KwaZulu-Natal Business 2020-21 edition

KWAZULU-NATAL 

BUSINESS 

2020/21 EDITION 

THE GUIDE TO BUSINESS AND INVESTMENT 

IN KWAZULU-NATAL PROVINCE 

JOIN US ONLINE WWW.GLOBALAFRICANETWORK.CO.ZA | 

WWW.KWAZULUNATALBUSINESS.CO.ZA 

EST 1856 

DURBAN CHAMBER 

OF COMMERCE AND 

INDUSTRY NPC

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Let’s come together and heal as a nation. 

Let’s focus on Renewing, Restoring and Rebuilding 

successful partnerships and investment opportunities so we 

can get back to promoting our city as the ideal destination 

for business and pleasure to the rest of the world. 

Your support coupled with our world-class infrastructure, 

innovative business environment and ever evolving 

investment opportunities, means we can get back to 

‘connecting continents’ in no time. 

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Tel: +27 31 311 4227 

Email: invest@durban.gov.za 

web: invest.durban 

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The city of 

Durban (eThekwini 

Municipality) is South 

Africa’s second most 

important economic 

region 

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road, rail, sea and air 

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Dube 

TradePort 

and King 

Shaka 

International 1 

Airport - 60- 

year Master 

Plan - driving 

growth of 

aerotropolis, 

or airport 

city 

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Rated in top 5 

‘Quality of Living’ 

cities in Africa and 

Middle East by 

Mercer Consulting in 

2015 

Named one of the 

New 7 Wonders Cities 

by the Swiss-based 

New 7 Wonders 

Foundation in 2014 

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E S T 1856 

E S T 1856 

E S T 1856 



OF COMMERCE AND 

OF DURBAN COMMERCE CHAMBER AND 

INDUSTRY NPC 

INDUSTRY OF COMMERCE NPC AND 

INDUSTRY NPC 

 

 

#InBusinessForABetterWorld 

2 

#InBusinessForABetterWorld

WHO WE ARE AND WHAT 

WE ARE ABOUT 

WHO WE ARE AND WHAT 

WE ARE ABOUT 

The Durban Chamber of Commerce and Industry was established in 1856 and is 

one of the oldest and largest metropolitan chambers in Africa. As a business-based 

and member-focused The Durban Chamber organisation, of Commerce we and work Industry to protect was established and promote in 1856 the interests and is 

of the one eThekwini of the oldest business and largest community metropolitan and to chambers facilitate in and Africa. promote As a business-based 

economic growth 

in the and region member-focused in partnership organisation, with key stakeholders. 

we work to protect and promote the interests 

of the eThekwini business community and to facilitate and promote economic growth 

in the region in partnership with key stakeholders. 

VISION 

VISION 

In Business for a Better World 

To be In recognised Business for as a Better a world-class World business chamber and a united voice of 

business To be in recognised the eThekwini as a world-class Municipal area business and chamber beyond. and a united voice of 

business in the eThekwini Municipal area and beyond. 

MISSION 

MISSION 

To contribute towards creating a conducive economic and business environment 

in the To eThekwini contribute Municipal towards creating area and a conducive beyond, as economic well as and providing business services environment 

specifically in the eThekwini relevant Municipal to small and area large and beyond, businesses as well operating as providing in the services region. 

specifically relevant to small and large businesses operating in the region. 

AN AN ORGANISATION ORGANISATION OF OF GROWTH 

The Durban 

The Durban 

Chamber 

Chamber 

represents 

represents 

leading 

leading 

multi-nationals, 

multi-nationals, 

large 

large corporates, 

corporates, 

small, 

small, 

medium medium and and micro-sized micro-sized enterprises enterprises (SMMEs) (SMMEs) and and start-ups in promoting inclusive inclusive 

and sustainable and sustainable economic economic growth growth and and development in in eThekwini and beyond. 

Join Join the Durban the Durban Chamber and and take take advantage of of our exclusive member benefits 

and and business-focused services to to grow your business. 

ADVOCATING ADVOCATING AND AND 

INFLUENCING 

INFLUENCING 

POLICY 

POLICY 

DECISIONS THAT AFFECT THE 

DECISIONS THAT AFFECT THE 

INTERESTS OF BUSINESS 

INTERESTS OF BUSINESS 

Legislation and By-laws 

Legislation and By-laws 

Business Regulations 

Business 

Marketing 

Regulations 

Analysis and Research 

Marketing Analysis and Research 

OFFERING OFFERING BUSINESS BUSINESS 

SUPPORT SERVICES 

SUPPORT SERVICES 

AND ADVICE 

AND ADVICE 

Business and Personal Credit Reports 

Business and Personal Credit Reports 

Networking Opportunities 

Networking 

Company 

Opportunities 

Registration 

Company Workshops Registration and Seminars 

Workshops Business and Consultation Seminars 

Business Consultation 

PROVIDING BUSINESS 

INFORMATION RELEVANT 

INFORMATION RELEVANT 

TO BUSINESS 

TO BUSINESS 

Durban Chamber Online Newsletter 

Durban Chamber Online Newsletter 

Dispute Resolution 

Dispute 

Policy Focus 

Resolution 

Weekly Update 

Policy Focus Weekly Update 

Chamber Square, Lion Match, 

Office Park, 892 Umgeni Road 

Chamber Square, Lion Match, 

Durban, 4001 

Office Park, 892 Umgeni Road 

Durban, 4001 

www.durbanchamber.co.za 

3 

www.durbanchamber.co.za 

+27 31 335 1000 

+27 31 335 1000

Excellent service in 

your time of need 

matters to us. 

Metropolitan has been awarded the leader classification for the 

fourth year in a row by the South African Customer Satisfaction 

Index (SACSI). Furthermore, we have also been recognised 

by Ask Afrika as the 2019 Industry Winner in their 

Orange Index for Service Excellence. 

For your trust and continued partnership in 

helping us achieve what matters to you, 

we say thank you! 

Find out more at 

metropolitan.co.za 

Winner of multiple awards for 

service excellence. 

2016 

2017 

2018 

2019 

2018 

2019 

Metropolitan is part of Momentum Metropolitan Life Limited, an authorised

financial services (FSP 44673) and registered credit provider (NCRCP173). 

23595/E BLACK RIVER F.C.

Petroleum Agency SA is a key 

player in a vital sector 

South Africa’s oil and gas exploration and 

production sector an excellent investment 

As stated in the National Development Plan (NDP), the 

government’s intention is to “enable exploratory drilling 

to identify economically recoverable coal seam and 

shale gas reserves, while environmental investigations 

will continue to ascertain whether sustainable 

exploitation of these resources is possible. 

“If gas reserves are proven and environmental concerns 

alleviated, then development of these resources and 

gas-to power projects should be fast-tracked.” 

The plan also calls for the need to incorporate a greater 

share of gas in South Africa’s energy mix, through 

importing liquefied natural gas (LNG), using shale gas if 

reserves prove commercial, and developing infrastructure 

for the import of LNG, mainly for power production, 

over the short to medium term. 

Petroleum Agency SA plays an important role in developing 

South Africa’s gas market by attracting qualified 

and competent companies to explore for gas in the 

country, as well as monitoring and regulating their 

activities. In addition to ensuring operators always 

comply with the law, a major area of focus is increasing 

the inclusion of historically disadvantaged South 

African-owned entities in the upstream industry. South 

Africa needs large discoveries of indigenous gas as well 

as fair access to opportunities and social licence to 

develop a healthy gas market. 

Currently, natural gas supplies about just 3% of South 

Africa’s primary energy. A significant challenge facing 

the development of a major gas market in South Africa 

is the extreme dominance of coal as a primary energy 

source, and industry’s historic reliance on coalgenerated 

electricity. 

A lack of extensive gas transport and reticulation 

infrastructure goes hand in hand with this, while 

other challenges include uncertainty about volumes of 

indigenous gas available to industry; security of supply; 

switching and conversion costs; gas pricing; and negativity 

around the ongoing use of fossil fuels. End users 

require certainty before committing, while explorers 

look for a guaranteed market. 

On a more positive note, opportunities for gas lie in the 

realisation of South Africa’s NDP and the Integrated 

Resource Plan (IRP). Both call for indigenous hydrocarbons 

– conventional and unconventional – and 

independent power production to play an increasing 

role in the nation’s energy mix. 

The national power utility also intends to replace coalfired 

power stations with gas-fired counterparts, in line 

with the vision of the NDP. The advent of gas-fired power 

stations will represent a ready, indigenous market for 

operators that make discoveries of gas in South Africa, 

ensuring it will be far easier to monetise smaller discoveries 

that may otherwise have remained undeveloped. 

As custodian, Petroleum Agency SA ensures that 

companies applying for gas rights are vetted to make 

sure they are financially qualified and technically 

capable. Applicants also need to have a good track 

record in terms of oil and gas exploration activity, as 

well as regard for the environment. This applies to both 

local and foreign companies. Oil and gas exploration 

requires enormous capital outlay and can represent 

a risk to workers, communities and the environment. 

Applicants are therefore required to prove their capabilities 

and safety record and must carry insurance for 

environmental rehabilitation.

Driving South Africa’s emerging gas sector while ensuring a well-regulated 

and responsible environment is a key mandate of Petroleum Agency SA, as is 

assisting operators with monetising smaller discoveries that may otherwise 

remain undeveloped, through advertising these opportunities to potential partners. 

OUR VISION 

A diverse upstream industry 

contributing to energy security 

through sustainable growth in 

exploration and development 

of oil and gas. 

OUR MISSION 

To promote, facilitate and regulate 

exploration and sustainable develop- 

ment of oil and gas contributing 

to energy security in South Africa. 

SOCIAL AND LABOUR PLANS 

In addition, all planned activities can only be carried 

out after completion of an environmental impact 

assessment and under an approved environmental 

management plan, after consultation with the public 

as well as interested and affected parties. Explorers 

are also required to contribute to skills development 

through the agency’s Upstream Training Trust. 

Oil and gas exploration in South Africa is regulated 

in terms of the Mineral and Petroleum Resources 

Development Act (MPRDA) of 2002, which stipulates 

that applicants for production rights are required to 

submit social and labour plans (SLPs) to assist in 

transforming the industry, promoting employment and 

advancing social and economic welfare in South Africa. 

Applicants must develop and implement, where 

applicable, comprehensive SLPs that cover human 

resources-development programmes, community 

development, housing and living conditions, and 

employment equity. 

In addition to the MPRDA, other acts also regulate 

the sector – including the National Environmental 

Management Act, the Royalties Act, the Mining Titles 

Registration Act and the National Water Act. These 

acts and regulations have served the upstream industry 

well and are all in line with international standards. 

Minister of Mineral Resources Gwede Mantashe and 

President Cyril Ramaphosa have recently stated that 

oil and gas exploration and production activities should 

have their own standalone legislation, separate from 

that applicable to hard mineral mining. This legislation 

is being drafted and the agency is part of the team at 

the Department of Mineral Resources working on it. 

In today’s world, oil and gas remain the most critical of 

energy resources, and Petroleum Agency SA is in full 

support of those entering the South African oil and gas 

exploration and production industries. The Agency is 

fully committed to ensuring that our government and 

policy-makers sustain the sector for the benefit 

of all involved and will do everything in its power 

to advance the industry. 

ABOUT PETROLEUM AGENCY SA 

Petroleum Agency SA was established in 1999 by Ministerial directive and is 

mandated through the Mineral and Petroleum Resources Development 

Act, 2002 (Act No.28 of 2002) together with the National Environmental 

Management Act, 1998 (Act No.107 of 1998). These Acts provide for 

Petroleum Agency SA to evaluate and promote oil and gas potential 

exploration and production activities in South Africa, to regulate oil and gas 

exploration and the production industry and to archive all geotechnical data 

produced through oil and gas exploration. The Agency acts as an advisor to 

the government on issues regarding oil and gas exploration and production 

and carries out special projects at the request of the Minister.

CONTENTS 

CONTENTS 

KwaZulu-Natal Business 2020/21 Edition 

Foreword 10 

A unique guide to business and investment in KwaZulu-Natal. 

Special features 

Regional overview of KwaZulu-Natal 12 

Manufacturers are investing and export volumes are on the rise. 

KwaZulu-Natal’s ports are shaping up 18 

Construction of the Durban Cruise Terminal got underway in 2019. 

Economic sectors 

Agriculture 26 

Sugar 28 

Forestry and paper 29 

Mining 32 

Engineering 33 

Oil and gas 34 

Construction and property 35 

Tourism 36 

Manufacturing 40 

Automotive 41 

Energy 42 

Water 43 

Banking and financial services 44 

Education and training 45 

ABOUT THE COVER: The Port of Durban 

handles containers, automotive imports 

and exports, break-bulk and agricultural 

commodities. Transnet reported that the 

port handled 2.96-million twenty-foot 

equivalent units (TEUs) in 2018. The 

figure of 487 000 vehicles handled 

by the port in the same year was the 

highest since 2013. Photo: Transnet 

KWAZULU-NATAL BUSINESS 2020/21 

8

Africa Biomass Company 

Your caring family trading as world leaders in the wood chipping industry. 

WP CHIPPER HIRE & SALES trading 

as Africa Biomass Company (ABC) 

is a wood chipping company that 

provides wood recycling services, 

supplying biomass according to specification. 

ABC is one of the best go-to wood chipper 

equipment sales and services agents. 

Wood chipper services 

• Agricultural: orchard / vineyard recycling and 

mulch spreading 

• Biomass for generation 

Company 

of heat or electricity 

Slogan 

• Site clearing and preparation 

Buy your own Bandit wood chipper 

or hire us to deal with your biomass 

Bandit the only logical choice for wood chippers in 

Africa, which are now fitted on SABS-approved trailers. 

ABC understands wood recycling 

With a comprehensive understanding of the operational 

challenges of wood recycling in South Africa, 

Company 

ABC has established state-of-the-art Slogan facilities to service, 

repair and rebuild wood chipper equipment of 

any brand and size. ABC’s facilities are operated by a 

remarkable team of very experienced and suitably 

qualified engineers, technicians and artisans. 

An equally remarkable team of field-service 

technicians deliver repairs, maintenance and parts 

A small selection of Bandit wood chippers (from left to right): Model 75XP Engine; Model 65XP PTO 

and the Intimidator 12XPC. 

• River rehabilitation in riparian zones 

to clients’ sites to optimise uptime and efficiency. 

Africa Biomass Company is the authorised dealer Become an owner of a Bandit chipper 

• Workshop, field services, parts and spares For more information on the Bandit, see page 27. 

for Bandit Industries in Southern Africa. 

All existing and new customers are welcome 

• Operator training services: SETA-certified 

ABC has built up a substantial fleet of Bandit to contact us if they want to become the 

• Manufacturing workshop wood chippers for use by the company The most as part experienced 

owner of the top-class range of Bandit 

of our wood recycling services, but ABC also 

biomass producer equipment. in Bandit Africa Industries have delivered 

offers a whole range of Bandit wood chippers successful recycling solutions to basically 

The X-factor in wood chippers to clients who want to invest in the Bandit range. every corner of the planet. 

Bandit chippers are designed Dimensional with quality, wood chips are produced by the removal 

ABC is the authorised dealer for Bandit production wood and chippers longevity in mind. of alien Hand-fed invasive A trees commitment in riparian to zones, support previously 

chippers are mounted on custom-built, SABSapproved 

trailers. Owning a Bandit wood Africa Biomass Company is fully equipped 

in Africa. Bandit combines first-world technology and deemed as impossible. ABC, however, now has 

experience with third-world functionality. chipper will always This makes put you in the front knowledge seat of and and stocked technology to service and to get repair the any job Bandit 

reliable wood chipping operations. 

machine anywhere in South Africa. We own 

done. These wood chips are then used 

In many cases, the Bandit wood chipper sets a fully-equipped parts warehouse (650m²), 

the benchmark for other brands in the wood in agri-industrial manufacturing applications department as as well a greener 

alternative services to ensure to coal that for parts either are always heat readily or 

as field 

chipping industry. We are ready to supply the 

right Bandit wood chipping solution with advice available and our own, as well as our clients’ 

electricity production. 

and aftercare to your doorstep. All existing and Bandit wood chippers are not out of commission 

new customers are welcome to contact us to longer than they have to be. 

become the owner of Bandit equipment. Geographical www.abc.co.za footprint 

ABC is located in Worcester (Western 

Cape), Kirkwood (Eastern Cape), 

Nelspruit (Mpumalanga) and Upington 

(Northern Cape). 

We operate in all nine provinces in 

South Africa and also across the 

borders into Sub-Saharan Africa, including 

Namibia, Botswana, Zimbabwe, 

Mozambique, Zambia, Malawi, 

Tanzania, Kenya and Nigeria. ■ 

9 WESTERN CAPE BUSINESS 2020 

www.abc.co.za

FOREWORD 

KwaZulu-Natal Business 

A unique guide to business and investment in KwaZulu-Natal. 

Credits 

Publisher: Chris Whales 

Publishing director: 

Robert Arendse 

Editor: John Young 

Managing director: Clive During 

Online editor: Christoff Scholtz 

Art director: Brent Meder 

Designer: Simon Lewis 

Production: Lizel Olivier 

Ad sales: Gavin van der Merwe, 

Sam Oliver, Jeremy Petersen 

Gabriel Venter, Vanessa Wallace, 

Themba Khumalo, Shiko Diala 

and Sandile Koni. 

Administration & accounts: 

Charlene Steynberg 

and Natalie Koopman 

Distribution & circulation 

manager: Edward MacDonald 

Printing: FA Print 

The 2020/21 edition of KwaZulu-Natal Business is the 12th 

issue of this highly successful publication that, since its 

launch in 2008, has established itself as the premier business 

and investment guide for the KwaZulu-Natal Province. 

In addition to the regular articles providing insight into each of the 

key economic sectors of the province, there is a special feature on the 

vital role played by ports in the province, from the coal exported from 

Richards Bay to the new cruise liner terminal addition to the Port of 

Durban. The 10th anniversary of the 2010 FIFA World Cup coincides 

with the birthday of the Moses Mabhida Stadium, an iconic design that 

has become a standard feature on the KwaZulu-Natal sporting and 

events calendar. Likewise the Durban ICC which continues to burnish 

the province’s reputation as meetings and convention centre. 

To complement the extensive local, national and international 

distribution of the print edition, 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 complementary business-to-business titles that cover all 

nine provinces, our flagship South African Business title and the 

new addition to our list of publications, African Business, which was 

launched in 2020. ■ 

Chris Whales 

Publisher, Global Africa Network Media | Email: 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, airport 

lounges, provincial government departments, municipalities 

and companies. 

Member of the Audit Bureau 

of Circulations 

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 

ISSN 1995-1310 

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 | Bell Equipment, Bidvest, Enterprise iLembe, eThekwini 

Municipality, Hulamin, Illovo Sugar, iStock, KZN Department of Education, 

Mondi, Moses Mabhida Stadium/Kevin Sawyer, MSC Cruises, RBM Mines, 


10 

Transnet National Port Authority, Umgeni Water, WK Construction. 

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.

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11 KWAZULU-NATAL BUSINESS 2020/21

SPECIAL FEATURE 

A regional overview 

of KwaZulu-Natal 

By John Young 

Manufacturers are investing in the province and export volumes are on 

the rise as the province’s two main ports upgrade and expand. 

Almost a third of South Africa’s 

manufactured exports are produced in 

KwaZulu-Natal. A number of domestic 

and international manufacturers are 

either buying into the province or building new 

facilities in order to export finished goods. 

The Mara Group’s R1-billion investment in 

a smartphone factory at the Dube TradePort 

is the latest in a string of inward investments 

that KwaZulu-Natal has received. This includes 

expenditure of more than R1.2-billion by Arçelik, 

the Turkish owner of Defy, at the company’s three 

South African plants (two of which are in the 

province) and R4.5-billion by Nyanza Light Metal in 

a titanium dioxide pigment plant at Richards Bay. 

The Special Economic Zones (SEZs) at Richards 

Bay and King Shaka International Airport (the 

Dube TradePort) are key components of the 

strategy of attracting investors to the province. 

Dube TradePort attracted R7-billion between 

2012 and 2019 and the same amount is expected 

to accompany the development of Phase 1A 

and Phase 1F of the Richards Bay Industrial 

Development Zone (RBIDZ). 

Two investors in 2019 were edible oils 

manufacturer Wilmar Processing SA, which is 

investing more than R1-billion in a plant, and 

Elegant Afro Line, which will spend about R900- 

million on its chemicals plant. 

There are plans to establish a clothing and 

textiles SEZ in the province to build on the 

province’s established strength in the sector and 

an automotive supplier park will be in operation 

by 2021. Toyota and Bell Equipment play a big 


12


role in the automotive sector while the Engen Oil 

Refinery is a strategic asset. 

The province’s existing infrastructure, good soils 

and fine weather provide a solid base for future 

growth. KwaZulu-Natal already has significant 

capacity in heavy and light manufacturing, agriprocessing 

and mineral beneficiation, all of which 

is supported by South Africa’s two busiest ports 

(Richards Bay and Durban), the country’s busiest 

highway (the N3), a modern international airport 

and pipelines that carry liquids of all types to and 

from the economic powerhouse of the country 

around Johannesburg in the interior. 

Sappi’s dissolving pulp mill at Umkomaas 

south of Durban (below) is one of the province’s 

most significant industrial sites as it produces huge 

quantities of a material that is used in viscose staple 

fibre, which in turn is used in clothing and textiles. 

Together with production volumes from Sappi’s 

mill in neighbouring Mpumalanga province, the 

company is the world’s largest manufacturer of 

dissolving pulp. Sugar, tourism and forestry and 

paper are other important sectors driving growth 

and employment in KwaZulu-Natal. 

In his 2020 State of the Province address, 

Premier Sihle Zikalala listed the sectors which are to 

be targeted for investment in the future. These are: 

• Aloe processing 

• Bio-ethanol 

• Renewable energy 

• Fish processing 

• Innovation hubs 

• Oceans Economy. 

KwaZulu-Natal has a long coastline that stretches 

from Port Edward in the south to the iSimangaliso 

Wetland Park in the north. The province’s contact 

with the sea has brought obvious benefits: fishing, 

fine beaches enjoyed by millions of tourists and 

two great ports. 

These ports export vast quantities of minerals 

(mostly through Richards Bay) and manufactured 

goods (Durban) and serve as an important conduit 



for imports of all sorts. The Richards Bay Coal 

Terminal exports massive quantities of coal while 

the Port of Durban is the busiest port in Africa. 

However, planners want to 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 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 Oceans Economy dovetail 

with ongoing projects to boost the capacity of the 

province’s ports and to explore for gas and oil in 

the Indian Ocean. If oil rigs were to start visiting 

the KZN coastline on a regular basis, the shiprepair 

industry would grow exponentially. 

The Oceans Economy is one of the focus areas 

that has been chosen by national government 

to be part of Operation Phakisa, a focused, goaldriven 

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 in line with an “Oceans 

Economy” approach. 

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 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 

KwaZulu-Natal has 10 district municipalities and 

a metropolitan municipality, the most of any 

province in South Africa. 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. 

The promenade now reaches all the way to the 


14


harbour and the Point development will benefit. 

Major investments are taking place at the Port of 

Durban with the current centrepiece being the 

Convention 

Durban Cruise 

Centre 

Terminal. 

Complex, 

The Container 

which 

Terminal 

hosts the 

is 

annual also undergoing Tourism Indaba. an extensive overhaul. 

The Durban’s province's conference climate lends facilities itself are to well every utilised, kind of 

outdoor but many pursuit opportunities and its excellent still exist beaches in chemicals are always 

popular. and industrial Big sports chemicals, events are food regularly and beverages, hosted in 

KwaZulu-Natal, infrastructure development which has become and tourism. something Further of 

a south, home plans to mass-participation are in place to upgrade events such Margate’s as the 

Comrades airport and Marathon Port Shepstone’s and the Dusi beachfront. Canoe race. The 

province has excellent game and nature reserves. 

Western Isimangaliso region Wetland Park is a World Heritage Site 

and helps to fund 80 small businesses associated 

with Also its known business as as the a tourist Midlands, site. this is a fertile 

agricultural The building region of the which King hosts Shaka the International popular 

Airport 

annual 

to 

Royal 

the north 

Show. 

of 

It 

Durban 

produces 

allows 

sugar 

tourists 

cane, 

to 

fruit, 

get 

animal products, forestry and dairy products. 

to superb beaches and game farms very quickly, 

Pietermaritzburg is the provincial capital and 

and the airport has its own industrial development 

home to a major aluminium producer along with 

zone, the Dube TradePort. New international direct 

several manufacturing concerns, including textiles, 

flights 

furniture, 

have 

leather 

been 

goods 

announced; 

and food. 

4.5-million 

The city has 

passengers 

good 

transport 

passed 

links 

through 

along 

the 

the 

airport 

N3 national 

in 2014/15, 

highway, 

almost 

300 excellent 000 of whom schools were and foreign a lively visitors arts or tourists scene. (ACSA). The 

Midlands Meander is a popular tourist destination. 

Geography 

Eastern region 

The Although mixed topography most of this of area the province is very rural, allows Richards for varied 

Bay agriculture, is one of animal the country’s husbandry industrial and horticulture. hotspots 

The because lowland of area its coal along terminal, the Indian port Ocean and aluminium coastline 

is smelters. made up The of subtropical Richards Bay thickets Industrial and Development 

Afromontane 

Forest. Zone High (RBIDZ) humidity is a major is experienced, economic node especially in itself in 

the and far with north, the and possibility this is a summer of a power rainfall plant area. being The 

centrally built, the located RBIDZ Midlands could become is on a an grassland energy hub. plateau 

Mining 

among 

is an 

rolling 

important 

hills. 

sector 

Temperatures 

in this region. 

generally 


get colder in the far west and northern reaches of 

the province. The other major urban 

The mountainous centre area is in Empangeni the west which – the 

Drakensberg – comprises has solid several walls educational 

of basalt and 

is the source of the region’s institutions. many strongly The running King 

rivers. Regular and heavy Shaka winter International 

snowfalls support 

tourist enterprises. The Airport Lubombo is adjacent Mountains to in the the 

north are granite formations Dube TradePort, that run in a parallel. Special 

Economic Zone (SEZ) which 

is attracting investors. 

Regions 

Northern region 

KwaZulu-Natal has 11 district municipalities, the 

The economic powerhouse is Newcastle in the 

most of any province in South Africa and, in economic 

north-west: coal mining, steel processing and 

manufacturing 

terms, the province 

are major 

offers 

activities. 

diverse 

Some 

opportunities. 

old coal 

Southern 

mines are being 

region 

reopened by new coal companies 

to cater for the country’s power stations’ demand 

This for the area fuel. is the Game province’s farms, most trout populous. fishing and The hiking city of 

Durban are part has of an experienced attractive package booms in for sectors tourists, such and as 

automotive, Zululand is ICT, a popular film and destination call centres. for Major cultural investments 

experiences. are taking The place region at the is rich Port in of Anglo-Boer Durban and 

there War history a possibility which that includes the old battle airport sites south such of as the 

city Islandlwana could become and Rorke’s another Drift. port, ■ if the money can be 

Standerton 

N5 

LESOTHO 

Vrede 

Free State 

Harrismith 

Volksrust 

Newcastle 

Glencoe 

N11 

Paulpietersburg 

Utrecht 

Dundee 

Vryheid 

uLundi 

Pongola 

Nongoma 

Hlabisa 

Mtubatuba 

Ladysmith 

R74 

Melmoth 

Bergville 

N3 Colenso 

eMpangeni 

R74 

Winterton 

Kranskop 

Estcourt 

Greytown 

Gingindlovu 

Mooi River 

R33 

Stanger Darnall 

Howick 

N2 

Tongaat 

Ballito 

PIETERMARITZBURG 

N3 

uMhlanga 

Underberg 

Pinetown 

DRAKENSBERG 

Kokstad 

N2 

N17 

Bethal 

Eastern Cape 

Ermelo 

Mpumalanga 

iXopo 

Harding 

N17 

KWAZULU-NATAL PROVINCE 

N3 

N11 

R56 

Piet Retief 

R34 

R33 

uMzinto 

N2 

R33 

R68 

Hibberdene 

uMtentweni 

Port Shepstone 

Margate 

Southbroom 

Port Edward 

N2 

R34 

DURBAN 

aManzimtoti 

uMkomaas 

SWAZILAND 

R69 

R65 

R66 

INDIAN OCEAN 

Mkuze 

N2 

Hluhluwe 

Richards Bay 

Motorway 

Main Road 

Railway 

MOZAMBIQUE 

St Lucia 

N 

KWAZULU-NATAL BUSINESS 2016/17 

14 15 KWAZULU-NATAL BUSINESS 2020/21


KwaZulu-Natal’s ports are shaping 

up to receive more ships 

Construction of the Durban Cruise Terminal got underway in 2019. 

MSC Orchestra arrives in Durban on maiden visit. Image: MSC Cruises 

The KwaZulu Cruise Terminal (KCT) 

consortium has won the contract from 

Transnet National Ports Authority (TNPA) 

to finance, build and run the new Durban 

Cruise Terminal. The terminal is expected to start 

functioning for the 2020/21 cruise season. 

Within the Port of Durban there are a number 

of specialised facilities. One of the busiest is the 

Container Terminal and that is the subject of a 

large upgrading project. The Port of Richards 

Bay, the link to the world for South Africa’s coal 

exporters, is constantly adding to its facilities, the 

latest being a floating dock, for which approval has 

been given to be constructed within the port. 

The cruise terminal is an important step 

forward for Durban and fits in well with the 

larger project that links the port to the upgraded 

southern end of the promenade, the Durban Point 

Waterfront. A joint venture between MSC Cruises 

SA and Africa Armada Consortium, KCT will spend 

about R220-million on the financing‚ construction‚ 

maintenance and operation of the cruise terminal 

for a 25-year concession period. Construction 

began in 2019. 

The cruise terminal will cover a 32 000m² area 

that will cater for two ships and at least 5 000 

passengers. A ship with 2 000 passengers is worth 

in the region of R2-million per day for the host city. 

The number of annual passengers is expected 

to grow from the current 200 000 to more than 

700 000 by 2040. Durban’s hosting of 60 ships 

per annum is expected to rise to 150 or more. 

South Africa attracts 0.5% of the world’s cruiseship 

market which comprises about 15.4-million 

passengers annually. 

MSC Musica uses Durban as her base port 

and is joined by MSC Opera during the summer 

months, sailing from Durban to Mozambique and 


18


other destinations in the Indian Ocean. A popular 

offering is the “Tour to Nowhere” cruise. In 2019 

MSC Orchestra made its first visit to Durban. 

Container terminal 

Several projects are underway within the Port of 

Durban to increase capacity. Transnet National 

Ports Authority (TNPA) and Transnet Port Terminals 

(TPT) are combining to upgrade infrastructure 

and buy new equipment to improve efficiencies 

at the Ro-Ro terminal (vehicles and break bulk) 

and Maydon Wharf (mixed cargo and agriculture) 

but the biggest project is at the Durban Container 

Terminal (DCT). 

DCT has a capacity of 3.6-million TEUs (twentyfoot 

equivalent units) and the current project aims 

to extend that beyond five-million TEUs. The Brics 

New Development Bank has approved a loan of 

$200-million for the DCT expansion project. 

Drydock 

Durban’s drydock complex is undergoing a series 

of refurbishments and upgrades. The R48-million 

35m outer caisson was the first project to be 

completed and now it’s the turn for the inner 

caisson and drive system to be fixed, at a cost of 

R61.5-million. Two Durban companies, Lodemann 

(Managing Contractor) and Channel Construction 

(Design and Build), are responsible for the project, 

which will ensure the sustainability of the shiprepair 

sector within the port. 

TNPA states that the multiplier effect in the 

marine sector creates five jobs for every direct 

job. The drydock project created direct jobs for 29 

skilled employees. 

Richards Bay 

The Richards Bay Coal Terminal (RBCT) is the key 

component of the port on the northern coast 

of KwaZulu-Natal but the port’s managers and 

associated Special Economic Zone (SEZ) are looking 

to diversify beyond the other types of freight 

which also form part of the port’s key mandate. 

Chief among the diverse offerings being 

looked at are alternative energy generation and 

opportunities in the gas sector. A feasibility study 

is being done on a gas-to-power plant and a large 

new liquid petroleum gas import and storage 

terminal was recently built for Petredec by Bidvest 

Tank Terminals. 

Ship repair is another option which will open 

up other opportunities in marine manufacturing. 

TNPA has approved in principle the 

construction of a floating dock near the existing 

Small Craft quay. TNPA will have to create new 

onshore infrastructure and do some dredging 

before it can call for tenders from the private sector 

to build the dock, which would be able to handle 

large and ultra-large cargo vessels (Capesize). 

Richards Bay is a deepwater port. Among its 

13 berths are terminals that handle dry-bulk ores, 

minerals and break-bulk cargo. 

The quay of the Richards Bay Coal Terminal 

(RBCT) is 2.2km long with six berths and four shiploaders. 

The 276ha site contains a stockyard that 

can store 8.2-million tons while the terminal itself 

has a design capacity of 91-million tons per year. 

More than 900 ships visit RBCT every year. ■ 

Drydock construction. Image: Transnet 


ADVERTORIAL 

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At the heart of Nedbank’s business strategy is its belief that 

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Business Banking in KwaZulu-Natal 

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ADVERTORIAL 


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AIMED AT CREATING JOBS AND 

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Nedbank’s Provincial Manager of Retail Relationship Banking 

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committed to partnering with businesses for growth. 

‘ 

Small businesses are the mainstay of 

the economy and Nedbank provides 

small-business owners with support 

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‘Covid-19 has dealt entrepreneurs a major 

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certain relief aids available. Nedbank is 

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Nedbank helped facilitate 

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’ 

way in which Nedbank is helping small 

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ADVERTORIAL 


NEDBANK BUSINESS BANKING 

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Matthew Moore, Nedbank’s Provincial Business Banking 

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‘ 

At Nedbank Business Banking we 

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Our bigger-picture banking approach 

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’ 

employment and investment. ‘By using our 

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To this end Nedbank has developed 

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If you are interested in taking your business 

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ADVERTORIAL 


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Nedbank is committed to delivering easy and innovative 

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‘ 

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’ 

money management training, equipping 

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OVERVIEW 

KEY SECTORS 

Overviews of the main economic sectors of KwaZulu-Natal 

Agriculture 26 

Sugar 28 

Foresty and paper 29 

Mining 32 

Engineering 33 

Oil and gas 34 

Construction and property 35 

Tourism 36 

Manufacturing 40 

Automotive 41 

Energy 42 

Water 43 

Banking and financial services 44 

Education and training 45 


24

OVERVIEW 

Port of Richards Bay 

Pic: Transnet National Ports Authority 


OVERVIEW 

Agriculture 

Small-scale farmers are set to benefit from the value chain. 

Sector Insight 

South Africa gets 18% of its 

milk from KwaZulu-Natal. 

In 2018 a summit was held to draw up an Agricultural Development 

Masterplan for the province. The plan includes priorities such as the 

expansion of irrigable land, improving market access for producers 

and adding value to agricultural products before they reach local 

and international markets. 

The Provincial Government of KwaZulu-Natal wants to use 

government’s buying power to develop agricultural value chains for 

the benefit of new and small-scale farmers and producers. A pilot 

programme is running in three districts and the eThekwini metro. 

A group of women farmers from uMkhanyakude supply Enterprise 

iLembe with 1 000 crates of tomatoes as part of the project. 

Enterprise iLembe is the development arm of the iLembe District 

Municipality and is looking for investors to further develop an agriprocessing 

hub near the King Shaka International Airport and Dube 

TradePort. Among the new lines of agricultural produce being 

investigated is cannabis. A Cannabis Investor Protocol has been 

launched and a unit established at the Moses Kotane Institute to assist 

entrepreneurs and cultivators. 

There are only 16 farmers in 

all of South Africa doing what 

Ross Lowe does on his farm in 

Richmond, which is to cultivate 

golden kiwifruit. He believes that 

the particular strain of kiwifruit 

he has chosen is the best in 

terms of taste and yield and he 

has awards to prove it. Typically 

for the modern KwaZulu-Natal 

farmer, he also intends to 

increase his export volumes. 

So-called superfoods have 

potential to grow the agricultural 

sector via greatly increased 

exports: these include avocados, 

pecans and dates. Another 

possibility is macadamia nuts 

(already a thriving sector in other 

parts of the country) and in new 

areas such as cannabis and the 

farming of rabbits. 

The National Department of 

Rural Development and Land 

Reform (DRDLR) has launched 

an Agri-parks programme to 

support small-scale farmers 

and to boost other businesses 

related to agriculture such 

as abattoirs and transport 

operators. KwaZulu-Natal is one 

of four provinces where pilot 

projects have been carried out. 

The plan is to have an Agripark 

in each of South Africa’s 

44 district municipalities with 

farmers owning at least 70% of 

the venture. 


26

OVERVIEW 

BANDIT – EXPERIENCE THE BEST OF BOTH WORLDS 

First-world technology and quality combined SABS-approved roadworthy trailers built at Africa 

with African simplicity. The main woodchipper Biomass Company in Worcester, South Africa. 

unit is manufactured by Bandit Industries, Inc. Engine-powered woodchippers are fitted 

with 35-plus years’ experience with Tier 3, South African standard, diesel or 

in innovation and international petrol engines, depending on the woodchippers’ 

research. These units specification or clients’ preference. Electric and PTO 

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www.abc.co.za 

There are three components 

to the fully realised Agri-park 

concept: 

• Farmer Production Support 

Unit: links farmer with 

markets, collection and shortterm 

storage, local processing 

and mechanisation. 

• Agri-hub: equipment-hire, 

processing, packaging, 

logistics and training. 

• Rural Urban Market Centre: 

contract-based links to local 

and international markets, 

long-term storage and 

market intelligence. 

Agriculture is the focus of a 

wide-ranging initiative in the 

Ulundi district. A grouping called 

ULUMA has been formed which 

aims to help farmers, SMMEs 

and co-operatives to benefit in 

a holistic way from the produce 

they farm. The Zululand District 

Farmers Association, several 

other NGOs and Standard Bank 

are working together with 

the Mangosuthu University 

of Technology (MUT) and the 

Innovation and Technology 

Business Incubator (Invotech) 

to expose farmers to new issues 

and techniques. 

Agricultural assets 

Of KwaZulu-Natal’s 6.5-million hectares of agricultural land, 18% 

is arable and the balance is suitable for the rearing of livestock. The 

province’s forests occur mostly in the southern and northern edges of 

the province. The coastal areas lend themselves to sugar production 

and fruit, 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. 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. 

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. 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. Vegetables grow 

well in most areas, and some maize is grown in the north-west. Nuts 

such as pecan and macadamia thrive. 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 

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

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

KZN Dept of Agriculture & Rural Development: www.kzndard.gov.za 

Milk Producers Organisation: www.mpo.co.za 

National Dept of Agriculture, Forestry & Fisheries: www.daff.gov.za 

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


OVERVIEW 

Sugar 

Tongaat Hulett is undergoing massive restructuring. 

In June 2019 share trading in Tongaat Hulett was suspended. Many 

accounting irregularities came to light and the upshot was that 

the company was forced to restructure to pay off huge debts. 

This comes at a time when the sugar industry is described in 

Engineering News as being “in the intensive care unit” by the Executive 

Director of the South African Sugar Association (SASA). 

Sales into the Southern African Customs Union (SACU) have 

markedly declined in recent years but under a SACU protocol, Eswatini 

will sell about 500 000 tons to South Africa, free of any duty. 

Among the measures taken by Tongaat Hulett are the sale of its 

starch business to Barloworld (for R5.3-billion) and sale of 5.18% of the 

company’s shares to Evanstan Investments, which now becomes one 

of the company’s biggest investors. 

KwaZulu-Natal is South Africa’s biggest sugar producer. Most 

of South Africa’s 14 sugar mills are in KwaZulu-Natal, as are the 

headquarters of the biggest companies. The industry employs 65 000 

directly and indirect employment is estimated at 350 000. About 40% 

of local production is exported. The SACGA represents in the region 

of 23 000 growers (including 651 small-scale farmers) who produce 

around 20-million tons of cane. In the 2019/20 season, about two-million 

tons of saleable sugar was produced. A new industry structure, allowing 


South African Cane Growers’ Association: www.sacanegrowers.co.za 

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

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

Sugar Milling Research Institute: www.smri.org 


South Africa will receive 

half-a-million tons of dutyfree 

Eswatini sugar. 

for multiple grower associations, 

has been agreed to by the 

SACGA, the Department of Trade, 

Industry and Competition (dtic) 

and the relevant parliamentary 

portfolio committee. 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. Diversification is vital for 

the future of sugar producers 

and power generation will be an 

important part of that. 

Illovo and Tongaat Hulett are 

the major operators of sugar mills. 

Other millers are Gledhow, ULC, 

Umfolozi and Tsb (which has a 

further two mills in Mpumalanga). 

Illovo has four mills, three sugarcane 

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-amillion 

tons of sugar. It also has a 

molasses mixing plant. ■ 


28

Forestry and paper 

Mondi and Sappi are global giants. 

OVERVIEW 


Mondi’s primary listing has 

moved to London. 

The Mondi Group, which has distinct KwaZulu-Natal roots, has 

grown into an international behemoth with 26 000 employees 

and operations in more than 30 countries. In 2019 

Mondi announced that its primary listing will from now on be 

in London and the JSE will carry the company’s secondary listing. The 

company, whose forestry operations are shown here, will spend more 

than R8-billion on its South African operations in the period to 2023. 

Mondi’s Merebank Mill produces a range of office paper products 

including the well-known brand, Mondi Rotatrim. Uncoated woodfree 

reels are manufactured for the South African and Sub-Saharan African 

markets. At Richards Bay, eucalyptus fibre is used to make a premiergrade 

bleached hardwood pulp and a white top kraft linerboard is also 

produced. Major investments at Richards Bay have not only increased 

the number of products being made, but improved air quality, reduced 

water consumption and reduced the amount of solid waste produced 

on the site. 

The export of about one-million tons of dissolving wood pulp 

earned Sappi the winner’s trophy in the “Large Exporter” category 

at the KZN Exporter of the Year Awards in 2019. Approximately 220 

TEU equivalent containers (20-foot containers) of Sappi products pass 

through the Durban Port every day. 

The long-running awards ceremony is hosted by the Durban 

Chamber of Commerce. Sappi was also a winner at the first KwaZulu- 

Natal Investor Awards, a Trade and Investment KZN (TIKZN) event. On 

that occasion Sappi won the category “Investor operating in KZN with 

a Global Footprint.” 

Sappi has a considerable global footprint:19 production facilities 

on three continents (of which five are in Southern Africa) and 12 800 

employees in over 35 countries. 

Sappi’s Stanger Mill is 

situated close to sugar fields 

from which it takes bagasse 

(dry sugar cane pulp) for use in 

its production processes. Typek 

office paper is made at this 

mill, which has the capacity to 

produce 80 000 tons of paper 

and 30 000 tons of tissue. 

At the company’s Tugela Mill 

up to 200 000 tons per annum 

of containerboard (corrugating 

medium) can be manufactured 

from recycled and virgin fibre. 

It also produces 25 000 tons of 

lignosulphonate in powder form 

and 35 000 tons per annum of 

liquid product. 

A big focus for Sappi is 

dissolving wood pulp which 

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 giant Sappi Saiccor 

mill 50km south of Durban is 

the world’s biggest manufacturer 

of dissolving wood pulp. 

The mill’s capacity is being 

increased to 890 000 tons via 

a multi-year investment project 

called Project Vulindlela. 

A total of R7.7-billion has been 

allocated to the project which 

will result in more than 2 000 

construction jobs and about 120 

full-time jobs. 


OVERVIEW 

EXTENDED PRODUCER RESPONSIBILITY MAKES THE CIRCULAR ECONOMY BIGGER AND BETTER 

By paying their dues towards an extended Pulp for rayon, sponges, and cellophane. Many 

producer responsibility (EPR) programme, paper of these products are recyclable, which means 

manufacturers, importers and brand owners can they can be diverted from landfill and made into 

extend their producer responsibility beyond their new products. Process waste is used to make 

own factories and their customers’ hands. compost, biochar and fertiliser for the agricultural 

Pulp and paper products are made from sector and the young seedlings that 

sustainably farmed trees. Certified to international are destined to replace 

forestry standards, South Africa’s plantations are harvested trees. 

the source of thousands of everyday products. 

Copy paper. Newspapers. Tissue. Packaging. www.fibrecircle.co.za 

Nampak produces crêpe 

paper at Verulam and Rafalo 

produces tissue paper. SA Paper 

Mills is another paper producer. 

Mpact’s upgrade of its 

Felixton mill has increased capacity 

and improved efficiency. 

The project cost R765-million 

and takes overall production 

up to 215 000 tons and a 

lightweight container-board 

option has been included in the 

product lines. This is in response 

to market demand for lighter 

packaging. Mpact has plastics 

and paper operations, with the 

paper section divided into three 

divisions: paper manufacturing, 

corrugated and converted paper 

products and recycling. 

Timber 

The National Department 

of Agriculture, Forestry and 

Fisheries reports that South 

Africa has a shortage of sawn 

timber. TWK has announced that 

it wants to buy 11 000 hectares 

of forest land to support its 

woodchip sales and timber 

exports. TWK, which listed on 

ZAR X in 2017, runs a woodchip 

production and export facility 

in Richards Bay, with an annual 

capacity of 900 000 tons of woodchips. Two kinds of woodchip are 

produced: Acacia mearnsii and mixed eucalyptus. Exports are primarily 

to pulp and paper producers in India, China and Japan. Demand for 

woodchips was exceptionally high in the first half of 2019, but this led 

to an oversupply and a dip in prices in the second half of the year. 

The KwaZulu-Natal provincial government’s strategy of creating 

Industrial Economic Hubs (IEHs) includes the development and 

expansion of wood processing in the Harry Gwala District Municipality. 

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 

South Africa devoted to forestry – 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, and in other parts of South Africa. 

The Merensky Group operates one softwood sawmill and 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 timber-marketing entity with 1 800 

shareholding members, representing a total area of 300 000ha. R&B 

Timber Group has three pole treatment plants and is headquartered in 

Harding. Natal Forest Products, a Richmond-based company, is part of 

the R&B Group. Flaxton Treated Timbers operates out of Ixopo. ■ 


Forestry South Africa: www.forestry.co.za 

KwaZulu-Natal Department of Agriculture and Rural Development: 

www.kzndard.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.tappi.org 


30

PRODUCER RESPONSIBILITY ORGANISATION 

Is your brand going 

to the dump? 

Take responsibility for 

your product's end-of-life. 

Paper and paper packaging producers pay 

voluntary extended producer responsibility fees. 

Be part of the solution. Join Fibre Circle. 

www.fibrecircle.co.za 

• PAPER • BOXES • BAGS • BEVERAGE CARTONS • LABELS • PAPER CUPS • CARTONS • SACK KRAFT •

OVERVIEW 

Mining 

Titanium dioxide is made from minerals mined in northern KwaZulu-Natal. 

The crisis affecting South Africa’s power utility, Eskom, is causing 

South32, the Australian owners of the Hillside aluminium 

smelter, to rethink their operations there. Some analysts 

have suggested that part of the reason that Eskom is in crisis 

is the bad pricing arrangements that were signed with the previous 

owners of the smelter. If the advantageous rates that used to apply 

are not repeated when the price is negotiated again in 2020, the 

business model will have to change. In 2019 about 400 workers took 

early retirement or voluntary retrenchment packages. 

Images: RBM Mines 

Most of the product from the smelter (high-quality primary 

aluminium ingot) is exported but some liquid metal form is sent to 

Isizinda Aluminium which supplies Hulamin, a company that has had 

a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major 

aluminium rolling operator in the region and it makes rolled products 

and extrusions. 

Other processing facilities in the province include the steel plant 

owned by ArcelorMittal in Newcastle and Safa Steel’s metal-coating 

factory in Cato Manor. 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. 

Tata Steel KZN’s high-carbon ferrochrome plant at Richards Bay 

went into business rescue and then liquidation before being bought 

by Luxembourg-based Traxys Africa in the middle of 2016, after a 

court ruled in its favour. Traxys has chrome mines in Mpumalanga and 

Limpopo provinces. Tata Steel did not have its own mines. 


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

Minerals Council South Africa: www.mineralscouncil.org.za 

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


The Hillside aluminium 

smelter is grappling with 

electricity issues. 

The KZN Sands mineral 

sands operation comprises a 

central processing complex in 

Empangeni and the Fairbreeze 

Mine. Expenditure over several 

years (which started in 2016) is 

expected to rise to R5-billion 

as it expands. Tronox, which is 

listed on the New York Stock 

Exchange, is the major shareholder 

in KZN Sands. 

Some of the coalfields of 

the province have been revived. 

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. 

Finnish company Metso is 

spending about R53-million on 

building a second furnace at its 

Isithebe foundry in the iLembe 

District Municipality. This is in 

response to increased demand 

for large crusher wear parts. The 

KwaZulu-Natal foundry is one of 

five foundries the company runs 

on four continents. ■ 


32

Engineering 

The engineering sector needs a reliable supply of steel. 

One of the largest independent wire manufacturers in the 

country, Hendok Group, is steadily increasing its exports to 

other African countries. With more than 1 000 employees 

at the factory in the Phoenix Industrial Park in Durban, the 

company makes a wide variety of wires and is the country’s biggest 

producer of nails. ArcelorMittalSA is Africa’s biggest steelmaker and it 

has a plant at Newcastle, but tough times in the steel business have 

meant that the company has shut down some of its facilities. The first 

to be shuttered was Saldanha in the Western Cape and an analysis of 

the profitability of other centres is underway. 

Western Aqueduct project. Image: WK Construction 

Marine repair and engineering form a significant sector in the 

province, with established companies such as EBH South Africa 

offering comprehensive services at the ports of Durban and Richards 

Bay. Both ports are expanding and will continue to attract engineers. 

Dormac, which is headquartered in the Bayhead area of the Port 

of Durban, is best known for its marine engineering but it offers 

specialised services to the sugar industry and provides machinery for 

industrial giants like Toyota and Defy. 

A big project that has created a lot of work for engineers is the multiyear 

Western Aqueduct project to bring fresh water to greater Durban. 

The Western Aqueduct Joint Venture comprising three companies, 

Knight Piésold Consulting, Naidu Consulting and Royal Haskoning 

DHV, acted as agents for eThekwini Water and Sanitation. Stefanutti 


Consulting Engineers South Africa: www.cesa.co.za 

Engineering Council of South Africa: www.ecsa.co.za 

Southern African Institute for Industrial Engineering: www.saiie.co.za 

South African Wire Association: www.sawa.co.za 

OVERVIEW 


The School of Engineering 

at UKZN offers great variety. 

Stocks Pipelines played a big role, 

and there were opportunities 

for excellence and innovations 

in areas such as break-pressure 

tanks which were designed by 

Royal Haskoning DHV and built 

by ICON Construction. 

All of the province’s biggest 

industries require sophisticated 

engineering skills: aluminium 

smelters in Richards Bay and 

steel works in Newcastle, 

Richards Bay and Cato Ridge. 

There are also chemicals and 

plastics production plants, and 

large automotive works. 

The Transnet Engineering 

(TE) plant in the Port of Durban 

houses six business units and 

has 3 555 employees. The Coach 

unit upgrades coaches and the 

Auxiliary business is the main 

supplier of rail wagon tarpaulins 

to Transnet Freight Rail. The Port 

Equipment Maintenance unit 

and units specialising in wheels 

and locomotive overhaul are 

other entities. 

The School of Engineering 

at the University of KwaZulu- 

Natal offers a variety of degree 

options, ranging from undergraduate 

qualifications to 

doctorates. The School offers 

eight areas of specialisation including 

Bioresources, Electronic 

and Computer Engineering and 

Land Surveying. ■ 


OVERVIEW 

Oil and gas 

A huge LPG storage facility has been built at Richards Bay. 

The supply of liquid petroleum gas (LPG) is set to be made easier 

and more reliable with the erection of the 22 600-ton 

Mounded LPG Facility at Richards Bay. Bidvest Tank Terminals 

has constructed the R1-billion storage facility for Petredec, 

which trades, transports and distributes LPG and other commodities. 

South Africa’s annual consumption of LPG, currently at 400 000 tons, 

is expected to rise to 600 000 tons. If a private partner can be found, 

a liquid natural gas (LNG) plant will produce 2 000MW at Richards Bay. 

This forms part of national government’s allocation of 3 126MW to 

natural gas in its medium-term energy policy to 2030. 

The world’s four largest 

LPG storage tanks at the 

Bidvest Tank Terminals 

site in Richards Bay. 

Image: Bidvest 

The National Department of Mineral Resources and Energy (DMRE) 

decided in 2016 that one of the first two gas-to-power plants to be 

constructed under the Independent Power Producer Procurement 

Programme would be allocated to Richards Bay. This has the potential 

to turn the Richards Bay Industrial Development Zone (RBIDZ) into an 

energy hub. The fact that neighbouring Mozambique has significant 

offshore deposits is a factor in this ambition. To produce its allocation 

of 2 000MW, the plant would have to use a million tons a year of LNG. 

An indication of the scale of activity in Mozambique came in 2019 

when Anadarko Petroleum, a US company, signed off on a $20-billion 

project to build an LNG plant. The projected spin-offs for the South 

African economy are estimated to top R7-billion. 


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 


Italian company Eni is 

looking for hydrocarbons. 

Eni, one of the world’s biggest 

energy companies, has an 

agreement with Sasol Petroleum 

International to explore for 

hydrocarbons off the coast of 

KwaZulu-Natal. 

The regulator and promoter 

of oil and gas exploration in South 

Africa, Petroleum Agency South 

Africa, has awarded coalbedmethane-gas 

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. 

Getting fuel to the province 

of Gauteng is the key mission of 

the new multi-purpose pipeline 

(NMPP). Refined products such 

as jet fuel, sulphur diesel and 

both kinds of octane petrol 

are carried. The infrastructure 

of Transnet Pipelines is said 

to reduce the number of fuel 

tankers on South African roads 

by about 60%. 

KwaZulu-Natal is home to 

two major oil refineries and is 

the first link in the pipeline chain 

that links 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. ■ 


34

Construction and property 

OVERVIEW 

Durban’s beachfront promenade now extends from the harbour to Blue Lagoon. 

A 

private company is tackling urban regeneration in Durban, one 

building at a time. Serial property investor Jonny Friedman 

of Urban Lime has carefully selected certain precincts with 

potential for a mix of uses, including offices and accommodation. 

Pioneer Place, Durban Club Chambers, 320 Pixley and Florida Road 

are among their investments. Friedman is also invested in converted 

warehouses in London and various Cape Town properties. 

This private initiative chimes with a public programme that aims 

to make Durban’s inner city “Africa’s leading, most vibrant, liveable, 

walkable City Centre”. This is the Inner City Local Area Plan (LAP) 

for Durban. Developed for the eThekwini Municipality by a Joint 

Venture called IPPU, which comprises Iliso, TPI, PMSA, UrbanEcon 

including Cox Architecture, Urban Solutions, Urban Earth, Jo Lees 

and Joe Kitching. A major milestone was reached in November 2019 

when the beachfront promenade extension reached the harbour. 

This means that residents anywhere in the city can now step onto the 

promenade, from the harbour in the south to Blue Lagoon in the north. 

The project began in early 2018 and cost R400-million. 

The Point Waterfront Development (directly behind the latest 

extension to the promenade) is a major project that is transforming 

what was an under-utilised and somewhat rundown part of the city 

into a vibrant, multi-use precinct. Some projections put the total 

potential investment value of the project at R40-billion and the 

number of permanent jobs to be created at 6 750. It offers a mix of 

office space, retail shops, residential dwellings and leisure options. The 

55ha site has already seen significant investment. 

A cruise terminal in the harbour backing on to the Point has been 

approved, while other major projects in the inner city include the 

Warwick Junction transport interchange and the Centrum Government 

Precinct which will formalise the relationship between buildings such 

as the International Convention Centre and a related hotel, the library, 

council chambers and the redevelopment of Gugu Dlamini Park. 

According to the organisers of the 2019 KZN Construction Expo, 

infrastructure will attract more than R200-billion in investment over 

seven years and R35-billion will be spent over 15 years at the Port 

Waterfront development. The King Shaka International Airport and 

Dube TradePort are also attracting property investments. 


Construction Industry Development Board: www.cidb.org.za 

Master Builders Association KwaZulu-Natal: www.mba-kzn.co.za 

SA Estate Agency Affairs Board: www.eaab.org.za 

SA Institute of Valuers: www.saiv.org.za 


Durban could become the 

continent’s most liveable city. 

Two new industrial parks 

are being developed: Cornubia 

is part of a larger project near 

Umhlanga and Clairwood in 

Durban South will offer more 

than 300 000m² of A-grade 

industrial space. Tongaat 

Hulett Developments (THD) 

launched the nTshongweni 

Urban Development on either 

side of the busy N3 highway 

west of the city in 2018. The 

Cornubia project covers 1 300ha 

about 7km from the airport 

and encompasses indust-rial, 

commercial, residential sections. 

The southern part of the project 

will cater for 24 000 homes, 

industrial development and 

more than one-million square 

metres of commercial floor 

space, all complemented by 

public open spaces (430ha) and 

social and community facilities. 

KwaZulu-Natal has a number 

of brick companies and four 

cement factories. Three of these 

are run by NPC at Simuma, 

Durban and Newcastle, and 

the company has a further six 

sites for concrete and two for 

aggregate. NPC is part of the 

Intercement group. Lafarge 

has several aggregate quarries 

and eight Readymix plants 

around the province. The 

company’s grinding operation 

in Richards Bay closed in 2017. ■ 


OVERVIEW 

Tourism 

Hotel groups are investing in new properties and refurbishment. 

Moses Mabhida Stadium. Image: Kevin Sawyer 

A 

dventures don’t come more hair-raising than throwing yourself 

into the void above a sports stadium, but that’s what 

thousands of visitors to the Moses Mabhida Stadium have 

been doing for a decade. 

The SkyCar, a funicular trip over the top of the roof, is under repair 

but bungy-jumping is still very popular, as is the “Adventure Walk” on 

the south side of the stadium. The 56 000-capacity stadium is home 

to a professional soccer team and forms part of a sporting precinct 

that includes the province’s professional rugby franchise, the Kings Park 

Stadium, and has greatly increased KwaZulu-Natal’s ability to host big 

events such as the Fact Durban Rocks and the Monster Jam. 

The other major events asset in the province’s largest city is the 

Durban International Convention Centre (Durban ICC). A major 

international football conference was due to be held at the venue in 

March 2020, with the FIFA secretary-general slated to speak. However, 

the global health scare related to the Covid-19 virus saw that event 

(and many others) postponed or cancelled. 

The 2019 Africa’s Travel Indaba attracted 342 first-time buyers out 

of a total of 1 663 buyers from more than 80 countries, cementing the 

event as a major date on the tourism industry’s calendar. 

The meetings, incentives, conference and exhibition sector (MICE) 

is a priority sector for the provincial government. The Convention 

Bureau has booked dozens of events and conferences since 2012, 

bringing more than R3-billion into the provincial economy. More 

than 7 000 delegates are annually attracted to Africa’s Travel Indaba 


Moses Mabhida Stadium 

has become an iconic 

symbol of KwaZulu-Natal. 

to exhibit South Africa’s assets 

to international tour operators. 

The city has secured the Indaba 

until 2022. 

A number of new initiatives 

are expanding options for visitors. 

These include the creation 

of a new Cruise Terminal (dealt 

with separately in this journal), 

the development of caves at 

Ngodini and Ndumo, and the 

upgrading of the Mandela 

Capture Site near Howick. 

Another potential growth 

area is health tourism. Upwards 

of seven-million people travel the 

world annually for procedures, 

and South Africa is well placed 

to receive a percentage of this 


36

OVERVIEW 

market. Richards Bay has hosted 

a conference on issues such as 

investment, training and the 

development of products for this 

growing sector. The combined 

contribution of retail and tourism 

to provincial GDP is 14%. 

Hotels 

Research by Tourism KwaZulu- 

Natal shows that the coastal 

province consistently has the best 

hotel occupancies in the country. 

Tsogo Sun spent R1.6-billion 

on refurbishing its Suncoast 

complex on Durban’s Golden 

Mile. Suncoast Casino Hotels & 

Entertainment covers a huge 

area and offers a wide variety of 

entertainment options. 

The recent upgrade included 

the addition of seven new 

restaurants, new retail outlets, a 

new theatre and an event venue, 

and increased space at the casino. 

More underground parking was 

created and the whole complex 

was given a fresh look. 

Tsogo Sun has four other 

hotels on the Golden Mile and 

six hotels 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 “megahotel” 

was created with the 

amalgamation of the Southern 

Sun North Beach and Southern 

Sun Elangeni hotels. 

Premier Hotels & Resorts will 

spend about R420-million on 

two new hotels at Umhlanga. 

Currently under construction, 

the hotel complex is located 

alongside the Gateway Theatre 

of Shopping next to Umhlanga 

Ridge. The four-star Premier 

Hotel will have 130 rooms while the three-star Splendid Inn by Premier 

will be equipped with 64 bedrooms. The group has hotels and resorts 

in six provinces. 

A new Radisson Blu Hotel will open in Umhlanga Rocks as part 

of the ambitious R3-billion Oceans Umhlanga development. Some 

construction work has been halted because of problems experienced 

by construction companies, but it seems that the hotel and the 

shopping mall sections of the planned complex are going ahead. 

A 207-room Hilton Garden Inn planned to be operating at 

Umhlanga Arch in 2020. Hilton Durban acquired a new owner in 

2018 when Bin Otaiba Hotels bought it, together with four hotels in 

Johannesburg, Port Elizabeth and Cape Town. 

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 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 hosts the Christine Martin School of 

Food and Wine. 

Drakensberg Amphitheatre. 

IFA Hotels & Resorts runs several luxury properties including the 

Zimbali Coastal Resort and Zimbali Lakes Resort. Signature Life Hotels 

has 13 properties and Gooderson Leisure has a varied portfolio. 

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 International Convention Centre: www.icc.co.za 

Ezemvelo KZN Wildlife: www.kznwildlife.com 

Moses Mabhida Stadium: www.mmstadium.com 

Tourism KwaZulu-Natal: www.zulu.org.za 


OVERVIEW 

Manufacturing 

New factories are being built at Dube TradePort and Cornubia. 

A 

new plant to make washing machines has created 75 jobs 

at the Durban plant of white-goods manufacturer Defy. The 

R121-million investment is part of a R1.2-billion investment 

programme which Turkish company Arçelik Global has been 

following since it bought Defy in 2011. The company has another 

plant in at Ezakheni (near Ladysmith) and one in the Eastern Cape. 

Indian generic drug manufacturer Cipla is to build a new facility 

at Dube TradePort to complement its existing factory in Durban. 

LG Electronics South Africa has opened a R21-million factory and 

distribution centre in Cornubia, north of Durban. 

Expansion of production normally heralds an uptick in the 

economy. Unfortunately, the fact that more aluminium products are 

going to be made by Hulamin’s extrusion facility in Pietermaritzburg 

reflects the fact that the company has closed one of factories in 

another province. The company believes its restructuring is working 

well, and its beverage business is doing well. Hulamin also makes rolled 

products (pictured) at Edendale, Pietermaritzburg and at Camps Drift. 

The manufacturing sector contributes 17.7% to the provincial 

Gross Domestic Product (GDP) of KwaZulu-Natal. The strongest export 

sectors are base-metals (32% including aluminium), mineral products 

such as ores, vehicles and chemical products. 

New opportunities in the Blue economy (ship-building and 

maintenance, oil-rig repair and servicing) and the Green economy (solar 

panel manufacture, solar, biogas and wind energy plant construction, 

management and maintenance, heating and cooling devices) are set 

to grow in KwaZulu-Natal with the allocation of geographical hubs to 

support these sectors, and the introduction of policies and incentives 

designed to make them competitive. 

The Richards Bay Industrial Development Zone has been identified 

as an area that can attract investment in both of these sectors while the 

Port of Durban already has a strong boat-building and maintenance 

sector. The nine-tug contract put out by Transnet National Ports 

Authority (TNPA) is worth R1.4-billion and was won by Durban-based 

Southern African Shipyards Durban. iLembe District Municipality is 

intended as the renewable energy hub of the province, with renewable 

energy components manufacturing as a key subsector. 


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

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

Enterprise iLembe: www.enterpriseilembe.org.za 

Manufacturing Circle: www. manufacturingcircle.co.za 

Plastics SA: www.plasticsinfo.co.za 


Defy is hiring. 

There are 219 clothing 

companies in the province. 

Textile manufacturer Africa 

Bespoke Apparel launched 

its R81-million factory in 

Verulam, while Canvas and Tent 

Manufacturing has more than 

400 employees in Ladysmith. 

Carpet manufactur-ers Belgotex 

Floorcoverings and Ulster Carpets 

have facilities in Pietermaritzburg 

and Durban respectively, while 

Böhler Uddeholm produces 

tooling materials and welding 

consumables in Pinetown. 

The chemicals and petrochemicals 

subsector makes up 

17% of the province’s manufacturing 

output, with industrial 

chemicals accounting for nearly 

a third. Two large oil refineries 

and a sophisticated sugar milling 

and refining industry underpin 

the provincial chemical manufacturing. 

Steel and aluminium 

are other heavy manufacturing 

products. Sappi Saiccor’s 

Umkomaas plant is the world’s 

biggest producer of specialised 

cellulose, with production edging 

upwards every year towards full 

capacity of more than 800 000 

tons per annum. KwaZulu-Natal 

produces nearly a third of South 

Africa’s plastic requirements. 

Nampak has several packaging 

facilities in the province and 

Mpact’s Pinetown facility 

specialises in FMCG containers. ■ 


40

Automotive 

Toyota is to spend R2.4-billion on a new vehicle line. 

In a year in which South Africa’s total 

vehicle exports topped 350 000, it was 

perhaps not surprising that Durban’s Car 

Terminal boasted a record of putting 

more than 500 000 fully-built-up units (FBUs) 

through the port in 2018/19. The figure includes 

FBUs that are not motor vehicles and 

includes vehicle imports. 

Toyota’s popular Fortuner is exported at a 

rate of about 150 per month. The company’s 

plant, just a few kilometres south of the 

harbour at Prospecton, is to receive a R2.4 

billion investment injection in order to produce 

a new passenger vehicle from the end of 2020. The Toyota Hybrid 

Synergy Drive vehicle will be produced as a variant. Toyota sells about 

a quarter of the vehicles sold in South Africa, and accounts for the same 

proportion of export volumes. The company’s total investment of R4.2- 

billion between 2019 and 2021 includes other manufacturing projects 

and a huge increase in warehousing capabilities. 

The other large-scale original equipment manufacturer in the 

province is Bell Equipment. Between the Toyota plant and the Richards 

Bay facility of heavy-equipment manufacturer Bell Equipment, 

upwards of 11 000 people are employed. In 2019 Bell won the 

“Major Contributor to Innovation and Technological Advancement 

in KZN” award and the “Exporter of the Year” award. Exports to more 

than 80 countries make up about 40% of the company’s turnover 

and local content of those exports is at 70%. Bell is best known for 

its heavy equipment which is primarily used in the mining and 

construction sectors. 

Another manufacturer of earthmoving equipment is Dezzi, with 

18 offices and branches. In 2018 AIH Logistics started assembling 

Mahindra and Bolero bakkies from kits imported from India on a 5 

000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant 

at Hammars-dale has increased capacity to 150 000 used truck tyres 

per year and should exceed 200 000 soon, while Powerstar assembles 


Automotive Industry Development Centre: www.aidc.co.za 

Durban Automotive Cluster: www.dbnautocluster.org.za 

National Association of Automobile Manufacturers of South Africa 

(NAAMSA): www.naamsa.co.za 

National Association of Automotive Component and Allied 

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


Bell Equipment is 

scooping awards. 

OVERVIEW 

Image: Bell Equipment 

trucks in Pietermaritzburg on a 

site formerly used by Super 

Group. KwaZulu-Natal’s substantial 

automotive components 

sector includes large manufacturers 

such as GUD Filters, while 

39 companies (with 17 000 

employees) are members of the 

Durban Automotive Cluster. 

Trade and Investment 

KwaZulu-Natal estimates that 

the province’s component 

automotive manufacturers 

enjoy a combined turnover 

approaching R10-billion. 

The Behr Group has an 

air-conditioning and cooling 

systems factory in Durban. 

Ramsay Engineering supplies 

cross-car beams for BMW and 

Ford. Funding was received from 

the Industrial Development 

Corporation (IDC) to buy new 

tool-making technology to make 

this possible. ■ 


OVERVIEW 

Energy 

The sugar industry is ready to sell excess power. 

Sugar plant. Image: Illovo Sugar 

South Africa’s shortage of reliable electricity supply came into 

sharp focus in 2019. The country’s sugar industry, which is particularly 

strong in KwaZulu-Natal, says it generates far more 

power than it needs but national government is hesitating in 

allowing companies to sell to the grid. 

Encouraging signs were given that government was moving in 

this direction in the President’s State of the Nation Address and in 

remarks made by the Minister of Minerals Resources and Energy at the 

Investing in African Mining Indaba in February 2020, but no licences or 

concrete proposals were immediately forthcoming. 

The managing director 

of Illovo Sugar SA, Mamongae 

Mahlare, told the Sunday 

Times in March that the sugar 

industry is in real need of 

some other source of income 

to offset tough times. Selling 

energy to the grid (and 

investigating biofuel and 

bio-energy) are “key” to the 

sector’s future, she told the 

newspaper. At the company’s 

Eswatini mill, Ubombo, it has 

a commercial supply agreement 

with the Eswatini 

Electricity Company. 

The province’s other 

sugar giant, Tongaat Hulett, produces between 12MW and 14MW of 

power at its mills and believes that the national sugar industry could 

generate between 700MW and 900MW. 

A 17MW biomass project represents the province’s only approved 

project in terms of the national Renewable Energy Independent Power 

Producer Procurement Programme (REIPPPP). 

An open cycle gas turbine plant at Shakaskraal in the iLembe 

District Municipality can be converted to gas-fired technology, a 

method which energy planners are encouraging. The 670MW plant 

came on stream in 2017. Its project company, Avon Peaking Power, 


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

National Energy Regulator: www.nersa.org.za 

South African National Energy Development Institute: 

www.sanedi.org.za 


Richards Bay hopes to 

attract LNG investors. 

is jointly owned by a community 

trust, Mitsui (Japan), Legend 

Power Solutions (South Africa) 

and ENGIE of France. 

As part of the provincial 

government’s strategy to 

boost regional development, 

the iLembe District has been 

named as an Industrial 

Economic Hub (IEH) for the 

renewable energy sector. 

Khanyisa Projects has set 

up 26 biodigesters which 

produce gas for cooking at 

Ndwedwe in the iLembe District. 

The project forms part of the 

Working for Energy programme 

of the South African National 

Energy Development Institute 

(SANEDI) which promotes the 

use of sustainable clean energy 

in rural areas. 

The Richards Bay Industrial 

Development Zone (RBIDZ) 

has been named as the site for 

2 000MW liquefied natural gas 

(LNG) plant in terms of national 

government’s gas-to-power 

plan. RBIDZ is also the site of a 

new biomass plant. 

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. ■ 


42

Water 

Two new dams are under construction. 

Two new dams will add 800-million litres of water per day 

to the available supply in KwaZulu-Natal. As part of the lower 

uMkhomazi bulk water scheme, utility Umgeni Water 

will spend about R26-billion on the Smithfield Dam and 

R2.4-billion on the Ngwadini Dam. 

Umgeni Water currently supplies more than 400m³ 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. The company has five dams, 10 

waterworks, five water-treatment plants and two waste-water works. 

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

Mhlathuze Water. The utility has assets valued at more than R3-billion 

and its area of supply covers 37 000m². 

Clearing pit toilets in remote rural areas and on steep inclines 

presents an engineering challenge. In response to a Water Research 

Commission project on the subject, Partners in Development, a 

Pietermaritzburg-based engineering and project management 

company, has developed the eVac pit-emptying machine. It’s 

lightweight, mobile and has strong sucking power. 

New technology has been installed at the Verulam Wastewater 

Treatment Works of the eThekwini Municipality. Murray & Roberts 

Water and its European technology partner, Organica Water, has 

installed an environmentally-friendly system that uses 30% less energy 

and produces 30% less sludge. 

Richards Bay has installed a 10-container desalination plant next to 

the municipal water-treatment plant at Alkanstrand. The first mobile 

sea-water purification unit in South Africa, it comprises 10 containers 

and is located adjacent to the water-treatment plant at Alkantstrand. It 

can deliver 10 megalitres of drinking water. However, the high cost of 

electricity means that the unit is used sparingly. Solar energy is being 

investigated as a possible alternative. 

In 2018 JG Afrika delivered a R72-million desalination plant to 

South32’s Hillside aluminium smelter in the same town. 

The area north of the Durban central business district is 

one of the fastest-growing urban areas in South Africa, with a 


Mhlathuze Water: www.mhlathuze.co.za 

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

Partners in Development: www.pid.co.za 

Umgeni Water: www.umgeni.co.za 

Water Research Commission: www.wrc.org.za 

OVERVIEW 


Pietermaritzburg engineers 

are tackling pit toilet 

clearance. 

number of large office and 

accommodation projects going 

ahead simultaneously. This is 

a welcome development for 

the economy, but the new 

buildings also create pressure on 

infrastructure. 

Image: Umgeni Water 

The multi-year, R250- 

million Northern Aqueduct 

Augmentation project was 

initiated in 2014 and the fifth 

phase of the project is underway. 

This will provide water for 

Durban North, Umhlanga, 

Newlands, KwaMashu, Phoenix 

and Cornubia. 

Nedbank sponsors the 

clearing of 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. ■ 


OVERVIEW 

Banking and financial services 

The Port of Durban will expand with a loan from the new Brics bank. 

The Brics New Development Bank has made a $200-million loan 

for the expansion of the container terminal in Durban. The 

busy port is currently stretched beyond capacity and waiting 

time for trucks can be extremely long. 

Activist groups in Durban’s southern suburbs are opposing the 

loan and the expansion, saying that further development will increase 

pollution in the area and lead to even more dangerous traffic congestion. 

Up the coast at Richards Bay, the World Bank’s International Finance 

Corporation (IFC) has committed $2-million to a feasibility study on the 

construction of a liquefied natural gas (LNG) storage and regasification 

terminal. The study’s costs are shared with Transnet and a private investor 

will be sought if the feasibility study is positive. 

Durban Container Terminal. 

Image: Transnet 

In 2017 Tyme Digital received a licence to run a bank. By early 

2019, TymeBank was available in 500 Pick n Pay and Boxer stores and 

more than 50 000 customers had an account. Tyme stands for Take 

Your Money Everywhere; the bank does not have a branch network. 

African Rainbow Capital began as the venture’s BEE partner but in 2018 

bought out the Commonwealth Bank of Australia. 

Second to market among the country’s new banks was Discovery 

Bank, which officially launched in March 2019. Discovery Bank will apply 

the behavioural model it uses in its health business to reward good 

financial behaviour. The Discovery group is already a giant on the JSE 

with a market value of R83-billion and access to millions of customers. 


Association for Savings & Investment South Africa: www.asisa.org.za 

Financial Sector Conduct Authority: www.fsca.co.za 

Insurance Institute of South Africa (KwaZulu-Natal): www.iikzn.co.za 

South African Institute for Chartered Accountants: www.saica.co.za 


The International Finance 

Corporation is investigating 

energy options. 

Three state entities 

are merging to create the 

new Human Settlements 

Development Bank: the National 

Housing Finance Corporation, 

the Housing Loan Fund and the 

National Urban Reconstruction 

and Housing Agency. 

The focus will be on financing 

housing for poorer households 

and for large state-funded 

housing projects. Part of the 

drive is to integrate cities better 

and to combat the legacy of 

the spatial divide that apartheid 

left behind. Private sector 

investment will be required. 

The Chartered Institute of 

Government Finance, Audit and 

Risk Officers (Cigfaro) advises 

institutions, trains its members in 

public finance and promotes the 

interests of professionals in the 

public sector. It also develops 

and assesses qualifications and 

advises tertiary institutions on 

the requirements for courses. 

The South African Institute 

for Chartered Accountants 

International provides training 

in financial reporting standards 

for SMMEs while the Insurance 

Institute of KwaZulu-Natal 

(IISA) holds regular education 

workshops. The institute’s 

mentorship programme is run in 

association with the Musifunde 

Training Centre. ■ 


44

Education and training 

Maths and science is in focus. 

AMaths and Science School of Excellence is due to open in 

2020 at La Mercy, north of Durban. The long-planned project 

(pictured) on the site of a closed primary school is back 

on track and is part of a wider provincial programme that 

includes a Special School for Autism (2020) and two Schools of Excellence 

scheduled to be started in 2021; for Agriculture 

in Umgungundlovu and Maritime studies in Umlazi. 

KwaZulu-Natal has 2.8-million school pupils, 

many of whom are in rural areas. Transport is 

provided to 350 schools, covering 59 000 pupils, and 

2 400 bicycles have been made available under the 

Shovakalula programme. 

There are two universities and two universities 

of technology in KwaZulu-Natal, and the national 

distance university, the University of South Africa 

(Unisa), has a presence in five locations. USB 

Executive Development offers business courses 

for executives. The University of KwaZulu-Natal has opened a new 

Chemistry Postgraduate Research Facility at the School of Chemistry 

and Physics in Pietermaritzburg. 

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. The University 

of Zululand offers diploma and degree courses on two campuses at 

Empangeni and Richards Bay. 

The unbundling from the successful Curro group of a separate 

tertiary entity which listed on the JSE as Stadio Holdings is a good 

indicator of the growth of the private sector in education. Stadio 

currently has three institutions: Southern Business School, AFDA (the 

School for the Creative Economy) and the Embury Institute for Higher 

Education which has a campus in Musgrave, Durban. 

There are seven schools in KwaZulu-Natal operating under Curro 

brands. Advtech, the other big private company in the sector, already 

has 27 tertiary campuses nationally, in addition to its 78 schools 

operating under a variety of labels. Advtech operates 10 educational sites 

in KwaZulu-Natal. 


KwaZulu-Natal Department of Education: www.kzneducation.gov.za 

National Department of Higher Education and Training: 

www.dhet.gov.za 

National Research Foundation: www.nrf.ac.za 

Training 

OVERVIEW 


Majuba TVET College is a 

new Centre of Specialisation 

for boiler-making. 

Image: KZN Dept of Education 

KwaZulu-Natal has nine Technical 

and Vocational Education 

and Training (TVET) Colleges with 

a total enrolment around 80 000. 

Coastal KZN TVET College gives 

students practical experience 

through facilities such as the 

Nongalo Industrial Park. The 

college hosts the Samsung 

Engineering Academy, a Tooling 

Centre of Excellence and 

a manufacturing plant for 

sanitary towels. The college has 

several sites on the South Coast 

and caters for 15 400 students. 

Majuba TVET College has recently 

been appointed as a Centre of 

Specialisation for boiler-making. 

The Mnambithi TVFET College is 

located in the Battlefields Route 

tourism area and offers National 

Diploma courses in tourism and 

other qualifications. A satellite 

campus operates at Estcourt. ■ 


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INDEX 

INDEX 

Africa Biomass Company …....................................................................................................................................9, 27 

Citiq Prepaid............................................................................................................................................................................IBC 

Chartered Institute of Finance Audit and Risk Officers (CIGFARO)..................................................... 11 

Durban Chamber of Commerce and Industry ................................................................................................... 2 

Durban International Convention Centre (Durban ICC) ..................................................................... OBC 

Fibre Circle ........................................................................................................................................................................ 30, 31 

Indaba Lodge, Richards Bay........................................................................................................................................... 38 

Invest Durban ........................................................................................................................................................................IFC 

Metropolitan.......................................................................................................................................................................4, 46 

Nedbank .............................................................................................................................................................................20-23 

Petroleum Agency South Africa ................................................................................................................................... 6 

Transnet Pipelines ................................................................................................................................................................ 16 


48

AFRICA’S SMARTEST 

CONVENTION CENTRE 

The Durban ICC has always aimed 

to position itself as “Africa’s Leading 

Convention Centre” but having 

invested in the latest, cutting-edge 

meeting technology, the centre is 

re-inventing itself as the continent’s 

leading high-tech convention 

centre. “Without moving away from 

our existing market positioning 

we are adding this competitive 

edge and aiming to also be 

recognised as “Africa’s Smartest 

Convention Centre”, said Durban 

ICC Chief Executive Officer, Lindiwe 

Rakharebe. 

The Centre is offering a range of innovative 

solutions such as Hybrid events, Livestreaming, 

Video-on-Demand, and Remotepresentation 

events. For the uninitiated, a 

Hybrid Event is simply the combination of a 

traditional face-to-face event with an online 

component, which extends the reach of 

the conference to a wider audience using 

technology like live-streaming. 

The best part is that companies are taking 

advantage of this kind of event solution even 

during the lockdown by using the technology 

on offer and not having to wait until live 

events fully start up again. Some are even 

able to reach much larger audiences by 

taking their events online than they would 

have with their traditional live event. 

The virtual events offer a range of benefits, for instance, the 

digital delegate can: 

• Get all the content of the live event from the comfort and safety of 

their homes 

• Watch the speakers via the video feed and view any presentations 

via the picture in picture mode 

• Engage remotely with the event in real time via the event’s chat or 

social media channels 

• Share the content with others in their organisation directly without 

having to repeat it themselves second-hand to their colleagues 

• Choose to consume the event content at a later time if that suits 

their schedule 

• View selected elements from the event programme which pertain to 

their area of interest. 

While this is just the latest addition to 

the ever-evolving range of tech offerings 

available at the Durban ICC, as the Centre 

has always taken pride in being on the 

leading edge of the latest developments in 

this space. The Durban ICC hosted its own 

live-stream event in September 2019 and 

has subsequently run several successful 

events of this kind for its clients. “There is 

no shortage of new innovations out there, 

but it’s our job to incorporate the meaningful 

ones which make our clients’ lives easier 

into the Durban ICC customer experience”, 

added Scott Langley, Durban ICC’s Director 

of Marketing, Sales and Events. 

The Durban ICC boasts the country’s fastest 

convention centre Wi-Fi network and that 

which is able to support the most concurrent 

users. It was also the first centre in the 

country to offer indoor Google Maps and to 

incorporate the ‘whatthreewords’ navigation 

system into their complex. The Centre has 

also invested heavily in its massive video 

screens and interactive digital totems in the 

past year. 

No wonder it is also being recognised as 

Africa’s Smartest Convention Centre.

KwaZulu-Natal Business 2020-21 edition

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