KwaZulu-Natal Business 2023-24

OVERVIEW
Manufacturing
Two new Special Economic Zones are planned.
A
key component of the economic policies of KwaZulu-Natal
and South Africa is the support of Special Economic Zones
(SEZs). In addition to its two existing zones, the province
wants to establish two new ones.
Leather and textiles will be the focus of the planned SEZs in the
Newcastle-Ladysmith corridor, an area where those industries already
flourish. The province’s two established zones, Dube TradePort (at
King Shaka International Airport, pictured) and Richards Bay Industrial
Development Zone (RBIDZ) are attracting investments in a range of
targeted sectors, agricultural exports and logistics, manufacturing
and energy, among others.
TradeZone2 at Dube TradePort has been completed and has
started attracting investors. These include:
• Futurelife, food-processors, R57-million
• LM Diapers, expansion of plant, R75-million
• Synergy Blenders, chemical manufacturing, R93-million
KwaZulu-Natal is the second-largest manufacturing centre in
South Africa, contributing 21% to national manufacturing GDP. The
strongest export sectors are base metals (32% including aluminium),
mineral products such as ores, vehicles and chemical products.
The sector is also a major contributor to the eThekwini
Municipality GDP. The city’s economy grew 4.9% in 2021, 73% of
which came from manufacturing, finance, business and trade.
“Manufacturing is responsible for 20% of the employment
opportunities in eThekwini which translates to 176 000 jobs of
which 83% are semi-skilled,” says Takalani Rathiyaya, Head of
the Economic Development Programmes Department at the
eThekwini Municipality. Over the last five years the municipality
established four manufacturing clusters that collectively have
over 200 member firms.
Through the Durban Chemicals Cluster, Durban Automotive
Cluster, KZN Clothing and Textiles Cluster and eThekwini Furniture
Cluster, a number of programmes are tackling challenges and
attempting to stimulate growth. As Takalani explains, “Though we
are only a couple of years into our industrial recovery plan, we are
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
SECTOR INSIGHT
Durban’s cluster
approach is paying off.
seeing the first green shoots
in harnessing the industry’s
potential to create highincome
jobs, boost upstream
development of local businesses
as well as benefit from the
multiplier effect for both formal
and informal workers.”
Sappi’s massive Saiccor Mill
on KwaZulu-Natal’s South Coast
is one of the province’s largest
processing facilities.
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
Camps Drift.
LG Electronics South Africa
has opened a R21-million
factory and distribution centre
in Cornubia, north of Durban. ■
KWAZULU-NATAL BUSINESS 2023/24
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PHOTO: Dube TradePort