, a company that has had

a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major

aluminium rolling operator in the region and it makes rolled products

and extrusions.

Other processing facilities in the province include the steel plant

owned by Arcelor Mittal in Newcastle and Safa Steel’s metal-coating

factory in Cato Manor.

ONLINE RESOURCES

Council for Geoscience: www.geoscience.org.za

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

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

SECTOR INSIGHT

South32 and Eskom have

finally signed an energysupply

agreement.

Credit: Richards Bay Minerals

Some of the coalfields of

the province have been revived.

Petmin’s Somkhele Anthracite

Mine, north of Richards Bay, has

one of the biggest reserves of

open-pit anthracite in South

Africa, with measured and

indicated reserves of more than

51-million tons.

Luxembourg-based Traxys

Africa, which has chrome mines

Mpumalanga and Limpopo

provinces, runs a high-carbon

ferrochrome plant at Richards Bay.

Finnish company Metso is

spending about R53-million on

building a second furnace at its

Isithebe foundry in the iLembe

District Municipality. This is in

response to increased demand

for large crusher wear parts. The

KwaZulu-Natal foundry is one of

five foundries the company runs

on four continents. ■

31

KWAZULU-NATAL BUSINESS 2022/23


OVERVIEW

Engineering

UCL’s expansion included three large projects.

SECTOR INSIGHT

The School of Engineering at

UKZN offers nine specialisations.

UCL hired Bosch Projects to expand its factory. Credit: Bosch Holdings

Bosch Projects recently undertook three projects at the

Dalton factory of sugar producer and wattle-bark miller

UCL Company.

The projects were completed over a nine-month period

which included parts of the Covid-19 lockdown. Cane input was

increased by 25% through a widening of the chainless diffuser, a

procedure that the company claimed as a world-first. UCL Company

manufactures wattle tannin extracts, sugar and pine lumber.

All of the province’s biggest industries require sophisticated

engineering skills: aluminium smelters in Richards Bay and steel works

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

and plastics production plants, and large automotive works.

Marine repair and engineering are important, with established

companies such as EBH South Africa offering comprehensive services

at the ports of Durban and Richards Bay.

Dormac, which is headquartered in the Bayhead area of the Port

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

specialised services to the sugar industry and provides machinery for

industrial giants like Toyota and Defy.

One of the largest independent wire manufacturers in the country,

Hendok Group, is steadily increasing its exports to other African

countries. With more than 1 000 employees at the factory in the

Phoenix Industrial Park in Durban, the company makes a wide variety

of wires and is the country’s biggest producer of nails.

ArcelorMittalSA is Africa’s biggest steelmaker and it has a plant

at Newcastle, but tough times in the steel business have meant that

ONLINE RESOURCES

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

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

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

the company has shut down

some of its facilities. The first to

be shuttered was Saldanha in the

Western Cape and an analysis of

the profitability of other centres is

underway.

A big project that has created

a lot of work for engineers is the

multi-year Western Aqueduct

project to bring fresh water to

greater Durban.

The Transnet Engineering (TE)

plant in the Port of Durban houses

six business units and has 3 555

employees. The Port Equipment

Maintenance unit and units

specialising in wheels and locomotive

overhaul are other entities.

The Pollution Research

Group (PRG) at the University of

KwaZulu-Natal (UKZN) has a new

name and an extended brief. It has

been re-established as the Water,

Sanitation and Hygiene Research

and Development Centre (WASH

R&D Centre).

The unit continues to fall under

Chemical Engineering, where 34

staff contribute to lecture modules

in a variety of fields but which now

go far beyond the original brief of

water in industry. In addition to

Chemical Engineering, the School of

Engineering offers a range of degree

options in nine areas of specialisation

including Bioresources, Electronic

and Computer Engineering and

Land Surveying. ■

KWAZULU-NATAL BUSINESS 2022/23

32


Oil and gas

South Africa’s largest crude oil refinery is likely to come on the market.

OVERVIEW

SECTOR INSIGHT

Petroleum Agency SA

has awarded gas

exploration rights.

Shell Downstream South Africa and bp Southern Africa

announced in February 2022 a “spend freeze” and paused

operations at the SAPREF oil refinery in Durban.

The refinery, pictured, accounts for roughly 35% of the

country’s refinery capacity and is likely to be offered for sale. The first

announcement of the “pause” did not give reasons for the decision but it

is likely that the violent riots of July and the decision by a court to block

Shell’s offshore seismic surveys in December 2021 played a role.

Durban’s other oil refinery, Enref, was hit by a fire in December 2020

and there are plans to convert it to a storage facility. South Africa is

a net importer of fuel and the Port of Durban handles 80% of South

Africa’s fuel imports.

The regulator and promoter of oil and gas exploration in South

Africa, Petroleum Agency South Africa, has awarded coalbed-methanegas

exploration rights in KwaZulu-Natal to NT Energy Africa, which has a

partnership with the Central Energy Fund. These awards are for onshore

exploration. The Petroleum Agency SA is an agency of the National

Department of Mineral Resources and Energy (DMRE)

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

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

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

Richards Bay.

Bidvest Tank Terminals has constructed the R1-billion storage facility

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

ONLINE RESOURCES

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

Petroleum Agency SA: www.petroleumagencysa.com

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

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

commodities. South Africa’s

annual consumption of LPG,

currently at 400 000 tons, is

expected to rise to 600 000 tons.

If a private partner can be found,

an LNG plant will produce 2 000MW

at Richards Bay. This forms part of

national government’s allocation

of 3 126MW to natural gas in its

medium-term energy policy to

2030. The National Department

of Mineral Resources and Energy

allocated one of the first two gasto-power

plants to be constructed

under the Independent Power

Producer Procurement Programme

to Richards Bay. This has the potential

to turn the Richards Bay Industrial

Development Zone (RBIDZ) into an

energy hub.

Eni, one of the world’s biggest

energy companies, has an

agreement with Sasol Petroleum

International to explore for

hydrocarbons off the coast of

KwaZulu-Natal.

Getting fuel to the province

of Gauteng is the key mission of

the new multi-purpose pipeline

(NMPP). Refined products such as

jet fuel, sulphur diesel and both

kinds of octane petrol are carried.

The infrastructure of Transnet

Pipelines is said to reduce the

number of fuel tankers on South

African roads by about 60%. ■

33 KWAZULU-NATAL BUSINESS 2022/23


FOCUS

Offshore exploration will

benefit the KwaZulu-Natal

economy

The CEO of Petroleum Agency South Africa CEO,

Dr Phindile Masangane, explains how gas can drive

economic growth and play a role in the transition to

a clean energy future.

Today the biggest threat to humanity is

climate change and the biggest threat

to South Africa’s social stability is the

high unemployment rate, which has

primarily been caused by economic stagnation.

As the global economy recovers from the

devastating effects of Covid-19, demand for oil and

gas has gone up significantly. If there was ever a

need for proof that oil and gas still drive the global

economy, recent statistics demonstrate the trend.

The world’s developed economies

industrialised on the back of oil and gas production

and use. Now, just as Africa is on the cusp of being

a significant gas producer and is making plans to

use such gas for power generation, industrialisation

and economic growth, the negative effect of

greenhouse gas emissions on the environment has

become undeniable.

The urgency for action to mitigate the risk of

climate change is no longer debatable. Between

1990 and 2018 the top five emitters have

produced more than 50% of greenhouse gas

emissions. During the same period South Africa has

contributed 1% to global emissions. This is by no

measure insignificant, and as a responsible global

citizen South Africa must take steps to reduce its

carbon footprint.

The UN Framework Convention on Climate

Change was established in 1992 to coordinate the

global response to mitigate the threat of climate

change, and specifically to get countries to commit

to policies and plans that will ensure that the

average global temperature rise is kept less than

1.5°C above pre-industrial levels.

The International Energy Agency (IEA) proposes

that to achieve this goal the world’s energy sector

must reach net zero emissions by 2050. In its

global energy net zero 2050 pathway, the IEA

acknowledges that there is no single pathway to

this goal, as developed and developing countries

face different socioeconomic challenges and have

contributed disproportionately to greenhouse gas

emissions to date.

Country-specific pathways

What a number of environmental interest groups

seem to be ignoring in the IEA “Net Zero by 2050”

report is the acknowledgment that there will be a

differentiated approach to a clean energy future,

taking into consideration the cost of the new

clean energy technologies and the economic

consequences of transitioning for each country. The

IEA emphasises that each country must develop its

own pathway to a net zero emission future.

South Africa’s economy has been

predominantly powered by coal, which is also a

KWAZULU-NATAL BUSINESS 2022/23 34


significant contributor to the country’s economy

in terms of GDP as well as employment. Of

all primary energy resources coal is the most

carbon-intensive, and South Africa therefore

has a relatively high carbon-intensive economy,

contributing about 1% of annual global

greenhouse gas emissions.

In addition to coal, South Africa imports oil, gas

and petroleum products for its energy needs as the

upstream petroleum industry is still at a nascent

stage. The two recent world-class gas discoveries

in the Outeniqua basin off the south coast of the

country are the biggest petroleum discoveries

made in South Africa.

The development of these discoveries has

the potential to replace more than 2 300MW of

diesel-fired electricity generation in Gourikwa,

Dedisa and Ankerlig, thereby reducing the carbon

emissions from these plants by more than 50%

while eliminating sulphur oxide and nitrogen

oxide emissions, which are also harmful to the

environment. Gas is therefore an obvious bridge to

a lower carbon future in South Africa.

Importantly, these gas discoveries could

restore the gas-to-liquid refinery in Mossel Bay

to full production and profitability, saving about

1 200 direct jobs. A complete shutdown and

abandonment of this refinery would not only

lead to job losses at the refinery, but the effects

would reverberate throughout the town of

Mossel Bay and the Southern Cape region, since

the refinery contributes about R2-billion a year,

or 26% of the Mossel Bay economy, and 6% to

the Southern Cape economy when producing at

full capacity.

The Petroleum Agency South Africa awaits the

licensee of these gas discoveries submitting its

production right and environmental authorisation

applications when the exploration right expires, or

earlier. The agency expects the licensee to use worldclass

technologies and standards to minimise the

effects of the gas and gas condensate production on

the environment, while maximising the in-country

benefit or local content from this development to

support South Africa’s economic recovery.

These discoveries could indeed support both

the country’s economic recovery and its transition

to a clean energy future. ■

Database management

The continental shelf of the Republic of South Africa

covers some 200 000km² and the country has a

coastline approximately 3 000km in length.

Petroleum Agency SA is responsible for the

archive and management of the national hydrocarbon

exploration database on behalf of the State. It has

digitised, indexed and archived all of the data and

reports resulting from the drilling of more than 300

offshore and some 200 onshore boreholes.

The exploration database also include seismic field

and processed data for more than 300 000km of 2D

and 40 000km² of 3D seismic data that was acquired

offshore and some 9 800km of seismic processed

data that was acquired during the late 1960s in the

Karoo, Algoa and Zululand onshore basins.

Being the custodian of the National Petroleum

Exploration and Production Database of South Africa,

the Agency relies on a sustainable and effective

Information Management Infrastructure in order to

comply with its mandate to:

• Archive and maintain a database on petroleum

exploration and production data.

• Provide access to existing data, cores, well samples,

information and literature on request.

• Add value and incorporate new as well as interpreted

data into the database.

• Maintain records of all hydrocarbon exploration and

production activities.

CONTACT DETAILS

Tel: +27 21 938 3500

Email: plu@petroleumagencysa.com

Website: www.petroleumagencysa.com

35

KWAZULU-NATAL BUSINESS 2022/23


OVERVIEW

Energy

eThekwini plans to sign up independent power producers.

The eThekwini Metropolitan Municipality has entered the

field of renewable energy provision with the publication

of its eThekwini Integrated Resource Plan (EIRP). This

document outlines the steps the city will take towards

its cleaner energy goals.

Before launching a bidding process for independent power

producers, the municipality will formally adopt the energy policy

as a council and then assess the market. Goals include being

carbon neutral by 2050 and having renewable energy provide

40% of the metro’s power by 2030.

Food packaging and processing company Tetra Pak has also

set ambitious goals when it comes to energy. A new plant being

built in Pinetown has reduced carbon emissions, which will

help the company on its way to carbon neutrality by 2030. New

technology is being used at the plant which will advance the goal

of using sugarcane to produce a bio-based plastic.

Illovo Sugar SA is keen to produce biofuel and bio-energy

and at the company’s Eswatini mill, Ubombo, it has a commercial

supply agreement with the Eswatini Electricity Company.

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

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

that the national sugar industry could generate between 700MW

and 900MW. A 17MW biomass project represents the province’s

only approved project in terms of the national Renewable Energy

Independent Power Producer Procurement Programme (REIPPPP).

An open cycle gas turbine plant at Shakaskraal in the iLembe

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

method which energy planners are encouraging. The 670MW plant

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

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

Solutions (South Africa) and ENGIE of France.

As part of the provincial government’s strategy to boost regional

development, the iLembe District has been named as an Industrial

Economic Hub (IEH) for the renewable energy sector.

Khanyisa Projects has set up 26 biodigesters which produce gas for

ONLINE RESOURCES

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

National Energy Regulator: www.nersa.org.za

South African National Energy Development Institute:

www.sanedi.org.za

SECTOR INSIGHT

The iLembe District is an

Industrial Economic Hub

(IEH) for the renewable

energy sector.

The Avon Peaking Power Plant in

the iLembe District Municipality.

Credit: ENGIE Peakers Operations

cooking at Ndwedwe in the

iLembe District. The project forms

part of the Working for Energy

programme of the South African

National Energy Development

Institute (SANEDI) which promotes

the use of sustainable clean energy

in rural areas.

The Richards Bay Industrial

Development Zone (RBIDZ)

has been named as the site

for 2 000MW liquefied natural

gas (LNG) plant in terms of

national government’s gas-topower

plan. RBIDZ is also the

site of a new biomass plant.

Biomass technology is at

the centre of the conversion

scheme of South African

Breweries at its Prospecton

plant south of Durban.

Methane-gas emissions from

a nearby effluent plant are

piped to the plant where they

are converted to electricity. ■

KWAZULU-NATAL BUSINESS 2022/23

36


Construction and property

R6-billion business and logistics park for Umhlanga.

OVERVIEW

Investec Property is behind a major new development, The

Brickworks, strategically located between the Port of Durban

and King Shaka International Airport.

The R2-billion first phase, on which

construction will start in the middle of

2022, will see the old Corobrik factory site

transformed into a business and logistics park.

Once the project is complete there will be

more than 450 000m² of leasable space.

This investment is especially welcome for

the property and logistics sector which was

badly hit by the riots which took place in and

around Durban in July 2021.

A major milestone was reached in

November 2019 when Durban’s beachfront

promenade extension reached the harbour.

This means that residents anywhere in the city

can now step onto the promenade, from the harbour in the south

to Blue Lagoon in the north. The project began in early 2018 and

cost R400-million.

According to the organisers of the 2019 KZN Construction Expo,

infrastructure will attract more than R200-billion in investment over

seven years and R35-billion will be spent over 15 years at the Port

Waterfront development.

The King Shaka International Airport and Dube TradePort are

also attracting property investments. Two new industrial parks are

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

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

A-grade industrial space.

Tongaat Hulett Developments (THD) has for some years been rolling

out a series of developments on land it owns north of Durban and it has

launched the nTshongweni Urban Development on either side of the

busy N3 highway west of the city.

KwaZulu-Natal has a number of brick companies and four cement

factories. Three of these are run by NPC at Simuma, Durban and

ONLINE RESOURCES

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

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

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

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

SECTOR INSIGHT

Infrastructure spending is

set to grow.

Newcastle, and the company

has a further six sites for concrete

and two for aggregate. NPC is

part of the Intercement group.

Lafarge has several aggregate

quarries and eight Readymix

plants around the province. The

company’s grinding operation in

Richards Bay has closed.

The Dolphin Coast

continues to attract high-end

investors. Seaton, The Bay, in

Sheffield Beach Estate, north of

Ballito and Simbithi Eco-Estate,

distinguishes itself from its

neighbours by offering direct

access to the beach.

Collins Residential reported

R179-million in sales in two

months in late 2020, for the first

two parts of the development.

Owners are expected to take

up residence early in 2022.

Further south, Zimbali is

another estate holding its own

in terms of value. ■

37 KWAZULU-NATAL BUSINESS 2022/23


OVERVIEW

Water

Bulkwater schemes are coming on line.

The R50-million uMshwathi Bulkwater Scheme was officially

inaugurated in November 2020 as part of a broader scheme

to improve water supplies across the province. Two new

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

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

scheme, utility Umgeni Water will spend about R26-billion on the

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

The provincial government has listed some major projects

currently in progress:

• Lower uMkhomazi Bulkwater Scheme, Umgeni Water, R3-billion,

estimated to be completed in 2023

• Cwabeni Project, R1-billion estimate, completion in 2022

• Stephen Dlamini Dam, R1-billion estimate, completion 2023

• uMkhomazi Water Project, R23-billion, once phase two is complete,

it will be one of the biggest water transfer schemes in the country

A new tender was issued in 2020 for the completion of a

35-megalitre-per-day upgrade of the Darvill Waste-Water Works. The

facility receives and treats both domestic and industrial wastewater

from the city of Pietermaritzburg.

A provincial Water Intervention Plan is being rolled out in

hotspots where municipalities are struggling to provide consistent

services. The main pipelines of Kokstad and Underberg are receiving

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

and Moyeni Zwelisha.

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

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

office and accommodation projects going ahead simultaneously.

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

buildings also create pressure on infrastructure.

The multi-year, R250-million Northern Aqueduct Augmentation

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

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

Newlands, KwaMashu, Phoenix and Cornubia.

Umgeni Water currently supplies more than 400m³ of potable

water to its six large municipal customers. The company has five dams,

10 waterworks, five water-treatment plants and two wastewater works,

including Darvill.

ONLINE RESOURCES

Mhlathuze Water: www.mhlathuze.co.za

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

Umgeni Water: www.umgeni.co.za

Water Research Commission: www.wrc.org.za

SECTOR INSIGHT

The Northern Aqueduct

Augmentation project is a

massive undertaking.

Anaerboic digesters at

Darvill Waste-Water Works.

Credit: Umgeni Water

Large parts of the northern

part of the province are served

by Mhlathuze Water. The utility

has assets valued at more than

R3-billion and its area of supply

covers 37 000m².

New technology has

been installed at the Verulam

Wastewater Treatment Works

of the eThekwini municipality.

Murray & Roberts Water and its

European technology partner,

Organica Water, has installed an

environmentally-friendly system

that uses 30% less energy and

produces 30% less sludge.

Richards Bay has installed a

10-container desalination plant

next to the municipal water

treatment plant at Alkanstrand. The

first mobile sea water purification

unit in South Africa, it comprises 10

containers and is located adjacent

to the water treatment plant at

Alkantstrand. It can deliver 10

megalitres of drinking water. ■

KWAZULU-NATAL BUSINESS 2022/23

38


The CSIR Water Centre has

the capabilities to support

the water sector

Touching lives through innovation.

FOCUS

network can be identified and repairs done at the

same time.

Legally, water incidents should be recorded as part

of a Risk Abatement Plan. A Corrective Action Request

and Report System (CARRS) application is used for

water incident reporting.

The Water Centre of the Council for Scientific

and Industrial Research (CSIR) is wellequipped

to support agencies and utilities

working in the water sector. Some of the

problems of water supply and distribution came

into sharp focus in the wake of the 2022 floods in

KwaZulu-Natal.

Pinpointing water infrastructure damage

ICT-based Dynamic Hydraulic Models (DHM)

with real time/near real time data are used for the

optimisation of water distribution networks (faulty

pipeline diagnostics).

Pressure monitoring and control are used

to reduce the amount of non-revenue water

due to dilapidated water treatment plant (WTP)

infrastructure. Therefore, damages on the distribution

Water quality monitoring and treatment

A decentralised (mobile) water and wastewater

treatment system (WWTS) is used to as an emergency

or temporary treatment system directly from source.

Water is treated at the source for human use.

The CSIR Laboratory has the capability to test water

quality as per the drinking water standard (SANS 241).

Through this testing procedure, acceptable water

quality can be guaranteed.

Amadrum is a point-of-use water treatment system

which treats raw water to an acceptable drinking

quality.

The CSIR can prepare comprehensive assessments

and monitor water resources over a period of time.

Additionally, drinking water pollution incidents which

are caused by interruptions in water supply can be

addressed.

Decentralised wastewater treatment systems

Decentralised systems can be used to augment

existing WWTSs. Decentralised wastewater treatment

systems (DEWATS) are renowned for low operation

and maintenance requirements. They require

smaller-scale investment commitments compared to

centralised solutions. ■

Contact: Manager, Water Research

Centre, Dr Rembu Magoba

Email: RMagoba@csir.co.za


OVERVIEW

Tourism

Resumed flights augur well for the economy.

SECTOR INSIGHT

The KZN Tourism Relief Fund

is helping Covid-stressed

businesses.

Both Qatar Airways and SAA had resumed flights to King

Shaka International Airport by early March 2022, a good

sign for the recovery of the regional economy. SAA is

flying three times a week while the Doha-based airline

is offering four flights per week.

The KZN Tourism Relief Fund was put in place to provide relief

to majority black-owned tourism businesses. The R20-million

fund, modelled on the National Tourism Relief Fund, was capped

at R50 000 per business.

Rural tourism, as well as women- and youth-owned businesses,

are at the centre of the provincial government’s Tourism Recovery

Plan. The projects include the development of a tourism precinct at

Howick Falls in uMgungundlovu District Municipality, improvements

at KwaXolo Caves Adventures in Ugu District Municipality and the

construction of uMtubatuba Tourism Information and SMME Centre

in uMkhanyakude District Municipality.

The combined contribution of retail and tourism to provincial GDP

is 14%. Research by Tourism KwaZulu-Natal shows that the coastal

province consistently has the best hotel occupancies in the country.

The Docklands Hotel at the Durban Waterfront is a four-star

Signature development that cost about R100-million to develop.

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

complex on Durban’s Golden Mile. Suncoast Casino Hotels &

Entertainment covers a huge area and offers a wide variety of

entertainment options.

Tsogo Sun has four other hotels on the Golden Mile and six hotels

in Durban with a further four in nearby Umhlanga, where one of the

group’s most luxurious hotels, the 89-room Beverly Hills, is located.

A “mega-hotel” was created with the amalgamation of the Southern

ONLINE RESOURCES

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

Ezemvelo KZN Wildlife: www.kznwildlife.com

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

Credit: Qatar Airways

Sun North Beach and Southern

Sun Elangeni hotels.

Premier Hotels & Resorts will

spend about R420-million on two

new hotels at Umhlanga. The 207-

room Hilton Garden Inn has been

operating at Umhlanga Arch

since 2020. The new Radisson

Blu Oceans Umhlanga Hotel is

expected to open in 2022. The

Royal Hotel in the heart of Durban

is one of eight Three Cities Group

hotels in the province. The Golden

Horse Casino Hotel is a Three

Cities property, and the Group

administers the International

Hotel School in Westville that also

hosts the Christine Martin School

of Food and Wine.

IFA Hotels & Resorts runs

several luxury properties including

the Zimbali Coastal Resort and

Zimbali Lakes Resort. Signature

Life Hotels has 13 properties and

Gooderson Leisure has a varied

portfolio. Sibaya Casino and

Entertainment Kingdom, a Sun

International property, is north

of Durban between Umdloti

and Umhlanga. The casinos

in Newcastle (Century City),

Empangeni (Tusk Umfolozi Casino)

and Pietermaritzburg (Golden

Horse Casino) are run by Century

Casinos Newcastle, Peermont

Global and Akani Msunduzi

Management respectively. ■

KWAZULU-NATAL BUSINESS 2022/23

40


ICT

OVERVIEW

Infrastructure has to be rebuilt after severe flooding.

One of the results of the violent floods that affected

KwaZulu-Natal in 2022 was the destruction of ICT

infrastructure. Mobile operator MTN lost connections

to 500 sites through a combination of towers being

knocked down and interrupted electricity supply. Some fibre

ducts also became water-logged. The major

telecoms companies worked quickly to restore

connectivity and donated blankets and other

supplies to affected communities.

More than 500 SMMEs are expected to participate

in a rollout of more than 20 000 public hotspots

across the province. Key areas will include taxi ranks,

schools and public health facilities. More than 140 sites

have been successfully connected in several districts

through the SA Connect programme.

A provincial strategy for creating smart cities is

targeting three districts: Ugu (Ray Nkonyeni Local

Municipality as anchor); iLembe (KwaDukuza); Richards

Bay (uMhlathuze).

Broadband Infraco is providing layer two

network services to Dube TradePort (pictured) to

provide over 810 WiFi hotspots at 405 selected sites

across the province.

Over the next five years, the Moses Kotane Institute, another

subsidiary of the KZN Department of Economic Development,

Tourism and Environmental Affairs, will connect several rural

communities. Hubs are expected to be functional in Community

Service Centres to improve public access to digital services.

South African Vanguard of Technology (Savant) is a Department

of Trade, Industry and Competition (dtic) programme. It is the

marketing and awareness programme for the South African ICT and

electronics sector. The aim is to develop South African exports and to

attract foreign investment. It houses a venture fund and an incubator.

A SmartXchange SMME Incubator has been launched in

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

ONLINE RESOURCES

Dube TradePort: www.dubetradeport.co.za

Information Technology Association of South Africa: www.ita.org.za

SmartExchange: www.smartxchange.co.za

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

SECTOR INSIGHT

Dube TradePort is a

provincial leader in

digital technology.

expanded to include media and

electronics, so the hub is called an

MICTe Incubator.

The province’s SmartXchange is

an example of a successful publicprivate

partnership that supports

businesses in the information

technology and communications

sector. Incubation strategies for

start-ups and skills development

(including links to educational

institutions) are important parts of

the organisation’s brief.

KwaZulu-Natal has an

established skills base in

microprocessors and radiobased

systems and a strong

manufacturing base. ■

41 KWAZULU-NATAL BUSINESS 2022/23


OVERVIEW

Manufacturing

Sappi’s giant plant at Umkomaas is set to grow again.

SECTOR INSIGHT

Hulamin is supplying a US

electric car manufacturer.

EBH has extensive facilities in the Port of Durban.

Sappi’s massive Saiccor Mill on KwaZulu-Natal’s south coast is

on course to grow even bigger. The company is conducting

feasibility studies to construct a plant to produce furfural. The

pilot plant will be erected in the course of 2022.

The Saiccor mill has the capacity to produce approximately

800 000 tons of dissolving pulp per annum, mostly export.

Capacity will rise above 900 000 tons once an expansion project

is complete.

Aluminium producer Hulamin experienced reduced demand

during the Covid-19 lockdowns but has secured a number of good

orders, including to supply product to a US manufacturer of electric

vehicles. Hulamin had previously laid off some workers and closed

one of its factories in another province. The company believes that

its restructuring is working well, and its beverage business is thriving.

Hulamin also makes rolled products at Edendale, Pietermaritzburg

and at Camps Drift.

Dube TradePort attracted R7-billion in private and public sector

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

logistics operations, is expected to attract much more.

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

Bay Industrial Development Zone (RBIDZ), is attracting investments

in a wide range of sectors.

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

new facility at Dube TradePort to complement its existing factory in

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

and distribution centre in Cornubia, north of Durban.

The manufacturing sector contributes 17.7% to the provincial

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

ONLINE RESOURCES

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

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

Enterprise iLembe: www.enterpriseilembe.org.za

export sectors are base metals

(32% including aluminium),

mineral products such as ores,

vehicles and chemical products.

New opportunities in

the Blue economy (shipbuilding

and maintenance,

oil-rig repair and servicing)

and the Green economy (solar

panel manufacture, solar,

biogas and wind energy plant

construction, management

and maintenance, heating

and cooling devices) are set to

grow in KwaZulu-Natal with the

allocation of geographical hubs

to support these sectors, and

the introduction of policies and

incentives designed to make

them competitive.

Two large oil refineries

and a sophisticated sugar

milling and refining industry

underpin provincial chemical

manufacturing although the

SAPREF refinery announced

a suspension of operations

in February 2022. The

chemicals and petrochemicals

subsector makes up 17% of

the manufacturing output of

KwaZulu-Natal, with industrial

chemicals accounting for nearly

a third. Steel and aluminium

are other heavy manufacturing

products. Newcastle is a

chemical manufacturing hub. ■

KWAZULU-NATAL BUSINESS 2022/23

42


31391

Commercial Banking

Nedbank partners

with the automotive industry

to drive competitiveness

amid turbulence

By Amith Singh, National Manager Manufacturing

The South African automotive industry,

which generates around 18,7% of domestic

manufacturing output, plays a significant role

in our country’s economy, with a GDP contribution

comparable to that of mining and agriculture.

The 2022 Automotive Export Manual released

by the Automotive Industry Export Council earlier

this year also revealed that vehicle and automotive

component exports increased by 18,1% in 2021

to comprise 12,5% of total South African exports.

Unfortunately, the industry has been hit hard

by recent global and local events, including

global supply chain disruptions and operational

efficiencies at South African ports that are well

below international standards, further exacerbated

by riots and cyberattacks. More recently

the flooding in automotive-intensive KwaZulu-

Natal and onerous load-shedding schedules

resulted in the manufacturing production figures

released for April 2022 showing a substantial

decline of 7,8% year-on-year.

With most of these setbacks hopefully behind

us, and efforts being made to stabilise electricity

supply and improve the situation at our ports,

savvy automotive manufacturing firms should

consider the five trends that Deloitte’s 2022

manufacturing industry outlook pinpointed

to watch. With business agility critical for

organisations to operate through unprecedented

turbulence, the report identifies key strategies

to drive competitiveness. These include

embracing technology to create more connected,

reliable, efficient and predictive processes;

carefully reviewing cyberdefences and resilience

in the event of cyberattacks; and closely

monitoring the fast-evolving environmental,

social and governance (ESG) landscape and

adjusting operations accordingly. Proactive

approaches to these challenges will help

automotive manufacturers mitigate setbacks

while creating a competitive advantage.

Nedbank’s deep understanding

of the manufacturing industry has enabled

us to develop tailor-made solutions in this field,

making us the expert strategic banking partner

to grow our clients’ businesses. The bedrock

of our manufacturing portfolio is the deep,

lasting and value-adding relationships

we develop with our clients and key industry

stakeholders. These solutions are underpinned

by our continuous drive to innovate our

financial and administrative functions, enabling

you to take your business to the next level.

Through this profound insight we provide

bespoke, innovative financial solutions

to help grow our clients’ businesses

and strengthen their competitiveness in

the market. For example, because we know

that present macroeconomic challenges

coupled with power supply issues lead

to having cash flow constraints that could

prohibit delivery and growth, we have a range

of solutions to mitigate that risk. Similarly,

as the green bank, we offer a comprehensive

range of solutions to promote the sustainability

of clients’ businesses, giving them the

competitive advantage that is so vital

in the market.

Our vast experience in global trade

enables quicker, more efficient cross-border

transactions when importing and exporting,

and easy access to funds smooths out cash

flow fluctuations between production cycles,

enabling clients to take advantage

of discounts and bulk offers.

But the real value we offer is our partnership

approach, which means clients benefit

from a committed partner with industry

expertise who will advise on growth,

investment and financial strategies based

on our deep insight into each client’s unique

financial situation.

For more information about our specialist

manufacturing services, email us at

manufacturing@nedbank.co.za.

Singh is Nedbank Commercial Banking’s

national manager for the manufacturing

sector. He holds a degree in business

management from the University of Cape

Town, a postgraduate degree in sales

management, and is a qualified Neethling

Brain Institute practitioner. He has been

in banking for 19 years.

Nedbank Ltd Reg No 1951/000009/06. Licensed financial services and registered credit provider (NCRCP16).


OVERVIEW

Education and training

New streams are being introduced at schools.

SECTOR INSIGHT

Coding and Robotics are part of

the programme at 200 schools.

Science on show at the Anton Lembede Mathematics, Science

and Technology Academy. Credit: KZN Department of Education

The first school in KwaZulu-Natal to focus exclusively

on Maths, Science and Technology opened in 2021

when the Anton Lembede Mathematics, Science and

Technology Academy was launched.

A three-pathways approach has been adopted for future

educational planning. Three broad streams can be followed:

academic, technical/vocational and technical/occupational.

Within that structure, various schools of excellence will be

established: an Agricultural School of Excellence in uMgungundlovu

District, a Maritime School of Excellence and a School of Autism.

In 2022 four new schools will implement the teaching of technical

occupational subjects which was piloted in 2020.

More than 200 schools will soon start to offer Coding and

Robotics as part of the curriculum in Grades 8 and 9. A pilot

programme teaching entrepreneurship was piloted in 2021 in the

King Cetshwayo District and will now be rolled out in other areas.

The Sukuma 100 000 programme was launched in 2020 by the

Provincial Government of KwaZulu-Natal with the goal of helping

young people make the transition from an educational environment

into the world of work.

With the assistance of the private sector, the Youth Directorate in

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

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

entities and government departments will also participate in

the programme, which is scheduled to last five years.

In another initiative related to competencies, a skills audit is to

be conducted among senior

officials across the province. The

audit began in municipalities and

will be extended to provincial

departments and agencies of the

province in due course.

KwaZulu-Natal has nine

Technical and Vocational

Education and Training (TVET)

Colleges with a total enrolment of

about 80 000.

Coastal KZN TVET College

gives students practical

experience through facilities such

as the Nongalo Industrial Park.

The college hosts the Samsung

Engineering Academy, a Tooling

Centre of Excellence and a

manufacturing plant for sanitary

towels. The college has several

sites on the South Coast and

caters for 15 400 students.

Majuba TVET College is

a Centre of Specialisation for

boiler-making. The Mnambithi

TVFET College is located in the

Battlefields Route tourism area

and offers National Diploma

courses in tourism, among other

qualifications. A satellite campus

operates at Estcourt.

Universities

There are two universities and

two universities of technology in

KWAZULU-NATAL BUSINESS 2022/23

44


OVERVIEW

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

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

Development offers business courses for executives.

UKZN has close to 40 000 students studying on five campuses

in two cities. Greater Durban hosts Howard College, Berea

(environment, engineering, law, humanities) and the Nelson

Mandela School of Medicine at Congella. The UKZN administration

and the Graduate School of Business are based at Westville (also

science, engineering and health) whereas the Edgewood, Pinetown,

campus focusses on education.

The Pietermaritzburg campus offers a broad academic

programme but its specialities are fine art, theology and agriculture.

UKZN also hosts the National Research Foundation.

The Durban University of Technology (DUT) has six faculties

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

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

of only two chiropractic programmes in South Africa.

The University of Zululand offers diploma and degree courses on

two campuses at Empangeni and Richards Bay.

Several provincial government departments make tertiary

bursaries available to qualifying students, including Agriculture and

Rural Development, Human Settlements, Public Works, Transport

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

supports 26 public universities across the country in advancing

payment of registration fees for poor students.

The private sector also actively supports education through

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

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

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

Programme (ISFAP) provides bursaries for students from families

earning less than R600 000 per annum.

Schools

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

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

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

annual examinations.

There is now near universal access to primary and secondary

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

ONLINE RESOURCES

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

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

National Research Foundation: www.nrf.ac.za

National Skills Authority: www.nationalskillsauthority.org.za

has achieved a 70% success

rate. The province has 1 689

early childhood development

centres.

Transport is provided to

350 schools, covering 59 000

pupils, and 2 400 bicycles have

been made available under the

Shovakalula programme.

A primary school in the

Harry Gwala District was the site

of the launch of an e-learning

infrastructure programme that

is intended to be rolled out

to rural areas throughout the

province. Digital access will

allow pupils in remote areas

to be connected to the best

teachers in the province.

The unbundling from the

successful Curro group of a

separate tertiary entity which

listed on the JSE as Stadio

Holdings is a good indicator

of the growth of the private

sector in education. Stadio

currently has three institutions:

Southern Business School,

AFDA (the School for the

Creative Economy) and the

Embury Institute for Higher

Education which has a campus

in Musgrave, Durban. There are

seven schools in KwaZulu-Natal

operating under Curro brands.

Advtech, the other big

private company in the sector,

already has 27 tertiary campuses

nationally, in addition to its

78 schools operating under

a variety of labels. Advtech

operates 10 educational sites

in KwaZulu-Natal, including

schools such as Crawford and

Trinity House, a chefs’ school

(Capsicum), three Varsity

Colleges and the Design School

for Southern Africa. ■

45 KWAZULU-NATAL BUSINESS 2022/23


OVERVIEW

Development finance and

SMME support

Billion-rand plan to transform the sugar industry will benefit the SMME sector.

The sugar industry’s R1-billion five-year plan to transform

the sector will have positive spinoffs for small-scale

growers and distributors.

Contributions from millers and growers have allowed for sums

of R165-million (transformation) and R60-million (Value Chain Masterplan)

to be allocated as the first part of the scheme. National government

supported these measures with initiatives of its own, including providing

input vouchers to small-scale growers. The aim is to reach up to 250 000

small-scale farmers (including the 21 000 contributing to the sugarcane

value chain), in partnership with the private sector.

The provincial government’s Sukuma 100 000 surpassed

its target by creating 137 000 job opportunities in 2021, with

all government departments participating in focussing on

opportunities for youth employment.

Examples of companies that received support under the

project are Gelanison Agric, an agricultural initiative that produces

high-value crops using the hydroponic system, and AdNotes, a

telecommunications company which is 100% black and youth

owned. The company received funding from the KZN Youth Fund and

provides Internet services in the Ugu and King Cetshwayo Districts

and eThekwini Metro.

Operation Vula Fund is an SMME grant funding scheme run by the

KwaZulu-Natal Department of Economic Development, Tourism and

Environmental Affairs (DEDTEA). A total of 961 applications to the value

of R305-million have been approved to date.

Funding from the National Department of Trade, Industry and

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

Industrial Development Corporation (IDC) secured 70% of Newcastlebased

Boschpick Engineering for entrepreneurs Bongani Khumalo and

Phillip Majali and their company Lipsobex. The IDC provides finance

across a range of sectors from agriculture to tourism.

The Small Enterprise Development Agency (Seda) is active in

supporting entrepreneurs. Seda gives non-financial support through

ONLINE RESOURCES

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

SA SME Fund: www.sasmefund.co.za

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

SECTOR INSIGHT

Operation Vula Fund disburses

grant money to SMMEs.

training, assistance with filling in

forms, marketing and creating

business plans.

In KwaZulu-Natal, Seda runs

12 Incubators which either help

new businesses get started or

with the rehabilitation of existing

enterprises. Three models are

used: Technology Demonstration

Centres (demonstration and

training); Technology Incubators

(where the focus is rehabilitation);

Hybrid Centres, which combine

elements of the other two models.

The KwaZulu-Natal Incubators

include ICT and construction

(three centres each), furniture and

hi-tech (two each) and chemicals

and essential oils.

Sappi is helping honey-makers

make money. A project run jointly

by Sappi and the African Honey

Bee programme is supporting

about 100 beekeepers in northern

KwaZulu-Natal and encouraging

them to invest in sources of

income such as vegetable gardens

that can keep their families going

between honey harvests. A

benefit to Sappi is that fires which

used to be used as a method of

smoking out bees has largely

been eliminated, reducing the risk

to Sappi’s plantation assets. ■

KWAZULU-NATAL BUSINESS 2022/23

46


SEDA

Seda offices

Seda contacts

KWAZULU-NATAL MANAGEMENT

Provincial Office

Koenie Slabbert - Provincial Manager

Tel:

Provincial

Seda Limpopo

+27 15 287

Manager:

Provincial

2940

Mr Cedric Mnguni

Mopani Branch

Fax: Physical

Office

+27 15 297 address: 4022 46 Essex Terrace,

(located

Essex Park

in Tzaneen)

Email: Ground Mr kslabbert@seda.org.za

Koenie Floor, Slabbert: Block Provincial B, Westville 3629 Ms Maseje Nchabeleng: Branch

2nd Tel: Manager Floor (031) Suite 6, 277 Maneo 9500 Building, | Email: 73 Biccard cmnguni@seda.org.za

Street, Manager Polokwane 0700

Postnet Tel: Suite +27 15 32287 Private 2940 Bag X 9307 Polokwane 0700 Tel: +27 15 306 6400

Branch Fax: +27 Manager: 15 297 4022 Sibongile Sabela Fax: +27 15 307 2233

Seda Physical Email: Vhembe kslabbert@seda.org.za

address: Branch 46 Essex Terrace, Email: Essex Park

Mr Ground Marcus Physical Mukumela Floor, address: Block - Branch 2nd Floor B, Manager Westville 3629 mnchabeleng@seda.org.za

Tel: Tel: +27 15 960 8700

Nictus (031) Building 277 9500 | Email: ssabela@seda.org.za

Physical address: 2nd Floor

Fax: 086 634 8964

68 Hans van Rensburg Street ABSA Building

Email: mmukumela@seda.org.za

Branch

Old Polokwane Manager: Michael Zondo

Mutual Building, Old Group Scheme Offices, Mphephu 13 Danie Road, Joubert Thohoyandou Street 7950

Physical 0699 address: 283 Langalibalele Tzaneen Street

Seda The Capricorn Tourism Branch Hub, 2nd Floor, Pietermaritzburg 0850 3201

Mr Tel: Peter Capricorn (033) Maredi 264 - Branch 3100 Manager | Email: mzondo@seda.org.za

Tel: (located +27 15 290 8720 in Polokwane) Waterberg Branch

Fax: Branch Mr.

+27

Peter

15 Manager: 290

Maredi:

8736

Branch Dennis Manager Ndlovu (located in Mokopane)

Email: Physical pmaredi@seda.org.za

Tel: +27 15

address:

290 8720

LOT 611237, Via Verbena

Mr Steve Botha: Branch Manager

1st Veldenvlei, Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699

Fax: +27 15 290

Richards

8736

Bay 3900

Tel: +27 15 492 9600

Tel: (035) 901 2660 | Email: dndlovu@seda.org.za

Seda Email: Waterberg pmaredi@seda.org.za

Branch

Fax: +27 15 491 7361

Mr Steve Physical Botha address: - Branch 1st Manager Floor

Email: sbotha@seda.org.za

Branch Manager: Thembinkosi Kunene

Tel: Nictus +27 15 Building 492 9600

Physical address: Old Nedbank

Physical address: 28 Bazley Street, Office 4

Fax: 68 +27 Hans 15 491 van 7361 Rensburg Street Building

Email:

First

Polokwane sbotha@seda.org.za

Flood, Port Shepstone 4240

40 Retief Street

Old Tel:

0699

Nedbank (039) Building, 688 1560 40 Retief | Email: Street, Mokopane tkunene@seda.org.za

Mokopane

0600

Seda Branch Mopani Manager: Branch Justice Shange

Vhembe Branch

Martin Physical Rafferty address: - Acting Branch 48 Margaret Manager Street

(located in Thohoyandou) Sekhukhune Branch

Tel: Ixopo +27 153276

306 6400

Fax: Mr +27 Marcus 15 307 Mukumela: 2233 Branch (located in Groblersdal)

Tel: (039) 834 7100 | Email: jshange@seda.org.za

Email: Manager mrafferty@seda.org.za

Mr Sabelo Ntshangase

27

Branch

Peace Tel: +27 Street,

Manager: 15 960 1st Floor, 8700Thanda Prosperitas

Khathi

Building, Tzaneen Tel: +27 0850 13 262 9430

Physical Fax: +27 15 address: 962 4285 94/96 Murchison Fax: Street +27 13 262

Seda Sekhukhune Branch

Ladysmith Email: mmukumela@seda.org.za

3371

Email: sntshangase@seda.org.za

Mr Sabelo Ntshangase - Branch Manager

Physical address: Bindulavhathu Physical address:

Tel: Tel: +27 (036) 13 262638 94309780 | Email: tkhathi@seda.org.za

Email: Office sntshangase@seda.org.za

Building

Mutual Building

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

Physical Thohoyandou address: 28 Scott Street Hereford Street

Newcastle 0950 2940

Groblersdal

Tel: (034) 328 0620 | Email: dzikalala@seda.org.za

0470

We have built a strong team in the province made up of 16 Business

Advisors, two Regional Facilitators and five Information Officers who have

Our goal the responsibility is to make of measurable making measurable differences differences in the in the businesses businesses that

we assist. they assist. The Seda This team team of Business of Business Advisors Advisors works works closely closely with a team with of

a team

carefully

of carefully

selected

selected

service providers

service

who

providers

possesses

who

expert

posses

knowledge

expert

in

knowledge in different areas of business and industry sectors.

different functional areas of business and industry sectors.

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

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT

“Together advancing small enterprise development”


OVERVIEW

Banking and financial services

Financing of infrastructure is becoming a priority.

The launch by Sanlam Investments of a Sustainable Infrastructure

Fund is a sign of the times. The South African state and

the Provincial Government of KwaZulu-Natal have promised

a huge infrastructure drive but in the context of climate

change caused by the use of fossil fuels, the investment community

is increasingly putting emphasis on sustainability. Sanlam Group will

invest R6-billion in the fund and aims to attract a further R5-billion from

institutional investors. Investments will be made in housing, transport,

health, water, waste, communication, conventional energy and renewable

energy, a fast-growing sector with enormous potential.

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

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

is currently stretched beyond capacity and waiting time for trucks

can be extremely long.

Activist groups in Durban’s southern suburbs are opposing

the loan and the expansion, saying that further development will

increase pollution in the area and lead to even more dangerous

traffic congestion.

Up the coast at Richards Bay, the World Bank’s International

Finance Corporation (IFC) has committed $2-million to a feasibility

study on the construction of a liquefied natural gas (LNG) storage

and regasification terminal. The study’s costs are shared with Transnet

and a private investor will be sought if the feasibility study is positive.

Aspen Pharmacare is a speciality pharmaceuticals company with

a presence in more than 50 countries and nearly 9 000 employees.

The company’s headquarters are in La Lucia Ridge north of Durban.

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

newest stock exchanges (the primary listing remains on the JSE) was

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

Of the four new exchanges that South Africa has seen since 2017,

ZARX has been suspended and 4AX has rebranded as the Cape Town

Stock Exchange. Equity Express Securities Exchange (EESE) trades in

Black Economic Empowerment (BEE).

Together with real estate and general business, the financial sector

in KwaZulu-Natal accounts for 18% of gross domestic product (GDP).

ONLINE RESOURCES

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

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

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

SECTOR INSIGHT

Aspen has launched

a secondary stock

exchange listing.

Credit: Unsplash

Big strides have been made

in providing banking services

to the previously unbanked

but there is still a long way

to go. The widespread use of

smartphones is creating new

opportunities for banks and

other financial service providers

to further close the gap.

Standard Bank introduced

the low-cost MyMo account

in KwaZulu-Natal in 2020. With

free electronic transactions,

unlimited card swipes and a low

monthly fee, the MyMo account

is ideal for low-income earners,

micro-entrepreneurs and the

poor. Customers do not have to

visit branches to sign up for the

account. They can take a selfie

on the mobile app. ■

KWAZULU-NATAL BUSINESS 2022/23

48


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