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
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