South African Business 2018 edition

A REGIONAL OVERVIEW OF
KWAZULU-NATAL
Two new economic trends will benefit the economy
of KwaZulu-Natal and attract investors to
South Africa’s east coast: the Oceans Economy
and the move to gas.
KwaZulu-Natal is famous for its tourism offering
that ranges from the majestic Drakensberg mountains
to the beautiful beaches along the Indian
Ocean, but the province is also home to thousands
of manufacturing concerns that play a major role in
South Africa’s economy.
With two of the country’s busiest ports, Richards
Bay and Durban, the province plays a vital role in
national logistics and international trade.
The Port of Durban’s annual throughput of containers
is about one-million, more than 60% of the
country’s total. A priority is to improve loading and
unloading times. The Port of Richards Bay is the main
coal export harbour and has added a new berth on
average every second year. Six cargo handling terminals
handle 60% of South Africa’s seaborne cargo.
The Dube TradePort (DTP) helps to drive economic
growth. It is home to the King Shaka International
Airport, an agricultural greenhouse, a cargo terminal
and various other sections relating to trade, business
and transport, all on 3 000ha of land north of
Durban. DTP has attracted a R2-billion foreign direct
investment through Indian business conglomerate
Action Group and is making a solid contribution to
KwaZulu-Natal’s economy.
The province has shown considerable growth in
the business services, transport and retail sectors.
Manufacturing in KwaZulu-Natal makes up almost
a third of South Africa’s capacity.
Key sectors
Manufacturers such as Unilever, RCL and Clover have
a big presence in KwaZulu-Natal. Illovo Sugar and the
Tongaat-Hulett Group are international companies
with substantial sugar-cane holdings, manufacturing
plants and downstream beneficiation. Tongaat is
also a significant property developer in the province
and is active in several large projects.
KwaZulu-Natal industries are major exporters.
Steel, iron and aluminium account for nearly a third
of exports followed by metal products and automotive
and automotive components. Chemicals is the
other major export-driver.
In the base-metals and metal-products sectors,
companies such as Hulamin, ArcelorMittal and
Assmang have a big presence in the province. Toyota
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