South African Business 2018 edition

REGION
and Bell Equipment are important companies in
the automotive sector while the Engen Oil Refinery
and dissolving pulp manufacturer Sappi are among
other strategically important plants.
Manufacturing contributes 21.5% of the gross regional
product (GRP). 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.
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%). Mondi and Sappi
are both large international companies and the pulp
and paper sector makes a direct contribution to
South Africa’s balance of payments of R4.5-billion.
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.
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
Convention Centre Complex which hosts the annual
Tourism Indaba.
The province’s excellent 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 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.
Economic future
The Oceans Economy and a national policy shift
towards the use of gas are both developments that
will boost the regional economy.
The province’s two large ports are natural sites
for the increase in Oceans Economy-related sectors
such as ship-building and repair, and oil and
gas support (rig repair). The creation of a marine
manufacturing and repair cluster at Richards Bay
is being considered. Ship-building and ship repairs
is an existing industry but it is currently not
very big. If oil rigs were to start visiting the KZN
coastline on a regular basis, this industry would
grow exponentially.
Richards Bay, apart from being the country’s
main site for the export of coal, is also a registered
Industrial Development Zone (IDZ) and consequently
attracts a diverse range of investors.
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. Several fish-farming projects
are planned for KwaZulu-Natal (mostly with kob)
and a catfish feasibility study is under way.
The Provincial Government of KwaZulu-Natal
has created the KwaZulu-Natal Maritime Institute.
This is administered by the restructured Sharks
Board and training programmes are coordinated
with Transnet to make sure that relevant courses
are offered. Since 2012, 800 students have been
studying maritime-related courses.
The Richards Bay Industrial Development
Zone (RBIDZ) has welcomed SPS Manufacturing
(Pty) Ltd, a pipe manufacturer which will invest
R300-million in uMhlathuze, creating
87 permanent jobs.
With the announcement by national government
of its support for major gas-to-power projects,
the Richards Bay Industrial Development
Zone is in line to host a large facility. The proximity
of the RBIDZ to the gas fields of Mozambique
makes this a potentially giant project.
Capital Pietermaritzburg
Population 11 919 100
Area 94 361km 2
Premier Willies Mchunu (ANC)
Languages English, Zulu
149 SOUTH AFRICAN BUSINESS 2018