KwaZulu-Natal Business 2016-17 edition

KWAZULU-NATAL 

BUSINESS 

2016/17 EDITION 

THE GUIDE TO BUSINESS AND INVESTMENT 

IN KWAZULU-NATAL PROVINCE 

4 

JOIN US ONLINE 

WWW.KWAZULUNATALBUSINESS.CO.ZA

KWAZULU-NATAL BUSINESS 2016/17 

II

1 KWAZULU-NATAL BUSINESS 2016/17

CONTENTS 

CONTENTS 

KwaZulu-Natal Business 2016/17 Edition 

Introduction 

Foreword 9 

Welcome to KwaZulu-Natal, one of Africa's 

tourism and trade powerhouses. 

Features 

Regional overview of KwaZulu-Natal 10 

Energy generation and the Oceans Economy 

hold great promise in KwaZulu-Natal. 


2

CONTENTS 

3 KWAZULU-NATALBUSINESS 2016

CONTENTS 

Introducing the province of KwaZulu-Natal 18 

The second-largest provincial economy has much 

to offer local and international investors. 

Major events promoting KwaZulu-Natal 

as a trade and investment destination 26 

The east3ROUTE initiative is playing a major role in 

boosting trade and investment in the province. 

Commonwealth Games 2022 50 

For the first time in its 85-year history, the 

Commonwealth Games will be held in Africa. 

A period of positive growth and development 54 

An overview of South Africa's social, political 

and economic progress and potential. 

Growing agri-business in KZN 58 

Agri-parks and trade agreements form 

the backbone of the province's future. 

Economic sectors 

Agriculture 62 

The diversity of KwaZulu-Natal's agricultural sector is providing 

new sources of income. 


4

CONTENTS 

Forestry and paper 64 

KwaZulu-Natal makes huge amounts of dissolving wood pulp 

and paper. 

Sugar 72 

Sugar production levels have been affected by the drought. 

Oil and gas 74 

Oil and gas companies are exploring off the coast of 

KwaZulu-Natal. 

Mining 78 

The rich mineral sands of northern KwaZulu-Natal underpin 

the province's mining sector. 

Manufacturing 80 

KwaZulu-Natal makes aluminium, steel, chemicals, vehicles 

and footwear. 

Automotive 84 

Bell Equipment and Toyota anchor a strong automotive sector. 

Water 86 

New dams and pipelines are under construction in 


Renewable energy 88 

Bio-mass is leading the way in KwaZulu-Natal. 

Banking and financial services 90 

Merchant banking is very competitive in KwaZulu-Natal. 


6

EMNAMBITHI/LADYSMITH MUNICIPALITY 

Your Partner in Growth and Prosperity 

VISION 

By 2020 the Emnambithi/Ladysmith Municipality will be KwaZulu-Natal’s vibrant, industrial, 

commercial, trade and tourism interlink, where all residents enjoy a prosperous, caring, safe 

and secure environment which promotes cultural diversity. 

MISSION 

To provide a well-serviced, safe, healthy and economically viable environment that enables 

all residents to take action so that all communities can enjoy a high quality of life. 

LOCATION 

Emnambithi/Ladysmith is situated halfway between South Africa’s key domestic markets 

in Gauteng, Bloemfontein and the major export harbour in Durban. The N3 and the N11 

national roads provide an easy access to all neighbouring provinces and countries. 

ELM Mayor: 

Cllr M V Madlala 

AN ATTRACTIVE INVESTMENT DESTINATION 

The Emnambithi/Ladysmith town is known for its history in the Promotion of Industrial 

Development since the early nineteenth century. This is demonstrated through the 

Municipality’s Incentive Policy for new and expanding businesses, as well as for its Business 

Retention and Expansion Programme. 

Ladysmith offers several industrial areas, such as Acaciavale, Danskraal and Colenso, with 

the largest being the Ithala Industrial Estate located a short distance from the CBD. Factories, 

industrial sites and affordable labour are readily available and industrial stand sizes vary 

from 2 000 to 8 000 square metres. The town is a major agricultural zone for dry crops and 

has abundant water resources, with the largest river (the UThukela River) running through 

the town. These sites are all easily accessible by road and rail, although the town also has a 

mini-airport which is designed to serve transportation of goods and small passenger planes. 

Subdivisions and stand sizes can be negotiated to meet your particular requirements. 

Assistance will be provided with rezoning and EIA applications. Ladysmith has a wellestablished 

commercial and social infrastructure. Its residential areas are situated away 

from the commercial and industrial centres to ensure quiet and pleasant living conditions, 

it has an array of top schools and Higher Education Institutes which include TVET Colleges, 

Nursing Schools and so on. 

ATTRACTIONS 

Ladysmith rests on the open floodplains of the Klip River in the foothills of the mighty 

Drakensberg. It forms a natural gateway to many mountain resorts and the Okhahlamba 

Drakensberg World Heritage Site is set in some of the most scenic areas in the country. 

Ladysmith forms part of the heart of the KwaZulu-Natal, “The Kingdom of the Zulus”. 

The Town is known as the “City of Music” because it’s the birthplace for the multi-Grammy 

Award winning Isicathamiya Group known as Ladysmith Black Mambazo. It also has various 

attraction sites such as the Long Tom Cannon in front of the Majestic and Historical Town 

Hall. Ladysmith lies in the heart of the Battlefields Route and has the province’s greatest 

number of Battlefields sites and memorials. These sites are brought to life for visitors when 

accompanied by the qualified tour guides. Major events include the Ladysmith Show, 

Arthur Creswell Marathon, Van Reenen / Swirnburne Yenza Community Festival, the Annual 

Battlefields Festival, Nyusi Volume and the Annual Heritage Festival, which provide a vibrant 

events tourism platform for the town to showcase its rich historical and cultural heritage. 

Location 

Ithala Industrial Estate 

Mr T E Ndlovu 

Assistant Manager: 

Local Economic Development 

Tel: 036 637 2104 / 2090 

Cell: 082 497 8743 

Email: tendlovu@ladysmith.co.za 

Mrs R Thomas 

Assistant Manager: 

Tourism 

Tel: 036 637 2231 / 2992 

Cell: 083 633 7462 

Email: rthomas@ladysmith.co.za

CONTENTS 

Development finance and SMME support 102 

Funds are available for entrepreneurs in KwaZulu-Natal. 

Education and training 104 

The education sector in KwaZulu-Natal needs to grow. 

Tourism 106 

Two international airlines have announced new routes 

connecting to Durban. 

Government 

South African National Government 110 

KwaZulu-Natal Provincial Government 114 

KwaZulu-Natal Local Government 115 

Reference 

MUNICIPALITIES IN KWAZULU-NATAL 

Mpumalanga 

SWAZILAND 

Umhlabuya- 

MOZAMBIQUE 

lingana 

eDumbe 

uPhongolo 

Jozini 

eMadlageni 

Sector contents 58 

Index 120 

Maps 

Locator map 13 

Regional map 14 

Municipal map 117 

KWAZULU-NATALBUSINESS 2016/17 

8 

uMkhanyakude 

Newcastle 

Abaqulusi 

Amajuba 

The Big 

Free State 

Nongoma 

Zululand 

Five 

Dannhauser 

False 

KZDMA27 Bay KZDMA27 

Endumeni 

Ulundi 

Nqutu 

Hlabisa 

Emnambithi/ 

Ladysmith 

uMzinyathi 

Mtubatuba 

KZDMA23 

Mthonjaneni 

Indaka 

Mbonambi 

uThukela 

Ntambanana 

Msinga 

Nkandla 

Ukhahlamba 

uThungulu uMhlathuze 

LESOTHO 

uMtshezi 

uMlalazi 

Imbabazane 

uMvoti 

KZDMA23 

Mpofana 

KwaDukuza 

Maphumulo 

KZDMA22 

uMshwathi 

uMngeni 

iLembe Mandeni 

uMgungundlovu 

Impendle 

KZDMA43 

Msunduzi 

Maphumulo 

Kwa 

eThekwini 

Sani 

Richmond 

Metropolitan 

Ingwe 

Municipality 

Mkhambathini 

uBuhlebezwe 

Sisonke 

Vulamehlo 

INDIAN OCEAN 

N 

uMzimkulu 

Ugu 

Umdoni 

Greater 

Kokstad 

Umzumbe 

uMuziwabantu

CREDITS 

Publisher: Chris Whales 

Publishing director: 

Robert Arendse 

Editor: Simon Lewis 

Writing: John Young 

Online editor: Christoff Scholtz 

Art director: Brent Meder 

Design: Colin Carter 

Production: Lizel Oliver 

Ad sales: Sam Oliver, 

Gabriel Venter, Jeremy Petersen, 

Nigel Williams, Veronica Dean- 

Boshoff and Sydwell Adonis 

Managing director: Clive During 

Administration & accounts: 

Charlene Steynberg and 

Natalie Koopman 

Distribution and circulation 

manager: Edward MacDonald 

Printing: FA Print 

KwaZulu-Natal 

Business 

A unique guide to business and investment 

in KwaZulu-Natal. 

FOREWORD 

The 2016 edition of KwaZulu-Natal Business is the eighth 

issue of this highly successful publication that, since its 

launch in 2008, has established itself as the premier 

business and investment guide to the KwaZulu-Natal 

province. The province is unique in terms of its abundant natural 

and human resources, and is also one of the key drivers behind 

the South African economy. 

To complement the extensive local, national and international 

distribution of the print edition of the magazine 

(15 000 copies), 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 other business-to-business titles that cover 

all nine provinces, complemented by our flagship publication, 

South African Business. 

Chris Whales 

Publisher, Global Africa Network Media 

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, trade and 

investment agencies, provincial government departments, municipalities 

and companies. 

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 

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 | Pictures supplied by flickr.com, Wikimedia Commons, 

MAN.co.za, icc.co.za, Rio Tinto, SA Tourism, Skyscrapercity, Jackson's 

African Safaris and Pixabay. Cover image: Grant Pitcher Photography. 

DISCLAIMER | While the publisher, Global Africa Network Media 

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

contained in KwaZulu-Natal Business 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. 



10

A REGIONAL OVERVIEW OF 

KWAZULU-NATAL 

Energy generation and the Oceans Economy hold great promise in KwaZulu-Natal. 

By John Young 

Two of the most important ports in South Africa are at the heart of KwaZulu-Natal's central 

position in the nation's transport and logistics network. As the second-biggest contributor to 

national gross domestic product (GDP) after Gauteng (and a major manufacturer and exporter 

of goods), the KwaZulu-Natal province lends itself to potential investments in many spheres. 


SPECIAL FEATURE 

In recent months, Samsung Electrics has chosen 

the province as the site of a $20-million television 

factory, a Chinese company intends establishing a 

multi-billion-rand steel plant at Richards Bay and a 

pipe-manufacturing concern has put R300-million 

into a new plant. 

Provincial exports rose to R92-billion in 2013 (up 

from R85-billion in 2012) and will have done even 

better in 2015 because of the relatively weaker rand. 

Steel, iron and aluminium account for nearly a third 

of exports, followed by metal products. The third 

sector making a big contribution is the automotive 

and automotive components sector, with about 

18%. Chemicals is the other major export-driver. 

In the base-metals and metal products sectors, 

giant companies such as BHP Billiton, Hulamin, 

Arcelor Mittal and Assmang have a big presence in 

the province. Toyota and Bell Equipment play a big 

role in the automotive sector, while the Engen Oil 

Refinery and dissolving pulp manufacturer Sappi 

are amongst other strategically important entities 

in the provincial economy. 

Sugar, tourism and forestry and paper are the 

other important sectors driving growth and employment 

in KwaZulu-Natal and these will be referred to 

again later in this article. 

The King Shaka International Airport (with its 

own trade port and industrial development zone) is 

another of the province's logistics key points which 

has the potential to boost the regional economy in 

a number of sectors, particularly agricultural export 

and tourism. 

The province's other zone is the Richards Bay 

Industrial Development Zone (RBIDZ). In his State 

of the Province address in February 2016, Premier 

Mchunu announced these recent investments: 

titanium plant (R4.5-billion); bio-mass plant (R2- 

billion); pipe manufacturing plant (R300-million); 

paint manufacturing (R16-million); logistics services 

(R20-million). 

New opportunities 

KwaZulu-Natal province has a very long coastline 

that stretches from Port Shepstone in the south 

to the Kosi Bay Nature Reserve 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 located at 

Durban and Richards Bay. 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 massively increase 

the economic benefits that the ocean can bring. 

An Oceans Economy Review Workshop has come 

up with a range of sub-sectors that can help to 

grow the provincial economy and invite foreign 

direct investment: 

• Marine Transport and Manufacturing 

• Offshore Oil and Gas Exploration 

• Aquaculture 

• Marine Protection and Ocean Governance 

• Small Harbours 

• Coastal and Marine Tourism 

Strategies to grow the so-called Oceans Economy 

will easily dovetail with any and all of the plans to 

boost the capacity of the harbours at Durban and 

Richards Bay, as well as to explore for gas and oil 

in the Indian Ocean. 

Ship-building and ship repairs is an existing 

industry but it is not very big in the province at this 

stage. If oil rigs were to start visiting the KZN coastline 

on a regular basis then this industry would 

grow exponentially. 


12


The Oceans Economy is one of the focus areas 

that has been chosen by national government to 

be part of Operation Phakisa, a focused, goal-driven 

attempt to jump-start a specific economic sector. 

Overall, Phakisa intends creating a million jobs by 

2033 and injecting R177-billion into national GDP. 

The decision to build a cruise-ship terminal at 

the Port of Durban is a good example of the kind 

of decision that is nicely in line with an 'Oceans 

Economy' approach. 

By mid-2016 a bill will be put before the provincial 

legislature to bring into existence the KwaZulu-Natal 

Maritime Institute. This will be run out of the restructured 

Sharks Board and training programmes will be 

coordinated with Transnet to make sure that relevant 

courses are offered. Since 2012, 800 students have 

been studying maritime-related courses. 

The other big potential growth area in KwaZulu- 

Natal is energy. Several licences have been granted 

for offshore exploration and the hope exists that 

something will be found – the vast gas fields off the 

coast of Mozambique are so close after all! 

However, if energy does not come from the sea 

through offshore drilling for oil or gas, there remains 

plenty of potential on land. So far KwaZulu-Natal 

has trailed the rest of South Africa when it comes 

to the innovative and exciting Renewable Energy 

Independent Power Producers Programme (REIPPP). 

Tens of billions of rands and hundreds of megawatt 

hours have been allocated to dozens of projects 

(some of which are already connected to the grid) 

but these have mostly been solar in the Northern 

Cape and wind in the Eastern Cape. 

KwaZulu-Natal is anxious to get with the programme 

and is targeting the forestry sector (waste 

and pulp) and sugar sector (cane and beet) to provide 

feedstock for bio-mass energy generation. One 

project that is part of the national programme is 

under way using these materials, but many more 

are planned. 

The forestry and sugar sectors in the province 

actually generate enough of their own power that 

they could be selling power to the grid, but the 

framework does not yet exist for that to happen. The 

creation of that legislation or regulation must be a 

priority. The Mondi Group are leading the way with 

58% of the fuel consumption of their operations 

being derived from renewable sources. 

Although the forestry and paper sector and the 

sugar sector are grounded in the agricultural sector, 

the leading companies' processing plants and 

downstream beneficiation also make them major 

components of the manufacturing sector and big 

contributors to the province's export basket. 

In addition, Tongaat-Hulett is a major property 

company and Illovo is a continent leader in sugar 

production. Sappi's export of dissolving wood pulp 

makes it a world leader in its field. 

Tourism 

Tourism plays a vital role in the economy of the 

region, with the conference and events sector 

supported by excellent facilities. The jewel in the 

crown is the huge Albert Luthuli International 

NAMIBIA 

Northern Cape 

Western Cape 

BOTSWANA 

North West 

Free State 

Eastern Cape 

Limpopo 

ZIMBABWE 

LESOTHO 

Mpumalanga 

Gauteng 

SWAZI- 

LAND 

KwaZulu- 

Natal 

MOZAMBIQUE 



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 

Convention Centre Complex, which hosts the 

annual Tourism Indaba. 

The province's climate lends itself to every kind of 

outdoor pursuit and its excellent beaches are always 

popular. Big sports events are regularly hosted in 

KwaZulu-Natal, which has become something of 

a home to mass-participation events such as the 

Comrades Marathon and the Dusi Canoe race. The 

province has excellent game and nature reserves. 

Isimangaliso Wetland Park is a World Heritage Site 

and helps to fund 80 small businesses associated 

with its business as a tourist site. 

The building of the King Shaka International 

Airport to the north of Durban allows tourists to get 

to superb beaches and game farms very quickly, 

and the airport has its own industrial development 

zone, the Dube TradePort. New international direct 

flights have been announced; 4.5-million passengers 

passed through the airport in 2014/15, almost 

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

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 

KwaZulu-Natal has 11 district municipalities, the 

most of any province in South Africa and, 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. Major investments 

are taking place at the Port of Durban and 

there is a possibility that the old airport south of the 

city could become another port, if the money can be 

Standerton 

N5 

LESOTHO 

Vrede 

Free State 

Harrismith 

Bergville 

Winterton 

DRAKENSBERG 

Underberg 

Kokstad 

N2 

N17 

Bethal 

Volksrust 

Eastern Cape 

Ermelo 

Newcastle 

Glencoe 

N11 

Mooi River 

Ladysmith 

Colenso 

R74 

Estcourt 

Paulpietersburg 

Utrecht 

Dundee 

PIETERMARITZBURG 

iXopo 

Harding 

N17 

KWAZULU-NATAL PROVINCE 

N3 

R74 

Mpumalanga 

N3 

N11 

R56 

Howick 

Piet Retief 

R34 

R33 

uMzinto 

Greytown 

R33 

N3 

Pinetown 

N2 

Vryheid 

Kranskop 

Hibberdene 

uMtentweni 

Port Shepstone 

Margate 

Southbroom 

Port Edward 

R33 

R68 

N2 

R34 

uLundi 

Melmoth 

Stanger 

N2 

Tongaat 

aManzimtoti 

uMkomaas 

SWAZILAND 

R69 

Ballito 

uMhlanga 

DURBAN 

Pongola 

Nongoma 

R65 

eMpangeni 

Darnall 

R66 

Hlabisa 

Mtubatuba 

Gingindlovu 

INDIAN OCEAN 

Mkuze 

N2 

Hluhluwe 

Richards Bay 

Motorway 

Main Road 

Railway 

MOZAMBIQUE 

St Lucia 

N 


14


found to dig it up and let the sea in. 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, plans are in place to 

upgrade Margate’s airport and Port Shepstone’s 

beachfront. 

Western region 

Also known as the Midlands, this is a fertile agricultural 

region, producing sugar cane, fruit, animal products, 

forestry and dairy products. Pietermaritzburg 

is the provincial capital and is 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 very 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 (RBIDZ) 

is a major economic node in itself: the 62-hectare 

first phase is almost fully subscribed, with the investment 

value of the two phases (some having already 

been secured for phase two) at R6.8-billion. Mining 

is an important sector in this region. The other major 

urban centre is Empangeni, which has several educational 

institutions. The newly completed King Shaka 

International Airport is kick-starting massive new investment 

in the area. The Ilembe District Municipality 

is particularly active in seeking out new 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 demand for the fuel from the country's 

power stations. Game farms, trout fishing and 

hiking are part of an attractive package for tourists, 

and Zululand is a popular destination for cultural 

experiences. The whole region is rich in Anglo-Boer 

War history. 


PROFILE 

Trade & Investment 


Your knowledge partner in business. 

South Africa is rated among the top 10 in the world 

in the category of investor protection and good fiscal 

governance, and the World Bank has rated South 

Africa among the top 30 countries in terms of its ease 

of doing business. South Africa is also regarded as one 

of the least costly areas in which to establish a business. 

In line with this, the province of KwaZulu-Natal has established 

itself as a premier domestic and international 

investment and tourist destination. 

With two of the busiest ports on the Sub-Saharan 

African continent, in addition to its world-class road and 

rail infrastructure, KwaZulu-Natal enjoys the strategic 

and competitive advantage of being a global gateway 

for trade into Southern Africa and to the world. 

Its strategic location and highly developed industrial 

sector ensure a competitive edge for both local and 

foreign investors and offer unique advantages for 

local exporters. 

Investment in KwaZulu-Natal continues to emerge as 

a major contributor to South Africa’s growing economy, 

with the province’s contribution to national GDP 

amounting to 16%, and it is statistically the secondlargest 

GDP per region in South Africa. 

The favourable business environment has made the 

province a sound investment destination for investors 

from around the world. 

Mandate 

Trade & Investment KwaZulu-Natal is a South African 

trade and inward-investment promotion agency that 

was established to promote the province of KwaZulu- 

Natal as an investment destination and to facilitate 

trade by assisting local companies to access international 

markets. The organisation identifies, develops 

and packages investment opportunities in KwaZulu- 

Natal and provides a professional service to all its clientele. 

It also brands and markets KwaZulu-Natal as 

an investment destination, retains and expands trade 

and export activities and links opportunities to the developmental 

needs of the KwaZulu-Natal community. 

Vision 

To be the leader in developing and promoting export 

trade in KwaZulu-Natal and to position the 

Province as a premier destination for investment. 

Mission 

• Identify and package investment opportunities 

in KwaZulu-Natal. 

• Brand and market KwaZulu-Natal as an investment 

destination. 

• Link opportunities to the developmental needs of 

the KwaZulu-Natal community. 

• Ensure easy access to investment and export trade 

opportunities. 


16

PROFILE 

Objectives 

Trade & Investment KwaZulu-Natal’s business 

objectives include: 

• To meet shareholder and stakeholder expectations, 

TIKZN aims to deliver exceptional professional 

service levels and support to clients and 

stakeholders through the following initiatives: 

• Attracting, developing and retaining highperformance 

employees with skills and competencies 

to manage key internal business 

processes, including marketing TIKZN as an 

investment promotion agency. 

• Enhancing TIKZN’s research and knowledge 

capabilities and using technology as an enabler 

for its business. 

• Ensuring corporate governance and finance 

reporting standards compliance. 

• Advocating for a conducive business environment 

in KwaZulu-Natal, in addition to 

marketing the province as a premier business 

destination. 

Key activities 

Trade & Investment KwaZulu-Natal undertakes a diverse 

range of key activities, all designed to ensure 

the successful promotion of business investment and 

trade development. 

Such activities include: 

• The facilitation of joint ventures. 

• The facilitation of business linkages between small 

and big business. 

• The timely provision of relevant and reliable information 

to both potential and existing investors 

and traders. 

• Assistance to existing and new investors regarding 

applications for investment as well as exportmarketing 

incentives. 

• Assistance to foreign investors in terms of applications 

for business permits. 

• Negotiations for local government incentives on 

behalf of investors. 

• The provision of project support and aftercare 

services to investors. 

• The provision of assistance to emerging international 

traders. 

• Assistance with international trade enquiries. 

• Assistance to investors with regard to locating 

suitable premises. 

• Assistance to investors in terms of securing project 

and operational finance. 

The key priority sectors of focus for the organisation 

include: 

• ICT and Business Process Outsourcing 

• Transport, Maritime and Logistics 

• Infrastructure Development 

• Agriculture (Primary and Secondary) 

• Manufacturing 

• Mining 

• Renewable Energy 

• Tourism Development 

Municipal involvement 

Trade & Investment KwaZulu-Natal (TIKZN) continues 

to stamp its authority on the trade and investment 

sector and has been partnering with all 

spheres of government to support local trade and 

businesses to create and sustain employment for 

the people of KwaZulu-Natal. The organisation embarks 

on municipal roadshows aimed at promoting 

districts as an investment and trade destination in 

order to strengthen relationships and the flow of 

communication between TIKZN and all spheres 

of government. 

CONTACT INFO 

Durban Office: 

Physical address: Trade & Investment House, 

1 Arundel Close, Kingsmead Office Park, 

Durban 4001 

Tel: +27 31 368 9600 | Fax: +27 31 368 5888 

Email: info@tikzn.co.za 

Gauteng Office: 

Physical address: 99 George Storrar Avenue, 

Groenkloof, Pretoria 0181 

Tel: +27 12 346 4386 / 6763 | Fax: +27 12 501 1788 

Website: www.tikzn.co.za 

Export Portal: www.exportkzn.co.za 

17 

KWAZULU-NATAL BUSINESS 2016/17

FOCUS 

Introducing the 

province of KwaZulu-Natal 

The second-largest provincial economy has much to offer local 

and international investors. 

South Africa is one of the world’s top business 

destinations and is strongly supported 

by well-developed infrastructure; the 

province is equipped with every convenience 

and delivers high levels of service expected 

by the business world. South Africa is rated number 

one in obtaining credit and is also rated among 

the top 10 in the world in the category of investor 

protection and good fiscal governance. The 

World Bank has rated South Africa among the top 

35 countries for ease of doing business. It is also 

regarded as one of the least costly areas in which 

to establish a business. 

KwaZulu-Natal is a major role-player in the manufacturing 

and transport and logistics sectors in South 

Africa and is a premier domestic and international 

tourist destination. Dube TradePort Aerotropolis, 

which includes King Shaka International Airport, 

the Inkosi Albert Luthuli International Convention 

Centre and two of the largest ports on the Sub- 

Saharan African continent (the ports of Richards Bay 

and Durban), are proof of the province’s world-class 

infrastructure. 

Investment in KwaZulu-Natal continues to 

emerge as a major contributor to South Africa’s 

growing economy and its favourable business environment 

has made the province a sound investment 

destination for investors around the world. 

Economic overview 

The province of KwaZulu-Natal has South Africa’s 

second-largest local economy, contributing 16% to 

the national economy, and is deemed to be one of 


18

FOCUS 

the country’s leading economic and business hubs. 

According to Statistics South Africa’s 2011 population 

census, the province of KwaZulu-Natal is the 

second most populous province following Gauteng 

Province. 

KwaZulu-Natal at a glance 

Capital city: Pietermaritzburg 

Main cities and towns: Durban, Ladysmith, 

Newcastle, Port Shepstone and Richards Bay 

Provincial head: Mr ES Mchunu 

Population: 10.3-million (census – 2011) 

Economically active population: 3.3-million 

(Q4 2015) 

Unemployment rate: 23.2% (Q1 2016) 

Area: 94 361km 2 

Real GDPR: R480.3-billion (US$37.7-billion) 

GDPR growth: 2.1% (2014) 

Per capital GDPR: R44 880 (US$3 520) (2014) 

CPI: 6.7 (March 2016) 

Exports: R116.9-billion (US$9.2-billion) (2015) 

Main ports: Port of Durban, Port of Richards Bay, 

King Shaka International Airport 

Doing business in KwaZulu-Natal 

KwaZulu-Natal is an important hub of industrial 

development in Sub-Saharan Africa thanks to its 

rich natural resources and well-developed infrastructure. 

Economic activities in the province are 

mainly concentrated around the Port of Durban 

and the inland city of Pietermaritzburg, with further 

significant contributions in the Richards Bay/ 

Empangeni area, the Ladysmith/Ezakheni area and 

the Newcastle/Madadeni regions, as well as in the 

Ugu/Port Shepstone region. 

KwaZulu-Natal is a competitive region for foreign 

investment, and more especially export opportunities 

through the Port of Durban. The province 

has identified prime targets for inward investment, 

including textiles, clothing, plastic products, chemicals, 

fabricated-metal products, automotive components, 

wood and wood products, footwear, machinery 

and appliances, business process outsourcing 

and boatbuilding. The ease with which primary and 

processed aluminum can be obtained from local 

suppliers at world-competitive prices, provides a real 

opportunity for investors in these sectors. 

Industry 

Richards Bay is the centre of operations for South 

Africa’s aluminium industry. The Richards Bay Coal 

Terminal is the second-biggest exporter of steam 

coal in the world and the world’s largest single coal 

terminal, while Richards Bay Minerals is the largest 

sand-mining and mineral-processing operation 

in the world. 

The vehicle manufacturing industry has created 

a considerable multiplier effect in terms of 

component manufacturing and aftermarket service. 

The automotive leather industry has grown 

rapidly, with exports significantly boosting foreign 

exchange earnings. 

KwaZulu-Natal has also recently benefited 

from rapid industrialisation, thanks to its abundant 

labour resources and Sub-Saharan Africa’s 

economic expansion. Numerous industries 

are located at Newcastle, Ladysmith, Dundee, 

Richards Bay, Durban, Hammarsdale, Richmond, 

Pietermaritzburg and Mandeni. The King Shaka 

International Airport became operational in May 

2010, and planning is progressing aggressively to 

implement Africa’s first green aerotropolis around 

this airport. 

Tourism 

Tourism is a key driver of the KwaZulu-Natal economy. 

The province’s tourism attractions are structured 

around eight tourism destinations, namely Durban, 

Dolphin Coast (North), South Coast, Zululand, 

Pietermaritzburg and Midlands, Drakensberg, 

Elephant Coast and Battlefields. Better known by 

tourists as the 'Zulu Kingdom', KwaZulu-Natal is 

a tapestry of warm, subtropical coastal areas, Big 

Five game reserves, two World Heritage Sites (the 

uKhahlamba-Drakensberg Park and the Isimangaliso 

Wetlands Park), authentic cultural routes and worldrenowned 

historical battlefields. 

The province enjoys the lion’s share of the domestic 

tourism market and a growing share of South 

Africa’s international tourism market, attracting 


approximately one-million foreign visitors and 

10.9-million domestic tourists annually. 

Tourism growth is underpinned by innovative 

tourism marketing, new and existing tourism-product 

development and a well-established tourism 

service industry. 

Reasons to invest in KwaZulu-Natal 

• Two of the largest and busiest ports in Sub- 

Saharan Africa – Durban and Richards Bay 

• Large labour pool 

• Diverse culture 

• Idyllic climate 

• Access to basic services 

• Excellent infrastructure and logistics 

• Gateway to other African countries. 

KwaZulu-Natal’s Information Communication and 

Technology, machinery and equipment sector absorbs 

roughly half of the total investment flowing 

into the region while manufacturing attracts about 

a third of all investment. 

Tourism is a key driver of economic growth 

and an important catalyst for future economic 

development. 

Investment opportunities 

The province of KwaZulu-Natal offers competitive 

investment advantages and opportunities, enhancing 

this region’s status as a preferred investment 

destination. 

Dube TradePort 

KwaZulu-Natal’s continued success in international 

trade is enhanced through improved transport and 

logistics infrastructure. 

The Dube TradePort, which is home to the King 

Shaka International Airport, incorporates an industrial 

development zone and will be linked with the existing 

sea ports of Durban and Richards Bay. 

This new development will include key components 

such as a cargo terminal, Tradezone, support 

zones and the Agrizone. It will present a new-generation, 

multi-faceted economic hub for the province 

and the country at large. The multi-nodal, integrated 

logistics platform bodes well for sustainable job creation 

and the attraction of further fixed investment. 

The expanded capability of the new international 

airport, a key component of the development, will 

create enhanced levels of service in the movement 

of time-sensitive manufactured goods and perishables 

to the global market. 

Durban harbour 

The Durban harbour is one of the busiest in Sub- 

Saharan Africa and has one of the world’s largest 

and best-equipped container terminals, handling 

3.6-million TEUs (twenty-foot equivalent units) a 


20

Ports Authority with great potential 

to play a key role in the shaping 

of South Africa’s future growth 

and prosperity. 

The combination of specialised 

cargo-handling facilities, fast 

vessel turnaround, deep-water 

infrastructure, excellent rail links 

to the hinterland and the large 

greenfield development potential, 

has made the port one of 

the world’s leading bulk ports, 

handling in excess of 80-million 

tons annually, representing approximately 

60% of South Africa’s 

seaborne cargo. 

year. The harbour’s motor vehicle terminal handles 

two-thirds of all motor vehicles entering or leaving 

South Africa. In February 2013, the terminal set a 

new record in Transnet Por Terminal’s automotive 

history handling 39 749 units in a single month. The 

port also boasts a sugar terminal that is responsible 

for 65% of all the country’s sugar exports. Durban’s 

direct link to worldwide ports and its reputation for 

serving the shipping industry is unmatched by any 

other port in South Africa. 

Richards Bay harbour 

The port is one of South Africa’s eight operational 

commercial ports under the auspices of the National 

Special Economic Zones 

Special Economic Zones (SEZs) 

are loosely defined as designated areas in countries 

that possess special economic regulations that are 

different from other areas in the same city. Moreover, 

these regulations tend to contain measures that are 

conducive to foreign direct investment. Conducting 

business in an SEZ usually means that a company 

will receive tax incentives and the opportunity to 

pay lower taxes. 

In KZN, SEZs are viewed as critical, not only in stimulating 

export growth, but also job creation, foreign 

exchange earnings, industrial decentralisation, access 

to foreign manufacturing technology and know-how. 

The approach to growing the KZN economy 

firmly revolves around infrastructure development, 


FOCUS 

enterprise support, investment and trade linkages, 

and support to key priority sectors (manufacturing, 

agriculture, tourism, ICT and the green economy). 

SEZs provide opportunities to exporters located 

throughout the province – businesses do not necessarily 

have to be next to the sea and airport to benefit. 

Simply put, the theory of comparative advantage 

would position each of the 11 identified districts, so 

that there is at least one area of economic activity 

which, relative to other districts, has an advantage 

by having a lower opportunity cost of production. 

Some examples of SEZs are Industrial Development 

Zones, Free Ports, Industrial Parks/Estates, Science and 

Technology Parks, Sector Development Zones and 

Spatial Development Corridors. 

The Oceans Economy 

The KwaZulu-Natal province is ideally situated to capitalise 

on the blue economy, as it boasts two of the 

Sub-Saharan continent's largest ports as well as vast 

unexploited inland waterways, and incorporating a 

600km coastline. Studies have shown that the country’s 

oceans could generate an estimated GDP contribution 

of between R129- and R177-billion by 2033. 

Freight and logistics are centred primarily around 

two major transport hubs, namely the ports of 

Richards Bay and Durban, which are in turn connected 

to national and regional road and rail networks. 

Present estimates indicate that the local shipbuilding 

sector currently generates in excess of 

R1-billion per annum of which 68% is in foreign 

currency. KZN is the country’s second most prolific 

boat-building province and close to 6 000 vessels 

visit the ports of Durban and Richards Bay each year, 

thereby providing a steady stream of potential vessel 

repair opportunities. 

KZN is growing in the freshwater aquaculture 

sector; most of the trout farms are located within 

the Midlands, while ornamental koi carp, catfish and 

tilapia are also evident throughout the province. 

The province’s large number of inland cold water 

tributaries is another contributing factor towards its 

potential status as a prominent aquaculture centre. 

Manufacturing 

KwaZulu-Natal's manufacturing sector forms part of 

a significant share of the South Africa economy and 

is the second largest in South Africa, and is geared 

for export, with nearly a third of South Africa's manufactured 

exports being produced in KwaZulu-Natal. 

Its diversified nature is significant in the KwaZulu- 

Natal's economic growth rate, and generates 20 % of 

provincial employment. Manufacturing production 

increased by 1.9% in February 2016 compared with 

February 2015. 

The largest manufacturing industries are the automobile 

and component sector, pulp and paper 

products, chemicals and petrochemicals, and food 

and beverages. The mining sector, which includes 

titanium dioxide, zircon along with iron, steel and 

ferroalloys is important. 

The automotive manufacturing industry in 

KwaZulu-Natal is largely concentrated within 

the eThekwini Municipality, but includes firms in 

Pietermaritzburg, Stanger, Ladysmith and Richards 

Bay. The industry employs approximately 20 000 

people and contributes roughly R21-billion to the 

local economy per annum. The key automotive 

player in the province is Toyota South Africa, which 

has been the market leader for 30 years, and is 

the number one-selling vehicle brand in South 

Africa, and is gearing up for a major vehicle export 

programme. The current production capacity of 

Toyota South Africa's plant in Durban is in excess of 

100 000 vehicles annually. The South African operation 

now exports built-up units to both Australia 

and Europe. 


22

Renewable energy 

Globally, the case for the green economy is being 

made abundantly clear. Renewable energy is the only 

electricity-generation technology whose price has 

decreased dramatically, solar PV module prices have 

fallen by 80% over the last five years while wind turbines 

have become 30% less expensive. South Africa’s 

wind resource is regarded as among the top five in 

the world and could sustain 25% of our grid’s capacity. 

The province’s renewable energy sector incorporates 

a whole host of sustainable solutions and 

includes the installation and supply of solar water 

heaters and heat pumps, solar energy, biomass, biogas, 

biofuels, wind, hydro, and energy-efficiency 

measures. This is further stimulated by publicsector 

initiatives and research services that incentivise 

investment in the renewable sector. Major solar, 

biogas and hydropower projects are also paving 

the way for future development and investment 

and currently, the net cumulative value of potential 

renewable energy investments in KZN stands at 

R3.2-billion. 

Possibly the biggest competitive advantage that 

the province possesses is that which emanates from 

the sugar and timber industries, which are among 

the largest in the country. The South African Sugar 

Association (SASA) is ready to engineer an investment 

of R20bn-R30bn that would not only maintain 

sugar production but result in two major new energy 

industries: electricity cogeneration and fuel-ethanol 

production and would lead to the creation of numerous 

jobs in the rural community. 

Water 

Water is now regarded as the highest global risk 

in terms of devastation, ahead of nuclear war or 

a global pandemic. South Africa, the 30th-driest 

country in the world, not only experiences extreme 

climate and rainfall fluctuations but its average annual 

rainfall is half the global average. This rainfall is 

unevenly distributed throughout a country which 

currently has access to surface water (77% of total 

use), groundwater (9% of total use) and recycled 

water (14% of total use). Water is not only a crucial 

component for food production, but is also integral 

to the country’s industrial, mining and powergeneration 

sectors. 

It is predicted that over the next five years there 

will be significant growth in the water infrastructure, 

wastewater treatment and water recycling 

sectors. This will become particularly prevalent as 

the debilitating effects of climate change become 

more pronounced and the global water industry 

changes. Consequently the KZN province is investing 

more in water technologies and infrastructure. 

Similarly, smart water meters will replace existing 

ones and huge investments to be made in water 

infrastructure that includes pumps, pipes, valves, 


FOCUS 

irrigation equipment, filtration and membrane 

technology. While it is envisaged that rain and 

grey water harvesting will be practised countrywide, 

another area of possible investment will be 

in wastewater treatment plants that are located in 

every municipality and which can be retrofitted 

to produce energy. 

Living in KwaZulu-Natal 

KwaZulu-Natal represents a microcosm of the economic 

and social conditions of South Africa as a 

whole. In an idyllic climate that lends itself to an 

enviable, relaxed lifestyle, the business-friendly 

environment includes cutting-edge financial institutions, 

providing specialised and professional 

business services in all fields. Combined with its 

abundant natural resources and diverse cultures, 

KwaZulu-Natal offers a world-class business destination, 

where doing business is a pleasure. 

Housing and accommodation 

Most homes in KwaZulu-Natal are sold or leased 

through a licensed real-estate agent. A list of estate 

agents per geographic area may be found on www. 

propertywebsa.co.za or www.myproperty.co.za. 

Education 

KwaZulu-Natal has two universities, including one 

of the country’s largest universities, the University 

of KwaZulu-Natal, it spans five campuses, one in 

Pietermaritzburg and the remainder in the greater 

Durban area. There are several technical colleges, 

the flagship being the Durban University of 

Technology. 

There are also a large number of training institutions 

offering career training. 

Elementary, primary and secondary schools may 

be found throughout every urban neighbourhood 

in KwaZulu-Natal, some of which are ranked among 

South Africa’s best schools. 

For further information, see www.kzneducation. 

gov.za or www.kzneducation.gov.za. 

Health and welfare 

Throughout South Africa, both public and private 

healthcare is offered. Many corporate employers 


24

FOCUS 

offer a subscription or a partially subsidised subscription 

to a medical insurance fund or medical aid fund. 

Primary healthcare is available free of charge at 

all government hospitals. 

For more information on the KwaZulu-Natal 

Health Department, you can visit www.kznhealth. 

gov.za. 

Leisure 

KwaZulu-Natal’s subtropical coastline is washed by 

the warm waters of the Indian Ocean, the hinterland 

is swept by sweet savannah and the province 

is protected by the towering magnificence of the 

Drakensberg Mountains. 

The province generously caters for almost every 

taste imaginable from historical sites, game reserves 

and country meanders to arts and crafts, the infamous 

bunny chow and fascinating cultural experiences. 

KwaZulu-Natal is also home to award-winning 

golf courses and a host of world-class festivals and 

events. 


FOCUS 

Major events promoting 

KwaZulu-Natal as a trade 

and investment destination 

east3ROUTE 

The east3ROUTE started five years ago and included 

KZN, Mozambique and Swaziland. The initiative facilitates 

cross-border tourism for economic development 

and job creation. 

The member countries are united by regional 

geographic proximity as well as their respective 

developmental agendas. East3ROUTE is not just 

about trade and tourism. It is about creating trade 

corridors and commercial platforms that require 

infrastructure, and it is about these platforms and 

infrastructure requiring the employment of our 

people. Ultimately this manifests in job creation, 

economic development, the reduction of budget 

deficits, improving the quality of spending, reducing 

economic constraints and improved support for 

KZN Export Week 

The KZN Export week is an annual flagship event 

hosted by Trade & Investment KwaZulu-Natal that 

was developed to recognise, promote and assist with 

growing KwaZulu-Natal’s export businesses and industries. 

Through the comprehensive programme of 

activities, it provides professional development and 

information on growth sectors and market opportunities 

to KwaZulu-Natal’s new and existing exporters 

and internationally focused businesses. 

The essence of this week is to establish an understanding 

and awareness of exporting and its importance 

in the economy. The motive behind Export 

Week is to encourage more companies, especially 

small companies, to export more and diminish the 

trade deficit. Exporting creates many opportunities 

for the company and the economy. Other benefits 

include: the advantages of a larger market with greater 

economies of scale it provides an opportunity to grow 

programmes that benefit society. 

For the first time, the 

east3ROUTE investment seminar 

was staged as a standalone event 

in the Mahé Island, Seychelles, on 

the 31 July 2015. The role of the 

east3ROUTE Investment Seminar 

is to provide a platform for engagement 

on tourism and related economic activities 

in this region. Key to this is creating a dialogue 

between economic role-players in the public and 

private sectors, thus enabling debate on the key issues 

facing development in the cross-border regions. 

Tourism and trade have been identified as the central 

aspects of this debate with related sectors such as 

infrastructure development, services, retail and entertainment 

providing important contributions. 

and sustain business operations; it 

enables the Province of KwaZulu- 

Natal to attract investments and 

new business, thereby creating 

employment opportunities. 

Some of the topics covered in 

the 2015 Export Week programme were: 

• Trade agreements and their impact on Africa. 

• Emerging African export markets. 

• Blue economy relevant to a KZN trade perspective. 

• Export climate statistics 

Keynote speakers are invited to the summit to 

impart their expertise; these include representatives 

from Trade and Economic Councils, Consul Generals 

and country representatives, both private and public, 

captains of industry and industry associates. 

Export Week highlights the significance of exporting 

to the KwaZulu-Natal economy and aims at recognising 

the success of KwaZulu-Natal exporters. Export 

Week will be held in October 2016. 


26

NEW ONLINE PORTAL 

MAKES EXPORT SUPPORT 

JUST A CLICK AWAY 

w w w . e x p o r t k z n . c o . z a 

The export sector is one of the critical pillars underpinning 

the economic growth trajectory in KwaZulu-Natal. 

Exports play a fundamental role in making business 

thrive both domestically and on a global scale, and 

are critical not only for foreign exchange earnings but 

also employment creation and poverty alleviation. It is in 

this vein that the KwaZulu-Natal Information Portal has 

been developed, to be a conduit towards the 

improvement of provincial export promotion efforts, 

and to act as a one-stop information shop for 

export role-players in the province. 

The KwaZulu-Natal Export Information Portal is an easyto-use 

online resource that not only showcases products 

and services that are exportable from KwaZulu-Natal but 

also provides a streamlined access point to acquire 

all relevant export-related information. 

The KwaZulu-Natal Export Information Portal is funded 

by the Department of Economic Development, Tourism 

and Environmental Affairs (EDTEA) and implemented 

by Trade & Investment KwaZulu-Natal (TIKZN). The 

key deliverable of the project is the development of the 

web portal that will support the drive to promote export 

activity and thus increase the generation of foreign 

revenue for the province and for South Africa. 

Some of the key features of the portal include: 

• Product and sector fact sheets 

• Information on INCOTERMS 

• Useful export journals 

• Trade tariffs 

• Country profi les and information on trade blocs 

• Information on export councils and industry 

associations 

• The opportunity to upload company profi les 

• Products and services on a self-managed platform 

• Online trade enquires routed directly to the company 

of interest 

• Search capability for exporters, freight forwarders 

and handling agents, etc. 

The portal will also provide access to useful export 

tracking tools and a calendar of export-related events. 

Key features of the portal include multi-level search 

capabilities, effi cient access to resource information 

and an easy-to-use interface. 

To register on the Export Information Portal 

go to www.exportkzn.co.za

INTERVIEW 

Managing the 

Port of Durban 

Moshe Motlohi, Transnet National Ports 

Authority’s Port Manager: Port of Durban, 

provides an overview of the Port’s infrastructure 

and economic potential. 

Moshe Motlohi 

BIOGRAPHY 

Motlohi is a graduate of Wits 

Business School's Advanced 

Management Programme and 

holds an Executive MBA from 

Graduate School of Business at 

the University of Cape Town. He 

has operated in the field of logistics 

for 17 years after beginning 

his career in the corporate world 

as an Ops trainee at South African 

Breweries in 1996, where he 

worked for seven years as Distribution 

Manager, Warehouse 

Manager and Depot Manager. 

He joined Transnet Port Terminals 

as Chief Ops Manager in 

Port Elizabeth before being promoted 

to head a more complex 

operation in the Durban Container 

Terminal, later heading up 

their new People Transformation 

and Development Unit. He was 

later appointed to Head of Strategy 

at Transnet Port Terminals 

and Port Manager of the Port 

of Durban. 

How did you get to the position of Port Manager? 

I am not new to the port environment and logistics space. Over the last 

11 years I have held some key positions in the field of Port Operations. 

I held the following positions at our sister division, Transnet Port 

Terminals: Chief Operations Manager, Terminal Executive Manager, 

Head of People Development and Divisional Head of Strategy. Before 

that I held managerial positions with one of South Africa’s bluechip 

companies, South African Breweries, where I was a Distribution 

Manager, Warehouse Manager and Depot Manager. 

Where do you see potential areas for growth and 

expansion at the Port of Durban? 

At this point the liquid bulk precinct is poised to grow, and this will 

be followed by the auto sector. Containers will continue following the 

shifts and performance of the country's GDP. Our ship-repair business 

is reawakening and is poised to be a game-changer for the Port. Lastly, 

the passenger cruiseliner business is a growing sector and it is one area 

where there will be expansion. 

What are the major investment drives that the Port is 

promoting? 

Transnet is currently in the fourth year of its Market Demand Strategy 

(MDS), which aims to significantly contribute to the growth of the 

South African economy. Transnet has budgeted to spend in excess of 

R300-billion in capital investment over the seven years from 2012 to 

2019, of which TNPA’s investment in the South African port system over 

the next 10 years is estimated at around R56-billion. 

The South African government’s focus on the Oceans Economy 

under its Operation Phakisa initiative will be a major driver to invest 

in the port system. 

In terms of section 56 of the National Ports Act 12 of 2005, TNPA is 

mandated to enter into agreements with companies to design, develop, 

construct, maintain and operate facilities to ensure the provision of port 

services. The proposed new state-of-the-art Durban cruise terminal is 

one of the Section 56 initiatives that Transnet National Ports Authority 


28

INTERVIEW 

has identified to encourage private sector participation 

as a key element of the MDS. This project is open 

to investors to come and bid for this opportunity. 

We also have a few Section 56 opportunities in 

the bulk liquid precinct. 

What are some of the Port’s major 

successes? 

Durban has been making strides towards being 

a smart people's Port. We have launched an electronic 

data interface system called the Integrated 

Port Management System (IPMS). This is a single 

point of interface for all shipping-related Port 

activities. We have recently launched the Port Joint 

Operations Centre. This is designed to house all 

Port users so that vessel planning and monitoring 

can be done optimally. We are monitoring Port 

efficiencies and have implemented performance 

operating standards for all operations at the terminal, 

marine, haulier / road and rail interfaces. 

We are exploring ways to re-integrate our Port 

with the city and communities. Transformation 

of the Port system is another priority and all new 

Port projects, contracts and leases are subject to 

strict transformation criteria. We are developing 

our suppliers and trying to ensure that the Port 

provides opportunities to local suppliers and the 

previously disadvantaged. 

What is the Port of Durban’s competitive 

advantage? 

This Port is in a city that has a well-developed logistics 

services sector. It is one of the most connected 

ports in the world, with the best railway and road 

networks to the country's economic hub, Gauteng. 

Lastly, the Port of Durban has knowledgeable and 

engaged employees. 

What features of the Port do you feel are 

most important to highlight for the overseas 

market? 

The Port has state-of-the-art equipment and is the 

most connected port in the country. It is a one-stop 

port that offers full services to calling ships. Durban 

is the most attractive port (businesswise) because of 

its close proximity to South Africa’s economic hub. 

Even for the cruise sector, Durban is the closest port 

to most potential tourists. 


PROFILE 

The Port of Durban 

Often referred to as Durban Harbour, the Port of Durban is 

the largest (and busiest) shipping terminal in sub-Saharan 

Africa, handling 80-million tons of cargo each year. 

What infrastructural improvements 

have been created in the last few 

years? 

Completed work: 

• Reconstruction of Island View Berths (2, 5 & 6) 

• Pipe racking expansion at Island View and 

Fynnland 

• Repairs to the Outer Caisson at the Prince Edward 

Graving Dry Dock (part of Operation Phakisa) 

• Urgent remedial repairs at the BAT Centre, an arts 

and cultural centre in the Port of Durban 

• Procurement of a 6-Ton Forklift for the Prince 

Edward Graving Dry Dock (Operation Phakisa) 


30

PROFILE 

• Procurement of Welding Equipment Set for Shop 

24 (Operation Phakisa) 

• Bayhead Road Upgrade (From Langeberg Road 

to Pier 1) and Truck Staging Areas 

Ongoing Execution: 

• Reconstruction of Sheet-Pile Quay Walls at 

Maydon Wharf 

• Permanent sand supply system 

• Firefighting infrastructure at Berth 9 Island View 

• Replacement of Potable Water Pipe at Island View 

• Dry dock concrete repair (Operation Phakisa) 

• Electrical Upgrade on Two Overhead Cranes at 

Shop 24 (Operation Phakisa) 

• Upgrade of Remainder of Port HV Electrical 

Infrastructure Phase 2 

What future developments 

are on the cards? 

• DCT berth deepening 203 to 205 

• Pier 1 Phase 2 Infill (Salisbury Island) 

• Roads Upgrade Projects 

• Upgrade of employee facilities 

• Security infrastructure fencing in the Port of 

Durban 

• Tug Jetty Extension 

• M and L Shed Structural Repairs 

• Upgrade Island View sea walls FEL3 

• Island View berth 1 Upgrade 

• Replace Water Pipelines & Billing System 

• Operation Phakisa Projects 

Note: not all projects in the corporate plan have 

been included. 

What are some of the Port’s 

success stories? 

In terms of people, the Port boasts the first Black 

Female Engineer with a Government Certificate of 

Competency (GCC), one of only two engineers in 

the Port of Durban to have this highest academic 

qualification in engineering. 

Our system successes include being the first South 

African Port to go live with the Integrated Port 


PROFILE 

Management System (IPMS) and Joint Operations 

Centre (JOC). Completing the Caisson repair project 

at the Prince Edward Graving Dry Dock was another 

tremendous achievement. 

What are the logistical advantages 

of your Port for the international 

shipping industry? 

Logistics Industry 

• Durban has one of the best developed logistics 

industries 

• Durban has the best rail and road networks 

• Durban has direct shipping connectivity to all of 

SA’s major trading partners 

What have been some of the 

important milestones for the Port? 

Dry Dock 

• First SA Port to go live with the Integrated Port 

Management System (IPMS) & Joint Operations 

Centre (JOC) 

• Outer caisson refurbishment at Prince Edward 

Graving Dry Dock 


32

PROFILE 

STORAGE CAPACITY QUANTITY 

Containers 

Theoretical Berth Capacity 

(Installed Capacity 3 400 000) 

3 500 000 

Dry Bulk 


(Also Installed Capacity) 

12 100 000 

Bulk Liquid (Kilolitres) Theoretical Berth Capacity 19 500 000 

Vehicles 


(Installed Capacity 520 000) 

900 000 

Break Bulk 


(Also Installed Capacity) 

4 000 000 

Present capacity of Port of Durban, measured per commodity. 

SOURCE: NATIONAL DEPARTMENT OF TOURISM 

CONTACT INFO 

Port of Durban 

Transnet National Ports Authority 

Tel: 031 361 8527 

Website: www.transnet.net 


INTERVIEW 

Port of 

Richards Bay 

Preston Khomo, Port Manager of the Port of Richards Bay, 

sees the potential for his deep-sea port to claim a large 

slice of the international logistics market. 

Preston Khomo 

BIOGRAPHY 

A qualified geologist, teacher 

and community leader, (born 

and bred in Port Shepstone, 

KwaZulu-Natal), Preston Khomo 

was previously Chief Executive 

Officer at the Phalaborwa 

Municipality, he holds a B.Sc 

Honours from the University of 

Fort Hare, and a MBA from De 

Montfort University, Leicester 

in United Kingdom, and M.S 

from Alabama, USA. Preston 

has undergone a number of 

marine-related and executive 

leadership courses, including 

the Executive Development 

Programme at the Gordon 

Institute of Business Science 

(GIBS). Served Transnet at different 

OD’s, Terminal Manager 

at (SAPO) TPT, TNPA Head of 

Infrastructure and Port Operations 

Portcon and Senior Manager 

at the Port of Durban. As 

from mid-2012 was appointed 

as Port Manager. 

How did you reach the position of Port Manager? 

I spent some time teaching and working as a management consultant 

in South Africa and around the world as a qualified geologist. In 2002 

I joined the port environment as Terminal Manager, Transnet Port 

Terminals, which was then known as South African Port Operations. In 

July 2004 I was appointed as Head of Infrastructure Development: Port 

Operations and Consulting, TNPA, Richards Bay. Thereafter, I moved 

to the Port of Durban as Real Estate Manager. Prior to taking up the 

position as Port Manager, TNPA, Port of Richards Bay, I was in charge 

of the TNPA Ship Repair Business Unit at the Port of Durban. 

What is the present capacity of your Port? 

The Port of Richards Bay currently imports and exports a capacity of 

over 80-million tons per annum in commodity volumes across our terminals. 

The Port of Richards Bay has set itself up as a Port of continuous 

growth within South Africa. The potential areas for growth and expansion 

lie in the South African ocean economy, focusing on development 

as well as technology, thereby ensuring that the port contributes 

towards the development of the country's economy. Hence, it is poised 

to become one of the largest freight logistics groups and freight hubs. 

What major investment drives is the Port promoting? 

Transnet is investing more than R15-billion on immediate and mediumto 

long-term capacity improvement initiatives in order to expand 

and upgrade the Port of Richards Bay to ensure that the bulk port 

accommodates the growth in export demand. The intention for the 

investment is to expand the country’s main bulk port up until 2020. 

The investment opportunities range from agro-processing, chemicals 

and allied industries, aluminium production, metals, energy, mineral 

processing and forestry to timber-related products. 

What are some of the Port’s major successes? 

I am proud that the Port is enjoying the success of handling more 

than 60% of South Africa's seaborne cargo and is continuing to grow 

from strength to strength, in addition to introducing the National Ports 


34

INTERVIEW 

Authority into separate landlord and operator businesses. 

A multi award-recipient port, I am also proud of 

its successful contribution in the development of the 

country's economy as it has taken two schools under 

its wing. Prompted by the development of the Port, 

it has been able to increase their staff complement at 

these schools by a desirable number, in the process 

creating huge employment opportunities for the local 

and surrounding communities. 

What is the Port of Richards Bay's competitive 

advantage? 

The Port’s advantages are its connectivity in addition 

to top-notch infrastructure such as roads, rail, telecommunications, 

electricity, gas, water and accessibility 

to international air and sea ports, all of which 

reinforces the Port of Richards Bay’s prestige as a 

preferred investment hub in the mind of investors. 

Facing the trading currents of the Indian Ocean, its 

convenient location brings it nearer to some of the 

major international trade routes linking the rapidly 

growing economies of China and India. Investors 

seeking efficiency and wishing to utilise South Africa 

will find that Richards Bay offers an all-in-one official 

gateway to well-off African markets. 

What features of the Port are most important 

for the overseas market? 

Positioned at one of the world’s few deep-sea ports, 

the Port has a comprehensive range of covered and 

open storage facilities. It has set a world record by 

loading 409 809 tons of coal and exporting it within 

a 24-hour period. Over the last decade Transnet has 

entrenched itself as a monolithic company with five 

distinct operating divisions, including port divisions 

Transnet National Ports Authority and Transnet Port 

Terminals. It recommenced an upgrade of the surrounding 

roads and completed its Truck Staging 

area for the convenient buffering of trucks in order 

to improve port efficiency. Other infrastructure 

upgrades include the implementation of energy 

saving initiatives and a 132Kv upgrade to the harbour’s 

west substation. Most recently, the Port of 

Richards Bay is benefitting from TNPA’s continued 

drive towards creating ‘smartpeoplesPORTS’ — aiming 

to foster progressive 

and sustainable ports 

that co-exist and evolve 

with their surrounding 

communities. 


PROFILE 

The Port of Richards Bay 

A catalyst for growth – ‘From Fishing Village to Port City'. 

Forty years ago ‘A Giant Arose’ and 

‘Continues to Soar!’ 

The Port of Richards Bay began its trajectory when 

the first phase of the harbour was officially opened 

on 1 April 1976, primarily for the export of coal. 

Anchor terminal operators were the then South 

African Railways and Harbours and the Richards Bay 

Coal Terminal Company Limited (RBCT), which later 

became the largest single coal terminal exporter in 

the world. 

Three possible sites for a new harbour had been 

considered including: Kosi Bay, Sodwana Bay and 

Richards Bay. Richards Bay was selected due to the 

large lagoon; ease of dredging; its direct link to the 

national rail network; the bay’s proximity to the town 

of Empangeni to stimulate initial development and 

the availability of ample fresh water. 

The Port, which commemorated its 40th Anniversary 

on 1 April 2016, has developed Richards Bay from a 

small fishing village into an internationally recognised 


36

PROFILE 

industrial hub and Port City, thanks to the efforts of 

key role-players over the past four decades. 

Today the Port of Richards Bay is South African’s largest 

Port in terms of volumes, importing and exporting 

more than 60% of South Africa’s seaborne cargo, having 

achieved almost 100-million tons in 2015/16, with 

a turnover in excess of R1-billion. It is also the largest 

Port in South Africa in terms of size, covering an area of 

3 773 hectares – a large portion of which is still undeveloped, 

providing great potential for future growth. 

Initially established to export 26-million tons of coal 

over the first 10 years, the Port has diversified its operations 

to handle other cargoes and provides a worldclass 

service to ensure clients can compete locally, 

nationally and internationally, playing a key role in 

shaping South Africa’s future growth and prosperity. 

Coal, however, remains the single largest commodity 

in terms of volumes and is the second-largest foreign 

exchange earner for the South African economy 

after gold. 

The Port currently hosts six licensed cargohandling 

terminals: 

• Dry Bulk Terminal, operated by Transnet Port 

Terminals – handles a large variety of ores, minerals 

and woodchips 

• Break Bulk Terminal, also operated by Transnet 

Port Terminals – handles a diversity of loose bulk 

and break bulk cargoes, as well as heavy lifts and 

abnormal loads 

• Richards Bay Coal Terminal – with the capacity to 

export 91-million tons per annum 

• Bulk liquid terminal, operated by Bidvest Tank 

Terminals – handles a wide range of bulk liquids 

• Richards Bay Bunker Terminal, operated by Engen – 

imports bunker fuel from Durban and Cape Town. 

Bunkering is also carried out by a bunker barge 

operating in the Port 


PROFILE 

• Liquid Pitch Import Terminal, operated by Hillside 

Aluminium 

The Port also boasts a phosphoric acid export loading 

facility and a liquid pitch import facility. 

The combination of specialised cargo handling 

facilities, fast vessel turnaround, deep-water infrastructure, 

excellent rail links to the hinterland and 

the large greenfield development potential contributes 

positively to the Port’s logistical advantages. In 

addition, the Port has a 300m-wide entrance channel. 

The deep-water Port is also able to handle Cape 

Sized Vessels. 

Milestones: 2006 to 2015 

Milestones achieved over the past decade include: 

• RBCT Phase V expansion project 

• Acquisition of a new helicopter (ZS-RRB) 

• Commissioning of coal berth – Berth 306 

• Commissioning of liquid bulk berth – Berth 208 

• Acquisition of a new tug “Lilani” 

• Opening of a rail line between Swaziland and 

the Port 

• Construction of breakwater floating pontoons 

– erosion control structures to protect the area 

from the full force of incoming waves – a first for 

South Africa 

• ISPS Compliance 

• Upgrade of roads 

• A fully operational Truck Staging Area to improve 

Port efficiency and productivity – a first for South 

African ports 

• A 132Kv upgrade to the harbour’s west substation 

– a first in the port system 

• Initiatives to reduce consumption of water and 

electricity 

• Implemented an Integrated Port Management 

System and Joint Operations Centre – enabling 

port users to track their cargo from port of origin 

to destination, amongst other functions 

• Revival of the Port Festivals 

• Corporate Social Investment projects 

The Port is driven by the Port Development 

Framework which is updated annually. Over time 

the Port will develop into one of the largest global 

ports through expansion alongside the Mhlathuze 

River floodplain, towards the N2 highway, bringing 

with it economic growth and upliftment. 

Numerous capital investment programmes are in 

the pipeline to enhance the capacity of the Port, 

especially in the area of liquid bulk. 

Future plans under consideration include: 

• Development of the South Dunes Precinct 

• Richards Bay Clean Cargo Rail Yard Port Expansion 

• Power Barges 


38

• LNG Facility 

• Tidal Bridge Upgrades 

• Ship Repair Facility 

Transnet National Ports Authority, Port of Richards Bay, 

is committed to protecting both the environment 

and the health and safety of its employees, contractors 

and other stakeholders. Echwebeni (Zulu word 

meaning “at the Port”), a 54ha mangrove swamp site, 

was declared a Site of Conservation Significance by 

Ezemvelo KZN Wildlife in 2005. Initiatives are in place 

to entrench a safe working environment. 

PORT OF 

RICHARDS BAY 

1976 2015/16 

Vessels entered the 

Port 

136 2 000 

Million tons of cargo 

handled 

6.9 99 

Cargo berths 5 23 

Leased sites 2 82 

Water surface area 14 38.5 1 746.6 

Ha of land 2 107 2 026 

Total quay length in 

meters 

1 500 6 389 

Total length of 

conveyor belting for 

bulk cargo 

8.3km 

(RBCT) 

104km 

Transnet’s Market Demand Strategy (MDS) will expand 

and modernise the country’s ports, pipelines and rail 

infrastructure to promote economic growth in South 

Africa. The MDS will enable the ports to transport 

goods in a reliable, efficient and cost effective manner. 

To the next 40 years! 

CONTACT INFO 

Port Manager: Preston Khomo 

Harbour Master: Captain Sabelo Mdlalose 

Customer Relations Manager: Sinamile Zuma 

Physical address: Bayvue Centre, Ventura 

Road, Port of Richards Bay 

Postal address: PO Box 181, Richards Bay, 3900 

Tel: +27 35 905 3440 | Fax: +27 35 905 3199 

Email: Preston.Khomo@transnet.net 

Sabelo.Mdlalose@transnet.net 

Sinamile.Zuma@transnet.net 

Website: www.transnet.net 


PROFILE 

Financing KZN businesses 

to grow the economy 

Pat Moodley, Regional Manager of the Industrial Development Corporation's (IDC) 

KwaZulu-Natal region, shares his insight on the potential for small and large 

businesses in the province. 

The IDC is South Africa’s largest development finance 

institution. Since its inception in 1940, it has 

helped to build the industrial capacity that fuels 

the country’s economic growth by funding viable 

businesses. For more than 75 years, the IDC has 

been instrumental in implementing South Africa’s 

industrial policy, establishing some of the industries 

that have since become the cornerstone of 

the country’s manufacturing sector. Apart from 

large industrial projects, the IDC has also been 

instrumental in the establishment of other industries, 

such as fabricated metals, agro-industries, 

clothing and textiles, to name but a few. 

BIOGRAPHY 

Pat Moodley, Regional Manager of the IDC for the 

KwaZulu-Natal region, states that the corporation's 

mission has always been to be the primary 

driving force of commercially sustainable industrial 

development and innovation for the benefit 

of South Africa, in addition to the rest of the 

African continent. The IDC strives to contribute 

to the generation of balanced, sustainable economic 

growth and the economic empowerment 

of South Africans. 

The IDC has undergone numerous changes 

since its inception and Moodley affirms that, 

“although our priorities have evolved in line with 

policy direction over the years, we remain committed 

to developing the country’s industrial 

capacity and, in doing so, playing a major role 

in job creation.” 

Rapid growth 

In recent years, KwaZulu-Natal (KZN) has experienced 

rapid economic growth and the province's 

Pat Moodley is the Regional Manager of the 

Industrial Development Corporation (IDC) for 

the KwaZulu-Natal Region. He has been with 

the IDC for 10 years and is passionate about 

economic development in the KZN province. 

He previously worked for a commercial bank, 

specialising in the SME market prior to joining 

the IDC. Moodley holds a B Com degree in accounting 

and a National Diploma in Commerce. 

He is presently completing his MBA. 


40

PROFILE 

Opus1 & Mooi River Textiles, a home textiles company in Tongaat, KwaZulu-Natal. 

economy is now the second-largest provincial 

economy, with growing tourism, manufacturing 

and agro-processing sectors. 

“The provincial government of KZN has recognised 

that investment is critical for the growth of the province's 

economy. It therefore aims to create an 

environment that is conducive for investment. 

Both the provincial and local government have 

invested in infrastructure to promote a supportive 

environment for businesses and entrepreneurship 

to flourish. 

"The KZN economy is driven largely by manufacturing, 

which includes key economic sectors 

such as metals, chemicals, textiles, tourism and 

agro-processing,” says Moodley. 

Despite the numerous activities taking place in 

KZN, like the rest of the South African economy, 

the province is experiencing a sluggish economic 

performance. The KwaZulu-Natal Treasury reported 

during the March 2016 Budget Vote, that the province’s 

economy is expected to grow by 0.6% in 

2016, gradually improving to 1.3% in 2017. 

The IDC aims to provide further funding in support 

of industrial capacity development as this is 

a key component for future growth of our economy. 

According to Moodley, the IDC’s mission 

in KwaZulu-Natal is to promote entrepreneurship 

through building competitive industries and 

enterprises based on sound business principles. 

“The IDC has been stimulating KZN's economy 

by extending its reach and focusing on smaller 

municipalities in rural and outlying areas within the 

province. We work closely with key stakeholders 

to be at the centre of industrial development and 

job creation across the province,” says Moodley. 


PROFILE 

Somta Tools, a cutting tool manufacturer in Pietermaritzburg. 

Forward planning 

The IDC has identified numerous projects across the 

entire province as possible funding opportunities to 

be pursued within the coming months. 

“We will continue to partner with local and provincial 

government, organised business, chambers of commerce 

and other provincial development finance 

institutions to provide funding for businesses,” says 

Moodley. Consequently, he is confident that the 

IDC’s strategy of proactively identifying and funding 

high-impact projects in KZN, using the organisation’s 

diverse industry expertise, will bear fruit in 

creating viable industries. 

Sector-specific workshops, presentations, training 

and coaching consultants who work closely with 

the IDC’s KZN office, further strengthens the corporation's 

partnerships. 

Another key focus for the IDC in KZN is to support 

women and the youth entrepreneurs in the 

province. 

“Our focus is definitely geared to getting more 

women and young people into the mainstream 

economic activities of the economy. We have 

various initiatives within the IDC to assist women- 

and youth-owned businesses to 

enable them to access funding 

from the IDC. In addition, the 

IDC provides business support 

to offer guidance on essential 

business skills to its clients. This 

support is available during the 

pre- and post-approval stages 

and includes assistance to distressed 

clients,” says Moodley. 

Working with the National Youth 

Development Agency (NYDA) 

and other stakeholders enables 

us to identify business opportunities 

to assist emerging young 

entrepreneurs to access funding 

from the IDC,” he adds. 

“We welcome all stakeholders to engage with 

the IDC in KwaZulu-Natal, at any of our offices in 

Durban, Pietermaritzburg or Richards Bay. We have a 

team of highly skilled and dedicated staff with vast 

experience, who are committed to fulfilling the 

IDC's mandate of driving industrial development 

and job creation and growing the local economy.” 

CONTACT INFO 

KwaZulu-Natal: Durban 

Physical address: Suite 2101, 

21st Floor, The Embassy Building, 

199 Anton Lembede Street, Durban 

Postal address: PO Box 2411, Durban 4000 

Tel: 031 337 4455 | Fax: 031 337 4790 

KwaZulu-Natal: Pietermaritzburg 

Physical address: 1st Floor, ABSA Building, 

15 Chatterton Road, Pietermaritzburg 


Tel: 033 328 2560 | Fax: 033 342 5341 

Email: callcentre@idc.co.za 

Website: www.idc.co.za 


42

Making the right 

things happen 

FOCUS 

Innovation, technological advancement and well-trained 

staff are keys to Nedbank’s success. 

Nedbank continues to build on its client-centred strategy, 

which is aimed at delivering distinctive experiences and 

channels of choice. This has seen the bank simplify and 

enhance its product offering in line with its great-value 

banking philosophy, based on simplicity, transparency and affordability. 

Innovation and technological advancements as well as training 

and development of staff have been key pillars in achieving the bank’s 

objectives. Nedbank has also placed emphasis on client engagement 

to better understand the diverse and individual client needs across its 

personal and business banking base. 

"Innovation is an integral component of a holistic approach that 

encompasses our systems and processes and these enable us to 

deliver distinctive client experiences. Despite the tough economic 

environment, Retail and Business Banking have delivered value to 

our shareholders while significantly improving our client experience. 

Through these milestones, we are well geared to weather the persisting 

macroeconomic environment, and highly competitive business conditions," 

says Fayzel Omar: Regional General Manager of KZN at Nedbank. 

Dedicated Business Managers and Product Specialists working 

through an empowered "Client Service Team" ensure service delivery 

with significant benefits. 

In KwaZulu-Natal we have two regional head offices based in 

Durban (headed up by Regional Business Head Siphamandla Ndlovu) 

and Pietermaritzburg (headed up by Regional Business Head John 

Bush) with further offices situated in Richards Bay, Port Shepstone, 

Newcastle and Pongola. We service small and medium privately owned 

businesses and agricultural farming entities throughout the province. 

To this end, Nedbank has launched several first-in-the-marketplace 

innovations such as the award-winning Nedbank App Suite, Home 

Loans Online Digital Channel and Market Edge, as well as the "Branch 

of the Future" concept in communities and nationally. 

"Working with communities is entrenched in our values through 

community development, skills development, education and job creation 

as well as environmental conservation. We believe our fast-growing 

presence in the province goes a long way in enabling greater financial 

inclusion while contributing towards economic growth," says Omar. 

Siphamandla Ndlovu, 

Regional Business Head 

Durban 

John Bush, Regional 

Business Head 

Pietermaritzburg 

These are just a few of the 

ways that Nedbank continues to 

make the things that really matter 

with businesses and communities 

happen. 

www.nedbank.co.za 

43 


FOCUS 

Accessible 

onsite banking 

Nedbank is happy to help its clients learn 

to better manage their money. 

Nedbank@Work aims to make a difference in the communities 

in which we operate through financial wellness education 

for all employees in both the private sector and government. 

This is done through tailored financial fitness and consumer 

education training. Our continuous involvement in corporate social 

programmes in communities throughout KZN also supports growth 

and development. 

How Nedbank@Work works for you, the employee 

It’s hard to focus on anything if you are having personal financial challenges 

like needing a personal loan, providing for school or university 

fees, or for unexpected costs like funerals. 

Unfortunately, dealing with a lot of these worrying financial issues 

takes time and energy, and more often than not they can only be sorted 

out during office hours, when you don’t have time. 

That’s where Nedbank@Work comes in: 

Nedbank@Work makes convenient banking at your workplace possible. 

But, we offer more than just the convenience of having a relationship 

banker on site to open accounts and address queries; we also help 

you understand your financial position and work with you on a plan 

to reach financial fitness. 

What are the benefits of Nedbank@Work? 

• You have access to a dedicated sales consultant, whose role is to 

establish convenience and ensure the best service delivery for all 

employees. 

• Our financial fitness and consumer education training provides you 

with the services and expert advice you need to help you better 

manage your personal finances, make provision for unexpected 

circumstances, provide for your children’s education, etc. 

• The Financial Fitness Trainer will also be able to assist you when it 

comes to improving your credit ratings and managing your budget. 

• You also get great-value banking products as well as immediate 

Amrith Bishoon, Regional 

Relationship Manager 

access to your salary if your 

company banks with Nedbank. 

• Peace of mind as a result of 

financial well-being. 

• We’re continuously there on 

site, making it that much easier 

to access and expand on and/ 

or enhance your existing suite 

of banking products. 

• And because we bring the 

bank to your workplace, you 

don’t have to waste your 

lunchtime by going to the 

bank to wait in long queues. 

Any company or government 

department interested in offering 

the Nedbank@Work value 

to their employees can contact 

the Regional Relationship 

Manager, Amrith Bishoon, 

on +27 31 364 1082 or email 

Amrithb@nedbank.co.za. 


44

Banking on relationships 

with corporate clients 

FOCUS 

End-to-end banking services are provided for Nedbank’s corporate 

and public sector clients. 

Nedbank Corporate and Investment Banking’s KZN operation 

is based at Kingsmead and provides end-to-end banking 

services, funding and transactional banking capabilities to 

all corporate clients and industries across the province. The 

team is committed to providing excellent client service – a commitment 

that is confirmed by the high ratings consistently provided in 

client surveys. The business is focused on JSE-listed companies, large 

unlisted companies, branches or subsidiaries of inbound multinational 

entities and public sector entities. 

What we do differently 

The business provides a differentiated client value proposition, based 

on established relationships and an in-depth understanding of clients’ 

businesses and the industries in which they operate. It provides a fullservice 

wholesale banking offering – including lending, deposit-taking, 

transactional banking, global trade services and asset finance – by 

way of dedicated corporate bankers who are the clients’ window into 

Nedbank. We also have a dedicated team of specialists focusing on 

public sector needs. 

Specific solutions 

The business provides a variety of funding solutions amounting to 

between R50-million and several billion rand from short-term and 

working capital facilities, trade finance and letters of credit and guarantees, 

to vanilla and complex term debt structures by way of bilateral, 

club and syndicated transactions. The business assists with the issuance 

of corporate paper and other debt instruments. Leveraged buyouts 

(LBOs) and management buyouts (MBOs) are also funded, with NCIB 

acting as lead arranger, co-arranger or facility agent. 

Our transactional banking offering consists of the full-spectrum 

domestic clearing bank services, including current accounts, cash management 

and electronic banking, through our scalable internet-based 

NetBank Business system. The high-volume host-to-host platform, 

Ebrahim Shaik, Divisional 

Executive: Client Coverage 

Corporate Payments System, and 

a full range of cross-border and 

international transactions are 

part of the offering. The deposittaking 

and treasury franchise is 

strong, with a range of investment 

offerings. We pride ourselves in 

providing tailor-made solution 

across private equity, investment 

banking and capital markets. 

Commitment to the 

community 

We try to make a difference in the 

larger KZN community through 

the Nedbank Foundation. 

Contact Ebrahim Shaik, Divisional 

Executive: Client Coverage 

Tel: +27 31 364 3348 or email: 

ebrahimsh@nedbank.co.za. 


FOCUS 

Making banking 

accessible to all 

At Nedbank we believe in delivering a choice of distinctive client-centred 

banking experiences that create deep enduring relationships with our clients. 

Our clients are engaged by skilled, enabled and productive 

staff who, through meaningful conversations, ensure we 

deliver to our clients’ needs and aspirations. As a bank 

for all, Nedbank realises that, if it wants to make banking 

more accessible to all in South Africa, it has to start working with 

the communities in which it operates. As such the bank's strong 

relations with government, organised business and communities 

remain a key focus in growing its client base of over seven million. 

Our presence in the KZN community goes a long way in allowing 

for greater financial inclusion while contributing to social upliftment 

and economic development. 

Our growth in distribution will provide accessible banking to all 

South Africans. Our distribution presence in KZN sees us with 88 

traditional branches, 30 kiosks in Boxer stores and six personal loan 

branches. Nedbank has embarked on a distribution strategy to convert 

all our branches to "Branch(es) of the Future". We currently have 

23 "Branch of the Future" stores in KZN. To make banking convenient 

we have eight Sunday-trading branches in key centres in the province. 

We have also increased our ATM distribution to 630 and Intelligent 

Depositors to 90 in the province for your convenience. 

Nedbank’s client-centred approach has seen the bank intensify 

its efforts in delivering a distinctive client experience through innovation. 

The introduction of the award-winning Nedbank App Suite 

is evidence of the bank’s progress and its understanding of client 

needs. The App Suite serves as a virtual extension of our distribution 

network operating from the palm of your hands. “It makes it easy for 

clients to do their banking securely – from anywhere, anytime,” says 

Fayzel Omar: Regional General Manager of KZN Branch Networks 

at Nedbank. 

Our offering in Retail expands to Small Business and Professional 

Banking. We believe that small business is a critical segment of our 

economy and plays a key role in job creation. To support small business 

we have initiatives like "Small Business Friday", free small business 

seminars and simplybiz.co.za 

Fayzel Omar, Regional 

General Manager of KZN 

Branch Networks at Nedbank 

In Professional Banking we realise 

that time is of the essence 

in your professions and hence 

we offer you a dedicated banker 

with a strong support team to 

take care of the needs of you, 

your business and your household. 

For more information on our 

offerings in: 

Retail, please contact Jason 

Barron at Jasonba@nedbank. 

co.za +27 31 364 1000 

Small Business and Professional 

Banking, please contact Melanie 

Reddy at Melanier@nedbank. 

co.za +27 31 364 1000. 


46

Make the most of your 

money with our local and 

international expertise 

At Nedbank Financial Planning and Nedbank Private Wealth 

we care about your financial security and goals. 

FOCUS 

This means ensuring that you have a plan to cater for your 

circumstances as your needs evolve and change. We provide 

clients with holistic financial planning and a range of 

services to support this. As our client, you can build wealth 

by aligning your decisions with your deepest values and highest 

aspirations. We offer financial advice that is customised to each client’s 

needs. For some clients, this is about establishing a financial 

plan, and for others it may be about customised international estate 

planning structures and intergenerational wealth transfers. 

Based on your needs and circumstances, a Nedbank Financial 

Planner or a dedicated Wealth Manager can help you make the 

most of your money. To become a Nedbank Private Wealth client, 

you need to earn at least R1.5-million per year and/or have R5-million 

of investable assets. But if you don’t yet qualify, you can still benefit 

from our specialist expertise through Nedbank Financial Planning. 

We are here to help put a plan in place to grow your money to 

achieve your financial aspirations. 

Your Nedbank Financial Planner and Nedbank Private Wealth 

Manager have access to specialist teams who can help you: 

• Structure sound estate and succession plans to protect your own 

interests and the interest of your family 

• Grow your money by investing in a range of top local and offshore 

investments, including using our specialist stockbroking service 

• Protect your personal and business assets against life’s uncertainties 

through short- and long-term insurance solutions 

• Access your money whenever and wherever it suits you through 

a full range of local and international banking services available 

through a single point of contact; 

• Give your wealth a life beyond yours by leaving a legacy with our 

philanthropy services 

Surita Vithal, Head Nedbank 

Private Wealth KZN 

Janet Esterhuizen, Regional 

Head of Financial Planning 

Nedbank KZN 

Contact Nedbank Financial 

Planning on 0861 238 887 or 

contact Nedbank Private Wealth 

on 0860 111 263. 

Visit www.nedbank.co.za. 

47 


INTERVIEW 

MASISIZANE FUND 

Masisizane Fund: 

empowering small 

enterprise 

BUILDING SUSTAINABLE 

BUSINESSES THROUGH 

SUCCESSFUL PARTNERSHIPS 

Sifiso Myeni, the KwaZulu-Natal Provincial Manager of the 

Masisizane Fund, sees huge potential for the growth of 

SMMEs, with collaboration of private and public sectors. 

Please could you give us an overview of the Masisizane 

partnerships with Omnia, Gra 

Sifiso Myeni 

Fund’s work in KwaZulu-Natal? 

Association and municipalities, th 

their planting significantly in 2014 

Masisizane has invested over R60-million and funded more 

channeled 

than 

towards Grain Co as 

50 clients in the province. The Fund’s role is so much more than 

The Masisizane Fund (NPC), is an initiative just giving of Old loans Mutual – South a key Africa, component established of our work is helping Masisizane small opera 

in 2007 following the closure of the Unclaimed business Shares owners Trust. This to find was done solutions in consultation for ways in which they nationally can grow with it 

with the National Treasury of South Africa. The mandate of the Fund at inception was 

their businesses. We also work with partners such as the provincial Gauteng and r 

and remains to contribute meaningfully to employment creation, poverty eradication 

and national government, in addition to their own development offices in KwaZu 

and reduction of inequality, economic growth and the attraction of investment. This is 

BIOGRAPHY 

agencies. Through these relationships we have been able Limpopo, to ensure Eastern 

done mainly through promotion of entrepreneurship, enterprise finance and support to 

that more resources are being made available to SMMEs. Although 

small, micro and medium enterprises (SMME’s). 

Western Cape. 

Sifi so Myeni is the Masisizane we only have one office in the province, which is located in Durban, 

The process to follow when apply 

Fund’s KwaZulu-Natal Provincial 

Manager. Previously he Some interesting case studies that we are particularly Submit proud the following of documents fo 

we cover the entire KZN province and will assist wherever from we the can. Masisizane Fund is: 

The Fund provides loan finance in the following sectors: 

• Agriculture 

relevant provincial office: 

was the Head of Agribusiness relate • Manufacturing to businesses such as City of Choice Travel and Tours, which is 

• Comprehensive business plan 

• Supply Chain 

Development and a member of a business that, like many others, started from humble beginnings. projections; 

• Franchising 

the Old Mutual Masisizane Fund In its early stages this business was operating from a garage • For established yet businesses – 

• Commercial Enterprise 

three years) and the latest man 

Executive Management Team. managing to create a turnover of close to R1-million per annum. 

Non-financial value adding services include capacity 

• For start-up businesses – financ 

His career started in 2000 with Through the dedication of its entrepreneur – as well as the financial 

development, business management and technical support, 

• Tax clearance certificate; 

the SA Sugarcane Research and non-financial education, assistance market development from and the product/ Masisizane Fund –• the Off take business 

agreements and/or l 

Institute, and in 2005 he joined 

the Organic Farms Group 

and in 2009 he joined the Old 

Mutual Masisizane Fund. 

He obtained his B.Sc Agriculture 

Degree from the University 

of Zululand and his Master’s 

Degree in Sustainable Agriculture 

from the University of the 

Free State. He is a 2nd-year 

PhD student with UKZN. 

service has quality grown standards to the and point compliance. where A it Business now has turnover • figures Signed consent in for a credit ch 

excess of R30-million. 

Another interesting case relates to the agri-cluster model that 

Masisizane is implementing within the agriculture space. This approach 

has necessitated the collaboration of other stakeholders. It is through 

the meaningful collaboration of the private and public sector that we 

were able to finance five co-operatives within the Mzimkhulu area. These 

farmers were financed with inputs, tractors and working capital to enable 

them to plant, cultivate and sell soya beans. To date the project has 

been working well, albeit the harsh climate conditions have stunted the 

anticipated results. Over R34-million has been invested in this project 

The target market is enterprises that are 51% or more owned 

by the previously disadvantaged individual(s) giving priority 

to rural and peri-urban/township areas. Masisizane funding 

is biased towards 51% plus owned women, youth and 

people with disabilities. Masisizane will target productive 

and labour absorbing sectors as approved by the Board of 

Directors from time to time. 

The Fund’s success is driven through a focused approach on 

high impact industry sectors, coupled with a comprehensive 

SMME finance solution that includes business support. 

Acceleration Program has been e 

clients receive training and suppo 

eligible to receive financial suppo 

The growth of the Masisizane Fu 

inception. Although the initial foc 

the fund has gradually grown to b 

fund with the vision of being able 

as a sustainable entity and thereb 

for many years to come. The fu 

R1b and it plans to invest R420 

SMME’s by the end of 2017. 

The development of agri-clusters 

Masisizane Fund’s approach in 

entail the clustering of small sca 

the farmers benefit from economi 

on value chain financing, agro-p 

partnerships. 

In 2013 the Fund initiated a p 

Harry Gwala municipalities co 

trading in grain and dairy prod 

focused on development of value 

mechanization, storage and micro 


48

INTERVIEW 

alone on a 50:50 basis (half comprised of a loan from 

the Masisizane Fund and the other half as a grant 

from the KZN Department of Agriculture and Rural 

Development). The project has created more than 

150 job opportunities, including seasonal workers, 

and more jobs will be created as we expand from 

1 500 hectares to 3 000 hectares in the next two years. 

Could you offer some insight into the focus 

of your agribusiness development unit? 

The Masisizane agribusiness development unit 

consists of dedicated, experienced hands-on individuals 

who are tasked to ensure the successful 

running of the Masisizane Fund’s investment into 

the agri-clusters and turnkey solutions. The agriunit 

is responsible for six specific functions: 

• Establishment of Agri-Clusters. 

• Value chain-orientated development in agriclusters. 

• Partnerships and leveraging on partner programmes 

– grants, loans and technical expertise. 

• Sector intelligence, which includes providing 

technical expertise to pre- and post-investment 

units, markets trends and so on. 

• Turnkey solutions. 

• Managing the agri-loan book. 

The implementation of the flagship initiative started in 

earnest in 2015, when an amount of R100-million was 

approved to be disbursed over a three-year period. 

To date a total of R24.8-million has been disbursed. 

What are the specific ways in which you 

assist your clients? 

The Masisizane Fund measures its impact in three 

ways – development impact, financial growth and 

the sustainability of businesses assisted. As such, 

the assistance we provide is through financial as 

well as non-financial support. The non-financial, 

value-adding services include: 

• Capacity development (business management 

and technical support). 

• Financial education. 

• Market development. 

• Product and service quality standards and 

compliance. 

Financial support comprises loan financing 

(provided by the Masisizane Fund) and grants 

provided through strategic partners such as the Old 

Mutual Foundation and others. 

What sort of trends are you seeing in 

terms of SMME businesses? 

In general there has been a rise in the number 

of small businesses, but what is important is for 

those SMMEs to remain in business. We are seeing 

a far greater focus being given to small businesses 

in particular by government; one example is the 

establishment of the Department of Small Business 

Development. When SMMEs are supported in 

terms of resources, skills and markets it creates 

a real opportunity for them to assist in creating 

much-needed jobs in South Africa. The private 

sector and government naturally have a significant 

role to play in advancing SMME development. Be 

that as it may, it has been a tough economic climate 

for most SMMEs and emerging businesses. This is 

more so the case in the agriculture sector due to 

drought, rising inputs, etc. 

What makes a successful SMME? 

Although there is no one-size-fits-all when it comes 

to success, there is a general success trait that most 

entrepreneurs show. These usually are people who 

are hands-on in their business and know how their 

business operates (or should operate), who have 

a thorough understanding of the strengths and 

weaknesses within their business. This is very important 

as it should feed into the approach an 

entrepreneur will take in trying to grow their business 

while still ensuring that it is sustainable. When 

entrepreneurs are financially disciplined they are 

more likely to succeed. 

CONTACT INFO 

Physical address: 21st Floor, Old Mutual 

Centre, 303 West Street, Durban 

Tel: +27 31 302 5415 

Web: www.masisizane.co.za 



Commonwealth 

Games Durban 2022 

For the first time in its 85-year history, the Commonwealth Games will be held in Africa, 

and Durban's successful bid is set to further boost jobs and tourism. 

Do visitors look forward to visiting London 

or Middlesex? Sydney or New South 

Wales? Cities are among the most important 

marketing tools that regions and 

countries have. Good branding has become a huge 

issue for the world's great cities, and many of these 

urban giants are vital to the economic future of 

regions, and countries. Hosting events is one of the 

best ways of getting a city's brand into the consciousness 

of future tourists and potential investors. 

The City of Durban will have that opportunity in 

July 2022 – it will host the Commonwealth Games. 

In hosting upwards of 4 500 athletes from 71 

countries and territories from throughout the 

Commonwealth, Durban will be hoping to imprint 

a positive message about the city in the hearts of 

tens of thousands of visitors, in addition to millions 

of television viewers. 

The secretary-general of the United Nations 

has appointed former New York mayor Michael 

Bloomberg as a special envoy to look at the future 

of cities. His Future Cities forums look into a range 

of issues, including climate change. The planners 

behind the successful bid for Durban to host the 

Commonwealth Games clearly see in the future 

of this east coast city a role in transforming the 

economy of KwaZulu-Natal. 

They are also following international best practice. 

According to the Institute of International Trade, 

the areas that are most affected in a city that hosts 

big events are transport systems, telecommunications, 

sports facilities, housing provision and urban 

culture. An improvement in each of these sectors 

will materially improve the lives of Durban's citizens. 

The bid put forward by eThekwini (the municipality 

which runs Durban) has five big goals, all of which 

are aligned with the National Development Plan: 

• Improving infrastructure and accelerating the 

rate of development. 

• Re-engineering spatial patterns (changing where 

people live). 

• Uniting all South Africans around a common 


50


programme to achieve prosperity and equity. 

• Bringing about faster economic growth, and 

higher investment. 

• Focusing on key capabilities of people and the 

state. 

Two of the measurements that will be used to 

judge a successful games are tourist numbers and 

new inward investment. Interestingly, on the website 

of the Glasgow 2014 Commonwealth Games, the 

first item under 'Legacy' is 'International business 

profile.' Glasgow set out to use the international 

sporting event to 'showcase Scotland's good and 

services and to build strong relationships with international 

markets.' Like Scotland, Durban will be 

looking to improve its 'reputation as an excellent 

place to do business.' 

Benefits 

Writing for GlobalBrief.org, Sarah Juggins says it is 

'nigh on impossible to quantify the impact of major 

sporting events on a country's economy, and 

the economic rationale is often questionable.' She 

goes on, however, to give details of a very successful 

project carried out by the city of Manchester, host 

of the Games in 2002. The aim was that disadvantaged 

communities would benefit from the hosting, 

and they did, as 6 300 jobs were created; local construction 

and tourism companies had big increases 

in turnover; visitor numbers to the area grew by 

300 000 annually in the years after the Games, and 

these visitors spent about £18-million. 

This is certainly the kind of broad base of new 

opportunity which the South African bid team will 

want to emulate. Juggins points to other successful 

legacies in former host cities: thousands of metres of 

fibre optic cable laid by Manchester; huge improvements 

to Melbourne's sports facilities; Delhi's better 

roads and airport, as well as its newly established 

business hubs. 

Tourism in South Africa was greatly boosted by 

the 2010 Soccer World Cup. The BBC reported after 

the Glasgow Games of 2014 that 690 000 people 

travelled to the city and hotels had an occupancy 

level of 95% for the duration of the Games. One 

research team calculated the tourism impact at 

£282-million. 

Durban's bid team are hoping that visitor spend 

(as it affects GDP) will amount to R6.1-billion when 

the Games come to South Africa. An estimated extra 

R20-billion would be delivered to the national 

economic output, translating into an additional 

R11-billion in GDP growth. 

There will be 1 000 full-time staff and about 

10 000 volunteers, all of whom would gain valuable 

work experience and exposure. Reduced crime resulting 

from heightened security during the Games 

will have positive spin-offs for the local population 

and help to improve the region's 'investability.' 

One of the unique features of Durban's plan 

is the concept of a 'Compact Games.' Durban is 

already blessed with a sporting precinct on the 

coastal plain between the sea and the Berea which 

contains important sporting venues: Greyville 

horse-racing track; Moses Mabhida Stadium; Sahara 

Stadium Kingsmead (cricket); Royal Durban Golf 

Club; Growthpoint Kings Park rugby stadium and 

Durban Country Club. The Umgeni River marks the 

northern edge of this sporting zone, and it is also 

where the climax is reached of the famous FNB 

Dusi Canoe Marathon. 

The Durban Commonwealth Games will have 

80% of its activities in a 2.5km radius and this will 

help to position the former World Cup soccer stadium 

venue, Moses Mabhida, as a mega multi-sport 

events precinct and Durban as a highly desirable 

venue for future global events. 

Some sports must be offered at every Games 

(the so-called 'core' sports), but hosts have a certain 

amount of leeway to offer other sports. Rugby 

Sevens is a 'core' sport and South Africa are often 

in the medals in that discipline; hockey is too, but 

Australia looms large in that sport, as they do in so 

many others. Cricket has only been offered once 

before, at the Kuala Lumpur Games in Malaysia 

in 1998. That was the first time ever that South 

Africa's cricketers got to wear gold medals – and the 

team they beat in the final was Australia! Perhaps 

the Durban committee can be persuaded to offer 

cricket again. 


PROFILE 

Durban Chamber of 

Commerce and Industry 

The Durban Chamber of Commerce and Industry aims to create a business environment 

conducive to investment and growth. 

The Durban Chamber of Commerce and Industry 

contributes towards creating an investment-friendly 

economic and business environment in eThekwini 

and provides services relevant to the needs of the 

business community. 

Main objectives 

The Durban Chamber aims to achieve the following: 

• Provide an investor- and business-friendly 

environment 

• Facilitate economic and business growth 

• Provide relevant services to maintain and attract 

membership 

• Maintain and sustain its membership 

• Promote the development of small businesses 

• Engage in influential advocacy on behalf of business 

Services 

The Durban Chamber provides a broad range of 

services and opportunities for businesses, especially 

members of the chamber. These include: 

• Networking platforms/events such as breakfast 

and lunch networking functions 

• Business support, including mentoring, basic 

human resources advice, HIV and Aids advice and 

support, and assistance with access to finance and 

procurement opportunities 

• Lobbying and representation on behalf of 

Chamber members 

• Sourcing of trade leads and local or foreign suppliers 

or service providers 

• Local and international credit reference checks 

• CIPC 

• Procurement portal 

• ATA Carnet 

• Carnet de Commerce 

• Certificates of origin 

• Conference centre 

• Direct promotion via adverts in the Chamber Digest, 

an electronic daily newsletter, free website classifieds, 

member-to-member discounts, print membership 

directory and online member directory 

In December 2014 the Durban Chamber gained status 

of being an Enterprise Development Beneficiary. 

Through this status the Chamber is able to raise and 

administer funds to advance enterprise development 

programmes, while at the same time contributions 

made to the Chamber qualify for BEE credits on the 

Transformation Scorecard. 

Working with government 

The Chamber’s relationship with the local and provincial 

governments has proven to be positive and 

fruitful. The Chamber has made significant input 

into the development of the Provincial Growth and 

Development Strategy, while maintaining a constant 

and constructive relationship with the leaders of the 

eThekwini Municipality. 

In addition, having received contributions from 

member companies, the chamber has made submissions 

on many proposed policies that will affect 

business through legislation. 

CONTACT INFO 

Physical address: Chamber Square, Lion 

Match Office Park, 892 Umgeni Road, 

Durban, 4001 


Tel: +27 31 335 1000 | Fax: +27 31 332 1288 

Email: chamber@durbanchamber.co.za 

Website: www.durbanchamber.co.za 


52

CALL FOR ENTRIES 

The Durban Chamber of Commerce and 

Industry is calling for nominations for the 

KZN Exporter of the Year Awards 2016 based 

on total turnover and within the following 

categories: 

• Category A - exporting for less than 

3 years. 

• Categories B-D - exporting for more 

than 3 years. 

• Category E - exports into the African 

markets. 

• Category F - for service providers. 

All KZN based Exporters are eligible to 

participate in these Awards, irrespective of 

whether or not they are Durban Chamber 

of Commerce and Industry members. 

The closing date for ENTRIES is: 

16h00, 31 August 2016 

Please forward entries for: 

KZN EXPORTER OF THE YEAR AWARDS 2016 

Attention: Ms Rokeya Valli 

Durban Chamber of Commerce and 

Industry, P O Box 1506, Durban, 4000 

Physical Address: Lion Match Office Park, 

Chamber Square, 892 Umngeni Road 

Durban 

Tel: 031-335 1000 | Fax: 086 742 2381 

Email: vallir@durbanchamber.co.za 

THE RULES 

Entries and the intellectual property of the entrants will be 

treated in the strictest confidence. 

Entries will be judged in two stages by an independent and 

impartial panel of judges. The initial stage will be based on 

a written submission from which the finalists will be chosen. 

The award winners will be announced at the KZN Exporter 

of the Year Awards 2016 Gala Dinner to be held on the 20th 

October 2016 at the Durban International Convention Centre. 

Winners may be requested to participate in post event publicity. 

Entries are open to all exporters within KwaZulu-Natal and 

NOT restricted to Durban Chamber members only. 

Applicants must be authorised to enter their organisation 

into the awards programme. 

Entries should preferably be in typed format. 

All entries will be acknowledged on receipt. Information 

included in entries will become the property of the Durban 

Chamber of Commerce and Industry. Entries will not be returned. 

The organisers reserve the right to withdraw an award from 

any applicant supplying false information within their entry. 

The Award is held on an annual basis and the ‘floating’ 

trophies are returnable to the Durban Chamber of Commerce 

and Industry at a stipulated date prior to the next event. 

The closing date for entries is 31st Augusy 2016 by which 

date entries must have been received at the offices of the 

Durban Chamber of Commerce and Industry. 

The judges’ decision is final and no correspondence will 

be entered into. 

The declaration by the financial manager must accompany 

each entry form. By registering and completing an entry for 

the awards you agree to these terms and conditions.


A period of positive 

growth and development 

The year 2015 marked 60 years since South Africans from all walks of life adopted the 

Freedom Charter in 1955, in Kliptown, Soweto, as well as the 25-year anniversary of the 

release of Nelson Mandela from prison and the unbanning of the liberation movements. 

“They declared amongst other things, that South Africa belongs to all who live in it, black 

and white, and that no government can justly claim authority unless it is based on the will 

of all the people,” said President Jacob Zuma. 


54


In a year that saw world economic and political 

uncertainty, South Africans still had much cause to 

celebrate. Great strides have been made nationwide 

in building schools and hospitals, major efforts are 

underway in terms of job creation, skills development, 

SMME growth, the empowerment of women as well 

as innovation. After a tough period of loadshedding 

and energy instability, Eskom seems to have the 

national grid stabilised as well as solid plans for the 

expansion of our infrastructure. 

South Africa also hit the world headlines through 

the discovery of a new species of human relative 

("Homo naledi") at the Cradle of Humankind 

World Heritage Site, a local doctor successfully 

completed the world’s first penis transplant, and 

Trevor Noah captured a slice of America’s cultural 

empire by taking over as host of Comedy 

Central’s The Daily Show. 

National priorities 

In his State of the Nation Address in early 2015, 

President Jacob Zuma said that it had been the 

year of rededicating ourselves to eradicate racism 

and all related intolerances in our country. 

Zuma added that the country’s ambition of 

achieving a growth target of 5% by 2019 is at risk 

because of slow global growth as well as domestic 

constraints in energy, skills, transport and logistics 

amongst other factors. However, the situation 

was more promising on the jobs front as Statistics 

South Africa’s report on the last quarter of 2014 

showed that there are now 15.3-million people 

who are employed in South Africa. "Jobs grew by 

203 000," said Zuma, adding that the economy 

still needed a major push forward. Zuma also presented 

government’s nine-point plan to ignite 

growth and create jobs. 

National Government’s nine-point growth plan 

1. Resolving the energy challenge. 

2. Revitalising agriculture and the agro-processing 

value chain. 

3. Advancing beneficiation or adding value to our 

mineral wealth. 

4. More effective implementation of a higher impact 

Industrial Policy Action Plan. 

5. Encouraging private sector investment. 

6. Moderating workplace conflict. 

7. Unlocking the potential of small, medium and micro 

enterprises (SMMEs), co-operatives, township and 

rural enterprises. 

8. State reform and boosting the role of state-owned 

companies, information and communications technology 

(ICT) infrastructure or broadband roll-out, 

water, sanitation and transport infrastructure. 

9. Operation Phakisa, which is aimed at growing the 

ocean economy and other sectors. 

"A lot has been achieved in the past year. We believe 

that our nine-point economic intervention plan on 

the economy will consolidate the achievements, 

and ignite much-needed growth," said Zuma. 

South Africa has the 24th largest economy in 

the world and contributes 30% of Sub-Saharan 

GDP despite having only 6.5% of the population. 

Sound financial management has seen South 

Africa’s macro-economic fundamentals become 

very strong off the shaky base that the apartheid regime 

created. In particular, prudent controls meant 

that South Africa was able to withstand the shockwaves 

sent around the world by the international 

financial-sector meltdown. 

The country is renowned for an abundance 

of mineral resources, accounting for a significant 

proportion of both world production and 

reserves, and South African mining companies 

dominate many sectors in the global industry. 

South Africa produces 10% of the world’s gold (it 

is estimated that about one-third of the world’s 

unmined gold still remains in South Africa) and 

there has been an increase in the beneficiated 

minerals industry, which the government has 

targeted as a growth sector. 

Economy 

The discovery of diamonds and gold in the 19th 

century laid the platform for the development of 

South Africa as an industrialised economy. Wool, 

wine and mohair were the country’s only exports 

before minerals were discovered. 



Although mining plays a far 

smaller role in the economy than 

it used to, it still contributes significantly 

to GDP, employment 

and taxation income. Demand 

for platinum, iron ore and manganese 

from the new global 

powerhouses of China and India 

is motivating investment in the 

sector in South Africa. 

Mining companies account 

for about a third of the market 

capitalisation (R1.86-trillion) of the 

country’s stock exchange, the JSE. 

One of South Africa’s fastestgrowing 

manufacturing sectors, 

catalytic converters, also owes 

its existence to the minerals that 

make up the converters, and one of the central 

planks of the South African government’s economic 

policy is to ensure that value is added to the 

country’s mineral resources. The country already 

has many steel mills and aluminium smelters, 

but many thousands of tons of raw materials are 

exported in their raw state. A number of Industrial 

Development Zones and Special Economic Zones 

have been set up and promulgated in order to attract 

investment as well as to increase local manufacturing 

capacity. 

The automotive industry is one of South Africa’s 

most important sectors and accounts for about 12% 

of South Africa’s manufacturing exports, with many of 

the major multinationals using South Africa to source 

components and assemble vehicles for both local and 

international markets. 

Dube TradePort's head office, 29 0 South. 

The country has been through a challenging period 

during which there have been serious energy constraints. 

These have proved to be an impediment 

to economic growth and a major inconvenience to 

everyone in the country. Overcoming the challenge 

was uppermost in government’s programme. 

"Government is doing everything within its 

power to deal with the problem of energy shortage 

in the country. We are quite aware of the fact 

that this is indeed a difficult period, but it shall pass 

because we do have strategies in place to deal with 

this matter," Zuma said. 

Government has developed a sustainable plan 

that involves short-, medium- and long-term capacity 

and infrastructure development, beginning with a 

plan for improved maintenance of existing Eskom 

power stations, enhancing the electricity generation 

capacity and managing the electricity demand. The 

long-term plan involves finalising South Africa’s longterm 

energy security master plan. 

"As a priority we are going to stabilise Eskom’s 

finances to enable the utility to manage the current 

period," said Zuma, adding that government 

was supporting Eskom with R23-billion for the 2016 

fiscal year. 

Energy 

Agriculture 

Agriculture is a catalyst for growth and food security 

and there is a strong public-private sector drive to 

develop an Agricultural Policy Action Plan aimed 

at bringing one-million hectares of under-utilised 

land into full production over the next three years. 

"Among key interventions this year, we will promote 

the establishment of agri-parks or cooperatives 

and clusters in each of the 27 poorest district 


56


municipalities to transform rural economies," said 

Zuma. An initial funding of R2-billion was made available 

for the agri-park initiative, while the country’s 

agro-processing exports are attracting positive interest 

in new markets through Africa and China for the 

export of South African maize and apples to China. 

Apple exports alone are projected to yield R500- 

million in foreign exchange over the next three years. 

Infrastructure 

The National Infrastructure Development programme 

continues to be a key job driver and catalyst 

for economic growth. Major projects include the 

Umzimvubu Water Project in the Eastern Cape, Jozini 

Dam in Umkhanyakude in KwaZulu-Natal and projects 

in Bushbuckridge in Mpumalanga and phase 

one of the Mokolo Crocodile Water Augmentation 

in Limpopo. 

Progress to improve the water supply to areas 

affected by shortages are underway, but the 

war against water losses (which costs the country 

R7-billion a year) is being waged through the 

Department of Water and Sanitation’s plan to train 

15 000 artisans and plumbers who will fix leaking 

taps in their local communities. 

Internal affairs 

Cabinet has adopted vigorous and integrated interventions 

to combat the vicious rhino poaching in the 

country, including continuous joint operations with 

key neighbouring countries, improved intelligence 

gathering as well as enhancing protection in parks 

and provincial reserves where rhino are present. 

Government has also made substantial progress in 

establishing a border management agency to manage 

all ports of entry and improve security. 

To further improve access to identity documents, 

citizens will now be able to apply for the new Smart 

ID Card at their local bank due to a partnership between 

the Department of Home Affairs and some 

banks in the country. 

In December 2014, Cabinet released the draft 

National Disability Rights Policy for public comment. 

'Local government is everybody’s business. We 

have to make it work. We have launched the "Back 

to Basics" programme to promote good governance 

and effective administration through cutting 

wastage, spending public funds prudently, hiring 

competent staff, and to ensure transparency and 

accountability in municipalities,' said Zuma. 

History 

One of South Africa’s premier museums and tourist 

attractions is The Cradle of Humankind, an ancient 

destination that celebrates the fact that present-day 

South Africa has been home to the human species 

for thousands of years. 

Early on 2015 a team of archeologists, led by 

Professor Lee Berger of the University of the 

Witwatersrand, made a discovery that would pose 

new and vital questions about the origins of the human 

species and shake up our understanding of the 

progress of human evolution. Two years after they 

were tipped off by cavers plumbing the depths of 

the limestone tunnels in the Rising Star Cave outside 

Johannesburg, Berger and his team discovered 

what they say is a new addition to our family tree. 

The team is calling this new species of human relative 

"Homo naledi," and they believe that part of 

their tribal culture was the practice of burying their 

dead – a behaviour scientists previously thought 

was limited to humans. 

The team believes that the chamber, located 

30 metres underground in the Cradle of Humanity 

World Heritage Site, was a burial ground - and that 

Homo naledi could have used fire for light. The 

discovery was poignant considering South Africa’s 

energy crisis, but it was also cause for celebration 

of South Africa’s position in the story of mankind, 

starting from the birthplace of man to the evolution 

of one of the greatest stories of democracy ever told. 

What lies ahead is an exciting period of growth as 

the country strives to realise its potential to be the 

gateway to Africa and, in so doing, helping to unlock 

the enormous economic and social potential within 

the continent. 

Sources: SouthAfricaInfo, BrandSA, Media Club 

South Africa, State of the Nation Address. 


Growing agri-business in KZN 

Agri-parks and trade agreements form the backbone of the province’s agricultural future, 

and will be instrumental in facilitating joint ventures between communities and investors. 

As South Africa continues to seek market access 

for agricultural products, an agreement 

with the US secured its position as an African 

Growth and Opportunity Act (AGOA) 

beneficiary. 

Through the AGOA agreement exports of agricultural 

goods are facilitated, although cheaper US 

chicken imports continue to threaten the local poultry 

industry. The KwaZulu-Natal Executive Council has 

identified key commodities such as red meat, chicken 

meat, dairy and dairy products, vegetables, dry beans 

and soya beans as focus commodities that have the 

potential to become self-sufficient industries and eventually 

enter the export market. 

In his 2015 budget address, Agriculture and Rural 

Development MEC Cyril Xaba stated that agriculture 

should be viewed as a business that extends across 

the entire food and agricultural chain, from farmers 

all the way through to consumers. The development 

of Agri-parks was proposed in a bid to attract new 

business opportunities and investors. An Agri-park is 

a networked innovation system of agro-production, 

processing, logistics, marketing, training and extension 

services, all of which is located within a District 

Municipality. 

A total of 10 Agri-parks are planned for KwaZulu- 

Natal at a cost of R45-million per park, and each will 

centre on the dominant commodity of the surrounding 

area. Agri-parks represent a 10-year programme and 

are envisaged to be fully functional by the year 2025. 

Farmer production as the primary unit 

A strong Agri-park base of primary production is necessary 

for the success of this initiative, and this will 

enable the parks to feed into the value chain and, 

in so doing, ensure participation in the agricultural 

economy by the Agri-parks. At present there are 321 

national rural development projects, 157 of which 

are concentrated in KwaZulu-Natal, and these cover 

7 235.5 hectares and total 5 446 small-hold farmers. At 

the ground level, these production sites will be controlled 

by various forms of enterprise that are owned 

by local producers, smallholder farmers and manufacturers, 

all of whom will hold shares in the Agri-parks. 

One such enterprise (and the first basic component 

of Agri-parks) is the South African Farmer 

Development Association (FPSU). As its name suggests, 

it aims to see growers develop from smallscale 

to larger operations and, in so doing, to find 

their place in the first economy. The FPSU is a rural 

small-holding farmer outreach and capacitybuilding 

unit that links with farmers and markets. 

The FPSU does primary collection and some storage, 

in addition to some processing for the local 

market, along with extension services such as 

mechanisation. 

In March 2016, the Department of Rural 

Development and Land Reform (DRDLR) handed 

over R74.5-million towards addressing the needs 

of distressed small-scale growers. The agricultural 

economy can expect contraction as a result of the 

droughts this past year, and in KZN 153 000 farmers 

were affected by the drought, with 35 731 reported 

livestock losses. 

To date 4 750 farmers have been provided with 

assistance. Measures for farmer relief and recovery 

in the province started on 11 January 2016 and included 

feed and medicines to the value of R36- 

million, with R2.1-million in livestock water provided 

for the drilling and installation of boreholes, in so 

doing equipping 75 dams and drilling 62 boreholes. 

Importantly, the DRDLR has taken essential steps 


58


to mitigate drought damage in 

sites identified for Agri-park areas. 

These identified sites or affected 

areas are tabled for each district. 

The Agro-Processing Unit 

The second component of the 

Agri-parks is referred to as the 

Agro-processing Unit, where primary 

products are processed to 

add value and bring more revenue 

into the area. These ‘agrihubs’ (as 

they are also referred to) are defined 

as production, equipment 

hire, processing, packaging, logistics, 

innovation and training units. 

The agrihubs have received 

funding approved by the DRDLR 

to counter drought damage 

across all districts, and this includes 

R80 000 towards auction 

sale facilities, R8.3-million for feedlots 

and handling facilities, and 

R1.1-million towards irrigation 

schemes. 

Efficient irrigation practices, 

technical assistance to farmers 

and increased investment in research 

and development are all 

proposed measures for enhancing 

the resilience of the agricultural 

sector against future losses. 

Rural Urban Market 

Centre (RUMC) 

far end of the agro-processing value chain this would include the speed 

that products go through port, decreased export tariffs through trade 

agreements, advancing capital investment, and increasing market development. 

This falls under the responsibility of the third component 

arm of Agri-parks, namely the RUMC. 

The RUMC has three main purposes: 

• Linking and contracting rural, urban and international markets 

through contracts. 

• To act as a holding facility, releasing produce to urban markets 

based on seasonal trends. 

• Providing market intelligence and information feedback to the 

agrihubs and the FPSU, using the latest information and communication 

technologies. 

Developing Agri-park management structures 

Governance structures for Agri-parks have already been established, 

and on 11 December 2015 the District Agri-parks Management Councils 

(DAMC) and the National Agri-parks Management Councils (NAMC) were 

launched. In their March 2016 meeting MEC Xaba met with the newly 

appointed governing bodies for a workshop to address progress. The 

MEC reminded the DAMCs that Agri-parks had been introduced to kickstart 

rural economy development and that, should they fail, then they 

would be failing the poor and the people of the province as a whole. 

Production programmes 

Production plans are currently being implemented, with some plans 

having to be realigned to address prevailing drought conditions. Agripark 

construction (Farmer Production Support Units and agri hubs) has 

commenced in seven of 27 priority districts, although this does not 

yet include KwaZulu-Natal. The districts are busy completing their own 

business plans in order to show linkages between farmers, the FPSU, 

agrihubs and the RUMC. 

AGRIPARK 

Developments in the province 

around agri-business are effectively 

incorporating measures to 

buffer against future economic 

losses sustained by drought and 

are geared towards achieving the 

agreed 0.5% additional contribution 

to economic growth. At the 

CF can use the Agripark 

process established 

as depicted. 

However due to their 

existing experience 

and product volumes 

they may choose to 

enter the AP process 

at the AH, RUMC or 

even go directly to 

the Market. 

Commercail Farmer (CF) 

Information 

Small Product Support Unit 

(SPFU) 

Agri-Hub (AH) 

Rural Urban Market Centre 

(RUMC) 

MARKET 

Small Holder Farmer (SHF) 

Co-operatives 

SHF's will be encouraged to use 

the Agri-park process established 

as depicted. It is within this process 

that SHF will be supported 

over the next 10 years. SHF will 

be able to move produce from 

the FPSU to the RUMC without 

going through the AH, if no further 

value-added of packaging 

is required. The efficiency of the 

Agri-park process will determine 

its use by farmers. 

Produce 


KEY SECTORS 

Overview of the main economic 

sectors of KwaZulu-Natal 

Agriculture 62 

Forestry and paper 64 

Sugar 72 

Oil and gas 74 

Mining 78 

Manufacturing 80 

Automotive 84 

Water 86 

Renewable energy 88 

Banking and financial services 90 

Development finance and 

SMME support 102 

Education and training 104 

Tourism 106

OVERVIEW 

Agriculture 

The diversity of KwaZulu-Natal's agricultural sector is providing new sources of income. 

SECTOR HIGHLIGHTS 

• RCL Foods Ltd has become 

a major player in the 

food sector 

• A new marula processing 

plant promises increased 

incomes for farmers 

• An ethanol from sugar 

project could create jobs 

near Jozin 

What used to be Rainbow Chickens is now the rapidly 

expanding 'RCL Foods Ltd', but the base of the new 

company is still in Westville, about 12km west of Durban. 

Having purchased Vector Logistics in 2004, RCL made 

two large investments in 2013, a majority share of Foodcorp and a 49% 

stake in Zam Chick of Zambia. The Remgro Group is a 75.9% shareholder 

in RCL Foods, which for the six months ended 31 December 2015 had 

revenue of R12.9-billion, which was 7% down on the previous year. 

The diversification that came with the purchase of Foodcorp means 

that a large number of brands are now housed in the company – Nola, 

Yum Yum, Sunbake bread, Farmer Brown, Ouma rusks, A1 Maize Meal, 

for example – and this spread helped to counter events such as the 

national drought and the importation of 65 000 tons of poultry from 

the United States of America. The special trade deal between the USA 

and South Africa (AGOA) was a cause of tension recently, and poultry 

by-products were one of the key issues. The trade agreement has 

since been renewed. 

KwaZulu-Natal is also home to Clover, one of South Africa's most 

important agri-processing firms in the dairy sector. In Pinetown 

Clover has a long-life UHT milk processing and packaging facility; 

a Queensburgh factory makes 

fresh pasteurised milk, juice, 

dairy mix and fermented products; 

Escourt manufactures milk 

powder. Revenue for the six 

months to 31 December 2015 

was up nearly 8% to R5-billion 

but the lack of feed caused by 

the drought will affect all milk 

producers in South Africa. Clover 

buys nearly 30% of all milk produced 

by South Africa's farmers. 

KwaZulu-Natal has a large 

number of food and beverage 

producers, but there are countless 

opportunities that still remain 

in the agri-processing 

sector. Agri-processing will no 

longer be the preserve of big 

companies, thanks to a provincial 

government initiative in 

Ngwanase in the uMkhanyakude 

District Municipality. R30-million 

has been invested in a marula 

processing plant, designed to 


62

OVERVIEW 

produce jams and oils. Most of 

the funding came from the KZN 

Department of Agriculture and 

Rural Development (KDARD) with 

the national Department of Rural 

Development and Land Reform 

contributing a R5-million de-stoner 

machine. Forty-nine areas will 

supply primary stock to the plant. 

Vegetables also grow well in 

most areas, and some maize is 

grown in the north-west. Nuts 

such as pecan and macadamia 

thrive. The province’s forests occur 

mostly in the southern and 

northern edges of the province. 

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. 

The coastal areas lend themselves 

to sugar production and 

fruit growing, 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. 

Eighteen percent of Kwa- 

Zulu-Natal’s 6.5-million hectares 

of agricultural land is arable and 

the balance is suitable for the 

rearing of livestock. 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. The Orange Grove 

Dairy Farm near Dundee has one 

of the biggest pedigree Jersey 

herds in the country. 

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. 

Upliftment and investment 

A KwaZulu-Natal Department of Agriculture and Rural Development 

initiative to help small farmers become commercial farmers has 3 483 

participants and 122 communal estates have been registered as legal 

entities. Another upliftment project will see R14-million spent on assisting 

five small-grower collectives to become effective sugar-cane 

farmers at Qoloqolo (uMzumbe Local Municipality). 

Massmart, the retail group that has been bought by US giant 

Walmart, will invest R15-million to 2017 in creating opportunities in 

its food chain for emerging farmers. TechnoServe, a non-governmental 

organisation, will oversee the programme. 

A South African/Brazilian company called Silvapen is set to develop 

an ethanol-from-sugar plant near Jozini on the Makhatini Flats. The 

premier of the province announced that the project's value is R1.2- 

billion and it could create 1 000 jobs. 

Enterprise iLembe, the development arm of the iLembe District 

Municipality, is looking for investors to further develop an agri-processing 

hub that is taking shape near the King Shaka International 

Airport and Dube TradePort. 

KwaZulu-Natal has two colleges offering higher qualifications in 

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

Agriculture near Empangeni. 

ONLINE RESOURCES 

Citrus Growers’ Association: www.cga.co.za 

Coastal Farmers Co-operative: www.coastals.co.za 

Dry Beans Producers’ Organisation: www.beans.co.za 

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

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

KwaZulu-Natal Department of Agriculture and Rural 

Development: www.kzndard.gov.za 

Milk Producers Organisation: www.mpo.co.za 

National Department of Agriculture, Forestry and Fisheries: 

www.daff.gov.za 

Royal Agricultural Society of Natal: www.royalshow.co.za 

TWK: www.twkagri.com 


OVERVIEW 

Forestry and paper 

KwaZulu-Natal makes huge amounts of dissolving wood pulp and paper. 


• Sappi has transferred production 

of Typek paper to 

its Stanger mill. 

• Durban hosted the World 

Forestry Conference in 

2015. 

• Mpact recently invested 

an additional R200- 

million in production 

facilities. 

• South Africa is set to have 

many more small-growers 

in the near future. 

For the first time an African country hosted the World Forestry 

Conference, when thousands of delegates descended on 

Durban in September 2015. 

Topics such as climate change, food security, plantations, 

water supply and conservation (and how these issues relate to forests) 

were given a full airing at the conference. 

In her address to the conference, South Africa's Minister of Water 

and Sanitation, Nomvula Mokonyane, stressed the threat posed by 

invasive alien plant species to the country’s biological diversity, water 

security and the productive use of land. She pointed out that alien 

plants consume 30% of the country's water. 

Deputy State President Cyril Ramaphosa told delegates that South 

Africa's forestry sector will, look different in a few years time. Although 

there are already 24 000 'small growers', this number is set to rise significantly 

as land restitution claims are settled: Ramaphosa said that '50 

to 60% of our plantation land' is under land claims, and he pointed out 

that these new farmers will need support. This will present an opportunity 

for entrepreneurs or companies in the agricultural services sector. 

KwaZulu-Natal is a national 

leader in the forestry and paper 

sector. The forest-product export 

sector in South Africa is made 

up of paper (45.2%), solid wood 

(23.3%) and pulp (28.9%). 

Mpact, the paper manufacturing 

and plastics packager that 

was spun out of Mondi, invested 

a further R200-million in its waste 

paper and recycling operation 

at Empangeni. The company 

collects more than 450 000 tons 

every year. 

Mondi and Sappi are both 

large international companies 

and both have long-standing 

ties with KwaZulu-Natal. Sappi 

Southern Africa currently contributes 

a quarter of the group’s 

sales. The pulp and paper sector 

makes a direct contribution to 

South Africa’s balance of payments 

of R4.5-billion, largely due 


64

OVERVIEW 

to Sappi’s dissolving wood pulp 

operations. 

In 2015 Sappi moved the production 

of its Typek paper from a 

mill in Gauteng (which it has sold) 

to its Stanger facility, where office 

and tissue paper are the key 

products. 

Timber 

Timber plantations are found in 

five parts of the province: northern 

KwaZulu-Natal, Midlands, southern 

KwaZulu-Natal, Zululand and 

Maputaland. Close to half a million 

hectares – 38.5% of the land in the 

province – is allocated to timber 

plantations. Of this area, 70% is devoted 

to hardwoods and the balance 

to pine, the only softwood 

grown in large quantities in South 

Africa. 

The percentage of privately 

owned forest land is 93.4%. 

Merensky has plantations in the 

Dargle forest, while Sappi and 

Mondi have holdings across the 

province. Mondi has 220 000 

plantation hectares on 330 000 

hectares of land, while Sappi 

manages and owns about 

230 000 hectares. 

The South African forestry industry 

is valued at R40-billion per 

year. The National Department of 

Agriculture, Forestry and Fisheries 

reports that South Africa has a 

shortage of sawn timber and that 

this problem is set to get worse. 

Labour writer and researcher 

Terry Bell reports that 82% of the 

forestry workforce on the 17 largest 

operations (36 025 employees) 

are employed on contract 

through labour brokers (Business 

Times). With a further 5% on fixed-term contracts, Bell believes this has 

the potential to increase tension between employer and employee. 

Processing 

KwaZulu-Natal is a major centre for the beneficiation of timber products, 

with more than half the country’s timber coming from the province. 

The Sappi mill at KwaDukuza produces 110 000 tons of paper and 

60 000 tons of pulp annually, and is the only producer of coated graphic 

paper in the country. Its Tugela Mill, at Mandeni, is the only one in the 

country to manufacture high-performance containerboard packaging. 

The giant Sappi Saiccor mill 50km south of Durban is the world's 

biggest manufacturer of dissolving wood pulp. The mill's capacity is 

800 000 tons. Dissolving wood pulp is sold as a raw material to converters 

around the world who produce from it a range of products such as 

textiles, cellophane wrap and pharmaceuticals. 

The country’s largest hardboard plant is at Estcourt and South Africa’s 

only woodchip export plants are located at Richards Bay. 

Mondi’s Richards Bay facilities produce pulp, linerboard and wood 

chips and its paper mill at Merebank, south of Durban, has a capacity 

of 600 tons per day. It produces 400 000 tons of uncoated, wood-free 

paper per year. 

Nampak produces crêpe paper at Verulam and Rafalo produces 

tissue paper. SA Paper Mills is another paper producer. 

The Merensky Group operates one softwood sawmill in addition 

to a panel-processing plant in Kokstad that is geared to manufacture 

according to customers’ needs in any sector. Export is done through 

the Port of Durban. 

NCT Forestry Co-op Limited is a key timber-marketing entity with 

more than 2 000 members and three wood-chipping mills. R&B Timber 

Group has three pole treatment plants and is headquartered in Harding. 

Flaxton Timbers operates out of Ixopo and Natal Forest Products is in 

Richmond. 


Forestry South Africa: www.forestry.co.za 

KwaZulu-Natal Department of Agriculture and Environmental 

Affairs: www.kzndae.gov.za 

National Department of Agriculture, Forestry and Fisheries: 

www.daff.gov.za 

Paper Manufacturers of South Africa: www.thepaperstory.co.za 

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

Technical Association of the Pulp and Paper Industry of South 

Africa: www.tappsa.co.za 


FOCUS 

We are Mondi: 

In touch every day 

At Mondi, our products protect and preserve the things that matter. 

Mondi is an international 

packaging and paper 

Group, employing 

around 25 000 people 

across more than 30 countries. Our 

key operations are located in central 

Europe, Russia, North America 

and South Africa. We offer over 

100 packaging and paper products, 

customised into more than 

100 000 different solutions for customers, 

end consumers and industrial 

end uses – touching the lives of 

millions of people every day. In 2015, 

Mondi had revenues of €6.8-billion 

and a return on capital employed 

of 20.5%. 

The Mondi Group is fully integrated 

across the packaging and paper 

value chain – from managing forests 

and producing pulp, paper and 

compound plastics, to developing 

effective and innovative industrial 

and consumer packaging solutions. 

Our innovative technologies and 

products can be found in a variety 

of applications including hygiene 

components, stand-up pouches, 

super-strong cement bags, clever 

retail boxes and office paper. Our 

key customers are in industries 

such as automotive; building and 

construction; chemicals; food and 

beverage; home and personal 

care; medical and pharmaceutical; 

packaging and paper converting; 

pet care; and office and professional 

printing. 

Richards Bay mill. 

Mondi has a dual listed company structure, with a primary listing on the JSE 

Limited for Mondi Limited under the ticker code MND and a premium listing 

on the London Stock Exchange for Mondi plc, under the ticker code MNDI. 

For us, acting sustainably makes good business sense and is part of the 

way we work every day. We have been included in the FTSE4Good Index 

Series since 2008 and the JSE’s Socially Responsible Investment (SRI) Index 

since 2007. 

Mondi's South Africa Division 

In South Africa our business manages upstream forestry operations and 

manufactures and sells a range of pulp, virgin containerboard, uncoated 

fine paper (UFP) and newsprint products. 

We own and manage one of the largest Forestry Stewardship FSC®-certified 

plantation units in the world. The internationally recognised FSC® accreditation 

recognises that our plantations are managed in a responsible and 

sustainable manner. 

We have 1 600 employees working across three divisions: Forestry operations, 

a pulp and linerboard mill, and an uncoated fine paper and 

newsprint mill. 

CONTACT INFO 

Key personel: CEO Mondi South Africa, Ron Traill 

Physical address: Travancore Drive, Merebank 4052 

Postal address: PO Box 31024, Merebank 4059 

Tel: +27 31 451 2111 | Website: www.mondigroup.com 

KWAZULU-NATAL BUSINESS 2016 

66

Mondi Group 

South Africa 

INTERVIEW 

Ron Traill, Chief Executive Officer of Mondi SA, talks 

about how the group achieved its recent strong results 

while ensuring sustainable development of their 

forests and local communities. 

Ron Traill, CEO of Mondi 

South Africa 

BIOGRAPHY 

Ron joined Mondi in 2003 as 

managing director of the Štetí 

pulp and paper mill in the ˇ 

Czech Republic, also assuming 

responsibility for the Mondi 

packaging paper business in 

Ružomberok, Slovakia. He 

then relocated to SA, being 

appointed CEO of the South 

Africa Division in January 2008. 

Ron has over 34 years’ experience 

in the paper industry. He 

began his career as an industrial 

engineer with DRG Packaging 

Group, working in its Scottish 

paper mill. He went on to hold 

a succession of posts within 

the company, leading ultimately 

to his appointment as general 

manager. Following DRG’s acquisition 

by Sappi in 1990, he 

worked for 10 years in a number 

of general management roles. 

What makes KwaZulu-Natal such a good business 

location for Mondi South Africa? 

Durban is a large business hub with good road and rail infrastructure 

for our domestically focused business. The location and proximity of 

the largest port in Africa offers strategic advantages for our export 

products while the province’s northern and central areas offer a very 

good climate and environment which is well-suited to a commercial 

forestry business. Our Richards Bay mill is also very well situated to 

export products from the Richards Bay port. 

Mondi South Africa had exceptionally good financial 

results. How important to your financial performance 

was the successful repositioning of your business? 

There are three strategic value drivers for our business in Mondi 

South Africa. Firstly, maintaining a high-quality, low-cost asset base, 

keeping a strong focus on performance and the development of 

our people. 

We have a philosophy of continuous improvement and a constant 

focus on operational excellence. The fundamental principle behind 

operational excellence at Mondi is the desire to do more with less. 

We continue to invest in and manage our business to ensure that 

our manufacturing operations maintain their high-quality and low-cost 

advantages and are well-positioned for growth opportunities. In 2016, 

we will be focusing on the completion of our strategic investments 

in the woodyard and brown kraftliner production at our Richards Bay 

mill. The ability to produce both white top and a brown liner will offer 

us additional market flexibility. In our graphic paper and newsprint 

business at Merebank the focus remains on continuing to run our 

operations well and delivering consistent quality to our customers. 

In our forestry business, the modernisation of our operations 

has been a key focus in recent years. We are dependent on low-cost 

timber from sustainably managed forests. Our research activities 

focus on increasing the resistance of our trees to pests and diseases, 

improving their ability to withstand drought conditions and 


INTERVIEW 

Uncoated fine paper machine, Merebank. 

increasing the rate of growth and yield. As a result 

of our nursery modernisation investments, we have 

reduced the time to market and delivered a 10-15% 

improvement in our timber yield. 

Another important area is the development of 

our people. This is evident in the consistently high 

level of training in our operations. A highlight in 

2015 was that four of our employees received their 

international Pulp and Paper Craftsman qualification 

in Europe. By investing in our people, our operations 

have become safer and our people are more 

skilled, more effective and more productive. Our 

productivity has improved by 90% over the last 

three years. 

What measures have you put in place to 

ensure the sustainability of your plantations 

as well as consideration for the 

environment? 

We are well aware of our responsibility to mitigate 

the impact of our business on the environment, 

including limiting our water consumption. 

Water is crucial throughout the paper production 

process, from growing trees to processing fibre into 

products and for ‘non-contact’ purposes such as 

cooling water in our production facilities. We have 

invested around R5-million in projects to reduce 

water consumption in our production processes at 

the Richards Bay mill resulting in a 15% reduction in 

water consumption in 2015. At our Merebank mill we 

have replaced more than 90% of the potable water 

use with second-class treated water and made further 

investments to reduce the remaining potable 

water, resulting in a 60% reduction in potable water 

consumption since 2010. 

“WE HAVE DEVELOPED AN 

EXTENSIVE PROGRAMME OF 

HIGH-QUALITY TRAINING TO 

SUPPORT OUR EMPLOYEES 

IN ACHIEVING THEIR FULL 

POTENTIAL.” – RON TRAILL, 

CEO, MONDI SA. 


68

INTERVIEW 

Wetland, Mondi Gilboa. 

Modernised forestry operations. 

We place great importance on proactive and 

responsible stewardship of forests as well as freshwater 

ecosystems and maintaining biodiversity and 

habitats. 

Responsible forest management involves increasing 

long-term productivity and preserving 

ecosystem values in rural landscapes, and protecting 

high conservation value areas such as wetlands. 

The Mondi Group is also a long-standing supporter 

of the WWF-Mondi Wetlands Programme 

(WWF-MWP), which celebrates its 25th anniversary 

in 2016. The programme focuses on managing 

and rehabilitating wetlands with different groups 

of land-users (including Mondi) where we have 

improved wetland management on our forestry 

land while removing commercial trees from riparian 

zones and wetlands. The WWF-MWP is now 

part of our global partnership with WWF. The 

programme’s focus is shifting to catalysing water 

stewardship at the landscape scale, ensuring collaboration 

and action by different land-users in 

the uMngeni and Mvoti River catchments, both 

of which are strategically important water-supply 

areas for KZN’s economic hubs. 

To what extent do you engage with local 

communities and play a role in development 

and upliftment of those communities? 

We engage with a wide range of stakeholders, 

including government, NGOs, suppliers and communities, 

and the latter are a major focus of our 

investment in health, education and local enterprise. 


INTERVIEW 

Mondi’s Sizwe Mtengu with Moses Ntombela, Chairperson of the kwaZiqongwana Community Trust 

forestry business, Babanango Zululand. 

Mondi Career Guidance, Science and FET Skills 

Centre, Piet Retief. 

Mondi Zimele, our local enterprise initiative, has an 

excellent track record of creating sustainable businesses 

and jobs. In addition, it helps to maintain a 

steady supply of high-quality fibre from a network 

of small forest enterprises, and this has continued 

to make a positive impact on the lives of people 

in our rural communities. 

Health and education are key community investment 

priorities. We have continued to support 

REAP (Rural Educational Access Programme) which 

provides bursaries as well as access to tertiary 

education in rural forestry areas. Our mobile clinics 

operate in partnership with local NGOs and 

the Department of Health, and these continue to 

provide high-quality healthcare for our contractors 

and communities. In 2015, the clinics received 

54 369 visits, which included 8 498 visits by forestry 

contractors and 45 871 visits by local communities. 

Our wider community investments continue to 

assist and empower schools, university students, 

forest smallholders and entrepreneurs, as well as 

provide healthcare and support. 


70

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Global Africa Network Media 

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Email: sales@gan.co.za 

Website: www.gan.co.za

OVERVIEW 

Sugar 

Sugar production levels have been affected by the drought. 

Illovo Sugar Limited has a presence in six African countries and is 

the continent's biggest sugar producer. The group's head office is in 

Umhlanga Rocks, close to the heart of South Africa's sugar industry 

in northern KwaZulu-Natal. 

Tongaat-Hulett's headquarters are about 50km north of Umhlanga, 

close to the King Shaka International Airport. 

The South African Sugar Association has offices, research laboratories 

and sugar-cane testing facilities at nearby Mount Edgecombe. Various 

divisions of SASA are housed in a building called Kwa-Shukela, as are 

the following organisations: the SA Cane Growers' Association, the SA 

Sugar Millers' Association, the National Bargaining Council for Sugar, 

Grocane Fire Insurance, and TSB Sugar (Durban office). 

The Sugar Milling Research Institute conducts research for each of 

the 14 raw sugar factories in South Africa and the central refinery of the 

Tongaat-Hulett Group, all of which are full members of the SMRI. The 

Institute also provides technical services to some affiliated member mills 

in Swaziland, Mozambique, Zimbabwe, Malawi, Zambia and Tanzania. 

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. 

Both companies reported reduced production volumes in 2015 

because of the drought in South Africa. Tongaat-Hulett's Darnall mill 

did not open for the season. The Illovo group reported a 10% downturn 

in production in September 2015. Operating profit for the six months 

dropped to R881-million, a fall of 36.7%. 

About 40% of local production is exported. There are six sugar 

producers who can collectively produce about two-million tons. The 

general trend has for less sugar to be produced. 

The South African Cane Growers' Association represents about 

24 000 growers who produce about 20-million tons of cane. 

Fluctuating weather conditions in recent seasons have contributed 

to overall South African production of sugar declining, but the industry 

has a strong infrastructure, particularly in KwaZulu-Natal, the province 

where most of the country's sugar is grown, crushed and processed. 

Mpumalanga is the other province with significant capacity. 

Total saleable sugar production dropped below two-million tons 

for the first time in many years in the 2010/11 season, but has since 

recovered. Saleale sugar within South Africa fell from 1.649-million tons 

in 2014/15 to 1.620-million tons in 2015/16. 


The R14-million Qoloqolo 

Sugar Cane project will 

boost co-operatives in the 

uMzumbe local Municipality. 

• The SA Cane Growers' 

Association represents 

nearly 24 000 growers, 

who produce in the region 

of 20-million tons of cane. 

• Illovo and Tongaat-Hulett 

are the two giants in the 

sugar sector. 

The biggest challenge to 

South Africa’s sugar industry is the 

huge subsidies available to sugar 

producers in the northern hemisphere. 

In addition to this, the 

countries of the Southern African 


72

OVERVIEW 

Development Community have 

not successfully bargained with 

Europe as a unit, with the result 

that individual countries have 

gained preferential rights. This 

does not include South Africa. 

Small growers 

Despite government and industry 

efforts to promote small sugarcane 

growers, many of these 

small-scale farmers are finding 

conditions very difficult. 

In the 2000/01 season, farmers 

in the Umfolozi district produced 

more than 400 000 tons 

of cane; by 2008/09 that figure 

had dropped to 142 846 tons. 

Poor rainfall and high input costs 

threaten the viability of many 

small farms, which are often located 

on land controlled by tribal 

authorities. The average size of a 

small farm is 4.74 hectares. 

Land reform (including the 

distribution of land to new small 

growers) is part of the policy of 

provincial and national government. 

The South African Sugar 

Association (SASA) reports that 

some 21% of freehold land under 

cane has been transferred from 

white owners to black owners 

since 1994 off a base of 5%. With 

a number of land claims still outstanding, 

it is clear that this number 

is set to grow. 

In 2015 SASA teamed up with 

the provincial government to support 

the Qoloqolo Sugar Cane project. 

This will see R14-million spent 

in support of co-operatives in the 

uMzumbe Local Municipality area 

on fencing, introducing methods 

for better yields and more costeffective 

harvesting, in addition to expanding the amount of cane 

under management. 

Facilities 

Three mills in Zululand cater for 4.2-million tons, three North Coast 

mills take care of 3.2-million tons, the three Midlands facilities crush 

3.5-million tons and the South Coast's two mills handle 3.2-million tons. 

Illovo and Tongaat Hulett are the major operators of sugar mills, and 

12 of South Africa’s 14 mills are located in KwaZulu-Natal. Each of these 

companies operates one mill in the province: Gledhow, ULC, Umfolozi 

and TSB (the latter has a further two mills in Mpumalanga). 

Illovo has four mills, three sugar-cane estates, four sugar factories, 

a refinery and three downstream operations that make products such 

as furfural, furfuryl alcohol, ethyl alcohol and lactulose. 

The four mills run by Tongaat Hulett are located on the North 

Coast, while the central refinery is in Durban and the animal feed 

plant, Voermol, is near Tongaat. 

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. 

SALEABLE SUGAR PRODUCTION 

Year 

Tons produced in SA for SA and export 

2008/09 2 260 244 

2009/10 2 178 543 

2010/11 1 909 236 

2011/12 1 822 488 

2012/13 1 951 518 

2013/14 2 343 650 

2014/15 2 110 550 

SOURCE: SA SUGAR ASSOCIATION 


South African Cane Growers’ Association: www.sacanegrowers. 

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

South African Sugar Technologists Association: www.sasta.co.za 

Sugar Milling Research Institute: www.smri.org 


OVERVIEW 

Oil and gas 

Oil and gas companies are exploring off the coast of KwaZulu-Natal. 


• Statoil has acquired 35% 

of oil exploration rights 

in the Tugela South field. 

• A gas-to-power project 

is mooted for the 

Richards Bay Industrial 

Development Zone. 

• Vopak has increased its 

storage capacity. 

• Sasol and Eni are working 

together in offshore 

exploration. 

The search is on for oil off the coast of KwaZulu-Natal. Tugela 

South is an area off the coast where exploration rights were 

first granted to Impact Oil & Gas in 2011. Various studies have 

been done and ExxonMobil came on board as a shareholder 

and later, as operator in 2013: they were joined in 2015 by Statoil. 

The Tugela South Exploration Right covers in the region of 2.8- 

million acres and future rights encompass an additional 16-million 

acres offshore (SAinfo). 

Rhino Oil and Gas and Sungu Sungu Gas are also actively exploring 

for oil and gas in the province, while Sasol has a three-year permit 

to explore off the coast of the province. Sasol has signed a partnership 

for Italian multinational company Eni to be the operator of the 

exploration effort. 

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

in the pipeline chain that connects the Gauteng province (the industrial 

heartland of South Africa), with vital fuels. The Port of Durban handles 

80% of South Africa's fuel imports. KwaZulu-Natal is thus a key player 

in the country’s oil and gas industry. 

Royal Vopak, which runs a large terminal at the Port of Durban, has 

expanded capacity to 174 000m³ and is planning to grow its ability 

to store fuel still further. It is also 

planning a new storage facility 

at Heidelberg that will cater for 

petroleum and chemicals. Towns 

along the N3 highway are increasingly 

receiving investments in the 

logistics sector. 

Getting fuel to the province 

of Gauteng is the key mission of 

the new multi-purpose pipeline 

(NMPP) which started delivering 

fluids in early 2012, with the full 

first phase coming on line a year 

later. 

The NMPP terminals allow 

for greater flexibility in supply. 

Refined products such as jet fuel, 

sulphur diesel and both kinds of 

octane petrol are carried. The infrastructure 

of Transnet Pipelines 

reportedly reduces the number 

of fuel tankers on South African 

roads by about 60%. 

The liquid fuels and gas networks 

of Transnet Pipelines trav- 


74

OVERVIEW 

erses KwaZulu-Natal from west 

to east and north to south. The 

petroleum network has intake 

stations at both Durban refineries, 

while the gas pipeline runs 

from Secunda to Durban, with 

diversions to the manufacturing 

hubs of Newcastle and Richards 

Bay, and along the coast between 

Durban and Empangeni. 

Transnet Pipelines employs 

658 staff, with about 200 located 

at the head office in Anton 

Lembede Street in downtown 

Durban. 

(among other things) in fuel products. The modifications to the refinery 

will bring it into line with the tougher legislation regarding fuel 

production that is in the pipeline. 

The Enref refinery owned by Engen can produce 135 000 barrels 

per day. This sophisticated refinery can convert light and heavy crude 

oil into high-value products that include jet and diesel fuel, solvents, 

bitumen, sulphur, bunker oil and aviation gasoline. 

Safor is a base-oil production facility (jointly owned by Engen, Caltex 

and Total, but operated by Engen) that produces 45% of Southern 

Africa’s base oils. Engen also owns the adjoining Lube Oil Blend Plant, 

which produces in excess of 72-million litres of finished lubricants 

every year. 

KwaZulu-Natal has the second-highest consumption of diesel fuel 

of South Africa’s provinces (17.8%) and the third-highest consumption 

of petrol (15.4%). 

Petroleum 

KwaZulu-Natal’s two oil refineries 

produce large volumes of a 

wide range of products. They are 

important regional and national 

assets as their joint production 

accounts for more than 300 000 

of the 700 000 barrels of refined 

crude oil that South Africa produces. 

BP, one of the joint operators of 

the Sapref refinery located south 

of Durban, spent R1.4-billion on 

energy infrastructure in South 

Africa in the period to 2013. 

South Africa’s biggest refinery 

is Sapref. Owned jointly by 

Shell SA Refining (25%), Thebe 

Investments (25%) and BP 

Southern Africa (50%), it has a capacity 

to produce 180 000 barrels 

per day. The refinery also makes 

propylene feedstock, solvents, 

sulphur, asphalt, industrial-processing 

oils and liquefied petroleum 

gas. 

Sapref has started a 'cleanfuels' 

project, aiming to reduce 

sulphur and benzene levels 

Gas 

In the Richards Bay Industrial Development Zone a gas-to-power 

project has been proposed by the zone's managers. The plan involves 

importing gas from the nearby Mozambique gas fields by ship or 

pipeline. An even more attractive option would be if gas were found 

off the coast of Richards Bay. 

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 Energy. 

Plants in Durban, Pietermaritzburg and Richards Bay produce a 

variety of industrial, household and medical gases. End products include 

acetylene welding products and compressed-oxygen cylinders. 

Air Liquide is spending R100-million on expanding its liquid-nitrogen 

plant in Richards Bay, and Afrox has budgeted R500-million for 

moving its headquarters to an 111 000m² site at Cornubia Industrial 

Estate near Umhlanga. Operations will be moved from the Port of 

Durban, Pinetown and Seaview. The new plant will be expected to fill 

5 000 cylinders every day. 


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 

Transnet Pipelines: www.transnetpipelines.net 


RBM050-40 HALOMEDIA 2016 

T: +27 (0)35 901 3111 

E: communication@rbm.co.za 

W: www.rbm.co.za

4

OVERVIEW 

Mining 

The rich mineral sands of northern KwaZulu-Natal underpin the province's mining sector. 

Mining was responsible for about 2% of KwaZulu-Natal's 

gross domestic product (GDP) in 2013, which is to say R9.3- 

billion. Half of the province's mining output (and 3.3% of 

South Africa's) comes from Richards Bay Minerals (RBM). 

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

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

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

iron. Of the approximately two-million tons of product that RBM has 

the capacity to produce annually, 95% is exported. 

Titanium dioxide adds opacity to paints, fibres and plastics and it 

is also vital to the pigment industry. 

Rio Tinto owns 74% of RBM. Weak global demand meant that 

overall production of titanium dioxide slag by Rio Tinto (including 

their Canadian operations) was down 25% in 2015. One of the four 

furnaces at RBM has been idled in response to this reduced demand. 

Since the deal to develop the Fairbreeze mine and smelter was 

signed between Canadian company Tronox and South African resources 

company Exxaro in 2012, $225-million has been spent on the 

project. The mine came on line in the fourth quarter of 2015, on budget 

and ahead of schedule, replacing the closed-down Hillendale mine. 

The final $50-million will be spent in the course of 2016. Feedstock for 

the slag furnaces near Empangeni is ilmenite and it produces zircon 

and pig iron, amongst other mineral products. China is an enthusiastic 

buyer of zircon, but growth in that country has not been as fast in 

recent months as was the case for several years up to 2015. 


The Fairbreeze mine and 

smelter started operating 

in 2015. 

• The community in which 

Petmin's Somkhele coal 

mine operates are now 

partners in the business. 

• A feasibility study recommends 

establishing a provincial 

Metals Hub. 

• Tronox will spend $50-million 

at Fairbreeze in 2016. 

Processing 

KwaZulu-Natal is home to one 

aluminium smelter (there were 

two in Richards Bay until Bayside 

closed in 2015), Arcelor Mittal 

has a large steel-making plant 

in Newcastle and Tata Steel 

KZN manufactures high-carbon 


78

OVERVIEW 

ferrochrome at Richards Bay. 

Safa Steel has a fairly new metalcoating 

factory in Cato Manor. 

Hulamin makes rolled products at 

three sites in the province while 

the Pietermartizburg facility also 

makes extrusion products. 

The provincial government 

is keen to promote the downstream 

beneficiation of metals 

within the Richards Bay area. A 

feasibility study on establishing 

a Metals Hub returned a positive 

verdict. 

A small-scale mining Imbizo 

was held in August 2015 to 

look into regulations, access to 

funding, and technical support 

mechanisms for small-scale 

mining. Since then, the province 

has produced the KZN Mineral 

Beneficiation Strategy. The first 

area of focus is coal and phosphate. 

There is a provincial commitment 

to using waste material 

from the mineral sector as a 

source for beneficiated building 

materials and five commodity 

value chains are going to 

be examined in detail, namely 

Aluminium, Coal, Iron and Steel, 

Phosphates and Mineral Sands. 

Coal 

Some of the province’s coalfields 

have been revived and the export 

facilities at Richards Bay make a 

massive contribution to the functioning 

of the country’s mining 

sector. 

Petmin's Somkhele Anthracite 

Mine, north of Richards Bay, has 

one of the biggest reserves of 

open-pit anthracite in South 

Africa, with measured and indicated reserves of more than 51- 

million tons across its four areas. 

In 2015 the local community of about 175 000 became 20% shareholders 

in the mine. The Petmin holding company is already 'empowered' 

(ie, 26% black ownership). 

Although the second six months of 2015 saw some reduction in 

production due to geological conditions, the mine still produced more 

in the year than the benchmarked annual figure of 1.2-million tons of 

metallurgical anthracite for ferro-alloy smelting. Somkhele also mines a 

lower-grade coal, what is known as 'energy coal'. Its annual capacity for this 

type of coal is about 350 000 tons: in the six months to December 2015, 

production was 8% down on the previous year (namely 157 000 tons). 

Buffalo Coal Corporation (formerly Forbes Coal) has Canadian roots 

and has two assets near Dundee: Magdalena Colliery (production capacity 

of 100 000 tons of saleable bituminous coal per month) and Aviemore 

Colliery (45 500 tons of anthracite coal). The company has two processing 

plants. 

Other minerals 

Idwala Industrial Holdings quarries and mills white calcitic and dolomitic 

limestone near Port Shepstone, where NPC Cimpor also runs a 

quarry which produces sand, shale and limestone. 

Umzimkhulu Industrial Holdings obtained new mining rights in the 

course of 2015, from the national Department of Mineral Resources. 

The company has the rights to mine near Port Shepstone and the 

provincial government put the value of the investment at R187-million, 

with the creation of 48 jobs. 

The northern region has deposits of aluminium and calcitic marbles. 

Some low-grade bauxite is found. Vein gold mining is undertaken 

near the northern border with Mozambique. The Umzinto goldfield 

has several sites, but mining has only ever been on a small scale. Sand 

and aggregate are produced by Vryheid-based WH Lemmon-Warde 

Holdings, Lafarge and Afrisam. Corobrik has several facilities in and 

around Durban. 


Chamber of Mines South Africa: www.bullion.org.za 

Council for Geoscience: www.geoscience.org.za 

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

Geological Society of South Africa: www.gssa.org.za 

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

Southern African Institute of Mining and Metallurgy: 

www.saimm.co.za 


OVERVIEW 

Manufacturing 

KwaZulu-Natal makes aluminium, steel, chemicals, vehicles and footwear. 


Hulamin spent nearly a billion 

rand on expanding capacity. 

• Marine manufacturing is 

set to grow. 

• Ladysmith-based Canvas 

and Tent were Exporters 

of the Year in 2014/15. 

• Samsung is building a 

television factory. 

The estimated export value of KwaZulu-Natal business in 

2014 was R112.4-billion, according to the MEC of Economic 

Development, Tourism and Environmental Affairs, Michael 

Mabuyakhulu. The sector contributes 16.5% to the provincial 

gross domestic product (GDP). 

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

mineral products such as ores, vehicles and chemical products. 

Manufacturing contributes 21.5% of the gross regional product 

(GRP). 

An area of anticipated growth and a focus of policy interventions 

is in the marine manufacturing sector. Sectors such as oil and gas, 

ship-building and rig repair are being targeted. 

In 2015 the Richards Bay Industrial Development Zone (RBIDZ) 

welcomed SPS Manufacturing (Pty) Ltd, a pipe manufacturer which 

will invest R300-million in uMhlathuze, in so doing creating 87 permanent 

jobs. 

Investment agency Trade and Investment KwaZulu-Natal brokered 

R1.7-billion in new investment in the province in 2014/15, much of it in 

the manufacturing sector, and the Services SETA set aside R41-million to 

encourage young entrepreneurs 

to make things. 

Samsung Electronics South 

Africa is spending $20-million on 

a television manufacturing plant 

in the Dube TradePort. 

Hulamin is a leader in the sophisticated 

aluminium finishedproduct 

sector. The company 

makes rolled products at Edendale, 

Pietermaritzburg and at Camps 

Drift, while its Pietermaritzburg 

facility for making extrusions is 

one of three in the country. The 

company's expenditure of R970- 

million has expanded its rolledproducts 

capacity. 

The KwaZulu-Natal Clothing 

and Textile Cluster is upbeat 

about the sector in the province 

because of the support 

of the national Department of 

Trade and Industry’s Competitive 

Improvement Programme (CTCIP). 

The Textile and Clothing Unit 

within the Industrial Development 


80

OVERVIEW 

Corporation (IDC) has been very 

active in the province. 

Canvas and Tent 

Manufacturing (Pty) Ltd has 

more than 400 employees in 

Ladysmith and won the title of 

Exporter of the Year in 2014/15. 

There are 219 clothing companies 

in the province (Coface). 

Ninian & Lester is one of the 

larger employers in the textile 

sector, with 1 500 people making 

clothing (including the 

Jockey brand), textiles and polypropylene. 

The footwear sector is showing 

good recovery after taking a 

battering from Chinese imports. 

The purchase of 39% of Eddels 

Shoes by management and 

staff has paid off, with 385 staff 

now employed in making 2 700 

leather shoes on a daily basis. 

Two international safety 

footwear firms operate out of 

Pinetown: Bata Industrial and 

Beier. The latter company joined 

forces with three other South 

African safety footwear manufacturers 

in 2014 to form the 

BBF Safety Group, in the process 

making them more competitive. 

Carpet manufacturers 

Belgotex Floorcoverings and 

Ulster Carpets have facilities in 

Pietermaritzburg and Durban 

respectively. 

Turkish group Arçelik purchased 

home appliance manufacturer 

Defy in 2011 for R2.5- 

billion. Defy employs about 

2 600 people. 

Companies like Böhler 

Uddeholm in Pinetown produce 

downstream products such as 

tooling materials and welding 

consumables. 

Sustainable manufacturing 

Hulamin has been recycling its own scrap aluminium for the past 75 

years. It has always been of great importance to Hulamin to ensure 

that the community they are in is taken care of sustainably. The environment 

has always been of great importance to the way Hulamin 

runs its business 

In the period between 2013-2014 aluminium demand peaked, 

increasing their market share growth. Their revenue went from 

R7 560 000 in 2013 to R8 039 000 in 2014. Hulamin took this as an 

opportunity to expand, thereby launching a recycling operation that 

would save 95% of energy used during primary aluminium production. 

In 2015 the company secured a five-year R270m loan from Nedbank 

for its new recycling plant. The company’s goal for this recycling plant 

is to quintuple the recycled content of its aluminium to more than 

25% by 2018. 

The recycling facilities will not only be recycling Hulamin scrap 

but also extending to cans, aluminium foil, windowpanes, automotive 

parts and window frames. 

The company being a primary aluminium producer would benefit 

from the consistent recycled supply in the country 


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

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

Manufacturing Circle: www. manufacturingcircle.co.za 

National Department of Trade and Industry: www.thedti.gov.za 


PROFILE 

Hulamin 

We are an independent, mid-stream aluminium semi-fabricator 

and fabricator of aluminium products. Hulamin is committed 

to a future with aluminium. 

Hulamin is situated in South Africa, 

where there are large quantities 

of aluminium products, much of 

which is exported at little added 

value. 

Hulamin creates value for its 

stakeholders through meeting 

customers’ needs for high-value 

aluminium semi-fabricated 

products. In doing so, it brings 

economic activity to the province 

of KwaZulu-Natal, stimulating 

business activities, creating 

employment and contributing to 

the upliftment of the region. 

We remain committed to grow 

aluminium usage in South Africa 

through our role as both supplier 

and customer, in addition to our role as a responsible 

leader in sustainable development in southern Africa. 

Each of our businesses shares a passion for aluminium, 

which is a truly unique metal that offers a superior 

range of benefits and endless application possibilities. 

We have grown and expanded our operations 

over the last 20 years as a result of significant 

investments in order to ensure the future of our 

company and to promote the supply and use 

of aluminium. As South Africa underwent the 

transition to a democracy and the world markets 

opened up in the 1990s, we committed ourselves 

to unprecedented transformation. This included a 

R2.4-billion expansion project in 1996 that improved 

manufacturing processes and enabled us to invest 

heavily in production, facilities and equipment. The 

ambitious expansion unleashed enormous potential 

at the company and, by the year 2000, turnover 

had doubled. Rolled products 

today contribute the bulk of 

the company’s turnover. 

In 2006, we expanded our rolled 

products capacity as a result of 

a R940-million investment that 

increased production capacity 

and improved the company’s 

ability to deliver higher value 

products. This expansion 

increased our rolled products 

capacity by 25%, increasing 

its competitiveness, especially 

in the foil and plate product 

markets. 

The recent investment of 

the recycling plant followed 

a conversion of the local 

beverage can market from steel to aluminium in 

2013. The R300-million state-of-the art facility was 

built to recycle used aluminium beverage cans. The 

expansion sees us providing aluminium can body 

stock for the manufacture of all-aluminium beverage 

cans to the local market. 

In 2015 we ensured our future as a leading player in 

the aluminium industry when we became a strategic 

partner with Bingelela Capital, a BEE entity in Isizinda 

Aluminium to acquire and operate the Bayside 

casthouse located in Richards Bay. 

As we look back to our 76 years of contributing to both 

community building and economic activity in South 

Africa, we also continue to explore new opportunities 

and partnerships to the benefit of all our stakeholders. 

Think Future. Think Aluminium. Think Hulamin. 


82

OVERVIEW 

Automotive 

Bell Equipment and Toyota anchor a strong automotive sector. 

Toyota, which has a large factory in Durban south, sold 22.4% of 

the vehicles sold in South Africa in 2015, thus taking numberone 

spot. The company is also responsible for about onequarter 

of the vehicles exported by South Africa. 

In the month of January 2016, Toyota sold 2 773 Hiluxes, having 

been the country's best-selling vehicle in 2015. In November 2015 a 

record was broken when 3 938 units were sold. The Corolla car, the 

Hilux bakkie and the Fortuner SUV are manufactured at the company’s 

large Prospecton plant south of Durban. 

KwaZulu-Natal's other automotive giant is Bell Equipment. Between 

the Toyota plant at Prospecton and the Richards Bay facility of heavyequipment 

manufacturer Bell Equipment, upwards of 11 000 people 

are employed: both companies are market leaders. The sector accounts 

for 17.7% of the province's export basket. 

Despite tough global conditions, Bell managed to turn a record 

profit in 2015, largely due to cost-cutting and the depreciation of the 

rand. Bell has a global footprint, with South African sales accounting 

for about 40% of group revenue (43% in 2014; 41% in 2015). 

The province also has a substantial and varied automotive-supply 

sector. Trade and Investment KwaZulu-Natal (TIKZN) estimates that 


The weakening rand has 

helped exports. 

• Bell Equipment recorded 

a record after-tax profit 

in 2015. 

• The automotive sector 

contributes 17% to 

provincial exports. 

the province's component automotive 

manufacturers enjoy a 

combined turnover approaching 

R10-billion. 

Powerstar trucks are assembled 

in Pietermaritzburg on a site 

formerly used by Super Group. 

China North Vehicle Corporation 

(Norinco Motors) and BEIBEN 


84

OVERVIEW 

produce about 60 000 heavyduty 

commercial duty vehicles 

every year at their plant in Inner 

Mongolia and the Powerstar 

brand has already been shown 

at the Johannesburg Motor Show. 

Two other global truck 

marques have assembly plants 

in the province: Volvo in Durban, 

and MAN Truck and Bus South 

Africa in Pinetown. MAN’s assembly 

plant makes front-engine bus 

chassis. The company is a major 

supplier of buses to the South 

African market and includes 

Volkswagen buses and trucks 

among its products. 

Keeping MAN and Toyota 

supplied is the R300-million operation, 

Duys Engineering Group. This diverse group of companies 

includes in its brief the supply of truck bodies and truck components 

and has production plants at New Germany (Pinetown) and Richards 

Bay. Toyota Boshoku manufactures seats and does the interior trim 

on contract for Toyota. 

International manufacturer GUD Filters has a large presence in the 

province. Indian-owned Apollo Tyres SA makes Dunlop products at two 

large factories in the province. The Behr Group makes air-conditioning 

and cooling systems in Durban. Ramsay Engineering supplies cross-car 

beams for BMW and Ford. 


Automotive Industry Export Council: www.aiec.co.za 

National Association of Automotive Component and Allied 

Manufacturers (NAACAM): www.naacam.co.za 

National Association of Automobile Manufacturers of South 

Africa (NAAMSA): www.naamsa.co.za 


OVERVIEW 

Water 

New dams and pipelines are under construction in KwaZulu-Natal. 

South Africa is a water-scarce country and in early 2016 the 

drought in most parts of the country had reached serious 

proportions. 

This problem is made worse by the fact that a lot of water 

is lost through leaky pipes and inefficient metering. According to Water 

Wheel magazine (December 2014), 37% of water delivered to the nation's 

municipalities is lost. This challenge presents an opportunity for 

companies who could solve the problems, for example by providing 

better pipes, connections and smart metering. 

In September 2015 the city of Durban lost more than 40% of its water, 

despite water restrictions being imposed in the northern parts of the city. 

The Mercury reported that the losses amounted to R602.6-million per year. 

A related problem concerns a shortage of engineers, with the national 

Department of Water and Sanitation importing Cuban engineers to assist 

in the short term. A local solution was put in place in September 2015 

when the first group of young people started training to become Water 

Agents, Plumbers and Artisans. The goal for the first phase is to train 

15 000 young people. 

Umgeni Water, the province’s biggest water utility, has launched the 

Adopt-a-River Project, which aims to keep rivers clean, raise awareness 

and create jobs. On the Ncandu River that runs through Newcastle, 49 

people received training in various skills such as first aid, herbicide application 

and alien plant identification. One person received a bursary 

from the national department to study at the University of KwaZulu-Natal. 

Purification, desalination, water-leakage management and wastewater 

treatment are some of the issues facing South Africans, and experienced 

international companies are showing an interest in the country. American 

companies with a presence in South Africa include the Hach Corporation, 

Harvard Corporation, Nalco and the Adel Wiggins Group. 

In 2015 the Danish government signed an agreement to help the 

South African government with water management and water efficiency. 

Companies such as smart-meter specialists Kamstrup are already active 

in the country. 

Infrastructure 

The first phase of the Spring Grove Dam in the Mooi River area has 

been completed on schedule and has increased water supplies in the 

Umgeni River catchment area. 


The Tugela Bulk Water 

Scheme will supply water to 

the North Coast. 

• Phase One of the Spring 

Grove Dam is complete. 

• Smart metering could 

reduce the huge water 

losses being experienced 

by municipalities. 

• Umgeni Water has 

launched the Adopt-a- 

River Project. 

Spring Grove takes to five 

the number of dams in the 

Mooi-Mgeni system (including 

the Midmar, Albert Falls, Nagle 

and Inanda dams), which serve 

more than five-million people 

in Durban, Pietermaritzburg and 

their surrounding towns. When 

Spring Grove is complete, the 

total system yield will rise to 

394-million m 3 /year. 

A new dam is being built at 

Smithfield and the wall of the 

Hazelmere Dam is being raised to 

increase capacity. Unfortunately, 

levels in 2015 and 2016 dropped 

to alarming levels in the latter 

dam, but the larger dam will be 

necessary when the rains come 

again. 

Construction of the new 

Waterloo reservoir near the 

King Shaka International Airport 

(and serving this northern area) 

was completed in late 2011. 


86

The master plan will see water 

delivered to this reservoir 

from the Northern Aqueduct 

Augmentation Project. 

The Western Aqueduct project 

(valued at R864-million) and the 

associated Northern Aqueduct 

Augmentation Project will inject 

water into the rapidly developing 

area north of Durban. 

The Tugela Bulk Water Scheme 

(valued at R1.4-billion) will supply 

water to KwaZulu-Natal's North 

Coast. Water flows are expected 

to begin in the middle of 2016 in 

this nationally funded project. 

The eThekwini Municipality 

is spending R600-million on 

water and sanitation in 317 informal 

settlements. 

The provincial government 

committed R872-million to water 

infrastructure projects for the 

2015/16 financial year. This money 

was allocated from the Municipal 

Infrastructure Grant. 

Water boards 

Talks have begun to rationalise 

the province's water boards into 

one body. The aim is to achieve 

economies of scale and efficiency 

and to make it easier to raise funds 

for large projects. 

Umgeni Water currently supplies 

more than 400-million 

cubic metres of potable water 

to its six large municipal customers: 

eThekwini Metropolitan 

Municipality, iLembe District 

Municipality, Sisonke District 

Municipality, Umgungundlovu 

District Municipality, Ugu District 

Municipality and Msunduzi Local 

Municipality. 

Construction of the Spring Grove Dam. 

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

plants and two wastewater works. 

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

Mhlathuze Water, which has built inter-basin transfer schemes, watertreatment 

plants and sewerage plants which it operates on behalf of 

local municipalities. The utility has assets valued at more than R3-billion 

and its area of supply covers 37 000 square kilometres. 

The Bill & Melinda Gates Foundation has made a difference in the 

lives of 200 households in the uThungulu District by making clean 

water available. This project was facilitated by Trade and Investment 


Another project in this district is the extension of the Sundumbili 

water-treatment works. This plant treats water from the Tugela River. 

Engineering and environmental consultancy Royal HaskoningDHV is 

leading the R17-million project. 

Nedbank is putting R9-million over five years into clearing alien 

vegetation in the country's water-catchment areas, including in 

KwaZulu-Natal. The Nedbank sponsorship of the WWF's Water Balance 

Programme has seen water flowing more freely in the Umgeni catchment 

area. 

The WWF Nedbank Green Trust is one of the major sponsors behind 

the Dusi uMnengi Conservation Trust, which works for the environmental 

health of the uMngeni and uMsunduzi Rivers. A Green Corridor 

initiative is one of the projects. The Dusi Canoe Marathon is a major 

income-generator, but if the river is clogged up and dirty then that 

income becomes threatened. 


Duzi uMngeni Conservation Trust: www.duct.org.za 

Mhlathuze Water: www.mhlathuze.co.za 

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

Umgeni Water: www.umgeni.co.za 

Water Balance Programme: www.wwf.org.za 

Water Institute of Southern Africa: www.ewisa.org.za 

Water Research Commission: www.wrc.org.za 


OVERVIEW 

Renewable energy 

Bio-mass is leading the way in KwaZulu-Natal. 


Richards Bay is set to be a 

renewable energy hub. 

• St Lucia may get a wind 

farm. 

• Sugar cane is a good crop 

for feedstock for bio fuel. 

Massive wind farm projects are planned for St Lucia. 

South Africa has embarked on a very successful campaign to 

get private companies to provide power to the national grid 

using renewable resources such as wind, the sun and water 

power. KwaZulu-Natal has so far received only one of these 

licences, and is determined to catch up. 

Since 2011 dozens of projects, particularly solar and onshore wind 

projects, have been approved, adding more than 5 000MW to the potential 

of the national grid and bringing in investment worth more than 

R150-billion. 

The only project approved in KwaZulu-Natal as part of the Renewable 

Energy Independent Power Producer Programme (REIPPP) is a 16.5-megawatt 

(MW) bio-mass project which is to be built on the North Coast of 


The huge forestry, timber, paper and pulp industries of the province 

carry with them the potential to provide feedstock for the renewable 

energy sector. 

Forestry waste, sugar cane and agricultural waste will provide the 

feedstock for a R2-billion facility that will largely supply the tenants of 

the Richards Bay Industrial Development Zone (RBIDZ) with power. The 

company Byromate, which has wind and solar projects elsewhere in 

South Africa, expects to start delivering power in 2018. 

The provincial government wants to see the RBIDZ become a hub for 

renewable energy, and this bio-mass project is expected to be just the 

first of many in solar power, wind and other types of renewable energy. 

KwaZulu-Natal's most prevalent crops, sugar cane and sugar beet, 

are among the most efficient and cost-effective feedstock for the 

creation of biofuel. A R1.8-billion 

project is planned for the northern 

area of Makhathini. The Industrial 

Development Corporation (IDC) is 

the major investor in this scheme 

which is intended to produce 

72-million litres of ethanol and 34 

megawatts of electricity. 

Sugar grower and producer 

Tongaat-Hulett believes that the 

national sugar industry could 

generate between 700MW and 

900MW. 

An entrepreneur in the 

Midlands makes biodiesel from 

used oil. Darryl Melrose's company, 

Bio Diesel SA, produces 20 000 

litres of diesel every month. 

Although it is not part of the 

REIPPP, one of the country's biggest 

RE projects is in fact in KwaZulu- 

Natal: the Ingula pumped-storage 

scheme in the northern reaches 

of the province will generate 

1 332MW when the R16.6-billion 

facility is fully operational. This is 

a 'peak' power station that only 

comes into operation demand 

peaks: water is pumped to the upper 

reservoirs before it is released 

to create power as it falls to the 


88

lower level. New transmission 

power lines from Mpumalanga 

are also being built, and the 

national Department of Energy 

is investing in an open-cycle gas 

turbine plant. 

Cogeneration 

Cogeneration (combining heat 

and power) is gaining in popularity, 

especially in the sugar-milling 

industry. 

Calcium carbide producer 

SA Calcium Carbide opened 

its R115-million plant in March 

2013, with the help of the Green 

Industries Strategic Business Unit 

of the Industrial Development 

Corporation. The plant will generate 

8MW and reduce by 20% 

SACC’s dependence on the national 

grid. 

Zest WEG Group is targeting 

the cogeneration sector in the 

province because of the company's 

special skills in this area, 

acquired when WEG bought Zest 

in 2010. WEG has been very active 

in Brazil in turning pulp, paper 

and sugar into fuel. 

Solar 

The growing popularity of solar 

water heaters has encouraged 

Durban manufacturer Solar Beam 

to spend R2.5-million on expanding 

its premises. 

A Solar Energy Institute is to 

be established in the province, 

a joint initiative between the 

University of KwaZulu-Natal and 

the Georgia Technology Institute 

of the USA. 

Wind 

OVERVIEW 

The Provincial Planning Commission is investigating wind channels and 

sunlight intensity levels in KwaZulu-Natal, and 37 turbines are proposed 

for a wind farm to be run by St Lucia Wind Farms Ltd near Hluhluwe. 

The Premier's office calculates this will carry an investment value of 

R150-million and has the potential for creating 100 jobs. 

Biomass 

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. 

The eThekwini Municipality is spending R140-million on a plant 

that will convert methane gas from its major landfill sites. Lanele 

Resources and Amatala Resources have plans to produce fuel from 

municipal waste. 

Sea power 

A unique project is planned for the sea off the coast of Durban. Floridabased 

Hydro Alternative Energy Inc (HAE) believes that its Oceanus (TM) 

system will allow it to harness the power of the strong Agulhas current 

that runs along the KwaZulu-Natal coast. Previous sea-power systems 

have sought to use the power of tides. The R155-million project, which 

must still pass the scrutiny of environmental studies, has the support 

of Durban Investment Promotion and private companies. 


Eskom: www.eskom.co.za 

KZN Energy: www.kznenergy.org.za 

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

Southern African Bioenergy Association: www.saba.za.org 

Southern African Solar Thermal and Electricity Association: 

www.sastela.org/index.html 

South African Wind Energy Association: www.sawea.org.za 

Sustainable Energy Africa: www.sustainable.org.za 

Sustainable Energy Research Group: www.mecheng.ukzn.ac.za 

Sustainable Energy Society of Southern Africa: 

www.sessa.org.za 


OVERVIEW 

Banking and financial services 

Merchant banking is very competitive in KwaZulu-Natal. 

Together with real estate and general business, the financial 

sector in KwaZulu-Natal accounts for 18% of gross domestic 

product (GDP). With the renewable energy sector being 

actively pursued in KwaZulu-Natal, the creation by Investec 

and the European Investment Bank of a renewable-energy fund of 

€100-million will create many options for investors. 

The four major national retail banks (Absa, Standard Bank, First 

National Bank and Nedbank) are well represented in KwaZulu-Natal, 

while relative newcomer Capitec Bank has shown remarkable growth 

with its low-cost offerings: a cheque account, a savings account and 

an unsecured loan. 

Capitec was established in 2001 and listed on the JSE in 2002. As 

of August 2015, Capitec had 691 branches, a rapid increase over the 

benchmark figure of 500 that was achieved in January 2012. With 133 

branches in KwaZulu-Natal, and in the context of other banks closing 

down some rural branches, this is a banking business that is clearly on 

the move. Capitec customers can also draw cash in retail stores such 

as Pick n Pay, Boxer and Shoprite. 

In 2015 the bank had 6.7-million clients, up from 3.7-million just 

three years earlier. Capitec has 11 000 employees. 


€100-million is available to 

renewable energy investors. 

• Capitec now has 133 

branches in KwaZulu- 

Natal. 

• Old Mutual has announced 

plans to separate its four 

divisions. 

In the retail banking sector, 

despite really tough economic 

conditions in recent months 

and years, South Africa's Big 

Four (Standard Bank, Absa, First 

National Bank and Nedbank) 

increased headline earnings by 

12.5% to R33.8-billion in the second 

six months of 2015. Profits 


90

OVERVIEW 

across the Big Four totalled R73.8- 

billion for the year, according to a 

survey done by PWC (Major Banks 

Analysis). 

Some of the figures published 

reflect the strain that consumers 

are feeling: credit impairments 

went up by 10.8% and nonperforming 

loans also grew. 

Competition is stiff in developing 

new strategies to incorporate 

the emerging second economy 

and the largely rural 'unbanked' 

communities. These new banking 

means and methods are developing 

the sector and giving it new 

flexibility, diversity and range. 

alBaraka Bank has its headquarters 

at Kingsmead in Durban, 

which is also the site of its corporate-banking 

division. HBZ Bank, 

a wholly owned subsidiary of 

Habib Bank and AG Zurich, operates 

an Islamic branch in Westville 

and has branches in Durban and 

Pietermaritzburg. 

In the sector catering to highnet-worth 

individuals, Nedbank 

has adopted a new strategy by 

combining BoE Private Clients 

(South African clients) and 

Fairbairn Private Bank (international 

clients). All of these clients 

are now be served by Nedbank 

Private Wealth. 

Absa's British investor, Barclays, 

has indicated it is aiming to sell its 

stake in African operations and financial 

services group Old Mutual 

(54% stakeholder in Nedbank) 

and has announced its plan to 

create four stand-alone businesses 

out of the Old Mutual Group. 

This would allow the UK-based 

wealth management business 

and the New York-based asset 

managers to be free of linkages 

to the rand, while the South African businesses (Nedbank and Old 

Mutual Emerging Markets) would be free to focus on their specialities. 

Project funding 

Merchant banking and investment banking are the most competitive 

sectors within banking. In KwaZulu-Natal, banks have been vital 

in getting really big infrastructure projects under way, a trend that is 

set to continue for some time to come, with provincial and national 

government committed to a comprehensive infrastructure upgrade. 

The European Investment Bank has extended a €50m long-term 

loan through Rand Merchant Bank to fund the massive water systems 

upgrade being undertaken by the eThekwini Municipality. The investment 

programme encompasses two new aqueducts and the replacement 

of 1 600km of old asbestos water mains. 

RMB was also involved in several Tongaat-Hulett and Richards Bay 

Coal Terminal projects, two major players in the provincial economy. 

Nedbank Capital supported Seacom’s R240-million undersea-cable 

project, and has signed a three-year funding agreement with healthcare 

group Netcare to the value of R1-billion. 

Absa’s public-sector division holds the provincial government banking 

account. 

The KZN Growth Fund is a project-finance facility supported 

by the KwaZulu-Natal Provincial Government, Standard Bank, the 

Development Bank of Southern Africa and the Infrastructure 

Corporation. The fund is capitalised to the extent of R5-billion. 

New customers, new technology 

Despite the incredible strides that have been made in providing banking 

services to the previously unbanked, there is still a long way to 

go. MasterCard, for example, has pointed out that only 2% of retail 

transactions on the continent of Africa are conducted electronically. 

The consulting firm McKinsey puts the figure for Africa's population 

not connected to formal banking at close to 80%: this presents an opportunity 

for South African banks in Africa. South Africa has the highest 

connection rate in Africa. 

Finscope's 2014 survey of South African banking and financial surveys 

shows that between 2004 and 2014 a remarkable eight-million people 

were connected to the financial system in some way. Overall, the 

'financially included' reached 31.4-million (up from 17.7-million in 2004). 

In a category called 'formally served' which includes services other than 

formal banks with branch networks, the percentage of South Africans so 

served grew from 50% to 80%; in the 'banked' category (more traditional 

but including new devices), the percentage grew from 46% to 75%. 


OVERVIEW 

With cellphone access in that time having grown from 42% to 90%, 

one would expect that to have been the main reason for this growth, 

but that is not the case. James Francis, writing for Brainstorm, points 

out that of the nine-million South Africans who use mobile money, 

only 3% fall in the LSM 1-4 category, ie poorer people. He writes that 

'mobile money in South Africa has been catastrophic'. However, the 

South African banking sector's excellent infrastructure (plus the efforts 

of the Big Four and Capitec to reach out to new markets) has made up 

for this failure. 

Among recent innovations designed to reach the unbanked were 

Teba Bank allowing customers to deposit at supermarkets, Pick n Pay 

Go Banking (a division of Nedbank), 70% of Absa's new ATMs (400 in 

one year) in poorer areas and Absa launched two mobile banks, FNB 

also created mobile branches and most of Standard Bank's new sites 

were planned for townships (Finscope). 


Auditor-General South Africa: www.agsa.co.za 

Banking Association South Africa: www.banking.org.za 

Financial Services Board: www.fsb.co.za 

Insurance South Africa: www.insurance.za.org 

KZN Growth Fund: www.kzngrowthfund.co.za 

Post Bank: www.postbank.co.za 

South African Reserve Bank: www.resbank.co.za 

Absa’s partnership with 

Thumbzup allows shops to accept 

card payments with smartphones 

and tablets. Introduced 

in 2012, the device turns phones 

into terminals. In 2012, Absa took 

over Edcon’s card portfolio, massively 

increasing the bank’s reach 

(Edcon brands include Edgars, 

CNA and Jet). 

Absa’s Entry Level and Inclusive 

Banking (Elib) branches have 

proved popular, accounting for 

an increasingly high percentage 

of the bank’s loans, despite still 

representing quite a small number 

of actual branches. 

In 2012, Nedbank launched 

Approve-it, which allows customers 

to accept or reject an 

Internet transaction by cellphone. 

FNB has a wide range of cellphone-banking 

options and a 

Facebook application whereby 

cellphone vouchers can be posted 

on the social-networking site. 

The eWallet application converts 

the voucher into cash or airtime. 

Standard Bank’s communitybanking 

initiative offers a lowcost 

cellphone-banking service. 

Retailers can act as agents for the 

bank, even in very remote rural 

areas. Shops such as Shoprite, 

Pep and Spar are connected, as 

are certain spazas. 

Another area where banks are 

growing new markets is in affordable 

housing. In the context of a 

large backlog, Standard Bank announced 

that it was setting aside 

R2-billion for the affordable segment. 

The municipality of eThekwini 

has 430 informal settlements, 

accounting for more than 252 000 

households. 


92

Seda Offerings 

Seda branches provide offerings that assist businesses 

in various phases of their life cycle. 

Seda Business Talk – 

Offerings focusing on clients who want information on starting a business 

Assistance Provided: 

• Business Advice and Information 

• Small Enterprise Training 

• Business Registration 

Seda Business Start – 

Provides tools and techniques for clients who are ready to start a business 

and want assistance and direction. 


• Business Planning 

• Business Counseling 

• Facilitation of Access to Finance 

• Business Support 

Seda Business Build – 

Offerings focusing on clients who want skills to sustain and strengthen 

their businesses. 


• Capacity Building Systems 

• Mentorship 

• Tender Advice / Procurement 

• Export Readiness 

• Franchising 

Seda Business Grow – 

Offerings focusing on clients who want to grow their businesses 

and expand nationally and internationally. 

Assistance provided: 

• Business Systems Development 

• Cooperative Support 

• Growth Strategies 

For more information contact us at: 031 2779500 or visit our website: www.seda.org.za 

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT

PROFILE 

Standard Bank, 

KwaZulu-Natal, 

Personal and Business Banking 

Standard Bank KwaZulu-Natal has an extensive footprint throughout the province, 

with particularly effective and innovative Personal and Business Banking divisions. 

Behind the bank 

Standard Bank’s Personal, Business and 

Commercial Banking divisions offer banking and 

other financial services to individual customers 

and businesses ranging from small to large enterprises 

in South Africa, in addition to 20 countries 

in sub-Saharan Africa. 

“We strive to maintain high standards of service 

to our customers,” says Imraan Noorbhai, the 

provincial head of Standard Bank's KwaZulu- 

Natal operations. 

Imraan Noorbhai is supported by an enthusiastic 

leadership team comprising Ian Shibe (Head, 

Retail Banking), Hameed Noormahomed (Head 

Business Banking) and Nathan Govender (Head 

Commercial Banking). 

“Through these dedicated units with specialist 

staff, we offer a range of solutions to our customers 

from the most basic to the most sophisticated 

of financial services. Our aim is to ensure that our 

customer’s requirements are always met through 

the most cost-effective and convenient methods 

we can offer them,” adds Noorbhai. 

Today, Standard Bank Group prides itself on being 

a global bank with African roots. The largest 

African bank by assets and earnings, it operates 

in 20 countries on the African continent, including 

South Africa, as well as in other selected 

emerging markets. The Group’s aim is to grow 

their presence selectively in high potential markets 

in Africa and in other emerging markets, 

either organically or, where appropriate, by 

acquisitions. 


94

PROFILE 

“Standard Bank KwaZulu-Natal’s ‘Every Child Must 

Read’ campaign was launched in Durban in March 

2016, and this represents a typical example of 

the concrete way in which Standard Bank is contributing 

to the societies which they serve. The 

mobile library campaign will bring books to many 

communities and children who need them,” says 

Noorbhai. 

Contact us 

Imraan Noorbhai, 

Provincial Head 


Imraan.Noorbhai@ 

standardbank.co.za 

Hameed Noormahomed, 

Head Business Banking 


Hameed.Noormahomed@ 


“We uphold high standards of corporate governance 

and are committed to advancing the principles 

and practice of sustainable development. 

Our success and growth over the long term is 

built on making a difference in the communities 

in which we operate. We are committed to moving 

Africa forward,” says Noorbhai. 

The Group’s social compact commits them to 

contributing to the socioeconomic development 

of countries in which they operate in a way that 

is consistent with the nature and size of their respective 

operations. This commitment translates 

into providing financial services and products 

responsibly, with due consideration for the needs 

of the society, customers, staff, shareholders and 

the environment, as well as with the thought of 

future generations in mind. 

Ian Shibe, Head Retail 

Banking KwaZulu-Natal 

Ian.Shibe@ 


Nathan Govender, Head 

Commercial Banking 


Nathan.Govender@ 



PROFILE 

Celebrating 153 years of moving 

South Africa forward 

Having put down its roots in the Eastern Cape in 

1862, Standard Bank is one of South Africa's oldest 

companies. When it was established, the vision was 

for a bank that understood its customers better, had 

people with strong knowledge of local business 

conditions and would do a better job of connecting 

borrowers with lenders. This vision created the 

platform for the kind of bank it would become and 

the qualities on which its customers would come to 

rely. Over its history, Standard Bank has grown from 

a mere few staff members to over 48 000 today, at 

the same time extending its roots deep into the 

fabric of South African society. The Group has also 

evolved and adapted along with their customers, in 

the process growing a rich heritage while nurturing 

and protecting their reputation. 

Personal Banking 

Whether you want to transact, save or borrow, 

Standard Bank Personal Banking have the financial 

solution for you, including innovative products 

and services designed to evolve with the changing 

needs of their clients. 

Their transactional banking solutions have been developed 

to meet the individual needs of clients, and 

these come with a range of features and benefits 

designed to add real value to your life. 

Products available include transactional 

accounts, savings, investment 

and lending and mortgage 

loans. Credit cards and vehicle 

financing is also available, while 

short- and long-term insurance 

offerings include home-owners' 

insurance, funeral cover, household 

contents and even loan 

protection. Life cover, disability 

insurance and investment policies 

are provided by qualified 

intermediaries. Standard Bank 

Personal Banking also offer 

financial planning and fiduciary advice and are able 

to provide personalised and qualified assistance 

with personal matters such as will drafting, trust 

and estate administration. 

Private Banking 

Standard Bank Private Banking matches the needs 

of their clients by providing successful and highly 

accomplished individuals with personalised financial 

solutions. Their highly qualified Private Banking team 

will deliver the personal attention you deserve with 

a comprehensive offering that encompasses status 

and priority. For such individuals a full suite of products 

and services are available that enable them to 

access their funds at their convenience, in addition 

to a credit portfolio and a balanced wealth creation 

and preservation portfolio. Products include wealth 

management, investment and advisory services, tailored 

banking as well as specialised solutions for high 

net worth individuals, both onshore and offshore. 

Contact: 

Sidney Reddy 

Sidney.Reddy@standardbank.co.za 

Business Banking 

As South Africa’s leading Business Bank, Standard Bank 

understands what it means to do business in Africa 

and beyond. To provide this reliable service they have 

developed a specialist product expertise in addition 

to strong local capacity and global distribution reach. 


96

PROFILE 

Their Business Banking solutions have been developed 

to meet the business needs of each client and 

they offer a range of products and services designed 

to add real value to every business. These include 

transactional accounts and lending facilities, structured 

working capital finance, commercial property 

finance, merchant transaction solutions, fleet finance, 

insurance and financial planning and fiduciary advice. 

Standard Bank has five Business Banking Suites in 


Contact: 

Southway Suite 

Candice Gerritsen 

Candice.Gerritsen@standardbank.co.za 

Gateway Suite 

Karen Eccles 

Karen.Eccles@standardbank.co.za 

Highway Suite 

Srinivasen Naicker 

Srinivasen.Naicker@standardbank.co.za 

Ukhahlamba Suite 

Lyle Collins 

Lyle.Collins@standardbank.co.za 

Nyakatho Suite 

Mthuthuzeli Makoba 

Mthuthuzeli.Makoba@standardbank.co.za 

Commercial Banking 

Standard Bank is aware of the importance of entrepreneurial 

growth within South Africa, and to 

support this growing economic 

phenomenon they create and 

deliver value to their entrepreneurial 

clients by providing 

them with the financial and 

non-financial solutions they 

need that offer support and 

growth opportunities for their 

clients’ businesses, whether they 

are located within South Africa 

or beyond our borders. Foreign 

exchange falls within the ambit 

of this section, as does liquidity 

management, trade, investment 

and payment solutions through a variety of 

transactional products. 

Standard Bank offers lending within the Commercial 

Banking section ranging from working capital required 

to borrowing to acquire commercial property 

and finance fleets. Merchant services are also offered 

to commercial enterprises, and a full suite of insurance 

products – ranging from simple and complex product 

offerings – is available from the Group’s specialist staff. 

Contact: 

Head Commercial Banking 

Nathan Govender, 

Nathan.Govender@standardbank.co.za 

Financial Consultancy 

Louise Nel 

Louise.Nel@standardbank.co.za 

Vehicle & Asset Finance 

Shaun Wood 

Shaun.Wood@standardbank.co.za 

Sales & Service 

Nicky Thompson 

Nicky.Thompson@standardbank.co.za 

Agriculture 

Sarah van der Merwe 

Sarah.Vandermerwe@standardbank.co.za 

Public Sector 

Nelisiwe Mkhize 

Nelisiwe.Mkhize@standardbank.co.za 

Website: www.standardbank.co.za 

Facebook: Facebook.com/StandardBankSA 

Twitter: Twitter.com/askSBSA 


PROFILE 

Generation 8 – creating human, simple and honest experiences. 

The Standard Bank Group has international representation 

in Angola, Botswana, Brazil, China (including 

Hong Kong), Democratic Republic of Congo, Ghana, 

Isle of Man, Ivory Coast, Japan, Jersey, Kenya, Lesotho, 

Malawi, Mauritius, Mozambique, Namibia, Nigeria, 

Singapore, South Africa, South Sudan, Swaziland, 

Taiwan, Tanzania, Uganda, United Arab Emirates, 

United Kingdom, United States of America, Zambia 

and Zimbabwe. 

Small and medium enterprises 

Standard Bank is committed to being the bank that 

partners with clients in order to help them to realise 

their entrepreneurial dreams, whether you have just 

started your own business, want to manage your 

business more effectively or even want to take your 

business to the next level. 

Dedicated business bankers instore at individual 

branches are supported by specialists whose mission 

it is to ensure that you get the best banking 

services available. These specialist bankers are 

equipped to answer any questions you have and 

will also be able to assist in setting up accounts and 

arranging finance for all your small business needs. 

Contact: 

Allan Ambrose 

Allan.Ambrose@standardbank.co.za 

Standard Bank has six regions in KwaZulu- 

Natal where qualified specialists are on 

hand to advise SMME customers: 

Moving forward 

also means giving back. 

Chatsworth/Port Shepstone/Pinetown 

Region 

Jean Hattingh 

Jean.Hattingh@standardbank.co.za 

Pietermaritzburg Region 

Sibusiso Majola 

Sibusiso.Majola@standardbank.co.za 

Newcastle Region 

Marlon Reddy 

Marlon.Reddy@standardbank.co.za 

Kingsmead/Westville Region 

Rajan Govender 

Rajan.Govender@standardbank.co.za 

Umhlanga/Phoenix Region 

Garrett Johnson 

Garrett.Johnson@standardbank.co.za 

Richards Bay Region 

Rogers Blose 

Rogers.Blose@standardbank.co.za 

Moving Forward 


98

OPERATING ENVIRONMENT: THE WORLD AND 

SUB-SAHARAN AFRICA 

In 2015 global economic growth remained moderate 

at 3.1%, and the International Monetary 

Fund anticipates that growth in emerging markets 

and developing economies will decline for 

the fifth consecutive year. A modest recovery 

has continued in advanced economies, with 

a gradual monetary tightening in the United 

States as several other major advanced economy 

central banks continue to ease monetary policy. 

Market concerns regarding the outlook for the 

Chinese economy have affected other economies 

through commodity prices, diminishing 

confidence and increasing volatility in financial 

markets. Manufacturing activity and trade remained 

weak globally, not only due to developments 

in China, but also because of subdued 

global demand and investment. 

Sub-Saharan Africa’s economic growth is 

estimated to have reduced sharply to 3.5% in 

2015 from 5.0% in 2014 as lower commodity 

prices have impacted on net exports, in the process 

placing pressure on economic activity even 

though lower oil prices have eased energy import 

costs. While economic activity remains more 

PROFILE 

robust than in many other developing regions 

of the world, the strong growth momentum 

evident in the region in recent years has not been 

maintained, particularly within oil-exporting 

countries. 

The 2015 economic growth forecasts for 

South Africa were marked down progressively 

during the year as the full impact of commodity 

price deflation and weakening business and 

consumer confidence limited demand. Although 

there was notable stabilisation of electricity 

supply in the second half of 2015, unfolding 

drought conditions, higher interest rates and 

policy uncertainty subdued investment and 

cyclical consumption; economic growth is expected 

to have been 1.3% in 2015, down from 

1.5% in 2014. A sharply weaker exchange rate (in 

response to investment portfolio outflows) and 

a continued current account deficit accompanied 

a broad acceleration in market volatility towards 

the end of the year. This was exacerbated 

by market concerns related to the unexpected 

removal of South Africa’s Minister of Finance 

in December. 


PROFILE 

Excellence and caring – 

a successful combination 

Standard Bank wins major awards and puts literacy on the front foot in KwaZulu-Natal. 

The recent award of best "Professional Services'" to 

Standard Bank by the Durban Chamber of Commerce 

and Industry (DCCI) came on top of a hat-full of awards 

which the banking group won in the Banker Africa 

awards in early 2016. 

For the children of six schools in areas where Standard 

Bank KwaZulu-Natal has provided mobile libraries, 

Standard Bank is a certified winner as a corporate citizen 

which cares for the communities in which it operates. 

The launch of the Standard Bank “Every Child Must 

Read” campaign was held at the bank’s regional office 

in the Kingsmead Office Park on 29 March 2016, 

with the Deputy Minister of the Department of Basic 

Education, Mr Enver Surty, in attendance. 

The project provides mobile libraries to six deserving 

schools located in the vicinity of the bank's major 

branches in KwaZulu-Natal. These areas are Newcastle, 

Pietermaritzburg, Richards Bay, Durban/Westville, 

Phoenix/Umhlanga and Chatsworth/Pinetown. 

The provincial head of Standard Bank KwaZulu-Natal, 

Mr Imraan Noorbhai, spoke at the launch, where he 

made the link between education and prosperity. “A 

literate, educated society is a safer, healthier and more 

prosperous society. So by promoting reading, writing, 

and other academic subjects it will lead the way in promoting 

prosperity through knowledge,” said Noorbhai. 

“It is envisaged that the introduction of these mobile 

libraries to the six previously disadvantaged schools 

will go a long way towards improving the literacy rate 

in our province.” 

Deputy Minister Surty praised Standard Bank for this 

initiative and urged all South Africans to come on board 

with support. 

Deputy Minister of the Department of Basic Education 

Mr Enver Surty, Ahmed Motala Chief Executive 

Officer of NAEF (New Africa Education Foundation) 

and Imraan Noorbhai. 

A mobile library from the Every Child Must Read project. 


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PROFILE 

“We need to give books as gifts, we need to read to 

our children and get them to read to us. This cannot be 

done in schools alone we need to read in our homes 

as well,” said Minister Surty. 

Winners in KZN 

At its annual awards ceremony, the Durban Chamber 

of Commerce and Industry chose Standard Bank KZN 

as the best business in the "Professional Services" sector. 

This includes financial services and banking and 

investment, but the category is a broad one, and the 

bank was also competing against businesses from the 

professional services, automotive, travel and transport, 

skills and development sectors. 

region's people, businesses and economies. They also 

reflect the core philosophy of the magazine's publisher, 

CPI Financial, of identifying and promoting excellence 

and best practice in financial services. 

"In such a competitive market such as Southern Africa, 

and with the recent economic climate across several 

countries in the region, their performance stands 

out," says Robin Amiot, Chief Executive Officer: CPI 

International. 

Mr Muhammad Seedat, the vice-president in charge 

of finance at the DCCI, said that celebrating business 

and its efforts in driving the economy was a highlight 

of the organisation's 160th annual gala dinner. Seedat, 

who headed the judging panel, said that innovation 

and the ability to adapt to change while staying ahead 

of competitors were the most important elements in 

choosing the winners. 

Winners in Africa 

After more than 3 500 votes were cast across 29 categories 

by the readers of the CPI Financial magazine 

and registered users of the financial news website 

www.cpifinancial.net, Standard Bank came out as a 

mulitiple winner in the Banker Africa Southern Africa 

awards. All 29 award winners were chosen from more 

than 120 nominations across all the categories by their 

peers in the industry. 

Standard Bank took the headline category of Best 

Regional Bank for Southern Africa as well as the 

prominent recognition of Best Retail Bank in the region, 

while Standard Bank's Corporate and Investment 

Banking (CIB) arm was voted Best Investment Bank for 

the region. 

The Banker Africa Southern Africa Awards, now in their 

fourth year, are designed to reward excellence in financial 

services, identifying the key players working to 

help create a prosperous, diversified future for all of the 

Imraan Noorbhai, with the Business Excellence 

Awards 2016 trophy, which Standard Bank won 

in the "Professional Services" category. 


OVERVIEW 

Development finance and 

SMME support 

Funds are available for entrepreneurs in KwaZulu-Natal. 

A 

mainstay of funding for small and medium enterprises 

in KwaZulu-Natal is the provincial government's Ithala 

Development Finance Corporation (Ithala). A total of 114 new 

enterprises received R276-million to help them get started in 

the 2014/15 financial year. 

The fund could claim the creation of 880 jobs on various projects, 

two of the biggest of which were the Ithala Trade Centre and the Mount 

Edgecombe Light Industrial Park. The former is designed as a 'one-stopshop' 

for all matters relating to the provincial Department of Economic 

Development, Tourism and Environmental Affairs (under which Ithala 

falls). The Light Industrial Park aims to integrate township businesses 

with 'upmarket' enterprises, especially with regard to supply chains. 

An amount of R61-million was set aside to create the infrastructure for 

the park. 

As a way of boosting township and rural communities, district warehousing 

facilities are being built using municipal and Ithala properties 

around the province. Small farmers and traders often struggle with 

storage so this solution will go a long way to assisting them to buy in 

bulk and, consequently, get some discounts on their purchases. The 

Small Business Growth Enterprise (SBGE) will run a pilot project which 

will also contain a bulk-buying component, thereby further assisting 

small enterprises. 

Another initiative aims to get small traders organised through the 

setting of a provincial small traders' association. 

Other provincial government initiatives promoting small business 

include the creation of the KZN Fashion Council (to support designers), 

the KwaZulu-Natal Furniture Initiative (aimed at 200 businesses) 

and industrial parks that will provide hubs for automotive supply and 

chemical enterprises. 

An active national agency in supporting entrepreneurs is the Small 

Enterprise Development Agency (Seda). Seda gives non-financial support 

through training, assistance with filling in forms, marketing and 

creating business plans. 

In KwaZulu-Natal, Seda runs 12 incubators which either help new 

businesses get started or assist with the rehabilitation of existing enterprises. 

Three models are used: Technology Demonstration Centres 

(demonstration and training); Technology Incubators (where the focus 

is rehabilitation); and Hybrid Centres, which combine elements of the 

other two models. The incubators in KwaZulu-Natal include ICT and 


The KZN Growth Fund has 

to date disbursed over halfa-billion 

rand. 

• Absa's SME fund finances 

projects from R5 000 to 

R3-million. 

• Seda has 12 Incubators in 


• Joint warehousing facilities 

are being offered to 

small traders. 

construction (three centres each), 

furniture and hi-tech (two each) 

and chemicals, and essential oils. 

Although Seda is not a financial 

institution in itself, in 2013/14 

it helped 1 379 small businesses 


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OVERVIEW 

get work from government to the 

value of R33.9-million. The agency 

served more than 10 000 enterprises 

in the same period, most 

of which increased their turnover 

and employment numbers. The 

incubation programme worked 

with 1 587 businesses and created 

nearly 3 000 jobs. 

Research by Absa shows that 

SMMEs were supporting 60% of 

the country’s employable population 

in 2011, against a figure of just 

18% in 1998. The 2012 Absa SME 

Index noted that of the country's 

700 000 businesses, only 270 000 

employ more than five staff members. 

The average number of people 

employed is 11. 

Larger projects 

The KZN Growth Fund will end 

its mandate in August 2016: this 

project-finance debt fund of 

R787.5-million was underwritten 

by the Development Bank of 

South Africa, Standard Bank and 

the KZN Department of Economic 

Development, Tourism and 

Environmental Affairs. 

In funding large private projects, 

the expectation was (and 

is) that smaller suppliers down 

the value chain will also benefit. 

Among the Growth Fund's most 

recent projects to be funded are: 

• SA Shipyards expansion, 

R42.8-million (150 jobs) 

• Dark Fibre Africa telecoms cabling 

installation, R193-million 

(4 201 jobs) 

• Link Africa telecoms, R65- 

million (500 jobs) 

• Mpact plant expansion, 

R200-million (1 760 jobs). 

National government has created a new agency to spur the development 

of SMMEs, the Small Enterprise Finance Agency (Sefa), 

which falls under the Industrial Development Corporation, one of the 

biggest and most significant agencies in economic development in 

the country. 

The IDC provides finance across a range of sectors from agriculture 

to tourism. It has holdings in several companies with a presence in 

KwaZulu-Natal: 42.6% in Hans Merensky (Pty) Ltd, a plantation and 

timber mill operator; 100% in Prilla 2000, a cotton-milling operation; 

and 85% in Foskor, which has a phosphoric acid plant in Richards Bay. 

The IDC also funds local development agencies such as the Hibiscus 

Coast Development Agency. 

The IDC will spend R102-billion to 2016, of which R22.4-billion has 

been set aside for 'green economy' initiatives and a total of R20.8-billion 

for manufacturing support. 

All of the major banks have SMME offerings. Absa Bank’s SME Fund 

is driven by its Small Business Division and the Enterprise Development 

unit. Absa's SME fund is available to fund projects from R5 000 to 

R3-million, and it can be given to start-ups or existing businesses. 

The target market is black-owned businesses which don't have access 

to normal lending or banking channels. The Absa Development 

Credit Fund, a partnership with the United States Development Credit 

Authority, is another avenue for entrepreneurs. 

Standard Bank’s Community Investment Fund (CIF) initiative 

extends loans to informal businesses. The CIF has distributed more 

than R7-million to more than 630 businesses through its six funds in 

three provinces. 

Nedbank has an enterprise-development product that supports 

businesses with a turnover up to R35-million with at least 25% 

black ownership. 


Business Partners: www.businesspartners.co.za 

Development Bank of Southern Africa: www.dbsa.org 

Industrial Development Corporation: www.idc.co.za 

Ithala Development Finance Corporation: www.ithala.co.za 

KZN Growth Fund: www.kzngrowthfund.co.za 

KwaZulu-Natal Department of Economic Development and 

Tourism: www.kznded.gov.za 

National Department of Trade and Industry: www.dti.co.za 

National Empowerment Fund: www.nefcorp.co.za 

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

Small Enterprise Finance Agency: www.sefa.org.za 

South African Institute of Entrepreneurship: 

www.entrepreneurship.co.za 


OVERVIEW 

Education and training 

The education sector in KwaZulu-Natal needs to grow. 

The desire to learn is strong in KwaZulu-Natal. For the 2016 academic 

year the University of KwaZulu-Natal (UKZN) received 

more than 84 000 applications for the 8 770 spaces available 

in its first-year undergraduate programmes. 

With 30% of South Africa's school pupils in its schools, the province's 

results have a big bearing on how the nation fares. Recent results in 

the matriculation examination (Grade 12) have caused consternation, 

coming off a high of almost 80% success (in 2013) to just over 60% in 

2015. The Premier of the province has set up a task team to come up 

with solutions, most of which involve teacher training. 

There are two universities in addition to two universities of technology 

in KwaZulu-Natal, while the national distance university, the 

University of South Africa (Unisa), has a presence in five locations. 

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, 

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 most popular first-year courses applied for in 2016 were Social 

Work, Education and all programmes in Health Sciences (Medicine, 

Nursing, Optometry, Pharmacy, Sport Science, Physiotherapy). 

In 2014 KZN published the most 'output units' of any South African 

university for the third year in a row. It has the second-most postdoctoral 

students in the country and in 2015 awarded all five researchers 

of its South African Research Chairs Initiative (SARChi) programme to 

women researchers. 

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. 

Varsity Colleges has campuses in Durban North, Westville and 

Pietermaritzburg. 


The University of KwaZulu- 

Natal is top of the class in 

outputs. 

• Training colleges have 

been re-branded. 

• JSE-listed private schools 

are a growth sector. 

Training 

National and provincial government 

are investing heavily in 

training. Various provincial government 

departments awarded 

about R316-million in support 

and bursaries for more then 

5 000 students across the province. 

There is a National Student 

Aid Financial Aid Scheme which 

is under pressure following a 

concentrated protest across 

South Africa against high university 

fees. Bursaries are also 

available under the National 

Skills Fund. 

What for several years were 

known as Further Education and 

Training Colleges (FET) have now 

been re-branded as Technical 

and Vocational Education 

and Training (TVET) Colleges. 

KwaZulu-Natal has nine such 

colleges with a total enrolment 

of about 80 000 students. 


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OVERVIEW 

Coastal KZN TVET College 

gives students practical experience 

through facilities such as the 

Nongalo Industrial Park, where 

school furniture is repaired and 

burglar bars and computer tables 

are made. The college has several 

sites on the South Coast and caters 

for 15 400 students. 

Majuba TVET College has a 

focus on engineering as the coal 

and steel industries are prominent 

in Newcastle. Some of their 

engineering students have done 

apprenticeships on Sibanye gold 

mines in Gauteng. The Mnambithi 

TVFET College is located in the 

Battlefields Route tourism area 

and offers National Diploma 

courses in tourism, among other 

qualifications. 

The Premier's office in 2015 

collaborated with the Municipal 

Infrastructure Support Agency 

and the KZN Academy to recruit 

and place 86 young learners 

from TVET colleges in eight municipalities 

to enable them to gain 

workplace experience in technical 

skills. 

A bigger programme, the R74- 

million Public Sector Internship 

Programme, saw 1 237 graduates 

gain experience while the Work 

Integrated Learning Programme 

(of the national Department of 

Higher Education) placed 255 

TVET students in provincial departments 

and private companies. 

In addition, 680 apprentices 

(including 200 in 35 private companies) 

are learning on-site skills 

as fitter machinists, tool-jig-anddie-makers, 

welders, bricklayers, 

spray painters, plumbers and 

carpenters, in addition to many 

other jobs. 

A R22-million project of the provincial government will in 2016 offer 

short technical courses to 100 apprentices and 850 unemployed young 

people. The funding will come from MERSETA (the manufacturing, 

engineering and related skills education training authority). 

Schools 

Although KwaZulu-Natal is home to some of South Africa’s oldest and 

most expensive private schools, the backlog of its infrastructure at the 

poorer public schools is still formidable. The provincial government is 

spending heavily on providing classrooms, toilets and other facilities 

in rural areas. 

There are 1.9-million children who benefit from the national school 

feeding programme in KwaZulu-Natal. A total of 4 747 schools are classified 

as no-fee schools, accounting for about 80% of the province’s 

public schools. 

There are approximately 26 000 public schools in South Africa. There 

were 44% more private schools in South Africa in 2010 than there were in 

2001 (South African Institute of Race Relations). Some of the new private 

schools are small and modest, but the sector is also attracting investors. 

JSE-listed ADvTECH has two Crawford Colleges in the province. 

Curro Holdings is also listed on the JSE and is rapidly growing its 

portfolio of schools. This is partly due to acquisitions such as that of 

Curro Embury College in Morningside. There are other Curro schools 

at Hillcrest and Mount Richmore (North Coast). 

A funding agreement with Old Mutual Investment Group SA 

(OMIGSA) and the Public Investment Corporation (PIC) will see Curro 

roll out 11 low-fee independent schools in the years to 2019. These will 

be called Meridian Independent Schools. 


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

Independent Schools Association of Southern Africa: 

www.isasa.org 

KwaZulu-Natal Department of Education: 

www.kzneducation.gov.za 

National Department of Basic Education: www.education.gov.za 

National Department of Higher Education and Training: 

www.dhet.gov.za 

National Research Foundation: www.nrf.ac.za 


OVERVIEW 

Tourism 

Two international airlines have announced new routes connecting to Durban. 

KwaZulu-Natal has a very varied tourism offering – mountains, 

heritage, beaches, conventions, sports – and the tourists who 

enjoy visiting the province are almost as varied. 

In 2015, a new venture between the provincial department 

of tourism, local tour operator Akilanga and a Polish charter company 

called Rainbow Tours saw 2 500 Polish tourists visit KwaZulu-Natal. 

Qatar Airways launched their third route to South Africa with 

a Durban-Doha offering, close followed by the announcement of a 

Turkish Airlines Durban-Istanbul flight. This is likely to further diversify and 

increase the number of tourists visiting KwaZulu-Natal. 

Arrivals at King Shaka International Airport between January and 

September 2015 were at 1 717 721, compared to 1 648 285 in 2014. 

National figures for 2013 put the total number of tourists visiting 

South Africa at 9.6-million (out of 14.8-million visitors). Increases were 

recorded from these regions: the UK, SA's biggest market (1%, a figure 

which probably reflects a degree of saturation); Europe (7%); rest of Africa 

(4%) including an increase of 15.4% among Nigerians; North America 

(6.7%); Australasia (4%); Asia (34%) and Central and South America (37%). 

The numbers for the last two regions clearly show that the focus 

on China and Brazil that has been part of SA's country marketing is 

paying off. 

According to StatsSA, tourism's direct contribution to GDP accounted 

for 3% of GDP in 2012, an amount of R93.3-billion. There were 

617 287 direct jobs in that sector, 4.6% of employment in the country. 

In KwaZulu-Natal, the combined contribution of retail and tourism 

to GDP is 14%. Many thousands of visitors to KwaZulu-Natal arrive by 

road, and the statistics for January-October 2015 show that 1.65-million 

motorists passed through the Mooi River toll plaza, but a very 

important arrival method for tourists in the high-end of the market is 

by cruise liner. After many delays, tenders have been called for the construction 

of a terminal that will be dedicated to receiving cruise liners. 

The Port of Durban envisages a 32 000m² area that will cater for 

two ships and at least 5 000 passengers. The number of cruise-ship 

passengers attracted to Durban grew from 42 000 in 2004/05 to 157 000 

in 2010/11. South Africa attracts 0.5% of the world’s cruise-ship market, 

which comprises about 15.4-million passengers annually. 

One of the tender competitors will be MSC Cruises, which itself 

dealt with about 90 000 cruise passengers through Durban harbour 

in 2014. In the summer months the MSC Sinfonia and MSC Opera sail 

from Durban to Mozambique, in addition to other destinations in 


Hotel occupancy rose to 

63.8% in 2015. 

• The Loeries Creative 

Week will boost the regional 

economy for the 

next three years. 

• Tenders have been invited 

to build a cruise ship 

terminal in Durban. 

the Indian Ocean. It is expected 

that Transnet will also bid for the 

right to build the much-needed 

terminal. 

Hotels 

Research by Tourism KwaZulu- 

Natal (TKZN) shows that the 

coastal province consistently has 

the best hotel occupancies in the 

country. Hotel occupancy in the 

province rose to 63.8% in 2015 

compared to 60.7% in 2014. 

Tsogo Sun runs 14 hotels in 

KwaZulu-Natal, five of which are 

Garden Courts. Six hotels are located 

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 new 'mega-hotel' has been 

created by Tsogo Sun, with the 

amalgamation of the Southern 

Sun North Beach and Southern 

Sun Elangeni hotels. With 


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OVERVIEW 

734 rooms, the Southern Sun 

Elangeni & Maharani will boast 

the most accommodation in the 

province. It has nine restaurants 

and bars. 

Protea Hotel Hospitality Group 

announced in 2011 that the 

group had set up a fund to buy 

distressed hotels. Protea already 

has more hotel beds in South 

Africa than any other group and 

by 2012 had spent about R1.5- 

billion on upgrades to hotels in 

its portfolio. 

Protea Hotels has 18 properties 

in the province, with seven 

in Durban including the Protea 

Hotel Edward. 

Hilton Durban opened a new 

venue in October 2015, the 'Big 

Easy Wine Bar and Grill', a collaboration 

with world-renowned 

golfer Ernie Els, and previously 

best known off the golf course 

for his wine range. 

The upgrading of the Point 

area between the beach and 

the Port of Durban has resulted 

in major investments. The 

Docklands Hotel at the Durban 

Waterfront is a four-star Signature 

development that cost about 

R100-million to develop. The 

Quays on Timeball Square offers 

luxury apartments and six penthouses 

in a canal setting with 

views of the Atlantic Ocean. 

The iconic 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 is also 

home to 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 ranging from Tala Game Reserve in its lodge portfolio 

to five Signature Hotels. Gooderson Leisure has a varied portfolio, including 

the Tropicana and Beach hotels in Durban, lodges in Hluhluwe 

and the Drakensberg Gardens Golf & Spa Resort. 

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. 

Durban’s Golden Mile is the site of the province’s biggest 

casino complex: the Sun Coast Casino and Entertainment World 

(Tsogo Sun) has 1 330 slot machines, 12 restaurants and eight cinemas. 

Assets 

KwaZulu-Natal has great beaches along the entire coastline, from 

the popular South Coast, through the perfect surfing spots in 

Durban to the wetlands of the north. 

The iSimangaliso Wetland and the uKhahlamba Drakensberg 

Park are World Heritage Sites. The province has six Ramsar wetlands 

and more than 100 nature reserves controlled by the provincial 

authority. The province is also famous for its luxurious private game 

reserves and lodges that offer unique viewings of black rhino. 

The rolling hills that Alan Paton made famous in Cry, the Beloved 

Country contrast with the coastal plains, the sheer walls of basalt 

that make up the Drakensberg in the east and the volcanic 

Lebombo mountain range in the north. 

The warm current allows for year-round swimming. Along the 

coast the climate ranges from mild tropical in the south to fully 

tropical in the north. It can get very humid in the north while the 

interior regions are cooler. The high-lying interior parts get snow 

in winter. 

Zulu heritage is celebrated on King Shaka Day in September 

with an impressive ceremony and draws many tourists. Important 

sites include the eMakhosini Heritage Park, Ulundi and Nongoma, 

where the current Zulu king resides. 

The Freedom Route celebrates great characters who fought for 

freedom from apartheid, including Chief Albert Luthuli, Mahatma 

Gandhi, Dr John Dube and Alan Paton. 

The Battlefields Route caters to thousands of local and foreign 

enthusiasts and providing much-needed employment in the north 

of the province. 

Indian temples in Durban and on the North Coast provide superb 

architecture to admire while there are several sites, particularly 


OVERVIEW 

around Pietermaritzburg, where Mahatma Gandhi’s stay in South 

Africa can be traced. 

Many tourism operators cooperate with one another, for example, 

in the N3 Gateway Tourism Association, which is a transprovincial 

initiative. With more than 2 500 associations, routes 

and co-operatives participating, the Gateway programme includes 

groups such as the Midlands Meander Association, the 

Grasslands Tourism Association, Mooi River Tourism and the 

uMngeni Footprint Route. 

Events and conferences 

When travel agents hold conferences in your city, you know you are 

on the right track. The 2015 conference of the Association of Southern 

African Travel Agents was held in May at the Southern Sun Elangeni 

and the Maharani with about 200 delegates. 

Another big win for Durban was the decision of the Loeries Creative 

Week (the advertising industry's awards festival) to sign to visit Durban 

for three years. More than 5 000 delegates are expected to attend the 

awards ceremonies, exhibitions and seminars. A 2011 survey of the 

economic impact of the awards estimated something in the region of 

R100-million for accommodation, restaurants and transport. 

Durban is the home of the Tourism Indaba, one of the industry's 

most important annual tourism exhibitions and the continent's biggest 

tourism marketing event. In 2015, a total of 20 African countries were 

represented and a new app allowed buyers and sellers to plan their 

programmes well in advance. As a result, there was a 69% increase 

in meetings held over the previous year, rising to an amazing figure 

of 29 058. 

Durban's Inkosi Albert Luthuli International Convention Centre 

Complex (ICC) regularly wins awards and, together with the Durban 

Exhibition Centre and the Durban Arena, the ICC helps to position 

Durban and KwaZulu-Natal as a leader in the Meetings, Incentives, 

Conferences and Exhibitions 

(Mice) sector. 

The ICC has been World Travel 

Awards' 'Africa’s Leading Meetings 

and Conference Centre”'14 times 

in the last 15 years and has been 

rated amongst the World’s Top 

15 convention centres by AIPC 

(International Association of 

Convention Centres). There are 3 

600 hotel rooms within a 10-minute 

walk of the ICC, while the airport 

is 30 minutes away. 

In the 2015 financial year, the 

ICC generated R157-million, an 

increase of R5.3-million and a 

20% growth in number of events 

hosted. Net profit increased by 

32%. The ICC is a body within 

the eThekwini Municipality, and 

despite the difficult general economic 

climate it made a significant 

economic contribution to 

the city and the province, adding 

R4.6-billion to the national Gross 

Domestic Product (GDP) – a 47% 

increase – and R4.5-billion to the 

province’s Gross Geographic 

Product (GGP). It has also created 

10 874 direct and indirect jobs. 

Most of KwaZulu-Natal's hotels 

and lodges have conference 

facilities, ranging from bushveld 

lodges catering for 20 people to 

hotels such as the 440-bedroom 

Southern Sun Elangeni on Durban 

beachfront, which can host up to 

600 delegates in 10 venues. 

There's a buzz around 

Durban’s conference, meetings 

and events market as Tsogo Sun 

hotels are making serious inroads 

into becoming the preferred 

choice among local organisers. 

Recognising the functionality and 

versatility benefits of these properties, 

organisers are enticed by 


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OVERVIEW 

the “one-stop solution” equipped 

to meet their individual needs. 

Tsogo Sun hotels offer excellent 

facilities, good infrastructure and 

comfortable accommodation at 

competitive rates. The hotels are 

a preferred choice as they offer 

distinct advantages including 

a wide range of well-equipped 

venues, world-class infrastructure 

and exclusively tailored services. 

'Tsogo Sun hotels have an enviable 

reputation of hosting corporate 

and business events that 

stretches back decades. From 

high-profile gatherings to company 

functions and group incentives, 

our Durban hotels have the 

right ingredients to make such 

occasions a success,' said Mike 

Jackson, Director of Operations, 

Tsogo Sun Hotels, KZN. 

He added that the wide 

range of hotels and price points 

from Garden Court to the flagship 

Southern Sun Elangeni and 

Maharani, to the luxury Beverly 

Hills made it easy to see why 

Tsogo Sun’s hotels are fast becoming 

leading contenders in the 

conference and incentive market. 

Overlooking the city of Durban 

is a very intimate venue, the 

Audacia Manor, which is geared 

to smaller gatherings. This African 

Pride hotel has a small conference 

room and a book-lined boardroom 

with a mahogany table around 

which 16 delegates can be seated. 

Localities outside of Durban 

offer a great variety of experiences: 

the Royal Showgrounds in 

Pietermaritzburg hosts up to 50 

functions per month; the Cathedral 

Peak Hotel has 94 hotel rooms to 

support its conference venue in 

a dramatic, mountainous setting; 

Tala Private Game Reserve offers wedding guests or delegates the chance 

to relax in 5 000 acres of natural beauty; the Imbizo Conference Centre 

north of Durban can accommodate 1 500 conference-goers, while the 

South Coast from Amanzimtoti to Port Edward venues cater to a wide 

variety of tastes. 

Sporting events 

KwaZulu-Natal has developed a healthy reputation as a venue for 

sporting events, although in some cases the events are so extreme 

that non-sporting people sometimes wonder just how healthy they 

are. Whatever the case may be, there is no doubt that sports races and 

tournaments make for a healthier provincial economy. 

Several KwaZulu-Natal sporting events have become internationally 

famous and now play a crucial role in boosting local, regional 

and national economies. The Durban July is the country's premier 

horse-racing gala event. Some 55 000 spectators spend about R85- 

million before and during the event. The Dusi Canoe Marathon brings 

an estimated R30-million into the region’s economy region through 

money spent on accommodation, refreshments and the like. By moving 

the event to January, the organisers have successfully extended 

the Christmas season for local tourism and hospitality operators. The 

Comrades Marathon is another ultra-event that has a huge following 

locally as well as internationally. 

The Sharks rugby franchise has a fanatical following and soccer 

matches regularly draw big crowds to the area just north of Durban's 

CBD, one that is increasingly becoming a sporting mecca. With several 

stadia located here, including the superb new Moses Mabhida Stadium, 

this area is set to become the focus of future bids to host events such 

as the Commonwealth Games. 


Amafa/Heritage KwaZulu-Natal: www.emakhosini.co.za 

Ezemvelo KZN Wildlife: www.kznwildlife.com 

Hotel Investment Conference Africa: www.hica.co.za 

Inkosi Albert Luthuli ICC Complex: www.icc.co.za 

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

KZN Gambling Board: www.kzngambling.co.za 

KZN Literary Tourism: www.literarytourism.co.za 

N3 Gateway Tourism Association: www.N3gateway.com 


LISTING 

South African National Government 

An overview of South Africa’s national government departments. 

President 

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001 

Postal address: Private Bag X1000, Pretoria 0001 

Tel: +27 12 300 5200 | Fax: +27 12 323 8246 

Website: www.thepresidency.gov.za 

Website: www.economic.gov.za 

Deputy President 

Address: Union Buildings, Government Avenue, East Wing, 

1st Floor, Arcadia, Pretoria 0001 


Tel: +27 12 300 5200 | Fax: +27 12 323 8246 


Minister in the Presidency 

Address: Union Buildings, Government Avenue, East Wing, 

1st Floor, Arcadia, Pretoria 0001 


Tel: +27 12 300 5200 | Fax: +27 12 300 5795 


Ministry in the Presidency responsible 

for Women (Minister of Women in the 

Presidency) 

Address: East Wing, Union Buildings, Pretoria 0001 


Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473 

Website: www.women.gov.za 

Minister for Public Service & Administration 

Address: 123 Poyntons Building, West Block, cnr Schubart and Church 

streets, Pretoria 0001 


Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 

Website: www.dcs.gov.za 

Dept of Agriculture, Forestry and Fisheries 

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street 

and Soutpansberg Road, Arcadia, Pretoria 

Postal address: Private Bag X250, Pretoria 

Tel: +27 12 319 7319 | Fax: +27 12 319 6681 

Website: www.daff.gov.za 

Department of Arts and Culture 

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza 

Bopape streets, Arcadia, Pretoria 0001 


Tel: +27 12 441 3000 

Fax: +27 12 440 4485 

Website: www.dac.gov.za 

Department of Basic Education 

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 

Postal address: Private Bag X9034, 8000 

Tel: +27 12 357 3000 

Fax: +27 12 323 5989 

Website: www.education.gov.za 

Department of Communications 

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival 

Street), Hatfield, Pretoria 0001 


Tel: +27 12 473 0000 | Fax: +27 12 462 1646 

Website: www.doc.gov.za 

Department of Cooperative Governance and 

Traditional Affairs 

Address: 87 Hamilton Street, Arcadia, Pretoria 0083 


Tel: +27 12 334 0705 | Fax: +27 12 326 4478 

Website: www.cogta.gov.za 

Department of Correctional Services 

Address: 123 Poyntons Building, West Block, 

cnr Schubart and Church streets, Pretoria 0001 


Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 

Website: www.dcs.gov.za 

Department of Economic Development 

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & 

Esselen streets, Sunnyside, Pretoria 0001 


Tel: +27 12 394 1006 | Fax: +27 12 394 0255 

Website: www.economic.gov.za 


110

LISTING 

Department of Defence 

and Military Veterans 

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001 


Tel: +27 12 355 6101 | F ax: +27 12 347 0118 

Website: www.dod.mil.za 

Department of Energy 

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001 


Tel: +27 12 406 8000 

Fax: +27 12 319 6681 

Website: www.energy.gov.za 

Department of Environmental Affairs 

Address: Environment House, 473 Steve Biko and Soutpansberg Road, 

Arcadia, 0083 


Tel: +27 12 310 3537 | Fax: +27 086 593 6526 

Website: www.environment.gov.za 

Department of Finance 

Address: 40 WF Nkomo Street, 

Old Reserve Bank Building, 2nd Floor, Pretoria 


Tel: +27 12 323 8911 | Fax: +27 12 323 3262 

Website: www.treasury.gov.za 

Department of Health 

Address: 20th Floor, Civitas Building, cnr Struben and Andries streets, 

Pretoria 0001 


Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165 

Website: www.doh.gov.za 

Department of Higher Education 

and Training 

Address: 123 Francis Baard Street, Pretoria 0001 


Tel: +27 12 312 5555 | Fax: +27 12 323 5618 

Website: www.dhet.gov.za 

Department of Home Affairs 

Address: 909 Arcadia Street, Hatfield 0083 


Tel: +27 12 432 6648 | Fax: +27 12 432 6675 

Website: www.dha.gov.za 

Department of Human Settlements 

Address: Govan Mbeki House, 240 Justice Mahomed, 

Sunnyside, Pretoria 0001 


Tel: +27 12 421 1310 

Fax: +27 12 341 8513 

Website: www.dhs.gov.za 

Department of International Relations and 

Cooperation 

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, 

Pretoria 0001 


Tel: +27 12 351 1000 

Fax: +27 12 329 1000 

Website: www.dirco.gov.za 

Department of Justice and Correctional 

Services 

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard 

Streets, Pretoria 0001 

Postal address: Private Bag X276, 

Pretoria 0001 

Tel: +27 12 406 4669 | Fax: +27 12 406 4680 

Website: www.doj.gov.za 

Department of Labour 

Address: 215 Laboria House, cnr Francis Baard and 

Paul Kruger Streets, Pretoria 0001 


Tel: +27 12 392 9620 | Fax: +27 12 320 1942 

Website: www.labour.gov.za 

Department of Mineral Resources 

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007 


Tel: +27 12 444 3000 

Fax: +27 86 624 5509 

Website: www.dmr.gov.za 

Department of Police 

Address: Wachthuis Building, 7th Floor, 231 Pretorius 

Street, Pretoria 0001 


Tel: +27 12 393 2800 

Fax: +27 12 393 2812 

Website: www.saps.gov.za 


LISTING 

Department of Public Enterprises 

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001 

Postal address: Private Bag X15, Hatfield 0028 

Tel: +27 12 431 1000 

Fax: +27 12 431 1039 

Website: www.dpe.gov.za 

Department of Public Service and 

Administration 

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria 


Tel: +27 12 336 1700 

Fax: +27 12 336 1809 

Website: www.dpsa.gov.za 

Department of Public Works 

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street 


Tel: +27 12 406 21978 

Fax: +27 086 276 8757 

Website: www.publicworks.gov.za 

Department of Rural Development and 

Land Reform 

Address: 184 Old Building, cnr Jeff Masemola 

and Paul Kruger Streets, Pretoria 0001 


Tel: +27 12 312 9300 

Fax: +27 12 323 3306 

Website: www.ruraldevelopment.gov.za 

Department of Science and Technology 

Physical address: DST Building, Building No 53, CSIR South Gate 

Entrance, Meiring Naude Road, Brummeria, Pretoria 0001 


Tel: +27 12 843 6300 

Fax: +27 12 349 1041/8 

Website: www.dst.gov.za 

Department of Small Business Development 

Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street, 



Pretoria 0001 

Tel: +27 12 394 1006 

Fax: +27 12 394 1006 

Website: www.dsbd.gov.za 

Department of Social Development 

Physical address: HSRC Building, North Wing, 

134 Pretorius Street, Pretoria 0001 


Tel: +27 12 312 7479 

Fax: +27 086 715 0829 

Website: www.dsd.gov.za 

Department of State Security 

Physical address: Bogare Building, 2 Atterbury Road, Menlyn, 

Pretoria 0001 

Postal address: PO Box 1037, Menlyn 0077 

Tel: +27 12 367 0700 | Fax: +27 12 367 0749 

Website: www.ssa.gov.za 

Department of Sport and Recreation South 

Africa 

Physical address: Regent Place, 66 cnr Madiba and 

Florence Ribeiro Street, Pretoria 0001 


Tel: +27 12 304 5000 

Fax: +27 12 323 7196 / 086 644 9583 

Website: www.srsa.gov.za 

Department of Tourism 

Physical address: 17 Trevena Street, Tourism House, 



Tel: +27 12 444 6780 

Fax: +27 12 444 7027 

Website: www.tourism.gov.za 

Department of Trade and Industry 

Physical address: The dti, 

77 Meintjie Street, Block A, Floor 3, 



Pretoria 0001 

Tel: +27 12 394 1568 | Fax: +27 12 394 0337 

Website: www.thedti.gov.za 

Department of Transport 

Physical address: Forum Building, 159 Struben Street, 

Room 4111, Pretoria 0001 


Tel: +27 12 309 3131 | Fax: +27 12 328 3194 

Website: www.transport.gov.za 


112

LISTING 

Telecommunications and Postal Services 

Physical address: Iparioli Office Park, 399 Jan Shoba Street, 

Hatfield, Pretoria 0001 


Tel: +27 12 427 8000 Fax: +27 12 427 8016 

Website: www.dtps.gov.za 

Department of Water and Sanitation 

Physical address: Sedibang Building, 185 Frances Baard Street, 

Pretoria 0001 


Tel: +27 12 336 8733 Fax: +27 12 336 8850 

Website: www.dwa.gov.za 

National coat of arms 

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which 

are described as the circle of foundation and the circle of ascendance. 

Circle of foundation 

Shield – The two Khoisan figures on the shield are taken from a 

Bushman rock painting known as the Linton stone, and represent the 

common humanity and heritage of South Africans. Depicted in an attitude 

of greeting, the figures symbolise unity. Spear and knobkierie 

– Together, these objects symbolise defence and authority, but the flat 

angle at which they lie symbolises peace. 

Wheat – The ears of wheat, as emblems of fertility, represent germination, 

growth and the development of potential, as well as nourishment 

and agriculture. Elephant tusks – Elephants symbolise wisdom, 

strength, power, authority, moderation and eternity, and the use 

of tusks is a tribute to the world’s largest land mammal, Loxodonta 

Africana, which is found in South Africa. Motto – Taken from the language 

of the now extinct /Xam Bushmen, the motto translated means 

‘people who are different come together’ or ‘diverse people unite’. 

Circle of ascendance 

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of 

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the 

secretary bird represents growth and speed, and is a symbol of divine majesty and protection. 

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for 

a country characterised by sunshine and warmth. 


LISTING 

KwaZulu-Natal Provincial 

Government 

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

in Pietermaritzburg (code 3201) unless stated otherwise. Visit www.kwazulunatal.gov.za. 

Office of the Premier 

Premier: Dr ZL Mkhize 

5th Floor, Telkom Building, 300 Langalibalele Street 

Tel: +27 33 341 3300 | Fax: +27 33 341 3442 

Website: www.kwazulunatal.gov.za 

Agriculture and Rural Development 

MEC: Mr Cyril Xaba 

Cedara College, Cedara Road 

Tel: +27 33 343 8240 | Fax: +27 33 343 8255 

Website: www.kzndard.gov.za 

Arts and Culture 

MEC: Ntombikayise Sibhidla-Saphetla 

222 Jabu Ndlovu Street 

Tel: +27 33 264 3400 | Fax: +27 33 394 2237 

Website: www.kzndac.gov.za 

Cooperative Governance 

and Traditional Affairs 

MEC: Nomsa Dube-Ncube 

330 Langalibele Street 

Tel: +27 33 264 2500 | Fax: +27 33 264 6672 

Website: www.kzncogta.gov.za 

Economic Development, Tourism 

and Land Affairs 

MEC: Mike Mabuyakhulu 

270 Jabu Ndlovu Street 

Tel: +27 33 264 2500 

Fax: +27 331 310 5416 

Website: www.kzndedt.gov.za 

Education 

MEC: NP Nkonyeni 

Anton Lembede Building, 247 Burger Street 

Tel: +27 33 392 1004 

Fax: +27 33 392 1203 

Website: www.kzneducation.gov.za 

Health 

MEC: Dr Sibongiseni Maxwell Dhlomo 

1st Floor, 330 Langalibalele Street 

Tel: +27 33 395 2111 

Website: www.kznhealth.gov.za 

Human Settlements and Public Works 

MEC: Ravi Pillay 

Tolaram House, 2 Aliwal Street, Durban 4000 

Tel: +27 31 336 5300 

Fax: +27 31 336 5114 

Website: www.kznworks.gov.za 

Social Development 

MEC: Weziwe Gcotyelwa Thusi 

208 Hoosen Haffejee Street 

Tel: +27 33 341 9600 

Fax: +27 33 341 9616 

Website: www.kznsocdev.gov.za 


114

LISTING 

Transport, Community, Safety 

and Liaison 

MEC: Thembinkosi Willies Mchunu 

179 Jabu Ndlovu 

Tel: +27 33 341 9300 | Fax: +27 33 342 6345 

Website: www.kzntransport.gov.za 

KwaZulu-Natal Legislature 

Speaker: Hon L Johnson 

239 Langalibalele Street 

Tel: +27 33 355 7600 | Fax: +27 33 355 7011 / 7099 

Website: www.kznlegislature.gov.za 

Provincial Treasury 

MEC for Finance: Belinda Francis Scott 

Treasury House, 145 Chief Albert Luthuli Street, 

Tel: +27 33 846 6800 

Fax: +27 33 846 6801 

Website: www.kzntreasury.gov.za 

Provincial Planning Commission 

Chairperson: Prof Prof Bonke Dumisa 

Moses Mabhida Building, 300 Langalibalele Street 

Tel: +27 31 341 4765 

Website: www.kznppc.gov.za 

KwaZulu-Natal Local Government 

A guide to KwaZulu-Natal's local government. 

eThekwini Metropolitan Municipality 

263 Dr Pixley ka Seme Street, Durban 4001 

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

Website: www.durban.gov.za 

Amajuba District Municipality 

Unit B9356, Ithala Building, Section 1, Main Street, 

Madadeni Township, Newcastle 2940 

Tel: +27 34 329 7200 | Fax: +27 34 314 3785 

Website: www.amajuba.gov.za 

Dannhauser Municipality 

Tel: +27 34 621 2666 | Fax: +27 34 621 3114 

eMadlageni (Utrecht) Municipality 

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

Newcastle Municipality 

Tel: +27 34 328 7600 | Fax: +27 34 312 1570 

iLembe District Municipality 

59/61 Mahatma Gandhi St, KwaDukuza 4450 

Tel: +27 32 437 9300 | Fax: +27 32 437 9587 

Website: www.ilembe.gov.za 

KwaDukuza Municipality 

Tel: +27 32 437 5000 

Fax: +27 32 437 5098 

Mandeni (eNdondakusuka) Municipality 

Tel: +27 32 456 8200 

Fax: +27 32 456 2504 

Maphumulo Municipality 

Tel: +27 32 481 4500 

Fax: +27 32 481 2053 

Ndwedwe Municipality 

Tel: +27 32 532 5000 

Fax: +27 32 532 5031/2 


LISTING 

Harry Gwala District Municipality 

40 Main Street, Ixopo 3276 

Tel: +27 39 834 8700 | Fax: +27 39 834 1701 

Website: www.harrygwaladm.gov.za 

Greater Kokstad Municipality 

Tel: +27 39 797 6600 | Fax: +27 39 727 5501 

Kwa Sani Municipality 

Tel: +27 33 702 1060 | Fax: +27 33 702 1148 

uBuhlebezwe Municipality 

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

uMzimkhulu Municipality 

Tel: +27 39 259 5000 | Fax: +27 39 259 0223 

Ugu District Municipality 

28 Connor Street, Port Shepstone 4240 

Tel: +27 39 688 5700 | Fax: +27 39 682 4820 

Website: www.ugu.gov.za 

Hibiscus Coast Muncipality 

Tel: +27 39 688 2000 | Fax: +27 39 682 0327 

Umdoni Municipality 

Tel: +27 39 978 4313 | Fax: +27 39 976 2020 

uMuziwabantu Muncipality 

Tel: +27 39 433 1205 | Fax: +27 39 433 1208 

Umzumbe Municipality 

Tel: +27 39 972 0005 | Fax: +27 39 972 0099 

Vulamehlo Municipality 

Tel: +27 39 974 0553 | Fax: +27 39 974 0432 

uMgungundlovu District Municipality 

242 Longmarket Street, Pietermaritzburg 3201 

Tel: +27 33 897 6700 | Fax: +27 33 342 5502 

Website: www.umdm.gov.za 

Impendle Muncipality 

Tel: +27 33 996 6000 | Fax: +27 33 996 0852 

Mkhambathini Municipality 

Tel: +27 31 785 9300 | Fax: +27 31 785 2121 

Mpofana Municipality 

Tel: +27 33 263 1221 | Fax: +27 33 263 1127 

Msunduzi Municipality 

Tel: +27 33 392 3000 | Fax: +27 33 345 2397 

Richmond Municipality 

Tel: +27 33 212 2155 | Fax: +27 33 212 2102 

uMngeni Muncipality 

Tel: +27 33 239 9200 | Fax: +27 33 330 4183 

uMshwathi Municipality 

Tel: +27 33 815 2249 | Fax: +27 33 502 0286 

uMkhanyakude District Municipality 

Stand 13433, Kingfisher Road, Mkuze 3965 

Tel: +27 35 573 8600 | Fax: +27 35 573 1094 

Hlabisa Municipality 

Tel: +27 35 838 8500 | Fax: +27 35 838 1015 

Jozini Municipality 

Tel: +27 35 572 1292 | Fax: +27 35 572 1266 

Mtubatuba Municipality 

Tel: +27 35 550 0069 | Fax: +27 35 550 0060 

The Big Five False Bay Municipality 

Tel: +27 35 562 0040 | Fax: +27 35 562 0988 

uMhlabuyalingana Muncipality 

Tel: +27 35 592 0680 | Fax: +27 35 592 0672 

uMzinyathi District Municipality 

Princess Magogo Bld, 39 Victoria St, Dundee 3000 

Tel: +27 34 219 1500 

Fax: +27 34 219 1940 

Website: www.umzinyathi.gov.za 

Endumeni Municipality 

Tel: +27 34 212 2121 | Fax: +27 34 212 3856 


116

LISTING 

Nquthu Municipality 

Tel: +27 34 271 6100 | Fax: +27 34 271 6111 

Msinga Municipality 

Tel: +27 33 493 0761 | Fax: +27 33 493 0766 

uMvoti Municipality 

Tel: +27 33 413 9100 | Fax: +27 33 417 1393 

uThukela District Municipality 

Physical address: 33 Forbes Street, Ladysmith 3370 

Tel: +27 36 638 5100 / 2400 

Fax: +27 36 637 5608 / 635 5501 

Website: www.uthukeladm.co.za 

Emnambithi/Ladysmith Municipality 

Tel: +27 36 637 2231 | Fax: +27 36 631 1400 

Imbabazane Municipality 

Tel: +27 36 353 0681 | Fax: +27 36 353 6661 

Indaka Municipality 

Tel: +27 34 261 1000 | Fax: +27 34 261 2035 

Okhahlamba Municipality 

Tel: +27 36 448 8000 | Fax: +27 36 448 1986 

Umtshezi Municipality 

Tel: +27 36 342 7800 | Fax: +27 36 352 5829 

uMhlathuze Municipality 

Tel: +27 35 907 5100 | Fax: +27 35 907 5444 

uMlalazi Muncipality 

Tel: +27 35 473 3300 | Fax: +27 35 474 4733 

Zululand District Municipality 

B400 Gagane Street, Ulundi 3838 

Tel: +27 35 874 5500 | Fax: +27 35 874 5589 

Website: www.zululand.org.za 

Abaqulusi Municipality 

Tel: +27 34 982 2133 | Fax: +27 34 980 9637 

eDumbe Municipality 

Tel: +27 34 995 1650 | Fax: +27 34 995 1192 

Nongoma Municipality 

Tel: +27 35 831 7500 | Fax: +27 35 831 3152 

Ulundi Municipality 

Tel: +27 35 874 5100 | Fax: +27 35 870 1164 

uPhongola Municipality 

Tel: +27 34 413 1223 | Fax: +27 34 413 1706 

MUNICIPALITIES IN KWAZULU-NATAL 

Mpumalanga 

SWAZILAND 

MOZAMBIQUE 

uThungulu District Municipality 

eDumbe 

uPhongolo 

Jozini 

Umhlabuyalingana 

Uthungulu House, Kruger Rand Rd, Richards Bay 

3900 

Tel: +27 35 799 2500 

Fax: +27 35 789 1641 

Website: www.uthungulu.org.za 

uMfolozi Municipality 

Tel: +27 35 580 1421 | Fax: +27 35 580 1141 

Mthonjaneni Municipality 

Tel: +27 35 450 2082 | Fax: +27 35 450 2056 

Nkandla Municipality 

Tel: +27 35 833 2000 | Fax: +27 35 833 0920 

eMadlageni 

uMkhanyakude 

Newcastle 

Abaqulusi 

Amajuba 

The Big 

Free State 

Nongoma 

Zululand 

Five 

Dannhauser 

False 

KZDMA27 Bay KZDMA27 

Endumeni 

Ulundi 

Nqutu 

Hlabisa 

Emnambithi/ 

Ladysmith 

uMzinyathi 

Mtubatuba 

KZDMA23 

Mthonjaneni 

Indaka 

Mbonambi 

uThukela 

Ntambanana 

Msinga 

Nkandla 

Ukhahlamba 

uThungulu uMhlathuze 

LESOTHO 

uMtshezi 

uMlalazi 

Imbabazane 

uMvoti 

KZDMA23 

Mpofana 

KwaDukuza 

Maphumulo 

KZDMA22 

uMshwathi 

uMngeni 

iLembe Mandeni 

uMgungundlovu 

Impendle 

KZDMA43 

Msunduzi 

Maphumulo 

Kwa 

eThekwini 

Sani 

Richmond 

Metropolitan 

Ingwe 

Municipality 

Mkhambathini 

Sisonke 

uMzimkulu 

Greater 

Kokstad 

Eastern Cape 

uMuziwabantu 

uBuhlebezwe 

Vulamehlo 

Ugu Umdoni 

Umzumbe 

Ezinqoleni 

Hibiscus Coast 

INDIAN OCEAN 

N 

Metropolitan/District Municipality Boundary 

Local Municipality Boundary 

District Municipality 

Amajuba 

Local Municipality 

uMlalazi 

117 KWAZULU-NATAL BUSINESS 2016/17

PROFILE 

Msunduzi Municipality: 

City of Pietermaritzburg 

The Msunduzi Municipality incorporates Pietermaritzburg, 

the capital city of KwaZulu-Natal. 

Geography and location 

Pietermaritzburg is the capital city of the province 

of KwaZulu-Natal, and situated strategically on the 

N3 highway, 80km inland from Durban – the biggest 

port in Africa. The N3 corridor is the busiest development 

corridor in South Africa, linking Durban 

through Pietermaritzburg to Johannesburg and the 

rest of Africa. The Municipality is also the economic 

hub for the central part of the Province. 

Main industries/business sectors 

As well as being the seat of the Provincial Parliament, 

home to all government departments and the 

Provincial High Court, Msunduzi also has a diverse 

economy with a robust manufacturing sector including 

aluminium products, automotive components, 

leatherware and shoes, furniture, timber, as 

well as one of the largest fresh produce markets in 

the country and a thriving agricultural sector. It is 

the main commercial hub for the KwaZulu-Natal 

Midlands. 

Main resources/ 

attractions 

Enjoying a warm, subtropical climate. 

Pietermaritzburg is a green and attractive 

city with numerous parks, pleasant residential 

suburbs and is within easy reach of both 

beaches and the Drakensberg mountains. 

It is renowned for its excellent public and 

private schools and has campuses for two 

universities (the University of KwaZulu-Natal 

and the Durban University of Technology), 

ensuring the availability of a highly skilled workforce. 

It has excellent road and rail networks, and 

a recently expanded airport with five flights daily 

to Johannesburg. Having numerous restaurants, 

museums, shopping centres and social amenities, 

it also hosts major events such as the Comrades 

Marathon, Dusi Canoe Marathon, Edendale and 

Mandela Marathons, the Midmar Mile swim, the 

Royal Agricultural Show, and it is also known as the 

Bike City of Africa hosting international BMX and 

mountain-biking championships. 

Key development objectives 

and strategies 

The Municipality aims to promote investment that 

will take advantage of its strategic location on the 

N3 development corridor and close to the proposed 

freight dry port halfway between Durban 

and Pietermaritzburg in Cato Ridge. Its key sector 

plans are around aluminium beneficiation, the ex- 


118

PROFILE 

Albert Falls Amble and Boston-Bulwer Beat, where 

recreational activities, arts and craft outlets and 

fine dining restaurants abound. It has a beautiful 

National Botanical Garden, parks, and numerous 

entertainment and sporting events throughout the 

year, including Cars in the Park and Art in the Park, 

along with the nearby Hilton Arts Festival. With 

its Victorian architecture, township tours and rich 

heritage of South African Indian and Zulu culture it 

exemplifies a warm, friendly, diverse yet integrated 

South African city. 

pansion of Pietermaritzburg Airport (and an exciting 

airport technology hub which will drive innovation), 

the rejuvenation of Imbali and Edendale town 

centres, and a new leather hub in Plessislaer which 

is being driven by the KwaZulu-Natal Provincial 

Department of Economic Development. Massive 

new commercial, residential and light industrial 

centres are being planned alongside the N3 around 

Ashburton to the east. Further commercial developments 

alongside the N3 are planned around 

the new Brookside Mall and polocrosse fields in 

the central area. 

An Integrated Rapid Passenger Transport Network is 

at an advanced planning and early implementation 

stage which, in addition to the Pietermaritzburg 

Urban Renewal Programme of beautification, will 

revitalise the city centre and connect economic 

zones. A new municipal office has been established 

to fast-track the sale of industrial and commercial 

land, together with the re-establishment of the 

Investment Facilitation Committee, which will provide 

a “one-stop-shop” for investors and developers. 

Tourism 

Msunduzi has something for everyone. For those 

interested in our complex history, major tourist 

attractions include several museums, the Tatham 

Art Gallery and historical buildings, including links 

with former icons President Nelson Mandela and 

Mahatma Gandhi. It is a hub for several tourist routes 

including the Freedom Route, Midlands Meander, 

Key facts and figures 

District municipality (for local municipalities): 

Umgungundlovu District Municipality 

Population: 670 000 

Area covered: 650km 2 

Key infrastructure 

Main roads: Excellent national, provincial and local 

road network 

Railways: On the main line between Durban and 

Johannesburg 

Airports: Pietermaritzburg Airport, with five daily 

flights between the city and OR Tambo Airport, 

Gauteng 

Ports / harbours: 45 minutes drive from the Port 

of Durban 

Contact details 

Key personnel 

Mayor: Councillor Chris Ndlela 

Municipal Manager: Mr Mxolisi Nkosi 

Key contact people 

Mr Sipho Zimu – Process Manager: Investment 

Attraction, Retention and Expansion 

Dr Ray Ngcobo – Deputy Municipal Manager: 

Development Services 

Tel: +27 33 392 2465 | Fax: +27 33 392 2726 

Email: Sipho.Zimu@msunduzi.gov.za 

Website: www.msunduzi.gov.za 

Physical address: Professor Nyembezi Building, 341 

Church Street, Pietermaritzburg 3200 

Postal address: PO Box 85, Pietermaritzburg 3200 


INDEX 

INDEX 

Durban Chamber of Commerce and Industry .................................................................................................................52 

Durban Investment Promotion (DIP) ...................................................................................................................................... 1 

Emnambithi Ladysmith Municipality .................................................................................................................................... 7 

Hulamin ..............................................................................................................................................................................................82 

Industrial Development Corporation (IDC) ......................................................................................................................40 

KZN Growth Fund .......................................................................................................................................................................... 3 

Masisizane Fund ..............................................................................................................................................................................48 

Mondi Group South Africa ................................................................................................................................................. 66-68 

Msunduzi Municipality ..............................................................................................................................................................118 

Nedbank .......................................................................................................................................................................................43-47 

Port of Durban .......................................................................................................................................................................... 28-33 

Port of Richards Bay ................................................................................................................................................................34-39 

Richards Bay Minerals ...................................................................................................................................................................76 

Standard Bank ...............................................................................................................................................................94-101, IBC 

Trade & Investment KwaZulu-Natal (TIKZN) .................................................................................................... 16-27, OBC 

Transnet National Ports Authority (TNPA) ...................................................................................................................28-39 

Tsogo Sun ............................................................................................................................................................................................ 5 


120

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